Document:

exv10w1

Exhibit 10.1

 

Registration Rights Agreement

Dated as of April 12, 2011

among

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NAVIOS LOGISTICS FINANCE (US) INC.

and

Merrill Lynch, Pierce, Fenner & Smith Incorporated

J.P. Morgan Securities LLC

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

S. Goldman Advisors LLC

 

 

 

REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
April 12, 2011 by and among NAVIOS SOUTH AMERICAN LOGISTICS INC., a Marshall Islands corporation
(the “Company”), NAVIOS LOGISTICS FINANCE (US) INC., a Delaware corporation (“Navios
Finance” and, together with the Company, the “Co-Issuers”), each of the guarantors
listed in Schedule A attached hereto (the “Guarantors”), and Merrill Lynch, Pierce,
Fenner & Smith Incorporated (“Merrill”) and each other Initial Purchaser set forth on
Schedule B attached hereto collectively, the “Initial Purchasers”), for whom
Merrill is acting as representative (the “Representative”).

          This Agreement is made pursuant to the Purchase Agreement, dated as of April 12, 2011, among
the Co-Issuers, the Guarantors and the Initial Purchasers (the “Purchase Agreement”), which
provides for the sale by the Co-Issuers to the Initial Purchasers of an aggregate of $200,000,000
principal amount of the Co-Issuers’ 91/4% Senior Notes due 2019 (the
“Notes”), unconditionally guaranteed on a senior basis by each of the Guarantors (the
“Guarantees” and together with the Notes, the “Securities”). In order to induce
the Initial Purchasers to enter into the Purchase Agreement, the Co-Issuers and the Guarantors have
agreed to provide to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement. The execution of this Agreement is a condition to
the closing under the Purchase Agreement.

          In consideration of the foregoing, the parties hereto agree as follows:

          1. Definitions.

          As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

          “1933 Act” shall mean the Securities Act of 1933, as amended from time to time.

          “1934 Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time.

          “Additional Interest” shall have the meaning set forth in Section 2.5 hereof,

          “Business Day” shall mean any day other than a Saturday, Sunday, U.S. Federal holiday
or a day on which banking institutions or trust companies located in the city of New York, New
York, are authorized or obligated by law or executive order to close.

          “Closing Date” shall mean the day of the Closing Time as defined in the Purchase
Agreement.

          “Co-Issuer” shall have the meaning set forth in the preamble.

          “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

 

 

          “Depositary” shall mean The Depository Trust Company, or any other depositary
appointed by the Co-Issuers, provided, however, that such depositary must have an address in the
Borough of Manhattan, in the City of New York.

          “Effectiveness Period” shall have the meaning set forth in Section 2.2 hereof.

          “Exchange Offer” shall mean the exchange offer by the Co-Issuers and the Guarantors of
Exchange Securities for Registrable Securities pursuant to Section 2.1 hereof.

          “Exchange Offer Registration” shall mean a registration under the 1933 Act effected
pursuant to Section 2.1 hereof.

          “Exchange Offer Registration Statement” shall mean an exchange offer registration
statement on Form F-4 (or, if applicable, on another appropriate form), and all amendments and
supplements to such registration statement, including the Prospectus contained therein, all
exhibits thereto and all documents incorporated by reference therein. For the avoidance of doubt,
all guarantors in respect of the Notes (regardless of whether each such person is a Guarantor on
the date hereof) shall be included as registrants in any Exchange Offer Registration Statement.

          “Exchange Period” shall have the meaning set forth in Section 2.1 hereof.

          “Exchange Securities” shall mean the 91/4% Senior Notes due
2019, issued by the Co-Issuers under the Indenture containing terms identical to the Securities in
all material respects (except that the additional interest rate, restrictions on transfers and
restrictive legends provisions thereof shall be eliminated), to be offered to Holders of Securities
in exchange for Securities pursuant to the Exchange Offer.

          “Guarantor” shall have the meaning set forth in the preamble and shall also include
any additional guarantors in respect of the Notes (regardless of whether each such person is listed
as a Guarantor on Schedule A on the date hereof).

          “Holder” shall mean an Initial Purchaser, for so long as it owns any Registrable
Securities, and each of its successors, assigns and direct and indirect transferees who become
registered owners of Registrable Securities under the Indenture and each Participating
Broker-Dealer that holds Exchange Securities for so long as such Participating Broker-Dealer is
required to deliver a prospectus meeting the requirements of the 1933 Act in connection with any
resale of such Exchange Securities.

          “Indenture” shall mean the Indenture relating to the Securities, dated as of April 12,
2011, among the Co-Issuers, the Guarantors and Wells Fargo Bank, National Association, as trustee,
as the same may be amended, supplemented, waived or otherwise modified from time to time in
accordance with the terms thereof.

          “Initial Purchaser” or “Initial Purchasers” shall have the meaning set forth
in the preamble.

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          “Majority Holders” shall mean the Holders of a majority of the aggregate principal
amount of outstanding Registrable Securities; provided that whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required hereunder, Registrable
Securities held by either Co-Issuer, the Guarantors and any other guarantors of the Notes or any
Affiliate (as defined in the Indenture) of the Co-Issuers or the Guarantors (or any other guarantor
of the Notes) shall be disregarded in determining whether such consent or approval was given by the
Holders of such required percentage amount.

          “Notes” shall have the meaning set forth in the preamble.

          “Participating Broker-Dealer” shall mean any of Merrill, J.P. Morgan Securities LLC,
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and S. Goldman Advisors LLC, and
any other broker-dealer which makes a market in the Securities and exchanges Registrable Securities
in the Exchange Offer for Exchange Securities.

          “Person” shall mean an individual, partnership (general or limited), corporation,
limited liability company, trust or unincorporated organization, or a government or agency or
political subdivision thereof.

          “Private Exchange” shall have the meaning set forth in Section 2.1 hereof.

          “Private Exchange Securities” shall have the meaning set forth in Section 2.1 hereof.

          “Prospectus” shall mean the prospectus included in a Registration Statement, including
any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including any such prospectus supplement with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to a prospectus, including post-effective amendments, and in each
case including all material incorporated by reference therein.

          “Purchase Agreement” shall have the meaning set forth in the preamble.

          “Registrable Securities” shall mean the Securities and, if issued, the Private
Exchange Securities; provided that, such Securities and, if issued, such Private Exchange
Securities shall cease to be Registrable Securities on the earliest to occur of (i) the date on
which a Registration Statement with respect to such Securities or such Private Exchange Securities
has become effective under the 1933 Act and such Securities or such Private Exchange Securities
have been exchanged or disposed of pursuant to such Registration Statement, (ii) the date on which
such Securities or Private Exchange Securities shall have ceased to be outstanding or (iii) the
date on which the Exchange Offer is consummated (except in the case of Private Exchange Securities
and Securities purchased from the Co-Issuers and continued to be held by the Initial Purchasers).

          “Registration Default” shall have the meaning set forth in Section 2.5 hereof.

          “Registration Expenses” shall mean any and all expenses incident to or incurred in
connection with the performance by the Co-Issuers and the Guarantors of, or compliance by

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the Co-Issuers and the Guarantors with, this Agreement, including without limitation: (i) all SEC,
stock exchange or Financial Industry Regulatory Authority, Inc. (“FINRA”) registration and
filing fees, including, if applicable, the fees and expenses of any “qualified independent
underwriter” (and its counsel) that is required to be retained by any holder of Registrable
Securities in accordance with the rules and regulations of FINRA, (ii) all fees and expenses
incurred in connection with compliance with state securities or blue sky laws and compliance with
the rules of FINRA (including reasonable fees and disbursements of counsel for any underwriters or
Holders in connection with blue sky qualification of any of the Exchange Securities or Registrable
Securities and any filings with FINRA), (iii) all expenses of any Persons in preparing or assisting
in preparing, word processing, printing and distributing any Registration Statement, any
Prospectus, any amendments or supplements thereto, any underwriting agreements, securities sales
agreements and other documents relating to the performance of and compliance with this Agreement,
(iv) all fees and expenses incurred in connection with the listing, if any, of any of the
Registrable Securities on any securities exchange or exchanges, (v) all rating agency fees, (vi)
the fees and disbursements of counsel for the Co-Issuers and the Guarantors and of the independent
public accountants of the Co-Issuers and the Guarantors, including the expenses of any special
audits or “cold comfort” letters required by or incident to such performance and compliance, (vii)
the fees and expenses of the Trustee, and any escrow agent or custodian, (viii) the reasonable fees
and expenses of the Initial Purchasers in connection with the Exchange Offer, (ix) in the case of a
Shelf Registration Statement, the reasonable fees and disbursements of one special counsel (and any
reasonably requested local counsel) representing the Holders of Registrable Securities (which
counsel shall be elected by the Majority Holders and which counsel may also be the counsel for the
Initial Purchasers) and (x) any fees and disbursements of the underwriters customarily required to
be paid by issuers or sellers of securities and the fees and expenses of any special experts
retained by the Co-Issuers and the Guarantors in connection with any Registration Statement, but
excluding underwriting discounts and commissions and transfer taxes, if any, relating to the sale
or disposition of Registrable Securities by a Holder.

          “Registration Statement” shall mean any registration statement of the Co-Issuers and
the Guarantors which covers any of the Exchange Securities or Registrable Securities pursuant to
the provisions of this Agreement, and all amendments and supplements to any such Registration
Statement, including post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference therein.

          “SEC” shall mean the Securities and Exchange Commission or any successor agency or
government body performing the functions currently performed by the United States Securities and
Exchange Commission.

          “Shelf Registration” shall mean a registration effected pursuant to Section 2.2
hereof.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the
Co-Issuers and the Guarantors pursuant to the provisions of Section 2.2 of this Agreement which
covers all of the Registrable Securities or all of the Private Exchange Securities on an
appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the
SEC, and all amendments and supplements to such registration statement, including post-effective

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amendments, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein. For the avoidance of doubt, all guarantors in respect
of the Notes (regardless of whether each such person is a Guarantor on the date hereof) shall be
included as registrants in any Shelf Registration Statement.

          “Shelf Suspension Period” shall have the meaning set forth in Section 2.2 hereof.

          “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

          2. Registration Under the 1933 Act.

          2.1. Exchange Offer. The Co-Issuers and the Guarantors shall, for the benefit of the
Holders, at the Co-Issuers’ and the Guarantors’ cost, (A) prepare and file with the SEC no later
than 270 days after the Closing Date, an Exchange Offer Registration Statement on an appropriate
form under the 1933 Act with respect to a proposed Exchange Offer and the issuance and delivery to
the Holders, in exchange for the Registrable Securities (other than Private Exchange Securities),
of a like principal amount of Exchange Securities, (B) use their commercially reasonable efforts to
cause the Exchange Offer Registration Statement to be declared effective, under the 1933 Act not
later than 365 days after the Closing Date, (C) use their commercially reasonable efforts to keep
the Exchange Offer Registration Statement effective until the closing of the Exchange Offer, (D)
use their commercially reasonable efforts to cause the Exchange Offer to be consummated not later
than 400 days after the Closing Date, and (E) upon the effectiveness of the Exchange Offer
Registration Statement, promptly commence the Exchange Offer, it being the objective of such
Exchange Offer to enable each Holder eligible and electing to exchange Registrable Securities for
Exchange Securities (provided that such Holder (a) is not an affiliate of either Co-Issuer within
the meaning of Rule 405 under the 1933 Act, (b) is not a broker-dealer tendering Registrable
Securities acquired directly from the Co-Issuers for its own account, (c) acquired the Exchange
Securities in the ordinary course of such Holder’s business and (d) has no arrangements or
understandings with any Person to participate in the Exchange Offer for the purpose of distributing
the Exchange Securities) to transfer such Exchange Securities from and after their receipt without
any limitations or restrictions under the 1933 Act and under state securities or blue sky laws.

          In connection with the Exchange Offer, the Co-Issuers and the Guarantors shall:

     (a)  mail as promptly as reasonably practicable to each Holder a copy of the Prospectus
forming part of the Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents;

     (b) keep the Exchange Offer open for acceptance for a period of not less than 20
Business Days after the date notice thereof is mailed to the Holders (or longer if required
by applicable law) (such period referred to herein as the “Exchange Period”);

     (c) utilize the services of the Depositary for the Exchange Offer;

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     (d) permit Holders to withdraw tendered Registrable Securities at any time prior to
5:00 p.m. (Eastern time), on the last Business Day of the Exchange Period, by sending to the
institution specified in the notice, a telegram, telex, facsimile transmission or letter
setting forth the name of such Holder, the principal amount of Registrable Securities
delivered for exchange, and a statement that such Holder is withdrawing such Holder’s
election to have such Securities exchanged;

     (e) notify each Holder that any Registrable Security not tendered will remain
outstanding and continue to accrue interest, but will not retain any rights under this
Agreement (except in the case of the Initial Purchasers and Participating Broker-Dealers as
provided herein); and

     (f) otherwise comply in all respects with all applicable laws relating to the Exchange
Offer.

          A Holder that wishes to exchange Registrable Securities in the Exchange Offer shall be
required to (a) represent that (i) it is not an affiliate of either Co-Issuer within the meaning of
Rule 405 under the 1933 Act, (ii) all Exchange Securities to be received by it shall be acquired in
the ordinary course of its business and (iii) at the time of the consummation of the Exchange Offer
it shall have no arrangement or understanding with any person to participate in the distribution
(within the meaning of the 1933 Act) of the Exchange Securities and (b) make such other
representations as may be reasonably necessary under applicable SEC rules, regulations or
interpretations.

          If such Holder is a broker-dealer that will receive Exchange Securities for its own account in
exchange for Registrable Securities that were acquired as a result of market-making or other
trading activities, such broker-dealer will be required to acknowledge that it will deliver a
Prospectus in connection with any resale of the Exchange Securities (and the Co-Issuers hereby
agree and undertake to provide any such broker-dealer with such number of Prospectuses as such
broker-dealer may reasonably request for such purpose).

          If, prior to consummation of the Exchange Offer, the Initial Purchasers hold any Securities
acquired by them and having the status of an unsold allotment in the initial distribution, the
Co-Issuers upon the request of any Initial Purchaser shall, simultaneously with the delivery of the
Exchange Securities in the Exchange Offer, issue and deliver to such Initial Purchaser in exchange
(the “Private Exchange”) for the Securities held by such Initial Purchaser, a like
principal amount of debt securities of the Co-Issuers on a senior secured basis, that are identical
to the Exchange Securities, except that such securities shall bear appropriate transfer
restrictions (the “Private Exchange Securities”).

          The Exchange Securities and the Private Exchange Securities shall be issued under (i) the
Indenture or (ii) an indenture identical in all material respects to the Indenture and which, in
either case, has been qualified under the Trust Indenture Act of 1939, as amended (the
“TIA”), or is exempt from such qualification and shall provide that the Exchange Securities
shall not be subject to the transfer restrictions or “Additional Interest” provisions set forth in
the Indenture but that the Private Exchange Securities shall be subject to such transfer
restrictions.

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The Indenture or such indenture shall provide that the Exchange Securities, the
Private Exchange Securities and the Securities shall vote and consent together on all matters as
one class and that none of the Exchange Securities, the Private Exchange Securities or the
Securities will have the right to vote or consent as a separate class on any matter. The Private
Exchange Securities shall be of the same series as and the Co-Issuers shall use all commercially
reasonable efforts to have the Private Exchange Securities bear the same CUSIP number as the
Exchange Securities, if at any time the same is possible. The Co-Issuers shall not have any
liability under this Agreement solely as a result of such Private Exchange Securities not bearing
the same CUSIP number as the Exchange Securities.

          As soon as reasonably practicable after the close of the Exchange Offer and/or the Private
Exchange, as the case may be, the Co-Issuers shall:

     (i) accept for exchange all Registrable Securities duly tendered and not validly
withdrawn pursuant to the Exchange Offer in accordance with the terms of the Exchange Offer
Registration Statement and the letter of transmittal which shall be an exhibit thereto;

     (ii) accept for exchange all Securities properly tendered pursuant to the Private
Exchange;

     (iii) deliver, or cause to be delivered, to the Trustee for cancellation all
Registrable Securities so accepted for exchange; and

     (iv) cause the Trustee promptly to authenticate and deliver Exchange Securities or
Private Exchange Securities, as the case may be, to each Holder of Registrable Securities so
accepted for exchange in a principal amount equal to the principal amount of the Registrable
Securities of such Holder so accepted for exchange.

          Interest on each Exchange Security and Private Exchange Security will accrue from the last
date on which interest was paid on the Registrable Securities surrendered in exchange therefor or,
if no interest has been paid on the Registrable Securities, from the date of original issuance.
The Exchange Offer and the Private Exchange shall not be subject to any conditions, other than (i)
that the Exchange Offer or the Private Exchange, or the making of any exchange by a Holder, does
not violate applicable law or any applicable interpretation of the staff of the SEC, (ii) the due
tendering of Registrable Securities in accordance with the Exchange Offer and the Private Exchange,
(iii) that each Holder of Registrable Securities exchanged in the Exchange Offer shall have
represented that all Exchange Securities to be received by it shall be acquired in the ordinary
course of its business and that at the time of the consummation of the Exchange Offer it shall have
no arrangement or understanding with any person to participate in the distribution (within the
meaning of the 1933 Act) of the Exchange Securities and shall have made such other representations
as may be reasonably necessary under applicable SEC rules, regulations or interpretations to render
the use of Form F-4 or other appropriate form under the 1933 Act available and (iv) that no action
or proceeding shall have been instituted or threatened in any court or by or before any governmental agency with respect to the Exchange Offer or the
Private Exchange which, in the Co-Issuers’ judgment, would reasonably be expected to impair

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the ability of the Co-Issuers to proceed with the Exchange Offer or the Private Exchange. If the
Co-Issuers determine in their reasonable judgment that any of the foregoing conditions are not
satisfied, the Co-Issuers may (a) refuse to accept any Registrable Securities and return all
tendered Registrable Securities to the tendering Holders, (b) extend the Exchange Offer and retain
all Registrable Securities tendered before the expiration of the Exchange Offer, subject, however,
to the rights of holders to withdraw those Registrable Securities, or (c) waive the unsatisfied
conditions with respect to the Exchange Offer or the Private Exchange and accept all properly
tendered Registrable Securities that have not been withdrawn (unless to do so could reasonably be
expected to materially and adversely affect one or more tendering Holders in its capacity as such);
provided that the foregoing shall not limit the right of Holders to receive, or the obligation of
the Co-Issuers to pay, Additional Interest as provided by Section 2.5. The Co-Issuers shall inform
the Initial Purchasers of the names and addresses of the Holders to whom the Exchange Offer is
made, and the Initial Purchasers shall have the right to contact such Holders and otherwise
facilitate the tender of Registrable Securities in the Exchange Offer.

          2.2. Shelf Registration. If, (i) because of any changes in law, SEC rules or
regulations or applicable interpretations thereof by the staff of the SEC, the Co-Issuers are not
permitted to file the Exchange Offer Registration Statement or to consummate the Exchange Offer as
contemplated by Section 2.1 hereof, (ii) for any other reason the Exchange Offer Registration
Statement is not declared effective on or prior to the 365th day after the Closing Date, or the
Exchange Offer is not consummated on or prior to the 400th day after the Closing Date, (iii) upon
the reasonable request of any of the Initial Purchasers that holds Securities or (iv) any Holder of
Securities is not permitted to participate in the Exchange Offer or does not receive fully
tradeable Exchange Securities pursuant to the Exchange Offer, then, in case of each of clauses (i)
through (iv) (each event described in clauses (i) through (iv), a “Shelf Triggering
Event”), the Co-Issuers and the Guarantors shall, at their cost:

     (a) file with the SEC, and thereafter shall use their commercially reasonable efforts
to cause to be declared effective under the 1933 Act, no later than the 365th day after the
occurrence of a Shelf Triggering Event, a Shelf Registration Statement relating to the offer
and sale of the Registrable Securities by the Holders from time to time in accordance with
the methods of distribution elected by the Majority Holders participating in the Shelf
Registration and set forth in such Shelf Registration Statement.

     (b) use their commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective in order to permit the Prospectus forming part thereof to be usable
by Holders for a period of one year from the date the Shelf Registration Statement is
declared effective by the SEC, or for such shorter period that will terminate when all
Registrable Securities covered by the Shelf Registration Statement have been sold pursuant
to the Shelf Registration Statement or cease to be outstanding or otherwise to be
Registrable Securities (the “Effectiveness Period”); provided, however, that the
Effectiveness Period in respect of the Shelf Registration Statement shall be extended to the
extent required to permit dealers to comply with the applicable prospectus delivery requirements of Rule 174 under the 1933 Act and as otherwise provided herein. Notwithstanding
anything to the contrary in this Agreement, at any time, the Co-Issuers and the Guarantors
may delay the filing of the Shelf Registration Statement or delay or suspend

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the effectiveness thereof, for a reasonable period of time, but not in excess of 90 consecutive
days nor more than three (3) times during any twelve-month period (each, a “Shelf
Suspension Period”), if (x) the Company’s board of directors determines reasonably and
in good faith that because of valid business reasons (not including avoidance of the
Co-Issuers’ and the Guarantors’ obligations hereunder), including without limitation
proposed or pending corporate developments and similar events or because of filings with the
SEC, it is in the best interests of the Co-Issuers or the Guarantors to delay such filing or
suspend such effectiveness and (y) the Co-Issuers provide prior written notice of such
suspension to the Holders (which notice shall not be required to specify the nature of the
event giving rise to the suspension).

     (c) notwithstanding any other provisions hereof, use their commercially reasonable
efforts to ensure that (i) any Shelf Registration Statement and any amendment thereto and
any Prospectus forming part thereof and any supplement thereto complies in all material
respects with the 1933 Act and the rules and regulations thereunder, (ii) any Shelf
Registration Statement and any amendment thereto does not, when it becomes effective,
contain an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading and (iii) any
Prospectus forming part of any Shelf Registration Statement, and any supplement to such
Prospectus (as amended or supplemented from time to time), does not include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements, in light of the circumstances under which they were made, not misleading.

          The Co-Issuers and the Guarantors shall not permit any securities other than Registrable
Securities (and any Additional Notes issued under (and as defined in) the Indenture) to be included
in the Shelf Registration Statement. The Co-Issuers and the Guarantors further agree, if
necessary, to supplement or amend the Shelf Registration Statement, as required by Section 3(b)
below, and to furnish to the Holders of Registrable Securities copies of any such supplement or
amendment promptly after its being used or filed with the SEC.

          2.3. Expenses. The Co-Issuers and the Guarantors shall pay all Registration Expenses
in connection with the registration pursuant to Section 2.1 or 2.2. Each Holder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

          2.4. Effectiveness.

          (a) For purposes of Section 5.7, subject to the right of the Co-Issuers to effect a Shelf
Suspension Period as set forth in Section 2.2, the Co-Issuers and the Guarantors will be deemed not
have used their commercially reasonable efforts to cause the Exchange Offer Registration Statement
or the Shelf Registration Statement, as the case may be, to become, or to remain, effective during the requisite period if the Co-Issuers or any Guarantor voluntarily
takes any action that would, or omits to take any commercially practicable action which omission
would, result in any such Registration Statement not being declared effective or in the Holders of
Registrable Securities covered thereby not being able to exchange or offer and sell such Registrable

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Securities during that period as and to the extent contemplated hereby, unless such
action is required by applicable law.

          (b) An Exchange Offer Registration Statement pursuant to Section 2.1 hereof or a Shelf
Registration Statement pursuant to Section 2.2 hereof will not be deemed to have become effective
unless it has been declared effective by the SEC; provided, however, that if, after it has been
declared effective, the offering of Registrable Securities pursuant to an Exchange Offer
Registration Statement or a Shelf Registration Statement is interfered with by any stop order,
injunction or other order or requirement of the SEC or any other governmental agency or court, such
Registration Statement will be deemed not to have become effective during the period of such
interference, until the offering of Registrable Securities pursuant to such Registration Statement
may legally resume.

          2.5. Additional Interest. In the event that (a) the Exchange Offer Registration
Statement is not filed with the SEC on or prior to the 270th day after the Closing Date, (b) the
Exchange Offer Registration Statement has not been declared effective on or prior to the 365th day
after the Closing Date, (c) the Exchange Offer is not consummated on or prior to the 400th day
after the Closing Date, or (d) the Co-Issuers are required by Section 2.2 to file a Shelf
Registration Statement, and the Shelf Registration Statement, if required, is not declared
effective on or prior to the 365th day following a Shelf Triggering Event (each such event referred
to in clauses (a) through (d) above, a “Registration Default”), the interest rate borne by
the Securities shall be increased (“Additional Interest”) by 0.25% per annum upon the
occurrence of each Registration Default, which rate will increase by an additional 0.25% per annum
for each subsequent 90-day period that such Additional Interest continues to accrue under any such
circumstance, provided that the maximum aggregate increase in the interest rate will in no event
exceed 1.00% per annum in each case until the earlier of the date all Registration Defaults are
cured, at which time the accrual of Additional Interest will cease and the interest rate will
revert to the original rate. Notwithstanding the foregoing, a Holder of Registrable Securities who
participated or could have participated in a consummated Exchange Offer shall not, subsequent to
the consummation of such Exchange Offer in accordance with the terms of this Agreement, be entitled
to Additional Interest with respect to any failure with respect to a Shelf Registration Statement.
Following the cure of all Registration Defaults, the accrual of Additional Interest with respect to
Registration Defaults will cease.

          If the Shelf Registration Statement is unusable by the Holders for any reason, and the
aggregate number of days in any consecutive twelve-month period for which the Shelf Registration
Statement shall not be usable exceeds 45 days in the aggregate (other than as part of a permitted
Shelf Suspension Period), then the interest rate borne by the Securities will be increased by 0.25%
per annum of the principal amount of the Securities for the first 90-day period (or portion
thereof) beginning on the 45th such date that such Shelf Registration Statement ceases to be usable
in such twelve-month period (other than as part of a permitted Shelf Suspension
Period), which rate shall be increased by an additional 0.25% per annum of the principal
amount of the Securities at the beginning of each subsequent 90-day period, provided that the
maximum aggregate increase in the interest rate will in no event exceed 1.00% per annum. Any
amounts payable under this paragraph shall also be deemed “Additional Interest” for purposes of
this Agreement. Upon the Shelf Registration Statement once again becoming usable, the accrual of

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Additional Interest will cease and the interest rate borne by the Notes will be reduced to the
original interest rate if the Co-Issuers are otherwise in compliance with this Agreement at such
time. Additional Interest shall be computed based on the actual number of days elapsed in each
90-day period in which the Shelf Registration Statement is unusable.

          Additional Interest shall not accrue or be payable for more than one outstanding Registration
Default pursuant to the two preceding paragraphs at any given time.

          The Co-Issuers shall notify the Trustee within three Business Days after each and every date
on which an event occurs in respect of which Additional Interest would be required to be paid,
notwithstanding the application of the immediately preceding sentence (an “Event Date”).
Additional Interest shall be paid by depositing with the Trustee, in trust, for the benefit of the
Holders of Registrable Securities, on or before the applicable semiannual interest payment date,
immediately available funds in sums sufficient to pay the Additional Interest then due. The
Additional Interest due shall be payable on each interest payment date to the record Holder of
Registrable Securities entitled to receive the interest payment to be paid on such date as set
forth in the Indenture. Each obligation to pay Additional Interest shall be deemed to accrue from
and including the day following the applicable Event Date.

          3. Registration Procedures.

          In connection with the obligations of the Co-Issuers and the Guarantors with respect to
Registration Statements pursuant to Sections 2.1 and 2.2 hereof, the Co-Issuers and the Guarantors
shall:

     (a) prepare and file with the SEC a Registration Statement, within the relevant time
period specified in Section 2, on the appropriate form under the 1933 Act, which form (i)
shall be selected by the Co-Issuers, (ii) shall, in the case of a Shelf Registration, be
available for the sale of the Registrable Securities by the selling Holders thereof, (iii)
shall comply as to form in all material respects with the requirements of the applicable
form and include or incorporate by reference all financial statements required by the SEC to
be filed therewith or incorporated by reference therein, and (iv) shall comply in all
respects with the requirements of Regulation S-T under the 1933 Act, and use their
commercially reasonable efforts to cause such Registration Statement to become effective and
remain effective in accordance with Section 2 hereof;

     (b) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary under applicable law to keep such Registration
Statement effective for the applicable period in accordance with Section 2 hereof; and cause
each Prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and comply with the provisions of the 1933 Act,
the 1934 Act and the rules and regulations thereunder applicable to them with respect to the
disposition of all securities covered by each Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the selling
Holders thereof (including sales by any Participating Broker-Dealer);

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     (c) in the case of a Shelf Registration, (i) notify each Holder of Registrable
Securities for which the Co-Issuers have information, at least five Business Days prior to
filing, that a Shelf Registration Statement with respect to the Registrable Securities is
being filed and advising such Holders that the distribution of Registrable Securities will
be made in accordance with the method selected by the Majority Holders participating in the
Shelf Registration; (ii) furnish to each Holder of Registrable Securities and to each
underwriter of an underwritten offering of Registrable Securities, if any, without charge,
as many copies of each Prospectus, including each preliminary Prospectus, and any amendment
or supplement thereto and such other documents as such Holder or underwriter may reasonably
request, including financial statements and schedules and, if the Holder so requests, all
exhibits in order to facilitate the public sale or other disposition of the Registrable
Securities (for the avoidance of doubt, any such supplement or amendment electronically
filed with the SEC on the EDGAR system shall be deemed furnished to the Holders of
Registrable Securities); and (iii) hereby consent to the use of the Prospectus or any
amendment or supplement thereto by each of the selling Holders of Registrable Securities in
accordance with applicable law in connection with the offering and sale of the Registrable
Securities covered by the Prospectus or any amendment or supplement thereto;

     (d) use their commercially reasonable efforts to register or qualify the Registrable
Securities under all applicable state securities or “blue sky” laws of such jurisdictions as
any Holder of Registrable Securities covered by a Registration Statement and each
underwriter of an underwritten offering of Registrable Securities shall reasonably request
by the time the applicable Registration Statement is declared effective by the SEC, and do
any and all other acts and things which may be reasonably necessary or advisable to enable
each such Holder and underwriter to consummate the disposition in each such jurisdiction of
such Registrable Securities owned by such Holder; provided, however, that neither the
Co-Issuers nor any Guarantor shall be required to (i) qualify as a foreign corporation or as
a dealer in securities in any jurisdiction where it is not then so qualified or would not
otherwise be required to qualify but for this Section 3(d), or (ii) take any action which
would subject it to general service of process or taxation in any such jurisdiction where it
is not then so subject;

     (e) notify promptly each Holder of Registrable Securities under a Shelf Registration
for which the Co-Issuers have information, or any Participating Broker-Dealer who has
notified the Co-Issuers that it is utilizing the Exchange Offer Registration Statement as
provided in paragraph (f) below, and, if requested by such Holder or Participating
Broker-Dealer, confirm such advice in writing promptly (i) when a Registration Statement has
become effective and when any post-effective amendments and supplements
thereto become effective, (ii) of any request by the SEC or any state securities
authority for post-effective amendments and supplements to a Registration Statement and
Prospectus or for additional information after the Registration Statement has become
effective, (iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) in the case of a Shelf Registration, if, between the
effective date of a Registration Statement and the closing of any sale of Registrable
Securities covered thereby, the representations and warranties of the Co-Issuers and the
Guarantors

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contained in any underwriting agreement, securities sales agreement or other
similar agreement, if any, relating to the offering cease to be true and correct in all
material respects (or, in the case of any representation or warranty that by its terms is
qualified by reference to materiality, a material adverse effect or any term or concept of
similar import, such representation or warranty ceases to be true in all respects), (v) of
the happening of any event or the discovery of any facts during the period a Shelf
Registration Statement is effective which makes any statement made in such Registration
Statement or the related Prospectus untrue in any material respect or which requires the
making of any changes in such Registration Statement or Prospectus in order to make the
statements therein not misleading, (vi) of the receipt by the Co-Issuers of any notification
with respect to the suspension of the qualification of the Registrable Securities or the
Exchange Securities, as the case may be, for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose and (vii) of any determination by the
Co-Issuers that a post-effective amendment to such Registration Statement would be
appropriate;

     (f) (A) in the case of the Exchange Offer Registration Statement (i) include in the
Exchange Offer Registration Statement a section entitled “Plan of Distribution” which
section shall be reasonably acceptable to the Representative on behalf of the Participating
Broker-Dealers, and which shall contain a summary statement of the positions taken or
policies made by the staff of the SEC with respect to the potential “underwriter” status of
any broker-dealer that holds Registrable Securities acquired for its own account as a result
of market-making activities or other trading activities and that will be the beneficial
owner (as defined in Rule 13d-3 under the 1934 Act) of Exchange Securities to be received by
such broker-dealer in the Exchange Offer, whether such positions or policies have been
publicly disseminated by the staff of the SEC or such positions or policies, in the
reasonable judgment of the Representative on behalf of the Participating Broker-Dealers and
their counsel, represent the prevailing views of the staff of the SEC, including a statement
that any such broker-dealer who receives Exchange Securities for Registrable Securities
pursuant to the Exchange Offer may be deemed a statutory underwriter and must deliver a
prospectus meeting the requirements of the 1933 Act in connection with any resale of such
Exchange Securities, (ii) furnish to each Participating Broker-Dealer who has delivered to
the Co-Issuers the notice referred to in Section 3(e), without charge, as many copies of
each Prospectus included in the Exchange Offer Registration Statement, including any
preliminary prospectus, and any amendment or supplement thereto, as such Participating
Broker-Dealer may reasonably request, (iii) hereby consent to the use of the Prospectus
forming part of the Exchange Offer Registration Statement or any amendment or supplement
thereto, by any Person subject to the prospectus delivery requirements of the SEC, including all Participating Broker-Dealers, in connection with
the sale or transfer of the Exchange Securities covered by the Prospectus or any amendment
or supplement thereto, and (iv) include in the Prospectus forming part of the Exchange Offer
Registration Statement (and in any transmittal letter or similar document to be executed by
an exchange offeree in order to participate in the Exchange Offer): (x) the following
provision:

	 	 	“If the exchange offeree is a broker-dealer holding Registrable Securities
acquired for its own account as a result of market-making activities or

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	 	 	other trading activities, it will deliver a prospectus meeting the
requirements of the Securities Act of 1933, as amended, in connection with
any resale of Exchange Securities received in respect of such Registrable
Securities pursuant to the Exchange Offer”; and

(y) a statement to the effect that by a broker-dealer making the acknowledgment described in
clause (x) and by delivering a Prospectus in connection with the exchange of Registrable
Securities, the broker-dealer will not be deemed to admit that it is an underwriter within
the meaning of the 1933 Act;

     (B) to the extent any Participating Broker-Dealer participates in the Exchange Offer,
the Co-Issuers and the Guarantors (to the extent customary for such a transaction) shall use
their reasonable best efforts to cause to be delivered at the request of an entity
representing the Participating Broker-Dealers (which entity shall be one of the Initial
Purchasers, unless it elects not to act as such representative) only one, if any, “cold
comfort” letter with respect to the Prospectus in the form existing on the last date for
which exchanges are accepted pursuant to the Exchange Offer and with respect to each
subsequent amendment or supplement, if any, effected during the period specified in clause
(C) below; and

     (C) to the extent any Participating Broker-Dealer participates in the Exchange Offer,
the Co-Issuers and the Guarantors shall use their best efforts to maintain the effectiveness
of the Exchange Offer Registration Statement for a period of 180 days following the closing
of the Exchange Offer;

     (g) (i) in the case of an Exchange Offer, furnish counsel for the Initial Purchasers
and (ii) in the case of a Shelf Registration, furnish counsel for the Holders of Registrable
Securities copies of any comment letters received from the SEC or any other request by the
SEC or any state securities authority for amendments or supplements to a Registration
Statement and Prospectus or for additional information;

     (h) make commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest possible moment;

     (i) in the case of a Shelf Registration, furnish to each Holder of Registrable
Securities, and each underwriter, if any, without charge, at least one conformed copy (or one electronically reproducible conformed copy) of each Registration Statement and any
post-effective amendment thereto, including financial statements and schedules (without
documents incorporated therein by reference and all exhibits thereto, unless requested);

     (j) in the case of a Shelf Registration, cooperate with the selling Holders of
Registrable Securities to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any restrictive legends; and
enable such Registrable Securities to be in such denominations (consistent with the
provisions of the Indenture) and registered in such names as the selling Holders or the

-14-

 

underwriters, if any, may reasonably request at least three Business Days prior to the
closing of any sale of Registrable Securities;

     (k) in the case of a Shelf Registration, upon the occurrence of any event or the
discovery of any facts, each as contemplated by Sections 3(e)(v) and 3(e)(vi) hereof, as
promptly as practicable after the occurrence of such an event, use their commercially
reasonable efforts to prepare a supplement or post-effective amendment to the Registration
Statement or the related Prospectus or any document incorporated therein by reference or
file any other required document so that, as thereafter delivered to the purchasers of the
Registrable Securities or Participating Broker-Dealers, such Prospectus will not contain at
the time of such delivery any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading or will remain so qualified. At such time as such
public disclosure is otherwise made or the Co-Issuers determine that such disclosure is not
necessary, in each case to correct any misstatement of a material fact or to include any
omitted material fact, the Co-Issuers agree as promptly as practicable to notify each Holder
of such determination and to furnish each Holder such number of copies of the Prospectus as
amended or supplemented, as such Holder may reasonably request;

     (l) in the case of a Shelf Registration, a reasonable time prior to the filing of any
Registration Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus, provide copies of such document to the Initial
Purchasers on behalf of such Holders (without documents incorporated therein by reference or
exhibits thereto, unless so requested by any Initial Purchaser); and make representatives of
the Co-Issuers as shall be reasonably requested by the Holders of Registrable Securities, or
the Initial Purchasers on behalf of such Holders, available for discussion of such document;

     (m) obtain a CUSIP number for all Exchange Securities, Private Exchange Securities or
Registrable Securities, as the case may be, not later than the effective date of a
Registration Statement, and provide the Trustee with printed certificates for the Exchange
Securities, Private Exchange Securities or the Registrable Securities, as the case may be,
in a form eligible for deposit with the Depositary;

     (n) (i) cause the Indenture to be qualified under the TIA in connection with the
registration of the Exchange Securities or Registrable Securities, as the case may be,
(ii) cooperate with the Trustee and the Holders to effect such changes to the Indenture
as may be required for the Indenture to be so qualified in accordance with the terms of the
TIA and (iii) execute, and use their commercially reasonable efforts to cause the Trustee to
execute, all documents as may be required to effect such changes, and all other forms and
documents required to be filed with the SEC to enable the Indenture to be so qualified in a
timely manner, but only to the extent that registration of the Securities, Exchange
Securities or Private Exchange Securities is required pursuant to the terms of this
Agreement;

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     (o) in the case of a Shelf Registration, enter into underwriting agreements and take
all other customary and appropriate actions in order to expedite or facilitate the
disposition of such Registrable Securities and in such connection therewith:

     (i) to the extent practicable, make such representations and warranties to the
Holders of such Registrable Securities and the underwriters, if any, in form,
substance and scope as are customarily made by issuers and guarantors to Holders or
underwriters, as the case may be, in similar underwritten offerings as may be
reasonably requested by them;

     (ii) if requested by any Holder or Holders of Securities being sold, obtain
opinions of counsel to the Co-Issuers and the Guarantors and updates thereof (which
counsel and opinions (in form, scope and substance) shall be reasonably satisfactory
to the managing underwriters, if any, and the holders of a majority in principal
amount of the Registrable Securities being sold) addressed to each selling Holder
(to the extent customary) and the underwriters, if any, covering the matters
customarily covered in opinions requested in sales of securities or underwritten
offerings and such other matters as may be reasonably requested by such Holders and
underwriters;

     (iii) in the case of an underwritten offering, obtain “cold comfort” letters
and updates thereof from the Co-Issuers’ independent certified public accountants
(and, if necessary, any other independent certified public accountants of any
subsidiary of either of the Co-Issuers or of any business acquired by either of the
Co-Issuers for which financial statements are, or are required to be, included in
the Registration Statement) addressed to the underwriters, if any, and use
reasonable efforts to have such letter addressed to the selling Holders of
Registrable Securities (to the extent consistent with Statement on Auditing
Standards No. 72 of the American Institute of Certified Public Accountants), such
letters to be in customary form and covering matters of the type customarily covered
in “cold comfort” letters to underwriters in connection with similar underwritten
offerings;

     (iv) enter into a securities sales agreement with the Holders and an agent of
the Holders providing for, among other things, the appointment of such agent for the
selling Holders for the purpose of soliciting purchases of Registrable Securities, which agreement shall be in form, substance and scope customary for
similar offerings;

     (v) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the
indemnification provisions and procedures set forth in Section 4 hereof with respect
to the underwriters and all other parties to be indemnified pursuant to said Section
or, at the request of any underwriters, in the form customarily provided to such
underwriters in similar types of transactions; and

-16-

 

     (vi) deliver such documents and certificates as may be reasonably requested and
as are customarily delivered in similar offerings to the Holders of a majority in
principal amount of the Registrable Securities being sold and the managing
underwriters, if any.

The above shall be done at (i) the effectiveness of such Shelf Registration Statement (and
each post-effective amendment thereto) and (ii) each closing under any underwriting
agreement as and to the extent required thereunder;

     (p) in the case of a Shelf Registration or if a Prospectus is required to be delivered
by any Participating Broker-Dealer in the case of an Exchange Offer, make available for
inspection by representatives of the Holders of the Registrable Securities, any lead
managing underwriters participating in any disposition pursuant to a Shelf Registration
Statement, any Participating Broker-Dealer and any counsel or accountant retained by any of
the foregoing, at reasonable times and in a reasonable manner, all financial and other
records, pertinent corporate documents and properties of the Co-Issuers and the Guarantors
reasonably requested by any such persons, and cause the respective officers, directors,
employees, and any other agents of the Co-Issuers and the Guarantors to supply all
information reasonably requested by any such representative, underwriter, special counsel or
accountant in connection with a Registration Statement, and make such representatives of the
Co-Issuers and the Guarantors available for discussion of such documents as shall be
reasonably requested by the Initial Purchasers or any underwriter; provided that if any such
information is reasonably identified by the Co-Issuers and the Guarantors as being
confidential or proprietary, each person receiving such information shall take such actions
as are reasonably necessary to protect the confidentiality of such information to the extent
such action is otherwise not inconsistent with, an impairment of or a derogation of the
rights, interests or duties of any underwriter;

     (q) (i) in the case of an Exchange Offer Registration Statement, a reasonable time
prior to the filing of any Exchange Offer Registration Statement, any Prospectus forming a
part thereof, any amendment to an Exchange Offer Registration Statement or amendment or
supplement to such Prospectus, provide copies of such document to the Initial Purchasers and
to counsel to the Holders of Registrable Securities and make such changes in any such
document prior to the filing thereof as the Initial Purchasers or counsel to the Holders of
Registrable Securities may reasonably request in a timely manner
under the circumstances and, except as otherwise required by applicable law, not file
any such document in a form to which the Initial Purchasers on behalf of the Holders of
Registrable Securities and counsel to the Holders of Registrable Securities shall not have
previously been advised and furnished a copy of or to which the Initial Purchasers on behalf
of the Holders of Registrable Securities or counsel to the Holders of Registrable Securities
shall reasonably object within three Business Days of receipt of the applicable document,
and make the representatives of the Co-Issuers and the Guarantors available for discussion
of such documents as shall be reasonably requested by the Initial Purchasers; and

-17-

 

     (ii) in the case of a Shelf Registration, a reasonable time prior to filing any Shelf
Registration Statement, any Prospectus forming a part thereof, any amendment to such Shelf
Registration Statement or amendment or supplement to such Prospectus, provide copies of such
document to the Holders of Registrable Securities, to the Initial Purchasers, to counsel for
the Holders and to the underwriter or underwriters of an underwritten offering of
Registrable Securities, if any, make such changes in any such document prior to the filing
thereof as the Initial Purchasers, the counsel to the Holders or the underwriter or
underwriters reasonably request and, except as otherwise required by applicable law, not
file any such document in a form to which the Majority Holders, the Initial Purchasers on
behalf of the Holders of Registrable Securities, counsel for the Holders of Registrable
Securities or any underwriter shall not have previously been advised and furnished a copy of
or to which the Majority Holders, the Initial Purchasers of behalf of the Holders of
Registrable Securities, counsel to the Holders of Registrable Securities or any underwriter
shall reasonably object within three Business Days of receipt of the applicable document,
and make the representatives of the Co-Issuers and the Guarantors available for discussion
of such document as shall be reasonably requested by the Holders of Registrable Securities,
the Initial Purchasers on behalf of such Holders, counsel for the Holders of Registrable
Securities or any underwriter.

     (r) in the case of a Shelf Registration, use its commercially reasonable efforts to
cause all Registrable Securities to be listed on any securities exchange on which similar
debt securities issued by the Co-Issuers or any Guarantor are then listed if requested by
the Majority Holders, or if requested by the underwriter or underwriters of an underwritten
offering of Registrable Securities, if any;

     (s) in the case of a Shelf Registration, use their commercially reasonable efforts to
cause the Registrable Securities to be rated by the appropriate rating agencies, if so
requested by the Majority Holders, or if requested by the underwriter or underwriters of an
underwritten offering of Registrable Securities, if any;

     (t) upon consummation of an Exchange Offer or a Shelf Registration, otherwise comply
with all applicable rules and regulations of the SEC and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering at least 12
months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
thereunder;

     (u) reasonably cooperate and assist in any filings required to be made with FINRA and,
in the case of a Shelf Registration, in the performance of any due diligence investigation
by any underwriter and its counsel (including any “qualified independent underwriter” that
is required to be retained in accordance with the rules and regulations of FINRA); and

     (v) upon consummation of an Exchange Offer or a Private Exchange, obtain a customary
opinion of counsel to the Co-Issuers and the Guarantors addressed to the Trustee as so may
be required under the Indenture.

-18-

 

          In the case of a Shelf Registration Statement, the Co-Issuers may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Co-Issuers such information regarding the Holder (including, without limitation, a
customary selling holder questionnaire) and the proposed distribution by such Holder of such
Registrable Securities as the Co-Issuers may from time to time reasonably request in writing.

          In the case of a Shelf Registration Statement, each Holder agrees that, upon receipt of any
notice from the Co-Issuers of the happening of any event or the discovery of any facts, each of the
kind described in Section 3(e)(v) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such Holder’s receipt of the
copies of the supplemented or amended Prospectus contemplated by Section 3(k) hereof, and, if so
directed by the Co-Issuers, such Holder will deliver to the Co-Issuers (at their expense) all
copies in such Holder’s possession, other than permanent file copies then in such Holder’s
possession, of the Prospectus covering such Registrable Securities current at the time of receipt
of such notice.

          In the event that the Co-Issuers and the Guarantors fail to effect the Exchange Offer or file
any Shelf Registration Statement and maintain the effectiveness of any Shelf Registration Statement
as provided herein, neither the Co-Issuers nor any Guarantor shall file any Registration Statement
with respect to any securities (within the meaning of Section 2(1) of the 1933 Act) of the
Co-Issuers or any Guarantor, other than Registrable Securities.

          If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Co-Issuers. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees
to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents required under the terms of such underwriting arrangements.

          4. Indemnification; Contribution.

          (a) The Co-Issuers and the Guarantors agree jointly and severally to indemnify and hold
harmless the Initial Purchasers, each Holder, each Participating Broker-Dealer, each Person who
participates as an underwriter (any such Person being an “Underwriter”) and each Person, if
any, who controls any Holder or Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act as follows:

     (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement (or any amendment or supplement thereto) pursuant to
which Exchange Securities or Registrable Securities were registered under the 1933 Act,
including all documents incorporated therein by reference, or the omission

-19-

 

or alleged omission therefrom of a material fact required to be stated therein or necessary to make the
statements therein not misleading, or arising out of any untrue statement or alleged untrue
statement of a material fact contained in any Prospectus (or any amendment or supplement
thereto) or the omission or alleged omission therefrom of a material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were
made, not misleading;

     (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 4(d) below) any such
settlement is effected with the written consent of the Co-Issuers; and

     (iii) against any and all expense whatsoever, as incurred (including the reasonable
fees and disbursements of counsel chosen by any indemnified party and, including, without
limitation, any stamp taxes in Argentina), reasonably incurred in investigating, preparing
or defending against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue
statement or omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under subparagraph (i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Co-Issuers by the Holder or Underwriter expressly for use in a Registration Statement (or any
amendment thereto) or any Prospectus (or any amendment or supplement thereto).

          (b) Each Holder severally, but not jointly, agrees to indemnify and hold harmless the
Co-Issuers, the Guarantors, the Initial Purchasers, each Underwriter and the other selling Holders,
and each of their respective directors and officers, and each Person, if any, who controls
the Co-Issuers, a Guarantor, the Initial Purchasers, any Underwriter or any other selling
Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any
and all loss, liability, claim, damage and expense described in the indemnity contained in Section
4(a) hereof, as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Shelf Registration Statement (or any amendment thereto)
or any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in
conformity with written information with respect to such Holder furnished to the Co-Issuers by such
Holder expressly for use in the Shelf Registration Statement (or any amendment thereto) or such
Prospectus (or any amendment or supplement thereto); provided, however, that no such Holder shall
be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder
from the sale of Registrable Securities pursuant to such Shelf Registration Statement.

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          (c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action or proceeding commenced against it in respect of which indemnity
may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. An indemnifying party may participate at its own
expense in the defense of such action; provided, however, that counsel to the indemnifying party
shall not (except with the consent of the indemnified party) also be counsel to the indemnified
party. In no event shall the indemnifying party or parties be liable for the reasonable fees and
expenses of more than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general allegations or
circumstances. No indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 4 (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation, investigation, proceeding
or claim and (ii) does not include a statement as to or an admission of fault, culpability or a
failure to act by or on behalf of any indemnified party.

          (d) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying
party agrees that it shall be liable for any settlement of the nature contemplated by Section
4(a)(ii) effected without its written consent if (i) such settlement is entered into more than 60
days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying
party shall have received notice of the terms of such settlement at least 45 days prior to such
settlement being entered into and (iii) such indemnifying party shall not have reimbursed such
indemnified party in accordance with such request prior to the date of such settlement.

          (e) If the indemnification provided for in this Section 4 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the Co-Issuers and the Guarantors on the one hand and the Holders and the Initial Purchasers on
the other hand in connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.

          The relative fault of the Co-Issuers and the Guarantors on the one hand and the Holders and
the Initial Purchasers on the other hand shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by the Co-Issuers

-21-

 

and/or the Guarantors, the Holders or the Initial Purchasers and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission.

          The Co-Issuers, the Guarantors, the Holders and the Initial Purchasers agree that it would not
be just and equitable if contribution pursuant to this Section 4 were determined by pro rata
allocation (even if the Holders and/or Initial Purchasers were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the equitable
considerations referred to above in this Section 4. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to above in this Section
4 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue or alleged untrue statement or omission or alleged omission.

          Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total discount received by it in
connection with its purchase of the Securities exceeds the amount of any damages which such Initial
Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission.

          No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

          For purposes of this Section 4, each Person, if any, who controls an Initial Purchaser or
Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have
the same rights to contribution as such Initial Purchaser or Holder, and each director of the
Co-Issuers or any Guarantor, and each Person, if any, who controls the Co-Issuers or any Guarantor
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Co-Issuers or such Guarantor, as applicable. The Initial Purchasers’
respective obligations to contribute pursuant to this Section 4 are several in proportion to the principal amount of Securities set forth opposite their respective names in
Schedule A to the Purchase Agreement and not joint.

     5. Miscellaneous.

     5.1. Rule 144A. The Co-Issuers covenant that they will, upon the request of any
Holder of Registrable Securities: (a) deliver such information to a prospective purchaser as is
necessary to permit sales pursuant to Rule 144A under the 1933 Act, and (b) take such further
action that is reasonable in the circumstances, in each case, to the extent required from time to
time to enable such Holder to sell its Registrable Securities without registration under the 1933
Act within the limitation of the exemptions provided by (i) Rule 144A under the 1933 Act, as such
Rule may be amended from time to time, or (ii) any similar rules or regulations hereafter adopted
by the SEC. Upon the request of any Holder of Registrable Securities, the Co-Issuers

-22-

 

will deliver to such Holder a written statement as to whether it has complied with such requirements.

          5.2. No Inconsistent Agreements. Neither of the Co-Issuers nor any Guarantor has
entered into, and neither of the Co-Issuers nor any Guarantor will after the date of this Agreement
enter into, any agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof. The
rights granted to the Holders hereunder do not and will not for the term of this Agreement in any
way conflict with the rights granted to the holders of the Co-Issuers’ or any Guarantor’s other
issued and outstanding securities under any such agreements.

          5.3. Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given unless the Co-Issuers have obtained the
written consent of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement, waiver or departure.

          5.4. Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery, registered first-class mail, telex,
telecopier, or any courier guaranteeing overnight delivery (a) if to a Holder, at the most current
address given by such Holder to the Co-Issuers by means of a notice given in accordance with the
provisions of this Section 5.4, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the Co-Issuers or any Guarantor,
initially at the Co-Issuers’ address set forth in the Purchase Agreement, and thereafter at such
other address of which notice is given in accordance with the provisions of this Section 5.4.

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt is acknowledged, if
telecopied; and on the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.

          Copies of all such notices, demands, or other communications shall be concurrently delivered
by the person giving the same to the Trustee under the Indenture, at the address specified in such
Indenture.

          5.5. Successor and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided that
nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture. If
any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities such person shall be
conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of

-23-

 

this Agreement, including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits
hereof.

          5.6. Third Party Beneficiaries. The Initial Purchasers (even if the Initial
Purchasers are not Holders of Registrable Securities) shall be third party beneficiaries to the
agreements made hereunder between the Co-Issuers and the Guarantors, on the one hand, and the
Holders, on the other hand, and shall have the right to enforce such agreements directly to the
extent they deem such enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder. Each Holder of Registrable Securities shall be a third party beneficiary to the
agreements made hereunder between the Co-Issuers and the Guarantors, on the one hand, and the
Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly
to the extent it deems such enforcement necessary or advisable to protect its rights hereunder.

          5.7. Specific Enforcement. Without limiting the remedies available to the Initial
Purchasers and the Holders, the Co-Issuers acknowledge that any failure by the Co-Issuers to comply
with their obligations under Sections 2.1 through 2.4 hereof may result in material irreparable
injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that
it would not be possible to measure damages for such injuries precisely and that, in the event of
any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Co-Issuers’ obligations under Sections 2.1 through 2.4 hereof.

          5.8. Restriction on Resales. Until the expiration of one year after the original
issuance of the Notes and the Guarantees, the Co-Issuers and the Guarantor will not, and will cause
their “affiliates” (as such term is defined in Rule 144(a)(1) under the 1933 Act) not to, resell
any Securities that are “restricted securities” (as such term is defined under Rule 144(a)(3) under
the 1933 Act) that have been reacquired by any of them and shall immediately upon any purchase of
any such Securities submit such Securities to the Trustee for cancellation.

          5.9. Counterparts. This Agreement may be executed in any number of counterparts and
by the parties hereto in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

          5.10. Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

          5.11. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

          5.12. Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,

-24-

 

the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

          5.13. [Reserved].

          5.14. Consent to Jurisdiction. Each of the Co-Issuers and each of the Guarantors
irrevocably consents and agrees that any legal action, suit or proceeding brought against it with
respect to its obligations, liabilities or any other matter arising out of or in connection with
this Agreement or the transactions contemplated hereby may be brought in the courts of the State of
New York or the courts of the United States of America located in the County of New York and, until
all amounts due and to become due hereunder, if any, have been paid, or until any such legal
action, suit or proceeding commenced prior to such payment has been concluded, hereby irrevocably
consents and irrevocably submits to the non-exclusive jurisdiction of each such court in person
and, generally and unconditionally with respect to any action, suit or proceeding for themselves.

          5.15. Appointment of Agent for Service of Process.

          (a) The Co-Issuers and each Guarantor hereby irrevocably consent and agree to the service of
any and all legal process, summons, notices and documents in any such action, suit or proceeding
brought against them with respect to their obligations, liabilities or any other matter arising out
of or in connection with this Agreement, by serving a copy thereof upon any employee of either
Co-Issuer or any Guarantor (in such capacity, the “Co-Issuers’ Process Agent”) at any
business location that either of the Co-Issuers or any Guarantor may maintain from time to time in
the United States including, without limitation, at the offices of Navios Corporation located at
825 Third Avenue, 34th Floor, New York, New York 10022.

          (b) If at any time neither the Co-Issuers nor any Guarantor maintains a bona fide business
location in the State of New York, then the Co-Issuers and the Guarantors shall promptly (and in
any event within 10 days) irrevocably designate, appoint and empower CT Corporation System, with
offices currently at 111 Eighth Avenue, New York, New York 10011 (or such other third party
corporate service provider of national standing as may be reasonably acceptable to the
Representative), as their designee, appointee and agent to receive, accept and acknowledge for and
on their behalf service of any and all legal process, summons, notices and documents that may be
served in any action, suit or proceeding brought against them in any such United States or state
court located in the County of New York with respect to their obligations,
liabilities or any other matter arising out of or in connection with this Agreement and that
may be made on such designee, appointee and agent in accordance with legal procedures prescribed
for such courts (the “Third Party Process Agent”; each of the Co-Issuers’ Process Agent and
the Third Party Process Agent, a “Process Agent”) and pay all fees and expenses required by
the Third Party Process Agent in connection therewith. If for any reason such Third Party Process
Agent hereunder shall cease to be available to act as such, each of the Co-Issuers and each of the
Guarantors agrees to designate a new Third Party Process Agent in the County of New York on the
terms and for the purposes of this Section 5.15 reasonably satisfactory to the Representative.

-25-

 

          (c) Each of the Co-Issuers and each of the Guarantors further hereby irrevocably consents and
agrees to the service of any and all legal process, summons, notices and documents in any such
action, suit or proceeding against them arising out of or in connection with this Agreement by (i)
serving a copy thereof upon any of the relevant Process Agents specified in clauses (a) and (b)
above, or (ii) or by mailing copies thereof by registered or certified air mail, postage prepaid,
to the Co-Issuers, at the address specified in or designated pursuant to this Agreement (including
by reference pursuant to Section 5.4). Each of the Co-Issuers and each of the Guarantors agrees
that the failure of any Process Agent, to give any notice of such service to it shall not impair or
affect in any way the validity of such service or any judgment rendered in any action or proceeding
based thereon.

          (d) Nothing herein shall in any way be deemed to limit the ability of any Initial Purchaser
(or Holder or other third party beneficiary hereunder) to serve any such legal process, summons,
notices and documents in any other manner permitted by applicable law or to obtain jurisdiction
over the Co-Issuers or the Guarantors or bring actions, suits or proceedings against them in such
other jurisdictions, and in such manner, as may be permitted by applicable law.

          (e) Each of the Co-Issuers and each of the Guarantors hereby irrevocably and unconditionally
waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to
the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in
connection with this Agreement brought in the United States federal courts located in the County of
New York or the courts of the State of New York located in the County of New York and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim in any such court
that any such action, suit or proceeding brought in any such court has been brought in an
inconvenient forum.

          (f) The provisions of this Section 5.15 shall survive any termination of this Agreement, in
whole or in part.

          5.16. Waiver of Immunities. To the extent that a Co-Issuer, a Guarantor or any of
their respective properties, assets or revenues may have or may hereafter become entitled to, or
have attributed to them, any right of immunity, on the grounds of sovereignty, from any legal
action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any court, from
service of process, from attachment upon or prior to judgment, or from attachment in aid of
execution of judgment, or from execution of judgment, or other legal process or proceeding for the
giving of any relief or for the enforcement of any judgment, in any jurisdiction in which
proceedings may at any time be commenced, with respect to their obligations, liabilities or any
other matter under or arising out of or in connection with this Agreement, each of the Co-Issuers
and each of the Guarantors hereby irrevocably and unconditionally, to the extent permitted by
applicable law, waives and agrees not to plead or claim any such immunity and consents to such
relief and enforcement.

          5.17. Foreign Taxes. All payments by the Co-Issuers or a Guarantor to each of the
Initial Purchasers hereunder shall be made free and clear of, and without deduction or withholding
for or on account of, any and all present and future income, stamp or other taxes, levies,

-26-

 

imposts, duties, charges, fees, deductions or withholdings, now or hereinafter imposed, levied, collected,
withheld or assessed by any jurisdiction of formation of the Co-Issuers and the Guarantors or any
other jurisdiction in which the Co-Issuers or a Guarantor has an office from which payment is made
or deemed to be made, excluding (i) any such tax imposed by reason of such Initial Purchaser having
some connection with any such jurisdiction other than its participation as Initial Purchaser
hereunder, and (ii) any income or franchise tax on the overall net income of such Initial Purchaser
imposed by the United States or by the State of New York or any political subdivision of the United
States or of the State of New York (all such non-excluded taxes, “Foreign Taxes”). If
either of the Co-Issuers or a Guarantor is prevented by operation of law or otherwise from paying,
causing to be paid or remitting that portion of amounts payable hereunder represented by Foreign
Taxes withheld or deducted, then amounts payable under this Agreement shall, to the extent
permitted by law, be increased to such amount as is necessary to yield and remit to each Initial
Purchaser an amount which, after deduction of all Foreign Taxes (including all Foreign Taxes
payable on such increased payments) equals the amount that would have been payable if no Foreign
Taxes applied. For avoidance of doubt, this Section 5.17 shall not apply to the repayment of
Additional Interest under Section 2.5, which shall be governed by Section 4.20 of the Indenture.

          5.18. Judgment Currency. Each of the Co-Issuers and each of the Guarantors agrees to
indemnify the Initial Purchasers (or any third party beneficiary hereunder) against any loss
incurred by any such person as a result of any judgment or order being given or made against the
Co-Issuers or a Guarantor for any amount due hereunder and such judgment or order being expressed
and paid in a currency (the “Judgment Currency”) other than United States dollars and as a
result of any variation as between (i) the rate of exchange at which the United States dollar
amount is converted into the Judgment Currency for the purpose of such judgment or order, and (ii)
the rate of exchange in The City of New York at which such party on the date of payment of such
judgment or order is able to purchase United States dollars with the amount of the Judgment
Currency actually received by such party if such party had utilized such amount of Judgment
Currency to purchase United States dollars as promptly as practicable upon such party’s receipt
thereof. The foregoing indemnity shall constitute a separate and independent obligation of the
Co-Issuers and the Guarantors and shall continue in full force and effect notwithstanding any such
judgment or order as aforesaid. The term “rate of exchange” shall include any premiums and costs
of exchange payable in connection with the purchase of, or conversion into, the relevant currency.

-27-

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	NAVIOS SOUTH AMERICAN LOGISTICS INC.

 	 
	 	By:  	/s/ Angeliki Frangou
 	 
	 	 	Name:  	Angeliki Frangou 	 
	 	 	Title:  	Chairman 	 
	 

	 	 	 	 	 
	 	NAVIOS LOGISTICS FINANCE (US) INC.

 	 
	 	By:  	/s/ Vasiliki Papaefthymiou
 	 
	 	 	Name:  	Vasiliki Papaefthymiou 	 
	 	 	Title:  	President/Secretary 	 
	 

	 	 	 	 	 
	 	CORPORACION NAVIOS S.A.

NAUTICLER S.A.

PONTE RIO SOCIEDAD ANONIMA

NAVARRA SHIPPING CORPORATION

PELAYO SHIPPING CORPORATION,

as Guarantors

 	 
	 	By:  	/s/ George Achniotis
 	 
	 	 	Name:  	George Achniotis 	 
	 	 	Title:  	Authorized Signatory

COMPANIA NAVIERA HORAMAR S.A.,
as Guarantor 	 
	 
	 	 	 
	 	COMPANIA NAVIERA HORAMAR S.A.,

as Guarantor

 	 
	 	By:  	                                              /s/ Horacio E. Lopez
 	 
	 	 	Name:  	Horacio E. Lopez 	 
	 	 	Title:  	Authorized Signatory 	 
	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	 COMPANIA DE TRANSPORTE FLUVIAL

INTERNACIONAL S.A.

PETROVIA INTERNACIONAL S.A.,

as Guarantors  	 
	 	 	 
	 	By:  	                                              /s/ Mauro Caballero
 	 
	 	 	Name:  	Mauro Caballero 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	MERCO PAR S.A.C.I.,

as Guarantor
 	 
	 	 	 
	 	By:  	                                              /s/ Horacio E. Lopez
 	 
	 	 	Name:  	Horacio E. Lopez 	 
	 	 	Title:  	Authorized Signatory 	 
	 	 	 
	 	By:  	                                              /s/ Eduardo Blanc
 	 
	 	 	Name:  	Eduardo Blanc 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	NAVEGACION GUARANI S.A.,

as Guarantor
 	 
	 	 	 
	 	By:  	                                              /s/ Carlos A. Lopez
 	 
	 	 	Name:  	Carlos A. Lopez 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	 	 
	 	By:  	                                              /s/ Norma Aguilar
 	 
	 	 	Name:  	Norma Aguilar 	 
	 	 	Title:  	Authorized Signatory 	 
	 

S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	HIDROVIA OSR S.A.,

as Guarantor
 	 
	 	 	 
	 	By:  	                                              /s/ Norma Aguilar
 	 
	 	 	Name:  	Norma Aguilar 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	 	 
	 	By:  	                                              /s/ Marcos J. Peroni
 	 
	 	 	Name:  	Marcos J. Peroni 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 
	 	MERCO FLUVIAL S.A.,

as Guarantor
 	 
	 	 	 
	 	By:  	                                              /s/ Marcos J. Peroni
 	 
	 	 	Name:  	Marcos J. Peroni 	 
	 	 	Title:  	Authorized Signatory 	 
	 	 	 
	 	By:  	                                              /s/ Quirino Fernandez
 	 
	 	 	Name:  	Quirino Fernandez 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	PETROLERA SAN ANTONIO S.A.,

as Guarantor
 	 
	 	 	 
	 	By:  	                                              /s/ Carlos A. Lopez
 	 
	 	 	Name:  	Carlos A. Lopez 	 
	 	 	Title:  	Authorized Signatory 	 
	 	 	 
	 	By:  	                                              /s/ Eduardo Blanc
 	 
	 	 	Name:  	Eduardo Blanc 	 
	 	 	Title:  	Authorized Signatory 	 
	 

S-3

 

	 	 	 	 	 
	 	STABILITY OCEANWAYS S.A.,

as Guarantor
 	 
	 	 	 
	 	By:  	                                              /s/ Carmen Rodriguez
 	 
	 	 	Name:  	Carmen Rodriguez 	 
	 	 	Title:  	Authorized Signatory 	 

S-4

 

Confirmed and accepted as

of the date first above written:

MERRILL LYNCH, PIERCE, FENNER & SMITH

INCORPORATED

For itself and as Representative of the other

Initial Purchasers named in Schedule B hereto.

	 	 	 	 	 
	 	 
	By:  	             /s/ Barry S. Price
 	 
	 	Name:  	Barry S. Price 	 
	 	Title:  	Managing Director 	 

S-5

 

	 	 	 	 	 

Schedule A

Guarantors

Corporacion Navios S.A.

Nauticler S.A.

Compania Naviera Horamar S.A.

Compania de Transporte Fluvial Internacional S.A.

Ponte Rio SA

Petrovia Internacional S.A.

Merco Par S.A.C.I.

Navegacion Guarani S.A.

Hidrovia OSR S.A.

Merco-Fluvial S.A.

Petrolera San Antonio S.A.

Stability Oceanways S.A.

Navarra Shipping Corporation

Pelayo Shipping Corporation

S-6

 

Schedule B

Initial Purchasers

Merrill Lynch, Pierce, Fenner & Smith Incorporated

J.P. Morgan Securities LLC

Citigroup Global Markets Inc.

Credit Suisse Securities (USA) LLC

S. Goldman Advisors LLC

S-7exv10w2

Exhibit 10.2

Dated 6 May 2011

MARFIN POPULAR BANK PUBLIC CO LTD

as Lender

-and-

NAVIOS SHIPMANAGEMENT INC.

as Borrower

-and-

NAVIOS MARITIME HOLDINGS INC.

and

ASTRA MARITIME CORPORATION

as Guarantors

 

Supplemental Agreement No. 2 relating to a Loan Agreement dated

23 October 2009 as amended in respect of a revolving credit facility of up to US$110,000,000

(originally)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	1. Definitions
	 	 	2	 
	2. Consent of the Lender
	 	 	3	 
	3. Amendments to the Original Loan Agreement
	 	 	3	 
	4. Representations and Warranties
	 	 	3	 
	5. Conditions
	 	 	5	 
	6. Relevant Parties’ confirmation
	 	 	6	 
	7. Expenses
	 	 	6	 
	8. Miscellaneous and notices
	 	 	7	 
	9. Applicable Law-Jurisdiction
	 	 	7	 
	10. Contract (Rights of Third Parties) Act 1999
	 	 	9	 
	EXECUTION PAGE
	 	 	10	 
	Schedule 1: Documents and evidence required as conditions precedent
	 	 	 	 
	Schedule 2: Definitions and Expressions
	 	 	 	 
	Schedule 3: Amended and Restated Loan Agreement
	 	 	 	 

 

 

THIS SUPPLEMENTAL AGREEMENT is made this 6th day of May 2011.

BETWEEN

	1	 	MARFIN POPULAR BANK PUBLIC CO LTD (successor by way of cross-border merger of Marfin Egnatia
Bank Societe Anonyme) a company duly incorporated under the laws of the Republic of Cyprus,
having its registered office at 154 Limassol Avenue, 2025 Nicosia, Cyprus (the “Lender”) as
lender;
	 
	2	 	NAVIOS SHIPMANAGEMENT INC., a corporation duly formed and existing under the laws of the
Republic of the Marshall Islands, having its registered office at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, Republic of the Marshall Islands (the
“Borrower”) as borrower; and
	 
	3	 	(a) NAVIOS MARITIME HOLDINGS INC., a corporation duly formed and existing under the laws of
the Republic of the Marshall Islands, having its registered office at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, Republic of the Marshall Islands (the “Parent
Guarantor”); and

	 	(b)	 	ASTRA MARITIME CORPORATION, a corporation duly formed and existing under the laws of
the Republic of the Marshall Islands, having its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro MH96960, Republic of the Marshall Islands
(the “Astra Owner” and together with the Parent Guarantor the “Guarantors”) as joint and
several guarantors.

WHEREAS

	A.	 	Pursuant to a loan agreement dated 23 October 2009 (hereinafter called as the same has been
amended by a side letter (as hereinafter defined) and a supplemental agreement dated 28
January 2011 (the “Supplemental Agreement No. 1”) the “Original Loan Agreement”), made between
the Lender as lender and the Borrower as borrower, the Lender agreed to make available to the
Borrower a revolving credit facility of (originally) One hundred Ten million Dollars
($110,000,000) (the “Loan”) upon the terms and conditions set forth therein.
	 
	B.	 	Pursuant to a side letter dated 7 September 2010 (the “Side Letter”) made by and among the
Borrower, the Parent Guarantor and Customized Development S.A. of the Republic of Liberia (the
“Existing Owner”) and the Lender, the Applicable Limit has been reduced to Thirty million
Dollars ($30,000,000).
	 
	C.	 	Following a request of the Borrower and the Existing Owner, the Lender and the Existing Owner
entered into a deed of release dated 1 October 2010 pursuant to which the

 

 

	 	 	Lender has released
the Existing Owner from its obligations under the guarantee and indemnity dated 23 October
2009 (the “Existing Owner’s Guarantee”) made between
the Existing Owner and the Lender and the other Finance Documents to which the Existing
Owner was a party and has released and reassigned (where appropriate) all rights, title and
interest created by the Existing Owner in favour of the Lender pursuant to the Existing
Owner’s Guarantee and the other Finance Documents to which the Existing Owner was a party.
	 
	D.	 	Pursuant to the Original Loan Agreement and as security for the obligations of the Borrower
to the Lender thereunder, the Parent Guarantor has executed a guarantee and indemnity dated 23
October 2009 as amended by a Confirmation of Parent Guarantee dated 28 January 2011 (together
the “Parent Guarantee”) both made between the Parent Guarantor and the Lender.
	 
	E.	 	The Borrower and the Parent Guarantor have requested the Lender to,
inter alia, (i) make available to the Borrower an Advance under
Tranche B to be on lent to the Astra Owner for the purposes of (a)
assisting the Astra Owner in refinancing shareholders’ loans incurred
in connection with the acquisition of the Astra Ship and (b) providing
the Astra Owner with working and investment capital and (ii) amend and
restate the Original Loan Agreement in the manner hereinafter set
forth.
	 
	F.	 	The Lender has agreed to consent to the requests referred to in
Recital E above subject to the terms and conditions set forth in this
Agreement.

NOW THEREFORE, in consideration of the mutual promises herein contained and other good and valuable
consideration (receipt of which is hereby acknowledged) the parties do hereby agree as follows:

	1.	 	Definitions
	 
	1.1	 	Defined expressions
	 
	 	 	Words and expressions defined in the Loan Agreement shall, unless the context otherwise
requires or unless otherwise defined herein, have the same meanings when used in this
Agreement.
	 
	1.2	 	Definitions
	 
	 	 	Schedule 2 set outs definitions or expressions used in this Agreement.
	 
	1.3	 	Original Restated Loan Agreement

2

 

	 	 	References in the Loan Agreement to “this Agreement” shall, with effect from the Effective
Date and unless the context otherwise requires, be references to the Original Loan
Agreement as amended and restated by this Agreement and words such as “herein”, “hereof”,
“hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the Loan Agreement,
shall be construed accordingly.
	 
	1.4	 	Headings
	 
	 	 	Clause headings and the table of contents are inserted for convenience of reference only
and shall be ignored in the interpretation of this Agreement.
	 
	2.	 	Consent of the Lender
	 
	 	 	The Lender, relying upon the representations and warranties on the part of the Relevant
Parties contained in Clause 4, agrees with the Borrower that, subject to the terms and
conditions of this Agreement and in particular, but without prejudice to the generality of
the foregoing, fulfilment on or before 31 May 2011 of the conditions contained in Clause 5
and Schedule 1, the Lender agrees to the amendments of the Original Loan Agreement on the
terms set out in Schedule 3.
	 
	3.	 	Amendments to the Original Loan Agreement
	 
	3.1	 	Amendments to the Original Loan Agreement
	 
	 	 	The Original Loan Agreement shall, with effect on and from the Effective Date, be (and it
is hereby) amended in accordance with the form of the amended and restated Loan Agreement
set out in Schedule 3 and (as so amended) will continue to be binding upon the Lender and
the Borrower upon such terms as so amended and restated.
	 
	3.2	 	Continued force and effect
	 
	 	 	Save as amended and restated by this Agreement, the provisions of the Original Loan
Agreement shall continue in full force and effect and the Original Loan Agreement and this
Agreement shall be read and construed as one instrument.
	 
	4.	 	Representations and Warranties
	 
	 	 	Each of the Relevant Parties represents and warrants to the Lender that:
	 
	4.1	 	Corporate power
	 
	 	 	It has power to execute, deliver and perform its obligations under the Relevant Documents
to which it is or is to be a party and all necessary corporate, shareholder and

3

 

		 	other
action has been taken by each of the Relevant Parties to authorise the execution, delivery
and performance of the Relevant Documents to which it is or is to be a party;
	 
	4.2	 	Binding obligations
	 
	 	 	the Relevant Documents to which it is or is to be a party constitute valid and legally
binding obligations of each of the Relevant Parties enforceable in accordance with their
terms;
	 
	4.3	 	No conflict with other obligations
	 
	 	 	the execution, delivery and performance of the Relevant Documents to which it is or is to
be a party by each of the Relevant Parties will not (i) contravene any existing law,
statute, rule or regulation or any judgment, decree or permit to which any of the Relevant
Parties 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 any of the Relevant
Parties is a party or is subject or by which it or any of its property is bound, (iii)
contravene or conflict with any provision of the constitutional documents of any of the
Relevant Parties or (iv) result in the creation or imposition of or oblige any of the
Relevant Parties to create any Encumbrance (other than an Encumbrance created pursuant to
the Finance Documents) on any of the undertaking, assets, rights or revenues of any of the
Relevant Parties;
	 
	4.4	 	No filings required
	 
	 	 	except for the registration of the Mortgage at the appropriate registry of the Republic of
Panama, it is not necessary to ensure the legality, validity, enforceability or
admissibility in evidence of any of the Relevant Documents that they or any other
instrument be notarised, filed, recorded, registered or enrolled in any court, public
office or elsewhere in any Relevant Jurisdiction or that any stamp, registration or similar
tax or charge be paid in any Relevant Jurisdiction on or in relation to the Relevant
Documents and each of the Relevant Documents is in proper form for its enforcement in the
courts of each Relevant Jurisdiction;
	 
	4.5	 	Choice of law
	 
	 	 	the choice of English law or of the law of the Republic of Panama or of Greek law, as the
case may be, to govern the Relevant Documents and the submissions by each Relevant Party
which is a party thereto to the non-exclusive jurisdiction of the English courts and the
Greek courts, as the case may be, are valid and binding;

4

 

	4.6	 	Consents obtained
	 
	 	 	every consent, authorisation, licence or approval of, or registration or declaration to,
governmental or public bodies or authorities or courts required by any of the Relevant
Parties in connection with the execution, delivery, validity, enforceability or
admissibility in evidence of the Relevant Documents to which it is or will become a party
or the performance by any of the Relevant Parties of their respective obligations under
such documents has been obtained or made and is in full force and effect and there has been
no default in the observance of any conditions or restrictions (if any) imposed in, or in
connection with, any of the same; and
	 
	4.7	 	Repetition of representations and warranties
	 
	 	 	each of the representations and warranties contained in Clause 4 of this Agreement, Clause
10 of the form of the amended and restated Loan Agreement set out in Schedule 2 and Clause
4 of the Parent Guarantee, each as amended by the Relevant Document amending same shall be
deemed to be repeated by the Relevant Parties on the Effective Date as if made with
reference to the facts and circumstances existing on such day.
	 
	5.	 	Conditions
	 
	5.1	 	Documents and evidence
	 
	 	 	The consent and agreement of the Lender referred to in Clause 2 shall be subject to the
receipt by the Lender or its duly authorised representative on or before the Effective Date
of the documents and evidence specified in Schedule 1 in form and substance satisfactory to
the Lender.
	 
	5.2	 	General conditions precedent
	 
	 	 	The consents and agreements of the Lender referred to in Clause 2 shall be
further subject to:

	 	(a)	 	the representations and warranties in Clause 4 being true and correct on the
Effective Date as if each was made with respect to the facts and circumstances
existing at such time; and
	 
	 	(b)	 	no Event of Default having occurred and continuing at the time of the
Effective Date.

	5.3	 	Waiver of conditions precedent
	 
	 	 	The conditions specified in this Clause 5 are inserted solely for the
benefit of the Lender and may be waived by the Lender in whole or in
part with or without conditions.

5

 

	6.	 	Relevant Parties’ confirmation
	 
	 	 	Each of the Relevant Parties hereby confirms its consent to the amendments to the Original
Loan Agreement as set out in Clause 2 and agrees that:
	 
	6.1	 	the Original Loan Agreement as hereby amended and restated and each of the Finance Documents
to which it is a party, and its obligations thereunder, shall remain and continue in full
force and effect notwithstanding the amendments to the Original Loan Agreement and the other
Finance Documents contained in this Agreement; and
	 
	6.2	 	with effect from the Effective Date references to (i) “the Agreement” or “the Loan Agreement”
in any of the other Finance Documents to which it is a party shall henceforth be references to
the Original Loan Agreement as amended by this Agreement and as
from time to time hereafter amended and shall also be deemed to include this Agreement and
the obligations of the Borrower hereunder and (ii) references in any of the Finance
Documents to any other Finance Document to which it is a party shall henceforth be
reference to that Loan Document as amended by this Agreement and as from time to time
hereafter amended.
	 
	7.	 	Expenses
	 
	7.1	 	Expenses
	 
	 	 	The Borrower agrees to pay to the Lender on a full indemnity basis on
demand all expenses (including legal and out-of-pocket expenses)
incurred by the Lender:

	 	(a)	 	in connection with the negotiation, preparation, execution and, where
relevant, registration of this Agreement, the other Relevant Documents or any of them
and any discharge or release documents required to be executed by the Lender and of
any amendment or extension of or the granting of any waiver or consent under this
Agreement, the other Relevant Documents or any of them or any such discharge or
release documents;
	 
	 	(b)	 	in contemplation of, or otherwise in connection with, the enforcement of, or
preservation of any rights under this Agreement or the other Relevant Documents or
otherwise in respect of the monies owing and obligations incurred under this Agreement
and the other Relevant Documents; and
	 
	 	(c)	 	together with interest at the rate referred to in Clause 8.1 of the Original
Loan Agreement from the date on which such expenses were incurred to the date of
payment (as well after as before judgment).

	7.2	 	Value Added Tax

6

 

	 	 	All fees and expenses payable pursuant to this Clause 7 shall be paid
together with value added tax or any similar tax (if any) properly
chargeable thereon.
	 
	7.3	 	Stamp and other duties
	 
	 	 	The Borrower agrees to pay to the Lender on demand all stamp, documentary, registration or
other like duties or taxes (including any duties or taxes payable by the Lender) imposed on
or in connection with this Agreement or the other Relevant Documents or any of them and
shall indemnify the Lender against any liability arising by reason of any delay or omission
by the Borrower to pay such duties or taxes.
	 
	8.	 	Miscellaneous and notices
	 
	8.1	 	Notices
	 
	 	 	The provisions of Clause 16 of the Original Loan Agreement shall
extend and apply to the giving or making of notices or demands
hereunder as if the same were expressly stated herein.

	 
	8.2 	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts and by the different parties
on separate counterparts, each of which when so executed and delivered shall be an original
but all counterparts shall together constitute one and the same instrument.
	 
	9.	 	Applicable Law-Jurisdiction
	 
	9.1	 	This Agreement and any non-contractual obligations arising from or in connection with it
shall be governed by and construed in accordance with the laws of England.

7

 

	9.2	 	Subject to Clause 9.3, the courts of England shall have exclusive jurisdiction to settle any
disputes which may (a) arise out of or in connection with this Agreement; or (b) relate to any
non-contractual obligations arising from or in connection with this Agreement.
	 
	9.3	 	Clause 9.2 is for the exclusive benefit of the Lender which reserves the right:
	 
	(a)	 	to commence proceedings in relation to any matter which arises out of or in connection with
this Agreement or relates to any non-contractual obligations arising from or in connection
with this Agreement in the courts of the Republic of Greece and/or any country other than
England or Greece and which have or claim jurisdiction to that matter; and
	 
	(b)	 	to commence such proceedings in the courts of any such country or countries concurrently with
or in addition to proceedings in England or Greece or without commencing proceedings in
England or Greece.
	 
	 	 	No Relevant Party shall commence any proceedings in any country other than England in
relation to a matter which arises out of or in connection with this Agreement or relates to
any non-contractual obligations arising from or in connection with this Agreement.
	 
	9.4	 	Each Relevant Party irrevocably appoints HFW Nominees Ltd., with offices at Friary Court, 65
Crutched Friars, London EC3N 3AE, England, to act as its agent to receive and accept on its
behalf any process or other document relating to any proceedings in the English courts which
are connected with this Agreement and any non-contractual obligations arising from or in
connection with this Agreement.
	 
	9.5	 	Each Relevant Party irrevocably designates and appoints Mrs. Vasiliki Papaefthymiou, an
attorney-at-law with offices at 85 Akti Miaouli, 185 38 Piraeus, Greece, as agent for the
service of process in Greece (“antiklitos”) and agrees to consider any legal process or
any demand or notice made served on behalf of the Lender on the said agent as being made to
such Relevant Party. The designation of such an authorized agent (“antiklitos”) shall
remain irrevocable until all Indebtedness shall have been paid in full in accordance with
the terms of this Agreement and the Relevant Documents.

8

 

	9.6	 	Nothing in this Clause 9 shall exclude or limit any right which the Lender may have (whether
under the law of any country, an international convention or otherwise) with regard to the
bringing of proceedings, the service of process, the recognition or enforcement of a judgment
or any similar or related matter in any jurisdiction.
	 
	9.7	 	In this Clause 9, “proceedings” means proceedings of any kind, including an application for a
provisional or protective measure or enforcement court order (diatagi pliromis).
	 
	10.	 	Contract (Rights of Third Parties) Act 1999
	 
	 	 	No term of this Agreement is enforceable under the Contract (Rights of Third Parties) Act
1999 by a person who is not a party to this Agreement.

IN WITNESS whereof the parties to this Agreement have caused this Agreement to be duly executed as
a deed on the date first above written.

9

 

EXECUTION PAGE

	 	 	 

	BORROWER
	 	 
	 
	 	 
	Signed by Todd Johnson

	 	 ) /s/ Todd Johnson
	for and on behalf of

	 	 )
	NAVIOS SHIPMANAGEMENT INC.

	 	 )
	in the presence of:

	 	 )
	/s/ Anna Zois
	 	 
	Anna Zois
	 	 
	V&P Law Firm
	 	 
	15 Filikis Eterias Square
	 	 
	106 73 Athens, Greece
	 	 
	 
	 	 
	PARENT GUARANTOR
	 	 
	 
	 	 
	Signed by Todd Johnson

	 	 ) /s/ Todd Johnson
	for and on behalf of

	 	 )
	NAVIOS MARITIME HOLDINGS INC.

	 	 )
	in the presence of:

	 	 )
	/s/ Anna Zois
	 	 
	Anna Zois
	 	 
	V&P Law Firm
	 	 
	15 Filikis Eterias Square
	 	 
	106 73 Athens, Greece
	 	 
	 
	 	 
	ASTRA OWNER
	 	 
	 
	 	 
	Signed by Todd Johnson

	 	 ) /s/ Todd Johnson
	for and on behalf of

	 	 )
	ASTRA MARITIME CORPORATION

	 	 )
	in the presence of:

	 	 )
	/s/ Anna Zois
	 	 
	Anna Zois
	 	 
	V&P Law Firm
	 	 
	15 Filikis Eterias Square
	 	 
	106 73 Athens, Greece
	 	 

10

 

	 	 	 

	LENDER
	 	 
	 
	 	 
	Signed by Vasiliki Katsouli

	 	 ) /s/ Vasiliki Katsouli
	for and on behalf of

	 	 )
	MARFIN POPULAR BANK PUBLIC CO LTD

	 	 )
	in the presence of:

	 	 )
	/s/ Anna Zois
	 	 
	Anna Zois
	 	 
	V&P Law Firm
	 	 
	15 Filikis Eterias Square
	 	 
	106 73 Athens, Greece
	 	 

11

 

Date 23 October 2009

as amended by a side letter dated 7 September 2010, by a first supplemental agreement dated

28 January 2011 and as further amended and restated on 6 May 2011

NAVIOS SHIPMANAGEMENT INC.

as Borrower

- and -

MARFIN POPULAR BANK PUBLIC CO LTD

as Lender

 

LOAN AGREEMENT

relating to a revolving credit facility

of up to $30,000,000

 

12

 

TABLE OF CONTENTS

	 	 	 	 	 

	1 Definitions, Amount, Purpose and Availability
	 	 	1	 
	 
	 	 	 	 
	2 Drawdown
	 	 	2	 
	 
	 	 	 	 
	3 Security
	 	 	9	 
	 
	 	 	 	 
	4 Repayment- Reduction — Prepayment
	 	 	10	 
	 
	 	 	 	 
	5 Fees and Expenses
	 	 	14	 
	 
	 	 	 	 
	6 Interest Periods
	 	 	15	 
	 
	 	 	 	 
	7 Interest
	 	 	16	 
	 
	 	 	 	 
	8 Default Interest
	 	 	16	 
	 
	 	 	 	 
	9 Substitute Basis
	 	 	17	 
	 
	 	 	 	 
	10 Representations and Warranties and Undertakings
	 	 	18	 
	 
	 	 	 	 
	11. Payments
	 	 	35	 
	 
	 	 	 	 
	12. Indemnity
	 	 	35	 
	 
	 	 	 	 
	13. Set-Off
	 	 	36	 
	 
	 	 	 	 
	14. Events of Default
	 	 	36	 
	 
	 	 	 	 
	15. Assignment -Change of Lending Office
	 	 	38	 
	 
	 	 	 	 
	16. Notices
	 	 	38	 

 

 

	 	 	 	 	 

	17. Law and Jurisdiction
	 	 	39	 
	 
	 	 	 	 
	18. Miscellaneous
	 	 	40	 
	 
	 	 	 	 
	SCHEDULE 1: Definitions and Expressions
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 2: Notice of Drawdown
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 3: Acknowledgement
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 4: Indenture Excerpt B
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 5: Indenture Excerpt A
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 6: Form of Compliance Certificate
	 	 	 	 

2

 

THIS LOAN AGREEMENT is made on 23 October 2009 as amended by a side letter dated 7 September 2010
and by a first supplemental agreement dated 28 January 2011 and as further amended and restated on
6 May 2011

BETWEEN:

	(1)	 	NAVIOS SHIPMANAGEMENT INC. as Borrower; and

	(2)	 	MARFIN POPULAR BANK PUBLIC CO LTD (successor by way of cross-border merger of Marfin Egnatia
Bank Societe Anonyme), as Lender.

WHEREAS:

The Borrower has requested and the Lender has agreed to make available to the Borrower a revolving
credit facility of up to Thirty million Dollars ($30,000,000) for the purposes of (i) providing the
Borrower with funds to be on lent to the Astra Owner and/or any other member of the Group for the
purpose of (a) assisting the Astra Owner in refinancing shareholders’ loans incurred in connection
with the acquisition of the Astra Ship and/or (b) assisting any other member of the Group in
financing or refinancing (as the case may be) part of the Contract Price of any other Additional
Ship and (ii) providing the Borrower and/or any other member of the Group with working and
investment capital on the terms and conditions hereinafter set forth.

Definitions, Amount, Purpose and Availability

	1.1	 	Schedule 1 sets out definitions or expressions used in this Loan Agreement.
	 
	1.2	 	The amount of the Loan shall not exceed in aggregate Thirty million Dollars ($30,000,000) and
shall be available to the Borrower in two (2) Tranches in the following amounts and for the
following purposes:
	 
	1.2.1	 	Tranche A of up to an amount which when added to any amounts drawn down and outstanding
under Tranche B shall not exceed Thirty million Dollars ($30, 000,000) to be made available in
multiple Advances (together the “Tranche A Advances” and singly each a “Tranche A Advance”) in
amounts approved by the Lender for the purposes of providing the Borrower with funds to be on
lent to one or more member(s) of the Group for the purpose of assisting such member(s) of the
Group in financing or refinancing part of the Contract Instalments or Contract Price (as the
case may be) of the relevant Additional Ship;
	 
	1.2.2	 	Tranche B of up to an amount which when added to any amounts drawn down and outstanding
under Tranche A shall not exceed Thirty million Dollars ($30,000,000) to be made available in
multiple Advances as follows:

1

 

	 	(i)	 	an Advance (the “Astra Ship Advance”) in an amount of up to
Eighteen million Eight hundred Fifty thousand Dollars ($18,850,000) for the
purpose of providing the Borrower with funds to be on lent to the Astra Owner
for the purpose of (A) assisting the Astra Owner in refinancing shareholders’
loans incurred in connection with the acquisition of the Astra Ship and (B)
providing the Astra Owner with working and investment capital and following a
prepayment of the Astra Ship Advance in part or in full:
	 
	 	(ii)	 	Advances (together the “Tranche B Additional Ship Advances” and
singly each a “Tranche B Additional Ship Advance”) in amounts approved by the
Lender for the purposes of providing the Borrower with funds to be on lent to
one or more member(s) of the Group for the purpose of assisting such member(s)
of the Group in financing part of the Contract Instalments or the Contract
Price or any part thereof (as the case may be) of the relevant Additional Ship;
and/or
	 
	 	(iii)	 	Advances (hereinafter called together the “Investment and
Working Capital Advances” and singly each an “Investment and Working Capital
Advance” and together with the Astra Ship Advance and the Tranche B Additional
Ship Advances the “Tranche B Advances” and singly each a “Tranche B Advance”)
in amounts approved by the Lender in its sole and absolute discretion, for the
purpose of providing the Borrower and/or any other member of the Group with
working and investment capital.

	1.3	 	Subject as herein provided, each Advance under a Tranche shall be available to the Borrower
for drawing only during the Availability Period in respect of such Advance. Any part of a
Tranche which remains undrawn at the close of business in Athens on the relevant Termination
Date shall be automatically cancelled.

Drawdown

	2.1	 	Subject to:

	(i)	 	the receipt by the Lender of the documents referred to in Clauses 2.6, 2.7, 2.8 and 2.9 in
form and substance satisfactory to the Lender and its legal advisors before the relevant
Drawdown Date;

	(ii)	 	no Event of Default or an event which with the giving of notice or passage of time or
satisfaction of any other condition or any combination of the foregoing, may become an Event
of Default having occurred;

2

 

	(iii)	 	the representations and warranties set out in Clause 10 (updated mutatis mutandis to the
relevant Drawdown Date) being true and correct; and

	(iv)	 	the receipt by the Lender of a notice of drawdown substantially in the form set forth in
Schedule 2 (the “Notice of Drawdown”) not later than 11:00 a.m. (London time) three (3)
Business Days prior to the relevant Drawdown Date (or on such earlier Business Day as may be
agreed by the Lender) setting out the proposed Drawdown Date,

	 	 	an Advance shall be made available to the Borrower under a Tranche in accordance with and on
the terms and conditions of this Loan Agreement.

	2.2	 	Each Notice of Drawdown shall be irrevocable and shall commit the Borrower to borrow on the
date stated.

	2.3	 	On payment of the amount drawdown in respect of each Advance the Borrower shall sign an
acknowledgment substantially in the form set forth in Schedule 3 (the “Acknowledgment”).

	2.4	 	Unless otherwise expressly agreed between the Borrower and the Lender no Advance under a
Tranche shall be made:

	2.4.1	 	if by being drawn down it would increase the Tranche in respect of which it is drawn down to
a sum in excess of the Applicable Limit in respect thereof; and/or

	2.4.2	 	in an amount of less than Five million Dollars ($5,000,000) or multiples
thereof.

	2.5	 	The Borrower may, at any time during the Availability Period, cancel either Tranche or, as
the case may be, any part thereof which remains undrawn in whole or in part (but if in part in
a minimum of One million Dollars ($1,000,000) or a multiple thereof upon giving the Lender
three (3) Business Days’ notice in writing to that effect. Such notice once given shall be
irrevocable and upon such cancellation taking effect the relevant Tranche or the relevant part
thereof shall be reduced accordingly. Notwithstanding any such cancellation pursuant to this
Clause 2.5 the Borrower shall continue to be liable for any and all amounts due to the Lender
under this Loan Agreement including without limitation any amounts due to the Lender under
Clauses 7, 8, 9 and 12.

	2.6	 	Notwithstanding the provisions of Clauses 2.1-2.5 the agreement of the Lender to permit the
Drawdown of an Advance under a Tranche is subject to the condition that the Lender shall have
received not later than the Drawdown Date in respect thereof the following documents or
evidence in form and substance satisfactory to the Lender and its legal advisors:

	 	(a)	 	copies certified as true copies of the certificate of incorporation and
constitutional documents of the Borrower, the Parent Guarantor and each Relevant Owner
(each a “Relevant Security Party”);

3

 

	 	(b)	 	original resolutions of the directors and of the shareholders (other than the
Parent Guarantor) of each Relevant Security Party authorising the execution of each of
the Finance Documents to which such Relevant Security Party is a party (the “Relevant
Finance Documents”) and, in the case of the Borrower, authorising named officers
or attorneys to sign or execute on behalf of the Borrower the Notice of Drawdown,
the Acknowledgment and other notices under this Loan Agreement;
	 
	 	(c)	 	the original of any power of attorney under which any Relevant Finance Document
is executed on behalf of each Relevant Security Party;
	 
	 	(d)	 	certificates or other evidence satisfactory to the Lender in its sole
discretion of the existence and goodstanding of each Relevant Security Party dated not
more than fifteen (15) days before the date of this Loan Agreement;
	 
	 	(e)	 	certified copies of all documents (with a certified translation if an original
is not in English) evidencing any other necessary action (including but without
limitation governmental approval, consents, licences, authorisations, validations or
exemptions which the Lender or its legal advisers may require) by the Relevant Security
Party with respect to this Loan Agreement and the other Relevant Finance Documents;

4

 

	 	(f)	 	copies of all consents which each Relevant Security Party requires to enter into,
or make any payment under, any Relevant Finance Document and any Underlying Document to
which such Relevant Security Party is a party and evidence as the Lender and/or its
legal advisers shall require;
	 
	 	(g)	 	evidence that the Borrower’s Pledged Account has been duly opened by the
Borrower with the Account Branch and that all mandate forms, signature cards and
authorities have been duly delivered and that such account is free of all liens or
charges other than the liens and charges in favour of the Lender referred to therein;
	 
	 	(h)	 	a letter from each Relevant Security Party’s agent for receipt of service of
proceedings referred to in Clauses 17.4 and 17.5 accepting its/her appointment under
the said Clauses and under each of the other Relevant Finance Documents in which it/she
is or is to be appointed as such Relevant Security Party’s agent, provided that such
documents may be delivered within five (5) Business Days after the relevant Drawdown
Date;
	 
	 	(i)	 	favourable legal opinions addressed to the Lender from lawyers appointed by the
Lender on such matters concerning the laws of the Marshall Islands and such other
relevant jurisdictions as the Lender may require in form and substance satisfactory to
the Lender;
	 
	 	(j)	 	evidence that the fees and expenses payable to the Lender on the date of this
Loan Agreement in accordance with Clause 5 (iii) have been duly paid;
	 
	 	(k)	 	such documentation and other evidence (in form and substance satisfactory to
the Lender) as is reasonably requested by the Lender in order for the Lender to comply
with all necessary “know your customer” or similar identification procedures in
relation to the transactions contemplated in the Relevant Finance Documents;
	 
	 	(l)	 	the Relevant Finance Documents listed in Clause 3 sub clauses (f) and (g) duly
executed by the Relevant Security Parties and/or the Parent Guarantor (as the case may
be); and
	 
	 	(m)	 	such further documents (in accordance with normal banking practice) and
evidence as the Lender may reasonably hereafter request.

	2.7	 	In addition to the conditions referred to in Clause 2.6, all of which must have been
fulfilled to the satisfaction to the Lender at the times and in the manner referred to
therein, the agreement of the Lender to permit the Drawdown of an Additional Ship Advance in
respect of a Newbuilding Ship is subject to the condition that the Lender shall have received
not later than the Drawdown of the relevant Advance the following documents in form and
substance satisfactory to the Lender and its legal advisors:

5

 

	 	(a)	 	an original or (in the Lender’s discretion) executed certified true copy of
each relevant Underlying Document together with such evidence as the Lender and/or its
legal advisers shall require in relation to the due authorisation and execution by the
relevant Refund Guarantor and/or the relevant Builder of the relevant Underlying
Document;
	 
	 	(b)	 	confirmation by the Borrower and/or the Relevant Owner that the relevant
Builder (and any other party who may have a claim pursuant to the relevant Contract)
has no claims against the Relevant Ship and/or the Relevant Owner and that (save as
disclosed to the Lender in writing) there have been no breaches of the terms of the
relevant Contract or the relevant Refund Guarantee in respect of the Relevant Ship or
any default thereunder;
	 
	 	(c)	 	confirmation by the Borrower and/or the Relevant Owner that (save as disclosed
to the Lender in writing and save as provided in the relevant Refund Guarantee
Amendments) there have been no amendments or variations agreed to the relevant Contract
in respect of the Relevant Ship or any Refund Guarantee in respect of the Relevant Ship
and that no action has been taken by the relevant Builder or the relevant Refund
Guarantor which might in any way render such relevant Contract or relevant Refund
Guarantee inoperative or unenforceable, in whole or in part;
	 
	 	(d)	 	confirmation by the Borrower and/or the Relevant Owner that save for the
Encumbrances created by the relevant Finance Documents in respect of the Relevant Ship
there is no Encumbrance of any kind created or permitted by any person on or relating
to the relevant Underlying Document in respect of the Relevant Ship;
	 
	 	(e)	 	evidence that all monies due to the relevant Builder under each relevant
Contract up to the relevant Drawdown Date have been paid;
	 
	 	(f)	 	the relevant Refund Guarantee in respect of each Relevant Ship duly issued by
the relevant Refund Guarantor (or in the event that such Refund Guarantee is sent by
swift, a copy of such swift);
	 
	 	(g)	 	the Relevant Finance Documents listed in Clause 3 sub clauses (a), (b), (c) and
(g) duly executed by the Relevant Security Parties;
	 
	 	(h)	 	the acknowledgments listed in Clause 3 sub clauses (d) and (e) duly executed by
the relevant Builder or the relevant Refund Guarantor (as the case may be);
	 
	 	(i)	 	a copy of the email or telefax advice from the relevant Builder as same is
confirmed by the classification society of the Relevant Ship that the steel cutting
and/or keel laying and/or launching of that Relevant Ship has been completed;

6

 

	 	(j)	 	a duly issued invoice (or other evidence satisfactory to the Lender in its
absolute discretion) from the relevant Builder showing all sums (including interest (if
any) then
due and payable to the relevant Builder in relation to the relevant Contract
Instalment pursuant to the relevant Contract; and
	 
	 	(k)	 	evidence that the Relevant Owner’s Pledged Account has been duly opened by the
Borrower with the Lender and that all mandate forms, signature cards and authorities
have been duly delivered and that such account is free of all liens or charges other
than the liens and charges in favour of the Lender referred to therein.

	2.8	 	In addition to the conditions referred to in Clause 2.6, all of which must have been
fulfilled to the satisfaction of the Lender at the time and in the manner referred to therein,
the agreement of the Lender to permit the Drawdown of an Additional Ship Advance in relation
to a Delivered Ship is further subject to the condition that the Lender shall have received
not later than the Drawdown of the relevant Advance the following documents in form and
substance satisfactory to the Lender and its legal advisors:

	 	(a)	 	evidence that the Relevant Owner’s Earnings Account has been duly opened by the
Relevant Owner with the Account Branch and that all mandate forms, signature cards and
authorities have been duly delivered and that such account is free of all liens or
charges other than the liens and charges in favour of the Lender referred to therein;
	 
	 	(b)	 	confirmation by the Borrower and/or the Relevant Owner that save for the
Encumbrances created by the Relevant Finance Documents in respect of the Relevant Ship,
there is no Encumbrance of any kind created or permitted by any person on or relating
to the relevant Underlying Document in respect of the Relevant Ship;
	 
	 	(c)	 	evidence that the Relevant Ship shall on the Drawdown Date of such Advance be
duly registered in the ownership of the Relevant Owner under the laws and flag of the
relevant Flag State, free from registered Encumbrances other than the Finance Document
referred to in sub-Clause 3(h) to be registered thereon;
	 
	 	(d)	 	the Finance Documents listed in Clause 3 sub-clauses (g) (in respect of the
Relevant Owner’s Earnings Account to be opened in the name of the Relevant Owner ),
(h), (i), (j), (k), (l) and (m) duly executed by the Relevant Owner or the Manager (as
the case may be);
	 
	 	(e)	 	evidence that the Relevant Ship is insured in accordance with the provisions of
this Loan Agreement;
	 
	 	(f)	 	evidence that the Relevant Ship is classed at the highest classification status
with her Classification Society;

7

 

	 	(g)	 	certified copies of the classification and international safety and trading
certificates issued by the Classification Society of the Relevant Ship free of
recommendations or other conditions or notations affecting her class;
	 
	 	(h)	 	certified copy of the Management Agreement in respect of the Relevant Ship;
	 
	 	(i)	 	copies of ISM Code Documentation and the ISPS Code Documentation in respect of
the Relevant Ship, the Relevant Owner and the Manager;
	 
	 	(j)	 	a charter-free or (in the Lender’s sole discretion) a charter-attached
valuation of the Relevant Ship on the basis of Clause 10.9 (i);
	 
	 	(k)	 	evidence that the balance Contract Price (save for the part being financed
pursuant to the relevant Advance (other than the Astra Ship Advance)) due to the
relevant Seller in respect of that Relevant Ship under the relevant Contract has been
or will immediately on Drawdown of the relevant Advance in respect of the Relevant
Ship, be paid to the relevant Seller; and
	 
	 	(l)	 	copies of the relevant Underlying Documents (including, without limitation, the
protocol of delivery and acceptance, bill of sale, commercial invoice) in respect of
the Relevant Ship, duly executed and certified as true and complete copies thereof by
the Borrowers’ legal counsels.

	2.9	 	In addition to the conditions referred to in Clauses 2.6, 2.7 and 2.8, all of which must have
been fulfilled to the satisfaction of the Lender at the times and in the manner referred to
therein, the agreement of the Lender to permit the Drawdown of a Tranche A Advance in respect
of a Newbuilding Ship is subject to the condition that the Lender shall have received not
later than the Drawdown Date of the relevant Tranche A Advance the Post Delivery Documents in
form and substance satisfactory to the Lender and its legal advisors.
	 
	2.10	 	For the purposes of Clauses 2.7, 2.8, 2.9, 2.11 and 3 the expression “Relevant Ship” means in
respect of the Drawdown of the Astra Ship Advance the Astra Ship and in respect of the
Drawdown of any Additional Ship Advance under either Tranche the Additional Ship financed by
such Additional Ship Advance and the expression “Relevant Owner” shall be construed
accordingly.
	 
	2.11	 	Without prejudice to any of the foregoing provisions of Clauses 2.6., 2.7 and 2.9 the Lender
may, at the written request of the Borrower, consent to the payment of the amount of one or
more Advances to the credit of the Borrower’s Pledged Account prior to the satisfaction of the
relevant conditions referred to in Clauses 2.6, 2.7 and 2.9 and thereafter permit the release
from the Borrower’s Pledged Account of monies in amounts approved by the Lender gradually to a
Relevant Owner’s Pledged Account to be used for the payment of the relevant Steel Cutting
Instalment and/or the relevant Launching Instalment and/or the relevant Keel
Laying Instalment
or any part thereof or any other part of the relevant Contract Price of the Relevant Ship to
be acquired by the Relevant Owner payable on the relevant Steel Cutting Instalment Payment
Date or the relevant Launching Instalment Payment Date or the relevant Keel 

8

 

	 	 	Laying Instalment
Payment Date or any other date on which payment of the relevant part of the relevant Contract
Price is required to be made in accordance with the terms of the relevant Contract, by the
Relevant Owner upon satisfaction of the conditions precedent. PROVIDED HOWEVER THAT the Lender
may permit the Drawdown of an Advance (other than an
Advance credited to the Borrower’s Pledged Account in accordance with the provisions of
Clause 2.11) and/or the release of monies credited to the Borrower’s Pledged Account prior
to the satisfaction of the relevant conditions precedent stated in Clauses 2.6 and/or 2.7
and/or 2.9 and in such case the Borrower hereby covenants and undertakes to satisfy or
procure the satisfaction of such conditions or conditions within ten (10) Business Days
after the date of the relevant Drawdown Date or the release of funds from the Borrower’s
Pledged Account (as the case may be).

Security

	 	 	As security for the due and punctual repayment of the Loan and the payment of interest
thereon all other sums of money whatsoever from time to time due and owing from the Borrower
to the Lender hereunder, the Lender shall receive the following security documents in form
and substance satisfactory to the Lender at the time specified by the Lender or otherwise as
required by the Lender:

	 	(a)	 	each Owner’s Guarantee duly executed by the relevant Owner in favour of the
Lender;
	 
	 	(b)	 	In relation to each Newbuilding Ship: a first priority assignment of the
rights of each Relevant Owner under the relevant Contract duly executed by such
Relevant Owner in favour of the Lender together with respective notices thereof;
	 
	 	(c)	 	In relation to each Newbuilding Ship: a first priority assignment of the
rights of each relevant Owner in the relevant Refund Guarantee duly executed by such
Relevant Owner in favour of the Lender together with respective notices thereof;
	 
	 	(d)	 	an acknowledgement of the notice of assignment relating to each relevant
Contract duly executed by the relevant Builder, such acknowledgement to be received
within thirty (30) Business Days after the relevant Drawdown Date;
	 
	 	(e)	 	an acknowledgement of the notice of assignment relating to each relevant Refund
Guarantee duly executed by the relevant Refund Guarantor, such acknowledgement to be
received within thirty (30) Business Days after the relevant Drawdown Date;
	 
	 	(f)	 	the Parent Guarantee duly executed by the Parent Guarantor in favour of the
Lender;
	 
	 	(g)	 	a first priority assignment, pledge and charge, duly executed by the
Borrower and/or the Relevant Owner (as the case may be) in favour of the Lender,
assigning, pledging and charging any monies from time to time standing to the credit of
the relevant 

9

 

	 	 	 	Owner’s Pledged Account and the Relevant Owner’s Earnings Account opened
in the name of the Borrower or such Relevant Owner (as the case may be);
	 
	 	(h)	 	in relation to each Delivered Ship a first preferred mortgage or, as the case
may be, a first priority mortgage and deed of covenants collateral thereto, duly
executed by the
Relevant Owner in favour of the Lender and duly recorded with the appropriate
authorities of the relevant Flag State;
	 
	 	(i)	 	in relation to each Delivered Ship, a first priority deed of assignment
relative to the Earnings, Insurances and Requisition Compensation of that Ship duly
executed by the Relevant Owner in favour of the Lender;
	 
	 	(j)	 	in relation to each Delivered Ship, the notices of assignment of the Earnings
and the Insurances in respect of that Ship duly signed by the Relevant Owner;
	 
	 	(k)	 	in relation to each Delivered Ship, a letter of undertaking including, where
appropriate, an assignment of any obligatory insurances, duly executed by the Manager
in favour of the Lender;
	 
	 	(l)	 	in relation to each Delivered Ship, a first priority specific assignment of the
rights, title and interest of the Relevant Owner in, inter alia, the relevant Charter
duly executed by the Relevant Owner in favour of the Lender; and
	 
	 	(m)	 	in relation to each Delivered Ship, notices of assignment of the relevant
Charter in respect of such Ship duly signed by the Relevant Owner.

Repayment- Reduction — Prepayment

	4.1	 	Subject as hereinafter provided, the aggregate of all outstanding amounts under each Tranche
shall be repaid by the Borrower to the Lender on the Original Expiration Date for that Tranche
or, subject to Clause 4.2 in the case of any extension or renewal of that Tranche pursuant to
Clauses 4.2 the last Business Day of the period specified in the Lender’s notice referred to
in Clause 4.3 whereupon the relevant Tranche shall be cancelled and no further Advances in
respect of that Tranche shall be drawn down.
	 
	4.2	 	The Borrower may request in writing an extension of a Tranche for further periods of up to
twelve (12) months, PROVIDED THAT such request must be addressed to the Lender at least twenty
(20) Business Days prior to the Original Expiration Date for that Tranche or (in case that
Tranche has already been extended pursuant to the terms of this Clause 4.2) twenty (20)
Business Days prior to the relevant Expiration Date specified in the Lender’s notice referred
to in Clause 4.3.

10

 

	4.3	 	The Lender may (in its sole and absolute discretion) by a notice in writing to the
Borrower, consent to the request of the Borrower referred to in Clause 4.2 above and agree to
the extension of the repayment of the relevant Tranche for one or more periods of up to twelve
(12) months. PROVIDED HOWEVER THAT the Lender may at its discretion, upon giving its consent
to such extension adjust the Applicable Limit as it may deem appropriate. If the Lender does
not give such consent as aforesaid, all outstanding amounts of the relevant
Tranche shall be repayable in accordance with Clause 4.1.
	 
	4.4	 	(i) The Borrower accepts and agrees than on each Reduction Date in respect of the Astra Ship
Advance the maximum amount of the Astra Ship Advance shall be reduced to the Applicable Limit
in respect thereof available on such Reduction Date and in case that on any Reduction Date the
outstanding principal amount of the Astra Ship Advance drawn down and outstanding on such
Reduction Date, exceeds the Applicable Limit available in respect of the Astra Ship Advance on
such Reduction Date, the Borrower covenants to pay to the Lender on such Reduction Date such
part of the Astra Ship Advance as shall be required in order to reduce the amount outstanding
under the Astra Ship Advance to the Applicable Limit available in respect thereof on such
Reduction Date:

	 	 	 	 	 
	Reduction Date	 	Applicable Limit on the relevant Reduction Date	 
	1
	 	 	18,378,750	 
	2
	 	 	17,907,500	 
	3
	 	 	17,436,250	 
	4
	 	 	16,965,000	 
	5
	 	 	16,493,750	 
	6
	 	 	16,022,500	 
	7
	 	 	15,551,250	 
	8
	 	 	0	 

(ii) The Borrower accepts and agrees that on each relevant Reduction Date in respect of any
Additional Ship Advance (other than the Astra Ship Advance) in respect of a Delivered Ship
(other than the Astra Ship), the maximum amount of such Additional Ship Advance shall be
reduced to the Applicable Limit in respect thereof available on such Reduction Date and in
case that on any Reduction Date the outstanding principal amount of the relevant Additional
Ship Advance drawn down and outstanding on such Reduction Date, exceeds the Applicable Limit
available in respect of such Additional Ship Advance on such Reduction Date, the Borrower
covenants to pay to the Lender on such Reduction Date such part of such Additional Ship
Advance as shall be required in order to reduce the amount outstanding under such Additional
Ship Advance to the Applicable Limit available in respect thereof on such Reduction Date.

(iii) The Lender may, in its sole and absolute discretion, at least two (2) Business Days
prior to the Drawdown Date of an Additional Ship Advance in respect of a Delivered Ship,
prepare and deliver to the Borrower a Reduction Schedule applicable to such Additional
Advance, which Reduction Schedule shall be binding on the Borrower and shall be considered
as an integral part of this Loan Agreement.

	4.5	 	Subject to the provisions of Clause 4.6 on the Delivery Date of each Ship (other than a
Delivered Ship) (for the purposes of this Clause 4.5 referred to as the “Original Ship”), the
Borrower shall either (i) mandatorily prepay to the Lender an amount equal to the amounts of

11

 

	 	 	the Advances related to the relevant Original Ship whereupon the Applicable Limit of the
relevant Tranche shall be reduced by the amounts so prepaid or, at its option, (ii) pay to the
credit of the Borrower’s Pledged Account the amount referred to in sub-paragraph 4.5(i) above,
whereupon in either such case the Lender shall release the relevant Owner from its obligation
under this Loan Agreement and the other Finance Documents to which such Owner is a party.
	 
	4.6	 	(a) The Borrower shall have the option to be exercised in writing at the time before payment
becomes due (the “Due Date”) to the Lender pursuant to Clause 4.5, to nominate to the Lender
an alternative ship or ships as security for the obligations of the Borrower under this Loan
Agreement and the other Finance Documents to which it is party.
	 
		 	(b) The Lender in its sole and absolute discretion, may accept one or more of such
nominated ships (together the “Substitute Ships” and singly each a “Substitute Ship”)
as security, and the Borrower shall in lieu of making payment of the amount due on the
Due Date (the “Original Amount”) provide the documents, evidence and payment referred
to in Clause 4.6.1 on or before the Due Date.
	 
		 	(c) If the Lender does not accept a Substitute Ship or Substitute Ships, the
Borrower shall comply with Clause 4.5.
	 
	4.6.1	 	If the Lender approves a Substitute Ship, the Borrower shall on or before the Due Date:

	 	(i)	 	provide to the Lender documentation and evidence in respect of the Substitute
Ship or Substitute Ships equivalent to that set out in Clauses 2.6, 2.7, 2.8 and 2.9
(for the avoidance of doubt Clause 2.7 sub clauses (a)-(j) are applicable only if such
Substitute Ship is a newbuilding vessel and Clause 2.8 is applicable only if such
Substitute Ship is a secondhand vessel) in form and substance satisfactory to the
Lender and its legal advisors; and
	 
	 	(ii)	 	at its cost, enter into such documentation supplemental to this Loan Agreement as the
Lender may reasonably request.

	4.7	 	Unless an Event of Default has occurred (whereupon the provisions of Clause 14.2 shall
apply), if at any time during the Pre-Delivery Period for a Newbuilding Ship, that Newbuilding
Ship is sold or the Contract for that Newbuilding Ship is assigned, transferred, sold or
novated to or in favour of any person (with the Lender’s prior written consent), the Borrower
shall mandatorily prepay to the Lender on or before the date of either (i) the completion of
the sale and delivery of such Newbuilding Ship to the buyers thereof or (ii) the assignment,
transfer, novation or sale of the Contract for the relevant Newbuilding Ship, an amount of the
Loan equal to the amount of the relevant sale or transfer or assignment or novation proceeds
(net of commissions) provided however that unless the Lender otherwise agrees in writing, all
sums so prepaid shall be applied by the Lender towards prepayment of the Tranche pursuant to
which such Newbuilding Ship was financed under this Loan Agreement or (in case of a Substitute
Ship) the Tranche pursuant to which the Original Ship which was substituted by such Substitute
Ship was financed under this Loan Agreement, the Applicable Limit shall be reduced by the
amounts so prepaid and applied.
	 
	4.8	 	Unless an Event of Default has occurred (whereupon the provisions of Clause 14.2 shall
apply), the Borrower shall be obliged to prepay the relevant proportion of the Loan in the
case 

12

 

	 	 	of sale of a Delivered Ship (with the Lender’s prior written consent) other than a sale
provided for in Clause 4.7) or a Delivered Ship becoming a Total Loss or being refinanced or
the Finance Document referred to in sub-Clause 3 (h) on that Delivered Ship being discharged
and released pursuant to sub-Clause 4.8(c):

	 	(a)	 	in the case of a sale, on or before the date on which the sale is completed by
delivery of that Delivered Ship to its buyer; or
	 
	 	(b)	 	in the case of a Total Loss, on the earlier of the date falling one hundred
eighty (180) days after the date of occurrence of such Total Loss and the date of
receipt by the Lender of the proceeds of insurance relating to such Total Loss; or
	 
	 	(c)	 	in the case of a refinancing or discharge and release of the Finance Document
referred to in sub-Clause 3 (h) (other than in the circumstances referred to in
sub-paragraph (a) above and where the Borrower and/or the relevant Owner and the other
Security Parties have discharged all their obligations under the relevant Finance
Documents), on or before the date on which the relevant refinancing occurs or the
relevant Finance Documents are discharged and released

	 	 	and in this Clause 4.8 “relevant proportion” means in relation to a Delivered Ship an amount
equal to the relevant sale, Total Loss or refinancing or discharge of the Finance Documents
(referred to in sub-Clause 3 (h)) proceeds and any other amount required in order to prepay
the Additional Ship Advance drawn down and outstanding in respect of that Delivered Ship and
unless the Lender otherwise expressly agrees in writing, upon application of any sums
prepaid under this Clause 4.8 towards prepayment of the Loan, the Applicable Limit in
respect of the relevant Additional Ship Advance and the relevant Tranche shall be reduced by
the amounts so prepaid and applied.

	4.9	 	For the purposes of Clause 4.8 a Total Loss shall be deemed to have occurred:

	 	a)	 	in the case of an actual total loss of a Delivered Ship on the actual date and
at the time that Delivered Ship was lost or if such date is not known, on the date on
which such Delivered Ship was last reported;
	 
	 	b)	 	in the case of a constructive total loss of a Delivered Ship upon the date and
at the time notice of abandonment of such Delivered Ship is given to the Insurers of
that Delivered Ship for the time being (provided a claim for such total loss is
admitted by the Insurers) or, if the Insurers do not admit such a claim, or, in the
event that such notice of abandonment is not given by the Owner thereof to the Insurers
of that Delivered Ship, on the date and at the time on which the incident which may
result, in that Delivered Ship being subsequently determined to be a constructive total
loss has occurred;
	 
	 	c)	 	in the case of a compromised or arranged total loss of a Delivered Ship, on the
date upon which a binding agreement as to such compromised or arranged total loss has
been entered into by the Insurers of such Delivered Ship;

13

 

	 	d)	 	in the case of Compulsory Acquisition of a Delivered Ship, on the date upon
which the relevant Compulsory Acquisition occurs; and
	 
	 	e)	 	in the case of hijacking, theft, condemnation, capture, seizure, arrest,
detention or confiscation of a Delivered Ship (other than where the same amounts to
Compulsory Acquisition of such Delivered Ship) by any Government Entity, or by persons
purporting to act on behalf of any Government Entity or by pirates, hijackers,
terrorists or similar persons, which deprives the Owner thereof of the use of that
Delivered Ship for more than thirty (30) days (save in the case of piracy which the
deprives the Owner thereof of the use of that Delivered Ship for more than one hundred
and twenty (120) days) or such lesser period provided in such Delivered Ship’s War
Risks Insurances upon the expiry of the aforesaid period after the date upon which the
relevant hijacking, theft, condemnation, capture, seizure, arrest, detention or
confiscation occurred.

	4.10	 	On giving not less than fifteen (15) days’ prior written notice to the Lender the Borrower
may prepay all or any part of the Loan (but if in part the amount to be prepaid shall be a
multiple of $500,000) at the end of the then current Interest Period. The Borrower shall
obtain any consent or approval from the relevant authorities that may be necessary to make any
such prepayment of the Loan or part thereof and if it fails to obtain and/or comply with the
terms of such consent or approval and in consequence thereof the Lender has to repay the
amount prepaid or the Lender incurs any penalty or loss then the Borrower shall indemnify the
Lender forthwith against all amounts so repaid and/or against all such penalties and losses
incurred.
	 
	4.11	 	Unless the Lender otherwise expressly agrees in writing, all prepayments under Clause 4.10
shall be applied towards prepayment of the Tranche selected by the Borrower in such manner as
shall be determined by the Lender in its sole discretion; provided however that unless the
Lender otherwise requires any sums so prepaid shall be available for reborrowing up to the
Applicable Limit prevailing at the relevant time in accordance with the provisions of Clause 4.15.
	 
	4.12	 	Each amount payable in respect of the Loan shall be repaid in Dollars.
	 
	4.13	 	Any prepayment of the Loan or any part thereof made or deemed to be made under this Loan
Agreement shall be made together with accrued interest and any other amount payable in
accordance with Clauses 5 and/or 12 and (if made otherwise, than at the end of an Interest
Period relative to the amounts prepaid) such additional amount (if any) as the Lender may
certify as necessary to compensate the Lender for any Broken Funding Costs incurred or to be
incurred by it as a result of such prepayment.
	 
	4.14	 	Any notice of prepayment given by the Borrower under this Loan Agreement shall be irrevocable
and the Borrower shall be bound to prepay in accordance with each such notice.
	 
	4.15	 	Subject to the other provisions of this Loan Agreement (including, without limitation,
Clauses 9, 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 14 and 15.1) any prepayment made under this
Loan Agreement and applied against the Loan or any part thereof may be reborrowed hereunder.

Fees and Expenses

14

 

	 	 	The Borrower shall pay to the Lender:

	 	(i)	 	upon demand all costs, charges and expenses (including legal fees) incurred by
the Lender in connection with the preparation and execution of this Loan Agreement and
the Finance Documents and all costs, charges and expenses (including legal fees)
incurred by the Lender in connection with the administration, preservation and
enforcement (and/or attempted enforcement) of this Loan Agreement and the Finance
Documents,
	 
	 	(ii)	 	upon demand all stamp, registration or other duties payable in the United
Kingdom or Greece or any other jurisdiction on this Loan Agreement or the other Finance
Documents, and
	 
	 	(iii)	 	(a) an underwriting fee (the “ Underwriting Fee”) of one per cent (1%) of the
Astra Ship Advance payable on the Drawdown Date of such Advance and at annual intervals
thereafter an amount equal to one per cent (1%) of the outstanding principal amount of
the Astra Ship Advance (b) a management fee (the “Management Fee”) of zero point twenty
five per cent (0.25%) per annum on the amount of the Loan drawn down and outstanding,
which will be paid on the Drawdown Date of the Advance first to occur and at annual
intervals thereafter throughout the Security Period (c) a renewal fee (the “Renewal
Fee”) of an amount to be agreed by the Borrower and the Lender on each date on which
the Lender may agree to an extension of the Expiration Date in accordance with Clauses
4.2 and 4.3 ) and (d) a commitment fee (the “Commitment Fee”) of one per cent (1%) per
annum on the from time to time available, undrawn and uncancelled amount of the Loan,
such Commitment Fee shall accrue from day to day for a period starting on the date of
execution of this Loan Agreement and ending on the relevant Termination Date, shall be
calculated upon the exact number of days which have lapsed on the basis of a year
consisting of three
hundred sixty (360) days and shall be payable quarterly in arrears and on the
relevant Termination Date.

Interest Periods

Subject to Clause 6.2, the Interest Periods applicable to an Advance shall (subject to market
availability) be periods of a duration of one (1), two (2), three (3), six (6) or twelve (12)
months (or such other periods as the Lender and the Borrower may agree) as selected by the
Borrower by written notice to be received by the Lender not later than 11.00 a.m. (London
time) on the relevant Nomination Date;

Notwithstanding the provisions of Clause 6.1:

	6.2.1	 	the initial Interest Period in respect of each Advance shall commence on the Drawdown Date
thereof and shall end on the expiry date thereof and each subsequent Interest Period for that
Advance shall commence on the expiry of the preceding Interest Period in respect thereof;

15

 

	6.2.2	 	if any Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period shall be extended to the next succeeding day which is a Business Day unless
such next succeeding Business Day falls in another calendar month in which event the Interest
Period shall end upon the immediately preceding Business Day;
	 
	6.2.3	 	if any Interest Period commences on the last Business Day in a calendar month or if there is
no numerically corresponding day in the month in which that Interest Period ends, that
Interest Period shall end on the last Business Day in that later month;
	 
	6.2.4	 	no Interest Period shall extend beyond the Repayment Date;
	 
	6.2.5	 	if the Borrower fails to select an Interest Period in accordance with the above, such
Interest Period shall be of three (3) months duration or of such other duration as the Lender
in its sole discretion may reasonably select and notify the Borrower; and
	 
	6.2.6	 	the Borrower shall not select more than one (1) Interest Period in respect of the Loan or
any part thereof at any one time.

Interest

	7.1	 	Subject to the terms of this Loan Agreement the Borrower shall pay to the Lender interest in
respect of the Loan (or the relevant part thereof) accruing at the Interest Rate for each
Interest Period relating thereto in arrears on the last day of such Interest Period, provided
that where such Interest Period is of a duration longer than three (3) months, accrued
interest in respect of the Loan (or such part thereof) shall be paid every three (3) months
during such Interest Period and on the last day of such Interest Period.
	 
	7.2	 	Interest shall be calculated on the basis of the actual number of days elapsed and a three
hundred and sixty (360) day year.
	 
	7.3	 	The Interest Rate applicable for each Interest Period shall be calculated and determined by
the Lender on each Interest Determination Date based on LIBOR (save as provided in Clause 9)
and each such determination of an Interest Rate hereunder shall be promptly notified by the
Lender to the Borrower at the beginning of each Interest Period in respect thereof.
	 
	7.4	 	The Lender’s certificate as to the Margin and/or the Interest Rate applicable shall be final
and (except in the case of manifest error) binding on the Borrower and the other Security
Parties.

Default Interest

	8.1	 	In the event of a failure by the Borrower to pay any amount on the date on which such amount
is due and payable pursuant to this Loan Agreement and/or the other Finance Documents and
irrespective of any notice by the Lender or any other person to the Borrower 

16

 

	 	 	in respect of
such failure, the Borrower shall pay interest on such amount on demand from the date of such
default up to the date of actual payment (as well after as before judgment) at the per annum
rate which is the aggregate of (a) two per cent (2%) and (b) the Margin and (c) LIBOR or the
Lender’s cost of funding the Loan, for Interest Periods of longer than six (6) months; and

	8.2	 	Clause 7.2 shall apply to the calculation of interest on amounts in default.

Substitute Basis

	9.1	 	If the Lender determines (which determination shall be conclusive) that:
	 
	9.1.1	 	at 11.00 a.m. (London time) on any Interest Determination Date the Lender was not being
offered by banks in the London Interbank Market deposits in Dollars in the required amount and
for the required period; or
	 
	9.1.2	 	by reason of circumstances affecting the London Interbank Market such deposits are not
available to the Lender in such market; or
	 
	9.1.3	 	adequate and reasonable means do not or will not exist for the Lender to ascertain the
Interest Rate applicable to the next succeeding Interest Period; or
	 
	9.1.4	 	Dollars will or may not continue to be freely transferable; or
	 
	9.1.5	 	LIBOR would not adequately reflect the Lender’s cost of funding the Loan or any part
thereof,
	 
	 	 	then, and in any such case the Lender shall give notice of any such event to the Borrower
and in case any of the above occurs on the Interest Determination Date prior to a Drawdown
Date the Borrower’s right to borrow an Advance shall be suspended during the continuation of
such circumstances.
	 
	9.2	 	If, however, any of the events described in Clause 9.1 occurs on any other Interest
Determination Date, then the duration of the relevant Interest Period(s) shall be up to one
(1) month and during such Interest Period the Interest Rate applicable to such Advance or the
relevant part thereof shall be the rate per annum determined by the Lender rounded upwards to
the nearest whole multiple of one sixteenth per cent (1/16th%) to be the aggregate of the
Margin and the cost (expressed as a percentage rate per annum) to the Lender of funding the
amount of the Loan during such Interest Period(s).
	 
	9.3	 	During such Interest Period(s) the Borrower and the Lender shall negotiate in good faith in
order to agree an Interest Rate or Rates and Interest Period or Periods satisfactory to the
Borrower and the Lender to be substituted for those which but for the occurrence of any such
event as specified in this Clause would have applied. If the Borrower and the Lender are
unable to agree on such an Interest Rate(s) and Interest Period(s) by the day which is two (2)

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	 	 	Business Days before the end of the Interest Period referred to above, the Borrower shall
repay the Loan together with accrued interest thereon at the Interest Rate set out above
together with all other amounts due under this Loan Agreement relative to the Loan but without
any prepayment fee, on the last day of such Interest Period, whereupon the Loan shall be
cancelled and no further Advances shall be made hereunder.

Representations and Warranties and Undertakings

	10.1	 	The Borrower hereby represents and warrants to the Lender that:

	 	(a)	 	each of the Security Parties is and will remain duly incorporated and validly
existing under its country of incorporation as a limited liability company and/or
corporation, has full power and capacity to carry on its business as it is now being
conducted and to own its property and other assets and has complied with all statutory
and other requirements relative to its business;
	 
	 	(b)	 	to the extent of its obligations thereunder, each Security Party has and will
continue to have full power and authority to enter into and perform the Finance
Documents and the Underlying Documents to which it is a party, has taken all necessary
corporate or other action (as the case may be) required to enable it to do so and will
duly perform and observe the terms thereof;
	 
	 	(c)	 	this Loan Agreement, each other Finance Document and each Underlying Document
constitutes or will, upon execution and delivery, constitute valid and legally binding
obligations of the parties thereto enforceable by the parties thereto in accordance
with its terms save for laws restricting creditors’ rights generally (except this
representation is not given in respect of the obligations of the Lender hereunder or
under any of the other Finance Documents);
	 
	 	(d)	 	all consents, licences, approvals, registrations or authorizations of
governmental authorities and agencies or declarations to creditors required:

	 	(i)	 	to make this Loan Agreement, each of the other Finance
Documents and each of the Underlying Documents valid, enforceable and
admissible in evidence; and
	 
	 	(ii)	 	to authorize or otherwise permit the execution and delivery of
this Loan Agreement, each of the other Finance Documents and each of the
Underlying Documents and the performance by the parties thereto (except the
Lender) of each of them

	 	 	 	have been obtained or made and are and will be in full force and effect and there
has been no default in the observance of any of the terms or conditions of any of
them;

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	 	(e)	 	except as previously disclosed in writing to the Lender and as disclosed in the
Compliance Certificates to be delivered to the Lender in accordance with clause 10.4
(g), no Security Party or any other member of the Group is in default under any
agreement to which it is a party or by which it may be bound (actually or contingently)
which default would be likely to have a material adverse effect on its business, assets
or condition or its ability to perform its obligations under this Loan Agreement and
such of the other Finance Documents and the Underlying Documents to which it is a party
and as at the date hereof, except as disclosed in writing to the Lender, no material
litigation or administrative proceedings involving any Security Party or any other
member of the Group of or before any board of arbitration, court or governmental
authority or agency is proceeding, pending or (to its knowledge) threatened anywhere in
the world the result of which would have or is likely to have a material adverse effect
on the business, assets or financial condition of such Security Party or other member of
the Group and, in the event that any such litigation or proceedings shall hereafter
arise, the Borrower hereby undertakes to give prompt notice thereof to the Lender;
	 
	 	(f)	 	no Security Party is required by the laws of any country from which it may make any payment hereunder or under any of the Finance Documents or any of the
Underlying Documents to make any deduction or withholding from any such payment;
	 
	 	(g)	 	the execution, delivery and performance of this Loan Agreement and such of the
Finance Documents and the Underlying Documents to which each Security Party is a party
will not violate or exceed the powers conferred upon it under its articles of
incorporation or by-laws or other constituting or corporate documents or any provision
of any applicable law or of any regulation, order or decree to which it is subject or
result howsoever in the creation or imposition of any Encumbrance on all or part of its
undertaking or assets;
	 
	 	(h)	 	the obligations of the Borrower under this Loan Agreement are its direct, general
unconditional obligations and rank at least pari passu with all its present and future
unsecured and unsubordinated obligations (including contingent obligations) with the
exception of such obligations as are mandatorily preferred by law and not by
contract;
	 
	 	(i)	 	all information furnished by or on behalf of the Borrower or any other Security
Party in writing in connection with the negotiation and preparation of this Loan
Agreement, the other Finance Documents and the Underlying Documents is true and
accurate in all respects and not misleading and does not omit any facts and there are
no other facts the omission of which would make any such information misleading;
	 
	 	(j)	 	no Security Party has neither any taxable income nor an office or place of
business in the United Kingdom or in the United States of America which generates tax or

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	 	 	 	consequently renders any of the Finance Documents registrable in any register in the
United Kingdom or in the United States of America whatsoever;
	 
	 	(k)	 	the entry by the Borrower into this Loan Agreement and its borrowing of the
Loan hereunder and the execution of the Parent Guarantee by the Parent Guarantor do not
breach section 4.10 or any other provision of the Indentures or either of them;
	 
	 	(l)	 	the choice of English law to govern the Underlying Documents and the Security
Documents (other than the Finance Documents referred to in Clauses 3(g) and 3(h)), and
the choice of Greek law to govern the Finance Documents referred to in Clause 3(g) and
the submissions by the Security Parties to the jurisdiction of the English courts and
the obligations of such Security Parties associated therewith, are valid and binding;
	 
	 	(m)	 	the latest audited and unaudited consolidated financial statements of the
Parent Guarantor in respect of the relevant financial year as delivered to the Lender
and present or will present fairly and accurately the financial position of the Parent
Guarantor and the consolidated financial position of the Group as at the date thereof
and the results of the operations of the Parent Guarantor and the consolidated results
of the operations of the Group for the financial year ended on such date and, as at
such date, neither the Parent Guarantor nor any of its Subsidiaries had any significant
liabilities (contingent or otherwise) or any unrealised or anticipated losses which are
not disclosed by, or reserved against or provided for in, such financial statements;
	 
	 	(n)	 	no Security Party has incurred or agreed to incur any indebtedness save under
the Indentures, this Agreement, or as otherwise disclosed to the Lender in writing;
	 
	 	(o)	 	the Parent Guarantor and the other Security Parties have filed all tax and
other fiscal returns required to be filed by any tax authority to which they are
subject; and
	 
	 	(p)	 	except for the registration of the Finance Document referred to in sub- Clause
3(h) on each Delivered Ship at the appropriate shipping registry, it is not necessary
or advisable to ensure the legality, validity, enforceability or admissibility in
evidence of
this Loan Agreement and the other relevant Underlying Documents that any of them be
filed, recorded or enrolled with any governmental authority or agency or that they
be stamped with any stamp, registration or similar transaction tax in the United
Kingdom, the Republic of Greece, the Republic of the Marshall Islands, or in any
Flag State or in any country where any Security Party carries on business.

	10.2	 	The Borrower hereby further represents and warrants to the Lender that the following matters
will be true on the Drawdown Date of the Astra Ship Advance in relation to the Astra Ship and
on the Delivery Date of each Delivered Ship (other than the Astra Ship) (each hereinafter

20

 

	 	 	referred to in this Clause 10.2 as the “relevant Delivered Ship”) and thereafter they shall
remain true throughout the Security Period:

the relevant Delivered Ship will have been unconditionally delivered by the
relevant Seller and accepted by the Owner thereof, pursuant to the relevant Contract
relating thereto, and the full amount of moneys payable on the Delivery Date of such
Delivered Ship under the relevant Contract will have been duly paid to the relevant
Seller;

the relevant Delivered Ship will be duly registered in the name of the Owner
thereof under the laws and flag of the relevant Flag State;

the relevant Delivered Ship will be in the absolute and unencumbered ownership of
the Owner thereof save as contemplated by this Loan Agreement and the other Finance
Documents;

the relevant Delivered Ship will at all times be maintained in a seaworthy
condition and in good running order and repaired in accordance with first class ship
ownership and ship management practice and kept in such condition as will entitle it to
be classed at the highest classification status with its Classification Society free of
all recommendations and qualifications (other than those which have been or are being
complied with in accordance with their terms and which are not by their terms overdue
for compliance), follow any interim operational provisos to such recommendations and
qualifications and when so requested to provide the Lender with a certificate issued by
the relevant Classification Society confirming that such classification is maintained;

the relevant Delivered Ship will be operationally seaworthy;

the relevant Delivered Ship will comply with all relevant laws, regulations and
requirements (statutory or otherwise), including without limitation, the ISM Code, the
ISPS Code, the ISM Code Documentation and the ISPS Code Documentation as are applicable
to (i) ships registered under the laws and flag of the relevant Flag State and (ii)
engaged in the same or a similar service as such Delivered Ship is or is to be engaged;

the Finance Document referred to in sub-Clause 3 (h) in respect of the relevant
Delivered Ship will have been duly recorded against such Delivered Ship as a valid
first priority ship mortgage in accordance with the laws of her Flag State;

the relevant Delivered Ship will be insured in accordance with the provisions of
this Loan Agreement in respect of Insurances;

the relevant Delivered Ship will be managed by the Manager under the terms of the
Management Agreement, relating thereto;

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the Owner of the relevant Delivered Ship and the Manager shall have complied with
the provisions of all Environmental Laws in respect of that Owner, the Manager and the
relevant Delivered Ship;

the Owner of the relevant Delivered Ship and the Manager shall have obtained all
Environmental Approvals and shall be in compliance with all such Environmental
Approvals in respect of the relevant Delivered Ship;

the Owner of the relevant Delivered Ship and the Manager shall have not received
any notice of any Environmental Claim that alleges that such Owner or the Manager is
not in compliance with any Environmental Law or any Environmental Approval in respect
of the relevant Delivered Ship;

there shall be no Environmental Claim pending against the Owner of the relevant
Delivered Ship and/or the Manager and/or the relevant Delivered Ship; and

no Environmental Incident shall have occurred which could or might give rise to
any Environmental Claim against the Owner of the relevant Delivered Ship and/or the
Manager and/or the relevant Delivered Ship.

	10.3	 	The Borrower hereby further represents and warrants to the Lender that on each day until full
and final repayment in full of all amounts whatsoever payable by the Borrower to the Lender
under this Loan Agreement the representations and warranties contained in Clauses 10.1 and
10.2 (updated mutatis mutandis to each such date) shall be true and correct as if made at that
time.
	 
	10.4	 	The Borrower hereby covenants with and undertakes to the Lender that, throughout the Security
Period, the Borrower will and will ensure and procure that each relevant Owner and where
appropriate the Parent Guarantor and the Manager will:

	 	(a)	 	carry on and conduct its business in a proper and efficient manner, will duly pay all outgoings as and when they fall due and promptly inform
the Lender of any occurrence of which it becomes aware which might adversely affect the ability of any party thereto (with the exception of the Lender)
to perform any of its obligations under the Finance Documents or under the
Underlying Documents to which it is a party;
	 
	 	(b)	 	make available to the Lender, at the Lender’s request from time to time such
information as it has or is able to obtain as to the business, affairs and financial
condition of the Security Parties and the other members of the Group and in the case
of a Builder and a Refund Guarantor such information as it has or is reasonably able
to obtain, as the Lender may consider necessary;
	 
	 	(c)	 	ensure that at all times all governmental and other consents, licences,
approvals and authorisations required by law for the validity, enforceability, and
legality of each of 

22

 

	 	 	 	this Loan Agreement and the Finance Documents and for the
performance thereof are obtained and remain in full force and are complied with;
	 
	 	(d)	 	provide the Lender with a report on the progress of the construction of each
relevant Newbuilding Ship upon the Lender’s request;
	 
	 	(e)	 	ensure that the Security Parties shall at all times comply with all laws and
regulations applicable to them;
	 
	 	(f)	 	provide to the Lender (i) within 75 days after the end of each of the first
three fiscal quarters in each fiscal year, quarterly reports on SEC Form 6-K (or any
successor form) in respect of the Parent Guarantor containing unaudited financial
statements (including a balance sheet and statement of income, changes in stockholders’
equity and cash flow) and a management’s discussion and analysis of financial condition
and results of operations (or equivalent disclosure) for and as of the end of such
fiscal quarter (with comparable financial statements for the corresponding fiscal
quarter of the immediately preceding fiscal year);

	 	(i)	 	within 150 days after the end of each fiscal year of the Parent
Guarantor, an annual report on SEC Form 20-F (or any successor form) in respect
of the Parent Guarantor containing the information required to be contained
therein for such fiscal year;
	 
	 	(ii)	 	at or prior to such times as would be required to be filed or
furnished to the SEC if the Parent Guarantor was then a “foreign private
issuer’’ subject to Section 13(a) or 15(d) of the Exchange Act, all such other
reports and information the Parent Guarantor would have been required to file
pursuant thereto; and
	 
	 	(iii)	 	a copy of all such information and reports referred to in
clauses (1) to (3) (inclusive) of Section 4.17(a) of the Indentures within the
time periods specified therein (unless the SEC shall not accept such a filing)
and, upon the Lender’s request, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act.

	 	 	 	Provided that, in relation to (i), (ii) and (iii) above, to the extent the Parent
Guarantor ceases to qualify as a “foreign private issuer’’ within the meaning of
the Exchange Act, whether or not the Parent Guarantor is then subject to Section
13(a) or 15(d) of the Exchange Act, the Borrower shall furnish to the Lender, so
long as any Notes (as defined in each Indenture) are outstanding, within thirty (30)
days of the respective dates on which the Parent Guarantor would be required to file
such documents with the SEC
if it was required to file such documents under the Exchange Act, all reports and
other information that would be required to be filed with (or furnished to) the SEC
pursuant to Section 13(a) or 15(d) of the Exchange Act;

23

 

	 	(g)	 	deliver to the Lender Compliance Certificates:

on the Drawdown Date of the Advance first to occur and on the
earlier of (a) the date on which the quarterly reports are delivered under
clause 10(3)(f) and (b) the date falling 75 days after the end of the financial
quarter to which they refer, a Compliance Certificate together with such
supporting information as the Lender may require; and

simultaneously with delivering the same under the Indentures, a copy of the
compliance certificate to be issued and delivered in accordance with Section
4.06 of each Indenture;

	 	(h)	 	ensure compliance with all of the obligations undertaken by the Parent
Guarantor for itself and on behalf of each member of the Group under the Indentures
which are set out in each Indenture Excerpt and the Borrower further agrees:

	 	(i)	 	any terms defined in each Indenture shall have those meanings
when used in the relevant Indenture Excerpt;
	 
	 	(ii)	 	no waiver or variation of any term of the Indentures or either
of them by any person shall waive or vary the Borrower’s obligations hereunder
to comply with the obligations in the relevant Indenture Excerpt, except with
the consent of the Lender;
	 
	 	(iii)	 	the Borrower shall continue to be bound by its, or as the case
may be, the Parent Guarantor’s obligations as set out in each Indenture Excerpt
following a Covenant Defeasance (as defined in each Indenture) or a Legal
Defeasance (as defined in each Indenture) or other termination or cancellation
of the Indentures or either of them; and
	 
	 	(iv)	 	the Borrower will not, and will procure that the Parent
Guarantor will not, vary any term of the Indentures or either of them without
the prior written consent of the Lender; and

	 	(i)	 	ensure that, subject to the other provisions of this Agreement, on the Delivery
Date of each Newbuilding Ship (other than each Newbuilding Ship financed pursuant to
Tranche B or any Substitute Ship which substitutes such Newbuilding Ship) all
proceeds payable to the relevant Owner in accordance with the provisions of the
relevant Post Delivery Documents, save for the proceeds required to be paid over to
the relevant Builder on such Delivery Date, shall at the Lender’s sole and absolute

24

 

	 	 	 	discretion either (a) be paid to the Lender and be applied towards mandatory prepayment
of the Loan in accordance with Clause 4.5 or (b) be paid to the credit of the
Borrower’s Pledged Account and remain so credited until the relevant conditions
precedent set out in Clauses 2.6, 2.7 and 2.9 have been satisfied.

	 	 	Notwithstanding anything in this Loan Agreement (i) any terms, transactions or events
permitted by the Indenture Excerpts or either of them and (ii) save as otherwise expressly
provided in this Agreement, any other terms or transactions or events permitted by the
Indentures or either of them shall be deemed to be permitted by this Agreement.

	10.5	 	The Borrower hereby covenants with the Lender that, throughout the Security Period:
	 
	10.5.1	 	the Borrower shall ensure and procure that each relevant Owner will not, without the prior
written consent of the Lender (which consent the Lender shall be at full liberty to withhold)
otherwise than pursuant to the terms of this Loan Agreement and the other Finance Documents),
as appropriate:

	 	(a)	 	mortgage, assign, charge or create or permit to subsist any lien (other than
liens arising in the ordinary course of business) on the whole or part of any of its
present or future assets (including but without limitation, any Contract or Ship and
any other property (real or personal), rights (including but without limitation rights
under any Underlying Document), receivables, book debts, bank accounts or
choses-in-action);
	 
	 	(b)	 	except as permitted hereunder or disclosed to and agreed by the Lender, borrow
any sums of money;
	 
	 	(c)	 	make loans or advances to others or incur any liability to any party other than
to the Lender except for loans which are immaterial in the Lender’s opinion or advances
made or liabilities incurred in the ordinary course of business;
	 
	 	(d)	 	guarantee, endorse or otherwise become or remain liable to a third party for
the obligations of any person, firm or corporation, save for the Indentures;
	 
	 	(e)	 	after the date hereof, incur howsoever directly or indirectly any expenditure
of a capital nature, except in the ordinary course of its business;
	 
	 	(f)	 	engage in any business wider or different from that now being conducted by it
or make any actual or contingent commitment or investment of any kind;
	 
	 	(g)	 	save as otherwise disclosed hereunder repay any indebtedness incurred by it
except to the Lender;
	 
	 	(h)	 	pay any dividend or other distributions whatsoever to its shareholders; and

25

 

	 	(i)	 	save as otherwise disclosed hereunder establish or maintain any bank accounts
in the name of such Owner or otherwise relating to any Ship or the proceeds of the Loan
except with the Lender;

	10.5.2	 	the Borrower will not and will ensure and procure that each relevant Owner will not, without
the prior written consent of the Lender (which consent the Lender shall be at full liberty to
withhold) otherwise than pursuant to the terms of this Loan Agreement and the other Finance
Documents), as appropriate:
	 
	 	 	consolidate with or merge into any other company;
	 
	 	 	vary any of the terms of any of the Finance Documents; and
	 
	 	 	vary any of the terms or cancel or rescind or terminate any of the
Underlying Documents.
	 
	10.6	 	The Borrower hereby further undertakes with the Lender to ensure and procure that throughout
the Security Period each Owner of a Delivered Ship and, where appropriate, the Manager thereof
shall comply with the following provisions of this Clause 10.6 except as the Lender may
otherwise permit:

	 	(a)	 	to procure that on the Drawdown Date of the Astra Ship Advance in relation to
the Astra Ship and/or on the Delivery Date of each other Delivered Ship, such Delivered
Ship shall be duly registered under the laws and the flag of the relevant Flag State,
in the ownership of the Owner of such Delivered Ship and at all times thereafter, it
shall remain duly registered under such laws and flag of the relevant Flag State and
not do or suffer to be done anything whereby the registration may be forfeited or
imperilled;
	 
	 	(b)	 	to appoint and/or keep the Manager appointed as manager of each Delivered Ship
and not vary or terminate this appointment;
	 
	 	(c)	 	without prejudice to sub-clause 10.4(a) not save as contemplated in the Finance
Documents, to create, incur or permit to subsist any Encumbrance over any Delivered
Ship, the Earnings, the Insurances or the Requisition Compensation thereof;
	 
	 	(d)	 	not at any time to represent to a third party that the Lender is carrying cargo
in any Delivered Ship or is in any way connected or associated with an operation or
carriage being undertaken by it or have any operational interest in any Delivered Ship;
	 
	 	(e)	 	save for the relevant Charter, not to voyage or time charter any Delivered Ship
(whether before, on or after its Delivery Date) or place it under contract for
employment (a) for any period which when aggregated with any optional periods of
extension contained in the said charter or contract, would exceed six (6) months or (b)
at a charter rate which is below the market rate at the time of the charter fixture

26

 

	 	 	 	and in case of any Delivered Ship being employed for more than six (6) months, after having
obtained the Lender’s consent, the Lender shall be furnished with (i) details and
documentary evidence satisfactory to the Lender in its sole discretion in respect of
the new employment, (ii) upon Lender’s request, a specific assignment in favour of
the Lender of the benefit of such charter together with a notice of any such
assignment addressed to the relevant charterer and use its best efforts to procure
the delivery to the Lender of an acknowledgement of receipt of such assignment by
the relevant charterer all in form and substance satisfactory to the Lender and
(iii) upon Lender’s request, a specific agreement of subordination of the rights of
such charterer to the rights of the Lender;

	 	(f)	 	not to demise charter any Delivered Ship for any period whatsoever;
	 
	 	(g)	 	not without the prior written consent of the Lender to put any Delivered Ship
into the possession of any person for the purpose of work being done upon it in an
amount exceeding or likely to exceed Five hundred thousand Dollars ($500,000) (or the
equivalent in any other currency) unless the Owner thereof shall have satisfied the
Lender that the cost of such work is fully recoverable under the Insurances (save for
any applicable deductible) or such person shall first have given to the Lender and in
terms satisfactory to it a written undertaking not to exercise any lien on that
Delivered Ship or its Earnings or Insurances for the cost of such work or otherwise;
	 
	 	(h)	 	to give the Lender reasonable prior notice of any dry-docking of each Delivered
Ship so that the Lender (if it so requires) can arrange for a representative to be
present;
	 
	 	(i)	 	to notify the Lender of any intended laying-up or de-activation of any
Delivered Ship;
	 
	 	(j)	 	to provide the Lender with such copies of the trading certificates of each
Delivered Ship as the Lender may from time to time require;
	 
	 	(k)	 	to hold or procure that the Manager shall hold all appropriate ISM Code
Documentation and ISPS Code Documentation and provide the Lender upon request from time
to time with copies of the relevant ISM Code Documentation and ISPS Code Documentation
duly issued to the Owner of each Delivered Ship, the Manager and such Delivered Ship
pursuant to the ISM Code and the ISPS Code respectively;
	 
	 	(l)	 	to keep, or procure that there is kept, on board each Delivered Ship a copy of
all relevant ISM Code Documentation and ISPS Code Documentation;
	 
	 	(m)	 	as soon as any Owner of a Delivered Ship becomes aware, to inform the Lender
immediately should the Document of Compliance and/or the Safety Management Certificate
and/or the International Ship Security Certificate issued in connection with the
relevant ISM Code Documentation be cancelled, rescinded, suspended or amended in any
way;

27

 

	 	(n)	 	to notify the Lender promptly upon being made aware thereof upon the occurrence
of:

	 	(i)	 	casualty in respect of any Delivered Ship which is or is
likely to be or to become a Major Casualty;

	 
	 	1.2.1.1.1	 	any occurrence as a result of which any Delivered Ship has become or is,
by the passing of time or otherwise, likely to become a Total Loss;

	 
	 	(iii)	 	any intended dry docking of any Delivered Ship;
	 
	 	(iv)	 	any Environmental Claim against the Borrower and/or any Owner,
the Manager, or any Delivered Ship or any Environmental Incident;
	 
	 	(v)	 	any claim for breach of the ISM Code or the ISPS Code being made
against the Borrower and/or any Owner, an ISM Responsible Person, the Manager or
otherwise in connection with any Delivered Ship;
	 
	 	(vi)	 	any other matter, event or incident actual or threatened, the
effect of which will or could lead to the ISM Code or the ISPS Code not being
complied with; and to advise and procure that the Lender advised in writing on a
regular basis and in such detail as the Lender shall require of the relevant
Owner’s, the ISM Responsible Person’s, the Manager’s or any other person’s
proposed or actual response to any of those events or matters;

to permit, or procure that the Lender shall have the right at any time on
reasonable notice to inspect or survey each Delivered Ship or instruct a duly
authorised independent surveyor to carry out such survey on its behalf to ascertain the
condition of each Delivered Ship and satisfy itself that each Delivered Ship is being
properly repaired and maintained, provided that such inspections shall not unreasonably
interfere with such Delivered Ship’s running or operation (and the costs of such
inspection or survey shall be payable by the Borrower and/or the relevant Owner);

to promptly provide the Lender with information concerning the classification
status and insurance of the Delivered Ships from time to time as and when so required
in writing by the Lender;

to execute and deliver to the Lender such documents of transfer as the Lender may
require in the event of sale of any Delivered Ship pursuant to any power of sale
contained in the Finance Document referred to in Clause 3 (h) or which the Lender may
have in law;

to provide the Lender with a certificate of ownership and encumbrances relative
to each Delivered Ship issued by the relevant registry of the Flag State of such

28

 

Delivered Ship and a copy of the entries in the relevant Company’s registers
relative to Owner of such Delivered Ship, when so requested by the Lender;

upon becoming aware, to notify the Lender immediately by telefax of any
recommendation or requirement imposed by the Classification Society, the Insurers or
by any other competent authority in respect of any Delivered Ship that is not
complied with in accordance with its terms;

to carry on board each Delivered Ship with such Delivered Ship’s papers a properly
certified copy of the relevant Mortgage and exhibit the same to any person having a
legal interest in, or having business with, such Delivered Ship and to any
representative of the Lender, and place and keep prominently in the Chart Room and in
the Master’s cabin of such Delivered Ship a framed notice printed in plain type of such
size that the paragraph of reading matter shall cover a space not less than six inches
wide and nine inches high reading as follows:

“NOTICE OF MORTGAGE

This Ship is owned by [name of Owner] and is subject to a first [preferred]
[priority] mortgage [and deed of covenants collateral thereto] in favour of MARFIN
POPULAR BANK PUBLIC CO LTD of the Republic of Cyprus.”. Under the terms of said
Mortgage, neither the Owner, nor the Master nor any other person has any right,
power or authority to create, incur or permit to be imposed upon this Ship any other
lien whatsoever other than for crew’s wages accrued for not more than three (3)
months and salvage.”;

to pay when due and payable all taxes, assessments, levies, governmental charges,
fines and penalties lawfully imposed on and enforceable against each Delivered Ship;

if any writ or proceedings shall be issued against any Delivered Ship or if any
Delivered Ship shall be otherwise attached, arrested or detained by any proceeding
in any court or tribunal or by any government or other authority, to immediately
notify the Lender thereof by telefax confirmed by letter and within fourteen (14)
days thereafter cause that Delivered Ship to be released, save in the case of piracy
in which case such Delivered Ship must be released within one hundred and twenty
(120) days;

not to cause or permit any Delivered Ship to be operated in any manner contrary
to any law or regulation in any relevant jurisdiction including but not limited to
the ISM Code and the ISPS Code and not to engage in any unlawful trade or carry any
cargo that will expose any Delivered Ship to penalty, forfeiture or capture and in
the event of hostilities in any part of the world (whether a war be declared or not)
not employ any Delivered Ship or voluntarily suffer its employment in carrying any
contraband goods;

to promptly pay all tolls, dues and outgoings in respect of each Delivered Ship
and all wages, allotments, insurance and pension contributions of the Master and
crew of

29

 

such Delivered Ship when due and make all deductions from the wages in
respect of any tax liability, accounting to the relevant authority for them and if
the Lender at any time has reasonable cause to believe that such payments may not be
being made, to produce to the Lender at its request evidence confirming that all such amounts have
been paid when due;

at all times to maintain each Delivered Ship in a seaworthy condition and in
good running order and repair in accordance with first class ship ownership and ship
management practice and keep each Delivered Ship in such condition as will entitle
it to be classed at the highest classification status with its Classification
Society free of all recommendations and qualifications (other than those which have
been or are being complied with in accordance with their terms and which are not by
their terms overdue for compliance), follow any interim operational provisos to such
recommendations and qualifications and when so requested to provide the Lender with
a certificate issued by the relevant Classification Society confirming that such
classification is maintained;

to submit each Delivered Ship regularly to such periodical or other surveys as
may be required for classification purposes and, if so required by the Lender in
writing, supply to the Lender copies of all survey reports issued in respect
thereof;

at all times to comply with all legal requirements whether imposed by enactment,
regulation, common law or otherwise and have on board each Delivered Ship as and when
legally required valid certificates showing compliance therewith;

without prejudice to the generality of sub Clause 10.6 (aa) above, to obtain
and maintain any and all Environmental Approvals required in respect of each
Delivered Ship and comply or procure that the Manager or any charterer of any
Delivered Ship will at all times comply with the ISM Code, the ISPS Code, the ISPS
Code Documentation, all Environmental Laws, and all other laws and regulations
relating to such Delivered Ship, its ownership, operation, manning and management or
to the business of the Owner of such Delivered Ship and/or the Manager;

not to remove or permit the removal of any part of any Delivered Ship or any
equipment belonging thereto nor make or permit any alterations to be made in the
structure, type or speed of any Delivered Ship which materially reduce the value of
such Delivered Ship (unless such removal or alteration is required by statute or by
the Classification Society) of such Delivered Ship;

in the event of Compulsory Acquisition of any Delivered Ship to execute any
assignment that the Lender may request in relation to any and all amounts which the
relevant Government Entity shall be liable to pay as compensation for that Delivered
Ship or for its use and if received by the Owner of such Delivered to pay such
amounts immediately to the Lender; and

30

 

	 	(ee)	 	 ensure that all the Earnings of each Delivered Ship shall be paid into the
relevant Owner’s Earnings Account opened in the name of the Owner of such Delivered
Ship.
	 

	10.7	 	The Borrower hereby irrevocably agrees and undertakes to ensure and procure that:
	 
	10.7.1	 	the Lender, or its authorised representatives may, without prior notification, communicate
directly with the relevant Classification Society concerning maintenance, repair,
classification and seaworthiness of each Delivered Ship, and to the same extent with any
regulatory authority having jurisdiction over such Delivered Ship;
	 
	10.7.2	 	each relevant Owner and/or the Manager shall unconditionally authorise the Classification
Society or regulatory authority, at the request of the Lender, to give information to it, or
its authorised representatives and to conduct inspections and surveys of each Delivered Ship,
as if requested by the relevant Owner;

	 
	 	 	 	provided that the Lender will not, without prior consultation with therelevant
Owner, take any action under this Clause 10.7 unless an Event of Default has
occurred.

	 
	10.8	 	The Borrower hereby also undertakes with the Lender to ensure and procure that each relevant
Owner and where appropriate the Manager will comply with the following provisions of this
Clause 10.8 from the Drawdown Date of the Astra Ship Advance in relation to the Astra Ship and
from the Delivery Date in relation to each Delivered Ship (other than the Astra Ship) and at
all times during the Security Period, except as the Lender may, otherwise permit, at the
expense of the Borrower and/or the relevant Owner and upon such terms and conditions, in such
amounts and with such Insurers as shall from time to time be approved in writing by the Lender
and, if so required by the Lender (but without, as between the Lender and the Borrower and/or
the Manager and/or the relevant Owner, liability on the part of the Lender for premiums or
calls) with the Lender named as co-assured:

	 	a.	 	to insure and keep insured each Delivered Ship in Dollars or such other
currency as may be approved in writing by the Lender, in the full insurable value of
such Delivered Ship but in no event for an aggregate amount which is less than one
hundred and thirty per cent (130%) of the outstanding amount of the relevant Additional
Ship Advance in respect of such Delivered Ship against fire and usual marine (including
Excess Risks) and War Risks covered by hull and machinery policies and War
Risks and perils covered by other supplementary hull policies;
	 
	 	b.	 	to enter each Delivered Ship in the name of the Owner thereof for her full
value and tonnage against all Protection and Indemnity Risks in a protection and
indemnity association approved by the Lender with unlimited liability if available
otherwise with the least limited liability for the time being $1,000,000,000 in
relation to oil pollution risks and to comply with the rules of such protection and
indemnity association from time to time in effect and if so requested by the Lender to
obtain excess oil spillage and pollution insurance in excess of the limit of the
protection and indemnity association with the highest possible cover;

31

 

	 	c.	 	if any Delivered Ship enters the territorial waters of the USA (or other
jurisdiction having legislation similar to the US Oil Pollution Act 1990) for any
reason whatsoever to take out such additional insurance to cover such risks as may be
necessary in order to obtain a Certificate of Financial Responsibility from the United
States Coastguard;
	 
	 	d.	 	upon Lender’s request, to effect loss of hire and/or Earnings, Insurance on
each Delivered Ship (as may be required by the Lender ) in respect of charterparties
which exceed six (6) months duration and otherwise on such terms and in such amounts as
the Lender may instruct the Borrower and/or the relevant Owner as being necessary or
appropriate;
	 
	 	e.	 	to pay to the Lender upon first demand all premiums and other amounts payable
by the Lender in effecting a mortgagees’ interest insurance policy (“MII”) and a
mortgagees’ interest additional perils insurance policy (“MAPI”) in relation to each
Delivered Ship in the name of the Lender, upon such terms and conditions and with such
insurers and for such amounts as the Lender may require;
	 
	 	f.	 	to effect such additional Insurances that shall (in the reasonable opinion of
the Lender) be necessary or advisable;
	 
	 	g.	 	to renew the Insurances at least fourteen (14) Business Days before the
relevant Insurances expire (or give the Lender evidence satisfactory to it that such
Insurances will be renewed upon their stated expiry dates) and to procure that the
Approved Insurance Brokers or the Insurers (as the case may be) shall promptly confirm
in writing to the Lender the terms and conditions of such renewal as and when the same
occurs;
	 
	 	h.	 	punctually to pay all premiums, calls, contributions or other sums payable in
respect of the Insurances and to produce evidence of payment when so required in
writing by the Lender;
	 
	 	i.	 	to arrange for the execution of such guarantees as may from time to time be
required by any Protection and Indemnity or War Risks association;
	 
	 	j.	 	to procure that the Insurance Documents shall be deposited with the Approved
Insurance Brokers or the Insurers (as the case may be) and that the Approved Insurance
Brokers or the Insurers (as the case may be) shall provide the Lender with pro forma
copies thereof and shall issue to the Lender a letter or letters of undertaking in such
form as the Lender shall reasonably require;
	 
	 	k.	 	to procure that the Protection and Indemnity and/or War Risks associations in
which the Delivered Ships are entered shall provide the Lender with a letter or letters
of undertaking in such form as may be reasonably required by the
Lender and shall provide the Lender with a copy of the certificate of entry and, if so requested by the

32

 

	 	 	 	
Lender, a copy of each certificate of financial responsibility for pollution by oil or
other substances issued by such Protection and Indemnity and/or War Risks association
in relation to the Delivered Ships;

	 	l.	 	to procure that the interest of the Lender is endorsed on the Insurance
Documents by means of a Notice of Assignment in the form in Schedule 3 to the Finance
Document referred to in Clause 3 (i) or such other form as the Lender may require and that
the Insurance Documents (including all certificates of entry in any Protection and
Indemnity and/or War Risks association) shall contain a loss payable clause during
the Security Period in the form in Schedule 4 or Schedule 5 (as may be appropriate)
to the Finance Document referred to in Clause 3 (i) or such other form as the Lender
may require;
	 
	 	m.	 	to procure that the Insurance Documents shall provide that the lien or set off
for unpaid premiums or calls shall be limited to only the premiums or calls due in
relation to the Insurances on the Delivered Ships and the Insurers shall not cancel any
of the Insurances by reason of non-payment of premium or calls due in respect of other
ships or in respect of other insurances and for fourteen (14) days prior written notice
to be given to the Lender by the Insurers (such notice to be given even if the Insurers
have not received an appropriate enquiry from the Lender) in the event of cancellation
or termination of the Insurances and in the event of the non-payment of the premium or
calls, the right to pay the said premium or calls within a reasonable time;
	 
	 	n.	 	promptly to provide the Lender with full information regarding any casualties
or damage to any Delivered Ship in an amount in excess of Five hundred thousand Dollars
($500,000) or in consequence whereof any Delivered Ship have become or may become a
Total Loss;
	 
	 	o.	 	 at the request of the Lender to provide the Lender, at the Borrower’s cost (but
not more often than once in every twelve (12) months), with a detailed report in
respect of any Delivered Ship issued by a firm of marine insurance brokers or
consultants appointed by the relevant Owner and approved by the Lender in relation to
the Insurances;
	 
	 	p.	 	not to do any act nor voluntarily suffer nor permit any act to be done whereby
any Insurance shall or may be suspended or avoided and not to suffer nor permit the
Delivered Ships or any of them to engage in any voyage nor to carry any cargo not
permitted under the Insurances in effect without first obtaining the Insurers’ consent
for such voyage or the carriage of such cargo and complying with such requirements as
to extra premiums or otherwise as the Insurers may prescribe;
	 
	 	q.	 	not to employ the Delivered Ships or any of them, or offer the Delivered Ships
or any of them to be employed, otherwise than in conformity with the terms of the
Insurance Documents (including any express or implied warranties they contain), without
first obtaining the Insurers’ consent to such other employment and complying with such

33

 

	 	 	 	requirements as to extra premiums or otherwise as the Insurers may prescribe, or
arranging for additional insurance;

	 	r.	 	(without limitation to the generality of the foregoing) in particular not to
permit the Delivered Ships or any of them to enter or trade to any zone which is
declared a war zone by any government or by each Delivered Ship’s War Risks Insurers
unless there shall have been effected by the Owner of each Delivered Ship’s and at its expense
such special insurance or the consent of the Insurers to enter or trade into such
zone is obtained and the relevant Owner is complying with such requirements as to
extra premiums or otherwise as the Insurers may prescribe;
	 
	 	s.	 	to procure that all amounts payable under the Insurances are paid in accordance
with the relevant loss payable clause under Clause 10.8 sub-clause (l) and to apply all
amounts as are paid to the relevant Owner for the purpose of making good the loss and
fully repairing all damage in respect of which the said amounts shall have been
received; and
	 
	 	t.	 	should any Delivered Ship be laid up for any period, to arrange ‘lay-up’
Insurances for such Delivered Ship during such period, at the relevant Owner’s own cost
and upon such terms and conditions, in such amounts and with such Insurers as shall
from time to time be approved in writing by the Lender.

	10.9	(i)	If the Lender reasonably requires on or prior the Drawdown Date of the Astra Ship Advance
in relation to the Astra Ship and /or on or prior to the Delivery Date of any other
Delivered Ship and at anytime and from time to time thereafter (and at least once a year),
such Delivered shall be valued in Dollars by one (1) Approved S&P Broker chosen by the
Borrower and approved by the Lender, such valuations to be made without physical inspection
(unless otherwise required by the Lender), and on the basis of an arm’s-length purchase by a
willing buyer from a willing seller and without taking into account any charterparty. The fees
of the Approved S&P Broker appointed to give such valuation and all other costs arising in
connection with the obtaining of any such valuations shall be paid by the Borrower.
	 
		(ii)	In the event that during the Security Period the Market Value of any Delivered Ship
determined pursuant to Clause 10.9 (i) together with the value of any additional security
(valued in accordance with normal banking practice) previously provided to the Lender
pursuant to this Clause is less than one hundred twenty per cent (120%) of the outstanding
principal amount of the Additional Ship Advance pursuant to which such Delivered Ship was
financed, at any time, then the Borrower shall within twenty one (21) Business Days of
receipt of a notice from the Lender advising the Borrower of the amount of such deficiency
(which notice shall be conclusive) either provide to the Lender additional security (valued
in accordance with normal banking practice) which shall in all respects be satisfactory to
the Lender so that the Market Value of the relevant Delivered Ship (determined in accordance
with Clause 10.9 (i)) together with the value of any additional security (valued as
aforesaid) previously provided to the Lender pursuant to this Clause is at least one hundred
twenty per cent (120%) of the outstanding principal amount of the Additional Ship Advance
pursuant to which such Delivered Ship was financed or prepay part of such Additional Ship
Advance in

34

 

	 	 	accordance with Clause 4 so that the Market Value of the Delivered Ship
(determined in accordance with Clause 10.9 (i)) together with the value of any additional
security (valued as aforesaid) previously provided to the Lender pursuant to this Clause is
at least one hundred twenty per cent (120%) of the outstanding principal amount of the
Additional Ship Advance pursuant to which such Delivered Ship was financed.

	11.	 	Payments
	 
	11.1	 	All payments by the Borrower shall be made on their due date in Dollars and not later than
11.00 a.m. (London time) without set-off, counterclaim or any deductions whatsoever at such
account as the Lender may from time to time nominate by written notice to the Borrower. The
Lender shall have the right to change the place or account for payment, upon five (5) Business
Days’ prior written notice to the Borrower.
	 
	11.2	 	If at any time any applicable law requires the Borrower to make any deduction or withholding
of whatsoever nature from any payment due under this Loan Agreement, the sum due from the
Borrower in respect of such payment shall be increased to the extent necessary to ensure that
after the making of such deduction or withholding, the Lender receives a net sum equal to the
sum which it would have received had no such deduction or withholding been required to be
made.
	 
	11.3	 	Whenever any payment hereunder 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 and all interest and other
payment shall be calculated accordingly.
	 
	12.	 	Indemnity
	 
	12.1	 	The Borrower shall indemnify the Lender against any financial or monetary loss or expense
which the Lender incurs (including, but not limited to, Broken Funding Costs) as a consequence
of (i) default in payment of any sum hereunder or other default hereunder or (ii) any
repayment made on any date other than the final day of an Interest Period, including in either
such case all costs, charges and expenses incurred by the Lender in liquidating or
re-employing deposits from third parties acquired to fund the Loan (including, but not limited
to, Broken Funding Costs) or (iii) any reserve requirements or any other matter which
increases the Lender’s cost of funding over the Interest Rate or (iv) failing to borrow after
serving notice therefore under Clause 2.
	 
	12.2	 	If any sum due from the Borrower under this Loan Agreement or under any order or judgment
given or made in relation hereto has to be converted from the currency (the “First Currency”)
in which the same is payable hereunder or under such order of judgment into another currency
(the “Second Currency”) for the purpose of (i) making or filing a claim or proof against the
Borrower, (ii) obtaining an order or judgment in any court or other tribunal or (iii)
enforcing any order or judgment given or made in relation hereto, the Borrower shall pay such
additional amounts as may be necessary to ensure that the sums paid in the Second Currency
when converted at the rate of exchange at which the Lender may in the ordinary

35

 

	 	 	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, judgment, claims or proof will
produce the sum then due under this Loan Agreement in the first currency. Any such amount due
from the Borrower shall be due as a separate debt and shall not be affected by judgment being
obtained for any other sums due under or in respect of this Loan Agreement and 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.

	13.	 	Set-Off
	 
	 	 	The Lender is hereby authorised to combine any and all accounts with it held by the Borrower
and to set off such accounts against any sums due and payable by the Borrower hereunder. For
that purpose, the Lender is hereby authorised to use all or part of the credit balance on
any and all such accounts to buy such other currency or currencies as may be required to
enable it to effect any such set-off.
	 
	14.	 	Events of Default
	 
	14.1	 	An “Event of Default” shall occur if:

	 	(a)	 	the Borrower fails to pay any sum due on its due date as described herein;
	 
	 	(b)	 	any party to this Loan Agreement or any other Finance Document (other than
Lender) defaults in the due performance and observance of any of the terms and
conditions hereof or of any other Finance Document to which it is a party and such
default is not remedied within fourteen (14) Business Days from the date of its
occurrence;
	 
	 	(c)	 	there is an event of default under (and as defined in) any of the Underlying
Documents and/or any of the Underlying Documents is (without the Lender’s prior
written consent) amended or varied in any respect cancelled, repudiated, rescinded or
otherwise ceases to be in full force and effect;
	 
	 	(d)	 	there shall occur a default (howsoever therein described) under each Indenture
or any indebtedness exceeding Four million Dollars ($4,000,000) in aggregate for all
Security Parties is not paid when due or any Indebtedness of any Security Party shall
become due and payable or, with the giving of notice or lapse of time or both, capable
of being declared due and payable prior to its stated maturity by reason of any
circumstance entitling the creditor(s) thereof to declare such indebtedness due and
payable and such indebtedness is not paid within fourteen (14) days thereof;
	 
	 	(e)	 	there is a material adverse change in the financial position of any Security
Party, any other member of the Group, any Refund Guarantor or any Builder, which in the
reasonable opinion of the Lender has a material adverse effect on the ability of the
Borrower and/or any Owner to perform its obligations hereunder and/or under any of

36

 

	 	 	 	the other Finance Documents;

	 	(f)	 	any Security Party or any Builder or any Refund Guarantor suspends payment or
stops payment of or is unable to or admits in writing its inability to pay its lawful
debts as they mature or any of them enters into a general assignment for the benefit of
its creditors or makes any special arrangement or composition with its creditors;
	 
	 	(g)	 	any resolution is passed or any proceedings are commenced for the purpose of or
any order (which, once granted, is not discharged or withdrawn within ten (10) days) or
judgment is made or given by any court of competent jurisdiction for the
liquidation, winding-up or reconstruction while solvent of any Security Party, any
Builder or any Refund Guarantor (other than on terms previously approved by the
Lender) or for the appointment of a receiver, trustee, conservator or liquidator of
all or a substantial part of the undertaking or assets of any Security Party, any
Builder or any Refund Guarantor;
	 
	 	(h)	 	there shall occur a “Change of Control” (as defined in each Indenture) or the
“Permitted Holder” (as defined in each Indenture) owns less than 20% of the issued
share capital of the Parent Guarantor;
	 
	 	(i)	 	any Owner shall sell, transfer, dispose of or encumber its Ship or any interest
or share therein, or agree so to do (save in the case of Permitted Liens ) without the
prior written consent of the Lender;
	 
	 	(j)	 	any Delivered Ship is arrested or detained and such arrest or detention is not
released within fourteen (14) days (save in the case of piracy in which case such
Delivered Ship must be released within one hundred and twenty (120) days) or an order
for the sale of any Delivered Ship is made by a court of competent jurisdiction or the
Borrower and/or the relevant Owner ceases to retain possession and/or control of its
Delivered Ship for a period in excess of fourteen (14) days; or
	 
	 	(k)	 	any Delivered Ship shall become a Total Loss and the Borrower shall fail to
make the mandatory prepayment required to be made under Clause 4.8 in respect of such
Total Loss within the time therein set forth.

	14.2	 	Upon the occurrence of an Event of Default and without any prior summons or other notice
being necessary, all of which are hereby expressly waived by the Borrower, the Loan and all
unpaid interest accrued thereon and all fees and other sums of moneys whatsoever payable to
the Lender hereunder or pursuant to the other Finance Documents whether actual or contingent
and all interest accrued thereon, shall fall due forthwith upon the Lender’s written demand.

37

 

	15.	 	Assignment -Change of Lending Office
	 
	15.1	 	The Borrower may not assign its rights or obligations under this Loan Agreement without the
prior written consent of the Lender.
	 
	15.2	 	The Lender may, at any time and at no cost whatsoever to the Borrower, assign, transfer or
offer participations in all or a proportion of all its participations in the Loan and its
rights and obligations hereunder to any other bank or financial institution provided that:

	 	(i)	 	the Lender shall be at liberty to disclose on a confidential basis to any such
assignee, transferee or grantee (or to any potential assignee, transferee or grantee)
all such information concerning the Borrower, any relevant Contract and any relevant
Ship as the Lender deems appropriate; and
	 
	 	(ii)	 	the Borrower shall upon demand by the Lender execute and deliver to the Lender
all such documents and do all such acts and things as the Lender may deem necessary or
desirable in its absolute discretion for giving full effect to any such assignment,
transfer or participation; and
	 
	 	(iii)	 	subject to sub-paragraph 15.2 (ii) hereof, no such assignment transfer or
participation shall affect any of the obligations of the Borrower hereunder or under
the other Finance Documents.

	15.3	 	The Lender may at any time and from time to time change its lending office in respect of
the whole or any part of its participation in the Loan. The Lender shall notify the Borrower
of any such change in the lending office as soon as is practicable.
	 
	16.	 	Notices
	 
	16.1	 	Unless otherwise specifically provided, any notice under or in connection with any Finance
Document shall be given by letter or fax; and references in the Finance Documents to written
notices, notices in writing and notices signed by particular persons shall be construed
accordingly.
	 
	16.2	 	A notice shall be sent:

	 	 	 	 	 

	 

	 	(a) to the Borrower at:
	 	85 Akti Miaouli
	 

	 	 	 	185 38 Piraeus
	 

	 	 	 	Greece
	 

	 	 	 	Fax No.: +30 210 4531984
	 
	 	 	 	 
	 

	 	(b) to the Lender at:
	 	Marfin Popular Bank Public Co Ltd
	 

	 	 	 	134 Limassol Avenue
	 

	 	 	 	Strovolos 2025
	 

	 	 	 	Nicosia Cyprus
	 

	 	 	 	Fax No.: + 35722363900

38

 

	 	 	 	 	 

	 

	 	with a copy to:
	 	Marfin Popular Bank Public Co Ltd
	 

	 	 	 	Greek Branch, trade name “Marfin Egnatia Bank”
	 

	 	 	 	24B Kifissias Avenue
	 

	 	 	 	151 25 Maroussi
	 

	 	 	 	Attiki, Greece
	 

	 	 	 	Fax No: +30 210 6896358

		 	or to such other address as the relevant party may notify the other in writing.

	16.3	 	Subject to Clauses 16.4 and 16.5:

	 	(i)	 	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;
	 
	 	(ii)	 	a notice which is sent by fax shall be deemed to be served, and shall take
effect, two (2) hours after its transmission is completed.

	16.4	 	However, if under Clause 16.3 a notice would be deemed to be served:

	 	(i)	 	on a day which is not a Business Day in the place of receipt; or
	 
	 	(ii)	 	on such a Business Day, but after 5 p.m. local time;

	 	 	the notice shall (subject to Clause 16.5) be deemed to be served, and shall take effect, at
9 a.m. on the next day which is such a Business Day.

	16.5	 	Clauses 16.3 and 16.4 do not apply if the recipient of a notice notifies the sender within
one (1) 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.
	 
	16.6	 	A notice under or in connection with a Finance Document shall not be invalid by reason that
the manner of serving it does not comply with the requirements of this Loan Agreement or,
where appropriate, any other Finance Document under which it is served if the failure to serve
it in accordance with the requirements of this Loan Agreement or other Finance Document, as
the case may be, has not caused any party to suffer any significant loss or prejudice.
	 
	16.7	 	Any notice under or in connection with a Finance Document shall be in English.
	 
	16.8	 	In this Clause “notice” includes any demand, consent, authorisation, approval, instruction,
waiver or other communication.
	 
	17.	 	Law and Jurisdiction

39

 

	17.1	 	This Loan Agreement and any non-contractual obligations connected with it shall be governed
by, and construed in accordance with, English law.
	 
	17.2	 	Subject to Clause 17.3, the courts of England shall have exclusive jurisdiction to settle any
disputes, which may arise out of or in connection with this Loan Agreement and any
non-contractual obligations connected with it.
	 
	17.3	 	Clause 17.2 is for the exclusive benefit of the Lender, which reserves the right:

	 	(i)	 	to commence proceedings in relation to any matter which arises out of or in
connection with this Loan Agreement in the courts of the Republic of Greece and/or any
country other than England or Greece and which have or claim jurisdiction to that
matter; and
	 
	 	(ii)	 	to commence such proceedings in the courts of any such country or countries
concurrently with or in addition to proceedings in England or Greece or without
commencing proceedings in England or Greece.

The Borrower shall not commence any proceedings in any country other than England in relation to
a matter, which arises out of or in connection with this Loan Agreement and any
non-contractual obligations connected with it.

	17.4	 	The Borrower irrevocably appoints HFW Nominees Ltd., with offices at Friary Court, 65
Crutched Friars, London EC3N 3AE, England, to act as its agent to receive and accept on their
behalf any process or other document relating to any proceedings in the English courts which
are connected with this Loan Agreement and any non-contractual obligations connected with it.
	 
	17.5	 	The Borrower irrevocably designates and appoints Mrs. Vasiliki Papaefthymiou, an
Attorney-at-law with offices at 85 Akti Miaouli, 185 38 Piraeus, Greece, as agent for the
service of process in Greece (“antiklitos”) and agree to consider any legal process or any
demand or notice made served by or on behalf of the Lender on the said agent as being made to
the Borrower. The designation of such an authorized agent (“antiklitos”) shall remain
irrevocable until all Indebtedness shall have been paid in full in accordance with the terms
of this Loan Agreement and the other Finance Documents.
	 
	17.6	 	Nothing in this Clause 17 shall exclude or limit any right which the Lender may have
(whether under the law of any country, an international convention or otherwise) with regard
to the bringing of proceedings, the service of process, the recognition or enforcement of a
judgment or any similar or related matter in any jurisdiction.
	 
	17.7	 	In this Clause 17, “proceedings” means proceedings of any kind, including an application for
a provisional or protective measure or enforcement court order (diatagi pliromis).
	 
	18. 	 	 Miscellaneous

	 	 	The Lender may perform all or any of its functions under the Finance Documents through any

40

 

		 	office or branch which it may from time to time select and notify to the Borrower or through
any kind of agent or sub-agent and, in particular, by power of attorney or otherwise
delegate the exercise of any of its powers and discretions under and in connection with the
Finance Documents to any person on such terms (as to duration, sub-delegation, remuneration,
exoneration and otherwise) as it may consider appropriate.

AS WITNESS the hands of the duly authorised officers or attorneys of the parties hereto the day and
year first before written.

41

 

EXECUTION PAGE

BORROWER

	 	 	 	 	 

	SIGNED by Todd Johnson

	 	 	)	  /s/ Todd Johnson 
	for and on behalf of

	 	 	)	 
	NAVIOS SHIPMANAGEMENT INC.

	 	 	)	 
	in the presence of:

	 	 	)	 
	/s/ Anna Zois
	 	 	 	 
	Anna Zois
	 	 	 	 
	V&P Law Firm
	 	 	 	 
	15 Filikis Eterias Square
	 	 	 	 
	106 73 Athens, Greece
	 	 	 	 
	 
	 	 	 	 
	LENDER
	 	 	 	 
	 
	 	 	 	 
	SIGNED by Vasiliki Katsouli

	 	 	) 	  /s/ Vasiliki Katsouli 
	for and on behalf of

	 	 	)	 
	MARFIN POPULAR BANK PUBLIC CO LTD

	 	 	)	 
	in the presence of:

	 	 	)	 
	/s/ Anna Zois
	 	 	 	 
	Anna Zois
	 	 	 	 
	V&P Law Firm
	 	 	 	 
	15 Filikis Eterias Square
	 	 	 	 
	106 73 Athens, Greece
	 	 	 	 

42

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