# EDGAR Filing Document

**Accession Number:** 0001640043
**File Stem:** 0001493152-26-014641
**Filing Date:** 2026-4
**Character Count:** 1943686
**Document Hash:** 594f8623122e91693b00902318bd9c9d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-014641.hdr.sgml**: 20260401

**ACCESSION NUMBER**: 0001493152-26-014641

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 108

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260401

**DATE AS OF CHANGE**: 20260401

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pyxis Tankers Inc.
- **CENTRAL INDEX KEY:** 0001640043
- **STANDARD INDUSTRIAL CLASSIFICATION:** DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** 1T
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37611
- **FILM NUMBER:** 26828148

**BUSINESS ADDRESS:**
- **STREET 1:** 59 K. KARAMANLI STREET
- **STREET 2:** 151 25 MAROUSSI
- **CITY:** ATHENS
- **STATE:** J3
- **ZIP:** 15125
- **BUSINESS PHONE:** 2106560590

**MAIL ADDRESS:**
- **STREET 1:** 59 K. KARAMANLI STREET
- **STREET 2:** 151 25 MAROUSSI
- **CITY:** ATHENS
- **STATE:** J3
- **ZIP:** 15125

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 20-F**

---

| | |
|:---|:---|
| **(Mark One)** | **(Mark One)** |
| **☐** | **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **OR** |
| **☒** | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **For the fiscal year ended December 31, 2025** |
|  | **OR** |
| **☐** | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **OR** |
| **☐** | **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

**Commission file number 001-37611**

**PYXIS TANKERS INC.**

**(Exact name of Registrant as specified in its charter and translation of Registrant's name into English)**

**Marshall Islands**

**(Jurisdiction of incorporation or organization)**

**59 K. Karamanli Street, Maroussi 15125 Greece**

**(Address of principal executive office)**

**Mr. Henry Williams, Chief Financial Officer**

**59 K. Karamanli Street, Maroussi 15125 Greece**

**Tel: +30 210 638 0200**

**hwilliams@pyxistankers.com**

**(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)**

**Securities registered or to be registered pursuant to Section 12(b) of the Act.**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Common Stock, par value $0.001 per share** | **PXS** | **Nasdaq Capital Market** |

---

**Securities registered or to be registered pursuant to Section 12(g) of the Act.**

**None**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.**

**None**

**Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the Annual Report.**

**Common Stock, par value U.S. $0.001 per share: 10,418,859 as of December 31, 2025**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☒

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ <br> Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☒ International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **PAGE** |
| [**Introduction**](#ak_001) | [**Introduction**](#ak_001) | **1** |
| [**Special Note Regarding Forward-Looking Statements**](#ak_002) | [**Special Note Regarding Forward-Looking Statements**](#ak_002) | **1** |
| [**PART I**](#ak_003) | [**PART I**](#ak_003) |  |
| **Item 1.** | [**Identity of Directors, Senior Management and Advisers**](#ak_004) | **3** |
| **Item 2.** | [**Offer Statistics and Expected Timetable**](#ak_005) | **3** |
| **Item 3.** | [**Key Information**](#ak_006) | **3** |
| **Item 4.** | [**Information on the Company**](#ak_007) | **42** |
| **Item 4A.** | [**Unresolved Staff Comments**](#ak_008) | **72** |
| **Item 5.** | [**Operating and Financial Review and Prospects**](#ak_009) | **73** |
| **Item 6.** | [**Directors, Senior Management and Employees**](#ta_001) | **90** |
| **Item 7.** | [**Major Shareholders and Related Party Transactions**](#ta_002) | **94** |
| **Item 8.** | [**Financial Information**](#ta_003) | **96** |
| **Item 9.** | [**The Offer and Listing**](#ta_004) | **97** |
| **Item 10.** | [**Additional Information**](#ta_005) | **97** |
| **Item 11.** | [**Quantitative and Qualitative Disclosures About Market Risk**](#ta_006) | **109** |
| **Item 12.** | [**Description of Securities Other than Equity Securities**](#ta_007) | **111** |
| [**PART II**](#ta_008) |  |  |
| **Item 13.** | [**Defaults, Dividend Arrearages and Delinquencies**](#ta_009) | **112** |
| **Item 14.** | [**Material Modifications to the Rights of Security Holders and Use of Proceeds**](#ta_010) | **112** |
| **Item 15.** | [**Controls and Procedures**](#ta_011) | **112** |
| **Item 16.** | [**Reserved**](#ta_012) | **112** |
| **Item 16A.** | [**Audit Committee Financial Expert**](#ta_013) | **112** |
| **Item 16B.** | [**Code of Ethics**](#ta_014) | **112** |
| **Item 16C.** | [**Principal Accountant Fees and Services**](#ta_015) | **113** |
| **Item 16D.** | [**Exemptions from the Listing Standards for Audit Committees**](#ta_016) | **113** |
| **Item 16E.** | [**Purchases of Equity Securities by the Issuer and Affiliated Purchasers**](#ta_017) | **113** |
| **Item 16F.** | [**Change in Registrant's Certifying Accountant**](#ta_018) | **114** |
| **Item 16G.** | [**Corporate Governance**](#ta_019) | **114** |
| **Item 16H.** | [**Mine Safety Disclosure**](#ta_020) | **115** |
| **Item 16I.** | [**Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**](#ta_021) | **115** |
| **Item 16J.** | [**Insider Trading Policies**](#ta_022) | **115** |
| **Item 16K.** | [**Cybersecurity**](#ta_023) | **116** |
| [**PART III**](#ta_024) |  |  |
| **Item 17.** | [**Financial Statements**](#ta_025) | **117** |
| **Item 18.** | [**Financial Statements**](#ta_026) | **117** |
| **Item 19.** | [**Exhibits**](#ta_027) | **117** |

---

**INTRODUCTION**

Unless otherwise indicated in this Annual Report on Form 20-F, or Annual Report, "Pyxis," the "Company," "we," "us" and "our" refer to Pyxis Tankers Inc. and its consolidated subsidiaries.

Our audited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or "U.S. GAAP" or "GAAP".

All references in this Annual Report to "$," "US$," "U.S.$," "U.S. dollars," "dollars" and "USD" mean U.S. dollars and all references to "€" and "euros," mean euros, unless otherwise noted.

**FORWARD-LOOKING STATEMENTS**

Our disclosure and analysis in this Annual Report pertaining to our operations, cash flows and financial position, including, in particular, the likelihood of our success in developing and expanding our business and making acquisitions, include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "seeks," "targets," "continue," "contemplate," "possible," "likely," "might," "will," "would," "could," "projects," "forecasts," "predicts," "schedule," "potential", "may," "should" and similar expressions are forward-looking statements. All statements in this Annual Report that are not statements of either historical or current facts are forward-looking statements. Forward-looking statements include, but are not limited to, such matters as our future operating or financial results, global and regional economic and political conditions, including piracy, future vessel acquisitions, our business strategy and expected capital spending or operating expenses, including dry-docking and insurance costs, competition and conditions in the product tanker and dry bulk industries, statements about shipping market trends, including charter rates and factors affecting supply and demand, in particular, the effects of the war in the Ukraine, the war between the United States and Israel, and Iran or other armed conflicts in the Middle East and the Red Sea region, our financial condition and liquidity, including our ability to obtain financing in the future to fund capital expenditures, acquisitions and other general corporate activities, our ability to enter into fixed-rate charters after our current charters expire and our ability to earn income in the spot market and our expectations of the availability of vessels to purchase, the time it may take to construct new vessels, and vessels' useful lives. Many of these statements are based on our assumptions about factors that are beyond our ability to control or predict and are subject to risks and uncertainties that are described more fully under the "Item 3. Key Information – D. Risk Factors" section of this Annual Report. Any of these factors or a combination of these factors could materially affect our future results of operations and the ultimate accuracy of the forward-looking statements.

Factors that might cause future results to differ include, but are not limited to, the following:

● changes in governmental taxation, rules and regulations or actions and compliance, including environmental and securities matters, taken by regulatory authorities;

● the impact of restrictions on trade, including the imposition of new tariffs, port fees and other import restrictions by the

 United States ("U.S.") on its trading partners and the imposition of retaliatory tariffs by China and the European Union ("E.U.") on the US, and potential further protectionist measures and/or further retaliatory actions by others, including the imposition of tariffs or penalties on vessels calling in key export or import ports such as the U.S., E.U. and/or China;

● changes in economic and competitive conditions affecting our business, including market fluctuations in charter rates and charterers' abilities to perform under existing time charters;

● ● our future operating or financial results; the central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates;

● our continued borrowing availability under our existing and future debt agreements and compliance with the covenants contained therein;

● our ability to procure or have access to financing, our liquidity and the adequacy of cash flows for our operations;

● our ability to successfully employ our vessels, including under time charters;

● changes in our operating expenses, including bunker fuel prices, crewing expenses, dry docking costs, general and administrative expenses and insurance costs, including adequacy of coverage;

● our ability to fund future capital expenditures and investments in the acquisition and refurbishment of our vessels (including the amount and nature thereof and the timing of completion thereof, the delivery and commencement of operations dates, expected downtime and lost revenue);

● planned, pending or recent acquisitions and divestitures, business strategy and expected capital spending or operating expenses, including dry-docking, surveys, upgrades and insurance costs;

● vessel breakdowns and instances of off-hire;

● potential claims or liability from future litigation, government inquiries and investigations and potential costs due to environmental damage and vessel collisions;

● the arrest or detention of our vessels by maritime claimants or governmental authorities;

● any disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach;

● general product tanker and dry-bulk shipping market trends, including fluctuations in charter hire rates and vessel values and their useful lives;

● changes in supply and demand in the product tanker and dry-bulk shipping sectors, including the market for our vessels and the number of new buildings under construction;

● disruption of world trade due to rising protectionism, breakdown of multilateral trade agreements, introduction or expansion of tariffs or other trade restrictions by countries, acts of piracy (e.g. east coast of Somalia), terrorism, political events, public health threats, international hostilities, including the recent armed conflicts between Russia and Ukraine, or the Ukraine War, as well as ongoing developments in the Middle East, including the war between –the U.S. and Israel, and Iran, vessel attacks in the Red Sea, the Strait of Hormuz and other terrorist activity in the region, oil and other sanctions on Iran imposed by multiple jurisdictions, or the Middle East conflicts, and related instability;

● changes in interest rates, including the impact on our debt from movements in Secured Overnight Financing Rate, or SOFR, and foreign exchange rates;

● changes in seaborne and other transportation;

● business disruptions due to natural disasters and the length and severity of epidemics and pandemics and their impact on the demand for seaborne transportation in the tanker and dry-bulk sectors;

● any non-compliance with the U.S. Foreign Corrupt Practices Act of 1977, or FCPA, or other applicable regulations relating to bribery or corruption;

● the impact of scrutiny and changing expectations from investors, lenders and other market participants with respect to our Environmental, Social and Governance, or ESG, policies and the impact of climate change;

● general domestic and international political conditions; the length and number of off-hire periods and dependence on key employees and third-party managers; and

● other factors discussed under the "Item 3. Key Information – D. Risk Factors" in this Annual Report and please see the Company's other filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.

You should not place undue reliance on forward-looking statements contained in this Annual Report, because they are statements about events that are not certain to occur as described or at all. All forward-looking statements in this Annual Report are qualified in their entirety by the cautionary statements contained in this Annual Report. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements. Except to the extent required by applicable law or regulation, we undertake no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this Annual Report or to reflect the occurrence of unanticipated events.

**PART I**

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

Not applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not applicable.

**ITEM 3. KEY INFORMATION**

**A. [Reserved]**

**B. Capitalization and Indebtedness**

Not applicable.

**C. Reasons for the Offer and Use of Proceeds**

Not applicable.

**D. Risk Factors**

Investing in our securities is highly speculative and involves a degree of risk. Before making an investment in our securities, you should carefully consider the risks described below, as well as other information included or incorporated by reference in this Annual Report. The summary of risk factors below is qualified in its entirety by the more fulsome risk factors that follow.

**Summary of Risk Factors**

*Risks Related to Our Industry*

● World events, including the ongoing hostilities of the Ukraine War as well as the recent war between the U.S. and Israel, and Iran or other Middle East conflicts could adversely affect our results of operations and financial condition.

● We operate our vessels worldwide and as a result, our vessels are exposed to international and inherent operational risks that may reduce revenue or increase expenses.

● Our revenues are derived substantially from two industry sectors where charter hire rates for product tankers and dry-bulk carriers are historically seasonal, cyclical and volatile.

● Our business is affected by macroeconomic conditions, including rising inflation, interest rates, market volatility, economic uncertainty, and supply chain constraints, and global economic conditions may negatively impact the product tanker and dry-bulk industries and our financial results and operations.

● An over-supply of product tanker and dry-bulk capacity may lead to reductions in charter rates, vessel values and profitability.

● An economic slowdown or changes in the economic and political environment in the Asia Pacific region could have a material adverse effect on our business, financial condition and results of operations.

● Changes in fuel or bunker prices may adversely affect results of operations.

● If our vessels call on ports or territories located in or operate in countries or territories that are the subject of sanctions or embargoes imposed by the United States, the United Kingdom, the European Union, the United Nations, or other governmental authorities, or engage in other transactions or dealings that would be violative of applicable sanctions laws, it could result in monetary fines and penalties and adversely affect our reputation and the market price of our common shares.

● Governments could requisition our vessels during a period of war or emergency.

● Scrutiny and changing expectations from investors, lenders and other market participants with respect to our ESG policies may impose additional costs on us or expose us to additional risks.

● We are subject to increasingly complex laws and regulations, including environmental and safety laws and regulations, which expose us to liability and significant expenditures, and can adversely affect our insurance coverage and access to certain ports as well as our business, results of operations and financial condition.

● Climate change and greenhouse gas restrictions may adversely impact our operations, markets and capital sources.

● Technological innovation and quality and efficiency requirements from our customers could reduce our charter hire income and the value of our vessels.

*Risks Related to Our Business and Operations*

● We operate in highly competitive international markets, and we may not be able to successfully mix our charter durations profitably.

● We may be unable to secure short to medium term employment for our vessels at profitable rates, and present and future vessel employment could be adversely affected by an inability to clear customers' risk assessment process and the Company's growth depends on its ability to expand relationships with existing customers and obtain new customers, for which it will face substantial competition.

● A substantial portion of our revenues is derived from a limited number of customers, and the loss of any of these customers could result in a significant loss of revenues and cash flow.

● We depend on International Tanker Management, or ITM, Pyxis Maritime Corp., or Maritime, and Konkar Shipping Agencies, S.A., or Konkar Agencies, to operate our business and our business could be harmed if they fail to perform their services and execute their responsibilities satisfactorily.

● While the Company has two scrubber-fitted dry-bulk vessels, it does not plan to install scrubbers on its product tankers nor its one remaining dry bulk carrier and will have to pay more for fuel which could adversely affect the Company's business, results of operations and financial condition.

● We may not be able to implement our business strategy successfully or manage our growth effectively.

● If we purchase and operate secondhand vessels, we will be exposed to start-up costs and increased operating expenses which could adversely affect our earnings and, as our fleet ages, the risks associated with older vessels could adversely affect our ability to obtain profitable charters.

● Declines in charter rates and other market deterioration could cause us to incur vessel impairment charges.

● Our founder, Chairman and Chief Executive Officer has affiliations with Maritime and Konkar Agencies, which may create conflicts of interest; Mr. Valentis has a majority ownership of the Company and can significantly influence the outcome of matters on which our shareholders can vote

● Our insurance may be insufficient to cover losses that may result from our operations.

*Risks Related to Our Common Stock*

● The market price of our common stock has fluctuated widely and may do so in the future.

● Investors may view our owning and operating in two different shipping sectors negatively, which may decrease the trading price of our securities.

● We do not intend to pay common stock cash dividends in the near future and cannot assure you that we will ever pay common stock dividends.

● If our common stock does not meet the Nasdaq Capital Market's, or Nasdaq's, minimum share price requirement, and if we cannot cure such deficiency within the prescribed timeframe, our common stock could be delisted.

*Risks Related to Taxation*

● Various tax rules or changes thereto may adversely impact the Company's business, results of operations and financial condition.

● If U.S. tax authorities were to treat us as a "controlled foreign corporation," there could be adverse U.S. federal income tax consequences to certain U.S. investors.

**Risks Related to Our Industry**

***World events, including the ongoing hostilities of the Ukraine War, the recent war between Israel-US and Iran as well as other conflicts in the Middle East, could adversely affect our results of operations and financial condition****.*

Ongoing hostilities between Russia and Ukraine and the responses of the E.U., the United Kingdom, or the U.K, the U.S. and their allies to these hostilities, the recent armed conflict between the U.S. and Israel, and Iran, as well as the threat of future wars, hostilities, terrorist attacks and piracy continue to cause uncertainty in international seaborne trade and the world financial markets and may affect our business, operating results and financial condition. Since 2022, prohibitions on the importation of Russian refined petroleum products into the U.S., U.K, and E.U. and the implementation for price caps on these products have been in effect. The ongoing conflict could result in the imposition of further economic sanctions or new categories of export restrictions against individuals or entities in or connected to Russia. These conflicts may lead to additional armed hostilities, which may contribute to further economic instability in the global financial and energy markets, including adding inflationary pressures and slowdown of growth. Such conflicts have disrupted supply chains and caused instability and to some extent protectionism in the global economy. These uncertainties could also adversely affect our ability to obtain any additional financing or, if we are able to obtain additional financing, to do so on terms less favorable to us. As in the past, political conflicts have also resulted in attacks on vessels, mining of waterways and other efforts to disrupt international shipping. Continuing conflicts and hostilities in the Middle East, including between the U.S. and Israel and Iran, as well as in other geographical areas or countries, such as China and neighboring Taiwan and other countries in the South China Sea region, terrorist or other attacks, and war (or threatened war) or international hostilities, such as those between the United States and North Korea may lead to further armed conflicts or acts of terrorism around the world, which may contribute to further global economic instability and hurt international commerce. Any of these occurrences could have a material adverse impact on our business, financial condition and results of operations. As of April 1, 2026, we have one tanker, the *Pyxis Karteria*, which is safely anchored outside of Iraq and awaiting charterer's instructions to transit the Strait of Hormuz. The vessel is fully laden with cargo and remains under time charter which is in full force and effect. War risk insurance premiums are being paid by the charterer, ST Shipping, a subsidiary of Glencore PLC. However, we are incurring higher crew wages of over $4 thousand per day until the vessel leaves the war zone. The Company cannot currently determine whether any portion of these incremental crew costs will be recoverable from insurers or any other party. At this time, we have no certainty if and when safe passage will occur through the Persian Gulf and Gulf of Oman onward to the port of cargo delivery.

 ****

***We operate our vessels worldwide and as a result, our vessels are exposed to international and inherent operational risks that may reduce revenue or increase expenses.***

The international shipping industry is an inherently risky business involving global operations. The operation of ocean-going vessels in international trade is affected by a number of risks. Our vessels and their cargoes will be at risk of being damaged or lost because of events, including adverse weather conditions, grounding, fire, explosions, mechanical failure, unexpected tank corrosion, vessel and cargo property loss or damage, hostilities, labor strikes, stowaways, placement on our vessels of illegal drugs and other contraband by smugglers, war, terrorism, piracy, human error, environmental accidents generally, collisions and other catastrophic natural and marine disasters. In addition, changing economic, regulatory and political conditions in some countries, including political and military conflicts, have from time to time resulted in attacks on vessels, mining of waterways, piracy, payment of ransoms, terrorism, labor strikes and boycotts. These sorts of events could interfere with shipping routes and result in market disruptions which may reduce our revenue or increase our expenses. An accident involving any of our vessels could result in death or injury to persons, loss of property or environmental damage, delays in the delivery of cargo, disrupt our shipping routes, damage to our customer relationships and reputation, loss of revenues from or termination of charter contracts, governmental fines, increased litigation costs, penalties or restrictions on conducting business or higher insurance rates. International shipping is also subject to various security and customs inspection and related procedures in countries of origin and destination and transshipment points. Inspection procedures can result in the seizure of cargo and/or our vessels, delays in the loading, offloading or delivery and the levying of customs duties, fines or other penalties against us, and increased legal costs. It is possible that changes to inspection procedures could impose additional financial and legal obligations on us. Furthermore, changes to inspection procedures could also impose additional costs and obligations on our customers and may, in certain cases, render the shipment of certain types of cargo uneconomical or impractical. Any such changes or developments may have a material adverse effect on our future performance, results of operations, cash flows and financial position.

A spill of petroleum may cause significant environmental damage, and the associated costs could exceed the insurance coverage available to the Company. Compared to other types of vessels, tankers are exposed to a higher risk of damage and loss by fire, whether ignited by a terrorist attack, collision, or other cause, due to the high flammability and high volume of the refined petroleum products transported in tankers. If the Company's vessels suffer damage, they may need to be repaired at a dry-docking facility. The costs of drydock repairs are unpredictable and may be substantial. The Company may have to pay dry-docking costs that its insurance does not cover in full. The loss of revenues while these vessels are being repaired and repositioned, as well as the actual cost of these repairs, may be material. In addition, the Company may be unable to find space at a suitable dry-docking facility or its vessels may be forced to travel to a dry-docking facility that is not conveniently located to the vessels' positions. The loss of earnings while these vessels are forced to wait for space or to travel to more distant dry-docking facilities may also be material. Further, the total loss of any of the Company's vessels could harm its reputation as a safe and reliable vessel owner and operator. If the Company is unable to adequately maintain or safeguard its vessels, it may be unable to prevent any such damage, costs, or loss which could negatively impact its business, results of operations and financial condition.

***Our revenues are derived substantially from two industry sectors where charter hire rates for product tankers and dry-bulk carriers are seasonal, cyclical and volatile.***

All of our revenues are derived from two sectors, the product tanker and dry-bulk sectors, and therefore our financial results depend on chartering activities and developments in these sectors. These shipping sectors are cyclical and volatile in charter hire rates and therefore charter rates payable under any replacement charters and vessel values will depend upon, among other things, economic conditions in the product tanker and dry-bulk markets at that time and changes in the supply and demand for vessel capacity. As of March 23, 2026, the Baltic Dry Index, or BDI, an index of the daily average of charter rates for key routes published by the Baltic Exchange Limited, which has long been viewed as the main benchmark to monitor the movements of the dry bulk charter market and the performance of the entire shipping market, stood at 2,037, up 23.3% from one year ago. The all-time BDI high was 11,793 in 2008, and the all-time low was 290 in 2016. Dry bulk market conditions remained volatile in 2025, albeit improving during the second half of the year due to resilient global economic activity, including Chinese demand. Consequently, dry bulk charter rates steadily increased as the year progressed with higher vessel utilization. Despite the normal seasonal softness and unprecedented geopolitical events, supportive market conditions continued in the first part of 2026.

Primarily due to the Ukraine War and, to a lesser extent, the conflicts in the Middle East, the product tanker sector has experienced robust market conditions from 2022 through 2024, which has resulted in the disruption of trade routes and expansion of ton-mile voyages. Moreover, the Israel-U.S. war with Iran has caused a recent spike in charter rates for tankers. For example, according to a group of international ship brokers, the average one-year time charter rate for an eco-efficient MR was indicated to be $33,000/day as of mid-March 2026, which is an increase of almost $10,000 from early January, 2026.

Any renewal charters that the Company enters into may not be sufficient to allow the Company to operate its vessels profitably. If charter hire rates become depressed in the future when our charters expire, we may be unable to re-charter our vessels at rates as favorable to us, with the result that our earnings and available cash flow could be adversely affected. In addition, a decline in charter hire rates may cause the value of our vessels to decline, which could negatively impact our business, results of operations and financial condition.

***Charter hire rates depend on the demand for, and supply of, product tanker and dry-bulk vessels.***

All of our revenues are generated from operating a fleet of product tankers and dry-bulk carriers. Freight rates among different types of vessels in these sectors can be highly volatile. The factors affecting the supply and demand for product tankers and dry-bulk vessels are beyond our control, and the nature, timing and degree of changes in industry conditions are unpredictable and we may not be able to correctly assess the nature, timing and degree of changes in industry conditions.

Factors that influence the demand for product tanker capacity include:

● the demand for and supply of refined petroleum products and other liquid bulk products, including vegetable and edible oils;

● competition from alternative sources of energy and a shift in consumer demand towards other renewable energy resources such as wind, solar or water energy as well as greater use of electric powered vehicles;

● increases in the production of refined petroleum products in areas linked by pipelines to consuming areas, the extension of existing, or the development of new, pipeline systems in markets we may serve, or the conversion of existing non-oil pipelines to refined petroleum products pipelines in those areas;

● any restrictions on crude oil production imposed by the Organization of the Petroleum Exporting Countries, or OPEC+, and non-OPEC oil producing countries;

● the distance over which oil and oil products are to be moved by sea;

● the introduction of new expansion or closure of crude oil refineries and storage facilities, distance oil and refined petroleum products are moved by sea and changes in transportation patterns; and

● competition from other shipping companies and other modes of transportation, such as railroads that compete with product tankers.

Factors that influence the demand for dry-bulk vessel capacity include:

● supply of and demand for and seaborne transportation of energy resources (e.g. coal), commodities, and semi-finished and finished consumer and industrial products;

● changes in the exploration or production of energy resources, commodities, and semi-finished and finished consumer and industrial products;

● the location of regional and global exploration, production and manufacturing facilities;

● the location of consuming regions for energy resources, commodities, and semi-finished and finished consumer and industrial products; and

● the globalization of production and manufacturing.

Factors that influence the demand for both product tanker and dry-bulk carrier capacity include:

● technological developments, which affect the efficiency of vessels and time to vessel obsolescence;

● the globalization of manufacturing and developments of transportation services;

● global and regional economic and political conditions, including armed conflicts, terrorist activities, sanctions, embargoes, import and export restrictions, nationalizations, and strikes, which can cause fluctuations in industrial and agricultural production;

● disruptions and developments in international trade, including vessel terrorist attacks in the Red Sea, the Strait of Hormuz and Gulf of Aden in connection with the Middle East conflicts as well as renewed acts of piracy, such as, off the east coast of Somalia;

● legal and regulatory changes including regulations adopted by supranational authorities and/or industry bodies, such as safety and environmental regulations and requirements;

● developments in international trade including those relating to the imposition of tariffs and trade embargoes;

● economic slowdowns, business disruptions, including supply chain issues, due to natural or other disasters, or otherwise;

● port and canal congestion;

● changes in seaborne and other transportation patterns, including the distance cargo is transported by sea;

● bunker (fuel) prices;

● weather;

● government incentives to encourage relocation of manufacturing facilities within domestic markets, i.e. reshoring; and

● currency exchange rates.

Demand for our oceangoing vessels is dependent upon economic growth in the world's economies, seasonal and regional changes in demand and changes to the capacity of the global dry bulk fleet and tanker fleet and the sources and supply of dry bulk cargo and petroleum and other liquid bulk products transported by sea. Continued adverse economic, political or social conditions or other developments, including tariffs or other trade restrictions, could further negatively impact charter rates and therefore have a material adverse effect on our business and results of operations.

Factors that influence the supply of product tanker and dry-bulk vessel capacity include:

● the number of newbuilding orders and vessel deliveries, including delays;

● the number of shipyards and ability of shipyards to deliver vessels;

● port or canal congestion;

● the imposition or expansion of sanctions;

● the number of product tankers trading with crude or "dirty" oil products;

● the efficiency, age and specifications of the world product tanker fleet;

● the phasing of maritime shipping into the E.U. Emission Trading Scheme, or the E.U. ETS, which applies to all large ships of 5,000 gross tonnage or above;

● crew availability;

● vessels operational speeds;

● vessel casualties;

● technological advances in vessel design, capacity, propulsion technology and fuel consumption efficiency;

● the degree of scrapping or recycling of older vessels, depending, among other things, on scrapping or recycling rates and international scrapping or recycling regulations;

● the price of steel and vessel equipment;

● product and inventory imbalances of certain goods and products among regions, including shortages or surpluses in supply, as well as developments in international trade, each of which may affect the level of trading activity;

● number of vessels that are out of service, namely those that are laid-up, drydocked, awaiting repairs or otherwise not available for hire;

● availability and cost of financing for new and second-hand vessels, including interest rates;

● bunker prices;

● business disruptions, including supply chain disruptions, the imposition of tariffs, port congestion, and natural or other disasters, and disruptions of shipping routes due to accidents, political events or armed conflicts;

● changes in national or international regulations that may effectively cause reductions in the carrying capacity of vessels or early obsolescence of tonnage; and

● changes in environmental and other regulations that may limit the useful lives of vessels.

In addition to the prevailing and anticipated charter rates, factors that affect the rate of newbuilding, scrapping and laying-up include newbuilding prices, secondhand vessel values in relation to scrap prices, costs of bunkers and other operating costs, costs associated with classification society special surveys, normal maintenance and insurance coverage costs, the efficiency and age profile of the existing product tanker and dry bulk fleets in the global market and government and industry regulation of maritime transportation practices, particularly environmental protection laws and regulations. These factors influencing the supply of and demand for product tanker and dry-bulk capacity and charter rates are outside of our control, and we may not be able to correctly assess the nature, timing and degree of changes in industry conditions. We cannot assure you that we will be able to successfully charter our product tankers and dry-bulk vessels in the future at all or at rates sufficient to allow us to meet our contractual obligations, including repayment of our indebtedness.

Furthermore, if new product tankers and dry-bulk carriers are built that are more efficient, more flexible, have longer physical lives or use more environmentally friendly fuel than our vessels, competition from these more technologically advanced vessels could adversely affect the amount of charter hire payments we receive for our vessels once their current charters expire and the resale value of our vessels could significantly decrease. In addition, we may not be able to provide or maintain ESG standards acceptable to customers, regulators and financing sources. For example, younger vessels may have better emissions ratings, such as the Carbon Intensity Index, or CII, and Energy Efficiency Existing Ship Index, or EEXI, which could result in lower voyage costs to the charterer and reduced demand for less-efficient, older vessels.

***Our business is affected by macroeconomic conditions, including rising inflation, interest rates, market volatility, economic uncertainty, and supply chain constraints, and global economic conditions may negatively impact the product tanker and dry-bulk industries and our financial results and operations.***

Various macroeconomic factors could adversely affect our business and the results of our operations and financial condition, including rising inflation, high interest rates, global supply chain constraints, currency exchange rates and overall economic conditions and uncertainties such as those resulting from the current and future conditions in the global financial markets. For instance, inflation has negatively impacted us by increasing our labor costs, through higher wages, rising operating expenses as well as more expensive dry dockings. Supply chain constraints have led to higher inflation, which if sustained could have a negative impact on our operations and vessel dry dockings. If inflation or other factors were to significantly increase, our business operations may be negatively affected. Interest rates, the liquidity of the credit markets and the volatility of the capital markets could also affect the operation of our business and our ability to raise capital on favorable terms, or at all, in order to fund or expand our operations.

Major market disruptions and adverse changes in market conditions and regulatory climate in the Middle East, Venezuela, China, the United States, the E.U. and worldwide may adversely affect our business or impair our ability to borrow amounts under credit facilities or any future financial arrangements. Chinese dry bulk imports have accounted for the majority of global dry bulk transportation growth annually over the last decade. Accordingly, our financial condition and results of operations, as well as our future prospects, would likely be hindered by an economic downturn in any of these countries or geographic regions. While global economic growth continues to moderate, the outlook for China remains uncertain, due to its reliance on exports and government stimulus programs to counter-balance the ongoing domestic real estate crisis and lack-luster consumption, as well as the impact of trade tensions with the United States. In addition, on February 13, 2026, the U.S. announced its proposed Maritime Action Plan which, if enacted, would, among other proposals, charge fees in an amount to be determined based on cargo weight upon arrival of any foreign built commercial vessel to a U.S. port.

Broader economic slowdown, high energy prices and accelerating inflation, together with the concurrent volatility in charter rates and declining vessel values, may have a material adverse effect on our results of operations, financial condition and cash flows and could cause the price of our common shares to decline. An extended period of deterioration in the outlook for the world economy could reduce the overall demand for our services and could also adversely affect our ability to obtain financing on acceptable terms or at all.

Continuing concerns over inflation, interest rates, energy costs, geopolitical issues, including the Ukraine War, the war between the U.S. and Israel, and Iran and other Middle East conflicts, and the availability and cost of credit have contributed to increased volatility and diminished expectations for the economy and the markets going forward. These factors, combined with volatile oil prices, rising unemployment, declining business and consumer confidence, may create fears of a possible economic recession. Domestic and international equity markets continue to experience heightened volatility. A weakness in the global economy may cause a decrease in worldwide demand for certain goods and, thus, shipping.

The occurrence or continued occurrence of any of the foregoing events could have a material adverse effect on our business, results of operations, cash flows, financial condition and the value of our vessels.

***An over-supply of product tanker and dry-bulk capacity may lead to reductions in charter rates, vessel values and profitability.***

The market supply of product tankers is affected by a number of factors such as the demand for energy resources, oil, petroleum and chemical products, the level of current and expected charter hire rates, asset and newbuilding prices and the availability of financing, as well as overall global economic growth in parts of the world economy, including Asia, and has been increasing as a result of the delivery of substantial newbuilding orders over the last few years.

There has been a global trend towards energy efficient technologies, lower environmental emissions and alternative sources of energy. In the long-term, demand for oil may be reduced by increased availability of such energy sources and machines that run on them. Furthermore, if the capacity of new ships delivered exceeds the capacity of product tankers being scrapped and lost, product tanker capacity will increase. Despite newbuilding orders for product tankers declining in 2025, orders for the construction of new product tankers significantly increased in 2023 and 2024, and overall the orderbook remains high in relation to the size of the global fleet. If the supply of product tanker capacity increases and if the demand for product tanker capacity does not increase correspondingly, charter rates and vessel values could materially decline. In addition, tankers currently used to transport crude oil and other "dirty" products may be "cleaned up" and enter into the product tanker market, which would increase the available product tanker tonnage which may affect the supply and demand balance for product tankers. These changes could have an adverse effect on our business, results of operations and financial position.

The global drybulk fleet has increased significantly over the past 10 years as a result of the large number of newbuilding orders placed throughout this period. Orders for construction of new bulkers substantially increased in 2023 and 2024, but moderated in 2025. If drybulk capacity outpaces vessel demand, drybulk charter rates could significantly decline. In such cases, if the supply of vessels is not fully absorbed by the market, charter rates and value of the vessels may have a material adverse effect on our results of operations and our compliance with current or future covenants in any of our agreements.

Furthermore, over the last 13 years, a number of vessel owners have ordered and taken delivery of so-called "eco-efficient" vessel designs, which offer significant bunker savings as compared to older designs. Further advancement in these designs of younger vessels could reduce demand for our older eco-efficient ships and expose us to lower vessel utilization and/or decreased charter rates.

***An economic slowdown or changes in the economic and political environment in the Asia Pacific region could have a material adverse effect on our business, financial condition and results of operations.***

We anticipate a significant number of the port calls made by our vessels will continue to involve the loading or discharging of cargoes in ports in the Asia Pacific region. As a result, any negative changes in economic conditions in any Asia Pacific country, particularly in China, may have a material adverse effect on our business, financial condition and results of operations, as well as our future prospects. We cannot assure you that the Chinese economy will not experience a significant contraction in the future. The IMF reported GDP growth of 5.0% for China in 2025, but as of January, 2026, it is forecasting a decline in China's GDP growth to 4.5% in 2026, and 4.0% in 2027. This projected decline is due to slower economic growth from the slump of the property sector, lagging domestic consumption and aging population.

Although state-owned enterprises still account for a substantial portion of the Chinese industrial output, in general, the Chinese government is adjusting the level of direct control that it exercises over the economy through state plans and other measures. If the Chinese government does not continue to pursue a policy of economic reform, the level of imports to and exports from China could be adversely affected, as well as by changes in political, economic and social conditions or other relevant policies of the Chinese government, such as changes in and implementation of laws, regulations or export and import restrictions. Moreover, an economic slowdown in the economies of the U.S., E.U. and other Asian countries and increasing protectionism may further adversely affect economic growth in China and elsewhere. Also, several initiatives are underway in China with a view to reduce their dependency on (foreign) oil, such as the Net Zero 2060 initiative, development of shale oil on its own territory and government fiscal policies to expand the sale of electric vehicles, which could impact the need for oil products transportation services. The method by which China attempts to achieve carbon neutrality by 2060, and any attendant reduction in the demand for oil, petroleum and related products, could have a material adverse effect on our business, cash flows and results of operations. In addition, the continuation of the weak real estate market in China may hurt consumer confidence and limit demand for new construction projects and thereby negatively impact demand for iron ore, coal and aggregates which may adversely affect demand for dry-bulk carriers.

***Our operations inside and outside of the United States expose us to global risks, such as political instability, terrorist or other attacks, piracy, war, international hostilities, global public health concerns and economic sanctions restrictions, which may affect the seaborne transportation industry, and adversely affect our business.***

We are an international company and primarily conduct our operations outside of the United States, and our business, results of operations, cash flows and financial condition may be adversely affected by changing economic, political and government conditions in the countries and regions where our vessels are employed or registered. Moreover, we operate in industry sectors of the economy that are likely to be adversely impacted by the effects of political conflicts.

Currently, the world economy faces a number of challenges, including trade tensions between the United States and a number of countries, such as China, the current political instability in Venezuela, the Middle East and the South China Sea region and other geographic countries and areas, war (or threatened war), such as those between Russia and Ukraine and between the U.S. and Israel, and Iran, or international hostilities, such as increasing tensions between the United States and China, North Korea and Cuba. The continuing threat of terrorist attacks around the world, as well as the frequent incidents of terrorism and ongoing conflict in the Middle East, and the continuing response of the United States and others to these attacks, as well as the threat of future terrorist attacks around the world, continue to cause uncertainty in the world's financial markets and may affect our business, operating results and financial condition. Further continuing instability and conflicts and other recent occurrences in the Middle East, Ukraine and in other geographic areas and countries may lead to additional acts of terrorism and armed conflicts around the world, which may disrupt international shipping and contribute to further instability in the global financial markets.

In the past, political instability has also resulted in attacks on vessels, mining of waterways and other efforts to disrupt international shipping, particularly in the Arabian Gulf region, the Black Sea in connection with the ongoing Ukraine War and in the Red Sea in connection with the Middle East armed conflicts. The recent war between the U.S. and Israel, and Iran and Iran's broad counter-responses affecting Israel and the Gulf states could lead to many unforeseen consequences. Acts of terrorism and piracy have also affected vessels trading in regions such as the South China Sea as well as the Gulf of Aden and east coast of Somalia, among others. Any of these occurrences could have a material adverse impact on our future performance, results of operation, cash flows and financial position.

Beginning in February of 2022, the United States, the United Kingdom, and the European Union, among other countries, announced various economic sanctions against Russia in connection with the aforementioned Ukraine War, which may adversely impact our business given Russia's role as a major global exporter of crude oil and natural gas. To date, the E.U. has implemented 19 rounds of sanctions against Russia since the start of the Ukraine War. The ongoing conflict could result in the imposition of further economic sanctions or new categories of export restrictions against individuals or entities in or connected to Russia. While in general much uncertainty remains regarding the global impact of the continuation of the conflict in Ukraine, and any potential resolution thereof, it is possible that such tensions could adversely affect the Company's business, financial condition, operations results, and cash flows.

The United States has issued several Executive Orders that prohibit certain transactions related to Russia, including prohibitions on the importation of certain Russian energy products into the United States (including crude oil, petroleum, petroleum fuels, oils, liquefied natural gas and coal), and all new investments in Russia by U.S. persons, among other prohibitions and export controls, and has issued numerous determinations authorizing the imposition of sanctions on persons who operate or have operated in the energy, metals and mining, and marine sectors of the Russian Federation economy, among other sectors. Designations under these sanctions programs are continuing, including in October 2025 against Lukoil, Rosneft, and certain of their subsidiaries. Increased restrictions on these sectors, or the expansion of sanctions to new sectors, may pose additional risks that could adversely affect our business and operations.

Furthermore, the United States, in conjunction with the G7, have implemented a Russian petroleum "price cap policy" which prohibits a variety of specified services related to the maritime transport of Russian Federation origin crude oil and petroleum products, including trading/commodities brokering, financing, shipping, insurance (including reinsurance and protection and indemnity), flagging, and customs brokering. An exception exists to permit such services when the price of seaborne Russian oil does not exceed the relevant price caps; but implementation of this price cap exception relies on a recordkeeping and attestation process that requires each party in the supply chain of seaborne Russian oil to demonstrate or confirm that oil has been purchased at or below the price cap which is currently $44.10/barrel. Effective as of February 27, 2025, the United States has also prohibited the provision of petroleum services by U.S. persons to persons located in Russia. An exception exists for the provision of petroleum services in certain specified circumstances, including for the provision of services for products purchased at or below the aforementioned price caps. Violations of the petroleum services prohibition or the price cap policy, including the risk that information, documentation, or attestations provided by parties in the supply chain are later determined to be false, may pose additional risks adversely affecting our business. While much uncertainty remains, the potential that the E.U., in conjunction with the G7, might replace the price cap policy in favor of a full maritime services ban for Russian crude oil exports and/or other petroleum products may also pose further risks that could affect our business.

Our business could also be adversely impacted by trade tariffs, trade embargoes, economic sanctions, or other changes in international trade policies that limit trading activities between the United States and other countries in the Middle East, Asia or elsewhere as a result of terrorist attacks, hostilities, or diplomatic or political pressures.

Governments may also turn to trade barriers to protect their domestic industries against foreign imports, thereby depressing shipping demand. Protectionist developments, or the perception that they may occur, may have a material adverse effect on global economic conditions, and may significantly reduce global trade. There is significant uncertainty about the future relationship between the United States, China, and other exporting countries, such as Canada, Mexico and within the E.U., including with respect to trade policies, treaties, government regulations, and tariffs. Indeed, although on February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act, or IEEPA, does not authorize the president to impose tariffs unilaterally, President Trump announced he would impose a new global 15% tariff pursuant to Section 122 of the Trade Act of 1974, and may continue to invoke other legal authorities, such as Section 301 of the Trade Act of 1974, to impose further tariffs. It is unknown whether and to what extent new and supplemental tariffs (or other new laws or regulations) will be adopted, or the effect that any such actions would have on us or our industry. If any new tariffs, legislation and/or regulations are implemented, or if existing trade agreements are renegotiated or, in particular, if the U.S. government takes further retaliatory trade actions due to the U.S.-China trade tension, such changes could have an adverse effect on our business, financial condition and results of operations. Additionally, the outlook for rest of the world remains uncertain and is dependent on inflation and destabilizing geopolitical events, including the major armed conflicts. Further, expanding international trade tensions could increase the likelihood of rising inflation and supply chain disruptions.

Moreover, increasing trade protectionism may cause an increase in (a) the cost of goods exported from regions globally, (b) the length of time required to transport goods and (c) the risks associated with exporting goods. Such increases may significantly affect the quantity of goods to be shipped, shipping time schedules, voyage costs and other associated costs, which could have an adverse impact on our charterers' business, operating results and financial condition and could thereby affect their ability to renew and increase the number of their charters with us. This could have a material adverse effect on our business, results of operations or financial condition.

Economic slowdown in the Asia Pacific region, particularly in China, may have a material adverse effect on our business, as we anticipate a significant number of the port calls made by our vessels will involve the loading or discharging of dry-bulk commodities in ports in the Asia Pacific region. Changes in the economic conditions of China, and policies adopted by the government to regulate its economy, including with regards to tax matters and environmental concerns, and their implementation by local authorities could affect our vessels that are either chartered to Chinese customers or that call to Chinese ports, our vessels that undergo dry docking at Chinese shipyards and any financial institutions with whom we may enter into financing agreements, and could have a material adverse effect on our business, results of operations and financial condition.

In addition, public health threats, such as highly communicable diseases or viruses, outbreaks of which have from time to time occurred in various parts of the world in which we operate, including China, Japan and South Korea, which may even become pandemics, could lead to a significant decrease of demand for seaborne transportation. Such events may also adversely impact our operations, including timely rotation of our crews, the timing of completion of any future newbuilding projects or repair works in drydock as well as the operations of our customers. Delayed rotation of crew may adversely affect the mental and physical health of our crew and the safe operation of our vessels as a consequence.

***Changes in fuel, or bunkers, prices may adversely affect results of operations.***

Fuel, or bunkers, is a significant expense in shipping operations for our vessels employed on the spot market and changes in the price of fuel may adversely affect the Company's profitability and can have a significant impact on earnings. With respect to our vessels employed on time charter, the charterer is generally responsible for the cost and supply of fuel, but such cost may affect the charter rates we are able to negotiate for our vessels. The price and supply of fuel is unpredictable and fluctuates based on events outside our control, including geopolitical developments, supply and demand for oil and gas, actions by OPEC and other oil and gas producers, war and unrest in oil producing countries and regions, regional production patterns and environmental concerns and regulations. The cost of fuel is a significant factor in negotiating charter rates and can affect us in both direct and indirect ways. This cost will be borne by us when our tankers are not employed or are employed on voyage charters. Even where the cost of fuel is borne by the charterer, which is the case with all of our existing time charters, that cost may affect the level of charter rates that charterers are prepared to pay.

Bunker prices continue to be volatile due to many factors, including crude oil prices and local market conditions. For example, the price for very low sulfur fuel oil, or VLSFO, in Singapore has shown a wide range over a recent two-year period starting from a high of around $716 per metric ton, or mt, in November 2023 dropping to a low of approximately $422 per mt by December 2025. During this same period, the Singapore price of marine gas oil, or MGO, has declined 22% to $621/mt. The cost of these low sulfur fuels is more expensive than high sulfur bunker fuel which was priced at $353/mt at the same recent date and port. Due to the recent war between the U.S. and Israel, and Iran and concerns about availability, the prices of bunker fuels have jumped to record highs at some locations. As of March 23, 2026 the prices of VLSFO and MGO in Singapore was $980 and $1,849 per mt.

***Seasonal fluctuations in industry demand could have a material adverse effect on our business, financial condition and results of operations.***

We operate our vessels in markets that have historically exhibited seasonal variations in demand and, as a result, in charter rates. Seasonality is related to several factors and may result in quarter-to-quarter volatility in our results of operations, for example, the market for seaborne dry-bulk transportation services is typically stronger in the fall months in anticipation of increased consumption of coal in the northern hemisphere during the winter months and the grain export season from North America. Similarly, the market for such services is typically stronger in the spring months in anticipation of the South American grain export season due to increased distance traveled by bulkers to their end destination known as ton mile effect, as well as increased coal imports in parts of Asia due to additional electricity demand for cooling during the summer months. Product tanker markets are typically stronger in the early winter months as a result of increased refined petroleum products consumption in the northern hemisphere for heating, but weaker in the Fall and early Spring as a result of lower transportation demand combined with refinery maintenance. In addition, unpredictable weather patterns in these months tend to disrupt vessel scheduling and supplies of certain commodities. If increased revenues normally generated in the stronger months are not sufficient to offset any decreases in revenue in the slower months, this seasonality could have a material adverse effect on our business, financial condition and results of operations.

***The operation of dry-bulk vessels has particular operational risks which may not be adequately covered by insurance.***

The operation of dry-bulk vessels has certain unique risks. We have ownership of three mid-sized bulkers. The *Konkar Ormi* has four top-side cranes for loading and uploading dry cargoes. With a dry-bulk carrier, the cargo itself and its interaction with the vessel can be an operational risk. By their nature, dry-bulk cargoes are often heavy, dense, easily shifted, and react badly to water exposure. In addition, some mid-sized dry-bulk vessels are often subjected to battering treatment during discharging operations with grabs/cranes, jackhammers (to pry encrusted cargoes out of the hold) and small bulldozers. This treatment may cause damage to the vessel and unexpected repair costs, which may not be covered by insurance, as well as off-hire days. Vessels damaged due to treatment during discharging procedures may affect a vessel's seaworthiness while at sea. Hull fractures in dry-bulk carriers may lead to the flooding of the vessels' holds. If a dry-bulk vessel suffers flooding in its forward holds, the bulk cargo may become so dense and waterlogged that its pressure may buckle the vessel's bulkheads, leading to the loss of a vessel. If we are unable to adequately maintain our dry-bulk carriers, we may be unable to prevent these events. Any of these circumstances or events could negatively impact our business, financial condition, and results of operations.

***If our vessels call on ports or territories located in or operate in countries or territories that are the subject of sanctions or embargoes imposed by the United States, the United Kingdom, the European Union, the United Nations, or other governmental authorities, or engage in other transactions or dealings that would be violative of applicable sanctions laws, it could result in monetary fines and other penalties and adversely affect our reputation and the market price of our common shares.***

Although we intend to maintain compliance with all applicable sanctions and embargo laws, and we endeavor to take steps designed to mitigate such risks, it is possible that, in the future, our vessels may call on ports in countries or territories that are the subject of country-wide or territory-wide comprehensive sanctions and/or embargoes imposed by the U.S. government or other applicable governmental authorities, or Sanctioned Jurisdictions, or engage in other such transactions or dealings that would be violative of applicable sanctions, on charterers' instructions and/or without our consent. If such activities result in a violation of sanctions or embargo laws, we could be subject to monetary fines, civil and criminal penalties, or other sanctions, and our reputation and the market for our common stock could be adversely affected. Sanctions and embargo laws and regulations vary in their application, and by jurisdiction, as they do not all apply to the same covered persons or proscribe the same activities, and such sanctions and embargo laws and regulations may be amended or expanded over time. The U.S., U.K, and E.U. have enacted new sanctions programs in recent years. Additional countries or territories, as well as additional persons or entities within or affiliated with those countries or territories, have, and in the future will, become the target of sanctions. These require us to be diligent in ensuring our compliance with sanctions laws. Current or future counterparties of ours may be affiliated with persons or entities that are, or may be in the future, the subject of sanctions or embargoes imposed by the U.S., the U.K, the E.U., and/or other international bodies. If we determine that such sanctions or embargoes require us to terminate existing or future contracts to which we, or our subsidiaries, are party, or if we are found to be in violation of such applicable sanctions or embargoes, our results of operations may be adversely affected, we could face monetary fines or civil and criminal penalties, or we may suffer reputational harm.

In addition, if we become a casualty in a Sanctioned Jurisdiction, our underwriters may not provide required security, which could lead to the detention and subsequent loss of our vessel and the imprisonment of our crew, and our insurance policies may not cover the costs and losses associated with the incident. Further, our lenders may determine that any non-compliance with applicable sanctions and embargoes imposed by the U.K., the E.U., the United Nations, or the U.S. constitutes an event of default under current or future debt facility agreements. An event of default may lead to an acceleration of the repayment of debt under the applicable facility in question and may also result in defaults or enforcement actions under related guaranty documents or other financing documents, which could have a material adverse effect on our future performance, results of operations, cash flows and financial position, and could lead to bankruptcy or other insolvency proceedings.

As a result of the Ukraine War, the U.S., E.U. and U.K, together with numerous other countries, have imposed significant sanctions on persons and entities associated with Russia and Belarus, as well as comprehensive sanctions on certain areas within the Donbas region of Ukraine, and such sanctions apply to entities owned or controlled by such designated persons or entities. These sanctions adversely affect our ability to operate in the region and also restrict parties whose cargo we may carry. Sanctions against Russia have also placed significant prohibitions on the maritime transportation of seaborne Russian oil and refined products, the importation of many Russian energy products and other goods, and new investments in the Russian Federation. These sanctions, or other restrictions imposed by the private sector as a result of sanctions enacted by governmental authorities, further limit the scope of permissible operations and cargo we may carry. We may also encounter potential contractual disputes with charterers due to the various sanctions targeting Russian interests and Russian cargo.

Although we believe that we have been in compliance with all applicable sanctions and embargo laws and regulations, and intend to maintain such compliance, there can be no assurance that we will be in compliance at all times in the future, particularly as the scope of certain laws may be unclear and may be subject to changing interpretations. Any such violation could result in fines, penalties or other sanctions that could severely impact our ability to access the U.S. capital markets, among other countries, and conduct our business, and could result our reputation and the markets for our securities to be adversely affected and/or in some investors deciding, or being required, to divest their interest, or refrain from investing, in us. In addition, certain institutional investors may have investment policies or restrictions that prevent them from holding securities of companies that have contracts with countries or territories identified by the U.S. government as state sponsors of terrorism. The determination by these investors not to invest in, or to divest from, our common stock may adversely affect the price at which our common stock trades. Moreover, our charterers may violate applicable sanctions and embargo laws and regulations as a result of actions that do not involve us or our vessels, and those violations could in turn negatively affect our reputation. In addition, our reputation and the market for our securities may be adversely affected if we engage in certain other activities, such as entering into charters with individuals or entities that are not controlled by the governments of countries or territories that are the subject of certain U.S. sanctions or embargo laws, or engaging in operations associated with those countries or territories pursuant to contracts with third parties that are unrelated to those countries or territories or entities controlled by their governments. Additionally, the U.S. Iran Threat Reduction Act amended the Exchange Act, to require issuers that file annual or quarterly reports under Section 13(a) of the Exchange Act to include disclosure in their annual and quarterly reports as to whether the issuer or its affiliates have knowingly engaged in certain activities prohibited by sanctions against Iran or transactions or dealings with certain identified persons. We are subject to this disclosure requirement. Investor perception of the value of our common stock may be adversely affected by the consequences of war, the effects of terrorism, civil unrest and governmental actions in the countries or territories that we operate in.

***Increased inspection procedures, tighter import and export controls and new security regulations could increase costs and cause disruption of our business.***

International shipping is subject to security and customs inspection and related procedures in countries of origin, destination and trans-shipment points. Inspection procedures may result in delays in the loading, offloading or trans-shipment and the levying of customs duties, fines or other penalties against exporters or importers and, in some cases, carriers. Future changes to the existing security procedures may be implemented that could affect the dry bulk sector. These changes have the potential to impose additional financial and legal obligations on carriers and, in certain cases, to render the shipment of certain types of goods uneconomical or impractical. These additional costs could reduce the volume of goods shipped, resulting in a decreased demand for vessels and have a negative effect on our business, revenues and customer relations.

***Failure to comply with the U.S. Foreign Corrupt Practices Act and other anti-bribery legislation in other jurisdictions could result in fines, criminal penalties, contract terminations and an adverse effect on our business.***

We operate in a number of countries through the world, including countries that may be known to have a reputation for corruption. We are committed to doing business in accordance with applicable anti-corruption laws and have adopted policies which are consistent and in full compliance with the FCPA, the U.K. Bribery Act of 2010, and similar anti-bribery laws in other jurisdictions. We are subject, however, to the risk that we, our affiliated entities, or their respective officers, directors, employees and agents may take actions determined to be in violation of such anti-corruption laws, including the FCPA. Any such violation could result in substantial fines, sanctions, civil and/or criminal penalties, curtailment of operations in certain jurisdictions, and might adversely affect our business, results of operations or financial condition. In addition, actual or alleged violations could damage our reputation and ability to do business. Furthermore, detecting, investigating, and resolving actual or alleged violations is expensive and can consume significant time and attention of our senior management.

***The smuggling of drugs or other contraband onto our vessels may lead to governmental claims against us.***

Vessels in our fleet may call in ports in areas where smugglers, during vessel operations, and without our knowledge, may attempt to hide drugs, stowaways, and other contraband on those vessels, with or without the knowledge of crew members. To the extent our vessels are found with contraband, whether inside or attached to the hull of our vessel and whether with or without the knowledge of any member of the vessels' crew, we may face governmental or other regulatory claims or penalties which could have an adverse effect on our reputation, our business, results of operations and financial condition. Under some jurisdictions, vessels used for the conveyance of illegal drugs could subject the vessels to forfeiture to the government of such jurisdiction.

***Governments could requisition our vessels during a period of war or emergency.***

A government could take actions for requisition of title, hire or seize our vessels. Requisition for title occurs when a government takes control of a vessel and becomes its owner, while requisition for hire occurs when a government takes control of a vessel and effectively becomes her charterer at dictated charter rates. Generally, requisitions occur during periods of war or emergency, although governments may elect to requisition vessels in other circumstances. Although we would be entitled to compensation in the event of a requisition of one or more of our vessels, the amount and timing of payment would be uncertain. Although none of our vessels have been requisitioned by a government for title or hire, a government requisition of one or more of our vessels may adversely affect our future performance, results of operations, cash flows and financial position.

***Scrutiny and changing expectations from investors, lenders and other market participants with respect to our ESG policies may impose additional costs on us or expose us to additional risks.***

Companies across all industries are facing scrutiny relating to their ESG policies. Investor advocacy groups, certain institutional investors, investment funds, lenders, regulatory agencies, governments, charterers, employees, select suppliers and other market participants are increasingly focused on ESG practices and in recent years have placed increasing importance on the implications and social cost of their investments and relationships. An increased focus and activism related to ESG and similar matters may hinder access to capital, as investors and lenders may decide to reallocate capital or to not commit capital as a result of their assessment of a company's ESG practices. Companies which do not adapt to or comply with investor, lender or other industry shareholder expectations and standards, which are evolving, or which are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational damage and the business, financial condition, and/or stock price of such a company could be materially and adversely affected.

On March 6, 2024, the SEC adopted final rules to enhance and standardize climate-related disclosures by public companies and in public offerings. Almost immediately upon release of the rules, multiple lawsuits challenging the rules were filed in federal court, and the cases were transferred to the Eighth Circuit Court of Appeals. On April 4, 2024, the SEC voluntarily issued a stay of the climate-related disclosure rules pending the completion of judicial review of the consolidated Eighth Circuit petitions. On March 27, 2025, the SEC withdrew its defense of the climate-related disclosure rules, and on April 24, 2025, the Eighth Circuit ordered that the litigation over the validity of the SEC's climate disclosure rule be "held in abeyance" until the SEC informs the court about whether it "intends to review or reconsider the rules at issue in this case." On July 23, 2025, the SEC asked the court to terminate the abeyance and exercise its jurisdiction to decide the case. In September 2025, the Eighth Circuit rejected the SEC's request, stating that the case will be held in abeyance until the SEC reconsiders the challenged rules by notice-and-comment rulemaking or renews its defense. The impact of the ongoing litigation with respect to these rules, as well as the change in administration, is uncertain. Costs of compliance with these new rules and any further climate-related disclosure rules that are adopted in the future may be significant and may have a material adverse effect on our future performance, results of operations, cash flows and financial position.

We may face pressures from investors, lenders and other market participants, who are focused on climate change, to prioritize sustainable energy practices, reduce our carbon footprint and promote sustainability. As a result, we may be required to implement more stringent ESG procedures or standards so that our existing and future investors and lenders remain invested in us and make further investments in us. If we do not meet these standards, our business and/or our ability to access capital could be harmed.

Additionally, certain investors and lenders may exclude shipping companies, especially ones within the energy value chain, such as us, from their investing portfolios altogether due to environmental, social and governance factors, which may affect our ability to develop as our plans for growth may include accessing the equity and debt capital markets. If those markets are unavailable, or if we are unable to access alternative means of financing on acceptable terms, or at all, we may be unable to implement our business strategy, which would have a material adverse effect on our financial condition and results of operations and impair our ability to service our indebtedness. Further, it is likely that we could incur additional costs, capital expenditures and require additional resources to monitor, report and comply with increasing and wide ranging ESG requirements. Our disclosures on ESG matters are based on standards which may not be harmonized and still developing as well as changing assumptions and procedures which may not be acceptable to others. The occurrence of any of the foregoing could have a material adverse effect on our business and financial condition.

Finally, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters. Unfavorable ESG ratings and recent activism directed at shifting funding away from companies with fossil fuel-related assets could lead to increased negative investor sentiment toward us and our industry and to the diversion of investment to other, non-fossil fuel markets, which could have a negative impact on our access to and costs of capital.

***We are subject to increasingly complex laws and regulations, including environmental and safety laws and regulations, which expose us to liability and significant additional expenditures, and can adversely affect our insurance coverage and access to certain ports as well as our business, results of operations and financial condition.***

Our operations are affected by extensive and changing international, national and local laws, regulations, treaties, conventions and standards in force in international waters, the jurisdictional waters of the countries in which our vessels operate, as well as the countries of our vessels' registration.

These laws and regulations include, but are not limited to, the U.S. Oil Pollution Act of 1990, or the OPA, requirements of the U.S. Coast Guard, or the USCG, and the U.S. Environmental Protection Agency, or the EPA, the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980, or the CERCLA, the U.S. Clean Air Act of 1970, as amended from time to time, and referred to herein as the CAA, the U.S. Clean Water Act of 1972, as amended from time to time, and referred to herein as the CWA, the International Maritime Organization, or the IMO, the International Convention on Civil Liability for Oil Pollution Damage of 1969, as amended from time to time and referred to herein as the CLC, the IMO International Convention on Civil Liability for Bunker Oil Pollution Damage, or the Bunker Convention, and the International Convention for the Prevention of Pollution from Ships, or MARPOL, including designation of Emission Control Areas, or ECAs, thereunder, the IMO International Convention for the Safety of Life at Sea of 1974, as amended from time to time and referred to herein as the SOLAS Convention, and the International Management Code for the Safe Operation of Ships and Pollution Prevention, or the ISM Code promulgated thereby, the International Convention for the Control and Management of Ships' Ballast Water and Sediments, or the BWM Convention, the IMO International Convention on Load Lines of 1966 (as from time to time amended), or the LL Convention, or the MTSA, the International Labour Organization, or the ILO, the Maritime Labour Convention, E.U. regulations, and the International Ship and Port Facility Security Code, or the ISPS Code. Environmental laws often impose strict liability for remediation of spills and releases of oil and hazardous substances, which could subject us to liability without regard to whether we were negligent or at fault. We are required to satisfy insurance and financial responsibility requirements for potential oil (including marine fuel) spills and other pollution incidents. Although we have arranged insurance to cover certain environmental risks, there can be no assurance that such insurance will be sufficient to cover all such risks. In particular, IMO's Marine Environmental Protection Committee, or MEPC 73, amendments to Annex VI prohibiting the carriage of bunkers above 0.5% sulfur on ships took effect March 1, 2020, and may cause us to incur substantial costs. Noncompliance with these regulations could have a material adverse effect on our business and financial results.

The safe operation of our vessels is affected by the requirements of the ISM Code, promulgated by the IMO under the SOLAS Convention. The ISM Code requires ship owners, ship managers and bareboat charterers to develop and maintain an extensive "Safety Management System" that includes the adoption of safety and environmental protection policies setting forth instructions and procedures for safe operation and for dealing with emergencies. If we fail to comply with the ISM Code, we may be subject to increased liability, invalidation of our existing insurance, or reduction in available insurance coverage for our affected vessels. Such noncompliance may also result in a denial of access to, or detention in, certain ports which could have a material adverse impact on the Company's business, results of operations and financial condition.

Compliance with such laws and regulations, where applicable, may require installation of costly equipment, vessel modifications, operational changes or restrictions, a reduction in cargo-capacity and may affect the resale value or useful lives of our vessels as well as result in the denial of access to, or detention in, certain jurisdictional waters or ports. We may also incur additional costs in order to comply with other existing and future regulatory obligations, including, but not limited to, costs relating to air emissions including greenhouse gases, the management of ballast and bilge waters, maintenance and inspection, elimination of tin-based paint, development and implementation of emergency procedures and insurance coverage or other financial assurance of our ability to address pollution incidents. Government regulation of the shipping industry, particularly as it may relate to safety, ship recycling requirements, greenhouse gas, or GHG, emissions and climate change, and other environmental matters, can be expected to become stricter in the future, and may require us to incur significant capital expenditures on our vessels to keep them in compliance, may require us to scrap or sell certain vessels altogether, may reduce the residual value we receive if a vessel is scrapped, and may generally increase our compliance costs. Compliance with new regulations of vessel performance and operation, such as the IMO's EEXI and CII vessel requirements, may create schedule disruptions and could require our vessels to slow down if efficiency improvements or transitions to alternative fuels together are not enough to reduce GHG emissions sufficiently, thus negatively impacting our operations and charter income. As of December 31, 2025, three of our vessels in our fleet had received an CII rating of "B" and three ships received a rating of "C", thus remedial capital investment or slower vessel speed are not required. A failure to comply with applicable laws and regulations may result in administrative and civil penalties, criminal sanctions or the suspension or termination of operations.

Recent action by the IMO's Maritime Safety Committee and U.S. agencies indicates that cyber-security regulations for the maritime industry are likely to be further developed in the near future in an attempt to combat cyber-security threats. Please see "Item 4. Information on the Company - B. Business Overview - International Product Tanker & Dry-bulk Shipping Industries." If a vessel fails any survey or otherwise fails to maintain its class, the vessel will be unable to trade and will be unemployable, and may subject us to claims from the charterer if it has chartered the vessel, which would negatively impact our revenues as well as our reputation.

***Our vessels are subject to periodic inspections by a classification society.***

The hull and machinery of every commercial vessel must be classed by a classification society authorized by its country of registry. The classification society certifies that a vessel is safe and seaworthy in accordance with the applicable rules and regulations of the country of registry of the vessel and the Safety of Life at Sea Convention. Our fleet is currently classed with NKK and DNV GL.

The International Association of Classification Societies has adopted harmonized Common Structural Rules, or the Rules, which apply to oil tankers and bulk carriers contracted for construction on or after July 1, 2015. The Rules attempt to create a level of consistency between IACS Societies. All of our vessels are certified as being "in class" by the applicable Classification Societies.

A vessel must undergo annual surveys, intermediate surveys and special surveys. In the Fall of 2026, we have scheduled the second special survey for the 2016 built *Konkar Ormi*. In lieu of a special survey, a vessel's machinery may be on a continuous survey cycle, under which the machinery would be surveyed periodically over a five-year period. Our vessels are on special survey cycles for hull inspection and continuous survey cycles for machinery inspection. Every vessel is also required to be dry docked every two to three years for inspection of the underwater parts of such vessel. However, for vessels not exceeding 15 years that have means to facilitate underwater inspection in lieu of dry docking, the dry docking may be skipped and be conducted concurrently with the special survey.

If a vessel does not maintain its class or fails any annual, intermediate or special survey or dry-docking, the vessel will be unable to trade between ports and will be unemployable and uninsurable, and we may be in violation of covenants under our insurance contracts and our existing and future loan agreements or other financing arrangements. In addition, compliance with the above requirements may require significant additional investments, and we may incur significant additional costs to meet new inspection requirements or rules. Any such inability to carry cargo or be employed, any loss of insurance coverage, or any such violation of covenants could have a material adverse effect on our business, results of operations, cash flows and financial condition.

Further, government regulation of vessels, particularly in the areas of safety and environmental requirements, can be expected to become stricter in the future and require us to incur significant capital expenditures on our vessels to keep them in compliance.

***We are subject to funding calls by our protection and indemnity associations, and our associations may not have enough resources to cover claims made against them.***

We are indemnified for certain liabilities incurred while operating our vessels through membership in protection and indemnity associations, which are mutual insurance associations whose members contribute to cover losses sustained by other association members. Claims are paid through the aggregate premiums (typically annually) of all members of the association, although members remain subject to calls for additional funds if the aggregate premiums are insufficient to cover claims submitted to the association. Claims submitted to the association may include those incurred by members of the association, as well as claims submitted to the association from other protection and indemnity associations with which our association has entered into inter-association agreements. We cannot assure you that the associations to which we belong will remain viable.

***Climate change and greenhouse gas restrictions may adversely impact our operations, markets and capital sources.***

Due to concern over the risk of climate change, a number of countries and the IMO have adopted, or are considering the adoption of, regulatory frameworks to reduce greenhouse gas emissions. These regulatory measures may include, among others, adoption of cap and trade regimes, carbon taxes, increased efficiency standards and incentives or mandates for renewable energy. More specifically, on October 27, 2016, the IMO's MEPC announced its decision concerning the implementation of regulations mandating a reduction in sulfur emissions from 3.5% to 0.5% as of the beginning of January 1, 2020. Additionally, in April 2018, nations at the MEPC 72 adopted an initial strategy to reduce greenhouse gas emissions from ships. The initial strategy identifies levels of ambition to reducing greenhouse gas emissions and notes that technological innovation, alternative fuels and/or energy sources for international shipping will be integral to achieve the ambitions. In July 2023, MEPC 80 adopted a revised strategy, which includes an enhanced common ambition to reach net-zero greenhouse gas emissions from international shipping around or close to 2050, a commitment to ensure an uptake of alternative zero and near-zero greenhouse gas fuels by 2030, as well as i). reducing the total annual greenhouse gas emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008 levels; and ii). reducing the total annual greenhouse gas emissions from international shipping by at least 70%, striving for 80%, by 2040, compared to 2008 levels. In April 2025, the IMO net-zero framework was approved by MEPC 83, including the new fuel standard for ships and a global pricing mechanism for emissions. These regulations were approved as amendments and submitted for adoption as legally binding, but in October 2025 the MEPC agreed to adjourn the meeting on adoption until 2026.

On November 13, 2021, the Glasgow Climate Pact was announced following discussions at the 2021 United Nations Climate Change Conference, or COP26. The Glasgow Climate Pact calls for signatory states to voluntarily phase out fossil fuels subsidies. A shift away from these products could potentially affect the demand for our vessels and negatively impact our future business, operating results, cash flows and financial position. COP26 also produced the Clydebank Declaration, in which 24 signatory states (including the United States and United Kingdom) announced their intention to voluntarily support the establishment of zero-emission shipping routes. Governmental and investor pressure to voluntarily participate in these green shipping routes could cause us to incur significant additional expenses to "green" our vessels.

Currently, the emissions of greenhouse gases from international shipping are not subject to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, which entered into force in 2005 and pursuant to which adopting countries have been required to implement national programs to reduce greenhouse gas emissions with targets extended through 2020. International negotiations are continuing with respect to a successor to the Kyoto Protocol, and restrictions on shipping emissions may be included in any new treaty. In December 2009, more than 27 nations, including the U.S. and China, signed the Copenhagen Accord, which includes a non-binding commitment to reduce greenhouse gas emissions. The 2015 United Nations Climate Change Conference in Paris resulted in the Paris Agreement, which entered into force on November 4, 2016 and does not directly limit greenhouse gas emissions from ships. The U.S. is not a party to the Paris Agreement.

Additional greenhouse regulations may result in increased implementation and compliance costs and expenses, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● IMO Data Collection System, or DCS: Since 2019, the IMO data collection system, or the IMO DCS, which requires vessels above 5,000 gross tons to report consumption data for fuel oil, hours under way and distance travelled. This IMO DCS covers any maritime activity carried out by ships, including dredging, pipeline laying, and offshore installations. Data is reported annually to the flag state, which is used to calculating a ship's operational carbon intensity indicator, or CII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Amendments to MARPOL Annex VI: Beginning in January 2023, Annex VI imposed reporting requirements in connection with the implementation of the Energy Efficiency Existing Ship Index, or EEXI, and carbon intensity indicator, or CII, framework, which amendments became effective on May 1, 2024. Beginning in January 2023, Annex VI requires EEXI and CII certification. The first annual reporting was completed in 2023, with initial ratings given in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Net zero greenhouse emissions in the E.U. by 2050: in 2021, the E.U. adopted a European Climate Law (Regulation (E.U.) 2021/1119), establishing the aim of reaching net zero greenhouse gas emissions in the E.U. by 2050, with an intermediate target of reducing greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. In July 2021, the European Commission launched the "Fit for 55" to support the climate policy agenda. As of January 2019, large ships calling at E.U. ports have been required to collect and publish data on carbon dioxide emissions and other information.

Furthermore, on January 1, 2024 the E.U. Emissions Trading Scheme, or the ETS, for ships sailing into and out of E.U. ports came into effect, and the Fuel E.U. Maritime Regulation came into effect on January 1, 2025. The ETS applies gradually over the period from 2024 to 2026, and thereafter. 40% of allowances would have to be surrendered in 2025 for the year 2024; 70% of allowances would have to be surrendered in 2026 for the year 2025; and 100% of allowances would have to be surrendered in 2027 for the year 2026. The compliance deadline will be September 30 of each year. Compliance is on a companywide (rather than per ship) basis and "shipping company" is defined widely to capture both the ship owner and any contractually appointed commercial operator/ship manager/bareboat charterer who assumes all duties and responsibilities for the ship under the ISM Code, as well as the responsibility for full compliance under the ETS and the ISM Code. If the latter contractual arrangement is entered into this needs to be reflected in a certified mandate signed by both parties and presented to the administrator of the scheme. The cap under the ETS would be set by taking into account E.U. MRV system emissions data for the years 2018 and 2019, adjusted, from year 2021 and is to capture 100% of the emissions from intra-E.U. maritime voyages; 100% of emissions from ships at berth in E.U. ports and 50% of emissions from voyages which start or end at E.U. ports (but the other destination is outside the E.U.). Furthermore, the E.U. Emissions Trading Directive 2023/959/EC makes clear that all maritime allowances are to be auctioned and there will be no free allocation. 78.4 million emissions allowances are to be allocated specifically to maritime. If we do not have allowances, we will be forced to purchase allowances from the market, which can be costly. To prepare for and manage the administrative aspects of E.U. ETS compliance, we have made significant investments in new systems, including personnel, data management, cost recovery mechanisms, revised service agreement terms and transparent emissions reporting procedures. However, the cost of future compliance and of our future E.U. emissions and costs to purchase an allowance for emissions (if we must purchase in order to comply) are unknown and difficult to predict, and are based on a number of factors, including the size of our fleet, our trips within and to and from the E.U., and the prevailing cost of allowances.

Additionally, on July 25, 2023, the European Council of the European Union adopted the Fuel E.U. Maritime Regulation 2023/1805, or FuelEU., under the FuelEU. Initiative of its "Fit-for-55" package which sets limitations on the acceptable yearly greenhouse gas intensity of the energy used by covered vessels. Among other things, FuelEU requires that greenhouse gas intensity of fuel used by covered vessels is reduced by 2% which started on January 1, 2025, with additional reductions contemplated every five years (up to 80% by 2050). Shipping companies may enter into pooling mechanisms with other shipping companies in order to achieve compliance, bank surplus emissions and borrow compliance balances from future years. A FuelEU Document of Compliance is required to be kept on board a vessel to show compliance by June 30, 2026. Both the ETS and FuelEU schemes have significant impacts on the management of the vessels calling to E.U. ports, by increasing the complexity and monitoring of, and costs associated with the operation of vessels and affecting the relationships with our time charterers.

Compliance with changes in laws, regulations and obligations relating to climate change could increase our costs related to operating and maintaining our vessels and require us to install new emission controls, acquire allowances or pay taxes related to our greenhouse gas emissions or administer and manage a greenhouse gas emissions program. Revenue generation and strategic growth opportunities may also be adversely affected.

Expanding climate related regulations have required us to modify our procedures to capture more relevant vessel performance and emissions data, including GHG, which has nominally increased administrative time and costs. This data will help us and ITM to monitor and optimize the operations of our vessels and provide requisite information to charterers, regulatory agencies, lenders and others. If required, remedial actions, including vessel capital expenditures or equipment retrofits, can be undertaken to address deficiencies. As of the date of this Annual report, we are in compliance with all environmental regulations, but these disclosures are evolving, including requirements of the SEC.

Adverse consequences of climate change, including growing public concern about the environmental impact of climate change, may also adversely affect demand for our services. For example, increased regulation of greenhouse gases or other concerns relating to climate change may reduce the demand for coal in the future, one of the primary cargoes carried by dry bulk vessels. In addition, the physical effects of climate change, including changes in weather patterns, extreme weather events, rising sea levels, and scarcity of water resources, may negatively impact our operations. Any long-term economic consequences of climate change could have a significant financial and operational adverse impact on our business that we cannot predict with certainty at this time.

For more information with respect to the environmental rules and regulations applicable to the Company see, "Item 4. Information on the Company – B. Business Overview – Environmental and Other Regulations in the Shipping Industry."

***A shift in consumer demand from oil products towards other energy sources, growth in electric vehicles or changes to trade patterns for refined petroleum products may have a material adverse effect on our business.***

The majority of our revenues and earnings are related to the oil industry. A significant percentage of seaborne cargoes on product tankers consist of refined petroleum products for the transportation sector, including diesel, gasoline and jet fuel. A shift in, or disruption of consumer demand from oil products towards other energy sources such as wind energy, solar energy, hydrogen energy, nuclear energy, renewable energy, electricity, natural gas, liquified natural gas, hydrogen or ammonia could potentially affect the demand for our vessels and could have a material adverse effect on our future performance, results of operations, cash flows and financial position. "Peak oil" is the year when the maximum rate of extraction of oil is reached. The International Energy Agency, or IEA, forecasts "peak oil" demand will occur by 2030. However, OPEC+ forecasts that demand for oil will grow from 103.4 million barrels in 2025 to reach 123 million barrels per day by 2050, despite transition toward other energy sources. The movement away from the use of internal combustion engine vehicles to electric vehicles, or EVs may also reduce the demand for refined petroleum products. The IEA noted in its Global EV Outlook 2025 that worldwide sales of electric cars grew to more than 17 million in 2024 and are expected to increase to over 20 million in 2025. In 2024, electric cars had a share of over 20% of global car sales and is forecasted to exceed 40% by 2030. China maintained its lead as the #1 electric car manufacturer and consumer worldwide. EV unit growth, however, may be limited due to evolving trade restrictions/tariffs, changes in industrial policy, lower oil prices and lower or zero tax incentives for consumers and government subsidies to related manufactures. A growth in EVs worldwide may result in decreased demand for our vessels and lower charter rates, which could have a material adverse effect on our business.

Seaborne trading and distribution patterns are primarily influenced by the relative advantage of the various sources of production, locations of consumption, pricing differentials and seasonality, and, more recently, government sanctions. Changes to the trade patterns of refined oil products may have a significant negative or positive impact on the ton-miles and therefore the demand for our tankers. These activities could have a material adverse effect on our future performance, results of operations, cash flows and financial position.

***Technological innovation and quality and efficiency requirements from our customers could reduce our charter hire income and the value of our vessels.***

Our customers, in particular those in the oil industry, have a high and increasing focus on quality and compliance standards with their suppliers across the entire supply chain, including the shipping and transportation segment. Our continued compliance with these standards and quality requirements is vital for our operations. Related risks could materialize in multiple ways, including a sudden and unexpected breach in quality and/or compliance concerning one or more tankers, or a continuous decrease in the quality concerning one or more vessels occurring over time. Moreover, continuous increasing requirements from oil industry constituents can further complicate our ability to meet the standards. Any noncompliance by us, either suddenly or over a period of time, on one or more vessels, or an increase in requirements by oil operators above and beyond what we deliver, may have a material adverse effect on our future performance, results of operations, cash flows and financial position.

***Technological developments which affect global trade flows and supply chains may affect the demand for our vessels.***

By reducing the cost of labor through automation and digitization and empowering consumers to demand goods whenever and wherever they choose, technology is changing the business models and production of goods in many industries. Consequently, supply chains are being pulled closer to the end-customer and are required to be more responsive to changing demand patterns. As a result, fewer intermediate and raw inputs are traded, which could lead to a decrease in shipping activity. If automation and digitization become more commercially viable and/or production becomes more regional or local, total containerized trade volumes would decrease, which would adversely affect demand for maritime fuels and hence demand for our services. Supply chain disruptions caused by geopolitical events, rising tariff barriers and environmental concerns may also accelerate these trends.

Additionally, there continues to be significant evolution and developments in the use of artificial intelligence technologies, including generative artificial intelligence. While we have not integrated the use of artificial intelligence in our business currently, we could integrate it in the future and, at this time, cannot fully determine the impact of such evolving technology to our industry or business.

**Risks Related to Our Business and Operations**

***We operate in highly competitive international markets, and we may not be able to successfully mix our charter durations profitably.***

The product tanker and dry-bulk markets are capital intensive and highly fragmented, with many charterers, owners and operators of vessels, and the transportation of refined petroleum products and dry-bulk commodities is characterized by intense competition. Competition arises primarily from other owners, including major oil and dry cargo companies as well as independent operators, some of which have substantially greater financial and other resources than we do, and such competitors may operate larger fleets through consolidations or acquisitions and may be able to offer lower charter rates and higher quality vessels than we are able to offer. As a result, we cannot assure you that we will be successful in finding continued timely employment of our existing vessels, which could adversely affect our results of operations and financial position. Although we believe that no single competitor has a dominant position in the markets in which we compete, the trend towards consolidation in the industry is creating an increasing number of global enterprises capable of competing in multiple markets, which will likely result in greater competition to us. Our competitors may be better positioned to devote greater resources to the development, promotion and employment of their businesses than we are. Competition for charters, including for the transportation of refined petroleum products and dry-bulk commodities, is intense and depends on price as well as on vessel location, size, age, condition and acceptability of the vessel and its operator to the charterer and reputation. Competition may increase in some or all of our principal markets, including with the entry of new competitors. We may not be able to compete successfully or effectively with our competitors and our competitive position may be eroded in the future, which could have an adverse effect on our business, results of operations and financial condition.

Because some of the vessels in our fleet may from time to time be chartered in the spot market or in pools trading in the spot market, the Company may be exposed to the cyclicality and volatility of the spot charter market and may require additional working capital. Spot charter rates may fluctuate dramatically based on vessel location, supply and demand fundamentals within our sectors as well as the competitive factors listed above. By focusing the employment of some of the vessels in our fleet on the spot market, we will benefit if conditions in this market strengthen. However, we will also be particularly vulnerable to declining spot charter rates. Trading our vessels in the spot market or in pools requires greater working capital than operating under a time charter as the vessel owner is responsible for various voyage related costs, such as fuel, port and canal charges, as well as additional timing for collections of charter receivables, including additional demurrage revenues. In addition, conditions in the spot market may be materially different in the product tanker segment versus dry-bulk.

Our ability to renew the charters on our vessels on the expiration or termination of our current charters, or on vessels that we may acquire in the future, or the charter rates payable under any replacement charters and vessel values will depend upon, among other things, economic conditions in the sectors in which our vessels operate at that time, changes in the supply and demand for vessel capacity and changes in the supply and demand for the seaborne transportation of cargoes. Should more vessels be available on the spot or short-term market at the time we are seeking to fix new time charters, we may have difficulty fixing longer term charters at profitable rates for any term other than short-term. Conversely, if our vessels are employed under time charter during a period of rising spot charter rates, we would be unable to pursue opportunities to capture such higher rates. As a result, our cash flow may be subject to instability, and our business, results of operations and financial condition could be adversely affected. If we are not able to obtain new charters in direct continuation with existing charters or upon taking delivery of a newly acquired vessel, or if new charters are entered into at charter rates substantially below the existing charter rates or on terms otherwise less favorable compared to existing charter terms, our revenues and profitability could be adversely affected.

***We may be unable to secure short to medium- term employment for our vessels at profitable rates and present and future vessel employment could be adversely affected by an inability to clear customers' risk assessment process and the Company's growth depends on its ability to expand relationships with existing customers and obtain new customers, for which it will face substantial competition.***

Customers have a high focus on quality, emissions and compliance standards with their suppliers across the value chain, including seaborne transportation services. One of our strategies is to explore and selectively enter into or renew short to medium-term, fixed rate time charters ranging from six months up to three years and, possibly, bareboat charters for some of the vessels in our fleet in order to provide us with a base of stable cash flows and to manage charter rate volatility. However, the process for obtaining longer term charters is highly competitive and generally involves a lengthier and intense screening and vetting process and the submission of competitive bids, compared to shorter term charters.

Shipping, and especially refined petroleum product tankers have been, and will remain, heavily regulated. For an overview of government regulations that may impact our tanker operations, see *"*Item 4. Information on the Company – B. Business Overview – Environmental and Other Regulations in the Shipping Industry". The so-called "oil majors", together with a number of commodities traders, represent a significant percentage of the production, trading and shipping logistics (terminals) of refined products worldwide. Concerns for the environment have led the oil majors to develop and implement a strict ongoing due diligence process when selecting their commercial partners. This vetting process has evolved into a sophisticated and comprehensive risk assessment of both the vessel operator and the vessel, including physical ship inspections, completion of vessel inspection questionnaires performed by accredited inspectors and the production of comprehensive risk assessment and recent cargo reports.

The process of obtaining new charters is highly competitive, generally involves an intensive screening process and competitive bids which can extend for up to several months. In addition to the quality, age, location, fuel consumption, recent cargoes, and suitability of the vessel, contracts and longer term charters tend to be awarded based upon a variety of other factors relating to the vessel operator, including:

● office assessments and audits of the vessel operator;

● the operator's environmental, health and safety record;

● compliance with heightened industry standards that have been set by several oil companies and other charterers;

● compliance with the standards of the IMO and periodic reporting of vessel emissions;

● compliance with several oil companies and other charterers' codes of conduct, policies and guidelines, including transparency, anti-bribery and ethical requirements and relationships with third-parties;

● shipping industry relationships, reputation for customer service, technical and operating expertise and safety record;

● shipping experience and quality of ship operations, including cost-effectiveness;

● recent cargo reports and supporting documentation in compliance with established sanctions;

● quality, experience and technical capability of crews;

● the ability to finance vessels at competitive rates and overall financial stability;

● relationships with shipyards and the ability to obtain suitable berths with on-time delivery of new vessels according to customer's specifications;

● construction management experience, including the ability to procure on-time delivery of new vessels according to customer specifications;

● willingness to accept operational risks pursuant to the charter, such as allowing termination of the charter for force majeure events; and

● competitiveness of the bid in terms of overall price.

The Company's ability to obtain new customers will also depend upon a number of factors, many of which are beyond our control, including our ability to successfully manage our liquidity and obtain the necessary financing to fund our anticipated growth; identify and consummate desirable acquisitions, joint ventures or strategic alliances; and identify and capitalize on opportunities in new markets. Furthermore, it includes ITM and Konkar Agencies' ability to attract, hire, train and retain qualified personnel and managers to manage and operate our fleet; and being approved through the vessel vetting process of certain charterers. We cannot assure you that we would be successful in winning medium- and longer-term employment for our vessels at profitable rates.

***A substantial portion of our revenues is derived from a limited number of customers, and the loss of any of these customers could result in a significant loss of revenues and cash flow.***

We currently derive substantially all of our revenues from a limited number of customers. In 2024, three customers accounted for 66% of our total revenues, one of which accounted for 31% of our total revenues, and in 2025, three customers accounted for 53% of our total revenues. The loss of any significant customer or a decline in the amount of services provided to a significant customer could have a material adverse effect on our future performance, results of operations, cash flows and financial position.

***Counterparties, including charterers or technical managers, could fail to meet their obligations to us.***

We enter into, among other things, memoranda of agreement, charter parties, ship management agreements and loan agreements with third parties with respect to the purchase and operation of our fleet and our business. Such agreements subject us to counterparty risks. The ability and willingness of each of our counterparties to perform its obligations under these agreements with us depends on a number of factors that are beyond our control and may include, among other things, general economic conditions, the condition of the product tanker and dry-bulk shipping sectors and the overall financial condition of the counterparties, charter rates received for specific types of vessels, work stoppages or other labor disturbances and various expenses. In particular, we face credit risk with our charterers. It is possible that not all of our charterers will provide detailed financial information regarding their operations. As a result, charterer risk is largely assessed on the basis of our charterers' reputation in the market, and even on that basis, there can be no assurance that they can or will fulfill their obligations under the contracts we enter into with them.

Charterers are sensitive to the commodity markets and may be impacted by market forces affecting commodities. Although we assess the creditworthiness of our counterparties, a prolonged period of difficult industry conditions could lead to changes in a counterparty's liquidity and increase our exposure to credit risk and bad debts. In addition, we may offer extended payment terms to our customers in order to secure contracts, which may lead to more frequent collection issues and adversely affect our financial results and liquidity. In addition, in depressed market conditions, there have been reports of charterers renegotiating their charters or defaulting on their obligations under charters. Our customers may fail to pay charter hire or attempt to renegotiate charter rates. Should a charterer counterparty fail to honor its obligations under agreements with us, it may be difficult to secure substitute employment for that vessel, and any new charter arrangements we secure on the spot market or on substitute charters may be at lower rates depending on the then existing charter rate levels. The costs and delays associated with the default by a charterer under a charter of a vessel may be considerable. In addition, if the charterer of a vessel in our fleet that is used as collateral under our loan agreements defaults on its charter obligations to us, such default may constitute an event of default under our loan agreements, which may allow the banks to exercise remedies under our loan agreements.

As a result of these risks, we could sustain significant losses, which could have a material adverse effect on our business, results of operations and financial condition.

***We depend on ITM, Maritime and Konkar Agencies to operate our business and our business could be harmed if they fail to perform their services and responsibilities satisfactorily.***

Pursuant to our management agreements, ITM provides us with day-to-day technical management services for our product tankers (including crewing, maintenance, repair, dry-dockings and maintaining required vetting approvals) and Maritime provides us with overall ship management and administrative services for our fleet. Konkar Agencies provides similar technical management and commercial management services for our dry-bulk vessels. Our operational success depends significantly upon ITM, Maritime and Konkar Agencies' satisfactory performance of these services, including their abilities to attract and retain highly skilled and qualified personnel, particularly seamen and on-shore staff who deal directly with vessel operations. Our business would be harmed if ITM, Maritime or Konkar Agencies failed to perform these services satisfactorily and were unable to adequately upgrade their operating and financial systems in the ordinary course and as we expand our fleet. In addition, as we expand our fleet, ITM, Maritime and Konkar Agencies may need to recruit and retain suitable additional seafarers and shore based administrative and management personnel. We cannot guarantee that our ship managers will be able to continue to hire suitable employees as we expand our fleet. If we, ITM, Maritime or Konkar Agencies encounter business or financial difficulties, we may not be able to adequately staff our vessels. If we are unable to accomplish the above, our financial reporting performance may be adversely affected and, among other things, it may not be compliant with the SEC rules.

In addition, if our management agreements with either ITM, Maritime or Konkar Agencies were to be terminated or if their terms were to be altered, our business could be adversely affected, as we may not be able to immediately replace such services, and even if replacement services were immediately available, the terms offered could be less favorable than those under our management agreements. A change of technical manager may require approval by certain customers of ours for employment of a vessel and approval from our lenders. Moreover, Konkar Agencies provides a guarantee for 40% of the loans provided by Pireaus Bank for our vessels *Konkar Ormi* and the *Konkar Venture*.

Our ability to compete for and enter into new period time and spot voyage charters and to expand our relationships with our existing charterers will depend largely on our relationship with ITM, Maritime and Konkar Agencies, and their respective reputation and relationships in the shipping industry. If ITM, Maritime or Konkar Agencies suffers material damage to their reputation or relationships, it may harm our ability to obtain new charters or financing on commercially acceptable terms, maintain satisfactory relationships with our charterers and suppliers, and successfully execute our business strategies. If our ability to do any of the things described above is impaired, it could have a material adverse effect on our business, results of operations and financial condition.

***We may fail to successfully control our operating and voyage expenses.***

Our operating results are dependent on our ability to successfully control our operating and voyage expenses. Under our ship management agreements with ITM, Konkar Agencies and Maritime we are required to pay for vessel operating expenses (which includes crewing, repairs and maintenance, insurance, stores, lube oils and communication expenses), and, for spot voyage charters, Konkar Agencies and Maritime pay voyage expenses (which include bunker expenses, port fees, cargo loading and unloading expenses, canal tolls and agency fees). These expenses depend upon a variety of factors, many of which are beyond our or the technical manager's control, including unexpected increases in costs for crews, insurance or spare parts for our vessels, unexpected dry-dock repairs, mechanical failures or human error (including revenue lost in off-hire days), vessel age, arrest action against our vessels due to failure to pay debts, disputes with creditors or claims by third parties, labor strikes, severe weather conditions, any quarantines of our vessels, uncertainties in the world oil markets and inflation. Many of these costs, primarily relating to voyage expenses, such as bunker fuel, have been increasing and may increase more significantly in the future. Repair costs are unpredictable and can be substantial, some of which may not be covered by insurance. If our vessels are subject to unexpected or unscheduled off-hire time, it could adversely affect our cash flow and may expose us to claims for liquidated damages if the vessel is chartered at the time of the unscheduled off-hire period. The cost of dry-docking repairs, additional off-hire time, an increase in our operating expenses and/or the obligation to pay any liquidated damages could adversely affect our business, results of operations and financial condition. For voyages within the European Union, we are responsible to obtain independent certified documentation as to the amount of European Allowances, or EUA, for our vessel's carbon emissions and submit payment to the European Commission. As part of the charterparty agreement, each customer is responsible to promptly reimburse us for the voyage EUA which typically are not a major cost of the charter payment.

***We will be required to make substantial capital expenditures, for which we may be dependent on additional financing, to maintain the vessels we own or to acquire other vessels.***

We must make substantial capital expenditures to maintain, over the long-term, the operating capacity of our fleet. Our business strategy is also based in part upon the expansion of our fleet through the purchase of additional vessels. Maintenance capital expenditures include dry-docking expenses, modification of existing vessels or acquisitions of new vessels to the extent these expenditures are incurred to maintain the operating capacity of our fleet.

In addition, we expect to incur significant maintenance costs for our current and any newly-acquired vessels. A newbuilding vessel must be dry-docked within five years of its delivery from a shipyard, and vessels are typically dry-docked every 30 to 60 months thereafter depending on the vessel, not including any unexpected repairs. We estimate the cost to dry-dock a vessel is between $0.75 and $1.25 million, depending on the age, size and condition of the vessel and the location of dry-docking shipyard. In addition, capital maintenance expenditures could increase as a result of changes in the cost of labor and materials, customer requirements, increases in the size of our fleet, governmental regulations and maritime self-regulatory organization standards relating to safety, security or the environment and competitive standards.

To purchase additional vessels from time to time, we may be required to incur additional borrowings or raise capital through the sale of debt or additional equity securities. Asset impairments, financial stress, enforcement actions as well as credit rating and regulatory pressures experienced in the past by financial institutions to extend credit to the shipping industry due to depressed shipping rates and the deterioration of asset values that have led to losses in many banks' shipping portfolios, as well as changes in overall banking regulations, have severely constrained the availability of credit for shipping companies like us. In addition, the re-pricing of credit risk and the difficulties experienced by some financial institutions, have made, and will likely continue to make, it challenging to obtain financing. As a result of the disruptions in the credit markets, higher interest rates and larger capital requirements, many lenders have enacted tighter lending standards, required more restrictive terms (including higher collateral ratios for advances, shorter maturities and smaller loan amounts), or refused to refinance existing debt at all. Furthermore, certain banks that have historically been significant lenders to the shipping industry have reduced or ceased lending activities in the shipping industry. Additional tightening of capital requirements, e.g. Basel IV, and the resulting policies adopted by lenders, could further reduce lending activities. We may experience difficulties obtaining financing commitments or be unable to fully draw on the capacity under our committed term loans in the future if our lenders are unwilling to extend financing to us or unable to meet their funding obligations due to their own liquidity, capital or solvency issues. We cannot be certain that financing will be available in the future on terms that are acceptable to us or at all. If financing is not available when needed, or is available only on unfavorable terms, we may be unable to meet our future obligations as they come due. Our failure to obtain such funds for capital expenditures could have a material adverse effect on our business, results of operations and financial condition. In the absence of available financing, we also may be unable to take advantage of business opportunities, expand our fleet or respond to competitive pressures.

In addition, our ability to obtain bank financing or to access the capital markets for future offerings may be limited by the terms of our existing credit agreements, our financial condition, the actual or perceived credit quality of our customers, and any defaults by them, as well as by adverse market conditions resulting from, among other things, general economic conditions and contingencies and uncertainties that are beyond our control.

In addition, our actual operating and maintenance capital expenditures will vary significantly from quarter to quarter based on, among other things, the number of vessels dry-docked during that quarter. We may incur additional debt to fund capital expenditures which may significantly increase our interest expense and financial leverage, and issuing additional equity securities may result in significant dilution.

***We may have to provide financial assistance to two dry-bulk joint ventures in case the minority shareholder and Konkar Agencies cannot meet their obligations.***

On July 5, 2023 we entered into a joint venture agreement, or the JV Agreement, with Futurebulk Corp., an entity owned by Mr. Valentios ("Eddie") Valentis, our Chairman & CEO, to acquire the Ultramax vessel, *Konkar Ormi*. We invested $6.8 million (60%) of the $11.3 million in initial cash equity of Dryone Corp. in combination with $19 million of secured bank debt to fund the purchase of the vessel, pay transaction costs and provide for vessel working capital. Similarly, on June 28, 2024, we entered into a second JV Agreement with Futurebulk Corp., an entity owned by Mr. Valentios ("Eddie") Valentis, our Chairman & CEO, to acquire the Kamsarmax vessel, *Konkar Venture*. We invested $7.3 million (60%) of the $13.2 million of initial cash equity of Drythree Corp. in combination with $16.5 million of secured bank debt and the issuance of $1.4 million of restricted common shares of the Company valued at $1.5 million to purchase the vessel, pay transaction costs and provide for vessel working capital. We have provided the same lender a limited separate guarantee for our pro-rata share of each vessel loan and Konkar Agencies is responsible for the balances. The JV Agreements contain certain obligations among the shareholders that may affect the transfer or sale of their interests, future capital calls to fund operations or cure a default under each respective loan agreement, and the resolution of certain disputes that could arise at the board level. In contrast to our wholly-owned vessel-owning subsidiaries, the joint ventures may create obligations and restrictions that are less flexible than those applicable to us under our wholly-owned structure and may require us to provide incremental financial support or take other actions in connection with capital needs, loan defaults or disputes, any of which could result in the untimely sale of the respective dry-bulk vessel.

***While the Company has two scrubber-fitted dry-bulk vessels, it does not plan to install scrubbers on the remaining vessels in its fleet and will have to pay more for fuel which could adversely affect the Company's business, results of operations and financial condition.***

In light of operating and economic uncertainties surrounding the use of scrubbers and alternatives for capital allocation, the Company has chosen not to purchase and install these units on its product tankers and the bulker *Konkar Venture*. However, the Company may, in the future, consider purchasing scrubbers for installation on these vessels. While scrubbers rely on technology that has been developed over a significant period of time for use in a variety of applications, their use for maritime applications is a more recent development. Each vessel will require physical modifications to be made in order to install a scrubber, the scope of which will depend on, among other matters, the age and type of vessel, its engine and its existing fixtures and equipment. The purchase and installation of scrubbers will involve significant capital expenditures, which we currently estimate at $1.5 million per vessel, and the vessel will be out of operation for up to 30 days in order for the scrubbers to be installed. In addition, future arrangements that the Company may enter into with respect to shipyard drydock capacity to implement these scrubber installations may be affected by delays or issues affecting vessel modifications being undertaken by other vessel owners at those shipyards, which could cause the Company's vessels to be out of service for even longer periods or installation dates to be delayed. The *Konkar Ormi* and *Konkar Asteri* are fitted with scrubbers, but we have a limited historical experience with scrubbers. Consequently, the operation, repair and maintenance of scrubbers and related ongoing costs may be uncertain.

As of early 2026, approximately 6.5% of product tankers by vessel count (and 23% by dwt) were scrubber-fitted, and scrubber-fitted MR product tankers earned an average premium of about $2,000 per day over the past three years relative to comparable non-scrubber-fitted vessels. Similarly, scrubber-fitted Panamax/Kamsarmax and Supramax/ Ultramax dry-bulk vessels earned average premiums of about $2,000 per day and $1,800 per day, respectively, over the same period. Fuel expense reductions from operating scrubber-fitted vessels could result in a substantial reduction of bunker cost for charterers compared to vessels in our fleet which do not have scrubbers. If (a) the supply of scrubber-fitted tankers increases, (b) the differential between the cost of HSFO and LSFO is high, and (c) charterers prefer such vessels over our product tankers and dry-bulk vessels, demand for our vessels may be reduced and our ability to re-charter our vessels at competitive rates may be impaired.

Furthermore, the availability of HSFO and LSFO around the world as well as the prices of HSFO and LSFO generally and the price differential between the two fuels have been uncertain and volatile, even more so with the outbreak of war between the U.S. and Israel, and Iran. However, LSFO is materially more expensive than HSFO. If LSFO is unavailable in port and we or our charterers cannot obtain a temporary waiver to refuel and use HSFO for the next voyage, we or our charterers could be subject to fines by regulatory authorities and be in violation of the charter agreements. Alternatively, we could use MGO, which is significantly more expensive than LSFO. Scarcity and the quality in the supply of LSFO, or a higher-than-anticipated difference in the costs between the alternative types of fuel, may cause the Company to pay more for its fuel than scrubber fitted vessels, which could adversely affect the Company's business, results of operations and financial condition, particularly when we are unable to pass on the costs of higher fuel to charterers due to competitive conditions.

***We may not be able to implement our business strategy successfully or manage our growth effectively.***

Our future growth will depend on the successful implementation of our business strategy, including our recent entrance into the dry-bulk sector. A principal focus of our business strategy is to grow by expanding the size of our fleet while capitalizing on a mix of charter types, including on the spot market. Growing any business by acquisition presents numerous risks, such as undisclosed liabilities and obligations, difficulty in obtaining additional qualified personnel and managing relationships with customers and suppliers and integrating newly acquired operations into existing infrastructures. The expansion of the Company's fleet may impose significant additional responsibilities on our management and may necessitate an increase in the number of personnel. Other risks and uncertainties include distraction of management from current operations, insufficient revenue to offset liabilities assumed, potential loss of significant revenue and income streams, unexpected expenses, inadequate return of capital, regulatory or compliance issues, the triggering of certain covenants in the Company's debt instruments (including accelerated repayment) and other unidentified issues not discovered in due diligence. As a result of the risks inherent in such transactions, the Company cannot guarantee that any such transaction will ultimately result in the realization of the anticipated benefits of the transaction or that significant transactions will not have a material adverse impact on its business, results of operations and financial condition. Our future growth will depend upon a number of factors, some of which are not within our control, including our ability to identify suitable vessels and/or shipping companies for acquisition at attractive prices, identify and consummate desirable acquisitions, joint ventures or strategic alliances, integrate any acquired vessels or businesses successfully with the Company's existing operations, hire, train and retain qualified personnel to manage and operate our growing business and fleet, identify additional new markets, enhance the Company's customer base, improve our operating, financial and accounting systems and controls, expand into new markets, and obtain required financing for our existing and new vessels and operations.

Acquisitions of vessels may not be profitable to us at or after the time we acquire them. We may fail to realize anticipated benefits, decrease our liquidity by using a significant portion of our available cash or borrowing capacity to finance vessel acquisitions, significantly increase our interest expense or financial leverage if we incur additional debt to finance vessel acquisitions, fail to integrate any acquired vessels or business successfully with our existing operations, accounting systems and infrastructure generally, assume unanticipated liabilities, capital expenditures, losses or costs associated with vessels acquired, or incur other significant charges, such as impairment of goodwill or other intangible assets, asset devaluation or restructuring charges.

The Company's failure to effectively identify, purchase, develop and integrate additional vessels or businesses could adversely affect our business, results of operations and financial condition. The number of employees that perform services for the Company and our current operating and financial systems may not be adequate as the Company implements its plan to expand the size of our fleet, and we may not be able to effectively hire more employees or adequately improve those systems. Future acquisitions may also require additional equity issuances or debt issuances (with amortization payments). If any such events occur, the Company's financial condition may be adversely affected. The Company cannot give any assurance that we will be successful in executing our growth plans or that we will not incur significant expenses and losses in connection with our future growth.

However, even if we successfully implement our business strategy, we may not improve our net revenues or operating results. Furthermore, we may decide to alter or discontinue aspects of our business strategy and may adopt alternative or additional strategies in response to business or competitive factors or factors or events beyond our control. Our failure to execute our business strategy or to manage our growth effectively could adversely affect our business, results of operations and financial condition.

***If we purchase and operate secondhand vessels, we will be exposed to start-up costs and increased operating expenses which could adversely affect our earnings and, as our fleet ages, the risks associated with older vessels could adversely affect our ability to obtain profitable charters.***

The Company's current business strategy primarily includes additional future growth through the acquisition of secondhand mid-sized product tankers and dry bulk vessels and, possibly, newbuild resales. While the Company typically thoroughly inspects secondhand vessels prior to purchase, this does not provide the Company with the same knowledge about their condition that it would have had if these vessels had been built for and operated exclusively for us. Generally, the Company does not receive the benefit of warranties from the builders for the secondhand vessels that we acquire. A secondhand vessel may also have conditions or defects that we were not aware of when we bought the vessel and which may require us to incur costly repairs to the vessel. These repairs may require us to put a vessel into drydock, which would reduce our fleet utilization and increase our operating costs. Any hidden defects or problems, if not detected, may result in accidents or other incidents for which we may become liable to third parties. The market prices of secondhand vessels also tend to fluctuate with changes in charter rates and the cost of newbuild vessels, and if we sell the vessels, the sale prices may not equal and could be less than their carrying values at that time.

Moreover, upon delivery of the vessel, we will incur various start-up costs, such as provisioning, bunkers and crew training which temporarily increase our operating expenses and decrease profitability in comparison to other reporting periods. Moreover, during their initial period of operation, a newly acquired vessel may experience the possibility of structural, mechanical and electrical problems which could result in incremental operating expenses and off-hire days. Typically, the purchaser of a newbuilding will receive the benefit of a warranty from the shipyard for new buildings, but we cannot assure you that any warranty we obtain will be able to resolve any problem with the vessel without additional costs to us and off-hire periods for the vessel.

Changing market and regulatory conditions may limit the availability of suitable vessels because of customer preferences or because vessels are not or will not be compliant with existing or future rules, regulations and conventions. Additionally, vessels of the age and quality we desire may not be available for purchase at prices we are prepared to pay or at delivery times acceptable to us, and we may not be able to dispose of vessels at reasonable prices, if at all. Any vessel acquisition will likely include proceeds from loans which may not be available to us on acceptable terms and conditions, if at all. If we are unable to purchase vessels, which include satisfactory financing, and dispose of vessels at reasonable prices in response to changing market and regulatory conditions, our business may be adversely affected.

In general, the costs to maintain a vessel in good operating condition increase with the age of the vessel. Older vessels are typically less fuel-efficient and may attract lower charter rates than more recently constructed vessels due to improvements in engine technology. As of March 23, 2026, the average age of our dry bulk and product tanker fleets are approximately 10.3 and 11.6 years, respectively. Cargo insurance rates increase with the age of a vessel, making older vessels less desirable to charterers.

Governmental regulations, safety or other equipment standards related to the age of vessels may require expenditures for alterations, or the addition of new equipment, to our vessels and may restrict the type of activities in which the vessels may engage. As our vessels age, market conditions may not justify those expenditures or enable us to operate our vessels profitably during the remainder of their useful lives.

In addition, unless we maintain cash reserves or raise external funds on acceptable terms for vessel replacement, we may be unable to replace the vessels in our fleet upon the expiration of their useful lives. We estimate the useful life of our vessels to be 25 years from the date of initial delivery from the shipyard and range from 2038 to 2042. Our cash flows and income are dependent on the revenues we earn by chartering our vessels to customers. If we are unable to replace the vessels in our fleet upon the expiration of their useful lives, our business, results of operations and financial condition will be materially adversely affected. Any reserves set aside for vessel replacement may not be available for other cash needs, including improvement of working capital, early repayment of debt or possible cash dividends.

***Delays in deliveries of additional vessels, our decision to cancel an order for purchase of a vessel, or our inability to otherwise complete the acquisitions of additional vessels for our fleet, could harm our operating results.***

Although we currently have no vessels on order, under construction or subject to purchase agreements, we expect to purchase additional vessels from time to time as part of our growth and fleet renewal plans. The delivery of these vessels, or vessels on order, could be delayed, not completed or cancelled, which would delay or eliminate our expected receipt of revenues from the employment of these vessels. The seller could fail to deliver these vessels to us as agreed, or we could cancel a purchase contract because the seller has not met its obligations. The delivery of vessels we propose to order or that are on order could be delayed because of, among other things:

● work stoppages or other labor disturbances, engineering problems or other events that disrupt the operations of the shipyard building the vessels;

● changes in governmental regulations or maritime self-regulatory organization standards;

● lack of raw materials or supply chain issues for vessel parts and components;

● bankruptcy or other financial crisis of the shipyard building the vessels;

● our inability to obtain requisite financing or make timely payments;

● a backlog of orders at the shipyard building the vessels;

● hostilities, political, health or economic disturbances in the countries where the vessels are being built;

● weather interference or a catastrophic event, such as a major earthquake, typhoon or fire;

● our requests for changes to the original vessel specifications;

● shortages or delays in the receipt of necessary construction materials, such as steel;

● our inability to obtain requisite permits or approvals;

● a dispute with the shipyard building the vessels, non-performance of the purchase or construction agreement with respect to a vessel by the seller or the shipyard as applicable;

● non-performance of the vessel purchase agreement by the seller;

● our inability to obtain requisite permits, approvals or financings; or

● damage to or destruction of vessels while being operated by the seller prior to the delivery date.

If the delivery of any vessel is materially delayed or cancelled, especially if we have committed the vessel to a charter under which we become responsible for substantial liquidated damages to the customer as a result of the delay or cancellation, our business, results of operations and financial condition could be adversely affected.

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***Declines in charter rates and other market deterioration could cause us to incur vessel impairment charges.***

We evaluate the carrying amounts of our vessels to determine if events have occurred that would require an impairment of their carrying amounts. The Company reviews the carrying values of its vessels for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. Whenever certain indicators of potential impairment are present, such as third party vessel valuation reports, the Company performs a test of recoverability of the carrying amount of the assets. The projection of future cash flows related to the vessels is complex and requires the Company to make various estimates including future charter rates, residual values, future dry-dockings and operating costs, which are included in the analysis. All of these items have been historically volatile. The Company recognizes an impairment charge if the carrying value is in excess of the estimated future undiscounted net operating cash flows. The impairment loss is measured based on the excess of the carrying amount over the fair market value of the asset.

Although the Company believes that the assumptions used to evaluate potential impairment are reasonable and appropriate at the time they are made, such assumptions are highly subjective and likely to change, possibly materially, in the future. There can be no assurance as to how long charter rates and vessel values will remain at their current levels or whether they will improve by a significant degree. If charter rates were to remain at depressed levels, future assessments of vessel impairments would be adversely affected. Any impairment charges incurred as a result of further declines in charter rates could have a material adverse impact on the Company's business, results of operations and financial condition.

Should the carrying value plus the unamortized dry-dock and survey balance of a vessel exceed its estimated future undiscounted net operating cash flows, impairment is measured based on the excess of the carrying amount over the fair market value of the asset. The Company determines the fair value of its vessels primarily based on third-party valuations, while also considering available market data, including reported vessel sale and purchase transactions and broker market information. The review of the carrying amounts plus the unamortized dry-dock and survey balances in connection with the estimated recoverable amount indicated no impairment charge for the Company's vessels as of December 31, 2025, with a recoverability analysis based on estimated undiscounted cash flows performed for the one vessel for which the carrying amount exceeded fair value by $0.5 million.

***The market values of our vessels may decline, which could limit the amount of funds that we can borrow, cause us to breach certain financial covenants in our credit facilities, or result in an impairment charge, and cause us to incur a loss if we sell vessels following a decline in their market value.***

The fair market values of product tankers and dry bulk carriers, including our vessels, have generally experienced high volatility have recently declined and may decline further in the future. The fair market value of vessels may increase and decrease depending on but not limited to the following factors:

● general economic and market conditions affecting the shipping industry;

● the balance between the supply of and demand for ships of a certain type;

● competition from other shipping companies;

● the availability and cost of ships of the required size and design;

● the availability of other modes of transportation;

● the cost of newbuildings;

● shipyard capacity;

● changes in environmental, governmental or other regulations that may limit the useful life of vessels, require costly upgrades or limit their efficiency;

● distressed asset sales, including newbuilding contract sales below acquisition costs due to lack of financing;

● the types, sizes, sophistication and ages of vessels, including as compared to other vessels in the market;

● the prevailing level of charter rates;

● the need to upgrade secondhand and previously owned vessels as a result of environmental, safety, regulatory or charterer requirements;

● scrap values; and

● technological advances in vessel design, capacity, propulsion technology and fuel consumption efficiency.

During the period a vessel is subject to a charter, we might not be permitted to sell it to take advantage of increases in vessel values without the charterer's consent. If we sell a vessel at a time when ship prices have fallen, the sale may be at less than the vessel's carrying amount in our financial statements, with the result that we could incur a loss and a reduction in earnings. There were no impairment losses recorded in 2023 related to the sales of vessels and no vessel sales occurred in 2024 and 2025. The carrying values of our vessels are reviewed quarterly or whenever events or changes in circumstances indicate that the carrying amount of the vessel may no longer be recoverable. We assess recoverability of the carrying value by estimating the future net cash flows expected to result from the vessel, including eventual disposal for vessels. If the future net undiscounted cash flows and the estimated fair market value of the vessel are less than the carrying value, an impairment loss is recorded equal to the difference between the vessel's carrying value and fair value. Any impairment charges incurred as a result of declines in charter rates and other market deterioration could negatively affect our business, financial condition or operating results or the trading price of our common shares. Our secured loan agreements, which are secured by mortgages on our vessels, contain various financial covenants. Any change in the assessed market value of any of our vessels might also cause a violation of the covenants of each secured credit agreement, which, in turn, might restrict our cash and affect our liquidity.

Conversely, if vessel values are elevated at a time when we wish to acquire additional vessels, the cost of acquisition may increase and this could adversely affect our business, results of operations, cash flow and financial condition.

***We are dependent on the services of our founder and Chief Executive Officer and other members of our senior management team.***

We are dependent upon our Chief Executive Officer, Mr. Valentis, and the other members of our senior management team for the principal decisions with respect to our business activities. The loss or unavailability of the services of any of these key members of our management team for any significant period of time, or the inability of these individuals to manage or delegate their responsibilities successfully as our business grows, could adversely affect our business, results of operations and financial condition. Our success will depend upon our ability to retain key members of our management team and to hire new members as may be necessary. If the individuals were no longer to be affiliated with us, we may be unable to recruit other employees with equivalent talent and experience, and our business and financial condition may suffer as a result. We do not maintain "key man" life insurance for our Chief Executive Officer or other members of our senior management team.

***Our founder, Chairman and Chief Executive Officer has affiliations with Maritime and Konkar Agencies, which may create conflicts of interest; Mr. Valentis has a majority ownership of the Company and can significantly influence the outcome of matters on which our shareholders can vote.***

Mr. Valentis, our founder, Chairman and Chief Executive Officer, also owns and controls Maritime and Konkar Agencies. His responsibilities and relationships with Maritime and Konkar Agencies could create conflicts of interest between us, on the one hand, and either one or both, on the other hand. These conflicts may arise in connection with the chartering, purchase, sale and operations of the vessels in our fleet versus vessels managed by other companies affiliated with Maritime and Konkar Agencies and may not be resolved in our favor. Maritime entered into a Head Management Agreement (as defined herein) with us and into separate ship management agreements with our subsidiaries. Konkar Agencies provides commercial and technical management services to our dry-bulk carriers. The negotiation of these management arrangements may have resulted in certain terms that may not reflect market standard terms or may include terms that could not have been obtained from arms-length negotiations with unaffiliated third parties for similar services.

Various entities affiliated with Mr. Valentis own two modern mid-sized dry-bulk carriers, none of which are scrubber-fitted. Konkar Agencies provides similar commercial and technical management services for these vessels which could be in conflict to us and may have an adverse effect on our business, results of operations and financial condition. In addition, Konkar Agencies guarantees 40% of the bank loans on the *Konkar Ormi* and *Konkar Venture* and any non-performance by it under the loan agreements could result in material adverse impact to our financial condition.

Furthermore, Maritime Investors Corp, or MIC, an entity controlled by Mr. Valentis, beneficially owns 58.5% of our total outstanding common stock (as of the date of this Annual Report), which may limit stockholders' ability to influence our actions. As a result, MIC has the power to exert considerable influence over our actions through its ability to effectively control matters requiring stockholder approval, including the determination to enter into a corporate transaction or to prevent a transaction, regardless of whether our other stockholders believe that any such transaction is in their or our best interests. For example, MIC could cause us to consummate a merger or acquisition that increases the amount of our indebtedness or causes us to sell all of our revenue-generating assets. This concentration of ownership may have the effect of delaying, deferring or preventing a change in control, merger, consolidation, takeover or other business combination. This concentration of ownership could also discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which could in turn have an adverse effect on the market price of our shares. We cannot assure you that the interests of Maritime will coincide with the interests of other stockholders. As a result, the market price of shares of our common stock could be adversely affected.

Furthermore, Maritime may invest in entities that directly or indirectly compete with us, or companies in which Maritime currently invests may begin competing with us. Maritime may also separately pursue acquisition opportunities, including vessels, that may be complementary to our business. However, effective August 7, 2024, Konkar Agencies, MIC and Mr. Valentis granted the Company a right of first refusal regarding potential vessel acquisitions and chartering opportunities. As a result of these relationships, when conflicts arise between the interests of Maritime and the interests of our other stockholders, Mr. Valentis may not be a disinterested director. Maritime will effectively control all of our corporate decisions so long as they continue to own a substantial number of shares of our common stock.

***Several of our senior executive officers do not, and certain of our officers in the future may not, devote all of their time to our business, which may hinder our ability to operate successfully.***

Mr. Valentis, our Chairman and Chief Executive Officer, Mr. Lytras, our Chief Operating Officer and Secretary and Mr. Williams, our Chief Financial Officer, participate, and other of our senior officers which we may appoint in the future may also participate, in business activities not associated with us. As a result, they may devote less time to us than if they were not engaged in other business activities and may owe fiduciary duties to our stockholders as well as stockholders of other companies with which they may be affiliated. This may create conflicts of interest in matters involving or affecting us and our customers and it is not certain that any of these conflicts of interest will be resolved in our favor. This could have a material adverse effect on our business, results of operations and financial condition.

***Our insurance may be insufficient to cover losses that may result from our operations.***

Although we carry hull and machinery, protection and indemnity and war risk insurance on each of the vessels in our fleet, we face several risks regarding that insurance. Our insurers may refuse to pay particular claims and our insurance may be voidable by the insurers if we take, or fail to take, certain action, such as failing to maintain certification of our vessels with applicable maritime regulatory organizations. The insurance is subject to deductibles, limits and exclusions. Since it is possible that a large number of claims may be brought, the aggregate amount of these deductibles could be material. As a result, there may be other risks against which we are not insured, and certain claims may not be paid. Moreover, the insurers may default on any claims they are required to pay. If our insurance is not enough to cover claims that may arise, it may have a material adverse effect on our financial condition, results of operations and cash flows. We do not carry insurance covering the loss of revenues resulting from vessel off-hire time based on our analysis of the cost of this coverage compared to our off-hire experience.

Certain of our insurance coverage, such as tort liability (including pollution-related liability), is maintained through mutual protection and indemnity associations, and as a member of such associations we may be required to make additional payments over and above budgeted premiums if member claims exceed association reserves. Claims submitted to the association may include those incurred by members of the association, as well as claims submitted to the association from other protection and indemnity associations with which our association has entered into inter-association agreements. We cannot assure you that the associations to which we belong will remain viable. If such associations do not remain viable or are unable to cover our losses, we may have to pay what our insurance does not cover in full.

We may be unable to procure adequate insurance coverage at commercially reasonable rates in the future. For example, more stringent environmental regulations have led in the past to increased costs for, and in the future may result in the lack of availability of, insurance against risks of environmental damage or pollution. Changes in the insurance markets attributable to terrorist attacks may also make certain types of insurance more difficult for us to obtain. We maintain for each of the vessels in our existing fleet pollution liability coverage insurance in the amount of $1.0 billion per incident. A catastrophic oil spill or marine disaster could exceed such insurance coverage. In addition, our insurance may be voidable by the insurers as a result of certain of our actions, such as our vessels failing to maintain certification with applicable maritime self-regulatory organizations. The circumstances of a spill, including non-compliance with environmental laws, could also result in the denial of coverage, protracted litigation and delayed or diminished insurance recoveries or settlements. The insurance that may be available to us may be significantly more expensive than our existing coverage. Furthermore, even if insurance coverage is adequate, we may not be able to obtain a timely replacement vessel in the event of a loss. Any of these circumstances or events could negatively impact our business, results of operations and financial condition.

Additionally, we may be subject to increased premium payments, or calls, in amounts based on its claim records, the claim records of ITM, Maritime or Konkar Agencies, as well as the claim records of other members of the protection and indemnity associations through which the Company receives insurance coverage for tort liability, including pollution-related liability. The Company's protection and indemnity associations may not have sufficient resources to cover claims made against them. The Company's payment of these calls could result in significant expense to the Company, which could have a material adverse effect on us.

***We and our subsidiaries may be subject to group liability for damages or debts owed by one of our subsidiaries or by us.***

Except for the *Konkar Ormi* and the *Konkar Venture*, which are owned by individual joint ventures which we control, each of our vessels is separately owned by individual subsidiaries, under certain circumstances, a parent company and its ship-owning subsidiaries can be held liable under corporate veil piercing principles for damages or debts owed by one of the subsidiaries or the parent. Therefore, it is possible that all of our assets and those of our subsidiaries could be subject to execution upon a judgment against us or any of our subsidiaries.

***Maritime, ITM and Konkar Agencies are privately held companies and there is little or no publicly available information about them.***

The ability of Maritime, ITM and Konkar Agencies to render their respective management services will depend in part on their own financial strength. Circumstances beyond each such company's control could impair its financial strength. Because each of these companies is privately held, information about each company's financial strength is not available. As a result, we and an investor in our securities might have little advance warning of financial or other problems affecting either Maritime, ITM or Konkar Agencies even though their financial or other problems could have a material adverse effect on us and our stockholders.

***Exchange rate fluctuations could adversely affect our revenues, financial condition and operating results.***

We generate a significant part of our revenues in U.S. dollars but incur costs in other currencies. The difference in currencies could in the future lead to fluctuations in our net income due to changes in the value of the U.S. dollar relative to other currencies. We have not hedged our exposure to exchange rate fluctuations, and as a result, our U.S. dollar denominated results of operations and financial condition could suffer as exchange rates fluctuate.

***We may face labor interruptions, which if not resolved in a timely manner, could have a material adverse effect on our business.***

We, indirectly through our technical managers, employ masters, officers and crews to operate our vessels, exposing us to the risk that industrial actions or other labor unrest may occur. A number of the officers on our vessels are from Ukraine and Russia, which have been engaged in hostilities. We may suffer labor disruptions if relationships deteriorate with the seafarers or the unions that represent them. A majority of the crew members on the vessels in our fleet that are under time or spot voyage charters are employed under collective bargaining agreements. ITM and Konkar Agencies is a party to some of these collective bargaining agreements. These collective bargaining agreements and any employment arrangements with crew members on the vessels in our fleet may not prevent labor interruptions, particularly since they are subject to renegotiation in the future. Any labor interruptions, including due to failure to successfully renegotiate collective bargaining employment agreements with the crew members on the vessels in our fleet, that are not resolved in a timely and cost-effective manner, industrial action or other labor unrest could prevent or hinder our operations from being carried out as we expect, could disrupt our operations and could adversely affect our business, results of operations and financial condition.

***A cyber-attack or network security breaches and failure to comply with data privacy laws could materially disrupt our business.***

We and our ship managers rely on information technology systems and networks in our and their operations and business administration. The efficient operation of our business, including processing, transmitting and storing electronic and financial information, is dependent on computer hardware and software systems. Information systems are vulnerable to security breaches by computer hackers and cyber terrorists. We rely on industry accepted security measures and technology to securely maintain confidential and proprietary information maintained on our information systems. However, these measures and technology may not adequately prevent security breaches. Therefore, our or any of our ship managers' operations and business administration could be targeted by individuals or groups seeking to sabotage or disrupt such systems and networks, or to steal data and these systems may be damaged, shutdown or cease to function properly (whether by planned upgrades, force majeure, telecommunications failures, hardware or software break-ins or viruses, other cyber-security incidents or otherwise). A successful cyber-attack could materially disrupt our or our managers' operations, which could also adversely affect the safety of our operations or result in the unauthorized release or alteration of information in our or our managers' systems. Such an attack on us, or our managers, could result in significant expenses to investigate and repair security breaches or system damages and could lead to litigation, fines, other remedial action, heightened regulatory scrutiny, diminished customer confidence and damage to our reputation. We do not maintain cyber-liability insurance at this time to cover such losses. As a result, a cyber-attack or other breach of any such information technology systems could have a material adverse effect on our business, results of operations and financial condition.

Additionally, our information systems and infrastructure could be physically damaged by events such as fires, terrorist attacks and unauthorized access to our servers and facilities, as well as the unauthorized entrance into our information systems. Furthermore, we communicate with our customers through an ecommerce platform run by third-party service providers over which we have no management control. A potential failure of our computer systems or a failure of our third-party ecommerce platform provider to satisfy its contractual service level commitments to us may have a material-adverse effect on our business, financial condition and results of operation. Our efforts to modernize and digitize our operations and communications with our customers further increase our dependency on information technology systems, which exacerbates the risks we could face if these systems malfunction.

The E.U. has adopted a comprehensive overhaul of its data protection regime from the current national legislative approach to a single European Economic Area Privacy Regulation, the General Data Protection Regulation, or GDPR. The GDPR came into force on May 25, 2018, and applies to organizations located within the E.U., as well as to organizations located outside of the E.U. if they offer goods or services to, or monitor the behavior of, E.U. data subjects. It imposes a strict data protection compliance regime with significant penalties and includes new rights such as the "portability" of personal data. It applies to all companies processing and holding the personal data of data subjects residing in the E.U., regardless of the company's location. Implementation of the GDPR could require changes to certain of our business practices, thereby increasing our costs. Our failure to adhere to or successfully implement processes in response to changing regulatory requirements in this area could result in legal liability or impairment to our reputation in the marketplace, which could have a material adverse effect on our business, financial condition and results of operations.

Further, in July 2023, the SEC adopted amendments to its rules on cybersecurity risk management, strategy, governance, and incident disclosure. The amendments, require us to report material cybersecurity incidents involving our information systems and periodic reporting regarding our policies and procedures to identify and manage cybersecurity risks, amongst other disclosures. A failure to disclosure could result in the imposition of injunctions, fines and other penalties by the SEC. Complying with these obligations could cause us to incur substantial costs and could increase negative publicity surrounding any cybersecurity incident. As of the date of this Annual Report, we have not experienced any material cybersecurity incident which would be disclosable under SEC guidelines.

For more information on our cybersecurity risk management and strategy, please see "Item 16K. Cybersecurity."

**Risks Related to Our Indebtedness**

***We may not be able to generate sufficient cash flow to meet our debt service and other obligations; Market values of our vessels may decline which could breach covenants in our loans.***

 ****

Our ability to make scheduled payments on our outstanding indebtedness and other obligations will depend on our ability to generate cash from operations in the future. Our future financial and operating performance will be affected by a range of economic, financial, competitive, regulatory, business and other factors that we cannot control, such as general economic and financial conditions in the tanker and dry-bulk sectors or the economy generally. In particular, our ability to generate steady cash flow will depend on our ability to secure charters at acceptable rates. Our ability to renew our existing charters or obtain new charters at acceptable rates or at all will depend on the prevailing economic and competitive conditions.

Amounts borrowed under our bank loan agreements bear interest at variable rates. Increases in prevailing interest rates could increase the amounts that we would have to pay to our lenders, even though the outstanding principal amount remains the same, and our net income and cash flows would decrease.

In addition, our existing loan agreements require us to maintain various cash balances, while our financial and operating performance is also dependent on our subsidiaries' ability to make distributions to us, whether in the form of dividends, loans or otherwise. The timing and amount of such distributions will depend on restrictions on our various debt instruments, our earnings, financial condition, cash requirements and availability, fleet renewal and expansion, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

At any time that our operating cash flows are insufficient to service our debt and other liquidity needs, we may be forced to take actions such as increasing our accounts payable and/or our amounts due to related parties, reducing or delaying capital expenditures, selling assets, restructuring or refinancing our indebtedness, seeking additional capital, seeking bankruptcy protection or any combination of the foregoing. We cannot assure you that any of the actions previously listed could be effected on satisfactory terms, if at all, or that they would yield sufficient funds to make required payments on our outstanding indebtedness and to fund our other liquidity needs. As of March 23, 2026, our total funded debt outstanding, net of deferred financing costs aggregated $87.56 million. Our next loan maturity is scheduled for September 2028 with a balloon payment of $8.6 million on the *Pyxis Karteria*. Also, the terms of existing or future debt agreements may restrict us from pursuing any of these actions as, among other things, if we are unable to meet our debt obligations or if some other default occurs under our loan agreements, the lenders could elect to declare that debt, together with accrued interest and fees, to be immediately due and payable and foreclose against the collateral vessels securing that debt. Any such action could also result in an impairment of cash flows and our ability to service debt in the future. Further, our debt level could make us more vulnerable than our competitors with less debt to competitive pressures or a downturn in our business or the economy generally.

The market values of product tankers and dry-bulk vessels are highly volatile. In the future, a decline in market values may cause the Company to recognize losses if we sell our vessels or record impairments and affect the Company's ability to comply with its loan covenants and refinance its debt. The fair market values for product tankers declined significantly from historically high levels reached in 2008, but have significantly increased from Fall, 2021 until Spring, 2024. Subsequently, reported prices of second-hand five and 10-year-old MRs have declined, but starting summer, 2025 stabilized, and steadily improved through mid- March, 2026. By then, the average indicative prices from a group of international ship brokers for a five and 10-year-old MR was $46.2 million, and $36.1 million, respectively. While prices for mid-sized dry-bulk carriers softened during most of 2023, they increased through Summer, 2024. But bulker prices have also declined over the similar period ending Spring, 2025. Starting the second half of 2025, bulker prices began to stabilize and then improve due to better chartering conditions. For example, the average indicative price of a five and a 10-year-old Kamsarmax was $36.0 million, and $28.9 million, respectively in mid- March, 2026. You should expect the market value of our vessels to fluctuate. Values for ships can fluctuate substantially over time due to a number of factors that have been mentioned in this section. As vessels grow older, they naturally depreciate in value. If the market value of our fleet declines further, we may not be able to refinance our debt or obtain additional financing and our subsidiaries may not be able to make distributions to the Company. An additional decrease in these values could cause us to breach certain covenants that are contained in our loan agreements and in future financing agreements. The prepayment of certain debt facilities may be necessary to cause the Company to maintain compliance with certain covenants in the event that the value of the vessels falls below certain levels.

If we breach covenants in our loan agreements or future financing agreements and are unable to cure the breach, our lenders could accelerate our debt repayment and foreclose on vessels in our fleet securing those debt instruments or seek other similar remedies. In addition, if a charter contract expires or is terminated by the charterer, the Company may be unable to re-charter the affected vessel at an attractive rate and, rather than continue to incur maintenance and financing costs for that vessel, the Company may seek to dispose of the affected vessel. If the Company sells one or more of its vessels at a time when vessel prices have fallen, the sale price may be less than the vessel's carrying value on the Company's consolidated financial statements, resulting in a loss on sale or an impairment loss being recognized, ultimately leading to a reduction of net income. Furthermore, if vessel values fall significantly, this could indicate a decrease in the recoverable amount for the vessel and may have a material adverse impact on its business, results of operations and financial condition.

***Restrictive covenants in our current and future loan agreements may impose financial and other restrictions on us.***

The restrictions and covenants in our current and future loan agreements could adversely affect our ability to finance future operations or capital needs or to pursue and expand our business activities. Our current loan agreements contain, and future financing agreements will likely contain, restrictive covenants that prohibit us or our subsidiaries from, among other things:

● paying dividends only if there is a default under the loan agreements with i) Alpha Bank, collectively, the Alpha Facilities, with respect to our subsidiaries Seventhone Corp., or Seventhone, Eleventhone Corp., or Eleventhone, and subsequent to December 31, 2023, Drytwo Corp., or Drytwo, if the ratio of our total liabilities (including those of our subsidiaries as a group) less cash and cash equivalents to the adjusted market value of total assets is greater than 75% for the applicable year. As of December 31, 2025, the ratio of total liabilities less cash and cash equivalents to the adjusted market value of our total assets was 40%, and therefore, under the Alpha Bank Facilities, these subsidiaries were permitted to distribute dividends to us as of December 31, 2025; and ii) Piraeus Bank, collectively, the Piraeus Facilities, with respect to our subsidiaries Tenthone Corp., or Tenthone, partially-owned Dryone Corp., or Dryone, and partially-owned Drythree Corp., or Drythree, without the lender's written consent or upon the occurrence of an event of default, or if the ratio of our total liabilities (including those of our subsidiaries as a group) less cash and cash equivalents to the adjusted market value of total assets is greater than 75% for the applicable year. As of December 31, 2025, the ratio of total liabilities less cash and cash equivalents to the adjusted market value of our total assets was 40%, and therefore, under the Piraeus Bank Facilities, these subsidiaries were permitted to distribute dividends to us as of December 31, 2025. (Except as described above, there were no other material restrictions on the ability of our subsidiaries to distribute dividends or other funds to us as of December 31, 2025);

● incurring or guaranteeing indebtedness;

● charging, pledging or otherwise encumbering our vessels;

● changing the flag, class, management or ownership of our vessels, or terminating the management agreement relating to each vessel;

● utilizing available cash;

● changing ownership or structure, including through mergers, consolidations, liquidations or dissolutions;

● making certain investments;

● entering into a new line of business;

● changing the commercial and technical management of our vessels;

● selling, transferring, assigning or changing the beneficial ownership or control of our vessels; and

● changing the control, or Mr. Valentis maintaining less than 25% ownership or Mr. Valentis ceases to be the Chairman of the corporate guarantor.

In addition, the loan agreements generally contain covenants requiring us, among other things, to ensure that:

● we maintain minimum liquidity cash balances for each vessel borrowers Our required minimum cash balance as of December 31, 2024 and 2025 was $1.35 million and $1.35 million, respectively; In the case of the Piraeus Facilities, maintain at least a) $2 million of cash on consolidated basis or b) 3% of consolidated debt.

● the fair market value of the mortgaged vessel plus any additional collateral must be no less than a certain percentage, ranging from 125% to 130%, of outstanding borrowings under the applicable loan agreement, less, in certain loan agreements, any money in respect of the principal outstanding with the credit of any applicable retention account and any free or pledged cash deposits held with the lender in our or its subsidiary's name;

● in the case of the Piraeus Facilities, we maintain consolidated leverage of less than 75% of total liabilities less cash and the Promissory Note in relation to fair market value of adjusted total assets; and

● we maintain vessel insurances of the higher of market value or at least 120% of the outstanding balance of the individual Alpha Facilities and at least 110% of the individual Piraeus Facilities.

In September, 2023, we closed the $6.8 million equity investment in an operating joint venture to purchase the dry-bulk carrier *Konkar Ormi*. We own 60% of this joint venture in which the balance is owned by an entity related to Mr. Valentis. The purchase of the vessel was partially funded by a $19.0 million secured five-year bank loan which we consolidate in our financial statements under the relevant Accounting Standards Codification, or ASC, 810 guidelines as a result of our control over the joint venture. As of December 31, 2025, the Dryone outstanding loan balance was $15.9 million. On June 28, 2024, we closed the $7.3 million equity investment in a similar joint venture to purchase the *Konkar Venture* in which we own 60% and the balance is owned by the same affiliate of Mr. Valentis. The purchase of this vessel was partially funded by a $16.5 million secured five -year bank loan which is also consolidated under our financial statements. At December 31, 2025, the Drythree outstanding loan balance was $14.61 million. Standard loan covenants are included in both loans from the same lender; however, our guarantee is limited to 60% of each loan obligation and the Konkar Agencies guarantee is individually limited to the balance of 40%. As a limited guarantor of the Dryone and Drythree loans, we are required to maintain the ratio not to exceed 75% of our total liabilities (exclusive of the Promissory Note) to market adjusted total assets. As of December 31, 2025, the requirement was met as such ratio was 40%, or 35% lower than the required threshold. In the case of an event of default under the Dryone or Drythree loan agreements and the guarantees are called upon by the lender, Piraeus Bank, each party has to pay its pro-rata portion of such demand payment. If we do not, Konkar Agencies is responsible for 100% of such demand payment to the bank. Under the JV Agreements, if the board of directors of Dryone or Drythree approve a capital call for any reason, including such loan demand payment, each shareholder is required to promptly pay its pro-rata portion. If a shareholder does not make its payment, the other shareholder(s) can fund such amount as a loan to such shareholder at an interest rate equal to the bank loan rate plus 3%. Alternatively, upon appropriate notice, a continuing shareholder can promptly purchase the shares in Dryone or Drythree, as the case may be, held by the non-paying/defaulting shareholder at fair market value minus 10%. However, there is no assurance that any default of the Dryone loan or the Drythree loan would be quickly cured and such event could adversely affect our financial condition.

As a result of the above, we may need to seek permission from our lenders in order to engage in some corporate actions. The lenders' interests may be different from ours and we may not be able to obtain our lenders' permission when needed. This may limit our ability to pay dividends, finance our future operations or capital requirements, make acquisitions or pursue business opportunities.

Our ability to comply with covenants and restrictions contained in our current and future loan agreements may also be affected by events beyond our control, including prevailing economic, financial and industry conditions, a change of control of the Company or a reduction in Mr. Valentis' shareholding. If our cash flow is insufficient to service our current and future indebtedness and to meet our other obligations and commitments, we will be required to adopt one or more alternatives, such as reducing or delaying our business activities, acquisitions, investments, capital expenditures, the payment of dividends or the implementation of our other strategies, refinancing or restructuring our debt obligations, selling vessels or other assets, seeking to raise additional debt or equity capital or seeking bankruptcy protection. However, we may not be able to effect any of these remedies or alternatives on a timely basis, on satisfactory terms or at all, which could lead to events of default under these loan agreements, giving the lenders foreclosure rights on our vessels.

Our ability to obtain additional debt financing may be dependent on the performance of our then existing charters and the creditworthiness of our charterers. The actual or perceived credit quality of our charterers, and any defaults by them, may materially affect our ability to obtain the additional capital resources that we will require to purchase additional vessels or may significantly increase our costs of obtaining such capital. Our inability to obtain additional financing at all, or our ability to do so only at a higher than anticipated cost, may materially affect our results of operations and our ability to implement our business strategy.

***Volatility of SOFR and potential changes of the use of SOFR as a benchmark could affect our profitability and financial condition.***

Since 2023, the calculation of interest in our bank loan agreements has been based on the Secured Overnight Financing Rate ("SOFR"). As a result, all of our financing arrangements currently utilize floating rate SOFR as a reference rate which is in line with current market practices. Typically, we fix the interest rates for our SOFR borrowings for a period of one or three months.

An increase in SOFR, including as a result of the interest rate increases effected by the United States Federal Reserve and the United States Federal Reserve's recent hike of U.S. interest rates in response to rising inflation, would affect the amount of interest payable under our existing loan agreements, which, in turn, could have an adverse effect on our profitability and financial condition. Furthermore, as a secured rate backed by government securities, SOFR may be less likely to correlate with the funding costs of financial institutions. As a result, parties may seek to adjust spreads relative to SOFR in underlying contractual arrangements. Therefore, the use of SOFR-based rates may result in interest rates and/or payments that are higher or lower than the rates and payments that were expected when interest was based on LIBOR. Further, lenders have insisted on provisions that entitle the lenders, in their discretion, to replace published SOFR as the base for the interest calculation with an alternative rate based on their cost-of-funds. Alternative reference rates may behave in a similar manner or have other disadvantages in relation to our future indebtedness. If we are required to agree to such a provision in future financing agreements, our lending costs could increase significantly, the discontinuation of SOFR presents a number of risks to our business, including volatility in applicable interest rates among our financing agreements, potential increased borrowing costs for future financing agreements or unavailability of or difficulty in obtaining financing, which could in turn have an adverse effect on our financial condition and results from operations.

In order to manage our exposure to interest rate fluctuations, we have and may from time to time used interest rate derivatives to effectively hedge some of our floating rate debt obligations. For example, on July 16, 2021, Seventhone entered into interest rate cap agreement for notional amount $9.6 million at cap rates of 2%. The interest rate cap had a termination date in July, 2025, but we sold the security on January 25, 2023 for a net cash gain of $0.6 million. No assurance can however be given that the use of these derivative instruments may effectively protect us from adverse interest rate movements. The use of interest rate derivatives may affect our results through mark to market valuation of these derivatives. Also, adverse movements in interest rate derivatives, such as interest rate swaps, may require us to post cash as collateral, which may impact our free cash position.

**Risks Related to Our Common Stock**

***The market price of our common stock has fluctuated widely and the market price of our common stock may fluctuate in the future.***

Our shares of common stock have been listed on the Nasdaq since November 2, 2015 and the market price of our common stock has fluctuated widely since our initial public offering, reaching a high of $26.72 per share in December 2017 and a low of $1.62 per share in January 2022. During 2025, our shares reached a high of $4.40 and low of $2.47 with pricing continuing to be volatile, due to our results of operations and perceived prospects, certain trading metrics including, our market capitalization, number of shares owned by non-affiliated stockholders, average daily trading volume and short-interest, announcement of vessel purchases, the prospects of our competitors and of the shipping industry in general and in particular the product tanker and dry bulk sectors, differences between our actual financial and operating results and those expected by investors and analysts, changes in analysts' recommendations or projections, changes in general valuations for companies in the shipping industry, particularly the product tanker and dry bulk sectors, changes in general economic or market conditions, broader market fluctuations and major geo-political events.

As such, our stock prices may experience rapid and substantial decreases or increases in the foreseeable future that are unrelated to our operating performance or prospects. In addition, the impact of any tariffs imposed by the Trump administration may cause broad stock market and industry fluctuations, with such effects unpredictable at this time. For more information, see "*Our operations inside and outside of the United States expose us to global risks, such as political instability, terrorist or other attacks, piracy, war, international hostilities, global public health concerns and economic sanctions restrictions, which may affect the seaborne transportation industry, and adversely affect our business.*" above. The stock market in general and the market for shipping companies in particular have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility, investors may experience substantial losses on their investment in our common shares.

We cannot assure you that the public market for our common stock will be active and liquid. In addition to the above, the market price for our common shares may be influenced by many other factors, including the following:

● investor reaction to our business strategy as a mixed fleet operator;

● actual or anticipated fluctuations in our periodic results and those of other public companies in the shipping industry;

● changes in market valuations of similar companies and stock market price and volume fluctuations generally;

● speculation in the press or investment community, including on-line newsletters, trading platforms and chat-rooms, about our business, other publicly U.S. traded small Greek shipping companies or the shipping industry generally;

● chartering environment, vessel values and conditions in the shipping industry;

● our continued compliance with the Nasdaq listing standards;

● regulatory or legal developments in the United States and other countries, especially changes in laws or regulations applicable to our industry;

● introduction of new technology by the Company or its competitors;

● commodity prices, including prices of oil and certain refined petroleum products;

● the ability or willingness of OPEC to set and maintain production levels for oil;

● oil and gas production levels by non-OPEC countries;

● variations or fluctuations in our financial results or those of companies that are perceived to be similar to us;

● our ability or inability to raise additional capital and the terms on which we raise it;

● sales by existing stockholders of large numbers of shares of our common stock, including our affiliate Maritime Investors, or as a result of the perception that such sales may occur;

● mergers and strategic alliances in the shipping industry;

● declines in the market prices of stocks generally;

● the general state of the securities market, especially U.S. listed small and micro-cap equities;

● the failure of securities analysts to publish research about us, or shortfalls in our operating results compared to levels forecast by securities analysts;

● lower trading market for our common stock, which is somewhat illiquid;

● share re-purchases by us on our authorized buy-back program;

● additions or departures of key personnel;

● general economic, industry and market conditions; and

● other events or factors, including those resulting from such events, or the prospect of such events, including war, terrorism and other international conflicts, government sanctions, public health issues including health epidemics or pandemics, adverse weather and climate conditions, such as the transit restrictions at the Panama Canal in 2023 and 2024 caused by extended severe drought conditions, could disrupt our operations or result in political or economic instability.

These market and industry factors may materially reduce the market price of shares of our common stock, regardless of our operating performance. Consequently, you may not be able to sell shares of our common stock at prices equal to or greater than those paid by you.

We may issue additional shares of our common stock or other equity securities of equal or senior rank in the future in connection with, among other things, future vessel acquisitions, repayment of outstanding indebtedness or our equity incentive plan, without stockholder approval, in a number of circumstances. Our issuance of additional common stock or other equity securities of equal or senior rank could have the following effects:

● our existing stockholders' proportionate ownership interest in us will decrease;

● the amount of cash available per share, including for payment of dividends in the future, may decrease;

● the relative voting strength of each previously outstanding share of our common stock may be diminished; and

● the market price of our common stock may decline.

Future sales of a large number of shares of our common stock by existing stockholders, including our officers and directors, or perception that such sales could occur, could negatively impact our ability to sell equity in the future and cause the market price of shares of our common stock to decline.

Since the stock price of our common shares has fluctuated in the past, has been recently volatile and may be volatile in the future, investors in our common shares could incur substantial losses. In the past, following periods of volatility in the market, securities class-action litigation has often been instituted against companies. Such litigation, if instituted against us, could result in substantial costs and diversion of management's attention and resources, which could materially and adversely affect our business, financial condition, results of operations and growth prospects. There can be no guarantee that our stock price will remain at current prices.

Additionally, recently, securities of certain companies have experienced significant and extreme volatility in stock price due to short sellers of shares of common shares, known as a "short squeeze". These short squeezes have caused extreme volatility in those companies and in the market and have led to the price per share of those companies to trade at a significantly inflated rate that is disconnected from the underlying value of the company. Many investors who have purchased shares in those companies at an inflated rate face the risk of losing a significant portion of their original investment as the price per share has declined steadily as interest in those stocks has abated. While we have no reason to believe our shares would be the target of a short squeeze, there can be no assurance that we will not be in the future, and you may lose a significant portion or all of your investment if you purchase our shares at a rate that is significantly disconnected from our underlying value.

***Investors may view our owning and operating in two different shipping sectors negatively, which may decrease the trading price of our securities.***

 ****

Since inception, we have operated in the product tanker sector; starting in the fall of 2023 we entered into the dry-bulk sector. Historically, companies that have multiple lines of business or own mixed asset classes have tended to trade at levels that suggest lower valuations than "pure play" companies. In addition, two of our bulkers are owned by joint-ventures which are consolidated within our financial statements reflecting the operations, assets, debt and minority interest associated with such vessels. Accordingly, investors may view our stock as relatively less attractive than shares of pure play companies with simpler corporate and operating structures, which could materially and adversely affect the trading price of our securities.

***We are incorporated in the Marshall Islands, which does not have a well-developed body of corporate or bankruptcy law and, as a result, stockholders may have fewer rights and protections under Marshall Islands law than under a U.S. jurisdiction.***

Our corporate affairs are governed by our Articles of Incorporation, Bylaws and the Marshall Islands Business Corporations Act, or the BCA. The provisions of the BCA resemble provisions of the corporation laws of a number of states in the United States. However, there have been few judicial cases in the Republic of the Marshall Islands interpreting the BCA. The rights and fiduciary responsibilities of directors under the laws of the Republic of the Marshall Islands are not as clearly established as the rights and fiduciary responsibilities of directors under statutes or judicial precedent in existence in certain U.S. jurisdictions. Stockholder rights may differ as well. While the BCA does specifically incorporate the non-statutory law, or judicial case law, of the State of Delaware and other states with substantially similar legislative provisions, our public stockholders may have more difficulty in protecting their interests in the face of actions by management, directors or significant stockholders than would stockholders of a corporation incorporated in a U.S. jurisdiction. Additionally, the Republic of the Marshall Islands does not have a legal provision for bankruptcy or a general statutory mechanism for insolvency proceedings. As such, in the event of a future insolvency or bankruptcy, our stockholders and creditors may experience delays in their ability to recover their claims after any such insolvency or bankruptcy. Further, in the event of any bankruptcy, insolvency, liquidation, dissolution, reorganization or similar proceeding involving us or any of our subsidiaries, bankruptcy laws other than those of the United States could apply. If we become a debtor under U.S. bankruptcy law, bankruptcy courts in the United States may seek to assert jurisdiction over all of our assets, wherever located, including property situated in other countries. There can be no assurance, however, that we would become a debtor in the United States, or that a U.S. bankruptcy court would be entitled to, or accept, jurisdiction over such a bankruptcy case, or that courts in other countries that have jurisdiction over us and our operations would recognize a U.S. bankruptcy court's jurisdiction if any other bankruptcy court would determine it had jurisdiction. The Marshall Islands has passed an act implementing the U.N. Commission on Internal Trade Law, or UNCITRAL and Model Law on Cross-Border Insolvency, or the Model Law. The adoption of the Model Law is intended to implement effective mechanisms for dealing with issues related to cross-border insolvency proceedings and encourages cooperation and coordination between jurisdictions. Notably, the Model Law does not alter the substantive insolvency laws of any jurisdiction and does not create a bankruptcy code in the Marshall Islands. Instead, the Act allows for the recognition by the Marshall Islands of foreign insolvency proceedings, the provision of foreign creditors with access to courts in the Marshall Islands, and the cooperation with foreign courts.

Furthermore, many of our directors and executive officers are not residents of the United States. As a result, you may have difficulty serving legal process within the United States upon us. You may also have difficulty enforcing, both in and outside the United States, judgments you may obtain in U.S. courts against us in any action, including actions based upon the civil liability provisions of U.S. federal or state securities laws. Furthermore, there is substantial doubt that the courts of the Marshall Islands or of the non-US jurisdictions in which our offices are located would enter judgments in original actions brought in those courts predicated on U.S. federal or state securities laws.

***As a Marshall Islands corporation and with most of our subsidiaries being Marshall Islands entities and also having subsidiaries in other offshore jurisdictions, our operations may be subject to economic substance requirements, which could impact our business.***

We are a Marshall Islands corporation and most of our subsidiaries are Marshall Islands entities. The Marshall Islands has enacted economic substance laws and regulations with which we may be obligated to comply. We believe that we and our subsidiaries are compliant with the Marshall Islands economic substance requirements. However, if there were a change in the requirements or interpretation thereof, or if there were an unexpected change to our operations, any such change could result in noncompliance with the economic substance legislation and related fines or other penalties, increased monitoring and audits, and dissolution of the non-compliant entity, which could have an adverse effect on our business, financial condition or operating results.

The E.U. Finance ministers rate jurisdictions for tax rates and tax transparency, governance and real economic activity. Countries that are viewed by such finance ministers as not adequately cooperating, including by not implementing sufficient standards in respect of the foregoing, may be put on a "grey list" or a "blacklist". Effective as of October 17, 2023 the Marshall Islands has been designated as a cooperating jurisdiction for tax purposes. If the Marshall Islands is added to the list of non-cooperative jurisdictions in the future and sanctions or other financial, tax or regulatory measures were applied by European Member States to countries on the list or further economic substance requirements were imposed by the Marshall Islands, our business could be harmed.

***We are a holding company, and we depend on the ability of our subsidiaries to distribute funds to us in order to satisfy our financial and other obligations.***

We are a holding company and have no significant assets other than the equity interests in our subsidiaries. Our subsidiaries wholly own (or partially own with respect to the *Konkar Ormi* and *Konkar Venture* joint ventures) all of our existing vessels, and subsidiaries we form in the future will own any other vessels we may acquire in the future. All payments under our charters will be made to our subsidiaries. As a result, our ability to meet our financial and other obligations, and to possibly pay dividends in the future, will depend on the performance of our subsidiaries and their ability to distribute funds to us. The ability of a subsidiary to make these distributions could be affected by a claim or other action by a third party, including a creditor, by the terms of our loan agreements, any financing agreement we may enter into in the future, or by Marshall Islands law, which regulates the payment of dividends by our companies. There were no material restrictions on the ability of our subsidiaries to distribute dividends or other funds to us as of December 31, 2025. The Alpha Bank loan agreements covering three of our subsidiaries, prohibit paying any dividends to us unless the ratio of the total liabilities, exclusive of the Amended and Restated Promissory Note, to the market value adjusted total assets (total assets adjusted to reflect the market value of all our vessels) of us and our subsidiaries as a group is 75% or less. As of December 31, 2025, the ratio of total liabilities over the market value of our adjusted total assets (calculated in accordance with the Alpha Bank Facilities) was 40%. If we or the borrowing subsidiaries do not satisfy the 75% requirement or if we or a subsidiary(s) breach a covenant in our loan agreements or any financing agreement we may enter into in the future, such subsidiary may be restricted from paying dividends. If we are unable to obtain funds from our subsidiaries, we will not be able to fund our liquidity needs or pay dividends in the future unless we obtain funds from other sources, which we may not be able to do.

***We do not intend to pay common stock cash dividends in the near future and cannot assure you that we will ever pay common stock dividends.***

We do not intend to pay cash dividends on our common stock in the near future, and we will make dividend payments to our stockholders in the future only if our board of directors, our Board of Directors, acting in its sole discretion, determines that such payments would be in our best interest and in compliance with relevant legal, fiduciary and contractual requirements. The payment of any common stock dividends is not guaranteed or assured, and, if paid at all in the future, may be discontinued at any time at the discretion of the Board of Directors.

Our ability to pay common stock cash dividends will in any event be subject to factors beyond our control, including the following, among others:

● our current cash position;

● our earnings, financial condition and anticipated cash requirements;

● the terms of any current or future credit facilities or loan agreements;

● the loss of a vessel or the acquisition of one or more vessels;

● required capital expenditures and special surveys;

● increased or unanticipated expenses;

● future issuances of securities;

● disputes or legal actions; and

● the requirements of the laws of the Marshall Islands, which limit payments of common stock dividends if we are, or could become, insolvent and generally prohibit the payment of common stock dividends other than from surplus (retaining earnings and the excess of consideration received for the sale of shares above the par value of the shares).

The payment of common stock dividends would not be permitted if we are not in compliance with our loan agreements or in default of such agreements.

***If our common stock does not meet Nasdaq's minimum share price requirement, and if we cannot cure such deficiency within the prescribed timeframe, our common stock could be delisted.***

Under the rules of Nasdaq, listed companies are required to maintain a share price of at least $1.00 per share. Under new rules recently implemented by Nasdaq and approved by the SEC in October 2024, if a company's share price declines below $1.00 for a period of 30 consecutive trading days, there will be an immediate initiation of delisting procedures if the company fails to regain compliance with the minimum bid price requirement following the second compliance period granted under Nasdaq's listing rules, with a maximum of 360 days to regain compliance. In addition, a company that does not meet the minimum bid price requirement and has conducted a reverse stock split, at any ratio, in the prior year will also be subject to immediate initiation of delisting procedures. The new rules also eliminate a company's ability to trade while appealing a delisting determination. We have not completed a reverse stock split within the past year. However, if the price of our common stock closes below $1.00 for 30 consecutive days, and if we cannot cure that deficiency within the required timeframe, or if we complete reverse stock split in the future and thereafter lose compliance with the minimum price requirement, then Nasdaq could initiate delisting procedures for our common stock and our stock will not be tradable during our appeal of a delisting determination.

On June 16, 2021, Nasdaq notified us of our noncompliance with the minimum bid price of $1.00 over the previous 30 consecutive business days as required by Nasdaq's listing rules. Following this deficiency notice, the Company was not in compliance with the minimum bid price for the second half of 2021. In mid- December 2021, Nasdaq granted us an additional 180-day extension until June 13, 2022 to regain compliance. Following the Company's Annual Shareholder Meeting of May 11, 2022, the Board of Directors of the Company approved the implementation of a reverse-split of our common shares at the ratio of one share for four existing common shares, effective May 13, 2022, or the Reverse Stock Split. After the Reverse Stock Split, we had 10,613,424 common shares, or the common shares, outstanding and trading continued on the Nasdaq Capital Markets under its existing symbol, "PXS". The Reverse Stock Split was undertaken with the objective of meeting the minimum $1.00 per share requirement for maintaining the listing of the common shares on the Nasdaq Capital Market. All the share and per share information for all periods presented herein has been adjusted to reflect the one for four Reverse Stock Split.

A continued decline in the closing price of our common shares on Nasdaq could result in suspension or delisting procedures in respect of our common shares. The commencement of suspension or delisting procedures by an exchange remains, at all times, at the discretion of such exchange and would be publicly announced by the exchange. If a suspension or delisting were to occur, there would be significantly less liquidity in the suspended or delisted securities. In addition, our ability to raise additional necessary capital through equity or debt financing would be greatly impaired. Furthermore, with respect to any suspended or delisted common shares, we would expect decreases in institutional and other investor demand, analyst coverage, market making activity and information available concerning trading prices and volume, and fewer broker-dealers would be willing to execute trades with respect to such common shares. A suspension or delisting would likely decrease the attractiveness of our common shares as well as our other publicly-traded equity linked securities to investors and constitutes a breach under certain of our credit agreements and would cause the trading volume of our common shares to decline, which could result in a further decline in the market price of our common shares.

Finally, if the volatility in the market continues or worsens, it could have a further adverse effect on the market price of our common shares, regardless of our operating performance.

Furthermore, as a foreign private issuer, our corporate governance practices are exempt from certain Nasdaq corporate governance requirements applicable to U.S. domestic companies. As a result, our corporate governance practices may not have the same protections afforded to stockholders of companies that are subject to all of the Nasdaq corporate governance requirements.

We believe that our corporate governance practices are in compliance with the applicable Nasdaq listing rules and are not prohibited by the laws of the Republic of the Marshall Islands.

***Anti-takeover provisions in our Articles of Incorporation and Bylaws could make it difficult for our stockholders to replace our Board of Directors or could have the effect of discouraging an acquisition, which could adversely affect the market price of our common stock.***

Several provisions of our Articles of Incorporation and Bylaws make it difficult for our stockholders to change the composition of our Board of Directors in any one year. In addition, the same provisions may discourage, delay or prevent a merger or acquisition that stockholders may consider favorable. These provisions include:

● providing for a classified Board of Directors with staggered, three year terms;

● authorizing the Board of Directors to issue so-called "blank check" preferred stock without stockholder approval;

● prohibiting cumulative voting in the election of directors;

● authorizing the removal of directors only for cause and only upon the affirmative vote of the holders of two-thirds of the outstanding shares of our common stock cast at an annual meeting of stockholders;

● prohibiting stockholder action by written consent unless consent is signed by all stockholders entitled to vote on the action;

● limiting the persons who may call special meetings of stockholders;

● establishing advance notice requirements for nominations for election to our Board of Directors or for proposing matters that can be acted on by stockholders at stockholder meetings; and

● restricting business combinations with interested stockholders.

These anti-takeover provisions could substantially impede the ability of public stockholders to benefit from a change in control and, as a result, may adversely affect the market price of our common stock and your ability to realize any potential change of control premium.

***Any failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, prospects, liquidity, results of operations and financial condition.***

We are subject to the reporting requirements of the Securities Exchange Act and the other rules and regulations of the SEC, including the Sarbanes-Oxley Act of 2002, or Sarbanes-Oxley. Sarbanes-Oxley requires, among other things, that we maintain and periodically evaluate our internal control over financial reporting as well as disclosure controls and procedures. Section 404(a) of the Sarbanes-Oxley Act requires that our senior management team assess and report annually on the effectiveness of our internal controls over financial reporting and identify any material weaknesses in our internal controls over financial reporting. Compliance with Section 404(a) requires substantial accounting expenses and significant management efforts. The costs of compliance with the foregoing requirement may have a material adverse effect on our future performance, results of operations, cash flows and financial condition.

Any failure to maintain effective internal control over financial reporting could have a material adverse effect on our business, prospects, liquidity, results of operations and financial condition. While we did not identify any material weaknesses or significant deficiencies in our internal controls under the current assessment for the year ended December 31, 2025, we cannot be certain at this time that our internal controls will be considered effective in future assessments and that our independent registered public accounting firm would reach a similar conclusion. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our Class A common shares from Nasdaq New York and/or Nasdaq Copenhagen, fines, sanctions and other regulatory

**Risks Related to Our Taxation**

***We may have to pay tax on U.S. source income, which would reduce our earnings and cash flow.***

Under the Internal Revenue Code of 1986, as amended, or the Code, 50% of the gross shipping income of a vessel-owning or chartering corporation, or shipping income, that is attributable to voyages that either begin or end in the United States is characterized as "US-source shipping income" and such income is generally subject to a 4% U.S. federal income tax (on a gross basis) unless that corporation qualifies for exemption from tax under Section 883 of the Code or under an applicable U.S. income tax treaty.

During our 2025 taxable year and as of the date of this Annual Report, we and our ship owning subsidiaries are organized under the laws of the Republic of the Marshall Islands. If we or our subsidiaries were not entitled to exemption under Section 883 of the Code for any taxable year, we or our subsidiaries could be subject for such year to an effective 2% United States federal income tax on the shipping income we or they derive during such year which is attributable to the transport of cargoes to or from the United States. The imposition of this tax would have a negative effect on our business and would reduce our earnings and cash flow.

***Various tax rules may adversely impact the Company's business, results of operations and financial condition.***

The Company may be subject to taxes in the United States and other jurisdictions in which it operates. If the Internal Revenue Service, or the IRS, or other taxing authorities disagree with the positions the Company has taken on the tax returns of its subsidiaries, the Company could face additional tax liability, including interest and penalties. If material, payment of such additional amounts upon final adjudication of any disputes could have a material impact on the Company's business, results of operations and financial condition. In addition, complying with new tax rules, laws or regulations could impact the Company's financial condition, and increases to federal or state statutory tax rates and other changes in tax laws, rules or regulations may increase the Company's effective tax rate. Any increase in the Company's effective tax rate could have a material adverse impact on our business, results of operations and financial condition.

***If U.S. tax authorities were to treat us or one or more of our subsidiaries as a "passive foreign investment company," there could be adverse tax consequences to U.S. holders.***

If the IRS were to find that we are or have been a PFIC for any taxable year, our U.S. shareholders will face adverse U.S. federal income tax consequences. Under the PFIC rules, unless those shareholders make an election available under United States Internal Revenue Code of 1986, as amended, or the Code, such shareholders would be liable to pay U.S. federal income tax at the then prevailing income tax rates on ordinary income plus interest upon excess distributions and upon any gain from the disposition of our ordinary shares, as if the excess distribution or gain had been recognized ratably over the shareholder's holding period of our ordinary shares. For a more complete discussion of the U.S. Federal income tax consequences of passive foreign investment company characterization, see "Item 10. Additional Information – E. Taxation – U.S. Federal Income Taxation of U.S. Holders."

Based on our current and projected operations, we do not believe that we (or any of our subsidiaries) were a PFIC in our 2025 taxable year, and we do not expect to become (or any of our subsidiaries to become) a PFIC with respect to the 2026 or any later taxable year. In this regard, we intend to treat the gross income we derive or are deemed to derive from our time chartering activities as services income, rather than rental income. Accordingly, we believe that our income from our time chartering activities does not constitute "passive income," and the assets that we own and operate in connection with the production of that income do not constitute "passive assets." There is, however, no direct legal authority under the PFIC rules addressing our method of operation. Accordingly, no assurance can be given that the IRS or a court of law will accept our position, and there is a risk that the IRS or a court of law could determine that we are (or were in a prior taxable year) a PFIC. Moreover, no assurance can be given that we would not constitute a PFIC for any taxable year if there were to be changes in the nature and extent of our operations.

***If U.S. tax authorities were to treat us as a "controlled foreign corporation," there could be adverse U.S. federal income tax consequences to certain U.S. investors.***

If more than 50% of the voting power or value of our shares is treated as owned by U.S. citizens or residents, U.S. corporations or partnerships, or U.S. estates or trusts (as defined for U.S. federal income tax purposes), each of which owned at least 10% of our voting power or value, each, a "U.S. Stockholder", then we and one or more of our subsidiaries will be a controlled foreign corporation, or CFC, for U.S. federal income tax purposes. If we were treated as a CFC for any taxable year, our U.S. Stockholders may face adverse U.S. federal income tax consequences and information reporting obligations. See "Item 10. Additional Information – E. Taxation – U.S. Federal Income Taxation of U.S. Holders."

**ITEM 4. INFORMATION ON THE COMPANY**

**A. History and Development of the Company**

The legal and commercial name of the Company is Pyxis Tankers Inc. The Company is an international maritime transportation holding company that was incorporated under the laws of the BCA in the Marshall Islands on March 23, 2015, and maintains its principal place of business at the offices of our ship manager, Maritime, at 59 K. Karamanli, Maroussi 15125, Athens, Greece. The telephone number at that address is +30 210 638 0200. The registered agent of the Company in the Marshall Islands is The Trust Company of the Marshall Islands, Inc. located at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960. The website of the Company is www.pyxistankers.com. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of the SEC's internet site is www.sec.gov. None of the information contained on those websites is incorporated into or forms a part of this Annual Report.

As of March 23, 2026, the Company owns the vessels in its current fleet through six separate subsidiaries, four of which are wholly-owned and two 60% owned, all incorporated in the Marshall Islands. The Company acquired certain vessel-owning subsidiaries from affiliates of its founder and Chief Executive Officer in connection with its merger with LookSmart in October 2015, one of which is part of the current fleet. Pursuant to the foregoing, LookSmart merged with and into Maritime Technologies Corp. and the Company commenced trading on the Nasdaq Capital Market under the symbol "PXS". As part of the merger transactions, LookSmart transferred all of its then existing business, assets and liabilities to its wholly-owned subsidiary, which was spun off to the LookSmart stockholders.

The Company entered the dry-bulk market in September 2023 through a newly-formed joint venture, through which it acquired 60% ownership of a modern eco-Ultramax carrier, *Konkar Ormi*. In February 2024, the Company acquired its second dry-bulk vessel with 100% ownership of a modern eco-Kamsarmax, *Konkar Asteri* and in June 2024, the Company purchased its third dry-bulk vessel, through a new joint venture through which we acquired 60% ownership of a modern eco- Kamsarmax carrier, *Konkar Venture*.

**Recent and Other Developments**

***Amendments of Three Loan Agreements.***

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On January 26, 2026, the Company completed amendments to the existing secured loans with Piraeus Bank S.A. for the Tenthone Corp., the *Pyxis Karteria*, the Dryone Corp., the *Konkar Ormi*, and the Drythree Corp., the *Konkar Venture* relating to outstanding principal borrowings of $42.1 million in the aggregate. The maturity of each loan was extended by six months, with an interest rate reduction to Term SOFR + 1.80%, representing a weighted average margin savings of 58 basis points from the prior loan agreements. All other terms and conditions remain in full force and effect.

***Uncertainties caused by certain geopolitical conflicts.***

The ongoing military conflict in Ukraine has had a significant direct and indirect impact on the trade of refined petroleum products and to a lesser extent, certain minor bulk commodities such as grains. This conflict has resulted in the U.S., U.K., and the E.U., among other countries, implementing numerous sanctions and executive orders against citizens, entities, and activities connected to Russia. Some of these sanctions and executive orders target the Russian energy sector, including a prohibition on the import of oil from Russia to the U.S. or the U.K, and the EU's ban on Russian crude oil and petroleum products which took effect in December 2022 and February 2023, respectively. In January 2026, the E.U. agreed to implement a phased ban on imports of any refined petroleum products derived from Russian crude, and in 2027 the ban will extend to all Russian energy imports. The Company cannot foresee what other sanctions or executive orders may arise that affect the trade of petroleum products. Furthermore, the conflict and ensuing international response has disrupted the supply of Russian oil to the global market, and as a result, the price of oil and petroleum products has experienced significant volatility. In addition, the recent armed conflict between the U.S. and Israel, and Iran has caused the indefinite de facto closure of the Strait of Hormuz and further disrupted trade routes in the Red Sea and the Gulf of Aden, which have been affected by armed attacks on ships traveling in those regions. The continued disruption of such critical trade routes could have significant impacts in the Middle East region and on the global oil markets. Currently, the Company's charter contracts, or our operations, have not been negatively affected by the events of the Ukraine War, nor the Middle East, but trade routes have been disrupted. It is possible that in the future third parties with whom the Company has or will have charter contracts may be impacted by such events. The Company cannot predict what effect the higher price of oil, refined petroleum products or certain dry-bulk commodities will have on demand, and it is possible that the conflicts in the Ukraine, the Middle East and elsewhere could adversely affect the Company's financial condition, results of operations, and future performance. See "Item 3. Key Information – D. Risk Factors – *Our operations inside and outside of the United States expose us to global risks, such as political instability, terrorist or other attacks, piracy, war, international hostilities, global public health concerns and economic sanctions restrictions, which may affect the seaborne transportation industry, and adversely affect our business.*"

**B. Business Overview**

**Overview**

We are an international maritime transportation company focused on mid-sized eco-vessels for the product tanker and dry-bulk sectors. As of March 23, 2026, our fleet is comprised of three double hull product tankers and three dry-bulk carriers, which are employed under short- to medium-term time charters. As of March 23, 2026, our MR fleet had an average age of 11.6 years compared to an industry average of approximately 14 years, with a total cargo carrying capacity of 148,592 dwt. We acquired one of these MR vessels in 2015 and one tanker in December 2021 from affiliates of our founder and Chief Executive Officer, Mr. Eddie Valentis. One tanker was acquired from an unaffiliated third party in July 2021. All of our vessels in the product tanker fleet are eco-efficient MR tankers, each of which has IMO certifications and is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel and fuel oil, as well as other liquid bulk items, such as vegetable oils and organic chemicals. As part of a strategic diversification strategy, in 2023, we entered the dry-bulk sector which has historically been relatively countercyclical to product tankers. In September 2023, through a newly-formed joint venture, we acquired 60% ownership of a modern eco-Ultramax carrier, *Konkar Ormi*, fitted with a scrubber. *Konkar Ormi* was delivered on September 14, 2023 and her initial charter commenced on October 5, 2023. On February 15, 2024, we acquired our second dry-bulk vessel, *Konkar Asteri*, with 100% ownership of a modern eco-Kamsarmax, also fitted with a scrubber. On June 28, 2024, we acquired our third dry-bulk vessel, *Konkar Venture*, through a newly-formed joint venture, with 60% ownership of a modern eco-Kamsarmax carrier. The average age of our dry bulk carriers is 10.3 years as of March 23, 2026.

Our principal objective is to own and operate our fleet in a manner that will enable us to benefit from short- and long-term trends that we expect in the product tanker and dry-bulk sectors to maximize our revenues and smooth volatility. We intend to expand our fleet through selective acquisitions of modern eco-product tankers, primarily MRs, and mid-sized eco-dry-bulk carriers from 46,000- 84,000 dwt and to employ our vessels through time charters to creditworthy customers and on the spot market. We intend to continually evaluate the markets in which we operate and, based upon our view of market conditions, adjust our mix of vessel employment by counterparty and stagger our charter expirations. We may also expand into other sectors of our industry. While we prefer to acquire 100% ownership of vessels, we may develop additional joint ventures. In addition, we may choose to opportunistically direct asset sales or acquisitions when conditions are appropriate. On March 23, 2023 and December 15, 2023, the MRs *Pyxis Malou* and *Pyxis Epsilon* were sold to different third parties.

**The Fleet**

The following table provides summary information concerning our fleet as of March 23, 2026:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Vessel Name** | **Shipyard\*** | **Vessel type** | **Carrying Capacity**<br> (dwt) | **Year Built** | **Type of charter** | **Charter *<sup>(1)</sup>* Rate**<br> **($ per day)** | **Anticipated Earliest**<br> **Redelivery**<br> **Date** |
| **<u>Tanker fleet</u>** |  |  |  |  |  |  |  |
| *Pyxis Lamda <sup>(2)</sup>* | SPP / S. Korea | MR2 | 50145 | 2017 | Time | 23000 | Sep 2026 |
| *Pyxis Theta <sup>(3)</sup>* | SPP / S. Korea | MR2 | 51795 | 2013 | Time | 35000 | Jul 2027 |
| *Pyxis Karteria <sup>(4)</sup>* | Hyundai / S. Korea | MR2 | 46652 | 2013 | Time | 19500 | Aug 2026 |
|  |  |  | **148592** |  |  |  |  |
| **<u>Dry-bulk fleet</u>** |  |  |  |  |  |  |  |
| *Konkar Ormi <sup>(5)</sup>* | SKD / Japan | Ultramax | 63520 | 2016 | Time | 16000 | Apr 2026 |
| *Konkar Asteri <sup>(6)</sup>* | JNYS / China | Kamsarmax | 82013 | 2015 | Time | 20500 | May 2026 |
| *Konkar Venture <sup>(7)</sup>* | JNYS / China | Kamsarmax | 82099 | 2015 | Time | 16800 | Apr 2026 |
|  |  |  | **227632** |  |  |  |  |

---

*1) These tables present gross rates in U.S.$ and do not reflect any commissions payable.*

*2) "Pyxis Lamda" is fixed on a time charter for 12 months -40/+60 days, at $23,000 per day.*

*3) "Pyxis Theta" is fixed on a time charter for 18 months -30/+30 days, at $35,000 per day for the first two months and $23,750 thereafter.*

*4) "Pyxis Karteria" is fixed on a time charter for 12 months -30/+60 days, at $19,500 per day.*

*5) "Konkar Ormi" is fixed on a time charter for 55–65 days, at $16,000 per day.*

*6) "Konkar Asteri" is fixed on a time charter for 55–65 days, at $20,500 per day.*

*7) "Konkar Venture" is fixed on a time charter for 90–100 days, at $16,800 per day.*

 

*\* SPP: is SPP Shipbuilding Co., Ltd.*

*Hyundai: is Hyundai Heavy Industries*

*JNYS: is Jiangsu New Yangzi Shipbuilding Co Ltd*

 

**Our Charters**

We generate revenues by charging customers a fee, typically called charter hire, for the use of our vessels. Customers utilize the product tankers to transport their refined petroleum products and other liquid bulk items as well as our dry-bulk vessels to transport a broad range of dry-bulk commodities. Customers have historically entered into the following types of contractual arrangements with us or our affiliates:

● Time charters: A time charter is a contract for the use of a vessel for a fixed period of time at a specified daily rate. Under a time charter, the vessel owner provides crewing and other services related to the vessel's operation, the cost of which is included in the daily rate. The customer, also called a charterer, is responsible for substantially all of the vessel's voyage expenses, which are costs related to a particular voyage including the cost for bunkers and any port fees, cargo loading and unloading expenses, canal tolls and agency fees. In addition, a time charter may include a profit share component, which would enable us to participate in increased profits in the event rates increase above the specified daily rate.

● Spot voyage charters: A spot voyage charter is a contract to carry a specific cargo for a single voyage. Spot voyage charters for voyages involve the carriage of a specific amount and type of cargo on a load-port to discharge-port basis, subject to various cargo handling terms, and the vessel owner is paid on a per-ton basis. Under a spot voyage charter, the vessel owner is responsible for the payment of all expenses including voyage expenses, such as port, canal and bunker costs.

The table below sets forth the basic distinctions between these types of charters:

---

| | | |
|:---|:---|:---|
|  | Time Charter | Spot Voyage Charters |
| Typical contract length | Typically, two months - five<br> years or more | Indefinite but typically less than<br> three months |
| Basis on which charter rate is paid | Per day | Per ton, typically |
| Voyage expenses | Charterer pays | We pay |
| Vessel operating costs (1) | We pay | We pay |
| Off-hire (2) | We pay | We pay |

---

(1) We
 are responsible for vessel operating costs, which include crewing, repairs and maintenance, insurance, stores, lube oils, communication
 expenses and the commercial and technical management fees payable to our ship managers. The largest components of our vessel operating
 costs are generally crews and repairs and maintenance.

(2) "Off-hire"
 refers to the time a vessel is not available for service due primarily to scheduled and unscheduled repairs or dry-docking.

Under both time and spot voyage charters on the vessels in the fleet, we are responsible for the technical management of the vessel and for maintaining the vessel, periodic dry-docking, cleaning and painting and performing work required by regulations. We have entered into a contract with Maritime to provide commercial, sale and purchase, and other operations and maintenance services to our MRs and with Konkar Agencies for the dry-bulk carriers. Our vessel-owning subsidiaries have contracted with ITM, a third party technical manager and subsidiary of V. Ships Limited, to provide crewing and technical management to the MRs and with Konkar Agencies for the dry-bulk vessels. Please see "– Management of Ship Operations, Administration and Safety" below. We intend to continue to outsource the day-to-day crewing and technical management of our fleet to ITM and Konkar. We believe that both ITM and Konkar Agencies have strong reputations for providing high quality technical vessel services, including expertise in efficiently managing tankers and dry-bulk carriers, respectively.

In the future, we may also place one or more of our vessels in pooling arrangements or on bareboat charters:

● *Pooling Arrangements.* In pooling arrangements, vessels are managed by a single pool manager who markets a number of vessels as a single, cohesive fleet and collects, or pools, their net earnings prior to distributing them to the individual owners, typically under a pre-arranged weighting system that recognizes a vessel's earnings capacity based on various factors. The vessel owner also pays commissions on pooling arrangements of at least 1.25% of the earnings, depending on vessel rating, and daily fee due the pool manager.

● *Bareboat Charters.* A bareboat charter is a contract pursuant to which the vessel owner provides the vessel to the charterer for a fixed period of time at a specified daily rate, and the charterer generally provides for all of the vessel's operating expenses in addition to the voyage costs and assumes all risk of operation. A bareboat charterer will generally be responsible for operating and maintaining the vessel and will bear all costs and expenses with respect to the vessel, including dry-dockings and insurance.

**Our Competitive Strengths**

We believe that we possess a number of competitive strengths relative to other product tanker and dry-bulk shipping companies, including:

● **High Quality Fleet of Modern Mid-Sized Eco-Efficient Vessels.** As of March 23, 2026, our product tankers had an average age of 11.6 years, compared to the average for the MR2 global fleet of approximately 14 years. Our three MR tankers were built in South Korean shipyards. Our bulkers have an average age of 10.3 years compared to 12.6 years for the two vessel classes. Our two "sister-ship" Kamsarmax were built in China at the same yard and year as well as our Ultramax was built in Japan. All of our vessels are considered modern mid-sized eco-efficient units with Ballast Water Treatment System, or BWTS, installed providing lower emissions and fuel consumption than older standard vessels. Two of our bulkers are equipped with scrubbers (and none of our tankers are equipped with scrubbers). We believe our vessels provide our customers with high quality and reliable transportation of cargos at competitive operating costs and operational flexibility. Owning a modern fleet reduces off-hire time, repairs and maintenance costs, including dry-docking expenses, and improves safety and environmental performance. Also, lenders are attracted to modern, well- maintained vessels, which can result in more reasonable terms for secured loans.

● **Established Relationships with Charterers**. We have developed long-standing relationships with a number of leading tanker charterers, including major integrated and national oil companies, refiners, international trading firms and large vessel operators, which we believe will benefit us in the future as we continue to grow our business. Our tanker customers have included, among others, Trafigura, Mansel (subsidiary of Vitol), Shell, PMI (a subsidiary of Pemex), ST Shipping (an affiliate of Glencore), Clearlake (a subsidiary of Gunvor) and Citgo. Given our recent but expanding presence into the dry-bulk sector, our historical customer based is limited. Konkar Agencies, the manager of our dry-bulk vessels, has many established customer relationships, including Norden, Bunge, Oldendorf, ADM Intermare and Engelhart. We strive to meet high standards of operating performance, achieve cost-efficient operations, reliability and safety in all of our operations and maintain long-term relationships with our customers. In concert with our technical manager, we constantly monitor and report the environmental impact of our vessels to address increasing industry-wide emissions concerns. We believe that our charterers value our fleet of modern, quality vessels as well as our management team's industry experience. These attributes should allow us to continue to charter our vessels and expand our fleet.

● **Competitive Cost Structure.** Even though we currently operate a relatively small number of vessels, we believe we are relatively cost competitive as compared to other companies in our industry. This is a result of our fleet profile, our experienced technical and commercial managers as well as the hands-on approach and substantial equity ownership in the Company by our management team. Moreover, a constant focus on operational improvements is a key component of our corporate culture. Our technical manager, ITM, manages 54 tankers, including our vessels as of February, 2026. Our technical and commercial management fees currently, effective January 1, 2026, aggregate to $401 per day per MR and $896 per day for our bulkers, which are competitive within our sectors. Our collaborative approach between our management team and our external managers creates a platform that we believe can deliver excellent operational results at competitive costs and positions us for further growth. Total daily operational cost is a non-U.S. GAAP measure.

● **Well-Positioned to Capitalize on Improving Rates.** We believe our current fleet of product tankers and dry-bulk carriers are positioned to capitalize when spot and time charter rates improve. As of March 23, 2026, we had all six vessels contracted under short-term time charter. As of March 23, 2026, 41% of our fleet's remaining available days in 2026 were contracted, exclusive of charterers' options. For any additional vessels we may acquire, we expect to continue to employ our mixed chartering strategy.

● **Experienced Management Team**. Our three senior officers, led by our Chairman and Chief Executive Officer, Mr. Valentis, have combined over 100 years of industry experience in shipping, including vessel ownership, acquisitions, divestitures, new buildings, dry-dockings and vessel modifications, on-board operations, chartering, technical supervision, corporate management, legal/regulatory, accounting and finance. As of March 23, 2026, our senior management team owned over 59% of the Company's outstanding common shares, creating a major financial incentive for the benefit of all of our stakeholders.

**Our Business Strategy**

Our principal objective is to own, operate and grow our fleet in a manner that will enable us to benefit from short- and long-term trends that we expect in the tanker sector. Our strategy to achieve this objective includes the following:

● **Operate Diversified Fleet of Modern Mid-Sized Eco-Efficient Product Tankers & Dry-bulk Carriers.** We intend to maintain a high quality fleet that meets rigorous industry standards and our charterers' requirements with vessels that are built no later than 2013. We consider our fleet to be superior based on the specifications to which our vessels were built and the reputation of each of the shipyards that built the vessels. We believe that our customers prefer the better reliability, fewer off-hire days and greater operating efficiency of modern, high quality vessels. All of our vessels are eco-efficient designed which offer the benefits of lower bunker fuel consumption and reduced emissions. In addition, two of our dry-bulk carriers are fitted with scrubbers which clean exhaust gas while running on cheaper HSFO bunkers, thus providing us a competitive advantage to many older non-scrubber bulkers. We also intend to maintain the quality of our fleet through ITM and Konkar Agencies' comprehensive planned and preventive maintenance programs.

● **Opportunistically Grow the Fleet in a Disciplined Way.** Given healthy market conditions over the past few years, asset prices remain relatively high in both of our sectors, but started to soften slightly since 2024. Consequently, we plan to prudently allocate capital to selectively expand our fleet through acquisitions of modern second-hand vessels and other transactions that are attractive to shareholders. We believe that demand for tankers will expand as trade routes for liquid cargoes continue to evolve to developed markets, such as those in the U.S. and Europe, and as changes in refinery production patterns in developing countries such as China and India, as well as in the Middle East, contribute to increases in the transportation of refined petroleum products. Further, certain major geopolitical events, such as the Ukraine War and the Middle East conflicts, as well as unusual weather disturbances, such as, the severe drought which effected transits through the Panama Canal during 2023-24, have increased vessel ton-miles within our sectors which led to improvement in chartering activity. We believe that our fleet of MRs, among the workhorse of the industry, will enable us to serve our customers across the major tanker trade routes and to continue to develop a global presence. We have strong relationships with reputable owners, charterers, ship brokers, banks and shipyards, which we believe will assist us in identifying attractive vessel acquisition opportunities. We intend to focus primarily on the acquisition of IMO II and III class eco- MR tankers built in 2016 or younger, which have been built in Tier 1 Asian shipyards and have modern bunker efficient designs given demands for lower bunker consumption and concerns about environmental emissions. Additionally, we expect to continue our expansion into the dry-bulk sector by looking to acquire more modern mid-sized eco-carriers from 46- 84 K dwt. Carriers of this size are considered the workhorse for the dry-bulk sector due to the operating flexibility, breathe of ports, loading/discharge capabilities and diversity of cargos. We will also consider acquisitions of newbuild vessels (also called re-sales), which typically have lower operating costs and emissions, and of small fleets of existing vessels when such acquisitions are accretive to stockholders or provide other strategic or operating advantages to us.

● **Optimize the Operating Efficiency of our Fleet.** We evaluate each of our existing and future vessels regarding their operating efficiency, and if we believe it will advance the operation of our fleet and benefit our business, we may make vessel modifications to improve fuel consumption and meet stricter environmental standards. We will consider making such modifications when the vessels complete their charter contracts or undergo scheduled dry-docking, as we have done in the past for the installation on our MRs of ballast water treatment systems in order to meet environmental regulations, or with new acquisitions, at the time we acquire them. Among the modifications or enhancements that we consider, made and may make in the future to our vessels include: fitting devices that reduce main engine bunker consumption without reducing available power and speed; fitting devices that improve bunker combustion and therefore bunker consumption for auxiliary equipment; efficient electrical power generation and usage; minimizing hull and propeller frictional losses; systems that allow for optimized routing; and systems that allow for improved maintenance, performance monitoring and management. We have evaluated and successfully installed in vessels a variety of technologies and equipment that have resulted in operating efficiencies, including lower consumption and emissions. For example, we have deployed a software program which helps on-board management to optimize vessel performance and fuel consumption in light of changing weather, including sea conditions. Additionally, in Spring, 2025, we installed Shneekluh ducts during the scheduled second surveys of the *Konkar Venture* and *Konkar Asteri*, which has reduced daily fuel consumption by up to 7% and lowered emissions. Also, we applied special low-friction paint to the hulls of these two vessels in order to improve transit speeds. During the planned Spring 2026 intermediate survey of the *Pyxis Karteria,* we will also install Shneekluh ducts and propeller boss cap fin which should improve vessel performance. We will continue to build on our experience with these and other programs and seek methods to efficiently improve the operational performance of our vessels while keeping costs competitive and meet full regulatory compliance, increasing we environmental standards and customer demands.

● **Utilize Portfolio Approach for Commercial Employment.** We expect to employ the vessels in our fleet under a mix of spot and time charters, which may include a profit share, bareboat charters and pooling arrangements. We expect to diversify our charters by customer and staggered duration. In addition, any long-term time charters we enter into with a profit sharing component will offer us some protection when charter rates decrease, while allowing us to share in increased profits in the event rates increase. We believe the historical seasonal variances between the product tanker and dry-bulk sectors may help smooth the spot chartering results of our fleet on a quarterly basis. The use of cheaper HSFO bunker fuel permits our scrubber-fitted dry-bulkers to potentially achieve higher utilization as well as a charter rate premium which can be estimated to be up to $1,000 per day as of mid- March, 2026. We believe that this portfolio approach to vessel employment is an integral part of risk management which will provide us a base of stable cash flows while providing us the optionality to take advantage of rising charter rates and market volatility in the spot market. Market uncertainty due to the potential impact of rising geopolitical events resulted in more time charter employment of our vessels during 2025.

● **Preserve Strong Safety Record and Commitment to Customer Service and Support**. Maritime, ITM and Konkar Agencies have strong histories of complying with rigorous health, safety and environmental protection standards and have excellent vessel safety records. We expect to continue to meet charterers' and lenders reporting requirements of vessel emissions. We intend to maintain these high standards in order to provide our customers with a high level of safety, customer service and support, including meeting any reporting requirements of environmental emissions as part of monitoring and reporting on their supply chain.

● **Maintain Financial Flexibility.** We intend to maintain financial flexibility to expand our fleet by targeting a balanced capital structure of debt and equity with reasonable liquidity. As part of our risk management policies, depending on the chartering environment, we may employ many of the vessels we acquire under time charters, which provide us predictable cash flows for the duration of the charter and may attract lower-cost debt financing at more favorable terms. We believe this will allow us to build upon our strong commercial lending relationships and optimize our ability to access the public capital markets to respond opportunistically to changes in our industry and financial market conditions. Our "hunting license" loan commitment of up to $45 million provides us attractive flexible debt to potentially expand our fleet. Moreover, our available cash position of over $53 million at year-end 2025 enhances our capabilities.

● **Support Good Environmental, Social and Governance Standards.** We comply with all current vessel environmental regulations, and continue to monitor and record vessel emissions and hazardous materials inventory. We emphasize operational safety and quality maintenance for all our vessels and crews. We try to ensure a productive work environment on board and on shore in order to meet all safety and health regulations, labor conditions and respect for human rights. Our outsourcing of technical, commercial and administrative management services to ITM, Maritime and Konkar Agencies are critical to effectively achieve these objectives. Lastly, we are committed to good corporate governance standards as a fully compliant, publicly-listed company in the US.

**Seasonality**

For a description of the effect of seasonality on our business, please see "Item 3. Key Information – D. Risk Factors – "*Seasonal fluctuations in industry demands could have a material adverse effect on our business, financial condition and results of operations.*".

**Management of Ship Operations, Administration and Safety**

Our executive officers and secretary are employed by and their services are provided by Maritime and Konkar Agencies.

For our MRs, ITM provides technical management services, while Maritime provides commercial/strategic management services. For our dry bulk carriers, Konkar Agencies provides both technical and commercial/strategic management services. Each manager enters into individual ship management agreements with our vessel-owning subsidiaries pursuant to which they provide us with:

● commercial management services, which include obtaining employment, that is, the chartering, for our vessels and managing our relationships with charterers;

● strategic management services, which include providing us with strategic guidance with respect to locating, purchasing, financing and selling vessels;

● technical management services, which include managing day-to-day vessel operations, performing general vessel maintenance, ensuring regulatory and classification society compliance, supervising the maintenance and general efficiency of vessels, arranging the hire of qualified officers and crew, arranging and supervising dry-docking and repairs, arranging insurance for vessels, purchasing stores, supplies, spares and new equipment for vessels, appointing supervisors and technical consultants and providing technical support; and

● shoreside personnel who carry out the management functions described above.

***Head Management Agreement and Ship Management Agreements with Maritime.***

Headquartered in Maroussi, Greece, Maritime was formed in May 2007 by our founder and Chief Executive Officer to take advantage of opportunities in the tanker sector. Maritime's business employs or receives consulting services from 10 people in four departments: technical, operations, chartering and finance/accounting. We entered into a head management agreement with Maritime, or the Head Management Agreement, pursuant to which they provide us and our product tankers, among other things, with ship management services and administrative services. Under the Head Management Agreement, each wholly-owned subsidiary that owns a product tanker in our fleet also enters into a separate ship management agreement with Maritime. Maritime provides us and our tankers with the following services: commercial, sale and purchase, provisions, insurance, bunkering, operations and maintenance, dry-docking and newbuilding construction supervision. Maritime also provides administrative services to us such as executive, financial, accounting and other administrative services, including our dry bulk JVs for which it is paid $150 per day/vessel. As part of its responsibilities, Maritime supervises the crewing and technical management performed by ITM for all of our tanker vessels. In return for such services, Maritime receives from us:

● for each vessel while in operation an initial fee of $325 per day subject to annual inflationary adjustments, and for each vessel under construction, an initial fee of $450 per day, plus an additional daily fee, which is dependent on the seniority of the personnel, to cover the cost of the engineers employed to conduct the supervision, collectively the Ship-Management Fees;

● 1.00% on the price of any vessel sale transaction;

● 1.25% of all chartering, hiring and freight revenue we receive that was procured by or through Maritime; and

● a lump sum of $1.6 million per annum for the administrative services it provides to us, or the Administration Fees.

The ship-management fees (the "Ship-Management Fees") and the administration fees (the "Administration Fees") are subject to annual adjustments to take into account inflation in Greece or such other country where Maritime was headquartered during the preceding year. For 2023, and effective January 1, 2023 the Ship-Management Fees and the Administration Fees were increased by 9.65% in line with the average inflation rate in Greece in 2022 and were $368 per day per ship and $1.8 million annually, respectively. For 2024, and effective January 1, 2024 the Ship-Management Fees and the Administration Fees were increased by 3.5% in line with the average inflation rate in Greece in 2023 and were $381 per day per ship and $1.9 million annually, respectively. Effective January 1, 2025, the Ship-Management Fees and the Administration Fees for 2025 were increased by 2.74% in line with the average inflation rate in Greece in 2024 to $391 per day per ship and $1.9 million annually, respectively. Effective January 1, 2026, the Ship-Management Fees and Administration Fees for 2026 will increase by 2.59% due to the effect of the 2025 Greek inflation rate of 2.59% to $401 per day and $2.0 million yearly, respectively. We believe these amounts payable to Maritime are competitive to many of our U.S. publicly listed product tanker competitors, especially given our relative size. We anticipate that once our fleet reaches 15 tankers, the fee that we pay to Maritime for its ship management services for vessels in operation will recognize a volume discount in an amount to be determined by the parties at that time.

The Head Management Agreement was automatically renewed on March 23, 2025 for a five-year period and may be terminated by either party on 90 days' notice prior to March 23, 2030.

For more information on our Head Management Agreement and our ship management agreements with Maritime, please see "Item 7. Major Shareholders and Related Party Transactions – B. Related Party Transactions."

***Ship Management Agreements with ITM.*** We outsource the day-to-day technical management of our product tankers to an unaffiliated third party, ITM, which has been certified for ISO 9001:2008 and ISO 14001:2004. Each vessel-owning subsidiary that owns a tanker vessel in our fleet under a time or spot charter also typically enters into a separate ship management agreement with ITM. ITM is responsible for all technical management, including crewing, maintenance, repair, dry-dockings and maintaining required vetting approvals. In performing its services, ITM is responsible for operating a management system that complies, and ITM ensures that each vessel and its crew comply, with all applicable health, safety and environmental laws and regulations. In addition to reimbursement of actual vessel related operating costs, the Company also paid an annual fee to ITM of $162,500 per vessel in 2023 and $167,500 per vessel in each of 2024 and 2025 (equivalent to $445, $459 and $459 per day, respectively). This fee is reduced to the extent any vessel ITM manages is not fully operational for a time, which is also referred to as any period of "lay-up."

Each ship management agreement with ITM continues by its terms until it is terminated by either party. The ship management agreements can be cancelled by us for any reason at any time upon three months' advance notice, but neither party can cancel the agreement, other than for specified reasons, until 18 months after the initial effective date of the ship management agreement. We have the right to terminate the ship management agreement for a specific vessel upon 60 days' notice if in our reasonable opinion ITM fails to manage the vessel in accordance with sound ship management practice. ITM can cancel the ship management agreement if it has not received payment it requests within 60 days. Each ship management agreement will be terminated if the relevant vessel is sold (other than to our affiliates), becomes a total loss, becomes a constructive, compromised or arranged total loss or is requisitioned for hire.

***Commercial and Technical Ship Management Agreements with Konkar Agencies.*** Headquartered in Maroussi, Greece, Konkar Agencies has been providing a full range of commercial and technical ship management services to the dry-bulk sector for over 50 years. Konkar Agencies employs 10 staff. The terms and conditions of these service agreements would be similar to those provided by Maritime and ITM. Besides our three bulkers, *Konkar Ormi*, *Konkar Asteri and Konkar Venture*, Konkar Agencies provides these vessel management services to two other mid-sized dry-bulk carriers, which are controlled by Mr. Valentis, our Chairman and CEO. None of the affiliated owned bulkers are fitted with scrubbers which is a competitive disadvantage to two of our carriers, otherwise vessel operations are comparable. For 2023 and 2024, the Company paid an aggregate fee to Konkar Agencies for vessel management services of $850 per day for each bulker, and for 2025 paid $873 per day for each bulker. For 2026, the Company will pay $896 per day for each bulker, which is the same daily fee charged to the affiliated dry-bulk carriers and is competitive within the dry-bulk industry.

***Insurance.*** We are obligated to keep insurance for each of our vessels, including hull and machinery insurance and protection and indemnity insurance (including pollution risks and crew insurances), and we must ensure each vessel carries a certificate of financial responsibility as required. We are responsible to ensure that all premiums are paid. Please see "Item 4. Information on the Company – B. Business Overview. – Risk Management and Insurance" below.

**Classification, Inspection and Maintenance**

Every large, commercial seagoing vessel must be "classed" by a classification society. The classification society certifies that the vessel is "in class," signifying that the vessel has been built and is maintained in accordance with the rules of the classification society and complies with applicable rules and regulations of the vessel's country of registry and the international conventions of which that country is a party. In addition, where surveys of vessels are required by international conventions and corresponding laws and ordinances of a flag state, the classification society will undertake them on application or by official order, acting on behalf of the authorities concerned. The classification society also undertakes on request other surveys and checks that are required by regulations and requirements of the flag state. These surveys are subject to agreements made in each individual case and/or to the regulations of the country concerned.

For maintenance of the class, regular and extraordinary surveys of hull and machinery, including the electrical plant and any special equipment, are required to be performed as follows:

**Annual Surveys**. For seagoing vessels, annual surveys are conducted for the hull and the machinery, including the electrical plant, and where applicable, on special equipment classed at intervals of 12 months from the date of commencement of the class period indicated in the certificate.

**Intermediate Surveys.** Extended annual surveys are referred to as intermediate surveys and typically are conducted two and one-half years after commissioning and each class renewal. Intermediate surveys may be carried out on the occasion of the second or third annual survey.

**Special (Class Renewal) Surveys.** Class renewal surveys, also known as "special surveys," are carried out on the vessel's hull and machinery, including the electrical plant, and on any special equipment classed at the intervals indicated by the character of classification for the hull. During the special survey, the vessel is thoroughly examined, including audio-gauging to determine the thickness of the steel structures. Should the thickness be found to be less than class requirements, the classification society would prescribe steel renewals. The classification society may grant a one-year grace period for completion of the special survey. Substantial amounts of funds may have to be spent for steel renewals to pass a special survey if the vessel experiences excessive wear and tear. In lieu of the special survey every four or five years, depending on whether a grace period is granted, a ship owner has the option of arranging with the classification society for the vessel's hull or machinery to be on a continuous survey cycle, in which every part of the vessel would be surveyed within a five-year cycle. At an owner's discretion, the surveys required for class renewal may be split according to an agreed schedule to extend over the entire period of class. This process is referred to as continuous class renewal.

**Occasional Surveys.** These are inspections carried out as a result of unexpected events, for example, an accident or other circumstances requiring unscheduled attendance by the classification society for re-confirming that the vessel maintains its class, following such an unexpected event.

All areas subject to survey as defined by the classification society are required to be surveyed at least once per class period, unless shorter intervals between surveys are prescribed elsewhere. The period between two subsequent surveys of each area must not exceed five years. Most vessels are also dry-docked every 30 to 36 months for inspection of the underwater parts and for repairs related to inspections. If any defects are found, the classification surveyor will issue a "recommendation" which must be rectified by the ship owner within prescribed time limits.

Most insurance underwriters make it a condition for insurance coverage that a vessel be certified as "in class" by a classification society which is a member of the International Association of Classification Societies, or the IACS. In December 2013, the IACS adopted new harmonized Common Structure Rules which apply to oil tankers and bulk carriers constructed on or after July 1, 2015. All of our vessels are certified as being "in-class" by NKK and DNV GL. We expect that all vessels that we purchase will be certified prior to their delivery and that we will have no obligation to take delivery of the vessel if it is not certified as "in class" on the date of closing.

**Risk Management and Insurance**

*General*

The operation of any cargo carrying ocean-going vessel embraces a wide variety of risks, including the following:

● Physical damage to the vessel:

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| | |
|:---|:---|
| ⮚ | mechanical failure or damage, for example by reason of the seizure of a main engine crankshaft; |
| ⮚ | physical damage to the vessel by reason of a grounding, collision or fire; and |
| Ø | other physical damage due to crew negligence, such as, battering of the vessel's hull during discharge of dry-bulk cargoes with grabs or cranes. |

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● Liabilities to third parties:

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| | |
|:---|:---|
| Ø | cargo loss or shortage incurred during the voyage; |
| Ø | damage to third party property, such as during a collision or berthing operation; |
| Ø | personal injury or death to crew and/or passengers sustained due to accident; and |
| Ø | environmental damage, for example arising from marine disasters such as oil spills and other environmental mishaps. |

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● Business interruption and war risk or war-like operations:

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| | |
|:---|:---|
| Ø | this would include business interruption, for example by reason of political disturbance, strikes or labor disputes, or physical damage to the vessel and/or crew and cargo resulting from deliberate actions such as piracy, war-like actions between countries, terrorism and malicious acts or vandalism. |

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The value of such losses or damages may vary from modest sums, for example for a small cargo shortage damage claim, to catastrophic liabilities, for example arising out of a marine disaster such as a serious oil or chemical spill, which may be virtually unlimited. While we expect to maintain the traditional range of marine and liability insurance coverage for our fleet (hull and machinery insurance, war risks insurance and protection and indemnity coverage) in amounts and to extents that we believe will be prudent to cover normal risks in our operations, we cannot insure against all risks, and it cannot be assured that all covered risks are adequately insured against. Furthermore, there can be no guarantee that any specific claim will be paid by the insurer or that it will always be possible to obtain insurance coverage at reasonable rates. Any uninsured or under-insured loss could harm our business and financial condition.

The following table sets forth information regarding the insurance coverage on our fleet of six vessels as of March 23, 2026.

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| | |
|:---|:---|
| **Type** | **Aggregate Sum Insured For All Vessels in our Existing Fleet** |
| Hull and Machinery | $230.0 million |
| War Risk | $230.0 million |
| Protection and Indemnity, or P&I | Pollution liability claims: limited to $1.0 billion per vessel per incident |

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*Hull and Machinery Insurance and War Risk Insurance*

The principal coverages for marine risks (covering loss or damage to the vessels, rather than liabilities to third parties) are hull and machinery insurance and war risk insurance. These address the risks of the actual (or constructive) total loss of a vessel and accidental damage to a vessel's hull and machinery, for example from running aground or colliding with another vessel. These insurances provide coverage which is limited to an agreed "insured value" which, as a matter of policy, is never less than the particular vessel's fair market value. Reimbursement of loss under such coverage is subject to policy deductibles which vary according to the vessel and the nature of the coverage.

*Protection and Indemnity Insurance*

P&I insurance is the principal coverage for a ship owner's third party liabilities as they arise out of the operation of its vessel. Such liabilities include those arising, for example, from the injury or death of crew, passengers and other third parties working on or about the vessel to whom the ship owner is responsible, or from loss of or damage to cargo carried on board or any other property owned by third parties to whom the ship owner is liable. P&I coverage is traditionally (and for the most part) provided by mutual insurance associations, originally established by ship owners to provide coverage for risks that were not covered by the marine policies that developed through the Lloyd's market.

Our P&I coverage for liabilities arising out of oil pollution is limited to $1.0 billion per vessel per incident in our existing fleet. As the P&I associations are mutual in nature, historically, there has been no limit to the value of coverage afforded. In recent years, however, because of the potentially catastrophic consequences to the membership of a P&I association having to make additional calls upon the membership for further funds to meet a catastrophic liability, the associations have introduced a formula based overall limit of coverage. Although contingency planning by the managements of the various associations has reduced the risk to as low as reasonably practicable, it nevertheless remains the case that an adverse claims experience across an association's membership as a whole may require the members of that association to pay, in due course, unbudgeted additional funds to balance its books.

*Uninsured Risks*

Not all risks are insured and not all risks are insurable. The principal insurable risks which nevertheless remain uninsured across our fleet are "loss of hire" and "strikes." We will not insure these risks because the costs are regarded as disproportionate. These insurances provide, subject to a deductible, a limited indemnity for revenue or "loss of hire" that is not receivable by the ship-owner under the policy. For example, loss of hire risk may be covered on a 14/90/90 basis, with a 14 days' deductible, 90 days cover per incident and a 90-day overall limit per vessel per year. Should a vessel on time charter, where the vessel is paid a fixed hire day by day, suffer a serious mechanical breakdown, the daily hire will no longer be payable by the charterer. The purpose of the loss of hire insurance is to secure the loss of hire during such periods.

**Competition**

We operate in international markets that are highly competitive. As a general matter, competition is based primarily on the supply and demand of commodities and the number of vessels operating at any given time. We compete for charters, in particular, on the basis of price and vessel location, size, age and condition, as well as the acceptability of the vessel's operator to the charterer and on our reputation. We will arrange charters for our vessels typically through the use of brokers, who negotiate the terms of the charters based on market conditions. Competition for product tankers arises primarily from other owners, including major oil companies as well as independent tanker companies. Competition within the dry-bulk sector ranges from major international producers and traders of various dry-bulk commodities to a long list of ocean freight service companies. Many of these competitors have substantially greater financial and other resources than we do. Although we believe that no single competitor has a dominant position in the markets in which we compete, the trend towards consolidation in the industry is creating an increasing number of global enterprises capable of competing in multiple markets, which will likely result in greater competition to us. Our competitors may be better positioned to devote greater resources to the development, promotion and employment of their businesses than we are. Ownership of product tankers and especially dry-bulk carriers is highly fragmented and is divided among publicly listed companies, state-controlled owners and independent shipowners, some of which also have other types of tankers or vessels that carry diverse cargoes. A couple of our U.S. publicly listed competitors in the product tanker sector include Scorpio Tankers Inc. and Ardmore Shipping Corporation. In the dry-bulk sector, U.S. publicly listed competitors include, amongst others, Globus Maritime Limited and Star Bulk Carriers Inc.

**Customers**

We market our product tankers and related freight services to a broad range of customers, including international commodity trading companies, national oil companies, major integrated oil and gas companies and refiners. Our dry-bulk shipping services are marketed to large worldwide list of producers and traders of minor and minor commodities as well as other large shipping companies.

Our significant customers that accounted for more than 10% of our revenues in 2024 and 2025 were as follows:

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| | | |
|:---|:---|:---|
| **Charterer** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2025** |
| P.M.I. Trading Designated Activity Company | 31% | **—** |
| Trafigura Maritime Logistics Pte. Ltd. | 20% | **—** |
| Mansel | 15% | **—** |
| ST Shipping | **—** | 22% |
| Clearlake Shipping Pte. Ltd. | **—** | 20% |
| Chevron | **—** | 11% |
| **Total** | **66%** | **53%** |

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In addition to these companies, we and our ship manager, Maritime, also have historical and growing chartering relationships with major integrated oil and international trading companies, including Vitol, Citgo and their respective subsidiaries. Historically, Konkar Agencies has had extensive relationships with Norden, Bunge, and Oldendorf.

We do not believe that we are dependent on any one of our key customers. In the event of a default of a charter by any of our key customers, we could seek to re-employ the vessel in the spot or time charter markets, although the rate could be lower than the charter rate agreed with the defaulting charterer.

**Environmental, Social and Governance Practices**

We are committed to implementing and monitoring Environmental, Social and Governance (ESG) practices throughout our organization. Regarding these matters, the following summarizes our efforts which are evolving and should further develop over time.

Environmental

We are primarily engaged in the global transportation of refined petroleum products and dry-bulk commodities. We recognize that greenhouse gas emissions, which are largely caused by consumption of fossil fuels, contribute to the warming of the climate. The shipping industry, which is heavily dependent on the burning of such fuels, faces the dual challenge of reducing its carbon footprint by transitioning to the use of low-carbon fuels while meeting demands throughout the global energy value chain. Our environmental initiates are:

● Executing on a renewal program to purchase modern, more technologically advanced product tankers that have enhanced the energy efficiency of our fleet, reduced fuel consumption and lower GHG emissions on a ton-mile basis as well as to sell older, less efficient, less environmentally -friendly vessels;

● Selectively purchasing modern eco-efficient mid-sized dry-bulk carriers that provide operational flexibility and greater efficiency and may be fitted with scrubbers which reduce GHG emissions;

● Through our operations department, and with the assistance of our external managers, ITM and Konkar Agencies, using vessel performance optimization software to monitor vessel operating performance, weather and maritime conditions as well as fuel consumption;

● At dry-dockings, selectively applying high specification hull coatings and, if design permit, installing various energy saving devices, such as, mews ducts, PBCF (Propeller Boss Cap Fins), WED (Wake Equalizing Ducts) etc., to improve vessel performance and reduce fuel consumption;

● Retrofitting the installation of BWTS on our vessels to comply with all applicable environmental regulations;

● Reducing sulfur emissions by following strategies to comply with the IMO fuel regulations which went into effect in January 2020;

● Collecting and analyzing data from our vessels with the objective of reducing fuel consumption and CO2 emissions and provide relevant data to our customers and lenders, as requested;

● Monitoring and promptly reporting vessel GHG data to our classification societies for the calculation and independent verification of emissions allowances under the recently implemented E.U. Emissions Trading System, or ETS;

● Complying with the EU's requirements relating to any inventories of hazardous materials on board our vessels;

● Implementing an IMO 2023 compliance plan for vessels within our fleet in which we have installed energy saving devices and applied high performance paint systems, among other initiatives;

● Committing to practice environmentally and socially responsible ship recycling and to report any hazardous materials contained in a vessel's structure and equipment as a signatory to the Maltese Ship Recycling Registration and

● Maintaining operational excellence within our fleet to ensure continued compliance with all relevant regulatory environmental standards.

Social

Given the history, varying cultures and nature of vessel operations, modern social practices within international shipping can be challenging. ITM and Konkar Agencies are responsible for the crews on our vessels. Our initiatives are as follows:

● Abiding by equal opportunity employer guidelines and promoting diversity in the workforce;

● Complying with the International Transport Workers' Federation agreement which regulates the employment conditions for our seafarers;

● Monitoring ITM and Konkar Agencies' on-board crew health and safety management systems; and

● Volunteering with, and donating to, various local charities and causes, including the seafarers.

Governance

Our Board of Directors, which includes three independent, experienced members from the shipping industry and maritime finance is committed to furthering the Company's governance objectives. Their experience with other publicly traded maritime companies has also been beneficial to us. The Company's management team, led by our Chief Executive Officer, has the day-to-day responsibility to execute appropriate action on behalf of the Company. Our governance initiates include:

● Maintaining a good corporate governance structure in accordance with the Republic of Marshall Islands and in compliance with Nasdaq for continued listing of our publicly-traded securities;

● Independent members of our Board of Directors chair various oversight committees and monitor affiliated relationships and potential conflicts;

● Adopting a comprehensive code of ethics program within the organization through our Code of Business Conduct & Ethics as well as Whistleblower Policy that provides ongoing support and controls; and

● Focusing on transparent reporting of sustainability, operating and financial performance.

**Product Tanker and Dry Bulk Shipping Industry**

*All information and data contained in this section, including the analysis relating to the product tanker shipping industry and dry bulk shipping industry, has been provided by Marsoft BV LLC ("Marsoft"). The statistical information contained in this section is compiled from Marsoft databases and other public and industry sources. In connection therewith, Marsoft has advised that: (i) certain information may be derived from estimates or subjective judgments; (ii) the information in the databases of other maritime data collection agencies may differ from the information used by Marsoft; and (iii) while Marsoft has taken reasonable care in the compilation of the statistical information and believes it to be accurate and correct, data compilation is subject to limited audit and validation procedures. We believe that all third-party data provided in this section is reliable.*

 

*Note on data timing: Unless otherwise indicated, annual trade and fleet indicators in this section reflect full-year figures through 2025, compiled from Marsoft databases and industry sources.*

 

*Note on recent developments: Beginning in late February 2026, military conflict in the Middle East introduced significant new uncertainty into energy and shipping markets, including vessel operations in and around the Strait of Hormuz. As of mid-March 2026, the duration and ultimate impact of these developments remain unclear.*

 

**Product Tanker Industry**

***Demand Background***

 ****

Product tanker demand is driven by global trade demand for refined oil products, which in turn reflects regional mismatches between oil consumption and refinery output. Together, volumes and distances of shipments (tonne-miles) best explain demand for tankers. In 2025, the largest importing region, in tonne-mile terms, was Asia (excluding China and Japan), which accounted for 28% of global import demand. Europe was the next most important region, accounting for 18% of demand, followed by Latin America and Africa, whose imports each comprised 13% of global demand. In contrast, the US, China, and Japan tend to refine crude oil (either domestically produced or imported) in their own domestic refineries, which limits their need for product imports.

The largest exporting region for refined products was Asia/Pacific, including China and Japan, which accounted for 34% of global exports. The next most important exporting regions were North America and the Middle East, each of which accounted for 22% of trade.

Global oil trade is linked to oil demand, which is correlated with the global economy. Over the 2015–2025 period, there was a 73% correlation between oil trade growth and global GDP growth, although the volume of trade has grown more slowly than the world economy over this period. From 2015 to 2025, the global products trade increased by an average of 1.0% per year in volume terms, and by 2.4% per annum in tonne-mile terms as the average trading distance rose significantly over this period. Much of the increase in average distance has taken place in recent years, driven by geopolitical developments. In particular, the Russian invasion of Ukraine in 2022 led to most of Europe banning Russian oil supplies and replacing them with longer-haul supplies. Then, in late 2023, Houthi attacks on shipping in the Red Sea region led to a further increase in average trade distance, as most vessels chose to avoid the Red Sea by taking the longer-haul route around South Africa, either on the way to or from Europe.

***Fleet Background***

The majority of product tankers engaged in international trading fall within the 10,000 dwt to 85,000 dwt range. These vessels are distinguished from crude oil tankers by their coated cargo tanks, which allow them to carry refined petroleum products. The product tanker category includes a number of vessels classified as chemical/oil tankers, which have the capability to carry certain chemical cargoes in addition to refined products; these are generally at the lower end of the size range. A number of coated tankers above 85,000 dwt (mainly LR2 vessels in the 85,000 to 125,000 dwt range) also have the capability to trade refined products, although most tankers above 85,000 dwt are engaged exclusively in crude trades. Product tankers up to 55,000 dwt are employed on a wide variety of routes, while larger tankers (LR1s and LR2s) are more limited in where they can trade, and are typically employed on Middle East to Asia voyages.

As of the end of 2025, there were just over 5,000 tankers in the 10,000-85,000 dwt range, totaling 189 million dwt. Of these, some 90% of vessels were in the 10,000-55,000 dwt range, consisting of MRs (40,000-55,000 dwt) and smaller ships, while the remaining 10% were LR1 vessels (in the 55,000-85,000 dwt range). The 10,000-55,000 dwt sector comprised 155 million dwt as of the end of 2025, with MRs accounting for approximately 1,840 vessels or 89.2 million dwt. The LR1 fleet size totaled 34 million dwt at the end of 2025.

Changes in the fleet size over time are driven by ordering and scrapping decisions made by shipowners. Typically, new orders increase when freight rates are relatively high and ease when rates are low, although other factors, such as technological changes, may also play a role. It's worth noting that it typically takes from 18 months to 3 years for a newly ordered ship to be delivered and start trading (the delivery lag). Delivery "slippage" also impacts deliveries, as over the past five years we have seen actual deliveries, across MR product tankers, average about 14% below scheduled deliveries on a one-year-ahead basis (most of these deliveries ended up being pushed into the next year after they were originally due to be completed).

On the other hand, scrapping (or fleet removals) tends to increase when freight rates are low and declines when rates are high, with factors such as the age profile of the fleet and environmental regulations also playing a significant role. MR product tankers are typically scrapped at age 25-30, while LR1 product tankers are typically scrapped between ages 20 and 25.

The age profile of the MR product tanker fleet has shifted significantly over the past decade. At the end of 2015, approximately 5% of the MR fleet (40,000-55,000 dwt) was over 20 years old; by February 2026, that share had risen to 16.5%, as shown in the MR Age Profile table below. MR scrapping has been limited in recent years, averaging 13 vessels per year over 2021–2025, with only one vessel reportedly scrapped in 2024. Elevated secondhand values, firm charter rates, and regulatory uncertainty have extended the viable economic life of older tonnage. Scrapping did rise to 14 MRs in 2025 as rates softened.

Over the ten-year period from end-2015 to end-2025, the product tanker fleet expanded at a net compound annual rate of 2.5%. Net fleet growth for MR vessels averaged 3.3% annually, while the LR1 fleet grew by just 1.1% per year. The orderbook-to-fleet ratio averaged 10% over the 2015–2025 period.

***Freight Rates & Asset Prices***

 ****

Product tanker rates and prices are cyclical and have exhibited significant volatility over the past decade. One-year time charter rates for a conventional (i.e. non-eco) MR product tanker (47k dwt, built prior to 2013) averaged $17,800 per day from 2015 to 2025, ranging from a low of $11,800 per day to a high of $30,500 per day on a quarterly basis. MR vessel values also varied widely over the same period. The newbuilding price for an MR averaged $39.4 million from 2015 to 2025, ranging from a low of $32.3 million to a high of $51.6 million. The price of a 5-year-old secondhand MR averaged $30.8 million, ranging from a low of $21 million to a high of $47.2 million. The price of a 10-year-old secondhand MR averaged $21.5 million over the same period, ranging from a low of $14 million to a high of $39 million.

The prices quoted above are for Korean-built ships. Chinese-built ships typically have lower newbuilding costs and often sell for 5-10% less in the secondhand market as well, due to a perception that some Chinese yards are of slightly lower quality. It's also worth noting that the prices quoted above are for ships without scrubbers. Scrubbers became increasingly popular after the IMO 2020 regulation took effect, which limited sulfur emissions from ships. In response to this new regulation, ships could either burn more expensive very low sulfur fuel oil (VLSFO) and marine gas oil (MGO) or install scrubbers to remove the sulfur from cheaper high sulfur fuel oil (HSFO). The economics made scrubber installation more beneficial on larger ships, while installing scrubbers on smaller ships, such as MRs, was less common as the payback period was longer. The asset premium for an MR with a scrubber installed is estimated in the $1.5–2 million range, broadly in line with installation costs. As of early 2026, 6.5% of product tankers by vessel count (and 23% by dwt) had scrubbers installed, compared to 36% of the product tanker orderbook. One reason for this discrepancy is that it is cheaper to install a scrubber on a newbuild ship compared to retrofitting an existing ship. The earnings premium for an MR with a scrubber has averaged about $2,000 per day relative to a conventional non-scrubber fitted MR over the past three years, as the bunker price differential has fallen to about $100/tonne over this period.

In addition to ships with and without scrubbers, there is also a split between ships that run on conventional fuel (whether VLSFO or HSFO) and those that can run on either conventional fuel or on alternative fuels (with LNG, LPG, methanol, or battery-hybrid options being the most common). While only 2% of the existing product tanker fleet is capable of running on alternative fuels, an estimated 10% of the product tanker orderbook consists of vessels that have this capability. It's worth noting that the cost premium to order a newbuilding ship with alternative fuel capability depends on whether the ship will have actual alternative fuel capability upon delivery or whether it will have the ability to easily retrofit this capability at a later date.

***2025 Review***

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Preliminary figures indicate that seaborne trade volumes of refined oil products decreased by 1.3% in 2025, with imports declining into most regions, including North America, Europe, China, Japan, and the rest of Asia. Part of the decline in trade volumes reflected a 5% drop in Russian oil product exports, as Russian refineries were increasingly targeted by Ukraine. However, product tanker demand was supported by a 2.3% rise in the average trading distance, leading to a 1.0% increase in tonne-mile demand for 2025 as a whole. The increase in average trading distance was driven in large part by a rise in long-haul shipments from the Middle East, Africa, and Latin America to China, as well as the continued effects of European sanctions on Russian imports and reduced Red Sea transit activity.

The broader product tanker (10,000–85,000 dwt) fleet expanded by an estimated 2.2% in 2025, compared with 1.3% growth in 2024. Deliveries totaled 6.9 million dwt in 2025, up from just 2.8 million dwt in 2024, while scrapping rose from 0.2 million dwt to 1.7 million dwt. Within the MR segment (40,000–55,000 dwt), deliveries increased to 4.3 million dwt (86 vessels) in 2025—representing 62% of total product tanker deliveries—up from 1.0 million dwt (20 vessels) delivered in 2024, while 0.7 million dwt of MR tonnage (14 vessels) was scrapped. Growth in the 10,000-55,000 dwt fleet was an estimated 2.7%, while the LR1 fleet size contracted by 0.3%. Product tanker ordering declined significantly in 2025, with new orders totaling 6 million dwt—the lowest total since 2022—compared with 18 million dwt in 2024. New MR orders fell to 3.2 million dwt (65 vessels), down from 7.7 million dwt (157 vessels) in 2024, though MR and smaller vessels continued to account for 90% of product tanker orders. After reaching 17% at year-end 2024, the orderbook-to-fleet ratio for product tankers eased to 15% by the end of 2025, while remaining above its trailing 10-year average of 10%.

With the product tanker fleet growing faster than product tanker demand in 2025, freight rates declined over the course of the year. One-year time charter rates for an MR fell from an average of $28,400 per day in 2024 to $20,500 per day in 2025, though rates remained well above their trailing ten-year average. Product tanker asset prices also softened in 2025, though remained well above their ten-year average levels. The newbuilding contract price for an MR edged down from $50.5 million in 2024 to $49.3 million in 2025, while the price of a ten-year-old secondhand MR declined from $36.5 million to $30.6 million.

***2026 Year to Date Developments***

 ****

During the first two months of 2026, MR tanker rates and prices remained firm. Preliminary estimates show global oil demand increasing modestly in the new year, with stockbuilding also continuing to boost tanker demand. Meanwhile, the product tanker fleet (10,000–55,000 dwt) expanded by 1.9 million net dwt in the first two months of the year, with deliveries totaling 2 million dwt and scrapping amounting to just 0.1 million dwt. Within the MR segment (40,000–55,000 dwt), the fleet grew by an estimated 0.9 million net dwt, reaching 89.8 million dwt (1,850 vessels), with 27 vessels delivered versus one scrapped. Ordering activity eased in the first two months, with the 10,000–55,000 dwt orderbook-to-fleet ratio dipping below 15% for the first time in two years. Preliminary estimates show the 10,000–55,000 dwt orderbook totaling 23 million dwt at the end of February, with 8.3 million dwt of deliveries expected during the final ten months of 2026 (after accounting for an estimated 8% delivery slippage), and 8.2 million dwt of deliveries expected in 2027. Within the MR segment specifically, the 323 vessels aged 20 years or more (16.5% of the global MR fleet by dwt) exceeded the MR orderbook of 259 vessels (12.6 million dwt, or approximately 14% of the fleet), while the average age of the MR fleet was approximately 14 years.

Beginning in late February 2026, military conflict in the Middle East introduced significant new uncertainty into energy and shipping markets, including disrupting vessel operations in and around the Strait of Hormuz and raising bunker costs. As of mid-March 2026, the duration and ultimate impact of these disruptions remain unclear.

***Product Tanker Market Indicators***

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2023** | **2024** | **2025** | ***5-Yr Avg*** | **Feb-26e** |
| **Seaborne product trade (mt)** | 1155 | 1136 | 1163 | 1149 | *1146* |  |
| **Tonne-mile demand (bn t-m)** | 3986 | 3983 | 4407 | 4449 | *4150* |  |
| **Tonne-mile demand growth (%)** | +1.6% | -0.1% | +10.7% | +1.0% | *+4.1 %* |  |
| **Product tanker fleet, 10–85k dwt (m dwt)** | 177.9 | 180.9 | 183.2 | 187.2 | *181.0* | 191.6 |
| **Product tanker fleet growth (%)** | 1.1% | 1.7% | 1.3% | 2.2% | *1.5 %* | 3.4% |
| **Product tanker orderbook (% fleet)** | 4% | 9% | 17% | 15% | *10 %* | 15% |
| **MR tanker fleet 40–55k dwt (m dwt)** | 82.2 | 84.0 | 84.9 | 87.1 | *83.8* | 89.8 |
| **MR tanker fleet 40–55k dwt growth (%)** | 2.2% | 2.1% | 1.1% | 2.6% | *2.0 %* | 4.7% |
| **MR tanker fleet orderbook (% fleet)** | 4% | 9% | 17% | 14% | *10 %* | 14% |
| **MR 1-year TC average ($/day)** | 20050 | 27025 | 28400 | 20500 | *21650* | 23800 |
| **MR newbuilding price ($m)** | 42.0 | 45.3 | 50.5 | 49.3 | *45.0* | 49.3 |
| **MR 5-year-old secondhand price ($m)** | 34.1 | 41.0 | 44.9 | 39.6 | *37.2* | 45.0 |
| **MR 10-year-old secondhand price ($m)** | 23.5 | 31.5 | 36.5 | 30.6 | *27.7* | 36.0 |

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*Source: Marsoft analysis of industry sources. Fleet figures represent full-year averages; orderbook figures are as of period-end. Figures are compiled from multiple industry sources, databases, and public disclosures and may reflect Marsoft estimation, adjustment, and classification choices. 'Feb-26e' = estimates based on information available through end-February 2026.*

***MR Fleet Age Profile***

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| | | |
|:---|:---|:---|
| **Age Bracket** | **End-2015** | **Feb-2026** |
| **0–4 years** | 27.8% | 14.5% |
| **5–9 years** | 40.5% | 18.8% |
| **10–14 years** | 18.4% | 20.2% |
| **15–19 years** | 8.1% | 30.0% |
| **20+ years** | 5.3% | 16.5% |

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*Share of MR fleet (40–55k dwt) by vessel age at end of period, in dwt terms. Source: Marsoft analysis.*

**Dry Bulk Industry**

***Demand Background***

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The international dry bulk shipping market transports unpackaged commodities in large volumes, including iron ore, coal, grain, bauxite, steel products, and a range of minor bulk commodities. The market is served by several categories of vessels distinguished primarily by cargo-carrying capacity and, in the case of sub-Capesize vessels, the presence of onboard cranes that enable self-loading and discharge at ports without dedicated cargo-handling infrastructure. Capesize vessels (typically above 100,000 dwt) are employed principally in the iron ore, coal, and more recently, bauxite trades. Panamax and Kamsarmax vessels (approximately 65,000–100,000 dwt) and Supramax and Ultramax vessels (approximately 40,000–65,000 dwt) serve a broader range of trades, including grain, bauxite, coal, steel products, and other sub-Capesize cargo flows. Handysize vessels (approximately 10,000–40,000 dwt) typically serve shorter-haul, regional, and niche trades.

Over the ten-year period 2015–2025, global seaborne dry bulk trade increased by an average of 2.1% per year in volume terms and by an estimated 2.7% per year in tonne-mile terms, as average trading distances rose. The divergence between volume growth and tonne-mile growth has been a defining feature of recent dry bulk market conditions, driven by a shift in trade composition toward longer-haul flows from the Atlantic Basin to Asia—particularly in iron ore, grain, and bauxite. Iron ore remained the largest component of dry bulk trade over this period, followed by coal and grains, with bauxite and minor bulks providing incremental volume and tonne-mile growth.

Dry bulk trade growth has shown a moderate 53% correlation with global GDP growth over the past decade. Among individual countries, China occupies a central position in global dry bulk demand, accounting for the majority of global seaborne iron ore (75%) and bauxite (70%) imports and a significant share of seaborne grain (25%) and coal (20%) imports in recent years. In fact, the expansion of China's steel industry over the past two decades has been the single most important driver of dry bulk demand growth globally. While China's steel output has begun to plateau, Chinese industrial activity—as well as policy changes—remain among the most closely watched variables in dry bulk markets.

***Fleet Background***

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The global dry bulk fleet is segmented by vessel size into four principal categories: Capesize (100,000+ dwt), Panamax/Kamsarmax (65,000–100,000 dwt), Supramax/Ultramax (40,000–65,000 dwt), and Handysize (10,000–40,000 dwt). Over the 2015–2025 period, the total dry bulk fleet expanded by an average of approximately 3.2% per year on a net dwt basis, with the Supramax/Ultramax segment growing fastest at roughly 3.8% per year, followed by Panamax/Kamsarmax at 3.2%, Handysize at 2.9%, and Capesize at 2.8%.

The Supramax/Ultramax and Panamax/Kamsarmax segments together comprise about 50% of the total dry bulk fleet in dwt terms. These mid-sized segments are the workhorses of the dry bulk market, serving a wide range of trades including grain, coal, bauxite, steel products, and fertilizers. Within these segments, Supramax/Ultramax vessels are typically equipped with onboard cranes (geared) for self-loading/unloading, making them well-suited for ports that lack shoreside equipment. Panamax/Kamsarmax vessels are generally non-geared and rely on port infrastructure for cargo handling. Kamsarmax vessels (82,000 dwt) are a Panamax subtype optimized for the Kamsar bauxite terminal and are now the standard ordering size in the segment; Ultramax vessels (~60,000–65,000 dwt) similarly represent a larger, more fuel-efficient evolution of the Supramax design.

As of year-end 2025, the total dry bulk fleet size was approximately 1,054 million dwt. The Panamax/Kamsarmax fleet stood at 272 million dwt at the end of 2025 (approximately 3,340 vessels) and the Supramax/Ultramax fleet at 253 million dwt (approximately 4,450 vessels). Changes in fleet size are driven by the balance of new vessel deliveries and scrapping. Ordering activity typically increases when freight rates are elevated and moderates when rates are weak, with a delivery lag of approximately two to three years from contract to delivery. Scrapping decisions are influenced by freight rates, vessel age, scrap steel prices, and regulatory compliance costs. As of February 2026, the Supramax/Ultramax fleet had an average age of 12.6 years, with 12.6% of tonnage being aged 20 years or older. The Panamax/Kamsarmax fleet carried a similar average age of 12.6 years, with a somewhat higher share of 20 year or older tonnage at 15.1%.

The orderbook-to-fleet ratio for the total dry bulk fleet averaged 11% over the 2015–2025 period. As of year-end 2025, the total dry bulk orderbook stood at 12.8% of the existing fleet. At the segment level, Panamax/Kamsarmax carried the heaviest relative orderbook at 15.4% (506 vessels, 42.1 million dwt) and the Supramax/Ultramax orderbook was 11.9% (479 vessels, 30.1 million dwt). Delivery slippage over the past five years averaged 6% on a one-year-ahead basis in the Panamax/Kamsarmax sector, but only 1% in the Supramax/Ultramax sector.

***Freight Rates & Asset Prices***

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Dry bulk charter rates are cyclical and reflect the balance of vessel supply and cargo demand. Over the past decade, rate volatility has been significant. From 2015 to 2025, one-year time charter rates for a conventional Panamax/Kamsarmax vessel (82k dwt, built prior to 2013) averaged $13,300 per day, and on a quarterly basis ranged from a low of $4,900 per day to a high of $27,000 per day. One-year time charter rates for a conventional Supramax/Ultramax bulker (58k dwt, built prior to 2013) averaged $12,600 per day over the same period, ranging from $5,200 per day to $26,500 per day. For reference, equivalent Handysize TC rates averaged $10,700 per day over the same period while Capesize TC rates averaged $17,500 per day.

Over the past three years, conventional (i.e. non-eco) Panamax/Kamsarmax and Supramax/Ultramax vessels with scrubbers have earned a premium averaging about $2,000 per day and $1,800 per day, respectively, compared to similar-size vessels without a scrubber.

Dry bulk asset prices moved broadly in line with earnings over the past decade, with newbuilding and secondhand values rising during periods of elevated earnings and declining during downturns. For Panamax/Kamsarmax benchmark vessels, newbuilding prices averaged $31.0 million from 2015–2025, ranging from a low of $25.6 million to a high of $38.0 million. The price of a 5-year-old secondhand Panamax/Kamsarmax averaged $25.8 million, with a range of $11.5 million to $37.5 million, while the price of a 10-year-old secondhand vessel averaged $17.9 million, ranging from $8.2 million to $27.0 million. For Supramax/Ultramax vessels, the newbuilding price averaged $28.5 million from 2015 to 2025, with a low of $23.5 million and a high of $34.3 million. The price of a 5-year-old secondhand vessel averaged $22.6 million and ranged from $10.3 million to $33.2 million. Meanwhile, the average price of a 10-year-old secondhand vessel over the same period was $16.0 million, with a range from $5.8 million to $25.0 million.

The benchmark prices quoted above are for Japanese-built ships. Secondhand benchmarks reflect eco-design specification in recent years: the five-year old benchmark from 2018 onwards, and the ten-year-old benchmark from 2023. As such, period averages blend conventional and eco valuations as the market standard has evolved. Eco-design vessels trade at a premium to older conventional tonnage, particularly in stronger freight markets, reflecting lower fuel consumption and higher expected earnings. Prices can also vary by yard, survey status, alternative fuel capability, and cargo-handling equipment and configuration, particularly in the geared segments. In addition, the quoted secondhand values are benchmark assessments and may differ from individual transaction prices depending on terms of sale and specific vessel characteristics.

***2025 Review***

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Global seaborne dry bulk trade totaled 5,374 million tonnes in 2025, an increase of 1.1% compared to the prior year. Trade demand strengthened considerably in the second half of the year, with volumes in 25Q4 rising an estimated 3% year-on-year. In tonne-mile terms, dry bulk demand growth was more pronounced: total tonne-mile demand rose an estimated 2.7% in 2025 (4.8% in 25H2), reflecting a continued increase in trading distances, with the fleet's average voyage distance rising from 5,292 nautical miles in 2024 to 5,374 nautical miles in 2025.Iron ore remained the largest component of seaborne dry bulk trade in 2025 at 1,662 million tonnes. Iron ore trade accelerated considerably in 25Q4, with volumes rising an estimated 8.9% year-on-year as long-haul Atlantic Basin flows to Asia—including from Brazil and West Africa—continued to expand. China remained the primary destination for seaborne iron ore, importing approximately 1,245 million tonnes in 2025. Grain trade totaled 620 million tonnes, broadly stable year-on-year, while grain tonne-miles rose in 25Q4 by an estimated 12.5% year-on-year on the back of stronger South American exports to Asia—supporting Panamax/Kamsarmax employment and rates. Global bauxite volumes rose 23% year-on-year to roughly 277 million tonnes, driven by continued growth in Guinean long-haul exports to China. International seaborne coal trade was comparatively softer, with steam coal volumes of 1,061 million tonnes, modestly softer than in 2024.

One notable feature of dry bulk demand in 2025 was the resilience of Chinese iron ore imports despite a decline in domestic steel production levels. Chinese crude steel output fell 4.5% year-on-year in 2025, yet seaborne iron ore imports into China rose by an estimated 2.5%, with second-half 2025 imports up 5% year-on-year. This divergence reflects a combination of opportunistic stockbuilding and an increase in import intensity driven by declining domestic and seaborne ore quality (% Fe content) and increased blending requirements. At the same time, Chinese steel product exports set new records in 2025, with volumes increasing 7.5% year-on-year, despite rising protectionist and anti-dumping trade measures by some trading partners. Elevated Chinese steel product exports continue to function as an important release valve for domestic steelmaking overcapacity, as well as a source of demand growth for the Supramax/Ultramax segment.

Meanwhile, the total dry bulk fleet expanded by 3.0% in 2025 on a net dwt basis versus 2024, reaching approximately 1,054 million dwt at year-end. Deliveries totaled 36.3 million dwt, while scrapping amounted to 5.2 million dwt—subdued by historical standards, as healthy earnings and regulatory uncertainty discouraged demolition. At the segment level, the Panamax/Kamsarmax fleet grew on a net basis from 263 to 272 million dwt (3,340 vessels), with deliveries totaling 11.2 million dwt (136 vessels) and scrapping of 1.6 million dwt (22 vessels). The Supramax/Ultramax fleet expanded from 242 to 253 million dwt (4,450 vessels), with 12.1 million dwt (191 vessels) delivered versus 1.5 million dwt (30 vessels) scrapped. Together, the two segments accounted for approximately 64% of total dry bulk deliveries in 2025 in dwt terms and 60% of total dry bulk scrapping. New ordering activity increased during the year, with fourth quarter contracting volumes particularly elevated in the Capesize segment. The total dry bulk orderbook rose to 12.8% of the fleet at year-end 2025, up from 12.4% a year earlier, with the Panamax/Kamsarmax orderbook at 15.4% (42.1 million dwt) and the Supramax/Ultramax orderbook at 11.9% (30.1 million dwt).

Charter rates improved into the second half of 2025 after a weaker start to the year. Non-scrubber Kamsarmax one-year time charter rates averaged $14,900 per day in the fourth quarter of 2025 and $13,600 per day for the full year. Non-scrubber Supramax one-year TC rates averaged $13,700 per day in the fourth quarter and $12,500 per day for the year, while non-scrubber Ultramax one-year TC rates averaged $15,200 per day in the fourth quarter and $14,000 per day for the year.

***2026 Year to Date Developments***

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Dry bulk charter rates remained firm through the first two months of 2026, particularly on a year-on-year basis compared to what was a soft start to 2025. Early-year performance continued to be led by outperformance in the Capesize segment, although rate assessments across all segments ended February 2026 well above their long-term seasonal averages.

On the dry bulk trade demand side, the positive start to 2026 has been supported by a continuation of the strong iron ore, grain, and bauxite trade trends observed in 25Q4. Chinese iron ore imports through the first two months of the year rose 10% year-on-year. In grains, the 25/26 crop outlook has seen continuous upward revisions over the past several months, while meaningful volumes of US soybean exports to China have also resumed in early 2026, providing further tonne-mile growth support to the Panamax/Kamsarmax segment. Elsewhere in the Atlantic Basin, Guinean bauxite exports in the first two months of the year grew 28% year-on-year, a continuation of the export growth rates recorded throughout 2025.

As of end-February 2026, the total dry bulk orderbook was an estimated 12.2% of the total fleet. By segment, preliminary orderbook-to-fleet ratios through February 2026 stood at 14.5% (489 vessels, 40.8 million dwt) for Panamax/Kamsarmax and 11.8% (482 vessels, 30.3 million dwt) for Supramax/Ultramax. The Panamax/Kamsarmax fleet had grown to approximately 3,364 vessels as of end-February, while the Supramax/Ultramax fleet totaled approximately 4,479 vessels. Based on fleet development through February 2026, the total dry bulk fleet is expected to increase by 3% on a net dwt basis in 2026, although productivity adjustments such as declining fleet speed, increased bunker costs, and elevated off-hire time for special surveys and retrofits are expected to moderate headline fleet growth.

Dry bulk asset prices firmed over the first two months of 2026. Since October 2025, Capesize secondhand prices have risen to their highest levels since the 2008 supercycle, with older vintage tonnage seeing particularly strong gains. Panamax/Kamsarmax and Supramax/Ultramax values have also seen upward momentum, returning to late 2024 levels, led by five-year-old and ten-year-old benchmark assessments. Firmer Panamax/Kamsarmax pricing has been supported by a strengthening grain trade outlook and competition with elevated Cape freight levels in the coal trades. Sales and purchase activity across dry bulk segments was higher in the first months of 2026 compared to 2025 as well.

Beginning in late February 2026, military conflict in the Middle East introduced significant uncertainty into energy and shipping markets, including disrupting vessel operations in and around the Strait of Hormuz and raising bunker costs. While dry bulk trade through the Strait of Hormuz makes up a modest 2.5–3% of global dry bulk volumes, exposure is higher among certain minor bulk trades like limestone and fertilizer-related products. The Middle East has also been a growing destination for Chinese steel product exports in recent years. As of mid-March 2026, the duration and ultimate impact of these disruptions remain unclear.

***Dry Bulk Market Indicators***

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2023** | **2024** | **2025** | ***5-Yr Avg*** | **Feb-26e** |
| **Seaborne dry bulk trade (mt)** | 4889 | 5154 | 5314 | 5374 | *5135* |  |
| **Dry bulk tonne-mile demand (b t-m)** | 24961 | 26703 | 28122 | 28883 | *26819* |  |
| **Dry bulk tonne-mile growth (% y/y)** | -1.8% | 7.0% | 5.3% | 2.7% | *+3.2%* |  |
| **Total dry bulk fleet (m dwt)** | 954.2 | 983.4 | 1013.4 | 1043.3 | *983.6* | 1060.7 |
| **Total dry bulk orderbook (% fleet)** | 8.6% | 10.0% | 12.4% | 12.8% | *10.4 %* | 12.2% |
| **Panamax/Kamsarmax fleet (m dwt)** | 242.5 | 251.6 | 259.8 | 268.3 | *251.3* | 274.6 |
| **Panamax/Kamsarmax orderbook (% fleet)** | 9.2% | 12.9% | 16.1% | 15.4% | *12.8 %* | 14.5% |
| **Supramax/Ultramax fleet (m dwt)** | 222.3 | 229.8 | 238.9 | 249.7 | *231.3* | 255.5 |
| **Supramax/Ultramax orderbook (% fleet)** | 9.9% | 12.0% | 14.6% | 11.9% | *11.3 %* | 11.8% |
| **Kamsarmax 1-yr TC average ($/day)** | 20850 | 14000 | 15500 | 13625 | *17300* | 16500 |
| **Kamsarmax newbuilding price ($m)** | 36.0 | 35.2 | 37.8 | 36.8 | *35.4* | 36.7 |
| **Kamsarmax 5-yr secondhand price ($m)** | 34.2 | 31.3 | 35.2 | 32.1 | *32.4* | 35.1 |
| **Kamsarmax 10-yr secondhand price ($m)** | 24.4 | 24.0 | 25.9 | 23.4 | *23.7* | 26.5 |
| **Supramax 1-yr TC average ($/day)** | 20625 | 13025 | 14500 | 12525 | *16300* | 14500 |
| **Supramax newbuilding price ($m)** | 33.1 | 32.7 | 33.9 | 33.3 | *32.4* | 33.1 |
| **Supramax 5-yr secondhand price ($m)** | 30.8 | 28.8 | 32.7 | 30.7 | *29.5* | 33.2 |
| **Supramax 10-yr secondhand price ($m)** | 22.6 | 21.7 | 24.0 | 22.5 | *21.7* | 25.8 |

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*Source: Marsoft analysis of industry sources. Fleet figures represent full-year averages; orderbook figures are as of period-end. Figures are compiled from multiple industry sources, databases, and public disclosures and may reflect Marsoft estimation, adjustment, and classification choices. 'Feb-26e' = estimates based on information available through end-February 2026.*

**Regulatory Trends in the Shipping Industry**

*The regulatory environment for international shipping continues to evolve. Key recent developments are discussed below.*

 

***IMO Carbon Intensity Indicator (CII) Regulations***

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Since January 1, 2023, vessels have been subject to the IMO's Carbon Intensity Indicator (CII) requirements, which measure operational energy efficiency on an annual basis. Owners must collect and submit fuel consumption and voyage distance data for each vessel, from which regulators then calculate a CII rating, expressed in grams of CO₂ emitted per cargo-carrying capacity per nautical mile, on a scale of A (best) through E (worst). Vessels rated E, or rated D for three consecutive years, must submit corrective action plans to regulators. The thresholds tighten each year, meaning a vessel that rates C today may slip to D or E without operational adjustments. Ratings are recorded in the vessel's Ship Energy Efficiency Management Plan (SEEMP) and reviewed by the relevant state authority or classification society during the next vessel survey.

***Proposed IMO Carbon Levies***

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In April 2025, the IMO's Marine Environment Protection Committee (MEPC) adopted a proposal for a global carbon-emission pricing mechanism for shipping (carbon levies), potentially one of the most commercially significant regulatory developments on the horizon. The proposed amendment to MARPOL Annex VI establishes a two-tiered fuel standard and carbon pricing structure, with requirements tightening progressively from 2028 through 2035 as part of a broader push toward net-zero shipping emissions by or around 2050. Under the proposal, Tier I sets stricter emission reduction targets but carries lower penalty fees, while Tier II sets slower reduction targets but imposes substantially higher penalties for non-compliance. Owners are liable under both tiers. Ships that exceed their emission thresholds can offset the deficit by acquiring surplus units from lower-emitting vessels.

The MEPC proposal had been scheduled for a formal adoption vote at the October 2025 IMO session. However, following opposition led by the United States, the vote was ultimately not held and has been postponed to October 2026.

***European Emissions Trading System (EU ETS)***

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The shipping industry was brought into the EU Emissions Trading System (EU ETS) beginning on January 1, 2024, covering emissions from voyages to, from, and within the EU (including EEA members Norway and Iceland). Shipping companies are required to purchase EU emission allowances (EUAs) corresponding to their verified emissions. A vessel is liable for 100% of emissions on intra-EU voyages and 50% on voyages between the EU and non-EU ports. The obligation is being phased in, with owners liable for 40% of their corresponding emissions in 2024, 70% in 2025, and will be liable for 100% from 2026 onwards.

In practice, cost allocation depends on charter structure; under voyage charters, the shipowner typically passes EU ETS costs through to the charterer via a surcharge. Under time charters, the charterer generally bears the cost since they control the vessel's routing and fuel consumption.

***European FuelEU Regulation***

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The FuelEU Maritime regulation, effective from 2025 onwards, caps the greenhouse gas (GHG) intensity of energy used by ships calling at European ports, measured on a well-to-wake basis and covering CO₂, methane, and nitrous oxide. The required reduction starts at 2% below a 2020 baseline level and escalates to 80% by 2050. Beginning in 2026, owners (or charterers under contractual arrangements) must submit an annual ship-specific compliance report to an independent verifier by January 31.

Vessels exceeding the GHG intensity limits can offset their deficit by borrowing or pooling surplus from other vessels, or by paying a penalty of €2,400 per tonne of VLSFO-equivalent excess. Unlike the EU ETS, where EUAs must be purchased in advance, FuelEU fines are payable after the fact (e.g. by June 2026 for 2025 emissions). Ships that fail to pay penalties face a ban on calling at EU ports.

***Hong Kong Convention on Ship Recycling***

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The Hong Kong International Convention entered into force in June 2025 and establishes minimum safety and environmental standards for the ship demolition industry. Signatories include all major shipbreaking nations (India, Bangladesh, Turkey, and Pakistan) as well as the principal open-registry flag states (Liberia, the Marshall Islands, and Panama). Under the Convention, vessels must maintain a hazardous materials inventory throughout their operational life and undergo a final survey before being approved for recycling, which must take place at an IMO-authorized facility.

EU-flagged vessels face more stringent requirements and must use a facility on the "European List," which includes yards in Turkey and a few European and US locations but excludes most large South Asian facilities. To avoid penalties, in practice European owners typically sell aging vessels to cash buyers 6–12 months before demolition; the buyers then re-flag the vessel before sending it to a yard in South Asia.

**Environmental and Other Regulations in the Shipping Industry**

Government regulation and laws significantly affect the ownership and operation of our fleet. We are subject to international conventions and treaties, national, state and local laws and regulations in force in the countries in which our vessels may operate or are registered relating to safety and health and environmental protection including the storage, handling, emission, transportation and discharge of hazardous and non-hazardous materials, and the remediation of contamination and liability for damage to natural resources. Compliance with such laws, regulations and other requirements entails significant expense, including vessel modifications and implementation of certain operating procedures.

A variety of government and private entities subject our vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities such as the USCG, harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators. Certain of these entities require us to obtain permits, licenses, certificates and other authorizations for the operation of our vessels. Failure to maintain necessary permits or approvals could require us to incur substantial costs or result in the temporary suspension of the operation of one or more of our vessels.

Increasing environmental concerns have created a demand for vessels that conform to stricter environmental standards. We are required to maintain operating standards for all of our vessels that emphasize operational safety, quality maintenance, continuous training of our officers and crews and compliance with United States and international regulations. We believe that the operation of our vessels is in substantial compliance with applicable environmental laws and regulations and that our vessels have all material permits, licenses, certificates or other authorizations necessary for the conduct of our operations. However, because such laws and regulations frequently change and may impose increasingly stricter requirements, we cannot predict the ultimate cost of complying with these requirements, or the impact of these requirements on the resale value or useful lives of our vessels. In addition, a future serious marine incident that causes significant adverse environmental impact could result in additional legislation or regulation that could negatively affect our profitability.

***International Maritime Organization***

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The IMO has adopted the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto, collectively referred to as MARPOL 73/78, the International Convention for the SOLAS Convention, and the LL Convention. MARPOL establishes environmental standards relating to oil leakage or spilling, garbage management, sewage, air emissions, handling and disposal of noxious liquids and the handling of harmful substances in packaged forms. MARPOL is applicable to dry-bulk, tanker and LNG carriers, among other vessels, and is broken into six Annexes, each of which regulates a different source of pollution. Annex I relates to oil leakage or spilling; Annexes II and III relate to harmful substances carried in bulk in liquid or in packaged form, respectively; Annexes IV and V relate to sewage and garbage management, respectively; and Annex VI, lastly, relates to air emissions. Annex VI was separately adopted by the IMO in September of 1997; new emissions standards, titled IMO-2020, took effect on January 1, 2020.

***Air Emissions***

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In September of 1997, the IMO adopted Annex VI to MARPOL to address air pollution from vessels. Effective May 2005, Annex VI sets limits on sulfur oxide and nitrogen oxide emissions from all commercial vessel exhausts and prohibits "deliberate emissions" of ozone depleting substances (such as halons and chlorofluorocarbons), emissions of volatile compounds from cargo tanks, and the shipboard incineration of specific substances. Annex VI also includes a global cap on the sulfur content of fuel oil and allows for special areas to be established with more stringent controls on sulfur emissions, as explained below. Emissions of "volatile organic compounds" from certain vessels, and the shipboard incineration (from incinerators installed after January 1, 2000) of certain substances (such as polychlorinated biphenyls, or PCBs) are also prohibited. We believe that all our vessels are currently compliant in all material respects with these regulations.

The MEPC, adopted amendments to Annex VI regarding emissions of sulfur oxide, nitrogen oxide, particulate matter and ozone depleting substances, which entered into force on July 1, 2010. The amended Annex VI seeks to further reduce air pollution by, among other things, implementing a progressive reduction of the amount of sulfur contained in any fuel oil used on board ships. On October 27, 2016, MEPC 70 agreed to implement a global 0.5% m/m sulfur oxide emissions limit (reduced from 3.50%) starting from January 1, 2020. This limitation can be met by using low-sulfur compliant fuel oil, alternative fuels, or certain exhaust gas cleaning systems. Ships are now required to obtain bunker delivery notes and International Air Pollution Prevention Certificates from their flag states that specify sulfur content. Additionally, at MEPC 73, amendments to Annex VI to prohibit the carriage of bunkers above 0.5% sulfur on ships were adopted and took effect March 1, 2020, with the exception of vessels fitted with exhaust gas cleaning equipment, or scrubbers, which can carry fuel of higher sulfur content. These regulations subject ocean-going vessels to stringent emissions controls, and may cause us to incur substantial costs.

Sulfur content standards are even stricter within certain ECAs. As of January 1, 2015, ships operating within an ECA were not permitted to use fuel with sulfur content in excess of 0.1% m/m. Currently, the IMO has designated five ECAs, including specified portions of the Baltic Sea area, Mediterranean Sea area, North Sea area, North American area and United States Caribbean area. Ocean-going vessels in these areas will be subject to stringent emission controls and may cause us to incur additional costs. Other areas in China are subject to local regulations that impose stricter emission controls. In July 2023, MEPC 80 announced three new ECA proposals, including the Canadian Arctic waters and the Norwegian Sea, which should take effect in March 2027. MEPC 83 also approved the Northeast Atlantic Ocean as an ECA and is expected to take effect in 2028. If other ECAs are approved by the IMO, or other new or more stringent requirements relating to emissions from marine diesel engines or port operations by vessels are adopted by the EPA or the states where we operate, compliance with these regulations could entail significant capital expenditures or otherwise increase the costs of our operations.

The amended Annex VI also established new tiers of stringent nitrogen oxide emissions standards for marine diesel engines, depending on their date of installation. Tier III NOx standards were designed for the control of NOx produced by vessels and apply to ships that operate in the North American and U.S. Caribbean Sea ECAs with marine diesel engines installed and constructed on or after January 1, 2016. At MEPC 70 and MEPC 71, the MEPC approved the North Sea and Baltic Sea as ECAs for nitrogen oxide for ships built on or after January 1, 2021. <u>The Canadian-Arctic ECA for NOx will also be effective starting from March 1, 2026 for ships built on or after January 1, 2025. For the Norwegian Sea ECA, the NOx Tier III engine certification requirement will apply to ships (i) with building contracts placed on or after March 1, 2026, (ii) in the absence of a building contract, constructed on or after September 1, 2026, or (iii) delivered on or after March 1, 2030. For the North-East Atlantic ECA, the requirement is expected to apply to ships (i) contracted on or after January 1, 2027, (ii) in the absence of a building contract, constructed on or after July 1, 2027, or (iii) delivered on or after January 1, 2031.</u> For the moment, this regulation relates to new building vessels and has no retroactive application to existing fleet. The EPA promulgated equivalent (and in some senses stricter) emissions standards in 2010. In April 2025, MEPC 83 also adopted amendments (expected to enter into force late 2026 and early 2027) to the NOx Technical Code 2008, which allows ships to optimize fuel consumption based on their operational profile, thus improving energy efficiency, while ensuring compliance with NOx emission requirements. As a result of these designations or similar future designations, we may be required to incur additional operating or other costs.

At MEPC 70Regulation 22A of MARPOL Annex VI became effective as of March 1, 2018 and requires ships above 5,000 gross tonnages to collect and report annual data on fuel oil consumption to an IMO database, with the first year of data collection having commenced on January 1, 2019. The IMO used such data as part of its initial roadmap (through 2023) for developing its strategy to reduce greenhouse gas emissions from ships, as discussed further below.

As of January 1, 2013, MARPOL made mandatory certain measures relating to energy efficiency for ships. All ships are now required to develop and implement Ship Energy Efficiency Management Plans, or SEEMP, and new ships must be designed in compliance with minimum energy efficiency levels per capacity mile as defined by the Energy Efficiency Design Index, or EEDI. MEPC 75 adopted amendments to MARPOL Annex VI which brought forward the effective date of the EEDI's "phase 3" requirements from January 1, 2025 to April 1, 2022 for several ship types, including gas carriers, general cargo ships, and LNG carriers.

Additionally, in 2022, MEPC 75 amended Annex VI to impose new regulations to reduce greenhouse gas emissions from ships. These amendments introduce requirements to assess and measure the energy efficiency of all ships and set the required attainment values, with the goal of reducing the carbon intensity of international shipping. The requirements include (1) a technical requirement to reduce carbon intensity based on a new EEXI, and (2) operational carbon intensity reduction requirements, based on a new operational CII. The attained EEXI is required to be calculated for ships of 400 gross tonnage and above, in accordance with different values set for ship types and categories. With respect to the CII, the draft amendments would require ships of 5,000 gross tonnage to document and verify their actual annual operational CII achieved against a determined required annual operational CII. All ships above 400 gross tonnage must also have an approved SEEMP on board. For ships above 5,000 gross tonnage, the SEEMP needs to include certain mandatory content.

In late 2022, MEPC 79 adopted amendments to MARPOL Annex VI, Appendix IX to include the attained and required CII values, the CII rating and attained EEXI for existing ships in the required information to be submitted to the IMO Ship Fuel Oil Consumption Database. MEPC 79 also revised the EEDI calculation guidelines to include a CO2 conversion factor for ethane, a reference to the updated ITCC guidelines, and a clarification that in case of a ship with multiple load line certificates, the maximum certified summer draft should be used when determining the deadweight. These amendments entered into force on May 1, 2024. In July 2023, MEPC 80 approved the plan for reviewing CII regulations and guidelines, and in April 2025, MEPC 83 adopted amendments to 2021 Guidelines on operational carbon intensity reduction factors, which outline methods for determining CII reduction factors from 2023 and now includes newly defined factors from 2027 to 2030. We may incur costs to comply with these revised standards. Additional or new conventions, laws and regulations may be adopted that could require the installation of expensive emission control systems and could adversely affect our business, results of operations, cash flows and financial condition.

***Safety Management System Requirements***

The SOLAS Convention was amended to address the safe manning of vessels and emergency training drills. The Convention of Limitation of Liability for Maritime Claims, or the LLMC, sets limitations of liability for a loss of life or personal injury claim or a property claim against ship owners. We believe that our vessels are in substantial compliance with SOLAS and LLMC standards.

Under Chapter IX of the SOLAS Convention, or the ISM Code, our operations are also subject to environmental standards and requirements. The ISM Code requires the party with operational control of a vessel to develop an extensive safety management system that includes, among other things, the adoption of a safety and environmental protection policy setting forth instructions and procedures for operating its vessels safely and for responding to emergencies. We rely upon the safety management system that we and our technical management team have developed for compliance with the ISM Code. The failure of a vessel owner or bareboat charterer to comply with the ISM Code may subject such party to increased liability, may decrease available insurance coverage for the affected vessels and may result in a denial of access to, or detention in, certain ports.

The ISM Code requires that vessel operators obtain a safety management certificate for each vessel they operate. This certificate evidences compliance by a vessel's management with the ISM Code requirements for a safety management system. No vessel can obtain a safety management certificate unless its manager has been awarded a document of compliance, issued by each flag state, under the ISM Code. We have obtained applicable documents of compliance for our offices and safety management certificates for all of our vessels for which the certificates are required by the IMO. The documents of compliance and safety management certificates are renewed as required.

Regulation II-1/3-10 of the SOLAS Convention governs ship construction and stipulates that ships over 150 meters in length must have adequate strength, integrity and stability to minimize risk of loss or pollution. Goal-based standards amendments in SOLAS regulation II-1/3-10 entered into force in 2012, with July 1, 2016 set for application to new oil tankers and bulk carriers. The SOLAS Convention regulation II-1/3-10 on goal-based ship construction standards for bulk carriers and oil tankers, which entered into force on January 1, 2012, requires that all oil tankers and bulk carriers of 150 meters in length and above, for which the building contract is placed on or after July 1, 2016, satisfy applicable structural requirements conforming to the functional requirements of the International Goal-based Ship Construction Standards for Bulk Carriers and Oil Tankers (GBS Standards).

The IMO has also adopted the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, or STCW. As of February 2017, all seafarers are required to meet the STCW standards and be in possession of a valid STCW certificate. Flag states that have ratified SOLAS and STCW generally employ the classification societies, which have incorporated SOLAS and STCW requirements into their class rules, to undertake surveys to confirm compliance.

Furthermore, cybersecurity guidance and regulations have been in an attempt to combat cybersecurity threats. For new ships contracted for construction on or after January 1, 2024, the IACS now requires vessel owners, yard and suppliers to build cybersecurity barriers into their systems and vessels, requiring compliance across the full spectrum of critical on-board control and navigation systems. On July 16, 2025, the U.S. Coast Guard's final rule, Cybersecurity in the Martine Transportation System, went into effect. Under this rule, all regulated entities are required to develop Cybersecurity and Cyber Incident Response Plans, designate a Cybersecurity Officer to implement plans, and to report certain cyber incidents to the National Response Center. This might cause companies to create additional procedures for monitoring cybersecurity, which could require additional expenses and/or capital expenditures. The impact of these regulations is hard to predict at this time.

In June 2022, SOLAS also set out new amendments that took effect on January 1, 2024, which include new requirements for: (1) the design for safe mooring operations, (2) the Global Maritime Distress and Safety System, or GMDSS, (3) watertight integrity, (4) watertight doors on cargo ships, (5) fault-isolation of fire detection systems, (6) life-saving appliances, and (7) safety of ships using LNG as fuel. These new requirements may impact the cost of our operations.

***Pollution Control and Liability Requirements***

The IMO has negotiated international conventions that impose liability for pollution in international waters and the territorial waters of the signatories to such conventions. For example, the IMO adopted the BWM Convention in 2004. The BWM Convention entered into force on September 8, 2017. The BWM Convention requires ships to manage their ballast water to remove, render harmless, or avoid the uptake or discharge of new or invasive aquatic organisms and pathogens within ballast water and sediments. The BWM Convention's implementing regulations call for a phased introduction of mandatory ballast water exchange requirements, to be replaced in time with mandatory concentration limits, and require all ships to carry a ballast water record book and an international ballast water management certificate.

The MEPC maintains guidelines for approval of ballast water management systems (G8). Ships over 400 gross tons generally must comply with a D-1 standard, requiring the exchange of ballast water only in open seas and away from coastal waters. The D-2 standard specifies the maximum amount of viable organisms allowed to be discharged, and compliance dates vary depending on the IOPP renewal dates. The standards have been in force since 2019, and for most ships, compliance with the D-2 standard involved installing on-board systems to treat ballast water and eliminate unwanted organisms. Ballast water management systems, which include systems that make use of chemical, biocides, organisms or biological mechanisms, or which alter the chemical or physical characteristics of the ballast water, must be approved in accordance with IMO Guidelines (Regulation D-3). Since September 8, 2024 all ships must meet the D-2 standard. Costs of compliance with these regulations may be substantial. Additionally, in November 2020, MEPC 75 adopted amendments to the BWM Convention which would require a commissioning test of the ballast water management system for the initial survey or when performing an additional survey for retrofits. This analysis will not apply to ships that already have an installed BWM system certified under the BWM Convention. These amendments have entered into force on June 1, 2022. In December 2022, MEPC 79 agreed that it should be permitted to use ballast tanks for temporary storage of treated sewage and grey water. MEPC 79 also established that ships are expected to return to D-2 compliance after experiencing challenging uptake water and bypassing a BWM system should only be used as a last resort.

Once mid-ocean exchange ballast water treatment requirements become mandatory under the BWM Convention, the cost of compliance could increase for ocean carriers and may have a material effect on our operations. Irrespective of the BWM convention, certain countries such as the U.S. have enforced and implemented regional requirement related to the system certification, operation and reporting.

The IMO adopted the International Convention on Civil Liability for Oil Pollution Damage of 1969, as amended by different Protocols in 1976, 1984, and 1992, and amended in 2000, or the CLC. Under the CLC and depending on whether the country in which the damage results is a party to the 1992 Protocol to the CLC, a vessel's registered owner may be strictly liable for pollution damage caused in the territorial waters of a contracting state by discharge of persistent oil, subject to certain exceptions. The 1992 Protocol changed certain limits on liability expressed using the International Monetary Fund currency unit, the Special Drawing Rights. The limits on liability have since been amended so that the compensation limits on liability were raised. The right to limit liability is forfeited under the CLC where the spill is caused by the shipowner's actual fault and under the 1992 Protocol where the spill is caused by the shipowner's intentional or reckless act or omission where the shipowner knew pollution damage would probably result. The CLC requires ships over 2,000 tons covered by it to maintain insurance covering the liability of the owner in a sum equivalent to an owner's liability for a single incident. We have protection and indemnity insurance for environmental incidents. P&I Clubs in the International Group issue the required Bunkers Convention "Blue Cards" to enable signatory states to issue certificates. All of our vessels are in possession of a CLC State issued certificate attesting that the required insurance coverage is in force.

The IMO also adopted the Bunker Convention to impose strict liability on ship owners (including the registered owner, bareboat charterer, manager or operator) for pollution damage in jurisdictional waters of ratifying states caused by discharges of bunker fuel. The Bunker Convention requires registered owners of ships over 1,000 gross tons to maintain insurance for pollution damage in an amount equal to the limits of liability under the applicable national or international limitation regime (but not exceeding the amount calculated in accordance with the LLMC). With respect to non-ratifying states, liability for spills or releases of oil carried as fuel in ship's bunkers typically is determined by the national or other domestic laws in the jurisdiction where the events or damages occur.

Ships are required to maintain a certificate attesting that they maintain adequate insurance to cover an incident. In jurisdictions, such as the United States where the CLC or the Bunker Convention has not been adopted, various legislative schemes or common law govern, and liability is imposed either on the basis of fault or on a strict-liability basis.

***Anti-Fouling Requirements***

In 2001, the IMO adopted the International Convention on the Control of Harmful Anti-fouling Systems on Ships, or the "Anti-fouling Convention." The Anti-fouling Convention, which entered into force on September 17, 2008, prohibits the use of organotin compound coatings to prevent the attachment of mollusks and other sea life to the hulls of vessels. Vessels of over 400 gross tons engaged in international voyages will also be required to undergo an initial survey before the vessel is put into service or before an International Anti-fouling System Certificate is issued for the first time; and subsequent surveys when the anti-fouling systems are altered or replaced. Vessels of 24 meters in length or more but less than 400 gross tonnage engaged in international voyages will have to carry a Declaration on Anti-fouling Systems signed by the owner or authorized agent.

In November 2020, MEPC 75 approved draft amendments to the Anti-fouling Convention to prohibit anti-fouling systems containing cybutryne, which would apply to ships from January 1, 2023, or, for ships already bearing such an anti-fouling system, at the next scheduled renewal of the system after that date, but no later than 60 months following the last application to the ship of such a system. In addition, the International Anti-fouling System, or IAFS, Certificate has been updated to address compliance options for anti-fouling systems to address cybutryne. Ships which are affected by this ban on cybutryne must receive an updated IAFS Certificate no later than two years after the entry into force of these amendments. Ships which are not affected (i.e. with anti-fouling systems which do not contain cybutryne) must receive an updated IAFS Certificate at the next Anti-fouling application to the vessel. These amendments were formally adopted at MEPC 76 in June 2021 and entered into force on January 1, 2023. Our fleet already complies with this regulation.

We have obtained Anti-fouling System Certificates for all of our vessels that are subject to the Anti-fouling Convention.

***Compliance Enforcement***

Noncompliance with the ISM Code or other IMO regulations may subject the ship owner or bareboat charterer to increased liability, may lead to decreases in available insurance coverage for affected vessels and may result in the denial of access to, or detention in, some ports. The USCG and European Union authorities prohibit vessels not in compliance with the ISM Code by applicable deadlines from trading in U.S. and European Union ports, respectively. As of the date of this report, each of our vessels is ISM Code certified. However, there can be no assurance that such certificates will be maintained in the future. The IMO continues to review and introduce new regulations. It is impossible to predict what additional regulations, if any, may be passed by the IMO and what effect, if any, such regulations might have on our operations.

***United States Regulations***

The U.S. Oil Pollution Act of 1990 and the Comprehensive Environmental Response, Compensation and Liability Act

The OPA established an extensive regulatory and liability regime for the protection and cleanup of the environment from oil spills. OPA affects all "owners and operators" whose vessels trade or operate within the U.S., its territories and possessions or whose vessels operate in U.S. waters, which includes the U.S.'s territorial sea and its 200 nautical mile exclusive economic zone around the U.S. The U.S. has also enacted the CERCLA, which applies to the discharge of hazardous substances other than oil, except in limited circumstances, whether on land or at sea. OPA and CERCLA both define "owner and operator" in the case of a vessel as any person owning, operating or chartering by demise, the vessel. Both OPA and CERCLA impact our operations.

Under OPA, vessel owners and operators are "responsible parties" and are jointly, severally and strictly liable (unless the spill results solely from the act or omission of a third party, an act of God or an act of war) for all containment and clean-up costs and other damages arising from discharges or threatened discharges of oil from their vessels, including bunkers (fuel). OPA defines these other damages broadly to include:

&nbsp;&nbsp;&nbsp;&nbsp;(i) injury
 to, destruction or loss of, or loss of use of, natural resources and related assessment costs;

(ii) injury
 to, or economic losses resulting from, the destruction of real and personal property;

(iv) loss
 of subsistence use of natural resources that are injured, destroyed or lost;

(iii) net
 loss of taxes, royalties, rents, fees or net profit revenues resulting from injury, destruction or loss of real or personal property,
 or natural resources;

(v) lost
 profits or impairment of earning capacity due to injury, destruction or loss of real or personal property or natural resources; and

(vi) net
 cost of increased or additional public services necessitated by removal activities following a discharge of oil, such as protection
 from fire, safety or health hazards, and loss of subsistence use of natural resources.

OPA contains statutory caps on liability and damages; such caps do not apply to direct cleanup costs. On December 23, 2022, the USCG issued a final rule to adjust the limitation of liability under the OPA. Effective March 23, 2023, the new adjusted limits of OPA liability for a tank vessel, other than a single-hull tank vessel, over 3,000 gross tons liability to the greater of $2,500 per gross ton or $21,521,300 (<u>previous limit was $2,300 gross ton or $19,943,400</u>). These limits of liability do not apply if an incident was proximately caused by the violation of an applicable U.S. federal safety, construction or operating regulation by a responsible party (or its agent, employee or a person acting pursuant to a contractual relationship), or a responsible party's gross negligence or willful misconduct. The limitation on liability similarly does not apply if the responsible party fails or refuses to (i) report the incident as required by law where the responsible party knows or has reason to know of the incident; (ii) reasonably cooperate and assist as requested in connection with oil removal activities; or (iii) without sufficient cause, comply with an order issued under the Federal Water Pollution Act (Section 311 (c), (e)) or the Intervention on the High Seas Act.

CERCLA contains a similar liability regime whereby owners and operators of vessels are liable for cleanup, removal and remedial costs, as well as damages for injury to, or destruction or loss of, natural resources, including the reasonable costs associated with assessing the same, and health assessments or health effects studies. There is no liability if the discharge of a hazardous substance results solely from the act or omission of a third party, an act of God or an act of war. Liability under CERCLA is limited to the greater of $300 per gross ton or $5.0 million for vessels carrying a hazardous substance as cargo and the greater of $300 per gross ton or $500,000 for any other vessel. These limits do not apply (rendering the responsible person liable for the total cost of response and damages) if the release or threat of release of a hazardous substance resulted from willful misconduct or negligence, or the primary cause of the release was a violation of applicable safety, construction or operating standards or regulations. The limitation on liability also does not apply if the responsible person fails or refused to provide all reasonable cooperation and assistance as requested in connection with response activities where the vessel is subject to OPA.

OPA and CERCLA each preserve the right to recover damages under existing law, including maritime tort law. OPA and CERCLA both require owners and operators of vessels to establish and maintain with the USCG evidence of financial responsibility sufficient to meet the maximum amount of liability to which the particular responsible person may be subject. Vessel owners and operators may satisfy their financial responsibility obligations by providing a proof of insurance, a surety bond, qualification as a self-insurer or a guarantee. We comply and plan to comply going forward with the USCG's financial responsibility regulations by providing applicable certificates of financial responsibility.

OPA specifically permits individual states to impose their own liability regimes with regard to oil pollution incidents occurring within their boundaries, provided they accept, at a minimum, the levels of liability established under OPA. Some states have enacted legislation providing for unlimited liability for oil spills and many U.S. states that border a navigable waterway have enacted environmental pollution laws that impose strict liability on a person for removal costs and damages resulting from a discharge of oil or a release of a hazardous substance. Moreover, some states have enacted legislation providing for unlimited liability for discharge of pollutants within their waters, although in some cases, states which have enacted this type of legislation have not yet issued implementing regulations defining vessel owners' responsibilities under these laws. These laws may be more stringent than U.S. federal law. The Company intends to comply with all applicable state regulations in the ports where the Company's vessels call.

We currently maintain pollution liability coverage insurance in the amount of $1.0 billion per incident for each of our vessels. If the damages from a catastrophic spill were to exceed our insurance coverage, it could have an adverse effect on our business, results of operation and financial condition.

***Other United States Environmental Initiatives***

The CAA requires the EPA to promulgate standards applicable to emissions of volatile organic compounds and other air contaminants. Our vessels are subject to vapor control and recovery requirements for certain cargoes when loading, unloading, ballasting, cleaning and conducting other operations in regulated port areas. The CAA also requires states to draft State Implementation Plans, or SIPs, designed to attain national health-based air quality standards in each state. Although state-specific, SIPs may include regulations concerning emissions resulting from vessel loading and unloading operations by requiring the installation of vapor control equipment. Our vessels operating in such regulated port areas with restricted cargoes are equipped with vapor recovery systems that satisfy these existing requirements.

The CWA prohibits the discharge of oil, hazardous substances and ballast water in U.S. navigable waters unless authorized by a duly-issued permit or exemption, and imposes strict liability in the form of penalties for any unauthorized discharges. The CWA also imposes substantial liability for the costs of removal, remediation and damages and complements the remedies available under OPA and CERCLA.

The EPA and the USCG have also enacted rules relating to ballast water discharge, compliance with which requires the installation of equipment on our vessels to treat ballast water before it is discharged or the implementation of other port facility disposal arrangements or procedures at potentially substantial costs, and/or otherwise restrict our vessels from entering U.S. Waters. The EPA will regulate these ballast water discharges and other discharges incidental to the normal operation of certain vessels within United States waters pursuant to the VIDA, which was signed into law on December 4, 2018 and replaces the VGP program. VIDA establishes a new framework for the regulation of vessel incidental discharges under the CWA, requires the EPA to develop performance standards for those discharges within two years of enactment, and requires the U.S. Coast Guard to develop implementation, compliance, and enforcement regulations within two years of EPA's promulgation of standards. In October, 2024, the EPA finalized its rule on Vessel Incidental Discharge Standards of Performance, which means that the USCG must now develop corresponding regulations regarding ballast water within two years of that date. Under VIDA, all provisions of the 2013 VGP and USCG regulations regarding ballast water treatment remain in force and effect until the EPA and U.S. Coast Guard regulations are finalized. Non-military, non-recreational vessels greater than 79 feet in length must continue to comply with the requirements of the VGP, including submission of a Notice of Intent, or NOI, or retention of a PARI form and submission of annual reports. We have submitted NOIs for our vessels where required. Compliance with the EPA, U.S. Coast Guard and state regulations could require the installation of ballast water treatment equipment on our vessels or the implementation of other port facility disposal procedures at potentially substantial cost, or may otherwise restrict our vessels from entering U.S. waters.

***European Union Regulations***

In October 2009, the European Union amended a directive to impose criminal sanctions for illicit ship-source discharges of polluting substances, including minor discharges, if committed with intent, recklessly or with serious negligence and the discharges individually or in the aggregate result in deterioration of the quality of water. Aiding and abetting the discharge of a polluting substance may also lead to criminal penalties. The directive applies to all types of vessels, irrespective of their flag, but certain exceptions apply to warships or where human safety or that of the ship is in danger. Criminal liability for pollution may result in substantial penalties or fines and increased civil liability claims. Regulation (EU) 2015/757 of the European Parliament and of the Council of 29 April 2015 (amending E.U. Directive 2009/16/EC) governs the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and, subject to some exclusions, requires companies with ships over 5,000 gross tonnages to monitor and report carbon dioxide emissions annually starting on January 1, 2018, which may cause us to incur additional expenses.

The European Union has adopted several regulations and directives requiring, among other things, more frequent inspections of high-risk ships, as determined by type, age, and flag as well as the number of times the ship has been detained. The European Union also adopted and extended a ban on substandard ships and enacted a minimum ban period and a definitive ban for repeated offenses. The regulation also provided the European Union with greater authority and control over classification societies, by imposing more requirements on classification societies and providing for fines or penalty payments for organizations that failed to comply. Furthermore, the E.U. has implemented regulations requiring vessels to use reduced sulfur content fuel for their main and auxiliary engines. The E.U. Directive 2005/33/EC (amending Directive 1999/32/EC) introduced requirements parallel to those in Annex VI relating to the sulfur content of marine fuels. In addition, the E.U. imposed a 0.1% maximum sulfur requirement for fuel used by ships at berth in the Baltic, the North Sea and the English Channel, the so called SOx-Emission Control Area. As of January 2020, E.U. member states must also ensure that ships in all E.U. waters, except the SOx-Emission Control Area, use fuels with a 0.5% maximum sulfur content.

On September 15, 2020, the European Parliament voted to include greenhouse gas emissions from the maritime sector in the European Union's carbon market, the E.U. Emissions Trading System, or E.U. ETS, as part of its "Fit-for-55" legislation to reduce net greenhouse gas emissions by at least 55% by 2030. This will require shipowners to buy permits to cover these emissions. On December 18, 2022, the Environmental Council and European Parliament agreed on a gradual introduction of obligations for shipping companies to surrender allowances equivalent to a portion of their carbon emissions: 40% for verified emissions from 2024, 70% for 2025 and 100% for 2026. Most large vessels will be included in the scope of the E.U. ETS from the start. Big offshore vessels of 5,000 gross tonnages and above will be included in the 'MRV' on the monitoring, reporting and verification of CO2 emissions from maritime transport regulation from 2025 and in the E.U. ETS from 2027. General cargo vessels and off-shore vessels between 400-5,000 gross tonnage will be included in the MRV regulation from 2025 and their inclusion in E.U. ETS will be reviewed in 2026. Furthermore, starting from January 1, 2026, the ETS regulations will expand to include emissions of two additional greenhouse gases: nitrous oxide and methane.

The E.U. also adopted the FuelEU Maritime regulation, a proposal included in the "Fit-for-55" legislation. From January 2025, FuelEU Maritime sets requirements on the annual average GHG intensity of energy used by ships trading within the E.U. or European Economic Area (EEA). This intensity is measured as GHG emissions per energy unit (gCO2e/MJ) and, in turn, GHG emissions are calculated in a well-to-wake perspective. The calculation takes into account emissions related to the extraction, cultivation, production and transportation of fuel, in addition to emissions from energy used on board the ship. The baseline for the calculation is the average well-to-wake GHG intensity of the fleet in 2020: 91.16 gCO2e/MJ. This will start at a 2% reduction in 2025, increasing to 6% in 2030, and accelerating from 2035 to reach an 80% reduction by 2050.

Compliance with the E.U. ETS and FuelEU Maritime regulations will result in additional compliance and administration costs to properly incorporate the provisions of the Directive into our business routines. Additional E.U. regulations which are part of the EU's "Fit-for-55," could also affect our financial position in terms of compliance and administration costs when they take effect.

***International Labor Organization***

The ILO is a specialized agency of the UN that has adopted the Maritime Labor Convention 2006, or MLC 2006. A Maritime Labor Certificate and a Declaration of Maritime Labor Compliance is required to ensure compliance with the MLC 2006 for all ships that are 500 gross tonnage or over and are either engaged in international voyages or flying the flag of a Member and operating from a port, or between ports, in another country. We believe that all our vessels are in substantial compliance with and are certified to meet MLC 2006.

***Greenhouse Gas Regulation***

Currently, the emissions of greenhouse gases from international shipping are not subject to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, which entered into force in 2005 and pursuant to which adopting countries have been required to implement national programs to reduce GHG emissions. International negotiations are continuing with respect to a successor to the Kyoto Protocol, and restrictions on shipping emissions may be included in any new treaty. In December 2009, more than 27 nations, including the U.S. and China, signed the Copenhagen Accord, which includes a non-binding commitment to reduce GHG emissions. The 2015 United Nations Climate Change Conference in Paris resulted in the Paris Agreement, which entered into force on November 4, 2016 and does not directly limit greenhouse gas emissions from ships. The U.S. is not a party to the Paris Agreement.

At MEPC 70 and MEPC 71, a draft outline of the structure of the initial strategy for developing a comprehensive IMO strategy on reduction of GHG emissions from ships was approved. In accordance with this roadmap, in April 2018, nations at the MEPC 72 adopted an initial strategy to reduce GHG emissions from ships. The initial strategy identifies "levels of ambition" to reduce GHG emissions and notes that technological innovation, alternative fuels and/or energy sources for international shipping will be integral to achieve the ambitions. At MEPC 77, the Member States agreed to initiate the revision of the Initial IMO Strategy on Reduction of GHG emissions from ships, recognizing the need to strengthen the "levels of ambition.". In July 2023, MEPC 80 adopted the 2023 IMO Strategy on Reduction of GHG Emissions from Ships, which builds upon the initial strategy's levels of ambition. The revised levels of ambition include (1) further decreasing the carbon intensity from ships through improvement of energy efficiency; (2) reducing carbon intensity of international shipping; (3) increasing adoption of zero or near-zero emissions technologies, fuels, and energy sources; and (4) achieving net zero GHG emissions from international shipping around. Furthermore, the following indicative checkpoints were adopted in order to reach net zero GHG emissions from international shipping: i). reduce the total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008 levels; and ii). reduce the total annual GHG emissions from international shipping by at least 70%, striving for 80%, by 2040, compared to 2008 levels.

As part of the 2023 IMO Strategy, MPEC also created the IMO Net-zero Framework, which will combine mandatory emissions limits and GHG pricing across the industry. The IMO Net-zero Framework was approved at MEPC 83 (Spring 2025) for potential adoption in Spring 2026 and will eventually be included in Annex VI. Under these draft regulations, ships will be required to reduce their annual greenhouse gas fuel intensity, or GFI, calculated using the well-to-wake approach and ships emitting above GFI thresholds will have to acquire remedial units to balance its deficit emissions, while those using zero or near-zero GHG technologies will be eligible for financial rewards.These regulations could cause us to incur additional substantial expenses.

The E.U. made a unilateral commitment to reduce overall GHG emissions from its member states from 20% of 1990 levels by 2020. The E.U. also committed to reduce its emissions by 20% under the Kyoto Protocol's second period from 2013 to 2020. Starting in January 2018, large ships over 5,000 gross tonnage calling at E.U. ports are required to collect and publish data on carbon dioxide emissions and other information. Under the European Climate Law, the E.U. committed to reduce its net GHG emissions by at least 55% by 2030 through its "Fit-for-55" legislation package. As part of this initiative, the European Union's carbon market, E.U. ETS, has been extended to cover CO2 emissions from all large ships entering E.U. ports starting January 2024.

In the United States, the EPA issued a finding that greenhouse gases endanger the public health and safety, adopted regulations to limit GHG emissions from certain mobile sources, and proposed regulations to limit GHG emissions from large stationary sources. However, in March 2017, the Trump administration issued an executive order to review and possibly eliminate the EPA's plan to cut GHG emissions, and on August 13, 2020, the EPA released rules rolling back standards to control methane and volatile organic compound emissions from new oil and gas facilities. In early 2021, the Biden administration directed the EPA to publish a proposed rule suspending, revising, or rescinding certain of these rules, which was finalized in December 2023. However, the current administration is delaying these requirements limiting methane emissions and is considering repealing the measure altogether. Further, in February 2026, the EPA announced that it was rescinding its 2009 Greenhouse Gas Endangerment Finding. Therefore, it is unclear how such environmental regulations could affect our operations.

***Vessel Security Regulations***

Since the terrorist attacks of September 11, 2001 in the United States, there have been a variety of initiatives intended to enhance vessel security such as the MTSA. To implement certain portions of the MTSA, the USCG issued regulations requiring the implementation of certain security requirements aboard vessels operating in waters subject to the jurisdiction of the United States and at certain ports and facilities, some of which are regulated by the EPA.

Similarly, Chapter XI-2 of the SOLAS Convention imposes detailed security obligations on vessels and port authorities and mandates compliance with the ISPS Code. The ISPS Code is designed to enhance the security of ports and ships against terrorism. To trade internationally, a vessel must attain an International Ship Security Certificate, or ISSC, from a recognized security organization approved by the vessel's flag state. Ships operating without a valid certificate may be detained, expelled from, or refused entry at port until they obtain an ISSC.

The USCG regulations, intended to align with international maritime security standards, exempt non-U.S. vessels from MTSA vessel security measures, provided such vessels have on board a valid ISSC that attests to the vessel's compliance with the SOLAS Convention security requirements and the ISPS Code. Future security measures could have a significant financial impact on us. We intend to comply with the various security measures addressed by MTSA, the SOLAS Convention and the ISPS Code.

The cost of vessel security measures has also been affected by the escalation in the frequency of acts of piracy against ships, notably off the coast of Somalia, including the Gulf of Aden, Arabian Sea area and West Africa area. Substantial loss of revenue and other costs may be incurred as a result of detention of a vessel or additional security measures, and the risk of uninsured losses could significantly affect our business. Costs are incurred in taking additional security measures in accordance with Best Management Practices to Deter Piracy, notably those contained in the BMP5 industry standard.

***Inspection by Flag administration and Classification Societies***

The hull and machinery of every commercial vessel must be classed by a classification society authorized by its country of registry. The classification society certifies that a vessel is safe and seaworthy in accordance with the applicable rules and regulations of the country of registry of the vessel and SOLAS. Most insurance underwriters make it a condition for insurance coverage and lending that a vessel be certified "in class" by a classification society which is a member of the International Association of Classification Societies, the IACS. The IACS has adopted harmonized Common Structural Rules, or the Rules, which apply to oil tankers and bulk carriers contracted for construction on or after July 1, 2015. The Rules attempt to create a level of consistency between IACS Societies. All of our vessels are certified as being "in class" by all the applicable Classification Societies (*e.g.*, DNV and NKK).

A vessel must undergo annual surveys, intermediate surveys, dry-dockings and special surveys. In lieu of a special survey, a vessel's machinery may be on a continuous survey cycle, under which the machinery would be surveyed periodically over a five-year period. Every vessel is also required to be drydocked every 30 to 36 months for inspection of the underwater parts of the vessel. If any vessel does not maintain its class and/or fails any annual survey, intermediate survey, dry-docking or special survey, the vessel will be unable to carry cargo between ports and will be unemployable and uninsurable which could cause us to be in violation of certain covenants in our loan agreements. Any such inability to carry cargo or be employed, or any such violation of covenants, could have a material adverse impact on our business, results of operations and financial condition.

**Risk of Loss and Liability Insurance**

***General***

The operation of any cargo vessel includes risks such as mechanical failure, physical damage, collision, property loss, cargo loss or damage and business interruption due to political circumstances in foreign countries, piracy incidents, hostilities and labor strikes. In addition, there is always an inherent possibility of marine disaster, including oil spills and other environmental mishaps, and the liabilities arising from owning and operating vessels in international trade. OPA, which imposes virtually unlimited liability upon shipowners, operators and bareboat charterers of any vessel trading in the exclusive economic zone of the United States for certain oil pollution accidents in the United States, has made liability insurance more expensive for shipowners and operators trading in the United States market. We carry insurance coverage as customary in the shipping industry. However, not all risks can be insured, specific claims may be rejected, and we might not be always able to obtain adequate insurance coverage at reasonable rates.

***Hull and Machinery Insurance***

We procure hull and machinery insurance, protection and indemnity insurance, which includes environmental damage and pollution insurance and war risk insurance and freight, demurrage and defense insurance for our fleet. We generally do not maintain insurance against loss of hire (except for certain charters for which we consider it appropriate), which covers business interruptions that result in the loss of use of a vessel.

***Protection and Indemnity Insurance***

Protection and indemnity insurance is provided by mutual protection and indemnity associations, or P&I Associations, and covers our third-party liabilities in connection with our shipping activities. This includes third-party liability and other related expenses of injury or death of crew, passengers and other third parties, loss or damage to cargo, claims arising from collisions with other vessels, damage to other third-party property, pollution arising from oil or other substances, and salvage, towing and other related costs, including wreck removal. Protection and indemnity insurance is a form of mutual indemnity insurance, extended by protection and indemnity mutual associations, or "clubs."

Our current protection and indemnity insurance coverage for pollution is $1.0 billion per vessel per incident. The 12 P&I Associations that comprise the International Group insure approximately 90% of the world's commercial tonnage and have entered into a pooling agreement to reinsure each association's liabilities. The International Group's website states that the Pool provides a mechanism for sharing all claims in excess of U.S. $10.0 million up to, currently, approximately U.S. $3.1 billion. As a member of a P&I Association, which is a member of the International Group, we are subject to calls payable to the associations based on our claim records as well as the claim records of all other members of the individual associations and members of the shipping pool of P&I Associations comprising the International Group.

***Exchange Controls***

Under Marshall Islands law, there are currently no restrictions on the export or import of capital, including foreign exchange controls or restrictions that affect the remittance of dividends, interest or other payments to non-resident holders of shares of our common stock.

**C. Organizational Structure**

We were incorporated under the laws of the Republic of the Marshall Islands on March 23, 2015. As of March 23, 2026, we own the vessels in our fleet through four separate wholly-owned subsidiaries and two 60% owned subsidiary that are each incorporated in the Republic of Marshall Islands.

The following is a list of our subsidiaries:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Company** | **Country of Incorporation** | **Principal Activities** | **Ownership** |
| SECONDONE CORPORATION LTD\* | Marshall Islands | Non-operating subsidiary | 100% |
| THIRDONE CORPORATION LTD.\* | Marshall Islands | Non-operating subsidiary | 100% |
| FOURTHONE CORPORATION LTD.\* | Malta | Non-operating subsidiary | 100% |
| SIXTHONE CORP. \* | Marshall Islands | Non-operating subsidiary | 100% |
| SEVENTHONE CORP. | Marshall Islands | Ship ownership and operations | 100% |
| EIGHTHONE CORP. \* | Marshall Islands | Ship ownership and operations | 100% |
| TENTHONE CORP. | Marshall Islands | Ship ownership and operations | 100% |
| ELEVENTHONE CORP. | Marshall Islands | Ship ownership and operations | 100% |
| TWELFTHONE CORP | Marshall Islands | Ship ownership and operations | 100% |
| MARITIME TECHNOLOGIES CORP. | Delaware | Non-operating subsidiary | 100% |
| DRYKON MARITIME INC. | Marshall Islands | Non-operating subsidiary | 60% |
| DRYONE CORP. | Marshall Islands | Ship ownership and operations | 60% |
| DRYTWO CORP. | Marshall Islands | Ship ownership and operations | 100% |
| ACCUSHIP MARITIME LTD | Marshall Islands | Non-operating subsidiary | 60% |
| DRYTHREE CORP. | Marshall Islands | Ship ownership and operations | 60% |
| DRYFOUR CORP. | Marshall Islands | Ship ownership and operations | 100% |

---

*\* Sixthone Corp., Secondone Corporation Ltd., Thirdone Corporation Ltd., Fourthone Corporation Ltd., and Eighthone Corp. were the respective vessel-owning subsidiaries of Pyxis Delta, Northsea Alpha, Northsea Beta, Pyxis Malou and Pyxis Epsilon which were sold to unaffiliated third parties on January 13, 2020, January 28, 2022, March 1, 2022, March 23, 2023 and December 15, 2023, respectively. As of December 31, 2025, these subsidiaries had no material assets, liabilities or contingencies.*

**D. Property, Plants and Equipment**

Other than our vessels, we do not own any material property. Maritime, our affiliated ship management company, provides office space to us in part of Maritime's offices in Maroussi, Greece in connection with the administrative services provided to us under the terms of the Head Management Agreement.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

Not applicable.

**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

As of March 23, 2026, our fleet consisted of three MRs, *Pyxis Lamda*, *Pyxis Theta* and *Pyxis Karteria* and three dry-bulk carriers, *Konkar Ormi*, an eco-Ultramax, *Konkar Asteri and Konkar Venture* both eco-Kamsarmaxes. During the first quarter of 2024, we took delivery, from an unaffiliated third party, of an 82,013 dwt dry-bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding. The vessel has been named the *Konkar Asteri* and commenced commercial operations on February 29, 2024. Further, at the end of the second quarter of 2024, the Company agreed to enter into an operating joint venture agreement to acquire an 82,099 dwt dry-bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding, named the *Konkar Venture*, a sister-ship of our *Konkar Asteri*. The Company owns 60% of the ship owning company of *Konkar Venture* and a company related to Mr. Valentios Valentis, our Chairman and CEO, owns the remaining 40%.

The ongoing Russian-Ukrainian war and more recently, the war between the U.S. and Israel, and Iran have created further uncertainty for the global economic outlook which could affect the demand for and supply of refined petroleum products, including transportation, and to some extent, certain dry-bulk cargoes. Crude oil and bunker fuel have recently shown great volatility with spiking prices due to major armed wars, while prices of many dry-bulk commodities have increased significantly due to geo-political events, including trade restrictions, sanctions and tariffs, and tight monetary policies of many central banks, leading to inflationary pressures and supply chain disruptions. In addition, certain officers on our vessels are Russian and Ukrainian nationals whose continued employment with ITM may be in question, and potentially impact the operation of our vessels. To date, no disruption to our operations has occurred due to the Russian-Ukrainian war; however, one on our tankers, the *Pyxis Karteria*, is currently anchored in the declared war zone of the Persian Gulf. Consequently, our voyage and vessel operating costs could rise materially and negatively impact our profitability. See "Item 3. Key Information – D. Risk Factors – *Our operations inside and outside of the United States expose us to global risks, such as political instability, terrorist or other attacks, privacy, war, international hostilities, global public health concerns and economic sanctions restrictions, which may affect the seaborne transportation industry, and adversely affect our business*".

*This section is a discussion of our financial condition and results of operations as of and for the years ended December 31, 2024 and 2025. You should read the following discussion and analysis together with our financial statements and related notes included elsewhere in this Annual Report. This discussion includes forward-looking statements which are subject to risks and uncertainties that could cause actual events or conditions to differ materially from those currently anticipated, expressed or implied by such forward-looking statements. For a discussion of some of those risks and uncertainties, please read the section entitled "Forward-Looking Statements" and "Item 3. Key Information – D. Risk Factors."*

**Important Financial and Operational Terms**

We use a variety of financial and operational terms and concepts. These include the following:

***Voyage Revenues, net***

We generate revenues by chartering our vessels for the transportation of petroleum products and other liquid bulk items, such as organic chemicals, and bulk commodities. Revenues are affected primarily by the number of vessels in our fleet, the number of voyage days employed and the amount of daily charter hire earned under vessels' charters. These factors, in turn, can be affected by a number of decisions by us, including the amount of time spent positioning a vessel for charter, dry-dockings, repairs, maintenance and upgrading, as well as the age, condition and specifications of our vessel and supply and demand factors in the product tanker market. At December 31, 2025, we employed all of our vessels on short- to medium-term time charters. Revenues from time charter agreements providing for varying daily rates are accounted as operating leases and thus are recognized on a straight line basis over the term of the time charter as service is performed. Revenue under spot voyage charters is recognized from loading of the current spot charter to discharge of the current spot charter as discussed below. Vessels operating on time charters provide more predictable cash flows but can yield lower profit margins than vessels operating in the spot market during periods characterized by favorable market conditions. The vessel owner generally pays commissions on both types of charters on the gross charter rate.

We assess our contracts with charterers and conclude that each spot voyage charter contains a single performance obligation, which is to provide the charterer with a transportation service over the contractual period. We recognize voyage revenues over time, as the charterer simultaneously receives and consumes the benefits of our performance as the transportation service is provided. Demurrage income represents payments by a charterer to a vessel owner when loading or discharging time exceeds the stipulated time under a charter party. We evaluate demurrage as variable consideration and, when applicable, estimate amounts expected to be earned, net of address commission. Any estimated demurrage is recognized over the period of the relevant charter as the performance obligation is satisfied, with subsequent changes in estimates recognized as adjustments to revenue when they occur.

Under a spot charter, we incur and pay for certain voyage expenses, primarily consisting of brokerage commissions, port and canal costs and bunkers consumption, during the spot charter (load-to-discharge) and during the ballast voyage (date of previous discharge to loading, assuming a new charter has been agreed before the completion of the previous spot charter). Brokerage commissions are deferred and amortized over the related voyage period in a charter to the extent revenue has been deferred since commissions are earned as revenues are earned. Under ASC 606 and after implementation of ASC 340-40 "Other assets and deferred costs" for contract costs, incremental costs of obtaining a contract with a customer and contract fulfillment costs, should be capitalized and amortized as the performance obligation is satisfied, if certain criteria are met. We have assessed the guidance and concluded that voyage costs during the ballast voyage represented costs to fulfil a contract which give rise to an asset and should be capitalized and amortized over the spot charter, consistent with the recognition of voyage revenues from spot charter from load-to-discharge, while voyage costs incurred during the spot charter should be expensed as incurred. With respect to incremental costs, we have selected to adopt the practical expedient in the guidance and any costs to obtain a contract will be expensed as incurred (for our spot voyage charters that do not exceed one year). Vessel operating expenses are expensed as incurred.

In addition, pursuant to this standard, and the Leases standard discussed below, we present Revenues, net of address commissions. Address commissions represent a discount provided directly to the charterers based on a fixed percentage of the agreed upon charter. Since address commissions represent a discount (sales incentive) on services rendered by us and no identifiable benefit is received in exchange for the consideration provided to the charterer, these commissions are presented as a reduction of revenue in the accompanying audited Consolidated Statements of Comprehensive Income included elsewhere herein.

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, in accordance with the optional exception in ASC 606.

***Time Charters***

A time charter is a contract for the use of a vessel for a specific period of time during which the charterer pays substantially all of the voyage expenses, including port and canal charges and the cost of bunker (fuel oil), but the vessel owner pays vessel operating expenses, including the cost of crewing, insuring, repairing and maintaining the vessel, the costs of spares and consumable stores and tonnage taxes. Time charter rates are usually set at fixed rates during the term of the charter. Prevailing time charter rates fluctuate on a seasonal and on a year-to-year basis and, as a result, when employment is being sought for a vessel with an expiring or terminated time charter, the prevailing time charter rates achievable in the time charter market may be substantially higher or lower than the expiring or terminated time charter rate. Fluctuations in time charter rates are influenced by changes in spot charter rates, which are in turn influenced by a number of factors, including vessel supply and demand. The main factors that could increase total vessel operating expenses are crew salaries, insurance premiums, spare parts orders, repairs that are not covered under insurance policies and lubricant prices.

***Spot Voyage Charters***

Generally, a spot charter refers to a contract to carry a specific cargo for a single voyage, which commonly lasts from several days up to three months. Spot voyage charters typically involve the carriage of a specific amount and type of cargo on a load-port to discharge-port basis, subject to various cargo handling terms, and the vessel owner is paid on a per-ton basis. Under a spot charter, the vessel owner is responsible for the payment of all expenses including its capital costs, voyage expenses (such as port, canal and bunker costs) and vessel operating expenses. Fluctuations in spot charter rates are caused by imbalances in the availability of cargoes for shipment and the number of vessels available at any given time to transport these cargoes at a given port.

***Voyage Related Costs and Commissions***

We incur voyage related costs for our vessels operating under spot voyage charters, which mainly include port and canal charges and bunker expenses. Port and canal charges and bunker expenses primarily increase in periods during which vessels are employed on spot voyage charters because these expenses are for the account of the vessel owner. Brokerage commissions payable by the owner, if any, depend on a number of factors, including, among other things, the number of shipbrokers involved in arranging the charter and the amount of commissions charged by brokers related to the charterer. Such commissions are deferred and amortized over the related voyage period in a charter to the extent revenue has been deferred since commissions are earned as revenues are earned.

***Vessel Operating Expenses***

We incur vessel operating expenses for our vessels operating under time and spot voyage charters. Vessel operating expenses primarily consist of crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses necessary for the operation of the vessel. All vessel operating expenses are expensed as incurred.

***General and Administrative Expenses***

The primary components of general and administrative expenses consist of the annual fee payable to Maritime for the administrative services under our Head Management Agreement, which includes the services of our senior executive officers, and the expenses associated with being a public company. Such public company expenses include the costs of preparing public reporting documents, legal and accounting costs, including costs of legal and accounting professionals and staff, and costs related to compliance with the rules, regulations and requirements of the SEC, the rules of Nasdaq, Board of Directors' compensation and investor relations.

***Management Fees***

We pay management fees to Maritime, Konkar Agencies and ITM for commercial and technical management services for our vessels. These services include: obtaining employment for our vessels and managing our relationships with charterers; strategic management services; technical management services, which include managing day-to-day vessel operations, ensuring regulatory and classification society compliance, arranging our hire of qualified officers and crew, arranging and supervising dry-docking and repairs and arranging insurance for vessels; and providing shore-side personnel who carry out the management functions described above. As part of their ship management services, they provide us with supervision services for new construction of vessels; these costs are capitalized as part of the total delivered cost of the vessel.

***Depreciation***

We depreciate the cost of our vessels after deducting the estimated residual value, on a straight-line basis over the expected useful life of each vessel, which is estimated to be 25 years from the date of initial delivery from the shipyard. We estimate the residual values of our vessels to be $340 per lightweight ton.

***Special Survey and Dry-docking***

We are obliged to periodically dry-dock each of our vessels for inspection, and to make significant modifications to comply with industry certification or governmental requirements. Generally, each vessel is dry-docked every 30 to 60 months for scheduled inspections, depending on its age. The capitalized costs of dry-dockings for a given vessel are amortized on a straight-line basis to the next scheduled dry-docking of the vessel.

***Interest and Finance Costs***

Interest and finance costs consist primarily of interest expense on our secured vessel debt and other borrowings, including the impact of variable interest rates, as well as the amortization of deferred financing costs and other financing-related fees and bank charges. Substantially all of our outstanding debt bears interest at a variable rate linked to SOFR (plus an applicable margin). From time to time, we may use financial hedging instruments to manage our exposure to changes in interest rates. As of December 31, 2025, we had no outstanding interest rate hedging instruments.

**Key Financial and Operating Measures**

In evaluating our financial condition, we focus on the above financial and operating measures as well as fleet and vessel type for utilization, time charter equivalent rates and daily operating expenses to assess our operating performance. We also monitor our cash position and outstanding debt to assess short-term liquidity and our ability to finance further fleet expansion. Discussions about possible acquisitions or sales of existing vessels are based on our financial and operational criteria which depend on the state of the charter market, availability of vessel investments, employment opportunities, anticipated dry-docking costs and general economic prospects.

We believe that the important factors to consider in analyzing future results of operations and trends in future periods include the following:

● charter rates, periods of charter hire and any revenues we may derive from commercial arrangements, including pools, if and when applicable;

● vessel operating expenses and voyage related costs and commissions;

● depreciation and amortization expenses, which are a function of the cost of our vessels, significant vessel maintenance or improvement costs, our vessels' estimated useful lives and estimated residual values;

● financing costs related to our indebtedness, including hedging of interest rate risk;

● costs of being a public reporting company, including general and administrative expenses, compliance, accounting and legal costs and regulatory expenses; and

● To a lesser extent, fluctuations in foreign exchange rates, as our revenues are in U.S. dollars while certain expenses may be incurred in other currencies.

Revenues from time charters, and to the extent the Company enters into any in the future, bareboat charters, are stable over the duration of the charter, provided there are no unexpected or periodic off-hire periods and no performance claims from the charterer or charterer defaults. Revenues from spot voyage charters fluctuate based on the hire rate in effect at the time of the charter and may vary further depending on the terms of any other commercial arrangements the Company may enter into from time to time.

Recent accounting pronouncements are discussed in Note 2 of the consolidated financial statements contained within this Annual Report.

**A. Operating Results**

At December 31, 2025, we employed our six vessels in our fleet on short- to medium-term time charters. Our vessels are available to operate the entire year, except for scheduled special surveys and dry-dockings. The increased time charter trading activity for our vessels resulted in a lower number of non-operating days per year, which represented the average time spent positioning our vessels. If a vessel undergoes a scheduled intermediate survey, or special survey with BWTS installation, the estimated duration is 5 or 25 days, respectively.

The break-out of revenue by spot and time charters for the years ended December 31, 2024 and 2025 is reflected below (in thousands of U.S. dollars):

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| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2025** |
| Revenues derived from spot voyage charters, net | $19769 | $2041 |
| Revenues derived from time charters, net | 31773 | 36953 |
| **Revenues, net** | $**51542** | $**38994** |

---

The following table reflects our fleet's ownership days, available days, operating days, utilization, time charter equivalent ("TCE"), average number of vessels, number of vessels at period end, weighted average age and daily vessel operating expenses in each case, for the years ended December 31, 2024 and 2025.

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| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>**MR vessels Operating Data \*** | **2024** | **2025** |
| Ownership days (1) | 1098 | 1095 |
| Available days (2) | 1098 | 1095 |
| Operating days (3) | 1055 | 1064 |
| Utilization % (4) | 96.1% | 97.2% |
| Daily time charter equivalent rate (5) | $29289 | $21469 |
| Daily vessel operating expenses (6) | $7195 | $7520 |
| Average number of vessels (7) | 3.0 | 3.0 |
| Number of vessels at period end | 3 | 3 |
| Weighted average age of vessels at period end (8) | 10.3 | 11.3 |

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| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Dry-bulk vessels \*** | **2024** | **2025** |
| Ownership days (1) | 873 | 1095 |
| Available days (2) | 873 | 1051 |
| Operating days (3) | 724 | 952 |
| Utilization % (4) | 82.9% | 90.6% |
| Daily time charter equivalent rate (5) | $15353 | $14149 |
| Daily vessel operating expenses (6) | $6240 | $5486 |
| Average number of vessels (7) | 2.4 | 3.0 |
| Number of vessels at period end | 3 | 3 |
| Weighted average age of vessels at period end (8) | 9.2 | 10.2 |

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| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>**Total fleet \*** | **2024** | **2025** |
| Ownership days (1) | 1971 | 2190 |
| Available days (2) | 1971 | 2146 |
| Operating days (3) | 1779 | 2016 |
| Utilization % (4) | 90.3% | 93.9% |
| Daily time charter equivalent rate (5) | $23617 | $18012 |
| Daily vessel operating expenses (6) | $6772 | $6503 |
| Average number of vessels (7) | 5.4 | 6.0 |
| Number of vessels at period end | 6 | 6 |
| Weighted average age of vessels at period end (8) | 9.6 | 10.6 |

---

*(1)* *Ownership days are the aggregate number of days in a period during which we owned each of the vessels in our fleet. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues generated and the amount of expenses incurred during the respective period.* 

*(2)* *Available days are the number of ownership days in a period, less the aggregate number of days that our vessels were off-hire due to scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and intermediate dry-dockings and the aggregate number of days that we spent positioning our vessels during the respective period for such repairs, upgrades and surveys. Available days measures the aggregate number of days in a period during which vessels should be capable of generating revenues.* 

*(3)* *Operating days are the number of available days in a period, less the aggregate number of days that our vessels were off-hire or out of service due to any reason, including technical breakdowns and other unforeseen circumstances. Operating days measure the aggregate number of days in a period during which vessels actually generate revenues.* 

*(4)* *We calculate fleet utilization by dividing the number of operating days during a period by the number of available days during the same period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys and intermediate dry-dockings or vessel positioning for such events.* 

*(5)* *Daily TCE rate is a standard shipping industry performance measure of the average daily revenue performance of a vessel on a per voyage basis. We include TCE rate, a non-GAAP measure, as it provides additional meaningful information in conjunction with revenues, net, the most directly comparable GAAP measure. We utilize TCE because we believe it is a meaningful measure to compare period-to-period changes in our performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters and bareboat charters) under which our vessels may be employed between the periods. Our management also utilizes TCE to assist in making decisions regarding the employment of the vessels. We also believe that TCE provides useful information to investors because it reflects the revenue we retain from voyages after deducting voyage-related costs and commissions, thereby facilitating comparisons of our revenue performance across periods and against other companies, irrespective of differences in charter types, trading patterns and voyage expenses. We believe that our method of calculating TCE is consistent with industry standards and is calculated by dividing voyage revenues after deducting voyage expenses, including commissions, by operating days for the relevant period. Voyage expenses primarily consist of brokerage commissions, port, canal and bunker costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract.* 

*(6)* *Daily vessel operating expenses are direct operating expenses such as crewing, provisions, repairs and maintenance, insurance, deck and engine stores, lubricating oils and tonnage tax divided by ownership days for the relevant period.* 

*(7)* *Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was part of our fleet during such period divided by the number of calendar days in the period.* 

*(8)* *Weighted average age of the fleet is the sum of the ages of our vessels, weighted by the dwt of each vessel on the total fleet dwt.* 

The following table reflects the calculation and reconciliation of our daily TCE rates for our vessels and the average number of vessels by segment and in the aggregate for the years ended December 31, 2024 and 2025 (in thousands of U.S. dollars, except for total operating days and daily TCE rates):

---

| | | |
|:---|:---|:---|
| **MR fleet** | **Year ended December 31,** *<sup>1</sup>*** | **Year ended December 31,** *<sup>1</sup>*** |
| *(Amounts in thousands of U.S. dollars, except for total operating days and for daily TCE rates which are presented in U.S. dollars per day)* | **2024** | **2025** |
| MR Revenues, net | $38400 | $24123 |
| MR Voyage related costs and commissions *<sup>2</sup>* | (7500) | (1280) |
| MR Time Charter Equivalent revenues | $30900 | $22843 |
| MR Total operating days | 1055 | 1064 |
| MR Daily Time Charter Equivalent rate | 29289 | 21469 |
| Average number of MR vessels | 3.0 | 3.0 |

---

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| | | |
|:---|:---|:---|
| **Dry-bulk fleet** | **Year ended December 31,** *<sup>1,3</sup>*** | **Year ended December 31,** *<sup>1,3</sup>*** |
| *(Amounts in thousands of U.S. dollars, except for total operating days and for daily TCE rates which are presented in U.S. dollars per day)* | **2024** | **2025** |
| Dry-bulk Revenues, net | $13143 | $14871 |
| Dry-bulk Voyage related costs and commissions | (2027) | (1401) |
| Dry-bulk Time Charter Equivalent revenues | $11116 | $13470 |
| Dry-bulk Total operating days | 724 | 952 |
| Dry-bulk Daily Time Charter Equivalent rate | 15353 | 14149 |
| Average number of Dry-bulk vessels | 2.4 | 3.0 |

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| | | |
|:---|:---|:---|
| **Total fleet** | **Year ended December 31,** *<sup>1,3</sup>*** | **Year ended December 31,** *<sup>1,3</sup>*** |
| *(Amounts in thousands of U.S. dollars, except for total operating days and for daily TCE rates which are presented in U.S. dollars per day)* | **2024** | **2025** |
| Revenues, net | $51542 | $38994 |
| Voyage related costs and commissions*<sup>, 2</sup>* | (9527) | (2681) |
| Time Charter Equivalent revenues | $42015 | $36313 |
| Total operating days | 1779 | 2016 |
| Daily Time Charter Equivalent rate | 23617 | 18012 |
| Average number of vessels | 5.4 | 6.0 |

---

*<sup>1</sup> Subject to rounding.*

*<sup>2</sup> Voyage related costs and commissions of $18 thousand attributable to sold vessels have been excluded for the year ended December 31, 2025.*

*<sup>3</sup> a) The dry-bulk Konkar Asteri was delivered on February 15, 2024.*

*b) The dry-bulk Konkar Venture was delivered on June 28, 2024.*

For the twelve months ended December 31, 2025, we reported revenues, net of $39.0 million, a decrease of $12.5 million, or 24.3%, from $51.5 million in the comparable period of 2024. Our net income attributable to Pyxis Tankers Inc. was $2.0 million, compared to $12.9 million for the same period in 2024. Net income per common share was $0.19 basic and diluted, compared to $0.91 basic and diluted, for the same period in 2024.

During the year of 2025, our MRs were contracted for 1,003 days or 92% of their ownership days under short- to medium-term time charters, with the remainder employed in the spot voyage market, including 31 idle days. During the year ended December 31, 2025, we generated a lower MR daily TCE rate of $21,469 and higher MR fleet utilization of 97.2%, compared to a daily MR TCE rate of $29,289 and utilization of 96.1% in the same period in 2024. Also, during the same period, our bulkers were contracted under short-term time charters resulting in a lower overall dry-bulk average daily TCE rate of $14,149 and higher utilization of 90.6%, compared to a daily TCE rate of $15,353 and utilization of 82.9% in the same period in 2024. We operated an average of 3 MR tankers in both years, and 3 and 2.4 dry-bulk carriers in 2025 and 2024, respectively.

**Recent Daily Fleet Data:**

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| | | | |
|:---|:---|:---|:---|
| *(Amounts in U.S. dollars per day)* |  | **Year ended December 31,** | **Year ended December 31,** |
|  |  | **2024** | **2025** |
| **Tanker Fleet:** |  |  |  |
| **Eco-Efficient MR2** |  |  |  |
|  | Daily TCE : | 29289 | 21469 |
|  | Opex per day: | 7195 | 7520 |
|  | Utilization % : | 96.1% | 97.2% |
| **Average number of MR vessels** |  | 3.0 | 3.0 |
| **Dry-bulk Fleet:** |  |  |  |
|  | Daily TCE : | 15353 | 14149 |
|  | Opex per day: | 6240 | 5486 |
|  | Utilization % : | 82.9% | 90.6% |
| **Average number of Dry-bulk vessels \*** |  | 2.4 | 3.0 |
| **Total Fleet:** |  |  |  |
|  | Daily TCE : | 23617 | 18012 |
|  | Opex per day: | 6772 | 6503 |
|  | Utilization % : | 90.3% | 93.9% |
| **Average number of vessels \*** |  | 5.4 | 6.0 |

---

As of March 23, 2026, our fleet consisted of three eco-efficient MR2 tankers, *Pyxis Lamda*, *Pyxis Theta*, *Pyxis Karteria*, and three dry-bulk vessels, *Konkar Ormi*, *Konkar Asteri* and *Konkar Venture*. During 2024 and 2025, the vessels in our fleet were employed under time and spot voyage charters.

---

| | | |
|:---|:---|:---|
| *\** | *a)* | *The dry-bulk Konkar Asteri was delivered to our joint venture on February 15, 2024.* |
|  | *b)* | *The dry-bulk Konkar Venture was delivered to our joint venture on June 28, 2024.* |

---

**Consolidated Statements of Comprehensive Income for the Fiscal Years Ended December 31, 2024 and 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended <br> December 31,** | **Year ended <br> December 31,** | **Change $** | **%** |
| *(Amounts in thousands of U.S. dollars, except per share data)* | **2024** | **2025** |  |  |
| Revenues, net | $51542 | $38994 | (12548) | (24.3)% |
| Voyage related costs and commissions | (9527) | (2699) | 6828 | (71.7)% |
| Vessel operating expenses | (13367) | (14243) | (876) | 6.6% |
| General and administrative expenses | (2996) | (6096) | (3100) | 103.5% |
| Management fees, related parties | (1177) | (1384) | (207) | 17.6% |
| Management fees, other | (503) | (503) |  | 0.0% |
| Amortization of special survey costs | (382) | (599) | (217) | 56.8% |
| Depreciation | (6904) | (7574) | (670) | 9.7% |
| Allowance reduction for credit losses | 38 | 22 | (16) | (42.1)% |
| **Operating income** | **16724** | **5918** | **(10806)** | **(64.6)%** |
| **Other expenses, net:** |  |  |  |  |
| Interest and finance costs | (6529) | (5775) | 754 | (11.5)% |
| Interest income | 2312 | 1792 | (520) | (22.5)% |
| **Total other expenses, net** | **(4217)** | **(3983)** | **234** | **(5.5)%** |
| **Net income** | $**12507** | $**1935** | **(10572)** | **(84.5)%** |
| Loss attributable to non-controlling interest | 361 | 59 | (302) | (83.7)% |
| **Net income attributable to Pyxis Tankers Inc.** | $**12868** | $**1994** | **(10874)** | **(84.5)%** |
| Dividend Series A Convertible Preferred Stock | (562) |  | 562 | (100.0)% |
| Deemed dividend on redeemed Series A Convertible Preferred Stock | (2682) |  | 2682 | (100.0)% |
| **Net income attributable to common shareholders** | $**9624** | $**1994** | **(7630)** | **(79.3)%** |
| Net income per common share, basic | $0.91 | $0.19 | (0.72) | (79.1)% |
| Net income per common share, diluted | $0.91 | $0.19 | (0.72) | (79.1)% |
| Weighted average number of common shares, basic | 10524511 | 10422154 | (102357) | (1.0)% |
| Weighted average number of common shares, diluted | 10524511 | 10422154 | (102357) | (1.0)% |

---

***Revenues, net:*** Revenues, net were $39.0 million for the twelve months ended December 31, 2025, a decrease of $12.5 million, or 24.3%, compared to $51.5 million in the same period of 2024. The decline primarily reflected lower charter rates for both sectors. During the twelve months of 2025, our MR average daily TCE rate was $21,469, a $7,820 per day decrease from $29,289 in the comparable robust market of 2024 primarily due to lower charter rates, partially offset by slightly higher operating days for the MR fleet of 1,064 days in 2025 compared to 1,055 days in the same period of 2024 that contribute to revenue generation from this segment. In contrast, revenues from our dry-bulk vessels increased compared to previous year, as higher ownership days and improved utilization offset the impact of lower market rates. During the twelve months of 2025, our dry-bulk average daily TCE rate was $14,149, a $1,204 per day decline from $15,353 in the corresponding period of 2024; however, dry-bulk utilization increased to 90.6% from 82.9%, and the expansion of our dry-bulk fleet following the acquisitions of *Konkar Asteri* and *Konkar Venture* in February and June 2024, respectively, led to higher dry-bulk revenues. Total fleet ownership days in the twelve months of 2025 were 2,190, representing an average of 6.0 vessels, compared to 1,971 ownership days, or an average of 5.4 vessels, in the same period of 2024.

 ****

***Voyage related costs and commissions*:** Voyage related costs and commissions of $2.7 million in the twelve months ended December 31, 2025, represented a decrease of $6.8 million, or 71.7%, from $9.5 million in the same period of 2024. This decline was primarily driven by the significantly lower spot voyage employment of our MRs of 92 days, including idle days, in the twelve-month period in 2025 compared to 472 days in the same period of 2024, as well as higher utilization of our MR tankers from 96.1% in the twelve-month period in 2024 compared to 97.2% in the same period of 2025 and bulkers from 82.9% in the twelve-month period in 2024 to 90.6% in the same period of 2025. Under spot voyage charters, substantially all voyage expenses are typically borne by us rather than the charterer, therefore, a lower level of spot voyage charter employment generally results in lower voyage related costs.

 ****

 ****

***Vessel operating expenses*:** Vessel operating expenses of $14.2 million for the year ended December 31, 2025, represented an increase of $0.9 million, or 6.6%, from $13.4 million in the same period of 2024, primarily reflecting the expansion of our dry-bulk fleet in 2024, which increased vessel ownership days from 1,971 for the year ended in December 31, 2024 to 2,190 in 2025. On a total fleet basis, vessel operating expenses per day decreased to $6,503 from $6,772 in the corresponding period of 2024, mainly due to lower Opex per day for our dry-bulk vessels, partially offset by higher Opex per day for our MR tankers.

 ****

***General and administrative expenses*:** General and administrative expenses were $6.1 million for the year ended December 31, 2025, representing an increase of $3.1 million, compared to $3.0 million in the same period of 2024. The increase primarily reflected a one-time bonus of $3.0 million paid to Maritime in 2025 in respect of performance in prior years, which was approved in June 2025, and no commitment to pay such bonus existed during the year ended December 31, 2024. Other general and administrative expenses were relatively consistent with the prior year period. Administrative fees payable to Maritime in 2025 also reflected inflationary cost pressures, including the 2024 inflation adjustment rate of 2.74% in Greece.

 ****

***Management fees:*** For the year ended December 31, 2025, management fees charged by Maritime, Konkar Agencies and ITM, were $1.9 million, an increase of $0.2 million compared to the same period of 2024. The increase primarily reflected the further expansion of our fleet in the dry-bulk sector as well as inflationary cost pressures, including the application of the 2024 Greek inflation adjustment rate of 2.74% to the fees charged by the two affiliated ship managers.

 ****

***Amortization of special survey costs*:** Amortization of special survey costs of $0.6 million for the year ended December 31, 2025, represented an increase of $0.2 million compared to the same period of 2024. This increase primarily reflected the higher level of capitalized dry-docking and special survey expenditures for our dry-bulk vessels following the second special surveys of *Konkar Venture* and *Konkar Asteri*, which were completed in spring 2025, resulting in a higher amortizable balance and, consequently, a higher amortization charge for the period.

***Depreciation*:** Depreciation of $7.6 million for the year ended December 31, 2025, represented an increase of $0.7 million, or 9.7%, compared to $6.9 million in 2024. The increase reflected additional depreciation related to the acquired bulkers *Konkar Asteri* and *Konkar Venture*.

 ****

***Interest and finance costs:*** Interest and finance costs for the year ended December 31, 2025, were $5.8 million, representing a decrease of $0.7 million, or 11.5%, compared to the same period of 2024. This reduction was primarily driven by lower average debt levels and lower SOFR based interest rates paid on all the floating rate bank debt, as well as amendments made in 2024 to the loan agreements relating to the *Pyxis Lamda* and the *Pyxis Theta* which reduced interest rate margins. Further, in December, 2025, we refinanced the secured loans for these vessels with the same bank to extend debt maturities, modify quarterly principal amortization and reduce interest rate margins.

***Interest income:*** Interest income of $1.8 million during the year ended December 31, 2025, decreased by $0.5 million compared to the same period in 2024, due to lower interest rates on deposits, partially offset by a higher level of time deposit placements during the twelve months ended December 31, 2025 compared to the corresponding period in 2024.

***Loss attributable to non-controlling interest:*** Loss attributable to the NCI for the year ended December 31, 2025, was $0.1 million, compared to loss attributable to the NCI of $0.4 million for the same period of 2024. These amounts reflected the share of results attributable to the NCI in the joint ventures that own the bulkers *Konkar Ormi* and *Konkar Venture*.

***Year ended December 31, 2024, compared to the year ended December 31, 2023***

For a discussion of our results of operations for 2024 compared with 2023, see Item 5.A. "Operating Results" included in our 2024 Annual Report on Form 20-F (File No. 001-37611), filed with the SEC on March 28, 2025, and incorporated herein by reference (the "Annual Report 2024").

**B. Liquidity and Capital Resources**

*<u>Overview</u>*

Our principal sources of liquidity are cash flows from operations, borrowings of bank debt, proceeds from the selective sale of vessels and the proceeds from further issuances of equity and debt. We expect that our future liquidity requirements will relate primarily to:

● payments of interest and other debt-related expenses and the repayment of principal on our loans;

● our vessel operating expenses, including dry-docking and special survey costs;

● payment of technical and commercial management fees for our daily vessel operations;

● maintenance of cash reserves to provide for contingencies and to adhere to minimum liquidity for loan covenants;

● re-purchase of common shares under our authorized buy-back program; and

● potential vessel acquisitions or other strategic initiatives.

*<u>Offerings</u>*

In October 2020, we completed a public offering of 200,000 units at $25.00 per Unit for gross proceeds of $5.0 million, or the "October 2020 Offering". Each Unit was immediately separable into one 7.75% Series A Convertible Preferred Share and eight detachable warrants to purchase common shares, or the detachable warrants. Net proceeds from the October 2020 Offering were used for general corporate purposes, including working capital and debt repayment. In February 2021, we completed a private placement of 3,571,429 common shares at $7.00 per share for gross proceeds of $25.0 million, and in July 2021, we completed a follow-on public offering of 308,487 Series A Convertible Preferred Shares at $20.00 per share for gross proceeds of $6.17 million. The Series A Convertible Preferred Shares issued in these offerings were fully redeemed in 2024.

On October 13, 2025, the Company's 1,592,465 detachable warrants (formerly Nasdaq Cap Mkts: PXSAW) expired worthless in accordance with their original terms and ceased trading on Nasdaq. No common shares were issued and no cash or non-cash proceeds were received by the Company as a result of their expiration. The expiration had no impact on the Company's share capital or additional paid-in capital.

*<u>Vessel Acquisitions and Corporate Actions</u>*

 

On February 15, 2024, the Company completed the acquisition of an 82,013 dwt dry-bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding. The $26.625 million purchase price of the eco-efficient Kamsarmax was funded by a combination of $14.5 million of secured bank debt and cash on hand. The vessel was named the *Konkar Asteri* and commenced commercial operations on February 29, 2024.

On May 16, 2024, our Board of Directors increased the authorization under our common share repurchase program, which was initially approved on May 11, 2023 for up to $2.0 million, by an incremental $1.0 million under our common share repurchase program, bringing the total authorization to $3.0 million, and extended the program through May 16, 2025. During the year ended December 31, 2024, the Company repurchased 331,558 common shares at an average price of $4.39 per share, excluding brokerage commissions, for an aggregate purchase price of $1.46 million.

On June 28, 2024, we closed our dry-bulk joint venture with an entity related to our Chairman and Chief Executive Officer for the acquisition of an 82,099 dwt eco-efficient Kamsarmax built in 2015 at Jiangsu New Yangzi Shipbuilding. The $30.0 million purchase price for the *Konkar Venture*, which is fitted with a BWTS, was funded by a combination of $16.5 million of secured bank debt, $12.0 million of cash (of which the Company contributed $7.3 million), and the issuance of 267,857 restricted common shares to the related party seller. We own a 60% controlling ownership interest in the joint venture. The *Konkar Venture* is a sister ship to the *Konkar Asteri* and continued its employment under the existing time charter through mid-August 2024.

On January 30, 2025, we fully utilized the remaining availability under our previously authorized $3.0 million common share repurchase program. From January 1, 2025 through January 30, 2025, we repurchased 67,534 common shares in the open market at an average price of $3.91 per share, excluding brokerage commissions, for an aggregate purchase price of $0.264 million. Since summer 2023, we have repurchased an aggregate of 730,683 common shares in the open market at an average cost of $4.03 per share, excluding commissions. As of January 30, 2025, no amounts remained available under the prior repurchase authorization.

On November 19, 2025, our Board of Directors authorized the repurchase of up to $3.0 million of our common shares for a period of up to one year. Repurchases may be made from time to time at our discretion in open market transactions, privately negotiated transactions, accelerated share repurchase programs or a combination of these methods. The actual amount and timing of repurchases are subject to capital availability, market conditions and our determination that repurchases are in the best interests of our shareholders. From November 19, 2025 through December 31, 2025, we repurchased 67,004 common shares in the open market at an average price of $2.95 per share, excluding commissions, for an aggregate purchase price of $0.2 million. This authorization expires in November 2026.

*<u>Financings</u>*

 

On February 15, 2024, in connection with the acquisition of the *Konkar Asteri*, a 2015-built 82,013 dwt dry-bulk carrier, our subsidiary drew down $14.5 million under a secured bank loan facility. The loan is repayable in 20 quarterly installments of $0.3 million each, with the final installment accompanied by a balloon payment of $8.5 million due in February 2029. The loan bears interest at SOFR plus a margin of 2.35% per annum and includes customary covenants, including minimum liquidity and a minimum security cover ratio, or MSC.

On June 28, 2024, in connection with the acquisition of the *Konkar Venture*, a 2015-built 82,099 dwt Kamsarmax dry-bulk carrier, our subsidiary drew down $16.5 million under a secured bank loan facility. The loan is repayable in 20 quarterly installments of $0.315 million each, with the final installment accompanied by a balloon payment of $10.2 million due in June 2029. The loan bears interest at SOFR plus a margin of 2.15% per annum and includes customary covenants, including minimum liquidity and a MSC.

On July 30, 2024, we refinanced the Seventhone Corp. credit facility. The amended loan agreement provides for a five-year amortizing secured bank loan due July 2029, with quarterly principal repayments and an interest rate of SOFR plus a margin of 2.40% (reduced from 3.35%), secured by, among other things, the vessel *Pyxis Theta*. In addition, the same lender reduced the interest margin from 3.15% to 2.40% on the Eleventhone Corp. (*Pyxis Lamda*) credit facility, which matures in December 2026.

On July 30, 2025, we entered into a commitment with an existing bank for a committed acquisition loan facility of up to $45.0 million (the "hunting license") to finance the potential acquisition of up to two modern vessels, consisting of product tankers between 45,000–115,000 dwt and/or dry-bulk carriers between 60,000–85,000 dwt. Advances under this facility of up to 62.5% of a vessel's purchase price may be drawn for up to 18 months after the closing of the Facility, with the remaining purchase consideration funded from cash on hand. Borrowings under the Facility would bear interest at SOFR plus an average margin of 1.90% and would be amortized on a quarterly basis over five years from each drawdown. The Facility would be secured by, among other things, any vessels acquired with its proceeds and would include customary financial and other covenants. We would incur a nominal commitment fee payable to the lender during the drawdown availability period.

On December 17, 2025, we closed the refinancing of existing secured loans with Alpha Bank S.A. for Eleventhone Corp. (*Pyxis Lamda*) and Seventhone Corp. (*Pyxis Theta*) in the amounts of $18.6 million and $14.75 million, respectively. Each amended loan agreement has a five-year maturity and provides for quarterly principal repayments of $0.375 million and $0.450 million, respectively. Both loans bear interest at Term SOFR plus a margin of 1.90%. After repayment of the existing principal balances, the refinancings generated incremental net proceeds of $9.9 million, which we expect to deploy for fleet expansion.

Our weighted average interest rate on our total funded debt for the twelve months ended December 31, 2025 was 6.59%. Our next loan maturity is scheduled for September 2028 with a balloon principal payment of $8.6 million due on the 2015-built *Pyxis Karteria*.

Subsequent to December 31, 2025, on January 26, 2026, we completed amendments to the existing secured loans with Piraeus Bank S.A. for Tenthone Corp. (*Pyxis Karteria*), Dryone Corp. (*Konkar Ormi*) and Drythree Corp. (*Konkar Venture*) relating to aggregate outstanding principal borrowings of $42.1 million. The maturity of each loan was extended by six months and the interest rate was reduced to Term SOFR plus 1.80%, representing a weighted average margin reduction of 58 basis points compared to the prior loan agreements. All other terms and conditions remain in full force and effect.

**Working Capital Position**

Cash and cash equivalents and restricted cash including cash that has been classified as short-term investment in time deposit as of December 31, 2025, amounted to $54.9 million, compared to $39.6 million as of December 31, 2024. We had a working capital surplus of $43.9 million as of December 31, 2025, compared to the working capital surplus of $33.9 million as of December 31, 2024. We define working capital as current assets minus current liabilities.

We expect to rely upon operating cash flows from the employment of our vessels on spot and time charters, long-term borrowings and the proceeds from future equity and debt offerings to fund our liquidity and capital needs and implement our growth plan. We perform regular cash flow projections to evaluate whether we will be in a position to cover our liquidity needs for the next 12-month period and be in compliance with the financial and security collateral cover ratio covenants under our existing debt agreements. In developing estimates of future cash flows, we make assumptions about the vessels' future performance, with assumptions relating to time charter equivalent rates by vessel type, vessels' operating expenses, vessels' capital expenditures, fleet utilization, our management fees, general and administrative expenses and debt service requirements. The assumptions used to develop estimates of future cash flows are based on historical trends as well as future expectations. As of December 31, 2025, we had a working capital surplus of $43.9 million, defined as current assets minus current liabilities. The Company considered such surplus in conjunction with the future market prospects and potential future financings. As of the filing date of the consolidated financial statements, we expect that we will be in a position to cover our liquidity needs for the next 12-month period through the cash generated from the vessels' operations and available cash on hand. We also believe that we will be in compliance with the financial and security collateral cover ratio covenants under our existing debt agreements for the next 12-month period.

Our business is capital intensive and our future success will depend on our ability to maintain a high quality fleet through the acquisition of modern vessels and the sale of older vessels. These acquisitions and dispositions will be principally subject to management's expectation of future market conditions, our ability to acquire and dispose of vessels on favorable terms as well as access to cost-effective capital on reasonable terms.

We do not intend to pay dividends to the holders of our common shares in the near future and expect to retain our cash flows primarily for the payment of vessel operating costs, dry-docking costs, debt service and other obligations, general corporate and administrative expenses, and reinvestment in our business (such as to fund vessel or fleet acquisitions), in each case, as determined by our Board of Directors.

**Consolidated Cash Flows information:**

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| <br>*(Amounts in thousands of U.S. dollars)* | **2024** | **2025** |
| Net cash provided by operating activities | $18846 | $13609 |
| Net cash used in investing activities | (42163) | (1358) |
| Net cash provided by financing activities | 9571 | 2061 |
| **Change in cash and cash equivalents and restricted cash** | $**(13746)** | $**14312** |

---

 

*Operating Activities:* Net cash provided by operating activities was $13.6 million for the year ended December 31, 2025, compared to $18.8 million for the year ended December 31, 2024. The decrease was primarily driven by lower revenues in 2025, partially offset by favorable working capital movements. Aggregate movements in current assets and liabilities during the year ended December 31, 2025 increased cash by $3.0 million, primarily reflecting: (i) an increase in cash from trade accounts receivable, net of $3.1 million, inventories of $1.4 million, and amounts due to related parties of $0.7 million, as well as an increase in cash from hire collected in advance of $0.5 million, partially offset by (ii) a decrease in cash from deferred dry-dock and special survey costs of $1.5 million, trade accounts payable of $0.6 million, and accrued and other liabilities of $0.5 million. In addition, there was a net increase of $0.2 million related to other working capital accounts.

*Investing Activities*: Net cash used in investing activities was $1.4 million for the year ended December 31, 2025, compared to $42.2 million for the year ended December 31, 2024. During 2025, investing cash flows primarily reflected $0.7 million of vessel additions and a net $1.0 million outflow from time deposits (comprised of $32.0 million of time deposit placements, partially offset by $31.0 million of time deposit maturities). These outflows were partially offset by $0.3 million of proceeds from an insurance claim, related to minor damage sustained by the vessel *Konkar Ormi* in May 2024 due to adverse weather conditions in Rio Grande, Brazil.

During the year ended December 31, 2024, net cash used in investing activities was $42.2 million as a result of the acquisitions of the *Konkar Asteri* and the *Konkar Venture*. The *Konkar Asteri* had a purchase price of $26.6 million of which $24.0 million was paid during 2024, and the *Konkar Venture* had a purchase price of $30.0 million which was settled with a $28.5 million cash payment and the issuance of 267,857 restricted common shares to the related party seller. The $21.0 million was included in investing activities, and the remaining amount of $7.5 million was presented as a deemed dividend in financing activities described below. The above outflows were partially offset by a net $3.0 million cash inflow from time deposits (comprised of $19.5 million of time deposit maturities, partially counterbalanced by $22.5 million of time deposit placements). In addition, during the year we made vessel addition prepayments of $0.2 million for the *Konkar Asteri* and the *Konkar Venture*.

 

 

*Financing Activities*: Net cash provided by financing activities was $2.1 million for the year ended December 31, 2025, compared to $9.6 million for the year ended December 31, 2024. During 2025, financing activities primarily reflected $33.4 million in proceeds from long-term debt, including the refinancing of existing secured loans with Alpha Bank S.A. for Eleventhone Corp. (*Pyxis Lamda*) and Seventhone Corp. (*Pyxis Theta*) in the amounts of $18.6 million and $14.75 million, respectively, which were closed on December 17, 2025. Following our evaluation under ASC 470-50, both refinancings were accounted for as modifications. The above was partially offset by $30.7 million of repayments of long-term debt, including repayments of the then-outstanding loan balances refinanced under the above Alpha Bank facilities, $0.5 million of common share repurchases, and $0.1 million of financing costs.

During the year ended December 31, 2024, net cash provided by financing activities was $9.6 million, mainly reflecting an aggregate $31.0 million proceeds from new long – term debt consisting of bank loans of $14.5 million for Drytwo, and $16.5 million for Drythree, secured by the *Konkar Asteri*, and the *Konkar Venture*, respectively. Additionally, Accuship Maritime Ltd. received an initial $5.9 million of equity contributions from its non-controlling interest in the Drythree Joint Venture. The above was offset by debt principal payments of $7.3 million and $10.1 million for the full redemption of the outstanding Series A Convertible Preferred shares. In addition, we incurred financing fees payments of $0.4 million related to the new loan facilities and we paid $0.6 million dividends related to the Series A Preferred Shares prior to their redemption. Further we repurchased 331,558 common shares at an average price of $4.39 per share, excluding brokerage commissions, utilizing $1.5 million under our active repurchase program. Upon the acquisition of the *Konkar Venture* from Eightytwo Corp, an entity controlled by our Chairman and Chief Executive Officer, in a transaction among entities under common control, the Company recognized the $7.5 million excess of the cash consideration over the seller's vessel book value at the transaction date as a deemed dividend, which was allocated to Pyxis Tankers' equity and non-controlling interests' equity in accordance with their respective ownership percentages.

**Indebtedness**

Our vessel-owning subsidiaries, including our joint ventures, as borrowers, entered into loan agreements in connection with the purchase of each of the vessels in our fleet. As of December 31, 2025, our vessel-owning subsidiaries had outstanding borrowings under the following loan agreements:

SEVENTHONE CORP. (which owns *Pyxis Theta*) - Alpha Bank S.A.

On December 17, 2025, Seventhone Corp., refinanced its secured loan with Alpha Bank in an amount of $14.75 million. The amended facility has a five-year maturity, provides for quarterly principal repayments of $0.45 million and bears interest at Term SOFR plus a margin of 1.90% (previously priced at SOFR plus a margin of 2.40%). Standard collateral interests and customary covenants are incorporated in this facility which is secured by, among other things, a first priority mortgage on the *Pyxis Theta*, and includes customary covenants, including minimum liquidity and a minimum security cover, or MSC, ratio. As of December 31, 2024 and December 31, 2025, the outstanding balance was $10.15 million and $14.75 million, respectively. As of December 31, 2025, the outstanding balance was repayable in 20 consecutive quarterly installments of $0.45 million each, with the first installment paid in March 2026, and the last installment will be accompanied by a balloon payment of $5.75 million due in December 2030.

TENTHONE CORP. (which owns *Pyxis Karteria*) - Piraeus Bank S.A.

On March 13, 2023, Tenthone Corp., refinanced its indebtedness with a $15.5 million five-year secured loan from Piraeus Bank. The facility provides for quarterly principal repayments of $0.3 million and bears interest at SOFR plus a margin of 2.70% (subsequently amended to Term SOFR plus a margin of 1.80% effective January 26, 2026). Standard collateral interests and customary covenants are incorporated in this facility which is secured by, among other things, a first priority mortgage on the *Pyxis Karteria*, and includes customary covenants, including minimum liquidity and a MSC ratio. As of December 31, 2024 and December 31, 2025, the outstanding balance was $12.8 million and $11.6 million, respectively. Based on the amended loan agreement with Piraeus Bank, effective January 26, 2026, the outstanding balance as of December 31, 2025, was repayable in 11 consecutive quarterly installments of $0.3 million each, with the first installment paid in March 2026, and the last installment will be accompanied by a balloon payment of $8.3 million due in September 2028. All other terms and conditions remain in full force and effect.

ELEVENTHONE CORP. (which owns *Pyxis Lamda*) - Alpha Bank S.A.

On December 17, 2025, Eleventhone Corp., refinanced its secured loan with Alpha Bank in an amount of $18.6 million. The amended facility has a five-year maturity, provides for quarterly principal repayments of $0.375 million and bears interest at Term SOFR plus a margin of 1.90% (previously priced at SOFR plus a margin of 2.40% following the July 30, 2024 margin reduction). Standard collateral interests and customary covenants are incorporated in this facility which is secured by, among other things, a first priority mortgage on the *Pyxis Lamda*, and includes customary covenants, including minimum liquidity and a MSC ratio. As of December 31, 2024 and December 31, 2025, the outstanding balance of the loan relating to *Pyxis Lamda* was $15.7 million and $18.6 million, respectively. As of December 31, 2025, the outstanding balance was repayable in 20 consecutive quarterly installments of $0.375 million each, with the first installment paid in March 2026, and the last installment will be accompanied by a balloon payment of $11.1 million due in December 2030.

DRYONE CORP. (which owns *Konkar Ormi*) - Piraeus Bank S.A.

On September 11, 2023, Dryone Corp. entered into a $19.0 million five-year secured loan agreement with Piraeus Bank for the purpose of financing the vessel acquisition. The facility provides for quarterly principal repayments of $0.3 million and bears interest at SOFR plus a margin of 2.35% (subsequently amended to Term SOFR plus a margin of 1.80% effective January 26, 2026). Standard collateral interests and customary covenants are incorporated in this facility which is secured by, among other things, a first priority mortgage on the *Konkar Ormi*, and includes customary covenants, including minimum liquidity and a MSC ratio. As of December 31, 2024 and December 31, 2025, the outstanding balance of the loan relating to *Konkar Ormi* was $17.1 million and $15.9 million, respectively. Based on the amended loan agreement with Piraeus Bank S.A., effective January 26, 2026, the outstanding balance as of December 31, 2025, was repayable in 13 consecutive quarterly installments of $0.3 million each, with the first installment paid in March 2026, and the last installment will be accompanied by a balloon payment of $12.0 million due in March 2029. All other terms and conditions remain in full force and effect.

DRYTWO CORP. (which owns *Konkar Asteri*) - Alpha Bank S.A.

On February 15, 2024, Drytwo Corp. entered into a $14.5 million five-year secured loan agreement with Alpha Bank for the purpose of financing the vessel acquisition. The facility provides for quarterly principal repayments of $0.3 million and bears interest at SOFR plus a margin of 2.35% per annum. Standard collateral interests and customary covenants are incorporated in this facility which is secured by, among other things, a first priority mortgage on the *Konkar Asteri*, and includes customary covenants, including minimum liquidity and a MSC ratio. As of December 31, 2024 and December 31, 2025, the outstanding balance was $13.62 million and $12.4 million, respectively. As of December 31, 2025, the outstanding balance was repayable in 13 consecutive quarterly installments of $0.3 million each, with the first installment paid in February 2026, and the last installment will be accompanied by a balloon payment of $8.5 million due in February 2029.

DRYTHREE CORP. (which owns *Konkar Venture*) - Piraeus Bank S.A.

On June 28, 2024, Drythree Corp. entered into a $16.5 million five-year secured loan agreement with Piraeus Bank for the purpose of financing the vessel acquisition. The facility provides for quarterly principal repayments of $0.315 million and bears interest at SOFR plus a margin of 2.15% (subsequently amended to Term SOFR plus a margin of 1.80% effective January 26, 2026). Standard collateral interests and customary covenants are incorporated in this facility which is secured by, among other things, a first priority mortgage on the *Konkar Venture*, and includes customary covenants, including minimum liquidity and a MSC ratio. As of December 31, 2024 and December 31, 2025, the outstanding balance was $15.87 million and $14.61 million, respectively. Based on the amended loan agreement with Piraeus Bank, effective January 26, 2026, the outstanding balance as of December 31, 2025, was repayable in 16 consecutive quarterly installments of $0.315 million each, with the first installment paid in March 2026, and the last installment will be accompanied by a balloon payment of $9.57 million due in December 2029. All other terms and conditions remain in full force and effect.

"Hunting License" Facility – Piraeus Bank S.A.

On July 30, 2025, we entered into a commitment with Piraeus Bank for a "hunting license" loan facility of up to $45.0 million to finance the potential acquisition of up to two modern vessels, consisting of product tankers between 45,000–115,000 dwt and/or dry-bulk carriers between 60,000–85,000 dwt. Advances under the Facility of up to 62.5% of a vessel's purchase price may be drawn at any time for a period of up to 18 months after the closing of the Facility, with the remaining purchase consideration expected to be funded from cash on hand. Borrowings under the Facility would bear interest at SOFR plus an average margin of 1.90% and each advance would be amortized on a quarterly basis over five years from drawdown. The Facility would be secured by, among other things, any vessels acquired with its proceeds and includes customary financial and other covenants. We will incur a nominal commitment fee payable to the lender during the drawdown availability period, and no amounts were drawn under the Facility as of December 31, 2025.

As of December 31, 2025, we were in compliance with all of our financial covenants with respect to our loan agreements and there was no amount available to be drawn down under our existing loan agreements.

All of our bank borrowings bear interest at variable rates based on SOFR (or Term SOFR) plus an applicable margin, and we are therefore exposed to changes in SOFR. From time to time, we may use interest rate hedging instruments, such as interest rate caps, to manage this exposure. We have utilized interest rate caps in prior periods to mitigate our variable interest rate exposure, and, where appropriate, may consider entering into additional hedging arrangements in the future to further limit the impact of interest rate volatility on our results of operations and cash flows.

**Major Capital Expenditures**

On July 26, 2023, our Board, consisting of a majority of independent members, unanimously approved a $6.8 million equity investment in a newly formed company, which had agreed to acquire the *Konkar Ormi*, a 2016 Japanese-built 63,520 dwt Ultramax bulk carrier from an unaffiliated third party. Pyxis Tankers owns 60% of this joint venture and the remaining 40% is owned by a company related to our Chairman and Chief Executive Officer, Mr. Valentis. This scrubber-fitted eco-vessel is geared with four cargo cranes and a ballast water treatment system, which provide optimal operating flexibility, lower environmental emissions and attractive fuel economics. The purchase price of the bulk carrier of $28.5 million was funded by a $19.0 million five-year secured loan from Piraeus Bank and cash on hand. The loan principal is repayable over five years with quarterly amortization and bears interest at SOFR plus a margin of 2.35% per annum. The delivery of the vessel occurred on September 14, 2023, and her initial charter commenced on October 5, 2023.

On November 28, 2023, the Company announced that it had entered into a definitive agreement with an unaffiliated third party to purchase an 82,013 dwt dry-bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding. The vessel, which was delivered on February 15, 2024 was named *Konkar Asteri* and commenced its commercial operations on February 29, 2024. The eco-efficient Kamsarmax, is fitted with a ballast water treatment system and scrubber and had a purchase price of $26.625 million, which was funded by a combination of secured bank debt of $14.5 million and cash on hand. The five-year amortizing bank loan bore interest at Term SOFR plus 2.35% and was secured by, among other things, the vessel.

On June 28, 2024, the Company completed the acquisition of the *Konkar Venture*, an 82,099 dwt eco-efficient Kamsarmax dry-bulk carrier built in 2015 at Jiangsu New Yangzi Shipbuilding, through a 60%-owned joint venture with a company related to the Company's Chairman and Chief Executive Officer, Mr. Valentis. The $30.0 million purchase price for the *Konkar Venture*, which is fitted with a ballast water treatment system, was funded by a combination of secured bank debt of $16.5 million, $12.0 million in cash, of which the Company contributed $7.3 million in cash, and the issuance of 267,857 restricted common shares to the related party seller. The five-year amortizing bank loan bore interest at Term SOFR plus 2.15% and was secured by, among other things, the vessel. Upon the acquisition of the *Konkar Venture*, the purchase price in excess of the seller's vessel book value at the date of the transaction of $8.875 million was considered a deemed dividend by the Company (of which $7.493 million is presented in financing cash flow activities and $1.382 million as part of non-cash supplemental cash flow information for the common share issuance) and allocated to Pyxis Tankers' equity and non-controlling interests' equity in accordance with their ownership percentages.

The three dry-bulk vessels are managed by Konkar Agencies, a company that is related to our Chairman and Chief Executive Officer and is a long-time owner, operator and manager of dry-bulk vessels. The Company consolidates the dry-bulk joint ventures in its financial statements under the relevant ASC 810 guidelines as a result of its control over the joint ventures.

**C. Research and Development, Patents and Licenses, etc.**

We have no patents and do not use any licenses other than ordinary information technology licenses.

We have registered our primary domain at www.pyxistankers.com. The information included on, or accessible through, our website is not a part of or incorporated by reference into this Annual Report.

**D. Trend Information**

As of April 1, 2026, we have one tanker, the *Pyxis Karteria*, which is safely anchored outside of Iraq and awaiting charterer's instructions to transit the Strait of Hormuz. The vessel is fully laden with cargo and remains under time charter which is in full force and effect. War risk insurance premiums are being paid by the charterer, ST Shipping, a subsidiary of Glencore PLC. However, we are incurring higher crew wages of over $4 thousand per day until the vessel leaves the war zone. The Company cannot currently determine whether any portion of these incremental crew costs will be recoverable from insurers or any other party. At this time, we have no certainty if and when safe passage will occur through the Persian Gulf and Gulf of Oman onward to the port of cargo delivery. For further details, please see "Item 4. Information on the Company—B. Business Overview—International Product Tanker and Dry-bulk Shipping Industry."

**E. Critical Accounting Estimates**

The discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements required us to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures as of the date of our financial statements. Actual results could differ from these estimates under different assumptions and conditions. Critical accounting estimates are those that reflect significant judgments and uncertainty and potentially result in materially different results under different assumptions and conditions. We have described below what we believe are our most critical accounting estimates, because they generally involve a comparatively higher degree of judgment in their application. For a description of all of our significant accounting policies, please see Note 2 to our audited consolidated financial statements included elsewhere in this Annual Report.

*Vessel Impairment*

The carrying values of our vessels may not represent their fair market value at any point in time since the market prices of secondhand vessels tend to fluctuate with changes in charter rates and the cost of new buildings. Historically, both charter rates and vessel values tend to be cyclical. The carrying amounts of vessels held and used by us are reviewed accordingly for potential impairment whenever events or changes in circumstances indicate that the carrying amount plus the unamortized dry-docking and special survey balances of a particular vessel may not be fully recoverable. In these instances, an impairment loss would be recognized when the estimate of future undiscounted net operating cash flows expected to be generated by the use and eventual disposition of the vessel is less than the vessel's carrying amount plus the unamortized dry-docking and special survey balances, to the extent that the latter is higher than its fair market value. The impairment loss is determined by the difference between the carrying amount of the vessel plus the unamortized dry-docking and special survey balances and the fair value of the vessel. This assessment is made at the individual vessel level as separately identifiable cash flow information for each vessel is available. Measurement of the impairment loss is based on the fair market value of the vessel. The Company determines the fair value of its vessels primarily based on third-party valuations, while also considering available market data, including reported vessel sale and purchase transactions and broker market information. As of December 31, 2024, our fleet, consisting of six vessels, was independently valued at $172.5 million based on valuations provided by an internationally recognized maritime broker. As of December 31, 2025, the same fleet was independently valued at $171.5 million. The carrying values plus any unamortized dry-docking and special survey balances of the Company's vessels as of December 31, 2024 and 2025 were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| *(Amounts in millions of U.S. dollars, except Dwt in m.t.)* |  |  | **As of December 31,** | **As of December 31,** |
| **Vessel** | **Year Built** | **Dwt** | **2024** | **2025** |
| Pyxis Theta | 2013 | 51795 | 23.73 | 22.18 |
| Pyxis Karteria | 2013 | 46652 | 17.15 | 16.47 |
| Pyxis Lamda | 2017 | 50145 | 27.70 | 26.21 |
| **Total MT Tankers** |  | **148592** | $**68.58** | $**64.86** |
| Konkar Ormi | 2016 | 63520 | 26.73 \* | 25.38 |
| Konkar Asteri | 2015 | 82013 | 25.44 \* | 24.96 \* |
| Konkar Venture | 2015 | 82099 | 20.48 | 20.21 |
| **Total Dry Vessels** |  | **227632** | $**72.65** | $**70.55** |
| **Total fleet** |  | **309731** | $**141.23** | $**135.41** |

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\* Indicates dry bulk carrier vessels for which we believe, as of December 31, 2024 and 2025, respectively, the estimated charter-free market value was lower than the vessel's carrying value plus any unamortized dry-docking costs and special survey balances.

As presented in Balance Sheets as of December 31, 2024 and 2025.

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| | | |
|:---|:---|:---|
| *(Amounts in millions of U.S. dollars)* | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2025** |
| Vessels, net | 140.02 | 133.32 |
| Unamortized dry-docking and special survey balances | 1.21 | 2.09 |
| **Total** | $**141.23** | $**135.41** |

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For purposes of the impairment assessment as of December 31, 2024, the estimated charter-free market values of two of our vessels, *Konkar Ormi* and *Konkar Asteri,* were lower than their carrying values plus their unamortized dry-docking and special survey balances. The aggregate carrying value of these two vessels, assessed separately, of $52.17 million exceeded their aggregate estimated charter-free market value of approximately $51.25 million by approximately $0.92 million. For purposes of the impairment assessment as of December 31, 2025, the estimated charter-free market value of one of our vessels, *Konkar Asteri*, was lower than its carrying value plus its unamortized dry-docking and special survey balances. The carrying value of this vessel of $24.96 million exceeded its estimated charter-free market value by approximately $0.50 million. From December 31, 2024 to December 31, 2025, the independent valuation of our fleet decreased by approximately $1.0 million, and the number of vessels with estimated charter-free market values below their carrying values plus related unamortized dry-docking and special survey balances decreased from two to one. However, based on our estimate of future undiscounted net operating cash flows expected to be generated by the use and eventual disposition of the relevant vessels, no impairment charge was recorded for the years ended December 31, 2024 and 2025. The future undiscounted net operating cash flows are determined by considering the:

● estimated vessel utilization of 90.0% reflecting employment on short-term time charters and baseline off-hire based on historical experience; estimated utilization is further reduced in applicable years by (i) 15 scheduled off-hire days for planned special surveys and dry-dockings and (ii) 3 scheduled off-hire days for planned intermediate surveys;

● estimated vessel scrap value at $340 per lightweight ton;

● charter revenues based on contracted rates for the remaining fixed fleet days and, thereafter, based on the 10-year average historical time charter rates for vessels of similar type and size, including a charter premium for scrubber-fitted vessels, where applicable, for the period through the end of the vessel's estimated useful life (if a 10-year average is not available for a vessel type, we use the average of the available historical period);

● estimated vessel operating expenses based on our recent historical vessel operating expense levels; and

● inflationary factor, for vessel operating expenses, of 2.5% per year.

The impairment test is most sensitive to changes in future charter rate assumptions. Our sensitivity analysis indicated that, assuming all other assumptions remain unchanged, no impairment would be required for *Konkar Asteri* as of December 31, 2025 unless the average charter rates over the available historical period, excluding outliers, were to decline by more than 18.7%. Accordingly, a further decline in charter rates, or unfavorable changes in other key assumptions, could result in an impairment charge in future periods, particularly with respect to Konkar Asteri.

Although we believe that the assumptions used to evaluate potential impairment are reasonable and appropriate, these assumptions are highly subjective. Historically, actual freight rates have fluctuated widely between peaks and troughs, industry costs and scrap prices have been volatile, and long-term estimates may differ considerably. There can be no assurance as to how long charter rates and vessel values will remain at their present levels or whether they will change by any significant degree.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. Directors and Senior Management**

**Directors and Executive Officers**

The following table sets forth information regarding our executive officers and directors as of the date of the Annual Report. The business address of each of the below-listed directors and officers is c/o Pyxis Tankers Inc., K. Karamanli 59, Maroussi 15125, Athens, Greece.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Valentios "Eddie" Valentis | 59 | Chairman, Chief Executive Officer and Class I Director |
| Henry P. Williams | 70 | Chief Financial Officer and Treasurer |
| Konstantinos Lytras | 61 | Chief Operating Officer and Secretary |
| Robin P. Das | 53 | Class III Director |
| Basil G. Mavroleon | 77 | Class III Director |
| Aristides J. Pittas | 66 | Class II Director |

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Biographical information with respect to each of our directors and executive officers is set forth below.

**Valentios "Eddie" Valentis**, a Class I director, has over 32 years of shipping industry experience, including owning, operating and managing tankers and bulk carriers. He has served as Chief Executive Officer and Chairman of our Board of Directors since our inception. In 2007, Mr. Valentis founded and is the president of Pyxis Maritime Corp. Since 2001, Mr. Valentis has been the President and Managing Director of Konkar Shipping Agencies S.A., a position he continues to hold. Following his completion of naval service in 1992 and through 2001, Mr. Valentis held various positions in the maritime industry including dry cargo chartering, operation of dry bulk vessels and has worked also in the salvage and towage sector. Mr. Valentis serves as a member of the Greek Committee of NKK Classification Society, as an executive committee member of the International Association of Independent Tanker Owners (INTERTANKO), and serves on the executive committee of the Maltese international shipowners association. In 2023, Mr. Valentis was elected in the Board of Governors of the Piraeus Propeller Club and is in charge of the Maritime Committee. Mr. Valentis holds an MBA from Southern New Hampshire University.

**Henry P. Williams** was appointed as our Chief Financial Officer and Treasurer in August 2015. Mr. Williams has over 36 years of commercial, investment and merchant banking experience. From February 2015, he served as a financial consultant to and is employed by Maritime and its affiliates. From March 2014 to January 2015, Mr. Williams was Managing Director, Head of Maritime, Energy Services & Infrastructure (U.S.) investment banking for Canaccord Genuity Inc. From 2012 to 2014, Mr. Williams was a Senior Advisor to North Sea Securities LLC, a boutique advisory firm in New York. From 2010 to 2012, Mr. Williams was Managing Director, Global Sector Head, Shipping of Nordea Markets in Oslo, Norway and Head of its U.S. Investment Banking division in New York. From 1992 until 2010, Mr. Williams was employed by Oppenheimer & Co. Inc., as Managing Director, Head of Energy & Transportation of its investment banking division. Mr. Williams has an MBA in Finance from New York University Leonard N. Stern School of Business and a BA in Economics and Business Administration from Rollins College.

**Konstantinos Lytras** has served as our Chief Operating Officer since our inception and as our Secretary since October 15, 2018. Mr. Lytras has also served as Maritime's Financial Director since 2008. Prior to joining Maritime, from 2007 through 2008, Mr. Lytras served as Managing Director and Co-Founder of Navbulk Shipping S.A., a start-up shipping company focused on dry-bulk vessels. From 2002 through 2007, Mr. Lytras worked as Financial Director of Neptune Lines Shipping and Managing Enterprises S.A. Mr. Lytras served as Financial Controller of Dioryx Maritime Corp. and Liquimar Tankers Management Inc. from 1996 through 2002. Mr. Lytras worked as a Financial Assistant from 1992 to 1994 at Inchcape Shipping Services Ltd. Mr. Lytras earned a B.A. in Business Administration from Technological Institute of Piraeus and a B.S. in Economics from the University of Athens.

**Robin P. Das** serves as a Class III director. Mr. Das has worked in shipping finance and investment banking since 1995. He founded Auld Partners, a boutique shipping and finance focused advisory firm, in 2013. He is also a Director of Auld Management Ltd. From 2011 to 2012, Mr. Das was Managing Director (partner) of Navigos Capital Management LLC, an asset management firm established to focus on the shipping sector. From 2005 until 2011, Mr. Das was Global Head of Shipping at HSH Nordbank AG, then the largest lender globally to the shipping industry. Before joining HSH Nordbank AG in 2005, he was Head of Shipping at WestLB and prior to that time, Mr. Das was joint Head of European Shipping at J.P. Morgan. From 2016 to 2018, Mr. Das also served as director of Nimrod Sea Assets Limited (LSE: NSA, listed until April 2018), which invested in marine assets associated with the offshore oil and gas industry. Mr. Das holds a BSc (Honours) degree from the University of Strathclyde.

**Basil G. Mavroleon** serves as a Class III director. Mr. Mavroleon has been in the shipping industry for 47 years. Since 1970, Mr. Mavroleon has worked for Charles R. Weber Company, Inc., one of the oldest and largest tanker brokerages and marine consultants in the United States. Mr. Mavroleon was Managing Director of Charles R. Weber Company, Inc. for 26 years and Manager of the Projects Group for five years, from 2009 until 2013. Mr. Mavroleon currently serves as Managing Director of WeberSeas (Hellas) S.A., a comprehensive sale and purchase, newbuilding, marine projects and ship finance brokerage based in Athens, Greece. He is a Director of Genco Shipping and Trading Limited (NYSE: GNK), a company engaged in the shipping business focused on the dry-bulk industry spot market. Since its inception in 2003 through its liquidation in 2005, Mr. Mavroleon served as Chairman of Azimuth Fund Management (Jersey) Limited, a hedge fund that invested in tanker freight forward agreements and derivatives. Mr. Mavroleon is on the Advisory Board of NAMMA (North American Maritime Ministry Association), is Director Emeritus of NAMEPA (North American Marine Environmental Protection Association) and the Chairman of the New York World Scale Committee (NYC) INC. Mr. Mavroleon was educated at Windham College, Putney Vermont.

**Aristides J. Pittas** serves as a Class II Director. Mr. Pittas has more than 30 years of shipping industry experience. He has been a member of the Board of Directors and the Chairman and Chief Executive Officer of Eurodry Ltd. (Nasdaq: EDRY), or Eurodry, an independent shipping company that operates in the dry-bulk shipping industry, since its inception on January 8, 2018. He has also been a member of the Board of Directors and Chairman and Chief Executive Officer of Euroseas Ltd. (Nasdaq: ESEA), or Euroseas, an independent shipping company that operates in the dry-bulk and container shipping industry, since May 2005. Since 1997, Mr. Pittas has also been the President of Eurochart S.A., Euroseas' affiliate, which is a shipbroking company specializing in chartering, selling and purchasing ships. Since 1995, Mr. Pittas has been the President and Managing Director of Eurobulk Ltd., Euroseas' and Eurodrys' affiliated ship management company. Eurobulk Ltd. is a ship management company that provides ocean transportation services. In 2005, Mr. Pittas resigned as Managing Director of Eurobulk Ltd. Mr. Pittas has a B.Sc. in Marine Engineering from University of Newcastle Upon Tyne and a M.Sc. in both Ocean Systems Management and Naval Architecture and Marine Engineering from the Massachusetts Institute of Technology.

**Family Relationships**

There are no familial relationships among any of our executive officers or directors.

**B. Compensation**

We have no direct employees. The services of our executive officers, internal auditors and secretary are provided by Maritime. We have entered into a Head Management Agreement with Maritime, pursuant to which we currently pay $1.9 million per year for the services of these individuals, and for other administrative services associated with our being a public company and other services to our subsidiaries. Please see "Item 7. Major Shareholders and Related Party Transactions – B. Related Party Transactions".

Our non-executive directors receive in aggregate an annual compensation in the amount of $125,000 per year, plus reimbursements for actual expenses incurred while acting in their capacity as a director. In 2023, under the Pyxis Tankers Inc. 2015 equity incentive plan, or 2015 EIP, we granted 5,000 restricted common shares to each independent director. In 2024, we granted 2,500 restricted common shares to each independent director under the 2015 EIP. In the future, we may grant awards to the directors as compensation. We do not have a retirement plan for our officers or directors. Individuals serving as chairs of committees will be entitled to receive additional compensation from us as the Board of Directors may determine.

***Equity Incentive Plan***

On November 19, 2025, the Board of Directors approved a new 10-year equity incentive plan, or the 2025 EIP, as the 2015 EIP had expired. The 2025 EIP is substantially the same as the prior plan. The 2025 EIP entitles our and our subsidiaries' and affiliates' employees, officers and directors, as well as consultants and service providers to us (including persons who are employed by or provide services to any entity that is itself a consultant or service provider) and our subsidiaries (including employees of Maritime, our affiliated ship manager) to receive stock options, stock appreciation rights, restricted stock grants, restricted stock units, unrestricted stock grants, other equity-based or equity-related awards, and dividend equivalents. We summarize below the material terms of the 2025 EIP.

The nominating and corporate governance committee of our Board of Directors serves as the administrator under the 2025 EIP. Subject to adjustment for changes in capitalization as provided in the 2025 EIP, the maximum aggregate number of shares of common stock that may be delivered pursuant to awards granted under the 2025 EIP during the 10 year term of the 2025 EIP will be 15% of the then-issued and outstanding number of shares of our common stock. If an award granted under the 2025 EIP is forfeited, or otherwise expires, terminates or is cancelled or settled without the delivery of shares, then the shares covered by such award will again be available to be delivered pursuant to other awards under the 2025 EIP. Any shares that are held back to satisfy the exercise price or tax withholding obligation pursuant to any stock options or stock appreciation rights granted under the 2025 EIP will again be available for delivery pursuant to other awards under the 2025 EIP. No award may be granted under the 2025 EIP after the tenth anniversary of the date the 2025 EIP was adopted by our Board of Directors.

In the event that we are subject to a "change of control" (as defined in the 2025 EIP), the 2025 EIP administrator may, in accordance with the terms of the 2025 EIP, make such adjustments and other substitutions to the 2025 EIP and outstanding awards under the 2025 EIP as it deems equitable or desirable.

Except as otherwise determined by the 2025 EIP administrator in an award agreement, the exercise price for options shall be equal to the fair market value of a share of our common stock on the date of grant, but in no event can the exercise price be less than 100% of the fair market value on the date of grant. The maximum term of each stock option agreement may not exceed ten years from the date of the grant.

Stock appreciation rights, or SARs, will provide for a payment of the difference between the fair market value of a share of our common stock on the date of exercise of the SAR and the exercise price of a SAR, which will not be less than 100% of the fair market value on the date of grant, multiplied by the number of shares for which the SAR is exercised. The SAR agreement will also specify the maximum term of the SAR, which will not exceed ten years from the date of grant. Payment upon exercise of the SAR may be made in the form of cash, shares of our common stock or any combination of both, as determined by the 2025 EIP administrator.

Restricted and/or unrestricted stock grants may be issued with or without cash consideration under the 2025 EIP and may be subject to such restrictions, vesting and/or forfeiture provisions as the 2025 EIP administrator may provide. The holder of a restricted stock grant awarded under the 2025 EIP may have the same voting, dividend and other rights as our other stockholders.

Settlement of vested restricted stock units may be in the form of cash, shares of our common stock or any combination of both, as determined by the 2025 EIP administrator. The holders of restricted stock units will have no voting rights.

Subject to the provisions of the 2025 EIP, awards granted under the 2025 EIP may include dividend equivalents. The 2025 EIP administrator may determine the amounts, terms and conditions of any such awards provided that they comply with applicable laws. We have not set aside any amounts to provide pension, retirement or similar benefits to persons eligible to receive awards under the 2025 EIP or otherwise.

On May 11, 2023, our Board of Directors approved the issuance of a total of 55,000 restricted shares of our common stock to employees, officers and directors under the 2015 EIP. These restricted shares became vested on November 11, 2024. On November 20, 2024, our board approved the issuance of 72,500 restricted common shares to employees, officers and directors under the 2015 EIP. These additional restricted shares will vest on November 20, 2025. As of the date of this filing, no equity awards have been issued under the 2025 EIP.

**C. Board Practices**

Our Board of Directors consists of four directors, three of whom, Robin P. Das, Basil G. Mavroleon and Aristides J. Pittas, have been determined by our Board of Directors to be independent under the rules of Nasdaq and the rules and regulations of the SEC. Directors elected by our common shareholders are divided into three classes serving staggered three-year terms. At each annual meeting of shareholders, directors will be elected to succeed the class of directors whose terms have expired, and each of them shall hold office until the third succeeding annual meeting of shareholders if the Board is then classified, and until such director's successor is elected and has qualified. We held our 2025 annual meeting of shareholders on May 20, 2025, at which Aristides J. Pittas was re-elected to serve as a Class II Director for a term of three years until our 2028 annual meeting of shareholders. The term of our Class III Directors, Basil G. Mavroleon and Robin P. Das, expires at the 2026 annual meeting of shareholders. There are no service contracts with our non-executive directors that provide for benefits upon termination of their services as director.

Our audit committee consists of three independent, non-executive directors: Robin Das, Basil Mavroleon and Aristides Pittas. We believe that Robin Das qualifies as an audit committee "financial expert," as such term is defined in Regulation S-K promulgated by the SEC. The audit committee, among other things, reviews our external financial reporting, engages our external auditors, and oversees our financial reporting procedures and the adequacy of our internal accounting controls.

The nominating and corporate governance committee consists of Basil G. Mavroleon, Aristides J. Pittas and Valentios Valentis. The nominating and corporate governance committee is responsible for recommending to the Board of Directors' nominees for director and directors for appointment to board committees and advising the board with regard to corporate governance practices.

***Clawback Policy***

We adopted a policy regarding the recovery of erroneously awarded compensation, or Clawback Policy, in accordance with the applicable rules of Nasdaq and Section 10D and Rule 10D-1 of the Securities Exchange Act of 1934, as amended. In the event we are required to prepare an accounting restatement due to material noncompliance with any financial reporting requirements under U.S. securities laws or otherwise erroneous data or if we determine there has been a significant misconduct that causes material financial, operational or reputational harm, we shall be entitled to recover a portion or all of any incentive-based compensation provided to certain executives who, during a three-year period preceding the date on which an accounting restatement is required, received incentive compensation based on the erroneous financial data that exceeds the amount of incentive-based compensation the executive would have received based on the restatement.

A majority of our independent directors will administer our Clawback Policy and have discretion, in accordance with the applicable laws, rules and regulations, to determine how to seek recovery under the Clawback Policy and may forego recovery in certain instances, including if it determines that recovery would be impracticable.

**D. Employees**

We have no direct employees. The services of our executive officers, internal auditors and secretary are provided by Maritime. We have entered into a Head Management Agreement with Maritime, pursuant to which we currently, in 2026, pay $2.0 million per year for the services of these individuals, and for other administrative services associated with our being a public company and other services to our subsidiaries. Please see "Item 7. Major Shareholders and Related Party Transactions – B. Related Party Transactions."

**Indemnification of Officers and Directors**

We have entered into agreements to indemnify our directors, executive officers and other employees as determined by the Board of Directors. These agreements provide for indemnification for related expenses, including, among other things, attorneys' fees, judgments, fines and settlement amounts incurred by any of these individuals in any action or proceeding except as contained in specified exceptions. We believe that the provisions in our bylaws and indemnification agreements described above are necessary to attract and retain talented and experienced officers and directors.

**E. Share Ownership**

With respect to the total amount of common stock owned by all of our officers and directors as a group, please see "Item 7. Major Shareholders and Related Party Transactions – A. Major Shareholders."

**F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation**

Not applicable.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Shareholders**

The following table sets forth information regarding the beneficial owners of more than 5% of shares of our common stock, and the beneficial ownership of each of our directors and executive officers and of all of our directors and executive officers as a group as of March 23, 2026. All of our stockholders, including the stockholders listed in this table, are entitled to one vote for each share held.

Beneficial ownership is determined in accordance with the SEC's rules. In computing percentage ownership of each person, shares subject to options held by that person that are currently exercisable or convertible, or exercisable or convertible within 60 days of the date of this Annual Report, are deemed to be beneficially owned by that person. These shares, however, are not deemed outstanding for the purpose of computing the percentage ownership of any other person.

---

| | | |
|:---|:---|:---|
| | ***Shares Beneficially Owned**<br> ***as of March 23, 2026**** | ***Shares Beneficially Owned**<br> ***as of March 23, 2026**** |
| <br>**Identity of person or group (1)** | **Number** | **Percentage (2)** |
| Valentios "Eddie" Valentis (Maritime Investors Corp.) (3) | 6007587 | 58.5% |
| Henry P. Williams (4) | 60016 | \* % |
| Konstantinos Lytras (4) | 34078 | \* % |
| Robin P. Das(5) | 7500 | \* % |
| Basil G. Mavroleon(5) | 7500 | \* % |
| Aristides J. Pittas(5) | 7500 | \* % |
| All directors and executive officers as a group (6 person) | 6124181 | 59.6% |

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(1) Except as otherwise provided herein, each person named herein as a beneficial owner of securities has sole voting and investment power as to such securities and such person's address is c/o 59 K. Karamanli Street, Maroussi, 15125, Greece.

(2) Based upon 10,275,139 common shares outstanding as of March 23, 2026.

(3) Valentios "Eddie" Valentis is a 100% stockholder of MIC and shares voting and investment power with MIC of the 6,007,587 shares of our common stock held by it. In May 2023, Mr. Valentis received 4,000 restricted shares of our common stock as an award under our 2015 EIP and an award of 10,000 additional restricted common shares in November, 2024 under such plan.

(4) Each of Messrs. Lytras and Williams received 4,000 restricted shares of our common stock in May 2023 and 10,000 in November, 2024 as an award under our 2015 EIP.

(5) Each of Messrs. Das, Mavroleon and Pittas were awarded 5,000 restricted shares in May 2023 and 2.500 restricted shares in November, 2024 under our 2015 EIP.

\* Less than 1% of our outstanding shares of common stock.

As of March 23, 2026, we had 700 shareholders of record, 80 of whom were located in the United States. Such U.S. holders of record held an aggregate of 9,954,736 shares of our common stock, or 97% of our outstanding shares of common stock. Of these shares, 9,928,297 were held of record by CEDE & CO., a nominee of The Depository Trust Company. Accordingly, we believe that the shares registered in the name of CEDE & CO. include shares beneficially owned by both U.S. and non-U.S. holders.

**B. Related Party Transactions**

**Amended and Restated Head Management Agreement with Maritime.**

The operations of our vessels are managed by Maritime, an affiliated ship management company, under our Head Management Agreement dated August 5, 2015 and separate management agreements with each of our vessel-owning subsidiaries. Under the Head Management Agreement, Maritime is either directly responsible for or oversees all aspects of ship management for us and our fleet. Under that agreement, Maritime also provides administrative services to us, which include, among other things, the provision of the services of our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Secretary, one or more internal auditor(s) and a secretary, as well as use of office space in Maritime's premises. As part of the ship management services, Maritime provides us and our product tankers with the following services: commercial, sale and purchase, provisions, insurance, bunkering, operations and maintenance, dry-docking and newbuilding construction supervision. Maritime also supervises the crewing and technical management performed by ITM for all our MRs.

Prior to our acquisition of the *Pyxis Lamda* in December 2021, the vessel was owned by a party affiliated with Mr. Valentis, our founder and Chief Executive Officer. *Pyxis Lamda* has been and is currently managed by Maritime.

The term of the Head Management Agreement with Maritime commenced on March 23, 2015 for an initial period of five years through March 23, 2020. The Head Management Agreement can be terminated by Maritime only for cause or under other limited circumstances, such as upon a sale of us or Maritime or the bankruptcy of either party. On March 23, 2025, the Head Management Agreement was automatically extended for a third five-year period through March 23, 2030. Pursuant to the Head Management Agreement, each of our new subsidiaries that acquires a vessel in the future will enter into a separate management agreement with Maritime with a rate set forth in the Head Management Agreement. Under the Head Management Agreement, we initially paid Maritime a cost of $1.6 million annually for the services of our executive officers and other administrative services, including use of office space in Maritime's premises. In return for Maritime's ship management services, we initially paid to Maritime for each vessel while in operation, a daily fee of $325, and for each vessel under construction, a fee of $450 plus an additional daily fee, which is dependent on the seniority of the personnel, to cover the cost of the engineers employed to conduct the supervision. The fees payable to Maritime for the administrative and ship management services will be adjusted effective as of every January 1<sup>st</sup> for inflation in Greece or such other country where it is headquartered. On August 9, 2016, we amended the Head Management Agreement with Maritime to provide that in the event that the official inflation rate for any calendar year is deflationary, no adjustment shall be made to the Ship-Management Fees and the Administration Fees, which will remain the same as per the previous calendar year. In 2024 there was nominal inflation in Greece of 2.74% and, effective January 1, 2025, these fees are to increase to be in line with the reported average inflation rate of Greece in 2024. In 2025, the inflation rate in Greece was 2.59% and the fees were increased effective January 1, 2026. In addition, Maritime will receive 1.00% of the price of any vessel sale, and 1.25% of all chartering, hiring and freight revenue procured by or through it. In the event the agreement is terminated without cause and a change of control (as defined therein) occurs within 12 months after such termination or the agreement is terminated due to a change of control, we will pay Maritime an amount equal to 2.5 times the administrative fee. On March 18, 2020, we amended the Head Management Agreement with Maritime to provide that in the event of such change of control and termination, the Company shall also pay to Maritime an amount equal to 12 months of the then daily Ship-Management Fees.

The following amounts were charged by Maritime to us during 2023, 2024 and 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| *(In thousands of U.S. dollars)* | **2023** | **2024** | **2025** |
| Charter hire commissions | $575 | $644 | $486 |
| Ship-Management Fees | 728 | 1177 | 1384 |
| Administration Fees | 1812 | 1958 | 2036 |
| **Total** | $**3115** | $**3779** | $**3906** |

---

Maritime provides certain administrative services to the joint venture ship owning entities for a fee of $150/day.

**Maritime Advances & Konkar Agencies**

The balances with Maritime and Konkar Agencies are interest free and have no specific repayment terms. As of December 31, 2024 and 2025, there was a balance due to Maritime of $908 and $242, respectively. Further as of December 31, 2024 and 2025, there was a balance due to Konkar Agencies of $65 and 1,443$. Relevant balances are reflected in due to related parties in the accompanying Consolidated Balance Sheets. The balances with Maritime and Konkar Agencies is interest free and with no specific repayment terms.

**Acquisition of *Konkar Venture***

On June 28, 2024, we closed our dry-bulk joint venture with an entity related to Mr. Valentis for the acquisition of an 82,099 dwt eco-efficient Kamsarmax built in 2015 at Jiangsu New Yangzi Shipbuilding. The $30.0 million purchase price for the *Konkar Venture* was funded by a combination of secured bank debt of $16.5 million, $12.0 million cash, of which the Company contributed $7.3 million in cash, and the issuance of 267,857 restricted PXS common shares (valued at $1.5 million) to the related party seller. Pyxis owns a 60% controlling ownership interest in the joint venture. The *Konkar Venture* is a sister ship to our *Konkar Asteri.*

**Commercial & Technical Ship Management Agreements for Our Dry-bulk Carriers with Konkar Agencies**

The terms and conditions of the commercial and technical service agreements for each of our dry-bulk vessels are similar to those provided by Maritime and ITM with respect to our MRs. Besides our three bulkers, *Konkar Ormi. Konkar Asteri and Konkar Venture*, Konkar Agencies also provides these vessel management services to two other mid-sized dry-bulk carriers, which are controlled by Mr. Valentis, our Chairman and CEO. None of the affiliated owned bulkers are fitted with scrubbers which is a competitive disadvantage to two of our three carriers, otherwise vessel operations are comparable. For 2026, we will pay an aggregate fee to Konkar Agencies for the vessel management services of $896 per day for each bulker which is the same daily fee charges to the affiliated dry-bulk carriers and competitive within the dry-bulk industry.

Please also see Item 7.B. Compensation of Directors, Executive Officers and Key Employees – Equity Incentive Plan.

**C. Interests of Experts and Counsel**

Not applicable.

**ITEM 8. FINANCIAL INFORMATION**

**A. Consolidated Statements and Other Financial Information**

Please see Item 18.

**Legal Proceedings**

We may, from time to time, be involved in litigation and claims arising out of our operations in the normal course of business. At this time, we are not aware of any proceedings against us or the vessels in our fleet or contemplated to be brought against us or the vessels in our fleet which could have significant effects on our financial position or profitability. We maintain insurance policies with insurers in amounts and with coverage and deductibles as our Board of Directors believes are reasonable and prudent. We expect that most claims arising in the normal course of business would be covered by insurance, subject to customary deductibles. Any such claims, however, even if lacking merit, could result in the expenditure of significant financial and managerial resources.

**Dividend Policy**

We do not intend to pay common stock dividends in the near future and will make dividend payments to our stockholders in the future only if our Board of Directors, acting in its sole discretion, determines that such payments would be in our best interest and in compliance with relevant legal, fiduciary and contractual requirements, including our current and future loan agreements. For example, there is a restrictive covenant against paying dividends under certain circumstances, including if there is a default under the loan agreements or, with respect to our subsidiaries Seventhone and Eleventhone under their respective Alpha Bank Facilities entered into in 2020 and 2021, and subsequently amended in 2024 and December 2025, if the ratio of our total liabilities (including those of our subsidiaries as a group) (exclusive of the Promissory Note) to market value adjusted total assets is greater than 75% for the applicable year. As of December 31, 2025, the ratio of total liabilities over the market value of our adjusted total assets (calculated in accordance with the Alpha Bank Facilities) was 40% and therefore, under the Alpha Bank Facilities, the related subsidiaries were permitted to distribute dividends to us as of December 31, 2025. This restriction on dividend payments is also a covenant in the Alpha Bank loan for Dry Two Corp. which closed in February, 2024. The payment of any dividends is not guaranteed or assured, and if paid at all in the future, may be discontinued at any time at the discretion of the Board of Directors.

**B. Significant Changes**

Not applicable.

**ITEM 9. THE OFFER AND LISTING**

**A. Offer and Listing Details**

Our shares of common stock were approved for listing on the Nasdaq Capital Market on October 28, 2015 under the symbol "PXS" and the first reported trade on the Nasdaq Capital Market for our shares was in November 2015. Our shares continue to be listed on the Nasdaq Capital Market.

At March 23, 2026, our closing common stock price was $4.40. Please also see "Item 3. Key Information – D. Risk Factors – *If our common stock does not meet Nasdaq's minimum share price requirement, and if we cannot cure such deficiency within the prescribed timeframe, our common stock could be delisted.*"

**B. Plan of Distribution**

Not applicable.

**C. Markets**

Please see "Item 9. The Offer and Listing - A. Offer and Listing Details".

**D. Selling Shareholders**

Not applicable.

**E. Dilution**

Not applicable.

**F. Expenses of the Issue**

Not applicable.

**ITEM 10. ADDITIONAL INFORMATION**

**A. Share Capital**

Not applicable.

**B. Memorandum and Articles of Association**

Our Articles of Incorporation have been filed as Exhibit 3.1 to our Registration Statement on Form F-4 (File No. 333-203598) filed with the SEC on April 23, 2015. Our Bylaws have been filed as Exhibit 3.2 to our Registration Statement on Form F-4 (File No. 333-203598) filed with the SEC on April 23, 2015. The information contained in these exhibits is incorporated by reference herein.

We are a corporation organized under the laws of the Republic of the Marshall Islands and are subject to the provisions of Marshall Islands law. Our purpose is to engage in any lawful act or activity for which corporations may now or hereafter be organized under the BCA. Below is a summary of the material features of our common shares. This summary is not a complete discussion of our charter documents and other instruments that create the rights of our shareholders. You are urged to read carefully those documents and instruments, which are included as exhibits to this Annual Report.

Our authorized common and preferred stock consists of 450,000,000 common shares, 50,000,000 preferred shares of which 1,000,000 were authorized as Series A Preferred Shares. All of our shares of stock are in registered form. There are no limitations on the rights to own securities, including the rights of non-resident or foreign shareholders to hold or exercise voting rights on the securities, imposed by the laws of the Republic of The Marshall Islands or by our Articles of Incorporation or Bylaws.

The rights, preferences and restrictions attaching to each class of shares of our capital stock are described in the "Description of Securities" filed herewith as Exhibit 2.2 to this Annual Report and the information called for by this item 10.B. has been included in our Annual Report on Form 20-F for the year ended December 31, 2024, and is incorporated by reference herein.

**Common Stock**

Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of shareholders. Subject to preferences that may be applicable to any outstanding preferred shares, holders of our common stock are entitled to receive ratably all dividends, if any, declared by our Board of Directors out of funds legally available for dividends. Upon our dissolution or liquidation or the sale of all or substantially all of our assets, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of our common stock are entitled to receive pro-rata the remaining assets available for distribution. Holders of our common stock do not have preemptive, subscription or conversion rights or redemption or sinking fund provisions.

**Preferred Stock**

Our Board of Directors has the authority to authorize the issuance from time to time of one or more classes of preferred stock with one or more series within any class thereof, with such voting powers, full or limited, or without voting powers and with such designations, preferences and relative, participating, optional or special rights and qualifications, limitations or restrictions thereon as shall be set forth in the resolution or resolutions adopted by our Board of Directors providing for the issuance of such preferred stock. Issuances of preferred stock, while providing flexibility in connection with possible financings, acquisitions and other corporate purposes, could, among other things, adversely affect the voting power of the holders of our common stock.

**Directors**

Our directors are elected by a plurality of the votes cast at a meeting of stockholders entitled to vote. There is no provision for cumulative voting.

Directors are elected annually on a staggered basis. There are three classes of directors; each class serves a separate term length. Our Board of Directors has the authority to, in its discretion, fix the amounts which shall be payable to members of the Board of Directors and to members of any committee for attendance at the meetings of the Board of Directors or of such committee and for services rendered to us.

**Shareholders Meetings**

Under our Bylaws, annual shareholder meetings will be held at a time and place selected by our Board of Directors. The meetings may be held in or outside of the Marshall Islands. Special shareholder meetings may be called at any time by the majority of our Board of Directors or the chairman of the board. No business may be conducted at the special meeting other than the business brought before the special meeting by the majority of our Board of Directors or the chairman of the board. Our Board of Directors may set a record date between 15 and 60 days before the date of any meeting to determine the shareholders that will be eligible to receive notice and vote at the meeting. One or more shareholders representing at least one-third of the total voting rights of our total issued and outstanding shares present in person or by proxy at a shareholder meeting shall constitute a quorum for the purposes of the meeting.

**Interested Transactions**

Our Bylaws provide that no contract or transaction between us and one or more of our directors or officers, or between us and any other corporation, partnership, association or other organization in which one or more of its directors or officers are our directors or officers, or have a financial interest, will be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction or solely because his or her or their votes are counted for such purpose, if (i) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to our Board of Directors or its committee and the Board of Directors or the committee in good faith authorizes the contract or transaction by the affirmative vote of a majority of disinterested directors, or, if the votes of the disinterested directors are insufficient to constitute an act of the Board of Directors as provided in the BCA, by unanimous vote of the disinterested directors; (ii) the material facts as to the relationship or interest are disclosed to the shareholders, and the contract or transaction is specifically approved in good faith by the vote of the shareholders; or (iii) the contract or transaction is fair to us as of the time it is authorized, approved or ratified, by the Board of Directors, its committee or the shareholders.

**Certain Provisions of Our Articles of Incorporation and Bylaws**

Certain provisions of Marshall Islands law and our articles of incorporation and bylaws could make the acquisition of the Company by means of a tender offer, a proxy contest, or otherwise, and the removal of our incumbent officers and directors more difficult. These provisions are expected to discourage certain types of coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of the Company to work with our management.

Our articles of incorporation and bylaws include provisions that:

● allow our Board of Directors to issue, without further action by the shareholders, up to 50,000,000 shares of undesignated preferred stock;

● providing for a classified Board of Directors with staggered, three year terms;

● prohibiting cumulative voting in the election of directors;

● prohibiting stockholder action by written consent unless consent is signed by all stockholders entitled to vote on the action;

● authorizing the removal of directors only for cause and only upon the affirmative vote of the holders of two-thirds of the outstanding shares of our common stock cast at an annual meeting of stockholders;

● require that special meetings of our shareholders be called only by a majority of our Board of Directors or the chairman of the board; and

● establish an advance notice procedure for shareholder proposals to be brought before an annual meeting of shareholders.

Our articles of incorporation also prohibit us from engaging in any "Business Combination" with any "Interested Shareholder" (as such terms are explained further below) for a period of three years following the date the shareholder became an Interested Shareholder, unless:

● prior to such time, our Board of Directors approved either the Business Combination or the transaction which resulted in the shareholder becoming an Interested Shareholder;

● upon consummation of the transaction which resulted in the shareholder becoming an Interested Shareholder, the Interested Shareholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer;

● at or subsequent to such time, the Business Combination is approved by our Board of Directors and authorized at an annual or special meeting of shareholders, and not by written consent, by the affirmative vote of at least two thirds of the outstanding voting stock that is not owned by the Interested Shareholder; or

● the shareholder became an Interested Shareholder prior to March 23, 2015.

These restrictions shall not apply if:

● a shareholder becomes an Interested Shareholder inadvertently and (i) as soon as practicable divests itself of ownership of sufficient shares so that the shareholder ceases to be an Interested Shareholder; and (ii) would not, at any time within the three-year period immediately prior to a Business Combination between the Company and such shareholder, have been an Interested Shareholder but for the inadvertent acquisition of ownership; or

● the Business Combination is proposed prior to the consummation or abandonment of and subsequent to the earlier of the public announcement or the notice required of a proposed transaction which (i) constitutes one of the transactions described in the following sentence; (ii) is with or by a person who either was not an Interested Shareholder during the previous three years or who became an Interested Shareholder with the approval of the Board; and (iii) is approved or not opposed by a majority of the members of our Board of Directors then in office (but not less than one) who were directors prior to any person becoming an Interested Shareholder during the previous three years or were recommended for election or elected to succeed such directors by a majority of such directors. The proposed transactions referred to in the preceding sentence are limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a merger or consolidation of the Company (except for a merger in respect of which, pursuant to the BCA, no vote of our shareholders is required);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), whether as part of a dissolution or otherwise, of assets of the Company or of any direct or indirect majority-owned subsidiary of the Company (other than to any direct or indirect wholly-owned subsidiary or to the Company) having an aggregate market value equal to 50% or more of either that aggregate market value of all of the assets of the Company determined on a consolidated basis or the aggregate market value of all the outstanding shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a proposed tender or exchange offer for 50% or more of our outstanding voting shares.

Our articles of incorporation define a "Business Combination" to include:

● any merger or consolidation of the Company or any direct or indirect majority-owned subsidiary of the Company with (i) the Interested Shareholder or any of its affiliates, or (ii) with any other corporation, partnership, unincorporated association or other entity if the merger or consolidation is caused by the Interested Shareholder;

● any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), except proportionately as a shareholder of the Company, to or with the Interested Shareholder, whether as part of a dissolution or otherwise, of assets of the Company or of any direct or indirect majority-owned subsidiary of the Company which assets have an aggregate market value equal to 10% or more of either the aggregate market value of all the assets of the Company determined on a consolidated basis or the aggregate market value of all the outstanding shares;

● any transaction which results in the issuance or transfer by the Company or by any direct or indirect majority-owned subsidiary of the Company of any shares, or any share of such subsidiary, to the Interested Shareholder, except: (A) pursuant to the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into shares, or shares of any such subsidiary, which securities were outstanding prior to the time that the Interested Shareholder became such; (B) pursuant to a merger with a direct or indirect wholly-owned subsidiary of the Company solely for purposes of forming a holding company; (C) pursuant to a dividend or distribution paid or made, or the exercise, exchange or conversion of securities exercisable for, exchangeable for or convertible into shares, or shares of any such subsidiary, which security is distributed, pro-rata to all holders of a class or series of shares subsequent to the time the Interested Shareholder became such; (D) pursuant to an exchange offer by the Company to purchase shares made on the same terms to all holders of said shares; or (E) any issuance or transfer of shares by the Company; provided however, that in no case under items (C)-(E) of this subparagraph shall there be an increase in the Interested Shareholder's proportionate share of the any class or series of shares;

● any transaction involving the Company or any direct or indirect majority-owned subsidiary of the Company which has the effect, directly or indirectly, of increasing the proportionate share of any class or series of shares, or securities convertible into any class or series of shares, or shares of any such subsidiary, or securities convertible into such shares, which is owned by the Interested Shareholder, except as a result of immaterial changes due to fractional share adjustments or as a result of any purchase or redemption of any shares not caused, directly or indirectly, by the Interested Shareholder; or

● any receipt by the Interested Shareholder of the benefit, directly or indirectly (except proportionately as a shareholder of the Company), of any loans, advances, guarantees, pledges or other financial benefits (other than those expressly permitted above) provided by or through the Company or any direct or indirect majority-owned subsidiary.

Our articles of incorporation define an "Interested Shareholder" as any person (other than the Company, MIC and any direct or indirect majority-owned subsidiary of the Company or MIC and its affiliates) that:

● is the owner of 15% or more of our outstanding voting shares; or

● is an affiliate or associate of the Company and was the owner of 15% or more of the outstanding voting shares of the Company at any time within the three-year period immediately prior to the date on which it is sought to be determined whether such person is an Interested Shareholder; and the affiliates and associates of such person; provided, however, that the term "Interested Shareholder" shall not include any person whose ownership of shares in excess of the 15% limitation set forth herein is the result of action taken solely by the Company; provided that such person shall be an Interested Shareholder if thereafter such person acquires additional shares of voting shares of the Company, except as a result of further Company action not caused, directly or indirectly, by such person.

**C. Material Contracts**

Attached as exhibits to this Annual Report are the contracts we consider to be material to our business. Descriptions of such contracts are included in "Item 4. Information on the Company", "Item 5. Operating and Financial Review and Prospects", "Item 7. Major Shareholders and Related Party Transactions", and in Notes 3 (Transactions with Related Parties) and 7 (Long-term Debt) to our consolidated financial statements included in this Annual Report. Other than these contracts, we have not entered into any other material contracts in the two years immediately preceding the date of this Annual Report, other than contracts entered into in the ordinary course of business.

**D. Exchange Controls**

Under Marshall Islands law, there are currently no restrictions on the export or import of capital, including foreign exchange controls or restrictions that affect the remittance of dividends, interest or other payments to non-resident holders of our common shares.

**E. Taxation**

**Certain U.S. Federal Income Tax Considerations**

The following is a summary of certain material U.S. federal income tax consequences of an investment in our common stock. The discussion set forth below is based upon the Code, Treasury regulations and judicial and administrative rulings and decisions all as in effect and available on the date hereof and all of which are subject to change, possibly with retroactive effect. There can be no assurance that any of these regulations or other guidance will be enacted, promulgated or provided, and if so, the form they will take or the effect that they may have on this discussion. This discussion is not binding on the IRS or the courts and prospective investors should note that no rulings have been or are expected to be sought from the IRS with respect to any of the U.S. federal income tax consequences discussed below, and no assurance can be given that the IRS will not take contrary positions.

Further, the following summary does not deal with all U.S. federal income tax consequences applicable to any given investor, nor does it address the U.S. federal income tax considerations applicable to categories of investors subject to special taxing rules, such as brokers, expatriates, banks, real estate investment trusts, regulated investment companies, insurance companies, tax-exempt organizations, controlled foreign corporations, individual retirement or other tax-deferred accounts, dealers or traders in securities or currencies, traders in securities that elects to use a mark-to-market method of accounting for their securities holdings, partners and partnerships, S corporations, estates and trusts, investors required to recognize income for U.S. federal income tax purposes no later than when such income is reported on an "applicable financial statement", persons subject to the "base erosion and anti-avoidance" tax, investors that hold their common stock as part of a hedge, straddle or an integrated or conversion transaction, investors whose "functional currency" is not the U.S. dollar or investors that own, directly or indirectly, 10% or more of our stock by vote or value. Furthermore, the discussion does not address alternative minimum tax consequences or estate or gift tax consequences or any state tax consequences, and is generally limited to investors that hold our common stock as "capital assets" within the meaning of Section 1221 of the Code. Each investor is strongly urged to consult, and depend on, his or her own tax advisor in analyzing the U.S. federal, state, local and non-U.S. tax consequences particular to him or her of an investment in our common stock.

THIS DISCUSSION SHOULD NOT BE VIEWED AS TAX ADVICE. YOU SHOULD CONSULT YOUR OWN TAX ADVISERS CONCERNING THE U.S. FEDERAL TAX CONSEQUENCES TO YOU IN LIGHT OF YOUR OWN PARTICULAR CIRCUMSTANCES, AS WELL AS ANY OTHER TAX CONSEQUENCES ARISING UNDER THE LAWS OF ANY STATE, LOCAL, FOREIGN OR OTHER TAXING JURISDICTION, THE EFFECT OF ANY CHANGES IN APPLICABLE TAX LAW, AND YOUR ENTITLEMENT TO BENEFITS UNDER AN APPLICABLE INCOME TAX TREATY.

**U.S. Federal Income Taxation of the Company**

*Operating Income*

Unless exempt from U.S. federal income taxation under Section 883 of the Code or under an applicable U.S. income tax treaty, a foreign corporation that earns only shipping income is generally subject to U.S. federal income taxation under one of two alternative tax regimes: (i) the 4% gross basis tax or (ii) the net basis tax and branch profits tax. For this purpose, shipping income includes income from (i) the use of a vessel, (ii) hiring or leasing of a vessel for use on a time, operating or bareboat charter basis or (iii) the performance of services directly related to the use of a vessel (and thus includes spot, time and bareboat charter income). We anticipate that we will earn substantially all our shipping income from the chartering or employment of vessels for use on a spot or time charter basis; we may also, in the future, place one or more of our vessels in pooling arrangements or on bareboat charters.

The U.S.-source portion of shipping income is 50% of the income attributable to voyages that begin or end, but not both begin and end, in the United States. Generally, no amount of the income from voyages that begin and end outside the United States is treated as U.S. source, and consequently none of the shipping income attributable to such voyages is subject to the 4% gross basis tax. Although the entire amount of shipping income from voyages that both begin and end in the United States would be U.S. source, we are not permitted by United States law to engage in voyages that both begin and end in the United States and therefore we do not expect to have any U.S.-source shipping income.

*The 4% Gross Basis Tax*

The United States imposes a 4% U.S. federal income tax on a foreign corporation's gross U.S.- source shipping income to the extent such income is not treated as effectively connected with the conduct of a U.S. trade or business. As a result of the 50% sourcing rule discussed above, the effective tax is 2% of the gross income attributable to voyages beginning or ending in the United States.

*The Net Basis Tax and Branch Profits Tax*

We do not expect to engage in any activities in the United States or otherwise have a fixed place of business in the United States. Nonetheless, if this situation were to change or if we were to be treated as engaged in a U.S. trade or business, all or a portion of our taxable income, including gain from the sale of vessels, could be treated as effectively connected with the conduct of this U.S. trade or business, or effectively connected income. Any effectively connected income, net of allowable deductions, would be subject to U.S. federal corporate income tax (with the statutory rate currently being 21%). In addition, we also may be subject to a 30% "branch profits" tax on earnings effectively connected with the conduct of the U.S. trade or business (as determined after allowance for certain adjustments), and on certain interest paid or deemed paid that is attributable to the conduct of our U.S. trade or business. The 4% gross basis tax described above is inapplicable to income that is treated as effectively connected income. Our U.S.-source shipping income would be considered to be effectively connected income only if we have or are treated as having a fixed place of business in the United States involved in the earning of U.S.-source shipping income and substantially all of our U.S.-source shipping income is attributable to regularly scheduled transportation (such as the operation of a vessel that follows a published schedule with repeated sailings at regular intervals between the same points for voyages that begin or end in the United States). Based on our intended mode of shipping operations and other activities, we do not expect to have any effectively connected income.

*The Section 883 Exemption*

The 4% gross basis tax, the net basis tax and the branch profits tax described above are inapplicable to shipping income that qualifies for exemption under Section 883 of the Code, or the Section 883 Exemption. A foreign corporation will qualify for the Section 883 Exemption if:

● it is organized in a "qualified foreign country," which is a country outside the United States that grants an equivalent exemption from tax to corporations organized in the United States, or an equivalent exemption;

● it satisfies one of the following two ownership tests (discussed in more detail below): (A) more than 50% of the value of its shares is beneficially owned, directly or indirectly, by "qualified shareholders", or the 50% Ownership Test; or (B) its shares are "primarily and regularly traded on an established securities market" in a qualified foreign country or in the United States, or the Publicly-Traded Test; and

● it meets certain substantiation, reporting and other requirements (which include the filing of U.S. income tax returns).

For our 2025 taxable year, we and our subsidiaries that earn shipping income were organized under the laws of the Republic of the Marshall Islands. The U.S. Treasury recognizes the Republic of the Marshall Islands as a country that grants an equivalent exemption and thus is a qualified foreign country. Therefore, if we and our subsidiaries satisfy the 50% Ownership Test or Publicly-Traded Test for a taxable year, and otherwise comply with applicable substantiation and reporting requirements, we will be exempt from U.S. federal income tax for that taxable year with respect to our US-source shipping income.

*The 50% Ownership Test*

For purposes of the 50% Ownership Test, "qualified shareholders" include: (i) individuals who are "residents" (as defined in the Treasury regulations promulgated under Section 883 of the Code, or the Section 883 Regulations, of qualified foreign countries, (ii) corporations organized in qualified foreign countries that meet the Publicly-Traded Test (discussed below), (iii) governments (or subdivisions thereof) of qualified foreign countries, (iv) non-profit organizations organized in qualified foreign countries, and (v) certain beneficiaries of pension funds organized in qualified foreign countries, in each case, that do not beneficially own the shares in the foreign corporation claiming the Section 883 Exemption, directly or indirectly (at any point in the chain of ownership), in the form of bearer shares (as described in the Section 883 Regulations). For this purpose, certain constructive ownership rules under the Section 883 Regulations require looking through the ownership of entities to the owners of the interests in those entities. The foreign corporation claiming the Section 883 Exemption based on the 50% Ownership Test must obtain all the facts necessary to satisfy the IRS that the 50% Ownership Test has been satisfied (as detailed in the Section 883 Regulations) and must meet certain substantiation and reporting requirements.

*The Publicly-Traded Test*

The Section 883 Regulations provide, in pertinent part, that shares of a foreign corporation will be considered to be "primarily traded" on an established securities market in a country if the number of shares of each class of stock that are traded during any taxable year on all established securities markets in that country exceeds the number of shares in each such class that are traded during that year on established securities markets in any other single country. Our common shares, which constitute our sole class of issued and outstanding stock, are "primarily traded" on the Nasdaq Capital Market, which is an established market for these purposes.

Under the Section 883 Regulations, our common shares would be considered to be "regularly traded" on an established securities market if one or more classes of our shares representing more than 50% of our outstanding stock, by both total combined voting power of all classes of stock entitled to vote and total value, are listed on such market, to which we refer as the "listing threshold." Our common shares, are listed on the Nasdaq Capital Market. Accordingly, we will satisfy the listing threshold.

The Section 883 Regulations also require that with respect to each class of stock relied upon to meet the listing threshold, (i) such class of stock is traded on the market, other than in minimal quantities, on at least 60 days during the taxable year or one-sixth of the days in a short taxable year, or the trading frequency test; and (ii) the aggregate number of shares of such class of stock traded on such market during the taxable year must be at least 10% of the average number of shares of such class of stock outstanding during such year or as appropriately adjusted in the case of a short taxable year, or the trading volume test. Even if this were not the case, the Section 883 Regulations provide that the trading frequency and trading volume tests will be deemed satisfied if such class of stock is traded on an established securities market in the United States and such shares are regularly quoted by dealers making a market in such shares; for this purpose, a dealer makes a market in a stock only if the dealer regularly and actively offers to, and in fact does, purchase the stock from, and sell the stock to, customers who are not related to the dealer in the ordinary course.

Notwithstanding the foregoing, the Section 883 Regulations also provide, in pertinent part, that a class of shares will not be considered to be "regularly traded" on an established securities market for any taxable year in which 50% or more of the vote and value of the outstanding shares of such class are owned, actually or constructively under specified share attribution rules, on more than half the days during the taxable year by one or more persons who each own 5% or more of the vote and value of such class of outstanding stock, or the 5% Override Rule.

For purposes of being able to determine the persons who actually or constructively own 5% or more of the vote and value of our common shares, or 5% shareholders, the Section 883 Regulations permit us to rely on those persons that are identified on Schedule 13G and Schedule 13D filings with the SEC, as owning 5% or more of our common shares. The Section 883 Regulations further provide that an investment company which is registered under the Investment Company Act of 1940, as amended, will not be treated as a 5% shareholder for such purposes. Mr. Valentis beneficially owned more than 5% of our common stock for all of the 2025 taxable year. Thus, we believe that the 5% Override Rule is triggered for the 2025 taxable year.

However, even if the 5% Override Rule is triggered, the Treasury regulations provide that the 5% Override Rule will nevertheless not apply if we can establish that within the group of 5% shareholders, qualified shareholders (as defined generally under the Section 883 Regulations and discussed above) own sufficient number of shares to preclude non-qualified shareholders in such group from owning 50% or more of our common shares for more than half the number of days during the taxable year. In this case, Mr. Valentis was the sole 5% shareholder for the 2025 taxable year and is a qualified shareholder for purposes of the Section 883 Regulations. Thus, we believe that the 5% Override Rule would be inapplicable.

Based on the foregoing, we intend to take the position that we and our subsidiaries satisfy both the 50% Ownership Test and the Publicly-Traded Test for the 2025 taxable year and intend to comply with the substantiation and reporting requirements that are applicable under Section 883 of the Code to claim the Section 883 Exemption. If in the 2025 or any future taxable year, the ownership of our shares of common stock changes, because, among other things, we can give no assurance that such shareholders are qualified shareholders or that a sufficient number of qualified shareholders will cooperate with us in respect of the applicable substantiation and reporting requirements, there can be no assurance that we will satisfy either the 50% Ownership Test or the Publicly-Traded Test, in which case we and our subsidiaries would not qualify for the Section 883 Exemption for that taxable year and would be subject to U.S. federal tax as set forth in the above discussion.

 

*Gain on Sale of Vessels*

In general, regardless of whether we qualify for the Section 883 Exemption, we will not be subject to U.S. federal income tax with respect to gain realized on a sale of a vessel, provided the sale is considered to occur outside of the United States under U.S. federal income tax principles. A sale of a vessel will generally be considered to occur outside of the U.S. for this purpose if title to the vessel, and risk of loss with respect to the vessel, pass to the buyer outside of the United States. To the extent possible, we will attempt to structure any sale of a vessel so that it is considered to occur outside of the United States.

*U.S. Federal Income Taxation of U.S. Holders*

As used herein, "U.S. Holder" means a beneficial owner of common stock that is an individual citizen or resident of the United States for U.S. federal income tax purposes, a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any state thereof (including the District of Columbia), an estate the income of which is subject to U.S. federal income taxation regardless of its source or a trust where a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons (as defined in the Code) have the authority to control all substantial decisions of the trust (or a trust that has made a valid election under Treasury regulations to be treated as a domestic trust). A "Non-U.S. Holder" generally means any owner (or beneficial owner) of common stock that is not a U.S. Holder, other than a partnership. If a partnership holds common stock, the tax treatment of a partner will generally depend upon the status of the partner and upon the activities of the partnership. Partners of partnerships holding common stock should consult their own tax advisors regarding the tax consequences of an investment in the common stock (including their status as U.S. Holders or Non-U.S. Holders).

*Distributions on Common Stock*

Subject to the discussion of PFICs below, any distributions made by us with respect to our shares of common stock to a U.S. Holder of common stock will generally constitute dividends, which may be taxable as ordinary income or qualified dividend income as described in more detail below, to the extent of our current or accumulated earnings and profits as determined under U.S. federal income tax principles. Distributions in excess of our earnings and profits will be treated as a non-taxable return of capital to the extent of the U.S. Holder's tax basis in its common stock and, thereafter, as capital gain.

U.S. Holders that are corporations generally will not be entitled to claim a dividends received deduction with respect to any distributions they receive from us, except that certain U.S. Holders that are corporations and that directly, indirectly or constructively own 10% or more of our voting power or value may be entitled to a 100% dividends received deduction under certain circumstances. The rules with respect to the dividends received deduction are complex and involve the application of rules that depend on a U.S. Holder's particular circumstances and on whether we are a PFIC, CFC or both, among other things. You should consult your own tax advisor to determine the effect of the dividends received deduction on your ownership of our common stock.

Dividends paid with respect to our common stock generally will be treated as non-U.S. source income and generally will constitute "passive category income" for purposes of computing allowable foreign tax credits for U.S. federal foreign tax credit purposes. The rules with respect to foreign tax credits are complex and involve the application of rules that depend on a U.S. Holder's particular circumstances. You should consult your own tax advisor to determine the foreign tax credit implications of owning our common stock, including rules regarding the ability to utilize foreign tax credits against income recognized currently by a U.S. Holder.

Dividends paid on the shares of a non-US corporation to an individual U.S. Holder generally will not be treated as qualified dividend income that is taxable at preferential tax rates. However, dividends paid in respect of our common stock to an individual U.S. Holder may qualify as qualified dividend income if: (i) our common stock is readily tradable on an established securities market in the United States; (ii) we are not a PFIC for the taxable year during which the dividend is paid or in the immediately preceding taxable year; (iii) the individual U.S. Holder has owned the common stock for more than 60 days in the 121-day period beginning 60 days before the "ex-dividend date" and (iv) the individual U.S. Holder is not under an obligation to make related payments with respect to positions in substantially similar or related property. Thus, we can give no assurance that any dividends paid on our common shares will be eligible for these preferential rates in the hands of such individual U.S. Holders. Any dividends paid by us which are not eligible for these preferential rates will be taxed as ordinary income to an individual U.S. Holder.

Further, special rules may apply to any "extraordinary dividend"–generally, a dividend in an amount which is equal to or in excess of 10% of a shareholder's adjusted tax basis (or fair market value in certain circumstances) or dividends received within a one-year period that, in the aggregate, equal or exceed 20% of a shareholder's adjusted tax basis (or fair market value upon the shareholder's election) in a common share–paid by us to a U.S. Holder that is a corporation for U.S. federal income tax purposes. If we pay an "extraordinary dividend" on our common shares that is treated as "qualified dividend income," then any loss derived by certain U.S. Holders that are corporations for U.S. federal income tax purposes from the sale or exchange of such common shares will be treated as long-term capital loss to the extent of such dividend.

*Sale, Exchange or Other Disposition of Common Stock*

Subject to the discussion of PFICs below, a U.S. Holder generally will recognize taxable gain or loss upon a sale, exchange or other disposition of common stock in an amount equal to the difference between the amount realized by the U.S. Holder from such sale, exchange or other disposition and the U.S. Holder's tax basis in such common stock. Assuming we do not constitute a PFIC for any taxable year, this gain or loss will generally be treated as long-term capital gain or loss if the U.S. Holder's holding period is greater than one year at the time of the sale, exchange or other disposition. A U.S. Holder's ability to deduct capital losses is subject to certain limitations.

*3.8% Tax on Net Investment Income*

A U.S. Holder that is an individual, estate, or, in certain cases, a trust, will generally be subject to a 3.8% tax on the lesser of, in the case of a U.S. Holder that is an individual, (i) the U.S. Holder's net investment income for the taxable year and (ii) the excess of the U.S. Holder's modified adjusted gross income for the taxable year over a certain threshold (which in the case of individuals will be between $125,000 and $250,000). A U.S. Holder's net investment income will generally include distributions we make on the common stock which are treated as dividends for U.S. federal income tax purposes and capital gains from the sale, exchange or other disposition of the common stock. This tax is in addition to any income taxes due on such investment income.

*PFIC Status and Significant Tax Consequences*

Special U.S. federal income tax rules apply to a U.S. Holder that holds shares in a foreign corporation classified as a PFIC, for U.S. federal income tax purposes. In general, we will be treated as a PFIC with respect to a U.S. Holder if, for any taxable year in which such holder holds our common shares, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at least 75% of our gross income for such taxable year consists of passive income (e.g., dividends, interest, capital gains and rents derived other than in the active conduct of a rental business), which we refer to as the income test; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at least 50% of the average value of our assets during such taxable year produce, or are held for the production of, passive income, which we refer to as the asset test.

For purposes of determining whether we are a PFIC, cash will be treated as an asset which is held for the production of passive income. In addition, we will be treated as earning and owning our proportionate share of the income and assets, respectively, of any of our subsidiary corporations in which we own at least 25% of the value of the subsidiary's stock. Income earned, or deemed earned, by us in connection with the performance of services would not constitute passive income. By contrast, rental income would generally constitute "passive income" unless we were treated under specific rules as deriving our rental income in the active conduct of a trade or business.

Based on our current and projected operations, we do not believe that we (or any of our subsidiaries) were a PFIC in the 2025 taxable year, nor do we expect (or any of our subsidiaries) to become a PFIC with respect to the 2025 or any later taxable year. In making the determination as to whether we are a PFIC, we intend to treat the gross income that we derive or that are deemed to derive from the spot and time chartering activities of us or any of our subsidiaries as services income, rather than rental income. Correspondingly, such income should not constitute passive income, and the assets that we or our wholly-owned subsidiaries own and operate in connection with the production of such income should not constitute passive assets for purposes of determining whether we are a PFIC. We believe that there is substantial legal authority supporting our position consisting of case law and IRS pronouncements concerning the characterization of income derived from spot and time charters as services income for other tax purposes. However, there is also authority which characterizes time charter income as rental income rather than services income for other tax purposes. In the absence of any legal authority specifically relating to the statutory provisions governing PFICs, the IRS or a court could disagree with our position. In addition, although we intend to conduct our affairs in a manner to avoid being classified as a PFIC with respect to any taxable year, we cannot assure you that the nature of our operations will not change in the future.

As discussed more fully below, if we were to be treated as a PFIC for any taxable year, a U.S. Holder would be subject to different taxation rules depending on whether the U.S. Holder makes an election to treat us as a "qualified electing fund", or a QEF election. As an alternative to making a QEF election, a U.S. Holder should be able to make a "mark-to-market" election with respect to our common shares, as discussed below. If we were treated as a PFIC, a U.S. Holder will generally be required to file IRS Form 8621 with respect to its ownership of our common shares.

*Taxation of U.S. Holders Making a Timely QEF Election*

If a U.S. Holder makes a timely QEF election, or an electing holder, the electing holder must report for U.S. federal income tax purposes its pro-rata share of our ordinary earnings and net capital gain, if any, for each of our taxable years during which we are a PFIC that ends with or within the taxable year of the electing holder, regardless of whether distributions were received from us by the electing holder. No portion of any such inclusions of ordinary earnings will be treated as "qualified dividend income." Net capital gain inclusions of certain non-corporate U.S. Holders may be eligible for preferential capital gains tax rates. The electing holder's adjusted tax basis in the common shares will be increased to reflect any income included under the QEF election. Distributions of previously taxed income will not be subject to tax upon distribution but will decrease the electing holder's tax basis in the common shares. An electing holder would not, however, be entitled to a deduction for its pro-rata share of any losses that we incur with respect to any taxable year. An electing holder would generally recognize capital gain or loss on the sale, exchange or other disposition of our shares of common stock. A U.S. Holder would make a timely QEF election for our shares of common stock by filing IRS Form 8621 with his U.S. federal income tax return for the first year in which he held such shares when we were a PFIC. If we determine that we are a PFIC for any taxable year, we intend to provide each U.S. Holder with information necessary for the U.S. Holder to make the QEF election described above. If we were treated as a PFIC for our 2025 taxable year, we anticipate that, based on our current projections, we would not have a significant amount of taxable income or gain that would be required to be taken into account by U.S. Holders making a QEF election effective for such taxable year.

*Taxation of U.S. Holders Making a "Mark-to-Market" Election*

Alternatively, if we were to be treated as a PFIC for any taxable year and, as we anticipate will be the case, our shares are treated as "marketable stock," a U.S. Holder would be allowed to make a "mark-to-market" election with respect to our shares of common stock, provided the U.S. Holder completes and files IRS Form 8621 in accordance with the relevant instructions and related Treasury regulations. If that election is made, the U.S. Holder generally would include as ordinary income in each taxable year the excess, if any, of the fair market value of the shares at the end of the taxable year over such Holder's adjusted tax basis in the shares. The U.S. Holder would also be permitted an ordinary loss in respect of the excess, if any, of the U.S. Holder's adjusted tax basis in the shares over its fair market value at the end of the taxable year, but only to the extent of the net amount previously included in income as a result of the mark-to-market election. A U.S. Holder's tax basis in his shares of our common stock would be adjusted to reflect any such income or loss amount recognized. Any gain realized on the sale, exchange or other disposition of our shares of common stock would be treated as ordinary income, and any loss realized on the sale, exchange or other disposition of the shares would be treated as ordinary loss to the extent that such loss does not exceed the net mark-to-market gains previously included by the U.S. Holder.

 

*Taxation of U.S. Holders Not Making a Timely QEF or Mark-to-Market Election*

If we were to be treated as a PFIC for any taxable year, a U.S. Holder who does not make either a QEF election or a "mark-to-market" election for that year, or a non-electing holder, would be subject to special rules with respect to (i) any excess distribution (i.e., the portion of any distributions received by the non-electing holder on the shares in a taxable year in excess of 125% of the average annual distributions received by the non-electing holder in the three preceding taxable years, or, if shorter, the non-electing holder's holding period for the shares), and (ii) any gain realized on the sale, exchange or other disposition of our shares of common stock. Under these special rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the excess distribution or gain would be allocated ratably over the non-electing holder's aggregate holding period for the shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we were a PFIC, would be taxed as ordinary income and would not be "qualified dividend income"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed tax deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year.

U.S. HOLDERS ARE URGED TO CONSULT THEIR TAX ADVISORS AS TO OUR STATUS AS A PFIC, AND, IF WE (AND/OR ONE OR MORE OF OUR SUBSIDIARIES) ARE TREATED AS A PFIC, AS TO THE EFFECT ON THEM OF, AND THE REPORTING REQUIREMENTS WITH RESPECT TO, THE PFIC RULES AND THE DESIRABILITY OF MAKING, AND THE AVAILABILITY OF, EITHER A QEF ELECTION OR A MARK-TO-MARKET ELECTION WITH RESPECT TO OUR SHARES OF COMMON STOCK. WE PROVIDE NO ADVICE ON TAXATION MATTERS.

*U.S. Federal Income Taxation of Non-U.S. Holders*

*Dividends on Common Stock* 

A Non-U.S. Holder generally will not be subject to U.S. federal income or withholding tax on dividends received from us with respect to our shares of common stock, unless that income is effectively connected with the Non-U.S. Holder's conduct of a trade or business in the United States. In general, if the Non-U.S. Holder is entitled to the benefits of an applicable U.S. income tax treaty with respect to those dividends, that income is taxable only if it is attributable to a permanent establishment maintained by the Non-U.S. Holder in the United States.

*Sale, Exchange or Other Disposition of Common Stock* 

A Non-U.S. Holder generally will not be subject to U.S. federal income or withholding tax on any gain realized upon the sale, exchange or other disposition of our shares of common stock, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business in the United States; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Non-U.S. Holder is an individual who is present in the United States for 183 days or more during the taxable year of disposition and who also meets other conditions.

*Income or Gains Effectively Connected with a U.S. Trade or Business*

If the Non-U.S. Holder is engaged in a U.S. trade or business for U.S. federal income tax purposes, dividends on the common shares and gain from the sale, exchange or other disposition of our shares of common stock that is effectively connected with the conduct of that trade or business, will generally be subject to regular U.S. federal income tax in the same manner as discussed in the previous section relating to the taxation of U.S. Holders. In addition, in the case of a corporate Non-U.S. Holder, its earnings and profits that are attributable to the effectively connected income, which are subject to certain adjustments, may be subject to an additional U.S. federal branch profits tax at a rate of 30%, or at a lower rate as may be specified by an applicable U.S. income tax treaty.

 

*Backup Withholding and Information Reporting*

Information reporting to the IRS may be required with respect to payments on our shares of common stock and with respect to proceeds from the sale of the shares of common stock. With respect to Non-U.S. Holders, copies of such information returns reporting may be made available to the tax authorities in the country in which the Non-U.S. Holder resides under the provisions of any applicable income tax treaty or exchange of information agreement. A "backup" withholding tax (currently at a 24% rate) may also apply to those payments if a non-corporate holder of the shares of common stock fails to provide certain identifying information (such as the holder's taxpayer identification number or an attestation to the status of the holder as a Non-U.S. Holder), such holder is notified by the IRS that he or she has failed to report all interest or dividends required to be shown on his or her federal income tax returns or, in certain circumstances, such holder has failed to comply with applicable certification requirements.

Non-U.S. Holders may be required to establish their exemption from information reporting and backup withholding by certifying under penalties of perjury their status on IRS Form W-8BEN, W-8BEN-E, W-8ECI or W-8IMY, as applicable. A Non-U.S. Holder should consult his or her own tax advisor as to the qualifications for exemption from backup withholding and the procedures for obtaining the exemption.

U.S. Holders of our shares of common stock may be required to file forms with the IRS under the applicable reporting provisions of the Code. For example, such U.S. Holders may be required, under Sections 6038, 6038B and/or 6046 of the Code, to supply the IRS with certain information regarding the U.S. Holder, other U.S. Holders and us if (i) such person owns at least 10% of the total value or 10% of the total combined voting power of all classes of shares entitled to vote or (ii) the acquisition, when aggregated with certain other acquisitions that may be treated as related under applicable regulations, exceeds $100,000. In the event a U.S. Holder fails to file a form when required to do so, the U.S. Holder could be subject to substantial tax penalties.

If a shareholder is a Non-U.S. Holder and sells his or her shares of common stock to or through a U.S. office of a broker, the payment of the proceeds is subject to both U.S. backup withholding and information reporting unless the shareholder certifies that he or she is not a U.S. person, under penalty of perjury, or he or she otherwise establishes an exemption. If our shareholder is a Non-U.S. Holder and sells his or her common stock through a non-US office of a non-US broker and the sales proceeds are paid to such shareholder outside the United States, then information reporting and backup withholding generally will not apply to that payment. However, U.S. information reporting requirements, but not backup withholding, will apply to a payment of sales proceeds, even if that payment is made to a shareholder outside the United States, if the shareholder sells his or her shares of common stock through a non-U.S. office of a broker that is a U.S. person or has some other contacts with the United States. Such information reporting requirements will not apply, however, if the broker has documentary evidence in its records that the shareholder is not a U.S. person and certain other conditions are met, or the shareholder otherwise establishes an exemption.

Backup withholding is not an additional tax and may be refunded (or credited against the holder's U.S. federal income tax liability, if any), provided that appropriate returns are filed with and certain required information is furnished to the IRS in a timely manner.

In addition, individuals who are U.S. Holders (and to the extent specified in applicable Treasury regulations, Non-U.S. Holders and certain U.S. entities) who hold "specified foreign financial assets" (as defined in Section 6038D of the Code) are required to file IRS Form 8938 with information relating to the asset for each taxable year in which the aggregate value of all such assets exceeds $75,000 at any time during the taxable year or $50,000 on the last day of the taxable year (or such higher dollar amount as prescribed by applicable Treasury regulations). Specified foreign financial assets would include, among other assets, our shares of common stock, unless the shares are held in an account maintained with a U.S. financial institution. Substantial penalties apply to any failure to timely file IRS Form 8938, unless the failure is shown to be due to reasonable cause and not due to willful neglect. Additionally, in the event an individual U.S. Holder (and to the extent specified in applicable Treasury regulations, a Non-U.S. Holder or a U.S. entity) that is required to file IRS Form 8938 does not file such form, the statute of limitations on the assessment and collection of U.S. federal income taxes of such holder for the related tax year may not close until three years after the date that the required information is filed. U.S. Holders (including U.S. entities) and Non-U.S. Holders are encouraged consult their own tax advisors regarding their reporting obligations in respect of our shares of common stock.

**Material Marshall Islands and Greek Tax Law Considerations**

The following is a summary of certain material tax consequences of our activities to us and our shareholders.

We are incorporated in the Marshall Islands and some of our operations are located in Greece.

Under current Marshall Islands law, we are not subject to tax on income or capital gains, and no Marshall Islands withholding tax will be imposed upon payments of dividends by us to our shareholder.

Under Greek Law, the ship management companies which have established an office in Greece under the so called "Law 89" regime, currently legislated by Law 27/1975 as in force, are not subject to any income tax. The same applies to the ship owning companies of the vessels which are managed by such ship management companies and to their foreign holding companies, provided the latter are exclusively holding companies of such ship owning companies, without other activities. There is, however, an annual tonnage tax levy over the vessels managed by such companies, lesser than previously (in view of the below mentioned recent agreement) for which the respective ship owning company and ship management company are jointly and severally liable to pay to the Greek State; also, the tax residents of Greece who receive dividends from such ship owning or their holding companies, (pursuant to a recent agreement between the Union of Greek Shipowners and the Greek State) are taxed at 10% on the dividends which they receive and which they import into Greece, not being liable to any other taxation for these, or any tax for those dividends which either remain with the holding company or are paid to the individual Greek tax resident abroad.

**F. Dividends and Paying Agents**

Not applicable.

**G. Statement by Experts**

Not applicable.

**H. Documents on Display**

We file reports and other information with the SEC. These materials, including this Annual Report and the accompanying exhibits, are available at the SEC's website at http://www.sec.gov.

**I. Subsidiary Information**

Not applicable.

**J. Annual Report to Security Holders**

Not applicable.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Please see "Note 10. Risk Management and Fair Value Measurements" to our consolidated financial statements included in this Annual Report for a further description of our risk management.

**A. Quantitative Information about Market Risk**

*Interest Rate Risk*

The shipping industry is a capital intensive industry, requiring significant amounts of investment. Much of this investment is provided in the form of long-term debt. Our amortizing bank debt usually contains interest rates that fluctuate with the financial markets. Increasing interest rates could adversely impact future earnings and our ability to service debt.

Our interest expense is affected by changes in the general level of interest rates, most importantly SOFR. As an indication of the extent of our sensitivity to interest rate changes, an increase of 100 basis points would have decreased our net income and cash flows for the years ended December 31, 2024 and 2025 by $0.8 million in each year, based on our average debt levels during 2024 and 2025.

*Foreign Currency Exchange Risk*

We generate most of our revenue in U.S. dollars, but a portion of our expenses, are in currencies other than U.S. dollars (mainly in Euro), and any gain or loss we incur as a result of the U.S. dollar fluctuating in value against those currencies is included in vessel operating expenses and in general and administrative expenses. As of December 31, 2024 and 2025, 11% and 14% of our outstanding accounts payable, respectively, were denominated in currencies other than the U.S. dollar (mainly in Euro and SGD). We hold cash and cash equivalents mainly in U.S. dollars. We do not consider foreign currency exchange risk to be a significant risk to our business in the current environment and foreseeable future.

 

*Inflation*

We do not consider inflation to be a significant risk to our business in the current environment and foreseeable future.

**B. Qualitative Information about Market Risk**

*Interest Rate Exposure*

Our debt obligations under each of our subsidiaries' loan agreements bear interest at SOFR plus a fixed margin. Increasing interest rates could adversely affect our future profitability. Lower interest rates lower the returns on cash investments. We regularly monitor interest rate exposure and will enter into swap or cap arrangements with acceptable financial counterparties to hedge exposure where it is considered economically advantageous to do so. However, there may be certain incremental costs incurred if we enter into such arrangements.

*Operational Risk*

We are exposed to operating costs risk arising from various vessel operations, including the loading and discharging of cargos. The key areas of operating risk include dry-dock, repair costs, insurance and piracy. Our risk management includes various strategies for technical management of dry-dock and repairs coordinated with a focus on measuring cost and quality. Our modern fleet helps to minimize the risk. Given the potential for accidents and other incidents that may occur in vessel operations, the fleet is insured against various types of risk. Finally, we have established a set of countermeasures in order to minimize this risk of piracy attacks during voyages, which include hiring third party security to protect the crew and make navigation safer for the vessels.

*Foreign Exchange Rate Exposure*

Our vessel-owning subsidiaries generate revenues in U.S. dollars but incur a portion of their vessel operating expenses, and we incur a majority of our general and administrative costs, in other currencies, primarily Euros. The amount and frequency of some of these expenses (such as vessel repairs, supplies and stores) may fluctuate from period to period, while other of these expenses, such as the compensation paid to Maritime for the administrative services, remain relatively fixed. Depreciation in the value of the U.S. dollar relative to other currencies will increase the U.S. dollar cost to us of paying such expenses and, as a result, an adverse or positive movement could increase or decrease operating expenses. The portion of our business conducted in other currencies could increase in the future, which could expand our exposure to losses arising from currency fluctuations. We believe these adverse effects to be immaterial and have not entered into any derivative contracts for either transaction or translation risk during the year.

*Credit Risk*

There is a concentration of credit risk with respect to cash and cash equivalents to the extent that substantially all of our amounts are held across three banks, but one bank, Hamburg Commercial Bank AG, or HCOB, has a disproportionate amount of cash deposits. While we believe this risk of loss is low, we keep this under review and will revise our policy for managing cash and cash equivalents if we consider it advantageous and prudent to do so. We limit our credit risk with trade accounts receivable by performing ongoing credit evaluations of our customers' financial condition. We generally do not acquire collateral for trade accounts receivable.

We may have a credit risk in relation to vessel employment and at times may have multiple vessels employed by one charterer. We consider and evaluate concentration of credit risk regularly and perform on-going evaluations of these charterers for credit risk. As of December 31, 2025, none of our vessels were employed with the same charterer, however, as of March 23, 2026, two of our vessels were employed with the same charterer.

 

*Commodity Risk Exposure*

The price and supply of bunker is unpredictable and fluctuates as a result of events outside our control, including geo-political developments, supply and demand for oil and gas, actions by members of the Organization of Petroleum Exporting Countries, or OPEC, and other oil and gas producers, war and unrest in oil producing countries and regions, regional production patterns and environmental concerns and regulations. Because we do not hedge our bunker costs, an increase in the price of bunker beyond our expectations may adversely affect our profitability and cash flows.

*Liquidity Risk*

The principal objective in relation to liquidity is to ensure that we have access at minimum cost to sufficient liquidity to enable us to meet our obligations as they come due and to provide adequately for contingencies. Our policy is to manage our liquidity by strict forecasting of cash flows arising from time charter revenue, vessel operating expenses, general and administrative overhead and servicing of debt. We maintain limited cash balances in financial institutions operating in Greece.

*Inflation*

We do not expect inflation to be a significant risk in the current and foreseeable economic environment. In the event that inflation becomes a significant factor in the global economy, inflationary pressures would result in increased operating, voyage and finance costs.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

**A. Debt Securities**

Not applicable.

**B. Warrants and Rights**

Not applicable.

**C. Other Securities**

Not applicable.

**D. American Depositary Shares**

Not applicable.

**PART II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

Not applicable.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

Not applicable.

**ITEM 15. CONTROLS AND PROCEDURES**

**A. Disclosure Controls and Procedures**

The management of Pyxis Tanker Inc., with the participation of the Chief Executive Officer (*principal executive officer)* and Chief Financial Officer (*principal financial officer)*, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of December 31, 2025, has concluded that, as of such date, our disclosure controls and procedures were effective and ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer (*principal executive officer)* and Chief Financial Officer (*principal financial officer)*, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms.

**B. Management's Annual Report on Internal Control over Financial Reporting**

In accordance with Rule 13a-15(f) of the Exchange Act, our management is responsible for the establishment and maintenance of adequate internal controls over our financial reporting. Pyxis Tankers Inc.'s internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Our system of internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management performed an assessment of the effectiveness of our internal controls over financial reporting as of December 31, 2025 using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control, Integrated Framework (2013). Based on its assessment, management has determined that our internal control over financial reporting was effective as of December 31, 2025.

**C. Attestation Report of the Registered Public Accounting Firm**

Not applicable.

**D. Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting that occurred during the period covered by this Annual Report that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

**ITEM 16. RESERVED**

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Our Board has determined that Mr. Robin Das is an audit committee financial expert as defined by the SEC rules and that he has the requisite financial sophistication under the applicable rules and regulations of the Nasdaq Stock Market. Mr. Das is independent as such term is defined in Rule 10A-3 under the Exchange Act and under the listing standards of the Nasdaq Stock Market.

**ITEM 16B. CODE OF ETHICS**

Our Board of Directors has approved and adopted a Code of Business Conduct and Ethics for all officers and employees, a copy of which is available on our website at http://www.pyxistankers.com. We will provide any person, free of charge, with a copy of our Code of Business Conduct and Ethics upon written request to our registered office at 59 K. Karamanli Street, Maroussi 15125 Greece. Any waivers that are granted from any provision of our Code of Business Conduct and Ethics may be disclosed on our website within five business days following the date of such waiver.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

KPMG Certified Auditors S.A., an independent registered public accounting firm, has audited our annual financial statements acting as our independent auditor for the fiscal year ended December 31, 2024. Deloitte Certified Public Accountants S.A., an independent registered public accounting firm, has audited our annual financial statements acting as our independent auditor for the fiscal year ended December 31, 2025. Our audit committee was established on October 28, 2015. KPMG Certified Auditors S.A. and Deloitte Certified Public Accountants S.A. billed the following fees to us for professional services:

(a) Audit Fees

The audit fees for the audit of each of the years ended December 31, 2024 and 2025 were $105,684 billed by KPMG Certified Auditors S.A. and $113,865 charged by Deloitte Certified Public Accountants S.A., respectively.

(b) Audit-Related Fees

Audit related services fees charged for the years ended December 31, 2024 and 2025 were nil and nil, respectively.

(c) Tax Fees

Tax fees charged for the years ended December 31, 2024 and 2025 were nil and nil, respectively.

(d) All Other Fees

No other fees were charged for the years ended December 31, 2024 and 2025.

(e) Audit and Non-Audit Services Pre-Approval Policy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Our audit committee is responsible for the appointment, compensation, retention and oversight of the work of the independent auditors. As part of this responsibility, the audit committee pre-approves the audit and non-audit fees, terms and services performed by the independent auditors in order to assure that they do not impair the auditors' independence. Our audit committee has not adopted a detailed policy which sets forth the procedures and the conditions pursuant to which services proposed to be performed by the independent auditors may be pre-approved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Our audit committee has separately pre-approved all engagements and fees paid to our principal accountants since October 28, 2015.

(f) Audit Work Performed by Other Than Principal Accountant if Greater Than 50%

Not applicable.

**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not applicable.

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

*Common Share Repurchase Program*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Month**<br> **(2025)** | **Total number of<br> shares purchased** | **Average price<br> paid per share** | **Total number of shares<br> purchased as part of publicly announced program** | **Maximum value that may yet be expected on share<br> purchases under program**<br> (in U.S.$) |
| January | 67534 | 3.91 | 67534 |  |
| February |  |  |  |  |
| March |  |  |  |  |
| April |  |  |  |  |
| May |  |  |  |  |
| June |  |  |  |  |
| July |  |  |  |  |
| August |  |  |  |  |
| September |  |  |  |  |
| October |  |  |  |  |
| November |  |  |  |  |
| December | 67004 | 2.95 | 67004 | 2798082 |
| **Total** | **134538** | **3.43** | **134.538** |  |

---

On May 11, 2023, our Board authorized a common stock re-purchase program of up to $2.0 million for a period of six months through open market transactions. In November, 2023 our Board of Directors authorized a six-month extension of the Repurchase Program through May, 2024. In May 2024, our Board of Directors authorized an increase of $1.0 million in incremental repurchase authority under the Repurchase Program, and also extended the program through May 16, 2025. During the year ended December 31, 2024, we repurchased a total of 331,558 common shares at an average price of $4.39 per share, excluding brokerage commissions, utilizing $1.46 million, excluding brokerage commissions.

After the year ended December 31, 2024, and as of January 30, 2025 we repurchased an additional 67,534 common shares at an average price of $3.91 per share, excluding brokerage commissions, or an incremental $264 thousand, and fully utilized our Repurchase Program. As of the date of this Annual Report, there are no amounts available to us under that Repurchase Program.

On November 19, 2025, our Board authorized a second common stock re-purchase program of up to $3.0 million for a period of one year. In December, 2025, we acquired an additional 67,004 shares at an average price of $2.95 per share, exclusive of commissions, spending $0.2 million in total. As of March 23, 2026, we have acquired an additional 142,720 shares under this repurchase program. We have spent $0.5 million to acquire these additional PXS shares in the open market at an average price of $3.46 per share, exclusive of commissions. There is $2.29 million of authorization remaining under the second program which expires in November, 2026.

*Preferred Share Redemptions*

On June 20, 2024, the Company paid $2.5 million for the redemption of 100,000 shares of our Series A Preferred Shares at the Liquidation Preference of $25.00 per share in cash. On October 20, 2024 all remaining outstanding Series A Preferred Shares were redeemed at the Liquidation Preference of $25.00 per share for an aggregate payment of $7.6 million in cash.

**ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

In June of 2025, KPMG Certified Auditors S.A., or KPMG, notified the Company of its resignation as the Company's independent registered public accounting firm. KPMG served as the independent registered public accounting firm of the Company for the fiscal years ended December 31, 2024 and 2023. On October 1, 2025, our audit committee and Board of Directors approved the selection of Deloitte Certified Public Accountants S.A. to replace KPMG to serve as our independent registered public accounting firm for the year ending December 31, 2025.

KPMG's resignation and the change in the Company's independent registered public accounting firm was previously reported in our reports on Form 6-K, filed with the SEC on July 7, 2025 and October 6, 2025, respectively, which are incorporated by reference herein.

**ITEM 16G. CORPORATE GOVERNANCE**

We believe that our corporate governance practices are in compliance with, and are not prohibited by, the laws of the Marshall Islands. Therefore, we believe we are exempt from many of Nasdaq's corporate governance practices other than the requirements regarding the disclosure of a going concern audit opinion, submission of a listing agreement, notification of material non-compliance with Nasdaq corporate governance practices, and the establishment and composition of an audit committee and a formal written audit committee charter.

The practices that we follow in lieu of Nasdaq's corporate governance rules include:

● instead of obtaining an independent review of related party transactions for conflicts of interests by our audit committee or another independent body of our Board of Directors, consistent with Marshall Islands law requirements, no transaction between us and one or more of our directors or officers, or between us and any other entity in which one or more of our directors or officers are directors or officers, or have a financial interest, shall be void or voidable for this reason alone or solely because such director or officer is present at or participates in the meeting of our Board of Directors that authorized the contract or transaction or solely because the vote of such director or officer are counted for such purposes if: (i) the material facts as to such director's or officer's relationship or interest and as to the contract or transaction are disclosed or are known to our Board of Directors, and our Board of Directors in good faith authorizes such contract or transaction by the affirmative votes of a majority of the disinterested directors, or, if the votes of the disinterested directors are insufficient to constitute an act of our Board of Directors as defined in Section 55 of the BCA, by unanimous vote of our disinterested directors; (ii) the material facts as to the director's or officer's relationship or interest and as to such contract or transaction are disclosed and the contract or transaction is specifically approved in good faith by a vote of the stockholders entitled to vote thereon; or (iii) the contract or transaction is fair to us as of the time it is authorized, and is approved or ratified by our Board of Directors, a committee thereof or our stockholders. Interested directors may be counted in determining the presence of a quorum at a meeting of our Board of Directors or of a committee that authorizes the aforementioned contract or transaction;

● as a foreign private issuer, we will not be required to solicit proxies or provide proxy statements to Nasdaq pursuant to Nasdaq corporate governance rules or Marshall Islands law. Consistent with Marshall Islands law, we intend to notify our stockholders of meetings between 15 and 60 days before the meeting. This notification will contain, among other things, information regarding business to be transacted at the meeting. In addition, our bylaws provide that stockholders must give us advance notice to properly introduce any business at a meeting of the stockholders and that stockholders may designate in writing a proxy to act on their behalf;

● consistent with Marshall Islands law, we do not disclose all agreements and arrangements between any director or nominee for director, and any person or entity other than the Company, relating to compensation or other payment in connection with such person's candidacy or service of director of the Company;

● in place of a compensation committee and consistent with Marshall Islands law requirements, our entire Board of Directors, a majority of whom are currently independent, reviews and approves executive compensation and performance awards as well as the policies and procedures to determine such payments;

● in place of a nominating and corporate governance committee composed of only independent directors and consistent with Marshall Islands law requirements, our nominating and corporate governance committee is composed of two independent directors, Mr. Basil Mavroleon and Mr. Aristides Pittas, and one non-independent executive director;

● instead of holding regular meetings at which only independent directors are present, our entire Board of Directors, a majority of whom are currently independent, will hold regular meetings as is consistent with Marshall Islands law;

● stockholder approval is not required to amend or terminate our equity incentive plan or to establish a new equity incentive plan since Marshall Islands law permits the Board of Directors to take these actions;

● as a foreign private issuer, we will not be required to obtain stockholder approval prior to the issuance of securities in connection with an acquisition of the stock or assets of another company;

● in lieu of obtaining stockholder approval prior to the issuance of designated securities, we intend to comply with provisions of the BCA and obtain the approval of our Board of Directors for such share issuances; and

● consistent with Marshall Islands law, we do not require that our corporate actions or issuances cannot disparately reduce or restrict the voting rights of existing shareholders.

**ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

**ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**ITEM 16J. INSIDER TRADING POLICIES**

The Company has adopted insider trading policies and procedures governing the purchase, sale, and other dispositions of the Company's securities by the Company's and its affiliated ship managers', directors, officers, and employees, that are reasonably designed to promote compliance with applicable insider trading laws, rules and regulations, and Nasdaq listing standards applicable to the Company.

A copy of our insider trading policy is filed as an exhibit to this Annual Report.

**ITEM 16K. CYBERSECURITY**

**Risk Management and Strategy**

We maintain various cybersecurity measures and protocols to safeguard our systems and data and monitor and assess potential threats to pre-emptively address any emerging cyber risks. In conjunction with leading technology service providers to the international shipping industry, Akereon Business & IT Consulting Services, or Akereon, and Danaos Management Consultants S.A., we have implemented various processes for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into our overall risk management framework. These processes include access controls to organizational systems, email / data encryption, cybersecurity training and security awareness campaigns through electronic mail, and are designed to systematically evaluate potential vulnerabilities and cybersecurity threats and minimize their potential impact on our operations, assets and shareholders. Our cybersecurity processes share common methodologies, reporting channels and governance processes with our broader cyber processes. By embedding cybersecurity into and aligning it with our broader processes, we aim to ensure a comprehensive and proactive approach to safeguarding our assets and operations, including off-site redundancy of data services.

For a period of years, we have engaged internationally recognized consultants and other third-party specialists to enhance the effectiveness of our cybersecurity processes, augment our internal capabilities, validate our controls, and stay abreast of evolving cybersecurity risks and best practices. These advisors interact with the Company's management throughout the fiscal year for certain IT services, and, as appropriate, to assess, test or otherwise assist with aspects of our security controls. Grant Thornton (Greece) periodically reviews our IT systems and operations and reports on management progress to our Audit Committee of the Board of Directors. These reports, amongst other things, highlight significant or emerging cybersecurity threats, their potential impact on the organization, ongoing initiatives to mitigate risks and any proposed actions or investments required to enhance our cybersecurity posture.

**Governance**

Responsibility for overseeing cybersecurity risks is part of the responsibility of our Chief Operating Officer who interfaces with Akereon and our internal coordinator to monitor, detect and assess cybersecurity risks and potential incidents, including interfacing with ITM, Maritime, Konkar Agencies and our third -party technology service providers. Akereon and our internal coordinator are expected to keep abreast of cybersecurity best practices and procedures, and they are responsible for assessing, identifying and mitigating material cybersecurity risks, including at a strategic level, monitoring for, defending against and remediating cybersecurity incidents and implementing and making improvements to our overall cybersecurity strategy. The IT services, including cybersecurity, are provided to us pursuant to the Head Management Agreement.

**Cybersecurity Threats**

For the year ended December 31, 2025, and through the date of this Annual Report, we are not aware of and did not detect any material risks from cybersecurity incidents or threats that have materially affected or are reasonable likely to materially affect the Company, including our business strategy, results of operations or financial condition.

**PART III**

**ITEM 17. FINANCIAL STATEMENTS**

Refer to Item 18.

**ITEM 18. FINANCIAL STATEMENTS**

Please see Financial Statements beginning on page F-1 of this Annual Report.

**ITEM 19. EXHIBITS**

The following exhibits are filed as part of this Annual Report

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Exhibit Number** | **Description of Exhibit** | **Schedule / Form** | **File Number** | **Exhibit** | **File Date** |
| 1.1# | [Articles of Incorporation of the Company](https://www.sec.gov/Archives/edgar/data/1640043/000161577415000808/s100989_ex3-1.htm) | F-4 | 333-203598 | 3.1 | April 23, 2015 |
| 1.2# | [Bylaws of the Company](https://www.sec.gov/Archives/edgar/data/1640043/000161577415000808/s100989_ex3-2.htm) | F-4 | 333-203598 | 3.2 | April 23, 2015 |
| 1.3# | [Fourthone Corporation Ltd and Eleventhone Corp. joint Loan Agreement](https://www.sec.gov/Archives/edgar/data/1640043/000149315222008700/ex1-4.htm) | 20-F | 001-37611 | 1.4 | April 1, 2022 |
| 2.1# | [Specimen Stock Certificate of Pyxis Tankers Inc.](https://www.sec.gov/Archives/edgar/data/1640043/000161577415002753/s101907_ex4-2.htm) | F-4 | 333-203598 | 4.2 | September 28, 2015 |
| 2.2# | [Description of Securities](https://www.sec.gov/Archives/edgar/data/1640043/000149315220005508/ex2-2.htm) | 20-F | 001-37611 | 2.2 | March 31, 2020 |
| 4.1# | [Amended and Restated Head Management Agreement, dated August 5, 2015, by and between Pyxis Tankers Inc. and Pyxis Maritime Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000161577415002479/s101786_ex10-3.htm) | F-4 | 333-203598 | 10.3 | September 4, 2015 |
| 4.1.1# | [First Amendment dated August 9, 2016, to the Amended and Restated Head Management Agreement, dated August 5, 2015, by and between Pyxis Tankers Inc. and Pyxis Maritime Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000156459017005424/pxs-ex411_330.htm) | 20-F | 001-37611 | 4.1.1 | March 28, 2017 |
| 4.1.2# | [Second Amendment dated March 18, 2020, to the Amended and Restated Head Management Agreement, dated August 5, 2015, by and between Pyxis Tankers Inc. and Pyxis Maritime Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000149315220005508/ex4-1_2.htm) | 20-F | 001-37611 | 4.1.2 | March 31, 2020 |
| 4.2# | [Form of Ship Management Agreement with International Tanker Management Ltd.](https://www.sec.gov/Archives/edgar/data/1640043/000161577415002479/s101786_ex10-4.htm) | F-4 | 333-203598 | 10.4 | September 4, 2015 |
| 4.3# | [Form of 2015 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1640043/000161577415002479/s101786_ex10-12.htm) | F-4 | 333-203598 | 10.12 | September 4, 2015 |
| 4.4# | [Form of Indemnification Agreement](https://www.sec.gov/Archives/edgar/data/1640043/000161577415002479/s101786_ex10-13.htm) | F-4 | 333-203598 | 10.13 | September 4, 2015 |
| 4.5# | [Loan Agreement dated July 8, 2020 by and between Alpha Bank S.A., as lender, and Seventhone Corp., as borrower](https://www.sec.gov/Archives/edgar/data/1640043/000091957420004993/d8590295_ex10-13.htm) | F-1 | 333-245405 | 10.13 | August 13, 2020 |
| 4.6# | [Corporate Guarantee dated July 8, 2020 by and between Pyxis Tankers Inc., as guarantor, and Alpha Bank S.A., as lender, in respect of the Loan Agreement dated July 8, 2020, by and between Alpha Bank S.A. and Seventhone Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000091957420004993/d8566894ex10-13_1.htm) | F-1 | 333-245405 | 10.13.1 | August 13, 2020 |
| 4.7# | [Loan Agreement, dated March 29, 2021, by and among Alpha Bank S.A. and Eighthone Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000149315221008493/ex4-15.htm) | 20-F | 001-37611 | 4.15 | April 12, 2021 |
| 4.8# | [Amendment dated June 25, 2021 to the Loan Agreement dated July 8, 2020 by and between Alpha Bank S.A., as lender, and Seventhone Corp., as borrower.](https://www.sec.gov/Archives/edgar/data/1640043/000149315221016586/ex99-3.htm) | 6-K | 001-37611 | 99.3 | July 12, 2021 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 4.9# | [Loan Agreement, dated March 10, 2023, by and among Piraeus Bank S.A. and Tenthone Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000149315223011992/ex4-17.htm) | 20-F | 001-37611 | 4.17 | April 12, 2023 |
| 4.10# | [Loan Agreement dated September 8, 2023, by and among Piraeus Bank S.A. and Dryone Corp. - Pyxis](https://www.sec.gov/Archives/edgar/data/1640043/000149315224015029/ex4-18.htm) | 20-F | 001-37611 | 4.18 | April 17, 2024 |
| 4.11# | [Loan Agreement dated February 9, 2024, by and among Alpha Bank S.A. and Drytwo Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000149315224015029/ex4-19.htm) | 20-F | 001-37611 | 4.19 | April 17, 2024 |
| 4.12# | [Joint Venture Agreement - Drykon Maritime Inc - Pyxis Tankers – Futurebulk](https://www.sec.gov/Archives/edgar/data/1640043/000149315224015029/ex4-20.htm) | 20-F | 001-37611 | 4.2 | April 17, 2024 |
| 4.13# | [Ship-management_agreement_Dryone Corp – Konkar Ormi](https://www.sec.gov/Archives/edgar/data/1640043/000149315224015029/ex4-21.htm) | 20-F | 001-37611 | 4.21 | April 17, 2024 |
| 4.14# | [Ship-management_agreement_Drytwo Corp – Konkar Asteri](https://www.sec.gov/Archives/edgar/data/1640043/000149315224015029/ex4-22.htm) | 20-F | 001-37611 | 4.22 | April 17, 2024 |
| 4.15# | [Joint Venture Agreement - Accuship Maritime Ltd - Pyxis Tankers – Futurebulk](https://www.sec.gov/Archives/edgar/data/1640043/000164117225001092/ex4-24.htm) | 20-F | 001-37611 | 4.24 | March 28, 2025 |
| 4.16# | [Ship-management_agreement_Drythree Corp – Konkar Venture](https://www.sec.gov/Archives/edgar/data/1640043/000164117225001092/ex4-25.htm) | 20-F | 001-37611 | 4.25 | March 28, 2025 |
| 4.17# | [Loan Agreement dated June 27, 2024, by and among Piraeus Bank S.A. and Drythree Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000164117225001092/ex4-26.htm) | 20-F | 001-37611 | 4.26 | March 28, 2025 |
| 4.18# | [First Supplemental Agreement dated July 30, 2024, by and among Alpha Bank S.A. and Seventhone Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000164117225001092/ex4-28.htm) | 20-F | 001-37611 | 4.28 | March 28, 2025 |
| 4.19# | [First Supplemental Agreement dated July 30, 2024, by and among Alpha Bank S.A. and Eleventhone Corp.](https://www.sec.gov/Archives/edgar/data/1640043/000164117225001092/ex4-29.htm) | 20-F | 001-37611 | 4.29 | March 28, 2025 |
| 4.20\* | [Loan Agreement dated July 30, 2025, by and among Piraeus Bank S.A. and Twelfthone Corp. and Dryfour Corp.](ex4-20.htm) |  |  |  |  |
| 4.21\* | [2025 Equity Incentive Plan](ex4-21.htm) |  |  |  |  |
| 4.22\* | [Loan Agreement dated December 17, 2025, by and among Alpha Bank S.A. and Seventhone Corp.](ex4-22.htm) |  |  |  |  |
| 4.23\* | [Loan Agreement dated December 17, 2025, by and among Alpha Bank S.A. and Eleventhone Corp.](ex4-23.htm) |  |  |  |  |
| 4.24\* | [First Supplemental Agreement dated January 17, 2026, by and among Piraeus Bank S.A. and Tenthone Corp.](ex4-24.htm) |  |  |  |  |
| 4.25\* | [First Supplemental Agreement dated January 17, 2026, by and among Piraeus Bank S.A. and Dryone Corp.](ex4-25.htm) |  |  |  |  |
| 4.26\* | [First Supplemental Agreement dated January 17, 2026, by and among Piraeus Bank S.A. and Drythree Corp.](ex4-26.htm) |  |  |  |  |
| 8.1\* | [List of Subsidiaries](ex8-1.htm) |  |  |  |  |
| 11.1# | [Insider Trading Policy for Covered Persons dated May 26, 2022](https://www.sec.gov/Archives/edgar/data/1640043/000164117225001092/ex4-27.htm) | 20-F | 001-37611 | 4.27 | March 28, 2025 |
| 12.1\* | [Certification by the Principal Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) / 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex12-1.htm) |  |  |  |  |
| 12.2\* | [Certification by the Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) / 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex12-2.htm) |  |  |  |  |
| 13.1\* | [Certification by the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex13-1.htm) |  |  |  |  |
| 13.2\* | [Certification by the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex13-2.htm) |  |  |  |  |
| 15.1\* | [Consent of Independent Registered Public Accounting Firm](ex15-1.htm) |  |  |  |  |
| 15.2\* | [Consent of Independent Registered Public Accounting Firm](ex15-2.htm) |  |  |  |  |
| 15.3\* | [Consent of Marsoft BV LLC](ex15-3.htm) |  |  |  |  |
| 97.1# | [Policy Regarding the Recovery of Erroneously Awarded Compensation](https://www.sec.gov/Archives/edgar/data/1640043/000149315224015029/ex4-23.htm) | 20-F | 001-37611 | 4.23 | April 17, 2024 |

---

101\* The following materials from the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2025, formatted in eXtensible Business Reporting Language (XBRL):

(i) Consolidated Balance Sheets as at December 31, 2024 and 2025;

(ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2024 and 2025;

(iii) Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023, 2024 and 2025;

(iv) Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2024 and 2025;

(v) Notes to the Consolidated Financial Statements; and (vi) Schedule I.

# Indicates a document previously filed with the SEC, incorporated by reference herein. <br> \* Filed herewith.

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.

---

| | | |
|:---|:---|:---|
|  | **PYXIS TANKERS INC.** | **PYXIS TANKERS INC.** |
|  | By: | */s/ Valentios Valentis* |
|  | Name: | Valentios Valentis |
|  | Title: | Chairman, Chief Executive Officer and Director |
| Date: April 1, 2026 |  |  |

---

**PYXIS TANKERS INC.**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | Page |
| [Report of Independent Registered Public Accounting Firm of Deloitte Certified Public Accountants S.A.](#fn_002) (PCAOB ID 1163) | F–1 |
| [Report of Independent Registered Public Accounting Firm of KPMG Certified Auditors S.A.](#fn_001) (PCAOB ID 1084) | F–2 |
| [Consolidated Balance Sheets as at December 31, 2024 and 2025](#fn_003) | F–3 |
| [Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2024 and 2025](#fn_004) | F–4 |
| [Consolidated Statements of Stockholders' Equity for the years ended December 31, 2023, 2024 and 2025](#fn_005) | F–5 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2024 and 2025](#fn_006) | F–6 |
| [Notes to the Consolidated Financial Statements](#fn_007) | F–8 |

---

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and Board of Directors of Pyxis Tankers Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheet of Pyxis Tankers Inc. and subsidiaries (the "Company") as of December 31, 2025, the related consolidated statements of comprehensive income, stockholders' equity, and cash flows, for the year ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Deloitte Certified Public Accountants S.A.

Athens, Greece

April 1, 2026

We have served as the Company's auditor since 2025.

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and Board of Directors

Pyxis Tankers Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheet of Pyxis Tankers Inc. and subsidiaries (the Company) as of December 31, 2024, the related consolidated statements of comprehensive income, stockholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2024, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG Certified Auditors S.A.

We served as the Company's auditor from 2022 to 2025.

Athens, Greece

March 28, 2025

**PYXIS TANKERS INC.**

**Consolidated Balance Sheets**

As at December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Note** | **December 31,**<br>**2024** | **December 31,**<br>**2025** |
| **ASSETS** |  |  |  |
| **CURRENT ASSETS:** |  |  |  |
| Cash and cash equivalents | 2 | $21243 | $35555 |
| Short-term investment in time deposits | 2 | 17000 | 18000 |
| Inventories | 2, 4 | 1889 | 536 |
| Trade accounts receivable, net | 2 | 5040 | 2007 |
| Prepayments and other current assets |  | 706 | 552 |
| Insurance claim receivable | 6 | 245 |  |
| **Total current assets** |  | **46123** | **56650** |
| **FIXED ASSETS, NET:** |  |  |  |
| Vessels, net | 5 | 140024 | 133319 |
| Advances for vessel additions | 5 | 170 |  |
| **Total fixed assets, net** |  | **140194** | **133319** |
| **OTHER NON-CURRENT ASSETS:** |  |  |  |
| Restricted cash | 2, 8 | 1350 | 1350 |
| Deferred dry-dock and special survey costs, net | 2, 7 | 1214 | 2093 |
| **Total other non-current assets** |  | **2564** | **3443** |
| **Total assets** |  | $**188881** | $**193412** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |  |
| **CURRENT LIABILITIES:** |  |  |  |
| Current portion of long-term debt, net of deferred financing costs | 8 | $7561 | $7967 |
| Trade accounts payable |  | 2107 | 1495 |
| Due to related parties | 3 | 973 | 1685 |
| Hire collected in advance | 2 | 111 | 597 |
| Accrued and other liabilities |  | 1502 | 1000 |
| **Total current liabilities** |  | **12254** | **12744** |
| **NON-CURRENT LIABILITIES:** |  |  |  |
| Long-term debt, net of current portion and deferred financing costs | 8 | 76963 | 79279 |
| **Total non-current liabilities** |  | **76963** | **79279** |
| **COMMITMENTS AND CONTINGENCIES** | 13 |  |  |
| **STOCKHOLDERS' EQUITY:** |  |  |  |
| Preferred stock ($0.001 par value; 50,000,000 shares authorized; including 1,000,000 authorized Series A Convertible Preferred Shares; no Series A Convertible Preferred Shares issued and outstanding as of December 31, 2024 and 2025) | 9 |  |  |
| Common stock ($0.001 par value; 450,000,000 shares authorized; 11,216,548 shares issued and 10,553,399 shares outstanding as of December 31, 2024, and 11,216,546 shares issued and 10,418,859 shares outstanding as of December 31, 2025) | 9 | 11 | 10 |
| Additional paid-in capital | 9 | 98035 | 97826 |
| Accumulated deficit |  | (4670) | (2676) |
| **Total equity attributable to Pyxis Tankers Inc. and subsidiaries** |  | **93376** | **95160** |
| Non-controlling interest | 10 | 6288 | 6229 |
| **Total stockholders' equity** |  | **99664** | **101389** |
| **Total liabilities and stockholders' equity** |  | $**188881** | $**193412** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

**PYXIS TANKERS INC.**

**Consolidated Statements of Comprehensive Income**

For the years ended December 31, 2023, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2023** | **2024** | **2025** |
| **Revenues, net** | 2, 15 | $45468 | $51542 | $38994 |
| **Expenses:** |  |  |  |  |
| Voyage related costs and commissions | 3 | (6352) | (9527) | (2699) |
| Vessel operating expenses |  | (11623) | (13367) | (14243) |
| General and administrative expenses | 3 | (3448) | (2996) | (6096) |
| Management fees, related parties | 3 | (728) | (1177) | (1384) |
| Management fees, other | 1 | (760) | (503) | (503) |
| Amortization and write-off of special survey costs | 7 | (388) | (382) | (599) |
| Depreciation | 5 | (5503) | (6904) | (7574) |
| Allowance reduction for credit losses | 2 | 78 | 38 | 22 |
| Gain on sale of vessels, net | 5 | 25125 |  |  |
| **Operating income** |  | **41869** | **16724** | **5918** |
| **Other expenses, net:** |  |  |  |  |
| Loss from debt extinguishment |  | (379) |  |  |
| Loss from financial derivative instrument | 12 | (59) |  |  |
| Interest and finance costs | 14, 3 | (5835) | (6529) | (5775) |
| Interest income | 2 | 1240 | 2312 | 1792 |
| **Total other expenses, net** |  | **(5033)** | **(4217)** | **(3983)** |
| **Net income** |  | $**36836** | $**12507** | $**1935** |
| Loss attributable to non-controlling interest |  | 201 | 361 | 59 |
| **Net income attributable to Pyxis Tankers Inc.** |  | $**37037** | $**12868** | $**1994** |
| Dividend Series A Convertible Preferred Stock |  | (810) | (562) |  |
| Deemed dividend from Series A Convertible Preferred Stock Redemption |  |  | (2682) |  |
| **Net income attributable to common shareholders** |  | $**36227** | $**9624** | $**1994** |
| Net income per common share, basic | 11 | $3.38 | $0.91 | $0.19 |
| Net income per common share, diluted | 11 | $2.94 | $0.91 | $0.19 |
| Weighted average number of common shares, basic | 11 | 10701059 | 10524511 | 10422154 |
| Weighted average number of common shares, diluted | 11 | 12585777 | 10524511 | 10422154 |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

**PYXIS TANKERS INC.**

**Consolidated Statements of Stockholders' Equity**

For the years ended December 31, 2023, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A<br> Convertible** | **Series A<br> Convertible** | | | | | | | |
|  | **Preferred Shares** | **Preferred Shares** | **Common Stock** | **Common Stock** | | | | | |
|  | **# of shares** | **Par Value** | **# of shares** | **Par Value** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Pyxis Tankers**<br>**Inc Total**<br> **Equity** |<br>**Non-controlling**<br>**interest** |<br>**Total**<br>**Equity** |
| **Balance January 1, 2023** | **&nbsp;&nbsp;&nbsp;&nbsp;449473** |  | **10614319** | $**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11** | $**111869** | $**(50509)** | $**&nbsp;&nbsp;&nbsp;&nbsp; 61371** | **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—** | $**61371** |
| Conversion of Series A Convertible Preferred Shares to common stock | (45842) |  | 204819 |  | 3 | (1) | 2 |  | 2 |
| Preferred stock dividends ($1.938 per share) |  |  |  |  |  | (797) | (797) |  | (797) |
| Common stock re-purchase program |  |  | (331591) |  | (1244) |  | (1244) |  | (1244) |
| Restricted common stock grants |  |  | 55000 |  | 171 |  | 171 |  | 171 |
| Net income/(loss) |  |  |  |  |  | 37037 | 37037 | (201) | 36836 |
| Contributions from non-controlling interest |  |  |  |  |  |  |  | 4520 | 4520 |
| **Balance December 31, 2023** | **403631** |  | **10542547** | $**11** | $**110799** | $**(14270)** | $**96540** | $**4319** | $**100859** |
| **Balance January 1, 2024** | **403631** |  | **10542547** | $**11** | $**110799** | $**(14270)** | $**96540** | $**4319** | $**100859** |
| Conversion of Series A Convertible Preferred Shares to common stock | (460) |  | 2053 |  |  |  |  |  |  |
| Preferred stock dividends ($1.6150 per share) |  |  |  |  |  | (586) | (586) |  | (586) |
| Common stock re-purchase program |  |  | (331558) |  | (1486) |  | (1486) |  | (1486) |
| Restricted common stock grants |  |  | 72500 |  | 62 |  | 62 |  | 62 |
| Net income/(loss) |  |  |  |  |  | 12868 | 12868 | (361) | 12507 |
| Common stock issued for vessel acquisition |  |  | 267857 |  | 1382 |  | 1382 |  | 1382 |
| Deemed dividend from vessel acquisition |  |  |  |  | (5325) |  | (5325) | (3550) | (8875) |
| Contributions from non-controlling interest |  |  |  |  |  |  |  | 5880 | 5880 |
| Redemption of Series A Convertible Preferred shares | (403171) |  |  |  | (7397) | (2682) | (10079) |  | (10079) |
| **Balance December 31, 2024** | **—** |  | **10553399** | $**11** | $**98035** | $**(4670)** | $**93376** | $**6288** | $**99664** |
| **Balance January 1, 2025** | **—** |  | **10553399** | $**11** | $**98035** | $**(4670)** | $**93376** | $**6288** | $**99664** |
| Restricted common stock grants |  |  |  |  | 263 |  | 263 |  | 263 |
| Common stock re-purchase program |  |  | (134538) |  | (472) |  | (472) |  | (472) |
| Canceled shares |  |  | (2) | (1) |  |  |  |  | (1) |
| Net income/(loss) |  |  |  |  |  | 1994 | 1994 | (59) | 1935 |
| **Balance December 31, 2025** |  |  | **10418859** | $**10** | $**97826** | $**(2676)** | $**95160** | $**6229** | $**101389** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements

**PYXIS TANKERS INC.**

**Consolidated Statements of Cash Flows** 

For the years ended December 31, 2023, 2024 and 2025

(Expressed in thousands of U.S. dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2023** | **2024** | **2025** |
| **Cash flows from operating activities:** |  |  |  |  |
| Net income |  | $**36836** | $**12507** | $**1935** |
| **Adjustments to reconcile net income to net cash provided by operating activities** |  |  |  |  |
| Depreciation | 5 | 5503 | 6904 | 7574 |
| Amortization and write-off of special survey costs | 7 | 388 | 382 | 599 |
| Allowance reduction for credit losses |  | (78) | (38) | (22) |
| Amortization and write-off of financing costs | 14 | 247 | 238 | 226 |
| Amortization of restricted common stock grants |  | 171 | 62 | 263 |
| Loss from debt extinguishment | 8 | 379 |  |  |
| Loss from financial derivative instrument | 12 | 59 |  |  |
| Gain on sale of vessels, net |  | (25125) |  |  |
| **Changes in assets and liabilities:** |  |  |  |  |
| Inventories |  | 954 | (932) | 1353 |
| Trade accounts receivable |  | 5583 | (38) | 3054 |
| Prepayments and other assets |  | (97) | (405) | 58 |
| Insurance claim receivable | 6 | 608 | (245) |  |
| Special survey cost | 7 | (1379) | (100) | (1457) |
| Trade accounts payable |  | (1094) | 538 | (633) |
| Due to/(from) related parties | 3 | (231) | 177 | 712 |
| Hire collected in advance | 2 | (960) | (1062) | 486 |
| Accrued and other liabilities |  | (322) | 858 | (539) |
| **Net cash provided by operating activities** |  | $**21442** | $**18846** | $**13609** |
| **Cash flow from investing activities:** |  |  |  |  |
| Proceeds from the sale of vessels, net |  | 64213 |  |  |
| Advances for vessel acquisition | 1 | (2663) |  |  |
| Payments for vessel acquisition | 5 | (28500) | (44969) |  |
| Ballast water treatment system installation | 5 | (768) |  |  |
| Vessel additions | 5 | (77) | (24) | (699) |
| Vessel additions prepayments |  |  | (170) |  |
| Proceeds from insurance claim | 6 |  |  | 341 |
| Short-term investment in time deposits | 2 | (20000) | 3000 | (1000) |
| **Net cash provided by/(used in) investing activities** |  | $**12205** | $**(42163)** | $**(1358)** |
| **Cash flows from financing activities:** |  |  |  |  |
| Proceeds from long-term debt | 8 | 34500 | 31000 | 33350 |
| Repayment of long-term debt | 8 | (38760) | (7307) | (30673) |
| Contributions from non-controlling interests | 2.a | 4520 | 5880 |  |
| Redemption of Series A Convertible Preferred shares |  |  | (10079) |  |
| Repayment of promissory note |  | (6000) |  |  |
| Financial derivative instrument | 12 | 561 |  |  |
| Payment of financing costs |  | (277) | (357) | (144) |
| Preferred stock dividends paid | 9 | (797) | (587) |  |
| Common stock re-purchase program | 9 | (1244) | (1486) | (472) |
| Deemed dividend from Konkar Venture acquisition | 5, 9 | **—** | **(7493)** |  |
| **Net cash provided by/(used in) financing activities** |  | $**(7497)** | $**9571** | $**2061** |
| Net increase/(decrease) in cash and cash equivalents and restricted cash |  | 26150 | (13746) | 14312 |
| Cash and cash equivalents and restricted cash at the beginning of the period |  | 10189 | 36339 | 22593 |
| **Cash and cash equivalents and restricted cash at the end of the period** |  | $**36339** | $**22593** | $**36905** |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

**PYXIS TANKERS INC.**

**Consolidated Statements of Cash Flows** 

For the years ended December 31, 2023, 2024 and 2025

(Expressed in thousands of U.S. dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| **SUPPLEMENTAL INFORMATION:** |  |  |  |
| Cash paid for interest | $5630 | $5908 | $6160 |
| Issuance of common stock financing acquisition of vessel "Konkar Venture" (Non-cash financing activities) |  | 1382 |  |
| Unpaid portion of Special Survey cost | 126 |  | 21 |
| Unpaid portion of financing costs | 16 |  | 35 |
| Unpaid portion of Ballast Water Treatment System installation | 43 |  |  |

---

The accompanying notes are an integral part of these Consolidated Financial Statements.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**1. Basis of Presentation and General Information:**

PYXIS TANKERS INC. ("Pyxis") is a corporation incorporated in the Republic of the Marshall Islands on March 23, 2015. As of December 31, 2025, Pyxis owns 100% ownership interest in the following four vessel-owning companies:

● SEVENTHONE CORP., established under the laws of the Republic of the Marshall Islands ("Seventhone");

● TENTHONE CORP., established under the laws of the Republic of the Marshall Islands ("Tenthone");

● ELEVENTHONE CORP., established under the laws of the Republic of the Marshall Islands ("Eleventhone");

● DRYTWO CORP., established under the laws of the Republic of the Marshall Islands ("Drytwo")

As of December 31, 2025, the Company also owns 60% ownership or a $6,780 equity investment in DRYKON MARITIME Corp. ("Drykon"), an entity that owns through its wholly owned subsidiary, DRYONE CORP. ("Dryone"), a 2016 Japanese built Ultramax dry-bulk carrier, the *Konkar Ormi*. The remaining 40% is owned by an entity related to the Company's Chief Executive Officer and Chairman. The delivery of the vessel occurred on September 14, 2023.

As of December 31, 2025, the Company also owns 60% ownership or a $8,700 equity investment in ACCUSHIP MARITIME Ltd. ("Accuship"), an entity that owns through its wholly owned subsidiary, DRYTHREE CORP. ("Drythree"), a 2015 Japanese built Kamsarmax dry-bulk carrier, the *Konkar Venture*. The remaining 40% is owned by an entity related to the Company's Chief Executive Officer and Chairman. The *Konkar Venture*, a sister ship to the Company's eco-efficient *Konkar Asteri*, was delivered on June 28, 2024.

The Company consolidates in its financial statements the aforementioned dry-bulk joint ventures for the *Konkar Ormi* and *Konkar Venture* under the relevant ASC 810 guidelines as a result of its control over Drykon and Accuship. As a result of the transactions, the Company reports a non-controlling interest in its accompanying Consolidated Financial Statements. Dryone and Drythree are established under the laws of the Marshall Islands and, collectively with Eleventhone, Seventhone, Tenthone and Drytwo are the "Vessel-owning companies".

Pyxis also currently owns 100% ownership interest in the following non-vessel owning dormant companies:

● SECONDONE CORPORATION LTD, established under the laws of the
Republic of the Marshall Islands ("Secondone") that owned the vessel "Northsea Alpha" that was sold to an unaffiliated
third party on January 28, 2022;

● THIRDONE CORPORATION LTD, established under the laws of the
Republic of the Marshall Islands ("Thirdone") that owned the vessel "Northsea Beta" that was sold to an unaffiliated
third party on March 1, 2022;

● FOURTHONE CORPORATION LTD, established under the laws of the
Republic of the Marshall Islands ("Fourthone") that owned the vessel "Pyxis Malou" that was sold to an unaffiliated
third party on March 23, 2023;

● SIXTHONE CORP., established under the laws of the Republic
of the Marshall Islands ("Sixthone") that owned the vessel "Pyxis Delta" that was sold to an unaffiliated third
party on January 13, 2020;

● EIGHTHONE CORP., established under the laws of the Republic
of the Marshall Islands ("Eighthone") that owned the vessel "Pyxis Epsilon" that was sold to an unaffiliated
third party on December 15, 2023;

● MARITIME TECHNOLOGIES CORP, established under the laws of Delaware;

● TWELFTHONE CORP., established on May 15, 2025 under the laws
of the Republic of the Marshall Islands ("Twelfthone") and

● DRYFOUR CORP., established on May 15, 2025 under the laws of
the Republic of the Marshall Islands ("Dryfour").

All of the Vessel-owning companies are engaged in the marine transportation of liquid cargoes through the ownership and operation of tanker vessels and dry commodities through the ownership and operation of dry-bulk carriers, as listed below:

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**1.** **Basis of Presentation and General Information: -Continued:** 

Schedule of Ownership and Operation of Tanker Vessels

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Vessel-owning**<br> **Company** | **Incorporation**<br> **date** | **Vessel** | **DWT** | **Year**<br> **built** | **Acquisition**<br> **date** |
| **Tanker fleet** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Seventhone | 31-May-2011 | *Pyxis Theta* | 51795 | 2013 | 16-Sep-2013 |
| &nbsp;&nbsp;&nbsp;Tenthone | 22-Apr-2021 | *Pyxis Karteria* | 46652 | 2013 | 15-Jul-2021 |
| &nbsp;&nbsp;&nbsp;Eleventhone | 11-Sep-2021 | *Pyxis Lamda* | 50145 | 2017 | 20-Dec-2021 |
| **Dry-bulk fleet** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Dryone | 04-Jul-2023 | *Konkar Ormi* | 63520 | 2016 | 14-Sep-2023 |
| &nbsp;&nbsp;&nbsp;Drytwo | 24-Nov-2023 | *Konkar Asteri* | 82013 | 2015 | 15-Feb-2024 |
| &nbsp;&nbsp;&nbsp;Drythree | 29-May-2024 | *Konkar Venture* | 82099 | 2015 | 28-Jun-2024 |

---

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include the accounts of Pyxis and its subsidiaries as presented in Note 1 above (collectively the "Company"), as of December 31, 2024 and 2025 and for the years ended December 31, 2023, 2024 and 2025.

The Company's vessels are engaged in the transportation of refined petroleum products and other liquid bulk items, such as organic chemicals and vegetable oils, and dry-bulk commodities. The vessels *Pyxis Theta, Pyxis Karteria and Pyxis Lamda* are medium-range product tankers and *Konkar Ormi, Konkar Asteri* and *Konkar Venture* are dry-bulk carriers. All of the Company's tanker vessels are double hulled.

PYXIS MARITIME CORP. ("Maritime"), a corporation established under the laws of the Republic of the Marshall Islands, which is beneficially owned by Mr. Valentis, provides certain ship management services to the Company's tanker vessels (Note 3).

With effect from the delivery of each tanker vessel, the crewing and technical management of the vessels are contracted to INTERNATIONAL TANKER MANAGEMENT LTD. ("ITM") with permission from Maritime. ITM is an unrelated third party technical manager, represented by its branch based in Dubai, UAE. Each ship-management agreement with ITM is in force until it is terminated by either party. The ship management agreements can be cancelled either by the Company or ITM for any reason at any time upon three months' advance notice. Management fees charged by ITM are separately presented as "management fees, other" in the Company's Consolidated Statements of Comprehensive Income.

Konkar Shipping Agencies, S.A. ("Konkar Agencies"), a company beneficially owned by Mr. Valentis, provides similar technical management and commercial management services for its dry-bulk vessels.

As of December 31, 2024 and December 31, 2025, Mr. Valentis beneficially owned 56.9% and 57.7%, respectively, of the Company's common stock.

**2. Significant Accounting Policies:**

***(a) Principles of Consolidation:*** The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. The Consolidated Financial Statements include the accounts of Pyxis and its subsidiaries as presented in Note 1 above. All intercompany balances and transactions have been eliminated upon consolidation.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**2. Significant Accounting Policies: -Continued:**

Pyxis, as the holding company, determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Under Accounting Standards Codification ("ASC") 810 "Consolidation" a voting interest entity is an entity in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make financial and operating decisions. Pyxis consolidates voting interest entities in which it owns all, or at least a majority (generally, greater than 50%), of the voting interest. Variable interest entities ("VIE") are entities as defined under ASC 810-10, that in general either do not have equity investors with voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. A controlling financial interest in a VIE is present when a company absorbs a majority of an entity's expected losses, receives a majority of an entity's expected residual returns, or both. The company with a controlling financial interest, known as the primary beneficiary, is required to consolidate the VIE. Pyxis evaluates all arrangements that may include a variable interest in an entity to determine if it may be the primary beneficiary, and would be required to include assets, liabilities and operations of a VIE in its Consolidated Financial Statements.

On July 5, 2023, the Company acquired a 60% equity interest in the newly incorporated entity Drykon for a consideration of $6.78 million in cash. The remaining 40% was acquired by an entity related to the Company's Chief Executive Officer and Chairman for a consideration of $4.52 million in cash. An Agreement has been signed among the shareholders of Drykon pursuant to which all matters about Drykon's structure, operations and governance are determined and agreed in writing. Management assessed the terms of the agreement and concluded that there is disproportionality in between the financial interest and voting rights of the Company. More specifically, Pyxis owns 60% of the equity interest in Drykon. However, there are matters in the agreement requiring the unanimous vote of all directors resulting in Pyxis only holding a 50% share of the voting rights for these specific matters. A number of these matters that require a unanimous vote have been determined by the management to relate to activities that significantly affect the economic performance of Drykon and are considered by the management to be participating rights rather than protective in nature. Based on the above and the relevant guidance under ASC 810 "Consolidation", management has assessed that Drykon is a VIE. Further, management assessed that Pyxis is the primary beneficiary of Drykon and therefore consolidates Drykon because (i) Pyxis has the power to direct the activities of Drykon that most significantly affect its economic performance through decisions made by its majority of the Board of Directors and (ii) Pyxis has the obligation to absorb losses of, and the right to receive benefits from, Drykon that could potentially be significant through its 60% equity interest and its guarantee of up to 60% of the outstanding indebtedness of Drykon's wholly-owned subsidiary, Dryone Corp. The fact that the remaining 40% interest is held by a related party of the Company's Chief Executive Officer and Chairman was also considered in management's analysis under ASC 810. No gain or loss was recognized upon the initial consolidation of the VIE. Drykon is the 100% owner of Dryone Corp., which owns the vessel *Konkar Ormi*, a 2016 Japanese built 63,250 dwt Ultramax carrier. The acquisition of the vessel was financed through a combination of equity contribution and external loan. Pyxis serves as a guarantor for an amount not exceeding 60% of the then outstanding indebtedness of Drykon's wholly-owned subsidiary, Dryone Corp., under its external loan. For the years ended December 31, 2023, 2024 and 2025, Drykon recorded net losses of $502 and $541 and net income of $169, respectively, of which $301, $325 and $101 were attributable to Pyxis and $201, $216 and $68, respectively, were attributable to non-controlling interest ("NCI"). The VIE's assets and liabilities that have been consolidated in the accompanying Consolidated Balance Sheets are analyzed per classification as follows:

Schedule of VIE's Assets and Liabilities

---

| | | |
|:---|:---|:---|
| **Drykon** | **December 31,** | **December 31,** |
|  | **2024** | **2025** |
| Total current assets | $1723 | $1045 |
| Total fixed assets, net | 26730 | 25385 |
| **Total assets:** | $**28453** | $**26430** |
| Total current liabilities | $2364 | $1345 |
| Total non-current liabilities | 15832 | 14659 |
| Total stockholders' equity | 10257 | 10426 |
| **Total liabilities and stockholders' equity** | $**28453** | $**26430** |

---

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**2. Significant Accounting Policies: -Continued:**

On June 28, 2024, the Company completed the acquisition of an 82,099 dwt eco-efficient Kamsarmax dry-bulk carrier built in 2015 at Jiangsu New Yangzi Shipbuilding, through the 60% equity interest in the newly incorporated entity Accuship Maritime Ltd. for a consideration of $7,320 in cash, and the issuance of 267,857 restricted common shares of the Company to the seller of the vessel acquired, Eightytwo Corp., an entity controlled by our Chairman and Chief Executive Officer. Upon acquisition of the Konkar Venture from Eightytwo Corp. in a transaction among entities under common control, the Company recognized the $8,875 excess of the consideration transferred over the seller's vessel book value at the transaction date, as a deemed dividend, which was allocated to Pyxis Tankers' equity and non-controlling interests' equity in accordance with their ownership percentages. The remaining 40% was acquired by an entity related to the Company's Chief Executive Officer and Chairman for a consideration of $5,880 in cash. An Agreement has been signed among the shareholders of Accuship pursuant to which all matters about Accuship's structure, operations and governance are determined and agreed in writing. Management assessed the terms of the agreement and concluded that there is disproportionality in between the financial interest and voting rights of the Company. More specifically, Pyxis owns 60% of the equity interest in Accuship. However, there are matters in the agreement requiring the unanimous vote of all directors resulting in Pyxis only holding a 50% share of the voting rights for these specific matters. A number of these matters that require a unanimous vote have been determined by the management to relate to activities that significantly affect the economic performance of Accuship and are considered by the management to be participating rights rather than protective in nature. Based on the above and the relevant guidance under ASC 810, "Consolidation," management has assessed that Accuship is a VIE. Further, management assessed that Pyxis is the primary beneficiary of Accuship and therefore consolidates Accuship because (i) Pyxis has the power to direct the activities of Accuship that most significantly affect its economic performance through decisions made by its majority of the Board of Directors and (ii) Pyxis has the obligation to absorb losses of, and the right to receive benefits from, Accuship that could potentially be significant through its 60% equity interest and its guarantee of up to 60% of the outstanding indebtedness of Accuship's wholly-owned subsidiary, Drythree Corp. The fact that the remaining 40% interest is held by a related party of the Company's Chief Executive Officer and Chairman was also considered in management's analysis under ASC 810. No gain or loss was recognized upon the initial consolidation of the VIE. Accuship is the 100% owner of the entity Drythree Corp., owner of the vessel *Konkar Venture*. The acquisition of the vessel was financed through a combination of equity contribution and external loan. Pyxis serves as a guarantor for an amount not exceeding 60% of the then outstanding indebtedness of Accuship's wholly-owned subsidiary, Drythree Corp., under its external loan. For the years ended December 31, 2024 and December 31, 2025 Accuship recorded a net loss of $361 and $316, respectively, of which $217 and $189 were attributable to Pyxis and $144 and $127 were attributable to the non-controlling interest ("NCI"). The VIE's assets and liabilities that have been consolidated in the accompanying Consolidated Balance Sheets are analyzed per classification as follows:

---

| | | |
|:---|:---|:---|
| **Accuship** | **December 31,** | **December 31,** |
|  | **2024** | **2025** |
| Total current assets | $726 | $1291 |
| Total fixed assets, net | 20563 | 19630 |
| Total other non-current assets |  | 580 |
| **Total assets:** | $**21289** | $**21501** |
| Total current liabilities | $1415 | $3178 |
| Total non-current liabilities | 14529 | 13294 |
| Total stockholders' equity | 5345 | 5029 |
| **Total liabilities and stockholders' equity** | $**21289** | $**21501** |

---

***(b) Use of Estimates:*** The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates.

***(c) Comprehensive Income:*** The Company follows the provisions of ASC 220 "Comprehensive Income", which requires separate presentation of certain transactions which are recorded directly as components of equity. The Company had no transactions which affect comprehensive income during the years ended December 31, 2023, 2024 and 2025 and accordingly, comprehensive income was equal to net income.

***(d) Foreign Currency Translation:*** The functional currency of the Company is the U.S. dollar as the Company's vessels operate in international shipping markets and, therefore, primarily transact business in U.S. dollars. The Company's accounting records are maintained in U.S. dollars. Transactions involving other currencies during the year are converted into U.S. dollars using the exchange rates in effect at the time of the transactions. At the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Resulting gains or losses are included in Vessel operating expenses in the accompanying Consolidated Statements of Comprehensive Income. All amounts in the Consolidated Financial Statements are presented in thousand U.S. dollars rounded to the nearest thousand.

 ****

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**2. Significant Accounting Policies: -Continued:**

***(e) Commitments and Contingencies:*** Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made. Provisions are reviewed at each balance sheet date. Disclosure of a contingency is made if there is at least a reasonable possibility that a change in the Company's estimate of its probable liability could occur in the near future.

 ****

***(f) Insurance Claims Receivable:*** The Company records insurance claim recoveries for insured losses incurred on damage to fixed assets and for insured crew medical expenses. Insurance claim recoveries are recorded, net of any deductible amounts, at the time the Company's fixed assets suffer insured damages or when crew medical expenses are incurred, recovery is probable under the related insurance policies and the claim is not subject to litigation. The Company assessed the provisions of ASC 326 regarding the collectability of insurance claims recoveries and concluded that there is no material impact on the Company's Consolidated Financial Statements as of December 31, 2024 and 2025, and thus no provision for credit losses was recorded as of those dates.

***(g) Cash and Cash Equivalents, Time Deposits and Restricted Cash:*** The Company considers highly liquid investments such as time deposits and certificates of deposit with an original maturity of three months or less to be cash equivalents. Time deposits with an original maturity of more than three months are separately presented as time deposits. During the years ended December 31, 2024 and 2025, the Company placed new time deposits exceeding three months of $19,500 and $32,000, respectively, and during the same periods, deposits of $22,500 and $31,000 matured. Restricted cash is associated with pledged retention accounts in connection with the loan repayments and minimum liquidity requirements under the loan agreements discussed in Note 8 and is presented separately in the accompanying Consolidated Balance Sheets. The Company assessed the provisions of ASC 326 for cash equivalents, time deposits, and restricted cash and concluded that the impact on the Company's Consolidated Financial Statements as of December 31, 2024 and 2025 was immaterial and thus no provision for credit losses was recorded as of those dates.

***(h) Income Taxes:*** Neither Pyxis Tankers Inc. nor any of its subsidiaries are subject to income taxes. More specifically, under the laws of the Republic of the Marshall Islands, the country of incorporation of the Company and, as of December 31, 2024 and 2025, all of the Company's vessel-owning companies, and/or the vessels' registration, the vessel-owning companies and Pyxis Tankers Inc. as well, are not liable for any Marshall Islands income tax on their income.

Under the laws of the Republic of Malta, the country of incorporation of certain of the Company's vessel-owning companies, and/or the vessels' registration during the years ended December 31, 2023, these vessel-owning companies were not liable for any Maltese income tax on their income derived from shipping operations, the only operations they had in Malta.

The vessel-owning companies with vessels that have called on the United States during the relevant years of operation are obliged to file income tax returns with the Internal Revenue Service. The applicable income tax would be 50% of 4% of U.S. related gross transportation income unless an exemption applies. The Company believes that based on current legislation the relevant vessel-owning companies are entitled to an exemption because they satisfy the relevant requirements, namely that (i) the related vessel-owning companies are incorporated in a jurisdiction granting an equivalent exemption to U.S. corporations and (ii) over 50% of the ultimate stockholders of the vessel-owning companies are residents of a country granting an equivalent exemption to U.S. persons. The Company and each of its vessel-owning subsidiaries believe that they qualify for this statutory tax exemption for the 2021 through 2025 taxable years (the tax years that remain subject to examination) and accordingly, the Company believes that it is not subject to U.S. federal income tax. The Company has taken this position for United States federal income tax return reporting purposes.

The Company also believes the vessel owning companies are exempt from income taxes in the other ports where they have called under various exemptions for the shipping industry. Instead, a non-income-based tax is levied in certain of the countries where the vessels trade based on their tonnage, which is included in Vessel operating expenses in the accompanying Consolidated Statements of Comprehensive Income.

 ****

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**2. Significant Accounting Policies: -Continued:**

 ****

***(i) Inventories:*** Inventories consist of lubricants and bunkers (where applicable) on board the vessels, which are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out ("FIFO") method.

***(j) Trade Accounts Receivable, Net and Hire Collected in Advance:*** Under spot voyage charters, the Company normally issues its invoices to charterers at the completion of the voyage. Invoices are due upon issuance of the invoice. Since the Company satisfies its performance obligation over the time of the spot charter, the Company recognizes its unconditional right to consideration in trade accounts receivable, net of an allowance for credit losses. Trade accounts receivable from spot voyage charters as of December 31, 2024 and 2025, amounted to $4,609 and $4, respectively. The allowance reduction for expected credit losses at December 31, 2024 and 2025 was $22 and nil, respectively (Note 2(k)). Under time charter contracts, the Company normally issues invoices on a monthly basis 30 days in advance of providing its services. Trade accounts receivable from time charters as of December 31, 2024 and 2025, amounted to $453 and $2,003, respectively. Hire collected in advance includes cash received in advance of performance under the contract prior to the balance sheet date and is realized when the associated revenue is recognized under the contract in periods after such date. The hire collected in advance as of December 31, 2024 and 2025, was $111 and $597, respectively and concerns hire received in advance from time charters.

***(k) Allowance reduction for credit losses:*** The Company evaluates credit losses on financial assets within the scope of ASC 326 using a forward-looking expected credit loss model. Trade receivables arising from voyage charters and other revenue contracts accounted for under ASC 606 are within the scope of ASC 326. Receivables arising from operating leases (time charters) are evaluated under ASC 842 and are not included in the ASC 326 allowance. The Company assesses collectability based on a combination of historical loss experience, aging/past-due status, customer-specific information, current market conditions, and reasonable and supportable forecasts, and evaluates receivables on a pooled basis when similar risk characteristics exist and individually when specific collectability issues are identified. The allowance for expected credit losses is recorded as a reduction of trade accounts receivable and changes in the allowance, if any, are recognized in the Consolidated Statements of Comprehensive Income.

As of December 31, 2024 and December 31, 2025, the allowance for expected credit losses was $22 and nil, respectively (Note 2(j)). The nil allowance at December 31, 2025 primarily reflects that during 2025 the Company's fleet was employed mainly on time charters, and therefore the Company did not have material receivables within the scope of ASC 326, including demurrage receivables. For the year ended December 31, 2024, a net allowance reduction of $38 was recognized in the accompanying Consolidated Statements of Comprehensive Income. For the year ended December 31, 2025, a net allowance reduction of $22 was recognized, which reversed the allowance balance existing as of December 31, 2024, resulting in a nil allowance balance at December 31, 2025.

***(l) Vessels, Net:*** Vessels are stated at cost, which consists of the contract price or the fair value of the consideration given on the acquisition date and any material expenses incurred in connection with the acquisition (initial repairs, improvements, delivery expenses and other expenditures to prepare the vessel for her initial voyage, as well as professional fees directly associated with the vessel acquisition). Subsequent expenditures for major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise, these amounts are expensed as incurred.

The cost of each of the Company's vessels is depreciated from the date of acquisition on a straight-line basis over the vessels' remaining estimated economic useful life, after considering the estimated residual value. A vessel's residual value is equal to the product of its lightweight tonnage and estimated scrap rate per ton which is assessed at $0.34/ton. The Company estimates the useful life of the Company's vessels to be 25 years from the date of initial delivery from the shipyard. In the event that future regulations place limitations over the ability of a vessel to trade on a worldwide basis, its remaining useful life will be adjusted at the date such regulations are adopted.

***(m) Impairment of Long-Lived Assets:*** The Company reviews its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount plus the unamortized dry-dock and special survey balances of these assets may not be recoverable.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**2. Significant Accounting Policies: -Continued:**

In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the vessels' future performance, with the significant assumptions being related to time charter equivalent rates by vessel type, while other assumptions include vessels' operating expenses, management fees, vessels' capital expenditures, vessels' residual value, fleet utilization and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well as future expectations.

To the extent impairment indicators are present, the projected net operating cash flows are determined by considering the charter revenues from existing time charters for the fixed days and an estimated daily future charter rate for the uncontracted days based on the ten year average historical charter rates, of similar type and size vessels, for the period up to the end of the estimated useful life of the vessel. When the ten year average of historical charter rates is not available for a type of vessel, the Company uses the average of historical charter rates of the available period, expected outflows for vessels' operating expenses, planned dry-docking and special survey expenditures, management fees expenditures which are adjusted every year, pursuant to the Company's existing group management agreement, and fleet utilization. The residual value used in the impairment test is estimated to be $0.34 per lightweight ton in accordance with the vessels' depreciation policy.

Should the carrying value plus the unamortized dry-dock and survey balance of the vessel exceed its estimated future undiscounted net operating cash flows, impairment is measured based on the excess of the carrying value plus the unamortized dry-dock and survey balance of the vessel over the fair market value of the asset. The Company determines the fair value of its vessels primarily based on third-party valuations, while also considering available market data, including reported vessel sale and purchase transactions and broker market information.

The Company reviews the carrying values of its vessels, together with their unamortized dry-docking and special survey balances, for impairment whenever events or changes in circumstances indicate that the carrying amount of a vessel may not be recoverable. When indicators of impairment are present and the estimated future undiscounted net operating cash flows are less than the carrying value of the vessels plus the unamortized dry-docking and special survey balances of those vessels, the carrying value is reduced to its estimated fair value, and the difference is recorded as an "Impairment loss" in the consolidated statements of comprehensive income. None of the Company's vessels were classified as held for sale as of December 31, 2024 and 2025.

***(n) Long-lived Assets Classified as Held for Sale:*** The Company classifies long-lived assets and disposal groups as being held-for-sale in accordance with ASC 360, "Property, Plant and Equipment", when: (i) management, having the authority to approve the action, commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets classified as held-for-sale are measured at the lower of their carrying amount or fair value less costs to sell. According to ASC 360-10-35, the fair value less costs to sell of the long-lived asset (disposal group) should be assessed at each reporting period it remains classified as held-for-sale. Subsequent changes in the long-lived asset's fair value less costs to sell (increase or decrease) would be reported as an adjustment to its carrying amount, not exceeding the carrying amount of the long-lived asset at the time it was initially classified as held-for-sale. These long-lived assets are not depreciated once they meet the criteria to be classified as held-for-sale and are classified in current assets on the Consolidated Balance Sheet. No long-lived assets were classified as held for sale as of December 31, 2024 and 2025.

***(o) Financial Derivative Instruments:*** The Company enters into interest rate derivatives to manage its exposure to fluctuations of interest rate risk associated with its borrowings, from time to time. All derivatives are recognized in the Consolidated Financial Statements at their fair value. The fair value of the interest rate derivatives is based on a discounted cash flow analysis. When such derivatives do not qualify for hedge accounting, the Company recognizes their fair value changes in current period earnings. When the derivatives qualify for hedge accounting, the Company recognizes the effective portion of the gain or loss on the hedging instrument directly in other comprehensive income/(loss), while the ineffective portion, if any, is recognized immediately in current period earnings. The Company, at the inception of the transaction, documents the relationship between the hedged item and the hedging instrument, as well as its risk management objective and the strategy of undertaking various hedging transactions. The Company also assesses at hedge inception whether the hedging instruments are highly effective in offsetting changes in the cash flows of the hedged items.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share and per share data)

**2. Significant Accounting Policies: -Continued:**

The Company discontinues cash flow hedge accounting if the hedging instrument expires and it no longer meets the criteria for hedge accounting or its designation is revoked by the Company. At that time, any cumulative gain or loss on the hedging instrument recognized in equity is kept in equity until the forecasted transaction occurs. When the forecasted transaction occurs, any cumulative gain or loss on the hedging instrument is recognized in the Consolidated Statements of Comprehensive Income/(loss). If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity is transferred to the current period's Consolidated Statements of Comprehensive Income as financial income or expense.

***(p) Accounting for Special Survey and Dry-docking Costs:*** The Company follows the deferral method of accounting for special survey and dry-docking costs, whereby actual costs incurred at the yard and parts used in the dry-docking or special survey, are deferred and are amortized on a straight-line basis over the period through the date the next survey is scheduled to become due. Costs deferred are limited to actual costs incurred at the shipyard and costs incurred in the dry-docking or special survey. If a dry-dock or a survey is performed prior to the scheduled date, any remaining unamortized balances of the previous dry-dock and survey are immediately written off. Unamortized dry-dock and survey balances of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the period of the vessel's sale. Furthermore, unamortized dry-docking and special survey balances of vessels that are classified as assets held for sale and are not recoverable as of the date of such classification are immediately written off and included in the resulting gain or loss on vessels held for sale.

***(q) Interest Income, Interest and Finance Costs:*** The Company incurs interest expense on outstanding indebtedness under its existing credit facilities, which is included in interest and finance costs. Finance costs also include financing and legal costs in connection with establishing and amending those facilities, which are deferred and amortized to interest and finance costs during the life of the related debt using the effective interest method. Costs associated with new loans or refinancing of existing ones, which meet the criteria for debt modification, including fees paid to lenders or required to be paid to third parties on the lender's behalf for obtaining new loans or refinancing existing loans, are recorded as a direct deduction from the carrying amount of the debt liability. Such costs are deferred and amortized to interest and finance costs in the Consolidated Statements of Comprehensive Income during the life of the related debt using the effective interest method. For loans repaid or refinanced that meet the criteria for debt extinguishment, the difference between the settlement price and the net carrying amount of the debt being extinguished (which includes any deferred debt issuance costs) is recognized as a gain or loss from debt extinguishment in the Consolidated Statements of Comprehensive Income. Commitment fees relating to undrawn loan principal are expensed as incurred. Further, the Company earns interest on cash deposits in interest-bearing accounts and on interest-bearing securities, which is included in interest income. The Company may incur additional interest expense in the future on its outstanding borrowings and under future borrowings. Interest income from time deposits for the years ended December 31, 2023, 2024 and 2025 amounted to $1,240, $2,312 and $1,792, respectively, and is presented separately in the accompanying Consolidated Statements of Comprehensive Income. The unamortized portion of deferred debt issuance costs is presented as a direct deduction from the corresponding debt liability.

***(r) Fair Value Measurements:*** The Company follows the provisions of ASC 820 "Fair Value Measurements and Disclosures", which defines fair value and provides guidance for using fair value to measure assets and liabilities. The guidance creates a fair value hierarchy of measurement and describes fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. In accordance with the requirements of accounting guidance relating to Fair Value Measurements, the Company classifies and discloses its assets and liabilities carried at the fair value in one of the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 1: Quoted market prices in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 2: Observable market- based inputs or unobservable inputs that are corroborated by market data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Level 3: Unobservable inputs that are not corroborated by market data.

***(s) Segment Reporting:*** The Company has determined that it operates under two reportable segments, one relating to its operations of the medium range tanker vessels and one to the operations of the dry-bulk vessels. Segment results are evaluated based on segment's profit/(loss) (see also note 15). Furthermore, when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographic information is impracticable.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**2. Significant Accounting Policies: – Continued:**

***(t) Net income per common share:*** Basic net income per common share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding during the period.

The computation of diluted net income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted at the beginning of the periods presented, or issuance date, if later. The treasury stock method is used to compute the dilutive effect of warrants and shares issued under the equity incentive plan and the Promissory Note. The if-converted method is used to compute the dilutive effect of shares which could be issued upon conversion of the Series A Convertible Preferred Shares into common shares. Potential common shares that have an anti-dilutive effect (i.e. those that increase net income per common share or decrease loss per share) are excluded from the calculation of diluted net income per common share.

***(u) Revenues, net:*** The Company generates its revenues from charterers. The vessels are chartered using either spot voyage charters, where a contract is made in the spot market for the use of a vessel for a specific voyage for a specified charter rate, or time charters, where a contract is entered into for the use of a vessel for a specific period of time and a specified daily charter hire rate.

The following table presents the Company's revenue disaggregated by revenue source, net of commissions, for the years ended December 31, 2023, 2024 and 2025:

Schedule of Revenue Disaggregated by Revenue Source

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| Revenues derived from spot voyage charters, net | $12665 | $19769 | $2041 |
| Revenues derived from time charters, net | 32803 | 31773 | 36953 |
| **Revenues, net** | $**45468** | $**51542** | $**38994** |

---

***Revenue from customers (ASC 606):*** The Company assessed its contracts with charterers for spot voyage charters and concluded that there is a single performance obligation for each spot charter, which is to provide the charterer with ocean transportation services from loading to discharge within a specified time period. In addition, the Company has concluded that a spot charter meets the criteria to recognize revenue over time as the charterer simultaneously receives and consumes the benefits of the Company's performance. The Company's method of revenue recognition is on a load-to-discharge basis; accordingly, voyage revenues are recognized from loading of the current spot charter through discharge of the current spot charter, and no voyage revenues are recognized during ballast periods between voyages (i.e., from discharge of the prior spot charter to loading of the current spot charter). Demurrage income represents payments by a charterer to a vessel owner when loading or discharging time exceeds the stipulated time in the spot charter. The Company has determined that demurrage represents variable consideration and estimates demurrage at contract inception. Demurrage income estimated, net of address commission, is recognized over the charter period as the performance obligation is satisfied.

Under a spot charter, the Company incurs and pays for certain voyage expenses, primarily consisting of brokerage commissions, port and canal costs and bunker consumption, during the spot charter (load-to-discharge) and during the ballast voyage (date of previous discharge to loading, assuming a new charter has been agreed before the completion of the previous spot charter). The Company accounts for voyage costs incurred during the ballast voyage as costs to fulfill a contract and records such costs as an asset ("deferred voyage costs"), which is amortized over the related spot charter on a load-to-discharge basis, consistent with the recognition of voyage revenues; voyage costs incurred during the spot charter are expensed as incurred. Under ASC 606 and ASC 340-40, incremental costs of obtaining a contract with a customer would be capitalized and amortized as the performance obligation is satisfied if the applicable criteria are met; however, the Company has adopted the practical expedient in the guidance and expenses such costs as incurred for the Company's spot voyage charters that do not exceed one year. Vessel operating expenses are expensed as incurred. In addition, pursuant to ASC 606 and ASC 842 (discussed below), the Company presents revenues net of address commissions. Address commissions represent a discount provided directly to the charterers based on a fixed percentage of the agreed upon charter. Since address commissions represent a discount (sales incentive) on services rendered by the Company and the Company does not receive a distinct good or service in exchange, these commissions are presented as a reduction of revenue in the accompanying Consolidated Statements of Comprehensive Income. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less, in accordance with the optional exception in ASC 606.

 ****

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**2. Significant Accounting Policies: – Continued:**

 ****

***Leases:*** The Company has assessed time charter contracts under the criteria imposed by ASC 842 and has concluded that these contracts contain a lease with the related executory costs (insurance), as well as non-lease components to provide other services related to the operation of the vessel, with the most substantial service being the crew cost to operate the vessel. The Company has concluded that the criteria for not separating the lease and non-lease components of its time charter contracts are met, since (i) the time pattern of recognizing revenues for crew and other services for the operation of the vessels, is similar to the time pattern of recognizing rental income, (ii) the lease component of the time charter contracts, if accounted for separately, would be classified as an operating lease, and (iii) the predominant component in its time charter agreements is the lease component. Accordingly, revenues from time charter contracts are recognized on a straight-line basis over the term of the lease. After the lease commencement date, the Company evaluates lease modifications, if any, that could result in a change in the accounting for leases. For a lease modification, an evaluation is performed to determine if it should be treated as either a separate lease or a change in the accounting of an existing lease. Brokerage and address commissions on time charter revenues are deferred and amortized over the related time charter period, to the extent revenue has been deferred, since commissions are earned as revenues are earned, and are presented in voyage expenses and as a reduction to voyage revenues (see above), respectively. Vessel operating expenses are expensed as incurred. As per the accounting policy election, the Company expenses other contract fulfillment costs for time charters under ASC 340-40 as incurred.

Revenues for the years ended December 31, 2023, 2024 and 2025, deriving from significant charterers individually accounting for 10% or more of revenues (in percentages of total revenues), were as follows:

Summary of Revenue from Significant Charterers for 10% or More of Revenue

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| | | | |
|:---|:---|:---|:---|
| **Charterer** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| A (\*) | 24% | 31% |  |
| B (\*) | 43% | 20% |  |
| C (\*) |  | 15% |  |
| D (\*) | 18% |  | 20% |
| E (\*) |  |  | 22% |
| F (\*) |  |  | 11% |
| **Total** | **85%** | **66%** | **53%** |

---

\* Tanker vessels segment

***(v) Restricted Cash:*** The Company follows the provisions of ASU 2016-18 "*Statement of Cash Flows (Topic 230): Restricted Cash*", which requires that the statement of cash flows explain the change in the total of cash and cash equivalents and restricted cash. Restricted cash of $1,350 as of December 31, 2024 and 2025, respectively, remained unchanged, and has been aggregated with cash and cash equivalents in both the beginning-of-year and end-of-year line items of the consolidated statements of cash flows for each of the periods presented (Note 8).

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying Consolidated Balance Sheets that sum to the total of the same such amounts that are presented in the accompanying Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2024 and 2025.

Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** | **2025** |
| Cash and cash equivalents | $34539 | $21243 | $35555 |
| Restricted cash, net of current portion | 1800 | 1350 | 1350 |
| **Total cash and cash equivalents and restricted cash** | $**36339** | $**22593** | $**36905** |

---

 ****

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**2. Significant Accounting Policies: – Continued:**

 ****

***(w) Short-term investments:*** Short-term investments consist of short-term time deposits with no early redemption feature and with maturities in excess of three months but less than twelve months at the time of purchase and are stated at amortized cost, which approximates their fair value due to their short-term nature.

As of December 31, 2024 and 2025 short-term investment in cash time deposits amounted to $17,000 and $18,000, respectively. The Company assessed the provisions of ASC 326 for short-term time deposits and concluded that the impact on the Company's Consolidated Financial Statements as of December 31, 2024 and 2025 is immaterial and thus no provision for credit losses was recorded as of those dates.

***(x) Business combinations:*** The Company follows the provisions of ASU No. 2017-01, "Business Combinations" (Topic 805) which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisition (or disposals) of assets or businesses. Under current implementation guidance, to be considered a business, a set must include an input and a substantive process that together significantly contribute to the ability to create outputs. This ASU provides a screen to determine when a set of assets and activities does not constitute a business.

***(y) Debt Modifications and Extinguishments:*** The Company follows the provisions of ASC 470-50, Modifications and Extinguishments, to account for all modifications or extinguishments of debt instruments, except debt that is extinguished through a troubled debt restructuring or a conversion of debt to equity securities of the debtor pursuant to conversion privileges provided in terms of the debt at issuance. This standard also provides guidance on whether an exchange of debt instruments with the same creditor constitutes an extinguishment and whether a modification of a debt instrument should be accounted for in the same manner as an extinguishment. In circumstances where an exchange of debt instruments or a modification of a debt instrument does not result in extinguishment accounting, this standard provides guidance on the appropriate accounting treatment. In evaluating whether an amendment or refinancing with the same creditor should be accounted for as a modification or an extinguishment, the Company applies the cash flow test prescribed by ASC 470-50, including the effect of any fees paid to, or received from, the creditor. If a debt transaction is accounted for as a modification, the Company does not recognize a gain or loss; instead, the existing unamortized deferred financing costs (and any unamortized discount or premium, if applicable) are carried forward and amortized as interest expense over the revised term of the amended debt, together with any incremental debt issuance costs.

During the year ended December 31, 2025, the refinancings of the Company's secured loans with Alpha Bank S.A. for Eleventhone Corp. (*Pyxis Lamda*) and Seventhone Corp. (*Pyxis Theta*) were accounted for as modifications. "Loss from debt extinguishment" of $379, nil and nil was recognized in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2024 and 2025, respectively.

***(z) Distinguishing Liabilities from Equity:*** The Company follows the provisions of ASC 480 "Distinguishing Liabilities from Equity" to determine the classification of certain freestanding financial instruments as either liabilities or equity. The Company in its assessment of the accounting for the Series A Convertible Preferred Shares and warrants issued in connection with the October 13, 2020 public offering and the July 16, 2021, follow-on offering, has taken into consideration ASC 480 "Distinguishing Liabilities from Equity" and determined that the Series A Convertible Preferred Shares and warrants should be classified as equity instead of liabilities (Note 9). The Company further analyzed key features of the Series A Convertible Preferred Shares and detachable warrants to determine whether these instruments are more akin to equity or debt and concluded that the Series A Convertible Preferred Shares and warrants are equity-like. In its assessment, the Company identified certain embedded features and examined whether they meet the definition of a derivative under ASC 815 or otherwise affect classification. Derivative accounting was deemed inappropriate and, therefore, no bifurcation of these features was performed.

***Share Repurchases:*** The Company accounts for repurchases of its common shares at cost. Repurchased shares are classified as treasury stock until retired and are presented as a reduction of shareholders' equity. The cost of treasury stock includes incremental direct transaction costs, such as brokerage commissions. Treasury shares remain issued but are not considered outstanding; accordingly, common shares presented as "issued and outstanding" exclude treasury shares. If and when treasury shares are retired, the Company reclassifies the related cost within shareholders' equity in accordance with U.S. GAAP.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**2. Significant Accounting Policies: – Continued:**

From January 1, 2025 through January 30, 2025, the Company repurchased 67,534 common shares under its previously authorized repurchase program, which was initially approved on May 11, 2023 for up to $2.0 million and increased on May 16, 2024 to an aggregate authorization of $3.0 million. This prior authorization was fully utilized as of January 30, 2025. From November 19, 2025 through December 31, 2025, the Company repurchased 67,004 common shares under a new Board-authorized program approved on November 19, 2025 for up to $3.0 million. All repurchased shares were recorded as treasury stock at cost and reflected as a reduction of shareholders' equity. As of December 31, 2025, these repurchased shares had not been cancelled and were held as treasury shares, accordingly, they were excluded from the Company's common shares outstanding.

 ****

***(aa) Share based payments:*** The Company has issued restricted share awards which are measured at their grant date fair value and are not subsequently re-measured. Compensation cost is recognized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award – the requisite service period (usually the vesting period). Forfeitures of awards are accounted for when and if they occur. If an equity award is modified after the grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification.

***(ab) Repurchase and Retirement of Company's Preferred Shares:*** All Company's preferred shares re-purchased are immediately cancelled and retired, and the Company's share capital is accordingly reduced. Any difference between the fair value of the consideration transferred to the holders of the preferred stock and the carrying amount of the preferred stock represents a return to (from) the preferred stockholder that should be treated in a manner similar to the treatment of dividends paid on preferred stock. If the fair value of the consideration transferred plus any direct costs incurred in relation to the redemption, is more than the carrying amount of the preferred shares redeemed (net of any issuance costs), the difference is debited to retained earnings as deemed dividend. In addition, any possible excess between the fair value of the consideration paid for the re-purchase of preferred shares and the carrying amount of the shares surrendered reduces the net income/(loss) from continuing operations to arrive at the net income/(loss) available to common stockholders from continuing operations.

***(ac) Accounting for transactions under common control:*** A common control transaction is any transfer of net assets or exchange of equity interests between entities or businesses that are under common control by an ultimate parent or controlling shareholder before and after the transaction. Common control transactions may have characteristics that are similar to business combinations but do not meet the requirements to be accounted for as business combinations because, from the perspective of the ultimate parent or controlling shareholder, there has not been a change in control over the acquiree. Due to the fact that common control transactions do not result in a change of control at the ultimate parent or controlling shareholder level, the Company does not account for them at fair value. Rather, common control transactions are accounted for at the carrying amount of the net assets or equity interests transferred. Any difference in the fair value of cash and non-cash consideration paid by the transferee versus the historical costs of the assets transferred to the transferee is recorded as an adjustment to equity by the transferee.

 ****

***(ad) New Accounting Pronouncements – Not Yet Adopted:*** In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses". The standard is intended to require more detailed disclosure about specified categories of expenses (including employee compensation, depreciation and amortization) included in certain expense captions presented on the face of the income statement. The amendments primarily affect disclosure requirements (and do not change expense recognition or income statement presentation) and generally require disaggregation, in the notes, of relevant expense captions into prescribed natural expense categories, as well as disclosures about selling expenses. In January 2025, the FASB issued ASU 2025-01, which clarifies the effective date of ASU 2024-03. This ASU is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this standard on its financial statements.

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets." This standard clarifies the measurement of expected credit losses for accounts receivable and contract assets within its scope. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements and related disclosures.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**2. Significant Accounting Policies: – Continued:**

In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements." The amendments clarify the applicability of Topic 270 to interim financial statements and notes prepared in accordance with GAAP, provide a comprehensive list of interim disclosure requirements and add a disclosure principle requiring disclosure of events and changes since the end of the most recent annual reporting period that have a material impact on the entity. For public business entities, the amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-12, "Codification Improvements." The amendments clarify, correct errors in, and make minor improvements to various topics in the FASB Accounting Standards Codification. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements and related disclosures.

**3. Transactions with Related Parties:**

The Company uses the services of Maritime (see Note 1 for its full legal name and the nature of its relationship with the Company), a tanker ship management company with its principal office in Greece and an office in the U.S.A. Maritime is engaged under separate management agreements directly by the Company's respective subsidiaries to provide a wide range of shipping services, including but not limited to, chartering, sale and purchase, insurance, operations and dry-docking and construction supervision, all provided at a fixed daily fee per vessel. For the ship management services, Maritime charges a fee payable by each subsidiary of $325 per day per vessel (the initial base rate) while the vessel is in operation including any pool arrangements and $450 per day per vessel (the initial base rate) while the vessel is under construction, as well as an additional daily fee (which is dependent on the seniority of the personnel) to cover the cost of engineers employed to conduct the supervision of the newbuilding (collectively the "Ship-management Fees"). In addition, Maritime charges the Company a commission rate of 1.25% on all charter agreements arranged by Maritime, and 1% of the price of any vessel sale. Maritime also provides administrative services to the Company, such as executive, financial, accounting and other administrative services, including to the Company's dry bulk Joint Ventures for which it is paid $150 per day/ per vessel.

The management agreements for the vessels had an initial term of five years. For the *Pyxis Theta,* the base term expired on December 31, 2017, and the agreement was automatically renewed for consecutive five-year periods, unless terminated by either party upon three months' notice. For the *Pyxis Karteria* and the *Pyxis Lamda,* the base term expire on December 31, 2026.

Maritime also provides administrative services to the Company, which include, among other, the provision of the services of the Company's Chief Executive Officer, Chief Financial Officer, General Counsel and Corporate Secretary, Chief Operating Officer, one or more internal auditor(s) and a secretary, as well as the use of office space in Maritime's premises through a Head Management Agreement (the "Head Management Agreement"). The Head Management Agreement with Maritime commenced on March 23, 2015 and continued through March 23, 2020. Following the initial expiration date and the first 5-year period extension ended March 23, 2025, the Head Management Agreement was automatically renewed for a five-year period (unless terminated by either party on 90 days' notice) ending March 23, 2030. Under the Head Management Agreement, the Company pays Maritime a fixed fee of $1,600 annually (the initial base rate) (the "Administration Fees"). In the event of a change of control of the Company during the management period or within 12 months after the early termination of the Head Management Agreement, then the Company will pay to Maritime an amount equal to 2.5 times the then annual Administration Fees. Pursuant to the amendment of this agreement on March 18, 2020, in the event of such change of control and termination, the Company shall also pay to Maritime an amount equal to 12 months of the then daily Ship-management Fees.

The Ship-management Fees and the Administration Fees are adjusted annually according to the official inflation rate in Greece or such other country where Maritime was headquartered during the preceding year. On August 9, 2016, the Company amended the Head Management Agreement with Maritime to provide that in the event that the official inflation rate for any calendar year is deflationary, no adjustment shall be made to the Ship-management Fees and the Administration Fees, which will remain, for the particular calendar year, as per the previous calendar year.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**3. Transactions with Related Parties: – Continued:**

Accordingly, the ship management fees and administration fees have been adjusted from the initial base rates described above, as follows: Effective January 1, 2023, following the average inflation rate in Greece of 9.65% in 2022, ship management fees and administration fees were adjusted to $368 per day per vessel and $1.8 million per annum, respectively. Effective January 1, 2024, following the average inflation rate in Greece of 3.5% in 2023, ship management fees and administration fees were adjusted to $381 per day per vessel and $1.9 million per annum, respectively. Effective January 1, 2025, following the average inflation rate in Greece of 2.74% in 2024, ship management fees and administration fees were adjusted to $391 per day per vessel and $1.9 million per annum, respectively. In addition, during 2025, the Company paid Maritime a one-time bonus of $3.0 million in respect of prior years' performance, which was approved in June 2025, and no commitment to pay such bonus existed during the year ended December 31, 2024. The respective amount was included in general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income. No such payments were made during the years ended December 31, 2023 and 2024.

The Company uses the services of Konkar Agencies (see Note 1 for its full legal name and the nature of its relationship with the Company), a dry-bulk ship management company with its principal office in Greece. Konkar Agencies is engaged under separate management agreements directly by the Company's respective ship-owning companies to provide a wide range of shipping services, including, but not limited to, chartering, technical, sale and purchase, insurance, operations and dry-docking and construction supervision, all provided at a fixed daily fee per vessel. For the ship management services, Konkar Agencies charges a fee payable by each subsidiary of $850 per day per vessel while the vessel is in operation including any pool arrangements, as well as an additional daily fee (which is dependent on the seniority of the personnel) to cover the cost of engineers employed to conduct the supervision of the newbuilding (collectively the "Ship-management Fees"). In addition, Konkar Agencies charges the Company a commission rate of 1.25% on all charter agreements arranged by Konkar Agencies. The management agreements for the *Konkar Ormi*, *Konkar Asteri* and *Konkar Venture* have an initial term of five years and expire in September 2029, February 2030 and June 2030, respectively. The management agreements will automatically be renewed for consecutive five year periods, or until terminated by either party on three months' notice. Fees are adjusted annually according to the official inflation rate in Greece (effective January 1 of each year).

The following amounts were charged by Maritime pursuant to the head management and ship management agreements and by Konkar Agencies pursuant to the ship management agreements with the ship-owning company of vessels *Konkar Ormi*, *Konkar Asteri* and *Konkar Venture* and are included in the accompanying Consolidated Statements of Comprehensive Income:

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| **Included in Voyage related costs and commissions** |  |  |  |
| Charter hire commissions | $575 | $644 | $486 |
| **Included in Management fees, related parties** |  |  |  |
| Ship-management Fees | 728 | 1177 | 1384 |
| **Included in General and administrative expenses** |  |  |  |
| Administration Fees | 1812 | 1958 | 2036 |
| **Total** | $**3115** | $**3779** | $**3906** |

---

As of December 31, 2024 and 2025, there was a balance due to Maritime of $908 and $242, respectively. Further, as of December 31, 2024 and 2025, there was a balance due to Konkar Agencies of $65 and $1,443, respectively. Relevant balances are reflected in Due to related parties, in the accompanying Consolidated Balance Sheets. The balances with Maritime and Konkar Agencies are non-interest bearing and have no stated maturity.

Further, the Company had an amended and restated Promissory Note in favor of Maritime Investors Corp. ("MIC"), originally issued in connection with the 2015 merger and further amended in December 2021 in connection with the acquisition of the *Pyxis Lamda*. The remaining outstanding balance was fully repaid on March 14, 2023. Interest charged on the related party Promissory Note for the years ended December 31, 2023, 2024 and 2025 amounted to $69, nil and nil, respectively, and is included in Interest and finance costs (see Note 14) in the accompanying Consolidated Statements of Comprehensive Income.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**3. Transactions with Related Parties: – Continued:**

During 2023 and 2024, the Company entered into dry-bulk joint venture transactions with entities related to the Company's Chairman and Chief Executive Officer, including the acquisition of the *Konkar Ormi* in 2023 and the acquisition of the *Konkar Venture* in 2024, the latter of which included cash consideration and the issuance of restricted common shares to the related party seller. For additional information, see Notes 2(a), 2(ac), 5, 8 and 9. No amounts were due to or due from related parties in connection with these transactions as of December 31, 2024 and December 31, 2025.

**4. Inventories:**

The amounts in the accompanying Consolidated Balance Sheets are analyzed as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2025** |
| Lubricants | $542 | $536 |
| Bunkers | 1347 |  |
| **Total** | $**1889** | $**536** |

---

**5. Vessels, net:**

The amounts in the accompanying Consolidated Balance Sheets are analyzed as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Vessel**<br>**Cost** | **Accumulated**<br>**Depreciation** | **Net Book**<br>**Value** |
| **Balance January 1, 2024** | $**119303** | $**(20030)** | $**99273** |
| Vessel acquisition - "Konkar Asteri" | 26625 |  | 26625 |
| Vessel acquisition - "Konkar Venture" | 21007 |  | 21007 |
| Vessel additions | 24 |  | 24 |
| Depreciation |  | (6904) | (6904) |
| **Balance December 31, 2024** | $**166958** | $**(26934)** | $**140024** |
| **Balance January 1, 2025** | $**166958** | $**(26934)** | $**140024** |
| Vessel additions | 869 |  | 869 |
| Depreciation |  | (7574) | (7574) |
| **Balance December 31, 2025** | $**167827** | $**(34508)** | $**133319** |

---

As of December 31, 2023, 2024 and 2025, the Company evaluated its vessels for impairment indicators. For the year ended December 31, 2023, no impairment indicators were identified. For the years ended December 31, 2024 and 2025, for those vessels whose fair market values were lower than their carrying values plus unamortized dry-dock and special survey balances, the Company performed a recoverability assessment by estimating future undiscounted net operating cash flows and comparing them to the respective vessels' carrying values plus unamortized dry-dock and special survey balances. Based on this assessment, no impairment charge was recorded for the years ended December 31, 2023, 2024 and 2025.

On March 23, 2023 the Company sold the "Pyxis Malou", the 2009 built 50,667 dwt. MR product tanker, for a sale price of $24,800 in cash to an unaffiliated buyer located in the United Kingdom. After the repayment of the outstanding indebtedness secured by this vessel and the payment of various transaction costs, the Company received cash proceeds of $18,900 (Note 8), and recognized an accounting gain of $8,017 which is included in "Gain on sale of vessels, net" in the accompanying Consolidated Statements of Comprehensive Income.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**5. Vessels, net: – Continued:**

On September 14, 2023 the Company took delivery of a 2016 Japanese built Ultramax dry-bulk carrier named *Konkar Ormi*, which commenced her initial charter on October 5, 2023. The purchase consideration of $28,500 was funded by a $19,000 secured five-year bank loan and cash equity (Note 8).

On December 15, 2023 the Company sold the "Pyxis Epsilon", the 2015 built 50,295 dwt. product tanker, for $40,750 in cash. After the repayment of the outstanding indebtedness secured by the vessel (Note 8) and the payment of various transaction costs, the Company received cash proceeds of $26,800 and recognized an accounting gain of $17,108 which is included in "Gain on sale of vessels, net" in the accompanying Consolidated Statements of Comprehensive Income.

On February 15, 2024, the Company completed the acquisition of an 82,013 dwt dry-bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding. This scrubber-fitted eco-vessel is geared with four cargo cranes and a ballast water treatment system. The $26,625 purchase price of the eco-efficient Kamsarmax was funded by a combination of secured bank debt of $14.5 million (see Note 8 for further details) and cash on hand. The vessel has been named the *Konkar Asteri* and commenced its commercial operations on February 29, 2024.

On June 28, 2024, the Company, through its subsidiary Accuship, which has been consolidated as a VIE as discussed in Note 2, completed the acquisition of an 82,099 dwt eco-efficient Kamsarmax dry-bulk vessel built in 2015 at Jiangsu New Yangzi Shipbuilding from a related party entity under common control with the Company's Chairman and Chief Executive Officer. The $30,000 purchase price for the *Konkar Venture*, which is fitted with a ballast water treatment system, was funded by a combination of secured bank debt of $16,500 (see Note 8 for further details), $12,000 of cash, of which the Company contributed $7,320 in cash, and the issuance of 267,857 restricted common shares to the related party seller. Upon acquisition of the *Konkar Venture*, the difference between the fair value of the consideration paid (cash and non-cash) and the carrying amount of the vessel in the accounts of the sellers of $8,875 was considered a deemed dividend by the Company (of which, $7,493 was presented in financing cash flow activities and $1,382 was presented as non-cash supplemental cash flow information for the common share issuance) and was allocated to Pyxis Tankers equity and non-controlling interest's equity in accordance with their ownership percentages.

During the year ended December 31, 2025, vessel additions primarily related to capitalized improvements and additions of $186 for the *Konkar Asteri* and $192 for the *Konkar Venture* performed during their respective special surveys and dry-dockings. In addition, as of December 31, 2025, the Company had capitalized work-in-progress of $476 related to vessel improvement expenditures for the *Pyxis Karteria*, which had been incurred as of year-end and for which the related work is expected to be completed during its special survey, which is scheduled to take place in the spring of 2026, and $15 related to work-in-progress for the *Konkar Ormi*, for which the related work is also expected to be completed during its special survey, which is scheduled to take place in the fourth quarter of 2026.

All of the Company's vessels have been pledged as collateral to secure the bank loans discussed in Note 8.

**6. Insurance claim receivable**

In May 2024, the vessel *Konkar Ormi* sustained minor damage due to adverse weather conditions in Rio Grande, Brazil. As of December 31, 2024, the insurance claim receivable was $245. During 2025, the claim was finalized at $341 and was collected in August 2025; accordingly, there was no insurance claim receivable outstanding related to this matter as of December 31, 2025.

**7. Deferred dry-dock and special survey costs, net:**

The movement in Deferred dry-dock and special survey costs, net, in the accompanying Consolidated Balance Sheets are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| **Balance January 1,** | $**794** | $**1622** | $**1214** |
| Additions | 1506 | (26) | 1478 |
| Amortization of special survey costs | (388) | (382) | (599) |
| Pyxis Malou write-off | (168) |  |  |
| Pyxis Epsilon write-off | (122) |  |  |
| **Balance December, 31** | $**1622** | $**1214** | $**2093** |

---

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**7. Deferred dry-dock and special survey costs, net: - Continued:**

During the year ended December 31, 2023, *Pyxis Theta* and *Pyxis Karteria* completed their second special surveys at a cost of $700 and $806, respectively, for an aggregate of $1,506 of which $1,379 was paid as of December 31, 2023 and the remaining amount was paid during 2024. During 2025, *Konkar Venture* and *Konkar Asteri* performed their second special surveys at a cost of $798 and $679, respectively. Including other additions of $1, the aggregate cost for the year was $1,478. The amortization of the special survey costs is separately reflected in the accompanying Consolidated Statements of Comprehensive Income.

**8. Long-term Debt:**

The amounts shown in the accompanying Consolidated Balance Sheets at December 31, 2024 and 2025, are analyzed as follows:

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| <br>**Vessel (Borrower)** | **2024** | **2025** |
| *(a) "Pyxis Theta" (Seventhone)* | $10150 | $14750 |
| *(b) "Pyxis Karteria" (Tenthone)* | 12800 | 11600 |
| *(c) "Pyxis Lamda" (Eleventhone)* | 15663 | 18600 |
| *(d) "Konkar Ormi" (Dryone Corp.)* | 17100 | 15900 |
| *(e) "Konkar Asteri" (Drytwo Corp.)* | 13600 | 12400 |
| *(f) "Konkar Venture" (Drythree Corp.)* | 15870 | 14610 |
| **Total principal balance (gross)** | $**85183** | $**87860** |

---

The vessel-by-vessel amounts represent outstanding principal balances (gross). Long-term debt is presented in the Consolidated Balance Sheets net of unamortized deferred financing costs, as reconciled below.

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** |
| Principal balance (gross) - Current portion | $7787 | $8160 |
| Less current portion of unamortized deferred financing costs | (226) | (193) |
| **Current portion of long-term debt, net of unamortized deferred financing costs** | $**7561** | $**7967** |
| Principal balance (gross) - Non-current portion | $77396 | $79700 |
| Less non-current portion of unamortized deferred financing costs | (433) | (421) |
| **Long-term debt, net of current portion and unamortized deferred financing costs** | $**76963** | $**79279** |
| *Summarized:* |  |  |
| **Principal balance (gross)** | $**85183** | $**87860** |
| Less unamortized deferred financing costs (current and non-current) | (659) | (614) |
| **Long-term debt, net of deferred financing costs (as presented in the Consolidated Balance Sheets)** | $**84524** | $**87246** |

---

**(a)** On December 17, 2025, Seventhone Corp. ("Seventhone"), which owns the *Pyxis Theta,* refinanced its secured loan with the existing lender, Alpha Bank S.A., in an amount of $14,750. The amended facility has a five-year maturity, provides for quarterly principal repayments of $450, and bears interest at Term SOFR plus a margin of 1.90% (previously priced at SOFR plus a margin of 2.40%). Standard collateral interests and customary covenants are incorporated in this facility. The facility is secured by, among other things, a first priority mortgage on the *Pyxis Theta*, and includes customary covenants, including minimum liquidity and a minimum security cover ratio, or MSC.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**8. Long-term Debt: – Continued:**

As of December 31, 2024 and December 31, 2025, the outstanding balance was $10,150 and $14,750, respectively. As of December 31, 2025, the outstanding balance was repayable in 20 consecutive quarterly installments of $450 each, with the first installment due in March 2026, and the last installment accompanied by a balloon payment of $5,750 due in December 2030.

**Covenants:**

● The borrower undertakes to maintain minimum deposit with the bank of $500 at all times.

● The ratio of the corporate guarantor's total liabilities to market adjusted total assets is not to exceed 75 %. This requirement is only applicable in order to assess whether the borrower is entitled to distribute dividends to Pyxis.

● MSC is to be at least 125 % of the respective outstanding loan balance.

● No change shall be made directly or indirectly in the ownership, beneficial ownership, control or management of Seventhone or of the Company or any share therein or the *Pyxis Theta*, without the lender's prior written consent, and at least 25% of the shares and voting rights in the corporate guarantor shall remain in the ultimate legal and beneficial ownership of the beneficial shareholders.

**(b)** On March 13, 2023, Tenthone Corp. ("Tenthone"), which owns the *Pyxis Karteria,* refinanced its indebtedness with the existing lender, Piraeus Bank S.A., through a $15,500 five-year secured loan. The facility provides for quarterly principal repayments of $300 and bears interest at SOFR plus a margin of 2.70%. Standard collateral interests and customary covenants are incorporated in this facility. The facility is secured by, among other things, a first priority mortgage on the *Pyxis Karteria*, and includes customary covenants, including minimum liquidity and a minimum security cover ratio.

As of December 31, 2024 and December 31, 2025, the outstanding balance was $12,800 and $11,600, respectively. As of December 31, 2025, the outstanding balance was repayable in 9 consecutive quarterly installments of $300 each, with the last installment accompanied by a balloon payment of $8,900 due in March 2028.

**Covenants:**

● The
 borrower undertakes to maintain with the bank an average deposit balance of at least $900 , which is reduced to an average of $500 after six months.

● The
 ratio of the corporate guarantor's total liabilities (exclusive of cash, cash equivalents and Promissory Note, if any) to market
 adjusted total assets is not to exceed 75 %. This requirement is only applicable in order to assess whether the borrower is entitled
 to distribute dividends to Pyxis.

● MSC
 is to be at least 130 % of the respective outstanding loan balance.

● Minimum
 cash and cash equivalent shall not be less than the greater of (i) $2 million and (ii) 3 % of the total debt excluding Promissory
 Note, if any.

**(c)** On December 17, 2025, Eleventhone Corp. ("Eleventhone"), which owns the *Pyxis Lamda,* refinanced its secured loan with the existing lender, Alpha Bank S.A., in an amount of $18,600. The amended facility has a five-year maturity, provides for quarterly principal repayments of $375, and bears interest at Term SOFR plus a margin of 1.90% (previously priced at SOFR plus a margin of 2.40% following the July 30, 2024 margin reduction). Standard collateral interests and customary covenants are incorporated in this facility. The facility is secured by, among other things, a first priority mortgage on the *Pyxis Lamda*, and includes customary covenants, including minimum liquidity and a minimum security cover ratio.

As of December 31, 2024 and December 31, 2025, the outstanding balance of the loan relating to *Pyxis Lamda* was $15,663 and $18,600, respectively. As of December 31, 2025, the outstanding balance was repayable in 20 consecutive quarterly installments of $375 each, with the first installment due in March 2026, and the last installment accompanied by a balloon payment of $11,100 due in December 2030.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**8. Long-term Debt: – Continued:**

**Covenants:**

● The borrower undertakes to maintain minimum deposit with the bank of $750 at all times, (which reduced to the amount of $500 , upon receipt of time charter employment for a period of at least six months).

● The ratio of the corporate guarantor's total liabilities to market adjusted total assets is not to exceed 75 %. This requirement is only applicable in order to assess whether the borrowers are entitled to distribute dividends to Pyxis.

● MSC is to be at least 125 % of the respective outstanding loan balance.

● No change shall be made directly or indirectly in the ownership, beneficial ownership, control or management of Eleventhone or of the Company or any share therein or the *Pyxis Lamda*, without the lender's prior written consent, and at least 25% of the shares and voting rights in the corporate guarantor shall remain in the ultimate legal and beneficial ownership of the beneficial shareholders.

**(d)** In connection with the acquisition of the *Konkar Ormi,* Dryone Corp. entered into a $19,000 five-year secured loan agreement with Piraeus Bank S.A., on September 11, 2023. The facility provides for quarterly principal repayments of $300 and bears interest at SOFR plus a margin of 2.35%. Standard collateral interests and customary covenants are incorporated in this facility. The facility is secured by, among other things, a first priority mortgage on the *Konkar Ormi*, and includes customary covenants, including minimum liquidity and a minimum security cover ratio.

As of December 31, 2024 and December 31, 2025, the outstanding balance of the loan relating to the *Konkar Ormi* was $17,100 and $15,900, respectively. As of December 31, 2025, the outstanding balance was repayable in 11 consecutive quarterly installments of $300 each, with the last installment accompanied by a balloon payment of $12,600 due in September 2028.

**Covenants:**

● The borrower undertakes to maintain with the bank an average deposit balance of at least $300 for the preceding six month period, first tested on December 31, 2024, and semi-annually thereafter.

● The ratio of the corporate guarantor's total liabilities (exclusive of cash, cash equivalents and Promissory Note, if any) to market adjusted total assets is not to exceed 75 %. This requirement is only applicable in order to assess whether the borrower is entitled to distribute dividends to Pyxis.

● MSC is to be at least 130 % of the respective outstanding loan balance.

● Minimum cash and cash equivalent shall not be less than the greater of (i) $2,000 and (ii) 3 % of the total debt excluding Promissory Note, if any.

**(e)** In connection with the acquisition of the *Konkar Asteri*, Drytwo Corp. entered into a $14,500 five-year secured loan agreement with Alpha Bank S.A., on February 15, 2024. The facility provides for quarterly principal repayments of $300 and bears interest at SOFR plus a margin of 2.35% per annum. Standard collateral interests and customary covenants are incorporated in this facility. The facility includes customary covenants, including minimum liquidity and a minimum security cover ratio ("MSC").

As of December 31, 2024 and December 31, 2025, the outstanding balance was $13,600 and $12,400, respectively. As of December 31, 2025, the outstanding balance was repayable in 13 consecutive quarterly installments of $300 each, with the last installment accompanied by a balloon payment of $8,500 due in February 2029.

**Covenants:**

● The borrower undertakes to maintain minimum deposit with the bank of $350 at all times,

 The ratio of the corporate guarantor's total liabilities to market adjusted total assets is not to exceed 75 %. This requirement is only applicable in order to assess whether the borrowers are entitled to distribute dividends to Pyxis.

● MSC is to be at least 125 % of the respective outstanding loan balance.

● No change of control shall be made directly or indirectly in the ownership, beneficial ownership, control or management of any of the borrower and the corporate guarantor or any share therein or the *Konkar Asteri*, as a result of which less than 100% of the shares and voting rights in each borrower are owned by the corporate guarantor or less than 25% of the shares and voting rights in the corporate guarantor will remain in the ultimate legal and beneficial ownership of the beneficial shareholders.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**8. Long-term Debt: – Continued:**

**(f)** In end of June 2024, the Company acquired the 2015 Chinese built Kamsarmax dry-bulk carrier *Konkar Venture*. Upon delivery of the dry-bulk carrier, on June 28, 2024, Drythree entered into a $16,500 five-year secured loan agreement with Piraeus Bank S.A., on June 28, 2024 for the purpose of financing the vessel acquisition. The facility provides for quarterly principal repayments of $315 and bears interest at SOFR plus a margin of 2.15%. Standard collateral interests and customary covenants are incorporated in this facility. The facility includes customary covenants, including minimum liquidity and a minimum security cover ratio ("MSC").

As of December 31, 2024 and December 31, 2025, the outstanding balance was $15,870 and $14,610, respectively. As of December 31, 2025, the outstanding balance was repayable in 14 consecutive quarterly installments of $315 each, with the last installment accompanied by a balloon payment of $10,200 due in June 2029.

**Covenants:**

● The borrower undertakes to maintain with the bank an average deposit balance of at least $300 for the preceding six month period, first tested on December 31, 2024, and semi-annually thereafter.

● The ratio of the corporate guarantor's total liabilities (exclusive of cash, cash equivalents and Promissory Note, if any) to market adjusted total assets is not to exceed 75 %. This requirement is only applicable in order to assess whether the borrower is entitled to distribute dividends to Pyxis.

● MSC is to be at least 130% of the respective outstanding loan balance.

● Minimum cash and cash equivalent shall not be less than the greater of (i) $2,000 and (ii) 3 % of the total debt excluding Promissory Note, if any.

Amounts presented in Restricted cash, non-current, in the Consolidated Balance Sheets related to minimum cash deposits required to be maintained under the Company's debt agreements.

The annual principal payments required to be made after December 31, 2025, are as follows:

Schedule of Principal Payments

---

| | |
|:---|:---|
| **To December 31,** | **Amount** |
| 2026 | $8160 |
| 2027 | 8160 |
| 2028 | 28460 |
| 2029 | 22930 |
| 2030 | 20150 |
| **Total** | $**87860** |

---

As of December 31, 2025, the Company was in compliance with the applicable financial and other covenants contained in its bank loan agreements described above.

Total interest expense on long-term debt and the Promissory Note (see Note 3) for the years ended December 31, 2023, 2024 and 2025, amounted to $5,552, $6,259 and $5,477, respectively, and is included in Interest and finance costs (Note 14) in the accompanying Consolidated Statements of Comprehensive Income. The Company's weighted average interest rate (including the applicable margin) for the years ended December 31, 2023, 2024 and 2025, was 8.21%, 7.73% and 6.59% per annum, respectively. The 2023 weighted average interest rate included the effect of the Promissory Note discussed in Note 3.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**8. Long-term Debt: – Continued:**

**Unfunded commitments — "Hunting License" facility**

On July 30, 2025, the Company entered into a commitment with Piraeus Bank S.A. for a "hunting license" loan facility of up to $45,000 to finance the potential acquisition of up to two vessels consisting of product tankers between 45-115K dwt. and/or dry bulk carriers between 60-85K dwt. Advances of up to 62.5% of a vessel's purchase price may be drawn during a period of up to 18 months after the closing of the facility, with the remaining purchase consideration expected to be funded from cash on hand. Borrowings under the facility would bear interest at SOFR plus an average margin of 1.90%, and each advance would be amortized on a quarterly basis over five years from drawdown. The facility would be secured by, among other things, any vessels acquired with its proceeds and includes customary financial and other covenants. The Company is required to pay a nominal commitment fee to the lender during the drawdown availability period, and such fee was accrued as of December 31, 2025. No amounts were drawn under the facility as of December 31, 2025.

**9. Equity Capital Structure and Equity Incentive Plan:**

The Company's authorized common and preferred stock consists of 450,000,000 common shares and 50,000,000 preferred shares, of which 1,000,000 are authorized as Series A Convertible Preferred Shares. As of December 31, 2024 and 2025, the Company had a total of 10,553,399 common shares and 10,418,859 common shares outstanding, respectively, and nil Series A Convertible Preferred Shares issued and outstanding as of each date, each with a par value of USD 0.001 per share. The above outstanding common share counts are presented net of shares repurchased under the Company's common share repurchase programs. As of December 31, 2024 and 2025, these repurchased shares had not been cancelled and were held as treasury shares, accordingly, they were excluded from the Company's common shares outstanding. As of December 31, 2025, there were no detachable warrants outstanding.

On October 13, 2020, the Company announced the closing of its offering of 200,000 units at an offering price of $25.00 per Unit (the "Offering"). Each Unit was immediately separable into one 7.75% Series A Convertible Preferred Share and eight (8) detachable Warrants, each warrant exercisable for one common share, for a total of up to 1,600,000 common shares of the Company. Each Warrant was exercisable at an initial exercise price of $5.60 per share at any time prior to October 13, 2025 or, in case of absence of an effective registration statement, on a cashless basis based on a formula. Any Warrants that remained unexercised on October 13, 2025, expired worthless on that date. The Series A Convertible Preferred Shares were not redeemable at the option of the holders, did not have a stated redemption date, and were redeemed by the Company after October 13, 2023 at the liquidation preference of $25.00 per share in cash. On June 20, 2024, the Company redeemed 100,000 Series A Convertible Preferred Shares for $2.5 million in cash, and on October 20, 2024, the Company redeemed all remaining outstanding Series A Convertible Preferred Shares for an aggregate payment of $7.6 million in cash. Accordingly, no Series A Convertible Preferred Shares were outstanding as of December 31, 2024 and 2025.

The Series A Convertible Preferred Shares were classified within stockholders' equity and the embedded conversion and redemption features were not bifurcated under ASC 815, Derivatives and Hedging.

Dividends on the Series A Convertible Preferred Shares were cumulative from and including the date of original issuance in the amount of $1.9375 per share each year, which is equivalent to 7.75% of the $25.00 liquidation preference per share. Dividends on the Series A Convertible Preferred Shares were paid monthly in arrears starting November 20, 2020, to the extent declared by the Board of Directors of the Company, through their redemption during 2024.

As compensation, the Company issued underwriter's warrants pursuant to the October 8, 2020 Underwriting Agreement and accounted for these awards under ASC 718, Compensation—Stock Compensation, classified within stockholders' equity.

In July 2021, the Company completed a follow-on public offering of additional Series A Convertible Preferred Shares, which formed a single series with and had the same terms and conditions as the Series A Convertible Preferred Shares issued on October 13, 2020.

During 2023, an aggregate of 45,842 of Series A Convertible Preferred Shares were converted into 204,819 registered common shares of the Company while no Warrants were exercised. At December 31, 2023, the Company had 403,631 outstanding Series A Convertible Preferred Shares and 1,591,062 detachable Warrants (excluding 4,683 underwriter's Warrants to purchase 4,683 Series A Convertible Preferred Shares and 3,460 underwriter's warrants to purchase 3,460 common shares which were outstanding as of December 31, 2023). During 2024, an aggregate of 460 of Series A Convertible Preferred Shares were converted into 2,053 registered common shares of the Company while no Warrants were exercised.

On June 20, 2024, the Company paid $2,500 for the redemption of 100,000 shares of its Series A Cumulative Convertible Preferred Stock. Upon this redemption, 100,000 PXSAP shares were cancelled by the Company.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**9. Equity Capital Structure and Equity Incentive Plan: – Continued:**

On October 20, 2024, the Company fully redeemed all the outstanding shares of its Series A Convertible Preferred Shares for $7.6 million. Upon these redemptions, all the outstanding PXSAP shares were cancelled by the Company and cash dividends in respect of these shares were no longer payable. As the fair value of the PXSAP redemption was greater than the carrying amount, a retained earnings reduction of $2.68 million was recognized as a deemed dividend to the preferred shareholders in connection with the full PXSAP redemption. The Company's obligation to pay dividends in respect of these shares ceased.

During the fourth quarter of 2024, non-tradable underwriter's Warrants of 1,474 were exercised resulting in the issuance of 1,403 warrants to purchase 1,403 common shares.

At December 31, 2024, the Company had 1,592,465 detachable Warrants (excluding non-tradable underwriter's common stock purchase warrants to purchase 109,129 common shares, of which 107,143 and 1,986 underwriter's warrants had exercise prices of $8.75 and $5.60, respectively, and 4,683 underwriter's Warrants to purchase 4,683 Series A Convertible Preferred Shares that remained outstanding as of December 31, 2024).

On October 13, 2025, the 1,592,465 detachable warrants (formerly NASDAQ Cap Mkts: PXSAW) issued in connection with the October 2020 Offering expired worthless in accordance with their original terms and ceased to trade on Nasdaq. No common shares were issued and no cash or non-cash proceeds were received by the Company as a result of the expiration. The expiration had no impact on the Company's share capital or additional paid-in capital.

The Company has also issued to the placement agent 107,143 non-tradable warrants to purchase common shares, which became exercisable one hundred eighty (180) days after the closing date, or on August 23, 2021, and expired on the five-year anniversary of the closing date, or on February 24, 2026. These warrants remained outstanding with no exercises or other activity during the year ended December 31, 2025, and expired on February 24, 2026.

During the months of January through December 2023 and 2024 the Company declared and paid monthly cash dividends of $0.1615 per share for each outstanding Series A Convertible Preferred Share, which aggregated for the year ended to $797 and $586, respectively. No dividends were declared or paid on the Series A Convertible Preferred Shares during 2025 following the full redemption in October 2024.

On May 11, 2023, the Company's Board authorized a common share repurchase program of up to $2.0 million for a period of six months through open market transactions. In November 2023, the Board of Directors authorized a six-month extension of the Repurchase Program through May, 2024. In May 2024, the Board of Directors authorized an increase of $1.0 million in incremental repurchase authority under the Repurchase Program, and also extended the program through May 16, 2025. During the year ended December 31, 2023, the Company repurchased 331,591 common shares at an average price of $3.68 per share, excluding brokerage commissions, utilizing $1.2 million under the authorized $2.0 million repurchase program. During the year ended December 31, 2024, the Company repurchased 331,558 common shares at an average price of $4.39 per share, excluding brokerage commissions, utilizing $1.5 million under the authorized $3.0 million repurchase program, as increased in May 2024.

On January 30, 2025, the Company fully utilized the remaining availability under the Company's previously authorized $3.0 million common share repurchase program. From January 1, 2025 through January 30, 2025, the Company repurchased 67,534 common shares in the open market at an average price of $3.91 per share, excluding brokerage commissions, for an aggregate purchase price of $0.264 million. Since summer 2023, the Company has repurchased an aggregate of 730,683 common shares in the open market at an average cost of $4.03 per share, excluding commissions. As of January 30, 2025, no amounts remained available under the prior repurchase authorization.

In October 2015, the Company's Board approved, and the Company adopted the Pyxis Tankers Inc. 2015 EIP for common shares (the "Plan" or "EIP"). The maximum aggregate number of shares of common stock that may be delivered pursuant to awards granted under the Plan during the ten-year term of the Plan will be 15% of the then-issued and outstanding number of shares of the Company's common stock under the EIP. The Company's employees, officers, directors and service providers are entitled to receive options to acquire the Company's common stock. The EIP is administered by the Nominating and Corporate Governance Committee of the Company's Board or such other committee of the Board as may be designated by the Board. Under the terms of the EIP, the Company's Board is able to grant, (a) non-qualified stock options, (b) stock appreciation rights, (c) restricted stock, (d) restricted stock units, (e) unrestricted stock grants, (f) other equity-based or equity-related awards and (g) dividend equivalents. No award may be granted under the EIP after the tenth anniversary of the date the EIP was adopted by the Company's Board.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**9. Equity Capital Structure and Equity Incentive Plan: – Continued:**

On May 11, 2023, the Company's Nominating & Corporate Governance Committee approved the grant of a total of 55,000 restricted common shares to certain employees, board members and Company affiliates under the EIP. The restricted shares had vesting periods up to November 2024. The fair value of the restricted shares based on the closing price on the grant date was $201.

In November 2024, the Company's Board of Directors approved the issuance of a total of 72,500 restricted common shares under the existing EIP to certain employees, board members and Company affiliates. The restricted shares had a vesting period of 12 months, which ended in November 2025. During 2025, 71,500 restricted common shares vested and 1,000 restricted common shares were forfeited upon employee departures prior to vesting. The fair value of the restricted shares based on the closing price on the grant date was $301. The total fair value of the 71,500 restricted common shares that vested during 2025, based on the closing price of the Company's common shares on the vesting date, was $187.

On November 19, 2025, the Company's Board of Directors authorized the repurchase of up to $3.0 million of the Company's common shares for a period of up to one year. Repurchases may be made from time to time at the Company's discretion in open market transactions, privately negotiated transactions, accelerated share repurchase programs or a combination of these methods. The actual amount and timing of repurchases are subject to capital availability, market conditions and the Company's determination that repurchases are in the best interests of its shareholders. From November 19, 2025 through December 31, 2025, the Company repurchased 67,004 common shares in the open market at an average price of $2.95 per share, excluding commissions, for an aggregate purchase price of $0.2 million. This authorization expires in November 2026.

Non–cash charges of $171, $62 and $263 were recognized ratably from the grant date over the vesting period as compensation cost in General and administrative expenses of the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2024 and 2025, respectively. As of December 31, 2023, 2024 and 2025, the total unrecognized cost relating to restricted share awards was $30, $254 and nil, respectively, and the weighted average period for the non-vested awards was nine months and eleven months as of December 31, 2023 and 2024, respectively.

Restricted stock activity during the year ended December 31, 2025 is analyzed as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **Shares** | **Weighted Average**<br> **Grant Date Price** |
| **Outstanding at December 31, 2024** | 72500 | $4.15 |
| Granted |  |  |
| Vested | (71500) | 4.15 |
| Forfeited or expired | (1000) | 4.15 |
| **Outstanding at December 31, 2025** |  | $— |

---

The fair value of the restricted shares has been determined with reference to the closing price of the Company's stock on the date the agreements were signed. The aggregate compensation cost is being recognized ratably in the Consolidated Statements of Comprehensive Income over the respective vesting periods.

**10. Non-controlling Interest**

On July 5, 2023, the Company acquired a 60% equity interest in the newly incorporated entity Drykon for a consideration of $6,780 in cash. The remaining 40% was acquired by an entity related to the Company's Chief Executive Officer and Chairman for a consideration of $4,520 in cash. An agreement has been signed, between the shareholders of Drykon where all matters about Drykon's structure, operations and governance are determined and agreed in writing. Management assessed the terms of the agreement and concludes that there is disproportionality in between the financial interest and voting rights of the Company. More specifically, Pyxis owns 60% of the equity interest in Drykon, however, there are matters in the agreement requiring unanimous vote of all directors resulting in Pyxis only having a 50% share of the voting rights for these specific matters. A number of these matters that require a unanimous vote have been determined by the management to relate to activities that significantly affect the economic performance of Drykon and are considered by the management to be participating rights rather than protective in nature.

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**10. Non-controlling Interest: – Continued:**

On May 9, 2024, the Company acquired a 60% equity interest in the newly incorporated entity Accuship. The remaining 40% was acquired by an entity related to the Company's Chief Executive Officer and Chairman. An agreement has been signed in June, between the shareholders of Accuship where all matters about Accuship's structure, operations and governance are determined and agreed in writing. As per the agreement, the Company's contribution consisted of a $7,320 cash payment and the issuance of 267,857 restricted common shares, while the entity related to the Company's Chief Executive Officer and Chairman contributed $5,880 in cash. Management assessed the terms of the agreement and concludes that there is disproportionality in between the financial interest and voting rights of the Company. More specifically, Pyxis owns 60% of the equity interest in Accuship, however, there are matters in the agreement requiring unanimous vote of all directors resulting in Pyxis only having a 50% share of the voting rights for these specific matters. A number of these matters that require a unanimous vote have been determined by the management to relate to activities that significantly affect the economic performance of Accuship and are considered by the management to be participating rights rather than protective in nature.

For the years ended December 31, 2023, 2024 and 2025, the joint ventures (Drykon and Accuship, in aggregate) recorded net losses of $502, $903 and $147, respectively. Of those amounts, aggregate losses of $201, $361 and $59, respectively, were attributable to NCI.

Schedule of Non controlling Interest

---

| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** |
| **Balance, January 1,** | $**—** | $**4319** | $**6288** |
| Non-controlling interest contribution in Drykon Maritime Corp. | 4520 |  |  |
| Non-controlling interest contribution in Accuship Maritime Ltd. |  | 5880 |  |
| Drykon Maritime Corp. gain/(loss) attributable to non-controlling interest (40%) | (201) | (216) | 68 |
| Accuship Maritime Ltd. loss attributable to non-controlling interest (40%) |  | (145) | (127) |
| Deemed dividend to Accuship Maritime Ltd. (from Konkar Venture acquisition) |  | (3550) |  |
| **Balance, December 31,** | $**4319** | $**6288** | $**6229** |

---

**11. Net Income per Common Share:** 

The amounts shown in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2024 and 2025 are analyzed as follows:

Schedule of Loss Per Common Share

---

| | | | |
|:---|:---|:---|:---|
|  | **Years ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
|  | **2023** | **2024** | **2025** |
| Net income attributable to Pyxis Tankers Inc. | $37037 | $12868 | $1994 |
| Less: Dividend on PXSAP | (810) | (562) |  |
| Less: Deemed dividend on redeemed PXSAP |  | (2682) |  |
| Net income attributable to common shareholders, basic | $36227 | $9624 | $1994 |
| Dividend on PXSAP | 810 |  |  |
| Net income attributable to common shareholders, diluted | $37037 | $9624 | $1994 |
| Effect of dilutive securities: |  |  |  |
| Preferred shares | 1884718 |  |  |
| Weighted average number of common shares, basic | 10701059 | 10524511 | 10422154 |
| Weighted average number of common shares, diluted | 12585777 | 10524511 | 10422154 |
| Net income per common share, basic | $3.38 | $0.91 | $0.19 |
| Net income per common share, diluted | $2.94 | $0.91 | $0.19 |
| *PXSAP: Series A Convertible Preferred Stock* |  |  |  |

---

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**11. Net Income per Common Share: – Continued:**

For 2023 and 2024, the outstanding warrants that could potentially dilute basic net income per common share were not included in the computation of diluted net income per common share, because they were out of the money. The number of common shares issuable upon exercise of such warrants excluded from diluted net income per common share was 1,701,665 for 2023 and 1,701,594 for 2024, respectively. For 2023, the assumed conversion of the Series A preferred stock was dilutive and, accordingly, the related preferred dividend was added back in calculating diluted net income attributable to common shareholders and the corresponding common shares issuable upon conversion were included in the calculation of diluted weighted average common shares outstanding. For 2024, incremental common shares resulting from non-vested restricted share awards and common shares issuable upon assumed conversion of the Series A preferred stock were excluded from the computation of diluted net income per common share because their inclusion would have been anti-dilutive. The Company had no potentially dilutive securities outstanding as of and during 2025.

**12. Risk Management and Fair Value Measurements:**

The principal financial assets of the Company as of December 31, 2025 consist of cash and cash equivalents, short-term investments in time deposits and trade accounts receivable from charterers. The principal financial liabilities of the Company consist of long-term bank loans, trade accounts payable and accrued and other liabilities.

***Interest rate risk*:** The Company's loan interest rates are calculated at SOFR (or Term SOFR) plus a margin, as described in Note 8 above, hence, the Company is exposed to movements in SOFR. The Company has used interest rate caps in prior periods to mitigate its variable interest rate exposure and may consider entering into additional hedging arrangements in the future to further limit the impact of interest rate volatility on its results of operations and cash flows. As of December 31, 2025, the Company did not have any interest rate derivatives outstanding.

All of Company's bank loans accrue interest based on SOFR (Secured Overnight Financing Rate), typically for one, three and six-month interest periods, which has been historically volatile.

***Credit risk*:** Credit risk relates primarily to trade accounts receivable from charterers and cash, cash equivalents and short-term investments in time deposits held with financial institutions. Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash, cash equivalents, short-term investments in time deposits and trade accounts receivable from charterers. Trade accounts receivable from charterers are presented net of expected credit losses. The Company limits its credit risk with accounts receivable by performing ongoing credit evaluations of its customers' financial condition and generally does not require collateral for its accounts receivable. The Company places its cash and cash equivalents, consisting mostly of deposits, primarily with high credit quality financial institutions and performs periodic evaluations of the relative creditworthiness of those financial institutions as part of the Company's investment strategy. The maximum exposure to credit risk is represented by the carrying amount of each financial asset on the Consolidated Balance Sheets.

***Currency risk*:** The Company's transactions are denominated primarily in U.S. dollars; therefore, overall currency exchange risk is limited. Balances in foreign currency other than U.S. dollars are not considered significant.

 ****

***Fair value:*** The carrying amounts of cash and cash equivalents, short-term investment in time deposits, trade accounts receivable, prepayments and other current assets, trade accounts payable, accrued and other liabilities and due to related parties reported in the consolidated balance sheets approximate their respective fair values because of the short-term nature of these accounts. The fair values of long-term bank loans and restricted cash also approximate the recorded values due to the variable interest rates payable.

 

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**12. Risk Management and Fair Value Measurements: – Continued:**

 

*i. Assets measured at fair value on a recurring basis: Interest rate cap*

The Company did not have any interest rate derivatives outstanding as of December 31, 2024 and 2025, respectively. Accordingly, there were no assets or liabilities measured at fair value on a recurring basis related to interest rate caps as of December 31, 2024 and 2025. The Company's most recent interest rate cap was sold on January 25, 2023, resulting in net cash proceeds of $600. A loss of $59 related to the financial derivative instrument was recognized in the accompanying Consolidated Statements of Comprehensive Income.

*ii. Assets measured at fair value on a non-recurring basis: Long lived assets held and used*

As of December 31, 2023, 2024 and 2025, the Company reviewed the carrying amount in connection with the estimated recoverable amount for each of its vessels held and used. This review indicated that such carrying amount was fully recoverable for the Company's vessels held and used. No impairment loss was recognized for the years ended December 31, 2023, 2024 and 2025.

As of December 31, 2024 and 2025, the Company did not have any other assets or liabilities measured at fair value on a non-recurring basis.

**13. Commitments and Contingencies:**

***Minimum contractual charter revenues:*** The Company employs certain of its vessels under lease agreements. Time charters typically may provide for variable lease payments, charterers' options to extend the lease terms at higher rates and termination clauses. The Company's contracted time charters as of December 31, 2025, range from one to twelve months, with varying extension periods at the charterers' option and do not provide for variable lease payments. The Company's time charters contain customary termination clauses which protect either the Company or the charterers from material adverse situations.

Future minimum contractual charter revenues, gross of 1.25% address commission and 1.25% brokerage commissions to Maritime and of any other brokerage commissions to third parties, based on the vessels' committed, non-cancelable, short- and medium-term time charter contracts as of December 31, 2025, are as follows:

Schedule of Future Minimum Contractual Charter Revenues

---

| | |
|:---|:---|
| **Year ending December 31,** | **Amount** |
| 2026 | $11267 |

---

***Other***: Various claims, suits and complaints, including those involving government regulations and environmental liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Company's vessels. Currently, management is not aware of any such claims not covered by insurance or contingent liabilities, which should be disclosed, or for which a provision has not been established in the accompanying Consolidated Financial Statements.

The Company accrues for the cost of environmental and other liabilities when management becomes aware that a liability is probable and is able to reasonably estimate the probable exposure. As of December 31, 2025 and as of the date of the issuance of the Consolidated Financial Statements, management is not aware of any other claims or contingent liabilities, which should be disclosed or for which a provision should be established in the accompanying Consolidated Financial Statements. The Company is covered for liabilities associated with the individual vessels' actions to the maximum limits as provided by Protection and Indemnity (P&I) Clubs, members of the International Group of P&I Clubs.

**14. Interest and Finance Costs:** 

The amounts in the accompanying Consolidated Statements of Comprehensive Income are analyzed as follows:

Schedule of Interest and Finance Costs

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2025** |
| Interest on long-term debt (Note 8) | $5483 | $6259 | $5477 |
| Interest on Promissory Note (Note 3) | 69 |  |  |
| Amortization and write-off of financing costs | 247 | 238 | 226 |
| Financing fees and charges | 36 | 32 | 72 |
| **Total** | $**5835** | $**6529** | $**5775** |

---

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**15. Segmental information:** 

The Company has two reportable segments from which it derives its revenues, tanker vessels and dry-bulk vessels, and has identified the Board of Directors as the CODM in accordance with ASC *280,* Segment Reporting. The CODM is responsible for assessing performance, allocating resources, and making strategic decisions across the Company's business segments. The table below presents information about the Company's reportable segments for the years ended December 31, 2023, 2024 and 2025. The accounting policies followed in the preparation of the reportable segments are the same as those followed in the preparation of the Company's Consolidated Financial Statements. The CODM uses segment profit/(loss), which is determined based on segment revenues less voyage related costs and commissions, vessel operating expenses, directly attributable general and administrative expenses, management fees, depreciation and amortization of special survey costs, allowance reduction for credit losses, interest and finance costs, and plus interest income, and excludes non-segment reconciling items, to assess the operating performance and relative profitability of each segment, including trends in segment revenues and significant expenses included in that measure. Based on that review, the CODM allocates financial and capital resources between the segments and makes strategic decisions regarding vessel acquisitions, vessel disposals, and major capital expenditures, while also considering expected market conditions and the future prospects of each segment. Items included in the segment's profit/(loss) are allocated to each segment to the extent that they are directly attributable to that segment.

Schedule of Segment Information

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|  | **Tanker vessels** | **Dry-bulk vessels** | **Total** |
| Revenues, net | $24123 | $14871 | $38994 |
| Less*:* |  |  |  |
| Voyage related costs and commissions *<sup>(1)</sup>* | (1298) | (1401) | (2699) |
| Vessel operating expenses *<sup>(1)</sup>* | (8235) | (6008) | (14243) |
| General and administrative expenses | 32 | (195) | (163) |
| Management fees *<sup>(1)</sup>* | (931) | (956) | (1887) |
| Depreciation and amortization of special survey costs | (4206) | (3967) | (8173) |
| Allowance reduction for credit losses | 22 |  | 22 |
| Interest and finance costs *<sup>(1)</sup>* | (2652) | (3057) | (5709) |
| Interest income | 140 | 49 | 189 |
| **Segment profit/(loss)** | $**6995** | $**(664)** | $**6331** |
| **<u>Non-segment reconciling items:</u>** |  |  |  |
| General and administrative expenses |  |  | $(5933) |
| Interest and finance costs |  |  | (66) |
| Interest income |  |  | 1603 |
| **Net income** |  |  | $**1935** |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
|  | **Tanker vessels** | **Dry-bulk vessels** | **Total** |
| Revenues, net | $38400 | $13142 | $51542 |
| Less*:* |  |  |  |
| Voyage related costs and commissions *<sup>(1)</sup>* | (7500) | (2027) | (9527) |
| Vessel operating expenses *<sup>(1)</sup>* | (7920) | (5447) | (13367) |
| General and administrative expenses | (98) | (181) | (279) |
| Management fees *<sup>(1)</sup>* | (921) | (759) | (1680) |
| Depreciation and amortization of special survey costs | (4212) | (3074) | (7286) |
| Allowance reduction for credit losses | 38 |  | 38 |
| Interest and finance costs *<sup>(1)</sup>* | (3491) | (3027) | (6518) |
| Interest income | 32 | 22 | 54 |
| **Segment profit/(loss)** | $**14328** | $**(1351)** | $**12977** |
| **<u>Non-segment reconciling items:</u>** |  |  |  |
| General and administrative expenses |  |  | $(2717) |
| Interest and finance costs |  |  | (11) |
| Interest income |  |  | 2258 |
| **Net income** |  |  | $**12507** |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.* 

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**15. Segmental information: – Continued:**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
|  | **Tanker vessels** | **Dry-bulk vessels** | **Total** |
| Revenues, net | $43889 | $1579 | $45468 |
| Less*:* |  |  |  |
| Voyage related costs and commissions *<sup>(1)</sup>* | (6121) | (231) | (6352) |
| Vessel operating expenses *<sup>(1)</sup>* | (10772) | (851) | (11623) |
| General and administrative expenses | (120) | (28) | (148) |
| Management fees *<sup>(1)</sup>* | (1388) | (100) | (1488) |
| Depreciation and amortization of special survey costs | (5485) | (406) | (5891) |
| Allowance reduction for credit losses | 78 |  | 78 |
| Gain from the sale of vessels, net | 25125 |  | 25125 |
| Interest and finance costs *<sup>(1)</sup>* | (5275) | (478) | (5753) |
| Loss from debt extinguishment | (379) |  | (379) |
| Loss from financial derivative instrument | (59) |  | (59) |
| **Segment profit/(loss)** | $**39493** | $**(515)** | $**38978** |
| **<u>Non-segment reconciling items:</u>** |  |  |  |
| General and administrative expenses |  |  | $(3300) |
| Interest and finance costs |  |  | (82) |
| Interest income |  |  | 1240 |
| **Net income** |  |  | $**36836** |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.* 

 

A reconciliation of total segment assets to total assets presented in the accompanying Consolidated Balance Sheets of December 31, 2023, 2024 and 2025, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Tanker vessels** | **Dry-bulk vessels** | **Total** |
| Cash and cash equivalents & restricted cash | $4451 | $1244 | $5695 |
| Inventories | 307 | 229 | 536 |
| Trade accounts receivable | 326 | 1681 | 2007 |
| Prepayments and other current assets | 225 | 79 | 304 |
| Vessels, net | 64028 | 69291 | 133319 |
| Deferred dry-dock and special survey costs, net | 829 | 1264 | 2093 |
| **Segment assets** | $**70166** | $**73788** | $**143954** |
| **<u>Non-segment reconciling items:</u>** |  |  |  |
| Cash and cash equivalents |  |  | $31210 |
| Short-term investment in time deposits |  |  | 18000 |
| Prepayments and other current assets |  |  | 248 |
| **Total assets** |  |  | $**193412** |

---

**PYXIS TANKERS INC.**

**Notes to the Consolidated Financial Statements**

December 31, 2024 and 2025

(Expressed in thousands of U.S. dollars, except for share

**15. Segmental information: – Continued:**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Tanker vessels** | **Dry-bulk vessels** | **Total** |
| Cash and cash equivalents & restricted cash | $3074 | $2299 | $5373 |
| Inventories | 1150 | 739 | 1889 |
| Trade accounts receivable, net | 4587 | 453 | 5040 |
| Claim receivable |  | 245 | 245 |
| Prepayments and other assets | 414 | 221 | 635 |
| Vessels, net | 67373 | 72651 | 140024 |
| Deferred dry-dock and special survey costs | 1214 |  | 1214 |
| Advance for vessel additions |  | 170 | 170 |
| **Segment assets** | $**77812** | $**76778** | $**154590** |
| **<u>Non-segment reconciling items:</u>** |  |  |  |
| Cash and cash equivalents |  |  | $17220 |
| Short-term investment in time deposits |  |  | 17000 |
| Prepayments and other current assets |  |  | 71 |
| **Total assets** |  |  | $**188881** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended December 31, 2023** | **Year ended December 31, 2023** | **Year ended December 31, 2023** |
|  | **Tanker vessels** | **Dry-bulk vessels** | **Total** |
| Cash and cash equivalents & restricted cash | $4237 | $1041 | $5278 |
| Inventories | 904 | 53 | 957 |
| Trade accounts receivable, net | 4704 | 260 | 4964 |
| Due from related parties |  | 194 | 194 |
| Prepayments and other assets | 180 | 24 | 202 |
| Vessels, net | 71179 | 28094 | 99273 |
| Deferred dry-dock and special survey costs | 1622 |  | 1622 |
| Prepayments for vessel acquisition |  | 2663 | 2663 |
| **Segment assets** | $**82826** | $**32329** | $**115153** |
| **<u>Non-segment reconciling items:</u>** |  |  |  |
| Cash and cash equivalents |  |  | $31061 |
| Short-term investment in time deposits |  |  | 20000 |
| Prepayments and other current assets |  |  | 99 |
| **Total assets** |  |  | $**166313** |

---

**16. Subsequent Events:**

***Amendments to Piraeus Bank S.A. secured loans:*** On January 26, 2026, the Company completed amendments to the existing secured loans with Piraeus Bank S.A. for the Tenthone Corp. (the *Pyxis Karteria*), the Dryone Corp. (the *Konkar Ormi*) and the Drythree Corp. (the *Konkar Venture*) relating to outstanding principal borrowings of $42,100 in the aggregate. The maturity of each loan was extended by six months, with an interest rate reduction to Term SOFR + 1.80%, representing a weighted average margin savings of 58 basis points in margin from the prior loan agreements. All other terms and conditions remain in full force and effect.

***Ongoing $3,000 common share repurchase program:*** Subsequent to year-end December 31, 2025 through March 23, 2026, the Company acquired an additional 142,720 shares for $504 at an average price of $3.46 per share, exclusive of commissions. Thus, $2,294 remains under the current authorized buy-back program. As of such date, after giving effect to these repurchases and the cancellation of 1,000 previously granted but unvested shares upon the resignation of an employee, there were 10,275,139 PXS shares outstanding of which Mr. Valentis owned 58.5%.

***Geopolitical developments affecting vessel transit:*** Subsequent to December 31, 2025, military conflict involving Iran disrupted vessel transit in and around the Strait of Hormuz. As of April 1, 2026, one of the Company's tankers was awaiting charterer's instructions regarding transit through the area. At the date of issuance of these Consolidated Financial Statements, the Company cannot predict the duration or financial effect of this matter.

## Exhibit 4.20

**Exhibit 4.20**

**<u>Private & confidential</u>**

<u>Dated: 30<sup>th</sup> July, 2025</u>

**PIRAEUS BANK S.A.**

(as lender)

- and -

**DRYFOUR CORP.** and

**TWELFTHONE CORP.**

(as joint and several borrowers)

**LOAN AGREEMENT**

for a secured floating interest rate loan facility of up to US$45,000,000

![](ex4-20_001.jpg)

THEO V. SIOUFAS & CO.

*LAW OFFICES*

Piraeus

**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
| **CLAUSE** | **HEADINGS** | **PAGE** |
| 1. | PURPOSE, DEFINITIONS AND INTERPRETATION | 1 |
| 2. | THE LOAN | 24 |
| 3. | INTEREST | 28 |
| 4. | REPAYMENT - PREPAYMENT | 33 |
| 5. | PAYMENTS, TAXES AND COMPUTATION | 37 |
| 6. | REPRESENTATIONS AND WARRANTIES | 39 |
| 7. | CONDITIONS PRECEDENT | 46 |
| 8. | UNDERTAKINGS | 51 |
| 9. | EVENTS OF DEFAULT | 66 |
| 10. | INDEMNITIES - EXPENSES – FEES | 72 |
| 11. | SECURITY, APPLICATION, SET-OFF | 79 |
| 12. | UNLAWFULNESS, INCREASED COST, BAIL-IN | 81 |
| 13. | OPERATING ACCOUNTS | 83 |
| 14. | ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE | 85 |
| 15. | MISCELLANEOUS | 88 |
| 16. | JOINT AND SEVERAL LIABILITY OF THE BORROWERS | 91 |
| 17. | NOTICES AND COMMUNICATIONS | 93 |
| 18. | LAW AND JURISDICTION | 95 |

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**<u>SCHEDULES</u>**

Form of Drawdown Notice

Form of Insurance Letter

THIS AGREEMENT is dated the 30<sup>th</sup> day of July, 2025 and made BETWEEN:

(1) **PIRAEUS BANK S.A.**, a banking société anonyme incorporated in and pursuant to the
 laws of the Hellenic Republic having its registered office at 4, Amerikis Street, Athens,
 Greece, with General Commercial Registry Corporate Registration Number (ΓΕΜΗ):
 157660660000 acting for the purposes of this Agreement, except as otherwise herein provided,
 through that office, as lender (hereinafter called the  ***"Lender"*** ,
 which expression shall include its successors and assigns); and

(2) (a) **DRYFOUR CORP.**, a corporation duly incorporated and validly existing under the laws of the Republic of the Marshall Islands, whose
 registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (the  ***"Borrower A"*** , which expression shall include its successors); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **TWELFTHONE CORP.**, a corporation duly incorporated and validly existing under the laws of the Republic of the Marshall Islands, whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (the ***"Borrower B"***, which expression shall include its successors, and together with the Borrower A hereinafter called the "***Borrowers***")

**AND IT IS HEREBY AGREED** as follows:

**1.** **PURPOSE, DEFINITIONS AND INTERPRETATION** 

**1.1** **Amount and purpose** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amount</u>:
 This Agreement sets out the terms and conditions upon and subject to which it is agreed that
 the Lender will make available to the Borrowers, as joint and several borrowers, a secured
 term loan facility in the amount of up to Dollars Forty five million ($45,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Purpose</u>:
 The proceeds of each Advance shall be used for the purpose of financing part of the acquisition
 cost of a Vessel relative to that Advance pursuant to the terms of the relevant MOA., such
 loan facility to be made available by way of up to two (2) Advances, each Advance to be in
 an amount referred to in the respective definition of *" **Advance A** "* and *" **Advance B** "*.

**1.2** **Definitions** 

Subject to Clause 1.3 *(<u>Interpretation</u>)* and Clause 1.4 *(<u>Construction of certain terms</u>)*, in this Agreement (unless otherwise defined in the relevant Finance Document and unless the context otherwise requires) and the other Finance Documents each term or expression defined in the recital of the parties and in this Clause shall have the meaning given to it in the recital of the parties and in this Clause:

***"Accounts Pledge Agreement"*** means an agreement to be entered into between the Borrowers and the Lender for the creation of a first priority pledge over the Operating Accounts in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Advances"*** means together, the Advance A and the Advance B, and in the singular an ***"Advance"***, which means each borrowing in respect of the Commitment by the Borrowers or (as the context may require) the principal amount of such borrowing outstanding and owing to the Lender under this Agreement at the relevant time, and it means either the Advance A or the Advance B as the context may require;

 ****

 ****

***"Advance A"*** means, in respect of the first Advance to be made available hereunder, an amount of up to the lesser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LofA%
 of the relevant Vessel's Purchase Price specified in the MOA relative thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LofA%
 of the relevant Vessel's Market Value, as per valuation obtained by the Lender not
 earlier than 20 days prior to the Drawdown Date of the Advance A pursuant to Clause 8.5(b) *(<u>Valuation of Vessels</u>)* 

or (as the context may require) the principal amount of Advance A owing to the Lender under this Agreement at any relevant time;

 ****

***"Advance B"*** means, in respect of the second Advance to be made available hereunder, an amount of up to the lesser of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) LofA%
 of the relevant Vessel's Purchase Price specified in the MOA relative thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) LofA%
 of the relevant Vessel's Market Value, as per valuation obtained by the Lender not
 earlier than 20 days prior to the Drawdown Date of the Advance B pursuant to Clause 8.5(b) *(<u>Valuation of Vessels</u>)*, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such
 amount that, when aggregated with the amount of Advance A, does not exceed Dollars Forty
 five million ($45,000,000),

or (as the context may require) the principal amount of Advance B owing to the Lender under this Agreement at any relevant time;

***"Affiliate"*** means, in relation to any person, a Subsidiary of that person or a parent company of that person or any other subsidiary of that parent company;

 

***"Applicable Accounting Principles"*** means the US-GAAP or IFRS and practices consistently applied;

***"Applicable Margin"*** in relation to an Advance means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) during
 the period commencing on the Drawdown Date of that Advance until the second anniversary of
 that Drawdown Date, one point nine five per centum (1.95%) per annum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) thereafter
 and throughout the remainder of the Security Period, one point eight five per centum (1.85%)
 per annum;

***"Approved Auditor"*** means any of KPMG, Ernst & Young, PriceWaterhouse Coopers, Deloitte, Grant Thornton or any other independent and reputable auditor having requisite experience proposed by the Borrowers and acceptable to the Lender and, ***"Approved Auditors"*** means any or all of them, as the context may require;

***"Approved Commercial Manager"*** in relation to a tanker Vessel means Pyxis and in relation to a bulker Vessel means Konkar or, in either case, any other person appointed by the Owner of that Vessel with the consent of the Lender, as the commercial manager of that Vessel, and includes its successors in title and in the plural means both of them;

***"Approved Managers"*** means together, the Approved Commercial Managers and the Approved Technical Manager and ***"Approved Manager"*** means any of them, as the context may require;

***"Approved Manager's Undertaking"*** in relation to a Vessel means a letter of undertaking including (*inter alia*) an assignment of the relevant Approved Manager's rights, title and interest in the Insurances of that Vessel executed or to be executed by that Approved Manager in favour of the Lender agreeing certain matters in relation to that Approved Manager serving as commercial or, as the case may be, technical manager of that Vessel and subordinating its rights against that Vessel and the Owner thereof to the rights of the Lender under the Finance Documents, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented (together, the ***"Approved Managers' Undertakings"***);

 ****

***"Approved Shipbrokers"*** means Seaborne Shipbrokers S.A., Intermodal Shipbrokers Co., Allied Shipbroking Inc., Galbraiths and any other first class independent firm of internationally known shipbrokers appointed by the Lender, at its discretion, with the Borrowers' consent, such consent not to be unreasonably withheld, and ***"Approved Shipbroker"*** means any of them;

***"Approved Technical Manager"*** in relation to a tanker Vessel, means **International Tanker Management Ltd.**, a company lawfully incorporated in, and validly existing under the laws of Bermuda, having its registered office at Victoria Place, 31 Victoria Street, Hamilton HM 10, Bermuda, represented by its branch office at 809 Executive Heights (Damac Bldg.), P.O. Box 24415, Tecom, Dubai, U.A.E., and in relation to a bulker Vessel, means Konkar or, in either case, any other person appointed by the Borrowers with the consent of the Lender, as the technical manager of that Vessel, and includes its successors in title;

***"Article 55 BRRD"*** means Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms;

***"Assignable Charterparty"*** in relation to a Vessel means any time or bareboat charterparty (irrespective of the duration of such bareboat charterparty), consecutive voyage charter or contract of affreightment, agreement or related document in respect of the employment of that Vessel having a fixed duration of more than 12 months without taking into account any optional extensions and any guarantee of the obligations of the charterer under such charter in respect of that Vessel, hereinafter entered or to be entered into by the Owner of that Vessel or any person, firm or company on its behalf and a charterer, on terms and conditions acceptable to the Lender (and shall include any addenda thereto);

***"Assignee"*** has the meaning ascribed thereto in Clause 14.3 *(<u>Assignment by the Lender</u>)*;

***"Availability Period"*** means the period starting on the date hereof and ending on the earlier of (i) the day falling 18 months from the date hereof and 31<sup>st</sup> January, 2027, (ii) the date on which the whole Commitment has been advanced by the Lender to the Borrowers, and (iii) the date on which the Commitment is reduced to zero pursuant to Clauses 3.6 *(<u>Market disruption</u>)*, 9.2 *(<u>Consequences of Default – Acceleration</u>)*, 12.1 *(<u>Unlawfulness</u>)* or any other Clause of this Agreement;

***"Bail-In Action"*** means the exercise of any Write-down and Conversion Powers;

***"Bail-In Legislation"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 relation to any other state, any analogous law or regulation from time to time which requires
 contractual recognition of any Write-down and Conversion Powers contained in that law or
 regulation;

***"Balloon Instalment"*** in respect of each Advance, has the meaning given in Clause 4.1 *(<u>Repayment</u>)*;

***"Basel II Accord"*** means 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;

***"Basel II Approach"*** means either the Standardised Approach or the relevant Internal Ratings Based Approach (each as defined in the Basel II Accord) adopted by the Lender (or its holding company) for the purposes of implementing or complying with the Basel II Accord;

***"Basel II Regulation"*** means (a) any law or regulation implementing the Basel II Accord or (b) any Basel II Approach adopted by the Lender;

***"Basel III Accord"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 agreements on capital requirements, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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

***"Basel III Regulation"*** means any law or regulation implementing the Basel III Accord save and to the extent that it re-enacts a Basel II Regulation;

***"Beneficial Shareholder(s)"*** means in respect of each of Borrowers and the Corporate Guarantor, the person or persons disclosed to the Lender as being the ultimate legal and beneficial owner or owners (either directly and/or through companies beneficially owned by such person or persons or members of his/her direct family and/or trusts or foundations of which such person or persons or members of his/her direct family are legal and beneficial owners) of at least 25% of the shares and the voting rights attaching to those shares and the legal ownership of those shares in each of the Borrowers and the Corporate Guarantor;

***"Borrowers"*** means, jointly and severally, the Borrower A and the Borrower B, as specified at the beginning of this Agreement, and ***"Borrower"*** means either of them as the context may require;

***Break Costs"*** means the amount (if any) by which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 interest (excluding Applicable Margin) which the Lender should have received for the period
 from the date of receipt of all or any part of its participation in the Loan or the relevant
 part of it or any sum due and payable but unpaid by a Security Party under the Security Documents
 to the last day of the current Interest Period in respect of the Loan or the relevant part
 of it or any other sum due and payable but unpaid by a Security Party under the Security
 Documents, had the principal amount received been paid on the last day of that Interest Period;

exceeds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 amount which the Lender would be able to obtain by placing an amount equal to the principal
 amount of the Loan or the relevant part thereof or such other sum due and payable but unpaid
 by a Security Party under the Security Documents received by it on deposit with a leading
 bank in the London Interbank Market for a period starting on the Business Day following receipt
 or recovery and ending on the last day of the current Interest Period;

***"Business Day"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 day (other than a Saturday or Sunday) on which banks are open for general business in Athens

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 New York; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (in
 relation to the fixing of any interest rate which is required to be determined under this
 Agreement or any Finance Document), a US Government Securities Business Day;

***"Charterparty Assignment"*** in relation to a Vessel, means an assignment of the rights of its Owner under any Assignable Charterparty and any guarantee of such Assignable Charterparty executed or to be executed by its Owner in favour of the Lender and the acknowledgement of notice of the assignment in respect of such Assignable Charterparty to be obtained (on best effort basis by its Owner) in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented and ***"Charterparty Assignments"*** means any or all of them, as the context may require;

***"Classification"*** in relation to a Vessel means the classification referred to in the Mortgage registered thereon with the Classification Society or such other Classification Society as the Lender shall, at the request of the Borrowers, have agreed in writing, shall be treated as the Classification Society for the purposes of the Finance Documents;

***"Classification Society"*** means such classification society which is a member of IACS (other than the China Classification Society and the Russian Maritime Registry of Shipping) and which the Lender shall, at the request of the Borrowers, have agreed in writing to be treated as the Classification Society for the purposes of the Finance Documents;

***"Commitment"*** means the amount which the Lender agreed to lend to the Borrowers under Clause 2.1 *(<u>Commitment to Lend</u>)* as reduced by any relevant term of this Agreement;

***"Commitment Letter"*** means the Commitment Letter dated 2 May, 2025 addressed by the Lender to the Corporate Guarantor and accepted by them on 7 May, 2025 and shall include any amendments or addenda thereto;

***"Compulsory Acquisition"*** in relation to a Vessel means requisition for title or other compulsory acquisition, requisition, appropriation, expropriation, deprivation, forfeiture or confiscation for any reason of that Vessel, whether for full or part consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any Government Entity or other competent authority, whether de jure or de facto, but shall exclude requisition for use or hire not involving requisition of title;

***"Corporate Guarantee"*** means an irrevocable and unconditional guarantee given or, as the context may require, to be given by the Corporate Guarantor in form and substance satisfactory to the Lender as security for the Outstanding Indebtedness and any and all other obligations of the Borrowers under this Agreement and the Security Documents, as the same may from time to time be amended and/or supplemented;

***"Corporate Guarantor"*** means **Pyxis Tankers Inc.**, a corporation incorporated under the laws of the Republic of the Marshall Islands, whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands and/or any other person nominated by the Borrowers and acceptable to the Lender which may give a Corporate Guarantee, and includes its successors in title;

***"Default"*** means any Event of Default or any event which with the giving of notice or lapse of time (or any combination thereof) would constitute an Event of Default;

***"Default Rate"*** means that rate of interest per annum which is determined in accordance with the provisions of Clause 3.4 *(<u>Default Interest</u>)*;

***"Delivery"*** in relation to a Vessel means the delivery of that Vessel from the Seller to, and the acceptance of that Vessel by, the Owner thereof pursuant to the relevant MOA;

***"Delivery Date"*** in relation to a Vessel means the date upon which the Delivery of that Vessel occurs;

***"DOC"*** means a document of compliance issued to an Operator in accordance with rule 13 of the ISM Code;

***"Dollars"*** (and the sign **"$"**) means the lawful currency for the time being of the United States of America;

***"Drawdown Date"*** in relation to an Advance means the date, being a Business Day, requested by the Borrowers for that Advance to be made available, or (as the context requires) the date on which that Advance is actually borrowed;

***"Drawdown Notice"*** means a notice substantially in the terms of Schedule 1 (*<u>Form of Drawdown Notice</u>*) (or in any other form which the Lender approves);

***"Earnings"*** in relation to a Vessel means all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Owner thereof and which arise out of the use or operation of that Vessel, including (but not limited to) all freight, hire and passage moneys, compensation payable to the Owner thereof in the event of requisition of that Vessel for hire, remuneration for salvage and towage services, demurrage and detention moneys, contributions of any nature whatsoever in respect of general average, damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of that Vessel and any other earnings whatsoever due or to become due to the Owner thereof in respect of that Vessel and all sums recoverable under the Insurances in respect of loss of Earnings and includes, if and whenever the Vessel is employed on terms whereby any and all such moneys as aforesaid are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing agreement which is attributable to that Vessel;

***"EEA Member Country"*** means any member state of the European Union, Iceland, Liechtenstein and Norway;

***"Environmental Affiliate"*** means any agent or employee of any of the Borrowers or any other Relevant Party or any person having a contractual relationship with any of the Borrowers or any other Relevant Party in connection with any Relevant Ship or her operation or the carriage of cargo thereon;

***"Environmental Approval"*** means any consent, authorisation, licence or approval of any governmental or public body or authorities or courts applicable to any Relevant Ship or her operation or the carriage of cargo thereon and/or passengers therein and/or provisions of goods and/or services on or from the Relevant Ship required under any Environmental Law;

***"Environmental Claim"*** means:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 claim by any other person which relates to an Environmental Incident,

and *"**claim**"* means (i) a claim for damages, compensation, fines, penalties or any other payment of any kind which exceeds $750,000 (or the equivalent in any other currency) per incident or (ii) one or more claims for damages, compensation, fines, penalties or any other payment of any kind, which exceed $750,000 (or the equivalent in any other currency) per incident including in relation to clean-up and removal, 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 (i) any release of Material of Environmental Concern from a Vessel, (ii) any incident in which Material of Environmental Concern is released from a vessel other than the Vessels and which involves collision between a Vessel and such other vessel or some other incident of navigation or operation, in either case, where a Vessel, the Borrowers (or either of them) or the Approved Managers (or any of them) are/is actually at fault or otherwise liable (in whole or in part) or (iii) any incident in which Material of Environmental Concern is released from a vessel other than the Vessels and where a Vessel is actually or potentially liable to be arrested as a result and/or where the Borrowers (or either of them) or the Approved Managers (or any of them) are/is actually at fault or otherwise liable;

***"Environmental Laws"*** means all national, international and state laws, rules, regulations, treaties and conventions applicable to any Relevant Ship pertaining to the pollution or protection of human health or the environment including, without limitation, the carriage of Materials of Environmental Concern and actual emissions, spills, releases or discharges of Materials of Environmental Concern from any Relevant Ship (including, without limitation, the United States Oil Pollution Act of 1990 and any comparable laws of the individual States of the United States of America);

***"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 event or circumstance set out in Clause 9.1 *(<u>Events</u>)* or described as such in any other of the Finance Documents;

***"Expenses"*** means the aggregate at any relevant time (to the extent that the same have not been received or recovered by the Lender) of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 losses, liabilities, costs, charges, expenses, damages and outgoings of whatever nature,
 (including, without limitation, Taxes, repair costs, registration fees and insurance premiums,
 crew wages, repatriation expenses and seamen's pension fund dues) suffered, incurred,
 charged to or paid or committed to be paid by the Lender in connection with the exercise
 of the powers referred to in or granted by any of the Finance Documents or otherwise payable
 by the Borrowers (or either of them) in accordance with the terms of any of the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 expenses referred to in Clause 10.3 *(<u>Expenses</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) interest
 on all such losses, liabilities, costs, charges, expenses, damages and outgoings from, in
 the case of Expenses referred to in sub-paragraph (b) above, the date on which such Expenses
 were demanded by the Lender from the Borrowers and in all other cases, the date on which
 the same were suffered, incurred or paid by the Lender until the date of receipt or recovery
 thereof (whether before or after judgement) at the Default Rate (as conclusively certified
 by the Lender save in case of manifest error);

***"FATCA"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) sections
 1471 to 1474 of the US Internal Revenue Code of 1986 or any associated regulations or other
 associated official guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Deduction"*** means a deduction or withholding from a payment under a Finance Document required by FATCA;

***"FATCA Exempt Party"*** means a party that is entitled to receive payments free from any FATCA Deduction;

***"Final Maturity Date"*** means the date falling five (5) years from the Drawdown Date of the Advance last drawn;

***"Final Repayment Date"*** in relation to an Advance means the date falling five (5) years from the Drawdown Date of that Advance;

***"Finance Documents"*** means, together, this Agreement, the Security Documents, the Insurance Letters and any other document designated as such by the Lender and the Borrowers;

***"Financial Indebtedness"*** means, in relation to a person (the *"**debtor**"*), a liability of the debtor:

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

***"Financial Year"*** means, in relation to a Security Party, each twelve months period commencing on 1<sup>st</sup> January of the financial year of that Security Party and ending on 31<sup>st</sup> December of that year, in respect of which financial statements referred to in Clause 8.1(f) *(<u>Financial statements</u>)* are or ought to be prepared;

***"First Repayment Date"*** in relation to an Advance means the date falling three (3) months after the Drawdown Date of that Advance;

 ****

***"Flag State"*** in relation to a Vessel means the Republic of the Marshall Islands or such other state or territory designated in writing by the Lender, at the request of the Owner thereof, as being the *"Flag State"* of that Vessel for the purposes of the Security Documents;

***"General Assignment"*** in relation to a Vessel means the first priority assignment of the Earnings, Insurances and Requisition Compensation collateral to the Mortgage relative to that Vessel, executed or (as the context may require) to be executed by the Owner thereof in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented (together, the ***"General Assignments"***);

***"Government Entity"*** means and includes (whether having a distinct legal personality or not) any national or local government authority, board, commission, department, division, organ, instrumentality, court or agency and any association, organisation or institution of which any of the foregoing is a member or to whose jurisdiction any of the foregoing is subject or in whose activities any of the foregoing is a participant;

***"Governmental Withholdings"*** means withholdings and any restrictions or conditions resulting in any charge whatsoever imposed, either now or hereafter, by any sovereign state or by any political sub-division or taxing authority of any sovereign state;

***"Group"*** means together the Borrowers, the Corporate Guarantor and its direct or indirect Subsidiaries (including the Borrowers) from time to time during the Security Period and *"**member of the Group**"* shall be construed accordingly;

***"Insurance Letter"*** in relation to a Vessel means a letter from the Owner thereof in the form of Schedule 2 (*<u>Form of Insurance Letter</u>*), and ***"Insurance Letters"*** means all of them, as the context may require;

***"Insurances"*** in relation to a Vessel means all policies and contracts of insurance (including, without limitation, all entries of that Vessel in a protection and indemnity, hull and machinery, war risks or other mutual insurance association) which are from time to time in place or taken out or entered into by or for the benefit of the Owner thereof (whether in the sole name of that Owner or in the joint names of that Owner and the Lender, however without the Lender being liable for payment of premiums, contributions or calls) in respect of that Vessel and its Earnings (<u>provided that</u> such loss of Earnings insurance is mutually agreed between that Owner and the Lender, however without the Lender being liable for payment of premiums, contributions or calls) or otherwise howsoever in connection with that Vessel and all benefits of such policies and/or contracts (including all claims of whatsoever nature and return of premiums);

***"Interest Payment Date"*** means in respect of an Advance or the Loan or any part thereof in respect of which a separate Interest Period is fixed the last day of the relevant Interest Period and in case of any Interest Period longer than three (3) months the date(s) falling at successive three (3) monthly intervals during such longer Interest Period and the last day of such Interest Period, <u>provided, however, that</u> if any of the aforesaid dates falls on a day which is not a Business Day the Borrowers shall pay the accrued interest on the first Business Day thereafter unless the result of such extension would be to carry such Interest Payment Date over into another calendar month in which event such Interest Payment Date shall be the immediately preceding Business Day;

***"Interest Period"*** means in relation to an Advance or the Loan or any part thereof, each period for the calculation of interest in respect of that Advance or the Loan or such part ascertained in accordance with Clauses 3.2 *(<u>Selection of Interest Period</u>)* and 3.3 *(<u>Determination of Interest Periods</u>)*;

***"Interpolated Term SOFR"*** means, in relation to an Advance or the Loan or any part of the Loan, the rate (rounded to the same number of decimal places as Term SOFR) which results from interpolating on a linear basis between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 applicable Term SOFR (as of the Quotation Day) for the longest period (for which Term SOFR
 is available) which is less than the Interest Period of that Advance or the Loan or that
 part of the Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 no such Term SOFR is available for a period which is less than the Interest Period for that
 Advance or the Loan or that part of the Loan, SOFR for the day which is two US Government
 Securities Business Days before the Quotation Day; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 applicable Term SOFR (as of the Quotation Day) for the shortest period (for which Term SOFR
 is available) which exceeds the Interest Period of that Advance or the Loan or that part
 of the Loan.

***"IFRS"*** means international accounting standards within the meaning of the IAS Regulations 1606/2002 to the extent applicable to the relevant financial statements;

***"ISM Code"*** means in relation to its application to the Borrowers, the Approved Managers, the Vessels and their operation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *"The International Management Code for the Safe Operation of Ships and for Pollution Prevention"*,
 currently known or referred to as the *"ISM Code"*, adopted by the Assembly
 of the International Maritime Organisation by Resolution A. 741(18) on 4<sup>th</sup> November,
 1993 and incorporated on 19<sup>th</sup> May, 1994 into chapter IX of the International Convention
 for the Safety of Life at Sea 1974 (SOLAS 1974); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 further resolutions, circulars, codes, guidelines, regulations and recommendations which
 are now or in the future issued by or on behalf of the International Maritime Organisation
 or any other entity with responsibility for implementing the ISM Code, including without
 limitation, the *"Guidelines on implementation or administering of the International Safety Management (ISM) Code by Administrations"* produced by the International
 Maritime Organisation pursuant to Resolution A. 788(19) adopted on 25<sup>th</sup> November,
 1995;

as the same may be amended, supplemented or replaced from time to time;

***"ISM Code Documentation"*** includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 DOC and SMC issued by a Classification Society in all respects acceptable to the Lender in
 its absolute discretion pursuant to the ISM Code in relation to each Vessel within the period
 specified by the ISM Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 other documents and data which are relevant to the ISM SMS and its implementation and verification
 which the Lender may require by request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 other documents which are prepared or which are otherwise relevant to establish and maintain
 each Vessel's or each Owner's compliance with the ISM Code which the Lender may
 require by request;

***"ISM SMS"*** means the safety management system which is required to be developed, implemented and maintained under the ISM Code;

***"ISPS Code"*** means the International Ship and Port Security Code of the International Maritime Organization and includes any amendments or extensions thereto and any regulation issued pursuant thereto;

***"ISSC"*** in relation to a Vessel means an International Ship Security Certificate issued in respect of that Vessel pursuant to the ISPS Code;

***"Konkar"*** means **Konkar Shipping Agencies S.A.**, a company lawfully incorporated in, and validly existing under the laws of the Republic of Panama, and having a licensed office established in Greece pursuant to the Greek laws 378/68, 27/75, 2234/94, 3752/09 and 4150/13 (as amended and in force at the date hereof) at 59 K. Karamanli Street, Maroussi 15125, Greece;

***"Lender"*** means the Lender as specified in the beginning of this Agreement, and includes its successors in title and transferees;

***"Lending Office"*** means the office of the Lender appearing at the beginning of this Agreement or any other office of the Lender designated by the Lender as the Lending Office by notice to the Borrowers;

***"Loan"*** means the aggregate principal amount borrowed by the Borrowers in respect of the Commitment or (as the context may require) the principal amount thereof owing to the Lender under this Agreement at any relevant time and a "***part of the Loan***" means an Advance, a part of an Advance or any other part of the Loan as the context may require;

***"Loan To Value Ratio"*** means, at any relevant time, the amount of the Loan expressed as a percentage of the Market Value of the Mortgaged Vessel(s) at the relevant time;

"***LofA%***" means a percentage equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 case the Vessel relevant to an Advance is a bulker, 62.50% (sixty-two point fifty per cent.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 case the Vessel relevant to an Advance is a medium range tanker (between 45,000 to 54,999
 dwt), 60% (sixty per cent.); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in
 case the Vessel relevant to an Advance is a long-range tanker or crude oil tanker (between
 55,000 to 115,000 dwt), 57.50% (fifty-seven point fifty per cent.);

 ****

***"Major Casualty"*** in relation to a Vessel means any casualty to that Vessel in respect whereof the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds the Major Casualty Amount**;**

***"Major Casualty Amount"*** means Seven hundred Fifty thousand Dollars ($750,000) or the equivalent in any other currency**;**

***"Management Agreement"*** in relation to a Vessel means the agreement made between the Owner thereof and the relevant Approved Manager as commercial or, as the case may be, technical manager of that Vessel, providing *(inter alia)* for that Approved Manager to manage that Vessel, as amended, supplemented or substituted from time to time (together, the ***"Management Agreements"***);

***"MAPI"*** has the meaning given in Clause 10.10 *(<u>MII and MAPI costs</u>)*;

 ****

***"Market Value"*** in relation to a Vessel means the market value of that Vessel as determined in accordance with Clause 8.5(b) *(<u>Valuation of Vessels</u>)*;

***"Material Adverse Change"*** means any event or series of events which, in the opinion of the Lender, is likely to have a Material Adverse Effect;

***"Material Adverse Effect"*** means a material, in the reasonable opinion of the Lender, adverse effect on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 business, property, assets, liabilities, operations or financial condition of the Borrowers
 and/or any other Security Party taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 ability of the Borrowers and/or any other Security Party to (i) comply with or perform any
 of its obligations or (ii) discharge any of its liabilities, under any Finance Document as
 they fall due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 validity, legality or enforceability of any Finance Document or the rights and remedies of
 the Lender under any Finance Document;

<u>Provided that</u> the Total Loss of a Vessel shall not be considered as an event having a Material Adverse Effect on (a), (b) or (c) hereinabove so long as the Borrowers comply with Clause 4.3 (*<u>Compulsory Prepayment in case of Total Loss or sale of a Vessel</u>*);

***"Material of Environmental Concern"*** means and includes pollutants, contaminants, toxic substances, oil as defined in the United States Oil Pollution Act of 1990 and all hazardous substances as defined in the United States Comprehensive Environmental Response, Compensation and Liability Act 1980;

***"MII"*** has the meaning given in Clause 10.10 *(<u>MII and MAPI costs</u>)*;

***"Minimum Liquidity"*** has the meaning ascribed thereto in Clause 8.1(k) *(<u>Minimum Liquidity</u>);*

***"MOA"*** in relation to a Vessel means the Memorandum of Agreement to be entered into between the sellers named therein as *'Sellers'* and the relevant Borrower named therein as *'Buyers'* in respect of the sale by such sellers and the purchase by that Borrower of that Vessel, and includes any and all addenda thereto and in the plural means both of them;

***"month"*** means a period beginning in one calendar month and ending in the next calendar month on the day numerically corresponding to the day of the calendar month on which it started, <u>provided that</u> (i) if the period started on the last Business Day in a calendar month or if there is no such numerically corresponding day, it shall end on the last Business Day in such next calendar month and (ii) if such numerically corresponding day is not a Business Day, the period shall end on the next following Business Day in the same calendar month but if there is no such Business Day it shall end on the preceding Business Day and ***"months"*** and ***"monthly"*** shall be construed accordingly;

***"Mortgage"*** in relation to a Vessel means the first preferred ship mortgage or, as the case may be, first priority ship mortgage and, where applicable, the deed of covenant supplemental thereto on that Vessel to be executed by the Owner thereof in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented, and ***"Mortgages"*** means both of them;

***"Mortgaged Vessel(s)"*** means the Vessel(s) which remain mortgaged in favour of the Lender pursuant to this Agreement at any relevant time during the Security Period;

 ****

***"Operating Account"*** means the account opened or to be opened and maintained in the name of each Owner with the Lending Office or with any other branch of the Lender or any other office of the Lender or with such other bank as may be required by and at the discretion of the Lender pursuant to Clause 13.7 *(<u>Relocation of Operating Accounts</u>)* and shall include any sub-accounts or call accounts (whether in Dollars or any other currency) opened under the same designation or any revised designation or number from time to time notified by the Lender to the Borrowers, to which (inter alia) all Earnings of the relevant Vessel and/or any other moneys are to be paid in accordance with the provisions of this Agreement and/or the relevant General Assignment and/or any of the other Finance Documents, and ***"Operating Accounts"*** means any or all of them, as the context may require;

***"Operating Expenses"*** in relation to a Vessel means the voyage and operating expenses of that Vessel, including, but not limited to, the expenses for operating, crewing, victualing, insuring, maintaining, repairing and generally trading that Vessel *(and if applicable, voyage expenses)*, the expenses for spares, administration and management of that Vessel (inclusive of the management fees) the expenses for complying with requirements of the Classification Society and/or with any regulatory requirements as well as the reserves that the Owner thereof, acting reasonably, considers necessary for the commercial operation of that Vessel and the costs of intermediate and special surveys and dry docking of that Vessel;

***"Operator"*** in relation to a Vessel means any person who is from time to time during the Security Period concerned in the operation of that Vessel and falls within the definition of *"Company"* set out in rule 1.1.2. of the ISM Code;

***"Outstanding Indebtedness"*** means the aggregate of (a) the Loan and interest accrued and accruing thereon, (b) the Expenses, and (c) all other sums of any nature (together with all interest on any of those sums) which from time to time may be payable by the Borrowers to the Lender pursuant to the Finance Documents, whether actually or contingently and (d) any damages payable as a result of any breach by the Borrowers of any of the Finance Documents and (e) any damages or other sums payable as a result of any of the obligations of the Borrowers under or pursuant to any of the Finance Documents being disclaimed by a liquidator or any other person, or, where the context permits, the amount thereof for the time being outstanding;

***"Owner"*** in relation to a Vessel means the Borrower that is the owner of that Vessel as specified in the definition of the Vessel in this Clause 1.2, and ***"Owners"*** means both of them;

***"Party"*** means a party to this Agreement, and ***"Parties"*** means any or all of them, as the context may require;

*"**Permitted Financial Indebtedness***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Financial Indebtedness
incurred under the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 shareholders' loans, including any loans made by the Corporate Guarantor, which are
 unsecured and fully subordinated to all Financial Indebtedness incurred under the Finance
 Documents in writing pursuant to a subordination agreement acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 Financial Indebtedness owing to an Approved Manager, subject to the Borrowers ensuring on
 or prior to incurring such Financial Indebtedness, that the rights of the relevant creditor
 thereunder are fully subordinated to the rights of the Lender hereunder in writing pursuant
 to a subordination agreement acceptable to the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 Financial Indebtedness incurred in the ordinary course of owning, operating, maintaining,
 repairing and trading the Vessels (or either of them) or for the purposes of complying with
 requirements of the Classification Society and/or with any regulatory requirements;

 ****

***"Permitted Security Interests"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Security

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) liens
 for salvage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) liens
 arising by operation of law for not more than 2 months' prepaid hire under any charter
 in relation to the Vessels (or either of them) not prohibited by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Vessel, provided such liens do not secure amounts more than 90 days overdue
 (unless the overdue amount is being contested in good faith by appropriate steps) and, in
 the case of liens for repair or maintenance, in a Vessel which is put in the possession of
 any person for the purpose of work being done upon her in an amount exceeding or likely to
 exceed the Major Casualty Amount <u>provided that</u> (i) either that person has first given
 to the Lender and in terms satisfactory to it a written undertaking not to exercise any lien
 on that Vessel or her Earnings for the cost of such work or (ii) the previous consent of
 the Lender shall have been obtained (which consent shall not be unreasonably withheld);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 the
 relevant Owner is prosecuting or defending such action in good faith by appropriate steps;
 and

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

***"Pledgor(s)"*** in relation to each Borrower, means such person(s) or legal entity/entities which is/are confirmed to and approved by the Lender holding all the issued share capital in that Borrower and who has executed or (as the context may require) shall execute the relevant Shares Pledge Agreement;

***"Purchase Price"*** in relation to a Vessel means the price to be paid by the Owner thereof to the Seller thereof pursuant to the terms of the relevant MOA or such other sum as is determined in accordance with the terms and conditions of the relevant MOA;

***"Pyxis"*** means **Pyxis Maritime Corp.**, a company lawfully incorporated in, and validly existing under the laws of the Republic of the Marshall Islands, and having a licensed office established in Greece pursuant to the Greek laws 378/68, 27/75, 2234/94, 3752/09 and 4150/13 (as amended and in force at the date hereof) at 59 K. Karamanli Street, Maroussi 15125, Greece;

***"Quotation Day"*** means, in relation to any period for which an interest rate is to be determined, the date falling two (2) US Government Securities Business Days before the first day of that period unless market practice differs in the relevant loan market in which case the Quotation Day will be determined by the Lender in accordance with market practice (and if quotations would normally be given on more than one day, the Quotation Day will be the last of those days);

*"**Reference Rate**"* means, in relation to an Advance or the Loan or any part of the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 applicable Term SOFR as of the Quotation Day and for a period equal in length to the Interest
 Period of that Advance or the Loan or that part of the Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as
 otherwise determined pursuant to Clause 3.8 (*<u>Unavailability of Term SOFR</u>*),

and if, in either case, that rate is less than zero, the Reference Rate shall be deemed to be zero;

***"Registry"*** in relation to a Vessel means the offices of such registrar, commissioner or representative of the relevant Flag State who is duly authorised to register that Vessel, its Owner's title thereto and the relevant Mortgage over that Vessel under the laws and flag of the relevant Flag State;

***"Regulatory Agency"*** means the Government Entity or other organization in the relevant Flag State which has been designated by the government of the relevant Flag State to implement and/or administer and/or enforce the provisions of the ISM Code;

***"Related Company"*** means any company or other entity which is an Affiliate of the Borrowers, and ***"Related Companies"*** means any or all of them, as the context may require;

***"Relevant Jurisdiction"*** means any jurisdiction in which or where any Security Party is incorporated, resident, domiciled, has a permanent establishment, carries on, or has a place of business or is otherwise effectively connected;

***"Relevant Party"*** means each Borrower and each of the Borrowers' Related Companies, and ***"Relevant Parties"*** means any or all of them, as the context may require;

***"Relevant Ship"*** means each Vessel and any other vessel from time to time (on or after the date of this Agreement) owned, managed or crewed, by any Relevant Party, and ***"Relevant Ships"*** means any or all of them, as the context may require;

***"Repayment Date"*** in relation to an Advance means each of the dates specified in Clause 4.1 *(<u>Repayment</u>)* on which the Repayment Instalments for that Advance shall be payable by the Borrowers to the Lender, and ***"Repayment Dates"*** means any or all of them, as the context may require;

***"Repayment Instalment"*** in relation to an Advance means each instalment of that Advance which becomes due for repayment by the Borrowers to the Lender on a Repayment Date pursuant to Clause 4.1 *(<u>Repayment</u>)* (together, the ***"Repayment Instalments"***);

***"Requisition Compensation"*** in relation to a Vessel means all sums of money or other compensation from time to time paid or payable by reason of Compulsory Acquisition of that Vessel otherwise than by requisition for hire;

***"Resolution Authority"*** means any body which has authority to exercise any Write-down and Conversion Powers;

***"Safekeeping Securities Account"*** <u>(</u>Λογαριασμός φύλαξης αξιών) means the account opened or to be opened by the Pledgor(s) with the Lender's Shipping Branch located at 137-139 Filonos Street, Piraeus, Greece Lending Office for the safekeeping of the shares held by the Pledgor(s) in the issued share capital of the Borrowers and which shall be pledged in favour of the Lender pursuant to the relevant Shares Pledge Agreement;

***"Sanctions"*** means any economic, financial or trade sanctions laws, regulations, embargoes or other restrictive measures adopted, administered, enacted or enforced by any Sanctions Authority, or otherwise imposed by any law or regulation, compliance with which is mandatory in the ordinary course of business of the Borrowers (or either of them), any other Security Party and the Lender or to which the Borrowers (or either of them), any other Security Party and the Lender are subject (which shall include without limitation, any extra-territorial sanctions imposed by law or regulation of the United States of America);

***"Sanctions Authority"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 government of the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 United Nations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 European Union (or the governments of any of its member states);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 United Kingdom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Flag State of each Vessel; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 respective governmental institutions and agencies of any of the foregoing including the Office
 of Foreign Assets Control of the U.S. Department of the Treasury ( ***"OFAC"***),
 the United States Department of State, the United States Department of Commerce and His Majesty's
 Treasury;

***"Sanctions Restricted Jurisdiction"*** means any country or territory which is the subject of country-wide or territory-wide Sanctions;

***"Sanctions Restricted Person"*** means a person or vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that
 is, or is directly or indirectly, owned or controlled (as such terms are defined by the relevant
 Sanctions Authority) by, or acting on behalf of, one or more persons or entities on any list
 (each as amended, supplemented or substituted from time to time) of restricted entities,
 persons or organisations (or equivalent) published by a Sanctions Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that
 is located or resident in or incorporated under the laws of, or owned or controlled by, a
 person located or resident in or incorporated under the laws of a Sanctions Restricted Jurisdiction;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that
 is otherwise the subject of Sanctions;

***"Security Documents"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Accounts Pledge Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Approved Manager's Undertakings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 General Assignments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Mortgages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 Charterparty Assignment in respect of an Assignable Charterparty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Corporate Guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 Shares Pledge Agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 other agreement or document (whether creating a Security Interest or not) that may have been
 or shall from time to time after the date of this Agreement be executed to guarantee and/or
 secure all or any part of the Outstanding Indebtedness and/or any and all other obligations
 of the Borrowers to the Lender pursuant to this Agreement and any other moneys from time
 to time owing or payable by the Borrowers under or in connection with this Agreement and/or
 any of the other documents designated as "*Security Documents*" by the Lender
 and the Borrowers, as each such document may from time to time be amended and/or supplemented,
 and  ***"Security Document"*** means any of them as the context may require;

***"Security Interest"*** means any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest or other encumbrance of any kind securing any obligation of any person or any type of preferential arrangement (including without limitation title transfer and/or retention arrest, seizure, garnishee order (whether nisi or absolute) or any other order or judgement arrangements having a similar effect) or other encumbrance of any kind or the security rights of a plaintiff under an action *in rem* or any right conferring a priority of payment in respect of any obligation of any person;

***"Security Party"*** means each Borrower, the Corporate Guarantor, the Pledgor(s), the Approved Commercial Manager and any other person (other than the Lender, any charterer and any Approved Technical Manager not being a member of the Group) 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 last paragraph of the definition of *"Finance Documents"*, and ***"Security Parties"*** means any or all of them, as the context may require;

***"Security Period"*** means the period commencing on and including the date hereof and terminating on and including the date upon which Outstanding Indebtedness has been paid in full to the Lender;

***"Security Requirement"*** means the amount in Dollars (as certified by the Lender whose certificate shall, in the absence of manifest error, be conclusively binding on the Borrowers) which is at any relevant time not less than one hundred and twenty five per centum (125%) of the Loan outstanding at the relevant time;

***"Security Value"*** means the amount in Dollars (as certified by the Lender whose certificate shall, in the absence of manifest error, be conclusive and binding on the Borrowers) which, at any relevant time is the aggregate of (i) the aggregate Market Value of the Vessels as most recently determined in accordance with Clause 8.5(b) *(<u>Valuation of Vessels</u>)* and (ii) the market value of any additional security provided under Clause 8.5(a) *(<u>Security shortfall-Additional Security</u>)* and accepted by the Lender (if any);

***"Seller"*** in relation to a Vessel means the person specified as *"Sellers"* in the MOA relative thereto;

***"Shares Pledge Agreement"*** in relation to a Borrower means the pledge agreement to be executed by the Pledgor(s) of that Borrower in favour of the Lender, whereby such Pledgor(s) shall pledge all the issued share capital of that Borrower, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented (together, the ***"Shares Pledge Agreements"***);

***"SMC"*** in relation to a Vessel means a safety management certificate issued in respect of that Vessel in accordance with rule 13 of the ISM Code;

***"SOFR"*** means the secured overnight financing rate (SOFR) administered by the Federal Reserve Bank of New York (or any other person which takes over the administration of that rate) published (before any correction, recalculation or republication by the administrator) by the Federal Reserve Bank of New York (or any other person which takes over the publication of that rate);

 ****

***"Subsidiary"*** of a person means any company or entity directly or indirectly controlled by such person;

***"Taxes"*** includes all present and future taxes, levies, imposts, duties, fees or charges of whatever nature together with interest thereon and penalties in respect thereof (except taxes concerning the Lender and imposed on the net income of the Lender) and ***"Taxation"*** shall be construed accordingly;

***"Term SOFR"*** means the term SOFR reference rate administered by CME Group Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant period published (before any correction, recalculation or republication by the administrator) by CME Group Benchmark Administration Limited (or any other person which takes over the publication of that rate);

 ****

***"Total Loss"*** means, in relation to a Vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) actual, constructive,
compromised or arranged total loss of that Vessel; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Compulsory Acquisition of that Vessel, unless it is within thirty (30) days from the date
 of such occurrence redelivered to the full control of the Owner thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 condemnation, capture, seizure, confiscation, arrest or detention of that Vessel (other than
 where the same amounts to the Compulsory Acquisition of that Vessel) by any Government Entity,
 or by persons acting on behalf of any Government Entity, unless that Vessel be released and
 restored to the Owner thereof from such condemnation, capture, seizure, confiscation arrest
 or detention or within 120 days after the occurrence thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 hijacking, capture, seizure or confiscation of that Vessel arising as a result of a piracy
 or related incident unless that Vessel be released and restored to the Owner thereof from
 such hijacking, capture, seizure or confiscation within 180 days after the occurrence thereof;

***"Total Loss Date"*** means, in relation to a Vessel:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of a constructive, compromised, agreed or arranged total loss of that Vessel, the
 earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 date on which a notice of abandonment is given to the insurers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 date of any compromise, arrangement or agreement made by or on behalf of the Owner of that
 Vessel with that Vessel's insurers in which the insurers agree to treat that Vessel
 as a total loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the case of the Compulsory Acquisition of that Vessel, upon the expiry of the period of thirty
 (30) days after the occurrence thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 the case of condemnation, capture, seizure, confiscation, arrest or detention of that Vessel
 (other than where the same amounts to the Compulsory Acquisition of that Vessel) by any Government
 Entity, or by persons acting on behalf of any Government Entity, which deprives the Owner
 thereof of the use of that Vessel for more than one hundred twenty (120) days, upon the expiry
 of the period of one hundred twenty (120) days after the date upon which the relevant, condemnation,
 capture, seizure or confiscation, arrest or detention occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in
 the case of hijacking, capture, seizure or confiscation of that Vessel arising as a result
 of a piracy or related incident upon the expiry of the period of 180 days after the occurrence
 thereof;

***"Transferee"*** has the meaning ascribed thereto in Clause 14.3 *(<u>Assignment by the Lender</u>)*;

***"UK Bail-In Legislation"*** means Part 1 of the United Kingdom Banking Act 2009 and any other law or regulation applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutes or their Affiliates (otherwise than through liquidation, administration or other insolvency proceedings);

*"**Unpaid Sum**"* means any sum due and payable but unpaid by a Security Party under the Finance Documents;

***"US"*** means the United States of America;

***"US-GAAP"*** means generally accepted accounting principles in the United States of America;

***"US Government Securities Business Day"*** means any day other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 Saturday or a Sunday; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 day on which the Securities Industry and Financial Markets Association (or any successor
 organisation) recommends that the fixed income departments of its members be closed for the
 entire day for purposes of trading in US Government securities;

***"US Tax Obligor"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 Borrower if it is resident for tax purposes in the US; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 Security Party some or all whose payments under the Finance Documents are from sources within
 the US for US federal income tax purposes;

***"Valentis Family"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all the lineal
descendants in direct line of Mr. Valentios Valentis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a husband and wife
or former husband or wife or widower or widow of any of the above persons (including for the avoidance of doubt Mr. Valentios Valentis);
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each
company (other than a member of the Group) legally or beneficially owned or (as the case may be) controlled by one or more of the persons
or entities which would fall within paragraphs (a) to (b) above ,

and "***member of the Valentis Family***" means any one of them;

***"Vessel"*** in relation to a Borrower means a bulk carrier or tanker motor vessel built from 2015 (inclusive) onwards of deadweight tonnage between, in the case of a bulker, 60.000 to 85.000 and in the case of a tanker, 45,000 to 115,000 to be acquired, subject to the prior approval of the Lender, by that Borrower pursuant to the MOA relative thereto and which upon her Delivery shall be registered in the ownership of that Borrower through the relevant Registry and under the laws and flag of the relevant Flag State with a name of that Borrower's choice, together with all her boats, engines, machinery tackle outfit spare gear fuel consumable and other stores belongings and appurtenances whether on board or ashore and whether now owned or hereafter acquired and all the additions, improvements and replacements in or on the above described vessel (each a ***"Vessel"*** and ***"Vessels"*** means both of them;

***"Write-down and Conversion Powers"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 relation to any other applicable Bail-In Legislation, other than the UK Bail-In Legislation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any similar or
analogous powers under that Bail-In Legislation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 relation to any UK Bail-In Legislation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 powers under that UK 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 UK Bail-In Legislation that are related
 to or ancillary to any of those powers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 similar or analogous powers under that UK Bail-In Legislation.

**1.3** **Interpretation** 

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Clause
 headings and the table of contents are inserted for convenience of reference only and shall
 be ignored in the interpretation of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject
 to any specific provision of this Agreement or of any assignment and/or participation or
 syndication agreement of any nature whatsoever, reference to each of the parties hereto and
 to the other Finance Documents shall be deemed to be reference to and/or to include, as appropriate,
 their respective successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where
 the context so admits, words in the singular include the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 words *"including"* and *"in particular"* shall not be
 construed as limiting the generality of any foregoing words;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) references
 to (or to any specified provisions of) a Finance Document or any other agreement or instrument
 is a reference to that Finance Document or other agreement or instrument as it may from time
 to time be amended, restated, novated or replaced, however fundamentally, whether before
 the date of this Agreement or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) references
 to Clauses and Schedules are to be construed as references to the Clauses of, and the Schedules
 to, the relevant Finance Document and references to a Finance Document include all the terms
 of that Finance Document and any Schedules, Annexes or Appendices thereto, which form an
 integral part of same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) references
 to the opinion of the Lender or a determination or acceptance by the Lender or to documents,
 acts, or persons acceptable or satisfactory to the Lender or the like shall be construed
 as reference to the opinion, determination, acceptance or satisfaction of the Lender at the
 sole discretion of the Lender, and such opinion, determination, acceptance or satisfaction
 of the Lender shall be conclusive and binding on the Borrowers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) references
 to a *" **regulation** "* include any present or future regulation, rule,
 directive, requirement, request or guideline (whether or not having the force of law) of
 any governmental or intergovernmental body, agency, authority, central bank or government
 department or any self-regulatory or other national or supra-national authority or organisation
 and includes (without limitation) any Basel II Regulation or Basel III Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all
 obligations imposed on, or assumed by the Borrowers are joint and several even if not so
 expressed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) references
 to any person include such person's assignees and successors in title; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) references
 to the Lender's *"cost of funds"* in relation to an Advance or the
 Loan or any part of the Loan is a reference to the average cost (determined either on an
 actual or a notional basis) which the Lender would incur if it were to fund, from whatever
 source(s) it may reasonably select, an amount equal to the amount that Advance, the Loan
 or that part of the Loan for a period equal in length to the Interest Period of that Advance
 or the Loan or that part of the Loan (as the case may be).

**1.4** **Construction of certain terms** 

In this Agreement:

*"**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;

*"**contingent liability**"* means a liability which is not certain to arise and/or the amount of which remains unascertained;

*"**continuing**"*, in relation to any Default (or any Event of Default, means that that Default or Event of Default, respectively, has not been remedied or waived;

***"control"*** of an entity means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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 that entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) appoint
 or remove all, or the majority, of the directors or other equivalent officers of that entity;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) give
 directions with respect to the operating and financial policies of that entity with which
 the directors or other equivalent officers of that entity are obliged to comply; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 holding beneficially of more than 50% of the issued share capital of that entity (excluding
 any part of that issued share capital that carries no right to participate beyond a specified
 amount in a distribution of either profits or capital) (and, for this purpose, any Security
 Interest over the share capital shall be disregarded in determining the beneficial ownership
 of such share capital);

and *"**controlled**"* shall be construed accordingly;

*"**document**"* includes a deed; also a letter or fax;

*"**guarantee**"* means any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness and *"**guaranteed**"* shall be construed accordingly;

*"**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;

*"**liability**"* includes every kind of debt or liability (present or future, certain or contingent), whether incurred as principal or surety or otherwise;

*"**person**"* includes any individual, firm, company, corporation, unincorporated body of persons or any state, political sub-division or any agency thereof 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;

*"**regulation**"* includes any regulation, rule, official directive, request or guideline whether or not having the force of law of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

*"**right**"* means any right, privilege, power or remedy, any proprietary interest in any asset and any other interest or remedy of any kind, whether actual or contingent, present or future, arising under contract or law, or in equity;

*"**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; and

*"**liquidation**", "**winding up**", "**dissolution**",* or *"**administration**"* of person or a *"**receiver**"* or *"**administrative receiver**"* or *"**administrator**"* in the context of insolvency proceedings or security enforcement actions in respect of a person shall be construed so as to include any equivalent or analogous proceedings or any equivalent and analogous person or appointee (respectively) under the law of the jurisdiction in which such person is established or incorporated or any jurisdiction in which such person carries on business including (in respect of proceedings) the seeking or occurrences of liquidation, winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief of debtors.

**1.5** **Same meaning** 

Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

**1.6** **Inconsistency** 

Unless a contrary indication appears, in the event of any inconsistency between the terms of this Agreement and the terms of any other Finance Document when dealing with the same or similar subject matter (other than as relates to the creation and/or perfection of security) are subject to the terms of this Agreement and, in the event of any conflict between any provision of this Agreement and any provision of any Finance Document (other than in relation to the creation and/or perfection of security) the provisions of this Agreement shall prevail.

**1.7** **Finance Documents** 

Where any other Finance Document provides that Clause 1.3 *(<u>Interpretation</u>)* and Clause 1.4 *(<u>Construction of certain terms</u>)*, shall apply to that Finance Document, any other provision of this Agreement which, by its terms, purports to apply to all or any of the Finance Documents and/or any Security Party shall apply to that Finance Document as if set out in it but with all necessary changes.

**2.** **THE LOAN** 

**2.1** **Commitment to lend** 

The Lender, relying upon (inter alia) each of the representations and warranties set forth in Clause 6 *(<u>Representations and warranties</u>)* and in each of the Security Documents, agrees to lend to the Borrowers, as joint and several borrowers, by up to two (2) Advances, each to be drawn upon and subject to the terms of this Agreement, the amount specified in Clause 1.1 *(<u>Amount and Purpose</u>)* and the Borrowers shall apply all amounts borrowed under the Commitment in accordance with Clause 1.1 *(<u>Amount and Purpose</u>)*.

**2.2** **Drawdown Notice irrevocable** 

A Drawdown Notice must be signed by a director or a duly authorised attorney-in-fact of the Borrowers and shall be effective on actual receipt thereof by the Lender and, once served, it, subject as provided in Clause 3.6 *(<u>Market disruption</u>)*, cannot be revoked without the prior consent of the Lender.

**2.3** **Drawdown Notice and commitment to borrow** 

Subject to the terms and conditions of this Agreement, the Loan shall be advanced to the Borrowers in up to two (2) Advances following receipt by the Lender from the Borrowers of a Drawdown Notice in respect of the relevant Advance not later than 11:30 a.m. (Athens time) on the third Business Day before the date on which the drawdown of that Advance is intended to be made unless the Lender otherwise approves.

**2.4** **Number of Advances agreed** 

The Commitment shall be advanced to the Borrowers, subject to the terms and conditions of this Agreement, by up to two (2) Advances.

**2.5** **Disbursement** 

In respect of each Advance, upon receipt of a Drawdown Notice complying with the terms of this Agreement the Lender shall, subject to the provisions of Clause 7 *(<u>Conditions precedent</u>)*, on the date specified in that Drawdown Notice, make such Advance available to the Borrowers, and payment to the Borrowers shall be made to the account which the Borrowers specify in that Drawdown Notice.

**2.6** **Application of proceeds** 

Without prejudice to the Borrowers' obligations under Clause 8.1(d) *(<u>Use of Loan proceeds</u>)*, the Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement and shall have no responsibility for the application of the proceeds of the Loan (or any part thereof) by the Borrowers.

**2.7** **Termination date of the Commitment** 

Any part of the Commitment undrawn and uncancelled at the end of the Availability Period shall thereupon be automatically cancelled.

**2.8** **Evidence** 

It is hereby expressly agreed and admitted by the Borrowers that abstracts or photocopies of the books of the Lender as well as statements of accounts or a certificate signed by an authorised officer of the Lender shall be conclusive binding and full evidence, save for manifest error, on the Borrowers as to the existence and/or the amount of the at any time Outstanding Indebtedness, of any amount due under this Agreement, of the applicable interest rate or Default Rate or any other rate provided for or referred to in this Agreement, the Interest Period, the value of additional securities under Clause 8.5(a) *(<u>Security shortfall Additional Security</u>)*, the payment or non-payment of any amount. Nevertheless, enforcement procedures or any other court or out-of-court procedure can be commenced by the Lender on the basis of the above mentioned means of evidence including written statements or certificates of the Lender.

**2.9** **Cancellation** 

The Borrowers shall be entitled to cancel any undrawn part of the Commitment under this Agreement upon giving the Lender not less than five (5) Business Days' notice in writing to that effect, <u>provided that</u> no Drawdown Notice has been given to the Lender under Clause 2.3 *(<u>Drawdown Notice and commitment to borrow</u>)* for the full amount of the Commitment or in respect of the portion thereof in respect of which cancellation is required by the Borrowers. Any such notice of cancellation, once given, shall be irrevocable. Any amount cancelled may not be drawn. Notwithstanding any such cancellation pursuant to this Clause 2.10 the Borrowers shall continue to be liable for any and all amounts due to the Lender under this Agreement including without limitation any amounts due to the Lender under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*.

**2.10** **No security or lien from other person** 

Neither of the Borrowers has taken or received, and each of the Borrowers undertakes that until all moneys, obligations and liabilities due, owing or incurred by the Borrowers under this Agreement and the Security Documents have been paid in full, neither of the Borrowers will take or receive, any security or lien from any Security Party liable or for any liability whatsoever other than any Permitted Security Interest.

**2.11** **Disbursement of an Advance to Seller's Bank or to the Escrow Agent's Bank (as applicable)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 the foregoing provisions of this Clause 2, in the event that an Advance is required to be
 drawn down prior to the satisfaction of the requirements of Clause 7 *(<u>Conditions precedent</u>)* and remitted to the relevant Seller's Bank (the *" **Seller's Bank** "*)
 or to the relevant Escrow Agent's Bank (as applicable) in accordance with the relevant
 clause of the relevant MOA, the Lender may in its absolute discretion agree to remit such
 amount to the Seller's Bank or to the relevant Escrow Agent's Bank (as applicable)
 by MT103 prior to the satisfaction of the requirements of Clause 7 *(<u>Conditions precedent</u>)* expressly subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such
 amount is remitted to the Seller's Bank to be held by it in suspense account on trust
 and to the sole order of the Lender or to the relevant Escrow Agent's account held
 with the Escrow Agent's Bank, as applicable, pursuant to the terms and conditions of
 an Escrow Agreement to be approved by the Lender (the *" **deposit account** "*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 principal amount (the *" **deposited amount** "*) of such funds will only
 be released to the relevant Seller strictly in accordance with the Lender's instructions
 set out in the SWIFT payment instructions of the relevant MT199 or in the relevant Escrow
 Agreement, as applicable (together herein, the *" **SWIFT Instructions** "*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 deposited amount so released may be used only for payment to the account of the relevant
 Seller in satisfaction of the balance of the Purchase Price of the relevant Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in
 the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) no
 part of the said amount so remitted is released (whether on the expected Delivery Date or
 thereafter) in accordance with the SWIFT instructions or any part thereof is not so released,
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the
 Seller's Bank or the relevant Escrow Agent or the relevant Escrow Agent's Bank
 (as applicable) fails to remit (or to order the remittance, as applicable) the said amount
 and any earned interest to the relevant Operating Account and/or any other account designated
 by the Lender in accordance with the SWIFT Instructions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the continued failure of the Seller's Bank or the relevant Escrow Agent or the relevant Escrow Agent's Bank (as applicable) to comply with the SWIFT instructions shall be deemed to be an Event of Default for the purposes of this Agreement and (2) the Borrowers shall forthwith upon demand by the Lender pay to the Lender such amounts that may be certified by the Lender as being the amount required to indemnify the Lender in respect of any cost transferred to the Lender in relation to the deposited amount from the date of payment thereof to the Seller's Bank or to the relevant Escrow Agent's Bank (as applicable) to the date of disbursement of the deposited amount to the relevant Seller or the refund of the deposited amount to the Lender less the amount (if any) of the earned interest received by the Lender from the Seller's Bank or the relevant Escrow Agent's Bank (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without
 prejudice to the obligations of the Borrowers to indemnify the Lender on demand, the Lender
 shall in good faith take reasonable and proper steps diligently to seek recovery of the deposited
 amount from the Seller's Bank or the relevant Escrow Agent's Bank (as applicable)
 (<u>provided that</u> prior to taking such action, the Borrowers shall have agreed to indemnify
 the Lender for all costs and expenses which may be incurred in seeking recovery of such amount,
 including, without limitation, all legal fees and disbursements reasonably and properly incurred)
 and if the Lender shall recover any part of the deposited amount (and <u>provided that</u> it has previously recovered full indemnification under Clause 2.12(a)(iv)) the Lender shall,
 so long as no Event of Default has occurred and is continuing, pay to the Borrowers the amount
 so recovered after subtracting any tax suffered or incurred thereon or Expenses incurred
 by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Lender shall have no liability whatsoever to the Borrowers or any other person for any loss
 caused by the Seller's Bank's or the relevant Escrow Agent's Bank's
 (as applicable) failure for any reason whatsoever to remit the said amount and any earned
 interest to the designated account or to comply fully in accordance with the SWIFT Instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 amounts remitted by the Seller's Bank or by the relevant Escrow Agent's Bank
 (as applicable) to the Lender and returned pursuant to this Clause 2.12 will be applied as
 follows, and express authority is hereby given by each of the Borrowers to the Lender to
 make such application in case the purchase of the relevant Vessel has been canceled, or delayed
 these amounts shall be applied in or towards prepayment of the relevant Advance in full,
 and, following such prepayment, the remaining amount (if any) shall, unless an Event of Default
 has occurred and is continuing at the relevant time, be freely available to the Borrowers.

For the purposes of this Clause, ***"Escrow Agent's Bank"*** means (in case an Escrow Agent is appointed) the bank of the Escrow Agent appointed by the relevant Borrower in accordance with the terms of the relevant MOA and the provisions of any Escrow Agreement made between that Borrower, the relevant Seller and the said Escrow Agent, and acknowledged and agreed by the Lender.

The provisions of Clause 4.5 *(<u>Amounts payable on prepayment)</u>* shall apply to any prepayment of the Loan made under this Clause 2.12.

**2.12** **Interest to co-borrow** 

The Borrowers have an interest in borrowing jointly and severally in that they are companies which have close financial co-operation and mutual assistance and in that the Commitment would not have been available to each one of the Borrowers separately.

**3.** **INTEREST** 

**3.1** **Normal Interest Rate** 

The Borrowers shall pay interest on the Loan (or as the case may be, each part of the Loan to which a different Interest Period relates) in respect of each Interest Period related thereto on each Interest Payment Date. The interest rate for the calculation of interest shall be the rate per annum determined by the Lender to be the aggregate of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Applicable
Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Reference Rate
for that Interest Period.

**3.2** **Selection of Interest Periods** 

The Borrowers may by notice received by the Lender not later than 11:30 a.m. (Athens time) on the second Business Day before the beginning of each Interest Period specify (subject to Clause 3.3 *(<u>Determination of Interest Periods</u>)* below) whether such Interest Period shall have a duration of one (1) or three (3) or six (6) months (or such other period as may be requested by the Borrowers and as the Lender, in its sole discretion, may agree to).

**3.3** **Determination of Interest Periods** 

Every Interest Period shall, subject to market availability to be conclusively determined by the Lender, be of the duration specified by the Borrowers pursuant to Clause 3.2 *(<u>Selection of Interest Periods</u>)* but so that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Interest Period</u>: the initial Interest Period applicable to each Advance will commence
 on the Drawdown Date of that Advance and shall end on the last day of that Interest Period
 and each subsequent Interest Period in respect thereof will commence forthwith upon the expiry
 of the preceding Interest Period for that Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest tranches</u>: if any Interest Period in respect of an Advance would otherwise overrun one
 or more Repayment Dates of that Advance, then, in the case of the last Repayment Date of
 that Advance, such Interest Period shall end on such Repayment Date, and in the case of any
 other Repayment Date or Dates the amount of that Advance shall be divided into parts so that
 there is one part equal to the amount of the Repayment Instalment or Repayment Instalments
 due on each Repayment Date of that Advance falling during that Interest Period and having
 an Interest Period ending on the relevant Repayment Date of that Advance and another part
 equal to the amount of the balance of that Advance having an Interest Period determined in
 accordance with Clause 3.2 *(<u>Selection of Interest Period</u>)* and the other provisions
 of this Clause 3.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Interest Period to extend beyond Final Maturity Date</u>: No Interest Period for the Loan
 shall end after the Final Maturity Date and any such Interest Period which would otherwise
 extend beyond the Final Maturity Date shall instead end on the Final Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Final Interest Period</u>: no Interest Period in respect of an Advance shall extend beyond the
 Final Repayment Date for that Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Failure to notify</u>: if the Borrowers fail to specify the duration of an Interest Period in accordance
 with the provisions of Clause 3.2 *(<u>Selection of Interest Period</u>)* and this Clause
 3.3, such Interest Period shall have a duration of three (3) months,

<u>provided, always, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Interest Period which commences on the last day of a calendar month, and any Interest Period
 which commences on the day on which there is no numerically corresponding day in the calendar
 month during which such Interest Period is due to end, shall end on the last Business Day
 of the calendar month during which such Interest Period is due to end; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 the last day of an Interest Period is not a Business Day the Interest Period shall be extended
 until the next following Business Day unless such next following Business Day falls in the
 next calendar month in which case such Interest Period shall be shortened to expire on the
 preceding Business Day.

**3.4** **Default Interest** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Default interest</u>: If the Borrowers fail to pay any sum (including, without limitation, any sum
 payable pursuant to this Clause 3.4) on its due date for payment under any of the Finance
 Documents, the Borrowers shall pay interest on such sum from the due date up to the date
 of actual payment (as well after as before judgement) at the rate determined by the Lender
 pursuant to this Clause 3.4. The period beginning on such due date and ending on such date
 of payment shall be divided into successive periods as selected by the Lender, each of which
 (other than the first, which shall commence on such due date) shall commence on the last
 day of the preceding such period. The rate of interest applicable to each such period shall
 be the aggregate (as determined by the Lender) of (i) two per cent (2.00%) per annum, (ii)
 the Applicable Margin and (iii) the Reference Rate. Such interest shall be due and payable
 on the last day of each such period as determined by the Lender and each such day shall,
 for the purposes of this Agreement, be treated as an Interest Payment Date, <u>provided that</u> if such Unpaid Sum is of principal which became due and payable by reason of a declaration
 by the Lender under Clause 9.2 *(<u>Consequences of Default – Acceleration</u>)* or a prepayment pursuant to Clauses 4.3 *(<u>Mandatory Prepayment in case of Total Loss or sale of a Vessel</u>)*, 8.5(a)(i), 12.1 *(<u>Unlawfulness</u>) and 12.2 (<u>Increased Cost</u>)* on a date other than an Interest Payment Date relating thereto, the first such
 period selected by the Lender shall be of a duration equal to the period between the due
 date of such principal sum and such Interest Payment Date and interest shall be payable on
 such principal sum during such period at a rate two per cent (2%) per annum above the rate
 applicable thereto immediately before it fell due. If for the reasons specified in Clause
 3.6 *(<u>Market disruption</u>)*, the Lender is unable to determine a rate in accordance
 with the foregoing provisions of this Clause 3.4, interest on any sum not paid on its due
 date for payment shall be calculated at a rate determined by the Lender to be two per cent
 (2%) per annum above what is or, as the case may be, would be payable under Clause 3.7(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compounding of default interest</u>: Any such interest which is not paid at the end of the period by
 reference to which it was determined may thereupon be compounded every six (6) months and
 shall be payable on demand.

**3.5** **Notification of duration of Interest Periods and interest rate** 

The Lender shall notify the Borrowers promptly of the duration of each Interest Period and of each rate of interest determined by it under this Clause 3 without prejudice to the right of the Lender to make determinations at its sole discretion, 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 Lender's notification. However, omission of the Lender to make such notification (without the application of the Borrowers) will not constitute and will not be interpreted as if to constitute a breach of obligation of the Lender except in case of wilful misconduct.

**3.6** **Market disruption** 

If before close of business in Athens on the Quotation Day for the relevant Interest Period, the Lender determines (in its sole discretion) that its cost of funds relating to the Loan would be in excess of the Reference Rate, then Clause 3.7 (*<u>Cost of funds</u>*) shall apply to the Loan for the relevant Interest Period.

**3.7** **Cost of funds** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 this Clause 3.7 (*<u>Cost of funds</u>*) 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Applicable
Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 rate notified by the Lender to the Borrowers, which expresses as a percentage rate per annum
 the Lender's cost of funds relating to the Loan or the relevant part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 this Clause 3.7 (*<u>Cost of funds</u>*) applies and the Lender or the Borrowers so
 require, the Lender and the Borrowers 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject
 to Clause 3.9 (*<u>Changes to reference</u>* <u>r *ates*</u>), any substitute or
 alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of
 both the Lender and the Borrowers, be binding on all Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 any rate notified to the Lender under sub-paragraph (ii) of paragraph (a) above is less than
 zero, the relevant rate shall be deemed to be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 no substitute or alternative basis agreed pursuant to paragraph (b) above, the Borrowers
 may give the Lender not less than 5 days' notice of their intention to prepay the Loan
 at the end of the interest period mutually agreed between the Borrowers and the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A
 notice under paragraph (e) above shall be irrevocable; and on the last Business Day of the
 interest period mutually agreed between the Borrowers and the Lender the Borrowers shall
 prepay (without premium or penalty) the Loan, together with accrued interest thereon at the
 applicable interest rate and the balance of the Outstanding Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 provisions of Clause 4 *(<u>Repayment-Prepayment</u>)* shall apply in relation to the
 prepayment made hereunder.

**3.8** **Unavailability of Term SOFR** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Interpolated Term SOFR</u>* : If no Term SOFR is available for the Interest Period of the Loan or any
 part of the Loan, the applicable Reference Rate shall be the Interpolated Term SOFR for a
 period equal in length to the Interest Period of the Loan or that part of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Cost of funds</u>* : If paragraph (a) above applies but it is not possible to calculate the
 Interpolated Term SOFR, there shall be no Reference Rate for the Loan or that part of the
 Loan (as applicable) and Clause 3.7 (*<u>Cost of Funds</u>*) shall apply to the Loan
 or that part of the Loan for that Interest Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.9** **Changes to reference rates** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 a Published Rate Replacement Event has occurred in relation to any Published Rate, any amendment
 or waiver which relates to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) providing
 for the use of a Replacement Reference Rate in place of that Published Rate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) aligning
 any provision of any Finance Document to the use of that Replacement Reference Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) enabling
 that Replacement Reference Rate to be used for the calculation of interest under this Agreement
 (including, without limitation, any consequential changes required to enable that Replacement
 Reference Rate to be used for the purposes of this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) implementing
 market conventions applicable to that Replacement Reference Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) providing
 for appropriate fallback (and market disruption) provisions for that Replacement Reference
 Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) adjusting
 the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of
 economic value from one Party to another as a result of the application of that Replacement
 Reference Rate (and if any adjustment or method for calculating any adjustment has been formally
 designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall
 be determined on the basis of that designation, nomination or recommendation),

may be made with the consent of the Lender and the Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In this Clause
3.9 (*<u>Changes to reference rates</u>*):

"***Published Rate***" means Term SOFR for any Quoted Tenor or SOFR

"***Published Rate Replacement Event***" means, in relation to a Published Rate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 methodology, formula or other means of determining that Published Rate has, in the opinion
 of the Lender, materially changed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 administrator of that Published Rate or its supervisor publicly announces that such administrator
 is insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) information
 is published in any order, decree, notice, petition or filing, however described, of or filed
 with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory
 or judicial body which reasonably confirms that the administrator of that Published Rate
 is insolvent,

provided that, in each case, at that time, there is no successor administrator to continue to provide that Published Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 administrator of that Published Rate publicly announces that it has ceased or will cease
 to provide that Published Rate permanently or indefinitely and, at that time, there is no
 successor administrator to continue to provide that Published Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 supervisor of the administrator of that Published Rate publicly announces that such Published
 Rate has been or will be permanently or indefinitely discontinued; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 administrator of that Published Rate or its supervisor announces that that Published Rate
 may no longer be used; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the opinion of the Lender, that Published Rate is otherwise no longer appropriate for the
 purposes of calculating interest under this Agreement.

"***Quoted Tenor***" means, in relation to Term SOFR, any period for which that rate is customarily displayed on the relevant page or screen of an information service.

"***Relevant Nominating Body***" means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board.

"***Replacement Reference Rate***" means a reference rate which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) formally
 designated, nominated or recommended as the replacement for a Published Rate by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the administrator
of that Published Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Relevant Nominating
Body,

and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the "***Replacement Reference Rate***" will be the replacement under paragraph (ii) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the opinion of the Lender, generally accepted in the international or any relevant domestic
 loan markets as the appropriate successor or alternative to a Published Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the opinion of the Lender, an appropriate successor or alternative to a Published Rate.

**4.** **REPAYMENT - PREPAYMENT** 

**4.1** **Repayment** 

The Borrowers shall and it is expressly undertaken by the Borrowers, jointly and severally, to repay the Loan as follows:

Each Advance shall be repaid by (a) twenty (20) equal consecutive quarterly Repayment Instalments, the first of which to be repaid on the date falling on the First Repayment Date for that Advance and each of the subsequent ones consecutively falling due for payment on each of the dates falling three (3) months after the immediately preceding Repayment Date with the last (the 20<sup>th</sup>) of such Repayment Instalments falling due for payment on the Final Repayment Date for that Advance and (b) a balloon instalment (the ***"Balloon Instalment"***) to be repaid together with the last (the 20<sup>th</sup>) Repayment Instalment on the Final Repayment Date for that Advance; subject to the provisions of this Agreement, each of such Repayment Instalments shall be as follows:

In respect of each Advance the amount of each of the twenty (20) principal installments thereof will be the result of the following formula:

**PI = AA / {4 x [22– (YD– YB)]}**

where:

**PI: is the amount of each principal instalment, AA: is the amount actually drawn under the relevant Advance,** 

**YD: is the year of drawing of the relevant Advance, provided however that in case the relevant Advance is drawn within January, 2027, the YD will be equal to 2026, YB: is the year that the Vessel relative to the relevant Advance is built.**

In respect of each Advance the amount of the Balloon Instalment thereof will be the result of the following formula:

BA = AA-20x PI

where:

**BA: is the amount of the relevant Balloon Instalment, and**

**AA and PI: have the meaning referred to hereinabove.**

<u>provided that</u> (i) if the last Repayment Date of an Advance would otherwise fall after the Final Repayment Date of that Advance, such last Repayment Date shall be the Final Repayment Date of that Advance, (ii) there shall be no Repayment Dates of any Advance after the Final Repayment Date of that Advance, (iii) on the Final Maturity Date the Borrowers shall also pay to the Lender any and all other monies then due and payable under this Agreement and the other Finance Documents and (iv) if any of the Repayment Instalments shall become due on a day which is not a Business Day, the due date therefor shall be extended to the next succeeding Business Day unless such Business Day falls in the next calendar month, in which event such due date shall be the immediately preceding Business Day.

**4.2** **Voluntary Prepayment** 

The Borrowers shall have the right, to prepay without premium or penalty, part or all of an Advance or the Loan in each case together with all unpaid interest accrued thereon and all other sums of money whatsoever due and owing from the Borrowers to the Lender hereunder or pursuant to the other Finance Documents and all interest accrued thereon, <u>provided that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Lender shall have received from the Borrowers not less than fifteen (15) days' prior
 notice in writing (which shall be irrevocable) of their intention to make such prepayment
 and specify the account and the date on which such prepayment is to be made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such
 prepayment may take place only on the last day of an Interest Period relating to an Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each
 such prepayment shall be equal to One hundred thousand Dollars ($100,000) or a whole multiple
 thereof or the balance of that Advance or the balance of the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 prepayment of less than the whole of an Advance will be applied in or towards pro-rata reduction
 of the relevant Balloon Instalment and the relevant remaining Repayment Instalments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) every
 notice of prepayment shall be effective only on actual receipt by the Lender, shall be irrevocable
 and shall oblige the Borrowers to make such prepayment on the date specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Borrowers has provided evidence satisfactory to the Lender 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 regulation relevant to this Agreement which affects the Borrowers
 (or either of them) or any Security Party has been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) no
 amount prepaid may be re-borrowed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the
 Borrowers may not prepay the Loan or any part thereof save as expressly provided in this
 Agreement;

<u>Provided, always, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 the Borrowers shall, subject always to Clause 4.2(a), make a prepayment on a Business Day
 other than the last day of an Interest Period in respect of the Loan, it shall, in addition
 to the amount prepaid and accrued interest, pay to the Lender any amount which the Lender
 may certify is necessary to compensate the Lender for any Break Costs incurred by the Lender
 as a result of the making of the prepayment in question; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 case of full prepayment of the Loan within the first two (2) years from the first Drawdown
 Date, which is partially or wholly effected through refinancing by a third party (other than,
 for the avoidance of doubt, any prepayment made through a sale and lease back of either Vessel
 (which shall not constitute a refinancing), as well as any prepayment made through equity
 and equity linked financing, a prepayment fee equal to zero point five zero per cent (0.50%)
 of the amount to be refinanced shall be paid to the Lender.

**4.3** **Mandatory prepayment in case of Total Loss or sale of a Vessel** 

**The Borrowers shall be obliged to prepay the Relevant Required Amount on the relevant Prepayment Date (as hereinafter defined) (the "*Prepayment*"), in the following cases:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Total Loss of a Mortgaged Vessel</u>: On a Mortgaged Vessel becoming a Total Loss the Borrowers
 shall prepay to the Lender the Relevant Required Amount, on the earlier of the date falling
 (i) one hundred and eighty (180) days after the Total Loss Date, and (ii) the date of receipt
 by the Lender (or the Owner of that Mortgaged Vessel) of the insurance proceeds relating
 to such Total Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Sale of or refinancing of a Mortgaged Vessel</u>: In the event of a sale or other disposal of
 a Mortgaged Vessel or in case of refinancing of a Mortgaged Vessel by another bank or financial
 institution or if a Borrower requests the Lender's consent for the discharge of the
 Mortgage registered on that Mortgaged Vessel, the Borrowers shall prepay to the Lender the
 Relevant Required Amount on the relevant Prepayment Date; <u>provided, however, that in case of</u> a sale of a Mortgaged Vessel the Borrowers shall provide to the Lender supporting
 documents evidencing such sale (including, without limitation, copy of any memorandum of
 agreement).

<u>Provided, always, that</u> if the relevant Mortgaged Vessel so lost or sold or otherwise disposed of or refinanced is the last Mortgaged Vessel pursuant to this Agreement, then the Borrowers shall prepay to the Lender the total Outstanding Indebtedness in full together with all sums payable by the Borrowers to the Lender under Clause 4.5 *(<u>Amounts payable on prepayment</u>)*.

<u>For the avoidance of doubt</u> in the event that the Total Loss or, as the case may be, sale or refinancing proceeds of the relevant Mortgaged Vessel are insufficient to pay in full the whole of the Relevant Required Amount or, as the case may be, the Outstanding Indebtedness in full, the Borrowers shall be obliged to pay the shortfall to the Lender simultaneously with the payment of the full amount of the Total Loss or sale or other disposal or refinancing proceeds (as the case may be) of that Mortgaged Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notification</u>:
 The Lender shall promptly notify to the Borrowers the total additional amounts payable pursuant
 to the foregoing provisions of this Clause 4.3 and Clause 4.5 *(<u>Amounts payable on prepayment</u>)* within 30 days of the relevant Mortgaged Vessel becoming a Total Loss and in the case
 of sale or other disposal or refinancing of the relevant Mortgaged Vessel, prior to the expected
 date of completion of such sale or refinancing, and the Borrowers shall be obliged to make
 such repayment of the Relevant Required Amount and payment of interest and other monies as
 aforesaid on the date specified in the foregoing provisions of this Clause 4.3.

For the purpose of this Clause 4.3:

***"Relevant Required Amount"*** in relation to a Mortgaged Vessel means an amount equal to the <u>aggregate</u> of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 amount equal to the outstanding amount of the Advance relative to that Mortgaged Vessel lost
 or sold or refinanced; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such
 additional amount as shall be necessary so that the Loan To Value Ratio (i.e. the remaining
 outstanding principal amount of the Loan (after the payment of the Relevant Required Amount)
 as opposed to the Market Value of the remaining Mortgaged Vessel) does not exceed sixty seven
 point five per centum (67.5%); and

***"Prepayment Date"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>in the case of a sale of a Mortgaged Vessel</u>, the date falling on the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 date on which the sale is completed by delivery of that Mortgaged Vessel to the buyer of
 that Mortgaged Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 date of receipt by the Lender of the proceeds relating to such sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>in the case of a Total Loss of a Mortgaged Vessel</u>, the date falling on the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 date falling 180 days after the Total Loss Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 date of receipt by the Lender of the proceeds of insurance relating to such Total Loss or,
 as the case may be, the Requisition Compensation.

**4.4** **Application by the Lender in case of mandatory prepayment** 

The Relevant Required Amount prepaid in accordance with Clause 4.3 *(<u>Mandatory prepayment in case of Total Loss or sale of a Vessel</u>),* will be applied by the Lender in or towards prepayment/reduction pro-rata of the remaining Repayment Instalments and the Balloon Instalment relative to that Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5** **Amounts payable on prepayment** 

Any prepayment of all or part of the Loan under this Agreement shall be made together with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accrued
 interest on the prepaid amount of an Advance or, as the case may be, the Loan to the date
 of such prepayment (calculated, in the case of a prepayment pursuant to Clause 3.6 *(<u>Market disruption</u>)* at a rate equal to the aggregate of the Applicable Margin and the cost
 to the Lender of funding the Loan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any additional
amount payable under Clause 5.3 *(<u>Gross Up</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all
 other sums payable by the Borrowers to the Lender under this Agreement or any of the other
 Finance Documents including, without limitation, any amounts payable under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 relation to any prepayment made on a date other than an Interest Payment Date in respect
 of an Advance or ,as the case may be the Loan, it shall, in addition to the amount prepaid
 and accrued interest, pay to the Lender any amount which the Lender may certify is necessary
 to compensate the Lender for any Break Costs incurred by the Lender as a result of the making
 of the prepayment in question.

**5.** **PAYMENTS, TAXES AND COMPUTATION** 

**5.1** **Payment - No set-off or Counterclaims** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Borrowers hereby jointly and severally acknowledge that, in performing their respective obligations
 under this Agreement, the Lender will be incurring liabilities to third parties in relation
 to the funding of amounts to the Borrowers, such liabilities matching the liabilities of
 the Borrowers to the Lender and that it is reasonable for the Lender to be entitled to receive
 payments from the Borrowers gross on the due date in order that the Lender is put in a position
 to perform its matching obligations to the relevant third parties. Accordingly, all payments
 to be made by the Borrowers under this Agreement and/or any of the other Finance Documents
 shall be made in full, without any set-off or counterclaim whatsoever and, subject as provided
 in Clause 5.3 *(<u>Gross Up</u>)*, free and clear of any deductions or withholdings
 or Governmental Withholdings whatsoever, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 Dollars (except for charges or expenses which shall be paid in the currency in which they
 are incurred), not later than 11:30 a.m. (Athens time) on the Business Day (in Athens and
 New York City) on which the relevant payment is due under the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 such account and at such bank as the Lender may from time to time specify for this purpose
 by written notice to the Borrowers, reference: *" Dryfour Corp. / Loan Agreement dated: 30<sup>th</sup> July, 2025 "* <u>provided however, that</u> the Lender shall have the right
 to change the place of account for payment, upon three (3) Business Days' prior written
 notice to the Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 at any time it shall become unlawful or impracticable for the Borrowers (or any of them)
 to make payment under this Agreement to the relevant account or bank referred to in Clause
 5.1(a), the Borrowers may request and the Lender may agree to alternative arrangements for
 the payment of the amounts due by the Borrowers to the Lender under this Agreement or the
 other Finance Documents.

**5.2** **Payments on Business Days** 

All payments due shall be made on a Business Day. If the due date for payment falls on a day which is not a Business Day, that payment due shall be made on the immediately following Business Day unless such Business Day falls in the next calendar month, in which case payments shall fall due and be made on the immediately preceding Business Day.

**5.3** **Gross Up** 

If at any time any law, regulation, regulatory requirement or requirement of any governmental authority, monetary agency, central bank or the like compels the Borrowers to make payment subject to Governmental Withholdings (other than a FATCA Deduction) or other deduction or withholding, the Borrowers shall pay to the Lender such additional amounts as may be necessary to ensure that there will be received by the Lender a net amount equal to the full amount which would have been received had payment not been made subject to such Governmental Withholdings (other than a FATCA Deduction). The Borrowers shall indemnify the Lender against any losses or costs incurred by the Lender by reason of any failure of the Borrowers to make any such deduction or withholding or by reason of any increased payment not being made on the due date for such payment. The Borrowers shall, not later than thirty (30) days after each deduction, withholding or payment of any Governmental Withholdings (other than a FATCA Deduction), forward to the Lender official receipts and any other documentary receipts and any other documentary evidence required by the Lender in respect of the payment made or to be made of any deduction or withholding or Governmental Withholding (other than a FATCA Deduction). The obligations of the Borrowers under this provision shall, subject to applicable law, remain in force notwithstanding the repayment of the Loan and the payment of all interest due thereon pursuant to the provisions of this Agreement.

**5.4** **Mitigation** 

If circumstances arise which would result in an increased amount being payable by the Borrowers under this Clause then, without in any way limiting the rights of the Lender under this Clause, the Lender shall use reasonable endeavours to transfer the obligations, liabilities and rights under this Agreement and the Security Documents to another office or financial institution not affected by the circumstances, but the Lender shall be under no obligation to take any such action if in its opinion, to do so would or might:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) have
 an adverse effect on its business, operations or financial condition on the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) involve
 it in any activity which is unlawful or prohibited or any activity that is contrary to, or
 inconsistent, with any regulation of the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) involve
 the Lender in any expense (unless indemnified to its reasonable satisfaction) or tax disadvantage.

**5.5** **Claw-back of Tax benefit** 

If, following any such deduction or withholding as is referred to in Clause 5.3 *(<u>Gross-up</u>)* from any payment by the Borrowers, the Lender shall receive or be granted a credit against or remission for any Taxes payable by it, the Lender shall, subject to the Borrowers having made any increased payment in accordance with Clause 5.3 *(<u>Gross-up</u>)* and to the extent that the Lender can do so without prejudicing its retention of the amount of such credit or remission and without prejudice to the right of the Lender to obtain any other relief or allowance which may be available to it, reimburse the Borrowers with such amount as the Lender shall in its absolute discretion certify to be the proportion of such credit or remission as will leave the Lender (after such reimbursement) in no worse position than it would have been in had there been no such deduction or withholding from the payment by the Borrowers. Such reimbursement shall be made forthwith upon the Lender certifying that the amount of the credit or remission has been received by it, <u>provided, always, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Lender shall not be obliged to allocate this transaction any part of a tax repayment or credit
 which is referable to a number of transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) nothing
 in this Clause shall oblige the Lender to rearrange its tax affairs in any particular manner,
 to claim any type of relief, credit, allowance or deduction instead of, or in priority to,
 another or to make any such claim within any particular time or to disclose any information
 regarding its tax affairs and computations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) nothing
 in this Clause shall oblige the Lender to make a payment which exceeds any repayment or credit
 in respect of tax on account of which the Borrowers (or any of them) have/has made an increased
 payment under this Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 allocation or determination made by the Lender under or in connection with this Clause shall
 be binding on the Borrowers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) without
 prejudice to the generality of the foregoing, the Borrowers shall not, by virtue of this
 Clause 5.4, be entitled to enquire about the Lender's tax affairs.

**5.6** **Loan Account** 

All sums advanced by the Lender to the Borrowers under this Agreement and all interest accrued thereon and all other amounts due under this Agreement from time to time and all repayments and/or payments thereof shall be debited and credited respectively to a separate loan account maintained by the Lender in accordance with its usual practices in the name of the Borrowers. The Lender may, however, in accordance with its usual practices or for its accounting needs, maintain more than one account, consolidate or separate them but all such accounts shall be considered parts of one single loan account maintained under this Agreement. In case that a ship mortgage in the form of Account Current is granted as security under this Agreement, the account(s) referred to in this Clause shall be the Account Current referred to in such mortgage.

**5.7** **Computation** 

All interest and other payments payable by reference to a rate per annum under this Agreement shall accrue from day to day and be calculated on the basis of actual days elapsed and a 360 day year.

**6.** **REPRESENTATIONS AND WARRANTIES** 

**6.1** **Continuing representations and warranties** 

The Borrowers jointly and severally represent and warrant to the Lender that;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Due Incorporation/Valid Existence</u>: each of the Borrowers and the other corporate Security
 Parties is duly incorporated and validly existing and in good standing under the laws of
 their respective countries of incorporation, and have power to own their respective property
 and assets, to carry on their respective business as the same are now being lawfully conducted
 and to purchase, own (directly or indirectly), finance and operate vessels, or, as the case
 may be, manage vessels, as well as to undertake the obligations which such Security Party
 has undertaken or shall undertake pursuant to the Finance Documents and does not have a place
 of business in the United Kingdom or, in the case of the Corporate Guarantor, the United
 States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Due Corporate Authority</u>: each of the Borrowers and the other corporate Security Parties has
 power to execute, deliver and perform its obligations under the Finance Documents to which
 is or is to be a party and to borrow the Commitment and each of the other Security Parties
 has power to execute and deliver and perform its obligations under the Finance Documents
 to which it is or is to be a party; all necessary corporate, shareholder and other action
 has been taken to authorise the execution, delivery and performance of the same and no limitation
 on the powers of the Borrowers to borrow will be exceeded as a result of borrowing the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Litigation</u>:
 no litigation or arbitration, tax claim or administrative proceeding (including action relating
 to any actual breach of the ISM Code and the ISPS Code) involving a potential liability of
 the Borrowers (or any of them) or the Corporate Guarantor exceeding, in respect of the Borrower,
 the amount of Seven hundred fifty thousand Dollars ($750,000), and in respect of the Corporate
 Guarantor, the amount of Two million Dollars ($2,000,000), is current or pending or (to its
 or its officers' knowledge) threatened against the Borrowers (or any of them) or the
 Corporate Guarantor, and which, if adversely determined, would have a Material Adverse Effect
 on any of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No conflict with other obligations</u>: the execution and delivery of, the performance of their
 obligations under, and compliance with the provisions of, the Finance Documents by the relevant
 Security Parties will not (i) contravene any existing applicable law, statute, rule or regulation
 or any judgment, decree or permit to which the Borrowers (or any of them) or any other Security
 Party is subject, (ii) conflict with, or result in any breach of any of the terms of, or
 constitute a default under, any agreement or other instrument to which the Borrowers (or
 any of them) or any other Security Party is a party or is subject to or by which it or any
 of its property is bound, (iii) contravene or conflict with any provision of the memorandum
 and articles of association/articles of incorporation/by-laws/statutes or other constitutional
 documents of the Borrowers (or any of them) or any other Security Party or (iv) result in
 the creation or imposition of or oblige the Borrowers (or any of them) or any other Security
 Party to create any Security Interest (other than a Permitted Security Interest) on any of
 the undertakings, assets, rights or revenues of the Borrowers (or any of them) or any other
 Security Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Financial Condition</u>: to the knowledge of the Officers/Directors of the Borrowers, the financial
 condition of the Borrowers (or any of them) and of the other Security Parties has not suffered
 any material deterioration since that condition was last disclosed to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Immunity</u>: neither any of the Borrowers nor any other Security Party nor any of their
 respective assets are entitled to immunity on the grounds of sovereignty or otherwise from
 any legal action or proceeding (which shall include, without limitation, suit, attachment
 prior to judgement, execution or other enforcement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Shipping Company</u>: each of the Borrowers is a company involved in the owning of ships engaged in
 international trade and earning profits in free foreign currency; each of Konkar and Pyxis
 is a company involved in the management of ships engaged in international trade;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Licences/Authorisation</u>:
 every consent, authorisation, license or approval of, or registration with or declaration
 to, governmental or public bodies or authorities or courts required by any Security Party
 to authorise, or required by any Security Party in connection with, the execution, delivery,
 validity, enforceability or admissibility in evidence of each of the Finance Documents or
 the performance by each Security Party of its obligations under the Finance Documents to
 which such Security Party is or is to be a party has been obtained or made and is in full
 force and effect and there has been no default in the observance of any of the conditions
 or restrictions (if any) imposed in, or in connection with, any of the same so far as the
 Borrowers are aware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Perfected Securities</u>: the Finance Documents do now or, as the case may be, will, upon execution
 and delivery (and, where applicable, registration as provided for in the Finance Documents):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitute
 the relevant Security Party's legal, valid and binding obligations enforceable against
 that Security Party in accordance with their respective terms (having the requisite corporate
 benefit which is legally and economically sufficient); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create
 legal, valid and binding Security Interests (having the priority specified in the relevant
 Finance Document) enforceable in accordance with their respective terms over all the assets
 and revenues intended to be covered to which they, by their terms, relate, subject to any
 relevant insolvency laws affecting creditors' rights generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No third party Security Interests</u>: without limiting the generality of Clause 6.1(i) *(<u>Perfected Securities</u>)*, at the time of the execution and delivery of each Finance Document to
 which each Borrower is a party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 Borrower will have the right to create all the Security Interests which that Finance Document
 purports to create; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 third party will have any Security Interests (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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Notarisation/Filing/Recording</u>: save for the registration of each Mortgage in the appropriate
 shipping Registry and, if required, the registration of each Shares Pledge Agreement at the
 relevant companies' registry (or equivalent) , it is not necessary to ensure the legality,
 validity, enforceability or admissibility in evidence of this Agreement or any of the other
 Finance Documents that it or they or any other instrument be notarised, filed, recorded,
 registered or enrolled in any court, public office or elsewhere or that any stamp, registration
 or similar tax or charge be paid on or in relation to this Agreement or the other Finance
 Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Beneficial shareholding</u>: all the issued shares and voting rights in each Borrower are held directly
 or indirectly by the Corporate Guarantor (being as of the date of this Agreement the sole
 shareholder of each Borrower) and at least 25% of the issued common share capital of the
 Corporate Guarantor is directly or indirectly held by members of the Valentis Family and
 on the date of this Agreement Mr. Valentios Valentis is the Chairman of the Board of Directors
 or Chief Executive Officer of the Corporate Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Taxes paid</u>: each Borrower has paid all taxes applicable to, or imposed on or in relation to
 the Borrowers, its business or its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Validity and Binding effect</u>: the Finance Documents constitute (or upon their execution - and in
 the case of any mortgage upon its registration at the Registry - will constitute) valid and
 legally binding obligations of the relevant Security Parties enforceable against the Borrowers
 and the other Security Parties in accordance with their respective terms and that there are
 no other agreements or arrangements which may adversely affect or conflict with the Finance
 Documents or the security thereby created; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Valid Choice of Law</u>: the choice of law agreed to govern this Agreement and/or any other Finance
 Document and the submission to the jurisdiction of the courts agreed in each of the Finance
 Documents are or will be, on execution of the respective Finance Documents, valid and binding
 on each of the Borrowers and any other Security Party which is or is to be a party thereto.

**6.2** **Initial representations and warranties** 

The Borrowers further jointly and severally represent and warrant to the Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Direct obligations - Pari Passu</u>: the obligations of the Borrowers under this Agreement are direct,
 general and unconditional obligations of the Borrowers and rank at least pari passu with
 all other present and future unsecured and unsubordinated Financial Indebtedness of the Borrowers
 with the exception of any obligations which are mandatorily preferred by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Information</u>:
 all information, accounts, statements of financial position, exhibits and reports furnished
 by or on behalf of any Security Party to the Lender in connection with the negotiation and
 preparation of this Agreement and each of the other Finance Documents are true and accurate
 in all material respects and not misleading, do not omit material facts and all reasonable
 enquiries have been made to verify the facts and statements contained therein and present
 fairly and accurately the financial position of the Borrowers, the Group or the Corporate
 Guarantor (as the case may be); to the best knowledge of the Directors/Officers of the Borrowers
 there are no other facts the omission of which would make any fact or statement therein misleading
 and, in the case of accounts and statements of financial position, they have been prepared
 in accordance with generally accepted international accounting principles, standards and
 practices which have been consistently applied; and there has been no change in the financial
 position or state of affairs of the Borrowers or the Corporate Guarantor (including its Subsidiaries)
 from that disclosed in the latest of those accounts which is likely to have a Material Adverse
 Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Event of Default</u>: no Event of Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Taxes</u>: no Taxes are imposed by deduction, withholding or otherwise on any payment to
 be made by any Security Party under this Agreement and/or any other of the Finance Documents
 or are imposed on or by virtue of the execution or delivery of this Agreement and/or any
 other of the Finance Documents or any document or instrument to be executed or delivered
 hereunder or thereunder. In case that any Tax (other than a FATCA Deduction) exists now or
 will be imposed in the future, it will be borne by the Borrowers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Default under other Financial Indebtedness</u>: neither any of the Borrowers nor any other
 Security Party is in Default under any agreement relating to Financial Indebtedness to which
 it is a party or by which it is or may be bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Ownership/Flag/Seaworthiness/Class/Insurance of the Vessels</u>: each Vessel on her Delivery Date will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 the absolute and free from Security Interests (other than Permitted Security Interests) ownership
 of the Owner thereof, who will on and after the relevant Delivery Date be the sole legal
 and beneficial owner of that Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) registered
 in the name of the Owner thereof through the relevant Registry of the port of registry of
 the relevant Flag State under the laws and flag of the relevant Flag State;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) operationally
 seaworthy and in every way fit for service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) classed
 with a Classification Society member of IACS, which has been approved by the Lender in writing
 and such classification is and will be free of any overdue requirements and recommendations
 of such Classification Society;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) insured
 in accordance with the provisions of this Agreement and the relevant Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) managed
 by the relevant Approved Managers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in
 full compliance with the ISM and the ISPS Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Charter</u>: save for any Assignable Charterparty and unless otherwise permitted in writing
 by the Lender, neither of the Vessels will on her Delivery Date be subject to any charter
 or contract nor to any agreement to enter into any charter or contract which, if entered
 into after that Drawdown Date or, as the case may be, that Delivery Date would have required
 the consent of the Lender under any of the Finance Documents and there will not on that Delivery
 Date be any agreement or arrangement whereby the Earnings of that Vessel may be shared with
 any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Security Interests</u>: neither any Vessel, nor its Earnings, Requisition Compensation or
 Insurances nor any other properties or rights which are, or are to be, the subject of any
 of the Security Documents nor any part thereof will, on the relevant Delivery Date be subject
 to any Security Interests other than Permitted Security Interests or otherwise permitted
 by the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Compliance with Environmental Laws and Approvals</u>: except as may already have been disclosed by the
 Borrowers in writing to, the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 Owner and its respective Related Companies have complied and will have complied on the Delivery
 Date of its Vessel with the provisions of all Environmental Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each
 Owner and its respective Related Companies have obtained or will have obtained on the Delivery
 Date of its Vessel all Environmental Approvals and are or, as the case may be, will be on
 the Delivery Date in compliance with all such Environmental Approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) neither
 the Borrowers nor any of their respective Related Companies have received notice of any Environmental
 Claim that the Borrowers or any of their respective Related Companies is not in compliance
 with any Environmental Law or any Environmental Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Environmental Claims</u>: except as may already have been disclosed by the Borrowers in writing
 to, the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) there
 is no Environmental Claim in excess of Seven hundred Fifty thousand Dollars ($750,000) pending
 or, to the best of the Borrowers' knowledge and belief, threatened against any Borrower
 or, as of the Delivery Date of its Vessel, against that Vessel or that Borrower's Related
 Companies or any other Relevant Ship; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there
 has been no emission, spill, release or discharge of a Material of Environmental Concern
 from either Vessel or any other Relevant Ship, or any vessel owned by, managed or crewed
 by or chartered to any Borrower, which could give rise to an Environmental Claim, in each
 case likely to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Copies true and complete</u>: the copies of the Management Agreements delivered or to be delivered
 to the Lender pursuant to Clause 7.1 *(<u>Conditions precedent to the execution of this Agreement</u>)* are, or will when delivered be, true and complete copies of such documents;
 such documents will when delivered constitute valid and binding obligations of the parties
 thereto enforceable in accordance with their respective terms and there will have been no
 amendments or variations thereof or defaults thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Application made for DOC and SMC</u>:in relation to each Vessel the Operator thereof prior to her Delivery
 shall apply to the appropriate Regulatory Agency for a DOC for itself and an SMC in respect
 of that Vessel to be issued pursuant to the ISM Code within any time limit required or recommended
 by that Regulatory Agency and that neither any of the Borrowers nor any Operator is aware
 at the date hereof of any reason why such application may be refused;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Compliance with ISM Code</u>: As of the Delivery Date of a Vessel, that Vessel and the Operator thereof
 will comply with the requirements of the ISM Code, and the SMC which shall be issued at the
 relevant time in respect of that Vessel shall be valid on her Delivery Date and thereafter
 shall remain valid throughout the Security Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with ISPS Code</u>: As of the Delivery Date of a Vessel, the Owner thereof shall have a valid
 and current ISSC in respect of its Vessel and will be in full compliance with the ISPS Code;
 and as of the Delivery Date of a Vessel, the Operator thereof will comply with the requirements
 of the ISPS Code and the ISSC which shall be issued at the relevant time in respect of that
 Vessel, shall be valid and shall remain valid throughout the Security Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Subsidiary</u>:
 each Borrower is a fully owned Subsidiary of the Corporate Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No US Tax Obligor</u>: (other than as disclosed to the Lender) none of the Security Parties
 is a US Tax Obligor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Sanctions</u>:
 no Security Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 a Sanctions Restricted Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) owns
 or controls directly or indirectly a Sanctions Restricted Person or is controlled or owned
 directly or indirectly by a Sanction Restricted Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has
 a Sanctions Restricted Person serving as a director, officer or, to the best of its knowledge,
 employee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no
 proceeds of the Loan shall be made available, directly or to the knowledge of the Borrowers,
 or any of them (after reasonable enquiry) indirectly, to or for the benefit of a Sanctions
 Restricted Person contrary to Sanctions or for transactions in a Sanctions Restricted Jurisdiction
 nor shall they be otherwise directly or indirectly, applied in a manner or for a purpose
 prohibited by Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Compliance with certain undertakings</u>: At the date of this Agreement, the Borrowers are in compliance
 with Clauses 8.2(a) *(<u>Negative pledge</u>)*, 8.2(h) *(<u>No other obligations</u>)* and 11.2 *(<u>Maintenance of Securities</u>)*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>MOA Valid</u>: the copy of each MOA to be delivered to the Lender shall be a true and complete
 copy of such document constituting valid and binding obligations of the parties thereto enforceable
 in accordance with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>No default under MOA</u>: after entering into the respective MOA no Borrower will be in default
 under any of its obligations under the MOA to which it is a party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>No Rebates</u>: in relation to a MOA there will be no commissions, rebates premiums or other
 payments by or to or on account of the Borrower which it is a party to that or any other
 Security Party or, to the knowledge of that Borrower, any other person in connection with
 that MOA other than brokerage commissions and as shall be disclosed to the Lender by that
 Borrower in writing.

**6.3** **Money laundering - acting for own account** 

Each of the Borrowers further jointly and severally represents and warrants and confirms to the Lender that it is the beneficiary for each part of the Loan made or to be made available to it and it will promptly inform the Lender by written notice if it is not, or ceases to be, the beneficiary and notify the Lender in writing of the name and the address of the new beneficiary/beneficiaries; each of the Borrowers is aware that under applicable money laundering provisions, it has an obligation to state for whose account the Loan is obtained; each of the Borrowers confirms that, by entering into this Agreement and the other Finance Documents, it is acting on its own behalf and for its own account and it is obtaining the Loan for its own account. In relation to the borrowing by the Borrowers of the Loan, the performance and discharge of their obligations and liabilities under this Agreement or any of the other Finance Documents and the transactions and other arrangements effected or contemplated by this Agreement or any of the Documents to which each of the Borrowers is a party, it is acting for its own account and that the foregoing will not involve or lead to a contravention of any law, official requirement or other regulatory measure or procedure which has been implemented to combat *"money laundering"* (as defined in Article 1 of the Directive (91/308/EEC) of the Council of the European Community).

**6.4** **Representations Correct** 

At the time of entering into this Agreement all above representations and warranties or any other information given by the Borrowers and/or the Corporate Guarantor to the Lender are true and accurate.

**6.5** **Repetition of Representations and Warranties** 

The representations and warranties in this Clause 6 (except in relation to the representations and warranties in Clause 6.2 *(<u>Initial representations and warranties</u>)* and the representations and warranties under sub-clauses (c) *(litigation)* and (k) *(<u>No Notarisation/Filing/Recording</u>)* of Clause 6.1) shall be deemed to be repeated by the Borrowers:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on
 each Drawdown Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on
 each Interest Payment Date throughout the Security Period,

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

**7.** **CONDITIONS PRECEDENT** 

**7.1** **Conditions precedent to the execution of this Agreement** 

The obligation of the Lender to make the Commitment or any part thereof available shall be subject to the condition that the Lender, shall have received, not later than two (2) Business Days before the day on which the Drawdown Notice in respect of the first Advance to be drawn is given, the following documents and evidence in form and substance satisfactory to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Constitutional Documents</u>: a duly certified true copy of the Articles of Incorporation and By-Laws or
 the Memorandum and Articles of Association, or of any other constitutional documents, as
 the case may be, of each corporate Security Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Certificates of incumbency</u>: a recent certificate of incumbency of each corporate Security Party issued
 by the appropriate authority and/or at the discretion of the Lender signed by the secretary
 or a director of each of them respectively, stating the corporate body which binds every
 one of them, the officers and/or the directors of each of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Shareholding</u>:
 a statement to the Lender confirming the identity of the Beneficial Shareholders of each
 of the Security Parties in line with *"know your customer"* procedures of
 the Lender for opening account purposes, who should be acceptable in all respects to the
 Lender; where any of the Security Parties has a corporate shareholder, the conditions set
 out in Sub-clauses (a) *(<u>Constitutional Documents</u>)*, (b) *(<u>Certificates of incumbency</u>)*, (d) if required *(<u>Resolutions</u>)* and (e) if required *(<u>Powers of Attorney</u>)* of this Clause 7.1 shall apply (mutatis mutandis) to such corporate
 shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Resolutions</u>:
 minutes of separate meetings of the directors and shareholders of each of the Borrowers,
 and minutes of meetings of the directors of the Corporate Guarantor and the Approved Commercial
 Managers, at which there was approved (inter alia) the entry into, execution, delivery and
 performance of this Agreement, the other Finance Documents to which each is to be a party,
 and any other documents executed or to be executed pursuant hereto or thereto to which the
 relevant Security Party is or is to be a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Powers of Attorney</u>: the original of any power(s) of attorney and any further evidence of the
 due authority of any person signing this Agreement, the other Finance Documents, and any
 other documents executed or to be executed pursuant hereto or thereto on behalf of any corporate
 person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Consents</u>:
 evidence that all necessary licences, consents, permits and authorisations (including exchange
 control ones) have been obtained by any Security Party for the execution, delivery, validity,
 enforceability, admissibility in evidence and the due performance of the respective obligations
 under or pursuant to this Agreement and the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Other documents</u>: any other documents or recent certificates or other evidence which would be
 required by the Lender in relation to each Security Party evidencing that the relevant Security
 Party has been properly established, continues to exist validly and is in good standing;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Operating Account</u>: evidence that the Operating Account been duly opened and all mandate forms and
 other legal documents required for the opening of an account under any applicable law, as
 well as signature cards and properly adopted authorizations have been duly delivered to and
 have been accepted by the compliance department of the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Safekeeping Securities Account (Λογαριασμός φύλαξης αξιών)</u>: evidence that
 the Safekeeping Securities Account (Λογαριασμός
 φύλαξης αξιών) has been duly opened
 and all legal documents required for the opening of that account have been duly delivered
 to and have been accepted by the compliance department of the Lender.

**7.2** **Conditions precedent to the making of an Advance** 

The obligation of the Lender to make available an Advance (in this Clause 7.2 called the *"**Relevant Advance**"*) is subject to the further condition that the Lender shall have received prior to the drawdown or, where this is not possible, simultaneously with the drawdown of the Relevant Advance or, as the case may be, upon the release of the Relevant Advance to the relevant Seller of the Vessel to be financed by the Relevant Advance (the *"**Relevant Vessel**"*):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conditions precedent</u>: evidence that the conditions precedent set out in Clause 7.1 *(<u>Conditions precedent to the execution of this Agreement</u>)* remain fully satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Drawdown Notice</u>: the relevant Drawdown Notice duly executed, issued and delivered to the Lender
 as provided in Clause 2.2 *(<u>Drawdown Notice and commitment to borrow</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Finance Documents</u>: the Accounts Pledge Agreement, the Corporate Guarantee, the Shares Pledge
 Agreements and each of the following Security Documents relative to the Relevant Advance,
 i.e., the Approved Manager's Undertaking, the General Assignment, the Mortgage, the
 Insurance Letter, any Charterparty Assignment (and each document required to be delivered
 pursuant thereto, other than the acknowledgment by the relevant Charterer, which shall be
 delivered as soon as practically possible thereafter), each duly executed and where appropriate
 duly registered with the Registry or any other competent authority (as required);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Title and no Security Interests</u>: evidence that, prior to or simultaneously with the drawdown
 of the Relevant Advance or, as the case may be, the Delivery of the Relevant Vessel, the
 Relevant Vessel will be duly registered in the ownership of the Owner thereof with the Registry
 and under the laws and flag of the Flag State free from any Security Interests save for Permitted
 Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Insurances</u>:
 evidence in form and substance satisfactory to the Lender that the Relevant Vessel will be
 insured in accordance with the insurance requirements provided for in this Agreement and
 the Security Documents, including a MII and, in case the Relevant Vessel is a tanker, a MAPI,
 together with an opinion from insurance consultants (appointed by the Lender at the Borrowers'
 expense) as to the adequacy of the insurances effected or to be effected in respect of the
 Relevant Vessel, to be followed by full copies of cover notes, policies, certificates of
 entry or other contracts of insurance and irrevocable authority is hereby given to the Lender
 at any time at its discretion to obtain copies of the policies, certificates of entry or
 other contracts of insurance from the insurers and/or obtain any information in relation
 to the Insurances relating to the Relevant Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insurers' confirmations</u>: evidence in form and substance satisfactory to the Lender in its sole
 discretion (and - in the event of fleet cover - accompanied by waivers for liens for unpaid
 premium of other vessels managed by the Approved Managers and which are not subject to any
 mortgage in favour of the Lender) that the Relevant Vessel is insured in accordance with
 the insurance requirements provided for in this Agreement and the other Security Documents,
 together with an opinion from insurance consultants (appointed by the Lender at the Borrowers'
 expense) as to the adequacy of the insurances effected or to be effected in respect of the
 Relevant Vessel, to be followed by full copies of cover notes, policies, certificates of
 entry or other contracts of insurance and irrevocable authority is hereby given to the Lender
 at any time at its discretion to obtain copies of the policies, certificates of entry or
 other contracts of insurance from the insurers and/or obtain any information in relation
 to the Insurances relating to the Relevant Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>MII & MAPI</u>: the MII and, in case the Relevant Vessel is a tanker, MAPI shall have been
 effected by the Lender, but at the expense of the Borrowers as provided in Clause 10.10 *(<u>MII and MAPI costs</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Access to class records</u>: due authorisation from the respective Borrower (in its capacity as
 owner of the Relevant Vessel) in form and substance satisfactory to the Lender authorising
 the Lender, to have access and/or obtain any copies of class records or other information
 at its discretion from the Classification Society of the Relevant Vessel, provided however
 that the Lender shall not exercise such power unless and until an Event of Default has occurred
 and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notices of assignment</u>: duly executed notices of assignment in the form prescribed by the relevant
 Security Documents relative to the Relevant Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Mortgage registration</u>; evidence that the Mortgage will be registered against the Relevant Vessel
 immediately upon her Delivery through the Registry under the laws and flag of the relevant
 Flag State;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Trading certificates</u>: upon issuance, copies of the trading certificates of the Relevant Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Class confirmation</u>: evidence from the Classification Society that the Relevant Vessel, on her
 Delivery Date is classed with the class notation (referred to in the relevant Mortgage),
 with the Classification Society or to a similar standard with another classification society
 of like standing to be specifically approved by the Lender and remains free from any overdue
 requirements or recommendations affecting her class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Trim and stability booklet</u>: an extract of the trim and stability booklet certifying the lightweight
 of the Relevant Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>DOC and SMC</u>: (i) a copy of the DOC issued to the Operator of the Relevant Vessel and (ii)
 a copy of the SMC for the Relevant Vessel together with evidence that such documents are
 presently in full effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>ISM Code Documentation</u>: copies of all ISM Code Documentation in respect of the Relevant Vessel
 and her Operator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>ISPS Code compliance</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence
 satisfactory to the Lender that the Relevant Vessel is subject to a ship security plan which
 complies with the ISPS Code (such as proof that a security plan has been submitted to the
 recognized organisation for approval); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 copy of the ISSC for the Relevant Vessel delivered to the Lender as soon as practically possible
 after her Delivery Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Valuation</u>:
 charter free valuation of the Relevant Vessel satisfactory to the Lender, to be obtained by the Lender, at the Borrowers' expense,
 not earlier than twenty (20) days prior to the expected Drawdown Date of the Relevant Advance made on the basis and in the manner
 specified in Clause 8.5(b) *(<u>Valuation of Vessels</u>);* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Fees</u>:
 evidence that the Arrangement Fee relative to the Relevant Advance referred to in Clause 10.14 *(<u>Fees</u>)* has been paid
 to the Lender or shall be paid concurrently with the drawdown of the Relevant Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Sellers' documents</u>: duly certified copy of the Bill of Sale, the protocol of delivery and acceptance of the Relevant Vessel, as well as
 of all other Sellers' documents upon her Delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>No Security Interests on previous register</u>: evidence that no Security Interests are registered on the relevant Delivery against
 the relevant Vessel on her previous register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Purchase Price paid</u>: evidence that the Purchase Price of the relevant Vessel has been (or upon her Delivery will have been) paid in full
 in accordance with the provisions of the relevant MOA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Borrower's equity</u>: prior to the drawdown of the Relevant Advance, the relevant Borrower has deposited in its Operating Account an amount
 equal to its equity needed for the balance of the Purchase Price under the relevant MOA on Delivery of its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Seller's title</u>: evidence to the full satisfaction of the Lender, proving the Seller's title to the Relevant Vessel free of any mortgages
 or other registered encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Confirmations from process agents</u>: confirmation from any agents nominated in this Agreement and elsewhere in the other Finance Documents for
 the acceptance of any notice or service of process, that they consent to such nomination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Acknowledgement of Receipt</u>: a receipt in writing in form and substance satisfactory to the Lender including an acknowledgement and admission
 of the Borrowers and the Corporate Guarantor to the effect that the Relevant Advance or relevant part thereof (as the case may be)
 was drawn by the Borrowers and a declaration by the Borrowers and the Corporate Guarantor that all conditions precedent have been
 fulfilled or, as the case may be, will be fulfilled on the Delivery Date of the Relevant Vessel, that there is no Event of Default
 and that all the representations and warranties are true and correct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Legal opinions</u>: draft opinion from lawyers appointed by the Lender as to all the matters referred to in Clause 6.1(a) *(<u>Due Incorporation/Valid Existence</u>)* and Clause 6.1(b) *(<u>Due Corporate Authority</u>)* and all such aspects of law as the Lender shall deem
 relevant to this Agreement and the other Finance Documents and any other documents executed pursuant hereto or thereto and any further
 legal or other expert opinion as the Lender at its sole discretion may require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Flag State opinion</u>: draft opinion of legal advisers to the Lender on matters of the laws of the Flag State of the relevant Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>DOC</u>:
 a <u>copy</u> of the DOC applicable to the Approved Technical Manager of the Relevant Vessel certified as true and in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) MOA
 - Management Agreements – Assignable Charterparty: no later than two (2) Business Days before the Drawdown Date in respect
 of the Relevant Vessel a copy of each of the following documents certified as true and complete by the legal counsel of the Borrowers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the relevant MOA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 relevant Management Agreement evidencing that the Relevant Vessel is managed by the relevant Approved Manager on terms acceptable
 to the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the relevant (if any) Assignable Charterparty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Additional documents</u>: all such documents as shall be deemed necessary at the reasonable discretion of the Lender and requested by the Lender
 no less than 10 days prior to the relevant Drawdown Date for giving full effect to this Agreement, and for perfecting, protecting
 the value of or enforcing any rights or securities granted to the Bank under any one or more of this Agreement, the other Security
 Documents and any other documents executed pursuant hereto or thereto.

**7.3** **No change of circumstances** 

The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that at the time of the giving of a Drawdown Notice and on advancing the Commitment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and warranties</u>: the representations and warranties set out in Clause 6 *(<u>Representations and warranties</u>)* and in
 each of the other Finance Documents are true and correct on and as of each such time as if each was made with respect to the facts
 and circumstances existing at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Event of Default</u>: no Event of Default shall have occurred and be continuing or would result from the relevant drawdown;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No change</u>: the Lender shall be satisfied that (i) there has been no change in control directly or indirectly in the ownership, beneficial
 ownership, or management of any of the Borrowers, or any share therein or of the Vessels (or either of them) and (ii) there has been
 no change in the ultimate beneficial ownership of Konkar and Pyxis, as disclosed to the Lender prior to the date of this Agreement,
 and (iii) 100% of the shares and voting rights in the Borrowers remain in the legal and beneficial ownership of the Corporate Guarantor
 and at least 25% of shares and voting rights in the Corporate Guarantor remain in the ultimate legal and beneficial ownership of
 the Beneficial Shareholders disclosed to the Lender prior to the date of this Agreement and (iv) there has been no Material Adverse
 Change in the financial condition of any Security Party which (change) would, in the opinion of the Lender, have a Material Adverse
 Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Market Disruption event</u>: none of the circumstances contemplated by Clause 3.6 *(<u>Market disruption</u>)* has occurred
 and is continuing.

**7.4** **Know your customer and money laundering compliance** 

The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that the Lender, prior to or simultaneously with the drawdown of an Advance, shall have received, to the extent required by any change in applicable law and regulation or any changes in the Lender's own internal guidelines since the date on which the applicable documents and evidence were delivered to the Lender pursuant to Clause 8.8 *(<u>Know your customer and money laundering compliance</u>)*, such further documents and evidence as the Lender shall require to identify the Borrowers and the other Security Parties and any other persons involved or affected by the transaction(s) contemplated by this Agreement.

**7.5** **Further documents** 

Without prejudice to the provisions of this Clause 7, and provided reasonable notice is given to the Borrowers by the Lender, each of the Borrowers hereby undertakes with the Lender to make or procure to be made such amendments and/or additions to any of the documents delivered to the Lender in accordance with this Clause 7 and to execute and/or deliver to the Lender or procure to be executed and/or delivered to the Lender such further documents as the Lender and its legal advisors may reasonably require to satisfy themselves that all the terms and requirements of this Agreement have been complied with.

**7.6** **Waiver of conditions precedent** 

The conditions specified in this Clause 7 are inserted solely for the benefit of the Lender and may be waived by the Lender in whole or in part and with or without conditions. Without prejudice to any of the other provisions of this Agreement, in the event that the Lender, in its sole and absolute discretion, makes the Commitment or any part thereof available to the Borrowers prior to the satisfaction of all or any of the conditions referred to in Clauses 7.1 (*<u>Conditions precedent to the execution of this Agreement)</u>*, 7.2 *(<u>Conditions precedent to the making of an Advance</u>)* and 7.3 *(<u>No change of circumstances</u>)*, each of the Borrowers hereby covenants and undertakes to satisfy or procure the satisfaction of such condition or conditions by no later than fifteen (15) days after the relevant Drawdown Date or within such longer period as the Lender may, in its sole and absolute discretion, agree to or specify.

**8.** **UNDERTAKINGS** 

**8.1** **General** 

Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and discharge of the Outstanding Indebtedness, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice on Adverse Change or Default</u>: promptly inform the Lender upon becoming aware of any occurrence which might adversely affect the
 ability of any Security Party to perform its obligations under any of the Finance Documents and, without limiting the generality
 of the foregoing, will inform the Lender of any Default forthwith upon becoming aware thereof and will from time to time, if so requested
 by the Lender, confirm to the Lender in writing that, save as otherwise stated in such confirmation, no Default has occurred and
 is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notification of litigation</u>: provide the Lender with details of any legal or administrative action against a Borrower, its Vessel, the Earnings
 or the Insurances in respect of its Vessel or the Corporate Guarantor, involving an amount, in respect of each Borrower, in excess
 of Seven hundred fifty thousand Dollars ($750,000) ,and in respect of the Corporate Guarantor, in excess of Two million Dollars ($2,000,000),
 as soon as such action is instituted or it becomes apparent to that Borrower that it is likely to be instituted, unless it is clear
 that the legal or administrative action cannot be considered material in the context of any Finance Document, and that Borrower shall
 procure that all reasonable measures are taken to defend any such legal or administrative action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Consents and licenses</u>: without prejudice to Clauses 6 *(<u>Representations and warranties</u>)* and 7 *(<u>Conditions precedent</u>)*,
 obtain or cause to be obtained, maintain in full force and effect and comply in all material respects with the conditions and restrictions
 (if any) imposed in, or in connection with, every consent, authorisation, license or approval of governmental or public bodies or
 authorities or courts and do or cause to be done, all other acts and things which may from time to time be necessary or desirable
 under applicable law for the continued due performance of all the obligations of the Security Parties under each of the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Use of Loan proceeds</u>: use the Loan exclusively for the purposes specified in Clause 1.1 *(<u>Amount and Purpose</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Pari passu</u>: ensure that its obligations under this Agreement shall, without prejudice to the provisions of this Clause 8.1, at all
 times rank at least pari passu with all its other present and future unsecured and unsubordinated Financial Indebtedness with the
 exception of any obligations which are mandatorily preferred by law and not by contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Financial statements</u>: furnish the Lender or procure that there are sent to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) as
 soon as possible, but in no event later than 180 days after the end of each Financial Year of the Corporate Guarantor, the audited
 annual financial statements of the Corporate Guarantor for that Financial Year (commencing with the financial statements for the
 Financial Year ending on 31 December 2025); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as soon as possible, but in no event later than 180 days after
the end of each Financial Year of each Borrower, the unaudited management financial statements of each Borrower for that Financial Year
(commencing with the financial statements for the Financial Year ending on 31 December falling after the year during which each Borrower
acquired its Vessel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Form of financial statements</u>: all accounts delivered under Clause 8.1(f) *(<u>Financial Statements</u>)* will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) be
 prepared in accordance with all applicable laws, Applicable Accounting Principles consistently applied, and, in the case of any audited
 financial statements, be certified by an Approved Auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fairly
 represent the financial condition of the Corporate Guarantor and, where applicable, the Borrowers at the date of those accounts and
 of their profit for the period to which those accounts relate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) fully
 disclose or provide for all significant liabilities of the Borrowers and the Corporate Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Provision of further information</u>: promptly, when requested, provide the Lender with such financial and other information and accounts relating
 to the business, undertaking, assets, liabilities, revenues, financial condition commitments, operations or affairs of the Borrowers,
 the Corporate Guarantor and other members of the Group and such other further general information relating to each of them, as the
 Lender from time to time may reasonably require, save where any such information is publicly available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Financial Information:</u> provide the Lender from time to time as the Lender may request with information on the financial conditions, cash
 flow position, commitments and operations of the Borrowers including cash flow analysis and voyage accounts of the Vessels with a
 breakdown of income and running expenses showing net trading profit, trade payables and trade receivables, such financial details
 to be certified by an authorized signatory of the Borrowers as to their correctness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Information on the employment of the Vessels</u>: provide the Lender from time to time as the Lender may request with information on the employment
 of each Vessel, as well as on the terms and conditions of any charterparty, contract of affreightment, agreement or related document
 in respect of the employment of each Vessel, such information to be certified by one of the directors of the Borrowers as to their
 correctness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Minimum Liquidity</u>: from the Drawdown Date of the first Advance to be drawn hereunder and thereafter throughout the remainder of the Security
 Period maintain in the Operating Account(s) and/or accounts maintained with the Lender in the name of entities acceptable to the
 Lender semi-annual-average free deposit balances in an amount not less than Dollars Three hundred thousand ($300,000) per Mortgaged
 Vessel for the preceding six-months period, (which for the purpose of this Agreement shall be called herein the  ***"Minimum Liquidity***) first to be tested on the date falling at the end of the first calendar semester after the relevant Drawdown Date
 and semi-annually thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Banking operations</u>: ensure that all banking operations in connection with the Vessels are carried out through the Lending Office of the
 Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Subordination</u>:
 ensure that all Financial Indebtedness of the Borrowers to their respective shareholders or to any of its Related Company (if any)
 is fully subordinated to the rights of the Lender under the Finance Documents, all in a form acceptable to the Lender, and to subordinate
 to the rights of the Lender under the Finance Documents any Financial Indebtedness issued to it by its shareholders, all in a form
 acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Obligations under Finance Documents</u>: duly and punctually perform each of the obligations expressed to be assumed by it under the Finance
 Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Payment on demand</u>: pay to the Lender on demand any sum of money which is due and payable by the Borrowers to the Lender under this Agreement
 but in respect of which it is not specified in any other Clause when it is due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Compliance with Laws and Regulations</u>: comply, or procure compliance with all laws or regulations relating to it and/or its Vessel, its ownership,
 operation and management or to the business of that Borrower and cause this Agreement and the other Finance Documents to comply with
 and satisfy all the requirements and formalities established by the applicable laws to perfect this Agreement and the other Finance
 Documents as valid and enforceable Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Maintenance of Security Interests</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without
 limiting the generality of paragraph (q) above, at its own cost, promptly register, file, record or enrol any Finance Document with
 any court or authority in all Relevant Jurisdictions, pay any stamp, registration or similar tax in all Relevant Jurisdictions in
 respect of any Finance Document, give any notice or take any other step which may be 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Registered Office</u>: maintain its registered office at the address referred to in the Recitals; and will not establish, or do anything as
 a result of which it would be deemed to have, a place of business in the United Kingdom or the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Compliance with Covenants</u>: duly and punctually perform all obligations under this Agreement and the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Information on adverse change or Default</u>: immediately inform the Lender upon becoming aware of any occurrence which might adversely affect
 the ability of any Security Party to perform its obligations under any of the Finance Documents and, without limiting the generality
 of the foregoing, will inform the Lender of any Default forthwith upon becoming aware thereof and will from time to time, if so requested
 by the Lender, confirm to the Lender in writing that, save as otherwise stated in such confirmation, no Default has occurred and
 is continuing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Corporate Guarantor</u>: the Corporate Guarantor shall remain, throughout the Security Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 holding company of shipowning companies and of entities engaged in shipping activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) listed
 in NASDAQ or at any other regulated stock exchange.

**8.2** **Negative undertakings** 

Each of the Borrowers jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and discharge of the Outstanding Indebtedness, <u>without the prior written consent of the Lender</u>, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Negative pledge</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not
 create or permit any Security Interest (other than a Permitted Security Interest) to subsist, arise or be created or extended over
 all or any part of its present or future undertakings, assets, rights or revenues to secure or prefer any present or future Financial
 Indebtedness or other liability or obligation of the Borrowers or any other person other than in the normal course of its business
 of owning, financing, maintaining, repairing, trading and operating vessels and owning or acquiring ship-owning companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not
 cease to hold the legal title to, and own the entire beneficial interest in its Vessel, its Insurances and Earnings, free from all

 Security Interests and the effect of the assignments contained in the relevant General Assignment and any other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No further Financial Indebtedness</u>: not incur any further Financial Indebtedness other than Permitted Financial Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No merger</u>: not merge or consolidate with any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No disposals</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not
 sell, transfer, abandon, lend, lease or otherwise dispose of or cease to exercise direct control over any part (being either alone
 or when aggregated with all other disposals falling to be taken into account pursuant to this Clause 8.2(d) material in the opinion
 of the Lender in relation to the undertakings, assets, rights and revenues of that Borrower) of its present or future undertaking,
 assets, rights or revenues (otherwise than by transfers, sales or disposals for full consideration in the ordinary course of operations
 and trading) whether by one or a series of transactions related or not, save for a sale of its Vessel pursuant to Clause 4.3 *(<u>Mandatory prepayment in case of Total Loss or sale of a Vessel</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not
 transfer, lease or otherwise dispose of any material, in the opinion of the Lender, debt payable to it or any other right (present,
 future or contingent right) to receive a payment, including any right to damages or compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No acquisitions</u>: not acquire any further assets other than its Vessel and rights arising under contracts entered into by or on behalf
 of that Borrower other than in the ordinary course of its business of owning, maintaining, repairing, trading, operating and chartering
 its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No other business</u>: not undertake any type of business other than its current business of owning, financing and operating vessels
 and owning or acquiring ship-owning companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No investments</u>: not make any investments in any person, asset, firm, corporation, joint venture or other entity except for money
 market investments and interest rate caps;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No other obligations</u>: not incur any liability or obligations except liabilities and obligations arising under the Finance Documents
 or contracts entered into in the ordinary course of its business of owning, operating, maintaining, repairing and chartering its
 Vessel or any other Permitted Financial Indebtedness (and for the purposes of this Clause 8.2(h) fees to be paid pursuant to the
 Management Agreements in respect of its Vessel shall be considered as permitted obligations under the Finance Documents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No repayment of borrowings</u>: not repay the principal of, or pay interest on or any other sum in connection with, any of its Financial
 Indebtedness except for Financial Indebtedness pursuant to the Finance Documents and any other Permitted Financial Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Payments</u>: unless otherwise provided in this Agreement and the other Finance Documents (and then only to the extent expressly
 permitted by the same) not pay out any funds (whether out of the Earnings of its Vessel or out of moneys collected under the relevant
 General Assignment and/or the other Finance Documents or not) to any person except in connection with the administration of that
 Borrower and the operation and/or maintenance and/or repair and/or trading of its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No guarantees</u>: not issue any guarantees or indemnities or otherwise become directly or contingently liable for the obligations of
 any person, firm, or corporation except pursuant to the Finance Documents and except for guarantees or indemnities from time to time
 required in the ordinary course of its business or by any protection and indemnity or war risks association with which its Vessel
 is entered, guarantees required to procure the release of its Vessel from any arrest, detention, attachment or levy or guarantees
 or undertakings required for the salvage of its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No loans</u>: not make any loans or advances to, or any investments in any person, firm, corporation, joint venture or other entity
 including (without limitation) any loan or advance or grant any credit (save for normal trade credit in the ordinary course of business)
 to any officer, director, stockholder or employee or any other company managed by the Approved Commercial Manager directly or through
 the Approved Commercial Manager or agree to do so, <u>provided, always, that</u> any loans of its shareholders or member of the Group
 to any Borrower shall be fully subordinated to the Borrowers' obligations under this Agreement and the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No securities</u>: not permit any Financial Indebtedness of the Borrowers (or any of them) to any person (other than the Lender) to
 be guaranteed by any person (save, in the case of a Borrower, for guarantees or indemnities from time to time required in the ordinary
 course of business or by any protection and indemnity or war risks association with which its Vessel is entered, guarantees required
 to procure the release of its Vessel from any arrest, detention, attachment or levy or guarantees or undertakings required for the
 salvage of its Vessel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No dividends or distribution</u>: not declare or pay any dividends or other distribution under any name or description upon any of the
 issued shares or otherwise dispose of any of its present or future assets, undertakings, rights or revenues (which are all assigned
 to the Lender) to any of its shareholders without the prior written consent of the Lender, <u>provided that</u>, if (i) no Event
 of Default has occurred and is continuing and (ii) no Event of Default results from the payment of such dividends or the making of
 any other form of distribution or any redemption, purchase or return of share capital of that Borrower, that Borrower shall be entitled
 to declare or make payments of any dividends without the prior written consent of the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Subsidiaries</u>: not form or acquire any Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No change of business structure</u>: not change the nature, organisation and conduct of its business as owner of its Vessel or carry
 on any business other than the business carried on at the date of this Agreement, and it shall remain a shipping company involved
 in the owning of ships and engaged in shipping activities, all acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No change of legal structure</u>: ensure that none of the documents defining the constitution of each of the Borrowers and the Corporate
 Guarantor shall be materially (in the Lender's opinion) altered without the Lender's prior written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>No Security Interest on assets</u>: other than Permitted Security Interests, not allow any part of its undertaking, property, assets
 or rights, whether present or future, to be mortgaged, charged, pledged, used as a lien or otherwise encumbered without the prior
 written consent of the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>No change of control</u>: ensure that, throughout the Security Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 Borrower remains, directly or indirectly, a fully (100%) owned Subsidiary of the Corporate Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at
 least 25% of the entire issued common shares/stock of the Corporate Guarantor shall be directly or indirectly held by members of
 the Valentis Family; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Mr.
 Valentios Valentis will remain throughout the Security Period Chairman of the Board of Directors or Chief Executive Officer of the
 Corporate Guarantor and the Valentis Family shall have the power to direct or cause the direction of the management and the policies
 of the Corporate Guarantor, whether through the ownership of voting rights, securities, by contract or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there
 has been no change in control directly or indirectly in the ownership, beneficial ownership, or management of any of the Borrowers,
 or any share therein or of the Vessels (or either of them) and (ii) there has been no change in the ultimate beneficial ownership
 of Konkar and Pyxis, as disclosed to the Lender prior to the date of this Agreement, and (iii) 100% of the shares and voting rights
 in the Borrowers remain in the legal and beneficial ownership of the Corporate Guarantor and at least 25% of shares and voting rights
 in the Corporate Guarantor remain in the ultimate legal and beneficial ownership of the Beneficial Shareholders disclosed to the
 Lender prior to the date of this Agreement and (iii) there has been no Material Adverse Change in the financial condition of any
 Security Party which (change) would, in the sole opinion of the Lender, have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>No Master Agreement Derivatives</u>: not enter into any transaction in a derivative of any description whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>No use of Loan</u>: not use the Loan proceeds or any part thereof for the purpose of acquiring shares in the share capital of the Lender
 or other banks and/or financial institutions or acquiring hybrid capital debentures (*τίτλους υβριδικών κεφαλαίων*) of the
 Lender or other banks and/or financial institutions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No US Tax Obligor:</u> procure that, unless otherwise agreed by the Lender, no Security Party shall become a US Tax Obligor.

**8.3** **Undertakings concerning the Vessels** 

Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and discharge of the Outstanding Indebtedness, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conveyance on default</u>: where a Vessel is (or is to be) sold in exercise of any power conferred on the Lender, execute, forthwith upon request
 by the Lender, such form of conveyance of that Vessel as the Lender may require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mortgage</u>:
 it will execute, and procure the registration of the relevant Mortgage over its Vessel under the laws and flag of its Flag State
 immediately upon registration of that Vessel in the ownership of the Owner thereof on her Delivery Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Chartering</u>:
 not let or agree each Vessel to be let:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on
 demise charter for any period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without
 the prior written consent of the Lender which shall not be unreasonably withheld (and then only subject to such conditions as the
 Lender may impose) by any Assignable Charterparty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) without
 the prior written consent of the Lender which shall not be unreasonably withheld (and then only subject to such conditions as the
 Lender may impose) on terms whereby more than two (2) months' hire (or the equivalent) is payable in advance; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) otherwise
 than on bona fide arm's length terms at the time when that Vessel is fixed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) without
 the prior written consent of the Lender which shall not be unreasonably withheld (and then only subject to such conditions as the
 Lender may impose) under any pooling or sharing agreement in respect thereof on terms whereby any and all the Earnings of any Vessel
 are pooled or shared with any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Laid-up</u>:
 not de-activate or lay up its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No amendment to Assignable Charterparty</u>: not without the prior written consent of the Lender, which shall not be unreasonably withheld,
 waive or fail to enforce, any Assignable Charterparty to which it is a party or any of its provisions, and will promptly notify the
 Lender of any material, in the opinion of the Lender, amendment or supplement to any Assignable Charterparty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Approved Manager</u>: not without the prior written consent of the Lender which shall not be unreasonably withheld agree or appoint a manager
 of its Vessel other than the Approved Managers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Ownership/Management/Control</u>:
 ensure that each Vessel will be registered on her Delivery Date in the ownership of the Owner thereof under the laws of the relevant
 Flag State and thereafter ensure that that Vessel will maintain her registration, ownership, management, control and beneficial ownership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Class</u>:
 ensure that each Vessel will remain in class free of overdue recommendations and provide the Lender on demand with copies of all
 class and trading certificates of that Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Insurances</u>:
 ensure that all Insurances (as defined in the relevant Mortgage/General Assignment) of each Vessel is maintained and comply with
 all insurance requirements specified in this Agreement and in the relevant Mortgage and in case of failure to maintain each Vessel
 so insured, authorise the Lender (and such authorisation is hereby expressly given to the Lender) to have the right but not the obligation
 to effect such Insurances on behalf of the Owner thereof (and in case that a Vessel remains in port for an extended period) to effect
 port risks insurances at the cost of the Borrowers which, if paid by the Lender, shall be Expenses; the Lender shall be entitled
 to obtain whenever it deems necessary at Borrowers' expense an opinion from insurance consultants (appointed by the Lender
 at the Borrowers' expense) as to the adequacy of the insurances effected or to be effected in respect of each Vessel; <u>Security Interests</u>: not without the prior written consent of the Lender agree that a Vessel or any share therein to be sold or otherwise
 disposed of or to create or agree to create or permit to subsist any Security Interest over that Vessel (or any share or interest
 therein) other than Permitted Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Not imperil Flag, Ownership, Insurances</u>: ensure that each Vessel is maintained and trades in conformity with the laws of the relevant
 Flag State or of its owning company, the requirements of the Insurances and nothing is done or permitted to be done which could endanger
 the flag of that Vessel or its unencumbered (other than Security Interests in favour of the Lender and Permitted Security Interests) ownership or its Insurances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Mortgage Covenants</u>: ensure that that each Owner always comply with all the covenants provided for in the Mortgage registered over its
 Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No assignment of Earnings</u>: ensure that neither of the Owners will assign or agree to assign otherwise than to the Lender the Earnings
 of its Vessel or any part thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No sharing of Earnings</u>: ensure that neither of the Owners:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will
 enter into any agreement or arrangement for the sharing of any Earnings of its Vessel (subject always to the provisions of Clause
 8.3(c)(v) hereinabove); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) will
 enter into any agreement or arrangement for the postponement of any date on which any Earnings of its Vessel are due or the reduction
 of the amount of any Earnings of its Vessel or otherwise for the release or adverse alteration of any right of that Owner to any
 Earnings of its Vessel; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will
 enter into any agreement or arrangement for the release of, or adverse alteration to, any guarantee or Security Interest relating
 to any Earnings of its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Assignable Charterparty</u>: ensure and procure that in the event of its Vessel being employed under an Assignable Charterparty:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) execute
 and deliver to the Lender within fifteen (15) days of signing thereof a specific assignment of all its rights, title and interest
 in and to such charter and any charter guarantee in the form of a Charterparty Assignment and a notice of such assignment addressed
 to the relevant charterer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) ensure
 (on a best effort basis) that the relevant charterer and any charter guarantor agree to acknowledge to the Lender the specific assignment
 of such charter and charter guarantee by executing an acknowledgement substantially in the form included in the relevant Charterparty
 Assignment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in
 the case where such charter is a demise charter, procure that such demise charter includes provisions that the relevant charterer
 shall (1) comply with all of the Borrowers' undertakings with regard to the employment, insurances, operation, repairs and
 maintenance of its Vessel contained in this Agreement, the relevant Mortgage and the relevant General Assignment and (2) provide *(inter alia)* an assignment of its interest in the insurances of the relevant Vessel in the form of a tripartite agreement
 in form and substance acceptable to the Lender, to be made between the Lender, that Borrower and that charterer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No freight derivatives</u>: not enter into or agree to enter into any freight derivatives or any other instruments which have the effect
 of hedging forward exposures to freight derivatives without the Lender's consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Vessel's inspection:</u> permit the Lender by surveyors or other persons appointed by it on its behalf to board its Vessel at all reasonable
 times (but in any event without interfering with the ordinary trading of its Vessel), for the purpose of inspecting her condition
 or for the purpose of satisfying itself with regard to proposed or executed repairs and to afford all proper facilities for such
 inspections and (ii) at any time by financial or insurance advisors or other persons appointed by the Lender to review the operating
 and insurance records of its Vessel and the Owner thereof and the costs (as supported by vouchers) of any and all such inspections
 shall be borne by the Borrowers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Trading</u>:
 use its Vessel only for civil merchant trading <u>;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Compliance with ISM Code</u>: procure that as of the Delivery Date of its Vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 Approved Technical Manager and any Operator will comply with and ensure that its Vessel and any Operator complies with the requirements
 of the ISM Code, including (but not limited to) the maintenance and renewal of valid certificates pursuant thereto throughout the
 Security Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately
 inform the Lender if there is any threatened or actual withdrawal of any Owner, the relevant Approved Technical Manager's or
 an Operator's DOC or the SMC in respect of each Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly
 inform the Lender upon the issue to the relevant Owner, the relevant Approved Technical Manager or any Operator of a DOC and to a
 Vessel of an SMC or the receipt by any Owner, the relevant Approved Technical Manager or any Operator of notification that its application
 for the same has been realised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Compliance with ISPS Code</u>: procure that, as of the Delivery Date of its Vessel, each Approved Technical Manager or any Operator will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) maintain
 at all times a valid and current ISSC in respect of its Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately
 notify the Lender in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC in respect
 of its Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) procure
 that its Vessel will comply at all times with the ISPS Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Maintenance of legal and beneficial interest in the Vessels</u>: as of the Delivery Date of its Vessel, hold the legal title to, and own the
 entire beneficial interest in its Vessel, its Insurances and Earnings, free from all Security Interests and other interests and rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Compliance with Environmental Laws</u>: as of the Delivery Date of each Vessel, comply with, and procure that all Environmental Affiliates of
 any Relevant Party comply with, all Environmental Laws including without limitation, requirements relating to manning and establishment
 of financial responsibility and to obtain and comply with, and procure that all Environmental Affiliates of such Relevant Party obtain
 and comply with, all Environmental Approvals and to notify the Lender forthwith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of
 any Environmental Claim for an amount or amounts exceeding Seven hundred Fifty thousand Dollars ($750,000) made against any of the
 Vessels, any Relevant Ship and/or their respective Owners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon
 becoming aware of any incident which may give rise to an Environmental Claim for an amount or amounts exceeding Seven hundred Fifty
 thousand Dollars ($750,000) and to keep the Lender advised in writing of the relevant Owner's response to such Environmental
 Claim on such regular basis and in such detail as the Lender shall require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>War Risk Insurance cover</u>: as of the Delivery Date of its Vessel, in the event of hostilities in any part of the world (whether war
 is declared or not), it will not cause or permit its Vessel to enter or trade to any zone which is declared a war zone by any government
 or by its Vessel's war risks insurers unless the prior written consent of the Lender has been given and the relevant Owner
 has (at its expense) effected any special, additional or modified insurance cover which the Lender may approve or require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Fuel Oil and Consumption Data</u>: each Borrower undertakes, upon the request of the Lender and at the cost of the Borrower, on or before
 31<sup>st</sup> July in each calendar year (after the calendar year during which each Vessel has been purchased by a Borrower), to
 supply or procure the supply by the relevant Classification Society (as specified by the Lender) to the Lender of, all ship fuel
 oil consumption data required to be collected and reported in accordance with Regulation 22A and 27 of Annex VI and any Statement
 of Compliance, together with a Carbon Intensity and Climate Alignment Certificate (if the same becomes mandatory), in each case relating
 to the Vessel for the preceding calendar year, for the purposes of calculating the Lender's portfolio climate score.

For the purposes of this Sub-Clause (w) *(<u>Fuel Oil and Consumption Data</u>)* of Clause 8.3 *(<u>Undertakings concerning the Vessel</u>)*:

*"**Annex VI**"* means Annex VI of the Protocol of 1997 (as subsequently amended from time to time) to amend the International Convention for the Prevention of Pollution from Ships 1973 ("MARPOL"), as modified by the Protocol of 1978 relating thereto.

*"**Carbon Intensity and Climate Alignment Certificate**"* means a certificate from a Recognised Organisation relating to a Vessel and a calendar year setting out:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 average efficiency ratio of such Vessel for all voyages performed by it over that calendar year using ship fuel oil consumption data
 required to be collected and reported in accordance with Regulation [22A] [27] of Annex VI in respect of that calendar year; and

(b) the
 climate alignment of that Vessel for such calendar year:

*"**Recognised Organisation**"* means an organisation which is likely to be the Classification Society representing a Vessel's flag state and, for the purposes of this Sub-Clause (z) *(<u>Fuel Oil and Consumption Data</u>)* of Clause 8.3 *(<u>Undertakings concerning the Vessel</u>)*, duly authorised to determine whether the Borrower has complied with regulation [22A] [27] of Annex VI.

*"**Statement of Compliance**"* means a Statement of Compliance related to fuel oil consumption pursuant to regulations 6.6 and 6.7 of Annex VI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Russian oil price cap</u>: in respect of a Vessel that is a tanker, to be in compliance with the price cap framework ("  ***Price Cap***") regarding Russian Federation-origin crude oil and petroleum products, as evidenced by the relevant certificate
 of origin ("  ***Russian oil***") and any other restrictions applicable to either Borrower and its business related
 to Russian oil, including, but not limited to, the prohibition to import seaborne Russian Oil to the U.S., EU or the UK and if the
 Owner of that Vessel deals with Russian oil, or provides services to third parties who deal with Russian oil, the Borrowers undertake
 that, without prejudice to any other obligations of the Borrowers under any Sanctions, the Owner of that Vessel shall obtain from
 such third-parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 attestation (in a form conforming with the Price Cap requirements) that the Russian oil purchased at or below the Price Cap;

or (if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an
 attestation (in a form conforming with the Price Cap requirements) that the purchase of Russian Oil is done pursuant to a valid license
 or a derogation,

and for the purpose of this clause the following Attestation Model recommended by the European Union in its Guidance Note on EU Regulation 833/2014 as of 2 August 2023 shall be deemed to be in a form conforming with the Price Cap requirements (or any subsequent model recommended by the relevant European Union authorities):

**"Attestation Model**

［Date, Month, Year］

[Party to the contract/service] confirms that for [the service being provided], [party to the contract/service] is in compliance with the Russian price cap framework and any other restrictions on seaborne Russian oil and/or petroleum products applicable to [party to the contract/service]. [Party to the contract/service] attests that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [party
 to the contract/service] has received and retained price information demonstrating that the seaborne Russian oil or petroleum products
 is/was purchased at or below the cap; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where
 not practicable to request and receive such information, [party to the contract/service] has obtained an attestation that the purchase
 of seaborne Russian oil or petroleum products is/was purchased at or below the cap; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [party
 to the contract/service] has received a signed attestation that the purchase of seaborne Russian oil or petroleum products falls
 under a derogation.

[Signature of the Customer]".

**8.4** **Validity of Securities - Earnings - Taxes etc.** 

Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and discharge of the Outstanding Indebtedness, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Validity</u>:
 ensure and procure that all governmental or other consents required by law and/or any other steps required for the validity, enforceability
 and legality of this Agreement and the other Finance Documents are maintained in full force and effect and/or appropriately taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Earnings</u>:
 ensure and procure that, unless and until directed by the Lender otherwise (i) all the Earnings of its Vessel shall be paid to its
 Operating Account and (ii) the persons from whom the Earnings are from time to time due are irrevocably instructed to pay them to
 its Operating Account or to such account in the name of that Borrower as shall be from time to time determined by the Lender in accordance
 with the provisions hereof and of the relevant Security Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Taxes</u>:
 pay all Taxes, assessments and other governmental charges imposed on that Borrower when the same fall due, except to the extent that
 the same are being contested in good faith by appropriate proceedings and adequate reserves have been set aside for their payment
 if such proceedings fail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Additional Documents</u>: from time to time at the request of the Lender, execute and deliver to the Lender or procure the execution and delivery
 to the Lender of all such documents as shall be deemed desirable at the reasonable discretion of the Lender for giving full effect
 to this Agreement, and for perfecting, protecting the value of or enforcing any rights or securities granted to the Lender under
 any one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto and in
 case that any conditions precedent (with the Lender's consent) have not been fulfilled prior to the relevant Drawdown Date,
 such conditions shall be complied with within ten (10) Business Days after the Lender's written request (unless the Lender
 agrees otherwise in writing) and failure to comply with this covenant shall be an Event of Default.

**8.5** **Secured Value to Security Requirement ratio - Valuation of the Vessels** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Security shortfall - Additional Security</u>: If on any Testing Date during the Security Period, the Security Value shall be less than the
 Security Requirement, the Lender may give notice to the Borrowers requiring that such deficiency be remedied and then the Borrowers
 shall (unless the sole cause of such deficiency is the Total Loss of the relevant Vessel and the Owner thereof is in full compliance
 with its obligations in relation to such Total Loss) either, at their option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepay
 (in accordance with Clause 4.2 *(<u>Voluntary prepayment</u>)* (but without regard to the requirement for ten (10) days'
 notice within a period of thirty (30) days of the date of receipt by the Borrowers of the Lender's said notice such sum in
 Dollars as will result in the Security Requirement after such prepayment (taking into account any other repayment of the Loan made
 between the date of the notice and the date of such prepayment) being at least equal to the Security Value; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) within
 thirty (30) days of the date of receipt by the Borrowers of the Lender's said notice constitute to the satisfaction of the
 Lender such further security for the Loan as shall be acceptable to the Lender having a value for security purposes (as determined
 by the Lender in its absolute discretion) at the date upon which such further security shall be constituted which, when added to
 the Security Value, shall not be less than the Security Requirement as at such date. Such additional security shall be constituted
 by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) pledged
 cash deposits in favor of the Lender in an amount equal to such shortfall with the Lender and in an account and manner to be determined
 by the Lender; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any
 other security acceptable to the Lender at its absolute discretion to be provided in a manner determined by the Lender.

Any such additional security provided to the Lender shall be promptly released by the Lender once the Security Requirement ratio has been restored. The provisions of Clauses 4.2 *(<u>Voluntary prepayment</u>)* and 4.5 *(<u>Amounts payable on prepayment)</u>* shall apply to prepayments under Clause 8.5(a)(i).

For the purposes of this Clause 8.5 each Vessel shall be valued (in accordance with the provisions of sub-paragraph (b) hereinbelow) not earlier than 20 days prior to the relevant Drawdown Date and thereafter not more than twice a year (unless an Event of Default has occurred that is continuing, in which case the Lender will be entitled to obtain a valuation of each Vessel at any time that the Lender may require) and "***Testing Date***" shall mean the date of each such valuation.

<u>Valuation of Vessels</u>: Each of the Vessels shall, for the purposes of this Clause 8.5, be valued in Dollars by an Approved Shipbroker appointed by the Lender, (such valuations to be addressed to the Lender and made without, unless required by the Lender, physical inspection, and on the basis of a sale for prompt delivery for cash at arm's length on normal commercial terms as between a willing buyer and a willing seller, without taking into account the benefit of any Assignable Charterparty or other engagement concerning the relevant Vessel. The Lender and the Borrowers agree to accept such valuation made by the Approved Shipbrokers appointed as aforesaid as conclusive evidence of the Market Value of the relevant Vessel at the date of such valuation and such valuation shall constitute the Market Value of the relevant Vessel for the purposes of this Clause 8.5.

The value of the Vessels determined in accordance with the provisions of this Clause 8.5 shall be binding upon the Borrowers and the Lender until such time as any further such valuations shall be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Information</u>:
 The Borrowers undertake to the Lender to provide the Lender and any such Approved Shipbroker such information concerning each Vessel
 and its condition as such Approved Shipbroker may reasonably require for the purpose of making any such valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Costs</u>:
 All costs in connection with the Lender obtaining any valuation of each Vessel referred to in Clause 8.5(a) *(<u>Security shortfall - Additional Security</u>)*, and any valuation of any additional security for the purposes of ascertaining the Security Value
 at any time or necessitated by the Borrowers electing to constitute additional security pursuant to Clause 8.5(a)(ii) and all legal
 and other expenses incurred by the Lender in connection with any matter arising out of this Clause 8.5 shall be borne by the Borrowers, <u>provided that</u> the cost of the valuation of the Vessels shall only be borne by the Borrowers twice per year, except in the
 following cases: (i) an Event of Default has occurred and is continuing (ii) prior to each Drawdown Dated for the purpose of the
 Lender determining the amount of the relevant Advance and (iii) in the case of Clause 4.3(b) *(<u>Sale of or refinancing of a Mortgaged Vessel</u>)*, in which cases the cost of such valuations of the Vessels shall only be borne by the Borrowers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Valuation of additional security</u>: For the purpose of this Clause 8.5, the market value of any additional security provided or to be provided
 to the Lender shall be determined by the Lender in its absolute discretion without any necessity for the Lender assigning any reason
 thereto and if such security consists of a vessel shall be that shown by a valuation complying with the requirements of Clause 8.5(b) *(<u>Valuation of Vessels</u>)* (whereas the costs shall be borne by the Borrowers in accordance with Clause 8.5(d) *(<u>Costs</u>)*)
 or if the additional security is in the form of a cash deposit full credit shall be given for such cash deposit on a Dollar for Dollar
 basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Documents and evidence</u>: In connection with any additional security provided in accordance with this Clause 8.5, the Lender shall be entitled
 to receive such evidence and documents of the kind referred to in Clause 7.1 *(<u>Conditions precedent to the execution of this Agreement</u>)* as may in the Lender's opinion be appropriate and such favourable legal opinions as the Lender shall in
 its absolute discretion require.

**8.6** **Sanctions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without
 limiting Clause 8.7 *(<u>Compliance with laws etc.</u>)*, each of the Borrowers hereby undertakes with the Lender that, from
 the date of this Agreement and until the date that the Outstanding Indebtedness is paid in full, it shall ensure that neither Vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will
 be used by or for the benefit of a Sanctions Restricted Person contrary to Sanctions; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) will
 be used in trading in any Sanctions Restricted Jurisdiction which would result in violation of any Sanctions or in any manner contrary
 to Sanctions; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) will
 be traded in any manner which would trigger the operation of any sanctions limitation or exclusion clause (or similar) in the Insurances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not
 directly or to its knowledge (after reasonable enquiry) indirectly use or permit to be used all or any part of the proceeds of the
 Loan, or lend, contribute or otherwise make available such proceeds directly or to its knowledge (after reasonable enquiry) indirectly,
 to any person or entity (i) to finance or facilitate any activity or transaction of or with any Sanctions Restricted Person contrary
 to Sanctions or in any Sanctions Restricted Jurisdiction, or (ii) in any other manner that would result in a violation of any Sanctions
 by any Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall
 not fund all or part of any payment under the Loan out of proceeds derived directly or to its knowledge (after reasonable enquiry)
 indirectly from any activity or transaction with a Sanctions Restricted Person contrary to Sanctions or in a Sanctions Restricted
 Jurisdiction in violation of any Sanctions or which would otherwise cause any Party to be in breach of any Sanctions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) procure
 that no proceeds to its knowledge (after reasonable enquiry) from activities or business with a Sanctions Restricted Person contrary
 to Sanctions or in a Sanctions Restricted Jurisdiction in violation of any Sanctions are credited to the relevant Operating Account.

**8.7** **Compliance with laws etc.** 

Each of the Borrowers shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) comply,
 or procure compliance with all laws or regulations by the relevant Security Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) relating
 to its respective business generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) relating
 to its Vessel, its ownership, employment, operation, management and registration including, but not limited to, the ISM Code, the
 ISPS Code, all Environmental Laws and the laws of the relevant Flag State; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obtain,
 comply with and do all that is necessary to maintain in full force and effect any Environmental Approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) without
 limiting paragraph (a) above, not employ its Vessel nor allow its employment, operation or management in any manner contrary to any
 law or regulation including, but not limited to, the ISM Code, the ISPS Code and all Environmental Laws and Sanctions which has or
 is likely to have a Material Adverse Effect on any of the Security Parties.

**8.8** **Know your customer and money laundering compliance** 

Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and discharge of the Outstanding Indebtedness, it will provide the Lender, or procure the provision of, such documentation and other evidence as the Lender shall from time to time require, based on applicable law and regulations from time to time and the Lender's own internal guidelines from time to time to identify each of the Borrowers and the other Security Parties, including the disclosure in writing of the ultimate legal and beneficial owner or owners of such entities, and any other persons involved or affected by the transaction(s) contemplated by this Agreement in order for the 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.

**9.** **EVENTS OF DEFAULT** 

**9.1** Events

There shall be an Event of Default if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-payment</u>:
 any Security Party fails to pay any sum payable by it under any of the Finance Documents at the time, in the currency and in the
 manner stipulated in the Finance Documents (and so that, for this purpose, sums payable on demand shall be treated as having been
 paid at the stipulated time if paid within five (5) Business Days of demand and other sums due shall be treated as having been paid
 at the stipulated time if paid within three (3) Business Days of its falling due); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Breach of Insurance and certain other obligations</u>: any of the Borrowers fails to obtain and/or maintain the Insurances (as defined in,
 and in accordance with the requirements of, the Finance Documents) or if any insurer in respect of such Insurances cancels the Insurances
 or disclaims liability by reason, in either case, of mis-statement in any proposal for the Insurances or for any other failure or
 default on the part of the Borrowers in relation to the Insurances; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of other obligations</u>: any Security Party commits any breach of or omits to observe any of its obligations or undertakings expressed
 to be assumed by it under Clause 8 *(<u>Undertakings</u>)* or under any of the Finance Documents (other than those referred
 to in Clauses 9.1(a) *(<u>Non-payment</u>)* and 9.1(b) *(<u>Breach of Insurance and certain other obligations</u>)* above)
 and, in respect of any such breach or omission which in the opinion of the Lender is capable of remedy, such action as the Lender
 may require shall not have been taken within thirty (30) days of the Lender notifying in writing the relevant Security Party of such
 default and of such required action; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Misrepresentation</u>:
 any representation or warranty made or deemed to be made or repeated by or in respect of any Security Party in or pursuant to any
 of the Finance Documents or in any notice, certificate or statement referred to in or delivered under any of the Finance Documents
 is or proves to have been incorrect or misleading in any material respect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Cross Default:</u> any Financial Indebtedness of the Borrowers or the Corporate Guarantor relating to an amount over (in the case of any
 Borrower) Seven hundred fifty thousand Dollars ($750,000) and in the case of the Corporate Guarantor exceeding Two million Dollars
 ($2,000,000) is (i) not paid when due (unless contested in good faith) (ii) becomes (whether by declaration or automatically in accordance
 with the relevant agreement or instrument constituting the same) due and payable prior to the date when it would otherwise have become
 due (unless as a result of the exercise by the Borrowers or the Corporate Guarantor (as the case may be) of a voluntary right of
 prepayment), or (iii) the lender of any of the Borrowers and the Corporate Guarantor declares any such Financial Indebtedness, relating
 to an amount over (in the case of any Borrower) Seven hundred fifty thousand Dollars ($750,000) and in the case of the Corporate
 Guarantor over Two million Dollars ($2,000,000), due and payable or any facility or commitment available to any of the Borrowers
 and the Corporate Guarantor relating to such Financial Indebtedness relating to an amount over (in the case of any Borrower) Seven
 hundred fifty thousand Dollars ($750,000) and in the case of the Corporate Guarantor Two million Dollars ($2,000,000) is withdrawn,
 suspended or cancelled by reason of any default (however described) of the person concerned unless the Borrowers or the Corporate
 Guarantor (as the case may be) shall have satisfied the Lender that such withdrawal, suspension or cancellation will not affect or
 prejudice in any way that Borrower's or the Corporate Guarantor's (as the case may be) ability to pay its debts as they
 fall due, or any guarantee given by the Borrowers or the Corporate Guarantor in respect of Financial Indebtedness relating to an
 amount over (in the case of any Borrower) Seven hundred fifty thousand Dollars ($750,000) and in the case of the Corporate Guarantor
 Two million Dollars ($2,000,000) is not honoured when due and called upon; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Legal process</u>: any judgment or order made or commenced in good faith by a person against any of the Borrowers and the Corporate Guarantor,
 relating to an amount over (in the case of any Borrower) Seven hundred fifty thousand Dollars ($750,000) and in the case of the Corporate
 Guarantor over Two million Dollars ($2,000,000), is not stayed or complied with within sixty (60) days or a good faith creditor attaches
 or takes possession of, or a distress, execution, sequestration or other *bonafide* process is levied or enforced upon or sued
 out against, any of the undertakings, assets, rights or revenues of any of the Borrowers and the Corporate Guarantor and is not discharged,
 or bail is lodged in respect thereof, within sixty (60) days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insolvency</u>:
 any Security Party becomes insolvent or stops or suspends making payments (whether of principal or interest) with respect to all
 or any class of its debts or announces an intention to do so; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reduction or loss of capital</u>: a meeting is convened by any of the Borrowers for the purpose of passing any resolution to purchase, reduce
 or redeem any of its share capital; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Winding up</u>: any petition is presented or other step is taken for the purpose of winding up any of the Borrowers and the Corporate Guarantor
 or an order is made or resolution passed for the winding up of any Security Party or a notice is issued convening a meeting for the
 purpose of passing any such resolution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Administration</u>:
 any *bonafide* petition is presented or other step is taken for the purpose of the appointment of an administrator of any corporate
 Security Party or an administration order is made in relation to any corporate Security Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Appointment of receivers and managers</u>: any administrative or other receiver is appointed of any Security Party or any material, in the opinion
 of the Lender, part of its assets and/or undertaking or any other steps are taken to enforce any Security Interest over all or any
 material, in the opinion of the Lender, part of the assets of any such Security Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Compositions</u>:
 any steps are taken, or negotiations commenced, by any corporate Security Party or by any of its creditors with a view to the general
 readjustment or rescheduling of all or a material, in the opinion of the Lender, part of its indebtedness or to proposing any kind
 of composition, compromise or arrangement involving such company and any of its creditors <u>provided, however, that</u> if the Borrowers
 are able to provide such evidence as is satisfactory in all respects to the Lender that such rescheduling will not relate to any
 payment default or anticipated default the same shall not constitute an Event of Default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Analogous proceedings</u>: there occurs, in relation to any Security Party, in any country or territory in which any of them carries on business
 or to the jurisdiction of whose courts any part of their assets is subject, any event which, in that country or territory corresponds
 with, or have an effect equivalent or similar to, any of those mentioned in Clauses 9.1(g) *(<u>Insolvency</u>)* to (l) *(<u>Compositions</u>)* (inclusive) or any of the Borrowers and the Corporate Guarantor otherwise becomes subject, in any such country or territory,
 to the operation of any law relating to insolvency, bankruptcy or liquidation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Cessation of business</u>: any corporate Security Party suspends or ceases to carry on its business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Seizure</u>:
 all or a material part of the undertaking, assets, rights or revenues of, or shares or other ownership interests in, any Security
 Party are seized, nationalised, expropriated or compulsorily acquired by or under the authority of any government or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Consents:</u> any consent, authorisation, licence or approval of, or registration with or declaration to, governmental or public bodies or authorities
 or courts required by any Security Party to authorise or otherwise in connection with, the execution, delivery, validity, enforceability
 or admissibility in evidence of this Agreement and/or any of the other Security Documents or the performance by the Security Parties
 of their respective obligations under this Agreement and/or any of the other Finance Documents is modified in a manner unacceptable
 to the Lender or is not granted or is revoked or terminated or expires and is not renewed or otherwise ceases to be in full force
 and effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Invalidity</u>:
 any of the Finance Documents shall at any time and for any reason become invalid or unenforceable or otherwise cease to remain in
 full force and effect ,or if the validity or enforceability of any of the Finance Documents shall at any time and for any reason
 be contested by any Security Party which is a party thereto, or if any such Security Party shall deny that it has any, or any further,
 liability thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Unlawfulness</u>:
 it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the covenants and obligations expressed to
 be assumed by it in any of the Finance Documents or for the Lender to exercise the rights or any of them vested in it under any of
 the Finance Documents or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Repudiation</u>:
 any Security Party repudiates any of the Finance Documents or does or causes or permits to be done any act or thing evidencing an
 intention to repudiate any of the Finance Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Security Interests enforceable</u>: any Security Interest (other than Permitted Security Interest) in respect of any of the property (or in
 a material, in the opinion of the Lender, part thereof) which is the subject of any of the Finance Documents becomes enforceable;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Arrest</u>:
 any Vessel is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained in exercise or purported exercise
 of any possessory lien or other claim or otherwise taken from the possession of the Borrowers (otherwise than due to an event falling
 within the definition of Total Loss) and the Borrowers shall fail to procure the release of that Vessel within a period of sixty
 (60) days thereafter; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Registration</u>:
 the registration of any Vessel under the laws and flag of the relevant Flag State is cancelled or terminated without the prior written
 consent of the Lender; if that Vessel is only provisionally registered on the relevant Delivery Date and is not permanently registered
 under the laws and flag of the relevant Flag State at least thirty (30) days prior to the deadline for completing such permanent
 registration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Unrest</u>:
 the Flag State of any Vessel becomes involved in hostilities or civil war or there is a seizure of power in that Flag State by unconstitutional
 means if, in any such case, (a) such event would in the opinion of the Lender be expected to have a Material Adverse Effect on the
 security constituted by any of the Finance Documents and (b) the relevant Borrower has failed within thirty (30) days from receiving
 notice from the Lender to this effect (which notice shall have been sent following consultation with the Borrowers) to (i) delete
 that Vessel from its Flag State and (ii) re-register that Vessel under another Flag State approved by the Lender in its sole discretion
 through a relevant Registry, in each case, at the Borrowers' cost and expense; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Approved Manager</u>: there occurs, in relation to an Approved Manager any of the events mentioned in Clauses 9.1(g) *(<u>Insolvency</u>)* to (n) *(<u>Cessation of business</u>)* (inclusive) and the relevant Borrower fails to appoint a new Approved Manager of its
 Vessel acceptable to the Lender within ten (10) days of becoming aware of the occurrence of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Environment</u>:
 any of the Borrowers or any Approved Manager fails to comply with any Environmental Law or any Environmental Approval or any Vessel
 is involved in any incident which gives rise or which may give rise to any Environmental Claim, if in any such case, such non-compliance
 or incident or the consequences thereof would (in the reasonable opinion of the Lender) have a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>P&I</u>:
 any of the Borrowers or any Approved Manager fails or omits to comply with any requirements of the protection and indemnity association
 or other insurer with which the relevant Vessel is entered for insurance or insured against protection and indemnity risks (including
 oil pollution risks) to the effect that any cover in relation to that Vessel (including without limitation, liability for Environmental
 Claims arising in jurisdictions where that Vessel operates or trades) is or may be liable to cancellation, qualification or exclusion
 at any time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Shareholding-Change of control</u>: there is a breach of sub-Clause 8.2(s) *(<u>No change of control</u>)* without the prior written consent of
 the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Change of Management</u>: any Vessel ceases to be managed by an Approved Commercial Manager or, as the case may be, an Approved Technical
 Manager (for any reason other than the reason of a Total Loss or sale of that Vessel) without the approval of the Lender, which shall
 not be unreasonably withheld, and the Borrowers fail to appoint another Approved Commercial Manager or, as the case may be, another
 Approved Technical Manager prior to the termination of the mandate with the previous relevant Approved Manager; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Deviation of Earnings</u>: any Earnings of a Vessel are not paid to the relevant Operating Account for any reason whatsoever (other than with
 the Lender's prior written consent); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>ISM Code and ISPS Code</u>: (without prejudice to the generality of Clause 9.1(c) *(<u>Breach of other obligations</u>)*) for any
 reason whatsoever the provisions of Clause 8.3(s) *(<u>Compliance with ISM Code</u>)* and Clause 8.3(t) *(<u>Compliance with ISPS Code</u>)* are not complied with and the relevant Vessel ceases to comply with the ISM Code or, as the case may be, the ISPS
 Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Operating Accounts</u>: any moneys are withdrawn from the Operating Accounts (or any of them) other than in accordance with Clauses 8.4(b) *(<u>Earnings</u>)* and 13 *(<u>Operating Accounts</u>)*; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Sanctions:</u> (without prejudice to the generality of sub-Clause 9.1(c)) for any reason whatsoever the provisions of Clause 8.6 *(<u>Sanctions</u>)* and Clause 8.7 *(<u>Compliance with laws etc.</u>)* are not complied with; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Material Adverse Change:</u> there occurs, in the reasonable opinion of the Lender, a Material Adverse Change in the financial condition of
 any of the Borrowers and the Corporate Guarantor, as described by the Borrowers or the Corporate Guarantor to the Lender in the negotiation
 of this Agreement, which materially impairs the ability of the Borrowers and the Corporate Guarantor (or any of them) to perform
 their respective obligations under this Agreement and the Finance Documents to which is or is to be a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>Finance Documents</u>: any other event of default (as howsoever described or defined therein) occurs under the Finance Documents (or any
 of them).

**9.2** **Consequences of Default – Acceleration** 

The Lender may without prejudice to any other rights of the Lender (which will continue to be in force concurrently with the following), at any time after the happening of an Event of Default which is continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by
 notice to the Borrowers declare that the obligation of the Lender to make the Commitment (or any part thereof) available shall b <u>e terminated, w</u> hereupon the Commitment shall be reduced to zero forthwith; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 notice to the Borrowers declare that the Loan and all interest accrued and all other sums payable under the Finance Documents have
 become due and payable, whereupon the same shall, immediately or in accordance with the terms of such notice, become due and payable
 without any further diligence, presentment, demand of payment, protest or notice or any other procedure from the Lender which are
 expressly waived by the Borrowers; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) put
 into force and exercise all or any of the rights, powers and remedies possessed by the Lender under this Agreement and/or under any
 other Finance Document and/or as mortgagee of each Vessel, mortgagee, chargee or assignee or as the beneficiary of any other property
 right or any other securit **y** (as the case may be) of the assets charged or assigned to it under the Finance Documents or otherwise
 (whether at law, by virtue of any of the Finance Documents or otherwise);

**9.3** **Multiple notices; action without notice** 

The Lender may serve notices under sub-Clauses (a) and (b) of Clause 9.2 *(<u>Consequences of Default – Acceleration</u>)* simultaneously or on different dates and it may take any action referred to in that Clause if no such notice is served or simultaneously with or at any time after service of both or either of such notices, it being understood and agreed that the non-service of a notice in respect of an Event of Default hereunder, or under any of the Finance Documents (whether known to the Lender or not), shall not be construed to mean that the Event of Default shall cease to exist and bring about its lawful consequences.

**9.4** **Demand basis** 

If, pursuant to Clause 9.2(b), the Lender declares the Loan to be due and payable on demand, the Lender may by written notice to the Borrowers (a) call for repayment of the Loan on such date as may be specified whereupon the Loan shall become due and payable on the date so specified together with all interest accrued and all other sums payable under this Agreement or (b) withdraw such declaration with effect from the date specified in such notice.

**9.5** Proof
 of Default

It is agreed that (i) the non-payment of any sum of money in time will be proved conclusively by mere passage of time and (ii) the occurrence of this (non-payment) shall be proved conclusively by a mere written statement of the Lender (save for manifest error).

**9.6** **Exclusion of Lender's liability** 

Neither the Lender nor any receiver or manager appointed by the Lender, shall have any liability to the Borrowers or a Security Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for

 or delay to exercise such a right or to enforce such a Security Interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 the Lender or a receiver or manager from liability for losses shown to have been caused by the wilful misconduct of the Lender's own officers and employees or (as the case may be) such receiver's or manager's own partners or employees.

**10.** **INDEMNITIES - EXPENSES – FEES** 

**10.1** **Miscellaneous indemnities** 

The Borrowers shall on demand (and it is hereby expressly undertaken by the Borrowers to) indemnify the Lender, without prejudice to any of the other rights of the Lender under any of the Finance Documents, against any loss (including in the cases only referred to in sub clauses (a) and (b) of this Clause, loss of the Applicable Margin and in every case, any Break Costs) or expense which the Lender shall certify as sustained or incurred as a consequence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 default in payment by any of the Security Parties of any sum under any of the Finance Documents when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 occurrence of any Event of Default which is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 prepayment of the Loan or part thereof being made under Clause 4.2 *(<u>Voluntary Prepayment</u>)*, Clause 4.3 *(<u>Mandatory Prepayment in case of Total Loss or sale of a Vessel</u>)*, Clause 8.5(a) *(<u>Security shortfall-Additional Security</u>)*,
 Clause 12.1 *(<u>Unlawfulness</u>)* or Clause 12.4 *(<u>Option to prepay</u>)* or any other repayment of the Loan or part
 thereof being made otherwise than on an Interest Payment Date relating to the part of the Loan prepaid or repaid; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Commitment or the relevant part thereof not being advanced for any reason (excluding any default by the Lender and any reason specified
 in Clauses 3.6 *(<u>Market disruption</u>)*, 4.3(a) *(<u>Total Loss of a Mortgaged Vessel</u>)* or 12.1 *(<u>Unlawfulness</u>)* after the relevant Drawdown Notice has been given, including, in any such case, but not limited to, any loss or expense sustained
 or incurred in maintaining or funding the Loan or any part thereof or in liquidating or re-employing deposits from third parties
 acquired to effect or maintain the Loan or any part thereof.

**10.2** **Additional indemnities** 

The Borrowers shall fully indemnify the Lender on its demand, without prejudice to any of its other rights under any of the Finance Documents, in respect of all claims, liabilities, losses or other Expenses which may be made or brought against or sustained or incurred by the Lender, in any country, as a result of or in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Lender or by any receiver
 appointed under a Finance Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) investigating
 any event which the Lender believes constitutes an Event of Default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) acting
 or relying on any notice, request or instruction which the Lender believes to be genuine, correct and appropriately authorised,

other than claims, liabilities, losses or other Expenses, which are shown to have been directly and mainly caused by the willful misconduct of the officers or employees of the Lender.

Without prejudice to its generality, this Clause 10.1 covers 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 and any Sanctions.

**10.3** **Expenses** 

The Borrowers shall (and it is hereby expressly undertaken by the Borrowers to) pay to the Lender on demand:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial and Amendment expenses</u>: all documented expenses (including reasonable legal, printing and out-of-pocket expenses) incurred by
 the Lender in connection with the negotiation, preparation and execution of this Agreement and the other Finance Documents and of
 any amendment or extension of or the granting of any waiver or consent under this Agreement and/or any of the Finance Documents and/or
 in connection with any proposal by the Borrowers to constitute additional security pursuant to Clause 8.5(a) *(<u>Security shortfall - Additional Security</u>)*, whether any such security shall in fact be constituted or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Enforcement expenses</u>: all expenses (including reasonable legal and out-of-pocket expenses) incurred by the Lender in contemplation of, or
 otherwise in connection with, the enforcement of, or preservation of any rights under, this Agreement and/or any of the other Finance
 Documents, or otherwise in respect of the moneys owing under this Agreement and/or any of the other Finance Documents or the contemplation
 or preparation of the above, whether they have been effected or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Legal costs</u>: the documented legal costs of the Lender's appointed lawyers, in respect of the preparation of this Agreement and
 the other Finance Documents as well as the documented legal costs of the foreign lawyers (if these are available) in respect of the
 registration of the Finance Documents or any search or opinion given to the Lender in respect of the Security Parties or the Vessels
 or the Finance Documents. The said legal costs shall be due and payable on the relevant Drawdown Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other expenses</u>: any and all other Expenses incurred by the Lender.

**10.4** **Value Added Tax** 

All fees and expenses payable pursuant to this Clause 10 shall be paid together with value added tax or any similar tax (if any) properly chargeable thereon. Any value added tax chargeable in respect of any services supplied by the Lender under this Agreement shall, on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid hereunder.

**10.5** **Stamp duty etc.** 

The Borrowers shall pay any and all stamp, registration and similar taxes or charges (including those payable by the Lender) imposed by governmental authorities in relation to this Agreement and any of the other Finance Documents, and shall indemnify the Lender against any and all liabi<u>lities with re</u>spect to, or resulting from delay or omission on the part of the Borrowers to pay such stamp taxes or charges.

**10.6** **Environmental Indemnity** 

The Borrowers shall indemnify the Lender on demand and hold the Lender harmless from and against all costs, expenses, payments, charges, losses, demands, liabilities, actions, proceedings (whether civil or criminal) penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be suffered, incurred or paid by, or made or asserted against the Lender at any time, whether before or after the repayment in full of principal and interest under this Agreement, relating to, or arising directly or indirectly in any manner or for any cause or reason out of an Environmental Claim made or asserted against the Lender if such Environmental Claim would not have been, or been capable of being, made or asserted against the Lender if it had not entered into any of the Finance Documents and/or exercised any of its rights, powers and discretions thereby conferred and/or performed any of its obligations thereunder and/or been involved in any of the transactions contemplated by the Finance Documents.

**10.7** **Currency Indemnity** 

If any sum due from the Borrowers under any of the Finance Documents or any order or judgement given or made in relation hereto has to be converted from the currency (the *"**first currency**"*) in which the same is payable under the relevant Finance Document or under such order or judgement into another currency (the *"**second currency**"*) for the purpose of (i) making or filing a claim or proof against the Borrowers or any other Security Party, as the case may be or (ii) obtaining an order or judgement in any court or other tribunal or (iii) enforcing any order or judgement given or made in relation to any of the Finance Documents, the Borrowers shall (and it is hereby expressly undertaken by the Borrowers to) indemnify and hold harmless the Lender from and against any loss suffered as a result of any difference between (a) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Lender may in the ordinary course of business purchase the first currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgement, claim or proof. The term *"**rate of exchange**"* includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency.

**10.8** **Central Bank or European Central Bank reserve requirements indemnity** 

The Borrowers shall on demand promptly indemnify the Lender against any cost incurred or loss suffered by the Lender as a result of its complying with the minimum reserve requirements of the European Central Bank and/or with respect to maintaining required reserves with the relevant national Central Bank to the extent that such compliance relates to the Commitment or deposits obtained by it to fund the whole or part of the Loan and to the extent such cost or loss is not recoverable by such Lender under Clause 12.2 *(<u>Increased cost</u>)*.

**10.9** **Maintenance of the Indemnities** 

The indemnities contained in this Clause 10 shall apply irrespective of any indulgence granted to the Borrowers or any other party from time to time and shall continue to be in full force and effect notwithstanding any payment in favour of the Lender and any sum due from the Borrowers under this Clause 10 will be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under any one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto.

**10.10** **MII and MAPI costs** 

The Borrowers shall reimburse the Lender on demand for any and all costs incurred by the Lender (as conclusively certified by the Lender) in effecting and keeping effected (a) a Mortgagee's Interest Insurance (herein ***"MII"***) and (b) if requested by the Lender but always when any of the Vessels is a tanker, a Mortgagee's Interest Additional Perils (Pollution) Insurance policy for such Vessel (herein *"**MAPI**"*), each of which the Lender may at any time effect for an aggregate (in respect of both Vessels) amount equal to **110**% of the Loan and on such terms and with such insurers as shall from time to time be determined by the Lender, <u>provided, however, that</u> the Lender shall in its absolute discretion appoint and instruct in respect of any such MII and MAPI policy the insurance brokers in respect of such Insurance and <u>provided, further, that</u> in the event that the Lender effects any such Insurance on the basis of any mortgagee's open cover, the Borrowers shall pay on demand to the Lender its proportion of premium due in respect of the Vessels for which such insurance cover has been effected by the Lender, and any certificate of the Lender in respect of any such premium due by the Borrowers shall (save for manifest error) be conclusive and binding upon the Borrowers.

**10.11** **Communications Indemnity** 

It is hereby agreed in connection with communications that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Express
 authority is hereby given by the Borrowers to the Lender to accept all tested or untested communications given by facsimile, or electronic
 mail or otherwise, regarding any or all of the notices (as defined in Clause 16.7 *(<u>Meaning of "notice"</u>)*,
 requests, instructions or other communications under this Agreement, subject to any restrictions imposed by the Lender relating to
 such communications including, without limitation (if so required by the Lender), the obligation to confirm such communications by
 letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrowers shall recognise any and all of the said notices, requests, instructions or other communications as legal, valid and binding,
 when these notices, requests, instructions or communications come from the fax number or electronic address mentioned in Clause 16.1 *(<u>Notices</u>)* or any other fax or electronic address usually used by it or the Approved Commercial Manager and are duly
 signed or in case of emails are duly sent by the person appearing to be sending such notice, request, instruction or other communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Borrowers hereby assumes full responsibility for the execution of the said notices, requests, instructions or communications and
 promise and recognises that the Lender shall not be held responsible for any loss, liability or expense that may result from such
 notices, requests, instructions or other communications save in case of Lender's wilful misconduct. It is hereby undertaken
 by the Borrowers to indemnify in full the Lender from and against all actions, proceedings, damages, costs, claims, demands, expenses
 and any and all direct and/or indirect losses which the Lender may suffer, incur or sustain by reason of the Lender following such
 notices, requests, instructions or communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With
 regard to notices (as defined in Clause 16.7 *(<u>Meaning of "notice"</u>)* issued by electronic and/or mechanical
 processes (e.g. by facsimile or electronic mail) the following are applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each
 of the Borrowers hereby acknowledges and accepts the risks associated with the use of unsecured electronic mail communication including,
 without limitation, risk of delay, loss of data, confidentiality breach, forgery, falsification and malicious software. The Lender
 shall not be liable in any way for any loss or damage or any other disadvantage suffered by the Borrowers resulting from such unsecured
 electronic mail communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If
 the Borrowers or any other Security Party wishes to cease all electronic communication, it shall give written notice to the Lender
 accordingly after receipt of which notice the Parties shall cease all electronic communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For
 as long as electronic communication is an accepted form of communication, the Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) notify
 each other of any change to their respective addresses or any other such information supplied to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) any
 electronic communication made by and/or between the Lender and the Security Parties or any of them will be effective only when actually
 received in readable form and in the case of any electronic communication made by a Party to the Lender only if it is addressed in
 such a manner as the Lender shall specify for this purpose and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) any
 electronic communication which becomes effective, in accordance with paragraph (c) above, after 5.00 p.m. in the place in which the
 Party to whom the relevant communication is sent or made available has its address for the purpose of this Agreement shall be deemed
 only to become effective on the following Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Lender and the Borrowers further agrees that information may be sent via email to (or from) third parties involved in the provision
 of services. In particular, each Borrowers is aware that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 unencrypted information is transported over an open, publicly accessible network and can, in principle, be viewed by others, thereby
 allowing conclusions to be drawn about a banking relationship;

(ii) the
 information can be changed and manipulated by a third party;

(iii) the
 sender's identity (sender of the e-mail) can be assumed or otherwise manipulated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 exchange of information can be delayed or disrupted due to transmission errors, technical faults, disruptions, malfunctions, illegal
 interventions, network overload, the malicious blocking of electronic access by third parties, or other shortcomings on the part
 of the network provider. In certain situations, time-critical orders and instructions might not be processed on time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 Lender assumes no liability for any loss incurred as a result of manipulation of the e-mail address or content nor is it liable for
 any loss incurred by the Borrowers (or any of them) and any other Security Party due to interruptions and delays in transmission
 caused by technical problems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Lender is entitled to assume that all the orders and instructions, and communications in general, received from the Borrowers or
 the Approved Commercial Manager are from an authorized individual, irrespective of the existing signatory rights in accordance with
 the commercial register (or any other applicable equivalent document).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In
 case electronic communication is sent to recipients with the domain < *@pyxistankers.com* >, the parties shall without
 undue delay inform each other if there are changes to the said domain or if electronic communication shall thereafter be sent to
 individual electronic mail addresses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 risks of misunderstandings and errors resulting from notices (as defined in Clause 16.7 *(<u>Meaning of "**notice** "</u>)* being given as mentioned above, are for the Borrowers and the Lender will be indemnified in full pursuant to this Clause save in
 case of Lender's wilful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The
 Lender shall have the right to ask the Borrowers to furnish any information the Lender may require to establish the authority of
 any person purporting to act on behalf of the Borrowers for these notices but it is expressly agreed that there is no obligation
 for the Lender to do so. The Lender shall be fully protected in, and the Lender shall incur no liability to the Borrowers for acting
 upon the said notices which were believed by the Lender in good faith to have been given by the Borrowers or by any of its authorised
 representative(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) It
 is undertaken by each of the Borrowers to use its best endeavours to safeguard the function and the security of the electronic and
 mechanical appliance(s) such as fax(es) electronic mail(s) etc., as well as the code word list, if any, and to take adequate precautions
 to protect such code word list from loss and to prevent its terms becoming known to any persons not directly concerned with its use.
 The Borrowers shall hold the Lender harmless and indemnified from all claims, losses, damages and expenses which the Lender may incur
 by reason of the failure of the Borrowers (or any of them) to comply with the obligations under this Clause.

**10.12** **FATCA Deduction** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction,
 and no 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Party 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.

**10.13** **FATCA status** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Lender hereby confirms to the Borrowers that it is a FATCA Exempt Party. If, after the date of this Agreement the Lender becomes
 aware that it has ceased to be a FATCA Exempt Party, it will notify the Borrowers promptly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject
 to Clause 10.13(c) below, each party shall, within ten Business Days of a reasonable request by another party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) confirm
 to that other party whether it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) a
 FATCA Exempt Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) not
 a FATCA Exempt Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) supply
 to that other party such forms, documentation and other information relating to its status under FATCA (including its applicable
 passthru percentage or other information required under the Treasury Regulations or other official guidance including intergovernmental
 agreements) as that other party reasonably requests for the purposes of that other party's compliance with FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 a party confirms to another party pursuant to Clause 10.13(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Clause
 10.13(a)(i) above shall not oblige the Lender to do anything which would or might in its reasonable opinion constitute a breach of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 law or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 policy of the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 fiduciary duty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 duty of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 a party fails to confirm its status or to supply forms, documentation or other information requested in accordance with Clause 10.13(a)
 above (including, for the avoidance of doubt, where Clause 10.13(c) above applies), then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 that party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such party shall be treated for the purposes
 of the Finance Documents as if it is not a FATCA Exempt Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 that party failed to confirm its applicable passthru percentage then such party shall be treated for the purposes of the Finance
 Documents (and payments made thereunder) as if its applicable passthru percentage is 100%,

until (in each case) such time as the party in question provides the requested confirmation, forms, documentation or other information.

**10.14** **Fees** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Arrangement fee</u>: The Borrowers shall pay to the Lender an arrangement fee (the  ***"Arrangement Fee*** *"*) in an
 amount equal to zero point five zero per cent. (0.50%) of the amount of each Advance actually drawn down, payable on the relevant
 Drawdown Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Commitment Fee</u>: The Borrowers shall pay to the Lender quarterly in arrears during the period from (and including) the date of this
 Agreement to the earlier of (i) the last day of the Availability Period, (ii) the Drawdown Date of the Advance last to be drawn and
 (iii) the date on which the Lender receives the Borrowers' written notification that they cancel an undrawn part of the Commitment,
 a commitment fee at the rate of zero point three zero per cent. (0.30%) per annum (the  ***"Commitment Fee*** *"*)
 on the undrawn and uncancelled amount of the Commitment, with the first such payment falling due within three (3) months from the
 date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-refundable</u>:
 The Commitment Fee shall be payable by the Borrowers to the Lender whether or not any part of the Commitment is ever advanced (irrespective
 of utilisation/cancellation in part or in whole of the Commitment), MOA cancellation or non-Delivery of a Vessel and shall be non-refundable.

**11.** **SECURITY, APPLICATION, SET-OFF** 

**11.1** **Securities** 

As security for the due and punctual repayment of the Loan and payment of interest thereon as provided in this Agreement and of all other Outstanding Indebtedness, the Borrowers shall ensure and procure that the Security Documents are duly executed and, where required, registered in favour of the Lender in form and substance satisfactory to the Lender at the time specified herein or otherwise as required by the Lender and ensure that such security consists, on each Drawdown Date, of the relevant Security Documents as provided in Clause 7 (*<u>Conditions precedent</u>*).

**11.2** **Maintenance of Securities** 

It is hereby undertaken by the Borrowers that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing and/or due under this Agreement and/or under the other Finance Documents be valid and binding obligations of the respective Security Parties thereto and rights of the Lender enforceable in accordance with their respective terms and that they will, at the expense of the Borrowers, execute, sign, perfect and do any and every such further assurance, document, act, omission or thing as in the opinion of the Lender may be necessary or desirable for perfecting the security contemplated or constituted by the Finance Documents.

**11.3** **Application of receipts** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Order of application</u>: Except as any Finance Document may otherwise provide, any sums which are received or recovered by the Lender
 under or pursuant to or by virtue of any of the Finance Documents and expressed to be applicable in accordance with this Clause 11.3
 shall be applied by the Lender in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) FIRST:
 in or towards satisfaction of any amounts then due and payable under the Finance Documents in the following order and proportions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Firstly</u>,
 in or towards satisfaction of all amounts then due and payable to the Lender under the Finance Documents (including, but without
 limitation, all amounts payable by the Borrowers under Clauses 11 *(<u>Indemnities- Expenses-Fees</u>),* 5.1 *(<u>Payments – No set-off or counterclaims</u>)* or 5.3 *(<u>Gross Up</u>*) of this Agreement or by the Borrowers or any other Security
 Party under any corresponding or similar provision in any other Finance Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Secondly</u>,
 in or towards payment of any default interest then due and payable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Thirdly</u>,
 in or towards payment of any arrears of interest (other than default interest) due and payable in respect of the Loan or any part
 thereof payable to the Lender under the Finance Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Fourthly</u>,
 in or towards satisfaction of the Loan then due and payable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SECOND:
 the surplus (if any), after the full and complete payment of the Outstanding Indebtedness, shall be paid to the Borrowers or to any
 other person entitled to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of variation of order of application</u>: The Lender may, by notice to the Borrowers and the Security Parties, provide, at its sole
 discretion, for a different order of application from that set out in Clause 11.3(a) *(<u>Order of application</u>)* either
 as regards a specified sum or sums or as regards sums in a specified category or categories, without affecting the obligations of
 the Borrowers to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of variation notice</u>: The Lender may give notices under Clause 11.3(b) *(<u>Notice of variation of order of application)</u>* 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Insufficient balance</u>: For the avoidance of doubt, in the event that such balance is insufficient to pay in full the whole of the Outstanding
 Indebtedness, the Lender shall be entitled to collect the shortfall from the Borrowers or any other person liable therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Appropriation rights overridden</u>: This Clause 11.3 and any notice which the Lender gives under Clause 11.3(b) *(<u>Notice of variation of order of application)</u>* shall override any right of appropriation possessed, and any appropriation made, by the Borrowers or
 any other Security Party.

**11.4** **Set off** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Application of credit balances:</u> Express authority is hereby given by each of the Borrowers to the Lender without prejudice to any of the
 rights of the Lender at law, contractually or otherwise, at any time after an Event of Default has occurred and is continuing, and
 without prior notice to the Borrowers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 apply any credit balance standing upon any account of that Borrower with any branch of the Lender (including, without limitation,
 its Operating Account and in whatever currency in or towards satisfaction of any sum due to the Lender from that Borrower under this
 Agreement, the relevant General Assignment and/or any of the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the name of that Borrower and/or the Lender to do all such acts and execute all such documents as may be necessary or expedient to
 effect such application; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 combine and/or consolidate all or any accounts in the name of that Borrower with the Lender; and

for that purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) to
 break, or alter the maturity of, all or any part of a deposit of that Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) to
 convert or translate all or any part of a deposit or other credit balance into Dollars; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) to
 enter into any other transaction or make any entry with regard to the credit balance which the Lender considers appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Existing rights unaffected</u>: The Lender shall not be obliged to exercise any right given by this Clause; 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 the Lender
 is entitled (whether under the general law or any document). For all or any of the above purposes authority is hereby given to the
 Lender to purchase with the moneys standing to the credit of any such account or accounts such other currencies as may be necessary
 to effect such application. The Lender shall notify the Borrowers forthwith upon the exercise of any right of set-off giving full
 details in relation thereto.

**12.** **UNLAWFULNESS, INCREASED COST, BAIL-IN** 

**12.1** **Unlawfulness** 

If any change in, or introduction of, any law, regulation or regulatory requirement or any request of any central bank, monetary, regulatory or other authority or any order of any court renders it unlawful or contrary to any Sanctions or contrary to any such regulation, requirement, request or order for the Lender to advance the Commitment or the relevant part thereof (as the case may be) or to maintain or fund the Loan, notice shall be given promptly by the Lender to the Borrowers whereupon the Commitment shall be reduced to zero and the Borrowers shall be obliged to prepay the Loan either (i) forthwith or (ii) on a future specified date not being earlier than the latest date permitted by the relevant law or regulation, together with accrued interest thereon to the date of prepayment and all other sums payable by the Borrowers under this Agreement.

**12.2** **Increased Cost** 

If the result of any change in, or in the interpretation, implementation or application of, or the introduction of, any law or any regulation (whether or not having the force of law, but, if not having the force of law, with which the Lender or, as the case may be, its holding company habitually complies), including (without limitation) those relating to Taxation, capital adequacy, liquidity, reserve assets, cash ratio deposits and special deposits or other banking or monetary controls or requirements which affect the manner in which the Lender allocates capital resources to its obligations hereunder (including, without limitation, those resulting from the implementation or application of or compliance with the Basel II Accord or the Basel III Accord or any Basel II Regulation or the Basel III Accord or any Basel III Regulation or any subsequent accord, approach or regulation thereto) (collectively, ***"Capital Adequacy Law"***) or compliance by the Lender with any such Capital Adequacy Law or , is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase
 the cost to, or impose an additional cost on, the Lender or its holding company in making or keeping the Commitment available or
 maintaining or funding all or part of the Loan; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject
 the Lender to Taxes or change the basis of Taxation of the Lender with respect to any payment under any of the Finance Documents
 (other than Taxes or Taxation on the overall net income, profits or gains of the Lender imposed in the jurisdiction in which its
 principal or lending office under this Agreement is located); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reduce
 the amount payable or the effective return to the Lender under any of the Finance Documents; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reduce
 the Lender's or its holding company rate of return on its overall capital by reason of a change in the manner in which it is
 required to allocate capital resources to the Lender's obligations under any of the Finance Document; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) require
 the Lender or its holding company to make a payment or forgo a return on or calculated by references to any amount received or receivable
 by it under any of the Finance Documents is required; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) require
 the Lender or its holding company to incur or sustain a loss (including a loss of future potential profits) by reason of being obliged
 to deduct all or part of the Commitment or the Loan from its capital for regulatory purposes,

then and in each case (subject to Clause 12.5 *(<u>Exception</u>)*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Lender shall notify the Borrowers in writing of such event promptly upon its becoming aware of the same; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Borrowers shall on demand pay to the Lender the amount which the Lender specifies (in a certificate and supporting documents setting
 forth and evidencing the basis of the computation of such amount but not including any matters which the Lender or its holding company
 regards as confidential) is required to compensate the Lender and/or (as the case may be) its holding company for such liability
 to Taxes, cost, reduction, payment, foregone return or loss whatsoever.

For the purposes of this Clause 12 *"**holding company**"* means the company or entity (if any) within the consolidated supervision of which the Lender is included.

**12.3** **Claim for increased cost** 

The Lender will promptly notify the Borrowers in writing of any intention to claim indemnification pursuant to Clause 12.2 *(<u>Increased Cost</u>)* and such notification will be a conclusive and full evidence binding on the Borrowers as to the amount of any increased cost or reduction and the method of calculating the same and the Borrowers shall be allowed to rebut such evidence by any means of evidence save for witness. A claim under Clause 12.2 *(<u>Increased Cost</u>)* may be made at any time and must be discharged by the Borrowers within fifteen (15) days of demand. It shall not be a defence to a claim by the Lender under this Clause 12.3 that any increased cost or reduction could have been avoided by the Lender. Any amount due from the Borrowers under Clause 12.2 *(<u>Increased Cost</u>)* shall be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under or in respect of this Agreement.

**12.4** **Option to prepay** 

If any additional amounts are required to be paid by the Borrowers to the Lender by virtue of Clause 12.2 *(<u>Increased Cost</u>)*, the Borrowers shall be entitled, on giving the Lender not less than ten (10) days prior notice in writing, to prepay (without premium or penalty) the Loan and accrued interest thereon, together with all other Outstanding Indebtedness, on the next Repayment Date. Any such notice, once given, shall be irrevocable.

**12.5** **Exception** 

Nothing in Clause 12.2 *(<u>Increased Cost</u>)* shall entitle the Lender to receive any amount in respect of compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss to the extent that the same is subject of an additional payment under Clause 5.3 *(<u>Gross Up</u>)*.

**12.6** **Contractual recognition of bail-in** 

Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 Bail-In Action in relation to any such liability, including (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 cancellation of any such liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**13.** **OPERATING ACCOUNTS** 

**13.1** **General** 

Each of the Borrowers undertakes with the Lender that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 or before the first Drawdown Date, open its Operating Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) procure
 that all moneys payable to that Borrower in respect of the Earnings of its Vessel shall, unless and until the Lender directs to the
 contrary pursuant to the relevant General Assignment, be paid to its Operating Account, free from Security Interests and rights of

 applied as provided in Clause 13.2 *(<u>Application of Earnings</u>)*.

**13.2** **Application of Earnings** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to the terms and conditions of the Accounts Pledge Agreement no monies shall be withdrawn from the Operating Accounts (or any of
 them) save as hereinafter provided. Subject to no Event of Default having occurred and being continuing, all monies paid to the Operating
 Accounts (whether being Earnings or not) after discharging the costs (if any) incurred by the Lender, in collecting such monies,
 shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>First</u>:
 in payment of any arrears of interest and principal of the Loan due and payable hereunder and any and all other sums whatsoever which
 from time to time become due and payable to the Lender hereunder (such sums to be paid in such order as the Lender may in its sole
 discretion elect);

<u>provided, however, that</u> the Lender shall be entitled to withdraw the required amounts from the Operating Accounts or any time deposit substitute account under the same or different designation by breaking such time deposit in order to effect payment of any amount due under "<u>First</u>" above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Second</u>:
 in payment of the Operating Expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Third</u>:
 any credit balance shall be, subject to the provisions of this Agreement and the Accounts Pledge Agreement, available to the Borrowers
 to be used for any purpose not inconsistent with the Borrowers' other obligations under this Agreement.

**13.3** **Interest** 

Any amounts for the time being standing to the credit of an Operating Account shall bear interest at the rate from time to time offered by the Lender to its customers for Dollar deposits of similar amounts and for periods similar to those for which such amounts are likely to remain standing to the credit of that Operating Account. Such interest shall, <u>provided that</u> (a) the foregoing provisions of this Clause 13 shall have been complied with and (b) no Event of Default shall have occurred and is continuing, be released to the Borrowers.

**13.4** **Drawings from Operating Accounts** 

Save as provided in Clause 13.2 *(<u>Application of Earnings</u>),* neither of the Borrowers shall be entitled to draw from its Operating Account if an Event of Default has occurred and is continuing without the prior written consent of the Lender.

**13.5** **Authorisation** 

For the avoidance of doubt, the Lender shall be entitled (but not obliged) at any time, and to this respect the Lender is hereby authorised by each of the Borrowers from time to time to debit the Operating Account of that Borrower, without notice to the Borrowers, in order to discharge any amount due and payable to the Lender under the terms of this Agreement and the Security Documents or otherwise howsoever in connection with the Loan, including, without limitation, any payment of which the Lender has become entitled to demand under Clause 9.2 *(<u>Consequences of Default – Acceleration</u>)*.

**13.6** **Obligations unaffected** 

Nothing herein contained shall be deemed to affect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 liability and absolute obligation of the Borrowers to pay interest on and to repay the Loan as provided in Clauses 3 *(<u>Interest</u>)* and 4 *(<u>Repayment-Prepayment</u>)* nor shall they constitute or be construed as constituting a manner of postponement
 thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 other liability or obligation of the Borrowers or any other Security Party under any Finance Document.

**13.7** **Relocation of Operating Accounts** 

Each of the Borrowers, at its own costs and expenses, undertakes with the Lender to comply with or cause to be complied with any written requirement of the Lender from time to time as to the location or re-location of its Operating Account and will from time to time enter into such documentation as the Lender may require in order to create or maintain a security interest in that Operating Account.

**13.8** **Application on Event of Default** 

Upon the occurrence of an Event of Default that is continuing or at any time thereafter (whether or not notice of default has been given to the Borrowers) when an Event of Default is continuing the Lender shall be entitled to set off and apply all sums standing to the credit of the Operating Accounts and accrued interest (if any) without prior notice to the Borrowers in the manner specified in Clause 11.3 *(<u>Application of receipts</u>)* (and express and irrevocable authority is hereby given by the Borrowers to the Lender so to set off by debiting the Operating Accounts accordingly by the same.

**13.9** **No Security Interests** 

Each of the Borrowers hereby covenant with the Lender that its Operating Account and any moneys therein shall not be charged, assigned, transferred or pledged nor shall there be granted by that Borrower or suffered to arise any third party rights over or against the whole or any part of its Operating Account other than in favour of the Lender as promised herein and in the relevant General Assignment.

**13.10** **Operation of Operating Accounts** 

Each Operating Account shall be operated by the relevant Borrower to the degree permitted by this Agreement and the General Assignment in accordance with the Lender's usual terms and conditions (full knowledge of which each Borrower hereby acknowledges) and subject to the Lender's usual charges levied on such accounts and/or transactions conducted on such accounts (as from time to time notified by the Lender to the Borrowers).

**13.11** **Release** 

Upon payment in full of all principal, interest and all other amounts due to the Lender under the terms of this Agreement and the other Finance Documents, any balance then standing to the credit of any of the Operating Accounts shall be released and paid to the relevant Borrower or to whomsoever else may be entitled to receive such balance.

**14.** **ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE** 

**14.1** **Binding Effect** 

This Agreement shall be binding upon and inure to the benefit of the Lender and the Borrowers and their respective successors and assigns.

**14.2** **No Assignment by the Borrowers and other Security Parties** 

Neither the Borrowers nor any other Security Parties may assign or transfer any of its rights and/or obligations under this Agreement or any of the other Finance Documents or any documents executed pursuant to this Agreement and/or the other Finance Documents.

**14.3** **Assignment by the Lender** 

The Lender may at any time without the consent of, or consultation with, the Borrowers and the other Security Parties but with 30-days prior notice to the Borrowers, cause all or any part of its rights, benefits and/or obligations under this Agreement and the other Finance Documents to be assigned or transferred to (i) another branch, any Subsidiary or Affiliate of, or company controlled by, the Lender, (ii) a member of the European Central Bank System, a credit institution, a financial services institution, a financial institution, an insurance company, a social security fund, a pension fund, an investment company/trust or a special purpose company established for the purposes of securitization, (iii) a capital investment company, hedge fund, financial intermediary or special purpose vehicle associated to any of them or (iii) a trust corporation, fund or other person which regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets of which are managed or serviced by the Lender (in each case an *"**Assignee**"* or a *"**Transferee**"*), <u>provided that</u> the Assignee or Transferee, shall deliver to the Lender such undertaking as the Lender may approve, whereby it becomes bound by the terms of this Agreement and agrees to perform all or, as the case may be, part of the Lender's obligations under this Agreement and <u>provided, further, that</u> the liabilities of the Borrowers and of the other Security Parties under this Agreement and any other Finance Document shall not be increased as a result of any such assignment or transfer and that in the event that the Borrowers' and/or any other Security Party's liabilities (actual or contingent) are increased, neither the Borrowers nor any other Security Party shall be liable for any such excess.

**14.4** **Participation** 

The Lender may at any time without the consent of, or consultation with, or notice to the Borrowers sub-participate all or any part of its rights, benefits and/or obligations under this Agreement and the other Finance Documents without the consent of, or consultation with or notice to the Borrowers and the other Security Parties, <u>provided that</u> the liabilities of the Borrowers and of the other Security Parties under this Agreement and any other Finance Document shall not be increased as a result of any such sub-participation and that in the event that the Borrowers' and/or any other Security Party's liabilities (actual or contingent) are increased, neither the Borrowers nor any other Security Party shall be liable for any such excess.

**14.5** **Cost** 

Any cost of such assignment or transfer or granting sub-participation shall be for the account of the Lender and/or the Assignee, Transferee or sub-participant unless any such assignment, transfer or sub-participation is undertaken at the request of the Borrowers, in which case any cost arising therefrom shall be for the account of the Borrowers.

**14.6** **Documenting assignments and transfers** 

If the Lender assigns, transfers or in any other manner grants participation in respect of all or any part of its rights or benefits or transfers all or any of its obligations as provided in this Clause 14.6 the Borrowers undertakes, immediately on being requested to do so by the Lender, to enter at the expense of the Lender into and procure that each Security Party enters into such documents as may be necessary or desirable to transfer to the Assignee, Transferee or participant all or the relevant part of the interest of the Lender in the Finance Documents and all relevant references in this Agreement to the Lender shall thereafter be construed as a reference to the Lender and/or Assignee, Transferee or participant of the Lender to the extent of their respective interests and, in the case of a transfer of all or part of the obligations of the Lender, the Borrowers shall thereafter look only to the Assignee, Transferee or participant in respect of that proportion of the obligations of the Lender under this Agreement assumed by such assignee, transferee or participant. Subject to the provisions of Clause 14.3 *(<u>Assignment by the Lender</u>)*, the Borrowers hereby expressly consents to any subsequent transfer of the rights and obligations of the Lender and undertakes that it shall join in and execute such supplemental or substitute agreements as may be necessary to enable the Lender to assign and/or transfer and/or grant participation in respect of its rights and obligations to another branch or to one or more banks or financial institutions in a syndicate or otherwise in accordance with the terms and conditions contained in this Clause 14.. The cost of any such assignment shall be borne by the Lender and/or the relevant Assignee or Transferee.

**14.7** **Disclosure of information** 

The Lender may disclose to a prospective assignee, substitute or transferee or to any other person who may propose entering into contractual relations with the Lender in relation to this Agreement such information about the Borrowers as the Lender shall consider appropriate if the Lender first procures that the relevant prospective assignee, substitute or transferee or other person (such person together with any prospective assignee, substitute or transferee being hereinafter described as the *"**Prospective Assignee**"*) shall undertake to the Lender to keep secret and confidential and shall not, without the consent of the Borrowers, disclose to any third party any of the information, reports or documents supplied by the Lender <u>provided, however, that</u> the Prospective Assignee shall be entitled to disclose such information, reports or documents in the following situations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 relation to any proceedings arising out of this Agreement or the other Finance Documents to the extent considered necessary by the
 Prospective Assignee to protect its interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pursuant
 to a court order relating to discovery or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) pursuant
 to any law or regulation or to any fiscal, monetary, tax, governmental or other competent authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 its auditors, legal or other professional advisers.

In addition the Prospective Assignee shall be entitled to disclose or use any such information, reports or documents if the information contained therein shall have emanated in conditions free from confidentiality, bona fide from some person other than the Lender or the Borrowers.

**14.8** **Changes in constitution or reorganisation of the Lender** 

For the avoidance of doubt and without prejudice to the provisions of Clause 14.1 *(<u>Binding Effect</u>)*, this Agreement shall remain binding on the Borrowers and the other Security Parties notwithstanding any change in the constitution of the Lender or its absorption in, or amalgamation with, or the acquisition of all or part of its undertaking or assets by, any other person, or any reconstruction or reorganisation of any kind, to the intent that this Agreement shall remain valid and effective in all respects in favour of any Assignee, Transferee or other successor in title of the Lender in the same manner as if such Assignee, Transferee or other successor in title had been named in this Agreement as a party instead of, or in addition to, the Lender.

**14.9** **Securitisation** 

The Lender may include all or any part of the Loan in a securitisation (or similar transaction) pursuant to Law 3156/2003, or any other relevant legislation introduced or enacted after the date of this Agreement, without the consent of, or consultation with, but after giving 30-days notice to the Borrowers. The Borrowers will assist the Lender as necessary to achieve a successful securitisation (or similar transaction) <u>provided that</u> the Borrowers shall not be required to bear any third party costs related to any such securitisation (or similar transaction) and that such securitisation (or similar transaction) shall not result in an increase of the Borrowers' or any other Security Party's obligations under this Agreement and the other Security Documents and need only provide any such information which any third parties may reasonably require.

**14.10** **Lending Office** 

The Lender shall lend through its office at the address specified in the preamble of this Agreement or through any other office of the Lender selected from time to time by it through which the Lender wishes to lend for the purposes of this Agreement. If the office through which the Lender is lending is changed pursuant to this Clause 14.10, the Lender shall notify the Borrowers promptly of such change and upon notification of any such transfer, the word *"Lender"* in this Agreement and in the other Finance Documents shall mean the Lender, acting through such branch or branches and the terms and provisions of this Agreement and of the other Finance Documents shall be construed accordingly.

**15.** **MISCELLANEOUS** 

**15.1** **Time of essence** 

Time is of the essence as regards every obligation of the Borrowers under this Agreement.

**15.2** **Cumulative Remedies** 

The rights and remedies of the Lender contained in this Agreement and the other Finance Documents are cumulative and neither exclusive of each other nor of any other rights or remedies conferred by law.

**15.3** **No implied waivers** 

No failure, delay or omission by the Lender to exercise any right, remedy or power vested in the Lender under this Agreement and/or the other Finance Documents or by law shall impair such right or power, or be construed as a waiver of, or as an acquiescence in any default by the Borrowers, nor shall any single or partial exercise by the Lender of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. In the event of the Lender on any occasion agreeing to waive any such right, remedy or power, or consenting to any departure from the strict application of the provisions of this Agreement or of any other Finance Document, such waiver shall not in any way prejudice or affect the powers conferred upon the Lender under this Agreement and the other Finance Documents or the right of the Lender thereafter to act strictly in accordance with the terms of this Agreement and the other Finance Documents. No modification or waiver by the Lender of any provision of this Agreement or of any of the other Finance Documents nor any consent by the Lender to any departure therefrom by any Security Party shall be effective unless the same shall be in writing and then shall only be effective in the specific case and for the specific purpose for which given. No notice to or demand on any such party in any such case shall entitle such party to any other or further notice or demand in similar or other circumstances.

**15.4** **Recourse to other security** 

The Lender shall not be obliged to make any claim or demand or to resort to any Finance Document or other means of payment now or hereafter held by or available to it for enforcing this Agreement or any of the other Finance Documents against the Security Parties (or any of them) or any other person liable and no action taken or omitted by the Lender in connection with any such Finance Document or other means of payment will discharge, reduce, prejudice or affect the liability of any Security Party under this Agreement and the other Finance Documents to which it is, or is to be, a party.

**15.5** **Integration of Terms** 

This Agreement contains the entire agreement of the parties and its provisions supersede the provisions of the Commitment Letter (save for the provisions thereof which relate to fees) and any and all other prior correspondence and oral negotiation by the parties in respect of the matters regulated by this Agreement.

**15.6** **Amendments** 

This Agreement and any other Finance Documents shall not be amended or varied in their respective terms by any oral agreement or representation or in any other manner other than by an instrument in writing of even date herewith or subsequent hereto executed by or on behalf of the parties hereto or thereto.

**15.7** **Invalidity of Terms** 

In the event of any provision contained in one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto being invalid, illegal or unenforceable in any respect under any applicable law in any jurisdiction whatsoever, such provision shall be ineffective as to that jurisdiction only without affecting the remaining provisions hereof or thereof. If, however, this event becomes known to the Lender prior to the drawdown of the Commitment or of any part thereof the Lender shall be entitled to refuse drawdown until this discrepancy is remedied. In case that the invalidity of a part results in the invalidity of the whole Agreement, it is hereby agreed that there will exist a separate obligation of the Borrowers for the prompt payment to the Lender of all the Outstanding Indebtedness. Where, however, the provisions of any such applicable law may be waived, they are hereby waived by the parties hereto to the full extent permitted by the law to the intent that this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto shall be deemed to be valid binding and enforceable in accordance with their respective terms.

**15.8** **Language and genuineness of documents** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Language</u>:
 All certificates, instruments and other documents to be delivered under or supplied in connection with this Agreement or any of the
 other Finance Documents shall be in the Greek or the English language (or such other language as the Lender shall agree) or shall
 be accompanied by a certified Greek translation upon which the Lender shall be entitled to rely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Certification of documents</u>: Any copies of documents delivered to the Lender shall be duly certified as true, complete and accurate copies by
 appropriate authorities or legal counsel practicing in Greece or otherwise as will be acceptable to the Lender at the sole discretion
 of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certification of signature</u>: Signatures on board of directors or shareholders resolutions, Secretary's certificates and any other documents
 are, at the discretion of the Lender, to be verified for their genuineness by appropriate Consul or other competent authority.

**15.9** **Further assurances** 

Each of the Borrowers undertakes that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing under any of the Finance Documents be valid and binding obligations of the respective parties thereto and enforceable in accordance with their respective terms and that it will, at its expense, execute, sign, perfect and do, and will procure the execution, signing, perfecting and doing by each of the other Security Parties of, any and every such further assurance, document, act or thing as in the reasonable opinion of the Lender may be necessary or desirable for perfecting the security contemplated or constituted by the Finance Documents.

**15.10** **Inconsistency of Terms** 

In the event of any inconsistency or conflict between the provisions of this Agreement and the provisions of any other Finance Document the provisions of this Agreement shall prevail.

**15.11** **Counterparts** 

This Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute but one and the same instrument.

**15.12** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 of the parties hereto agree and undertake to keep confidential any documentation and any confidential information concerning the
 business, affairs, directors or employees of the other which comes into its possession in connection with this Agreement and not
 to use any such documentation, information for any purpose other than for which it was provided.

Notwithstanding the foregoing, compliance of the Borrowers and/or of the Corporate Guarantor with their reporting and filing requirements, relating to the transactions and matters contemplated by this Agreement and the other Finance Documents, to governmental or regulatory agencies and authorities, including, but not limited to, the Securities and Exchange Commission of the United States of America, shall not constitute a breach of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrowers acknowledges and accepts that the Lender may be required by law or regulation or regulatory requirement or any request
 of any central bank or any court order to disclose information and deliver documentation relating to the Borrowers and the transactions
 and matters in relation to this Agreement and/or the other Finance Documents to governmental or regulatory agencies and authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Borrowers acknowledges and accepts that in case of occurrence of any of the Events of Default the Lender may disclose information
 and deliver documentation relating to the Borrowers and the transactions and matters in relation to this Agreement and/or the other
 Finance Documents to third parties to the extent that this is necessary for the enforcement or the contemplation of enforcement of
 the Lender's rights or for any other purpose for which in the opinion of the Lender, such disclosure would be useful or appropriate
 for the interests of the Lender or otherwise and the Borrowers expressly authorises any such disclosure and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Borrowers acknowledges and accepts that the Lender may be prohibited or it may be inappropriate for the Lender to disclose information
 to the Borrowers by reason of law or duties of confidentiality owed or to be owed to other persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This
 Clause 15.12 shall be: (i) in addition to all other duties of confidentiality imposed on the Lender and its professional advisers
 under applicable law; and (ii) subject to any other applicable provisions contained in this Agreement and the other Finance Documents.

**15.13** **Personal data** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Process of personal data</u>: Each of the Borrowers hereby confirms that it has been informed that its personal data and/or the personal
 data of its director(s), officer(s) and legal representative(s) (together the *"personal data*") contained in this
 Agreement or the personal data that have been or will be lawfully received by the Lender in relation to this Agreement and the Finance
 Documents will be included at the personal data database maintained by the Lender as processing agent *(Υπεύθυνη Επεξεργασίας)* and will be processed by the Lender for the
 purpose of properly serving, supporting and monitoring their current business relationship as provided in the information brochure *"Information for the Processing of Personal Data" (Ενημέρωση για την επεξεργασία δεδομένων προσωπικού χαρακτήρα)* which
 forms an integral part of this Agreement and each of the Borrowers hereby confirms that a copy of such information brochure has been
 received by that Borrower, its director(s), officer(s) and legal representative(s) and has been perused, duly understood and fully
 agreed by each of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Duration of the process</u>: The personal data process shall survive the termination of this Agreement for such period as it is required by
 the applicable law.

**16.** **JOINT AND SEVERAL LIABILITY OF THE BORROWERS** 

**16.1** **Joint and several liability** 

All liabilities and obligations of the Borrowers under this Agreement shall, whether expressed to be so or not, be joint and several.

**16.2** **No impairment of Borrowers' obligations** 

The liabilities and obligations of a Borrower shall not be impaired by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this
 Agreement being or later becoming void, unenforceable or illegal as regards the other Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Lender entering into any rescheduling, refinancing or other arrangement of any kind with the other Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 time, waiver or consent granted to, or composition with the other Borrower or other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 release of the other Borrower or any other person under the terms of any composition or arrangement with any creditor thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights
 against, or security over assets of, the other Borrower or other person or any non-presentation or non-observance of any formality
 or other requirement in respect of any instrument or any failure to realise the full value of any security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any
 incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of the other Borrower
 or any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 amendment, novation, supplement, extension, restatement (however fundamental, and whether or not more onerous) or replacement of
 a Finance Document or any other document or security including, without limitation, any change in the purpose of, any extension of
 or any increase in any facility or the addition of any new facility under any Finance Document or other document or security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 unenforceability, illegality or invalidity of any obligation or any person under any Finance Document or any other document or security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any
 insolvency or similar proceedings; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any
 combination of the foregoing.

**16.3** **Principal debtor** 

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 neither of the Borrowers shall in any circumstances be construed to be a surety for the obligations of the other Borrower under this Agreement.

**16.4** **Subordination** 

Subject to Clause 16.5 *(<u>Borrowers' required action</u>)*, during the Security Period, neither of the Borrowers shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) claim
 any amount which may be due to it from the 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take
 or enforce any form of security from the 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 the other Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) set
 off such an amount against any sum due from it to the other Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) prove
 or claim for such an amount in any liquidation, administration, arrangement or similar procedure involving the other Borrower or
 other Security Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) exercise
 or assert any combination of the foregoing.

**16.5** **Borrowers' required action** 

If during the Security Period, the Lender, by notice to the Borrowers, requires it to take any action referred to in paragraphs (a) to (d) of Clause 16.4 *(<u>Subordination</u>)*, in relation to the other Borrower, that Borrower shall take that action as soon as practicable after receiving the Lender's notice.

**16.6** **Deferral of Borrowers' rights** 

Until all amounts which may be or become payable by the Borrowers under or in connection with the Finance Documents have been irrevocably paid in full and unless the Lender otherwise directs, neither Borrower will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 be indemnified by the other Borrowers; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 claim any contribution from the other Borrower in relation to any payment made by it under the Finance Documents.

**17.** **NOTICES AND COMMUNICATIONS** 

**17.1** **Notices** 

Every notice, request, demand or other communication under the Agreement or, unless otherwise provided therein, any of the other Finance Documents shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be
 in writing delivered personally or by first-class prepaid letter (airmail if available), or shall be served through a process server
 or subject to Clause 10.11 *(<u>Communications Indemnity</u>)* and Clause 10.12 *(<u>Electronic Communication</u>)* by
 fax or electronic mail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 deemed to have been received, subject as otherwise provided in this Agreement or the relevant Finance Document, in the case of fax
 or electronic mail, at the time of dispatch as per transmission report (<u>provided, in either case, that</u> if the date of despatch
 is not a business day in the country of the addressee it shall be deemed to have been received at the opening of business on the
 next such business day), and in the case of a letter when delivered or served personally or five (5) days after it has been put into
 the post; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be
 sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 to be sent to any Security Party, to:

c/o Pyxis Maritime corp.,

59 K. Karamanli Street,

Maroussi 15125, Greece

Fax: +30 210 6510530

Attention: Mr. Kostantinos Lytras

E-mail: <u>klytras@pyxistankers.com</u>, <u>fin@pyxis.gr</u> and

<u>hwilliams@pyxistankers.com</u>

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 to be sent to the Lender, to

Piraeus Bank S.A.,

170 Alexandras Ave.,

11521 Athens, Greece

Fax.: +30-210-3739783

Attention: The Manager

E-mail: <u>shipping@piraeusbank.gr</u>

or to such other person, address fax number or electronic address as is notified by the relevant Security Party or the Lender (as the case may be) to the other parties to this Agreement and, in the case of any such change of address, or fax number or electronic address notified to the Lender, the same shall not become effective until notice of such change is actually received by the Lender and a copy of the notice of such change is signed by the Lender.

**17.2** **Effective date of notices** 

Subject to Clauses 16.3 *(<u>Service outside business hours</u>)* and 16.4 *(<u>Illegible notices</u>)*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 notice which is sent by fax or electronic mail shall be deemed to be served, and shall take effect, two hours after its transmission
 is completed.

**17.3** **Service outside business hours** 

However, if under Clause 16.2 *(<u>Effective date of notices</u>)* a notice would be deemed to be served:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 a day which is not a Business Day in the place of receipt; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on
 such a Business Day, but after 5 p.m. local time,

the notice shall (subject to Clause 16.4 *(<u>Illegible notices</u>)*) be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a Business Day.

**17.4** **Illegible notices** 

Clauses 16.2 *(<u>Effective date of notices</u>)* and 16.3 *(<u>Service outside business hours</u>)* 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.

**17.5** **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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

**17.6** **Effect of electronic communication** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail
 or other electronic means (including, without limitation, by way of posting to a secure website) if those two Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notify
 each other in writing of their electronic mail address and/or any other information required to enable the transmission of information
 by that means; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notify
 each other of any change to their address or any other such information supplied by them by not less than five Business Days'
 notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any
 such electronic communication as specified in paragraph 17.6(a) above to be made between a Security Party and the Lender may only
 be made in that way to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an
 accepted form of communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any
 such electronic communication as specified in paragraph (a) above made between any two Parties will be effective only when actually
 received (or made available) in readable form and in the case of any electronic communication made by a Party to the Lender only
 if it is addressed in such a manner as the Lender shall specify for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 electronic communication which becomes effective, in accordance with paragraph (c) above, after 5.00 p.m. in the place in which the
 Party to whom the relevant communication is sent or made available has its address for the purpose of this Agreement shall be deemed
 only to become effective on the following Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any
 reference in a Finance Document to a communication being sent or received shall be construed to include that communication being
 made available in accordance with this Clause 16.6.

**17.7** **Meaning of "notice"** 

In this Clause 16 and in Clause 10.11 *(<u>Communications indemnity</u>)*, ***"notice"*** includes any demand, consent, authorisation, approval, instruction, waiver or other communication.

**18.** **LAW AND JURISDICTION** 

**18.1** **Governing Law** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement and any non-contractual obligations connected with it shall be governed by and construed in accordance with English Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For
 the purposes of enforcement in Greece, it is hereby expressly agreed that English law as the governing law of this Agreement will
 be proved by an affidavit of a solicitor from an English law firm to be appointed by the Lender and the said affidavit shall constitute
 full and conclusive evidence binding on the Borrowers but the Borrowers shall be allowed to rebut such evidence save for witness.

**18.2** **Jurisdiction** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement or any non-contractual
 obligations connected with it (including a dispute regarding the existence, validity or termination of this Agreement and including
 claims arising out of tort or delict) (a *" **Dispute** "*). Each of the Borrowers irrevocably and unconditionally
 submits to the jurisdiction of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party
 will argue to the contrary and waives any objections to the inconvenience of England as a forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This
 Clause 17.2 is for the benefit of the Lender only. As a result, the Lender shall not be prevented from taking proceedings relating
 to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Lender may take concurrent proceedings in any
 number of jurisdictions.

**18.3** **Process Agent for English Proceedings** 

Without prejudice to any other mode of service allowed under any relevant law each of the Borrowers irrevocably designates, appoints and empowers Messrs. Atlas Maritime Services Limited, at its registered office for the time being at Enterprise House, 113-115 George Lane, E18 1AB, London, England (hereinafter called the ***"Process Agent for English Proceedings"***), to receive for it and on its behalf, service of process issued out of the English courts in relation to any proceedings before the English courts in connection with any Finance Document, <u>provided, however, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 of the Borrowers hereby agrees and undertakes to maintain a Process Agent for English Proceedings throughout the Security Period
 and hereby agrees that in the event that if any Process Agent for English Proceedings is unable for any reason to act as agent for
 service of process, that Borrower must immediately (and in any event within ten (10) days of such event taking place) appoint another
 agent on terms acceptable to the Lender. Failing this, the Lender may appoint for this purpose a substitute Process Agent for English
 Proceedings and the Lender is hereby irrevocably authorised to effect such appointment on Borrowers' behalf. The appointment
 of such Process Agent for English Proceedings shall be valid and binding from the date notice of such appointment is given by the
 Lender to the Borrowers in accordance with Clause 16.1 *(<u>Notices</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each
 of the Borrowers hereby agrees that failure by a Process Agent for English Proceedings to notify the Borrowers of the process will
 not invalidate the proceedings concerned.

**18.4** **Proceedings in any other country** 

If it is decided by the Lender that any such proceedings should be commenced in any other country, then any objections as to the jurisdiction or any claim as to the inconvenience of the forum is hereby waived by each of the Borrowers and it is agreed and undertaken by each of the Borrowers to instruct lawyers in that country to accept service of legal process and not to contest the validity of such proceedings as far as the jurisdiction of the court or courts involved is concerned and each of the Borrowers agrees that any judgment or order obtained in an English court shall be conclusive and binding on each of the Borrowers and shall be enforceable without review in the courts of any other jurisdiction.

**18.5** **Process Agent (*antiklitos*) in Greece** 

Mrs. Alexandra Tatagia, an Attorney-at-Law, presently of 61-65 Filonos Street, Piraeus, Greece (hereinafter called the ***"Process Agent for Greek Proceedings"***) is hereby appointed by each of the Borrowers as agent to accept service, upon whom any judicial process in respect of proceedings in Greece may be served and any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial announcement of claim, notice, request, demand or other communication under this Agreement or any of the Finance Documents. In the event that the Process Agent for Greek Proceedings (or any substitute process agent notified to the Lender in accordance with the foregoing) cannot be found at the address specified above (or, as the case may be, notified to the Lender), which will be conclusively proved by a deed of a process server to the effect that the Process Agent for Greek Proceedings was not found at such address, any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial announcement of claim or other communication to be sent to any Security Party may be validly served/notified in accordance with the relevant provisions of the Hellenic Code on Civil Procedure.

**18.6** **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.

**18.7** **Meaning of "proceedings"** 

In this Clause 17 "***proceedings***" means proceedings of any kind, including an application for a provisional or protective measure.

*[Remainder of page intentionally left blank]*

 

 

**<u>SCHEDULE 1</u>**

**Form of Drawdown Notice**

*(referred to in Clause 2.2)*

 

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| | |
|:---|:---|
| To: | **PIRAEUS BANK S.A.** |
|  | 4 Amerikis Street, |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Athens, Greece |

---

[●]

---

| | |
|:---|:---|
| Re: | US$45,000,000 Loan Agreement (the ***"Loan Agreement"***) dated [●] July, 2025 made between (1) the Lender, as lender and (2) Dryfour Corp. and Twelfthone Corp. (the ***"Borrowers"***), as joint and several borrowers. |

---

**1.** We
 refer to the Loan Agreement (terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice) and
 hereby give you notice that we wish to draw the Commitment as follows:

(i) <u>Loan</u>: the Advance [A/B] in the sum of [US$[●] (Dollars [●])];

(ii) <u>Drawdown Date</u>: [●];

(iii) <u>duration of Interest Period</u>: duration of the relevant Interest Period in respect of the Loan shall be [●] months; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Payment instructions</u>: [ *in payment to the Operating Account (account number [……………………….]) as per our instructions under separate cover for the purposes set out in Clause 1.1 (<u>Amount and purpose</u>) of the Loan Agreement* ].

**2.** We
 confirm, represent and warrant that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no
 event or circumstance has occurred and is continuing which constitutes a Default or will result from the borrowing of the[said Advance
 A/B];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 representations and warranties contained in Clause 6 *(<u>Representations and warranties</u>)* of the Loan Agreement and the
 representations and warranties contained in each of the other Finance Documents are true and correct at the date hereof as if made
 with respect to the facts and circumstances existing at such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 borrowing to be effected by the drawing of the [said Advance A/B] will be within our corporate powers, has been validly authorised
 by appropriate corporate action and will not cause any limit on our borrowings (whether imposed by statute, regulation, agreement
 or otherwise) to be exceeded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to
 the best of our knowledge and belief, there has been no material change in the ownership, management, operations and no Material
 Adverse Change in our financial position or in the consolidated financial position of ourselves and the other Security Parties from
 that described by us to the Lender in the negotiation of the Loan Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) we
 will not use the proceeds of the Loan or any part thereof for the purpose of acquiring shares in the share capital of the Lender
 or other banks and/or financial institutions or acquiring hybrid capital debentures (*τίτλους υβριδικών κεφαλαίων*) of the
 Lender or other banks and/or financial institutions.

**3.** We
 also instruct the Lender to deduct from the proceeds of the [said Advance A/B] any amount of the fees referred to in Clause 10.14 *(<u>Fees</u>)* which is due and payable.

**4.** This
 Drawdown Notice cannot be revoked without the prior consent of the Lender.

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr.) |  |
| for and on behalf of) |  |
| **DRYFOUR CORP.**,) |  |
| of the Marshall Islands,) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr.) |  |
| for and on behalf of) |  |
| **TWELFTHONE CORP.**) |  |
| of the Marshall Islands,) |  |
| in the presence of:) | Attorney-in-fact |

---

*Piraeus, Greece* 

 

 

**<u>Schedule 2</u>**

**Form of Insurance Letter**

---

| | |
|:---|:---|
| To: | ***[P&I Club]*** |
|  | [●] |
|  | [●] |
| From: | [●] |
|  | [●], |
|  | [●] |

---

[●] 20[●]

Dear Sirs

**m.v.** "[●]" (the ***"Vessel"***)

We are obtaining loan finance from **Piraeus Bank S.A.** (the *"**Lender**"*) secured (*inter alia*) by a first ship mortgage over the Vessel. The Vessel's insurances will also be assigned to the Lender.

You are hereby authorised to send a copy of the Certificate of Entry for the Vessel to the Lender, c/o their lawyers, namely, Theo V. Sioufas & Co. Law Offices, of 13 Defteras Merarchias Street, 185 35 Piraeus, Greece. Further, you are also irrevocably authorised to provide the Lender from time to time with any other information whatsoever which they may require relating to the entry of the Vessel in the association.

This letter is governed by, and shall be construed in accordance with, English law.

_____________________________

For and on behalf of

[●]

**<u>EXECUTION PAGE</u>**

**IN WITNESS** whereof the parties hereto have caused this Agreement to be duly executed on the date first above written.

---

| | |
|:---|:---|
| SIGNED by) |  |
| Ms. Triantafyllia Lazaretou) |  |
| for and on behalf of) |  |
| **DRYFOUR CORP.**) |  |
| of the Marshall Islands,) |  |
| in the presence of:) | Attorney-in-fact |

---

Attorney-in-fact

---

| | |
|:---|:---|
| *Witness to all above signatures:* | *Witness to all above signatures:* |
| *Name:* | *Alexandra Pagoni* |
| *Address:* | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| *Occupation:* | *t. Attorney-at-Law* |

---

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr and) |  |
| Mr) | Attorney-in-fact |
| for and on behalf of) |  |
| **PIRAEUS BANK S.A.**,) |  |
| of Greece,) |  |
| in the presence of:) |  |
|  | Attorney-in-fact |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Alexandra Pagoni* |
| *Address:* | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| *Occupation:* | *t. Attorney-at-Law* |

---

## Exhibit 4.21

**Exhibit 4.21**

**PYXIS TANKERS INC.<br> 2025 EQUITY INCENTIVE PLAN**

**ARTICLE I.<br> General**

**1.1. Purpose**

The Pyxis Tankers Inc. 2025 Equity Incentive Plan (the "Plan") is designed to provide certain Key Persons (as defined below), whose initiative and efforts are deemed to be important to the successful conduct of the business of Pyxis Tankers Inc. (the "Company"), with incentives to (a) acquire a proprietary interest in the success of the Company, (b) maximize their performance in respect of the provision of their services to the Company, a Subsidiary (as defined below) and/or an Affiliate (as defined below) and (c) enhance the long-term performance of the Company.

**1.2. Administration**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Administration</u>. The Plan shall be administered by the Nominating and Corporate Governance Committee of the Company's Board of Directors (the "Board") or such other committee of the Board as may be designated by the Board to administer the Plan (the Nominating and Corporate Governance Committee or such other committee, as applicable, the "Administrator"); <u>provided</u> that (i) in the event the Company is subject to Section 16 of the U.S. Securities Exchange Act of 1934, as amended (the "1934 Act"), the Administrator shall be composed of two or more directors, each of whom is a "Non-Employee Director" (a "Non-Employee Director") under Rule 16b-3 (as promulgated and interpreted by the Securities and Exchange Commission (the "SEC") under the 1934 Act, or any successor rule or regulation thereto as in effect from time to time ("Rule 16b-3")), and (ii) the Administrator shall be composed solely of two or more directors who are "independent directors" under the rules of any stock exchange on which the Company's Common Stock (as defined below) is traded; <u>provided</u> <u>further</u>, <u>however</u>, that, (A) the requirement in the preceding clause (i) shall apply only when required to exempt an Award (as defined below) intended to qualify for an exemption under the applicable provisions referenced therein, (B) the requirement in the preceding clause (ii) shall apply only when required pursuant to the applicable rules of the applicable stock exchange and (C) if at any time the Administrator is not so composed as required by the preceding provisions of this sentence, that fact will not invalidate any grant made, or action taken, by the Administrator hereunder that otherwise satisfies the terms of the Plan. Subject to the terms of the Plan, applicable law and the applicable rules and regulations of any stock exchange on which the Common Stock is listed for trading, and in addition to other express powers and authorizations conferred on the Administrator by the Plan, the Administrator shall have the full power and authority to: (1) designate the Key Persons to receive Awards under the Plan; (2) determine the types of Awards granted to a participant under the Plan; (3) determine the number of shares to be covered by, or with respect to which payments, rights or other matters are to be calculated with respect to, Awards; (4) determine the terms and conditions of any Awards; (5) determine whether, and to what extent, and under what circumstances, Awards may be settled or exercised in cash, shares, other securities, other Awards or other property, or cancelled, forfeited or suspended, and the methods by which Awards may be settled, exercised, cancelled, forfeited or suspended; (6) determine whether, to what extent, and under what circumstances cash, shares, other securities, other Awards, other property and other amounts payable with respect to an Award shall be deferred, either automatically or at the election of the holder thereof or the Administrator; (7) construe, interpret and implement the Plan and any Award Agreement (as defined below); (8) prescribe, amend, rescind or waive rules and regulations relating to the Plan, including rules governing its operation, and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (9)correct any defect, supply any omission and reconcile any inconsistency in the Plan or any Award Agreement; and (10) make any other determination and take any other action that the Administrator deems necessary or desirable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Administrator, may be made at any time and shall be final, conclusive and binding upon all Persons (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>General Right of Delegation</u>. Except to the extent prohibited by applicable law, the applicable rules of a stock exchange or any charter, by-laws or other agreement governing the Administrator, the Administrator may delegate all or any part of its responsibilities to any Person or Persons selected by it; <u>provided</u>, <u>however</u>, that in no event shall an officer of the Company be delegated the authority to grant Awards to, or amend Awards held by, the following individuals: (i) individuals who are subject to Section 16 of the 1934 Act, to the extent applicable, or (ii) officers of the Company to whom authority to grant or amend Awards has been delegated hereunder or directors of the Company; <u>provided</u>, <u>further</u>, that any delegation of administrative authority shall only be permitted to the extent it is permissible under applicable securities laws (including, without limitation, Rule 16b-3, to the extent applicable) and the rules of any applicable stock exchange. Any delegation hereunder shall be subject to the restrictions and limits that the Administrator specifies at the time of such delegation, and the Administrator may at any time rescind the authority so delegated or appoint a new delegatee. At all times, the delegatee appointed under this Section 1.2(b) shall serve in such capacity at the pleasure of the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification</u>. No member of the Board, the Administrator or any officer or employee of the Company or any Subsidiary or Affiliate or any of their agents (each such Person, a "Covered Person") shall be liable for any action taken or omitted to be taken, or any determination made in good faith, on behalf of the Company with respect to the Plan or any Award hereunder. Each Covered Person shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability or expense (including attorneys' fees) that may be imposed upon or incurred by such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan or any Award Agreement and (ii) any and all amounts paid by such Covered Person, with the Company's approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered Person; <u>provided</u> that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification shall not be available to a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered Person's bad faith, fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited by law or by the Company's articles of incorporation or bylaws (in each case, as amended and/or restated). The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company's articles of incorporation or bylaws (in each case, as amended and/or restated), as a matter of law, or otherwise, or any other power that the Company may have to indemnify such Persons or hold them harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delegation of Authority to Senior Officers</u>. The Administrator may, in accordance with and subject to the terms of Section 1.2(b), delegate, on such terms and conditions as it determines, to one or more senior officers of the Company the authority to make grants of Awards to Key Persons who are employees of the Company or any Subsidiary and consultants or service providers to (including Persons actively providing services to the Company or a Subsidiary through an entity that is itself a consultant or service provider to) the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Awards to Non-Employee Directors</u>. Notwithstanding anything to the contrary contained herein, the Board may, in its sole discretion, at any time and from time to time, grant Awards to Non-Employee Directors or administer the Plan with respect to such Awards. In any such case, the Board shall have all the authority and responsibility granted to the Administrator herein with respect to such Awards.

**1.3. Persons Eligible for Awards**

The Persons eligible to receive Awards under the Plan are those directors, officers and employees of the Company or a Subsidiary or an Affiliate and consultants and service providers to (including Persons actively providing services to the Company or a Subsidiary through an entity that is itself a consultant or service provider to) the Company or a Subsidiary or an Affiliate (collectively, "Key Persons") as the Administrator shall select.

**1.4. Types of Awards**

Awards may be made under the Plan in the form of (a) non-qualified stock options (i.e., stock options that are not "incentive stock options" for purposes of Sections 421 and 422 of the Code (as defined below)), (b) stock appreciation rights, (c) restricted stock, (d) restricted stock units, (e) cash awards, (f) unrestricted stock, (g) other equity-based or equity-related awards and (h) dividend equivalents, all as more fully set forth in the Plan. The term "Award" means any of the foregoing that are granted under the Plan.

**1.5. Shares Available for Awards; Adjustments for Changes in Capitalization**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Maximum Number</u>. Subject to adjustment as provided in Section 1.5(c):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the maximum aggregate number of shares of common stock of the Company, par value $0.001 per share ("Common Stock"), that may be delivered pursuant to Awards granted under the Plan shall be equal to 15% of the then-issued and outstanding number of shares of Common Stock (the "Maximum Amount"). The following shares of Common Stock shall again become available for Awards under the Plan: (A) any shares that are subject to an Award under the Plan and that remain unissued upon the cancellation or termination of such Award for any reason whatsoever; (B) any shares of restricted stock forfeited pursuant to the Plan or the applicable Award Agreement; <u>provided</u> that any dividend equivalent rights with respect to such shares that have not theretofore been directly remitted to the grantee are also forfeited; and (C) any shares in respect of which an Award is settled for cash without the delivery of shares to the grantee. Any shares used to satisfy the exercise price or tax withholding obligation related to an Award shall again become available to be delivered pursuant to Awards under the Plan. Awards that are payable solely in cash shall not be counted against the aggregate number of shares of Common Stock available for Awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Source of Shares</u>. Shares issued pursuant to the Plan may be authorized but unissued Common Stock or treasury shares. The Administrator may direct that any stock certificate or book-entry interest evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Adjustments</u>. (i) In the event that any dividend or other distribution (whether in the form of cash, Company shares, other securities or other property), stock split, reverse stock split, reorganization, merger, consolidation, split-up, combination, repurchase or exchange of Company shares or other securities of the Company, issuance of warrants or other rights to purchase Company shares or other securities of the Company, or other similar corporate transaction or event, affects the Company shares such that an adjustment is determined by the Administrator to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to an Award, then, subject to the provisions of Section 1.5(c)(iv) below, the Administrator shall, in such manner as it may deem equitable, adjust any or all of the number of shares or other securities of the Company (or number and kind of other securities or property) with respect to which Awards may be granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Administrator shall make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or infrequently occurring events (including the events described in Section 1.5(c)(i) or the occurrence of a Change in Control (as defined below), subject to the provisions of Section 1.5(c)(iv) below) affecting the Company, a Subsidiary or an Affiliate, or the financial statements of the Company, a Subsidiary or an Affiliate, or of changes in applicable rules, rulings, regulations or other requirements of any governmental body or securities exchange, accounting principles or law, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to an Award, including providing for (A) adjustment to (1) the number of shares or other securities of the Company (or number and kind of other securities or property) subject to outstanding Awards or to which outstanding Awards relate and (2) the Exercise Price (as defined below) with respect to any Award and (B) a substitution or assumption of Awards, accelerating the exercisability or vesting of, or lapse of restrictions on, Awards, or accelerating the termination of Awards by providing for a period of time for exercise prior to the occurrence of such event, or, if deemed appropriate or desirable, providing for a cash payment to the holder of an outstanding Award in consideration for the cancellation of such Award (it being understood that, in such event, any option or stock appreciation right having a per share Exercise Price equal to, or in excess of, the Fair Market Value (as defined below) of a share subject to such option or stock appreciation right may be cancelled and terminated without any payment or consideration therefor); <u>provided</u>*,* <u>however</u>, that with respect to options and stock appreciation rights, unless otherwise determined by the Administrator, such adjustment shall be made in accordance with the provisions of Section 424(h) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event of (A) a dissolution or liquidation of the Company, (B) a sale of all or substantially all the Company's assets or (C) a merger, reorganization or consolidation involving the Company or a Subsidiary, the Administrator shall have the power to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) provide that outstanding options, stock appreciation rights, restricted stock units (including any related dividend equivalent right) and/or other Awards granted under the Plan shall either continue in effect, be assumed or an equivalent award shall be substituted therefor by the successor entity or a parent or subsidiary entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) cancel, effective immediately prior to the occurrence of such event, options, stock appreciation rights, restricted stock units (including each dividend equivalent right related thereto) and/or other Awards granted under the Plan outstanding immediately prior to such event (whether or not then exercisable) and, in full consideration of such cancellation, pay to the holder of such Award a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Administrator) of the shares subject to such Award (or the value of such Award, as determined by the Administrator, if not based on the Fair Market Value of shares) over the aggregate Exercise Price of such Award (or the grant price of such Award, if any, if applicable)(it being understood that, in such event, any option or stock appreciation right having a per share Exercise Price equal to, or in excess of, the Fair Market Value of a share subject to such option or stock appreciation right may be cancelled and terminated without any payment or consideration therefor); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) notify the holder of an option or stock appreciation right in writing or electronically that each option and stock appreciation right shall be fully vested and exercisable for a period of 30 days from the date of such notice, or such shorter period as the Administrator may determine to be reasonable, and the option or stock appreciation right shall terminate upon the expiration of such period (which period shall expire no later than immediately prior to the consummation of the corporate transaction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In connection with the occurrence of any Equity Restructuring (as defined below), and notwithstanding anything to the contrary in this Section 1.5(c):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The number and type of securities or other property subject to each outstanding Award and the Exercise Price or grant price thereof, if applicable, shall be equitably adjusted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Administrator shall make such equitable adjustments, if any, as the Administrator may deem appropriate to reflect such Equity Restructuring with respect to the aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments, of the limitations set forth in Section 1.5(a)). The adjustments provided under this Section 1.5(c)(iv) shall be nondiscretionary and shall be final and binding on the affected participant and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **1.6. Definitions of Certain Terms**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Affiliate" shall mean (i) any entity that, directly or indirectly, is controlled by, controls or is under common control with, the Company and (ii) any entity in which the Company has a significant equity interest, in either case as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise specifically set forth in the applicable Award Agreement, in connection with a termination of employment or consultancy/service relationship, for purposes of the Plan, the term "for Cause" shall be defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if there is an employment, severance, consulting, service, change in control or other agreement governing the relationship between the grantee, on the one hand, and the Company or a Subsidiary or an Affiliate, on the other hand, that contains a definition of "cause" (or similar phrase or phrase of similar meaning), for purposes of the Plan, the term "for Cause" shall mean those acts or omissions that would constitute "cause" (or similar phrase or phrase of similar meaning) under such agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the preceding clause (i) is not applicable to the grantee, for purposes of the Plan, the term "for Cause" shall mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any failure by the grantee substantially to perform the grantee's employment or consulting/service or Board membership duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any excessive unauthorized absenteeism by the grantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any refusal by the grantee to obey the lawful orders of the Board or any other Person to whom the grantee reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any act or omission by the grantee that is or may be injurious to the Company or any Subsidiary or Affiliate, whether monetarily, reputationally or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) any act by the grantee that is inconsistent with the best interests of the Company or any Subsidiary or Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) the grantee's gross negligence that is injurious to the Company or any Subsidiary or Affiliate, whether monetarily, reputationally or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) the grantee's material violation of any of the policies of the Company or any Subsidiary or Affiliate, as applicable, including, without limitation, those policies relating to discrimination or sexual harassment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) the grantee's breach of any material provision of any applicable employment or service contract (including any non-competition, non-solicitation or confidentiality agreement) with the Company or any Subsidiary or Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) the grantee's unauthorized (1) removal from the premises of the Company or any Subsidiary or Affiliate of any document (in any medium or form) relating to the Company or any Subsidiary or Affiliate or the customers or clients of the Company or any Subsidiary or Affiliate or (2) disclosure to any Person of any of the Company's, or any Subsidiary's or Affiliate's, confidential or proprietary information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) the grantee's being convicted of, or entering a plea of guilty or nolo contendere to, any crime that constitutes a felony or involves moral turpitude; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) the grantee's commission of any act involving dishonesty or fraud.

Any rights the Company or any Subsidiary or Affiliate may have under the Plan in respect of the events giving rise to a termination "for Cause" shall be in addition to any other rights the Company or any Subsidiary or Affiliate may have under any other agreement with a grantee or at law or in equity. Any determination of whether a grantee's employment or consultancy/service relationship is (or is deemed to have been) terminated "for Cause" shall be made by the Administrator. If, subsequent to a grantee's voluntary termination of employment or consultancy/service relationship or involuntary termination of employment or consultancy/service relationship without Cause, it is discovered that the grantee's employment or consultancy/service relationship could have been terminated "for Cause", the Administrator may deem such grantee's employment or consultancy/service relationship to have been terminated "for Cause" upon such discovery and determination by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Code" shall mean the U.S. Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless otherwise specifically set forth in the applicable Award Agreement, "Disability" shall mean the grantee's being unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or the grantee's, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the grantee's employer. The existence of a Disability shall be determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Equity Restructuring" shall mean a non-reciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the shares of Common Stock (or other securities of the Company) or the share price thereof and causes a change in the per share value of the shares underlying outstanding Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Exercise Price" shall mean (i) in the case of options, the price specified in the applicable Award Agreement as the price-per-share at which such share can be purchased pursuant to the option or (ii) in the case of stock appreciation rights, the price specified in the applicable Award Agreement as the reference price-per-share used to calculate the amount payable to the grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The "Fair Market Value" of a share of Common Stock on any day shall be the closing price on the Nasdaq Stock Exchange, or such other primary stock exchange upon which such shares are then listed, as reported for such day in The Wall Street Journal (or, if not reported in The Wall Street Journal, such other reliable source as the Administrator may determine), or, if no such price is reported for such day, the average of the high bid and low asked price of Common Stock as reported for such day. If no quotation is made for the applicable day, the Fair Market Value of a share of Common Stock on such day shall be determined in the manner set forth in the preceding sentence for the next preceding trading day. Notwithstanding the foregoing, if there is no reported closing price or high bid/low asked price that satisfies the preceding sentences, or if otherwise deemed necessary or appropriate by the Administrator, the Fair Market Value of a share of Common Stock on any day shall be determined by such methods and procedures as shall be established from time to time by the Administrator. The "Fair Market Value" of any property other than Common Stock shall be the fair market value of such property determined by such methods and procedures as shall be established from time to time by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Unless otherwise specifically set forth in the applicable Award Agreement, in connection with a termination of employment or consultancy/service relationship, for purposes of the Plan, the term "Good Reason" shall be defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if there is an employment, severance, consulting, service, change in control or other agreement governing the relationship between the grantee, on the one hand, and the Company or a Subsidiary or an Affiliate, on the other hand, that contains a definition of "good reason" (or similar phrase or phrase of similar meaning, including "constructive termination" by the Company or its Subsidiary or Affiliate, as applicable), for purposes of the Plan, the term "Good Reason" shall mean those acts or omissions that would constitute "good reason" (or similar phrase or phrase of similar meaning) under such agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the preceding clause (i) is not applicable to the grantee, for purposes of the Plan, the term "Good Reason" shall mean any of the following subsequent to a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a material diminution in the grantee's base compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a material diminution in the grantee's authority, duties, or responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a relocation of the grantee's primary office location beyond a fifty (50) mile radius of the grantee's primary office prior to such relocation, unless the Company permits the grantee to work remotely; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) any other action or inaction that constitutes a material breach by the Company, a Subsidiary or an Affiliate (or the acquiror or successor thereof, as applicable) of the employment, severance, consulting, service, change in control or other agreement governing the relationship between the grantee, on the one hand, and the Company or a Subsidiary or an Affiliate (or the acquiror or successor thereof, as applicable), on the other hand;

<u>provided</u> that, for purposes of this clause (ii), in order for the grantee's termination of employment or consultancy/service relationship to be deemed to be for "Good Reason", (x) such termination must occur within six months of the initial existence of the applicable condition arising without the consent of the grantee, (y) the grantee must provide notice to the Company (or its acquiror or successor, as applicable) of the existence of the applicable condition no later than 90 days following the initial existence of the condition, and (z) the Company (or its acquiror or successor, as applicable) must have failed to remedy the condition within 30 days of its receipt of the notice from the grantee of the existence of such condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Person" shall mean any individual, firm, corporation, partnership, limited liability company, trust, incorporated or unincorporated association, joint venture, joint stock company, governmental body or other entity of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Repricing" shall mean (i) lowering the Exercise Price of an option or a stock appreciation right after it has been granted, (ii) the cancellation of an option or a stock appreciation right in exchange for cash or another Award when the Exercise Price exceeds the Fair Market Value of the underlying shares subject to the Award and (iii) any other action with respect to an option or a stock appreciation right that is treated as a repricing under (A) generally accepted accounting principles or (B) any applicable stock exchange rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "Subsidiary" shall mean any entity in which the Company, directly or indirectly, has a 50% or more equity interest.

**ARTICLE II.<br> Awards Under The Plan**

**2.1. Agreements Evidencing Awards**

Each Award granted under the Plan shall be evidenced by a written agreement or certificate ("Award Agreement"), which shall contain such provisions as the Administrator may deem necessary or desirable and which may, but need not, require execution or acknowledgment by a grantee. The Award shall be subject to all the terms and provisions of the Plan and the applicable Award Agreement.

**2.2. Grant of Stock Options and Stock Appreciation Rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Option Grants</u>. The Administrator may grant non-qualified stock options ("options") to purchase shares of Common Stock from the Company to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan. No option will be treated as an "incentive stock option" for purposes of the Code. It shall be the intent of the Administrator to not grant an Award in the form of stock options to any Key Person who is then subject to the requirements of Section 409A of the Code with respect to such Award if the Common Stock underlying such Award does not then qualify as "service recipient stock" for purposes of Section 409A. Furthermore, it shall be the intent of the Administrator, in granting options to Key Persons who are subject to Sections 409A and/or 457A of the Code, to structure such options so as to comply with the requirements of Sections 409A and/or 457A of the Code, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stock Appreciation Right Grants; Types of Stock Appreciation Rights</u>. The Administrator may grant stock appreciation rights to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan. The terms of a stock appreciation right may provide that it shall be automatically exercised for a payment upon the happening of a specified event that is outside the control of the grantee and that it shall not be otherwise exercisable. Stock appreciation rights may be granted in connection with all or any part of, or independently of, any option granted under the Plan. It shall be the intent of the Administrator to not grant an Award in the form of stock appreciation rights to any Key Person (i) who is then subject to the requirements of Section 409A of the Code with respect to such Award if the Common Stock underlying such Award does not then qualify as "service recipient stock" for purposes of Section 409A or (ii) if such Award would create adverse tax consequences for such Key Person under Section 457A of the Code. Furthermore, it shall be the intent of the Administrator, in granting stock appreciation rights to Key Persons who are subject to Sections 409A and/or 457A of the Code, to structure such stock appreciation rights so as to comply with the requirements of Sections 409A and/or 457A of the Code, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Nature of Stock Appreciation Rights</u>. The grantee of a stock appreciation right shall have the right, subject to the terms of the Plan and the applicable Award Agreement, to receive from the Company an amount equal to (i) the excess of the Fair Market Value of a share of Common Stock on the date of exercise of the stock appreciation right over the Exercise Price of the stock appreciation right, multiplied by (ii) the number of shares with respect to which the stock appreciation right is exercised. Each Award Agreement with respect to a stock appreciation right shall set forth the Exercise Price of such Award and, unless otherwise specifically provided in the Award Agreement, the Exercise Price of a stock appreciation right shall equal the Fair Market Value of a share of Common Stock on the date of grant; <u>provided</u> that in no event may such Exercise Price be less than the greater of (A) the Fair Market Value of a share of Common Stock on the date of grant and (B) the par value of a share of Common Stock. Payment upon exercise of a stock appreciation right shall be in cash or in shares of Common Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or any combination of both, all as the Administrator shall determine. Repricing of stock appreciation rights granted under the Plan shall not be permitted (1) to the extent such action could cause adverse tax consequences to the grantee under Section 409A or 457A of the Code, to the extent applicable, or (2) without prior stockholder approval, to the extent such approval would be required to be obtained by the Company pursuant to the applicable rules of any applicable stock exchange on which the Common Stock is then listed, and any action that would be deemed to result in a Repricing of a stock appreciation right shall be deemed null and void if it would cause such adverse tax consequences or if any requisite stockholder approval related thereto is not obtained prior to the effective time of such action. Upon the exercise of a stock appreciation right granted in connection with an option, the number of shares subject to the option shall be reduced by the number of shares with respect to which the stock appreciation right is exercised. Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number of shares subject to the stock appreciation right shall be reduced by the number of shares with respect to which the option is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Option Exercise Price</u>. Each Award Agreement with respect to an option shall set forth the Exercise Price of such Award and, unless otherwise specifically provided in the Award Agreement, the Exercise Price of an option shall equal the Fair Market Value of a share of Common Stock on the date of grant; <u>provided</u> that in no event may such Exercise Price be less than the greater of (i) the Fair Market Value of a share of Common Stock on the date of grant and (ii) the par value of a share of Common Stock. Repricing of options granted under the Plan shall not be permitted (1) to the extent such action could cause adverse tax consequences to the grantee under Section 409A or 457A of the Code, to the extent applicable, or (2) without prior stockholder approval, to the extent such approval would be required to be obtained by the Company pursuant to the applicable rules of any applicable stock exchange on which the Common Stock is then listed, and any action that would be deemed to result in a Repricing of an option shall be deemed null and void if it would cause such adverse tax consequences or if any requisite stockholder approval related thereto is not obtained prior to the effective time of such action.

**2.3. Exercise of Options and Stock Appreciation Rights**

Subject to the other provisions of this Article II and the Plan, each option and stock appreciation right granted under the Plan shall be exercisable as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Timing and Extent of Exercise</u>. Options and stock appreciation rights shall be exercisable at such times and under such conditions as determined by the Administrator and set forth in the corresponding Award Agreement, but in no event shall any portion of such Award be exercisable subsequent to the tenth anniversary of the date on which such Award was granted. Unless the applicable Award Agreement otherwise specifically provides, an option or stock appreciation right may be exercised from time to time as to all or part of the shares as to which such Award is then exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of Exercise</u>. An option or stock appreciation right shall be exercised by the filing of a written notice with the Company or the Company's designated exchange agent (the "Exchange Agent"), if any, on such form and in such manner as the Administrator shall prescribe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Exercise Price</u>. Any written notice of exercise of an option shall be accompanied by payment for the shares being purchased. Such payment shall be made: (i) by certified or official bank check (or the equivalent thereof acceptable to the Company or its Exchange Agent) for the full option Exercise Price; (ii) with the consent of the Administrator, which consent shall be given or withheld in the sole discretion of the Administrator, by delivery or withholding of shares of Common Stock having a Fair Market Value (determined as of the exercise date) equal to all or part of the option Exercise Price and a certified or official bank check (or the equivalent thereof acceptable to the Company or its Exchange Agent) for any remaining portion of the full option Exercise Price; or (iii) at the sole discretion of the Administrator and to the extent permitted by law, by such other provision, consistent with the terms of the Plan, as the Administrator may from time to time prescribe (whether directly or indirectly through the Exchange Agent), or by any combination of the foregoing payment methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delivery of Shares Upon Exercise</u>. Subject to Sections 3.2, 3.4 and 3.13, promptly after receiving payment of the full option Exercise Price, or after receiving notice of the exercise of a stock appreciation right for which the Administrator determines payment will be made partly or entirely in shares, the Company or its Exchange Agent shall (i) deliver to the grantee, or to such other Person as may then have the right to exercise the Award, a certificate or certificates for the shares of Common Stock for which the Award has been exercised or, in the case of stock appreciation rights, for which the Administrator determines will be made in shares or (ii) establish an account evidencing ownership of the stock in uncertificated form for the shares of Common Stock for which the Award has been exercised or, in the case of stock appreciation rights, for which the Administrator determines will be made in shares. If the method of payment employed upon an option exercise so requires, and if applicable law permits, an optionee may direct the Company or its Exchange Agent, as the case may be, to deliver the stock certificate(s) to the optionee's stockbroker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Stockholder Rights</u>. No grantee of an option or stock appreciation right (or other Person having the right to exercise such Award) shall have any of the rights of a stockholder of the Company with respect to shares subject to such Award until the issuance of a stock certificate to such Person for such shares or an account in the name of the grantee evidences ownership of stock in uncertificated form. Except as otherwise provided in Section 1.5(c), no adjustment shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate is issued or the date an account evidencing ownership of the stock in uncertificated form notes receipt of such stock.

**2.4. Termination of Employment/Service; Death Subsequent to a Termination of Employment/Service**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Rule</u>. Except to the extent otherwise provided in paragraphs (b), (c), (d) or (e) of this Section 2.4 or Section 3.5(b)(iii), a grantee who incurs a termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates may exercise any outstanding option or stock appreciation right on the following terms and conditions: (i) exercise may be made only to the extent that the grantee was entitled to exercise the Award on the date of termination of employment or consultancy/service relationship, as applicable; and (ii) exercise must occur within three months after termination of employment or consultancy/service relationship but in no event after the original expiration date of the Award; it being understood that then outstanding options and stock appreciation rights shall not be affected by a change of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates so long as the grantee continues to be a director, officer or employee of, or a consultant or service provider to (including actively providing services to the Company and its Subsidiaries and Affiliates through an entity that is itself a consultant or service provider to) the Company or any Subsidiary or Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination "for Cause"</u>. If a grantee incurs a termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates "for Cause", all options and stock appreciation rights not theretofore exercised (whether vested or unvested) shall immediately terminate upon such termination of employment or consultancy/service relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disability</u>. If a grantee incurs a termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates by reason of a Disability, then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such termination, remain exercisable for a period of one year after such termination; <u>provided</u> that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Termination of Employment/Service as a Result of Grantee's Death*. If a grantee incurs a termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates as the result of his or her death, then any outstanding option or stock appreciation right shall, to the extent exercisable at the time of such death, remain exercisable for a period of one year after such death; <u>provided</u> that in no event may such option or stock appreciation right be exercised following the original expiration date of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Restrictions on Exercise Following Death*. Any exercise of an Award following a grantee's death shall be made only by the grantee's executor or administrator or other duly appointed representative reasonably acceptable to the Administrator, unless the grantee's will specifically disposes of such Award, in which case such exercise shall be made only by the recipient of such specific disposition. If a grantee's personal representative or the recipient of a specific disposition under the grantee's will shall be entitled to exercise any Award pursuant to the preceding sentence, such representative or recipient shall be bound by all the terms and conditions of the Plan and the applicable Award Agreement which would have applied to the grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Administrator Discretion</u>. The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.4, subject to Section 3.1(c).

**2.5. Transferability of Options and Stock Appreciation Rights**

Except as otherwise specifically provided in this Plan or the applicable Award Agreement evidencing an option or stock appreciation right, during the lifetime of a grantee, each such Award granted to a grantee shall be exercisable only by the grantee, and no such Award may be sold, assigned, transferred, pledged or otherwise encumbered or disposed of other than by will or by the laws of descent and distribution. The Administrator may, in any applicable Award Agreement evidencing an option or stock appreciation right, permit a grantee to transfer all or some of the options or stock appreciation rights to (a) the grantee's spouse, children or grandchildren ("Immediate Family Members"), (b) a trust or trusts for the exclusive benefit of such Immediate Family Members or (c) other parties approved by the Administrator. Following any such transfer, any transferred options and stock appreciation rights shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer.

**2.6. Grant of Restricted Stock**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock Grants</u>. The Administrator may grant restricted shares of Common Stock to such Key Persons, in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions as the Administrator shall determine, subject to the provisions of the Plan. A grantee of a restricted stock Award shall have no rights with respect to such Award unless such grantee accepts the Award within such period as the Administrator shall specify by accepting delivery of a restricted stock Award Agreement in such form as the Administrator shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Issuance of Stock</u>. Promptly after a grantee accepts a restricted stock Award in accordance with Section 2.6(a), subject to Sections 3.2, 3.4 and 3.13, the Company or its Exchange Agent shall issue to the grantee a stock certificate or stock certificates for the shares of Common Stock covered by the Award or shall establish an account evidencing ownership of the stock in uncertificated form. Upon the issuance of such stock certificates, or establishment of such account, the grantee shall have the rights of a stockholder with respect to the restricted stock, subject to: (i) the nontransferability restrictions and forfeiture provisions described in the Plan (including paragraphs (d) and (e) of this Section 2.6); (ii) in the Administrator's sole discretion, a requirement, as set forth in the Award Agreement, that any dividends paid on such shares shall be held in escrow and, unless otherwise determined by the Administrator, shall remain forfeitable until all restrictions on such shares have lapsed; and (iii) any other restrictions and conditions contained in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Custody of Stock Certificate</u>. Unless the Administrator shall otherwise determine, any stock certificates issued evidencing shares of restricted stock shall remain in the possession of the Company (or such other custodian as may be designated by the Administrator) until such shares are free of any restrictions specified in the applicable Award Agreement. The Administrator may direct that such stock certificates bear a legend setting forth the applicable restrictions on transferability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Nontransferability</u>. Shares of restricted stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of prior to the lapsing of all restrictions thereon, except as otherwise specifically provided in this Plan or the applicable Award Agreement. The Administrator at the time of grant shall specify the date or dates (which may depend upon or be related to the attainment of performance goals and other conditions) on which the nontransferability of the restricted stock shall lapse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Consequence of Termination of Employment/Service</u>. Unless otherwise specifically set forth in the applicable Award Agreement, (i) a grantee's termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates for any reason other than death or Disability shall cause the immediate forfeiture of all shares of restricted stock that have not yet vested as of the date of such termination of employment or consultancy/service relationship and (ii) if a grantee incurs a termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates as the result of his or her death or Disability, all shares of restricted stock that have not yet vested as of the date of such termination shall immediately vest as of such date; it being understood that then outstanding restricted stock Awards shall not be affected by a change of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates so long as the grantee continues to be a director, officer or employee of, or a consultant or service provider to (including actively providing services to the Company and its Subsidiaries and Affiliates through an entity that is itself a consultant or service provider to) the Company or any Subsidiary or Affiliate. All dividends paid on shares forfeited under this Section 2.6(e) that have not theretofore been directly remitted to the grantee shall also be forfeited, whether by termination of any escrow arrangement under which such dividends are held or otherwise. The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.6(e), subject to Section 3.1(c).

**2.7. Grant of Restricted Stock Units**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Restricted Stock Unit Grants</u>. The Administrator may grant restricted stock units to such Key Persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, subject to the provisions of the Plan. A restricted stock unit granted under the Plan shall confer upon the grantee a right to receive from the Company, conditioned upon the occurrence of such vesting event as shall be determined by the Administrator and specified in the Award Agreement, the number of such grantee's restricted stock units that vest upon the occurrence of such vesting event multiplied by the Fair Market Value of a share of Common Stock on the date of vesting. Payment upon vesting of a restricted stock unit shall be in cash or in shares of Common Stock (valued at their Fair Market Value on the date of vesting) or both, all as the Administrator shall determine, and such payments shall be made to the grantee at such time as provided in the Award Agreement, which the Administrator shall intend to be (i) if Section 409A of the Code is applicable with respect to Awards granted to the grantee, within the period required by Section 409A such that it qualifies as a "short-term deferral" pursuant to Section 409A and the Treasury Regulations issued thereunder, unless the Administrator shall provide for deferral of the Award intended to comply with Section 409A, (ii) if Section 457A of the Code is applicable with respect to Awards granted to the grantee, within the period required by Section 457A(d)(3)(B) such that it qualifies for the exemption thereunder, or (iii) if Sections 409A and 457A of the Code are not applicable with respect to Awards granted to the grantee, at such time as determined by the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dividend Equivalents</u>. The Administrator may include in any Award Agreement with respect to a restricted stock unit a dividend equivalent right entitling the grantee to receive amounts equal to the ordinary dividends that would be paid, during the time such Award is outstanding and unvested, and/or, if payment of the vested Award is deferred, during the period of such deferral following such vesting event, on the shares of Common Stock underlying such Award if such shares were then outstanding. In the event such a provision is included in a Award Agreement, the Administrator shall determine whether such payments shall be (i) paid to the holder of the Award, as specified in the Award Agreement, either (A) at the same time as the underlying dividends are paid, regardless of the fact that the restricted stock unit has not theretofore vested, (B) at the time at which the Award's vesting event occurs, conditioned upon the occurrence of the vesting event, (C) once the Award has vested, at the same time as the underlying dividends are paid, regardless of the fact that payment of the vested restricted stock unit has been deferred, and/or (D) at the time at which the corresponding vested restricted stock units are paid, (ii) made in cash, shares of Common Stock or other property and (iii) subject to such other vesting and forfeiture provisions and other terms and conditions as the Administrator shall deem appropriate and as shall be set forth in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Stockholder Rights</u>. No grantee of a restricted stock unit shall have any of the rights of a stockholder of the Company with respect to such Award unless and until a stock certificate is issued with respect to such Award upon the vesting of such Award or an account in the name of the grantee evidences ownership of stock in uncertificated form (it being understood that the Administrator shall determine whether to pay any vested restricted stock unit in the form of cash or Company shares or both), which issuance shall be subject to Sections 3.2, 3.4 and 3.13. Except as otherwise provided in Section 1.5(c), no adjustment to any restricted stock unit shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate, if any, is issued or the date an account evidencing ownership of the stock in uncertificated form notes receipt of such stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Nontransferability</u>. No restricted stock unit granted under the Plan may be sold, assigned, transferred, pledged or otherwise encumbered or disposed of, except as otherwise specifically provided in this Plan or the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Consequence of Termination of Employment/Service</u>. Unless otherwise specifically set forth in the applicable Award Agreement, (i) a grantee's termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates for any reason other than death or Disability shall cause the immediate forfeiture of all restricted stock units that have not yet vested as of the date of such termination of employment or consultancy/service relationship and (ii) if a grantee incurs a termination of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates as the result of his or her death or Disability, all restricted stock units that have not yet vested as of the date of such termination shall immediately vest as of such date; it being understood that then outstanding restricted stock units shall not be affected by a change of employment or consultancy/service relationship with the Company and its Subsidiaries and Affiliates so long as the grantee continues to be a director, officer or employee of, or a consultant or service provider to (including actively providing services to the Company and its Subsidiaries and Affiliates through an entity that is itself a consultant or service provider to) the Company or any Subsidiary or Affiliate. All dividend equivalent rights on any restricted stock units forfeited under this Section 2.7(e) that have not theretofore been directly remitted to the grantee shall also be forfeited, whether by termination of any escrow arrangement under which such dividends are held or otherwise. The Administrator may, in writing, waive or modify the application of the foregoing provisions of this Section 2.7(e), subject to Section 3.1(c).

**2.8. Grant of Cash Awards**

The Administrator may grant Awards that are payable solely in cash to such Key Persons and in such amounts and subject to such terms, conditions, restrictions and forfeiture provisions as the Administrator shall determine and subject to the terms, conditions and restrictions in this Plan. Cash Awards may be granted in respect of past services or other valid consideration.

**2.9 Grant of Unrestricted Stock**

The Administrator may grant (or sell at a purchase price at least equal to par value) shares of Common Stock free of restrictions under the Plan to such Key Persons and in such amounts and subject to such terms, conditions and forfeiture provisions as the Administrator shall determine and subject to the terms, conditions and restrictions in this Plan. Shares may be granted or sold in respect of past services or other valid consideration.

**2.10.** **Other Equity-Based or Equity-Related Awards**

Subject to the provisions of the Plan (including, without limitation, Section 3.16), the Administrator shall have the sole and complete authority to grant to Key Persons other equity-based or equity-related Awards in such amounts and subject to such terms, conditions, restrictions and forfeiture provisions as the Administrator shall determine; <u>provided</u> that any such Awards must comply with applicable law and, to the extent deemed desirable by the Administrator, Rule 16b-3.

**2.11.** **Dividend Equivalents**

Subject to the provisions of the Plan (including, without limitation, Section 3.16), in the discretion of the Administrator, an Award, other than an option or stock appreciation right, may provide the Award recipient with dividends or dividend equivalents, payable in cash, shares, other securities, other Awards or other property, on a current or deferred basis, on such terms and conditions as may be determined by the Administrator, including, without limitation, payment directly to the Award recipient, withholding of such amounts by the Company subject to vesting of the Award, or reinvestment in additional shares, restricted shares or other Awards.

**ARTICLE III.<br> Miscellaneous**

**3.1. Amendment of the Plan; Modification of Awards**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment of the Plan</u>. The Board may from time to time suspend, discontinue, revise or amend the Plan in any respect whatsoever, except that no such suspension, discontinuation, revision or amendment shall materially impair any rights or materially increase any obligations under any Award theretofore made under the Plan without the consent of the grantee (or, upon the grantee's death, the Person having the rights to the Award). For purposes of this Section 3.1, any action of the Board or the Administrator that in any way alters or affects the tax treatment of any Award shall not be considered to materially impair any rights of any grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stockholder Approval Requirement</u>. If required by applicable rules or regulations of a national securities exchange or the SEC, the Company shall obtain stockholder approval with respect to any amendment to the Plan that (i) expands the types of Awards available under the Plan, (ii) materially increases the aggregate number of shares which may be issued under the Plan, except as permitted pursuant to Section 1.5(c), (iii) materially increases the benefits to participants under the Plan, including any material change to (A) permit, or that has the effect of, a Repricing of any outstanding Award, (B) reduce the price at which shares or options to purchase shares may be offered or (C) extend the duration of the Plan, or (iv) materially expands the class of Persons eligible to receive Awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Modification of Awards</u>. The Administrator may cancel any Award under the Plan. The Administrator also may amend any outstanding Award Agreement, including, without limitation, by amendment which would: (i) accelerate the time or times at which the Award becomes unrestricted, vested or may be exercised; (ii) waive or amend any goals, restrictions or conditions set forth in the Award Agreement; or (iii) waive or amend the operation of Section 2.4, 2.6(e) or 2.7(e) with respect to the termination of the Award upon termination of employment or consultancy/service relationship; <u>provided</u>, <u>however</u>, that no such amendment shall be made without stockholder approval if such approval is necessary to comply with any tax or regulatory requirement applicable to the Award. However, any such cancellation or amendment (other than an amendment pursuant to Section 1.5, 3.5 or 3.16) that materially impairs the rights or materially increases the obligations of a grantee under an outstanding Award shall be made only with the consent of the grantee (or, upon the grantee's death, the Person having the rights to the Award). In making any modification to an Award (<u>e.g.</u>, an amendment resulting in a direct or indirect reduction in the Exercise Price or a waiver or modification under Section 2.4(e), 2.6(e) or 2.7(e)), the Administrator may consider the implications, if any, of such modification under the Code with respect to Sections 409A and 457A of the Code in respect of Awards granted under the Plan to individuals subject to such provisions of the Code.

**3.2. Consent Requirement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Plan Action Without Required Consent</u>. If the Administrator shall at any time determine that any Consent (as defined below) is necessary or desirable as a condition of, or in connection with, the granting of any Award under the Plan, the issuance or purchase of shares or other rights thereunder, or the taking of any other action thereunder (each such action being hereinafter referred to as a "Plan Action"), then such Plan Action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consent Defined</u>. The term "Consent" as used herein with respect to any Plan Action means (i) any and all listings, registrations or qualifications in respect thereof upon any securities exchange or under any Federal, state or local law, rule or regulation, (ii) any and all written agreements and representations by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Administrator shall deem necessary or desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made and (iii) any and all consents, clearances and approvals in respect of a Plan Action by any governmental or other regulatory bodies or any other Person.

**3.3. Nonassignability; Successors**

Except as provided in Section 2.4(d), 2.5, 2.6(d) or 2.7(d), ****(a) no Award or right granted to any Person under the Plan or under any Award Agreement shall be assignable or transferable other than by will or by the laws of descent and distribution and (b) all rights granted under the Plan or any Award Agreement shall be exercisable during the life of the grantee only by the grantee or the grantee's legal representative or the grantee's permissible successors or assigns (as authorized and determined by the Administrator). The rights, duties and obligations under the Plan and any applicable Award Agreement shall be assignable by the Company to any successor entity, including any entity acquiring all, or substantially all, of the assets of the Company. All terms and conditions of the Plan and the applicable Award Agreements will be binding upon any permitted successors or assigns.

**3.4. Taxes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Withholding</u>. A grantee or other Award holder under the Plan shall be required to pay, in cash, to the Company, and the Company and its Subsidiaries and Affiliates shall have the right and are hereby authorized to withhold from any Award, from any cash or other payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to such grantee or other Award holder, the amount of any applicable withholding taxes in respect of an Award, its grant, its exercise, its vesting, or any payment or transfer under an Award or under the Plan, up to the maximum statutory rates in the applicable jurisdiction with respect to the Award, as determined by the Company, and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for payment of such taxes. Whenever shares of Common Stock are to be delivered pursuant to an Award under the Plan, with the approval of the Administrator, which the Administrator shall have sole discretion whether or not to give, the grantee may satisfy the foregoing condition by electing to have the Company withhold from delivery shares having a value equal to the amount of the applicable withholding taxes as determined in accordance with this Section 3.4(a). Such shares shall be valued at their Fair Market Value as of the date on which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash. Such a withholding election may be made with respect to all or any portion of the shares to be delivered pursuant to an Award as may be approved by the Administrator in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Liability for Taxes</u>. Grantees and holders of Awards are solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with Awards (including, without limitation, any taxes arising under Sections 409A and 457A of the Code) and the Company shall not have any obligation to indemnify or otherwise hold any such Person harmless from any or all such taxes. The Administrator shall have the discretion to organize any deferral program, to require deferral election forms, and to grant or, notwithstanding anything to the contrary in the Plan or any Award Agreement, to unilaterally modify any Award in a manner that (i) conforms with the requirements of Sections 409A and 457A of the Code (to the extent applicable), (ii) voids any participant election to the extent it would violate Section 409A or 457A of the Code (to the extent applicable) and (iii) for any distribution event or election that could be expected to violate Section 409A of the Code (to the extent applicable), make the distribution only upon the earliest of the first to occur of a "permissible distribution event" within the meaning of Section 409A of the Code or a distribution event that the participant elects in accordance with Section 409A of the Code, all in such a way so as to retain, to the maximum extent feasible, the originally intended economic and tax benefits under the Award. The Administrator shall have the sole discretion to interpret the requirements of the Code, including, without limitation, Sections 409A and 457A, for purposes of the Plan and all Awards.

**3.5. Change in Control**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Change in Control Defined</u>. Unless otherwise specifically set forth in the applicable Award Agreement, for purposes of the Plan, "Change in Control" shall mean the occurrence of any of the following that occurs after the adoption of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any "person" (as defined in Section 13(d)(3) of the 1934 Act), company or other entity acquires "beneficial ownership" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company; provided, however, that no Change in Control shall have occurred in the event of such an acquisition by (A) the Company, (B) any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary or Affiliate, (C) any company or other entity owned, directly or indirectly, by the holders of the voting stock ordinarily entitled to elect directors of the Company in substantially the same proportions as their ownership of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company immediately prior to such acquisition, or (D) Valentios ("Eddie") Valentis and/or Maritime Investors Corp. (each, a "Significant Stockholder") and/or any Person directly or indirectly "controlling" or "controlled by" or "under common control with" (as defined in Rule 12b-2 under the 1934 Act) a Significant Stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the sale of all or substantially all the Company's assets in one or more related transactions to any "person" (as defined in Section 13(d)(3) of the 1934 Act), company or other entity; <u>provided</u>, <u>however</u>, that no Change in Control shall have occurred in the event of such a sale to (A) a Subsidiary which does not involve a material change in the equity holdings of the Company, (B) an entity (the "Acquiring Entity") which has acquired all or substantially all the Company's assets if, immediately following such sale, 50% or more of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Acquiring Entity (or, if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Acquiring Entity) is beneficially owned by the holders of the voting stock ordinarily entitled to elect directors of the Company immediately prior to such sale in substantially the same proportions as the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company immediately prior to such sale, or (C) one or more of the Significant Stockholders and/or Persons directly or indirectly "controlling" or "controlled by" or "under common control with" (as defined in Rule 12b-2 under the 1934 Act) a Significant Stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any merger, consolidation, reorganization or similar event of the Company; <u>provided</u>, <u>however</u>, that no Change in Control shall have occurred in the event 50% or more of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the surviving entity (or, if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of more than 50% of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the surviving entity) is beneficially owned by the holders of the voting stock ordinarily entitled to elect directors of the Company immediately prior to such event in substantially the same proportions as the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company immediately prior to such event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the approval by the Company's stockholders of a plan of complete liquidation or dissolution of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) during any period of 12 consecutive calendar months, individuals:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) who were directors of the Company on the first day of such period, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) whose election or nomination for election to the Board was recommended or approved by at least a majority of the directors then still in office who were directors of the Company on the first day of such period, or whose election or nomination for election were so approved,

shall cease to constitute a majority of the Board.

Notwithstanding the foregoing, unless otherwise specifically set forth in the applicable Award Agreement, for each Award subject to Section 409A of the Code, a Change in Control shall be deemed to have occurred under this Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code, <u>provided</u> that such limitation shall apply to such Award only to the extent necessary to avoid adverse tax effects under Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Effect of a Change in Control</u>. Unless the Administrator specifically provides otherwise in an Award Agreement, upon the occurrence of a Change in Control:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notwithstanding any other provision of this Plan, any Award then outstanding shall become fully vested and any forfeiture provisions thereon imposed pursuant to the Plan and the applicable Award Agreement shall lapse and any Award in the form of an option or stock appreciation right shall be immediately exercisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent permitted by law and not otherwise limited by the terms of the Plan, the Administrator may amend any Award Agreement in such manner as it deems appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a grantee who incurs a termination of employment or consultancy/service relationship for any reason, other than a termination "for Cause", concurrent with or within one year following the Change in Control may exercise any outstanding option or stock appreciation right, but only to the extent that the grantee was entitled to exercise the Award on the date of his or her termination of employment or consultancy/service relationship, until the earlier of (A) the original expiration date of the Award and (B) the later of (x) the date provided for under the terms of Section 2.4 without reference to this Section 3.5(b)(iii) and (y) the first anniversary of the grantee's termination of employment or consultancy/service relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Miscellaneous</u>. Whenever deemed appropriate by the Administrator, any action referred to in paragraph (b)(ii) of this Section 3.5 may be made conditional upon the consummation of the applicable Change in Control transaction.

**3.6. Operation and Conduct of Business**

Nothing in the Plan or any Award Agreement shall be construed as limiting or preventing the Company or any Subsidiary or Affiliate from taking any action with respect to the operation and conduct of its business that it deems appropriate or in its best interests, including any or all adjustments, recapitalizations, reorganizations, exchanges or other changes in the capital structure of the Company or any Subsidiary or Affiliate, any merger or consolidation of the Company or any Subsidiary or Affiliate, any issuance of Company shares or other securities or subscription rights, any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or other securities or rights thereof, any dissolution or liquidation of the Company or any Subsidiary or Affiliate, any sale or transfer of all or any part of the assets or business of the Company or any Subsidiary or Affiliate, or any other corporate act or proceeding, whether of a similar character or otherwise.

**3.7. No Rights to Awards**

No Key Person or other Person shall have any claim to be granted any Award under the Plan.

**3.8. Right of Discharge Reserved; Service Relationship**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Nothing in the Plan or in any Award Agreement shall confer upon any grantee the right to continue his or her employment with the Company or any Subsidiary or Affiliate, his or her consultancy/service relationship with the Company or any Subsidiary or Affiliate, or his or her position as an officer or director of the Company or any Subsidiary or Affiliate, or affect any right that the Company or any Subsidiary or Affiliate may have to terminate such employment or consultancy/service relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the avoidance of doubt, for purposes of the Plan, reference to (i) a service relationship shall include service as a director or officer and (ii) a termination of a service relationship shall include a removal or resignation as a director or officer.

**3.9. Non-Uniform Determinations**

The Administrator's determinations and the treatment of Key Persons and grantees and their beneficiaries under the Plan need not be uniform and may be made and determined by the Administrator selectively among Persons who receive, or who are eligible to receive, Awards under the Plan (whether or not such Persons are similarly situated). Without limiting the generality of the foregoing, the Administrator shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to (a) the Persons to receive Awards under the Plan, (b) the types of Awards granted under the Plan, (c) the number of shares to be covered by, or with respect to which payments, rights or other matters are to be calculated with respect to, Awards and (d) the terms and conditions of Awards.

**3.10. Other Payments or Awards**

Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company or any Subsidiary from making any award or payment to any Person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.

**3.11. Headings**

Any section, subsection, paragraph or other subdivision headings contained herein are for the purpose of convenience only and are not intended to expand, limit or otherwise define the contents of such section, subsection, paragraph or subdivision.

**3.12. Effective Date and Term of Plan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adoption; Stockholder Approval</u>. The Plan was adopted by the Board on November 19, 2025. The Board may, but need not, make the granting of any Awards under the Plan subject to the approval of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination of Plan</u>. The Board may terminate the Plan at any time. All Awards made under the Plan prior to its termination shall remain in effect until such Awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable Award Agreements. No Awards may be granted under the Plan following the tenth anniversary of the date on which the Plan was adopted by the Board.

**3.13. Restriction on Issuance of Stock Pursuant to Awards**

The Company shall not permit any shares of Common Stock to be issued pursuant to Awards granted under the Plan unless such shares of Common Stock are fully paid and non-assessable under applicable law. Notwithstanding anything to the contrary in the Plan or any Award Agreement, at the time of the exercise of any Award, at the time of vesting of any Award, at the time of payment of shares of Common Stock in exchange for, or in cancellation of, any Award, or at the time of grant of any unrestricted shares under the Plan, the Company and the Administrator may, if either shall deem it necessary or advisable for any reason, require the holder of an Award (a) to represent in writing to the Company that it is the Award holder's then-intention to acquire the shares with respect to which the Award is granted for investment and not with a view to the distribution thereof or (b) to postpone the date of exercise until such time as the Company has available for delivery to the Award holder a prospectus meeting the requirements of all applicable securities laws; and no shares ****shall be issued or transferred in connection with any Award unless and until all legal requirements applicable to the issuance or transfer of such shares have been complied with to the satisfaction of the Company and the Administrator. The Company and the Administrator shall have the right to condition any issuance of shares to any Award holder hereunder on such Person's undertaking in writing to comply with such restrictions on the subsequent transfer of such shares as the Company or the Administrator shall deem necessary or advisable as a result of any applicable law, regulation or official interpretation thereof, and all share certificates delivered under the Plan shall be subject to such stop transfer orders and other restrictions as the Company or the Administrator may deem advisable under the Plan, the applicable Award Agreement or the rules, regulations and other requirements of the SEC, any stock exchange upon which such shares are listed, and any applicable securities or other laws, and certificates representing such shares may contain a legend to reflect any such restrictions. The Administrator may refuse to issue or transfer any shares or other consideration under an Award if it determines that the issuance or transfer of such shares or other consideration might violate any applicable law or regulation or entitle the Company to recover the same under Section 16(b) of the 1934 Act, to the extent applicable, and any payment tendered to the Company by a grantee or other Award holder in connection with the exercise of such Award shall be promptly refunded to the relevant grantee or other Award holder. Without limiting the generality of the foregoing, no Award granted under the Plan shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding, unless and until the Administrator has determined that any such offer, if made, would be in compliance with all applicable requirements of any applicable securities laws.

**3.14. Requirement of Notification of Election Under Section 83(b) of the Code**

If an Award recipient, in connection with the acquisition of Company shares under the Plan, makes an election under Section 83(b) of the Code (to include in gross income in the year of transfer the amounts specified in Section 83(b) of the Code), the grantee shall notify the Administrator of such election within ten days of filing notice of the election with the U.S. Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code.

**3.15. Severability**

If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Administrator, such provision shall be construed or deemed amended to conform to the applicable laws or, if it cannot be construed or deemed amended without, in the determination of the Administrator, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

**3.16. Sections 409A and 457A**

To the extent applicable, the Plan and Award Agreements shall be interpreted in accordance with Sections 409A and 457A of the Code and U.S. Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of the Plan or any applicable Award Agreement to the contrary, in the event that the Administrator determines that any Award may be subject to Section 409A or 457A of the Code, the Administrator may adopt such amendments to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (i) exempt the Plan and Award from Sections 409A and 457A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Sections 409A and 457A of the Code and related U.S. Department of Treasury guidance and thereby avoid the application of penalty taxes under Sections 409A and 457A of the Code, all in such a way so as to retain, to the maximum extent feasible, the originally intended economic and tax benefits under the Award.

**3.17. Forfeiture; Clawback**

The Administrator may, in its sole discretion, specify in the applicable Award Agreement that any realized gain with respect to options or stock appreciation rights and any realized value with respect to other Awards shall be subject to forfeiture or clawback, in the event of (a) a grantee's breach of any non-competition, non-solicitation, confidentiality, general release, or other restrictive covenant (including any covenant not to sue) with respect to the Company or any Subsidiary or Affiliate, (b) a grantee's breach of any employment or consulting agreement with the Company or any Subsidiary or Affiliate, (c) a grantee's termination of employment or consultancy/service relationship for Cause or (d) a financial restatement that reduces the amount of compensation under the Plan previously awarded to a grantee that would have been earned had results been properly reported. Notwithstanding anything to the contrary in this Plan or any Award Agreement, all Awards granted under the Plan shall be subject to clawback to the extent required to comply with applicable law, the applicable rules of any stock exchange on which the Company's shares are then traded, and/or any clawback policy adopted by the Company in connection with any such applicable law or any such applicable stock exchange rules, including, without limitation, in connection with an accounting restatement and/or, to the extent applicable, Rule 10D-1 of the 1934 Act.

**3.18. No Trust or Fund Created**

Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Subsidiary or Affiliate and an Award recipient or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Subsidiary or Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or its Subsidiary or Affiliate.

**3.19. No Fractional Shares**

No fractional shares shall be issued or delivered pursuant to the Plan or any Award, and the Administrator shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional shares or whether such fractional shares or any rights thereto shall be canceled, terminated, or otherwise eliminated.

**3.20. Governing Law**

The Plan will be construed and administered in accordance with the laws of the State of New York, without giving effect to principles of conflict of laws.

## Exhibit 4.22

**Exhibit 4.22**

**<u>Private & confidential</u>**

<u>Dated: …17<sup>th</sup>….. December, 2025</u>

**ALPHA BANK S.A.**

- and -

**SEVENTHONE CORP.**

**LOAN AGREEMENT**

for a secured floating interest rate

loan facility of US$14,750,000

![](ex4-22_001.jpg)

<u>**TABLE OF CONTENTS**</u>

---

| | | |
|:---|:---|:---|
| <u>CLAUSE</u> | <u>HEADINGS</u> | <u>PAGE</u> |
| 1. | PURPOSE, DEFINITIONS AND INTERPRETATION | 1 |
| 2. | THE LOAN | 24 |
| 3. | INTEREST | 26 |
| 4. | REPAYMENT - PREPAYMENT | 32 |
| 5. | PAYMENTS, TAXES, LOAN ACCOUNT AND COMPUTATION | 34 |
| 6. | REPRESENTATIONS AND WARRANTIES | 37 |
| 7. | CONDITIONS PRECEDENT | 43 |
| 8. | UNDERTAKINGS | 48 |
| 9. | EVENTS OF DEFAULT | 61 |
| 10. | INDEMNITIES - EXPENSES – FEES | 66 |
| 11. | SECURITY, APPLICATION, AND SET-OFF | 72 |
| 12. | UNLAWFULNESS, INCREASED COSTS AND BAIL-IN | 74 |
| 13. | OPERATING ACCOUNT | 76 |
| 14. | ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE | 79 |
| 15. | MISCELLANEOUS | 81 |
| 16. | NOTICES AND COMMUNICATIONS | 85 |
| 17. | LAW AND JURISDICTION | 86 |

---

SCHEDULE 1: Form of Drawdown Notice

SCHEDULE 2: Form of Insurance Letter

THIS AGREEMENT is dated the …….. day of December, 2025 made BETWEEN:

**1.** **ALPHA BANK S.A.**,
 a banking société anonyme incorporated in and pursuant to the laws of the Hellenic
 Republic with its head office at 40 Stadiou Street, Athens GR 102 52, Greece, acting, except
 as otherwise herein provided, through its office at 93 Akti Miaouli, Piraeus, Greece (hereinafter
 called the  ***"Lender"*** , which expression shall include its successors
 and assigns); and

**2.** **SEVENTHONE CORP.**, a corporation duly incorporated in the Republic of the Marshall Islands, having
 its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
 Marshall Islands MH 96960 (hereinafter called the  ***"Borrower"*** , which
 expression shall include its successors)

AND IT IS HEREBY AGREED as follows:

**1.** **PURPOSE, DEFINITIONS AND INTERPRETATION** 

**1.1** **Amount and Purpose** 

This Agreement sets out the terms and conditions upon and subject to which the Lender agrees to make available to the Borrower a loan facility of up to the lesser of (a) Dollars Fourteen million seven hundred fifty thousand ($14,750,000) and (b) 50% of the Market Value of the Vessel, such loan facility to be made available by way of one (1) Advance, for the purpose of (a) refinancing the Existing Loan Indebtedness secured on (inter alia) the Vessel and (b) providing liquidity to the Borrower for general corporate purposes .

**1.2** **Definitions** 

Subject to Clauses 1.3 *(<u>Interpretation</u>)* and Clause 1.4 *(<u>Construction of certain terms</u>)*, in this Agreement (unless otherwise defined in the relevant Finance Document and unless the context otherwise requires) and the other Finance Documents each term or expression defined in the recital of the parties and in this Clause shall have the meaning given to it in the recital of the parties and in this Clause:

***"Accounts"*** means, together, the Operating Account and any Cash Collateral Account, and "***Account***" means any of them as the context may require;

***"Account Pledge Agreement"*** means an agreement to be entered into between the Borrower and the Lender for the creation of a pledge over the Operating Account in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Applicable Accounting Principles"*** means GAAP or IFRS and practices consistently applied;

***"Applicable Margin"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 respect of the Loan less any Cash-collateralised part of the Loan, one point nine zero per
 cent. (1.90%) per annum (the **" *Margin A* "**); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 respect of any Cash-collateralised part of the Loan, zero point seven five per cent. (0.75%)
 per annum (the **" *Margin B* "**);

***"Advance"*** means each borrowing of a portion of the Commitment by the Borrower or (as the context may require) the principal amount of such borrowing;

***"Affiliate"*** means, in relation to any person, a subsidiary of that person or a parent company of that person or any other subsidiary of that parent company;

 

***"Approved Auditor"*** means any of Ernst & Young, KPMG, PriceWaterhouse Coopers, Deloitte, Grant Thornton or any other independent and reputable auditor having requisite experience proposed by the Borrower and acceptable to the Lender and, ***"Approved Auditors"*** means any or all of them, as the context may require;

"***Approved Commercial Manager***" means for the time being Pyxis Maritime Corp., a company lawfully incorporated in, and validly existing under the laws of the Republic of the Marshall Islands, and having a licenced office established in Greece pursuant to the Greek laws 378/68, 27/75, 2234/94, 3752/09 and 4150/13 (as amended and in force at the date hereof) at 59 K. Karamanli Street, Maroussi 15125, Greece or any other person appointed by the Borrower with the consent of the Lender, as the commercial manager of the Vessel, and includes its successors in title;

***"Approved Managers"*** means together the Approved Commercial Manager and the Approved Technical Manager and "Approved Manager" means any of them, as the context may require;

***"Approved Manager's Undertaking"*** means a letter of undertaking including (*inter alia*) an assignment of the relevant Approved Manager's rights, title and interest in the Insurances of the Vessel executed or to be executed by that Approved Manager in favour of the Lender agreeing certain matters in relation to that Approved Manager serving as commercial or, as the case may be, technical manager of the Vessel and subordinating its rights against the Vessel and the Borrower to the rights of the Lender under the Finance Documents, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented (together, the ***"Approved Managers' Undertakings"***)

 ****

***"Approved Shipbrokers"*** means, Fearnleys A/S, Clarksons Platou Hellas Ltd., Intermodal Shipbrokers Co. and Allied Shipbroking Inc. and any other first class independent firm of internationally known shipbrokers proposed by the Borrower and acceptable to the Lender, and ***"Approved Shipbroker"*** means any of them;

***"Approved Technical Manager"*** means for the time being International Tanker Management Ltd., a company lawfully incorporated in, and validly existing under the laws of Bermuda, and having its registered office at Victoria Place, 31 Victoria Street, Hamilton, HM10, Bermuda, represented by its branch office at 809 Executive Heights (Damac Bldg.) P.O. Box 24415, Tecom, Dubai, U.A.E or any other person appointed by the Borrower with the consent of the Lender, as the technical manager of the Vessel, and includes its successors in title;

***"Article 55 BRRD"*** means Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms;

***"Assignable Charterparty"*** means any time or bareboat charterparty, consecutive voyage charter or contract of affreightment or related document in respect of the employment of the Vessel having a fixed duration of more than 12 months (excluding any optional extensions) and any guarantee of the obligations of the charterer under such charter in respect of the Vessel, whether now existing or hereinafter entered or to be entered into by the Borrower or any person, firm or company on its behalf and a charterer, at a daily rate and on terms and conditions acceptable to the Lender (and shall include any addenda thereto);

***"Assignee"*** has the meaning ascribed thereto in Clause 14.3 *(<u>Assignment by the Lender</u>)*;

***"Availability Period"*** means the period starting on the date hereof and ending on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 19<sup>th</sup> day of December, 2025 or until such later date as the Lender may agree in
 writing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on
 such earlier date (if any): (i) on which the whole Commitment has been advanced by the Lender
 to the Borrower, or (ii) on which the Commitment is reduced to zero pursuant to Clauses 3.6 *(<u>Market disruption</u>)*, 9.2 *(<u>Consequences of Default – Acceleration</u>)*,
 12.1 *(<u>Unlawfulness</u>)* or any other Clause of this Agreement;

***"Bail-In Action"*** means the exercise of any Write-down and Conversion Powers;

***"Bail-In Legislation"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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; and

(b) in
 relation to any other state, any analogous law or regulation from time to time which requires
 contractual recognition of any Write-down and Conversion Powers contained in that law or
 regulation;

**"*Balloon Instalment*"** means the part of the Loan amounting to Dollars Five million seven hundred fifty thousand ($5,750,000);

***"Basel II Accord"*** means 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;

***"Basel II Approach"*** means either the Standardised Approach or the relevant Internal Ratings Based Approach (each as defined in the Basel II Accord) adopted by the Lender (or its holding company) for the purposes of implementing or complying with the Basel II Accord;

***"Basel II Regulation"*** means (a) any law or regulation implementing the Basel II Accord (including the relevant provisions of CRD IV and CRR) to the extent only such law or regulation re-enacts and/or implements the requirement of the Basel II Accord but excluding any provision of such law or regulation implementing the Basel III Accord or (b) any Basel II Approach adopted by the Lender;

***"Basel III Accord"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 agreements on capital requirements, 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;

***"Basel III Regulation"*** means any law or regulation implementing the Basel III Accord save and to the extent that it re-enacts a Basel II Regulation;

***"Beneficial Shareholders"*** means in respect of each of the Borrower and the Corporate Guarantor, the person or persons disclosed to the Lender and which is/are confirmed in writing to the Lender as being the ultimate legal and beneficial owner or owners (either directly and/or through companies beneficially owned by such person or persons or members of his/her direct family and/or trusts or foundations of which such person or persons or members of his/her direct family are legal and beneficial owners) of 25% of the shares and the voting rights attaching to those shares and the legal ownership of those shares in each of the Borrower and the Corporate Guarantor;

***"Borrower"*** means the Borrower as specified in the beginning of this Agreement;

"***Break Costs***" has the meaning given in Clause 10.3 (*<u>Break Costs</u>*);

***"Business Day"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 day (other than a Saturday or Sunday) on which banks are open for general business in Athens
 and Piraeus, in New York and in each other country or place in or at which an act is required
 to be done under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (in
 relation to the fixing of any interest rate which is required to be determined under this
 Agreement or any Finance Document), a US Government Securities Business Day;

***"Cash-Collateral Account"*** means an account or the accounts opened or to be opened and maintained in the name of either Cash Collateral Account Holder with the branch of the Lender at 93 Akti Miaouli, Piraeus, Greece, or with any other branch or office of the Lender (either in Greece or abroad), as may be required by and from time to time be determined by the Lender at its sole discretion and notified to the relevant Cash Collateral Account Holder and shall include any sub-accounts or call accounts opened under the same designation or any revised designation or number from time to time notified by the Lender to the relevant Cash Collateral Account Holder, to which the Cash-Collateral Amount shall be deposited and pledged in favour of the Lender;

***"Cash Collateral Account Holder"*** means either the Borrower or the Corporate Guarantor;

 ****

***"Cash-Collateral Account Pledge Agreement"*** means the first priority pledge executed or (as the context may require) to be executed by the relevant Cash Collateral Account Holder for the creation of a pledge in favour of the Lender over the Cash-Collateral Account, in such form as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Cash Collateral Amount"*** means the aggregate amount which is deposited in the Cash Collateral Account and which may be be equal to or exceeding $1,000,000 (on top of the Pledged Deposit) or, if higher, in $1,000,000 increments up to the amount of the Loan outstanding at the relevant time, which shall remain pledged in favour of the Lender but may be withdrawn pursuant to and subject only to the provisions of Clause 3.10 *(<u>Cash Collateral</u>)*;

***"Cash-collateralised part of the Loan****"* means the part of the Loan, which corresponds to the Cash-Collateral Amount deposited in the Cash-Collateral Account and fixed for a period at least equal to the current Interest Period for the Loan and on which interest shall accrue at (a) the rate per annum determined by the Lender to be the aggregate of (i) the Margin B and (ii) the Reference Rate for that Interest Period, or (b) in the case of paragraph (b)(ii) of Clause 3.10 *(<u>Cash Collateral</u>)* at a rate per annum equal to Margin B only, <u>provided always</u> that the relevant Cash Collateral Account Holder shall be permitted to make use of the Cash-Collateral Amount voluntarily as provided in paragraph (c) of Clause 3.10 *(<u>Cash Collateral</u>)*;

 

***"Charterparty Assignment"*** means an assignment of the rights of the Borrower under any Assignable Charterparty and any guarantee of such Assignable Charterparty executed or to be executed by the Borrower in favour of the Lender and the acknowledgement of notice of the assignment in respect of such Assignable Charterparty to be given (on best effort basis by the Borrower) in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented, and ***"Charterparty Assignments"*** means all of them;

***"Classification"*** means in respect of the Vessel, the classification referred to in the Mortgage with the Classification Society or such other Classification Society as the Lender shall, at the request of the Borrower, have agreed in writing shall be treated as the Classification Society for the purposes of the Finance Documents;

***"Classification Society"*** means such classification society which is a member of IACS and which the Lender shall, at the request of the Borrower, have agreed in writing to be treated as the Classification Society for the purposes of the Finance Documents;

***"Commitment"*** means the amount which the Lender has agreed to lend to the Borrower under Clause 2.1 *(<u>Commitment to Lend</u>)* as reduced pursuant to any relevant term of this Agreement;

***"Commitment Letter"*** means the Commitment Letter dated 10 November, 2025 addressed by the Lender to the Borrower and duly accepted by it and the Corporate Guarantor and shall include any amendments or addenda thereto;

***"Compulsory Acquisition"*** means requisition for title or other compulsory acquisition, requisition, appropriation, expropriation, deprivation, forfeiture or confiscation for any reason of the Vessel, whether for full or part consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any Government Entity or other competent authority, whether de jure or de facto, but shall exclude requisition for use or hire not involving requisition of title;

***"Corporate Guarantee"*** means the irrevocable and unconditional guarantee executed or (as the context may require) to be executed by the Corporate Guarantor as a security for the Outstanding Indebtedness and any and all other obligations of the Borrower under this Agreement and the Security Documents, in form and substance satisfactory to the Lender as the same may from time to time be amended and/or supplemented;

***"Corporate Guarantor"*** means **Pyxis Tankers Inc.**, a corporation lawfully incorporated in, and validly existing under the laws of the Republic of the Marshall Islands and/or any other person nominated by the Borrower and acceptable to the Lender which may give a Corporate Guarantee, and includes its successors in title;

***"CRD IV"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Directive
 2013/36/EU of the European Parliament and of the Council 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 Directives 2006/48/EC and 2006/49/EC,
 as amended, supplemented or restated; and

(b) any
 other law or regulation which implements Basel III;

***"CRR"*** means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No. 648/2012, as amended, supplemented or restated;

 ****

***"Default"*** means any Event of Default or any event which with the giving of notice or lapse of time or the satisfaction of any other condition (or any combination thereof) would constitute an Event of Default;

***"Default Rate"*** means that rate of interest per annum which is determined in accordance with the provisions of Clause 3.4 *(<u>Default Interest</u>)*;

***"DOC"*** means a document of compliance issued to an Operator in accordance with rule 13 of the ISM Code;

***"Dollars"*** (and the sign ***"$"***) means the lawful currency for the time being of the United States of America;

***"Drawdown Date"*** means the date, being a Business Day, requested by the Borrower for the Loan to be made available, or (as the context requires) the date on which the Loan is actually made available;

***"Drawdown Notice"*** means a notice substantially in the terms of Schedule 1 (*Form of Drawdown Notice*) (or in any other form which the Lender approves);

***"Earnings"*** means all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Borrower and which arise out of the use or operation of the Vessel, including (but not limited to), all freight, hire and passage moneys, compensation payable to the Borrower in the event of requisition of the Vessel for hire, remuneration for salvage and towage services, demurrage and detention moneys, contributions of any nature whatsoever in respect of general average, damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of the Vessel and any other earnings whatsoever due or to become due to the Borrower in respect of the Vessel and all sums recoverable under the Insurances in respect of loss of Earnings and includes, if and whenever the Vessel is employed on terms whereby any and all such moneys as aforesaid are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing agreement which is attributable to the Vessel;

***"EEA Member Country"*** means any member state of the European Union, Iceland, Liechtenstein and Norway;

***"Environmental Affiliate"*** means any agent or employee of the Borrower or any other Relevant Party or any person having a contractual relationship with the Borrower or any other Relevant Party in connection with any Relevant Ship or her operation or the carriage of cargo thereon;

***"Environmental Approval"*** means any consent, authorisation, licence or approval of any governmental or public body or authorities or courts applicable to any Relevant Ship or her operation or the carriage of cargo thereon and/or passengers therein and/or provisions of goods and/or services on or from any Relevant Ship required under any Environmental Law;

***"Environmental Claim"*** means:

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

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

and *"**claim**"* means a claim for damages, compensation, fines, penalties or any other payment of any kind which exceeds $600,000 (or the equivalent in any other currency) per incident;

***"Environmental Incident"*** means (i) any release of Material of Environmental Concern from the Vessel, (ii) any incident in which Material of Environmental Concern is released from a vessel other than the Vessel and which involves collision between the Vessel and such other vessel or some other incident of navigation or operation, in either case, where the Vessel, the Borrower or the Approved Manager is actually at fault or otherwise liable (in whole or in part) or (iii) any other incident in which Material of Environmental Concern is released from a vessel other than the Vessel and where the Vessel is actually or potentially liable to be arrested as a result and/or where the Borrower or the Approved Manager is actually at fault or otherwise liable to any legal or administrative action;

***"Environmental Laws"*** means all national, international and state laws, rules, regulations, treaties and conventions applicable to any Relevant Ship pertaining to the pollution or protection of human health or the environment including, without limitation, the carriage of Materials of Environmental Concern and actual or threatened emissions, spills, releases or discharges of Materials of Environmental Concern and actual or threatened emissions, spills, releases or discharges of Materials of Environmental Concern from any Relevant Ship (including, without limitation, the United States Oil Pollution Act of 1990 and any comparable laws of the individual States of the United States of America);

***"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 event or circumstance set out in Clause 9 *(<u>Events</u>)* or described as such in any of the Finance Documents;

***"Existing Loan Agreement"*** means the loan agreement dated 8 July, 2020 and made between (1) the Lender, as lender, and (2) the Borrower, as borrower, in respect of a term loan facility of originally up to US$15,250,000 as amended from time to time, the outstanding principal amount whereof is $8,950,000;

***"Existing Security Interests"*** means any Security Interests created to secure the Existing Loan Indebtedness including (inter alia) the mortgage registered on the Vessel;

***"Existing Loan Indebtedness"*** means, at the Refinancing Date, the principal amount of the loan owed by the Borrower under the Existing Loan Agreement and which should be paid to the Lender on that date;

***"Expenses"*** means the aggregate at any relevant time (to the extent that the same have not been received or recovered by the Lender) of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 losses, liabilities, costs, charges, expenses, damages and outgoings of whatever nature,
 (including, without limitation, Taxes, repair costs, registration fees and insurance premiums,
 crew wages, repatriation expenses and seamen's pension fund dues) suffered, incurred,
 charged to or paid or committed to be paid by the Lender in connection with the exercise
 of the powers referred to in or granted by any of the Finance Documents or otherwise payable
 by the Borrower in accordance with the terms of any of the Finance Documents;

(b) the
 expenses referred to in Clause 10.2 *(<u>Expenses</u>)*; and

(c) interest
 on all such losses, liabilities, costs, charges, expenses, damages and outgoings from, in
 the case of Expenses referred to in sub-paragraph (b) above, the date on which such Expenses
 were demanded by the Lender from the Borrower and in all other cases, the date on which the
 same were suffered, incurred or paid by the Lender until the date of receipt or recovery
 thereof (whether before or after judgement) at the Default Rate (as conclusively certified
 by the Lender but always absent manifest error);

***"FATCA"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) sections
 1471 to 1474 of the US Internal Revenue Code of 1986 (the "  ***Code*** ")
 or any associated regulations or other associated official guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Deduction"*** means a deduction or withholding from a payment under a Finance Document required by FATCA;

***"FATCA Exempt Party"*** means a party that is entitled to receive payments free from any FATCA Deduction;

***"Final Maturity Date"*** means the fifth (5<sup>th</sup>) anniversary of the Drawdown Date;

***"Finance Documents"*** means this Agreement, the Security Documents, the Insurance Letter and any other document designated as such by the Lender and the Borrower;

***"Financial Indebtedness"*** means, in relation to a person (the *"**debtor**"*), a liability of the debtor:

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

***"Financial Year"*** means, in relation to the Borrower, each period of 1 year commencing on 1<sup>st</sup> January thereof in respect of which financial statements referred to in Clause 8.1(e) *(<u>Financial statements</u>)* are or ought to be prepared;

***"Flag State"*** means the Republic of Malta or such other state or territory proposed in writing by the Borrower to the Lender and approved by the Lender (such approval not to be unreasonably withheld, especially when requested for trading purposes), as being the Flag State of the Vessel for the purposes of the Finance Documents;

***"GAAP"*** means generally accepted accounting principles in the United States of America;

***"General Assignment"*** means the first priority deed of assignment of the Earnings, Insurances and Requisition Compensation collateral to the Mortgage executed or (as the context may require) to be executed by the Borrower in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Group"*** means, together, the Corporate Guarantor and its direct or indirect Subsidiaries (including the Borrower) from time to time during the Security Period and *"**Group Member**"* means any member of the Group;

***"Government Entity"*** means and includes (whether having a distinct legal personality or not) any national or local government authority, board, commission, department, division, organ, instrumentality, court or agency and any association, organisation or institution of which any of the foregoing is a member or to whose jurisdiction any of the foregoing is subject or in whose activities any of the foregoing is a participant;

***"Governmental Withholdings"*** means withholdings and any restrictions or conditions resulting in any charge whatsoever imposed, either now or hereafter, by any sovereign state or by any political sub-division or taxing authority of any sovereign state;

***"Historic Term SOFR"*** means, in relation to the Loan or any part of the Loan, the most recent applicable Term SOFR for a period equal in length to the Interest Period of the Loan or that part of the Loan and which is as of a day which is no more than three (3) US Government Securities Business Days before the Quotation Day;

 ****

 ****

***"IFRS"*** means international accounting standards within the meaning of the IAS Regulations 1606/2002 to the extent applicable to the relevant financial statements;

***"Insurance Letter"*** means a letter from the Borrower in the form of Schedule 2 (*Form of Insurance Letter*);

***"Insurances"*** means all policies and contracts of insurance (including, without limitation, all entries of the Vessel in a protection and indemnity, hull and machinery, war risks or other mutual insurance association) which are from time to time in place or taken out or entered into by or for the benefit of the Borrower (whether in the sole name of the Borrower or in the joint names of the Borrower and the Lender, however without the Lender being liable for payment of premiums, contributions or calls) in respect of the Vessel and its earnings or otherwise howsoever in connection with the Vessel and all benefits of such policies and/or contracts (including all claims of whatsoever nature and return of premiums);

***"Interest Payment Date"*** means in respect of the Loan or any part thereof in respect of which a separate Interest Period is fixed the last day of the relevant Interest Period and in case of any Interest Period longer than three (3) months the date(s) falling at successive three (3) monthly intervals during such longer Interest Period and the last day of such Interest Period, <u>provided, however, that</u> if any of the aforesaid dates falls on a day which is not a Business Day the Borrower shall pay the accrued interest on the first Business Day thereafter unless the result of such extension would be to carry such Interest Payment Date over into another calendar month in which event such Interest Payment Date shall be the immediately preceding Business Day;

***"Interest Period"*** means in relation to the Loan or any part thereof, each period for the calculation of interest in respect of the Loan or such part ascertained in accordance with Clauses 3.2 *(<u>Selection of Interest Period</u>)* and 3.3 *(<u>Determination of Interest Periods</u>)* and, in relation to an Unpaid Sum, each period determined in accordance with Clause 3.4 (*<u>Default interest</u>*);

***"Interpolated Historic Term SOFR"*** means, in relation to the Loan or any part of the Loan, the rate (rounded to the same number of decimal places as Term SOFR) which results from interpolating on a linear basis between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 most recent applicable Term SOFR (as of a day which is not more than three US Government
 Securities Business Days before the Quotation Day) for the longest period (for which Term
 SOFR is available) which is less than the Interest Period of the Loan or that part of the
 Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 no such Term SOFR is available for a period which is less than the Interest Period of the
 Loan or that part of the Loan, SOFR for a day which is no more than five US Government Securities
 Business Days (and no less than two US Government Securities Business Days) before the Quotation
 Day; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 most recent applicable Term SOFR (as of a day which is not more than three US Government
 Securities Business Days before the Quotation Day) for the shortest period (for which Term
 SOFR is available) which exceeds the Interest Period of the Loan or that part of the Loan;

*"**Interpolated Term SOFR**"* means, in relation to the Loan or any part of the Loan, the rate (rounded to the same number of decimal places as Term SOFR) which results from interpolating on a linear basis between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 applicable Term SOFR (as of the Quotation Day) for the longest period (for which Term SOFR
 is available) which is less than the Interest Period of the Loan or that part of the Loan;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 no such Term SOFR is available for a period which is less than the Interest Period of the
 Loan or that part of the Loan, SOFR for the day which is two (2) US Government Securities
 Business Days before the Quotation Day; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 applicable Term SOFR (as of the Quotation Day) for the shortest period (for which Term SOFR
 is available) which exceeds the Interest Period of the Loan or that part of the Loan;

 ****

***"ISM Code"*** means in relation to its application to the Borrower, the Vessel, the Approved Managers and her operation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *"The International Management Code for the Safe Operation of Ships and for Pollution Prevention"*,
 currently known or referred to as the *"ISM Code"*, adopted by the Assembly
 of the International Maritime Organisation by Resolution A. 741(18) on 4<sup>th</sup> November,
 1993 and incorporated on 19<sup>th</sup> May, 1994 into chapter IX of the International Convention
 for the Safety of Life at Sea 1974 (SOLAS 1974); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 further resolutions, circulars, codes, guidelines, regulations and recommendations which
 are now or in the future issued by or on behalf of the International Maritime Organisation
 or any other entity with responsibility for implementing the ISM Code, including without
 limitation, the *"Guidelines on implementation or administering of the International Safety Management (ISM) Code by Administrations"* produced by the International
 Maritime Organisation pursuant to Resolution A. 788(19) adopted on 25<sup>th</sup> November,
 1995,

as the same may be amended, supplemented or replaced from time to time;

***"ISM Code Documentation"*** includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 DOC and SMC issued by the Classification Society in all respects acceptable to the Lender
 in its absolute discretion pursuant to the ISM Code in relation to the Vessel within the
 period specified by the ISM Code;

(b) all
 other documents and data which are relevant to the ISM SMS and its implementation and verification
 which the Lender may require by request; and

(c) any
 other documents which are prepared or which are otherwise relevant to establish and maintain
 the Vessel's or the Borrower's compliance with the ISM Code which the Lender
 may require by request;

***"ISM SMS"*** means the safety management system which is required to be developed, implemented and maintained under the ISM Code;

***"ISPS Code"*** means the International Ship and Port Security Code of the International Maritime Organization and includes any amendments or extensions thereto and any regulation issued pursuant thereto;

***"ISSC"*** means an International Ship Security Certificate issued in respect of the Vessel pursuant to the ISPS Code;

***"Lender"*** means the Lender as specified in the beginning of this Agreement and includes its successors in title and transferees;

***"Lending Office"*** means the office of the Lender appearing at the beginning of this Agreement or any other office of the Lender designated by the Lender as the Lending Office by notice to the Borrower;

***"Loan"*** means the aggregate principal amount borrowed by the Borrower in respect of the Commitment or (as the context may require) the principal amount thereof owing to the Lender under this Agreement at any relevant time;

***"Major Casualty"*** means any casualty to the Vessel in respect whereof the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds the Major Casualty Amount;

***"Major Casualty Amount"*** means Six hundred thousand Dollars ($600,000) or the equivalent in any other currency;

***"Management Agreement"*** in relation to the Vessel means the agreement made between the Borrower and the respective Approved Manager providing *(inter alia)* for that Approved Manager to manage the Vessel, and in the plural means both of them;

***"Market Disruption Rate"*** means the Reference Rate;

 ****

***"Market Value"*** means the market value of the Vessel as determined in accordance with Clause 8.5(b) *(<u>Valuation of Vessel</u>)*;

***"Material Adverse Change"*** means any event or series of events which, in the opinion of the Lender, is likely to have a Material Adverse Effect;

***"Material Adverse Effect"*** means a material, in the reasonable opinion of the Lender, adverse effect on:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 validity, legality or enforceability of any Finance Document or the rights and remedies of
 the Lender under any Finance Document;

<u>Provided that</u> the Total Loss of the Vessel shall not be considered as an event having a Material Adverse Effect on (a), (b) or (c) hereinabove so long as the Borrower complies with Clause 4.3 (*<u>Compulsory Prepayment in case of Total Loss or sale or refinancing of the Vessel</u>*).

***"Material of Environmental Concern"*** means and includes pollutants, contaminants, toxic substances, oil as defined in the United States Oil Pollution Act of 1990 and all hazardous substances as defined in the United States Comprehensive Environmental Response, Compensation and Liability Act 1988;

***"MII"*** has the meaning given in Clause 10.8 *(<u>MII costs</u>)*;

***"month"*** means a period beginning in one calendar month and ending in the next calendar month on the day numerically corresponding to the day of the calendar month on which it started, <u>provided that</u> (i) if the period started on the last Business Day in a calendar month or if there is no such numerically corresponding day, it shall end on the last Business Day in such next calendar month and (ii) if such numerically corresponding day is not a Business Day, the period shall end on the next following Business Day in the same calendar month but if there is no such Business Day it shall end on the preceding Business Day and ***"months"*** and ***"monthly"*** shall be construed accordingly;

***"Mortgage"*** means the first priority Maltese ship mortgage and the deed of covenant supplemental thereto on the Vessel to be executed by the Borrower in favour of the Lender in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Operating Account"*** means the account opened or to be opened and maintained in the name of the Borrower with the Lending Office or with any other branch or office of the Lender or with such other bank as may be required by and at the discretion of the Lender pursuant to Clause 13.7 *(<u>Relocation of Operating Account</u>)* and shall include any sub-accounts or call accounts (whether in Dollars or any other currency) opened under the same designation or any revised designation or number from time to time notified by the Lender to the Borrower, to which (inter alia) all Earnings of the Vessel and/or any other moneys are to be paid in accordance with the provisions of this Agreement and/or the General Assignment and/or any of the other Finance Documents;

***"Operating Expenses"*** means the voyage and operating expenses of the Vessel, including, but not limited to, the expenses for operating, crewing, victualing, insuring, maintaining, repairing and generally trading the Vessel (and if applicable, voyage expenses), the expenses for spares, administration and management of the Vessel (inclusive of the management fees), the expenses for complying with requirements of the Classification Society and/or with any regulatory requirements as well as the reserves that the Borrower, acting reasonably, considers necessary for the commercial operation of the Vessel and the costs of intermediate and special surveys and dry docking of the Vessel;

***"Operator"*** means any person who is from time to time during the Security Period concerned in the operation of the Vessel and falls within the definition of *"Company"* set out in rule 1.1.2. of the ISM Code;

***"Outstanding Indebtedness"*** means the aggregate of (a) the Loan and interest accrued and accruing thereon, (b) the Expenses, (c) all other sums of any nature (together with all interest on any of those sums) which from time to time may be payable by the Borrower to the Lender pursuant to the Finance Documents, whether actually or contingently, (d) any damages payable as a result of any breach by the Borrower of any of the Finance Documents and (e) any damages or other sums payable as a result of any of the obligations of the Borrower under or pursuant to any of the Finance Documents being disclaimed by a liquidator or any other person, or, where the context permits, the amount thereof for the time being outstanding;

***"Party"*** means a party to this Agreement, and ***"Parties"*** means any or all of them, as the context may require;

*"**Permitted Financial Indebtedness***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 Financial Indebtedness incurred under the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) until
 the Refinancing Date, the Existing Loan Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 shareholders' loans, including any loans made by the Corporate Guarantor, which are
 unsecured and fully subordinated to all Financial Indebtedness incurred under the Finance
 Documents in writing pursuant to a subordination agreement acceptable to the Lender ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 Financial Indebtedness owing to an Approved Manager, subject to the Borrower ensuring on
 or prior to incurring such Financial Indebtedness, that the rights of the Approved Manager
 thereunder are fully subordinated to the rights of the Lender hereunder in writing pursuant
 to a subordination agreement acceptable to the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 Financial Indebtedness incurred in the ordinary course of owning, operating, maintaining,
 repairing and trading the Vessel or for the purposes of complying with requirements of the
 Classification Society and/or with any regulatory requirements.

***"Permitted Security Interests"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Security

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) until
 the Refinancing Date, the Existing Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) liens
 for unpaid master's and crew's wages in accordance with usual maritime practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) liens
 for salvage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) liens
 arising by operation of law for not more than two month's prepaid hire under any charter
 in relation to the Vessel not prohibited by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) 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 the Vessel, provided such liens do not secure amounts more than 90 days
 overdue (unless the overdue amount is being contested by the Borrower in good faith by appropriate
 steps) and, in the case of liens for repair or maintenance, in the Vessel is put in the possession
 of any person for the purpose of work being done upon her in an amount exceeding or likely
 to exceed the Major Casualty Amount <u>provided that</u> (i) either that person has first
 given to the Lender and in terms satisfactory to it a written undertaking not to exercise
 any lien on the Vessel or her earnings for the cost of such work or (ii) the previous consent
 of the Lender shall have been obtained (which consent shall not be unreasonably withheld);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any
 Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration
 as security for costs and expenses while the Borrower is actively prosecuting or defending
 such proceedings or arbitration in good faith; and

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

***"Pledged Deposit"*** has the meaning ascribed thereto in Clause 8.1(j) *(<u>Pledged Deposit);</u>*

 

***"Quotation Day"*** means, in relation to any period for which an interest rate is to be determined, the date falling two (2) US Government Securities Business Days before the first day of that period unless market practice differs in the relevant syndicated loan market in which case the Quotation Date will be determined by the Lender in accordance with such market practice (and if quotations would normally be given on more than one (1) day, the Quotation Date will be the last of those days);

*"**Reference Rate**"* means, in relation to the Loan or any part of the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the applicable Term SOFR as of the Quotation Day and for a period equal in length to the Interest Period of the Loan or that part of the Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as otherwise determined pursuant to Clause 3.8 (*<u>Unavailability of Term SOFR</u>*),

and if, in either case, that rate is less than zero, the Reference Rate shall be deemed to be zero;

***"Refinancing Date"*** means the date on which the Existing Loan Indebtedness is fully repaid to the Lender;

***"Registry"*** means the offices of such registrar, commissioner or representative of the Flag State who is duly authorised to register the Vessel, the Borrower's title to the Vessel and the Mortgage over the Vessel under the laws and flag of the Flag State;

***"Regulatory Agency"*** means the Government Entity or other organization in the relevant Flag State which has been designated by the government of the relevant Flag State to implement and/or administer and/or enforce the provisions of the ISM Code;

***"Related Company"*** means any company or other entity which is an Affiliate of the Borrower and ***"Related Companies"*** means any or all of them, as the context may require;

 ****

***"Relevant Jurisdiction"*** means any jurisdiction in which or where any Security Party is incorporated, resident, domiciled, has a permanent establishment, carries on, or has a place of business or is otherwise effectively connected;

***"Relevant Nominating Body"*** means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board;

***"Relevant Party"*** means the Borrower and each of the Borrower's Related Companies, and ***"Relevant Parties"*** means any or all of them, as the context may require;

***"Relevant Ship"*** means the Vessel and any other vessel from time to time (whether before or after the date of this Agreement) owned, managed or crewed by, or chartered to, any Relevant Party, and ***"Relevant Ships"*** means any or all of them, as the context may require;

***"Repayment Date"*** means each of the dates specified in Clause 4.1 *(<u>Repayment</u>)* on which the Repayment Instalments shall be payable by the Borrower to the Lender (together, the ***"Repayment Dates"***);

***"Repayment Instalment"*** means each instalment of the Loan which becomes due for repayment by the Borrower to the Lender on a Repayment Date pursuant to Clause 4.1 *(<u>Repayment</u>)* (together, the ***"Repayment Instalments"***);

***"Requisition Compensation"*** means all sums of money or other compensation from time to time payable during the Security Period by reason of Compulsory Acquisition of the Vessel otherwise than by requisition for hire;

 ****

***"Resolution Authority"*** means any body which has authority to exercise any Write-down and Conversion Powers;

***"Sanctions"*** means any economic, financial or trade sanctions laws, regulations, embargoes or other restrictive measures adopted, administered, enacted or enforced by any Sanctions Authority, or otherwise imposed by any law or regulation compliance with which is reasonable in the ordinary course of business of the Borrower, any other Security Party and the Lender or to which the Borrower, any other Security Party and the Lender are subject (which shall include without limitation, any extra-territorial sanctions imposed by law or regulation of the United States of America);

***"Sanctions Authority"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 government of the United States of America;

(b) the
 United Nations;

(c) the
 European Union (or the governments of any of its member states);

(d) the
 United Kingdom; or

(e) the
 respective governmental institutions and agencies of any of the foregoing including the Office
 of Foreign Assets Control of the U.S. Department of the Treasury ( ***"OFAC"***),
 the United States Department of State, the United States Department of Commerce and Her Majesty's
 Treasury;

***"Sanctions Restricted Jurisdiction"*** means any country or territory which is the subject of country-wide or territory-wide Sanctions, including as at the date of this Agreement, Iran, Sudan, Syria, Crimea, Donetsk People's Republic and Luhansk People's Republic regions of Ukraine, North Korea, Venezuela and Cuba.

***"Sanctions Restricted Person"*** means a person or vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that
 is, or is directly or indirectly, owned or controlled (as such terms are defined by the relevant
 Sanctions Authority) by, or acting on behalf of, one or more persons or entities on any list
 (each as amended, supplemented or substituted from time to time) of restricted entities,
 persons or organisations (or equivalent) published by a Sanctions Authority;

(b) that
 is located or resident in or incorporated under the laws of, or owned or controlled by, a
 person located or resident in or incorporated under the laws of a Sanctions Restricted Jurisdiction;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that
 is otherwise the subject of Sanctions;

***"Security Documents"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Account Pledge Agreement;

(b) the
 Approved Manager's Undertakings;

(c) the
 General Assignment;

(d) the
 Mortgage;

(e) the
 Charterparty Assignment in respect of any Assignable Charterparty;

(f) the
 Corporate Guarantee;

(g) the
 Cash-Collateral Account Pledge Agreement, if applicable; and

(h) any
 other document (whether creating a Security Interest or not) which is executed at any time
 by the Borrower or the other Security Parties or any other person as security for, or to
 establish any form of subordination or priorities arrangement in relation to, the whole or
 any part of the Outstanding Indebtedness and/or any and all other obligations of the Borrower
 pursuant to this Agreement and other moneys from time to time owing or payable under or in
 connection with this Agreement to the Lender or any of the documents referred to in this
 definition as each such document may from time to time be amended and/or supplemented, and
 "Security Document" means any of them as the context may require;

***"Security Interest"*** means:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 security rights of a plaintiff under an action *in rem*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 trust arrangement or security interest or other encumbrance of any kind securing any obligation
 of any person or any type of preferential arrangement (including without limitation title
 transfer and/or retention, arrest, seizure, garnishee order (whether nisi or absolute) or
 any other order or judgement arrangements having a similar effect);

 ****

***"Security Party"*** means each of the Borrower, the Corporate Guarantor, the Approved Commercial Manager and any other person (except the Lender, any charterer and any Approved Technical Manager) 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 last paragraph of the definition of *"Finance Documents"*, and ***"Security Parties"*** means any or all of them, as the context may require;

***"Security Period"*** means the period commencing on the Drawdown Date and ending on the date on which the Lender notifies the Borrower and the other Security Parties that:

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

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

(c) neither
 the Borrower nor any other Security Party has any future or contingent liability under Clauses
 10 *(<u>Indemnities- Expenses-Fees</u>)* or 5 *(<u>Payments, Taxes, Loan Account and Computation</u>)* or any other provision of this Agreement or another Finance Document;

***"Security Requirement"*** means the amount in Dollars (as certified by the Lender whose certificate shall, in the absence of manifest error, be conclusively binding on the Borrower) which is at any relevant time equal to the Security Requirement Ratio;

***"Security Requirement Ratio"*** means one hundred and twenty five (125%) of the Loan outstanding at the relevant time;

 ****

***"Security Value"*** means the amount in Dollars (as certified by the Lender whose certificate shall, in the absence of manifest error, be conclusive and binding on the Borrower) which, at any relevant time is the aggregate of (i) the Market Value of the Vessel as most recently determined in accordance with Clause 8.5(b) *(<u>Valuation of Vessel</u>),* (ii) the market value of any additional security provided under Clause 8.5(a) *(<u>Security shortfall-Additional security</u>)* and accepted by the Lender (if any) and (iii) the amount of the Pledged Deposit referred to in Clause 8.1(j) *(<u>Pledged Deposit</u>)* standing to the credit of the Operating Account at the relevant time;

***"SMC"*** means a safety management certificate issued in respect of the Vessel in accordance with rule 13 of the ISM Code;

***"SOFR"*** means the secured overnight financing rate (SOFR) administered by the Federal Reserve Bank of New York (or any other person which takes over the administration of that rate) published (before any correction, recalculation or republication by the administrator) by the Federal Reserve Bank of New York (or any other person which takes over the publication of that rate);

***"Subsidiary"*** of a person means any company or entity directly or indirectly controlled by such person;

***"Taxes"*** includes all present and future taxes, levies, imposts, duties, fees or charges of whatever nature together with interest thereon and penalties in respect thereof (except taxes concerning the Lender and/or imposed on the overall net income of the Lender) and ***"Taxation"*** shall be construed accordingly;

***"Term SOFR"*** means the term SOFR reference rate administered by CME Group Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant period published (before any correction, recalculation or republication by the administrator) by CME Group Benchmark Administration Limited (or any other person which takes over the publication of that rate);

 ****

***"Total Loss"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) actual,
 constructive, compromised or arranged total loss of the Vessel; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Compulsory Acquisition of the Vessel; or

(c) any
 condemnation of the Vessel by any tribunal or by any person or persons claiming to be a tribunal,
 or capture, seizure, confiscation, arrest or detention of the Vessel (other than where the
 same amounts to the Compulsory Acquisition of the Vessel) by any Government Entity, or by
 persons acting on behalf of any Government Entity or otherwise, unless it is within one hundred
 and twenty (120) days from the date of such occurrence released and restored to the full
 control of the Borrower; and

(d) any
 arrest, capture, seizure, confiscation or detention of the Vessel (including any hijacking
 or theft or piracy or related incident) unless it is within one hundred and eighty (180)
 days from the date of such occurrence redelivered to the full control of the Borrower;

***"Total Loss Date"*** means, in relation to the Vessel:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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 with
 the Vessel's insurers in which the insurers agree to treat the Vessel as a total loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the case of the Compulsory Acquisition of the Vessel, on the date upon which the relevant
 requisition of title or other compulsory acquisition occurs excluding a requisition for hire;

(d) in
 the case of, condemnation, capture, seizure, confiscation, arrest, or detention of the Vessel
 (other than where the same amounts to Compulsory Acquisition of the Vessel) by any Government
 Entity, or by persons acting on behalf of any Government Entity, which deprives the Borrower
 of the use of the Vessel for more than one hundred twenty (120) days, upon the expiry of
 the period of one hundred twenty (120) days after the date upon which the relevant, condemnation,
 capture, seizure or confiscation, arrest or detention occurred; and

(e) in
 the case of hijacking, capture, seizure or confiscation of the Vessel arising as a result
 of a piracy or related incident upon the expiry of the period of one hundred eighty (180)
 days after the occurrence thereof;

***"Transferee"*** has the meaning ascribed thereto in Clause 14.3 *(<u>Assignment by the Lender</u>)*;

***"UK Bail-In Legislation"*** means Part 1 of the United Kingdom Banking Act 2009 and any other law or regulation applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutes or their Affiliates (otherwise than through liquidation, administration or other insolvency proceedings);

*"**Unpaid Sum**"* means any sum due and payable but unpaid by a Security Party under the Finance Documents;

***"US"*** means the United States of America;

***"US Government Securities Business Day"*** means any day other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 Saturday or a Sunday; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 day on which the Securities Industry and Financial Markets Association (or any successor
 organisation) recommends that the fixed income departments of its members be closed for the
 entire day for purposes of trading in US Government securities;

***"US Tax Obligor"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Borrower, if it is resident for tax purposes in the United States of America; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 Security Party some or all of whose payments under the Finance Documents are from sources
 within the United States for US Federal income tax purposes;

***"Vessel"*** means the motor tanker **"PYXIS THETA"** of approximately 30159 gt and 13926 nt, built in the year 2013 in Korea, having Official Number / IMO No. **9657064**, currently registered under the laws and flag of the Republic of Malta at the Ships' Registry of the port of Valletta, together with all her boats, engines, machinery tackle outfit spare gear fuel consumable and other stores belongings and appurtenances whether on board or ashore and whether now owned or hereafter acquired and all the additions, improvements and replacements in or on the above described vessel;

***"Write-down and Conversion Powers"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 relation to any UK Bail-In Legislation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 powers under that UK 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 UK Bail-In Legislation that are related
 to or ancillary to any of those powers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 similar or analogous powers under that UK Bail-In Legislation.

**1.3** **Interpretation** 

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Clause
 headings and the table of contents are inserted for convenience of reference only and in
 interpreting a Finance Document or any provision of a Finance Document, all Clause, sub-Clause
 and other headings in that and any other Finance Document shall be entirely disregarded;

(b) subject
 to any specific provision of this Agreement or of any assignment and/or participation or
 syndication agreement of any nature whatsoever, reference to each of the parties hereto and
 to the other Finance Documents shall be deemed to be reference to and/or to include, as appropriate,
 their respective successors and permitted assigns;

(c) where
 the context so admits, words in the singular include the plural and vice versa;

(d) the
 words *"including"* and *"in particular"* shall not be
 construed as limiting the generality of any foregoing words;

(e) references
 to (or to any specified provisions of) a Finance Document or any other agreement or instrument
 is a reference to that Finance Document or other agreement or instrument as it may from time
 to time be amended, restated, novated or replaced, however fundamentally, whether before
 the date of this Agreement or otherwise;

(f) references
 to Clauses and Schedules are to be construed as references to the Clauses of, and the Schedules
 to, the relevant Finance Document and references to a Finance Document include all the terms
 of that Finance Document and any Schedules, Annexes or Appendices thereto, which form an
 integral part of same;

(g) references
 to the opinion of the Lender or a determination or acceptance by the Lender or to documents,
 acts, or persons acceptable or satisfactory to the Lender or the like shall be construed
 as reference to opinion, determination, acceptance or satisfaction of the Lender at the sole
 discretion of the Lender and such opinion, determination, acceptance or satisfaction of the
 Lender shall be conclusive and binding on the Borrower;

(h) references
 to a *" **regulation** "* include any present or future regulation, rule,
 directive, requirement, request or guideline (whether or not having the force of law) of
 any of any governmental or intergovernmental body, agency, authority, central bank or government
 department or any self-regulatory or other national or supra-national authority or organisation
 and includes (without limitation) any Basel II Regulation or Basel III Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) references
 to any person include such person's assignees and successors in title;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) references
 to the Lender's *"cost of funds"* in relation to the Loan or any part
 of the Loan is a reference to the average cost (determined either on an actual or a notional
 basis) which the Lender would incur if it were to fund, from whatever source(s) it may reasonably
 select, an amount equal to the amount of the Loan or that part of the Loan for a period equal
 in length to the Interest Period of the Loan or that part of the Loan.

**1.4** **Construction of certain terms** 

In this Agreement:

*"**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;

*"**continuing**"*, in relation to any Default or any Event of Default, means that the Default or the Event of Default has not been remedied or waived;

*"**contingent liability**"* means a liability which is not certain to arise and/or the amount of which remains unascertained;

***"control"*** of an entity means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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 that entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) appoint
 or remove all, or the majority, of the directors or other equivalent officers of that entity;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) give
 directions with respect to the operating and financial policies of that entity with which
 the directors or other equivalent officers of that entity are obliged to comply; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 holding beneficially of more than 50 per cent of the issued share capital of that entity
 (excluding any part of that issued share capital that carries no right to participate beyond
 a specified amount in a distribution of either profits or capital) (and, for this purpose,
 any Security Interest over share capital shall be disregarded in determining the beneficial
 ownership of such share capital);

and **controlled** shall be construed accordingly;

*"**document**"* includes a deed; also a letter or fax;

***"guarantee"*** means any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness and *"**guaranteed**"* shall be construed accordingly;

*"**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;

*"**liability**"* includes every kind of debt or liability (present or future, certain or contingent), whether incurred as principal or surety or otherwise;

*"**person**"* includes any individual, firm, company, corporation, unincorporated body of persons or any state, political sub-division or any agency thereof 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;

*"**regulation**"* includes any regulation, rule, official directive, request or guideline whether or not having the force of law of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

*"**right**"* means any right, privilege, power or remedy, any proprietary interest in any asset and any other interest or remedy of any kind, whether actual or contingent, present or future, arising under contract or law, or in equity;

*"**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

*"**liquidation**", "**winding up**", "**dissolution**"*, or *"**administration**"* of person or (ii) a *"**receiver**"* or *"**administrative receiver**"* or *"**administrator**"* in the context of insolvency proceedings or security enforcement actions in respect of a person shall be construed so as to include any equivalent or analogous proceedings or any equivalent and analogous person or appointee (respectively) under the law of the jurisdiction in which such person is established or incorporated or any jurisdiction in which such person carries on business including (in respect of proceedings) the seeking or occurrences of liquidation, winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief of debtors.

**1.5** **Same meaning** 

Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

**1.6** **Inconsistency** 

Unless a contrary indication appears, in the event of any inconsistency between the terms of this Agreement and the terms of any other Finance Document when dealing with the same or similar subject matter (other than as relates to the creation and/or perfection of security) are subject to the terms of this Agreement and, in the event of any conflict between any provision of this Agreement and any provision of any Finance Document (other than in relation to the creation and/or perfection of security) the provisions of this Agreement shall prevail.

**1.7** **Finance Documents** 

Where any other Finance Document provides that Clause 1.3 *(<u>Interpretation</u>)* and Clause 1.4 *(<u>Construction of certain terms</u>)*, shall apply to that Finance Document, any other provision of this Agreement which, by its terms, purports to apply to all or any of the Finance Documents and/or any Security Party shall apply to that Finance Document as if set out in it but with all necessary changes.

**2.** **THE LOAN** 

**2.1** **Commitment to Lend** 

The Lender, relying upon (inter alia) each of the representations and warranties set forth in Clause 6 *(<u>Representations and warranties</u>)* and in each of the Security Documents, agrees to lend to the Borrower in one (1) Advance and upon and subject to the terms of this Agreement, the amount specified in Clause 1.1 *(<u>Amount and Purpose</u>)* and the Borrower shall apply all amounts borrowed under the Commitment in accordance with Clause 1.1 *(<u>Amount and Purpose</u>)*.

**2.2** **Drawdown Notice and Commitment to Borrow** 

Subject to the terms and conditions of this Agreement, the Commitment shall be advanced to the Borrower following receipt by the Lender from the Borrower of a Drawdown Notice not later than 11:30 a.m. (Athens time) on the second Business Day before the date on which the drawdown is intended to be made or such shorter period as the Lender may agree.

**2.3** **Drawdown Notice irrevocable** 

A Drawdown Notice must be signed by a director or a duly authorised attorney-in-fact of the Borrower and shall be effective on actual receipt thereof by the Lender and, once served, it, subject as provided in Clause 3.6 *(<u>Market disruption</u>)*, cannot be revoked without the prior consent of the Lender.

**2.4** **Number of Advances Agreed** 

The Commitment shall be advanced to the Borrower in one (1) Advance and any amount undrawn under the Commitment shall be cancelled and may not be borrowed by the Borrower at a later date.

**2.5** **Disbursement** 

Upon receipt of the Drawdown Notice complying with the terms of this Agreement the Lender shall, subject to the provisions of Clause 7 *(<u>Conditions precedent</u>)*, on the date specified in the Drawdown Notice, make the Commitment available to the Borrower, and payment to the Borrower shall be made to the account which the Borrower specifies in the Drawdown Notice and the proceeds of the Loan shall be applied for the purpose set out in Clause 1.1 (*Amount and purpose*).

**2.6** **Application of Proceeds** 

Without prejudice to the Borrower's obligations under Clause 8.1(c) *(<u>Use of Loan proceeds</u>)*, the Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement and shall have no responsibility for the application of the proceeds of the Loan (or any part thereof) by the Borrower.

**2.7** **Termination Date of the Commitment** 

Any part of the Commitment undrawn and uncancelled at the end of the Availability Period shall thereupon be automatically cancelled.

**2.8** **Evidence** 

It is hereby expressly agreed and admitted by the Borrower that abstracts or photocopies of the books of the Lender as well as statements of accounts or a certificate signed by an authorised officer of the Lender shall be conclusive, binding and full evidence, save for manifest error, on the Borrower as to the existence and/or the amount of the at any time Outstanding Indebtedness, of any amount due under this Agreement, of the applicable interest rate or Default Rate or any other rate provided for or referred to in this Agreement, the Interest Period, the value of additional securities under Clause 8.5(a) *(<u>Security shortfall-Additional security</u>)*, the payment or non-payment of any amount. Nevertheless, enforcement procedures or any other court or out-of-court procedure can be commenced by the Lender on the basis of the above mentioned means of evidence including written statements or certificates of the Lender.

**2.9** **Cancellation** 

The Borrower may, cancel any undrawn part of the Commitment under this Agreement upon giving the Lender not less than five (5) Business Days' notice in writing to that effect, <u>provided, that</u> no Drawdown Notice has been given to the Lender under Clause 2.2 *(<u>Drawdown Notice and Commitment to Borrow</u>)* for the full amount of the Commitment or in respect of the portion thereof in respect of which cancellation is required by the Borrower. Any such notice of cancellation, once given, shall be irrevocable. Any amount cancelled may not be drawn. Notwithstanding any such cancellation pursuant to this Clause 2.9 the Borrower shall continue to be liable for any and all amounts due to the Lender under this Agreement including without limitation any amounts due to the Lender under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*.

**2.10** **No security or lien from other person** 

The Borrower has not taken or received, and the Borrower undertakes that until all moneys, obligations and liabilities due, owing or incurred by the Borrower under this Agreement and the Security Documents have been paid in full, it will not take or receive, any security or lien from any other Security Party.

**3.** **INTEREST** 

**3.1** **Calculation of interest** 

The Borrower shall pay interest on the Loan (or as the case may be, each portion thereof to which a different Interest Period relates) in respect of each Interest Period (or part thereof) on each Interest Payment Date. The interest rate for the calculation of interest shall be the rate per annum determined by the Lender to be the aggregate of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Margin A and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Reference Rate for that Interest Period

<u>provided however that</u> the interest rate for the calculation of interest on the Cash-collateralised part of the Loan (if any) shall be, subject to paragraph (b)(ii) of Clause 3.10 *(<u>Cash Collateral</u>)*, the rate per annum determined by the Lender to be the aggregate of: (i) the Margin B (ii) and, subject to Clause 3.10 *(<u>Cash Collateral</u>)*, the Reference Rate for that Interest Period.

**3.2** **Selection of Interest Period** 

The Borrower may by notice received by the Lender not later than 11:30 a.m. (Athens time) on the second Business Day before the beginning of each Interest Period specify (subject to Clause 3.3 *(<u>Determination of Interest Periods)</u>*) whether such Interest Period shall have a duration of one (1) or three (3) months (or such other period as may be requested by the Borrower and as the Lender, in its sole discretion, may agree to).

**3.3** **Determination of Interest Periods** 

Every Interest Period shall, subject to market availability to be conclusively determined by the Lender, be of the duration specified by the Borrower pursuant to Clause 3.2 *(<u>Selection of Interest Period</u>)* but so that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Interest Period</u>: the initial Interest Period applicable to the Loan will commence on
 the Drawdown Date and each subsequent Interest Period will commence forthwith upon the expiry
 of the preceding Interest Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Period overrunning Repayment Date(s)</u>: if any Interest Period would otherwise overrun
 one or more Repayment Dates, then, in the case of the last Repayment Date, such Interest
 Period shall end on such Repayment Date, and in the case of any other Repayment Date or Dates
 the Loan shall be divided into parts so that there is one part equal to the amount(s) of
 the Repayment Instalment(s) due on each Repayment Date falling during that Interest Period
 and having an Interest Period ending on the relevant Repayment Date and another part equal
 to the amount of the balance of the Loan having an Interest Period determined in accordance
 with Clause 3.2 *(<u>Selection of Interest Period</u>)* and the other provisions of
 this Clause 3.3 and the expression *" **Interest Period in respect of the Loan** "* when used in this Agreement refers to the Interest Period in respect of the balance of the
 Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Last Interest Period</u>: the last Interest Period in respect of the Loan will terminate on the
 Final Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Failure to notify</u>: if the Borrower fails to specify the duration of an Interest Period in accordance
 with the provisions of Clause 3.2 *(<u>Selection of Interest Period</u>)* and this Clause
 3.3, such Interest Period shall have a duration of three (3) months unless another period
 shall be agreed between the Lender and the Borrower <u>provided, always, that</u> such period
 (whether of three months or different duration) shall comply with this Clause 3.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Interest Period not readily available</u>: if the Lender determines that the duration of an Interest
 Period specified by the Borrower in accordance with Clause 3.2 *(<u>Selection of Interest Period</u>)* is not readily available, then that Interest Period shall have a duration
 of 3 months and if such 3 months duration is not readily available, then that Interest Period
 shall have such duration as the Lender, may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Interest Period to extend beyond Final Maturity Date</u>: No Interest Period for the Loan
 shall end after the Final Maturity Date and any such Interest Period which would otherwise
 extend beyond the Final Maturity Date shall instead end on the Final Maturity Date,

<u>provided, always, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Interest Period which commences on the last day of a calendar month, and any Interest Period
 which commences on the day on which there is no numerically corresponding day in the calendar
 month during which such Interest Period is due to end, shall end on the last Business Day
 of the calendar month during which such Interest Period is due to end; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 the last day of an Interest Period is not a Business Day the Interest Period shall be extended
 until the next following Business Day unless such next following Business Day falls in the
 next calendar month in which case such Interest Period shall be shortened to expire on the
 preceding Business Day.

**3.4** **Default Interest** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Default interest</u>: If a Security Party fails to pay any amount payable by it under a Finance Document
 on its due date, interest shall accrue on the Unpaid Sum from the due date up to the date
 of actual payment (both before and after judgment) at a rate which, subject to paragraph
 (b) below, is 2% per annum, higher than the rate which would have been payable if the Unpaid
 Sum had, during the period of non-payment, constituted part of the Loan in the currency of
 the Unpaid Sum for successive Interest Periods, each of a duration selected by the Lender.
 Any interest accruing under this Clause 3.4 (*<u>Default interest</u>*) shall be immediately
 payable by the Security Party on demand by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 an Unpaid Sum consists of all or part of the Loan which became due on a day which was not
 the last day of an Interest Period relating to the Loan or that part of the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion
 of the current Interest Period relating to the Loan or that part of the Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 rate of interest applying to that Unpaid Sum during that first Interest Period shall be 2%
 per annum higher than the rate which would have applied if that Unpaid Sum had not become
 due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of accrued default interest</u>: 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compounding of default interest</u>: Any such interest which is not paid at the end of the period by
 reference to which it was determined shall be compounded every six (6) months and shall be
 payable on demand.

**3.5** **Notification of Interest and interest rate** 

The Lender shall notify the Borrower promptly of the duration of each Interest Period and of each rate of interest determined by it under this Clause 3 without prejudice to the right of the Lender to make determinations at its sole discretion, but this shall not be taken to imply that the Borrower is liable to pay such interest only with effect from the date of the Lender's notification. However, omission of the Lender to make such notification (without the application of the Borrower) will not constitute and will not be interpreted as if to constitute a breach of obligation of the Lender except in case of wilful misconduct.

**3.6** **Market disruption** 

If before close of business in Athens on the Quotation Day for the relevant Interest Period, the Lender determines (in its sole discretion) that its cost of funds relating to the Loan would be in excess of the Market Disruption Rate, then Clause 3.7 (Cost of funds) shall apply to the Loan for the relevant Interest Period.

**3.7** **Cost of funds** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 this Clause 3.7 (*<u>Cost of funds</u>*) 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Applicable Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 rate notified to the Borrower by the Lender as soon as practically possible and in any event
 before interest is due to be paid in respect of such Interest Period), to be that which expresses
 as a percentage rate per annum the Lender's cost of funds relating to the Loan or the
 relevant part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 this Clause 3.7 (*<u>Cost of funds</u>*) applies and the Lender or the Borrower so requires,
 the Lender and the Borrower shall enter into negotiations (for a period of not more than
 20 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject
 to Clause 3.9 (*<u>Changes to reference</u>* <u>r *ates*</u>), any substitute or
 alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of
 both the Lender and the Borrower, be binding on all Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 any rate notified to the Lender under sub-paragraph (ii) of paragraph (a) above is less than
 zero, the relevant rate shall be deemed to be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 no substitute or alternative basis agreed pursuant to paragraph (b) above, the Borrower may
 give the Lender not less than 5 days' notice of its intention to prepay the Loan at
 the end of the interest period set by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A
 notice under paragraph (e) above shall be irrevocable; and on the last Business Day of the
 interest period set by the Lender, the Borrower shall prepay (without premium or penalty)
 the Loan, together with accrued interest thereon at the applicable interest rate and the
 balance of the Outstanding Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 provisions of Clause 4 *(<u>Repayment-Prepayment</u>)* shall apply in relation to the
 prepayment made hereunder.

**3.8** **Unavailability of Term SOFR** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Interpolated Term SOFR</u>* : If no Term SOFR is available for the Interest Period of the Loan or any
 part of the Loan, the applicable Reference Rate shall be the Interpolated Term SOFR for a
 period equal in length to the Interest Period of the Loan or that part of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Historic Term SOFR</u>* : If no Term SOFR is available for the Interest Period of the Loan or any
 part of the Loan and it is not possible to calculate the Interpolated Term SOFR, the applicable
 Reference Rate shall be the Historic Term SOFR for the Loan or that part of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Interpolated Historic Term SOFR</u>:* If paragraph (b) above applies but no Historic Term SOFR is available
 for the Interest Period of the Loan or any part of the Loan, the applicable Reference Rate
 shall be the Interpolated Historic Term SOFR for a period equal in length to the Interest
 Period of the Loan or that part of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Cost of funds</u>* : If paragraph (c) above applies but it is not possible to calculate the
 Interpolated Historic Term SOFR, there shall be no Reference Rate for the Loan or that part
 of the Loan (as applicable) and Clause 3.7 (*<u>Cost of Funds</u>*) shall apply to the
 Loan or that part of the Loan for that Interest Period.

**3.9** **Changes to Reference Rates** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 a Published Rate Replacement Event has occurred in relation to any Published Rate, any amendment
 or waiver which relates to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) providing
 for the use of a Replacement Reference Rate; and

(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) aligning
 any provision of any Finance Document to the use of that Replacement Reference Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) enabling
 that Replacement Reference Rate to be used for the calculation of interest under this Agreement
 (including, without limitation, any consequential changes required to enable that Replacement
 Reference Rate to be used for the purposes of this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) implementing
 market conventions applicable to that Replacement Reference Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) providing
 for appropriate fallback (and market disruption) provisions for that Replacement Reference
 Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) adjusting
 the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of
 economic value from one Party to another as a result of the application of that Replacement
 Reference Rate (and if any adjustment or method for calculating any adjustment has been formally
 designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall
 be determined on the basis of that designation, nomination or recommendation),

may be made with the consent of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In
 this Clause 3.9 (*<u>Changes to reference rates</u>*):

"***Published Rate***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) SOFR;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Term
 SOFR for any Quoted Tenor.

"***Published Rate Contingency Period*"** means, in relation to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Term
 SOFR (all Quoted Tenors), 10 US Government Securities Business Days; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SOFR,
 10 US Government Securities Business Days.

"***Published Rate Replacement Event***" means, in relation to a Published Rate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 methodology, formula or other means of determining that Published Rate has, in the opinion
 of the Lender materially changed;

(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 administrator of that Published Rate or its supervisor publicly announces that such administrator
 is insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) information
 is published in any order, decree, notice, petition or filing, however described, of or filed
 with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory
 or judicial body which reasonably confirms that the administrator of that Published Rate
 is insolvent,

<u>provided that</u>, in each case, at that time, there is no successor administrator to continue to provide that Published Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 administrator of that Published Rate publicly announces that it has ceased or will cease
 to provide that Published Rate permanently or indefinitely and, at that time, there is no
 successor administrator to continue to provide that Published Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 supervisor of the administrator of that Published Rate publicly announces that such Published
 Rate has been or will be permanently or indefinitely discontinued; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 administrator of that Published Rate or its supervisor announces that that Published Rate
 may no longer be used; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 administrator of that Published Rate (or the administrator of an interest rate which is a
 constituent element of that Published Rate) determines that that Published Rate should be
 calculated in accordance with its reduced submissions or other contingency or fallback policies
 or arrangements and either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 circumstance(s) or event(s) leading to such determination are not (in the opinion of the
 Lender and the Borrower) temporary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that
 Published Rate is calculated in accordance with any such policy or arrangement for a period
 no less than the applicable Published Rate Contingency Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 the opinion of the Lender and the Borrower, that Published Rate is otherwise no longer appropriate
 for the purposes of calculating interest under this Agreement.

"***Quoted Tenor***" means, in relation to Term SOFR, any period for which that rate is customarily displayed on the relevant page or screen of an information service.

"***Relevant Nominating Body***" means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board.

"***Replacement Reference Rate***" means a reference rate which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) formally
 designated, nominated or recommended as the replacement for a Published Rate by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 administrator of that Published Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Relevant Nominating Body,

and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the "***Replacement Reference Rate***" will be the replacement under paragraph (ii) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the opinion of the Lender and the Borrower, generally accepted in the international or any
 relevant domestic syndicated loan markets as the appropriate successor or alternative to
 a Published Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the opinion of the Lender and the Borrower, an appropriate successor or alternative to a
 Published Rate.

**3.10** **Cash Collateral** 

The Lender and the Borrower agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At
 any time during the Security Period, the Borrower shall have the option to deposit or procure
 that a Cash Collateral Account Holder deposits in the Cash Collateral Account at the beginning
 of an Interest Period the Cash Collateral Amount, which may be withdrawn only pursuant to
 paragraph (c) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Cash Collateral Amount may be placed, on and from the date of this Agreement and until the
 Lender notifies the Borrower otherwise, in the Cash Collateral Account as a time deposit,
 which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall
 bear interest as agreed with the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon
 the Lender's confirmation that such option is available, shall bear no interest, in
 which case the Cash-Collateralised Part of the Loan shall bear interest at a rate equal to
 Margin B only;

<u>provided however that</u> the aforesaid option shall not be available if an Event of Default has occurred which is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Cash Collateral Amount (or any part thereof) may not be withdrawn from the Cash Collateral
 Account other than at the relevant Cash Collateral Account Holder's request on the
 last day of an Interest Period <u>provided always that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no
 Event of Default has occurred which is continuing at the relevant time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 relevant Cash Collateral Account Holder shall have given the Lender notice received by the
 Lender not later than two (2) Business Days before the beginning of the following Interest
 Period, of its intention to withdraw in whole or in part the relevant Cash Collateral Amount.

**4.** **REPAYMENT - PREPAYMENT** 

**4.1** **Repayment** 

The Borrower shall and it is expressly undertaken by the Borrower to repay the Loan by (a) twenty (20) consecutive quarterly Repayment Instalments (the **"*Repayment Instalments*"**) to be repaid on each of the Repayment Dates so that the first Repayment Instalment is repaid on the date falling three (3) months after the Drawdown Date and each of the subsequent ones consecutively falling due for payment on each of the dates falling three (3) months after the immediately preceding Repayment Date with the last (the 20<sup>th</sup>) of such Repayment Instalments falling due for payment on the Final Maturity Date and (b) the Balloon Instalment falling due for payment on the Final Maturity Date; subject to the provisions of this Agreement the amount of each of such Repayment Instalments shall be Dollars Four hundred fifty thousand ($450,000);

<u>provided, that</u> (a) if the last Repayment Date would otherwise fall after the Final Maturity Date, the last Repayment Date shall be the Final Maturity Date, (b) in the event that the Commitment is not drawn down in full by the last day of the Availability Period, the amount of each of the Repayment Instalments shall be proportionally reduced, (c) there shall be no Repayment Dates after the Final Maturity Date, (d) on the Final Maturity Date the Borrower shall also pay to the Lender any and all other moneys then due and payable under this Agreement and the other Finance Documents and (e) if any of the Repayment Instalments shall become due on a day which is not a Business Day, the due date therefor shall be extended to the next succeeding Business Day unless such Business Day falls in the next calendar month in which event such due date shall be the immediately preceding Business Day.

**4.2** **Voluntary Prepayment** 

The Borrower shall have the right, upon giving the Lender not less than five (5) days' notice in writing, to prepay, without penalty or prepayment fee, part or all of the Loan, in each case together with all unpaid interest accrued thereon and all other sums of money whatsoever due and owing from the Borrower to the Lender hereunder or pursuant to the other Finance Documents and all interest accrued thereon, <u>provided, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 giving of such notice by the Borrower will irrevocably commit the Borrower to prepay such
 amount as stated in such notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 the Borrower shall request consent to make such prepayment on a day other than the last day
 of an Interest Period the Borrower will pay, in addition to the amount to be prepaid, any
 such sum as may be payable to the Lender pursuant to Clause 10.1 *(<u>Indemnity</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each
 such prepayment shall be in an amount of $100,000 or a whole multiple thereof or the balance
 of the Loan and will be applied by the Lender in or towards pro-rata prepayment of the Balloon
 Instalment and the remaining Repayment Instalments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) every
 notice of prepayment shall be effective only on actual receipt (including by fax or electronic
 mail) by the Lender, shall be irrevocable and shall oblige the Borrower to make such prepayment
 on the date specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Borrower has provided evidence satisfactory to the Lender that any consent required by the
 Borrower or any Security Party in connection with the prepayment has been obtained and remains
 in force, and that any regulation relevant to this Agreement which affects the Borrower or
 any Security Party has been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no
 amount prepaid may be re-borrowed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 Borrower may not prepay the Loan or any part thereof, save as expressly provided in this
 Agreement or as otherwise agreed by the Lender;

<u>Provided always that</u> if the Borrower shall, subject always to Clause 4.2(a), make a prepayment on a Business Day other than the last day of an Interest Period in respect of the whole of the Loan, it shall, in addition to the amount prepaid and accrued interest, pay to the Lender any amount which the Lender may certify is necessary to compensate the Lender for any Break Costs incurred by the Lender as a result of the making of the prepayment in question.

**4.3** **Compulsory Prepayment in case of Total Loss or sale or refinancing of the Vessel** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Total Loss</u>: On the Vessel becoming a Total Loss:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prior
 to the advancing of the Commitment (or any part thereof), the obligation of the Lender to
 advance the Commitment (or any part thereof) shall immediately cease and the Commitment shall
 be reduced to zero; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 case the Commitment (or any part thereof) has been already advanced, the Borrower shall prepay
 the Outstanding Indebtedness in full on the earlier of (1) the date falling one hundred and
 eighty (180) days after the Total Loss Date and (2) the date of receipt by the Lender pursuant
 to the Security Documents of the insurance proceeds relating to such Total Loss or any Requisition
 Compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Sale of the Vessel - Refinancing</u>: In the event of a sale or other disposal of the Vessel,
 or in case of refinancing by another bank or if the Borrower requests the Lender's
 consent for the discharge of the Mortgage on the Vessel, the Borrower shall prepay the Outstanding
 Indebtedness in full on the date the sale is completed by delivery of the Vessel to her buyer
 or on the date of the refinancing or the date of the discharge of the Mortgage on the Vessel,
 as the case may be.

**4.4** **Amounts payable on prepayment** 

Any prepayment of all or part of the Loan under this Agreement shall be made together with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accrued
 interest on the prepaid amount to the date of such prepayment (calculated, in the case of
 a prepayment pursuant to Clause 3.6 *(<u>Market disruption</u>)* at a rate equal to
 the aggregate of the Applicable Margin and the cost of funds to the Lender pursuant to Clause
 3.7 *(Cost of funds*));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 additional amount, if applicable, payable under Clauses 5.3 *(<u>Gross Up</u>)* and/or
 12.2 *(<u>Increased cost</u>)* and 12.3 *(<u>Claim for increased cost</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all
 other sums payable by the Borrower to the Lender under this Agreement or any of the other
 Finance Documents including, without limitation, any amounts payable under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 relation to any prepayment made on a date other than an Interest Payment Date in respect
 of the whole of the Loan, it shall, in addition to the amount prepaid and accrued interest,
 pay to the Lender any amount which the Lender may certify is necessary to compensate the
 Lender for any Break Costs incurred by the Lender as a result of the making of the prepayment
 in question.

**5.** **PAYMENTS, TAXES, LOAN ACCOUNT AND COMPUTATION** 

**5.1** **Payments – No set-off or counterclaims** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Borrower acknowledges that in performing its obligations under this Agreement, the Lender
 will be incurring liabilities to third parties in relation to the funding of amounts to the
 Borrower, such liabilities matching the liabilities of the Borrower to the Lender and that
 it is reasonable for the Lender to be entitled to receive payments from the Borrower gross
 on the due date in order that the Lender is put in a position to perform its matching obligations
 to the relevant third parties. Accordingly, all payments to be made by the Borrower under
 this Agreement and/or any of the other Finance Documents shall be made in full, without any
 set-off or counterclaim whatsoever and, subject as provided in Clause 5.3 *(<u>Gross-up</u>)*,
 free and clear of any deductions or withholdings or Governmental Withholdings whatsoever,
 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 Dollars, not later than 11:30 a.m. (Athens time) on the Business Day (in Piraeus, Athens
 and New York City) on which the relevant payment is due under the terms of this Agreement;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 the account of the Lender at Citibank N.A., 399, Park Avenue, New York 10022, N.Y., U.S.A.
 (SWIFT Code CITIUS33) for account of the Lender, account number 36251442 (Swift Code: CRBAGRAA),
 or such other bank in New York as the Lender may notify from time to time to the Borrower,
 reference: *" Seventhone Corp. - Loan Agreement dated: …… December, 2025* ", <u>provided, however, that</u> the Lender shall have the right to change the place of account for payment, upon
 ten (10) Business Days' prior written notice to the Borrower from the date on which
 the relevant payment has to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 at any time it shall become unlawful or impracticable for the Borrower to make payment under
 this Agreement to the relevant account or bank referred to in Clause 5.1(a), the Borrower
 may request, and the Lender may agree to, alternative arrangements for the payment of the
 amounts due by the Borrower to the Lender under this Agreement or the other Finance Documents.

**5.2** **Payments on Business Days** 

All payments due shall be made on a Business Day. If the due date for payment falls on a day which is not a Business Day, that payment due shall be made on the next following Business Day unless such Business Day falls in the next calendar month in which case payment shall be made on the immediately preceding Business Day.

**5.3** **Gross Up** 

If at any time any law, regulation, regulatory requirement or requirement of any governmental authority, monetary agency, central bank or the like compels the Borrower to make payment subject to Governmental Withholdings (other than a FATCA Deduction), the Borrower shall pay to the Lender such additional amounts as may be necessary to ensure that there will be received by the Lender a net amount equal to the full amount which would have been received had payment not been made subject to such Governmental Withholdings. The Borrower shall indemnify the Lender against any losses or costs incurred by the Lender by reason of any failure of the Borrower to make any such deduction or withholding or by reason of any increased payment not being made on the due date for such payment. The Borrower shall, not later than thirty (30) days after each deduction, withholding or payment of any Governmental Withholdings (other than a FATCA Deduction), forward to the Lender official receipts and any other documentary receipts and any other documentary evidence reasonably required by the Lender in respect of the payment made or to be made of any deduction or withholding or Governmental Withholding (other than a FATCA Deduction). The obligations of the Borrower under this provision shall, subject to applicable law, remain in force notwithstanding the repayment of the Loan and the payment of all interest due thereon pursuant to the provisions of this Agreement.

**5.4** **Mitigation** 

If circumstances arise which would result in an increased amount being payable by the Borrower under this Clause then, without in any way limiting the rights of the Lender under this Clause, the Lender shall use reasonable endeavours to transfer the obligations, liabilities and rights under this Agreement and the Security Documents to another office or financial institution not affected by the circumstances, but the Lender shall be under no obligation to take any such action if in its opinion, to do so would or might:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) have
 an adverse effect on its business, operations or financial condition on the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) involve
 it in any activity which is unlawful or prohibited or any activity that is contrary to, or
 inconsistent, with any regulation of the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) involve
 the Lender in any expense (unless indemnified to its reasonable satisfaction) or tax disadvantage.

**5.5** **Claw-back of Tax benefit** 

If, following any such deduction or withholding as is referred to in Clause 5.3 *(<u>Gross-up</u>)* from any payment by the Borrower, the Lender shall receive or be granted a credit against or remission for any Taxes payable by it, the Lender shall, subject to the Borrower having made any increased payment in accordance with Clause 5.3 *(<u>Gross-up</u>)* and to the extent that the Lender can do so without prejudicing its retention of the amount of such credit or remission and without prejudice to the right of the Lender to obtain any other relief or allowance which may be available to it, reimburse the Borrower with such amount as the Lender shall in its absolute discretion certify to be the proportion of such credit or remission as will leave the Lender (after such reimbursement) in no worse position than it would have been in had there been no such deduction or withholding from the payment by the Borrower. Such reimbursement shall be made forthwith upon the Lender certifying that the amount of the credit or remission has been received by it, <u>provided, always, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Lender shall not be obliged to allocate this transaction any part of a tax repayment or credit
 which is referable to a number of transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) nothing
 in this Clause shall oblige the Lender to rearrange its tax affairs in any particular manner,
 to claim any type of relief, credit, allowance or deduction instead of, or in priority to,
 another or to make any such claim within any particular time or to disclose any information
 regarding its tax affairs and computations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) nothing
 in this Clause shall oblige the Lender to make a payment which exceeds any repayment or credit
 in respect of tax on account of which the Borrower has made an increased payment under this
 Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 allocation or determination made by the Lender under or in connection with this Clause shall
 be binding on the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) without
 prejudice to the generality of the foregoing, the Borrower shall not, by virtue of this Clause
 5.5, be entitled to enquire about the Lender's tax affairs.

**5.6** **Loan Account** 

All sums advanced by the Lender to the Borrower under this Agreement and all interest accrued thereon and all other amounts due under this Agreement from time to time and all repayments and/or payments thereof shall be debited and credited respectively to a separate loan account maintained by the Lender in accordance with its usual practices in the name of the Borrower. The Lender may, however, in accordance with its usual practices or for its accounting needs, maintain more than one account, consolidate or separate them but all such accounts shall be considered parts of one single loan account maintained under this Agreement. In case that a ship mortgage in the form of Account Current is granted as security under this Agreement, the account(s) referred to in this Clause shall be the Account Current referred to in such mortgage.

**5.7** **Computation** 

All interest and other payments payable by reference to a rate per annum under this Agreement shall accrue from day to day and be calculated on the basis of actual days elapsed and a 360 day year.

**6.** **REPRESENTATIONS AND WARRANTIES** 

**6.1** **Continuing representations and warranties** 

The Borrower hereby represents and warrants to the Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Due Incorporation/Valid Existence</u>: each of the Borrower and the other corporate Security
 Parties is duly incorporated and validly existing and in good standing under the laws of
 their respective countries of incorporation, and have power to own their respective property
 and assets, to carry on their respective business as the same are now being lawfully conducted
 and to purchase, own, finance and operate vessels, or, as the case may be, manage vessels,
 as well as to undertake the obligations which they have undertaken or shall undertake pursuant
 to the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Due Corporate Authority</u>: each of the Borrower and the other corporate Security Parties has
 power to execute, deliver and perform its obligations under the Finance Documents to which
 it is a party and, in the case of the Borrower to borrow the Commitment, and to make all
 the payments contemplated by, and to comply with, those Finance Documents to which that Security
 Party is a party and each of the corporate Security Parties has power to execute and deliver
 and perform its obligations under the Finance Documents to which it is or is to be a party;
 all necessary corporate, shareholder and other action has been taken to authorise the execution,
 delivery and performance of the same and no limitation on the powers of the Borrower to borrow
 will be exceeded as a result of borrowing the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Litigation</u>:
 no litigation or arbitration, tax claim or administrative proceeding (including action relating
 to any alleged or actual breach of the ISM Code and the ISPS Code) relating to sums exceeding
 in respect of the Borrower, the amount of Six hundred thousand Dollars ($600,000) and in
 respect of the Corporate Guarantor, the amount of One million two hundred thousand Dollars
 ($1,200,000) involving a potential liability of the Borrower or the Corporate Guarantor is
 current or pending or (to its or its officers' knowledge) threatened against the Borrower
 or the Corporate Guarantor, which, if adversely determined, would have a Material Adverse
 Effect on any of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No conflict with other obligations</u>: the execution and delivery of, the performance of its
 obligations under, and compliance with the provisions of, the Finance Documents by the relevant
 Security Parties will not (i) contravene any existing applicable law, statute, rule or regulation
 or any judgment, decree or permit to which the Borrower or any other Security Party is subject,
 (ii) conflict with, or result in any breach of any of the terms of, or constitute a default
 under, any agreement or other instrument to which the Borrower or any other Security Party
 is a party or is subject to or by which it or any of its property is bound, (iii) contravene
 or conflict with any provision of the memorandum and articles of association/articles of
 incorporation/by-laws/statutes or other constitutional documents of the Borrower or any other
 Security Party or (iv) result in the creation or imposition of or oblige the Borrower or
 any other Security Party to create any Security Interest (other than a Permitted Security
 Interest) on any of the undertakings, assets, rights or revenues of the Borrower or any other
 Security Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Financial Condition</u>: to the knowledge of the officers/directors or shareholders of the Borrower
 the financial condition of the Borrower and of the other Security Parties has not suffered
 any material deterioration since that condition was last disclosed to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Immunity</u>: neither the Borrower nor any other Security Party nor any of their respective
 assets are entitled to immunity on the grounds of sovereignty or otherwise from any legal
 action or proceeding (which shall include, without limitation, suit, attachment prior to
 judgement, execution or other enforcement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Shipping Company</u>: each of the Borrower and the Approved Manager is a shipping company involved
 in the owning or, as the case may be, managing of ships engaged in international voyages
 and earning profits in free foreign currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Licences/Authorisation</u>:
 every consent, authorisation, license or approval of, or registration with or declaration
 to, governmental or public bodies or authorities or courts required by any Security Party
 to authorise, or required by any Security Party in connection with, the execution, delivery,
 validity, enforceability or admissibility in evidence of each of the Finance Documents or
 the performance by each Security Party of its obligations under the Finance Documents to
 which such Security Party is or is to be a party has been obtained or made and is in full
 force and effect and there has been no default in the observance of any of the conditions
 or restrictions (if any) imposed in, or in connection with, any of the same so far as the
 Borrower is aware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Perfected Securities</u>: the Finance Documents do now or, as the case may be, will, upon execution
 and delivery (and, where applicable, registration as provided for in the Finance Documents):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitute
 the relevant Security Party's legal, valid and binding obligations enforceable against
 that Security Party in accordance with their respective terms (having the requisite corporate
 benefit which is legally and economically sufficient); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create
 legal, valid and binding Security Interests (having the priority specified in the relevant
 Finance Document) enforceable in accordance with their respective terms over all the assets
 and revenues intended to be covered to which they, by their terms, relate, subject to any
 relevant insolvency laws affecting creditors' rights generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No third party Security Interests</u>: without limiting the generality of Clause 6.1(i) *(<u>Perfected Securities</u>)*, at the time of the execution and delivery of each Finance Document to
 which the Borrower is a party

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 third party will have any Security Interests (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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Notarisation/Filing/Recording</u>: save for the registration of the Mortgage in the Registry,
 it is not necessary to ensure the legality, validity, enforceability or admissibility in
 evidence of this Agreement or any of the other Finance Documents that it or they or any other
 instrument be notarised, filed, recorded, registered or enrolled in any court, public office
 or elsewhere or that any stamp, registration or similar tax or charge be paid on or in relation
 to this Agreement or the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No conflict</u>: There are no other agreements or arrangements which may adversely affect or
 conflict with the Finance Documents or the security thereby created;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Validity and Binding effect</u>: the Finance Documents constitute (or upon their execution - and in
 the case of any Mortgage upon its registration at the Registry - will constitute) valid and
 legally binding obligations of the relevant Security Parties enforceable against the Borrower
 and the other Security Parties in accordance with their respective terms and that there are
 no other agreements or arrangements which may adversely affect or conflict with the Finance
 Documents or the security thereby created;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Valid Choice of Law</u>: the choice of law agreed to govern this Agreement and/or any other Finance
 Document and the submission to the jurisdiction of the courts agreed in each of the Finance
 Documents are or will be, on execution of the respective Finance Documents, valid and binding
 on the Borrower and any other Security Party which is or is to be a party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Beneficial shareholding</u>:

all the issued shares and voting rights in the Borrower are held directly or indirectly by the Corporate Guarantor (being as of the date of this Agreement the sole shareholder of the Borrower) and at least 25% of the issued common share capital of the Corporate Guarantor is directly or indirectly held by the Beneficial Shareholders disclosed to the Lender in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Sanctions</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) none
 of the Security Parties nor any other member of the Group:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) is
 a Sanctions Restricted Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) owns
 or controls directly or indirectly a Sanctions Restricted Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) has
 a Sanctions Restricted Person serving as a director, officer or, to the best of its knowledge,
 employee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 proceeds of the Loan shall be made available, directly or to the knowledge of the Borrower
 (after reasonable enquiry) indirectly, to or for the benefit of a Sanctions Restricted Person
 contrary to Sanctions or for transactions in a Sanctions Restricted Jurisdiction nor shall
 they be otherwise directly or indirectly, applied in a manner or for a purpose prohibited
 by Sanctions.

**6.2** **Initial representations and warranties** 

The Borrower hereby further represents and warrants to the Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Direct obligations - Pari Passu</u>: the obligations of the Borrower under this Agreement are direct,
 general and unconditional obligations of the Borrower and rank at least pari passu with all
 other present and future unsecured and unsubordinated Financial Indebtedness of the Borrower
 with the exception of any obligations which are mandatorily preferred by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Information</u>:
 all information, accounts, statements of financial position, exhibits and reports furnished
 by or on behalf of any Security Party to the Lender in connection with the negotiation and
 preparation of this Agreement and each of the other Finance Documents are true and accurate
 in all material respects and not misleading, do not omit material facts and all reasonable
 enquiries have been made to verify the facts and statements contained therein; to the best
 knowledge of the Directors/Officers of the Borrower, there are no other facts the omission
 of which would make any fact or statement therein misleading and, in the case of accounts
 and statements of financial position, they have been prepared in accordance with generally
 accepted accounting principles which have been consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Event of Default</u>: no Event of Default has occurred and is continuing and neither the
 Borrower nor the Corporate Guarantor has been declared in default under any agreement relating
 to Financial Indebtedness to which it is a party or by which it may be bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Taxes</u>: no Taxes are imposed by deduction, withholding or otherwise on any payment to
 be made by the Borrower under this Agreement and/or any other of the Finance Documents or
 are imposed on or by virtue of the execution or delivery of this Agreement and/or any other
 of the Finance Documents or any document or instrument to be executed or delivered hereunder
 or thereunder. In case that any Tax exists now or will be imposed in the future, it will
 be borne by the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Ownership/Flag/Seaworthiness/Class/Insurance of the Vessel</u>: the Vessel on the Drawdown Date and on the Refinancing Date will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 the absolute and free from Security Interests (other than Permitted Security Interests) ownership
 of the Borrower who is and on the Refinancing Date will be the sole legal and beneficial
 owner of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) registered
 in the name of the Borrower through the Registry under the laws and flag of the Flag State;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) operationally
 seaworthy and in every way fit for service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) classed
 with the Classification Society which is a member of IACS and which has been approved by
 the Lender in writing and such class will be free of any overdue requirements and recommendations
 of the Classification Society affecting class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) insured
 in accordance with the provisions of this Agreement and the Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) managed
 by the Approved Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in
 full compliance with the ISM and the ISPS Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Charter</u>: unless otherwise permitted in writing by the Lender, the Vessel is not and will
 not on the Drawdown Date be subject to any charter or contract nor to any agreement to enter
 into any charter or contract which, if entered into after the Drawdown Date would have required
 the consent of the Lender under any of the Finance Documents and there will not on or before
 the Drawdown Date be any agreement or arrangement whereby the Earnings of the Vessel may
 be shared with any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Security Interests</u>: neither the Vessel, nor its Earnings, Requisition Compensation or
 Insurances nor any other properties or rights which are, or are to be, the subject of any
 of the Security Documents nor any part thereof will, on the Drawdown Date, be subject to
 any Security Interests other than Permitted Security Interests or otherwise permitted by
 the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Compliance with Environmental Laws and Approvals</u>: except as may already have been disclosed by the
 Borrower in writing to, and acknowledged in writing by, the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Borrower and its Related Companies have complied with the provisions of all Environmental
 Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Borrower and its Related Companies have obtained all Environmental Approvals and are in compliance
 with all such Environmental Approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) neither
 the Borrower nor any of its Related Companies have received notice of any Environmental Claim
 that the Borrower or any of its Related Companies is not in compliance with any Environmental
 Law or any Environmental Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Environmental Claims</u>: except as may already have been disclosed by the Borrower in writing
 to, and acknowledged in writing by, the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) there
 is no Environmental Claim in excess of Six hundred thousand Dollars ($600,000) pending or,
 to the best of the Borrower's knowledge and belief, threatened against the Borrower
 or the Vessel or the Borrower's Related Companies or any other Relevant Ship; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there
 has been no emission, spill, release or discharge of a Material of Environmental Concern
 from the Vessel or any other Relevant Ship or any vessel owned by, managed or crewed by or
 chartered to the Borrower which could give rise to an Environmental Claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Copies true and complete</u>: the copies of the Management Agreements delivered or to be delivered
 to the Lender pursuant to Clause 7.2 *(<u>Conditions precedent to the making of the Commitment</u>)* are, or will when delivered be, true and complete copies of such documents; such documents
 will when delivered constitute valid and binding obligations of the parties thereto enforceable
 in accordance with their respective terms and there will have been no amendments or variations
 thereof or defaults thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Application made for DOC and SMC - Compliance with the ISM Code</u>: in relation to the Vessel, the Operator
 has applied to the appropriate Regulatory Agency for a DOC for itself and, on the Drawdown
 Date, it will have applied for an SMC in respect of the Vessel to be issued pursuant to the
 ISM Code within any time limit required or recommended by such Regulatory Agency and that
 neither the Borrower nor any Operator is aware of any reason why such application may be
 refused.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Compliance with ISPS Code :</u> the Borrower on the Drawdown Date shall have a valid and current ISSC
 in respect of the Vessel and will comply on the Drawdown Date and the Operator complies,
 with the requirements of the ISPS Code and the ISSC which shall be issued in respect of the
 Vessel on the Drawdown Date and shall remain valid thereafter throughout the Security Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No US Tax Obligor</u>: None of the Security Parties nor any member of the Group is a US Tax
 Obligor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Taxes paid</u>: the Borrower has paid all taxes applicable to, or imposed on or in relation to
 itself, its business or the Vessel.

**6.3** **Acting for its own account - Money laundering** 

The Borrower represents and warrants and confirms that it is the beneficiary of the Loan made or to be made available to it and it will promptly inform the Lender by written notice if it is not, or ceases to be, the beneficiary and notify the Lender in writing of the name and the address of the new beneficiary/beneficiaries; the Borrower is aware that under applicable money laundering provisions, it has an obligation to state for whose account the Loan is obtained; the Borrower confirms that, by entering into this Agreement and the other Finance Documents, it is acting on its own behalf and for its own account and it is obtaining the Loan for its own account. In relation to the borrowing by the Borrower of the Loan, the performance and discharge of its obligations and liabilities under this Agreement or any of the other Finance Documents and the transactions and other arrangements effected or contemplated by this Agreement or any of the Documents to which the Borrower is a party, it is acting for its own account and that the foregoing will not involve or lead to a contravention of any law, official requirement or other regulatory measure or procedure which has been implemented to combat "money laundering" (as defined in Article 1 of the Directive (91/308/EEC) of the Council of the European Community).

**6.4** **Representations Correct** 

At the time of entering into this Agreement all above representations and warranties or any other information given by the Borrower and/or the Corporate Guarantor to the Lender are true and accurate.

**6.5** **Repetition of Representations and Warranties** 

The representations and warranties in this Clause 6 (except in relation to (i) the representations and warranties under sub-clauses (c) *(Litigation),* (e) *(Financial Condition)* and (k) *(Notarisation/Filing/Recording)* of Clause 6.1, and (ii) the representations and warranties in Clause 6.2 *(<u>Initial representations and warranties</u>)*) shall be deemed to be repeated by the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 the date of service of the Drawdown Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on
 the Drawdown Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on
 each Interest Payment Date throughout the Security Period,

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

**7.** **CONDITIONS PRECEDENT** 

**7.1** **Conditions precedent to the execution of this Agreement** 

The obligation of the Lender to make the Commitment or any part thereof available shall be subject to the condition that the Lender shall have received, not later than the day on which the Drawdown Notice in respect of the Commitment or such part thereof is given, the following documents and evidence in form substance satisfactory to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Finance Documents</u>: a duly executed original of **this Agreement**, the **Corporate Guarantee**,
 the **Account Pledge Agreement**, the **Cash-Collateral Account Pledge Agreement (if any)** and each document required to be delivered pursuant thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Constitutional Documents</u>: a duly certified true copy of the Articles of Incorporation and By-Laws or
 the Memorandum and Articles of Association, or of any other constitutional documents, as
 the case may be, of each corporate Security Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates of incumbency</u>: a recent certificate of incumbency of each corporate Security Party issued
 by the appropriate authority or, as appropriate, signed by the secretary or a director thereof,
 stating the officers and the directors of each of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Shareholding</u>:
 a statement to the Lender confirming the identity of the Beneficial Shareholders of each
 of the Security Parties in line with *"know your customer"* procedures of
 the Lender for opening account purposes, who should be acceptable in all respects to the
 Lender; where any of the Security Parties has a corporate shareholder, the conditions set
 out in Sub-clauses (a) *(<u>Constitutional Documents</u>)*, (b) *(<u>Certificates of incumbency</u>)*, (d) if required *(<u>Resolutions</u>)* and (e) if required *(<u>Powers of Attorney</u>)* of this Clause 7.1 shall apply (mutatis mutandis) to such corporate
 shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Resolutions</u>:
 minutes of separate meetings of the directors of each corporate Security Party and in respect
 of the Borrower, of the shareholders thereof, at which there was approved (inter alia) the
 entry into, execution, delivery and performance of this Agreement, the other Finance Documents
 and any other documents executed or to be executed pursuant hereto or thereto to which the
 relevant corporate Security Party is or is to be a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Powers of Attorney</u>: the original of any power(s) of attorney and any further evidence of the
 due authority of any person signing this Agreement and the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Consents</u>:
 evidence that all necessary licences, consents, permits and authorisations (including exchange
 control ones) have been obtained by any Security Party for the execution, delivery, validity,
 enforceability, admissibility in evidence and the due performance of the respective obligations
 under or pursuant to this Agreement and the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Fees</u>:
 evidence that the fees referred to in Clause 10.11 *(<u>Fees</u>)* have been paid in
 full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Other documents</u>: any other documents or recent certificates or other evidence which would be
 reasonably required by the Lender in relation to any corporate Security Party evidencing
 that the relevant Security Party has been properly established, continues to exist validly
 and is in good standing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Management Agreements-Assignable Charterparty</u>: a copy of each of the following documents certified
 as true and complete by the legal counsel of the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Management Agreements evidencing that the Vessel is managed by the Approved Managers on terms
 acceptable to the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Assignable Charterparty; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Operating Account</u>: evidence that the Operating Account has been duly opened and all mandate forms
 and other legal documents required for the opening of an account under any applicable law,
 as well as signature cards and properly adopted authorizations have been duly delivered to
 and have been accepted by the compliance department of the Lender.

**7.2** **Conditions precedent to the making of the Commitment** 

The obligation of the Lender to advance the Commitment (or any part thereof) is subject to the further condition that the Lender shall have received on or prior to the drawdown of the Commitment or the relevant part thereof or, as the case may be, simultaneously with or immediately following the Refinancing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conditions precedent</u>: evidence that the conditions precedent set out in Clause 7.1 *(<u>Conditions precedent to the execution of this Agreement</u>)* remain fully satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Drawdown Notice</u>: the Drawdown Notice duly executed and issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Finance Documents</u>: each of the Mortgage, the General Assignment, the Approved Manager's
 Undertaking, any Charterparty Assignment relating to any Assignable Charterparty and the
 Insurance Letter duly executed and where appropriate duly registered with the Registry or
 any other competent authority (as required) and each document required to be delivered pursuant
 thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Title and no Security Interests</u>: evidence that the Vessel on the Refinancing Date will be duly
 registered in the ownership of the Borrower with the Registry and under the laws and flag
 of the Flag State free from any Security Interests save for Permitted Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Insurances</u>:
 evidence in form and substance satisfactory to the Lender that the Vessel has been or will
 – on the Refinancing Date – be insured in accordance with the insurance requirements
 provided for in this Agreement and the other Security Documents, including a MII, together
 with an opinion from insurance consultants (appointed by the Lender at the Borrower's
 expense) as to the adequacy of the insurances effected or to be effected in respect of the
 Vessel, to be followed by full copies of cover notes, policies, certificates of entry or
 other contracts of insurance and irrevocable authority is hereby given to the Lender at any
 time at its discretion to obtain copies of the policies, certificates of entry or other contracts
 of insurance from the insurers and/or obtain any information in relation to the Insurances
 relating to the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insurers' confirmations</u>: all necessary confirmations from the insurers of the Vessel that they
 will issue letters of undertaking and endorse notice of assignment and loss payable clauses
 on the Insurances, in form and substance satisfactory to the Lender in its sole discretion
 and – in the event of fleet cover – accompanied by waivers for liens for unpaid
 premium of other vessels managed by the Approved Manager and which are not subject to any
 mortgage in favour of the Lender) and (if required by the Lender) an opinion signed by an
 independent firm of marine insurance brokers appointed and/or approved by the Lender at the
 expenses of the Borrower confirming the adequacy of the Insurances maintained on the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>MII</u>:
 the MII shall have been effected by the Lender, but at the expense of the Borrower as provided
 in Clause 10.8 *(<u>MII costs</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Access to class records</u>: due authorisation in form and substance satisfactory to the Lender
 authorising the Lender to have access and/or obtain any copies of class records or other
 information at its discretion from the Classification Society of the Vessel, <u>provided however, that</u> the Lender shall not exercise such right unless and until an Event of Default
 has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notices of assignment</u>: duly executed notices of assignment in the form prescribed by the Security
 Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Mortgage registration</u>; evidence that the Mortgage on the Refinancing Date will be registered against
 the Vessel through the Registry under the laws and flag of the Flag State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Trading Certificates</u>: upon issuance, copies of the trading certificates of the Vessel evidencing
 the same to be valid and in force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Class confirmation</u>: evidence from the Classification Society that the Vessel is classed with
 the class notation (referred to in the Mortgage), with the Classification Society or to a
 similar standard with another classification society of like standing to be specifically
 approved by the Lender and remains free from any overdue requirements or recommendations
 affecting her class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Trim and stability booklet</u>: a copy of the trim and stability booklet certifying the lightweight
 of the Vessel certified as true and complete by the legal counsel of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>DOC and SMC</u>: copies of (i) the DOC referred to in paragraph (a) in the definition of the
 ISM Code Documentation and (ii) of the SMC for the Vessel, certified as true and complete
 by the legal counsel of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>ISM Code Documentation : copies of</u> such applications for ISM Code Documentation as the Lender
 may by written notice to the Borrower have requested not later than two (2) days before the
 Drawdown Date certified as true and complete in all material respects by the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>ISPS Code</u>: i) evidence satisfactory to the Lender that the Vessel is subject to a ship security
 plan which complies with the ISPS Code; and ii) upon its issuance, a copy, certified as true
 and complete copy of the ISSC for the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Valuation</u>:
 charter free valuation of the Vessel, at the Borrower's expense, prior to the Drawdown
 Date, prepared on the basis specified in Clause 8.5(b) *(<u>Valuation of Vessel</u>)* by an Approved Shipbroker appointed by the Lender in form and substance satisfactory to the
 Lender, for the purposes of determining the amount of the Loan as per Clause 1.1 *(<u>Amount and purpose</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Insurance Letter</u>: the Insurance Letter duly executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Pledged Deposit</u>: evidence that the Borrower has deposited or, as the case may be, will deposit
 concurrently with the drawdown of the Loan, the Pledged Deposit of Five hundred thousand
 Dollars ($500,000) as provided in Clause 8.1(j) *(<u>Pledged Deposit</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Acknowledgement of Receipt</u>: a receipt in writing in form and substance satisfactory to the Lender including
 an acknowledgement and admission of the Borrower and/or any other Security Party to the effect
 that the Loan was drawn by the Borrower and a declaration by the Borrower that all conditions
 precedent have been fulfilled, that there is no Event of Default and that all the representations
 and warranties are true and correct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Existing Loan Indebtedness</u>: evidence that on the Refinancing Date the Existing Loan Indebtedness
 shall have been fully repaid ; <u>Legal opinions</u>: draft opinion from lawyers appointed
 by the Lender as to all the matters referred to in Clauses 6.1(a) *(<u>Due Incorporation/Valid Existence</u>)* and 6.1 (b) *(<u>Due Corporate Authority</u>)* and all such aspects
 of law as the Lender shall deem relevant to this Agreement and the other Finance Documents
 and any other documents executed pursuant hereto or thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Security Parties' process agent</u>: a letter from each Security Party's agent for receipt
 of service of proceedings referred to in each Security Document to which the relevant Security
 Party is a party, accepting its appointment under each of the relevant Security Documents;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Flag State opinion</u>: draft opinion of legal advisers to the Lender on matters of the laws of
 the Flag State.

**7.3** **No change of circumstances** 

The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that at the time of the giving of the Drawdown Notice and on the Refinancing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and warranties</u>: the representations and warranties set out in Clause 6 *(<u>Representations and warranties</u>)* and in each of the other Finance Documents are true and correct on
 and as of each such time as if each was made with respect to the facts and circumstances
 existing at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Event of Default</u>: no Event of Default shall have occurred and be continuing or would
 result from the drawdown of the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No change</u>: the Lender shall be satisfied that (i) the Borrower remains, directly or indirectly,
 a fully (100%) owned Subsidiary of the Corporate Guarantor, and (ii) at least 25% of the
 entire issued common shares/stock of the Corporate Guarantor is directly or indirectly held
 by the Beneficial Shareholders disclosed to the Lender in writing, and (iii) there has been
 no Material Adverse Change in the financial condition of any Security Party which (change)
 might, in the sole opinion of the Lender, have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Market Disruption Event</u>: none of the circumstances contemplated by Clause 3.6 *(<u>Market disruption</u>)* has occurred and is continuing.

**7.4** **Know your customer and money laundering compliance** 

The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that the Lender, prior to or simultaneously with the drawdown, shall have received, to the extent required by any change in applicable law and regulation or any changes in the Lender's own internal guidelines since the date on which the applicable documents and evidence were delivered to the Lender pursuant to Clause 8.9 *(<u>Know your customer and money laundering compliance</u>)*, such further documents and evidence as the Lender shall require to identify the Borrower and the other Security Parties and any other persons involved or affected by the transaction(s) contemplated by this Agreement.

**7.5** **Further documents** 

Without prejudice to the provisions of this Clause 7, and provided reasonable notice is given to the Borrower by the Lender, the Borrower hereby undertakes with the Lender to make or procure to be made such amendments and/or additions to any of the documents delivered to the Lender in accordance with this Clause 7 and to execute and/or deliver to the Lender or procure to be executed and/or delivered to the Lender such further documents as the Lender and its legal advisors may reasonably require to satisfy themselves that all the terms and requirements of this Agreement have been complied with.

**7.6** **Waiver of conditions precedent** 

The conditions specified in this Clause 7 are inserted solely for the benefit of the Lender and may be waived by the Lender in whole or in part and with or without conditions. Without prejudice to any of the other provisions of this Agreement, in the event that the Lender, in its sole and absolute discretion, makes the Commitment available to the Borrower prior to the satisfaction of all or any of the conditions referred to in Clause 7.1 *<u>Conditions precedent to the execution of this Agreement</u>*, Clause 7.2 *(<u>Conditions precedent to the making of the Commitment</u>)* and Clause 7.3 *(<u>No change of circumstances</u>)*, the Borrower hereby covenants and undertakes to satisfy or procure the satisfaction of such condition or conditions by no later than fourteen (14) days after the Drawdown Date or within such longer period as the Lender may, in its sole and absolute discretion, agree to or specify.

**8.** **UNDERTAKING** 

**8.1** **General undertakings** 

The Borrower hereby undertakes with the Lender that, from the date of this Agreement and so long as any moneys are owing under any of the Finance Documents and until the full and complete payment and discharge of the Outstanding Indebtedness, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice on adverse change or Default</u>: promptly inform the Lender upon becoming aware of any occurrence
 which might adversely affect the ability of any Security Party to perform its obligations
 under any of the Finance Documents and, without limiting the generality of the foregoing,
 will inform the Lender of any Event of Default forthwith upon becoming aware thereof and
 will from time to time, if so requested by the Lender, confirm to the Lender in writing that,
 save as otherwise stated in such confirmation, no Event of Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consents and licenses</u>: without prejudice to Clause 6 *(<u>Representations and warranties</u>)* and Clause 7 *(<u>Conditions precedent</u>)*, obtain or cause to be obtained, maintain
 in full force and effect and comply in all material respects with the conditions and restrictions
 (if any) imposed in, or in connection with, every consent, authorisation, license or approval
 of governmental or public bodies or authorities or courts and do or cause to be done, all
 other acts and things which may from time to time be necessary or desirable under applicable
 law for the continued due performance of all the obligations of the Security Parties under
 each of the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Use of Loan proceeds</u>: use the Loan exclusively for the purposes specified in Clause 1.1 *(<u>Amount and Purpose</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Pari passu</u>: ensure that its obligations under this Agreement shall, without prejudice to the
 provisions of this Clause 8.1, at all times rank at least pari passu with all its other present
 and future unsecured and unsubordinated Financial Indebtedness with the exception of any
 obligations which are mandatorily preferred by law and not by contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Financial statements</u>: furnish the Lender with (i) annual unaudited financial statements of the
 Borrower and annual audited financial statements of the Corporate Guarantor audited by an
 Approved Auditor, and (ii) un-audited semi-annual financial statements of the Corporate Guarantor,
 in each case prepared in accordance with Applicable Accounting Principles consistently applied,
 in respect of each Financial Year or each semester (as the case may be) of that Financial
 Year as soon as practicable but not later than 180 days (in the case of the annual financial
 statements) and 90 days (in the case of the un-audited semi-annual financial statements of
 the Corporate Guarantor) after the end of the financial period to which they relate, commencing
 in respect of the Corporate Guarantor with the Financial Year ending on 31<sup>st</sup> December,
 2025 and in respect of the Borrower, with the Financial Year ending on 31<sup>st</sup> December,
 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Provision of further information</u>: promptly, when requested, provide the Lender with such customary
 financial and other information and accounts relating to the business, undertaking, assets,
 liabilities, revenues, financial condition or affairs of the Borrower and of the Corporate
 Guarantor and such other further general information relating to the Borrower and to the
 Corporate Guarantor as the Lender from time to time may reasonably require, save where any
 such information is publicly available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Financial Information:</u> provide the Lender from time to time as the Lender may reasonably request
 with information on the financial conditions, actual and projected for the following 12 month
 period, cash flow position, commitments and operations of the Borrower and of the Corporate
 Guarantor including cash flow analysis and voyage accounts of the Vessel with a breakdown
 of income and running expenses showing net trading profit, trade payables and trade receivables,
 such financial details to be certified by an authorized signatory of the Borrower or (as
 the case may be) of the Corporate Guarantor as to their correctness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Information on the employment of the Vessel</u>: provide the Lender from time to time as the Lender may
 request with information on the employment of the Vessel, as well as on the terms and conditions
 of any charterparty, contract of affreightment, agreement or related document in respect
 of the employment of the Vessel, such information to be certified by an authorised signatory
 of the Borrower as to their correctness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Banking operations</u>: subject to the provisions of Clause 13.7 *(<u>Relocation of Operating Account</u>)*,
 ensure that all banking operations in connection with the Vessel are carried out through
 the Operating Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pledged Deposit</u>: ensure that from the date of this Agreement and throughout the Security Period
 the Borrower shall maintain in the Operating Account with the Lender, cash minimum liquidity
 in the amount of Five hundred thousand Dollars ($500,000) pledged in favour of the Lender
 (herein, the  ***"Pledged Deposit"***);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Subordination</u>:
 ensure that all Financial Indebtedness of the Borrower to its shareholders is fully subordinated
 to the rights of the Lender under the Finance Documents, all in a form acceptable to the
 Lender, and to subordinate to the rights of the Lender under the Finance Documents any Financial
 Indebtedness issued to it by its shareholders, all in a form acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Obligations under Finance Documents</u>: duly and punctually perform each of the obligations expressed
 to be assumed by it under the Finance Documents to which is or it is to be a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Payment on demand</u>: pay to the Lender within seven (7) days from the Lender's first demand
 any sum of money which is due and payable by the Borrower to the Lender under this Agreement
 but in respect of which it is not specified in any other Clause when it is due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with Laws and Regulations</u>: to comply, or procure compliance with all laws or regulations
 relating to the Borrower and/or the Vessel, its ownership, operation and management or to
 the business of the Borrower and cause this Agreement and the other Finance Documents to
 comply with and satisfy all the requirements and formalities established by the applicable
 laws to perfect this Agreement and the other Finance Documents as valid and enforceable Finance
 Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Compliance with ISM Code</u>: procure that the Approved Manager and any Operator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will
 comply with and ensure that the Vessel and any Operator by no later than the Refinancing
 Date complies with the requirements of the ISM Code, including (but not limited to) the maintenance
 and renewal of valid certificates pursuant thereto throughout the Security Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately
 inform the Lender if there is any threatened or actual withdrawal of the Borrower's,
 the Approved Manager's or an Operator's DOC or the SMC in respect of the Vessel;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly
 inform the Lender upon the issue to the Borrower, the Approved Manager or any Operator of
 a DOC and to the Vessel of an SMC or the receipt by the Borrower, the Approved Manager or
 any Operator of notification that its application for the same has been realised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Compliance with ISPS Code</u>: procure that the Approved
 Manager or any Operator will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) maintain
 at all times a valid and current ISSC respect of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately
 notify the Lender in writing of any actual or threatened withdrawal, suspension, cancellation
 or modification of the ISSC in respect of the Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) procure
 that the Vessel will comply at all times with the ISPS Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Maintenance of Security Interests</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without
 limiting the generality of paragraph (q) above, at its own cost, promptly register, file,
 record or enrol any Finance Document with any court or authority in all Relevant Jurisdictions,
 pay any stamp, registration or similar tax in all Relevant Jurisdictions in respect of any
 Finance Document, give any notice or take any other step which may be 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Inspections/Surveys</u>:
 once per year or in case an Event of Default has occurred and is continuing at any time that
 the Lender might consider to be necessary or useful, have the Vessel inspected and/or surveyed
 at the expense of the Borrower by surveyors and/or inspectors appointed by the Lender and
 the Borrower hereby duly authorises the Lender to review the insurance and operating records
 of the Borrower provided that any inspections/surveys/reviews are conducted at reasonable
 times and without interfering with the daily operations and the ordinary trading of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Notification of litigation</u>: provide the Lender with details of any legal or administrative action
 relating to an amount exceeding Six hundred thousand Dollars ($600,000) involving the Borrower,
 the Approved Manager, the Vessel, the Earnings or the Insurances and of any legal or administrative
 action relating to an amount exceeding One million two hundred thousand Dollars ($1,200,000)
 involving the Corporate Guarantor, as soon as such action is instituted or it becomes apparent
 to the Borrower that it is likely to be instituted, unless it is clear that the legal or
 administrative action cannot be considered material in the context of any Finance Document
 and the Borrower shall procure that all reasonable measures are taken to defend any such
 legal or administrative action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Notification of default</u>: the Borrower will notify the Lender as soon as the Borrower becomes aware
 of the occurrence of an Event of Default and will keep the Lender fully up-to-date with all
 developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Registered address</u>: maintain its registered address at the address referred to in the Recital; and
 will not establish or do anything as a result of which it would be deemed to have, a place
 of business in the United Kingdom or the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No US Tax Obligor</u>: shall procure that, unless otherwise agreed by the Lender, it shall not
 become a US Tax Obligor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Compliance with Covenants</u>: duly and punctually perform all obligations under this Agreement and
 the other Finance Documents.

**8.2** **Negative undertakings** 

The Borrower undertakes with the Lender that, from the date of this Agreement and so long as any moneys are owing under the Finance Documents and until the full and complete payment and discharge of the Outstanding Indebtedness, <u>it will not, without the prior written consent of the Lender</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Negative pledge</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cease
 to hold the legal title to, and own the entire beneficial interest in the Vessel, its Insurances
 and Earnings, free from all Security Interests and other interests and rights of every kind,

 and the effect of the assignments contained in the General Assignment and any other Finance
 Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) permit
 any Security Interest (other than a Permitted Security Interest) to subsist, arise or be
 created or extended over all or any part of its present or future undertakings, assets, rights
 or revenues to secure or prefer any present or future Financial Indebtedness or other liability
 or obligation of the Borrower or any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No further Financial Indebtedness</u>: incur no further Financial Indebtedness other than Permitted
 Financial Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No merger</u>: merge or consolidate with any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No disposals</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) sell,
 transfer, abandon, lend, lease or otherwise dispose of or cease to exercise direct control
 over any part (being either alone or when aggregated with all other disposals falling to
 be taken into account pursuant to this Clause 8.2(d), material in the opinion of the Lender,
 in relation to the undertakings, assets, rights and revenues of the Borrower) of its present
 or future undertaking, assets, rights or revenues (otherwise than by transfers, sales or
 disposals for full consideration in the ordinary course of trading) whether by one or a series
 of transactions related or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) transfer,
 lease or otherwise dispose of 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 paragraphs (i) and (ii) above do not apply to :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) any charter of the Vessel, other than as provided in Clause 8.3 (a) *<u>(Chartering)</u>*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) any sale of the Vessel to a *bona fide* third party on arm's length terms, other than as provided in Clause 4.3 (b) (Sale or refinancing of the Vessel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No other business</u>: undertake any type of business other than the ownership and operation
 of the Vessel and the chartering of the Vessel to third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No acquisitions</u>: acquire any further assets other than the Vessel and rights arising under
 contracts entered into by or on behalf of the Borrower in the ordinary course of its business
 of owning, operating and chartering the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No other obligations</u>: incur any liability or obligations except liabilities and obligations
 arising under the Finance Documents or contracts entered into in the ordinary course of its
 business of owning, operating and chartering the Vessel or any other Permitted Financial
 Indebtedness, (and for the purposes of this Clause 8.2(g) *(<u>No other obligations</u>)* fees to be paid pursuant to the Management Agreements in respect of the Vessel shall
 be considered as permitted obligations under the Finance Documents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No repayment of borrowings</u>: following the occurrence of an Event of Default that is continuing,
 repay the principal of, or pay interest on or any other sum in connection with, any of its
 Financial Indebtedness except for Financial Indebtedness pursuant to the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Payments</u>: except pursuant to this Agreement and the other Finance Documents (and then
 only to the extent expressly permitted by the same) not pay out any funds (whether out of
 the Earnings or out of moneys collected under the General Assignment and/or the other Finance
 Documents or not) to any company or person except in connection with the administration of
 the Borrower, the operation, upgrade, maintenance and/or repair of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No guarantees</u>: issue any guarantees or indemnities or otherwise become directly or contingently
 liable for the obligations of any person, firm, or corporation except pursuant to the Finance
 Documents and except for guarantees or indemnities from time to time required in the ordinary
 course by any protection and indemnity or war risks association with which the Vessel is
 entered, guarantees required to procure the release of the Vessel from any arrest, detention,
 attachment or levy or guarantees or undertakings required for the salvage of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No loans</u>: make any loans or advances to, or any investments in any person, firm, corporation,
 joint venture or other entity including (without limitation) any loan or advance or grant
 any credit (save for normal trade credit in the ordinary course of business) to any officer,
 director, stockholder or employee or any other company managed by the Approved Manager directly
 or through the managers of the Vessel or agree to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No securities</u>: permit any Financial Indebtedness of the Borrower to any person (other than
 the Lender) to be guaranteed by any person (save, in the case of the Borrower, for guarantees
 or indemnities from time to time required in the ordinary course by any protection and indemnity
 or war risks association with which the Vessel is entered, guarantees required to procure
 the release of the Vessel from any arrest, detention, attachment or levy or guarantees or
 undertakings required for the salvage of the Vessel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No dividends or distribution</u>: on the condition that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no
 Event of Default has occurred and is continuing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 Event of Default will result from the payment of such dividends or the making of any other
 form of distribution or any redemption, purchase or return of share capital,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prior
 written notice in respect thereto will be given to the Lender, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 Total Liabilities/Total Assets ratio of the Corporate Guarantor does not exceed (or will
 not exceed, as a result of such payment of dividends or the making of any other form of distribution)
 75%,

the Borrower may declare or pay any dividends or make any other distribution under any name or description upon any of the issued shares or effect any form of redemption, purchase or return of share capital or otherwise dispose of any of its present or future assets, undertakings, rights or revenues (which are all assigned to the Lender) to any of its shareholders;

AND for the purposes of this sub-Clause 8.2(m):

***"Fleet Market Value"*** means, as of the date of calculation, the aggregate market value of all the vessels (including, but not limited to, the Vessel) from time to time owned by a member of the Group, as determined in accordance with the provisions *(mutatis-mutandis)* of Clause 8.5(b) *(<u>Valuation of Vessel</u>)*;

***"Total Assets"*** means, in respect of each Financial Year and by reference to the last day thereof, the aggregate on a consolidated basis of the assets of the Corporate Guarantor (including, for the avoidance of doubt, the assets of the other members of the Group and the aggregate of all monies standing to the credit of the Operating Account and any other account whether held in the name of the Corporate Guarantor or any other member of the Group and whether encumbered or otherwise) adjusted to reflect the aggregate Fleet Market Value, as reported in the financial statements to be provided to the Lender according to Clause 8.1(e) *(<u>Financial statements</u>)*; and

***"Total Liabilities"*** means, in respect of each Financial Year and by reference to the last day thereof, the consolidated liabilities of the Group which, in accordance with GAAP or (as the case may be) IFRS, are classified as liabilities less the aggregate of any shareholders' loans, which are unsecured and fully subordinated to all Financial Indebtedness incurred under the Finance Documents pursuant to a subordination agreement or otherwise, made to any one or more members of the Group, all as shown in the financial statements to be provided to the Lender according to Clause 8.1(e) *(<u>Financial statements</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No subsidiaries</u>: form or acquire any Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No change of Business Structure</u>: change the nature, organisation and conduct of the business
 of the Borrower as owner of the Vessel or the Approved Manager, as manager of Vessel, as
 the case may be, or carry on any business other than the business carried on at the date
 of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No change of Legal Structure</u>: (such consent not be unreasonably withheld) ensure that none
 of the documents defining the constitution of the Borrower shall be materially (in the Lender's
 opinion) altered in any manner whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Security Interest on assets</u>: allow any part of its undertaking, property, assets or rights,
 whether present or future, to be mortgaged, charged, pledged, used as a lien or otherwise
 encumbered without the prior written consent of the Lender save for any Permitted Security
 Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Master Agreement Derivatives</u>: not enter into any transaction in a derivative other than any
 under a master agreement entered into with the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>No change of control</u>: ensure that, throughout the Security Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Borrower remains, directly or indirectly, a fully (100%) owned Subsidiary of the Corporate
 Guarantor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at
 least 25% of the entire issued common shares/stock of the Corporate Guarantor shall be directly or indirectly held by the Beneficial Shareholders
 disclosed in writing to the Lender.

**8.3** **Undertakings concerning the Vessel** 

The Borrower hereby undertakes with the Lender that, from the Refinancing Date and until the full and complete payment and discharge of the Outstanding Indebtedness, that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Chartering</u>:
 not without the prior written consent of the Lender which shall not be unreasonably withheld
 (and then only subject to such conditions as the Lender may impose) let or agree to let the
 Vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on
 demise charter for any period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by
 any Assignable Charterparty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) other
 than on an arm's length basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No amendment to Assignable Charterparty</u>: not without the prior written consent of the Lender
 which shall not be unreasonably withheld waive or fail to enforce, any Assignable Charterparty
 to which it is a party or any of its provisions, and will promptly notify the Lender of any
 amendment or supplement to any Assignable Charterparty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Approved Manager</u>: not without the prior written consent of the Lender which shall not be unreasonably
 withheld appoint a manager of the Vessel other than the Approved Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Ownership/Management/Control</u>:
 ensure that the Vessel is and remains registered on the Refinancing Date in the ownership
 of the Borrower under the laws of the Flag State and thereafter ensure that the Vessel will
 maintain her ownership, management and control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Class</u>:
 ensure that the Vessel remains in class free of overdue recommendations by the Classification
 Society and provide the Lender on demand with copies of all class and trading certificates
 of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insurances</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) ensure that all Insurances (as defined in the relevant Mortgage/General Assignment) of the Vessel are maintained and comply with all insurance requirements specified in this Agreement and in the Mortgage and in case of failure to maintain the Vessel so insured, authorise the Lender (and such authorisation is hereby expressly given to the Lender) to have the right but not the obligation to effect such Insurances on behalf of the Borrower (and in case that the Vessel remains in port for an extended period) to effect port risks insurances at the cost of the Borrower which, if paid by the Lender, shall be Expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) if (i) an Event of Default has occurred and is continuing or (ii) there has been any change in the insurance placement within such year or (iii) there has been a Material Adverse Change of the financial condition of any of the insurers of the Vessel at the Lender's sole opinion, the Lender shall be entitled to obtain once per year at Borrower's expense an opinion from insurance consultants (appointed by the Lender at the Borrower's expense) as to the adequacy of the insurances effected or to be effected in respect of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Transfer/Security Interests</u>: except as provided in Clause 4.3 (b) *(<u>Sale of the Vessel - Refinancing</u>)*,
 not without the prior written consent of the Lender sell or otherwise dispose of the Vessel
 or any share therein or create or agree to create or permit to subsist any Security Interest
 over the Vessel (or any share or interest therein) other than Permitted Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Not imperil Flag, Ownership, Insurances</u>: ensure that the Vessel following the Refinancing
 Date is maintained and trades in conformity with the laws of the Flag State, of its owning
 company or of the nationality of the officers, the requirements of the Insurances and nothing
 is done or permitted to be done which could endanger the flag of the Vessel or its unencumbered
 (other than Security Interests in favour of the Lender and Security Interests permitted by
 this Agreement) ownership or its Insurances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Mortgage Covenants</u>: always comply with all the covenants provided for in the Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Assignment of Earnings</u>: not assign or agree to assign otherwise than to the Lender the Earnings
 or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Sharing of Earnings</u>: not, without the prior written consent of the Lender which shall not be
 unreasonably withheld

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) enter
 into any agreement or arrangement for the sharing or pooling of any Earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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 the Borrower to any Earnings; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Assignable Charterparty</u>: ensure and procure that in the event of the Vessel being employed under
 an Assignable Charterparty:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Borrower shall execute and deliver to the Lender within fifteen (15) days from the Lender's
 relevant request a specific assignment of all its rights, title and interest in and to such
 charter and any charter guarantee (if available) in the form of a Charterparty Assignment
 and a notice of such assignment addressed to the relevant charterer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Borrower will ensure (on a reasonable endeavours basis) that the relevant charterer and any
 charter guarantor agree to acknowledge to the Lender the specific assignment of such charter
 and charter guarantee by executing an acknowledgement substantially in the form included
 in the relevant Charterparty Assignment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in
 the case where such charter is a demise charter, procure that such demise charter includes
 a provision that (*inter alia*) the relevant charterer shall undertake to the Lender
 (aa) to comply with all of the Borrower's undertakings with regard to the employment,
 insurances, operation, repairs and maintenance of the Vessel contained in this Agreement,
 the Mortgage and the General Assignment and (bb) to provide *(inter alia)* an assignment
 of its interest in the insurances of the Vessel in the form of a tripartite agreement in
 form and substance acceptable to the Lender, to be made between the Lender, the Borrower
 and such charterer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No freight derivatives</u>: not enter into or agree to enter into any freight derivatives or
 any other instruments which have the effect of hedging forward exposures to freight derivatives
 without the Lender's consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with Environmental Laws</u>: comply with, and procure that all its Environmental Affiliates
 comply with, all Environmental Laws including without limitation, requirements relating to
 manning and establishment of financial responsibility and to obtain and comply with, and
 procure that all its Environmental Affiliates comply with, all Environmental Approvals and
 to notify the Lender forthwith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of
 any Environmental Claim for an amount or amounts in aggregate exceeding Six hundred thousand
 Dollars ($600,000) made against the Vessel, any Relevant Ship and/or her respective owner;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon
 becoming aware of any incident which may give rise to an Environmental Claim and to keep
 the Lender advised in writing of the Borrower's response to such Environmental Claim
 on such regular basis and in such detail as the Lender shall require; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>War Risk Insurance cover</u>: in the event of hostilities in any part of the world (whether war
 is declared or not), not cause or permit the Vessel to enter or trade to any zone which is
 declared a war zone by any government or by the Vessel's war risks insurers unless
 first obtaining the consent to such employment or trade of the insurers and complying with
 such requirements as to extra premium or otherwise as the insurers may prescribe require.

**8.4** **Validity of Securities - Earnings - Taxes etc.** 

The Borrower hereby undertakes with the Lender that, from the date of this Agreement and throughout the Security Period, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Validity</u>:
 ensure and procure that all governmental or other consents required by law and/or any other
 steps required for the validity, enforceability and legality of this Agreement and the other
 Finance Documents are maintained in full force and effect and/or appropriately taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Earnings</u>:
 ensure and procure that, unless and until directed by the Lender otherwise (i) all the Earnings
 of the Vessel shall be paid to the Operating Account and (ii) the persons from whom the Earnings
 are from time to time due are irrevocably instructed to pay them to the Operating Account
 or to such account in the name of the Borrower as shall be from time to time determined by
 the Lender in accordance with the provisions of this Agreement and/or the relevant Security
 Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Taxes</u>:
 pay all Taxes, assessments and other governmental charges when the same fall due, except
 to the extent that the same are being contested in good faith by appropriate proceedings
 and adequate reserves have been set aside for their payment if such proceedings fail; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Additional Documents</u>: from time to time at the request of the Lender execute and deliver to the
 Lender or procure the execution and delivery to the Lender of all such documents as shall
 be deemed necessary at the reasonable discretion of the Lender for giving full effect to
 this Agreement, and for perfecting, protecting the value of or enforcing any rights or securities
 granted to the Lender under any one or more of this Agreement, the other Finance Documents
 and any other documents executed pursuant hereto or thereto and in case that any conditions
 precedent (with the Lender's consent) have not been fulfilled prior to the Refinancing
 Date, such conditions shall be complied with within ten (10) Business Days after the Lender's
 written request (unless the Lender agrees otherwise in writing) and failure to comply with
 this covenant shall be an Event of Default.

**8.5** **Security cover - Valuation of the Vessel** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Security shortfall - Additional Security</u>: If at any time during the Security Period, the Security
 Value shall be less than the Security Requirement, the Lender may give notice to the Borrower
 requiring that such deficiency be remedied and then the Borrower shall (unless the sole cause
 of such deficiency is the Total Loss of the Vessel and the Borrower is in full compliance
 with his obligations in relation to such Total Loss) either;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepay
 (in accordance with Clause 4.2 *(<u>Voluntary prepayment</u>)* (but without regard to
 the requirement for five (5) days' prior notice or for minimum amount prepaid) within
 a period of forty five (45) days of the date of receipt by the Borrower of the Lender's
 said notice (the  ***"Prepayment Date"***) such sum in Dollars as will
 result in the Security Requirement after such prepayment (taking into account any other repayment
 of the Loan made or to be made between the date of the notice and the date of such prepayment)
 being at least equal to the Security Value; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) on
 or before the Prepayment Date constitute to the satisfaction of the Lender such additional
 security for the Loan as shall be acceptable to the Lender having a net realisable value
 for security purposes (as determined by the Lender in its absolute discretion) at the date
 upon which such additional security shall be constituted which, when added to the Security
 Value, shall not be less than the Security Requirement as at such date. Such additional security
 shall be constituted by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) additional
 pledged cash deposits in favor of the Lender in an amount equal to such shortfall with the
 Lender and in an account and manner to be determined by the Lender; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any
 other security acceptable to the Lender at its absolute discretion to be provided in a manner
 determined by the Lender.

Any such additional security provided to the Lender shall be promptly released by the Lender once the Lender has been satisfied that i) the Security Requirement Ratio has been and remains restored for ninety (90) days and ii) at the relevant time, no Event of Default has occurred and is continuing or will result from such release. The provisions of Clause 4.4 *(<u>Amounts payable on prepayment)</u>* shall apply to prepayments under Clause 8.5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Valuation of Vessel</u>: (except for valuations obtained in accordance with Clause 7.2 (q) (*<u>Valuations</u>*)
 for the purpose of determining the Market Value of the Vessel prior to drawdown of the Commitment)
 the Vessel shall, for the purposes of this Clause 8.5, be valued in Dollars once in each
 calendar year or, if an Event of Default has occurred and is continuing, at any other time
 that the Lender shall reasonably require and for as long as such Event of Default is continuing,
 by two (2) Approved Shipbrokers, one appointed by the Lender and one appointed by the Borrower
 (such valuations to be addressed to the Lender and to be made without, unless required by
 the Lender, physical inspection, and on the basis of a sale for prompt delivery for cash
 at arm's length on normal commercial terms as between a willing buyer and a willing
 seller, without taking into account the benefit of any charterparty or other engagement concerning
 the Vessel). The Lender and the Borrower agree to accept the average of such valuations made
 by the Approved Shipbrokers appointed as aforesaid as conclusive evidence of the Market Value
 of the Vessel at the date of such valuations and that the average of such valuations shall
 constitute the Market Value of the Vessel for the purposes of this Clause 8.5.

Notwithstanding the foregoing, each time that the Market Value of the Vessel needs to be determined under this Agreement, the Borrower may elect to waive its right to appoint, and obtain a valuation from a second Approved Shipbroker, in which case the valuation made by the Approved Shipbroker appointed by the Lender shall constitute the Market Value of the Vessel for the purposes of this Clause 8.5(b). Any waiver made by the Borrower under this Clause will be in writing and shall not prejudice the Borrower's right to appoint and obtain a valuation from, a second Approved Shipbroker, at any other time that the Market Value of the Vessel needs to be determined under this Agreement, whether before or after such waiver.

The value of the Vessel determined in accordance with the provisions of this Clause 8.5 shall be binding upon the Borrower and the Lender until such time as any further such valuations shall be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Information</u>:
 The Borrower undertakes to the Lender to supply to the Lender and to any such Approved Shipbrokers
 such information concerning the Vessel (or any other vessel over which additional security
 has been created in accordance with Clause 8.5 (a) (ii) (*Security shortfall- Additional security*)) and its condition as such Approved Shipbrokers may reasonably require for
 the purpose of making any such valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Costs</u>:
 All costs in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Lender obtaining any valuation of the Vessel referred to in Clause 8.5(b) *(<u>Valuation of Vessel</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 valuation of any additional security for the purposes of ascertaining the Security Value
 at any time or necessitated by the Borrower electing to constitute additional security pursuant
 to Clause 8.5(a)(ii): and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 legal and other expenses incurred by the Lender in connection with any matter arising out
 of this Clause 8.5

shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Valuation of additional security</u>: For the purpose of this Clause 8.5, the market value of any additional
 security provided or to be provided to the Lender shall be determined by the Lender in its
 absolute discretion without any necessity for the Lender assigning any reason thereto and
 if such security consists of a vessel shall be that shown by a valuation complying with the
 requirements of Clause 8.5(b) *(<u>Valuation of Vessel</u>)* (whereas the costs shall
 be borne by the Borrower in accordance with Clause 8.5(d) *(<u>Costs</u>)*) or if the
 additional security is in the form of a cash deposit full credit shall be given for such
 cash deposit on a Dollar for Dollar basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Documents and evidence</u>: In connection with any additional security provided in accordance with
 this Clause 8.5, the Lender shall be entitled to receive such evidence and documents of the
 kind referred to in Schedule 2 as may in the Lender's opinion be appropriate and such
 favourable legal opinions as the Lender shall in its discretion require.

**8.6** **Sanctions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without
 Limiting Clause 8.7 *(<u>Compliance with laws etc.</u>)*, the Borrower hereby undertakes
 with the Lender that, from the date of this Agreement and until the date that the Outstanding
 Indebtedness is paid in full, shall ensure that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Vessel will not be used by or for the benefit of a Sanctions Restricted Person contrary to
 Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Vessel will not be used in trading in any Sanctions Restricted Jurisdiction or in any manner
 contrary to Sanctions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Vessel will not be traded in any manner which would trigger the operation of any sanctions
 limitation or exclusion clause (or similar) in the Insurances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not
 directly or to its knowledge (after reasonable enquiry) indirectly use or permit to be used
 all or any part of the proceeds of the Loan, or lend, contribute or otherwise make available
 such proceeds directly or to its knowledge (after reasonable enquiry) indirectly, to any
 person or entity (i) to finance or facilitate any activity or transaction of or with any
 Sanctions Restricted Person contrary to Sanctions or in any Sanctions Restricted Country,
 or (ii) in any other manner that would result in a violation of any Sanctions by any Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall
 not fund all or part of any payment under the Loan out of proceeds derived directly or to
 its knowledge (after reasonable enquiry) indirectly from any activity or transaction with
 a Sanctions Restricted Person contrary to Sanctions or in a Sanctions Restricted Jurisdiction
 or which would otherwise cause any party to be in breach of any Sanctions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) procure
 that no proceeds to its knowledge (after reasonable enquiry) from activities or business
 with a Sanctions Restricted Person contrary to Sanctions or in a Sanctions Restricted Jurisdiction
 are credited to the Operating Account.

**8.7** **Compliance with laws etc.** 

The Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) comply,
 or procure compliance with all laws or regulations by the relevant Security Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) relating
 to its respective business generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) relating
 to the Vessel, its ownership, employment, operation, management and registration including,
 but not limited to, the ISM Code, the ISPS Code, all Environmental Laws and the laws of the
 Flag State; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obtain,
 comply with and do all that is necessary to maintain in full force and effect any Environmental
 Approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) without
 limiting paragraph (a) above, not employ the Vessel nor allow its employment, operation or
 management in any manner contrary to any law or regulation including, but not limited to,
 the ISM Code, the ISPS Code and all Environmental Laws which has or is likely to have a Material
 Adverse Effect on the business, position, profitability, assets or the financial condition
 of any of the Security Parties and Sanctions.

**8.8** **Know your customer and money laundering compliance** 

The Borrower hereby undertakes with the Lender that, from the date of this Agreement and so long as any moneys are owing under the Finance Documents and while all or any part of the Commitment remains outstanding, it will provide the Lender, or procure the provision of, such documentation and other evidence as the Lender shall from time to time require, based on applicable law and regulations from time to time and the Lender's own internal guidelines from time to time to identify the Borrower and the other Security Parties, including the disclosure in writing of the ultimate legal and beneficial owner or owners of such entities, and any other persons involved or affected by the transaction(s) contemplated by this Agreement in order for the 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.

**9.** **EVENTS OF DEFAULT** 

**9.1** **Events** 

There shall be an Event of Default if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-payment</u>:
 any Security Party fails to pay any sum payable by it under any of the Finance Documents
 at the time, in the currency and in the manner stipulated in the Finance Documents (and so
 that, for this purpose, sums payable on demand shall be treated as having been paid at the
 stipulated time if paid within five (5) Business Days of demand and other sums due shall
 be treated as having been paid at the stipulated time if paid within three (3) Business Days
 of its falling due); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Breach of Insurance and certain other obligations</u>: the Borrower fails to obtain and/or maintain
 the Insurances (as defined in, and in accordance with the requirements of, the Finance Documents)
 or if any insurer in respect of such Insurances cancels the Insurances or disclaims liability
 by reason, in either case, of mis-statement in any proposal for the Insurances or for any
 other failure or default on the part of the Borrower or the Borrower commits any breach of
 or omits to observe any of the obligations or undertakings expressed to be assumed by it
 under Clause 8 *(<u>Covenants</u>)*; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of other obligations</u>: any Security Party commits any breach of or omits to observe any
 of its obligations or undertakings expressed to be assumed by it under any of the Finance
 Documents (other than those referred to in Clauses 9.1(a) *(<u>Non-payment</u>)* and
 9.1(b) *(<u>Breach of Insurance and certain other obligations</u>)*) and, in respect
 of any such breach or omission which in the opinion of the Lender is capable of remedy, such
 action as the Lender may require shall not have been taken within fifteen (15) Business Days
 of the Lender notifying in writing the relevant Security Party of such default and of such
 required action; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Misrepresentation</u>:
 any representation or warranty made or deemed to be made or repeated by or in respect of
 any Security Party in or pursuant to any of the Finance Documents or in any notice, certificate
 or statement referred to in or delivered under any of the Finance Documents is or proves
 to have been incorrect or misleading in any material respect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Cross-default</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Financial Indebtedness of the Borrower relating to an amount exceeding Six hundred thousand
 Dollars ($600,000) or any Financial Indebtedness of the Corporate Guarantor relating
 to an amount exceeding One million two hundred thousand Dollars ($1,200,000) is not paid
 when due (unless contested in good faith), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Financial Indebtedness of the Borrower relating to an amount exceeding Six hundred thousand
 Dollars ($600,000) or any Financial Indebtedness of the Corporate Guarantor relating
 to an amount exceeding One million two hundred thousand Dollars ($1,200,000) (whether by
 declaration or automatically in accordance with the relevant agreement or instrument constituting
 the same) becomes due and payable prior to the date when it would otherwise have become due
 (unless as a result of the exercise by the Borrower or the Corporate Guarantor (as the case
 may be) of a voluntary right of prepayment), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 facility or commitment available to the Borrower relating to Financial Indebtedness relating
 to an amount exceeding Six hundred thousand Dollars ($600,000) or any facility or commitment available to the Corporate Guarantor
 relating to Financial Indebtedness relating to an amount exceeding One million two hundred
 thousand Dollars ($1,200,000) is withdrawn, suspended or cancelled by reason of any default
 (however described) of the person concerned unless the Borrower or the Corporate Guarantor
 (as the case may be) shall have satisfied the Lender that such withdrawal, suspension or
 cancellation will not affect or prejudice in any way the Borrower's or the Corporate
 Guarantor's (as the case may be) ability to pay its debts as they fall due, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 guarantee given by the Borrower or the Corporate Guarantor in respect of Financial Indebtedness
 relating, with respect to the Borrower to an amount exceeding Six hundred thousand Dollars
 ($600,000) and in respect of the Corporate Guarantor, to an amount exceeding One million
 two hundred thousand Dollars ($1,200,000) is not honoured when due and called upon; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Legal process</u>: any judgment or order made or commenced in good faith by a person against any
 of the Borrower and the Corporate Guarantor relating with respect to the Borrower to an amount
 exceeding Six hundred thousand Dollars ($600,000) and in respect of the Corporate Guarantor,
 to an amount exceeding One million two hundred thousand Dollars ($1,200,000), is not stayed
 or complied with within thirty (30) Business Days or a good faith creditor attaches or takes
 possession of, or a distress, execution, sequestration or other *bona fide* process
 relating with respect to the Borrower to an amount exceeding Six hundred thousand Dollars
 ($600,000) and in respect of the Corporate Guarantor, to an amount exceeding One million
 two hundred thousand Dollars ($1,200,000), is levied or enforced upon or sued out against,
 any of the undertakings, assets, rights or revenues of any of the Borrower and the Corporate
 Guarantor and is not discharged within thirty (30) Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insolvency</u>:
 any Security Party becomes insolvent or stops or suspends making payments (whether of principal
 or interest) with respect to all or any class of its debts or announces an intention to do
 so; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reduction or loss of capital</u>: a meeting is convened by the Borrower for the purpose of passing
 any resolution to purchase, reduce or redeem any of its share capital; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Winding up</u>: any petition is presented or other step is taken for the purpose of winding up any
 Security Party or an order is made or resolution passed for the winding up of any Security
 Party or a notice is issued convening a meeting for the purpose of passing any such resolution;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Administration</u>:
 any *bona fide* petition is presented or other step is taken for the purpose of the
 appointment of an administrator of any Security Party or an administration order is made
 in relation to any Security Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Appointment of receivers and managers</u>: any administrative or other receiver is appointed of any Security
 Party or any material (in the Lender's opinion) part of its assets and/or undertaking
 or any other steps are taken to enforce any Security Interest over all or any material (in
 the Lender's opinion) part of the assets of any Security Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Compositions</u>:
 any steps are taken, or negotiations commenced, by any Security Party or by any of its creditors
 with a view to the general readjustment or rescheduling of all or a material (in the Lender's
 opinion) part of its indebtedness or to proposing any kind of composition, compromise or
 arrangement involving such company and any of its creditors <u>provided, however, that</u> if the Borrower is able to provide such evidence as is satisfactory in all respects to the
 Lender that such rescheduling will not relate to any payment default or anticipated default
 the same shall not constitute an Event of Default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Analogous proceedings</u>: there occurs, in relation to any Security Party, in any country or territory
 in which any of them carries on business or to the jurisdiction of whose courts any part
 of their assets is subject, any event which in that country or territory corresponds with,
 or have an effect equivalent or similar to, any of those mentioned in Clause 9.1 paragraphs
 (f) *(<u>Legal process</u>)* through (l) *(<u>Compositions</u>)* (inclusive) or
 any Security Party otherwise becomes subject, in any such country or territory, to the operation
 of any law relating to insolvency, bankruptcy or liquidation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Cessation of business</u>: any Security Party suspends or ceases to carry on its business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Seizure</u>:
 all or a material part of the undertaking, assets, rights or revenues of, or shares or other
 ownership interests in, any Security Party are seized, nationalised, expropriated or compulsorily
 acquired by or under the authority of any government; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Invalidity</u>:
 any of the Finance Documents shall at any time and for any reason become invalid or unenforceable
 or otherwise cease to remain in full force and effect, or if the validity or enforceability
 of any of the Finance Documents shall at any time and for any reason be contested by any
 Security Party which is a party thereto, or if any such Security Party shall deny that it
 has any, or any further, liability thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Unlawfulness</u>:
 it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the
 covenants and obligations expressed to be assumed by it in any of the Finance Documents or
 for the Lender to exercise the rights or any of them vested in it under any of the Finance
 Documents or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Repudiation</u>:
 any Security Party repudiates any of the Finance Documents or does or causes or permits to
 be done any act or thing evidencing an intention to repudiate any of the Finance Documents;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Security Interests enforceable</u>: any Security Interest (other than Permitted Security Interests)
 in respect of any of the property (or a material (in the Lender's opinion) part thereof)
 which is the subject of any of the Finance Documents becomes enforceable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Material Adverse Change</u>: there occurs, in the reasonable opinion of the Lender, a Material Adverse
 Change in the financial condition of any of the Borrower and the Corporate Guarantor as described
 by the Borrower or any other Security Party to the Lender in the negotiation of this Agreement,
 which materially impairs the ability of the above Security Parties (or either of them) to
 perform their respective obligations under this Agreement and the Finance Documents to which
 is or is to be a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Arrest</u>:
 the Vessel is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained
 in exercise or purported exercise of any possessory lien or other claim or otherwise taken
 from the possession of the Borrower (otherwise than due to an event falling within the definition
 of Total Loss) and the Borrower shall fail to procure the release of the Vessel within a
 period of forty (40) Business Days thereafter; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Registration</u>:
 the registration of the Vessel under the laws and flag of the Flag State is cancelled or
 terminated without the prior written consent of the Lender or, if applicable, the Vessel
 is only provisionally registered on the Refinancing Date and is not permanently registered
 under the laws and flag of the Flag State at least thirty (30) days prior to the deadline
 for completing such permanent registration; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Unrest</u>:
 the Flag State of the Vessel becomes involved in hostilities or civil war or there is a seizure
 of power in such Flag State by unconstitutional means if, in any such case, (a) such event
 could in the opinion of the Lender reasonably be expected to have a Material Adverse Effect
 on the security constituted by any of the Finance Documents and (b) the Borrower has failed
 within thirty (30) days from receiving notice from the Lender to this effect to (i) delete
 the Vessel from its Flag State and (ii) re-register the Vessel under another Flag State approved
 by the Lender in its sole discretion through a relevant Registry, in each case, at the Borrowers'
 cost and expense; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Approved Manager</u>: there occurs, in relation to an Approved Manager any of the events mentioned
 in Clause 9.1 paragraphs (e) *(<u>Legal process</u>)* through (m) *(<u>Cessation of business</u>)* (inclusive) and the Borrower fails to appoint a new Approved Manager of
 the Vessel acceptable to the Lender such acceptance not to be unreasonably withheld within
 ten (10) days of becoming aware of the occurrence of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Environment</u>:
 any Relevant Party and/or the Approved Manager fails to comply with any Environmental Law
 or any Environmental Approval or the Vessel is involved in any incident which gives rise
 or which may give rise to any Environmental Claim, if in any such case, such non-compliance
 or incident or the consequences thereof could (in the reasonable opinion of the Lender) be
 expected to have a Material Adverse Effect on the business assets, operations, property or
 financial condition of the Borrower or any other Security Party or on the security created
 by any of the Finance Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>P&I</u>:
 the Borrower fails or omits to comply with any requirements of the protection and indemnity
 association or other insurer with which the Vessel is entered for insurance or insured against
 protection and indemnity risks (including oil pollution risks) to the effect that any cover
 in relation to the Vessel (including without limitation, liability for Environmental Claims
 arising in jurisdictions where the Vessel operates or trades) is or may be liable to cancellation,
 qualification or exclusion at any time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Shareholding-Change of control</u>: there is a breach of paragraphs (i) or (ii) of sub-Clause 8.2(s) (No change
 of control) without the prior written consent of the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Change of Management</u>: the Vessel ceases to be managed by the Approved Manager (for any reason
 other than the reason of a Total Loss or sale of the Vessel) without the approval of the
 Lender, which shall not be unreasonably withheld, and the Borrower fails to appoint another
 Approved Manager prior to the termination of the mandate with the previous relevant Approved
 Manager; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Deviation of Earnings</u>: any Earnings of the Vessel are not paid to the Operating Account for any
 reason whatsoever (other than with the Lender's prior written consent); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>ISM Code and ISPS Code</u>: (without prejudice to the generality of sub-Clause 9.1(c) *(<u>Breach of other obligations</u>)*) for any reason whatsoever the provisions of Clause 8.1(o) *(<u>Compliance with ISM Code</u>)* and (p) *(<u>Compliance with ISPS Code</u>)* are
 not complied with and the Vessel ceases to comply with the ISM Code or, as the case may be,
 the ISPS Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Sanctions:</u> (without prejudice to the generality of sub-Clause 9.1(c) *(<u>Breach of other obligations</u>*))
 for any reason whatsoever the provisions of Clause 8.6 *(<u>Sanctions</u>)* and Clause
 8.7 *(<u>Compliance with laws etc.</u>)* are not complied with.

**9.2** **Consequences of Default – Acceleration** 

The Lender may without prejudice to any other rights of the Lender (which will continue to be in force concurrently with the following), at any time after the happening of an Event of Default, which is continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by
 notice to the Borrower declare that the obligation of the Lender to make the Commitment (or
 any part thereof) available shall be terminated, whereupon the Commitment shall be reduced
 to zero forthwith; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 notice to the Borrower declare that the Loan and all interest accrued and all other sums
 payable under the Finance Documents have become due and payable, whereupon the same shall,
 immediately or in accordance with the terms of such notice, become due and payable without
 any further diligence, presentment, demand of payment, protest or notice or any other procedure
 from the Lender which are expressly waived by the Borrower; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) put
 into force and exercise all or any of the rights, powers and remedies possessed by the Lender
 under this Agreement and/or under any other Finance Document and/or as mortgagee of the Vessel,
 mortgagee, chargee or assignee or as the beneficiary of any other property right or any other
 security (as the case may be) of the assets charged or assigned to it under the Finance Documents
 or otherwise (whether at law, by virtue of any of the Finance Documents or otherwise).

**9.3** **Multiple notices; action without notice** 

The Lender may serve notices under paragraphs (a) and (b) of Clause 9.2 *(<u>Consequences of Default – Acceleration</u>)* simultaneously or on different dates and it may take any action referred to in that Clause if no such notice is served or simultaneously with or at any time after service of both or either of such notices, it being understood and agreed that the non-service of a notice in respect of an Event of Default hereunder, or under any of the Finance Documents (whether known to the Lender or not), shall not be construed to mean that the Event of Default shall cease to exist and bring about its lawful consequences.

**9.4** **Demand basis** 

If, pursuant to Clause 9.2(b), the Lender declares the Loan to be due and payable on demand, the Lender may by written notice to the Borrower (a) call for repayment of the Loan on such date as may be specified whereupon the Loan shall become due and payable on the date so specified together with all interest accrued and all other sums payable under this Agreement or (b) withdraw such declaration with effect from the date specified in such notice.

**9.5** **Proof of Default** 

It is agreed that (i) the non-payment of any sum of money in time will be proved conclusively by mere passage of time and (ii) the occurrence of this (non-payment) shall be proved conclusively by a mere written statement of the Lender (save for manifest error).

**9.6** **Exclusion of Lender 's liability** 

Neither the Lender nor any receiver or manager appointed by the Lender, shall have any liability to the Borrower or a Security Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 the Lender or a receiver or manager from liability for losses shown to have been caused by the wilful misconduct of the Lender's own officers and employees or (as the case may be) such receiver's or manager's own partners or employees.

**10.** **INDEMNITIES - EXPENSES – FEES** 

**10.1** **Indemnity** 

The Borrower shall on demand (and it is hereby expressly undertaken by the Borrower to) indemnify the Lender, without prejudice to any of the other rights of the Lender under any of the Finance Documents, against any loss (including, in the cases referred to in sub clauses (a) and (b) of this Clause, loss of the Applicable Margin and in every case, any Break Costs) or expense which the Lender sustains or incurs as a consequence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 default in payment by any of the Security Parties of any sum under any of the Finance Documents
 when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 occurrence of any Event of Default which is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 prepayment of the Loan or part thereof being made under Clauses 4.2 *(<u>Voluntary Prepayment</u>)* and 4.3 (*<u>Compulsory Prepayment in case of Total Loss or sale or refinancing of the Vessel</u>)*, 8.5(a) *(<u>Security shortfall</u>),* 12.1 (*<u>Unlawfulness</u>*)
 or 12.4 (*<u>Option to prepay</u>*) or any other repayment of the Loan or part thereof
 being made otherwise than on an Interest Payment Date relating to the part of the Loan prepaid
 or repaid; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Commitment not being advanced for any reason (excluding any default by the Lender and any
 reason mentioned in Clause 12.1 *(<u>Unlawfulness</u>)*) after the Drawdown Notice has
 been given, including, in any such case, but not limited to, any loss or expense sustained
 or incurred in maintaining or funding the Loan or any part thereof or in liquidating or re-employing
 deposits from third parties acquired to effect or maintain the Loan or any part thereof.

**10.2** **Expenses** 

The Borrower shall (and it is hereby expressly undertaken by the Borrower to) pay to the Lender on demand:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial and Amendment expenses</u>: all expenses (including reasonable legal, printing and out-of-pocket
 expenses) reasonably incurred by the Lender in connection with the negotiation, preparation
 and execution of this Agreement and the other Finance Documents and of any amendment or extension
 of or the granting of any waiver or consent under this Agreement and/or any of the Finance
 Documents and/or in connection with any proposal by the Borrower to constitute additional
 security pursuant to sub-Clause 8.5(a) *(<u>Security shortfall</u>)*, whether any such
 security shall in fact be constituted or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Enforcement expenses</u>: all expenses (including reasonable legal and out-of-pocket expenses) incurred
 by the Lender in contemplation of, or otherwise in connection with, the enforcement of, or
 preservation of any rights under, this Agreement and/or any of the other Finance Documents,
 or otherwise in respect of the moneys owing under this Agreement and/or any of the other
 Finance Documents or the contemplation or preparation of the above, whether they have been
 effected or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Legal costs</u>: the legal costs of the Lender's appointed lawyers, in respect of the preparation
 of this Agreement and the other Finance Documents as well as the legal costs of the foreign
 lawyers (if these are available) in respect of the registration of the Finance Documents
 or any search or opinion given to the Lender in respect of the Security Parties or the Vessel
 or the Finance Documents. The said legal costs shall be due and payable on the Drawdown Date;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other expenses</u>: any and all other Expenses.

**10.3** **Break Costs** 

If 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 Lender has or will, with effect from a specified date, incur Break Costs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Lender shall promptly notify the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Borrower shall, within five (5) Business Days of the Lender's demand, pay to the Lender
 the amount of such Break Costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Lender shall, as soon as reasonably practicable, following a request by the Borrower, provide
 a certificate confirming the amount of the 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 10.3, ***"Break Costs"*** means, in relation to a Payment the amount (if any) by which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 interest (excluding Applicable Margin) which the Lender, should have received in accordance
 with Clause 3 *(<u>Interest</u>)* 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 amount which the Lender, would be able to obtain by placing an amount equal to such Payment
 on deposit with a leading bank 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.

**10.4** **Stamp duty – Value Added Tax** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Borrower shall pay (if applicable) any and all stamp, registration and similar taxes or charges
 (including those payable by the Lender) imposed by governmental authorities in relation to
 this Agreement and any of the other Finance Documents, and shall indemnify the Lender against
 any and all liabilities with respect to, or resulting from delay or omission on the part
 of the Borrower to pay such stamp taxes or charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 fees and expenses payable pursuant to this Clause 10 shall be paid together with value added
 tax (if applicable) or any similar tax (if any) properly chargeable thereon. Any value added
 tax chargeable in respect of any services supplied by the Lender under this Agreement shall,
 on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid
 hereunder.

**10.5** **Environmental Indemnity** 

The Borrower shall indemnify the Lender on demand and hold the Lender harmless from and against all costs, expenses, payments, charges, losses, demands, liabilities, actions, proceedings (whether civil or criminal) penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be suffered, incurred or paid by, or made or asserted against the Lender at any time, whether before or after the repayment in full of principal and interest under this Agreement, relating to, or arising directly or indirectly in any manner or for any cause or reason out of an Environmental Claim made or asserted against the Lender if such Environmental Claim would not have been, or been capable of being, made or asserted against the Lender if it had not entered into any of the Finance Documents and/or exercised any of its rights, powers and discretions thereby conferred and/or performed any of its obligations thereunder and/or been involved in any of the transactions contemplated by the Finance Documents.

**10.6** **Currency indemnity** 

If any sum due from the Borrower under any of the Finance Documents or any order or judgement given or made in relation hereto has to be converted from the currency (the *"first currency"*) in which the same is payable under the relevant Finance Document or under such order or judgement into another currency (the *"second currency"*) for the purpose of (i) making or filing a claim or proof against the Borrower or any other Security Party, as the case may be or (ii) obtaining an order or judgement in any court or other tribunal or (iii) enforcing any order or judgement given or made in relation to any of the Finance Documents, the Borrower shall (and it is hereby expressly undertaken by the Borrower to) indemnify and hold harmless the Lender from and against any loss suffered as a result of any difference between (a) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Lender may in the ordinary course of business purchase the first currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgement, claim or proof. The term *"rate of exchange"* includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency.

**10.7** **Maintenance of the Indemnities** 

The indemnities contained in this Clause 10 shall apply irrespective of any indulgence granted to the Borrower or any other party from time to time and shall continue to be in full force and effect notwithstanding any payment in favour of the Lender and any sum due from the Borrower under this Clause 10 will be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under any one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto.

**10.8** **MII costs** 

The Borrower shall reimburse the Lender on demand for any and all costs incurred by the Lender (as conclusively certified by the Lender) in effecting and keeping effected a Mortgagee's Interest Insurance (herein, ***"MII"***), which the Lender may at any time effect on such terms, for an amount of 120% of the Loan and with such insurers as shall from time to time be determined by the Lender, <u>provided, however, that</u> the Lender shall in its absolute discretion appoint and instruct in respect of such MII policy the insurance brokers in respect of such Insurance and <u>provided, further, that</u> in the event that the Lender effects any such Insurance on the basis of any mortgagee's open cover, the Borrower shall pay on demand to the Lender its proportion of premium due in respect of the Vessel(s) for which such insurance cover has been effected by the Lender, provided always that the Lender has provided the Borrower with copies of the corresponding invoice from the MII insurers/their brokers and any certificate of the Lender in respect of any such premium due by the Borrower shall (save for manifest error) be conclusive and binding upon the Borrower.

**10.9** **Central Bank or European Central Bank reserve requirements indemnity** 

The Borrower shall on demand promptly indemnify the Lender against any documented cost incurred or loss suffered by the Lender as a result of its complying with the minimum reserve requirements of the European Central Bank and/or with respect to maintaining required reserves with the relevant national Central Bank to the extent that such compliance relates to the Commitment or deposits obtained by it to fund the whole or part of the Loan and to the extent such cost or loss is not recoverable by the Lender under Clause 12.2 *(<u>Increased cost</u>)*.

**10.10** **Communications Indemnity** 

It is hereby agreed in connection with communications that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Express
 authority is hereby given by the Borrower to the Lender to accept all tested or untested
 communications given by facsimile, electronic mail or otherwise, regarding any or all of
 the notices (as defined in Clause 16.4 *(<u>Meaning of "notice"</u>)* under
 this Agreement, subject to any restrictions imposed by the Lender relating to such notices
 including, without limitation (if so required by the Lender), the obligation to confirm such
 notices by letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrower shall recognise any and all of the said notices as legal, valid and binding, when
 these notices come from the fax number or electronic mail address mentioned in Clause 16.1 *(<u>Notices</u>)* or any other fax or electronic mail address usually used by it or
 the Approved Manager and are duly signed or in case of emails are duly sent by the person
 appearing to be sending such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Borrower hereby assumes full responsibility for the execution of the said notices, and promises
 and recognises that the Lender shall not be held responsible for any loss, liability or expense
 that may result from such notices, save in case of Lender's wilful misconduct. It is
 hereby undertaken by the Borrower to indemnify in full the Lender from and against all actions,
 proceedings, damages, costs, claims, demands, expenses and any and all direct and/or indirect
 losses which the Lender may suffer, incur or sustain by reason of the Lender following such
 notices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With
 regard to notices (as defined in Clause 16.4 *(<u>Meaning of "notice"</u>)* issued by electronic and/or mechanical processes (e.g. by facsimile or electronic mail) the
 following are applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Borrower hereby acknowledges and accepts the risks associated with the use of unsecured electronic
 mail communication including, without limitation, risk of delay, loss of data, confidentiality
 breach, forgery, falsification and malicious software. The Lender shall not be liable in
 any way for any loss or damage or any other disadvantage suffered by the Borrower resulting
 from such unsecured electronic mail communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If
 the Borrower or any other Security Party wishes to cease all electronic communication, it
 shall give written notice to the Lender accordingly after receipt of which notice the Parties
 shall cease all electronic communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For
 as long as electronic communication is an accepted form of communication, the Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) notify
 each other of any change to their respective addresses or any other such information supplied
 to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in
 case electronic communication is sent to recipients with the domain < *pyxistankers.com* >,
 the parties shall without undue delay inform each other if there are changes to the said
 domain or if electronic communication shall thereafter be sent to individual electronic mail
 addresses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 risks of misunderstandings and errors resulting from notices (as defined in Clause 16.4 *(<u>Meaning of "notice"</u>)* being given as mentioned above, are for the Borrower and
 the Lender will be indemnified in full pursuant to this Clause save in case of Lender's
 wilful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Lender shall have the right to ask the Borrower to furnish any information the Lender may
 require to establish the authority of any person purporting to act on behalf of the Borrower
 for these notices, but it is expressly agreed that there is no obligation for the Lender
 to do so. The Lender shall be fully protected in, and the Lender shall incur no liability
 to the Borrower for acting upon the said notices, which were believed by the Lender in good
 faith to have been given by the Borrower or by any of its authorised representative(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) It
 is undertaken by the Borrower to use its best endeavours to safeguard the function and the
 security of the electronic and mechanical appliance(s) such as fax(es), electronic mail(s)
 etc. The Borrower shall hold the Lender harmless and indemnified from all claims, losses,
 damages and expenses which the Lender may incur by reason of the failure of the Borrower
 to comply with the obligations under this Clause.

**10.11** **Fees** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Arrangement fee</u>: The Borrower shall pay to the Lender an arrangement fee (the  ***"Arrangement Fee"***) in the amount of Dollars Fifty thousand ($50,000) payable on the Drawdown
 Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-refundable</u>:
 The Arrangement Fee shall be non-refundable.

**10.12** **FATCA Deduction** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 shall not 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 a Finance Document to whom it is making the payment.

**10.13** **FATCA status** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to Clause 10.12(c) below, each party shall, within ten (10) Business Days of a reasonable
 request by another party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) confirm
 to that other party whether it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) a
 FATCA Exempt Party; or

(bb) not
 a FATCA Exempt Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) supply
 to that other party such forms, documentation and other information relating to its status
 under FATCA (including its applicable passthru percentage or other information required under
 the Treasury Regulations or other official guidance including intergovernmental agreements)
 as that other party reasonably requests for the purposes of that other party's compliance
 with FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 a party confirms to another party pursuant to Clause 10.12 (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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Clause 10.12(a)(i) above
 shall not oblige the Lender to do anything which would or might in its reasonable opinion
 constitute a breach of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 law or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 fiduciary duty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 duty of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 a party fails to confirm its status or to supply forms, documentation or other information
 requested in accordance with Clause 10.12(a) above (including, for the avoidance of doubt,
 where Clause 10.12(c) above applies), then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 that party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such
 party shall be treated for the purposes of the Finance Documents as if it is not a FATCA
 Exempt Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 that party failed to confirm its applicable passthru percentage then such party shall be
 treated for the purposes of the Finance Documents (and payments made thereunder) as if its
 applicable passthru percentage is 100%,

until (in each case) such time as the party in question provides the requested confirmation, forms, documentation or other information.

**11.** **SECURITY, APPLICATION, AND SET-OFF** 

**11.1** **Securities** 

As security for the due and punctual repayment of the Loan and payment of interest thereon as provided in this Agreement and of all other Outstanding Indebtedness, the Borrower shall ensure and procure that the following Finance Documents are duly executed and, where required, registered in favour of the Lender in form and substance satisfactory to the Lender at the time specified herein or otherwise as required by the Lender and ensure that such security consists, on the Drawdown Date in respect of the Loan, of the Finance Documents.

**11.2** **Maintenance of Securities** 

It is hereby undertaken by the Borrower that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing and/or due under this Agreement or under the other Finance Documents be valid and binding obligations of the respective Security Parties thereto and rights of the Lender enforceable in accordance with their respective terms and that they will, at the expense of the Borrower, execute, sign, perfect and do any and every such further assurance, document, act, omission or thing as in the opinion of the Lender may be necessary for perfecting the security contemplated or constituted by the Finance Documents.

**11.3** **Application of funds** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Order of application</u>: Except as any Finance Document may otherwise provide, any sums which
 are received or recovered by the Lender under or pursuant to or by virtue of any of the Finance
 Documents and expressed to be applicable in accordance with this Clause 11.3 shall be applied
 by the Lender in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) FIRST:
 in or towards satisfaction of any amounts then due and payable under the Finance Documents
 in the following order and proportions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Firstly</u>,
 in or towards satisfaction of all amounts then due and payable to the Lender under the Finance
 Documents other than those amounts referred to at paragraphs b) and c) below (including,
 but without limitation, all amounts payable by the Borrower under Clauses 10 *(<u>Indemnities- Expenses-Fees</u>),* 5.1 *(<u>Payments – No set-off or counterclaims</u>)* or
 5.3 *(<u>Gross-Up</u>*) of this Agreement or by the Borrower or any Security Party under
 any corresponding or similar provision in any other Finance Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Secondly</u>,
 in or towards payment of any default interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Thirdly</u>,
 in or towards payment of any arrears of interest (other than default interest) due in respect
 of the Loan or any part thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Fourthly</u>,
 in or towards repayment of the Loan (whether the same is due and payable or not);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SECOND:
 the surplus (if any) after the full and complete payment of the Outstanding Indebtedness
 shall be paid to the Borrower or to any other person entitled to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of variation of order of application</u>: The Lender may, by notice to the Borrower and the
 Security Parties, provide, at its sole discretion, for a different order of application from
 that set out in Clause 11.3(a) *(<u>Order of application</u>)* either as regards a specified
 sum or sums or as regards sums in a specified category or categories, without affecting the
 obligations of the Borrower to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of variation notice</u>: The Lender may give notices under Clause 11.3(b) *(<u>Notice of variation of order of application)</u>* 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Insufficient balance</u>: For the avoidance of doubt, in the event that such balance is insufficient to
 pay in full the whole of the Outstanding Indebtedness, the Lender shall be entitled to collect
 the shortfall from the Borrower or any other person liable therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Appropriation rights overridden</u>: This Clause 11.3 and any notice which the Lender gives under Clause
 11.3(b) *(<u>Notice of variation of order of application</u>)* shall override any right
 of appropriation possessed, and any appropriation made, by the Borrower or any other Security
 Party.

**11.4** **Set off** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Application of credit balances:</u> Express authority is hereby given by the Borrower to the Lender without
 prejudice to any of the rights of the Lender at law, contractually or otherwise, at any time
 after an Event of Default has occurred and is continuing, and without prior notice to the
 Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 apply any credit balance standing upon any account of the Borrower with any branch of the
 Lender (including, without limitation, the Operating Account and in whatever currency in
 or towards satisfaction of any sum due to the Lender from the Borrower under this Agreement,
 the General Assignment and/or any of the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the name of the Borrower and/or the Lender to do all such acts and execute all such documents
 as may be necessary or expedient to effect such application; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 combine and/or consolidate all or any accounts in the name of the Borrower with the Lender;
 and

for that purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) to
 break, or alter the maturity of, all or any part of a deposit of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) to
 convert or translate all or any part of a deposit or other credit balance into Dollars; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) to
 enter into any other transaction or make any entry with regard to the credit balance which
 the Lender considers appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Existing rights unaffected</u>: The Lender shall not be obliged to exercise any right given by this
 Clause; 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 the Lender is entitled
 (whether under the general law or any document). For all or any of the above purposes authority
 is hereby given to the Lender to purchase with the moneys standing to the credit of any such
 account or accounts such other currencies as may be necessary to effect such application.
 The Lender shall notify the Borrower forthwith upon the exercise of any right of set-off
 giving full details in relation thereto.

**12.** **UNLAWFULNESS, INCREASED COSTS AND BAIL-IN** 

**12.1** **Unlawfulness** 

If any change in, or introduction of, any law, regulation or regulatory requirement or any request of any central bank, monetary, regulatory or other authority or any order of any court renders it unlawful or contrary to any such regulation, requirement, request or order for the Lender to advance the Commitment or the relevant part thereof (as the case may be) or to maintain or fund the Loan, notice shall be given promptly by the Lender to the Borrower whereupon the Commitment shall be reduced to zero and the Borrower shall be obliged to prepay the Loan either (i) forthwith or (ii) on a future specified date not being earlier than the latest date permitted by the relevant law or regulation, together with accrued interest thereon to the date of prepayment and all other sums payable by the Borrower under this Agreement.

**12.2** **Increased Cost** 

**If the result of any change in, or in the interpretation, implementation or application of, or the introduction of, any law or any regulation (whether or not having the force of law, but, if not having the force of law, with which the Lender or, as the case may be, its holding company habitually complies), including (without limitation) those relating to Taxation, capital adequacy, liquidity, reserve assets, cash ratio deposits and special deposits or other banking or monetary controls or requirements which affect the manner in which the Lender allocates capital resources to its obligations hereunder (including, without limitation, those resulting from the implementation or application of or compliance with the Basel II Accord or the Basel III Accord or any Basel II Regulation or the Basel III Accord or any Basel III Regulation or any subsequent accord, approach or regulation thereto) (collectively, *"Capital Adequacy Law"*) or compliance by the Lender with any such Capital Adequacy Law, is to:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase
 the cost to, or impose an additional cost on, the Lender or its holding company in making
 or keeping the Commitment available or maintaining or funding all or part of the Loan; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject
 the Lender to Taxes or change the basis of Taxation of the Lender with respect to any payment
 under any of the Finance Documents (other than Taxes or Taxation on the overall net income,
 profits or gains of the Lender imposed in the jurisdiction in which its principal or lending
 office under this Agreement is located); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reduce
 the amount payable or the effective return to the Lender under any of the Finance Documents;
 and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reduce
 the Lender's or its holding company rate of return on its overall capital by reason
 of a change in the manner in which it is required to allocate capital resources to the Lender's
 obligations under any of the Finance Document; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) require
 the Lender or its holding company to make a payment or forgo a return on or calculated by
 references to any amount received or receivable by it under any of the Finance Documents
 is required; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) require
 the Lender or its holding company to incur or sustain a loss (including a loss of future
 potential profits) by reason of being obliged to deduct all or part of the Commitment or
 the Loan from its capital for regulatory purposes,

then and in each case (subject to Clause 12.5 *(<u>Exception</u>)*):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Lender shall notify the Borrower in writing of such event promptly upon its becoming aware
 of the same; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Borrower shall on demand pay to the Lender the amount which the Lender specifies (in a certificate
 and supporting documents setting forth and evidencing the basis of the computation of such
 amount but not including any matters which the Lender or its holding company regards as confidential)
 is required to compensate the Lender and/or (as the case may be) its holding company for
 such liability to Taxes, cost, reduction, payment, foregone return or loss whatsoever.

For the purposes of this Clause 12 *"holding company"* means the company or entity (if any) within the consolidated supervision of which the Lender is included.

**12.3** **Claim for increased cost** 

The Lender will promptly notify in writing the Borrower of any intention to claim indemnification pursuant to Clause 12.2 *(<u>Increased Cost</u>)* and such notification will be a conclusive and full evidence binding on the Borrower as to the amount of any increased cost or reduction and the method of calculating the same and the Borrower shall be allowed to rebut such evidence by any means of evidence save for witness. A claim under Clause 12.2 *(<u>Increased Cost</u>)* may be made at any time and must be discharged by the Borrower within (10) days of demand. It shall not be a defence to a claim by the Lender under this Clause 12.3 that any increased cost or reduction could have been avoided by the Lender. Any amount due from the Borrower under Clause 12.2 *(<u>Increased Cost</u>)* shall be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under or in respect of this Agreement.

**12.4** **Option to prepay** 

If any additional amounts are required to be paid by the Borrower to the Lender by virtue of Clause 12.2 *(<u>Increased Cost</u>),* the Borrower shall be entitled, on giving the Lender not less than five (5) days prior notice in writing, to prepay (without premium or penalty) the Loan and accrued interest thereon, together with all other Outstanding Indebtedness, on the next Repayment Date. Any such notice, once given, shall be irrevocable.

**12.5** **Exception** 

Nothing in Clause 12.2 *(<u>Increased Cost</u>)* shall entitle the Lender to receive any amount in respect of compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss to the extent that the same is subject of an additional payment under Clause 5.3 *(<u>Gross-up</u>)*.

**12.9** **Contractual recognition of bail-in** 

Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 Bail-In Action in relation to any such liability, including (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 cancellation of any such liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**13.** **OPERATING ACCOUNT** 

**13.1** **General** 

The Borrower undertakes with the Lender that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 or before the Drawdown Date open the Operating Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) procure
 that all moneys payable to the Borrower in respect of the Earnings of the Vessel shall, unless
 and until the Lender directs to the contrary pursuant to the General Assignment, be paid
 to the Operating Account, free from Security Interests and rights of set off other than those

 and shall be applied as provided in Clause 13.2 *(<u>Application of Earnings</u>)*,

<u>provided always that</u> any moneys received in a currency other than Dollars, may be converted in Dollars by the Lender at the Lender's spot rate of exchange on the day of conversion.

**13.2** **Application of Earnings** 

Subject to the terms and conditions of the Accounts Pledge Agreement no monies shall be withdrawn from the Operating Account save as hereinafter provided. Subject to no Event of Default having occurred and being continuing, all monies paid to the Operating Account (whether being Earnings or not) after discharging the costs (if any) incurred by the Lender, in collecting such monies, shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>firstly</u>:
 in payment of any arrears of interest and principal of the Loan due and payable hereunder
 and any and all other sums whatsoever which at each relevant time are due and payable to
 the Lender hereunder (such sums to be paid in such order as the Lender may in its sole discretion
 elect);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>secondly</u>:
 in payment of the Operating Expenses of the Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>thirdly</u>:
 any credit balance shall be, subject to the provisions of this Agreement (including dividends
 restriction, as provided in Clause 8.2 (m) *(<u>No dividends or distribution</u>*))
 and the Account Pledge Agreement, available to the Borrower to be used for any purpose not
 inconsistent with the Borrower's other obligations under this Agreement.

**13.3** **Interest** 

Any amounts for the time being standing to the credit of the Operating Account shall bear interest at the rate from time to time offered by the Lender to its customers for Dollar deposits of similar amounts and for periods similar to those for which such amounts are likely to remain standing to the credit of the Operating Account. Such interest shall, <u>provided that</u> (a) the foregoing provisions of this Clause 13 shall have been complied with and (b) no Event of Default shall have occurred and is continuing, be released to the Borrower.

**13.4** **Drawings from Operating Account** 

After the occurrence of an Event of Default which is continuing the Lender shall not permit the Borrower to make any drawings from the Operating Account.

**13.5** **Sufficient monies** 

The Borrower hereby warrants that sufficient monies to meet the next Repayment Instalment plus interest thereon will be accumulated each and every month in the Operating Account.

**13.6** **Obligations unaffected** 

The provisions of this Clause 13 do not affect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 liability and absolute obligation of the Borrower to repay the Loan and pay interest thereon
 on the due dates as provided in Clause 3 *(<u>Interest</u>)* and Clause 4 *(<u>Repayment-Prepayment</u>)* nor shall they constitute or be construed as constituting a manner of postponement thereof;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 other liability or obligation of the Borrower or any other Security Party under any Finance
 Document.

**13.7** **Relocation of Accounts** 

The Borrower, at its own costs and expenses, undertakes with the Lender to comply with or cause to be complied with any written requirement of the Lender from time to time as to the location or re-location of the Accounts (or any of them) and will from time to time enter into such documentation as the Lender may require in order to create or maintain a Security Interest in any of the Accounts.

**13.8** **Authorisation** 

The Lender shall be entitled (but not obliged) at any time, and to this respect the Lender is hereby authorised by the Borrower from time to time to debit the Operating Account, with notice to the Borrower, in order to discharge any amount due and payable to the Lender under the terms of this Agreement and the Security Documents or otherwise howsoever in connection with the Loan, including, without limitation, any payment of which the Lender has become entitled to demand under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*. The Lender shall notify the Borrower following any such discharge of any amount due and payable to the Lender giving the necessary details in relation thereto.

**13.9** **Set-off** 

Upon the occurrence of an Event of Default that is continuing or at any time thereafter (whether or not notice of default has been given to the Borrower) when an Event of Default continues the Lender shall be entitled, but not bound, to set off and apply all sums standing to the credit of the Operating Account and accrued interest (if any) without notice to the Borrower in the manner specified in Clause 11.3 *(<u>Application of funds</u>)* (and express and irrevocable authority is hereby given by the Borrower to the Lender so to debit the Operating Account accordingly by the same and the Borrower shall be released to the extent of such set off and application).

**13.10** **No Security Interests** 

The Borrower hereby covenants with the Lender that the Operating Account and any moneys therein shall not be charged, assigned, transferred or pledged nor shall there be granted by the Borrower or suffered to arise any third party rights over or against the whole or any part of the Operating Account other than in favour of the Lender as promised herein and in the General Assignment.

**13.11** **Operation of Accounts** 

Each of the Accounts shall be operated by the Borrower or the relevant Cash Collateral Account Holder (as the case may be) to the degree permitted by this Agreement and the General Assignment and the Accounts Pledge Agreement or the Cash Collateral Account Pledge Agreement (as the case may be) in accordance with the Lender's usual terms and conditions (full knowledge of which the Borrower hereby acknowledges) and subject to the Lender's usual charges levied on such accounts and/or transactions conducted on such accounts (as from time to time notified by the Lender to the Borrower).

**13.12** **Application after occurrence of Event of Default** 

After the occurrence of an Event of Default the Lender shall be entitled, but not bound, to set off and apply all sums standing to the credit of the Operating Account and accrued interest (if any) in accordance with the provisions of Clause 11.3 *(<u>Application of funds</u>).*

**13.13** **Release** 

Upon payment in full of all principal, interest and all other amounts due to the Lender under the terms of this Agreement and the other Finance Documents, any balance then standing to the credit of the Accounts (or any of them) shall be released and paid to the Borrower or to whomsoever else may be entitled to receive such balance.

**14.** **ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE** 

**14.1** **Binding Effect** 

This Agreement shall be binding upon and inure to the benefit of the Lender and the Borrower and their respective successors and permitted assigns.

**14.2** **No Assignment by the Borrower and other Security Parties** 

Neither the Borrower nor any other Security Parties may assign or transfer any of its rights and/or obligations under this Agreement or any of the other Finance Documents or any documents executed pursuant to this Agreement and/or the other Finance Documents.

**14.3** **Assignment by the Lender** 

The Lender may at any time, (without the consent of, or consultation with, the Borrower and the other Security Parties but with 30-days prior notice to the Borrower) cause all or any part of its rights, benefits and/or obligations under this Agreement and the other Finance Documents to be assigned or transferred to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) another
 branch, Subsidiary or Affiliate of, or company controlled by, the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) another
 first class international bank or financial institution, insurer, social security fund, pension
 fund, capital investment company, financial intermediary or special purpose vehicle associated
 to any of them or any other person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 trust corporation, fund or other person which regularly engaged in or established for the
 purpose of making, purchasing or investing in loans, securities or other financial assets
 of which are managed or serviced by the Lender

**(in each case an *" Assignee"* or a *" Transferee"*),**

<u>provided that</u> the Assignee or Transferee, shall deliver to the Lender such undertaking as the Lender may approve, whereby it becomes bound by the terms of this Agreement and agrees to perform all or, as the case may be, part of the Lender's obligations under this Agreement; and

<u>provided further that</u> the liabilities of the Borrower under this Agreement and any other Finance Document shall not be increased as a result of any such assignment or transfer and that in the event that the Borrower' liabilities (actual or contingent) are increased, the Borrower shall not be liable for any such excess.

**14.4** **Participation** 

The Lender may at any time sub-participate all or any part of its rights, benefits and/or obligations under this Agreement and the other Finance Documents without the consent of, or consultation with or notice to the Borrower and the other Security Parties.

**14.5** **Cost** 

Any cost of such assignment or transfer or granting sub-participation shall be for the account of the Lender and/or the Assignee, Transferee or sub-participant unless any such assignment, transfer or sub-participation is undertaken at the request of the Borrower in which case any cost arising therefrom shall be for the account of the Borrower.

**14.6** **Documenting assignments and transfers** 

If the Lender assigns, transfers or in any other manner grants participation in respect of all or any part of its rights or benefits or transfers all or any of its obligations as provided in this Clause 14.6 the Borrower undertakes, immediately on being requested to do so by the Lender, to enter at the expense of the Lender into and procure that each Security Party enters into such documents as may be necessary to transfer to the Assignee, Transferee or participant all or the relevant part of the interest of the Lender in the Finance Documents and all relevant references in this Agreement to the Lender shall thereafter be construed as a reference to the Lender and/or Assignee, Transferee or participant of the Lender to the extent of their respective interests and, in the case of a transfer of all or part of the obligations of the Lender, the Borrower shall thereafter look only to the Assignee, Transferee or participant in respect of that proportion of the obligations of the Lender under this Agreement assumed by such Assignee, Transferee or participant. Subject to the provisions of Clause 14.3 *(<u>Assignment by the Lender</u>)*, the Borrower hereby expressly consents to any subsequent transfer of the rights and obligations of the Lender and undertakes that it shall join in and execute such supplemental or substitute agreements as may be necessary to enable the Lender to assign and/or transfer and/or grant participation in respect of its rights and obligations to another branch or to one or more banks or financial institutions in a syndicate or otherwise. The cost of any such assignment shall be borne by the Lender and/or the relevant Assignee or Transferee.

**14.7** **Disclosure of information** 

**The Lender may without the consent of, or consultation with or notice to the Borrower and the other Security Parties, disclose to a prospective assignee, substitute or transferee in relation to this Agreement such information about the Borrower as the Lender shall consider appropriate if the Lender first procures that the relevant prospective assignee, substitute or transferee (such person together with any prospective assignee, substitute or transferee being hereinafter described as the *"Prospective Assignee"*) shall undertake in to the Lender to keep secret and confidential and, without the consent of the Borrower, not disclose to any third party any of the information, reports or documents supplied by the Lender <u>provided, however, that</u> the Prospective Assignee shall be entitled to disclose such information, reports or documents in the following situations:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 relation to any proceedings arising out of this Agreement or the other Finance Documents
 to the extent considered necessary by the Prospective Assignee to protect its interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pursuant
 to a court order relating to discovery or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) pursuant
 to any law or regulation or to any fiscal, monetary, tax, governmental or other competent
 authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 its auditors, legal or other professional advisers.

In addition the Prospective Assignee shall be entitled to disclose or use any such information, reports or documents if the information contained therein shall have emanated in conditions free from confidentiality, bona fide from some person other than the Lender or the Borrower.

**14.8** **Changes in constitution or reorganisation of the Lender** 

For the avoidance of doubt and without prejudice to the provisions of Clause 14.1 *(<u>Binding Effect</u>)*, this Agreement shall remain binding on the Borrower and the other Security Parties notwithstanding any change in the constitution of the Lender or its absorption in, or amalgamation with, or the acquisition of all or part of its undertaking or assets by, any other person, or any reconstruction or reorganisation of any kind, to the intent that this Agreement shall remain valid and effective in all respects in favour of any Assignee, Transferee or other successor in title of the Lender in the same manner as if such Assignee, Transferee or other successor in title had been named in this Agreement as a party instead of, or in addition to, the Lender.

**14.9** **Securitisation** 

The Lender may include all or any part of the Loan in a securitisation (or similar transaction) without the consent of, or consultation with, but with notice to the Borrower. The Borrower will assist the Lender as necessary to achieve a successful securitisation (or similar transaction) <u>provided that</u> the Borrower shall not be required to bear any third party costs related to any such securitisation (or similar transaction) and that such securitisation (or similar transaction) shall not result in an increase of the obligations of the Borrower and/or any other Security Parties under this Agreement and the other Security Documents and need only provide any such information which any third parties may reasonably require.

**14.10** **Lending Office** 

The Lender shall lend through its office at the address specified in the preamble of this Agreement or through any other office of the Lender selected from time to time by it through which the Lender wishes to lend for the purposes of this Agreement. If the office through which the Lender is lending is changed pursuant to this Clause 14.10, the Lender shall notify the Borrower promptly of such change and upon notification of any such transfer, the word *"Lender"* in this Agreement and in the other Finance Documents shall mean the Lender, acting through such branch or branches and the terms and provisions of this Agreement and of the other Finance Documents shall be construed accordingly.

**15.** **MISCELLANEOUS** 

**15.1** **Time of essence** 

Time shall be of the essence of this Agreement.

**15.2** **Cumulative Remedies** 

The rights and remedies of the Lender contained in this Agreement and the other Finance Documents are cumulative and not neither exclusive of each other nor of any other rights or remedies conferred by law.

**15.3** **No implied waivers** 

No failure, delay or omission by the Lender to exercise any right, remedy or power vested in the Lender under this Agreement and/or the other Finance Documents or by law shall impair such right or power, or be construed as a waiver of, or as an acquiescence in any default by the Borrower, nor shall any single or partial exercise by the Lender of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. In the event of the Lender on any occasion agreeing to waive any such right, remedy or power, or consenting to any departure from the strict application of the provisions of this Agreement or of any other Finance Document, such waiver shall not in any way prejudice or affect the powers conferred upon the Lender under this Agreement and the other Finance Documents or the right of the Lender thereafter to act strictly in accordance with the terms of this Agreement and the other Finance Documents. No modification or waiver by the Lender of any provision of this Agreement or of any of the other Finance Documents nor any consent by the Lender to any departure therefrom by any Security Party shall be effective unless the same shall be in writing and then shall only be effective in the specific case and for the specific purpose for which given. No notice to or demand on any such party in any such case shall entitle such party to any other or further notice or demand in similar or other circumstances.

**15.4** **Integration of Terms** 

This Agreement contains the entire agreement of the parties and its provisions supersede the provisions of the Commitment Letter (save for the provisions thereof which relate to fees) any and all other prior correspondence and oral negotiation by the parties in respect of the matters regulated by this Agreement.

**15.5** **No modification, waiver etc. unless in writing** 

No modification or waiver by the Lender of any provision of this Agreement or of any of the other Finance Documents nor any consent by the Lender to any departure therefrom by any Security Party shall be effective unless the same shall be in writing and then shall only be effective in the specific case and for the specific purpose for which given. No notice to or demand on any such party in any such case shall entitle such party to any other or further notice or demand in similar or other circumstances.

**15.6** **Invalidity of Terms** 

In the event of any provision contained in one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto being invalid, illegal or unenforceable in any respect under any applicable law in any jurisdiction whatsoever, such provision shall be ineffective as to that jurisdiction only without affecting the remaining provisions hereof or thereof. If, however, this event becomes known to the Lender prior to the drawdown of the Commitment or of any part thereof the Lender shall be entitled to refuse drawdown until this discrepancy is remedied. In case that the invalidity of a part results in the invalidity of the whole Agreement, it is hereby agreed that there will exist a separate obligation of the Borrower for the prompt payment to the Lender of all the Outstanding Indebtedness. Where, however, the provisions of any such applicable law may be waived, they are hereby waived by the parties hereto to the full extent permitted by the law to the intent that this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto shall be deemed to be valid binding and enforceable in accordance with their respective terms.

**15.7** **Language and genuineness of documents** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Language</u>:
 All certificates, instruments and other documents to be delivered under or supplied in connection
 with this Agreement or any of the other Finance Documents shall be in the Greek or the English
 language (or such other language as the Lender shall agree) or shall be accompanied by a
 certified Greek translation upon which the Lender shall be entitled to rely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Certification of documents</u>: Any copies of documents delivered to the Lender shall be duly certified
 as true, complete and accurate copies by appropriate authorities or legal counsel practicing
 in Greece or otherwise as will be acceptable to the Lender at the sole discretion of the
 Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certification of signature</u>: Signatures on Board or shareholder resolutions, Secretary's certificates
 and any other documents are, at the discretion of the Lender, to be verified for their genuineness
 by appropriate Consul or other competent authority.

**15.8** **Recourse to other security** 

The Lender shall not be obliged to make any claim or demand or to resort to any Finance Document or other means of payment now or hereafter held by or available to it for enforcing this Agreement or any of the Finance Documents against the Security Parties (or any of them) or any other person liable and no action taken or omitted by the Lender in connection with any such Finance Document or other means of payment will discharge, reduce, prejudice or affect the liability of any Security Party under this Agreement and the other Finance Documents to which it is, or is to be, a party.

**15.9** **Further assurances** 

The Borrower undertakes that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing under any of the Finance Documents be valid and binding obligations of the respective parties thereto and enforceable in accordance with their respective terms and that it will, at its expense, execute, sign, perfect and do and (if required) register, and will procure the execution, signing, perfecting, doing and (if required) registering by each of the other Security Parties of, any and every such further assurance, document, act or thing as in the reasonable opinion of the Lender may be necessary or desirable for perfecting the security contemplated or constituted by the Finance Documents.

**15.10** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 of the parties hereto agrees and undertakes to keep confidential any documentation and any
 confidential information concerning the business, affairs, directors or employees of the
 other which comes into its possession in connection with this Agreement and not to use any
 such documentation, information for any purpose other than for which it was provided.

Notwithstanding the foregoing, compliance of the Borrower and/or of the Corporate Guarantor with their reporting and filing requirements, relating to the transactions and matters contemplated by this Agreement and the other Finance Documents, to governmental or regulatory agencies and authorities, including, but not limited to, the Securities and Exchange Commission of the United States of America, shall not constitute a breach of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrower acknowledges and accepts that the Lender may be required by law, regulation or regulatory
 requirement or any request of any central bank or any court order, to disclose information
 and deliver documentation relating to the Borrower and the transactions and matters in relation
 to this Agreement and/or the other Finance Documents to governmental or regulatory agencies
 and authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Borrower acknowledges and accepts that in case of occurrence of any of the Events of Default
 the Lender may disclose information and deliver documentation relating to the Borrower and
 the transactions and matters in relation to this Agreement and/or the other Finance Documents
 to third parties to the extent that this is necessary for the enforcement or the contemplation
 of enforcement of the Lender's rights or for any other purpose for which in the opinion
 of the Lender, such disclosure would be useful or appropriate for the interests of the Lender
 or otherwise and the Borrower expressly authorises any such disclosure and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Borrower acknowledges and accepts that the Lender may be prohibited from disclosing information
 to the Borrower by reason of law or duties of confidentiality owed or to be owed to other
 persons.

**15.11** **Process of personal data** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Process of personal data</u>: The Borrower hereby confirms that it has been informed that its personal
 data and/or the personal data of its director(s), officer(s) and legal representative(s)
 (together the *"personal data*") contained in this Agreement or the personal
 data that have been or will be lawfully received by the Lender in relation to this Agreement
 and the Security Documents will be included at the personal data database maintained by the
 Lender as processing agent *(Υπεύθυνη Επεξεργασίας)* and will be processed by the Lender for the purpose of properly serving, supporting and monitoring
 their current business relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Process of personal data to Teiresias</u>: The Borrower hereby expressly gives its consent to the
 communication for process in the meaning of law 2472/97 by the Lender of its personal data
 contained in this Agreement, the Security Documents, in the Operating Account for onwards
 communication thereof to an inter-banking database record called *"Teiresias"* kept and solely used by banks and financial institutions. The Borrower is entitled at any
 relevant time throughout the Security Period to revoke its consent given hereunder by written
 notice addressed to the Lender and the Registrar of *"Teiresias A.E."* at
 2, Alamanas street, 15125 Maroussi, Athens, Greece.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Duration of the process</u>: The personal data process shall survive the termination of this Agreement
 for such period as it is required by the applicable law.

**15.12** **Process Agent for Greek Proceedings** 

**Mrs. Alexandra Tatagia, an Attorney-at-Law, presently of 61-65 Filonos Street, Piraeus, Greece (hereinafter called the *"Process Agent for Greek Proceedings"*) is hereby appointed by the Borrower as agent to accept service, upon whom any judicial process in respect of proceedings in Greece may be served and any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial announcement of claim, notice, request, demand or other communication under this Agreement or any of the Finance Documents. In the event that the Process Agent for Greek Proceedings (or any substitute process agent notified to the Lender in accordance with the foregoing) cannot be found at the address specified above (or, as the case may be, notified to the Lender), which will be conclusively proved by a deed of a process server to the effect that the Process Agent for Greek Proceedings was not found at such address, any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial announcement of claim or other communication to be sent to any Security Party may be validly served/notified in accordance with the relevant provisions of the Hellenic Code on Civil Procedure.**

**16.** **NOTICES AND COMMUNICATIONS** 

**16.1** **Notices** 

Every notice under or in connection with this Agreement or any other Finance Document shall be given by letter, electronic mail or fax; and references in the Finance Documents to written notices, notices in writing and notices signed by particular persons shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) every
 such notice in the case of a letter shall be in writing delivered personally or be first-class
 prepaid letter, or shall be served through a process server or subject to Clause 10.9 *(<u>Communications Indemnity</u>)* by fax or electronic mail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 deemed to have been received, subject as otherwise provided in this Agreement or the relevant
 Finance Document, in the case of a letter, when delivered personally or five (5) days after
 it has been put in to the post and, in the case of a facsimile transmission or electronic
 mail or other means of telecommunication in permanent written form, at the time of despatch
 (<u>provided that</u> if the date of despatch is not a business day in the country of the
 addressee or if the time of despatch is after the close of business in the country of the
 addressee it shall be deemed to have been received at the opening of business on the next
 such business day); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be
 sent by letter, electronic mail or fax:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 to be sent to any Security Party, to:

c/o PYXIS MARITIME CORP. ,

59 K. Karamanli Street,

Maroussi 15125, Greece

Fax: +30 210 6545467

Attention: Mr. Konstantinos Lytras

E-mail: <u>'klytras@pyxistankers.com' and 'fin@pyxis.gr' and</u>

<u>"hwilliams@pyxistankers.com</u>

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the case of the Lender at:

ALPHA BANK S.A.,

93 Akti Miaouli, Piraeus, Greece,

Fax No. +30 210 42 90 268

Attention: The Manager

E-mail: shippingdivision@alpha.gr

or to such other person, address or fax number or electronic mail address as is notified by the relevant Security Party or the Lender (as the case may be) to the other parties to this Agreement and, in the case of any such change of address or fax number or electronic mail address notified to the Lender, the same shall not become effective until notice of such change is actually received by the Lender and a copy of the notice of such change is signed by the Lender.

**16.2** **Illegible notices** 

Clause 16.1 *(<u>Notices</u>)* does 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.3** **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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

**16.4** **Meaning of "notice"** 

**In this Clause 16, *" notice"* includes any demand, consent, authorisation, approval, instruction, waiver or other communication.**

**17.** **LAW AND JURISDICTION** 

**17.1** **Governing Law** 

This Agreement and any non-contractual obligations connected with it shall be governed by and construed in accordance with English Law.

**17.2** **Jurisdiction** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 courts of England have exclusive jurisdiction to settle any dispute arising out of or in
 connection with this Agreement or any non-contractual obligations connected with it (including
 a dispute regarding the existence, validity or termination of this Agreement and including
 claims arising out of tort or delict) (a *"Dispute"*).
 The Borrower irrevocably and unconditionally submits to the jurisdiction of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Parties agree that the courts of England are the most appropriate and convenient courts to
 settle Disputes and accordingly no Party will argue to the contrary and waives
 any objections to the inconvenience of England as a forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This
 Clause 17.2 is for the benefit of the Lender only. As a result, the Lender shall not be prevented
 from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the
 extent allowed by law, the Lender may take concurrent proceedings in any number of jurisdictions.

**17.3** **Process Agent for English Proceedings** 

Without prejudice to any other mode of service allowed under any relevant law the Borrower irrevocably designates, appoints Messrs. Atlas Maritime Services Limited, at its registered office for the time being at Enterprise House, 113-115 George Lane, E18 1AB, London, England (hereinafter called the *"**Process Agent for English Proceedings**"*), to receive for it and on its behalf, service of process issued out of the English courts in relation to any proceedings before the English courts in connection with any Finance Document, <u>provided, however, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Borrower hereby agrees and undertakes to maintain a
 Process Agent for English Proceedings throughout the Security Period and hereby agrees that
 in the event that if any Process Agent for English Proceedings is unable for any reason
 to act as agent for service of process, the Borrower must immediately (and in any event within
 fifteen (15) days of such event taking place) appoint another agent on terms acceptable to
 the Lender. Failing this, the Lender may appoint for this purpose a substitute Process
 Agent for English Proceedings and the Lender is
 hereby irrevocably authorised to effect such appointment on Borrower's behalf. The
 appointment of such Process Agent for English Proceedings shall be valid and binding from
 the date notice of such appointment is given by the Lender to
 the Borrower in accordance with Clause 16.1 *(<u>Notices</u>)*;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Borrower hereby agrees that failure by a Process Agent for English Proceedings to notify
 the Borrower of the process will not invalidate the proceedings concerned.

**17.4** **Proceedings in any other country** 

If it is decided by the Lender that any such proceedings should be commenced in any other country, then any objections as to the jurisdiction or any claim as to the inconvenience of the forum is hereby waived by the Borrower and it is agreed and undertaken by the Borrower to instruct lawyers in that country to accept service of legal process and not to contest the validity of such proceedings as far as the jurisdiction of the court or courts involved is concerned and the Borrower agrees that any judgment or order obtained in an English court shall be conclusive and binding on the Borrower and shall be enforceable without review in the courts of any other jurisdiction.

**17.5** **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.

**17.6** **Meaning of "proceedings"** 

In this Clause 17 "*proceedings*" means proceedings of any kind, including an application for a provisional or protective measure.

*[Intentionally left blank]*

 

**<u>EXECUTION PAGE</u>**

**IN WITNESS WHEREOF** the parties hereto have caused this Agreement to be duly executed on the date stated at the beginning of this Agreement.

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. Ioannis Chalkias) |  |
| for and on behalf of) |  |
| **SEVENTHONE CORP.**,) |  |
| of the Marshall Islands,) | Attorney-in-fact |
| in the presence of:) |  |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Eleni Fanouria Zempilla* |
| *Address:* | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| *Occupation: Attorney-at-Law* | *Occupation: Attorney-at-Law* |

---

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. Konstantinos Flokos and) |  |
| Mrs. Evangelia Makri) | Attorney-in-fact |
| for and on behalf of) |  |
| **ALPHA BANK S.A.**,) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Eleni Fanouria Zempilla* |
| *Address:* | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| *Occupation: Attorney-at-Law* | *Occupation: Attorney-at-Law* |

---

**<u>SCHEDULE 1</u>**

**FORM OF DRAWDOWN NOTICE**

(referred to in Clause 2.2)

---

| | |
|:---|:---|
| To: | **ALPHA BANK S.A.** |
|  | 93 Akti Miaouli, |
|  | Piraeus, Greece |
|  | (the ***"Lender"***) |

---

[●] December, 2025

Re: US$14,750,000 Loan Agreement dated [●] December, 2025 made between (A) **SEVENTHONE CORP.**(the ***"Borrower"***) and (B) the Lender (the ***"Loan Agreement"***).

**1.** We
 refer to the Loan Agreement and hereby give you notice that we wish to draw the Commitment
 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Loan</u>:
 the full amount of the Commitment in the amount of Dollars Fourteen million seven hundred
 fifty thousand ($14,750,000);

(b) <u>Drawdown Date:</u> [●] December, 2025 ;

(c) <u>Duration of first Interest Period</u>: duration of the first Interest Period in respect of the Loan shall be [●] months; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment instructions</u>: [ *The funds to be credited into the Operating Account for application for the purposes set out in Clause 1.1 (<u>Amount and purpose</u>) of the Loan Agreement* ].

**2.** We
 confirm, represent and warrant that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no
 event or circumstance has occurred and is continuing which constitutes a Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 representations and warranties contained in Clause 6 *(<u>Representations and warranties</u>)* of the Loan Agreement and the representations and warranties contained in each of the
 other Finance Documents would remain true and not misleading if repeated on the date of this
 Drawdown Notice with reference to the circumstances now existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 borrowing to be effected by the drawing down of the Commitment will be within our corporate
 powers, has been validly authorised by appropriate corporate action and will not cause any
 limit on our borrowings (whether imposed by statute, regulation, agreement or otherwise)
 to be exceeded; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 the best of our knowledge and belief there has been no Material Adverse Change in our financial
 position or in the consolidated financial position of ourselves and the other Security Parties
 from that described by us to the Lender in the negotiation of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** This
 Drawdown Notice cannot be revoked without the prior consent of the Lender.

Words and expressions defined in the Loan Agreement shall have the same meanings when used herein.

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. [….]) |  |
| for and on behalf of) |  |
| the Borrower) |  |
| **SEVENTHONE CORP.**,) |  |
| of the Marshall Islands,) | Attorney-in-fact |
| in the presence of:) |  |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* |  |
| *Address:* | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| *Occupation: Attorney-at-Law* | *Occupation: Attorney-at-Law* |

---

**<u>Schedule 2</u>**

**Form of Insurance Letter**

---

| | |
|:---|:---|
| To: | ***[P&I Club]*** |
|  | [●] |
|  | [●] |

---

---

| | |
|:---|:---|
| From: | **SEVENTHONE CORP.** |
|  | Trust Company Complex, |
|  | Ajeltake Road, Ajeltake Island, |
|  | Majuro, Marshall Islands MH 96960 |

---

[●] 20[●]

Dear Sirs

**m.v.** "**PYXIS THETA**" (the ***"Vessel"***)

We are obtaining loan finance from **ALPHA BANK S.A.** (the ***"Lender"***) secured (*inter alia*) by a first ship mortgage over the Vessel. The Vessel's insurances will also be assigned to the Lender.

You are hereby authorised to send a copy of the Certificate of Entry for the Vessel to the Lender, c/o their lawyers, namely, Theo V. Sioufas & Co. Law Offices, of 13 Defteras Merarchias Street, 185 35 Piraeus, Greece. Further, you are also irrevocably authorised to provide the Lender from time to time with any other information whatsoever which they may require relating to the entry of the Vessel in the association.

This letter is governed by, and shall be construed in accordance with, English law.

---

| |
|:---|
| For and on behalf of |
| **SEVENTHONE CORP.** |

---

## Exhibit 4.23

**Exhibit 4.23**

**<u>Private & confidential</u>**

<u>Dated: …17<sup>th</sup>….. December, 2025</u>

**ALPHA BANK S.A.**

- and -

**ELEVENTHONE CORP.**

**LOAN AGREEMENT**

for a secured floating interest rate

loan facility of US$18,600,000

![](ex4-23_001.jpg)

<u>**TABLE OF CONTENTS**</u>

---

| | | |
|:---|:---|:---|
| CLAUSE | HEADINGS | PAGE |
| 1. | PURPOSE, DEFINITIONS AND INTERPRETATION | 1 |
| 2. | THE LOAN | 24 |
| 3. | INTEREST | 26 |
| 4. | REPAYMENT - PREPAYMENT | 32 |
| 5. | PAYMENTS, TAXES, LOAN ACCOUNT AND COMPUTATION | 34 |
| 6. | REPRESENTATIONS AND WARRANTIES | 37 |
| 7. | CONDITIONS PRECEDENT | 43 |
| 8. | UNDERTAKING | 47 |
| 9. | EVENTS OF DEFAULT | 61 |
| 10. | INDEMNITIES - EXPENSES – FEES | 66 |
| 11. | SECURITY, APPLICATION, AND SET-OFF | 72 |
| 12. | UNLAWFULNESS, INCREASED COSTS AND BAIL-IN | 74 |
| 13. | OPERATING ACCOUNT | 76 |
| 14. | ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE | 79 |
| 15. | MISCELLANEOUS | 81 |
| 16. | NOTICES AND COMMUNICATIONS | 85 |
| 17. | LAW AND JURISDICTION | 86 |

---

SCHEDULE 1: Form of Drawdown Notice

SCHEDULE 2: Form of Insurance Letter

THIS AGREEMENT is dated the …….. day of December, 2025 made BETWEEN:

**1.** **ALPHA BANK S.A.**,
 a banking société anonyme incorporated in and pursuant to the laws of the Hellenic
 Republic with its head office at 40 Stadiou Street, Athens GR 102 52, Greece, acting, except
 as otherwise herein provided, through its office at 93 Akti Miaouli, Piraeus, Greece (hereinafter
 called the  ***"Lender"*** , which expression shall include its successors
 and assigns); and

**2.** **ELEVENTHONE CORP.**, a corporation duly incorporated in the Republic of the Marshall Islands, having
 its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
 Marshall Islands MH 96960 (hereinafter called the  ***"Borrower"*** , which
 expression shall include its successors)

AND IT IS HEREBY AGREED as follows:

**1.** **PURPOSE, DEFINITIONS AND INTERPRETATION** 

**1.1** **Amount and Purpose** 

This Agreement sets out the terms and conditions upon and subject to which the Lender agrees to make available to the Borrower a loan facility of up to the lesser of (a) Dollars Eighteen million six hundred thousand ($18,600,000) and (b) 50% of the Market Value of the Vessel, such loan facility to be made available by way of one (1) Advance, for the purpose of (a) refinancing the Existing Loan Indebtedness secured on (inter alia) the Vessel and (b) providing liquidity to the Borrower for general corporate purposes .

**1.2** **Definitions** 

Subject to Clauses 1.3 *(<u>Interpretation</u>)* and Clause 1.4 *(<u>Construction of certain terms</u>)*, in this Agreement (unless otherwise defined in the relevant Finance Document and unless the context otherwise requires) and the other Finance Documents each term or expression defined in the recital of the parties and in this Clause shall have the meaning given to it in the recital of the parties and in this Clause:

***"Accounts"*** means, together, the Operating Account and any Cash Collateral Account, and "***Account***" means any of them as the context may require;

***"Account Pledge Agreement"*** means an agreement to be entered into between the Borrower and the Lender for the creation of a pledge over the Operating Account in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Applicable Accounting Principles"*** means GAAP or IFRS and practices consistently applied;

***"Applicable Margin"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 respect of the Loan less any Cash-collateralised part of the Loan, one point nine zero per
 cent. (1.90%) per annum (the **" *Margin A* "**); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 respect of any Cash-collateralised part of the Loan, zero point seven five per cent. (0.75%)
 per annum (the **" *Margin B* "**);

***"Advance"*** means each borrowing of a portion of the Commitment by the Borrower or (as the context may require) the principal amount of such borrowing;

***"Affiliate"*** means, in relation to any person, a subsidiary of that person or a parent company of that person or any other subsidiary of that parent company;

 

***"Approved Auditor"*** means any of Ernst & Young, KPMG, PriceWaterhouse Coopers, Deloitte, Grant Thornton or any other independent and reputable auditor having requisite experience proposed by the Borrower and acceptable to the Lender and, ***"Approved Auditors"*** means any or all of them, as the context may require;

"***Approved Commercial Manager***" means for the time being Pyxis Maritime Corp., a company lawfully incorporated in, and validly existing under the laws of the Republic of the Marshall Islands, and having a licenced office established in Greece pursuant to the Greek laws 378/68, 27/75, 2234/94, 3752/09 and 4150/13 (as amended and in force at the date hereof) at 59 K. Karamanli Street, Maroussi 15125, Greece or any other person appointed by the Borrower with the consent of the Lender, as the commercial manager of the Vessel, and includes its successors in title;

***"Approved Managers"*** means together the Approved Commercial Manager and the Approved Technical Manager and "Approved Manager" means any of them, as the context may require;

***"Approved Manager's Undertaking"*** means a letter of undertaking including (*inter alia*) an assignment of the relevant Approved Manager's rights, title and interest in the Insurances of the Vessel executed or to be executed by that Approved Manager in favour of the Lender agreeing certain matters in relation to that Approved Manager serving as commercial or, as the case may be, technical manager of the Vessel and subordinating its rights against the Vessel and the Borrower to the rights of the Lender under the Finance Documents, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented (together, the ***"Approved Managers' Undertakings"***)

 ****

***"Approved Shipbrokers"*** means, Fearnleys A/S, Clarksons Platou Hellas Ltd., Intermodal Shipbrokers Co. and Allied Shipbroking Inc. and any other first class independent firm of internationally known shipbrokers proposed by the Borrower and acceptable to the Lender, and ***"Approved Shipbroker"*** means any of them;

***"Approved Technical Manager"*** means for the time being International Tanker Management Ltd., a company lawfully incorporated in, and validly existing under the laws of Bermuda, and having its registered office at Victoria Place, 31 Victoria Street, Hamilton, HM10, Bermuda, represented by its branch office at 809 Executive Heights (Damac Bldg.) P.O. Box 24415, Tecom, Dubai, U.A.E or any other person appointed by the Borrower with the consent of the Lender, as the technical manager of the Vessel, and includes its successors in title;

***"Article 55 BRRD"*** means Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms;

***"Assignable Charterparty"*** means any time or bareboat charterparty, consecutive voyage charter or contract of affreightment or related document in respect of the employment of the Vessel having a fixed duration of more than 12 months (excluding any optional extensions) and any guarantee of the obligations of the charterer under such charter in respect of the Vessel, whether now existing or hereinafter entered or to be entered into by the Borrower or any person, firm or company on its behalf and a charterer, at a daily rate and on terms and conditions acceptable to the Lender (and shall include any addenda thereto);

***"Assignee"*** has the meaning ascribed thereto in Clause 14.3 *(<u>Assignment by the Lender</u>)*;

***"Availability Period"*** means the period starting on the date hereof and ending on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 19<sup>th</sup> day of December, 2025 or until such later date as the Lender may agree in
 writing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on
 such earlier date (if any): (i) on which the whole Commitment has been advanced by the Lender
 to the Borrower, or (ii) on which the Commitment is reduced to zero pursuant to Clauses 3.6 *(<u>Market disruption</u>)*, 9.2 *(<u>Consequences of Default – Acceleration</u>)*,
 12.1 *(<u>Unlawfulness</u>)* or any other Clause of this Agreement;

***"Bail-In Action"*** means the exercise of any Write-down and Conversion Powers;

***"Bail-In Legislation"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 relation to any other state, any analogous law or regulation from time to time which requires
 contractual recognition of any Write-down and Conversion Powers contained in that law or
 regulation;

**"*Balloon Instalment*"** means the part of the Loan amounting to Eleven million one hundred thousand Dollars ($11,100,000);

***"Basel II Accord"*** means 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;

***"Basel II Approach"*** means either the Standardised Approach or the relevant Internal Ratings Based Approach (each as defined in the Basel II Accord) adopted by the Lender (or its holding company) for the purposes of implementing or complying with the Basel II Accord;

***"Basel II Regulation"*** means (a) any law or regulation implementing the Basel II Accord (including the relevant provisions of CRD IV and CRR) to the extent only such law or regulation re-enacts and/or implements the requirement of the Basel II Accord but excluding any provision of such law or regulation implementing the Basel III Accord or (b) any Basel II Approach adopted by the Lender;

***"Basel III Accord"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 agreements on capital requirements, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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

***"Basel III Regulation"*** means any law or regulation implementing the Basel III Accord save and to the extent that it re-enacts a Basel II Regulation;

***"Beneficial Shareholders"*** means in respect of each of the Borrower and the Corporate Guarantor, the person or persons disclosed to the Lender and which is/are confirmed in writing to the Lender as being the ultimate legal and beneficial owner or owners (either directly and/or through companies beneficially owned by such person or persons or members of his/her direct family and/or trusts or foundations of which such person or persons or members of his/her direct family are legal and beneficial owners) of 25% of the shares and the voting rights attaching to those shares and the legal ownership of those shares in each of the Borrower and the Corporate Guarantor;

***"Borrower"*** means the Borrower as specified in the beginning of this Agreement;

"***Break Costs***" has the meaning given in Clause 10.3 (*<u>Break Costs</u>*);

***"Business Day"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 day (other than a Saturday or Sunday) on which banks are open for general business in Athens
 and Piraeus, in New York and in each other country or place in or at which an act is required
 to be done under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (in
 relation to the fixing of any interest rate which is required to be determined under this
 Agreement or any Finance Document), a US Government Securities Business Day;

***"Cash-Collateral Account"*** means an account or the accounts opened or to be opened and maintained in the name of either Cash Collateral Account Holder with the branch of the Lender at 93 Akti Miaouli, Piraeus, Greece, or with any other branch or office of the Lender (either in Greece or abroad), as may be required by and from time to time be determined by the Lender at its sole discretion and notified to the relevant Cash Collateral Account Holder and shall include any sub-accounts or call accounts opened under the same designation or any revised designation or number from time to time notified by the Lender to the relevant Cash Collateral Account Holder, to which the Cash-Collateral Amount shall be deposited and pledged in favour of the Lender;

***"Cash Collateral Account Holder"*** means either the Borrower or the Corporate Guarantor;

 ****

***"Cash-Collateral Account Pledge Agreement"*** means the first priority pledge executed or (as the context may require) to be executed by the relevant Cash Collateral Account Holder for the creation of a pledge in favour of the Lender over the Cash-Collateral Account, in such form as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Cash Collateral Amount"*** means the aggregate amount which is deposited in the Cash Collateral Account and which may be be equal to or exceeding $1,000,000 (on top of the Pledged Deposit) or, if higher, in $1,000,000 increments up to the amount of the Loan outstanding at the relevant time, which shall remain pledged in favour of the Lender but may be withdrawn pursuant to and subject only to the provisions of Clause 3.10 *(<u>Cash Collateral</u>)*;

***"Cash-collateralised part of the Loan****"* means the part of the Loan, which corresponds to the Cash-Collateral Amount deposited in the Cash-Collateral Account and fixed for a period at least equal to the current Interest Period for the Loan and on which interest shall accrue at (a) the rate per annum determined by the Lender to be the aggregate of (i) the Margin B and (ii) the Reference Rate for that Interest Period, or (b) in the case of paragraph (b)(ii) of Clause 3.10 *(<u>Cash Collateral</u>)* at a rate per annum equal to Margin B only, <u>provided always</u> that the relevant Cash Collateral Account Holder shall be permitted to make use of the Cash-Collateral Amount voluntarily as provided in paragraph (c) of Clause 3.10 *(<u>Cash Collateral</u>)*;

 

***"Charterparty Assignment"*** means an assignment of the rights of the Borrower under any Assignable Charterparty and any guarantee of such Assignable Charterparty executed or to be executed by the Borrower in favour of the Lender and the acknowledgement of notice of the assignment in respect of such Assignable Charterparty to be given (on best effort basis by the Borrower) in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented, and ***"Charterparty Assignments"*** means all of them;

***"Classification"*** means in respect of the Vessel, the classification referred to in the Mortgage with the Classification Society or such other Classification Society as the Lender shall, at the request of the Borrower, have agreed in writing shall be treated as the Classification Society for the purposes of the Finance Documents;

***"Classification Society"*** means such classification society which is a member of IACS and which the Lender shall, at the request of the Borrower, have agreed in writing to be treated as the Classification Society for the purposes of the Finance Documents;

***"Commitment"*** means the amount which the Lender has agreed to lend to the Borrower under Clause 2.1 *(<u>Commitment to Lend</u>)* as reduced pursuant to any relevant term of this Agreement;

***"Commitment Letter"*** means the Commitment Letter dated 10 November, 2025 addressed by the Lender to the Borrower and duly accepted by it and the Corporate Guarantor and shall include any amendments or addenda thereto;

***"Compulsory Acquisition"*** means requisition for title or other compulsory acquisition, requisition, appropriation, expropriation, deprivation, forfeiture or confiscation for any reason of the Vessel, whether for full or part consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any Government Entity or other competent authority, whether de jure or de facto, but shall exclude requisition for use or hire not involving requisition of title;

***"Corporate Guarantee"*** means the irrevocable and unconditional guarantee executed or (as the context may require) to be executed by the Corporate Guarantor as a security for the Outstanding Indebtedness and any and all other obligations of the Borrower under this Agreement and the Security Documents, in form and substance satisfactory to the Lender as the same may from time to time be amended and/or supplemented;

***"Corporate Guarantor"*** means **Pyxis Tankers Inc.**, a corporation lawfully incorporated in, and validly existing under the laws of the Republic of the Marshall Islands and/or any other person nominated by the Borrower and acceptable to the Lender which may give a Corporate Guarantee, and includes its successors in title;

***"CRD IV"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Directive
 2013/36/EU of the European Parliament and of the Council 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 Directives 2006/48/EC and 2006/49/EC,
 as amended, supplemented or restated; and

(b) any
 other law or regulation which implements Basel III;

***"CRR"*** means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No. 648/2012, as amended, supplemented or restated;

 ****

***"Default"*** means any Event of Default or any event which with the giving of notice or lapse of time or the satisfaction of any other condition (or any combination thereof) would constitute an Event of Default;

***"Default Rate"*** means that rate of interest per annum which is determined in accordance with the provisions of Clause 3.4 *(<u>Default Interest</u>)*;

***"DOC"*** means a document of compliance issued to an Operator in accordance with rule 13 of the ISM Code;

***"Dollars"*** (and the sign ***"$"***) means the lawful currency for the time being of the United States of America;

***"Drawdown Date"*** means the date, being a Business Day, requested by the Borrower for the Loan to be made available, or (as the context requires) the date on which the Loan is actually made available;

***"Drawdown Notice"*** means a notice substantially in the terms of Schedule 1 (*Form of Drawdown Notice*) (or in any other form which the Lender approves);

***"Earnings"*** means all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Borrower and which arise out of the use or operation of the Vessel, including (but not limited to), all freight, hire and passage moneys, compensation payable to the Borrower in the event of requisition of the Vessel for hire, remuneration for salvage and towage services, demurrage and detention moneys, contributions of any nature whatsoever in respect of general average, damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of the Vessel and any other earnings whatsoever due or to become due to the Borrower in respect of the Vessel and all sums recoverable under the Insurances in respect of loss of Earnings and includes, if and whenever the Vessel is employed on terms whereby any and all such moneys as aforesaid are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing agreement which is attributable to the Vessel;

***"EEA Member Country"*** means any member state of the European Union, Iceland, Liechtenstein and Norway;

***"Environmental Affiliate"*** means any agent or employee of the Borrower or any other Relevant Party or any person having a contractual relationship with the Borrower or any other Relevant Party in connection with any Relevant Ship or her operation or the carriage of cargo thereon;

***"Environmental Approval"*** means any consent, authorisation, licence or approval of any governmental or public body or authorities or courts applicable to any Relevant Ship or her operation or the carriage of cargo thereon and/or passengers therein and/or provisions of goods and/or services on or from any Relevant Ship required under any Environmental Law;

***"Environmental Claim"*** means:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 claim by any other person which relates to an Environmental Incident,

and *"**claim**"* means a claim for damages, compensation, fines, penalties or any other payment of any kind which exceeds $600,000 (or the equivalent in any other currency) per incident;

***"Environmental Incident"*** means (i) any release of Material of Environmental Concern from the Vessel, (ii) any incident in which Material of Environmental Concern is released from a vessel other than the Vessel and which involves collision between the Vessel and such other vessel or some other incident of navigation or operation, in either case, where the Vessel, the Borrower or the Approved Manager is actually at fault or otherwise liable (in whole or in part) or (iii) any other incident in which Material of Environmental Concern is released from a vessel other than the Vessel and where the Vessel is actually or potentially liable to be arrested as a result and/or where the Borrower or the Approved Manager is actually at fault or otherwise liable to any legal or administrative action;

***"Environmental Laws"*** means all national, international and state laws, rules, regulations, treaties and conventions applicable to any Relevant Ship pertaining to the pollution or protection of human health or the environment including, without limitation, the carriage of Materials of Environmental Concern and actual or threatened emissions, spills, releases or discharges of Materials of Environmental Concern and actual or threatened emissions, spills, releases or discharges of Materials of Environmental Concern from any Relevant Ship (including, without limitation, the United States Oil Pollution Act of 1990 and any comparable laws of the individual States of the United States of America);

***"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 event or circumstance set out in Clause 9 *(<u>Events</u>)* or described as such in any of the Finance Documents;

***"Existing Loan Agreement"*** means the loan agreement dated 20 December, 2021 and made between (1) the Lender, as lender, and (2) (i) the Borrower and (ii) Fourthone Corporation Ltd., of Malta, as joint and several borrowers, in respect of a term loan facility of originally up to US$29,000,000 as amended from time to time, the outstanding principal amount whereof is $14,368,269.87;

***"Existing Security Interests"*** means any Security Interests created to secure the Existing Loan Indebtedness including (inter alia) the mortgage registered on the Vessel;

***"Existing Loan Indebtedness"*** means, at the Refinancing Date, the principal amount of the loan owed by the Borrower under the Existing Loan Agreement and which should be paid to the Lender on that date;

***"Expenses"*** means the aggregate at any relevant time (to the extent that the same have not been received or recovered by the Lender) of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 losses, liabilities, costs, charges, expenses, damages and outgoings of whatever nature,
 (including, without limitation, Taxes, repair costs, registration fees and insurance premiums,
 crew wages, repatriation expenses and seamen's pension fund dues) suffered, incurred,
 charged to or paid or committed to be paid by the Lender in connection with the exercise
 of the powers referred to in or granted by any of the Finance Documents or otherwise payable
 by the Borrower in accordance with the terms of any of the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 expenses referred to in Clause 10.2 *(<u>Expenses</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) interest
 on all such losses, liabilities, costs, charges, expenses, damages and outgoings from, in
 the case of Expenses referred to in sub-paragraph (b) above, the date on which such Expenses
 were demanded by the Lender from the Borrower and in all other cases, the date on which the
 same were suffered, incurred or paid by the Lender until the date of receipt or recovery
 thereof (whether before or after judgement) at the Default Rate (as conclusively certified
 by the Lender but always absent manifest error);

***"FATCA"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) sections
 1471 to 1474 of the US Internal Revenue Code of 1986 (the "  ***Code*** ")
 or any associated regulations or other associated official guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Deduction"*** means a deduction or withholding from a payment under a Finance Document required by FATCA;

***"FATCA Exempt Party"*** means a party that is entitled to receive payments free from any FATCA Deduction;

***"Final Maturity Date"*** means the fifth (5<sup>th</sup>) anniversary of the Drawdown Date;

***"Finance Documents"*** means this Agreement, the Security Documents, the Insurance Letter and any other document designated as such by the Lender and the Borrower;

***"Financial Indebtedness"*** means, in relation to a person (the *"**debtor**"*), a liability of the debtor:

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

***"Financial Year"*** means, in relation to the Borrower, each period of 1 year commencing on 1<sup>st</sup> January thereof in respect of which financial statements referred to in Clause 8.1(e) *(<u>Financial statements</u>)* are or ought to be prepared;

***"Flag State"*** means the Republic of Malta or such other state or territory proposed in writing by the Borrower to the Lender and approved by the Lender (such approval not to be unreasonably withheld, especially when requested for trading purposes), as being the Flag State of the Vessel for the purposes of the Finance Documents;

***"GAAP"*** means generally accepted accounting principles in the United States of America;

***"General Assignment"*** means the first priority deed of assignment of the Earnings, Insurances and Requisition Compensation collateral to the Mortgage executed or (as the context may require) to be executed by the Borrower in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Group"*** means, together, the Corporate Guarantor and its direct or indirect Subsidiaries (including the Borrower) from time to time during the Security Period and *"**Group Member**"* means any member of the Group;

***"Government Entity"*** means and includes (whether having a distinct legal personality or not) any national or local government authority, board, commission, department, division, organ, instrumentality, court or agency and any association, organisation or institution of which any of the foregoing is a member or to whose jurisdiction any of the foregoing is subject or in whose activities any of the foregoing is a participant;

***"Governmental Withholdings"*** means withholdings and any restrictions or conditions resulting in any charge whatsoever imposed, either now or hereafter, by any sovereign state or by any political sub-division or taxing authority of any sovereign state;

***"Historic Term SOFR"*** means, in relation to the Loan or any part of the Loan, the most recent applicable Term SOFR for a period equal in length to the Interest Period of the Loan or that part of the Loan and which is as of a day which is no more than three (3) US Government Securities Business Days before the Quotation Day;

 ****

 ****

***"IFRS"*** means international accounting standards within the meaning of the IAS Regulations 1606/2002 to the extent applicable to the relevant financial statements;

***"Insurance Letter"*** means a letter from the Borrower in the form of Schedule 2 (*Form of Insurance Letter*);

***"Insurances"*** means all policies and contracts of insurance (including, without limitation, all entries of the Vessel in a protection and indemnity, hull and machinery, war risks or other mutual insurance association) which are from time to time in place or taken out or entered into by or for the benefit of the Borrower (whether in the sole name of the Borrower or in the joint names of the Borrower and the Lender, however without the Lender being liable for payment of premiums, contributions or calls) in respect of the Vessel and its earnings or otherwise howsoever in connection with the Vessel and all benefits of such policies and/or contracts (including all claims of whatsoever nature and return of premiums);

***"Interest Payment Date"*** means in respect of the Loan or any part thereof in respect of which a separate Interest Period is fixed the last day of the relevant Interest Period and in case of any Interest Period longer than three (3) months the date(s) falling at successive three (3) monthly intervals during such longer Interest Period and the last day of such Interest Period, <u>provided, however, that</u> if any of the aforesaid dates falls on a day which is not a Business Day the Borrower shall pay the accrued interest on the first Business Day thereafter unless the result of such extension would be to carry such Interest Payment Date over into another calendar month in which event such Interest Payment Date shall be the immediately preceding Business Day;

***"Interest Period"*** means in relation to the Loan or any part thereof, each period for the calculation of interest in respect of the Loan or such part ascertained in accordance with Clauses 3.2 *(<u>Selection of Interest Period</u>)* and 3.3 *(<u>Determination of Interest Periods</u>)* and, in relation to an Unpaid Sum, each period determined in accordance with Clause 3.4 (*<u>Default interest</u>*);

***"Interpolated Historic Term SOFR"*** means, in relation to the Loan or any part of the Loan, the rate (rounded to the same number of decimal places as Term SOFR) which results from interpolating on a linear basis between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 most recent applicable Term SOFR (as of a day which is not more than three US Government
 Securities Business Days before the Quotation Day) for the longest period (for which Term
 SOFR is available) which is less than the Interest Period of the Loan or that part of the
 Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 no such Term SOFR is available for a period which is less than the Interest Period of the
 Loan or that part of the Loan, SOFR for a day which is no more than five US Government Securities
 Business Days (and no less than two US Government Securities Business Days) before the Quotation
 Day; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 most recent applicable Term SOFR (as of a day which is not more than three US Government
 Securities Business Days before the Quotation Day) for the shortest period (for which Term
 SOFR is available) which exceeds the Interest Period of the Loan or that part of the Loan;

*"**Interpolated Term SOFR**"* means, in relation to the Loan or any part of the Loan, the rate (rounded to the same number of decimal places as Term SOFR) which results from interpolating on a linear basis between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 applicable Term SOFR (as of the Quotation Day) for the longest period (for which Term SOFR
 is available) which is less than the Interest Period of the Loan or that part of the Loan;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 no such Term SOFR is available for a period which is less than the Interest Period of the
 Loan or that part of the Loan, SOFR for the day which is two (2) US Government Securities
 Business Days before the Quotation Day; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 applicable Term SOFR (as of the Quotation Day) for the shortest period (for which Term SOFR
 is available) which exceeds the Interest Period of the Loan or that part of the Loan;

 ****

***"ISM Code"*** means in relation to its application to the Borrower, the Vessel, the Approved Managers and her operation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *"The International Management Code for the Safe Operation of Ships and for Pollution Prevention"*,
 currently known or referred to as the *"ISM Code"*, adopted by the Assembly
 of the International Maritime Organisation by Resolution A. 741(18) on 4<sup>th</sup> November,
 1993 and incorporated on 19<sup>th</sup> May, 1994 into chapter IX of the International Convention
 for the Safety of Life at Sea 1974 (SOLAS 1974); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 further resolutions, circulars, codes, guidelines, regulations and recommendations which
 are now or in the future issued by or on behalf of the International Maritime Organisation
 or any other entity with responsibility for implementing the ISM Code, including without
 limitation, the *"Guidelines on implementation or administering of the International Safety Management (ISM) Code by Administrations"* produced by the International
 Maritime Organisation pursuant to Resolution A. 788(19) adopted on 25<sup>th</sup> November,
 1995,

as the same may be amended, supplemented or replaced from time to time;

***"ISM Code Documentation"*** includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 DOC and SMC issued by the Classification Society in all respects acceptable to the Lender
 in its absolute discretion pursuant to the ISM Code in relation to the Vessel within the
 period specified by the ISM Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 other documents and data which are relevant to the ISM SMS and its implementation and verification
 which the Lender may require by request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 other documents which are prepared or which are otherwise relevant to establish and maintain
 the Vessel's or the Borrower's compliance with the ISM Code which the Lender
 may require by request;

***"ISM SMS"*** means the safety management system which is required to be developed, implemented and maintained under the ISM Code;

***"ISPS Code"*** means the International Ship and Port Security Code of the International Maritime Organization and includes any amendments or extensions thereto and any regulation issued pursuant thereto;

***"ISSC"*** means an International Ship Security Certificate issued in respect of the Vessel pursuant to the ISPS Code;

***"Lender"*** means the Lender as specified in the beginning of this Agreement and includes its successors in title and transferees;

***"Lending Office"*** means the office of the Lender appearing at the beginning of this Agreement or any other office of the Lender designated by the Lender as the Lending Office by notice to the Borrower;

***"Loan"*** means the aggregate principal amount borrowed by the Borrower in respect of the Commitment or (as the context may require) the principal amount thereof owing to the Lender under this Agreement at any relevant time;

***"Major Casualty"*** means any casualty to the Vessel in respect whereof the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds the Major Casualty Amount;

***"Major Casualty Amount"*** means Six hundred thousand Dollars ($600,000) or the equivalent in any other currency;

***"Management Agreement"*** in relation to the Vessel means the agreement made between the Borrower and the respective Approved Manager providing *(inter alia)* for that Approved Manager to manage the Vessel, and in the plural means both of them;

***"Market Disruption Rate"*** means the Reference Rate;

 ****

***"Market Value"*** means the market value of the Vessel as determined in accordance with Clause 8.5(b) *(<u>Valuation of Vessel</u>)*;

***"Material Adverse Change"*** means any event or series of events which, in the opinion of the Lender, is likely to have a Material Adverse Effect;

***"Material Adverse Effect"*** means a material, in the reasonable opinion of the Lender, adverse effect on:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 validity, legality or enforceability of any Finance Document or the rights and remedies of
 the Lender under any Finance Document;

<u>Provided that</u> the Total Loss of the Vessel shall not be considered as an event having a Material Adverse Effect on (a), (b) or (c) hereinabove so long as the Borrower complies with Clause 4.3 (*<u>Compulsory Prepayment in case of Total Loss or sale or refinancing of the Vessel</u>*).

***"Material of Environmental Concern"*** means and includes pollutants, contaminants, toxic substances, oil as defined in the United States Oil Pollution Act of 1990 and all hazardous substances as defined in the United States Comprehensive Environmental Response, Compensation and Liability Act 1988;

***"MII"*** has the meaning given in Clause 10.8 *(<u>MII costs</u>)*;

***"Month"*** means a period beginning in one calendar month and ending in the next calendar month on the day numerically corresponding to the day of the calendar month on which it started, <u>provided that</u> (i) if the period started on the last Business Day in a calendar month or if there is no such numerically corresponding day, it shall end on the last Business Day in such next calendar month and (ii) if such numerically corresponding day is not a Business Day, the period shall end on the next following Business Day in the same calendar month but if there is no such Business Day it shall end on the preceding Business Day and ***"months"*** and ***"monthly"*** shall be construed accordingly;

***"Mortgage"*** means the first priority Maltese ship mortgage and the deed of covenant supplemental thereto on the Vessel to be executed by the Borrower in favour of the Lender in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

***"Operating Account"*** means the account opened or to be opened and maintained in the name of the Borrower with the Lending Office or with any other branch or office of the Lender or with such other bank as may be required by and at the discretion of the Lender pursuant to Clause 13.7 *(<u>Relocation of Operating Account</u>)* and shall include any sub-accounts or call accounts (whether in Dollars or any other currency) opened under the same designation or any revised designation or number from time to time notified by the Lender to the Borrower, to which (inter alia) all Earnings of the Vessel and/or any other moneys are to be paid in accordance with the provisions of this Agreement and/or the General Assignment and/or any of the other Finance Documents;

***"Operating Expenses"*** means the voyage and operating expenses of the Vessel, including, but not limited to, the expenses for operating, crewing, victualing, insuring, maintaining, repairing and generally trading the Vessel (and if applicable, voyage expenses), the expenses for spares, administration and management of the Vessel (inclusive of the management fees), the expenses for complying with requirements of the Classification Society and/or with any regulatory requirements as well as the reserves that the Borrower, acting reasonably, considers necessary for the commercial operation of the Vessel and the costs of intermediate and special surveys and dry docking of the Vessel;

***"Operator"*** means any person who is from time to time during the Security Period concerned in the operation of the Vessel and falls within the definition of *"Company"* set out in rule 1.1.2. of the ISM Code;

***"Outstanding Indebtedness"*** means the aggregate of (a) the Loan and interest accrued and accruing thereon, (b) the Expenses, (c) all other sums of any nature (together with all interest on any of those sums) which from time to time may be payable by the Borrower to the Lender pursuant to the Finance Documents, whether actually or contingently, (d) any damages payable as a result of any breach by the Borrower of any of the Finance Documents and (e) any damages or other sums payable as a result of any of the obligations of the Borrower under or pursuant to any of the Finance Documents being disclaimed by a liquidator or any other person, or, where the context permits, the amount thereof for the time being outstanding;

***"Party"*** means a party to this Agreement, and ***"Parties"*** means any or all of them, as the context may require;

*"**Permitted Financial Indebtedness***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 Financial Indebtedness incurred under the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) until
 the Refinancing Date, the Existing Loan Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 shareholders' loans, including any loans made by the Corporate Guarantor, which are
 unsecured and fully subordinated to all Financial Indebtedness incurred under the Finance
 Documents in writing pursuant to a subordination agreement acceptable to the Lender ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 Financial Indebtedness owing to an Approved Manager, subject to the Borrower ensuring on
 or prior to incurring such Financial Indebtedness, that the rights of the Approved Manager
 thereunder are fully subordinated to the rights of the Lender hereunder in writing pursuant
 to a subordination agreement acceptable to the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any
 Financial Indebtedness incurred in the ordinary course of owning, operating, maintaining,
 repairing and trading the Vessel or for the purposes of complying with requirements of the
 Classification Society and/or with any regulatory requirements.

***"Permitted Security Interests"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Security

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) until
 the Refinancing Date, the Existing Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) liens
 for unpaid master's and crew's wages in accordance with usual maritime practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) liens
 for salvage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) liens
 arising by operation of law for not more than two month's prepaid hire under any charter
 in relation to the Vessel not prohibited by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) 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 the Vessel, provided such liens do not secure amounts more than 90 days
 overdue (unless the overdue amount is being contested by the Borrower in good faith by appropriate
 steps) and, in the case of liens for repair or maintenance, in the Vessel is put in the possession
 of any person for the purpose of work being done upon her in an amount exceeding or likely
 to exceed the Major Casualty Amount <u>provided that</u> (i) either that person has first
 given to the Lender and in terms satisfactory to it a written undertaking not to exercise
 any lien on the Vessel or her earnings for the cost of such work or (ii) the previous consent
 of the Lender shall have been obtained (which consent shall not be unreasonably withheld);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any
 Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration
 as security for costs and expenses while the Borrower is actively prosecuting or defending
 such proceedings or arbitration in good faith; and

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

***"Pledged Deposit"*** has the meaning ascribed thereto in Clause 8.1(j) *(<u>Pledged Deposit);</u>*

 

***"Quotation Day"*** means, in relation to any period for which an interest rate is to be determined, the date falling two (2) US Government Securities Business Days before the first day of that period unless market practice differs in the relevant syndicated loan market in which case the Quotation Date will be determined by the Lender in accordance with such market practice (and if quotations would normally be given on more than one (1) day, the Quotation Date will be the last of those days);

*"**Reference Rate**"* means, in relation to the Loan or any part of the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the applicable Term SOFR as of the Quotation Day and for a period equal in length to the Interest Period of the Loan or that part of the Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as otherwise determined pursuant to Clause 3.8 (*<u>Unavailability of Term SOFR</u>*),

and if, in either case, that rate is less than zero, the Reference Rate shall be deemed to be zero;

***"Refinancing Date"*** means the date on which the Existing Loan Indebtedness is fully repaid to the Lender;

***"Registry"*** means the offices of such registrar, commissioner or representative of the Flag State who is duly authorised to register the Vessel, the Borrower's title to the Vessel and the Mortgage over the Vessel under the laws and flag of the Flag State;

***"Regulatory Agency"*** means the Government Entity or other organization in the relevant Flag State which has been designated by the government of the relevant Flag State to implement and/or administer and/or enforce the provisions of the ISM Code;

***"Related Company"*** means any company or other entity which is an Affiliate of the Borrower and ***"Related Companies"*** means any or all of them, as the context may require;

 ****

***"Relevant Jurisdiction"*** means any jurisdiction in which or where any Security Party is incorporated, resident, domiciled, has a permanent establishment, carries on, or has a place of business or is otherwise effectively connected;

***"Relevant Nominating Body"*** means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board;

***"Relevant Party"*** means the Borrower and each of the Borrower's Related Companies, and ***"Relevant Parties"*** means any or all of them, as the context may require;

***"Relevant Ship"*** means the Vessel and any other vessel from time to time (whether before or after the date of this Agreement) owned, managed or crewed by, or chartered to, any Relevant Party, and ***"Relevant Ships"*** means any or all of them, as the context may require;

***"Repayment Date"*** means each of the dates specified in Clause 4.1 *(<u>Repayment</u>)* on which the Repayment Instalments shall be payable by the Borrower to the Lender (together, the ***"Repayment Dates"***);

***"Repayment Instalment"*** means each instalment of the Loan which becomes due for repayment by the Borrower to the Lender on a Repayment Date pursuant to Clause 4.1 *(<u>Repayment</u>)* (together, the ***"Repayment Instalments"***);

***"Requisition Compensation"*** means all sums of money or other compensation from time to time payable during the Security Period by reason of Compulsory Acquisition of the Vessel otherwise than by requisition for hire;

 ****

***"Resolution Authority"*** means any body which has authority to exercise any Write-down and Conversion Powers;

***"Sanctions"*** means any economic, financial or trade sanctions laws, regulations, embargoes or other restrictive measures adopted, administered, enacted or enforced by any Sanctions Authority, or otherwise imposed by any law or regulation compliance with which is reasonable in the ordinary course of business of the Borrower, any other Security Party and the Lender or to which the Borrower, any other Security Party and the Lender are subject (which shall include without limitation, any extra-territorial sanctions imposed by law or regulation of the United States of America);

***"Sanctions Authority"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the government of the United States of America;

(b) the
 United Nations;

(c) the
 European Union (or the governments of any of its member states);

(d) the
 United Kingdom; or

(e) the
 respective governmental institutions and agencies of any of the foregoing including the Office
 of Foreign Assets Control of the U.S. Department of the Treasury ( ***"OFAC"***),
 the United States Department of State, the United States Department of Commerce and Her Majesty's
 Treasury;

***"Sanctions Restricted Jurisdiction"*** means any country or territory which is the subject of country-wide or territory-wide Sanctions, including as at the date of this Agreement, Iran, Sudan, Syria, Crimea, Donetsk People's Republic and Luhansk People's Republic regions of Ukraine, North Korea, Venezuela and Cuba.

***"Sanctions Restricted Person"*** means a person or vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that
 is, or is directly or indirectly, owned or controlled (as such terms are defined by the relevant
 Sanctions Authority) by, or acting on behalf of, one or more persons or entities on any list
 (each as amended, supplemented or substituted from time to time) of restricted entities,
 persons or organisations (or equivalent) published by a Sanctions Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that
 is located or resident in or incorporated under the laws of, or owned or controlled by, a
 person located or resident in or incorporated under the laws of a Sanctions Restricted Jurisdiction;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) that
 is otherwise the subject of Sanctions;

***"Security Documents"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Account Pledge Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Approved Manager's Undertakings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 General Assignment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Charterparty Assignment in respect of any Assignable Charterparty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Corporate Guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 Cash-Collateral Account Pledge Agreement, if applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any
 other document (whether creating a Security Interest or not) which is executed at any time
 by the Borrower or the other Security Parties or any other person as security for, or to
 establish any form of subordination or priorities arrangement in relation to, the whole or
 any part of the Outstanding Indebtedness and/or any and all other obligations of the Borrower
 pursuant to this Agreement and other moneys from time to time owing or payable under or in
 connection with this Agreement to the Lender or any of the documents referred to in this
 definition as each such document may from time to time be amended and/or supplemented, and
 "Security Document" means any of them as the context may require;

***"Security Interest"*** means:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 security rights of a plaintiff under an action *in rem*; and

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 trust arrangement or security interest or other encumbrance of any kind securing any obligation
 of any person or any type of preferential arrangement (including without limitation title
 transfer and/or retention, arrest, seizure, garnishee order (whether nisi or absolute) or
 any other order or judgement arrangements having a similar effect);

 ****

***"Security Party"*** means each of the Borrower, the Corporate Guarantor, the Approved Commercial Manager and any other person (except the Lender, any charterer and any Approved Technical Manager) 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 last paragraph of the definition of *"Finance Documents"*, and ***"Security Parties"*** means any or all of them, as the context may require;

***"Security Period"*** means the period commencing on the Drawdown Date and ending on the date on which the Lender notifies the Borrower and the other Security Parties that:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) neither
 the Borrower nor any other Security Party has any future or contingent liability under Clauses
 10 *(<u>Indemnities- Expenses-Fees</u>)* or 5 *(<u>Payments, Taxes, Loan Account and Computation</u>)* or any other provision of this Agreement or another Finance Document;

***"Security Requirement"*** means the amount in Dollars (as certified by the Lender whose certificate shall, in the absence of manifest error, be conclusively binding on the Borrower) which is at any relevant time equal to the Security Requirement Ratio;

***"Security Requirement Ratio"*** means one hundred and twenty five (125%) of the Loan outstanding at the relevant time;

 ****

***"Security Value"*** means the amount in Dollars (as certified by the Lender whose certificate shall, in the absence of manifest error, be conclusive and binding on the Borrower) which, at any relevant time is the aggregate of (i) the Market Value of the Vessel as most recently determined in accordance with Clause 8.5(b) *(<u>Valuation of Vessel</u>),* (ii) the market value of any additional security provided under Clause 8.5(a) *(<u>Security shortfall-Additional security</u>)* and accepted by the Lender (if any) and (iii) the amount of the Pledged Deposit referred to in Clause 8.1(j) *(<u>Pledged Deposit</u>)* standing to the credit of the Operating Account at the relevant time;

***"SMC"*** means a safety management certificate issued in respect of the Vessel in accordance with rule 13 of the ISM Code;

***"SOFR"*** means the secured overnight financing rate (SOFR) administered by the Federal Reserve Bank of New York (or any other person which takes over the administration of that rate) published (before any correction, recalculation or republication by the administrator) by the Federal Reserve Bank of New York (or any other person which takes over the publication of that rate);

***"Subsidiary"*** of a person means any company or entity directly or indirectly controlled by such person;

***"Taxes"*** includes all present and future taxes, levies, imposts, duties, fees or charges of whatever nature together with interest thereon and penalties in respect thereof (except taxes concerning the Lender and/or imposed on the overall net income of the Lender) and ***"Taxation"*** shall be construed accordingly;

***"Term SOFR"*** means the term SOFR reference rate administered by CME Group Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant period published (before any correction, recalculation or republication by the administrator) by CME Group Benchmark Administration Limited (or any other person which takes over the publication of that rate);

 ****

***"Total Loss"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) actual,
 constructive, compromised or arranged total loss of the Vessel; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Compulsory Acquisition of the Vessel; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 condemnation of the Vessel by any tribunal or by any person or persons claiming to be a tribunal,
 or capture, seizure, confiscation, arrest or detention of the Vessel (other than where the
 same amounts to the Compulsory Acquisition of the Vessel) by any Government Entity, or by
 persons acting on behalf of any Government Entity or otherwise, unless it is within one hundred
 and twenty (120) days from the date of such occurrence released and restored to the full
 control of the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 arrest, capture, seizure, confiscation or detention of the Vessel (including any hijacking
 or theft or piracy or related incident) unless it is within one hundred and eighty (180)
 days from the date of such occurrence redelivered to the full control of the Borrower;

***"Total Loss Date"*** means, in relation to the Vessel:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the case of a constructive, compromised, agreed or arranged total loss of the Vessel, the
 earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 date on which a notice of abandonment is given to the insurers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 date of any compromise, arrangement or agreement made by or on behalf of the Borrower with
 the Vessel's insurers in which the insurers agree to treat the Vessel as a total loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the case of the Compulsory Acquisition of the Vessel, on the date upon which the relevant
 requisition of title or other compulsory acquisition occurs excluding a requisition for hire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 the case of, condemnation, capture, seizure, confiscation, arrest, or detention of the Vessel
 (other than where the same amounts to Compulsory Acquisition of the Vessel) by any Government
 Entity, or by persons acting on behalf of any Government Entity, which deprives the Borrower
 of the use of the Vessel for more than one hundred twenty (120) days, upon the expiry of
 the period of one hundred twenty (120) days after the date upon which the relevant, condemnation,
 capture, seizure or confiscation, arrest or detention occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in
 the case of hijacking, capture, seizure or confiscation of the Vessel arising as a result
 of a piracy or related incident upon the expiry of the period of one hundred eighty (180)
 days after the occurrence thereof;

***"Transferee"*** has the meaning ascribed thereto in Clause 14.3 *(<u>Assignment by the Lender</u>)*;

***"UK Bail-In Legislation"*** means Part 1 of the United Kingdom Banking Act 2009 and any other law or regulation applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutes or their Affiliates (otherwise than through liquidation, administration or other insolvency proceedings);

*"**Unpaid Sum**"* means any sum due and payable but unpaid by a Security Party under the Finance Documents;

***"US"*** means the United States of America;

***"US Government Securities Business Day"*** means any day other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 Saturday or a Sunday; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 day on which the Securities Industry and Financial Markets Association (or any successor
 organisation) recommends that the fixed income departments of its members be closed for the
 entire day for purposes of trading in US Government securities;

***"US Tax Obligor"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Borrower, if it is resident for tax purposes in the United States of America; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 Security Party some or all of whose payments under the Finance Documents are from sources
 within the United States for US Federal income tax purposes;

***"Vessel"*** means the motor tanker **"PYXIS LAMDA"** of approximately 29705 gt and 13823 nt, built in the year 2017 in Korea, having Official Number / IMO No. **9708772**, currently registered under the laws and flag of the Republic of Malta at the Ships' Registry of the port of Valletta, together with all her boats, engines, machinery tackle outfit spare gear fuel consumable and other stores belongings and appurtenances whether on board or ashore and whether now owned or hereafter acquired and all the additions, improvements and replacements in or on the above described vessel;

***"Write-down and Conversion Powers"*** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 relation to any UK Bail-In Legislation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 powers under that UK 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 UK Bail-In Legislation that are related
 to or ancillary to any of those powers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 similar or analogous powers under that UK Bail-In Legislation.

**1.3** **Interpretation** 

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Clause
 headings and the table of contents are inserted for convenience of reference only and in
 interpreting a Finance Document or any provision of a Finance Document, all Clause, sub-Clause
 and other headings in that and any other Finance Document shall be entirely disregarded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject
 to any specific provision of this Agreement or of any assignment and/or participation or
 syndication agreement of any nature whatsoever, reference to each of the parties hereto and
 to the other Finance Documents shall be deemed to be reference to and/or to include, as appropriate,
 their respective successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where
 the context so admits, words in the singular include the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 words *"including"* and *"in particular"* shall not be
 construed as limiting the generality of any foregoing words;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) references
 to (or to any specified provisions of) a Finance Document or any other agreement or instrument
 is a reference to that Finance Document or other agreement or instrument as it may from time
 to time be amended, restated, novated or replaced, however fundamentally, whether before
 the date of this Agreement or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) references
 to Clauses and Schedules are to be construed as references to the Clauses of, and the Schedules
 to, the relevant Finance Document and references to a Finance Document include all the terms
 of that Finance Document and any Schedules, Annexes or Appendices thereto, which form an
 integral part of same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) references
 to the opinion of the Lender or a determination or acceptance by the Lender or to documents,
 acts, or persons acceptable or satisfactory to the Lender or the like shall be construed
 as reference to opinion, determination, acceptance or satisfaction of the Lender at the sole
 discretion of the Lender and such opinion, determination, acceptance or satisfaction of the
 Lender shall be conclusive and binding on the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) references
 to a *" **regulation** "* include any present or future regulation, rule,
 directive, requirement, request or guideline (whether or not having the force of law) of
 any of any governmental or intergovernmental body, agency, authority, central bank or government
 department or any self-regulatory or other national or supra-national authority or organisation
 and includes (without limitation) any Basel II Regulation or Basel III Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) references
 to any person include such person's assignees and successors in title;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) references
 to the Lender's *"cost of funds"* in relation to the Loan or any part
 of the Loan is a reference to the average cost (determined either on an actual or a notional
 basis) which the Lender would incur if it were to fund, from whatever source(s) it may reasonably
 select, an amount equal to the amount of the Loan or that part of the Loan for a period equal
 in length to the Interest Period of the Loan or that part of the Loan.

**1.4** **Construction of certain terms** 

In this Agreement:

*"**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;

*"**continuing**"*, in relation to any Default or any Event of Default, means that the Default or the Event of Default has not been remedied or waived;

*"**contingent liability**"* means a liability which is not certain to arise and/or the amount of which remains unascertained;

***"control"*** of an entity means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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 that entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) appoint
 or remove all, or the majority, of the directors or other equivalent officers of that entity;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) give
 directions with respect to the operating and financial policies of that entity with which
 the directors or other equivalent officers of that entity are obliged to comply; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 holding beneficially of more than 50 per cent of the issued share capital of that entity
 (excluding any part of that issued share capital that carries no right to participate beyond
 a specified amount in a distribution of either profits or capital) (and, for this purpose,
 any Security Interest over share capital shall be disregarded in determining the beneficial
 ownership of such share capital);

and **controlled** shall be construed accordingly;

*"**document**"* includes a deed; also a letter or fax;

***"guarantee"*** means any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness and *"**guaranteed**"* shall be construed accordingly;

*"**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;

*"**liability**"* includes every kind of debt or liability (present or future, certain or contingent), whether incurred as principal or surety or otherwise;

*"**person**"* includes any individual, firm, company, corporation, unincorporated body of persons or any state, political sub-division or any agency thereof 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;

*"**regulation**"* includes any regulation, rule, official directive, request or guideline whether or not having the force of law of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

*"**right**"* means any right, privilege, power or remedy, any proprietary interest in any asset and any other interest or remedy of any kind, whether actual or contingent, present or future, arising under contract or law, or in equity;

*"**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

*"**liquidation**", "**winding up**", "**dissolution**"*, or *"**administration**"* of person or (ii) a *"**receiver**"* or *"**administrative receiver**"* or *"**administrator**"* in the context of insolvency proceedings or security enforcement actions in respect of a person shall be construed so as to include any equivalent or analogous proceedings or any equivalent and analogous person or appointee (respectively) under the law of the jurisdiction in which such person is established or incorporated or any jurisdiction in which such person carries on business including (in respect of proceedings) the seeking or occurrences of liquidation, winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief of debtors.

**1.5** **Same meaning** 

Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

**1.6** **Inconsistency** 

Unless a contrary indication appears, in the event of any inconsistency between the terms of this Agreement and the terms of any other Finance Document when dealing with the same or similar subject matter (other than as relates to the creation and/or perfection of security) are subject to the terms of this Agreement and, in the event of any conflict between any provision of this Agreement and any provision of any Finance Document (other than in relation to the creation and/or perfection of security) the provisions of this Agreement shall prevail.

**1.7** **Finance Documents** 

Where any other Finance Document provides that Clause 1.3 *(<u>Interpretation</u>)* and Clause 1.4 *(<u>Construction of certain terms</u>)*, shall apply to that Finance Document, any other provision of this Agreement which, by its terms, purports to apply to all or any of the Finance Documents and/or any Security Party shall apply to that Finance Document as if set out in it but with all necessary changes.

**2.** **THE LOAN** 

**2.1** **Commitment to Lend** 

The Lender, relying upon (inter alia) each of the representations and warranties set forth in Clause 6 *(<u>Representations and warranties</u>)* and in each of the Security Documents, agrees to lend to the Borrower in one (1) Advance and upon and subject to the terms of this Agreement, the amount specified in Clause 1.1 *(<u>Amount and Purpose</u>)* and the Borrower shall apply all amounts borrowed under the Commitment in accordance with Clause 1.1 *(<u>Amount and Purpose</u>)*.

**2.2** **Drawdown Notice and Commitment to Borrow** 

Subject to the terms and conditions of this Agreement, the Commitment shall be advanced to the Borrower following receipt by the Lender from the Borrower of a Drawdown Notice not later than 11:30 a.m. (Athens time) on the second Business Day before the date on which the drawdown is intended to be made or such shorter period as the Lender may agree.

**2.3** **Drawdown Notice irrevocable** 

A Drawdown Notice must be signed by a director or a duly authorised attorney-in-fact of the Borrower and shall be effective on actual receipt thereof by the Lender and, once served, it, subject as provided in Clause 3.6 *(<u>Market disruption</u>)*, cannot be revoked without the prior consent of the Lender.

**2.4** **Number of Advances Agreed** 

The Commitment shall be advanced to the Borrower in one (1) Advance and any amount undrawn under the Commitment shall be cancelled and may not be borrowed by the Borrower at a later date.

**2.5** **Disbursement** 

Upon receipt of the Drawdown Notice complying with the terms of this Agreement the Lender shall, subject to the provisions of Clause 7 *(<u>Conditions precedent</u>)*, on the date specified in the Drawdown Notice, make the Commitment available to the Borrower, and payment to the Borrower shall be made to the account which the Borrower specifies in the Drawdown Notice and the proceeds of the Loan shall be applied for the purpose set out in Clause 1.1 (*Amount and purpose*).

**2.6** **Application of Proceeds** 

Without prejudice to the Borrower's obligations under Clause 8.1(c) *(<u>Use of Loan proceeds</u>)*, the Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement and shall have no responsibility for the application of the proceeds of the Loan (or any part thereof) by the Borrower.

**2.7** **Termination Date of the Commitment** 

Any part of the Commitment undrawn and uncancelled at the end of the Availability Period shall thereupon be automatically cancelled.

**2.8** **Evidence** 

It is hereby expressly agreed and admitted by the Borrower that abstracts or photocopies of the books of the Lender as well as statements of accounts or a certificate signed by an authorised officer of the Lender shall be conclusive, binding and full evidence, save for manifest error, on the Borrower as to the existence and/or the amount of the at any time Outstanding Indebtedness, of any amount due under this Agreement, of the applicable interest rate or Default Rate or any other rate provided for or referred to in this Agreement, the Interest Period, the value of additional securities under Clause 8.5(a) *(<u>Security shortfall-Additional security</u>)*, the payment or non-payment of any amount. Nevertheless, enforcement procedures or any other court or out-of-court procedure can be commenced by the Lender on the basis of the above mentioned means of evidence including written statements or certificates of the Lender.

**2.9** **Cancellation** 

The Borrower may, cancel any undrawn part of the Commitment under this Agreement upon giving the Lender not less than five (5) Business Days' notice in writing to that effect, <u>provided, that</u> no Drawdown Notice has been given to the Lender under Clause 2.2 *(<u>Drawdown Notice and Commitment to Borrow</u>)* for the full amount of the Commitment or in respect of the portion thereof in respect of which cancellation is required by the Borrower. Any such notice of cancellation, once given, shall be irrevocable. Any amount cancelled may not be drawn. Notwithstanding any such cancellation pursuant to this Clause 2.9 the Borrower shall continue to be liable for any and all amounts due to the Lender under this Agreement including without limitation any amounts due to the Lender under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*.

**2.10** **No security or lien from other person** 

The Borrower has not taken or received, and the Borrower undertakes that until all moneys, obligations and liabilities due, owing or incurred by the Borrower under this Agreement and the Security Documents have been paid in full, it will not take or receive, any security or lien from any other Security Party.

**3.** **INTEREST** 

**3.1** **Calculation of interest** 

The Borrower shall pay interest on the Loan (or as the case may be, each portion thereof to which a different Interest Period relates) in respect of each Interest Period (or part thereof) on each Interest Payment Date. The interest rate for the calculation of interest shall be the rate per annum determined by the Lender to be the aggregate of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Margin A and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Reference Rate for that Interest Period

<u>provided however that</u> the interest rate for the calculation of interest on the Cash-collateralised part of the Loan (if any) shall be, subject to paragraph (b)(ii) of Clause 3.10 *(<u>Cash Collateral</u>)*, the rate per annum determined by the Lender to be the aggregate of: (i) the Margin B (ii) and, subject to Clause 3.10 *(<u>Cash Collateral</u>)*, the Reference Rate for that Interest Period.

**3.2** **Selection of Interest Period** 

The Borrower may by notice received by the Lender not later than 11:30 a.m. (Athens time) on the second Business Day before the beginning of each Interest Period specify (subject to Clause 3.3 *(<u>Determination of Interest Periods)</u>*) whether such Interest Period shall have a duration of one (1) or three (3) months (or such other period as may be requested by the Borrower and as the Lender, in its sole discretion, may agree to).

**3.3** **Determination of Interest Periods** 

Every Interest Period shall, subject to market availability to be conclusively determined by the Lender, be of the duration specified by the Borrower pursuant to Clause 3.2 *(<u>Selection of Interest Period</u>)* but so that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Interest Period</u>: the initial Interest Period applicable to the Loan will commence on
 the Drawdown Date and each subsequent Interest Period will commence forthwith upon the expiry
 of the preceding Interest Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Period overrunning Repayment Date(s)</u>: if any Interest Period would otherwise overrun
 one or more Repayment Dates, then, in the case of the last Repayment Date, such Interest
 Period shall end on such Repayment Date, and in the case of any other Repayment Date or Dates
 the Loan shall be divided into parts so that there is one part equal to the amount(s) of
 the Repayment Instalment(s) due on each Repayment Date falling during that Interest Period
 and having an Interest Period ending on the relevant Repayment Date and another part equal
 to the amount of the balance of the Loan having an Interest Period determined in accordance
 with Clause 3.2 *(<u>Selection of Interest Period</u>)* and the other provisions of
 this Clause 3.3 and the expression *" **Interest Period in respect of the Loan** "* when used in this Agreement refers to the Interest Period in respect of the balance of the
 Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Last Interest Period</u>: the last Interest Period in respect of the Loan will terminate on the
 Final Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Failure to notify</u>: if the Borrower fails to specify the duration of an Interest Period in accordance
 with the provisions of Clause 3.2 *(<u>Selection of Interest Period</u>)* and this Clause
 3.3, such Interest Period shall have a duration of three (3) months unless another period
 shall be agreed between the Lender and the Borrower <u>provided, always, that</u> such period
 (whether of three months or different duration) shall comply with this Clause 3.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Interest Period not readily available</u>: if the Lender determines that the duration of an Interest
 Period specified by the Borrower in accordance with Clause 3.2 *(<u>Selection of Interest Period</u>)* is not readily available, then that Interest Period shall have a duration
 of 3 months and if such 3 months duration is not readily available, then that Interest Period
 shall have such duration as the Lender, may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Interest Period to extend beyond Final Maturity Date</u>: No Interest Period for the Loan
 shall end after the Final Maturity Date and any such Interest Period which would otherwise
 extend beyond the Final Maturity Date shall instead end on the Final Maturity Date,

<u>provided, always, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Interest Period which commences on the last day of a calendar month, and any Interest Period
 which commences on the day on which there is no numerically corresponding day in the calendar
 month during which such Interest Period is due to end, shall end on the last Business Day
 of the calendar month during which such Interest Period is due to end; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 the last day of an Interest Period is not a Business Day the Interest Period shall be extended
 until the next following Business Day unless such next following Business Day falls in the
 next calendar month in which case such Interest Period shall be shortened to expire on the
 preceding Business Day.

**3.4** **Default Interest** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Default interest</u>: If a Security Party fails to pay any amount payable by it under a Finance Document
 on its due date, interest shall accrue on the Unpaid Sum from the due date up to the date
 of actual payment (both before and after judgment) at a rate which, subject to paragraph
 (b) below, is 2% per annum, higher than the rate which would have been payable if the Unpaid
 Sum had, during the period of non-payment, constituted part of the Loan in the currency of
 the Unpaid Sum for successive Interest Periods, each of a duration selected by the Lender.
 Any interest accruing under this Clause 3.4 (*<u>Default interest</u>*) shall be immediately
 payable by the Security Party on demand by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 an Unpaid Sum consists of all or part of the Loan which became due on a day which was not
 the last day of an Interest Period relating to the Loan or that part of the Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion
 of the current Interest Period relating to the Loan or that part of the Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 rate of interest applying to that Unpaid Sum during that first Interest Period shall be 2%
 per annum higher than the rate which would have applied if that Unpaid Sum had not become
 due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of accrued default interest</u>: 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Compounding of default interest</u>: Any such interest which is not paid at the end of the period by
 reference to which it was determined shall be compounded every six (6) months and shall be
 payable on demand.

**3.5** **Notification of Interest and interest rate** 

The Lender shall notify the Borrower promptly of the duration of each Interest Period and of each rate of interest determined by it under this Clause 3 without prejudice to the right of the Lender to make determinations at its sole discretion, but this shall not be taken to imply that the Borrower is liable to pay such interest only with effect from the date of the Lender's notification. However, omission of the Lender to make such notification (without the application of the Borrower) will not constitute and will not be interpreted as if to constitute a breach of obligation of the Lender except in case of wilful misconduct.

**3.6** **Market disruption** 

If before close of business in Athens on the Quotation Day for the relevant Interest Period, the Lender determines (in its sole discretion) that its cost of funds relating to the Loan would be in excess of the Market Disruption Rate, then Clause 3.7 (Cost of funds) shall apply to the Loan for the relevant Interest Period.

3.7 Cost
 of funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 this Clause 3.7 (*<u>Cost of funds</u>*) 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Applicable Margin; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 rate notified to the Borrower by the Lender as soon as practically possible and in any event
 before interest is due to be paid in respect of such Interest Period), to be that which expresses
 as a percentage rate per annum the Lender's cost of funds relating to the Loan or the
 relevant part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 this Clause 3.7 (*<u>Cost of funds</u>*) applies and the Lender or the Borrower so requires,
 the Lender and the Borrower shall enter into negotiations (for a period of not more than
 20 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject
 to Clause 3.9 (*<u>Changes to reference</u>* <u>r *ates*</u>), any substitute or
 alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of
 both the Lender and the Borrower, be binding on all Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 any rate notified to the Lender under sub-paragraph (ii) of paragraph (a) above is less than
 zero, the relevant rate shall be deemed to be zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 no substitute or alternative basis agreed pursuant to paragraph (b) above, the Borrower may
 give the Lender not less than 5 days' notice of its intention to prepay the Loan at
 the end of the interest period set by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A
 notice under paragraph (e) above shall be irrevocable; and on the last Business Day of the
 interest period set by the Lender, the Borrower shall prepay (without premium or penalty)
 the Loan, together with accrued interest thereon at the applicable interest rate and the
 balance of the Outstanding Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 provisions of Clause 4 *(<u>Repayment-Prepayment</u>)* shall apply in relation to the
 prepayment made hereunder.

**3.8** **Unavailability of Term SOFR** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Interpolated Term SOFR</u>* : If no Term SOFR is available for the Interest Period of the Loan or any
 part of the Loan, the applicable Reference Rate shall be the Interpolated Term SOFR for a
 period equal in length to the Interest Period of the Loan or that part of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Historic Term SOFR</u>* : If no Term SOFR is available for the Interest Period of the Loan or any
 part of the Loan and it is not possible to calculate the Interpolated Term SOFR, the applicable
 Reference Rate shall be the Historic Term SOFR for the Loan or that part of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Interpolated Historic Term SOFR</u>:* If paragraph (b) above applies but no Historic Term SOFR is available
 for the Interest Period of the Loan or any part of the Loan, the applicable Reference Rate
 shall be the Interpolated Historic Term SOFR for a period equal in length to the Interest
 Period of the Loan or that part of the Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Cost of funds</u>* : If paragraph (c) above applies but it is not possible to calculate the
 Interpolated Historic Term SOFR, there shall be no Reference Rate for the Loan or that part
 of the Loan (as applicable) and Clause 3.7 (*<u>Cost of Funds</u>*) shall apply to the
 Loan or that part of the Loan for that Interest Period.

**3.9** **Changes to Reference Rates** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 a Published Rate Replacement Event has occurred in relation to any Published Rate, any amendment
 or waiver which relates to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) providing
 for the use of a Replacement Reference Rate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) aligning
 any provision of any Finance Document to the use of that Replacement Reference Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) enabling
 that Replacement Reference Rate to be used for the calculation of interest under this Agreement
 (including, without limitation, any consequential changes required to enable that Replacement
 Reference Rate to be used for the purposes of this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) implementing
 market conventions applicable to that Replacement Reference Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) providing
 for appropriate fallback (and market disruption) provisions for that Replacement Reference
 Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) adjusting
 the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of
 economic value from one Party to another as a result of the application of that Replacement
 Reference Rate (and if any adjustment or method for calculating any adjustment has been formally
 designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall
 be determined on the basis of that designation, nomination or recommendation),

may be made with the consent of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In this Clause 3.9 (*<u>Changes to reference rates</u>*):

"***Published Rate***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) SOFR;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Term
 SOFR for any Quoted Tenor.

"***Published Rate Contingency Period*"** means, in relation to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Term
 SOFR (all Quoted Tenors), 10 US Government Securities Business Days; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SOFR,
 10 US Government Securities Business Days.

"***Published Rate Replacement Event***" means, in relation to a Published Rate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 methodology, formula or other means of determining that Published Rate has, in the opinion
 of the Lender materially changed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 administrator of that Published Rate or its supervisor publicly announces that such administrator
 is insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) information
 is published in any order, decree, notice, petition or filing, however described, of or filed
 with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory
 or judicial body which reasonably confirms that the administrator of that Published Rate
 is insolvent,

<u>provided that</u>, in each case, at that time, there is no successor administrator to continue to provide that Published Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 administrator of that Published Rate publicly announces that it has ceased or will cease
 to provide that Published Rate permanently or indefinitely and, at that time, there is no
 successor administrator to continue to provide that Published Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 supervisor of the administrator of that Published Rate publicly announces that such Published
 Rate has been or will be permanently or indefinitely discontinued; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 administrator of that Published Rate or its supervisor announces that that Published Rate
 may no longer be used; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 administrator of that Published Rate (or the administrator of an interest rate which is a
 constituent element of that Published Rate) determines that that Published Rate should be
 calculated in accordance with its reduced submissions or other contingency or fallback policies
 or arrangements and either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 circumstance(s) or event(s) leading to such determination are not (in the opinion of the
 Lender and the Borrower) temporary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that
 Published Rate is calculated in accordance with any such policy or arrangement for a period
 no less than the applicable Published Rate Contingency Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 the opinion of the Lender and the Borrower, that Published Rate is otherwise no longer appropriate
 for the purposes of calculating interest under this Agreement.

"***Quoted Tenor***" means, in relation to Term SOFR, any period for which that rate is customarily displayed on the relevant page or screen of an information service.

"***Relevant Nominating Body***" means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board.

"***Replacement Reference Rate***" means a reference rate which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) formally
 designated, nominated or recommended as the replacement for a Published Rate by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 administrator of that Published Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Relevant Nominating Body,

and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the "***Replacement Reference Rate***" will be the replacement under paragraph (ii) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the opinion of the Lender and the Borrower, generally accepted in the international or any
 relevant domestic syndicated loan markets as the appropriate successor or alternative to
 a Published Rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 the opinion of the Lender and the Borrower, an appropriate successor or alternative to a
 Published Rate.

**3.10** **Cash Collateral** 

The Lender and the Borrower agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At
 any time during the Security Period, the Borrower shall have the option to deposit or procure
 that a Cash Collateral Account Holder deposits in the Cash Collateral Account at the beginning
 of an Interest Period the Cash Collateral Amount, which may be withdrawn only pursuant to
 paragraph (c) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Cash Collateral Amount may be placed, on and from the date of this Agreement and until the
 Lender notifies the Borrower otherwise, in the Cash Collateral Account as a time deposit,
 which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall
 bear interest as agreed with the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon
 the Lender's confirmation that such option is available, shall bear no interest, in
 which case the Cash-Collateralised Part of the Loan shall bear interest at a rate equal to
 Margin B only;

<u>provided however that</u> the aforesaid option shall not be available if an Event of Default has occurred which is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Cash Collateral Amount (or any part thereof) may not be withdrawn from the Cash Collateral
 Account other than at the relevant Cash Collateral Account Holder's request on the
 last day of an Interest Period <u>provided always that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no
 Event of Default has occurred which is continuing at the relevant time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 relevant Cash Collateral Account Holder shall have given the Lender notice received by the
 Lender not later than two (2) Business Days before the beginning of the following Interest
 Period, of its intention to withdraw in whole or in part the relevant Cash Collateral Amount.

**4.** **REPAYMENT - PREPAYMENT** 

**4.1** **Repayment** 

The Borrower shall and it is expressly undertaken by the Borrower to repay the Loan by (a) twenty (20) consecutive quarterly Repayment Instalments (the **"*Repayment Instalments*"**) to be repaid on each of the Repayment Dates so that the first Repayment Instalment is repaid on the date falling three (3) months after the Drawdown Date and each of the subsequent ones consecutively falling due for payment on each of the dates falling three (3) months after the immediately preceding Repayment Date with the last (the 20<sup>th</sup>) of such Repayment Instalments falling due for payment on the Final Maturity Date and (b) the Balloon Instalment falling due for payment on the Final Maturity Date; subject to the provisions of this Agreement the amount of each of such Repayment Instalments shall be Dollars Three hundred seventy five thousand ($375,000);

<u>provided, that</u> (a) if the last Repayment Date would otherwise fall after the Final Maturity Date, the last Repayment Date shall be the Final Maturity Date, (b) in the event that the Commitment is not drawn down in full by the last day of the Availability Period, the amount of each of the Repayment Instalments shall be proportionally reduced, (c) there shall be no Repayment Dates after the Final Maturity Date, (d) on the Final Maturity Date the Borrower shall also pay to the Lender any and all other moneys then due and payable under this Agreement and the other Finance Documents and (e) if any of the Repayment Instalments shall become due on a day which is not a Business Day, the due date therefor shall be extended to the next succeeding Business Day unless such Business Day falls in the next calendar month in which event such due date shall be the immediately preceding Business Day.

**4.2** **Voluntary Prepayment** 

The Borrower shall have the right, upon giving the Lender not less than five (5) days' notice in writing, to prepay, without penalty or prepayment fee, part or all of the Loan, in each case together with all unpaid interest accrued thereon and all other sums of money whatsoever due and owing from the Borrower to the Lender hereunder or pursuant to the other Finance Documents and all interest accrued thereon, <u>provided, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 giving of such notice by the Borrower will irrevocably commit the Borrower to prepay such
 amount as stated in such notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 the Borrower shall request consent to make such prepayment on a day other than the last day
 of an Interest Period the Borrower will pay, in addition to the amount to be prepaid, any
 such sum as may be payable to the Lender pursuant to Clause 10.1 *(<u>Indemnity</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each
 such prepayment shall be in an amount of $100,000 or a whole multiple thereof or the balance
 of the Loan and will be applied by the Lender in or towards pro-rata prepayment of the Balloon
 Instalment and the remaining Repayment Instalments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) every
 notice of prepayment shall be effective only on actual receipt (including by fax or electronic
 mail) by the Lender, shall be irrevocable and shall oblige the Borrower to make such prepayment
 on the date specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Borrower has provided evidence satisfactory to the Lender that any consent required by the
 Borrower or any Security Party in connection with the prepayment has been obtained and remains
 in force, and that any regulation relevant to this Agreement which affects the Borrower or
 any Security Party has been complied with;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no
 amount prepaid may be re-borrowed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 Borrower may not prepay the Loan or any part thereof, save as expressly provided in this
 Agreement or as otherwise agreed by the Lender;

<u>Provided always that</u> if the Borrower shall, subject always to Clause 4.2(a), make a prepayment on a Business Day other than the last day of an Interest Period in respect of the whole of the Loan, it shall, in addition to the amount prepaid and accrued interest, pay to the Lender any amount which the Lender may certify is necessary to compensate the Lender for any Break Costs incurred by the Lender as a result of the making of the prepayment in question.

**4.3** **Compulsory Prepayment in case of Total Loss or sale or refinancing of the Vessel** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Total Loss</u>: On the Vessel becoming a Total Loss:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prior
 to the advancing of the Commitment (or any part thereof), the obligation of the Lender to
 advance the Commitment (or any part thereof) shall immediately cease and the Commitment shall
 be reduced to zero; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 case the Commitment (or any part thereof) has been already advanced, the Borrower shall prepay
 the Outstanding Indebtedness in full on the earlier of (1) the date falling one hundred and
 eighty (180) days after the Total Loss Date and (2) the date of receipt by the Lender pursuant
 to the Security Documents of the insurance proceeds relating to such Total Loss or any Requisition
 Compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Sale of the Vessel - Refinancing</u>: In the event of a sale or other disposal of the Vessel,
 or in case of refinancing by another bank or if the Borrower requests the Lender's
 consent for the discharge of the Mortgage on the Vessel, the Borrower shall prepay the Outstanding
 Indebtedness in full on the date the sale is completed by delivery of the Vessel to her buyer
 or on the date of the refinancing or the date of the discharge of the Mortgage on the Vessel,
 as the case may be.

**4.4** **Amounts payable on prepayment** 

Any prepayment of all or part of the Loan under this Agreement shall be made together with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accrued
 interest on the prepaid amount to the date of such prepayment (calculated, in the case of
 a prepayment pursuant to Clause 3.6 *(<u>Market disruption</u>)* at a rate equal to
 the aggregate of the Applicable Margin and the cost of funds to the Lender pursuant to Clause
 3.7 *(Cost of funds*));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 additional amount, if applicable, payable under Clauses 5.3 *(<u>Gross Up</u>)* and/or
 12.2 *(<u>Increased cost</u>)* and 12.3 *(<u>Claim for increased cost</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all
 other sums payable by the Borrower to the Lender under this Agreement or any of the other
 Finance Documents including, without limitation, any amounts payable under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in
 relation to any prepayment made on a date other than an Interest Payment Date in respect
 of the whole of the Loan, it shall, in addition to the amount prepaid and accrued interest,
 pay to the Lender any amount which the Lender may certify is necessary to compensate the
 Lender for any Break Costs incurred by the Lender as a result of the making of the prepayment
 in question.

**5.** **PAYMENTS, TAXES, LOAN ACCOUNT AND COMPUTATION** 

**5.1** **Payments – No set-off or counterclaims** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Borrower acknowledges that in performing its obligations under this Agreement, the Lender
 will be incurring liabilities to third parties in relation to the funding of amounts to the
 Borrower, such liabilities matching the liabilities of the Borrower to the Lender and that
 it is reasonable for the Lender to be entitled to receive payments from the Borrower gross
 on the due date in order that the Lender is put in a position to perform its matching obligations
 to the relevant third parties. Accordingly, all payments to be made by the Borrower under
 this Agreement and/or any of the other Finance Documents shall be made in full, without any
 set-off or counterclaim whatsoever and, subject as provided in Clause 5.3 *(<u>Gross-up</u>)*,
 free and clear of any deductions or withholdings or Governmental Withholdings whatsoever,
 as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 Dollars, not later than 11:30 a.m. (Athens time) on the Business Day (in Piraeus, Athens
 and New York City) on which the relevant payment is due under the terms of this Agreement;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 the account of the Lender at Citibank N.A., 399, Park Avenue, New York 10022, N.Y., U.S.A.
 (SWIFT Code CITIUS33) for account of the Lender, account number 36251442 (Swift Code: CRBAGRAA),
 or such other bank in New York as the Lender may notify from time to time to the Borrower,
 reference: *" Eleventhone. - Loan Agreement dated: …… December, 2025* ", <u>provided, however, that</u> the Lender shall have the right to change the place of account for payment, upon
 ten (10) Business Days' prior written notice to the Borrower from the date on which
 the relevant payment has to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 at any time it shall become unlawful or impracticable for the Borrower to make payment under
 this Agreement to the relevant account or bank referred to in Clause 5.1(a), the Borrower
 may request, and the Lender may agree to, alternative arrangements for the payment of the
 amounts due by the Borrower to the Lender under this Agreement or the other Finance Documents.

**5.2** **Payments on Business Days** 

All payments due shall be made on a Business Day. If the due date for payment falls on a day which is not a Business Day, that payment due shall be made on the next following Business Day unless such Business Day falls in the next calendar month in which case payment shall be made on the immediately preceding Business Day.

**5.3** **Gross Up** 

If at any time any law, regulation, regulatory requirement or requirement of any governmental authority, monetary agency, central bank or the like compels the Borrower to make payment subject to Governmental Withholdings (other than a FATCA Deduction), the Borrower shall pay to the Lender such additional amounts as may be necessary to ensure that there will be received by the Lender a net amount equal to the full amount which would have been received had payment not been made subject to such Governmental Withholdings. The Borrower shall indemnify the Lender against any losses or costs incurred by the Lender by reason of any failure of the Borrower to make any such deduction or withholding or by reason of any increased payment not being made on the due date for such payment. The Borrower shall, not later than thirty (30) days after each deduction, withholding or payment of any Governmental Withholdings (other than a FATCA Deduction), forward to the Lender official receipts and any other documentary receipts and any other documentary evidence reasonably required by the Lender in respect of the payment made or to be made of any deduction or withholding or Governmental Withholding (other than a FATCA Deduction). The obligations of the Borrower under this provision shall, subject to applicable law, remain in force notwithstanding the repayment of the Loan and the payment of all interest due thereon pursuant to the provisions of this Agreement.

**5.4** **Mitigation** 

If circumstances arise which would result in an increased amount being payable by the Borrower under this Clause then, without in any way limiting the rights of the Lender under this Clause, the Lender shall use reasonable endeavours to transfer the obligations, liabilities and rights under this Agreement and the Security Documents to another office or financial institution not affected by the circumstances, but the Lender shall be under no obligation to take any such action if in its opinion, to do so would or might:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) have
 an adverse effect on its business, operations or financial condition on the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) involve
 it in any activity which is unlawful or prohibited or any activity that is contrary to, or
 inconsistent, with any regulation of the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) involve
 the Lender in any expense (unless indemnified to its reasonable satisfaction) or tax disadvantage.

**5.5** **Claw-back of Tax benefit** 

If, following any such deduction or withholding as is referred to in Clause 5.3 *(<u>Gross-up</u>)* from any payment by the Borrower, the Lender shall receive or be granted a credit against or remission for any Taxes payable by it, the Lender shall, subject to the Borrower having made any increased payment in accordance with Clause 5.3 *(<u>Gross-up</u>)* and to the extent that the Lender can do so without prejudicing its retention of the amount of such credit or remission and without prejudice to the right of the Lender to obtain any other relief or allowance which may be available to it, reimburse the Borrower with such amount as the Lender shall in its absolute discretion certify to be the proportion of such credit or remission as will leave the Lender (after such reimbursement) in no worse position than it would have been in had there been no such deduction or withholding from the payment by the Borrower. Such reimbursement shall be made forthwith upon the Lender certifying that the amount of the credit or remission has been received by it, <u>provided, always, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Lender shall not be obliged to allocate this transaction any part of a tax repayment or credit
 which is referable to a number of transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) nothing
 in this Clause shall oblige the Lender to rearrange its tax affairs in any particular manner,
 to claim any type of relief, credit, allowance or deduction instead of, or in priority to,
 another or to make any such claim within any particular time or to disclose any information
 regarding its tax affairs and computations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) nothing
 in this Clause shall oblige the Lender to make a payment which exceeds any repayment or credit
 in respect of tax on account of which the Borrower has made an increased payment under this
 Clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 allocation or determination made by the Lender under or in connection with this Clause shall
 be binding on the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) without
 prejudice to the generality of the foregoing, the Borrower shall not, by virtue of this Clause
 5.5, be entitled to enquire about the Lender's tax affairs.

**5.6** **Loan Account** 

All sums advanced by the Lender to the Borrower under this Agreement and all interest accrued thereon and all other amounts due under this Agreement from time to time and all repayments and/or payments thereof shall be debited and credited respectively to a separate loan account maintained by the Lender in accordance with its usual practices in the name of the Borrower. The Lender may, however, in accordance with its usual practices or for its accounting needs, maintain more than one account, consolidate or separate them but all such accounts shall be considered parts of one single loan account maintained under this Agreement. In case that a ship mortgage in the form of Account Current is granted as security under this Agreement, the account(s) referred to in this Clause shall be the Account Current referred to in such mortgage.

**5.7** **Computation** 

All interest and other payments payable by reference to a rate per annum under this Agreement shall accrue from day to day and be calculated on the basis of actual days elapsed and a 360 day year.

**6.** **REPRESENTATIONS AND WARRANTIES** 

**6.1** **Continuing representations and warranties** 

The Borrower hereby represents and warrants to the Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Due Incorporation/Valid Existence</u>: each of the Borrower and the other corporate Security
 Parties is duly incorporated and validly existing and in good standing under the laws of
 their respective countries of incorporation, and have power to own their respective property
 and assets, to carry on their respective business as the same are now being lawfully conducted
 and to purchase, own, finance and operate vessels, or, as the case may be, manage vessels,
 as well as to undertake the obligations which they have undertaken or shall undertake pursuant
 to the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Due Corporate Authority</u>: each of the Borrower and the other corporate Security Parties has
 power to execute, deliver and perform its obligations under the Finance Documents to which
 it is a party and, in the case of the Borrower to borrow the Commitment, and to make all
 the payments contemplated by, and to comply with, those Finance Documents to which that Security
 Party is a party and each of the corporate Security Parties has power to execute and deliver
 and perform its obligations under the Finance Documents to which it is or is to be a party;
 all necessary corporate, shareholder and other action has been taken to authorise the execution,
 delivery and performance of the same and no limitation on the powers of the Borrower to borrow
 will be exceeded as a result of borrowing the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Litigation</u>:
 no litigation or arbitration, tax claim or administrative proceeding (including action relating
 to any alleged or actual breach of the ISM Code and the ISPS Code) relating to sums exceeding
 in respect of the Borrower, the amount of Six hundred thousand Dollars ($600,000) and in
 respect of the Corporate Guarantor, the amount of One million two hundred thousand Dollars
 ($1,200,000) involving a potential liability of the Borrower or the Corporate Guarantor is
 current or pending or (to its or its officers' knowledge) threatened against the Borrower
 or the Corporate Guarantor, which, if adversely determined, would have a Material Adverse
 Effect on any of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No conflict with other obligations</u>: the execution and delivery of, the performance of its
 obligations under, and compliance with the provisions of, the Finance Documents by the relevant
 Security Parties will not (i) contravene any existing applicable law, statute, rule or regulation
 or any judgment, decree or permit to which the Borrower or any other Security Party is subject,
 (ii) conflict with, or result in any breach of any of the terms of, or constitute a default
 under, any agreement or other instrument to which the Borrower or any other Security Party
 is a party or is subject to or by which it or any of its property is bound, (iii) contravene
 or conflict with any provision of the memorandum and articles of association/articles of
 incorporation/by-laws/statutes or other constitutional documents of the Borrower or any other
 Security Party or (iv) result in the creation or imposition of or oblige the Borrower or
 any other Security Party to create any Security Interest (other than a Permitted Security
 Interest) on any of the undertakings, assets, rights or revenues of the Borrower or any other
 Security Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Financial Condition</u>: to the knowledge of the officers/directors or shareholders of the Borrower
 the financial condition of the Borrower and of the other Security Parties has not suffered
 any material deterioration since that condition was last disclosed to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Immunity</u>: neither the Borrower nor any other Security Party nor any of their respective
 assets are entitled to immunity on the grounds of sovereignty or otherwise from any legal
 action or proceeding (which shall include, without limitation, suit, attachment prior to
 judgement, execution or other enforcement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Shipping Company</u>: each of the Borrower and the Approved Manager is a shipping company involved
 in the owning or, as the case may be, managing of ships engaged in international voyages
 and earning profits in free foreign currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Licences/Authorisation</u>:
 every consent, authorisation, license or approval of, or registration with or declaration
 to, governmental or public bodies or authorities or courts required by any Security Party
 to authorise, or required by any Security Party in connection with, the execution, delivery,
 validity, enforceability or admissibility in evidence of each of the Finance Documents or
 the performance by each Security Party of its obligations under the Finance Documents to
 which such Security Party is or is to be a party has been obtained or made and is in full
 force and effect and there has been no default in the observance of any of the conditions
 or restrictions (if any) imposed in, or in connection with, any of the same so far as the
 Borrower is aware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Perfected Securities</u>: the Finance Documents do now or, as the case may be, will, upon execution
 and delivery (and, where applicable, registration as provided for in the Finance Documents):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) constitute
 the relevant Security Party's legal, valid and binding obligations enforceable against
 that Security Party in accordance with their respective terms (having the requisite corporate
 benefit which is legally and economically sufficient); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) create
 legal, valid and binding Security Interests (having the priority specified in the relevant
 Finance Document) enforceable in accordance with their respective terms over all the assets
 and revenues intended to be covered to which they, by their terms, relate, subject to any
 relevant insolvency laws affecting creditors' rights generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No third party Security Interests</u>: without limiting the generality of Clause 6.1(i) *(<u>Perfected Securities</u>)*, at the time of the execution and delivery of each Finance Document to
 which the Borrower is a party

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 third party will have any Security Interests (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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Notarisation/Filing/Recording</u>: save for the registration of the Mortgage in the Registry,
 it is not necessary to ensure the legality, validity, enforceability or admissibility in
 evidence of this Agreement or any of the other Finance Documents that it or they or any other
 instrument be notarised, filed, recorded, registered or enrolled in any court, public office
 or elsewhere or that any stamp, registration or similar tax or charge be paid on or in relation
 to this Agreement or the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No conflict</u>: There are no other agreements or arrangements which may adversely affect or
 conflict with the Finance Documents or the security thereby created;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Validity and Binding effect</u>: the Finance Documents constitute (or upon their execution - and in
 the case of any Mortgage upon its registration at the Registry - will constitute) valid and
 legally binding obligations of the relevant Security Parties enforceable against the Borrower
 and the other Security Parties in accordance with their respective terms and that there are
 no other agreements or arrangements which may adversely affect or conflict with the Finance
 Documents or the security thereby created;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Valid Choice of Law</u>: the choice of law agreed to govern this Agreement and/or any other Finance
 Document and the submission to the jurisdiction of the courts agreed in each of the Finance
 Documents are or will be, on execution of the respective Finance Documents, valid and binding
 on the Borrower and any other Security Party which is or is to be a party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Beneficial shareholding</u>:

all the issued shares and voting rights in the Borrower are held directly or indirectly by the Corporate Guarantor (being as of the date of this Agreement the sole shareholder of the Borrower) and at least 25% of the issued common share capital of the Corporate Guarantor is directly or indirectly held by the Beneficial Shareholders disclosed to the Lender in writing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Sanctions</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) none
 of the Security Parties nor any other member of the Group:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) is
 a Sanctions Restricted Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) owns
 or controls directly or indirectly a Sanctions Restricted Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) has
 a Sanctions Restricted Person serving as a director, officer or, to the best of its knowledge,
 employee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 proceeds of the Loan shall be made available, directly or to the knowledge of the Borrower
 (after reasonable enquiry) indirectly, to or for the benefit of a Sanctions Restricted Person
 contrary to Sanctions or for transactions in a Sanctions Restricted Jurisdiction nor shall
 they be otherwise directly or indirectly, applied in a manner or for a purpose prohibited
 by Sanctions.

**6.2** **Initial representations and warranties** 

The Borrower hereby further represents and warrants to the Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Direct obligations - Pari Passu</u>: the obligations of the Borrower under this Agreement are direct,
 general and unconditional obligations of the Borrower and rank at least pari passu with all
 other present and future unsecured and unsubordinated Financial Indebtedness of the Borrower
 with the exception of any obligations which are mandatorily preferred by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Information</u>:
 all information, accounts, statements of financial position, exhibits and reports furnished
 by or on behalf of any Security Party to the Lender in connection with the negotiation and
 preparation of this Agreement and each of the other Finance Documents are true and accurate
 in all material respects and not misleading, do not omit material facts and all reasonable
 enquiries have been made to verify the facts and statements contained therein; to the best
 knowledge of the Directors/Officers of the Borrower, there are no other facts the omission
 of which would make any fact or statement therein misleading and, in the case of accounts
 and statements of financial position, they have been prepared in accordance with generally
 accepted accounting principles which have been consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Event of Default</u>: no Event of Default has occurred and is continuing and neither the
 Borrower nor the Corporate Guarantor has been declared in default under any agreement relating
 to Financial Indebtedness to which it is a party or by which it may be bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Taxes</u>: no Taxes are imposed by deduction, withholding or otherwise on any payment to
 be made by the Borrower under this Agreement and/or any other of the Finance Documents or
 are imposed on or by virtue of the execution or delivery of this Agreement and/or any other
 of the Finance Documents or any document or instrument to be executed or delivered hereunder
 or thereunder. In case that any Tax exists now or will be imposed in the future, it will
 be borne by the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Ownership/Flag/Seaworthiness/Class/Insurance of the Vessel</u>: the Vessel on the Drawdown Date and on the Refinancing Date will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 the absolute and free from Security Interests (other than Permitted Security Interests) ownership
 of the Borrower who is and on the Refinancing Date will be the sole legal and beneficial
 owner of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) registered
 in the name of the Borrower through the Registry under the laws and flag of the Flag State;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) operationally
 seaworthy and in every way fit for service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) classed
 with the Classification Society which is a member of IACS and which has been approved by
 the Lender in writing and such class will be free of any overdue requirements and recommendations
 of the Classification Society affecting class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) insured
 in accordance with the provisions of this Agreement and the Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) managed
 by the Approved Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) in
 full compliance with the ISM and the ISPS Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Charter</u>: unless otherwise permitted in writing by the Lender, the Vessel is not and will
 not on the Drawdown Date be subject to any charter or contract nor to any agreement to enter
 into any charter or contract which, if entered into after the Drawdown Date would have required
 the consent of the Lender under any of the Finance Documents and there will not on or before
 the Drawdown Date be any agreement or arrangement whereby the Earnings of the Vessel may
 be shared with any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Security Interests</u>: neither the Vessel, nor its Earnings, Requisition Compensation or
 Insurances nor any other properties or rights which are, or are to be, the subject of any
 of the Security Documents nor any part thereof will, on the Drawdown Date, be subject to
 any Security Interests other than Permitted Security Interests or otherwise permitted by
 the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Compliance with Environmental Laws and Approvals</u>: except as may already have been disclosed by the
 Borrower in writing to, and acknowledged in writing by, the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Borrower and its Related Companies have complied with the provisions of all Environmental
 Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Borrower and its Related Companies have obtained all Environmental Approvals and are in compliance
 with all such Environmental Approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) neither
 the Borrower nor any of its Related Companies have received notice of any Environmental Claim
 that the Borrower or any of its Related Companies is not in compliance with any Environmental
 Law or any Environmental Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Environmental Claims</u>: except as may already have been disclosed by the Borrower in writing
 to, and acknowledged in writing by, the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) there
 is no Environmental Claim in excess of Six hundred thousand Dollars ($600,000) pending or,
 to the best of the Borrower's knowledge and belief, threatened against the Borrower
 or the Vessel or the Borrower's Related Companies or any other Relevant Ship; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there
 has been no emission, spill, release or discharge of a Material of Environmental Concern
 from the Vessel or any other Relevant Ship or any vessel owned by, managed or crewed by or
 chartered to the Borrower which could give rise to an Environmental Claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Copies true and complete</u>: the copies of the Management Agreements delivered or to be delivered
 to the Lender pursuant to Clause 7.2 *(<u>Conditions precedent to the making of the Commitment</u>)* are, or will when delivered be, true and complete copies of such documents; such documents
 will when delivered constitute valid and binding obligations of the parties thereto enforceable
 in accordance with their respective terms and there will have been no amendments or variations
 thereof or defaults thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Application made for DOC and SMC - Compliance with the ISM Code</u>: in relation to the Vessel, the Operator
 has applied to the appropriate Regulatory Agency for a DOC for itself and, on the Drawdown
 Date, it will have applied for an SMC in respect of the Vessel to be issued pursuant to the
 ISM Code within any time limit required or recommended by such Regulatory Agency and that
 neither the Borrower nor any Operator is aware of any reason why such application may be
 refused.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Compliance with ISPS Code :</u> the Borrower on the Drawdown Date shall have a valid and current ISSC
 in respect of the Vessel and will comply on the Drawdown Date and the Operator complies,
 with the requirements of the ISPS Code and the ISSC which shall be issued in respect of the
 Vessel on the Drawdown Date and shall remain valid thereafter throughout the Security Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No US Tax Obligor</u>: None of the Security Parties nor any member of the Group is a US Tax
 Obligor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Taxes paid</u>: the Borrower has paid all taxes applicable to, or imposed on or in relation to
 itself, its business or the Vessel.

**6.3** **Acting for its own account - Money laundering** 

The Borrower represents and warrants and confirms that it is the beneficiary of the Loan made or to be made available to it and it will promptly inform the Lender by written notice if it is not, or ceases to be, the beneficiary and notify the Lender in writing of the name and the address of the new beneficiary/beneficiaries; the Borrower is aware that under applicable money laundering provisions, it has an obligation to state for whose account the Loan is obtained; the Borrower confirms that, by entering into this Agreement and the other Finance Documents, it is acting on its own behalf and for its own account and it is obtaining the Loan for its own account. In relation to the borrowing by the Borrower of the Loan, the performance and discharge of its obligations and liabilities under this Agreement or any of the other Finance Documents and the transactions and other arrangements effected or contemplated by this Agreement or any of the Documents to which the Borrower is a party, it is acting for its own account and that the foregoing will not involve or lead to a contravention of any law, official requirement or other regulatory measure or procedure which has been implemented to combat "money laundering" (as defined in Article 1 of the Directive (91/308/EEC) of the Council of the European Community).

**6.4** **Representations Correct** 

At the time of entering into this Agreement all above representations and warranties or any other information given by the Borrower and/or the Corporate Guarantor to the Lender are true and accurate.

**6.5** **Repetition of Representations and Warranties** 

The representations and warranties in this Clause 6 (except in relation to (i) the representations and warranties under sub-clauses (c) *(Litigation),* (e) *(Financial Condition)* and (k) *(Notarisation/Filing/Recording)* of Clause 6.1, and (ii) the representations and warranties in Clause 6.2 *(<u>Initial representations and warranties</u>)*) shall be deemed to be repeated by the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 the date of service of the Drawdown Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on
 the Drawdown Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on
 each Interest Payment Date throughout the Security Period,

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

**7.** **CONDITIONS PRECEDENT** 

**7.1** **Conditions precedent to the execution of this Agreement** 

The obligation of the Lender to make the Commitment or any part thereof available shall be subject to the condition that the Lender shall have received, not later than the day on which the Drawdown Notice in respect of the Commitment or such part thereof is given, the following documents and evidence in form substance satisfactory to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Finance Documents</u>: a duly executed original of **this Agreement**, the **Corporate Guarantee**,
 the **Account Pledge Agreement**, the **Cash-Collateral Account Pledge Agreement (if any)** and each document required to be delivered pursuant thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Constitutional Documents</u>: a duly certified true copy of the Articles of Incorporation and By-Laws or
 the Memorandum and Articles of Association, or of any other constitutional documents, as
 the case may be, of each corporate Security Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates of incumbency</u>: a recent certificate of incumbency of each corporate Security Party issued
 by the appropriate authority or, as appropriate, signed by the secretary or a director thereof,
 stating the officers and the directors of each of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Shareholding</u>:
 a statement to the Lender confirming the identity of the Beneficial Shareholders of each
 of the Security Parties in line with *"know your customer"* procedures of
 the Lender for opening account purposes, who should be acceptable in all respects to the
 Lender; where any of the Security Parties has a corporate shareholder, the conditions set
 out in Sub-clauses (a) *(<u>Constitutional Documents</u>)*, (b) *(<u>Certificates of incumbency</u>)*, (d) if required *(<u>Resolutions</u>)* and (e) if required *(<u>Powers of Attorney</u>)* of this Clause 7.1 shall apply (mutatis mutandis) to such corporate
 shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Resolutions</u>:
 minutes of separate meetings of the directors of each corporate Security Party and in respect
 of the Borrower, of the shareholders thereof, at which there was approved (inter alia) the
 entry into, execution, delivery and performance of this Agreement, the other Finance Documents
 and any other documents executed or to be executed pursuant hereto or thereto to which the
 relevant corporate Security Party is or is to be a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Powers of Attorney</u>: the original of any power(s) of attorney and any further evidence of the
 due authority of any person signing this Agreement and the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Consents</u>:
 evidence that all necessary licences, consents, permits and authorisations (including exchange
 control ones) have been obtained by any Security Party for the execution, delivery, validity,
 enforceability, admissibility in evidence and the due performance of the respective obligations
 under or pursuant to this Agreement and the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Fees</u>:
 evidence that the fees referred to in Clause 10.11 *(<u>Fees</u>)* have been paid in
 full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Other documents</u>: any other documents or recent certificates or other evidence which would be
 reasonably required by the Lender in relation to any corporate Security Party evidencing
 that the relevant Security Party has been properly established, continues to exist validly
 and is in good standing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Management Agreements-Assignable Charterparty</u>: a copy of each of the following documents certified
 as true and complete by the legal counsel of the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Management Agreements evidencing that the Vessel is managed by the Approved Managers on terms
 acceptable to the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Assignable Charterparty; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Operating Account</u>: evidence that the Operating Account has been duly opened and all mandate forms
 and other legal documents required for the opening of an account under any applicable law,
 as well as signature cards and properly adopted authorizations have been duly delivered to
 and have been accepted by the compliance department of the Lender.

**7.2** **Conditions precedent to the making of the Commitment** 

The obligation of the Lender to advance the Commitment (or any part thereof) is subject to the further condition that the Lender shall have received on or prior to the drawdown of the Commitment or the relevant part thereof or, as the case may be, simultaneously with or immediately following the Refinancing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conditions precedent</u>: evidence that the conditions precedent set out in Clause 7.1 *(<u>Conditions precedent to the execution of this Agreement</u>)* remain fully satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Drawdown Notice</u>: the Drawdown Notice duly executed and issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Finance Documents</u>: each of the Mortgage, the General Assignment, the Approved Manager's
 Undertaking, any Charterparty Assignment relating to any Assignable Charterparty and the
 Insurance Letter duly executed and where appropriate duly registered with the Registry or
 any other competent authority (as required) and each document required to be delivered pursuant
 thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Title and no Security Interests</u>: evidence that the Vessel on the Refinancing Date will be duly
 registered in the ownership of the Borrower with the Registry and under the laws and flag
 of the Flag State free from any Security Interests save for Permitted Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Insurances</u>:
 evidence in form and substance satisfactory to the Lender that the Vessel has been or will
 – on the Refinancing Date – be insured in accordance with the insurance requirements
 provided for in this Agreement and the other Security Documents, including a MII, together
 with an opinion from insurance consultants (appointed by the Lender at the Borrower's
 expense) as to the adequacy of the insurances effected or to be effected in respect of the
 Vessel, to be followed by full copies of cover notes, policies, certificates of entry or
 other contracts of insurance and irrevocable authority is hereby given to the Lender at any
 time at its discretion to obtain copies of the policies, certificates of entry or other contracts
 of insurance from the insurers and/or obtain any information in relation to the Insurances
 relating to the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insurers' confirmations</u>: all necessary confirmations from the insurers of the Vessel that they
 will issue letters of undertaking and endorse notice of assignment and loss payable clauses
 on the Insurances, in form and substance satisfactory to the Lender in its sole discretion
 and – in the event of fleet cover – accompanied by waivers for liens for unpaid
 premium of other vessels managed by the Approved Manager and which are not subject to any
 mortgage in favour of the Lender) and (if required by the Lender) an opinion signed by an
 independent firm of marine insurance brokers appointed and/or approved by the Lender at the
 expenses of the Borrower confirming the adequacy of the Insurances maintained on the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>MII</u>:
 the MII shall have been effected by the Lender, but at the expense of the Borrower as provided
 in Clause 10.8 *(<u>MII costs</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Access to class records</u>: due authorisation in form and substance satisfactory to the Lender
 authorising the Lender to have access and/or obtain any copies of class records or other
 information at its discretion from the Classification Society of the Vessel, <u>provided however, that</u> the Lender shall not exercise such right unless and until an Event of Default
 has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notices of assignment</u>: duly executed notices of assignment in the form prescribed by the Security
 Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Mortgage registration</u>; evidence that the Mortgage on the Refinancing Date will be registered against
 the Vessel through the Registry under the laws and flag of the Flag State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Trading Certificates</u>: upon issuance, copies of the trading certificates of the Vessel evidencing
 the same to be valid and in force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Class confirmation</u>: evidence from the Classification Society that the Vessel is classed with
 the class notation (referred to in the Mortgage), with the Classification Society or to a
 similar standard with another classification society of like standing to be specifically
 approved by the Lender and remains free from any overdue requirements or recommendations
 affecting her class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Trim and stability booklet</u>: a copy of the trim and stability booklet certifying the lightweight
 of the Vessel certified as true and complete by the legal counsel of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>DOC and SMC</u>: copies of (i) the DOC referred to in paragraph (a) in the definition of the
 ISM Code Documentation and (ii) of the SMC for the Vessel, certified as true and complete
 by the legal counsel of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>ISM Code Documentation : copies of</u> such applications for ISM Code Documentation as the Lender
 may by written notice to the Borrower have requested not later than two (2) days before the
 Drawdown Date certified as true and complete in all material respects by the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>ISPS Code</u>: i) evidence satisfactory to the Lender that the Vessel is subject to a ship security
 plan which complies with the ISPS Code; and ii) upon its issuance, a copy, certified as true
 and complete copy of the ISSC for the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Valuation</u>:
 charter free valuation of the Vessel, at the Borrower's expense, prior to the Drawdown
 Date, prepared on the basis specified in Clause 8.5(b) *(<u>Valuation of Vessel</u>)* by an Approved Shipbroker appointed by the Lender in form and substance satisfactory to the
 Lender, for the purposes of determining the amount of the Loan as per Clause 1.1 *(<u>Amount and purpose</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Insurance Letter</u>: the Insurance Letter duly executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Pledged Deposit</u>: evidence that the Borrower has deposited or, as the case may be, will deposit
 concurrently with the drawdown of the Loan, the Pledged Deposit of Five hundred thousand
 Dollars ($500,000) as provided in Clause 8.1(j) *(<u>Pledged Deposit</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Acknowledgement of Receipt</u>: a receipt in writing in form and substance satisfactory to the Lender including
 an acknowledgement and admission of the Borrower and/or any other Security Party to the effect
 that the Loan was drawn by the Borrower and a declaration by the Borrower that all conditions
 precedent have been fulfilled, that there is no Event of Default and that all the representations
 and warranties are true and correct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Existing Loan Indebtedness</u>: evidence that on the Refinancing Date the Existing Loan Indebtedness
 shall have been fully repaid ; <u>Legal opinions</u>: draft opinion from lawyers appointed
 by the Lender as to all the matters referred to in Clauses 6.1(a) *(<u>Due Incorporation/Valid Existence</u>)* and 6.1 (b) *(<u>Due Corporate Authority</u>)* and all such aspects
 of law as the Lender shall deem relevant to this Agreement and the other Finance Documents
 and any other documents executed pursuant hereto or thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Security Parties' process agent</u>: a letter from each Security Party's agent for receipt
 of service of proceedings referred to in each Security Document to which the relevant Security
 Party is a party, accepting its appointment under each of the relevant Security Documents;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Flag State opinion</u>: draft opinion of legal advisers to the Lender on matters of the laws of
 the Flag State.

**7.3** **No change of circumstances** 

The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that at the time of the giving of the Drawdown Notice and on the Refinancing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and warranties</u>: the representations and warranties set out in Clause 6 *(<u>Representations and warranties</u>)* and in each of the other Finance Documents are true and correct on
 and as of each such time as if each was made with respect to the facts and circumstances
 existing at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Event of Default</u>: no Event of Default shall have occurred and be continuing or would
 result from the drawdown of the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No change</u>: the Lender shall be satisfied that (i) the Borrower remains, directly or indirectly,
 a fully (100%) owned Subsidiary of the Corporate Guarantor, and (ii) at least 25% of the
 entire issued common shares/stock of the Corporate Guarantor is directly or indirectly held
 by the Beneficial Shareholders disclosed to the Lender in writing, and (iii) there has been
 no Material Adverse Change in the financial condition of any Security Party which (change)
 might, in the sole opinion of the Lender, have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Market Disruption Event</u>: none of the circumstances contemplated by Clause 3.6 *(<u>Market disruption</u>)* has occurred and is continuing.

**7.4** **Know your customer and money laundering compliance** 

The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that the Lender, prior to or simultaneously with the drawdown, shall have received, to the extent required by any change in applicable law and regulation or any changes in the Lender's own internal guidelines since the date on which the applicable documents and evidence were delivered to the Lender pursuant to Clause 8.9 *(<u>Know your customer and money laundering compliance</u>)*, such further documents and evidence as the Lender shall require to identify the Borrower and the other Security Parties and any other persons involved or affected by the transaction(s) contemplated by this Agreement.

**7.5** **Further documents** 

Without prejudice to the provisions of this Clause 7, and provided reasonable notice is given to the Borrower by the Lender, the Borrower hereby undertakes with the Lender to make or procure to be made such amendments and/or additions to any of the documents delivered to the Lender in accordance with this Clause 7 and to execute and/or deliver to the Lender or procure to be executed and/or delivered to the Lender such further documents as the Lender and its legal advisors may reasonably require to satisfy themselves that all the terms and requirements of this Agreement have been complied with.

**7.6** **Waiver of conditions precedent** 

The conditions specified in this Clause 7 are inserted solely for the benefit of the Lender and may be waived by the Lender in whole or in part and with or without conditions. Without prejudice to any of the other provisions of this Agreement, in the event that the Lender, in its sole and absolute discretion, makes the Commitment available to the Borrower prior to the satisfaction of all or any of the conditions referred to in Clause 7.1 *<u>Conditions precedent to the execution of this Agreement</u>*, Clause 7.2 *(<u>Conditions precedent to the making of the Commitment</u>)* and Clause 7.3 *(<u>No change of circumstances</u>)*, the Borrower hereby covenants and undertakes to satisfy or procure the satisfaction of such condition or conditions by no later than fourteen (14) days after the Drawdown Date or within such longer period as the Lender may, in its sole and absolute discretion, agree to or specify.

**8.** **UNDERTAKING** 

**8.1** **General undertakings** 

The Borrower hereby undertakes with the Lender that, from the date of this Agreement and so long as any moneys are owing under any of the Finance Documents and until the full and complete payment and discharge of the Outstanding Indebtedness, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice on adverse change or Default</u>: promptly inform the Lender upon becoming aware of any occurrence which might adversely affect the
 ability of any Security Party to perform its obligations under any of the Finance Documents and, without limiting the generality
 of the foregoing, will inform the Lender of any Event of Default forthwith upon becoming aware thereof and will from time to time,
 if so requested by the Lender, confirm to the Lender in writing that, save as otherwise stated in such confirmation, no Event of
 Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consents and licenses</u>: without prejudice to Clause 6 *(<u>Representations and warranties</u>)* and Clause 7 *(<u>Conditions precedent</u>)*,
 obtain or cause to be obtained, maintain in full force and effect and comply in all material respects with the conditions and restrictions
 (if any) imposed in, or in connection with, every consent, authorisation, license or approval of governmental or public bodies or
 authorities or courts and do or cause to be done, all other acts and things which may from time to time be necessary or desirable
 under applicable law for the continued due performance of all the obligations of the Security Parties under each of the Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Use of Loan proceeds</u>: use the Loan exclusively for the purposes specified in Clause 1.1 *(<u>Amount and Purpose</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Pari passu</u>: ensure that its obligations under this Agreement shall, without prejudice to the provisions of this Clause 8.1, at all
 times rank at least pari passu with all its other present and future unsecured and unsubordinated Financial Indebtedness with the
 exception of any obligations which are mandatorily preferred by law and not by contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Financial statements</u>: furnish the Lender with (i) annual unaudited financial statements of the Borrower and annual audited financial statements
 of the Corporate Guarantor audited by an Approved Auditor, and (ii) un-audited semi-annual financial statements of the Corporate
 Guarantor, in each case prepared in accordance with Applicable Accounting Principles consistently applied, in respect of each Financial
 Year or each semester (as the case may be) of that Financial Year as soon as practicable but not later than 180 days (in the case
 of the annual financial statements) and 90 days (in the case of the un-audited semi-annual financial statements of the Corporate
 Guarantor) after the end of the financial period to which they relate, commencing in respect of the Corporate Guarantor with the
 Financial Year ending on 31<sup>st</sup> December, 2025 and in respect of the Borrower, with the Financial Year ending on 31<sup>st
</sup>December, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Provision of further information</u>: promptly, when requested, provide the Lender with such customary financial and other information and
 accounts relating to the business, undertaking, assets, liabilities, revenues, financial condition or affairs of the Borrower and
 of the Corporate Guarantor and such other further general information relating to the Borrower and to the Corporate Guarantor as
 the Lender from time to time may reasonably require, save where any such information is publicly available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Financial Information:</u> provide the Lender from time to time as the Lender may reasonably request with information on the financial conditions,
 actual and projected for the following 12 month period, cash flow position, commitments and operations of the Borrower and of the
 Corporate Guarantor including cash flow analysis and voyage accounts of the Vessel with a breakdown of income and running expenses
 showing net trading profit, trade payables and trade receivables, such financial details to be certified by an authorized signatory
 of the Borrower or (as the case may be) of the Corporate Guarantor as to their correctness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Information on the employment of the Vessel</u>: provide the Lender from time to time as the Lender may request with information on the employment
 of the Vessel, as well as on the terms and conditions of any charterparty, contract of affreightment, agreement or related document
 in respect of the employment of the Vessel, such information to be certified by an authorised signatory of the Borrower as to their
 correctness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Banking operations</u>: subject to the provisions of Clause 13.7 *(<u>Relocation of Operating Account</u>)*, ensure that all banking
 operations in connection with the Vessel are carried out through the Operating Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Pledged Deposit</u>: ensure that from the date of this Agreement and throughout the Security Period the Borrower shall maintain in the Operating
 Account with the Lender, cash minimum liquidity in the amount of Five hundred thousand Dollars ($500,000) pledged in favour of the
 Lender (herein, the  ***"Pledged Deposit"***);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Subordination</u>:
 ensure that all Financial Indebtedness of the Borrower to its shareholders is fully subordinated to the rights of the Lender under
 the Finance Documents, all in a form acceptable to the Lender, and to subordinate to the rights of the Lender under the Finance Documents
 any Financial Indebtedness issued to it by its shareholders, all in a form acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Obligations under Finance Documents</u>: duly and punctually perform each of the obligations expressed to be assumed by it under the Finance
 Documents to which is or it is to be a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Payment on demand</u>: pay to the Lender within seven (7) days from the Lender's first demand any sum of money which is due and payable
 by the Borrower to the Lender under this Agreement but in respect of which it is not specified in any other Clause when it is due
 and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with Laws and Regulations</u>: to comply, or procure compliance with all laws or regulations relating to the Borrower and/or the
 Vessel, its ownership, operation and management or to the business of the Borrower and cause this Agreement and the other Finance
 Documents to comply with and satisfy all the requirements and formalities established by the applicable laws to perfect this Agreement
 and the other Finance Documents as valid and enforceable Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Compliance with ISM Code</u>: procure that the Approved Manager and any Operator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) will
 comply with and ensure that the Vessel and any Operator by no later than the Refinancing Date complies with the requirements of the
 ISM Code, including (but not limited to) the maintenance and renewal of valid certificates pursuant thereto throughout the Security
 Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately
 inform the Lender if there is any threatened or actual withdrawal of the Borrower's, the Approved Manager's or an Operator's
 DOC or the SMC in respect of the Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly
 inform the Lender upon the issue to the Borrower, the Approved Manager or any Operator of a DOC and to the Vessel of an SMC or the
 receipt by the Borrower, the Approved Manager or any Operator of notification that its application for the same has been realised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Compliance with ISPS Code</u>: procure that the Approved Manager or any Operator will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) maintain
 at all times a valid and current ISSC respect of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately
 notify the Lender in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC in respect
 of the Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) procure
 that the Vessel will comply at all times with the ISPS Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Maintenance of Security Interests</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without
 limiting the generality of paragraph (q) above, at its own cost, promptly register, file, record or enrol any Finance Document with
 any court or authority in all Relevant Jurisdictions, pay any stamp, registration or similar tax in all Relevant Jurisdictions in
 respect of any Finance Document, give any notice or take any other step which may be 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Inspections/Surveys</u>:
 once per year or in case an Event of Default has occurred and is continuing at any time that the Lender might consider to be necessary
 or useful, have the Vessel inspected and/or surveyed at the expense of the Borrower by surveyors and/or inspectors appointed by the
 Lender and the Borrower hereby duly authorises the Lender to review the insurance and operating records of the Borrower provided
 that any inspections/surveys/reviews are conducted at reasonable times and without interfering with the daily operations and the
 ordinary trading of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Notification of litigation</u>: provide the Lender with details of any legal or administrative action relating to an amount exceeding Six hundred
 thousand Dollars ($600,000) involving the Borrower, the Approved Manager, the Vessel, the Earnings or the Insurances and of any legal
 or administrative action relating to an amount exceeding One million two hundred thousand Dollars ($1,200,000) involving the Corporate
 Guarantor, as soon as such action is instituted or it becomes apparent to the Borrower that it is likely to be instituted, unless
 it is clear that the legal or administrative action cannot be considered material in the context of any Finance Document and the
 Borrower shall procure that all reasonable measures are taken to defend any such legal or administrative action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Notification of default</u>: the Borrower will notify the Lender as soon as the Borrower becomes aware of the occurrence of an Event of Default
 and will keep the Lender fully up-to-date with all developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Registered address</u>: maintain its registered address at the address referred to in the Recital; and will not establish or do anything as
 a result of which it would be deemed to have, a place of business in the United Kingdom or the United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No US Tax Obligor :</u> shall procure that, unless otherwise agreed by the Lender, it shall not become a US Tax Obligor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Compliance with Covenants</u>: duly and punctually perform all obligations under this Agreement and the other Finance Documents.

**8.2** **Negative undertakings** 

The Borrower undertakes with the Lender that, from the date of this Agreement and so long as any moneys are owing under the Finance Documents and until the full and complete payment and discharge of the Outstanding Indebtedness, <u>it will not, without the prior written consent of the Lender</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Negative pledge</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cease
 to hold the legal title to, and own the entire beneficial interest in the Vessel, its Insurances and Earnings, free from all Security

 Interests and the effect of the assignments contained in the General Assignment and any other Finance Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) permit
 any Security Interest (other than a Permitted Security Interest) to subsist, arise or be created or extended over all or any part
 of its present or future undertakings, assets, rights or revenues to secure or prefer any present or future Financial Indebtedness
 or other liability or obligation of the Borrower or any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No further Financial Indebtedness</u>: incur no further Financial Indebtedness other than Permitted Financial Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No merger</u>: merge or consolidate with any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No disposals</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) sell,
 transfer, abandon, lend, lease or otherwise dispose of or cease to exercise direct control over any part (being either alone or when
 aggregated with all other disposals falling to be taken into account pursuant to this Clause 8.2(d), material in the opinion of the
 Lender, in relation to the undertakings, assets, rights and revenues of the Borrower) of its present or future undertaking, assets,
 rights or revenues (otherwise than by transfers, sales or disposals for full consideration in the ordinary course of trading) whether
 by one or a series of transactions related or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) transfer, lease or otherwise dispose of 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 paragraphs (i) and (ii) above do not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) any charter of the Vessel, other than as provided in Clause 8.3 (a) *<u>(Chartering)</u>* ; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) any sale of the Vessel to a *bona fide* third party on arm's length terms, other than as provided in Clause 4.3 (b) (Sale or refinancing of the Vessel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No other business</u>: undertake any type of business other than the ownership and operation of the Vessel and the chartering of the
 Vessel to third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No acquisitions</u>: acquire any further assets other than the Vessel and rights arising under contracts entered into by or on behalf
 of the Borrower in the ordinary course of its business of owning, operating and chartering the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No other obligations</u>: incur any liability or obligations except liabilities and obligations arising under the Finance Documents
 or contracts entered into in the ordinary course of its business of owning, operating and chartering the Vessel or any other Permitted
 Financial Indebtedness, (and for the purposes of this Clause 8.2(g) *(<u>No other obligations</u>)* fees to be paid pursuant
 to the Management Agreements in respect of the Vessel shall be considered as permitted obligations under the Finance Documents);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No repayment of borrowings</u>: following the occurrence of an Event of Default that is continuing, repay the principal of, or pay interest
 on or any other sum in connection with, any of its Financial Indebtedness except for Financial Indebtedness pursuant to the Finance
 Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Payments</u>: except pursuant to this Agreement and the other Finance Documents (and then only to the extent expressly permitted
 by the same) not pay out any funds (whether out of the Earnings or out of moneys collected under the General Assignment and/or the
 other Finance Documents or not) to any company or person except in connection with the administration of the Borrower, the operation,
 upgrade, maintenance and/or repair of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No guarantees</u>: issue any guarantees or indemnities or otherwise become directly or contingently liable for the obligations of any
 person, firm, or corporation except pursuant to the Finance Documents and except for guarantees or indemnities from time to time
 required in the ordinary course by any protection and indemnity or war risks association with which the Vessel is entered, guarantees
 required to procure the release of the Vessel from any arrest, detention, attachment or levy or guarantees or undertakings required
 for the salvage of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No loans</u>: make any loans or advances to, or any investments in any person, firm, corporation, joint venture or other entity including
 (without limitation) any loan or advance or grant any credit (save for normal trade credit in the ordinary course of business) to
 any officer, director, stockholder or employee or any other company managed by the Approved Manager directly or through the managers
 of the Vessel or agree to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No securities</u>: permit any Financial Indebtedness of the Borrower to any person (other than the Lender) to be guaranteed by any person
 (save, in the case of the Borrower, for guarantees or indemnities from time to time required in the ordinary course by any protection
 and indemnity or war risks association with which the Vessel is entered, guarantees required to procure the release of the Vessel
 from any arrest, detention, attachment or levy or guarantees or undertakings required for the salvage of the Vessel);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No dividends or distribution</u>: on the condition that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no
 Event of Default has occurred and is continuing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no
 Event of Default will result from the payment of such dividends or the making of any other form of distribution or any redemption,
 purchase or return of share capital,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prior
 written notice in respect thereto will be given to the Lender, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 Total Liabilities/Total Assets ratio of the Corporate Guarantor does not exceed (or will not exceed, as a result of such payment
 of dividends or the making of any other form of distribution) 75%,

the Borrower may declare or pay any dividends or make any other distribution under any name or description upon any of the issued shares or effect any form of redemption, purchase or return of share capital or otherwise dispose of any of its present or future assets, undertakings, rights or revenues (which are all assigned to the Lender) to any of its shareholders;

AND for the purposes of this sub-Clause 8.2(m):

***"Fleet Market Value"*** means, as of the date of calculation, the aggregate market value of all the vessels (including, but not limited to, the Vessel) from time to time owned by a member of the Group, as determined in accordance with the provisions *(mutatis-mutandis)* of Clause 8.5(b) *(<u>Valuation of Vessel</u>)*;

***"Total Assets"*** means, in respect of each Financial Year and by reference to the last day thereof, the aggregate on a consolidated basis of the assets of the Corporate Guarantor (including, for the avoidance of doubt, the assets of the other members of the Group and the aggregate of all monies standing to the credit of the Operating Account and any other account whether held in the name of the Corporate Guarantor or any other member of the Group and whether encumbered or otherwise) adjusted to reflect the aggregate Fleet Market Value, as reported in the financial statements to be provided to the Lender according to Clause 8.1(e) *(<u>Financial statements</u>)*; and

***"Total Liabilities"*** means, in respect of each Financial Year and by reference to the last day thereof, the consolidated liabilities of the Group which, in accordance with GAAP or (as the case may be) IFRS, are classified as liabilities less the aggregate of any shareholders' loans, which are unsecured and fully subordinated to all Financial Indebtedness incurred under the Finance Documents pursuant to a subordination agreement or otherwise, made to any one or more members of the Group, all as shown in the financial statements to be provided to the Lender according to Clause 8.1(e) *(<u>Financial statements</u>)*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No subsidiaries</u>: form or acquire any Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No change of Business Structure</u>: change the nature, organisation and conduct of the business of the Borrower as owner of the Vessel
 or the Approved Manager, as manager of Vessel, as the case may be, or carry on any business other than the business carried on at
 the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>No change of Legal Structure</u>: (such consent not be unreasonably withheld) ensure that none of the documents defining the constitution
 of the Borrower shall be materially (in the Lender's opinion) altered in any manner whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Security Interest on assets</u>: allow any part of its undertaking, property, assets or rights, whether present or future, to be
 mortgaged, charged, pledged, used as a lien or otherwise encumbered without the prior written consent of the Lender save for any
 Permitted Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Master Agreement Derivatives</u>: not enter into any transaction in a derivative other than any under a master agreement entered into with
 the Lender; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>No change of control</u>: ensure that, throughout the Security Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Borrower remains, directly or indirectly, a fully (100%) owned Subsidiary of the Corporate Guarantor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at
 least 25% of the entire issued common shares/stock of the Corporate Guarantor shall be directly or indirectly held by the Beneficial
 Shareholders disclosed in writing to the Lender.

**8.3** **Undertakings concerning the Vessel** 

The Borrower hereby undertakes with the Lender that, from the Refinancing Date and until the full and complete payment and discharge of the Outstanding Indebtedness, that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Chartering</u>:
 not without the prior written consent of the Lender which shall not be unreasonably withheld (and then only subject to such conditions
 as the Lender may impose) let or agree to let the Vessel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on
 demise charter for any period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by
 any Assignable Charterparty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) other
 than on an arm's length basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No amendment to Assignable Charterparty</u>: not without the prior written consent of the Lender which shall not be unreasonably withheld
 waive or fail to enforce, any Assignable Charterparty to which it is a party or any of its provisions, and will promptly notify the
 Lender of any amendment or supplement to any Assignable Charterparty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Approved Manager</u>: not without the prior written consent of the Lender which shall not be unreasonably withheld appoint a manager of the
 Vessel other than the Approved Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Ownership/Management/Control</u>:
 ensure that the Vessel is and remains registered on the Refinancing Date in the ownership of the Borrower under the laws of the Flag
 State and thereafter ensure that the Vessel will maintain her ownership, management and control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Class</u>:
 ensure that the Vessel remains in class free of overdue recommendations by the Classification Society and provide the Lender on demand
 with copies of all class and trading certificates of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Insurances</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) ensure that all Insurances (as defined in the relevant Mortgage/General Assignment) of the Vessel are maintained and comply with all insurance requirements specified in this Agreement and in the Mortgage and in case of failure to maintain the Vessel so insured, authorise the Lender (and such authorisation is hereby expressly given to the Lender) to have the right but not the obligation to effect such Insurances on behalf of the Borrower (and in case that the Vessel remains in port for an extended period) to effect port risks insurances at the cost of the Borrower which, if paid by the Lender, shall be Expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) if (i) an Event of Default has occurred and is continuing or (ii) there has been any change in the insurance placement within such year or (iii) there has been a Material Adverse Change of the financial condition of any of the insurers of the Vessel at the Lender's sole opinion, the Lender shall be entitled to obtain once per year at Borrower's expense an opinion from insurance consultants (appointed by the Lender at the Borrower's expense) as to the adequacy of the insurances effected or to be effected in respect of the Vessel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Transfer/Security Interests</u>: except as provided in Clause 4.3 (b) *(<u>Sale of the Vessel - Refinancing</u>)*, not without the prior written
 consent of the Lender sell or otherwise dispose of the Vessel or any share therein or create or agree to create or permit to subsist
 any Security Interest over the Vessel (or any share or interest therein) other than Permitted Security Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Not imperil Flag, Ownership, Insurances</u>: ensure that the Vessel following the Refinancing Date is maintained and trades in
 conformity with the laws of the Flag State, of its owning company or of the nationality of the officers, the requirements of the
 Insurances and nothing is done or permitted to be done which could endanger the flag of the Vessel or its unencumbered (other than
 Security Interests in favour of the Lender and Security Interests permitted by this Agreement) ownership or its Insurances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Mortgage Covenants</u>: always comply with all the covenants provided for in the Mortgage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Assignment of Earnings</u>: not assign or agree to assign otherwise than to the Lender the Earnings or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Sharing of Earnings</u>: not, without the prior written consent of the Lender which shall not be unreasonably withheld

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) enter
 into any agreement or arrangement for the sharing or pooling of any Earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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 the Borrower to any Earnings; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Assignable Charterparty</u>: ensure and procure that in the event of the Vessel being employed under an Assignable Charterparty:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Borrower shall execute and deliver to the Lender within fifteen (15) days from the Lender's relevant request a specific assignment
 of all its rights, title and interest in and to such charter and any charter guarantee (if available) in the form of a Charterparty
 Assignment and a notice of such assignment addressed to the relevant charterer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Borrower will ensure (on a reasonable endeavours basis) that the relevant charterer and any charter guarantor agree to acknowledge
 to the Lender the specific assignment of such charter and charter guarantee by executing an acknowledgement substantially in the
 form included in the relevant Charterparty Assignment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in
 the case where such charter is a demise charter, procure that such demise charter includes a provision that (*inter alia*) the
 relevant charterer shall undertake to the Lender (aa) to comply with all of the Borrower's undertakings with regard to the
 employment, insurances, operation, repairs and maintenance of the Vessel contained in this Agreement, the Mortgage and the General
 Assignment and (bb) to provide *(inter alia)* an assignment of its interest in the insurances of the Vessel in the form of a
 tripartite agreement in form and substance acceptable to the Lender, to be made between the Lender, the Borrower and such charterer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No freight derivatives</u>: not enter into or agree to enter into any freight derivatives or any other instruments which have the effect
 of hedging forward exposures to freight derivatives without the Lender's consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with Environmental Laws</u>: comply with, and procure that all its Environmental Affiliates comply with, all Environmental Laws including
 without limitation, requirements relating to manning and establishment of financial responsibility and to obtain and comply with,
 and procure that all its Environmental Affiliates comply with, all Environmental Approvals and to notify the Lender forthwith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) of
 any Environmental Claim for an amount or amounts in aggregate exceeding Six hundred thousand Dollars ($600,000) made against the
 Vessel, any Relevant Ship and/or her respective owner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon
 becoming aware of any incident which may give rise to an Environmental Claim and to keep the Lender advised in writing of the Borrower's
 response to such Environmental Claim on such regular basis and in such detail as the Lender shall require; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>War Risk Insurance cover</u>: in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit
 the Vessel to enter or trade to any zone which is declared a war zone by any government or by the Vessel's war risks insurers
 unless first obtaining the consent to such employment or trade of the insurers and complying with such requirements as to extra premium
 or otherwise as the insurers may prescribe require.

**8.4** **Validity of Securities - Earnings - Taxes etc.** 

The Borrower hereby undertakes with the Lender that, from the date of this Agreement and throughout the Security Period, it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Validity</u>:
 ensure and procure that all governmental or other consents required by law and/or any other steps required for the validity, enforceability
 and legality of this Agreement and the other Finance Documents are maintained in full force and effect and/or appropriately taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Earnings</u>:
 ensure and procure that, unless and until directed by the Lender otherwise (i) all the Earnings of the Vessel shall be paid to the
 Operating Account and (ii) the persons from whom the Earnings are from time to time due are irrevocably instructed to pay them to
 the Operating Account or to such account in the name of the Borrower as shall be from time to time determined by the Lender in accordance
 with the provisions of this Agreement and/or the relevant Security Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Taxes</u>:
 pay all Taxes, assessments and other governmental charges when the same fall due, except to the extent that the same are being contested
 in good faith by appropriate proceedings and adequate reserves have been set aside for their payment if such proceedings fail; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Additional Documents</u>: from time to time at the request of the Lender execute and deliver to the Lender or procure the execution and delivery
 to the Lender of all such documents as shall be deemed necessary at the reasonable discretion of the Lender for giving full effect
 to this Agreement, and for perfecting, protecting the value of or enforcing any rights or securities granted to the Lender under
 any one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto and in
 case that any conditions precedent (with the Lender's consent) have not been fulfilled prior to the Refinancing Date, such
 conditions shall be complied with within ten (10) Business Days after the Lender's written request (unless the Lender agrees
 otherwise in writing) and failure to comply with this covenant shall be an Event of Default.

**8.5** **Security cover - Valuation of the Vessel** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Security shortfall - Additional Security</u>: If at any time during the Security Period, the Security Value shall be less than the Security
 Requirement, the Lender may give notice to the Borrower requiring that such deficiency be remedied and then the Borrower shall (unless
 the sole cause of such deficiency is the Total Loss of the Vessel and the Borrower is in full compliance with his obligations in
 relation to such Total Loss) either;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepay
 (in accordance with Clause 4.2 *(<u>Voluntary prepayment</u>)* (but without regard to the requirement for five (5) days'
 prior notice or for minimum amount prepaid) within a period of forty five (45) days of the date of receipt by the Borrower of the
 Lender's said notice (the  ***"Prepayment Date"***) such sum in Dollars as will result in the Security Requirement
 after such prepayment (taking into account any other repayment of the Loan made or to be made between the date of the notice and
 the date of such prepayment) being at least equal to the Security Value; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) on
 or before the Prepayment Date constitute to the satisfaction of the Lender such additional security for the Loan as shall be acceptable
 to the Lender having a net realisable value for security purposes (as determined by the Lender in its absolute discretion) at the
 date upon which such additional security shall be constituted which, when added to the Security Value, shall not be less than the
 Security Requirement as at such date. Such additional security shall be constituted by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) additional
 pledged cash deposits in favor of the Lender in an amount equal to such shortfall with the Lender and in an account and manner to
 be determined by the Lender; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any
 other security acceptable to the Lender at its absolute discretion to be provided in a manner determined by the Lender.

Any such additional security provided to the Lender shall be promptly released by the Lender once the Lender has been satisfied that i) the Security Requirement Ratio has been and remains restored for ninety (90) days and ii) at the relevant time, no Event of Default has occurred and is continuing or will result from such release. The provisions of Clause 4.4 *(<u>Amounts payable on prepayment)</u>* shall apply to prepayments under Clause 8.5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Valuation of Vessel</u>: (except for valuations obtained in accordance with Clause 7.2 (q) (*<u>Valuations</u>*) for the purpose of determining
 the Market Value of the Vessel prior to drawdown of the Commitment) the Vessel shall, for the purposes of this Clause 8.5, be valued
 in Dollars once in each calendar year or, if an Event of Default has occurred and is continuing, at any other time that the Lender
 shall reasonably require and for as long as such Event of Default is continuing, by two (2) Approved Shipbrokers, one appointed by
 the Lender and one appointed by the Borrower (such valuations to be addressed to the Lender and to be made without, unless required
 by the Lender, physical inspection, and on the basis of a sale for prompt delivery for cash at arm's length on normal commercial
 terms as between a willing buyer and a willing seller, without taking into account the benefit of any charterparty or other engagement
 concerning the Vessel). The Lender and the Borrower agree to accept the average of such valuations made by the Approved Shipbrokers
 appointed as aforesaid as conclusive evidence of the Market Value of the Vessel at the date of such valuations and that the average
 of such valuations shall constitute the Market Value of the Vessel for the purposes of this Clause 8.5.

Notwithstanding the foregoing, each time that the Market Value of the Vessel needs to be determined under this Agreement, the Borrower may elect to waive its right to appoint, and obtain a valuation from a second Approved Shipbroker, in which case the valuation made by the Approved Shipbroker appointed by the Lender shall constitute the Market Value of the Vessel for the purposes of this Clause 8.5(b). Any waiver made by the Borrower under this Clause will be in writing and shall not prejudice the Borrower's right to appoint and obtain a valuation from, a second Approved Shipbroker, at any other time that the Market Value of the Vessel needs to be determined under this Agreement, whether before or after such waiver.

The value of the Vessel determined in accordance with the provisions of this Clause 8.5 shall be binding upon the Borrower and the Lender until such time as any further such valuations shall be obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Information</u>:
 The Borrower undertakes to the Lender to supply to the Lender and to any such Approved Shipbrokers such information concerning the
 Vessel (or any other vessel over which additional security has been created in accordance with Clause 8.5 (a) (ii) (*Security shortfall- Additional security*)) and its condition as such Approved Shipbrokers may reasonably require for the purpose of making any such
 valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Costs</u>:
 All costs in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Lender obtaining any valuation of the Vessel referred to in Clause 8.5(b) *(<u>Valuation of Vessel</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 valuation of any additional security for the purposes of ascertaining the Security Value at any time or necessitated by the Borrower
 electing to constitute additional security pursuant to Clause 8.5(a)(ii): and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 legal and other expenses incurred by the Lender in connection with any matter arising out of this Clause 8.5

shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Valuation of additional security</u>: For the purpose of this Clause 8.5, the market value of any additional security provided or to be provided
 to the Lender shall be determined by the Lender in its absolute discretion without any necessity for the Lender assigning any reason
 thereto and if such security consists of a vessel shall be that shown by a valuation complying with the requirements of Clause 8.5(b) *(<u>Valuation of Vessel</u>)* (whereas the costs shall be borne by the Borrower in accordance with Clause 8.5(d) *(<u>Costs</u>)*)
 or if the additional security is in the form of a cash deposit full credit shall be given for such cash deposit on a Dollar for Dollar
 basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Documents and evidence</u>: In connection with any additional security provided in accordance with this Clause 8.5, the Lender shall be entitled
 to receive such evidence and documents of the kind referred to in Schedule 2 as may in the Lender's opinion be appropriate
 and such favourable legal opinions as the Lender shall in its discretion require.

**8.6** **Sanctions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without
 Limiting Clause 8.7 *(<u>Compliance with laws etc.</u>)*, the Borrower hereby undertakes with the Lender that, from the date
 of this Agreement and until the date that the Outstanding Indebtedness is paid in full, shall ensure that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Vessel will not be used by or for the benefit of a Sanctions Restricted Person contrary to Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Vessel will not be used in trading in any Sanctions Restricted Jurisdiction or in any manner contrary to Sanctions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Vessel will not be traded in any manner which would trigger the operation of any sanctions limitation or exclusion clause (or similar)
 in the Insurances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not
 directly or to its knowledge (after reasonable enquiry) indirectly use or permit to be used all or any part of the proceeds of the
 Loan, or lend, contribute or otherwise make available such proceeds directly or to its knowledge (after reasonable enquiry) indirectly,
 to any person or entity (i) to finance or facilitate any activity or transaction of or with any Sanctions Restricted Person contrary
 to Sanctions or in any Sanctions Restricted Country, or (ii) in any other manner that would result in a violation of any Sanctions
 by any Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall
 not fund all or part of any payment under the Loan out of proceeds derived directly or to its knowledge (after reasonable enquiry)
 indirectly from any activity or transaction with a Sanctions Restricted Person contrary to Sanctions or in a Sanctions Restricted
 Jurisdiction or which would otherwise cause any party to be in breach of any Sanctions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) procure
 that no proceeds to its knowledge (after reasonable enquiry) from activities or business with a Sanctions Restricted Person contrary
 to Sanctions or in a Sanctions Restricted Jurisdiction are credited to the Operating Account.

**8.7** **Compliance with laws etc.** 

The Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) comply,
 or procure compliance with all laws or regulations by the relevant Security Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) relating
 to its respective business generally; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) relating
 to the Vessel, its ownership, employment, operation, management and registration including, but not limited to, the ISM Code, the
 ISPS Code, all Environmental Laws and the laws of the Flag State; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obtain,
 comply with and do all that is necessary to maintain in full force and effect any Environmental Approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) without
 limiting paragraph (a) above, not employ the Vessel nor allow its employment, operation or management in any manner contrary to any
 law or regulation including, but not limited to, the ISM Code, the ISPS Code and all Environmental Laws which has or is likely to
 have a Material Adverse Effect on the business, position, profitability, assets or the financial condition of any of the Security
 Parties and Sanctions.

**8.8** **Know your customer and money laundering compliance** 

The Borrower hereby undertakes with the Lender that, from the date of this Agreement and so long as any moneys are owing under the Finance Documents and while all or any part of the Commitment remains outstanding, it will provide the Lender, or procure the provision of, such documentation and other evidence as the Lender shall from time to time require, based on applicable law and regulations from time to time and the Lender's own internal guidelines from time to time to identify the Borrower and the other Security Parties, including the disclosure in writing of the ultimate legal and beneficial owner or owners of such entities, and any other persons involved or affected by the transaction(s) contemplated by this Agreement in order for the 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.

**9.** **EVENTS OF DEFAULT** 

**9.1** **Events** 

There shall be an Event of Default if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-payment</u>:
 any Security Party fails to pay any sum payable by it under any of the Finance Documents at the time, in the currency and in the
 manner stipulated in the Finance Documents (and so that, for this purpose, sums payable on demand shall be treated as having been
 paid at the stipulated time if paid within five (5) Business Days of demand and other sums due shall be treated as having been paid
 at the stipulated time if paid within three (3) Business Days of its falling due); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Breach of Insurance and certain other obligations</u>: the Borrower fails to obtain and/or maintain the Insurances (as defined in, and in
 accordance with the requirements of, the Finance Documents) or if any insurer in respect of such Insurances cancels the Insurances
 or disclaims liability by reason, in either case, of mis-statement in any proposal for the Insurances or for any other failure or
 default on the part of the Borrower or the Borrower commits any breach of or omits to observe any of the obligations or undertakings
 expressed to be assumed by it under Clause 8 *(<u>Covenants</u>)*; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Breach of other obligations</u>: any Security Party commits any breach of or omits to observe any of its obligations or undertakings expressed
 to be assumed by it under any of the Finance Documents (other than those referred to in Clauses 9.1(a) *(<u>Non-payment</u>)* and
 9.1(b) *(<u>Breach of Insurance and certain other obligations</u>)*) and, in respect of any such breach or omission which in
 the opinion of the Lender is capable of remedy, such action as the Lender may require shall not have been taken within fifteen (15)
 Business Days of the Lender notifying in writing the relevant Security Party of such default and of such required action; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Misrepresentation</u>:
 any representation or warranty made or deemed to be made or repeated by or in respect of any Security Party in or pursuant to any
 of the Finance Documents or in any notice, certificate or statement referred to in or delivered under any of the Finance Documents
 is or proves to have been incorrect or misleading in any material respect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Cross-default</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Financial Indebtedness of the Borrower relating to an amount exceeding Six hundred thousand Dollars ($600,000) **or** any Financial
 Indebtedness of the Corporate Guarantor relating to an amount exceeding One million two hundred thousand Dollars ($1,200,000) is
 not paid when due (unless contested in good faith), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 Financial Indebtedness of the Borrower relating to an amount exceeding Six hundred thousand Dollars ($600,000) **or** any Financial
 Indebtedness of the Corporate Guarantor relating to an amount exceeding One million two hundred thousand Dollars ($1,200,000) (whether
 by declaration or automatically in accordance with the relevant agreement or instrument constituting the same) becomes due and payable
 prior to the date when it would otherwise have become due (unless as a result of the exercise by the Borrower or the Corporate Guarantor
 (as the case may be) of a voluntary right of prepayment), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 facility or commitment available to the Borrower relating to Financial Indebtedness relating to an amount exceeding Six hundred thousand
 Dollars ($600,000) **or** any facility or commitment available to the Corporate Guarantor relating to Financial Indebtedness relating
 to an amount exceeding One million two hundred thousand Dollars ($1,200,000) is withdrawn, suspended or cancelled by reason of any
 default (however described) of the person concerned unless the Borrower or the Corporate Guarantor (as the case may be) shall have
 satisfied the Lender that such withdrawal, suspension or cancellation will not affect or prejudice in any way the Borrower's
 or the Corporate Guarantor's (as the case may be) ability to pay its debts as they fall due, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any
 guarantee given by the Borrower or the Corporate Guarantor in respect of Financial Indebtedness relating, with respect to the Borrower
 to an amount exceeding Six hundred thousand Dollars ($600,000) and in respect of the Corporate Guarantor, to an amount exceeding
 One million two hundred thousand Dollars ($1,200,000) is not honoured when due and called upon; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Legal process</u>: any judgment or order made or commenced in good faith by a person against any of the Borrower and the Corporate Guarantor
 relating with respect to the Borrower to an amount exceeding Six hundred thousand Dollars ($600,000) and in respect of the Corporate
 Guarantor, to an amount exceeding One million two hundred thousand Dollars ($1,200,000), is not stayed or complied with within thirty
 (30) Business Days or a good faith creditor attaches or takes possession of, or a distress, execution, sequestration or other *bona fide* process relating with respect to the Borrower to an amount exceeding Six hundred thousand Dollars ($600,000) and in respect
 of the Corporate Guarantor, to an amount exceeding One million two hundred thousand Dollars ($1,200,000), is levied or enforced upon
 or sued out against, any of the undertakings, assets, rights or revenues of any of the Borrower and the Corporate Guarantor and is
 not discharged within thirty (30) Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insolvency</u>:
 any Security Party becomes insolvent or stops or suspends making payments (whether of principal or interest) with respect to all
 or any class of its debts or announces an intention to do so; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reduction or loss of capital</u>: a meeting is convened by the Borrower for the purpose of passing any resolution to purchase, reduce or redeem
 any of its share capital; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Winding up</u>: any petition is presented or other step is taken for the purpose of winding up any Security Party or an order is made or
 resolution passed for the winding up of any Security Party or a notice is issued convening a meeting for the purpose of passing any
 such resolution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Administration</u>:
 any *bona fide* petition is presented or other step is taken for the purpose of the appointment of an administrator of any Security
 Party or an administration order is made in relation to any Security Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Appointment of receivers and managers</u>: any administrative or other receiver is appointed of any Security Party or any material (in the Lender's
 opinion) part of its assets and/or undertaking or any other steps are taken to enforce any Security Interest over all or any material
 (in the Lender's opinion) part of the assets of any Security Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Compositions</u>:
 any steps are taken, or negotiations commenced, by any Security Party or by any of its creditors with a view to the general readjustment
 or rescheduling of all or a material (in the Lender's opinion) part of its indebtedness or to proposing any kind of composition,
 compromise or arrangement involving such company and any of its creditors <u>provided, however, that</u> if the Borrower is able
 to provide such evidence as is satisfactory in all respects to the Lender that such rescheduling will not relate to any payment default
 or anticipated default the same shall not constitute an Event of Default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Analogous proceedings</u>: there occurs, in relation to any Security Party, in any country or territory in which any of them carries on business
 or to the jurisdiction of whose courts any part of their assets is subject, any event which in that country or territory corresponds
 with, or have an effect equivalent or similar to, any of those mentioned in Clause 9.1 paragraphs (f) *(<u>Legal process</u>)* through
 (l) *(<u>Compositions</u>)* (inclusive) or any Security Party otherwise becomes subject, in any such country or territory, to
 the operation of any law relating to insolvency, bankruptcy or liquidation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Cessation of business</u>: any Security Party suspends or ceases to carry on its business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Seizure</u>:
 all or a material part of the undertaking, assets, rights or revenues of, or shares or other ownership interests in, any Security
 Party are seized, nationalised, expropriated or compulsorily acquired by or under the authority of any government; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Invalidity</u>:
 any of the Finance Documents shall at any time and for any reason become invalid or unenforceable or otherwise cease to remain in
 full force and effect, or if the validity or enforceability of any of the Finance Documents shall at any time and for any reason
 be contested by any Security Party which is a party thereto, or if any such Security Party shall deny that it has any, or any further,
 liability thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Unlawfulness</u>:
 it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the covenants and obligations expressed to
 be assumed by it in any of the Finance Documents or for the Lender to exercise the rights or any of them vested in it under any of
 the Finance Documents or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Repudiation</u>:
 any Security Party repudiates any of the Finance Documents or does or causes or permits to be done any act or thing evidencing an
 intention to repudiate any of the Finance Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Security Interests enforceable</u>: any Security Interest (other than Permitted Security Interests) in respect of any of the property (or
 a material (in the Lender's opinion) part thereof) which is the subject of any of the Finance Documents becomes enforceable;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Material Adverse Change</u>: there occurs, in the reasonable opinion of the Lender, a Material Adverse Change in the financial condition of
 any of the Borrower and the Corporate Guarantor as described by the Borrower or any other Security Party to the Lender in the negotiation
 of this Agreement, which materially impairs the ability of the above Security Parties (or either of them) to perform their respective
 obligations under this Agreement and the Finance Documents to which is or is to be a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Arrest</u>:
 the Vessel is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained in exercise or purported exercise
 of any possessory lien or other claim or otherwise taken from the possession of the Borrower (otherwise than due to an event falling
 within the definition of Total Loss) and the Borrower shall fail to procure the release of the Vessel within a period of forty (40)
 Business Days thereafter; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Registration</u>:
 the registration of the Vessel under the laws and flag of the Flag State is cancelled or terminated without the prior written consent
 of the Lender or, if applicable, the Vessel is only provisionally registered on the Refinancing Date and is not permanently registered
 under the laws and flag of the Flag State at least thirty (30) days prior to the deadline for completing such permanent registration;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Unrest</u>:
 the Flag State of the Vessel becomes involved in hostilities or civil war or there is a seizure of power in such Flag State by unconstitutional
 means if, in any such case, (a) such event could in the opinion of the Lender reasonably be expected to have a Material Adverse Effect
 on the security constituted by any of the Finance Documents and (b) the Borrower has failed within thirty (30) days from receiving
 notice from the Lender to this effect to (i) delete the Vessel from its Flag State and (ii) re-register the Vessel under another
 Flag State approved by the Lender in its sole discretion through a relevant Registry, in each case, at the Borrowers' cost
 and expense; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Approved Manager</u>: there occurs, in relation to an Approved Manager any of the events mentioned in Clause 9.1 paragraphs (e) *(<u>Legal process</u>)* through (m) *(<u>Cessation of business</u>)* (inclusive) and the Borrower fails to appoint a new Approved Manager
 of the Vessel acceptable to the Lender such acceptance not to be unreasonably withheld within ten (10) days of becoming aware of
 the occurrence of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Environment</u>:
 any Relevant Party and/or the Approved Manager fails to comply with any Environmental Law or any Environmental Approval or the Vessel
 is involved in any incident which gives rise or which may give rise to any Environmental Claim, if in any such case, such non-compliance
 or incident or the consequences thereof could (in the reasonable opinion of the Lender) be expected to have a Material Adverse Effect
 on the business assets, operations, property or financial condition of the Borrower or any other Security Party or on the security

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>P&I</u>:
 the Borrower fails or omits to comply with any requirements of the protection and indemnity association or other insurer with which
 the Vessel is entered for insurance or insured against protection and indemnity risks (including oil pollution risks) to the effect
 that any cover in relation to the Vessel (including without limitation, liability for Environmental Claims arising in jurisdictions
 where the Vessel operates or trades) is or may be liable to cancellation, qualification or exclusion at any time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Shareholding-Change of control</u>: there is a breach of paragraphs (i) or (ii) of sub-Clause 8.2(s) (No change of control) without the prior written
 consent of the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Change of Management</u>: the Vessel ceases to be managed by the Approved Manager (for any reason other than the reason of a Total Loss
 or sale of the Vessel) without the approval of the Lender, which shall not be unreasonably withheld, and the Borrower fails to appoint
 another Approved Manager prior to the termination of the mandate with the previous relevant Approved Manager; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Deviation of Earnings</u>: any Earnings of the Vessel are not paid to the Operating Account for any reason whatsoever (other than with the
 Lender's prior written consent); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>ISM Code and ISPS Code</u>: (without prejudice to the generality of sub-Clause 9.1(c) *(<u>Breach of other obligations</u>)*) for
 any reason whatsoever the provisions of Clause 8.1(o) *(<u>Compliance with ISM Code</u>)* and (p) *(<u>Compliance with ISPS Code</u>)* are not complied with and the Vessel ceases to comply with the ISM Code or, as the case may be, the ISPS Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Sanctions:</u> (without prejudice to the generality of sub-Clause 9.1(c) *(<u>Breach of other obligations</u>*)) for any reason whatsoever
 the provisions of Clause 8.6 *(<u>Sanctions</u>)* and Clause 8.7 *(<u>Compliance with laws etc.</u>)* are not complied
 with.

**9.2** **Consequences of Default – Acceleration** 

The Lender may without prejudice to any other rights of the Lender (which will continue to be in force concurrently with the following), at any time after the happening of an Event of Default, which is continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by
 notice to the Borrower declare that the obligation of the Lender to make the Commitment (or any part thereof) available shall be
 terminated, whereupon the Commitment shall be reduced to zero forthwith; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 notice to the Borrower declare that the Loan and all interest accrued and all other sums payable under the Finance Documents have
 become due and payable, whereupon the same shall, immediately or in accordance with the terms of such notice, become due and payable
 without any further diligence, presentment, demand of payment, protest or notice or any other procedure from the Lender which are
 expressly waived by the Borrower; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) put
 into force and exercise all or any of the rights, powers and remedies possessed by the Lender under this Agreement and/or under any
 other Finance Document and/or as mortgagee of the Vessel, mortgagee, chargee or assignee or as the beneficiary of any other property
 right or any other security (as the case may be) of the assets charged or assigned to it under the Finance Documents or otherwise
 (whether at law, by virtue of any of the Finance Documents or otherwise).

**9.3** **Multiple notices; action without notice** 

The Lender may serve notices under paragraphs (a) and (b) of Clause 9.2 *(<u>Consequences of Default – Acceleration</u>)* simultaneously or on different dates and it may take any action referred to in that Clause if no such notice is served or simultaneously with or at any time after service of both or either of such notices, it being understood and agreed that the non-service of a notice in respect of an Event of Default hereunder, or under any of the Finance Documents (whether known to the Lender or not), shall not be construed to mean that the Event of Default shall cease to exist and bring about its lawful consequences.

**9.4** **Demand basis** 

If, pursuant to Clause 9.2(b), the Lender declares the Loan to be due and payable on demand, the Lender may by written notice to the Borrower (a) call for repayment of the Loan on such date as may be specified whereupon the Loan shall become due and payable on the date so specified together with all interest accrued and all other sums payable under this Agreement or (b) withdraw such declaration with effect from the date specified in such notice.

**9.5** **Proof of Default** 

It is agreed that (i) the non-payment of any sum of money in time will be proved conclusively by mere passage of time and (ii) the occurrence of this (non-payment) shall be proved conclusively by a mere written statement of the Lender (save for manifest error).

**9.6** **Exclusion of Lender 's liability** 

Neither the Lender nor any receiver or manager appointed by the Lender, shall have any liability to the Borrower or a Security Party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for

 or delay to exercise such a right or to enforce such a Security Interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 the Lender or a receiver or manager from liability for losses shown to have been caused by the wilful misconduct of the Lender's own officers and employees or (as the case may be) such receiver's or manager's own partners or employees.

**10.** **INDEMNITIES - EXPENSES – FEES** 

**10.1** **Indemnity** 

The Borrower shall on demand (and it is hereby expressly undertaken by the Borrower to) indemnify the Lender, without prejudice to any of the other rights of the Lender under any of the Finance Documents, against any loss (including, in the cases referred to in sub clauses (a) and (b) of this Clause, loss of the Applicable Margin and in every case, any Break Costs) or expense which the Lender sustains or incurs as a consequence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 default in payment by any of the Security Parties of any sum under any of the Finance Documents when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 occurrence of any Event of Default which is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 prepayment of the Loan or part thereof being made under Clauses 4.2 *(<u>Voluntary Prepayment</u>)* and 4.3 (*<u>Compulsory Prepayment in case of Total Loss or sale or refinancing of the Vessel</u>)*, 8.5(a) *(<u>Security shortfall</u>),* 12.1 (*<u>Unlawfulness</u>*)
 or 12.4 (*<u>Option to prepay</u>*) or any other repayment of the Loan or part thereof being made otherwise than on an Interest
 Payment Date relating to the part of the Loan prepaid or repaid; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Commitment not being advanced for any reason (excluding any default by the Lender and any reason mentioned in Clause 12.1 *(<u>Unlawfulness</u>)*)
 after the Drawdown Notice has been given, including, in any such case, but not limited to, any loss or expense sustained or incurred
 in maintaining or funding the Loan or any part thereof or in liquidating or re-employing deposits from third parties acquired to
 effect or maintain the Loan or any part thereof.

**10.2** **Expenses** 

The Borrower shall (and it is hereby expressly undertaken by the Borrower to) pay to the Lender on demand:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial and Amendment expenses</u>: all expenses (including reasonable legal, printing and out-of-pocket expenses) reasonably incurred by
 the Lender in connection with the negotiation, preparation and execution of this Agreement and the other Finance Documents and of
 any amendment or extension of or the granting of any waiver or consent under this Agreement and/or any of the Finance Documents and/or
 in connection with any proposal by the Borrower to constitute additional security pursuant to sub-Clause 8.5(a) *(<u>Security shortfall</u>)*,
 whether any such security shall in fact be constituted or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Enforcement expenses</u>: all expenses (including reasonable legal and out-of-pocket expenses) incurred by the Lender in contemplation of, or
 otherwise in connection with, the enforcement of, or preservation of any rights under, this Agreement and/or any of the other Finance
 Documents, or otherwise in respect of the moneys owing under this Agreement and/or any of the other Finance Documents or the contemplation
 or preparation of the above, whether they have been effected or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Legal costs</u>: the legal costs of the Lender's appointed lawyers, in respect of the preparation of this Agreement and the other
 Finance Documents as well as the legal costs of the foreign lawyers (if these are available) in respect of the registration of the
 Finance Documents or any search or opinion given to the Lender in respect of the Security Parties or the Vessel or the Finance Documents.
 The said legal costs shall be due and payable on the Drawdown Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other expenses</u>: any and all other Expenses.

**10.3** **Break Costs** 

If 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 Lender has or will, with effect from a specified date, incur Break Costs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Lender shall promptly notify the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Borrower shall, within five (5) Business Days of the Lender's demand, pay to the Lender the amount of such Break Costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Lender shall, as soon as reasonably practicable, following a request by the Borrower, provide a certificate confirming the amount
 of the 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 10.3, ***"Break Costs"*** means, in relation to a Payment the amount (if any) by which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 interest (excluding Applicable Margin) which the Lender, should have received in accordance with Clause 3 *(<u>Interest</u>)* 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 amount which the Lender, would be able to obtain by placing an amount equal to such Payment on deposit with a leading bank 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.

**10.4** **Stamp duty – Value Added Tax** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Borrower shall pay (if applicable) any and all stamp, registration and similar taxes or charges (including those payable by the Lender)
 imposed by governmental authorities in relation to this Agreement and any of the other Finance Documents, and shall indemnify the
 Lender against any and all liabilities with respect to, or resulting from delay or omission on the part of the Borrower to pay such
 stamp taxes or charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 fees and expenses payable pursuant to this Clause 10 shall be paid together with value added tax (if applicable) or any similar tax
 (if any) properly chargeable thereon. Any value added tax chargeable in respect of any services supplied by the Lender under this
 Agreement shall, on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid hereunder.

**10.5** **Environmental Indemnity** 

The Borrower shall indemnify the Lender on demand and hold the Lender harmless from and against all costs, expenses, payments, charges, losses, demands, liabilities, actions, proceedings (whether civil or criminal) penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be suffered, incurred or paid by, or made or asserted against the Lender at any time, whether before or after the repayment in full of principal and interest under this Agreement, relating to, or arising directly or indirectly in any manner or for any cause or reason out of an Environmental Claim made or asserted against the Lender if such Environmental Claim would not have been, or been capable of being, made or asserted against the Lender if it had not entered into any of the Finance Documents and/or exercised any of its rights, powers and discretions thereby conferred and/or performed any of its obligations thereunder and/or been involved in any of the transactions contemplated by the Finance Documents.

**10.6** **Currency indemnity** 

If any sum due from the Borrower under any of the Finance Documents or any order or judgement given or made in relation hereto has to be converted from the currency (the *"first currency"*) in which the same is payable under the relevant Finance Document or under such order or judgement into another currency (the *"second currency"*) for the purpose of (i) making or filing a claim or proof against the Borrower or any other Security Party, as the case may be or (ii) obtaining an order or judgement in any court or other tribunal or (iii) enforcing any order or judgement given or made in relation to any of the Finance Documents, the Borrower shall (and it is hereby expressly undertaken by the Borrower to) indemnify and hold harmless the Lender from and against any loss suffered as a result of any difference between (a) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Lender may in the ordinary course of business purchase the first currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgement, claim or proof. The term *"rate of exchange"* includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency.

**10.7** **Maintenance of the Indemnities** 

The indemnities contained in this Clause 10 shall apply irrespective of any indulgence granted to the Borrower or any other party from time to time and shall continue to be in full force and effect notwithstanding any payment in favour of the Lender and any sum due from the Borrower under this Clause 10 will be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under any one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto.

**10.8** **MII costs** 

The Borrower shall reimburse the Lender on demand for any and all costs incurred by the Lender (as conclusively certified by the Lender) in effecting and keeping effected a Mortgagee's Interest Insurance (herein, ***"MII"***), which the Lender may at any time effect on such terms, for an amount of 120% of the Loan and with such insurers as shall from time to time be determined by the Lender, <u>provided, however, that</u> the Lender shall in its absolute discretion appoint and instruct in respect of such MII policy the insurance brokers in respect of such Insurance and <u>provided, further, that</u> in the event that the Lender effects any such Insurance on the basis of any mortgagee's open cover, the Borrower shall pay on demand to the Lender its proportion of premium due in respect of the Vessel(s) for which such insurance cover has been effected by the Lender, provided always that the Lender has provided the Borrower with copies of the corresponding invoice from the MII insurers/their brokers and any certificate of the Lender in respect of any such premium due by the Borrower shall (save for manifest error) be conclusive and binding upon the Borrower.

**10.9** **Central Bank or European Central Bank reserve requirements indemnity** 

The Borrower shall on demand promptly indemnify the Lender against any documented cost incurred or loss suffered by the Lender as a result of its complying with the minimum reserve requirements of the European Central Bank and/or with respect to maintaining required reserves with the relevant national Central Bank to the extent that such compliance relates to the Commitment or deposits obtained by it to fund the whole or part of the Loan and to the extent such cost or loss is not recoverable by the Lender under Clause 12.2 *(<u>Increased cost</u>)*.

**10.10** **Communications Indemnity** 

It is hereby agreed in connection with communications that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Express
 authority is hereby given by the Borrower to the Lender to accept all tested or untested communications given by facsimile, electronic
 mail or otherwise, regarding any or all of the notices (as defined in Clause 16.4 *(<u>Meaning of "notice"</u>)* under this Agreement, subject to any restrictions imposed by the Lender relating to such notices including, without limitation (if
 so required by the Lender), the obligation to confirm such notices by letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrower shall recognise any and all of the said notices as legal, valid and binding, when these notices come from the fax number
 or electronic mail address mentioned in Clause 16.1 *(<u>Notices</u>)* or any other fax or electronic mail address usually used
 by it or the Approved Manager and are duly signed or in case of emails are duly sent by the person appearing to be sending such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Borrower hereby assumes full responsibility for the execution of the said notices, and promises and recognises that the Lender shall
 not be held responsible for any loss, liability or expense that may result from such notices, save in case of Lender's wilful
 misconduct. It is hereby undertaken by the Borrower to indemnify in full the Lender from and against all actions, proceedings, damages,
 costs, claims, demands, expenses and any and all direct and/or indirect losses which the Lender may suffer, incur or sustain by reason
 of the Lender following such notices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With
 regard to notices (as defined in Clause 16.4 *(<u>Meaning of "notice"</u>)* issued by electronic and/or mechanical
 processes (e.g. by facsimile or electronic mail) the following are applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Borrower hereby acknowledges and accepts the risks associated with the use of unsecured electronic mail communication including,
 without limitation, risk of delay, loss of data, confidentiality breach, forgery, falsification and malicious software. The Lender
 shall not be liable in any way for any loss or damage or any other disadvantage suffered by the Borrower resulting from such unsecured
 electronic mail communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If
 the Borrower or any other Security Party wishes to cease all electronic communication, it shall give written notice to the Lender
 accordingly after receipt of which notice the Parties shall cease all electronic communication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For
 as long as electronic communication is an accepted form of communication, the Parties shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) notify
 each other of any change to their respective addresses or any other such information supplied to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in
 case electronic communication is sent to recipients with the domain < *pyxistankers.com* >, the parties shall without undue
 delay inform each other if there are changes to the said domain or if electronic communication shall thereafter be sent to individual
 electronic mail addresses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 risks of misunderstandings and errors resulting from notices (as defined in Clause 16.4 *(<u>Meaning of "notice"</u>)* being given as mentioned above, are for the Borrower and the Lender will be indemnified in full pursuant to this Clause save
 in case of Lender's wilful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Lender shall have the right to ask the Borrower to furnish any information the Lender may require to establish the authority of any
 person purporting to act on behalf of the Borrower for these notices, but it is expressly agreed that there is no obligation for
 the Lender to do so. The Lender shall be fully protected in, and the Lender shall incur no liability to the Borrower for acting upon
 the said notices, which were believed by the Lender in good faith to have been given by the Borrower or by any of its authorised
 representative(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) It
 is undertaken by the Borrower to use its best endeavours to safeguard the function and the security of the electronic and mechanical
 appliance(s) such as fax(es), electronic mail(s) etc. The Borrower shall hold the Lender harmless and indemnified from all claims,
 losses, damages and expenses which the Lender may incur by reason of the failure of the Borrower to comply with the obligations under
 this Clause.

**10.11** **Fees** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Arrangement fee</u>: The Borrower shall pay to the Lender an arrangement fee (the  ***"Arrangement Fee"***) in the amount
 of Dollars Eighty five thousand (85,000) payable on the Drawdown Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Non-refundable</u>:
 The Arrangement Fee shall be non-refundable.

**10.12** **FATCA Deduction** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 shall not 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 a Finance Document to whom it is making the payment.

**10.13 FATCA status**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to Clause 10.12(c) below, each party shall, within ten (10) Business Days of a reasonable request by another party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) confirm
 to that other party whether it is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) a
 FATCA Exempt Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) not
 a FATCA Exempt Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) supply
 to that other party such forms, documentation and other information relating to its status under FATCA (including its applicable
 passthru percentage or other information required under the Treasury Regulations or other official guidance including intergovernmental
 agreements) as that other party reasonably requests for the purposes of that other party's compliance with FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 a party confirms to another party pursuant to Clause 10.12(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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Clause
 10.12(a)(i) above shall not oblige the Lender to do anything which would or might in its reasonable opinion constitute a breach of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 law or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 fiduciary duty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 duty of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 a party fails to confirm its status or to supply forms, documentation or other information requested in accordance with Clause 10.12(a)
 above (including, for the avoidance of doubt, where Clause 10.12(c) above applies), then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 that party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such party shall be treated for the purposes
 of the Finance Documents as if it is not a FATCA Exempt Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if
 that party failed to confirm its applicable passthru percentage then such party shall be treated for the purposes of the Finance
 Documents (and payments made thereunder) as if its applicable passthru percentage is 100%,

until (in each case) such time as the party in question provides the requested confirmation, forms, documentation or other information.

**11.** **SECURITY, APPLICATION, AND SET-OFF** 

**11.1** **Securities** 

As security for the due and punctual repayment of the Loan and payment of interest thereon as provided in this Agreement and of all other Outstanding Indebtedness, the Borrower shall ensure and procure that the following Finance Documents are duly executed and, where required, registered in favour of the Lender in form and substance satisfactory to the Lender at the time specified herein or otherwise as required by the Lender and ensure that such security consists, on the Drawdown Date in respect of the Loan, of the Finance Documents.

**11.2** **Maintenance of Securities** 

It is hereby undertaken by the Borrower that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing and/or due under this Agreement or under the other Finance Documents be valid and binding obligations of the respective Security Parties thereto and rights of the Lender enforceable in accordance with their respective terms and that they will, at the expense of the Borrower, execute, sign, perfect and do any and every such further assurance, document, act, omission or thing as in the opinion of the Lender may be necessary for perfecting the security contemplated or constituted by the Finance Documents.

**11.3** **Application of funds** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Order of application</u>: Except as any Finance Document may otherwise provide, any sums which are received or recovered by the Lender
 under or pursuant to or by virtue of any of the Finance Documents and expressed to be applicable in accordance with this Clause 11.3
 shall be applied by the Lender in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) FIRST:
 in or towards satisfaction of any amounts then due and payable under the Finance Documents in the following order and proportions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Firstly</u>,
 in or towards satisfaction of all amounts then due and payable to the Lender under the Finance Documents other than those amounts
 referred to at paragraphs b) and c) below (including, but without limitation, all amounts payable by the Borrower under Clauses 10 *(<u>Indemnities- Expenses-Fees</u>),* 5.1 *(<u>Payments – No set-off or counterclaims</u>)* or 5.3 *(<u>Gross-Up</u>*)
 of this Agreement or by the Borrower or any Security Party under any corresponding or similar provision in any other Finance Document);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Secondly</u>,
 in or towards payment of any default interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Thirdly</u>,
 in or towards payment of any arrears of interest (other than default interest) due in respect of the Loan or any part thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Fourthly</u>,
 in or towards repayment of the Loan (whether the same is due and payable or not);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SECOND:
 the surplus (if any) after the full and complete payment of the Outstanding Indebtedness shall be paid to the Borrower or to any
 other person entitled to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice of variation of order of application</u>: The Lender may, by notice to the Borrower and the Security Parties, provide, at its sole
 discretion, for a different order of application from that set out in Clause 11.3(a) *(<u>Order of application</u>)* either
 as regards a specified sum or sums or as regards sums in a specified category or categories, without affecting the obligations of
 the Borrower to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effect of variation notice</u>: The Lender may give notices under Clause 11.3(b) *(<u>Notice of variation of order of application)</u>* 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Insufficient balance</u>: For the avoidance of doubt, in the event that such balance is insufficient to pay in full the whole of the Outstanding
 Indebtedness, the Lender shall be entitled to collect the shortfall from the Borrower or any other person liable therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Appropriation rights overridden</u>: This Clause 11.3 and any notice which the Lender gives under Clause 11.3(b) *(<u>Notice of variation of order of application)</u>* shall override any right of appropriation possessed, and any appropriation made, by the Borrower or
 any other Security Party.

**11.4** **Set off** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Application of credit balances:</u> Express authority is hereby given by the Borrower to the Lender without prejudice to any of the rights of
 the Lender at law, contractually or otherwise, at any time after an Event of Default has occurred and is continuing, and without
 prior notice to the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 apply any credit balance standing upon any account of the Borrower with any branch of the Lender (including, without limitation,
 the Operating Account and in whatever currency in or towards satisfaction of any sum due to the Lender from the Borrower under this
 Agreement, the General Assignment and/or any of the other Finance Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the name of the Borrower and/or the Lender to do all such acts and execute all such documents as may be necessary or expedient to
 effect such application; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 combine and/or consolidate all or any accounts in the name of the Borrower with the Lender; and

for that purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) to
 break, or alter the maturity of, all or any part of a deposit of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) to
 convert or translate all or any part of a deposit or other credit balance into Dollars; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) to
 enter into any other transaction or make any entry with regard to the credit balance which the Lender considers appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Existing rights unaffected</u>: The Lender shall not be obliged to exercise any right given by this Clause; 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 the Lender
 is entitled (whether under the general law or any document). For all or any of the above purposes authority is hereby given to the
 Lender to purchase with the moneys standing to the credit of any such account or accounts such other currencies as may be necessary
 to effect such application. The Lender shall notify the Borrower forthwith upon the exercise of any right of set-off giving full
 details in relation thereto.

**12.** **UNLAWFULNESS, INCREASED COSTS AND BAIL-IN** 

**12.1** **Unlawfulness** 

If any change in, or introduction of, any law, regulation or regulatory requirement or any request of any central bank, monetary, regulatory or other authority or any order of any court renders it unlawful or contrary to any such regulation, requirement, request or order for the Lender to advance the Commitment or the relevant part thereof (as the case may be) or to maintain or fund the Loan, notice shall be given promptly by the Lender to the Borrower whereupon the Commitment shall be reduced to zero and the Borrower shall be obliged to prepay the Loan either (i) forthwith or (ii) on a future specified date not being earlier than the latest date permitted by the relevant law or regulation, together with accrued interest thereon to the date of prepayment and all other sums payable by the Borrower under this Agreement.

**12.2** **Increased Cost** 

If the result of any change in, or in the interpretation, implementation or application of, or the introduction of, any law or any regulation (whether or not having the force of law, but, if not having the force of law, with which the Lender or, as the case may be, its holding company habitually complies), including (without limitation) those relating to Taxation, capital adequacy, liquidity, reserve assets, cash ratio deposits and special deposits or other banking or monetary controls or requirements which affect the manner in which the Lender allocates capital resources to its obligations hereunder (including, without limitation, those resulting from the implementation or application of or compliance with the Basel II Accord or the Basel III Accord or any Basel II Regulation or the Basel III Accord or any Basel III Regulation or any subsequent accord, approach or regulation thereto) (collectively, ***"Capital Adequacy Law"***) or compliance by the Lender with any such Capital Adequacy Law, is to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase
 the cost to, or impose an additional cost on, the Lender or its holding company in making or keeping the Commitment available or
 maintaining or funding all or part of the Loan; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject
 the Lender to Taxes or change the basis of Taxation of the Lender with respect to any payment under any of the Finance Documents
 (other than Taxes or Taxation on the overall net income, profits or gains of the Lender imposed in the jurisdiction in which its
 principal or lending office under this Agreement is located); and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reduce
 the amount payable or the effective return to the Lender under any of the Finance Documents; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reduce
 the Lender's or its holding company rate of return on its overall capital by reason of a change in the manner in which it is
 required to allocate capital resources to the Lender's obligations under any of the Finance Document; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) require
 the Lender or its holding company to make a payment or forgo a return on or calculated by references to any amount received or receivable
 by it under any of the Finance Documents is required; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) require
 the Lender or its holding company to incur or sustain a loss (including a loss of future potential profits) by reason of being obliged
 to deduct all or part of the Commitment or the Loan from its capital for regulatory purposes,

then and in each case (subject to Clause 12.5 *(<u>Exception</u>)*):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Lender shall notify the Borrower in writing of such event promptly upon its becoming aware of the same; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Borrower shall on demand pay to the Lender the amount which the Lender specifies (in a certificate and supporting documents setting
 forth and evidencing the basis of the computation of such amount but not including any matters which the Lender or its holding company
 regards as confidential) is required to compensate the Lender and/or (as the case may be) its holding company for such liability
 to Taxes, cost, reduction, payment, foregone return or loss whatsoever.

For the purposes of this Clause 12 *"holding company"* means the company or entity (if any) within the consolidated supervision of which the Lender is included.

**12.3** **Claim for increased cost** 

The Lender will promptly notify in writing the Borrower of any intention to claim indemnification pursuant to Clause 12.2 *(<u>Increased Cost</u>)* and such notification will be a conclusive and full evidence binding on the Borrower as to the amount of any increased cost or reduction and the method of calculating the same and the Borrower shall be allowed to rebut such evidence by any means of evidence save for witness. A claim under Clause 12.2 *(<u>Increased Cost</u>)* may be made at any time and must be discharged by the Borrower within (10) days of demand. It shall not be a defence to a claim by the Lender under this Clause 12.3 that any increased cost or reduction could have been avoided by the Lender. Any amount due from the Borrower under Clause 12.2 *(<u>Increased Cost</u>)* shall be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under or in respect of this Agreement.

**12.4** **Option to prepay** 

If any additional amounts are required to be paid by the Borrower to the Lender by virtue of Clause 12.2 *(<u>Increased Cost</u>),* the Borrower shall be entitled, on giving the Lender not less than five (5) days prior notice in writing, to prepay (without premium or penalty) the Loan and accrued interest thereon, together with all other Outstanding Indebtedness, on the next Repayment Date. Any such notice, once given, shall be irrevocable.

**12.5** **Exception** 

Nothing in Clause 12.2 *(<u>Increased Cost</u>)* shall entitle the Lender to receive any amount in respect of compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss to the extent that the same is subject of an additional payment under Clause 5.3 *(<u>Gross-up</u>)*.

**12.9** **Contractual recognition of bail-in** 

Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 Bail-In Action in relation to any such liability, including (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 cancellation of any such liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**13.** **OPERATING ACCOUNT** 

**13.1 General**

The Borrower undertakes with the Lender that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 or before the Drawdown Date open the Operating Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) procure
 that all moneys payable to the Borrower in respect of the Earnings of the Vessel shall, unless and until the Lender directs to the
 contrary pursuant to the General Assignment, be paid to the Operating Account, free from Security Interests and rights of set off

 as provided in Clause 13.2 *(<u>Application of Earnings</u>)*,

<u>provided always that</u> any moneys received in a currency other than Dollars, may be converted in Dollars by the Lender at the Lender's spot rate of exchange on the day of conversion.

**13.2** **Application of Earnings** 

Subject to the terms and conditions of the Accounts Pledge Agreement no monies shall be withdrawn from the Operating Account save as hereinafter provided. Subject to no Event of Default having occurred and being continuing, all monies paid to the Operating Account (whether being Earnings or not) after discharging the costs (if any) incurred by the Lender, in collecting such monies, shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>firstly</u>:
 in payment of any arrears of interest and principal of the Loan due and payable hereunder and any and all other sums whatsoever which
 at each relevant time are due and payable to the Lender hereunder (such sums to be paid in such order as the Lender may in its sole
 discretion elect);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>secondly</u>:
 in payment of the Operating Expenses of the Vessel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>thirdly</u>:
 any credit balance shall be, subject to the provisions of this Agreement (including dividends restriction, as provided in Clause
 8.2 (m) *(<u>No dividends or distribution</u>*)) and the Account Pledge Agreement, available to the Borrower to be used for
 any purpose not inconsistent with the Borrower's other obligations under this Agreement.

**13.3** **Interest** 

Any amounts for the time being standing to the credit of the Operating Account shall bear interest at the rate from time to time offered by the Lender to its customers for Dollar deposits of similar amounts and for periods similar to those for which such amounts are likely to remain standing to the credit of the Operating Account. Such interest shall, <u>provided that</u> (a) the foregoing provisions of this Clause 13 shall have been complied with and (b) no Event of Default shall have occurred and is continuing, be released to the Borrower.

**13.4** **Drawings from Operating Account** 

After the occurrence of an Event of Default which is continuing the Lender shall not permit the Borrower to make any drawings from the Operating Account.

**13.5** **Sufficient monies** 

The Borrower hereby warrants that sufficient monies to meet the next Repayment Instalment plus interest thereon will be accumulated each and every month in the Operating Account.

**13.6** **Obligations unaffected** 

The provisions of this Clause 13 do not affect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 liability and absolute obligation of the Borrower to repay the Loan and pay interest thereon on the due dates as provided in Clause
 3 *(<u>Interest</u>)* and Clause 4 *(<u>Repayment-Prepayment</u>)* nor shall they constitute or be construed as constituting
 a manner of postponement thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
 other liability or obligation of the Borrower or any other Security Party under any Finance Document.

**13.7** **Relocation of Accounts** 

The Borrower, at its own costs and expenses, undertakes with the Lender to comply with or cause to be complied with any written requirement of the Lender from time to time as to the location or re-location of the Accounts (or any of them) and will from time to time enter into such documentation as the Lender may require in order to create or maintain a Security Interest in any of the Accounts.

**13.8** **Authorisation** 

The Lender shall be entitled (but not obliged) at any time, and to this respect the Lender is hereby authorised by the Borrower from time to time to debit the Operating Account, with notice to the Borrower, in order to discharge any amount due and payable to the Lender under the terms of this Agreement and the Security Documents or otherwise howsoever in connection with the Loan, including, without limitation, any payment of which the Lender has become entitled to demand under Clause 10 *(<u>Indemnities - Expenses – Fees</u>)*. The Lender shall notify the Borrower following any such discharge of any amount due and payable to the Lender giving the necessary details in relation thereto.

**13.9** **Set-off** 

Upon the occurrence of an Event of Default that is continuing or at any time thereafter (whether or not notice of default has been given to the Borrower) when an Event of Default continues the Lender shall be entitled, but not bound, to set off and apply all sums standing to the credit of the Operating Account and accrued interest (if any) without notice to the Borrower in the manner specified in Clause 11.3 *(<u>Application of funds</u>)* (and express and irrevocable authority is hereby given by the Borrower to the Lender so to debit the Operating Account accordingly by the same and the Borrower shall be released to the extent of such set off and application).

**13.10** **No Security Interests** 

The Borrower hereby covenants with the Lender that the Operating Account and any moneys therein shall not be charged, assigned, transferred or pledged nor shall there be granted by the Borrower or suffered to arise any third party rights over or against the whole or any part of the Operating Account other than in favour of the Lender as promised herein and in the General Assignment.

**13.11** **Operation of Accounts** 

Each of the Accounts shall be operated by the Borrower or the relevant Cash Collateral Account Holder (as the case may be) to the degree permitted by this Agreement and the General Assignment and the Accounts Pledge Agreement or the Cash Collateral Account Pledge Agreement (as the case may be) in accordance with the Lender's usual terms and conditions (full knowledge of which the Borrower hereby acknowledges) and subject to the Lender's usual charges levied on such accounts and/or transactions conducted on such accounts (as from time to time notified by the Lender to the Borrower).

**13.12** **Application after occurrence of Event of Default** 

After the occurrence of an Event of Default the Lender shall be entitled, but not bound, to set off and apply all sums standing to the credit of the Operating Account and accrued interest (if any) in accordance with the provisions of Clause 11.3 *(<u>Application of funds</u>).*

 

**13.13** **Release** 

Upon payment in full of all principal, interest and all other amounts due to the Lender under the terms of this Agreement and the other Finance Documents, any balance then standing to the credit of the Accounts (or any of them) shall be released and paid to the Borrower or to whomsoever else may be entitled to receive such balance.

**14.** **ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE** 

**14.1** **Binding Effect** 

This Agreement shall be binding upon and inure to the benefit of the Lender and the Borrower and their respective successors and permitted assigns.

**14.2** **No Assignment by the Borrower and other Security Parties** 

Neither the Borrower nor any other Security Parties may assign or transfer any of its rights and/or obligations under this Agreement or any of the other Finance Documents or any documents executed pursuant to this Agreement and/or the other Finance Documents.

**14.3** **Assignment by the Lender** 

The Lender may at any time, (without the consent of, or consultation with, the Borrower and the other Security Parties but with 30-days prior notice to the Borrower) cause all or any part of its rights, benefits and/or obligations under this Agreement and the other Finance Documents to be assigned or transferred to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) another
 branch, Subsidiary or Affiliate of, or company controlled by, the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) another
 first class international bank or financial institution, insurer, social security fund, pension fund, capital investment company,
 financial intermediary or special purpose vehicle associated to any of them or any other person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 trust corporation, fund or other person which regularly engaged in or established for the purpose of making, purchasing or investing
 in loans, securities or other financial assets of which are managed or serviced by the Lender

(in each case an *"**Assignee**"* or a *"**Transferee**"*),

<u>provided that</u> the Assignee or Transferee, shall deliver to the Lender such undertaking as the Lender may approve, whereby it becomes bound by the terms of this Agreement and agrees to perform all or, as the case may be, part of the Lender's obligations under this Agreement; and

<u>provided further that</u> the liabilities of the Borrower under this Agreement and any other Finance Document shall not be increased as a result of any such assignment or transfer and that in the event that the Borrower' liabilities (actual or contingent) are increased, the Borrower shall not be liable for any such excess.

**14.4** **Participation** 

The Lender may at any time sub-participate all or any part of its rights, benefits and/or obligations under this Agreement and the other Finance Documents without the consent of, or consultation with or notice to the Borrower and the other Security Parties.

**14.5** **Cost** 

Any cost of such assignment or transfer or granting sub-participation shall be for the account of the Lender and/or the Assignee, Transferee or sub-participant unless any such assignment, transfer or sub-participation is undertaken at the request of the Borrower in which case any cost arising therefrom shall be for the account of the Borrower.

**14.6** **Documenting assignments and transfers** 

If the Lender assigns, transfers or in any other manner grants participation in respect of all or any part of its rights or benefits or transfers all or any of its obligations as provided in this Clause 14.6 the Borrower undertakes, immediately on being requested to do so by the Lender, to enter at the expense of the Lender into and procure that each Security Party enters into such documents as may be necessary to transfer to the Assignee, Transferee or participant all or the relevant part of the interest of the Lender in the Finance Documents and all relevant references in this Agreement to the Lender shall thereafter be construed as a reference to the Lender and/or Assignee, Transferee or participant of the Lender to the extent of their respective interests and, in the case of a transfer of all or part of the obligations of the Lender, the Borrower shall thereafter look only to the Assignee, Transferee or participant in respect of that proportion of the obligations of the Lender under this Agreement assumed by such Assignee, Transferee or participant. Subject to the provisions of Clause 14.3 *(<u>Assignment by the Lender</u>)*, the Borrower hereby expressly consents to any subsequent transfer of the rights and obligations of the Lender and undertakes that it shall join in and execute such supplemental or substitute agreements as may be necessary to enable the Lender to assign and/or transfer and/or grant participation in respect of its rights and obligations to another branch or to one or more banks or financial institutions in a syndicate or otherwise. The cost of any such assignment shall be borne by the Lender and/or the relevant Assignee or Transferee.

**14.7** **Disclosure of information** 

The Lender may without the consent of, or consultation with or notice to the Borrower and the other Security Parties,

disclose to a prospective assignee, substitute or transferee in relation to this Agreement such information about the Borrower as the Lender shall consider appropriate if the Lender first procures that the relevant prospective assignee, substitute or transferee (such person together with any prospective assignee, substitute or transferee being hereinafter described as the ***"Prospective Assignee"***) shall undertake in to the Lender to keep secret and confidential and, without the consent of the Borrower, not disclose to any third party any of the information, reports or documents supplied by the Lender <u>provided, however, that</u> the Prospective Assignee shall be entitled to disclose such information, reports or documents in the following situations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in
 relation to any proceedings arising out of this Agreement or the other Finance Documents to the extent considered necessary by the
 Prospective Assignee to protect its interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pursuant
 to a court order relating to discovery or otherwise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) pursuant
 to any law or regulation or to any fiscal, monetary, tax, governmental or other competent authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 its auditors, legal or other professional advisers.

In addition the Prospective Assignee shall be entitled to disclose or use any such information, reports or documents if the information contained therein shall have emanated in conditions free from confidentiality, bona fide from some person other than the Lender or the Borrower.

**14.8** **Changes in constitution or reorganisation of the Lender** 

For the avoidance of doubt and without prejudice to the provisions of Clause 14.1 *(<u>Binding Effect</u>)*, this Agreement shall remain binding on the Borrower and the other Security Parties notwithstanding any change in the constitution of the Lender or its absorption in, or amalgamation with, or the acquisition of all or part of its undertaking or assets by, any other person, or any reconstruction or reorganisation of any kind, to the intent that this Agreement shall remain valid and effective in all respects in favour of any Assignee, Transferee or other successor in title of the Lender in the same manner as if such Assignee, Transferee or other successor in title had been named in this Agreement as a party instead of, or in addition to, the Lender.

**14.9** **Securitisation** 

The Lender may include all or any part of the Loan in a securitisation (or similar transaction) without the consent of, or consultation with, but with notice to the Borrower. The Borrower will assist the Lender as necessary to achieve a successful securitisation (or similar transaction) <u>provided that</u> the Borrower shall not be required to bear any third party costs related to any such securitisation (or similar transaction) and that such securitisation (or similar transaction) shall not result in an increase of the obligations of the Borrower and/or any other Security Parties under this Agreement and the other Security Documents and need only provide any such information which any third parties may reasonably require.

**14.10** **Lending Office** 

The Lender shall lend through its office at the address specified in the preamble of this Agreement or through any other office of the Lender selected from time to time by it through which the Lender wishes to lend for the purposes of this Agreement. If the office through which the Lender is lending is changed pursuant to this Clause 14.10, the Lender shall notify the Borrower promptly of such change and upon notification of any such transfer, the word *"Lender"* in this Agreement and in the other Finance Documents shall mean the Lender, acting through such branch or branches and the terms and provisions of this Agreement and of the other Finance Documents shall be construed accordingly.

**15.** **MISCELLANEOUS** 

**15.1** **Time of essence** 

Time shall be of the essence of this Agreement.

**15.2** **Cumulative Remedies** 

The rights and remedies of the Lender contained in this Agreement and the other Finance Documents are cumulative and not neither exclusive of each other nor of any other rights or remedies conferred by law.

**15.3** **No implied waivers** 

No failure, delay or omission by the Lender to exercise any right, remedy or power vested in the Lender under this Agreement and/or the other Finance Documents or by law shall impair such right or power, or be construed as a waiver of, or as an acquiescence in any default by the Borrower, nor shall any single or partial exercise by the Lender of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. In the event of the Lender on any occasion agreeing to waive any such right, remedy or power, or consenting to any departure from the strict application of the provisions of this Agreement or of any other Finance Document, such waiver shall not in any way prejudice or affect the powers conferred upon the Lender under this Agreement and the other Finance Documents or the right of the Lender thereafter to act strictly in accordance with the terms of this Agreement and the other Finance Documents. No modification or waiver by the Lender of any provision of this Agreement or of any of the other Finance Documents nor any consent by the Lender to any departure therefrom by any Security Party shall be effective unless the same shall be in writing and then shall only be effective in the specific case and for the specific purpose for which given. No notice to or demand on any such party in any such case shall entitle such party to any other or further notice or demand in similar or other circumstances.

**15.4** **Integration of Terms** 

This Agreement contains the entire agreement of the parties and its provisions supersede the provisions of the Commitment Letter (save for the provisions thereof which relate to fees) any and all other prior correspondence and oral negotiation by the parties in respect of the matters regulated by this Agreement.

**15.5** **No modification, waiver etc. unless in writing** 

No modification or waiver by the Lender of any provision of this Agreement or of any of the other Finance Documents nor any consent by the Lender to any departure therefrom by any Security Party shall be effective unless the same shall be in writing and then shall only be effective in the specific case and for the specific purpose for which given. No notice to or demand on any such party in any such case shall entitle such party to any other or further notice or demand in similar or other circumstances.

**15.6** **Invalidity of Terms** 

In the event of any provision contained in one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto being invalid, illegal or unenforceable in any respect under any applicable law in any jurisdiction whatsoever, such provision shall be ineffective as to that jurisdiction only without affecting the remaining provisions hereof or thereof. If, however, this event becomes known to the Lender prior to the drawdown of the Commitment or of any part thereof the Lender shall be entitled to refuse drawdown until this discrepancy is remedied. In case that the invalidity of a part results in the invalidity of the whole Agreement, it is hereby agreed that there will exist a separate obligation of the Borrower for the prompt payment to the Lender of all the Outstanding Indebtedness. Where, however, the provisions of any such applicable law may be waived, they are hereby waived by the parties hereto to the full extent permitted by the law to the intent that this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto shall be deemed to be valid binding and enforceable in accordance with their respective terms.

**15.7** **Language and genuineness of documents** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Language</u>:
 All certificates, instruments and other documents to be delivered under or supplied in connection with this Agreement or any of the
 other Finance Documents shall be in the Greek or the English language (or such other language as the Lender shall agree) or shall
 be accompanied by a certified Greek translation upon which the Lender shall be entitled to rely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Certification of documents</u>: Any copies of documents delivered to the Lender shall be duly certified as true, complete and accurate copies by
 appropriate authorities or legal counsel practicing in Greece or otherwise as will be acceptable to the Lender at the sole discretion
 of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certification of signature</u>: Signatures on Board or shareholder resolutions, Secretary's certificates and any other documents are, at
 the discretion of the Lender, to be verified for their genuineness by appropriate Consul or other competent authority.

**15.8** **Recourse to other security** 

The Lender shall not be obliged to make any claim or demand or to resort to any Finance Document or other means of payment now or hereafter held by or available to it for enforcing this Agreement or any of the Finance Documents against the Security Parties (or any of them) or any other person liable and no action taken or omitted by the Lender in connection with any such Finance Document or other means of payment will discharge, reduce, prejudice or affect the liability of any Security Party under this Agreement and the other Finance Documents to which it is, or is to be, a party.

**15.9** **Further assurances** 

The Borrower undertakes that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing under any of the Finance Documents be valid and binding obligations of the respective parties thereto and enforceable in accordance with their respective terms and that it will, at its expense, execute, sign, perfect and do and (if required) register, and will procure the execution, signing, perfecting, doing and (if required) registering by each of the other Security Parties of, any and every such further assurance, document, act or thing as in the reasonable opinion of the Lender may be necessary or desirable for perfecting the security contemplated or constituted by the Finance Documents.

**15.10** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 of the parties hereto agrees and undertakes to keep confidential any documentation and any confidential information concerning the
 business, affairs, directors or employees of the other which comes into its possession in connection with this Agreement and not
 to use any such documentation, information for any purpose other than for which it was provided.

Notwithstanding the foregoing, compliance of the Borrower and/or of the Corporate Guarantor with their reporting and filing requirements, relating to the transactions and matters contemplated by this Agreement and the other Finance Documents, to governmental or regulatory agencies and authorities, including, but not limited to, the Securities and Exchange Commission of the United States of America, shall not constitute a breach of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Borrower acknowledges and accepts that the Lender may be required by law, regulation or regulatory requirement or any request of
 any central bank or any court order, to disclose information and deliver documentation relating to the Borrower and the transactions
 and matters in relation to this Agreement and/or the other Finance Documents to governmental or regulatory agencies and authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Borrower acknowledges and accepts that in case of occurrence of any of the Events of Default the Lender may disclose information
 and deliver documentation relating to the Borrower and the transactions and matters in relation to this Agreement and/or the other
 Finance Documents to third parties to the extent that this is necessary for the enforcement or the contemplation of enforcement of
 the Lender's rights or for any other purpose for which in the opinion of the Lender, such disclosure would be useful or appropriate
 for the interests of the Lender or otherwise and the Borrower expressly authorises any such disclosure and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Borrower acknowledges and accepts that the Lender may be prohibited from disclosing information to the Borrower by reason of law
 or duties of confidentiality owed or to be owed to other persons.

**15.11** **Process of personal data** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Process of personal data</u>: The Borrower hereby confirms that it has been informed that its personal data and/or the personal data of its
 director(s), officer(s) and legal representative(s) (together the *"personal data*") contained in this Agreement
 or the personal data that have been or will be lawfully received by the Lender in relation to this Agreement and the Security Documents
 will be included at the personal data database maintained by the Lender as processing agent *(Υπεύθυνη Επεξεργασίας)* and will be processed by the Lender for the
 purpose of properly serving, supporting and monitoring their current business relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Process of personal data to Teiresias</u>: The Borrower hereby expressly gives its consent to the communication for process in the meaning
 of law 2472/97 by the Lender of its personal data contained in this Agreement, the Security Documents, in the Operating Account for
 onwards communication thereof to an inter-banking database record called *"Teiresias"* kept and solely used by banks
 and financial institutions. The Borrower is entitled at any relevant time throughout the Security Period to revoke its consent given
 hereunder by written notice addressed to the Lender and the Registrar of *"Teiresias A.E."* at 2, Alamanas street,
 15125 Maroussi, Athens, Greece.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Duration of the process</u>: The personal data process shall survive the termination of this Agreement for such period as it is required by
 the applicable law.

**15.12** **Process Agent for Greek Proceedings** 

Mrs. Alexandra Tatagia, an Attorney-at-Law, presently of 61-65 Filonos Street, Piraeus, Greece (hereinafter called the ***"Process Agent for Greek Proceedings"***) is hereby appointed by the Borrower as agent to accept service, upon whom any judicial process in respect of proceedings in Greece may be served and any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial announcement of claim, notice, request, demand or other communication under this Agreement or any of the Finance Documents. In the event that the Process Agent for Greek Proceedings (or any substitute process agent notified to the Lender in accordance with the foregoing) cannot be found at the address specified above (or, as the case may be, notified to the Lender), which will be conclusively proved by a deed of a process server to the effect that the Process Agent for Greek Proceedings was not found at such address, any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial announcement of claim or other communication to be sent to any Security Party may be validly served/notified in accordance with the relevant provisions of the Hellenic Code on Civil Procedure.

**16.** **NOTICES AND COMMUNICATIONS** 

**16.1** **Notices** 

Every notice under or in connection with this Agreement or any other Finance Document shall be given by letter, electronic mail or fax; and references in the Finance Documents to written notices, notices in writing and notices signed by particular persons shall be construed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) every
 such notice in the case of a letter shall be in writing delivered personally or be first-class prepaid letter, or shall be served
 through a process server or subject to Clause 10.9 *(<u>Communications Indemnity</u>)* by fax or electronic mail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 deemed to have been received, subject as otherwise provided in this Agreement or the relevant Finance Document, in the case of a
 letter, when delivered personally or five (5) days after it has been put in to the post and, in the case of a facsimile transmission
 or electronic mail or other means of telecommunication in permanent written form, at the time of despatch (<u>provided that</u> if
 the date of despatch is not a business day in the country of the addressee or if the time of despatch is after the close of business
 in the country of the addressee it shall be deemed to have been received at the opening of business on the next such business day);
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be
 sent by letter, electronic mail or fax:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 to be sent to any Security Party, to:

c/o PYXIS MARITIME CORP. ,

59 K. Karamanli Street,

Maroussi 15125, Greece

Fax: +30 210 6545467

Attention: Mr. Konstantinos Lytras

E-mail: '<u>klytras@pyxistankers.com</u>' and '<u>fin@pyxis.gr</u>'<u> </u>and

"<u>hwilliams@pyxistankers.com</u>

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 the case of the Lender at:

ALPHA BANK S.A.,

93 Akti Miaouli, Piraeus, Greece,

Fax No. +30 210 42 90 268

Attention: The Manager

E-mail: shippingdivision@alpha.gr

or to such other person, address or fax number or electronic mail address as is notified by the relevant Security Party or the Lender (as the case may be) to the other parties to this Agreement and, in the case of any such change of address or fax number or electronic mail address notified to the Lender, the same shall not become effective until notice of such change is actually received by the Lender and a copy of the notice of such change is signed by the Lender.

**16.2** **Illegible notices** 

Clause 16.1 *(<u>Notices</u>)* does 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.3** **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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

**16.4** **Meaning of "notice"** 

In this Clause 16, ***"notice"*** includes any demand, consent, authorisation, approval, instruction, waiver or other communication.

**17.** **LAW AND JURISDICTION** 

**17.1** **Governing Law** 

This Agreement and any non-contractual obligations connected with it shall be governed by and construed in accordance with English Law.

**17.2** **Jurisdiction** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement or any non-contractual
 obligations connected with it (including a dispute regarding the existence, validity or termination of this Agreement and including
 claims arising out of tort or delict) (a  ***"Dispute"***). The Borrower irrevocably and unconditionally submits
 to the jurisdiction of such courts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party
 will argue to the contrary and waives any objections to the inconvenience of England as a forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This
 Clause 17.2 is for the benefit of the Lender only. As a result, the Lender shall not be prevented from taking proceedings relating
 to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Lender may take concurrent proceedings in any
 number of jurisdictions.

**17.3** **Process Agent for English Proceedings** 

Without prejudice to any other mode of service allowed under any relevant law the Borrower irrevocably designates, appoints Messrs. ATLAS MARITIME SERVICES LIMITED, at its registered office for the time being at Enterprise House, 113-115 George Lane, E18 1AB, London, England (hereinafter called the *"**Process Agent for English Proceedings**"*), to receive for it and on its behalf, service of process issued out of the English courts in relation to any proceedings before the English courts in connection with any Finance Document, <u>provided, however, that</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Borrower hereby agrees and undertakes to maintain a Process Agent for English Proceedings throughout the Security Period and hereby
 agrees that in the event that if any Process Agent for English Proceedings is unable for any reason to act as agent for service of
 process, the Borrower must immediately (and in any event within fifteen (15) days of such event taking place) appoint another agent
 on terms acceptable to the Lender. Failing this, the Lender may appoint for this purpose a substitute Process Agent for English Proceedings
 and the Lender is hereby irrevocably authorised to effect such appointment on Borrower **'** s behalf. The appointment of
 such Process

Agent for English Proceedings shall be valid and binding from the date notice of such appointment is given by the Lender to the Borrower in accordance with Clause 16.1 *(<u>Notices</u>)*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Borrower hereby agrees that failure by a Process Agent for English Proceedings to notify the Borrower of the process will not invalidate
 the proceedings concerned.

17.4 **Proceedings in any other country** 

If it is decided by the Lender that any such proceedings should be commenced in any other country, then any objections as to the jurisdiction or any claim as to the inconvenience of the forum is hereby waived by the Borrower and it is agreed and undertaken by the Borrower to instruct lawyers in that country to accept service of legal process and not to contest the validity of such proceedings as far as the jurisdiction of the court or courts involved is concerned and the Borrower agrees that any judgment or order obtained in an English court shall be conclusive and binding on the Borrower and shall be enforceable without review in the courts of any other jurisdiction.

17.5 **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.

17.6 **Meaning of "proceedings"** 

In this Clause 17 **"***proceedings***"** means proceedings of any kind, including an application for a provisional or protective measure.

*[Intentionally left blank]*

**<u>EXECUTION PAGE</u>**

**IN WITNESS WHEREOF** the parties hereto have caused this Agreement to be duly executed on the date stated at the beginning of this Agreement.

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. Ioannis Chalkias) |  |
| for and on behalf of) |  |
| **ELEVENTHONE CORP.,**) |  |
| of the Marshall Islands,) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| Witness: | |
| Name: | *Alexandra Pagoni* |
| Address: | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| Occupation: | *.t Attorney-at-Law* |

---

 

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. Konstantinos Flokos and) |  |
| Mrs. Evangelia Makri) | Attorney-in-fact |
| for and on behalf of) |  |
| **ALPHA BANK S.A.,**) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| Witness: | |
| Name: | *Alexandra Pagoni* |
| Address: | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| Occupation: | *t. Attorney-at-Law* |

---

**<u>SCHEDULE 1</u>**

**FORM OF DRAWDOWN NOTICE**

(referred to in Clause 2.2)

---

| | |
|:---|:---|
| To: | **ALPHA BANK S.A.** |

---

93 Akti Miaouli,

Piraeus, Greece

(the ***"Lender"***)

[●] December, 2025

Re: US$18,600,000 Loan Agreement dated [●] December, 2025 made between (A) **ELEVENTHONE CORP.** (the ***"Borrower"***) and (B) the Lender (the ***"Loan Agreement"***).

**1.** We
 refer to the Loan Agreement and hereby give you notice that we wish to draw the Commitment as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Loan</u>:
 the full amount of the Commitment in the amount of Eighteen million six hundred thousand Dollars ($18,600,000);

(b) <u>Drawdown Date:</u> [●] December, 2025;

(c) <u>Duration of first Interest Period</u>: duration of the first Interest Period in respect of the Loan shall be [●] months; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment instructions</u>: [ *The funds to be credited into the Operating Account for application for the purposes set out in Clause 1.1 (<u>Amount and purpose</u>) of the Loan Agreement* ].

**2.** We
 confirm, represent and warrant that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no
 event or circumstance has occurred and is continuing which constitutes a Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 representations and warranties contained in Clause 6 *(<u>Representations and warranties</u>)* of the Loan Agreement and the
 representations and warranties contained in each of the other Finance Documents would remain true and not misleading if repeated
 on the date of this Drawdown Notice with reference to the circumstances now existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 borrowing to be effected by the drawing down of the Commitment will be within our corporate powers, has been validly authorised by
 appropriate corporate action and will not cause any limit on our borrowings (whether imposed by statute, regulation, agreement or
 otherwise) to be exceeded; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 the best of our knowledge and belief there has been no Material Adverse Change in our financial position or in the consolidated financial
 position of ourselves and the other Security Parties from that described by us to the Lender in the negotiation of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** This
 Drawdown Notice cannot be revoked without the prior consent of the Lender.

Words and expressions defined in the Loan Agreement shall have the same meanings when used herein.

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. [....]) |  |
| for and on behalf of) |  |
| the Borrower) |  |
| **ELEVENTHONE CORP.,**) |  |
| of the Marshall Islands,) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| Witness: | |
| Name: |  |
| Address: | *13 Defteras Merarchias* |
|  | *Piraeus, Greece* |
| Occupation: | *Attorney-at-Law* |

---

 

**<u>Schedule 2</u>**

**Form of Insurance Letter**

---

| | |
|:---|:---|
| To: | ***[P&I Club]*** |

---

[●]

[●]

---

| | |
|:---|:---|
| From: | **ELEVENTHONE CORP.** |

---

Trust Company Complex,

Ajeltake Road, Ajeltake Island,

Majuro, Marshall Islands MH 96960

[●] 20[●]

Dear Sirs

**m.v. "PYXIS LAMDA"** (the ***"Vessel"***)

We are obtaining loan finance from **ALPHA BANK S.A.** (the ***"Lender"***) secured (*inter alia*) by a first ship mortgage over the Vessel. The Vessel's insurances will also be assigned to the Lender.

You are hereby authorised to send a copy of the Certificate of Entry for the Vessel to the Lender, c/o their lawyers, namely, THEO V. SIOUFAS & CO. LAW OFFICES, of 13 Defteras Merarchias Street, 185 35 Piraeus, Greece. Further, you are also irrevocably authorised to provide the Lender from time to time with any other information whatsoever which they may require relating to the entry of the Vessel in the association.

This letter is governed by, and shall be construed in accordance with, English law.

---

| |
|:---|
| For and on behalf of |
| **ELEVENTHONE CORP.** |

---

## Exhibit 4.24

**Exhibit 4.24**

**<u>Private & confidential</u>**

<u>Dated: 26<sup>th</sup> January, 2026</u>

**TENTHONE CORP.**

(as Borrower)

- and -

**PIRAEUS BANK S.A.**

(as Lender)

**FIRST SUPPLEMENTAL AGREEMENT**

in relation to a Loan Agreement dated 10<sup>th</sup> March, 2023

for a loan facility of (originally) US $15,500,000

![](ex4-24_001.jpg)

<u>**TABLE OF CONTENTS**</u>

---

| | | |
|:---|:---|:---|
| <u>CLAUSE</u> | <u>HEADINGS</u> | <u>PAGE</u> |
| 1. | DEFINITIONS | 2 |
| 2. | REPRESENTATIONS AND WARRANTIES | 3 |
| 3. | AGREEMENT OF THE LENDER | 4 |
| 4. | CONDITIONS | 4 |
| 5. | VARIATIONS TO THE PRINCIPAL AGREEMENT | 5 |
| 6. | CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS | 7 |
| 7. | ENTIRE AGREEMENT AND AMENDMENT | 7 |
| 8. | FEES AND EXPENSES | 8 |
| 9. | MISCELLANEOUS | 8 |
| 10. | LAW AND JURISDICTION | 8 |

---

**THIS SUPPLEMENTAL AGREEMENT** *(**"this Supplemental Agreement"**)* made this 26<sup>th</sup> day of January, 2026

B E T W E E N:

(1) **PIRAEUS BANK S.A.**, a banking société anonyme incorporated in and pursuant to the laws of the Hellenic Republic having its
 registered office at 4, Amerikis Street, Athens, Greece, with General Commercial Registry Corporate Registration Number (ΓΕΜΗ):
 157660660000 acting for the purposes of this Agreement through that office, as lender (hereinafter called the  ***"Lender"*** ,
 which expression shall include its successors and assigns); and

(2) **TENTHONE CORP.**, a corporation duly incorporated in the Republic of Marshall Islands, whose registered address is at Trust Company Complex,
 Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (and includes its successors) (the  ***"Borrower"*** ,
 which expression shall include its successors)

IS SUPPLEMENTAL to a loan agreement dated 10<sup>th</sup> March, 2023 made between (1) the Borrower, as borrower, and (2) the Lender, as Lender (the ***"Principal Agreement"***), whereby the Lender agreed, on the terms and conditions contained therein, to make available to the Borrower, as borrower, a secured term loan facility in the amount of up to **United States Dollars Fifteen million five hundred thousand ($15,500,000)** (the ***"Loan"***) for the purposes therein specified (the Principal Agreement as hereby amended and/or supplemented and as the same may hereinafter be further amended and/or supplemented called the ***"Loan Agreement"***).

**<u>W H E R E A S</u>:**

(A) the
 Borrower hereby acknowledges and confirms that (a) the Lender has advanced to the Borrower, as borrower, the full amount of the Commitment
 in the principal amount of **United States Dollars Fifteen million five hundred thousand ($15,500,000)** and (b) as the date hereof
 the principal amount of United States Dollars **Eleven million six hundred thousand (US$11,600,000)** in respect of the Loan remains
 outstanding;

(B) pursuant
 to a Corporate Guarantee dated 10<sup>th</sup> March, 2023 (the **" *Corporate Guarantee* "**), the Corporate Guarantor
 (as therein defined) irrevocably and unconditionally guaranteed the due and timely repayment of the Loan and interest and default
 interest accrued thereon and all other monies payable under the Loan Agreement and the Security Documents and the performance of
 all the obligations of the Borrower under the Loan Agreement and the Security Documents executed in accordance thereto;

(C) pursuant
 to a Shares Pledge Agreement dated 13<sup>th</sup> March, 2023 (the  ***"Shares Pledge Agreement"***) made between
 the Pledgor (as therein defined), as Pledgor and the Lender, as Pledgee, the Pledgor (inter alia) pledged to the Lender the shares
 certificates in respect of the Pledged Shares (as therein defined) as security for the Secured Indebtedness (as therein defined);

(D) pursuant
 to an Approved Manager's Undertaking dated 13<sup>th</sup> March, 2023 (the  ***"Approved Commercial Manager's Undertaking"***) **Pyxis Maritime Corp** **.**, of the Marshall Islands
 and having a licensed office in Greece (at 59 K. Karamanli Street, Maroussi 15125, Greece) under its capacity as Approved Commercial
 Manager of the Vessel (as hereinafter defined) (the "  ***Approved Commercial Manager*** "), has *(inter alia)* subordinated any claims it may have against the Borrower and/or the Vessel to the claims of the Lender under the Loan Agreement and
 the Security Documents as security for the Outstanding Indebtedness;

(E) the
 Borrower and the other Security Parties have requested the Lender to grant its consent to :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 amendment of the Margin;

(b) the
 amendment of the repayment schedule of the Loan;

(c) the
 extension of the Final Maturity Date;

(Borrower's requests under sub-paragraphs (a) to (c) of this paragraph (E), hereinafter collectively called the "***Request***"), and the Lender has agreed to the Request conditionally upon terms that the Principal Agreement shall be amended in the manner hereinafter set out in Clause 5 (*<u>Variations to the Principal Agreement</u>*) of this Supplemental Agreement.

NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

**1.** **DEFINITIONS** 

**1.1** **Defined terms and expressions** 

Words and expressions defined in the Principal Agreement and not otherwise defined herein (including the Recitals hereto) shall have the same meanings when used in this Supplemental Agreement.

**1.2** **Additional definitions** 

In addition, in this Supplemental Agreement the words and expressions specified below shall have the meanings attributed to them below:

 ****

***"Effective Date"*** means the date hereof or such earlier or later date as the Lender may agree in writing upon which all the conditions contained in Clause 4 *(<u>Conditions</u>)* shall have been satisfied and this Supplemental Agreement shall become effective;

 ****

***"Loan Agreement"*** means the Principal Agreement as hereby amended and/or supplemented and as the same may from time to time be further amended and/or supplemented;

**"Margin Switch Date"** means 13<sup>th</sup> January, 2026;

**"*Mortgage*"** means the first preferred Marshall Islands ship mortgage dated 13<sup>th</sup> March, 2023 recorded over the Vessel in favour of the Lender on March 13, 2023 at 05:47 P.M., E.E.T in Piraeus (March 13, 2023 at 11.47 A.M., E.D.S.T. in the Central Office of the Maritime Administrator) in Book PM 34 at Page 576;

 ****

***"Mortgage Amendment"*** means the amendment No. 1 to the Mortgage, whereby the Mortgage shall be amended as therein provided, executed by the Borrower, as owner of the Vessel, in favour of the Lender, in form satisfactory to the Lender;

 ****

***"Transaction Documents"*** together means this Supplemental Agreement and the Mortgage Amendment, and ***"Transaction Document"*** means any of them as the context may require; and

 ****

 ****

***"Vessel"*** means the oil/chemical tanker m/v "**PYXIS KARTERIA**" of about 29,289 gt and 12,209 nt, built in 2013 in Ulsan, S. Korea, IMO No. 9596260, registered under the laws and flag of the Republic of the Marshall Islands at the Ships' Registry of the port of Majuro in the ownership of the Borrower with Official No. 9503, together with all her boats, engines, machinery tackle outfit spare gear fuel consumable and other stores belongings and appurtenances whether on board or ashore and whether now owned or hereafter acquired and all the additions, improvements and replacements in or on the above described vessel.

**1.3** **Application of interpretation provisions of Loan Agreement** 

Clause 1.3 (*<u>Interpretation</u>*) and Clause 1.4 (*<u>Construction of certain terms</u>*) of the Principal Agreement applies to this Supplemental Agreement as if it were expressly incorporated in it with any necessary modifications.

**2.** **REPRESENTATIONS AND WARRANTIES** 

**2.1** **Representations and warranties under the Finance Documents** 

The Borrower hereby represents and warrants to the Lender as at the date hereof that the representations and warranties set forth in the Principal Agreement and each of the Security Documents to which the Borrower is a party (updated mutatis mutandis to the date of this Supplemental Agreement) are true and correct as if all references therein to "*this Agreement*" were references to the Principal Agreement as amended and supplemented by this Supplemental Agreement.

**2.2** **Additional Representations and warranties** 

In addition to the above, the Borrower hereby represents and warrants to the Lender as at the date of this Supplemental Agreement that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. each
 of the corporate Security Parties is duly formed, is validly existing and in good standing under the laws of the place of its incorporation
 has full power to carry on its business as it is now being conducted and to enter into and perform its obligations under the Principal
 Agreement, this Supplemental Agreement and the other Transaction Documents, and has complied with all statutory and other requirements
 relative to its business;

b. all
 necessary licences, consents and authorities, governmental or otherwise under this Supplemental Agreement, the Principal Agreement
 and the other Transaction Documents have been obtained and, as of the date of this Supplemental Agreement, no further consents or
 authorities are necessary for any of the Security Parties to enter into this Supplemental Agreement and the other Transaction Documents
 or otherwise perform its obligations hereunder;

c. each
 of the Transaction Documents constitutes, the legal, valid and binding obligations of the Security Parties thereto enforceable in
 accordance with its terms;

d. the
 execution and delivery of, and the performance of the provisions of this Supplemental Agreement and the other Transaction Documents
 do not, and will not contravene any applicable law or regulation existing at the date hereof or any contractual restriction binding
 on any of the Security Parties or its respective constitutional documents;

e. no
 litigation or arbitration, tax claim or administrative proceeding (including action relating to any alleged or actual breach of the
 ISM Code and the ISPS Code) involving a potential liability of the Borrower or the Corporate Guarantor is current or pending or (to
 its or its officers' knowledge) threatened against the Borrower or the Corporate Guarantor, which, if adversely determined,
 would have a Material Adverse Effect on any of them ; and

f. no
 Event of Default has occurred and is continuing and neither the Borrower nor the Corporate Guarantor has been declared in default
 under any agreement relating to Financial Indebtedness to which it is a party or by which it may be bound.

**2.3** **Survival** 

The representations and warranties of the Security Parties in this Supplemental Agreement (except in relation to the representation and warranty under paragraph 2.2 (f)) shall survive the execution of this Supplemental Agreement and shall be deemed to be repeated at the commencement of each Interest Period.

**3.** **AGREEMENT OF THE LENDER** 

The Lender, relying upon each of the representations and warranties set out in Clause 2 *<u>(Representations and warranties</u>)* hereby agrees with the Security Parties, subject to and upon the terms and conditions of this Supplemental Agreement and in particular, but without limitation, subject to the fulfilment of the conditions precedent set out in Clause 4 *<u>(Conditions</u>)*, that the Principal Agreement be amended in the manner more particularly set out in Clause 5 *<u>(Variations to the Principal Agreement</u>)*.

**4.** **CONDITIONS** 

**4.1** **Conditions** 

The agreement of the Lender contained in Clause 3 *(<u>Agreement of the Lender</u>)* shall be expressly subject to the condition that the Lender shall have received on or before the Effective Date in form and substance satisfactory to the Lender and their legal advisers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. a
 certificate of good standing or equivalent document issued by the competent authorities of the place of its incorporation in respect
 of each of the Borrower and the other corporate Security Parties;

b. a
 recent certificate of incumbency of each corporate Security Party issued by the appropriate authority or, as appropriate, signed
 by the secretary or a director thereof, stating the officers and the directors of each of them;

c. original
 duly legalised copies of resolutions duly passed by the Board of Directors, or the Sole Director, as the case may be, of the Borrower
 evidencing approval of this Supplemental Agreement and each of the other Transaction Documents to which the Borrower is or is to
 be a party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given under
 this Supplemental Agreement on its behalf or other evidence of such approvals and authorisations as shall be acceptable to the Lender;

d. all
 documents evidencing any other necessary action or approvals or consents with respect to this Supplemental Agreement evidencing approval
 of this Supplemental Agreement and each of the other Transaction Documents to which the relevant Security Party is or is to be a
 party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given under this
 Supplemental Agreement on its behalf or other evidence of such approvals and authorisations as shall be acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the
 original of any power(s) of attorney issued in favour of any person executing this Supplemental Agreement and each of the other Transaction
 Documents to which the Borrower is or is to be a party;

f. such
 favourable legal opinions from lawyers acceptable to the Lender and their legal advisors as the Lender shall require;

g. the
 Mortgage Amendment duly executed by the respective parties thereto and, where appropriate, duly registered through the appropriate
 Registry over the Vessel in favour of the Lender; and

h. evidence
 that the amendment fee, as set out in Clause 9.1 (*Amendment Fee*) has been paid to the Lender.

**5.** **VARIATIONS TO THE PRINCIPAL AGREEMENT** 

**5.1** **Amendments** 

In consideration of the agreement of the Lender contained in Clause 3 *(<u>Agreement of the Lender</u>)*, the Borrower hereby agrees with the Lender that (subject to the satisfaction of the conditions precedent contained in Clause 4 *(<u>Conditions</u>)*, the provisions of the Principal Agreement shall be varied and/or amended and/or supplemented as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. with
 effect from the Effective Date, the following definitions in Clause 1.2 (*<u>Definitions</u>*) of the Principal Agreement shall
 be  **<u>amended</u>** to read as follows :

**"*Balloon Instalment*" means the part of the Loan amounting to Eight million three hundred thousand Dollars ($8,300,000);**

 ****

***"Final Maturity Date" means the 13<sup>th</sup> day of September, 2028;***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. with
 effect from the Margin Switch Date, the following definitions in Clause 1.2 (*<u>Definitions</u>*) of the Principal Agreement
 shall be  **<u>amended</u>** to read as follows :

***"Margin"*** means one point eight zero per centum (1.80%) per annum;

 ****

***"Interpolated Term SOFR"*** means, in relation to the Loan or any part of the Loan, the rate (rounded to the same number of decimal places as Term SOFR) which results from interpolating on a linear basis between:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *either:* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *the applicable Term SOFR (as of the Quotation Day) for the longest period (for which Term SOFR is available) which is less than the Interest Period of the Loan or that part of the Loan; or* 

*(ii)* *if no such Term SOFR is available for a period which is less than the Interest Period of the Loan or that part of the Loan, SOFR for the day which is two US Government Securities Business Days before the Quotation Day; and* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *the applicable Term SOFR (as of the Quotation Day) for the shortest period (for which Term SOFR is available) which exceeds the Interest Period of the Loan or that part of the Loan;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**m.** **with effect from the Margin Switch Date, Clause 4.1 (*<u>Repayment</u>*) of the Principal Agreement shall be amended to read as follows:** 

*"The Borrower shall, and it is expressly undertaken by the Borrower to, repay the Loan by (a) eleven (11) consecutive quarterly Repayment Instalments (the "**Repayment Instalments**" and each a "**Repayment Instalment**") to be repaid on each of the Repayment Dates, so that the first Repayment Instalment is repaid on **13<sup>th</sup> March, 2026** and each of the subsequent ones consecutively falling due for payment on each of the dates falling three (3) months after the immediately preceding Repayment Date with the last (the 11<sup>th</sup>) of such Repayment Instalments falling due for payment on the Final Maturity Date and (b) the Balloon Instalment falling due for payment on the Final Maturity Date; subject to the provisions of this Agreement the amount of each of such Repayment Instalments shall be in the amount of Dollars Three Hundred Thousand ($300,000);*

 

*<u>provided, that</u> (a) if the last Repayment Date would otherwise fall after the Final Maturity Date, the last Repayment Date shall be the Final Maturity Date, (b) there shall be no Repayment Dates after the Final Maturity Date, (c) on the Final Maturity Date the Borrower shall also pay to the Lender any and all other moneys then due and payable under this Agreement and the other Finance Documents and (d) if any of the Repayment Instalments shall become due on a day which is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day unless such Business Day falls in the next calendar month in which event such due date shall be the immediately preceding Business Day.";*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **with effect from the Effective Date, the following new definitions shall be <u>added</u> in alphabetical order in Clause 1.2 *(<u>Definitions</u>)* of the Principal Agreement :** 

***"First Supplemental Agreement"*** *means the First Supplemental Agreement dated 26<sup>th</sup> January, 2026 supplemental to this Agreement executed and made between the Borrower and the Lender, whereby this Agreement has been amended as therein provided;"*

 ****

***"Mortgage Amendment"*** *means the amendment No. 1 to the Mortgage, whereby the Mortgage shall be amended as therein provided, executed by the Borrower, as owner of the Vessel, in favour of the Lender, in form satisfactory to the Lender;"*.

 

**5.2** **Security Documents** 

**With effect as from the Effective Date the definition *" Security Documents"* shall be deemed to include the Security Documents as amended and/or supplemented in pursuance to the terms hereof and any document or documents (including if the context requires the Loan Agreement) that may now or hereafter be executed as security for the repayment of the Loan, interest thereon and any other moneys payable by the Borrower under the Principal Agreement, this Supplemental Agreement and the Security Documents (as herein defined) as well as for the performance by the Borrower and the other Security Parties (as herein defined) of all obligations, covenants and agreements pursuant to the Principal Agreement, this Supplemental Agreement and/or the Security Documents.**

**5.3** **Construction** 

With effect from the Effective Date all references in the Principal Agreement and the other Finance Documents to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **" *this Agreement* ", "*hereunder* ", "*herein*" and the like and in the Security Documents to the "*Loan Agreement*" shall be construed as references to the Principal Agreement as amended and/or supplemented by this Supplemental Agreement; and** 

**(b)** **" *Mortgage*" shall be construed as references to the Mortgage, as amended and/or supplemented by the Mortgage Amendment.** 

**6.** **RECONFIRMATION** 

**6.1** **Reconfirmation of obligations** 

The Borrower hereby reconfirms its obligations under the Principal Agreement and its compliance with the covenants contained therein, as amended and/or supplemented by this Supplemental Agreement*.*

**6.2** **Acknowledgement** 

Each of the Security Parties acknowledges and agrees, for the avoidance of doubt, that each of the Security Documents to which it is a party and its obligations thereunder, shall remain in full force and effect notwithstanding the amendments made to the Principal Agreement by this Supplemental Agreement, the Mortgage and the deed of covenant supplemental thereto and the waivers and other amendments agreed by the Lender in this Supplemental Agreement.

**7.** **CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS** 

Save for the alterations to the Principal Agreement and the Security Documents made or to be made pursuant to this Supplemental Agreement, and such further modifications (if any) thereto as may be necessary to make the same consistent with the terms of this Supplemental Agreement, the Principal Agreement shall remain in full force and effect and apply to this Supplemental Agreement as well, as if repeated *in extenso* herein, and the security constituted by the Security Documents shall continue to remain valid and enforceable and the Borrower hereby reconfirms its obligations under the Principal Agreement as hereby amended and under the Security Documents to which it is a party.

**8.** **ENTIRE AGREEMENT AND AMENDMENT** 

**8.1** **Entire Agreement** 

The Principal Agreement, the other Security Documents, and this Supplemental Agreement represent the entire agreement among the parties hereto with respect to the subject matter hereof and supersede any prior expressions of intent or understanding with respect to this transaction and may be amended only by an instrument in writing executed by the parties to be bound or burdened thereby.

**8.2** **Supplemental Agreement – Application of Principal Agreement provisions** 

This Supplemental Agreement is supplementary to and incorporated in the Principal Agreement, all terms and conditions whereof, including, but not limited to, provisions on payments, calculation of interest and Events of Default, shall apply to the performance and interpretation of this Supplemental Agreement.

**9.** **COSTS AND EXPENSES** 

**9.1** **Amendment Fee** 

The Borrower shall pay to the Lender an amendment fee in an amount of Twenty four thousand Dollars ($24,000) concurrently with or prior to the signing of this Supplemental Agreement.

**9.2** **Costs and expenses** 

The Borrower hereby covenants and agrees to pay to the Lender upon demand and from time to time all reasonable and documented costs, charges, registration and recording fees, duties and expenses (including legal fees) incurred by the Lender in connection with the negotiation, preparation, execution and enforcement or attempted enforcement of this Supplemental Agreement and any document executed pursuant thereto and/or in preserving or protecting or attempting to preserve or protect the security created hereunder and/or under the Security Documents.

**9.3** **Stamp Duty etc.** 

The Borrower hereby covenants and agrees to pay and discharge all stamp duties, registration and recording fees and charges and any other charges whatsoever and wheresoever payable or due in respect of this Supplemental Agreement, any other Transaction Document and/or any further document executed pursuant hereto.

**10.** **ASSIGNMENT** 

The provisions of Clause 14 *(<u>Assignment, Transfer, Participation, Lending Office</u>)* of the Principal Agreement shall apply to this Supplemental Agreement as if the same were set out herein in full.

**11.** **MISCELLANEOUS** 

**11.1** **Incorporation of Loan Agreement provisions** 

Without prejudice to Clauses 6 *(<u>Reconfirmation</u>)*, 7 *(<u>Continuance of Principal Agreement and the Security Documents</u>)* and 8 *(<u>Entire agreement and amendment</u>)* of this Supplemental Agreement, the provisions of Clauses 2.8 *(<u>Evidence</u>),* 16 (*<u>Notices and communications</u>*) and 15.6 (*<u>Invalidity of terms</u>*) of the Principal Agreement apply to this Supplemental Agreement as well and they are deemed to be repeated as if set forth *in extenso* herein.

**11.2** **Counterparts** 

This Supplemental Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument.

**12.** **LAW AND JURISDICTION** 

**12.1** **Governing Law** 

This Supplemental Agreement and any non-contractual obligations arising out of or in relation to it shall be governed by and construed in accordance with English law and the provisions of Clause 17 *(<u>Law and Jurisdiction</u>)* of the Principal Agreement (as hereby amended) shall apply mutatis mutandis to this Supplemental Agreement as if the same were set out herein in full.

**12.2** **Third Party Rights** 

A person who is not a party to this Supplemental 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 Supplemental Agreement.

IN WITNESS whereof the parties hereto have caused this Supplemental Agreement to be duly executed the date first above written.

 

*[Intentionally left blank]*

**<u>EXECUTION PAGE</u>**

**<u>Borrower</u>**

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. Ioannis Chalkias) |  |
| for and on behalf of) |  |
| **TENTHONE CORP.**,) |  |
| of the Marshall Islands, in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Alexandra Pagoni* |
| *Address:* | *Defteras Merarchias 13* |
|  | *Piraeus, Greece* |
| *Occupation:* | *t. Attorney-at-law* |

---

**<u>LENDER</u>**

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. Charalampos Birlis) |  |
| And Mrs. Olga Voutsa) | Attorney-in-fact |
| for and on behalf of) |  |
| **PIRAEUS BANK S.A.**,) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Alexandra Pagoni* |
| *Address:* | *Defteras Merarchias 13* |
|  | *Piraeus, Greece* |
| *Occupation:* | *t. Attorney-at-law* |

---

**ACKNOWLEDGEMENT**

We, **PYXIS TANKERS INC.**, a corporation duly incorporated in the Republic of the Marshall Islands, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Eleven million six hundred thousand (US$11,600,000)** in respect
 of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above
 First Supplemental Agreement, the provisions of the Corporate Guarantee (as defined therein) executed by us in favour of the Lender
 shall remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended by
 the above First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended),
 and we shall remain liable under the Corporate Guarantee (as defined therein) for all obligations and liabilities assumed by us under
 the Corporate Guarantee (as defined therein).

Dated: 26<sup>th</sup> January, 2026

For and on behalf of

**PYXIS TANKERS INC.**

(as Corporate Guarantor)

Ioannis Chalkias <br> Attorney-in-fact

**ACKNOWLEDGEMENT**

We, **PYXIS MARITIME CORP.**, a corporation duly incorporated in the Republic of the Marshall Islands, having an office established in Greece (at 59 K. Karamanli Street, Maroussi 15125, Greece) under laws 378/68, 27/75, 2234/94, 3752/09 and 4150/13 (as amended and in force at the date hereof), hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that notwithstanding the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above First Supplemental Agreement, the provisions of the Approved Commercial Manager's Undertaking (as defined therein) executed by us in favour of the Lender shall remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended by the above First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended), and we shall remain liable under the Approved Commercial Manager's Undertaking (as defined therein) for all obligations and liabilities assumed by us under the Approved Commercial Manager's Undertaking (as defined therein).

Dated: 26<sup>th</sup> January, 2026

For and on behalf of

**PYXIS MARITIME CORP.**

(as Approved Commercial Manager)

Ioannis Chalkias <br> Attorney-in-fact

**ACKNOWLEDGEMENT**

We, **PYXIS TANKERS INC.**, a corporation duly incorporated in the Republic of the Marshall Islands, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Eleven million six hundred thousand (US$11,600,000)** in respect
 of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above
 First Supplemental Agreement, the provisions of the Shares Pledge Agreement (as defined therein) executed by us in favour of the
 Lender shall remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended
 by the above First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended),
 and we shall remain liable under the Shares Pledge Agreement (as defined therein) for all obligations and liabilities assumed by
 us under the Shares Pledge Agreement (as defined therein).

Dated: 26<sup>th</sup> January, 2026

For and on behalf of

**PYXIS TANKERS INC.**

(as Pledgor)

Ioannis Chalkias <br> Attorney-in-fact

## Exhibit 4.25

**Exhibit 4.25**

**<u>Private & confidential</u>**

Dated: 26<sup>th</sup> January, 2026

**DRYONE CORP.**

(as Borrower)

- and -

**PIRAEUS BANK S.A.**

(as Lender)

**FIRST SUPPLEMENTAL AGREEMENT**

in relation to a Loan Agreement dated 8<sup>th</sup> September, 2023

for a loan facility of (originally) US $19,000,000

![](ex4-25_001.jpg)

<u>**TABLE OF CONTENTS**</u>

---

| | | |
|:---|:---|:---|
| CLAUSE | HEADINGS | PAGE |
| 1. | DEFINITIONS | 2 |
| 2. | REPRESENTATIONS AND WARRANTIES | 3 |
| 3. | AGREEMENT OF THE LENDER | 4 |
| 4. | CONDITIONS | 4 |
| 5. | VARIATIONS TO THE PRINCIPAL AGREEMENT | 5 |
| 6. | CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS | 8 |
| 7. | ENTIRE AGREEMENT AND AMENDMENT | 8 |
| 8. | FEES AND EXPENSES | 9 |
| 9. | MISCELLANEOUS | 9 |
| 10. | LAW AND JURISDICTION | 10 |

---

**THIS SUPPLEMENTAL AGREEMENT** *(**"this Supplemental Agreement"**)* made this 26<sup>th</sup> day of January, 2026

B E T W E E N:

(1) **PIRAEUS BANK S.A.**, a banking société anonyme incorporated in and pursuant to the
 laws of the Hellenic Republic having its registered office at 4, Amerikis Street, Athens,
 Greece, with General Commercial Registry Corporate Registration Number (ΓΕΜΗ):
 157660660000 acting for the purposes of this Agreement through that office, as lender (hereinafter
 called the  ***"Lender"*** , which expression shall include its successors
 and assigns); and

(2) **DRYONE CORP.**, a corporation duly incorporated in the Republic of Marshall Islands, whose registered
 address is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
 MH 96960 (and includes its successors) (the  ***"Borrower"*** , which expression
 shall include its successors)

IS SUPPLEMENTAL to a loan agreement dated 8<sup>th</sup> September, 2023 made between (1) the Borrower, as borrower, and (2) the Lender, as Lender (the ***"Principal Agreement"***), whereby the Lender agreed, on the terms and conditions contained therein, to make available to the Borrower, as borrower, a secured term loan facility in the amount of up to **United States Dollars Nineteen million ($19,000,000)** (the ***"Loan"***) for the purposes therein specified (the Principal Agreement as hereby amended and/or supplemented and as the same may hereinafter be further amended and/or supplemented called the ***"Loan Agreement"***).

**<u>W H E R E A S</u>:**

(A) the
 Borrower hereby acknowledges and confirms that (a) the Lender has advanced to the Borrower,
 as borrower, the full amount of the Commitment in the principal amount of **United States Dollars Nineteen million ($19,000,000)** and (b) as the date hereof the principal amount
 of **United States Dollars Fifteen million nine hundred thousand (US$15,900,000)** in
 respect of the Loan remains outstanding;

(B) pursuant
 to a Corporate Guarantee dated 8<sup>th</sup> September, 2023 (the **" *Corporate Guarantee A* "**), the Corporate Guarantor A (as therein defined) irrevocably and
 unconditionally guaranteed the due and timely repayment of 60% of the at the relevant time
 outstanding indebtedness of the Borrower under the Loan Agreement and the Security Documents
 and the performance of all the obligations of the Borrower under the Loan Agreement and the
 Security Documents executed in accordance thereto;

(C) pursuant
 to a Corporate Guarantee dated 8<sup>th</sup> September, 2023 (the **" *Corporate Guarantee B* "**), the Corporate Guarantor B (as therein defined) irrevocably and
 unconditionally guaranteed the due and timely repayment of 40% of the at the relevant time
 outstanding indebtedness of the Borrower under the Loan Agreement and the Security Documents
 and the performance of all the obligations of the Borrower under the Loan Agreement and the
 Security Documents executed in accordance thereto;

(D) pursuant
 to a Manager's Undertaking dated 14<sup>th</sup> September, 2023 (the  ***"Manager's Undertaking"***) **Konkar Shipping Agencies S.A.**, of Panama and having a licensed office in Greece (at 59 K. Karamanli Street,
 Maroussi 15125, Greece) under its capacity as Manager of the Vessel (as hereinafter defined)
 (the "  ***Manager*** "), has *(inter alia)* subordinated any claims
 it may have against the Borrower and/or the Vessel to the claims of the Lender under the
 Loan Agreement and the Security Documents as security for the Outstanding Indebtedness;

(D) pursuant
 to a deed of Shares Pledge dated 8<sup>th</sup> September, 2023 (the  ***"Shares Pledge"***) made between the Shareholder (as therein defined), as Shareholder
 and the Lender, the Shareholder (inter alia) mortgaged, pledged and charged and otherwise
 created an Encumbrance in the Shares (as therein defined) in respect of the Security Assets
 (as therein defined) as security for the Secured Liabilities (as therein defined);

(E) the
 Borrower and the other Security Parties have requested the Lender to grant its consent to
 :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 amendment of the Margin;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 amendment of the repayment schedule of the Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 extension of the Maturity Date;

(Borrower's requests under sub-paragraphs (a) to (c) of this paragraph (E), hereinafter collectively called the "***Request***") and the Lender has agreed to the Request conditionally upon terms that the Principal Agreement shall be amended in the manner hereinafter set out in Clause 5 (*<u>Variations to the Principal Agreement</u>*) of this Supplemental Agreement.

NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

**1.** **DEFINITIONS** 

**1.1** **Defined terms and expressions** 

Words and expressions defined in the Principal Agreement and not otherwise defined herein (including the Recitals hereto) shall have the same meanings when used in this Supplemental Agreement.

**1.2** **Additional definitions** 

In addition, in this Supplemental Agreement the words and expressions specified below shall have the meanings attributed to them below:

***"Effective Date"*** means the date hereof or such earlier or later date as the Lender may agree in writing upon which all the conditions contained in Clause 4 *(<u>Conditions</u>)* shall have been satisfied and this Supplemental Agreement shall become effective;

***"Loan Agreement"*** means the Principal Agreement as hereby amended and/or supplemented and as the same may from time to time be further amended and/or supplemented;

**"Margin Switch Date"** means 12<sup>th</sup> January, 2026;

**"*Mortgage*"** means the first preferred Marshall Islands ship mortgage dated 14 September, 2023 recorded over the Vessel in favour of the Lender on September 14, 2023 at 10:03 A.M., E.E.S.T in Piraeus (September 14, 2023 at 03.03 A.M., E.D.S.T. in the Central Office of the Maritime Administrator) in Book PM 34 at Page 2436;

***"Mortgage Amendment"*** means the amendment No. 1 to the Mortgage, whereby the Mortgage shall be amended as therein provided, executed by the Borrower, as owner of the Vessel, in favour of the Lender, in form satisfactory to the Lender;

***"Transaction Documents"*** together means this Supplemental Agreement and the Mortgage Amendment, and ***"Transaction Document"*** means any of them as the context may require; and

***"Vessel"*** means the bulk carrier m/v "**KONKAR ORMI**" of about 36,075 gt and 21,075 nt, built in 2016 in Japan, IMO No. 9774355, registered under the laws and flag of the Republic of the Marshall Islands at the Ships' Registry of the port of Majuro in the ownership of the Borrower with Official No. 10771, together with all her boats, engines, machinery tackle outfit spare gear fuel consumable and other stores belongings and appurtenances whether on board or ashore and whether now owned or hereafter acquired and all the additions, improvements and replacements in or on the above described vessel.

**1.3** **Application of interpretation provisions of Loan Agreement** 

Clause 1.3 (*<u>Construction</u>*) of the Principal Agreement applies to this Supplemental Agreement as if it were expressly incorporated in it with any necessary modifications.

**2.** **REPRESENTATIONS AND WARRANTIES** 

**2.1** **Representations and warranties under the Finance Documents** 

The Borrower hereby represents and warrants to the Lender as at the date hereof that the representations and warranties set forth in the Principal Agreement and each of the Security Documents to which the Borrower is a party (updated mutatis mutandis to the date of this Supplemental Agreement) are true and correct as if all references therein to "*this Agreement*" were references to the Principal Agreement as amended and supplemented by this Supplemental Agreement.

**2.2** **Additional Representations and warranties** 

In addition to the above, the Borrower hereby represents and warrants to the Lender as at the date of this Supplemental Agreement that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. each
 of the corporate Security Parties is duly formed, is validly existing and in good standing
 under the laws of the place of its incorporation has full power to carry on its business
 as it is now being conducted and to enter into and perform its obligations under the Principal
 Agreement, this Supplemental Agreement and the other Transaction Documents, and has complied
 with all statutory and other requirements relative to its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. all
 necessary licences, consents and authorities, governmental or otherwise under this Supplemental
 Agreement, the Principal Agreement and the other Transaction Documents have been obtained
 and, as of the date of this Supplemental Agreement, no further consents or authorities are
 necessary for any of the Security Parties to enter into this Supplemental Agreement and the
 other Transaction Documents or otherwise perform its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. each
 of the Transaction Documents constitutes, the legal, valid and binding obligations of the
 Security Parties thereto enforceable in accordance with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the
 execution and delivery of, and the performance of the provisions of this Supplemental Agreement
 and the other Transaction Documents do not, and will not contravene any applicable law or
 regulation existing at the date hereof or any contractual restriction binding on any of the
 Security Parties or its respective constitutional documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. no
 litigation or arbitration, tax claim or administrative proceeding (including action relating
 to any alleged or actual breach of the ISM Code and the ISPS Code) involving a potential
 liability of the Borrower or either Corporate Guarantor is current or pending or (to its
 or its officers' knowledge) threatened against the Borrower or either Corporate Guarantor,
 which, if adversely determined, would have a Material Adverse Effect on any of them ; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. no
 Event of Default has occurred and is continuing and neither the Borrower nor either Corporate
 Guarantor has been declared in default under any agreement relating to Indebtedness to which
 it is a party or by which it may be bound.

**2.3** **Survival** 

The representations and warranties of the Security Parties in this Supplemental Agreement (except in relation to the representation and warranty under paragraph 2.2 (f)) shall survive the execution of this Supplemental Agreement and shall be deemed to be repeated at the commencement of each Interest Period.

**3.** **AGREEMENT OF THE LENDER** 

The Lender, relying upon each of the representations and warranties set out in Clause 2 *<u>(Representations and warranties</u>)* hereby agrees with the Security Parties, subject to and upon the terms and conditions of this Supplemental Agreement and in particular, but without limitation, subject to the fulfilment of the conditions precedent set out in Clause 4 *<u>(Conditions</u>)*, that the Principal Agreement be amended in the manner more particularly set out in Clause 5 *<u>(Variations to the Principal Agreement</u>)*.

**4.** **CONDITIONS** 

**4.1** **Conditions** 

The agreement of the Lender contained in Clause 3 *(<u>Agreement of the Lender</u>)* shall be expressly subject to the condition that the Lender shall have received on or before the Effective Date in form and substance satisfactory to the Lender and their legal advisers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. a
 certificate of good standing or equivalent document issued by the competent authorities of
 the place of its incorporation in respect of each of the Borrower and the other corporate
 Security Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. a
 recent certificate of incumbency of each corporate Security Party issued by the appropriate
 authority or, as appropriate, signed by the secretary or a director thereof, stating the
 officers and the directors of each of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. original
 duly legalised copies of resolutions duly passed by the Board of Directors, or the Sole Director,
 as the case may be, of the Borrower evidencing approval of this Supplemental Agreement and
 each of the other Transaction Documents to which the Borrower is or is to be a party and
 authorising appropriate officers or attorneys to execute the same and to sign all notices
 required to be given under this Supplemental Agreement on its behalf or other evidence of
 such approvals and authorisations as shall be acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. all
 documents evidencing any other necessary action or approvals or consents with respect to
 this Supplemental Agreement evidencing approval of this Supplemental Agreement and each of
 the other Transaction Documents to which the relevant Security Party is or is to be a party
 and authorising appropriate officers or attorneys to execute the same and to sign all notices
 required to be given under this Supplemental Agreement on its behalf or other evidence of
 such approvals and authorisations as shall be acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the
 original of any power(s) of attorney issued in favour of any person executing this Supplemental
 Agreement and each of the other Transaction Documents to which the Borrower is or is to be
 a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. such
 favourable legal opinions from lawyers acceptable to the Lender and their legal advisors
 as the Lender shall require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. the
 Mortgage Amendment duly executed by the respective parties thereto and, where appropriate,
 duly registered through the appropriate Registry over the Vessel in favour of the Lender;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. evidence
 that the amendment fee, as set out in Clause 9.1 (*<u>Amendment Fee</u>*) has been paid
 to the Lender.

**5.** **VARIATIONS TO THE PRINCIPAL AGREEMENT** 

**5.1** **Amendments** 

In consideration of the agreement of the Lender contained in Clause 3 *(<u>Agreement of the Lender</u>)*, the Borrower hereby agrees with the Lender that (subject to the satisfaction of the conditions precedent contained in Clause 4 *(<u>Conditions</u>)*, the provisions of the Principal Agreement shall be varied and/or amended and/or supplemented as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. with
 effect from the Margin Switch Date, the following definition in Clause 1.2 (*<u>Definitions</u>*)
 of the Principal Agreement shall be  **<u>amended</u>** to read as follows :

***"Margin"*** *means one point eight zero per centum (1.80%) per annum;*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. with
 effect from the Effective Date, the following definitions in Clause 1.2 (*<u>Definitions</u>*)
 of the Principal Agreement shall be  **<u>amended</u>** to read as follows :

***"Maturity Date" means the 11<sup>th</sup> day of March, 2029;***

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. with
 effect from the Effective Date, Clause 4.1 (*<u>Repayment</u>*) of the Principal Agreement
 shall be amended to read as follows:

*"Subject to any obligation to pay earlier under this Agreement, the Borrower shall, and it is expressly undertaken by the Borrower to, repay the Loan, which as of the date of the First Supplemental Agreement amounts to Fifteen million nine hundred thousand Dollars ($15,900,000) by (a) thirteen (13) consecutive quarterly Repayment Instalments (the "**Repayment Instalments**" and each a "**Repayment Instalment**") to be repaid on each of the Repayment Dates, so that the first Repayment Instalment is repaid on **11<sup>th</sup> March, 2026** and each of the subsequent ones consecutively falling due for payment on each of the dates falling three (3) months after the immediately preceding Repayment Date with the last (the 13<sup>th</sup>) of such Repayment Instalments falling due for payment on the Maturity Date and (b) a balloon instalment (the "**Balloon Instalment**") in the amount of Twelve million Dollars ($12,000,000) falling due for payment on the Maturity Date; subject to the provisions of this Agreement the amount of each of such Repayment Instalments shall be in the amount of Dollars Three hundred thousand ($300,000);*

 

 

*<u>provided, that</u> (a) if the last Repayment Date would otherwise fall after the Maturity Date, the last Repayment Date shall be the Maturity Date, (b) there shall be no Repayment Dates after the Maturity Date, (c) on the Maturity Date the Borrower shall also pay to the Lender any and all other moneys then due and payable under this Agreement and the other Finance Documents and (d) if any of the Repayment Instalments shall become due on a day which is not a Banking Day, the due date therefor shall be extended to the next succeeding Banking Day unless such Banking Day falls in the next calendar month in which event such due date shall be the immediately preceding Banking Day.";*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. with
 effect from the Effective Date, the following new definitions shall be <u>added</u> in alphabetical order in Clause 1.2 *(<u>Definitions</u>)* of the Principal Agreement:

***""First Supplemental Agreement"*** *means the First Supplemental Agreement dated 26<sup>th</sup> January, 2026 supplemental to this Agreement executed and made between the Borrower and the Lender, whereby this Agreement has been amended as therein provided;*

 

***"Mortgage Amendment"*** *means the amendment No. 1 to the Mortgage, whereby the Mortgage shall be amended as therein provided, executed by the Borrower, as owner of the Vessel, in favour of the Lender, in form satisfactory to the Lender;"*; and

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. with
 effect from the Effective Date, additional Sub-clause 8.1.29 will be added in Clause 8.1 (*<u>General</u>*) after Sub-clause
 8.1.28 reading as follows:

***"8.1.29 <u>Fuel Oil and Consumption Data</u>***

 ****

*upon the request of the Lender and at the cost of the Borrower, on or before 31<sup>st</sup> July in each calendar year, supply or procure the supply by the relevant Classification Society (as specified by the Lender) to the Lender of, all ship fuel oil consumption data required to be collected and reported in accordance with Regulation 22A of Annex VI and any Statement of Compliance, together with a Carbon Intensity and Climate Alignment Certificate (if available), in each case relating to the Vessel for the preceding calendar year, for the purposes of calculating the Lender's portfolio climate score.*

 

*For the purposes of this Sub-Clause 8.1.30 (<u>Fuel Oil and Consumption Data</u>) of this Clause 8.1:*

 

***" Annex VI" means Annex VI of the Protocol of 1997 (as subsequently amended from time to time) to amend the International Convention for the Prevention of Pollution from Ships 1973 ("MARPOL"), as modified by the Protocol of 1978 relating thereto.***

 

***" Carbon Intensity and Climate Alignment Certificate" means a certificate from a Recognised Organisation relating to the Vessel and a calendar year setting out:***

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* *the average efficiency ratio of the Vessel for all voyages performed by it over that calendar year using ship fuel oil consumption data required to be collected and reported in accordance with Regulation 22A of Annex VI in respect of that calendar year; and* 

*(ii)* the
 climate alignment of the Vessel for such calendar year:

 

***" Recognised Organisation" means an organisation which is likely to be the Classification Society representing the Vessel's flag state and, for the purposes of this Sub-Clause 8.1.30 (<u>Fuel Oil and Consumption Data</u>) of this Clause 8.1, duly authorised to determine whether the Borrower has complied with regulation 22A of Annex VI.***

 

***" Statement of Compliance" means a Statement of Compliance related to fuel oil consumption pursuant to regulations 6.6 and 6.7 of Annex VI.";***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. with
 effect from the Effective Date, a new Clause 13.10 will be added at the end of Clause 13 (*<u>Application of moneys, Set-Off, Pro-rata payments and Miscellaneous</u>*) reading as follows:

**"*13.10 Evidence***

*It is hereby expressly agreed and admitted by the Borrower that abstracts or photocopies of the books of the Lender as well as statements of accounts or a certificate signed by an authorised officer of the Lender shall be conclusive binding and full evidence, save for manifest error, on the Borrower as to the existence and/or the amount of the at any time Outstanding Indebtedness, of any amount due under this Agreement, of the applicable interest rate or default rate as per Clause 3.4 (<u>Default Interest</u>) or any other rate provided for or referred to in this Agreement, the Interest Period, the value of additional securities under Clause 8.2(a) (<u>Security shortfall</u>), the payment or non-payment of any amount. Nevertheless, enforcement procedures or any other court or out-of-court procedure can be commenced by the Lender on the basis of the above mentioned means of evidence including written statements or certificates of the Lender.".*

**5.2** **Security Documents** 

**With effect as from the Effective Date the definition *" Security Documents"* shall be deemed to include the Security Documents as amended and/or supplemented in pursuance to the terms hereof and any document or documents (including if the context requires the Loan Agreement) that may now or hereafter be executed as security for the repayment of the Loan, interest thereon and any other moneys payable by the Borrower under the Principal Agreement, this Supplemental Agreement and the Security Documents (as herein defined) as well as for the performance by the Borrower and the other Security Parties (as herein defined) of all obligations, covenants and agreements pursuant to the Principal Agreement, this Supplemental Agreement and/or the Security Documents.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3** **Construction** 

With effect from the Effective Date all references in the Principal Agreement and the other Finance Documents to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "*this Agreement* ", "*hereunder* ", "*herein*" and the
 like and in the Security Documents to the "*Loan Agreement*" shall be construed
 as references to the Principal Agreement as amended and/or supplemented by this Supplemental
 Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "*Mortgage* "
 shall be construed as references to the Mortgage, as amended and/or supplemented by the Mortgage
 Amendment.

**6.** **RECONFIRMATION** 

**6.1** **Reconfirmation of obligations** 

The Borrower hereby reconfirms its obligations under the Principal Agreement and its compliance with the covenants contained therein, as amended and/or supplemented by this Supplemental Agreement*.*

**6.2** **Acknowledgement** 

Each of the Security Parties acknowledges and agrees, for the avoidance of doubt, that each of the Security Documents to which it is a party and its obligations thereunder, shall remain in full force and effect notwithstanding the amendments made to the Principal Agreement by this Supplemental Agreement, the Mortgage and the deed of covenant supplemental thereto and the waivers and other amendments agreed by the Lender in this Supplemental Agreement.

**7.** **CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS** 

Save for the alterations to the Principal Agreement and the Security Documents made or to be made pursuant to this Supplemental Agreement, and such further modifications (if any) thereto as may be necessary to make the same consistent with the terms of this Supplemental Agreement, the Principal Agreement shall remain in full force and effect and apply to this Supplemental Agreement as well, as if repeated *in extenso* herein, and the security constituted by the Security Documents shall continue to remain valid and enforceable and the Borrower hereby reconfirms its obligations under the Principal Agreement as hereby amended and under the Security Documents to which it is a party.

**8.** **ENTIRE AGREEMENT AND AMENDMENT** 

**8.1** **Entire Agreement** 

The Principal Agreement, the other Security Documents, and this Supplemental Agreement represent the entire agreement among the parties hereto with respect to the subject matter hereof and supersede any prior expressions of intent or understanding with respect to this transaction and may be amended only by an instrument in writing executed by the parties to be bound or burdened thereby.

**8.2** **Supplemental Agreement – Application of Principal Agreement provisions** 

This Supplemental Agreement is supplementary to and incorporated in the Principal Agreement, all terms and conditions whereof, including, but not limited to, provisions on payments, calculation of interest and Events of Default, shall apply to the performance and interpretation of this Supplemental Agreement.

**9.** **COSTS AND EXPENSES** 

**9.1** **Amendment Fee** 

The Borrower shall pay to the Lender an amendment fee in an amount of Twenty four thousand Dollars ($24,000) concurrently with or prior to the signing of this Supplemental Agreement.

9.2 Costs
 and expenses

The Borrower hereby covenants and agrees to pay to the Lender upon demand and from time to time all reasonable and documented costs, charges, registration and recording fees, duties and expenses (including legal fees) incurred by the Lender in connection with the negotiation, preparation, execution and enforcement or attempted enforcement of this Supplemental Agreement and any document executed pursuant thereto and/or in preserving or protecting or attempting to preserve or protect the security created hereunder and/or under the Security Documents.

**9.3** **Stamp Duty etc.** 

The Borrower hereby covenants and agrees to pay and discharge all stamp duties, registration and recording fees and charges and any other charges whatsoever and wheresoever payable or due in respect of this Supplemental Agreement, any other Transaction Document and/or any further document executed pursuant hereto.

**10.** **ASSIGNMENT** 

The provisions of Clause 15 *(<u>Assignment, Transfer and Lending Office</u>)* of the Principal Agreement shall apply to this Supplemental Agreement as if the same were set out herein in full.

**11.** **MISCELLANEOUS** 

**11.1** **Incorporation of Loan Agreement provisions** 

Without prejudice to Clauses 6 *(<u>Reconfirmation</u>)*, 7 *(<u>Continuance of Principal Agreement and the Security Documents</u>)* and 8 *(<u>Entire agreement and amendment</u>)* of this Supplemental Agreement, the provisions of Clauses 16 (*<u>Notices and other matters</u>*) and 13.6 (*<u>Severability</u>*) of the Principal Agreement apply to this Supplemental Agreement as well and they are deemed to be repeated as if set forth *in extenso* herein.

**11.2** **Counterparts** 

This Supplemental Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument.

**12.** **LAW AND JURISDICTION** 

**12.1** **Governing Law** 

This Supplemental Agreement and any non-contractual obligations arising out of or in relation to it shall be governed by and construed in accordance with English law and the provisions of Clauses 17 *(<u>Governing Law</u>)* and 18 *(<u>Jurisdiction</u>)* of the Principal Agreement (as hereby amended) shall apply mutatis mutandis to this Supplemental Agreement as if the same were set out herein in full.

**12.2** **Third Party Rights** 

A person who is not a party to this Supplemental 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 Supplemental Agreement.

IN WITNESS whereof the parties hereto have caused this Supplemental Agreement to be duly executed the date first above written.

 

*[Intentionally left blank]*

 

**<u>EXECUTION PAGE</u>**

---

| | |
|:---|:---|
| **<u>Borrower</u>** |  |
| SIGNED by) |  |
| Mr. Ioannis Chalkias) |  |
| for and on behalf of) |  |
| **DRYONE CORP.**,) | Attorney-in-fact |
| of the Marshall Islands, in the presence of:) |  |

---

 

---

| | | |
|:---|:---|:---|
| *Witness:* | | |
| *Name:* | *Alexandra Pagoni* | |
| *Address:* | *Defteras Merarchias 13* | |
|  | *Piraeus, Greece* | |
| *Occupation:* | *t. Attorney-at-law* |  |

---

---

| | |
|:---|:---|
| <u>**<u>LENDER</u>**</u> |  |
| SIGNED by) |  |
| Mr. Charalampos Birlis) |  |
| And Mrs. Olga Voutsa) | Attorney-in-fact |
| for and on behalf of) |  |
| **PIRAEUS BANK S.A.**,) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Alexandra Pagoni* |
| *Address:* | *Defteras Merarchias 13* |
|  | *Piraeus, Greece* |
| *Occupation:* | *t. Attorney-at-law* |

---

**ACKNOWLEDGEMENT**

We, **PYXIS TANKERS INC.**, a corporation duly incorporated in the Republic of the Marshall Islands, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Fifteen million nine hundred thousand (US$15,900,000)** in respect of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above First Supplemental Agreement, the provisions of the Corporate
 Guarantee A (as defined therein) executed by us in favour of the Lender shall remain in full
 force and effect as security of the obligations of the Borrower under the Principal Agreement,
 as amended by the above First Supplemental Agreementand in respect of all sums due to the
 Lender under the Principal Agreement (as so amended), and we shall remain liable under the
 Corporate Guarantee A (as defined therein) for all obligations and liabilities assumed by
 us under the Corporate Guarantee A (as defined therein).

Dated: 26<sup>th</sup> January, 2026

---

| |
|:---|
| For and on behalf of |
| **PYXIS TANKERS INC.** |
| (as Corporate Guarantor A) |
| Konstantinos Lytras |
| Attorney-in-fact |

---

**ACKNOWLEDGEMENT**

We, **KONKAR SHIPPING AGENCIES S.A.**, a corporation duly incorporated in the Republic of Panama, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Fifteen million nine hundred thousand (US$15,900,000)** in respect of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above First Supplemental Agreement, the provisions of the Corporate
 Guarantee B (as defined therein) executed by us in favour of the Lender shall remain in full
 force and effect as security of the obligations of the Borrower under the Principal Agreement,
 as amended by the above First Supplemental Agreementand in respect of all sums due to the
 Lender under the Principal Agreement (as so amended), and we shall remain liable under the
 Corporate Guarantee B (as defined therein) for all obligations and liabilities assumed by
 us under the Corporate Guarantee B (as defined therein).

Dated: 26<sup>th</sup> January, 2026

---

| |
|:---|
| For and on behalf of |
| **KONKAR SHIPPING AGENCIES S.A.** |
| (as Corporate Guarantor B) |
| Konstantinos Lytras |
| Attorney-in-fact |

---

**ACKNOWLEDGEMENT**

We, **Konkar Shipping Agencies S.A.**, a corporation duly incorporated in the Republic of Panama, having an office established in Greece (at 59 K. Karamanli Street, Maroussi 15125, Greece) under laws 378/68, 27/75, 2234/94, 3752/09 and 4150/13 (as amended and in force at the date hereof), hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that notwithstanding the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above First Supplemental Agreement, the provisions of the Manager's Undertaking (as defined therein) executed by us in favour of the Lender shall remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended by the above First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended), and we shall remain liable under the Manager's Undertaking (as defined therein) for all obligations and liabilities assumed by us under the Manager's Undertaking (as defined therein).

Dated: 26<sup>th</sup> January, 2026

---

| |
|:---|
| For and on behalf of |
| **Konkar Shipping Agencies S.A.**, of Panama |
| (as Manager) |
| Konstantinos Lytras |
| Attorney-in-fact |

---

**ACKNOWLEDGEMENT**

We, **DRYKON MARITIME INC.**, a corporation duly incorporated in the Republic of the Marshall Islands, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Fifteen million nine hundred thousand (US$15,900,000)** in respect of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above First Supplemental Agreement, the provisions of the Shares
 Pledge (as defined therein) executed by us in favour of the Lender shall remain in full force
 and effect as security of the obligations of the Borrower under the Principal Agreement,
 as amended by the above First Supplemental Agreementand in respect of all sums due to the
 Lender under the Principal Agreement (as so amended), and we shall remain liable under the
 Shares Pledge (as defined therein) for all obligations and liabilities assumed by us under
 the Shares Pledge (as defined therein).

Dated: 26<sup>th</sup> January, 2026

---

| |
|:---|
| For and on behalf of |
| **DRYKON MARITIME INC.** |
| (as Shareholder) |
| Konstantinos Lytras |
| Attorney-in-fact |

---

## Exhibit 4.26

**Exhibit 4.26**

**<u>Private & confidential</u>**

Dated: 26<sup>th</sup> January, 2026

**DRYTHREE CORP.**

(as Borrower)

- and -

**PIRAEUS BANK S.A.**

(as Lender)

**FIRST SUPPLEMENTAL AGREEMENT**

in relation to a Loan Agreement dated 27<sup>th</sup> June, 2024

for a loan facility of (originally) US $16,500,000

![](ex4-26_001.jpg)

<u>**TABLE OF CONTENTS**</u>

---

| | | |
|:---|:---|:---|
| <u>CLAUSE</u> | <u>HEADINGS</u> | <u>PAGE</u> |
| 1. | DEFINITIONS | 2 |
| 2. | REPRESENTATIONS AND WARRANTIES | 3 |
| 3. | AGREEMENT OF THE LENDER | 4 |
| 4. | CONDITIONS | 4 |
| 5. | VARIATIONS TO THE PRINCIPAL AGREEMENT | 5 |
| 6. | CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS | 8 |
| 7. | ENTIRE AGREEMENT AND AMENDMENT | 8 |
| 8. | FEES AND EXPENSES | 9 |
| 9. | MISCELLANEOUS | 9 |
| 10. | LAW AND JURISDICTION | 10 |

---

**THIS SUPPLEMENTAL AGREEMENT** *(**"this Supplemental Agreement"**)* made this 26<sup>th</sup> day of January, 2026

B E T W E E N:

(1) **PIRAEUS BANK S.A.**, a banking société anonyme incorporated in and pursuant to the laws of the Hellenic Republic having its
 registered office at 4, Amerikis Street, Athens, Greece, with General Commercial Registry Corporate Registration Number (ΓΕΜΗ):
 157660660000 acting for the purposes of this Agreement through that office, as lender (hereinafter called the  ***"Lender"*** ,
 which expression shall include its successors and assigns); and

(2) **DRYTHREE CORP.**, a corporation duly incorporated in the Republic of Marshall Islands, whose registered address is at Trust Company Complex,
 Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (and includes its successors) (the  ***"Borrower"*** ,
 which expression shall include its successors)

IS SUPPLEMENTAL to a loan agreement dated 27<sup>th</sup> June, 2024 made between (1) the Borrower, as borrower, and (2) the Lender, as Lender (the ***"Principal Agreement"***), whereby the Lender agreed, on the terms and conditions contained therein, to make available to the Borrower, as borrower, a secured term loan facility in the amount of up to **United States Dollars Sixteen million five hundred thousand ($16,500,000)** (the ***"Loan"***) for the purposes therein specified (the Principal Agreement as hereby amended and/or supplemented and as the same may hereinafter be further amended and/or supplemented called the ***"Loan Agreement"***).

**<u>W H E R E A S</u>:**

(A) the
 Borrower hereby acknowledges and confirms that (a) the Lender has advanced to the Borrower, as borrower, the full amount of the Commitment
 in the principal amount of **United States Dollars Sixteen million five hundred thousand ($16,500,000)** and (b) as the date hereof
 the principal amount of **United States Dollars Fourteen million six hundred ten thousand (US$14,610,000)** in respect of the
 Loan remains outstanding;

(B) pursuant
 to a Corporate Guarantee dated 27<sup>th</sup> June, 2024 (the **" *Corporate Guarantee A* "**), the Corporate
 Guarantor A (as therein defined), irrevocably and unconditionally guaranteed the due and timely repayment of 60% of the at the relevant
 time outstanding indebtedness of the Borrower under the Loan Agreement and the Security Documents and the performance of all the
 obligations of the Borrower under the Loan Agreement and the Security Documents executed in accordance thereto;

(C) pursuant
 to a Corporate Guarantee dated 27<sup>th</sup> June, 2024 (the **" *Corporate Guarantee B* "**), the Corporate
 Guarantor B (as therein defined) irrevocably and unconditionally guaranteed the due and timely repayment of 40% of the at the relevant
 time outstanding indebtedness of the Borrower under the Loan Agreement and the Security Documents and the performance of all the
 obligations of the Borrower under the Loan Agreement and the Security Documents executed in accordance thereto;

(D) pursuant
 to a Manager's Undertaking dated 28<sup>th</sup> June, 2024 (the  ***"Manager's Undertaking"***) **Konkar Shipping Agencies S.A.**, of Panama and having a licensed office in Greece (at 59 K. Karamanli Street, Maroussi 15125, Greece)
 under its capacity as Manager of the Vessel (as hereinafter defined) (the "  ***Manager*** "), has *(inter alia)* subordinated any claims it may have against the Borrower and/or the Vessel to the claims of the Lender under the Loan Agreement and
 the Security Documents as security for the Outstanding Indebtedness;

(D) pursuant
 to a deed of Shares Pledge dated 27<sup>th</sup> June, 2024 (the  ***"Shares Pledge"***) made between the Shareholder
 (as therein defined) , as Shareholder and the Lender, the Shareholder (inter alia) mortgaged, pledged and charged and otherwise created
 an Encumbrance in the Security Assets (as therein defined) in respect of the Secured Shares (as therein defined) as security for
 the Secured Liabilities (as therein defined)

(E) the
 Borrower and the other Security Parties have requested the Lender to grant its consent to :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 amendment of the Margin;

(b) the
 amendment of the repayment schedule of the Loan;

(c) the
 extension of the Maturity Date;

(Borrower's requests under sub-paragraphs (a) to (c) of this paragraph (D), hereinafter collectively called the "***Request***") and the Lender has agreed to the Request conditionally upon terms that the Principal Agreement shall be amended in the manner hereinafter set out in Clause 5 (*<u>Variations to the Principal Agreement</u>*) of this Supplemental Agreement.

NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

**1.** **DEFINITIONS** 

**1.1** **Defined terms and expressions** 

Words and expressions defined in the Principal Agreement and not otherwise defined herein (including the Recitals hereto) shall have the same meanings when used in this Supplemental Agreement.

**1.2** **Additional definitions** 

In addition, in this Supplemental Agreement the words and expressions specified below shall have the meanings attributed to them below:

 ****

***"Effective Date"*** means the date hereof or such earlier or later date as the Lender may agree in writing upon which all the conditions contained in Clause 4 *(<u>Conditions</u>)* shall have been satisfied and this Supplemental Agreement shall become effective;

 ****

***"Loan Agreement"*** means the Principal Agreement as hereby amended and/or supplemented and as the same may from time to time be further amended and/or supplemented;

 ****

**"Margin Switch Date"** means 27<sup>th</sup> January, 2026;

 ****

**"*Mortgage*"** means the first preferred Marshall Islands ship mortgage dated 28 June, 2024 recorded over the Vessel in favour of the Lender on June 28, 2024 at 11:16 A.M., E.E.S.T in Piraeus (June 28, 2024 at 04:16 A.M., E.D.S.T. in the Central Office of the Maritime Administrator) in Book PM 35 at Page 1387;

 ****

***"Mortgage Amendment"*** means the amendment No. 1 to the Mortgage, whereby the Mortgage shall be amended as therein provided, executed by the Borrower, as owner of the Vessel, in favour of the Lender, in form satisfactory to the Lender;

 ****

***"Transaction Documents"*** together means this Supplemental Agreement and the Mortgage Amendment, and ***"Transaction Document"*** means any of them as the context may require; and

 ****

 ****

***"Vessel"*** means the bulk carrier m/v "**KONKAR VENTURE**" of about 44,127 gt and 27,581 nt, built in 2015 in China, IMO No. 9738052, registered under the laws and flag of the Republic of the Marshall Islands at the Ships' Registry of the port of Majuro in the ownership of the Borrower with Official No. 6281, together with all her boats, engines, machinery tackle outfit spare gear fuel consumable and other stores belongings and appurtenances whether on board or ashore and whether now owned or hereafter acquired and all the additions, improvements and replacements in or on the above described vessel.

**1.3** **Application of interpretation provisions of Loan Agreement** 

Clause 1.3 (*<u>Construction</u>*) of the Principal Agreement applies to this Supplemental Agreement as if it were expressly incorporated in it with any necessary modifications.

**2.** **REPRESENTATIONS AND WARRANTIES** 

**2.1** **Representations and warranties under the Finance Documents** 

The Borrower hereby represents and warrants to the Lender as at the date hereof that the representations and warranties set forth in the Principal Agreement and each of the Security Documents to which the Borrower is a party (updated mutatis mutandis to the date of this Supplemental Agreement) are true and correct as if all references therein to "*this Agreement*" were references to the Principal Agreement as amended and supplemented by this Supplemental Agreement.

**2.2** **Additional Representations and warranties** 

In addition to the above, the Borrower hereby represents and warrants to the Lender as at the date of this Supplemental Agreement that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. each
 of the corporate Security Parties is duly formed, is validly existing and in good standing under the laws of the place of its incorporation
 has full power to carry on its business as it is now being conducted and to enter into and perform its obligations under the Principal
 Agreement, this Supplemental Agreement and the other Transaction Documents, and has complied with all statutory and other requirements
 relative to its business;

b. all
 necessary licences, consents and authorities, governmental or otherwise under this Supplemental Agreement, the Principal Agreement
 and the other Transaction Documents have been obtained and, as of the date of this Supplemental Agreement, no further consents or
 authorities are necessary for any of the Security Parties to enter into this Supplemental Agreement and the other Transaction Documents
 or otherwise perform its obligations hereunder;

c. each
 of the Transaction Documents constitutes, the legal, valid and binding obligations of the Security Parties thereto enforceable in
 accordance with its terms;

d. the
 execution and delivery of, and the performance of the provisions of this Supplemental Agreement and the other Transaction Documents
 do not, and will not contravene any applicable law or regulation existing at the date hereof or any contractual restriction binding
 on any of the Security Parties or its respective constitutional documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. no
 litigation or arbitration, tax claim or administrative proceeding (including action relating to any alleged or actual breach of the
 ISM Code and the ISPS Code) involving a potential liability of the Borrower or either Corporate Guarantor is current or pending or
 (to its or its officers' knowledge) threatened against the Borrower or either Corporate Guarantor, which, if adversely determined,
 would have a Material Adverse Effect on any of them ; and

f. no
 Event of Default has occurred and is continuing and neither the Borrower nor either Corporate Guarantor has been declared in default
 under any agreement relating to Indebtedness to which it is a party or by which it may be bound.

**2.3** **Survival** 

The representations and warranties of the Security Parties in this Supplemental Agreement (except in relation to the representation and warranty under paragraph 2.2 (f)) shall survive the execution of this Supplemental Agreement and shall be deemed to be repeated at the commencement of each Interest Period.

**3.** **AGREEMENT OF THE LENDER** 

The Lender, relying upon each of the representations and warranties set out in Clause 2 *<u>(Representations and warranties</u>)* hereby agrees with the Security Parties, subject to and upon the terms and conditions of this Supplemental Agreement and in particular, but without limitation, subject to the fulfilment of the conditions precedent set out in Clause 4 *<u>(Conditions</u>)*, that the Principal Agreement be amended in the manner more particularly set out in Clause 5 *<u>(Variations to the Principal Agreement</u>)*.

**4.** **CONDITIONS** 

**4.1** **Conditions** 

The agreement of the Lender contained in Clause 3 *(<u>Agreement of the Lender</u>)* shall be expressly subject to the condition that the Lender shall have received on or before the Effective Date in form and substance satisfactory to the Lender and their legal advisers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. a
 certificate of good standing or equivalent document issued by the competent authorities of the place of its incorporation in respect
 of each of the Borrower and the other corporate Security Parties;

b. a
 recent certificate of incumbency of each corporate Security Party issued by the appropriate authority or, as appropriate, signed
 by the secretary or a director thereof, stating the officers and the directors of each of them;

c. original
 duly legalised copies of resolutions duly passed by the Board of Directors, or the Sole Director, as the case may be, of the Borrower
 evidencing approval of this Supplemental Agreement and each of the other Transaction Documents to which the Borrower is or is to
 be a party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given under
 this Supplemental Agreement on its behalf or other evidence of such approvals and authorisations as shall be acceptable to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. all
 documents evidencing any other necessary action or approvals or consents with respect to this Supplemental Agreement evidencing approval
 of this Supplemental Agreement and each of the other Transaction Documents to which the relevant Security Party is or is to be a
 party and authorising appropriate officers or attorneys to execute the same and to sign all notices required to be given under this
 Supplemental Agreement on its behalf or other evidence of such approvals and authorisations as shall be acceptable to the Lender;

e. the
 original of any power(s) of attorney issued in favour of any person executing this Supplemental Agreement and each of the other Transaction
 Documents to which the Borrower is or is to be a party;

f. such
 favourable legal opinions from lawyers acceptable to the Lender and their legal advisors as the Lender shall require;

g. the
 Mortgage Amendment duly executed by the respective parties thereto and, where appropriate, duly registered through the appropriate
 Registry over the Vessel in favour of the Lender; and

h. evidence
 that the amendment fee, as set out in Clause 9.1 (*<u>Amendment Fee</u>*) has been paid to the Lender.

**5.** **VARIATIONS TO THE PRINCIPAL AGREEMENT** 

**5.1** **Amendments** 

In consideration of the agreement of the Lender contained in Clause 3 *(<u>Agreement of the Lender</u>)*, the Borrower hereby agrees with the Lender that (subject to the satisfaction of the conditions precedent contained in Clause 4 *(<u>Conditions</u>)*, the provisions of the Principal Agreement shall be varied and/or amended and/or supplemented as follows:

---

| | |
|:---|:---|
| a. | with effect from the Margin Switch Date, the following definition in Clause 1.2 (*<u>Definitions</u>*) of the Principal Agreement shall be **<u>amended</u>** to read as follows : |
|  | ***"Margin"*** *means one point eight zero per centum (1.80%) per annum;* |
| b. | with effect from the Effective Date, the following definition in Clause 1.2 (*<u>Definitions</u>*) of the Principal Agreement shall be **<u>amended</u>** to read as follows : |
|  | ***"Maturity Date" means the 27<sup>th</sup> day of December, 2029;*** |
| **c.** | **with effect from the Effective Date, Clause 4.1 (*<u>Repayment</u>*) of the Principal Agreement shall be amended to read as follows:** |

---

*"Subject to any obligation to pay earlier under this Agreement, the Borrower shall, and it is expressly undertaken by the Borrower to, repay the Loan, which as of the date of the First Supplemental Agreement amounts to Fourteen million six hundred ten thousand (US$14,610,000) by (a) sixteen (16) consecutive quarterly Repayment Instalments (the "**Repayment Instalments**" and each a "**Repayment Instalment**") to be repaid on each of the Repayment Dates, so that the first Repayment Instalment is repaid on **27<sup>th</sup> March, 2026** and each of the subsequent ones consecutively falling due for payment on each of the dates falling three (3) months after the immediately preceding Repayment Date with the last (the 16<sup>th</sup>) of such Repayment Instalments falling due for payment on the Maturity Date and (b) a balloon instalment (the "**Balloon Instalment**") in the amount of Nine million five hundred seventy thousand Dollars ($9,570,000) falling due for payment on the Maturity Date; subject to the provisions of this Agreement the amount of each of such Repayment Instalments shall be in the amount of Dollars Three hundred fifteen thousand ($315,000);*

 

 

*<u>provided, that</u> (a) if the last Repayment Date would otherwise fall after the Maturity Date, the last Repayment Date shall be the Maturity Date, (b) there shall be no Repayment Dates after the Maturity Date, (c) on the Maturity Date the Borrower shall also pay to the Lender any and all other moneys then due and payable under this Agreement and the other Finance Documents and (d) if any of the Repayment Instalments shall become due on a day which is not a Banking Day, the due date therefor shall be extended to the next succeeding Banking Day unless such Banking Day falls in the next calendar month in which event such due date shall be the immediately preceding Banking Day.";*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **with effect from the Effective Date, the following new definitions shall be <u>added</u> in alphabetical order in Clause 1.2 *(<u>Definitions</u>)* of the Principal Agreement :** 

 ****

***"First Supplemental Agreement"*** *means the First Supplemental Agreement dated* 26<sup>th</sup> *January, 2026 supplemental to this Agreement executed and made between the Borrower and the Lender, whereby this Agreement has been amended as therein provided;*

 ****

***"Mortgage Amendment"*** *means the amendment No. 1 to the Mortgage, whereby the Mortgage shall be amended as therein provided, executed by the Borrower, as owner of the Vessel, in favour of the Lender, in form satisfactory to the Lender;"*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** **with effect from the Effective Date, two additional paragraph (bb) will be added in Clause 8.1 (*<u>Undertakings</u>*) after paragraph (aa) reading as follows:** 

 ****

---

| | |
|:---|:---|
| ***"(bb)*** | ***<u>Fuel Oil and Consumption Data</u>*** |

---

 

*upon the request of the Lender and at the cost of the Borrower, on or before 31<sup>st</sup> July in each calendar year, supply or procure the supply by the relevant Classification Society (as specified by the Lender) to the Lender of, all ship fuel oil consumption data required to be collected and reported in accordance with Regulation 22A of Annex VI and any Statement of Compliance, together with a Carbon Intensity and Climate Alignment Certificate (if available), in each case relating to the Vessel for the preceding calendar year, for the purposes of calculating the Lender's portfolio climate score.*

*For the purposes of this Sub-Clause (cc) (<u>Fuel Oil and Consumption Data</u>) of this Clause 8.1:*

***" Annex VI" means Annex VI of the Protocol of 1997 (as subsequently amended from time to time) to amend the International Convention for the Prevention of Pollution from Ships 1973 ("MARPOL"), as modified by the Protocol of 1978 relating thereto.***

***" Carbon Intensity and Climate Alignment Certificate" means a certificate from a Recognised Organisation relating to the Vessel and a calendar year setting out:***

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i)***  ***the average efficiency ratio of the Vessel for all voyages performed by it over that calendar year using ship fuel oil consumption data required to be collected and reported in accordance with Regulation 22A of Annex VI in respect of that calendar year; and*** 

***(ii)***  ***the climate alignment of the Vessel for such calendar year:*** 

 

***" Recognised Organisation" means an organisation which is likely to be the Classification Society representing the Vessel's flag state and, for the purposes of this Sub-Clause (cc) (<u>Fuel Oil and Consumption Data</u>) of this Clause 8.1, duly authorised to determine whether the Borrower has complied with regulation 22A of Annex VI.***

 

***" Statement of Compliance" means a Statement of Compliance related to fuel oil consumption pursuant to regulations 6.6 and 6.7 of Annex VI.";***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **with effect from the Effective Date, a new Clause 13.10 will be added at the end of Clause 13 (*<u>Application of moneys, Set-Off, Pro-rata payments and Miscellaneous</u>*) reading as follows:** 

**"*13.10 Evidence***

 

*It is hereby expressly agreed and admitted by the Borrower that abstracts or photocopies of the books of the Lender as well as statements of accounts or a certificate signed by an authorised officer of the Lender shall be conclusive binding and full evidence, save for manifest error, on the Borrower as to the existence and/or the amount of the at any time Outstanding Indebtedness, of any amount due under this Agreement, of the applicable interest rate or default rate as per Clause 3.4 (<u>Default Interest</u>) or any other rate provided for or referred to in this Agreement, the Interest Period, the value of additional securities under Clause 8.2(a) (<u>Security shortfall</u>), the payment or non-payment of any amount. Nevertheless, enforcement procedures or any other court or out-of-court procedure can be commenced by the Lender on the basis of the above mentioned means of evidence including written statements or certificates of the Lender."*

**5.2** **Security Documents** 

**With effect as from the Effective Date the definition *" Security Documents"* shall be deemed to include the Security Documents as amended and/or supplemented in pursuance to the terms hereof and any document or documents (including if the context requires the Loan Agreement) that may now or hereafter be executed as security for the repayment of the Loan, interest thereon and any other moneys payable by the Borrower under the Principal Agreement, this Supplemental Agreement and the Security Documents (as herein defined) as well as for the performance by the Borrower and the other Security Parties (as herein defined) of all obligations, covenants and agreements pursuant to the Principal Agreement, this Supplemental Agreement and/or the Security Documents.**

**5.3** **Construction** 

With effect from the Effective Date all references in the Principal Agreement and the other Finance Documents to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **" *this Agreement* ", "*hereunder* ", "*herein*" and the like and in the Security Documents to the "*Loan Agreement*" shall be construed as references to the Principal Agreement as amended and/or supplemented by this Supplemental Agreement; and** 

**(b)** **" *Mortgage*" shall be construed as references to the Mortgage, as amended and/or supplemented by the Mortgage Amendment.** 

**6.** **RECONFIRMATION** 

**6.1** **Reconfirmation of obligations** 

The Borrower hereby reconfirms its obligations under the Principal Agreement and its compliance with the covenants contained therein, as amended and/or supplemented by this Supplemental Agreement*.*

**6.2** **Acknowledgement** 

Each of the Security Parties acknowledges and agrees, for the avoidance of doubt, that each of the Security Documents to which it is a party and its obligations thereunder, shall remain in full force and effect notwithstanding the amendments made to the Principal Agreement by this Supplemental Agreement, the Mortgage and the deed of covenant supplemental thereto and the waivers and other amendments agreed by the Lender in this Supplemental Agreement.

**7.** **CONTINUANCE OF PRINCIPAL AGREEMENT AND THE SECURITY DOCUMENTS** 

Save for the alterations to the Principal Agreement and the Security Documents made or to be made pursuant to this Supplemental Agreement, and such further modifications (if any) thereto as may be necessary to make the same consistent with the terms of this Supplemental Agreement, the Principal Agreement shall remain in full force and effect and apply to this Supplemental Agreement as well, as if repeated *in extenso* herein, and the security constituted by the Security Documents shall continue to remain valid and enforceable and the Borrower hereby reconfirms its obligations under the Principal Agreement as hereby amended and under the Security Documents to which it is a party.

**8.** **ENTIRE AGREEMENT AND AMENDMENT** 

**8.1** **Entire Agreement** 

The Principal Agreement, the other Security Documents, and this Supplemental Agreement represent the entire agreement among the parties hereto with respect to the subject matter hereof and supersede any prior expressions of intent or understanding with respect to this transaction and may be amended only by an instrument in writing executed by the parties to be bound or burdened thereby.

**8.2** **Supplemental Agreement – Application of Principal Agreement provisions** 

This Supplemental Agreement is supplementary to and incorporated in the Principal Agreement, all terms and conditions whereof, including, but not limited to, provisions on payments, calculation of interest and Events of Default, shall apply to the performance and interpretation of this Supplemental Agreement.

**9.** **COSTS AND EXPENSES** 

**9.1** **Amendment Fee** 

The Borrower shall pay to the Lender an amendment fee in an amount of Twenty four thousand Dollars ($24,000) concurrently with or prior to the signing of this Supplemental Agreement.

**9.2** **Costs and expenses** 

The Borrower hereby covenants and agrees to pay to the Lender upon demand and from time to time all reasonable and documented costs, charges, registration and recording fees, duties and expenses (including legal fees) incurred by the Lender in connection with the negotiation, preparation, execution and enforcement or attempted enforcement of this Supplemental Agreement and any document executed pursuant thereto and/or in preserving or protecting or attempting to preserve or protect the security created hereunder and/or under the Security Documents.

**9.3** **Stamp Duty etc.** 

The Borrower hereby covenants and agrees to pay and discharge all stamp duties, registration and recording fees and charges and any other charges whatsoever and wheresoever payable or due in respect of this Supplemental Agreement, any other Transaction Document and/or any further document executed pursuant hereto.

**10.** **ASSIGNMENT** 

The provisions of Clause 15 *(<u>Assignment, Transfer and Lending Office</u>)* of the Principal Agreement shall apply to this Supplemental Agreement as if the same were set out herein in full.

**11.** **MISCELLANEOUS** 

**11.1** **Incorporation of Loan Agreement provisions** 

Without prejudice to Clauses 6 *(<u>Reconfirmation</u>)*, 7 *(<u>Continuance of Principal Agreement and the Security Documents</u>)* and 8 *(<u>Entire agreement and amendment</u>)* of this Supplemental Agreement, the provisions of Clauses 16 (*<u>Notices and other matters</u>*) and 13.6 (*<u>Severability</u>*) of the Principal Agreement apply to this Supplemental Agreement as well and they are deemed to be repeated as if set forth *in extenso* herein.

**11.2** **Counterparts** 

This Supplemental Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument.

**12.** **LAW AND JURISDICTION** 

**12.1** **Governing Law** 

This Supplemental Agreement and any non-contractual obligations arising out of or in relation to it shall be governed by and construed in accordance with English law and the provisions of Clauses 17 *(<u>Governing Law</u>)* and 18 *(<u>Jurisdiction</u>)* of the Principal Agreement (as hereby amended) shall apply mutatis mutandis to this Supplemental Agreement as if the same were set out herein in full.

**12.2** **Third Party Rights** 

A person who is not a party to this Supplemental 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 Supplemental Agreement.

IN WITNESS whereof the parties hereto have caused this Supplemental Agreement to be duly executed the date first above written.

 

*[Intentionally left blank]*

**<u>EXECUTION PAGE</u>**

---

| | |
|:---|:---|
| **<u>Borrower</u>** |  |
| SIGNED by) |  |
| Mr. Ioannis Chalkias) |  |
| for and on behalf of) |  |
| **DRYTHREE CORP.**,) |  |
| of the Marshall Islands, in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Alexandra Pagoni* |
| *Address:* | *Defteras Merarchias 13* |
|  | *Piraeus, Greece* |
| *Occupation:* | *t. Attorney-at-law* |

---

**<u>LENDER</u>**

---

| | |
|:---|:---|
| SIGNED by) |  |
| Mr. Charalampos Birlis) |  |
| And Mrs. Olga Voutsa) | Attorney-in-fact |
| for and on behalf of) |  |
| **PIRAEUS BANK S.A.**,) |  |
| in the presence of:) | Attorney-in-fact |

---

---

| | |
|:---|:---|
| *Witness:* | |
| *Name:* | *Alexandra Pagoni* |
| *Address:* | *Defteras Merarchias 13* |
|  | *Piraeus, Greece* |
| *Occupation:* | *t. Attorney-at-law* |

---

**ACKNOWLEDGEMENT**

We, **PYXIS TANKERS INC.**, a corporation duly incorporated in the Republic of the Marshall Islands, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Fourteen million six hundred ten thousand (US$14,610,000)** in
 respect of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above
 First Supplemental Agreement, the provisions of the Corporate Guarantee A (as defined therein) executed by us in favour of the Lender
 shall remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended by
 the above First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended),
 and we shall remain liable under the Corporate Guarantee A (as defined therein) for all obligations and liabilities assumed by us
 under the Corporate Guarantee A (as defined therein).

Dated: 26<sup>th</sup> January, 2026

For and on behalf of

**PYXIS TANKERS INC.**

(as Corporate Guarantor A)

Konstantinos Lytras <br> Attorney-in-fact

**ACKNOWLEDGEMENT**

We, **KONKAR SHIPPING AGENCIES S.A.**, a corporation duly incorporated in the Republic of Panama, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Fourteen million six hundred ten thousand (US$14,610,000)** in
 respect of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above
 First Supplemental Agreement, the provisions of the Corporate Guarantee B (as defined therein) executed by us in favour of the Lender
 shall remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended by
 the above First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended),
 and we shall remain liable under the Corporate Guarantee B (as defined therein) for all obligations and liabilities assumed by us
 under the Corporate Guarantee B (as defined therein).

Dated: 26<sup>th</sup> January, 2026

For and on behalf of

**KONKAR SHIPPING AGENCIES S.A.**

(as Corporate Guarantor B)

Konstantinos Lytras <br> Attorney-in-fact

**ACKNOWLEDGEMENT**

We, **Konkar Shipping Agencies S.A.**, a corporation duly incorporated in the Republic of Panama, having an office established in Greece (at 59 K. Karamanli Street, Maroussi 15125, Greece) under laws 378/68, 27/75, 2234/94, 3752/09 and 4150/13 (as amended and in force at the date hereof), hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that notwithstanding the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above First Supplemental Agreement, the provisions of the Manager's Undertaking (as defined therein) executed by us in favour of the Lender shall remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended by the above First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended), and we shall remain liable under the Manager's Undertaking (as defined therein) for all obligations and liabilities assumed by us under the Manager's Undertaking (as defined therein).

Dated: 26<sup>th</sup> January, 2026

For and on behalf of

**Konkar Shipping Agencies S.A.**, of Panama

(as Manager)

Konstantinos Lytras <br> Attorney-in-fact

**ACKNOWLEDGEMENT**

We, **ACCUSHIP MARITIME LTD**, a corporation duly incorporated in the Republic of the Marshall Islands, hereby confirm and acknowledge that we have read and understood the terms and conditions of the above First Supplemental Agreement and agree in all respects to the same and hereby confirm that:

(a) as
 at the date hereof the principal sum of **United States Dollars Fourteen million six hundred ten thousand (US$14,610,000)** in
 respect of the Loan remains outstanding; and

(b) notwithstanding
 the variation to the Principal Agreement contained in Clause 5 *(<u>Variations to the Principal Agreement</u>)* of the above
 First Supplemental Agreement, the provisions of the Shares Pledge (as defined therein) executed by us in favour of the Lender shall
 remain in full force and effect as security of the obligations of the Borrower under the Principal Agreement, as amended by the above
 First Supplemental Agreementand in respect of all sums due to the Lender under the Principal Agreement (as so amended), and we shall
 remain liable under the Shares Pledge (as defined therein) for all obligations and liabilities assumed by us under the Shares Pledge
 (as defined therein).

Dated: 26<sup>th</sup> January, 2026

For and on behalf of

**ACCUSHIP MARITIME LTD**

(as Shareholder)

Konstantinos Lytras <br> Attorney-in-fact

## Exhibit 8.1

**Exhibit 8.1**

**Pyxis Tankers Inc.**

**List of Subsidiaries**

---

| | | |
|:---|:---|:---|
| **Company Name** | **Ownership \*** | **Jurisdiction of Incorporation** |
| Secondone Corporation Ltd. \*\* | 100% | Republic of the Marshall Islands |
| Thirdone Corporation Ltd. \*\* | 100% | Republic of the Marshall Islands |
| Fourthone Corporation Ltd. \*\* | 100% | Republic of the Marshall Islands |
| Sixthone Corp. \*\* | 100% | Republic of the Marshall Islands |
| Seventhone Corp. | 100% | Republic of the Marshall Islands |
| Eighthone Corp. \*\* | 100% | Republic of the Marshall Islands |
| Tenthone | 100% | Republic of the Marshall Islands |
| Eleventhone | 100% | Republic of the Marshall Islands |
| Twelfthone | 100% | Republic of the Marshall Islands |
| Maritime Technologies Corp. | 100% | Delaware, U.S.A. |
| Drykon Maritime Inc. | 60% | Republic of the Marshall Islands |
| Dryone Corp. | 60% | Republic of the Marshall Islands |
| Drytwo Corp. | 100% | Republic of the Marshall Islands |
| Accuship Maritime Ltd. | 60% | Republic of the Marshall Islands |
| Drythree Corp. | 60% | Republic of the Marshall Islands |
| Dryfour Corp. | 100% | Republic of the Marshall Islands |

---

\*Ownership of each subsidiary by Pyxis Tankers Inc.

*\*\* "Pyxis Delta", "Northsea Alpha", "Northsea Beta", "Pyxis Malou" and "Pyxis Epsilon" were sold to unaffiliated third parties on January 13, 2020, January 28, 2022, March 1, 2022, March 23, 2023 and December 15, 2023 respectively.*

## Exhibit 12.1

**Exhibit 12.1**

**<u>CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER</u>**

I, Valentios Valentis, certify that:

1. I have reviewed this Annual Report on Form 20-F of Pyxis Tankers Inc. for the year ended December 31, 2025;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: April 1, 2026

---

| |
|:---|
| */s/ Valentios Valentis* |
| Valentios Valentis |
| Chief Executive Officer (Principal Executive Officer) |

---

## Exhibit 12.2

**Exhibit 12.2**

**<u>CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER</u>**

I, Henry Williams, certify that:

1. I have reviewed this Annual Report on Form 20-F of Pyxis Tankers Inc. for the year ended December 31, 2025;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: April 1, 2026

---

| |
|:---|
| */s/ Henry Williams* |
| Henry Williams |
| Chief Financial Officer and Treasurer |
| (Principal Financial Officer) |

---

## Exhibit 13.1

**Exhibit 13.1**

**PRINCIPAL EXECUTIVE OFFICER CERTIFICATION<br> PURSUANT TO 18 U.S.C. SECTION 1350**

In connection with this Annual Report of Pyxis Tankers Inc. (the "Company") on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission (the "SEC") on or about the date hereof (the "Report"), I, Valentios Valentis, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: April 1, 2026

---

| |
|:---|
| */s/ Valentios Valentis* |
| Valentios Valentis |
| Chief Executive Officer (Principal Executive Officer) |

---

## Exhibit 13.2

**Exhibit 13.2**

**PRINCIPAL FINANCIAL OFFICER CERTIFICATION<br> PURSUANT TO 18 U.S.C. SECTION 1350**

In connection with this Annual Report of Pyxis Tankers Inc. (the "Company") on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission (the "SEC") on or about the date hereof (the "Report"), I, Henry Williams, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: April 1, 2026

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| |
|:---|
| */s/ Henry Williams* |
| Henry Williams |
| Chief Financial Officer and Treasurer |
| (Principal Financial Officer) |

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## Exhibit 15.1

**Exhibit 15.1** 

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in Registration Statement No. 333-278862 on Form F-3 of our report dated April 1, 2026, relating to the financial statements of Pyxis Tankers Inc. appearing in this Annual Report on Form 20-F for the year ended December 31, 2025.

/s/ Deloitte Certified Public Accountants S.A.

Athens, Greece

April 1, 2026

## Exhibit 15.2

**Exhibit 15.2** 

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the registration statement (No. 333-278862) on Form F-3 of our report dated March 28, 2025, with respect to the consolidated financial statements of Pyxis Tankers Inc.

/s/ KPMG Certified Auditors S.A.

Athens, Greece

April 1, 2026

## Exhibit 15.3

**Exhibit 15.3**

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| |
|:---|
| <br> Marsoft BV LLC |
| 50 Milk Street, FL 16 |
| Boston MA 02109, USA |
| ![](ex15-3_001.jpg) |
| Tel +1 (617) 369-7800 |
| www.marsoft.com |

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Henry Williams

Pyxis Tankers Inc.

K. Karamanli 59

Maroussi 15125, Greece

March 27, 2026

Dear Mr. Williams:

Reference is made to the annual report on Form 20-F of Pyxis Tankers Inc. (the "Company") for the fiscal year ended December 31, 2025 (the "Annual Report"). We consent to the incorporation of our name in the Annual Report and to the use of the statistical and analytical information we supplied for the section entitled "Product Tanker and Dry Bulk Shipping Industry" (the "Industry Section"). Our role was limited to the compilation and provision of market data and commentary for the Industry Section pursuant to our Consulting Services Agreement with the Company; we were not involved in the preparation or verification of any other portion of the Annual Report.

With respect to the information provided, we advise you that:

(1) the information accurately reflects our proprietary databases and analytical models as of the dates indicated, subject to the inherent limitations of maritime data collection, including the use of estimates and preliminary figures where complete data is not available;

(2) our data collection methodologies and classification conventions may differ from those of other maritime data providers, and our figures do not purport to capture all transactions in the product tanker and dry bulk shipping markets; and

(3) while we have exercised reasonable care in the compilation and presentation of this information, we do not warrant that it is free from error or omission.

We consent to the filing of this letter as an exhibit to the Annual Report and any subsequent registration statement on Form F-3 into which the Annual Report is incorporated by reference.

Best regards,

Ryan Uljua, CAIA

Vice President

Marsoft BV LLC