Document:

exv10w1

Exhibit 10.1

Private and Confidential

DATED 27 May 2011

NAVIOS MARITIME PARTNERS L.P.

as Borrower

COMMERZBANK AG and DVB BANK SE

as Lenders

DVB BANK SE

as Agent, Joint-Arranger

and Security Trustee

and

COMMERZBANK AG

as Payment Agent, Account Bank,

and Joint-Arranger

 

FACILITY AGREEMENT FOR A USD 35,000,000

TERM LOAN FACILITY

 

 

 

Index

	 	 	 	 	 
	Clause	 	Page	 
	1 Purpose, Definitions, Construction & Majority Lenders
	 	 	3	 
	2 The Available Commitment And Cancellation
	 	 	23	 
	3 Interest And Interest Periods
	 	 	25	 
	4 Repayment And Prepayment
	 	 	28	 
	5 Fees And Expenses
	 	 	30	 
	6 Payments And Taxes; Accounts And Calculations
	 	 	32	 
	7 Representations And Warranties
	 	 	36	 
	8 Undertakings
	 	 	42	 
	9 Conditions
	 	 	52	 
	10 Events Of Default
	 	 	53	 
	11 Indemnities
	 	 	59	 
	12 Unlawfulness And Increased Costs
	 	 	60	 
	13 Application Of Moneys, Set Off, Pro-Rata Payments And Miscellaneous
	 	 	62	 
	14 Accounts And Retentions
	 	 	66	 
	15 Assignment, Transfer And Lending Office
	 	 	68	 
	16 Arrangers, Agent And Security Trustee
	 	 	72	 
	17 Notices And Other Matters
	 	 	86	 
	18 Governing Law
	 	 	89	 
	19 Jurisdiction
	 	 	89	 
	Schedule 1
	 	 	 	 
	The Lenders And Their Commitments
	 	 	 	 
	Schedule 2
	 	 	 	 
	Vessels
	 	 	 	 
	Schedule 3 Form Of Drawdown Notice
	 	 	 	 

 

 

	 	 	 	 	 
	Clause	 	Page	 
	Schedule 4 Conditions Precedent Part 1
	 	 	 	 
	Part 2
	 	 	 	 
	Schedule 5
	 	 	 	 
	Schedule 6 Form Of Compliance Certificate
	 	 	 	 
	Schedule 7 Form Of Trust Deed
	 	 	 	 
	Schedule 8 Loan Administartion Form
	 	 	 	 
	Execution Pages
	 	 	 	 

THIS AGREEMENT dated 27 May 2011 is made BY and BETWEEN:

	(1)	 	NAVIOS MARITIME PARTNERS L.P. as Borrower;
	 
	(2)	 	COMMERZBANK AG and DVB BANK SE as Lenders;
	 
	(3)	 	DVB BANK SE as Agent, Joint-Arranger and Security Trustee; and
	 
	(4)	 	COMMERZBANK AG as Payment Agent, Account Bank and Joint-Arranger.

NOW IT IS HEREBY AGREED AS FOLLOWS:

	1	 	PURPOSE, DEFINITIONS, CONSTRUCTION & MAJORITY LENDERS
	 
	1.1	 	Purpose
	 
	 	 	This Agreement sets out the terms and conditions on which Commerzbank AG and DVB Bank SE
agree to make available to the Borrower a loan in the sum of thirty five million Dollars
(USD 35,000,000) for the purpose of enabling the Borrower to on-lend the same to the
Shareholder to finance the cost of acquisition of the Owners.
	 
	1.2	 	Definitions
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	 	 	“Account Bank” means Commerzbank AG a company incorporated in Germany, acting through its
branch at Domstrasse 18, D-20095, Hamburg Germany or such other Lender

 

 

	 	 	as may be designated by the Agent as the Account Bank for the purposes of this Agreement;
	 
	 	 	“Agent” means DVB Bank SE a company incorporated in Germany, acting through its branch at
Platz der Republik 6, D-60325 Frankfurt am Main, Germany (or of such other address as may
last have been notified to the other parties to this Agreement pursuant to clause 17.2.3)
or such other person as may be appointed as agent by the Lenders pursuant to clause 16.13;
	 
	 	 	“Approved Broker” means each of (i) H Clarkson & Co. Ltd. of St Magnus House, 3 Lower
Thames Street, London EC3R 6HE, England, (ii) Arrow Research Ltd. of Harbour House,
Chelsea Harbour, London SW10 0XE, England, (iii) Fearnleys AS of Grev Wedels Plass 9,
P.O.Box 1158 Sentrum, Oslo N-0107 Norway and (iv) Maritime Strategies International Ltd.
of 2 Baden Place, London SE1 1YW or such other reputable, independent and first class firm
of shipbrokers specialising in the valuation of vessels of the relevant type appointed by
the Agent (acting on the instructions of the Majority Lenders) and agreed with the
Borrower;
	 
	 	 	“Arrangers” means, together, DVB Bank SE a company incorporated in Germany, acting through
its branch at Platz der Republik 6, D-60325 Frankfurt am Main, Germany and Commerzbank AG
acting through its office at Domstrasse 18, D-20095, Hamburg, Germany;
	 
	 	 	“Authorised Person” means each person named as an Authorised Person in the Loan
Administration Form who are authorised, on behalf of the Borrower, to request information
or communicate generally with the Agent in relation to the administration of the Loan by
the Agent during the Facility Period, and with whom the Agent will liaise in the first
instance in relation to the administration of the Loan;
	 
	 	 	“Banking Day” means a day on which dealings in deposits in USD are carried on in the
London Interbank Eurocurrency Market and (other than Saturday or Sunday) on which banks
are open for business in London, Piraeus, Frankfurt, Hamburg and New York City (or any
other relevant place of payment under clause 6);

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	 	 	“Banks” means, together, the Arrangers, the Agent, the Payment Agent, the Account Bank,
the Security Trustee, the Lenders and any Transferee Lenders;
	 
	 	 	“Borrower” means Navios Maritime Partners L.P, a limited partnership established in the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands, MH96960;
	 
	 	 	“Break Costs” means the aggregate amount of all losses, premiums, penalties, costs and
expenses whatsoever certified by the Payment Agent at any time and from time to time as
having been incurred by the Lenders or any of them in maintaining or funding their
Contributions or in liquidating or re-employing fixed deposits acquired to maintain the
same as a result of either:

	 	(a)	 	any repayment or prepayment of the Loan or any part thereof otherwise than
(i) in accordance with clause 4.1 or (ii) on an Interest Payment Date whether on a
voluntary or involuntary basis or otherwise howsoever; or
	 
	 	(b)	 	as a result of the Borrower failing or being incapable of drawing the Loan
after the Drawdown Notice has been given;

	 	 	“Certified Copy” means in relation to any document delivered or issued by or on behalf of
any company, a copy of such document certified as a true, complete and up to date copy of
the original by any of the directors or officers for the time being of such company or by
such company’s attorneys or solicitors;
	 
	 	 	“Charter Assignment” means a specific assignment of each Existing Charter and of any
Extended Employment Contract required to be executed hereunder by either Owner in favour
of the Security Trustee (including any notices and/or acknowledgements and/or undertakings
associated therewith) in such form as the Agent and the Majority Lenders may require in
their sole discretion;
	 
	 	 	“Charter Insurances” means all policies and contracts of insurance which are from time to
time during the Facility Period in place or taken out or entered into by or for the
benefit of the Owners in respect of loss of earnings and all benefits thereof (including
claims of whatsoever nature and return of premiums);

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	 	 	“Charter Insurance Assignment” means a first priority assignment of the Charter Insurances
executed or to be executed by such named insured as the Agent may require in favour of the
Security Trustee, in such form as the Agent and the Majority Lenders may in their sole
discretion require;
	 
	 	 	“Classification” means, in relation to each Mortgaged Vessel, the highest class available
for a vessel of her type with the relevant Classification Society;
	 
	 	 	“Classification Society” means, in relation to each Mortgaged Vessel, any IACS
classification society which the Lenders shall, at the request of the Borrower, have
agreed in writing shall be treated as the classification society in relation to such
Mortgaged Vessel for the purposes of the relevant Ship Security Documents;
	 
	 	 	“Collateral Guarantee” means each unconditional, irrevocable and on demand guarantee of
the obligations of the Borrower under the Existing Loan Agreement and the Master Agreement
(as therein defined) required to be executed by the Owners in favour of the Security
Trustee (as therein defined);
	 
	 	 	“Commitment” means in relation to each Lender, the sum set out opposite its name in
schedule 1 part 1 or any replacement thereof, pursuant to the terms of any relevant
Transfer Certificate as the amount which, subject to the terms of this Agreement, it is
obliged to advance to the Borrower hereunder in respect of the Loan Facility, in each case
as such amount may have been reduced and/or cancelled under this Agreement;
	 
	 	 	“Compliance Certificate” means a certificate substantially in the form set out in schedule
6 signed by the chief financial officer of the Borrower;
	 
	 	 	“Compulsory Acquisition” means, in respect of a Mortgaged Vessel, requisition for title or
other compulsory acquisition including, if that ship is not released therefrom within the
Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or
confiscation howsoever for any reason (but excluding requisition for use or hire) by or on
behalf of any Government Entity or other competent authority or by pirates, hijackers,
terrorists or similar persons; “Relevant Period” means for the purposes of this definition
of Compulsory Acquisition either (i) ninety (90) days or, (ii) if relevant underwriters
confirm in writing (in terms satisfactory to the Majority Lenders) prior to the end of
such

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	 	 	ninety (90) day period that such capture, seizure, detention or confiscation will be fully
covered by the relevant Owner’s war risks insurance, the shorter of twelve (12) months and
such period for which cover is confirmed to attach;
	 
	 	 	“Contribution” means, at any relevant time, in relation to each Lender, the principal
amount of the Loan owing to such Lender at such time;
	 
	 	 	“Default” means any Event of Default or any event or circumstance which with the giving of
notice or lapse of time or the satisfaction of any other condition (or any combination
thereof) would constitute an Event of Default;
	 
	 	 	“Dollars” and “USD” mean the lawful currency of the USA and in respect of all payments to
be made under any of the Security Documents means funds which are for same day settlement
in the New York Clearing House Interbank Payments System (or such other US dollar funds as
may at the relevant time be customary for the settlement of international banking
transactions denominated in US dollars);
	 
	 	 	“Drawdown Date” means the date being a Banking Day on which the Loan is, or is to be, made
available;
	 
	 	 	“Drawdown Notice” means a notice substantially in the form of schedule 3;
	 
	 	 	“Drawdown Period” means the period commencing on the Execution Date and ending on 30 June
2011 or the date on which the Commitment is finally cancelled or no longer available under
the terms of this Agreement;
	 
	 	 	“Earnings Account” means the interest bearing USD current account of the Shareholder
paying interest at a rate to be agreed between the Account Bank and the Shareholder opened
with the Account Bank and includes any sub-accounts thereof and any other account
designated in writing by the Payment Agent to be the Earnings Account for the purposes of
this Agreement;
	 
	 	 	“Earnings Account Pledge” means a first priority charge required to be executed hereunder
between the Shareholder and the Lenders in respect of the Earnings Account in such form as
the Agent and the Majority Lenders may require in their sole discretion;

5

 

	 	 	“EBITDA” means the aggregate amount of combined pre-tax profits of the Group before
extraordinary or exceptional items, interest, depreciation and amortisation as shown, at
any relevant time, by the Latest Accounts;
	 
	 	 	“Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, assignment, title
retention, preferential right, option, trust arrangement or security interest or other
encumbrance, security or arrangement conferring howsoever a priority of payment in respect
of any obligation of any person;
	 
	 	 	“Environmental Affiliate” means any agent or employee of the Borrower, the Manager, or any
other Group Member or any other person having a contractual relationship with the
Borrower, the Manager or any other Group Member in connection with any Relevant Ship or
its operation or the carriage of cargo and/or passengers thereon and/or the provision of
goods and/or services on or from any Relevant Ship;
	 
	 	 	“Environmental Approval” means any consent, authorisation, licence or approval of any
governmental or public body or authorities or courts applicable to any Relevant Ship or
its operation or the carriage of cargo and/or passengers thereon and/or the provision of
goods and/or services on or from any Relevant Ship required under any Environmental Law;
	 
	 	 	“Environmental Claim” means (i) any claim by, or directive from, any applicable
Government Entity alleging breach of, or non-compliance with, any Environmental Laws or
Environmental Approvals or otherwise howsoever relating to or arising out of an
Environmental Incident or (ii) any claim by any other third party howsoever relating to or
arising out of an Environmental Incident (and, in each such case, “claim” shall include a
claim for damages and/or direction for and/or enforcement relating to clean-up costs,
removal, compliance, remedial action or otherwise) or (iii) any Proceedings arising from
any of the foregoing;
	 
	 	 	“Environmental Incident” means, regardless of cause, (i) any actual or threatened
discharge or release of Environmentally Sensitive Material from any Relevant Ship; (ii)
any incident in which Environmentally Sensitive Material is discharged or released from a
vessel other than a Relevant Ship which involves collision between a Relevant Ship and
such other vessel or some other incident of navigation or operation, in either case, where

6

 

	 	 	the Relevant Ship, the Manager and/or the relevant Owner and/or the relevant Group Member
and/or the relevant Operator are actually, contingently or allegedly at fault or otherwise
howsoever liable (in whole or in part) or (iii) any incident in which Environmentally
Sensitive Material is discharged or released from a vessel other than a Relevant Ship and
where such Relevant Ship is actually or potentially liable to be arrested as a result
and/or where the Manager and/or the relevant Owner and/or other Group Member and/or the
relevant Operator are actually, contingently or allegedly at fault or otherwise howsoever
liable;
	 
	 	 	“Environmental Laws” means all laws, regulations, conventions and agreements whatsoever
relating to pollution, human or wildlife well-being or protection of the environment
(including, without limitation, the United States Oil Pollution Act of 1990 and any
comparable laws of the individual States of the USA);
	 
	 	 	“Environmentally Sensitive Material” means oil, oil products or any other products or
substance which are polluting, toxic or hazardous or any substance the release of which
into the environment is howsoever regulated, prohibited or penalised by or pursuant to any
Environmental Law;
	 
	 	 	“Event of Default” means any of the events or circumstances listed in clause 10.1;
	 
	 	 	“Execution Date” means the date on which this Agreement has been executed by all the
parties hereto;
	 
	 	 	“Existing Loan Agreement” means a loan agreement dated 15 November 2007 (as amended) made
between (inter alia) the Borrower as borrower, the Lenders as lenders, the Agent and the
Security Trustee;
	 
	 	 	“Extended Employment Contract” means, in respect of a Mortgaged Vessel, any time
charterparty, contract of affreightment or other contract of employment of such ship
(including the entry of either Vessel in any pool) which has a tenor of not less than
twelve (12) months (including any options to renew or extend such tenor);
	 
	 	 	“Facility Period” means the period starting on the date of this Agreement and ending on
such date as all obligations whatsoever of all of the Security Parties under or pursuant
to

7

 

	 	 	the Security Documents whensoever arising, actual or contingent, have been irrevocably
paid, performed and/or complied with;
	 
	 	 	“Flag State” means Panama or any other country acceptable to the Lenders;
	 
	 	 	“General Assignment” means, in respect of each Mortgaged Vessel, the deed of assignment
of its earnings, insurances and requisition compensation executed or to be executed by the
relevant Owner in favour of the Security Trustee in such form as the Agent and the
Majority Lenders may require in their sole discretion;
	 
	 	 	“Government Entity” means any national or local government body, tribunal, court or
regulatory or other agency and any organisation of which such body, tribunal, court or
agency is a part or to which it is subject;
	 
	 	 	“Group” means the Borrower and its subsidiaries;
	 
	 	 	“Group Member” means any member of the Group;
	 
	 	 	“Guarantee” means each unconditional, irrevocable and on demand guarantee of the
obligations of the Borrower under this Agreement required to be executed by the Guarantors
and the Shareholder in favour of the Security Trustee in such form as the Agent and the
Majority Lenders may require in their sole discretion;
	 
	 	 	“Guarantors” means each of the following corporations, each of which is incorporated in
the Marshall Islands, and has its registered office at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;

	 	(a)	 	Libra Shipping Enterprises Corporation;
	 
	 	(b)	 	Alegria Shipping Corporation;
	 
	 	(c)	 	Felicity Shipping Corporation;
	 
	 	(d)	 	Gemini Shipping Corporation;
	 
	 	(e)	 	Galaxy Shipping Corporation;
	 
	 	(f)	 	Chilali Corp.;

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	 	(g)	 	the Shareholder;
	 
	 	(h)	 	Kohylia Shipmanagement S.A. (“Kohylia”);
	 
	 	(i)	 	Orbiter Shipping Corp. (“Orbiter”);
	 
	 	(j)	 	Fantastiks Shipping Corporation;
	 
	 	(k)	 	Aurora Shipping Enterprises Ltd.;
	 
	 	(l)	 	Hyperion Enterprises Inc;
	 
	 	(m)	 	Palermo Shipping S.A.;
	 
	 	(n)	 	Surf Maritime Co.;
	 
	 	(o)	 	Sagittarius Shipping Corporation;
	 
	 	(p)	 	Pandora Marine Inc.; and
	 
	 	(q)	 	Customized Development S.A;

	 	 	“IAPP Certificate” means the International Air Pollution Prevention Certificate issued or
to be issued pursuant to Annex VI of the International Convention for the Prevention of
Pollution from Ship, MARPOL 73/78 (Regulations for the Prevention of Air Pollution from
Ships) in relation to a Vessel;
	 
	 	 	“Indebtedness” means any obligation howsoever arising (whether present or future, actual
or contingent, secured or unsecured as principal, surety or otherwise) for the payment or
repayment of money;
	 
	 	 	“Interest Expense” means, for any relevant financial year, the aggregate interest payable
by the Group and any member thereof on any Indebtedness during such period;
	 
	 	 	“Interest Payment Date” means the last day of an Interest Period and, if an Interest
Period is longer than three (3) months, the date falling at the end of each successive
period of three (3) months from the start of such Interest Period;

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	 	 	“Interest Period” means, in relation to the Loan, each period for the calculation of
interest ascertained in accordance with clauses 3.2 and 3.3;
	 
	 	 	“ISM Code Documentation” means, in relation to a Mortgaged Vessel, the document of
compliance (DOC) and safety management certificate (SMC) issued by a Classification
Society pursuant to the ISM Code in relation to that Mortgaged Vessel within the periods
specified by the ISM Code;
	 
	 	 	“ISM SMS” means the safety management system which is required to be developed,
implemented and maintained under the ISM Code;
	 
	 	 	“ISPS Code” means the International Ship and Port Security Code of the International
Maritime Organisation and includes any amendments or extensions thereto and any
regulations issued pursuant thereto;
	 
	 	 	“ISSC” means an International Ship Security Certificate issued in respect of a Mortgaged
Vessel pursuant to the ISPS Code;
	 
	 	 	“Latest Accounts” means, in respect of any financial quarter or year of the Group, the
latest unaudited (in respect of each financial quarter) or audited (in respect of each
financial year) financial statements required to be prepared pursuant to clause 8.1.6;
	 
	 	 	“Lenders” means the banks listed in schedule 1 part 1 and Transferee Lenders;
	 
	 	 	“Lending Branch” means, in respect of each Lender, its office or branch at the address set
out beneath its name in schedule 1 (or, in the case of a Transferee, in the Transfer
Certificate to which it is a party as Transferee) or such other office or branch as any
Lender shall from time to time select and notify through the Payment Agent to the other
parties to this Agreement;
	 
	 	 	“LIBOR” means, for a particular period, the rate determined by the Agent (which
determination shall be final, conclusive and binding on the Borrower) to be greater of:

	 	(a)	 	the rate equal to the offered quotation for deposits in USD in an amount
comparable with the amount in relation to which LIBOR is to be determined for a
period equal to, or as near as possible equal to, the relevant period which appears
on Reuters Screen LIBOR01 at or about 11 a.m. (London time) on the second Banking Day
before the

10

 

	 	 	 	first day of such period (and, for the purposes of this Agreement, “Reuters Screen
LIBOR01” means the display designated as “LIBOR01” on the Reuters Service or such
other page as may replace LIBOR01 on that service for the purpose of displaying rates
comparable to that rate or on such other service as may be nominated by the British
Bankers’ Association as the information vendor for the purpose of displaying the
British Bankers’ Association Interest Settlement Rates for USD); and
	 
	 	(b)	 	the lesser of (i) the aggregate of the rate referred to at (a) above and
0.35% per annum, and (ii) the rate per annum determined by the Agent (which
determination shall be final, conclusive and binding on the Borrower) to be the rate
at which deposits in Dollars are offered to the Lenders (without any obligation to
take up that offer) in their ordinary course of business at the Agent’s request at or
about 11.00 a.m. (London time) on the day on which quotations would ordinarily be
given by leading banks in the London Interbank Market or European Financial Markets
for deposits in the relevant currency to which such rate is to be determined for
delivery on the first day of that period or, if the Agent obtains, in the ordinary
course of its business, quotes from more than one broker and/or leading bank, then
LIBOR shall be the arithmetic mean of those quotes ;

	 	 	“Liquidity” means:

	 	(a)	 	cash in hand legally and beneficially owned by any Group Member; and
	 
	 	(b)	 	cash deposits legally and beneficially owned by any Group Member and which
are deposited with (i) any of the Banks or (ii) any other bank or financial
institution; and
	 
	 	(c)	 	any undrawn Commitment under this Agreement which may be promptly drawn in
accordance with the terms of this Agreement;

	 	 	which in each case:

	 	(a)	 	is free from any Encumbrance other than in respect of any deposit with a
Lender, any Encumbrance given as security for the obligations of the Borrower under
this Agreement; and

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	 	(b)	 	is otherwise at the free and unrestricted disposal of the relevant Group
Member by which it is owned;

	 	 	“Loan” means the aggregate principal amount in respect of the Loan Facility owing
to the Lenders under this Agreement at any relevant time;
	 
	 	 	“Loan Administration Form” means a letter substantially in the form set out in schedule 8
signed by the Borrower;
	 
	 	 	“Loan Facility” means the loan facility provided by the Lenders on the terms and
subject to the conditions of this Agreement in the amount of USD 35,000,000;
	 
	 	 	“Majority Lenders” means at any relevant time when there are two Lenders, both of them,
and at any time when there are more than two Lenders, the Lenders whose Contributions
exceed 75% of the Loan;
	 
	 	 	“Management Agreement” means, in respect of each Mortgaged Vessel, the agreement between
the Owners and the Manager, in a form previously approved in writing by the Agent (acting
on the instructions of the Majority Lenders);
	 
	 	 	“Manager” means Navios Shipmanagement Inc., a company incorporated in the Marshall Islands
and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands, MH96960 or any other person appointed by an Owner, with the
prior written consent of the Agent (acting on the instructions of the Majority Lenders),
as the commercial and/or technical manager of the relevant Mortgaged Vessel;
	 
	 	 	“Manager’s Undertakings” means, collectively, the undertakings and assignments required to
be executed hereunder by the Manager in favour of the Security Trustee in respect of each
of the Mortgaged Vessels each in such form as the Agent and the Majority Lenders may
require in their sole discretion;
	 
	 	 	“Margin” means, 2.70% per annum
	 
	 	 	“Material Adverse Change” means any material adverse change since 28 April 2011 in
(a) the financial strength of the Borrower and/or the General Partner, (b) global economic
and/or political developments and/or (c) the international money and/or capital markets;

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	 	 	“Material Adverse Effect” means any event or occurrence which the Majority Lenders
reasonably determine has had or could reasonably be expected to have a material adverse
effect on (i) the Banks’ rights under, or the security provided by, any Security Document,
(ii) the ability of any Security Party or other member of the Group to perform or comply
with any of its obligations under any Security Document or (iii) the value or nature of
the property, assets, operations, liabilities or financial condition of any member of the
Group;
	 
	 	 	“Maturity Date” means the date falling 7 years after the Execution Date;
	 
	 	 	“MII & MAP Policy” means a mortgagee’s interest and pollution risks insurance policy
(including additional perils (pollution) cover) in respect of each Mortgaged Vessel to be
effected by the Security Trustee on or before the Drawdown Date to cover the Mortgaged
Vessels as the same may be renewed or replaced annually thereafter and maintained
throughout the Facility Period through such brokers, with such underwriters and containing
such coverage as may be acceptable to the Security Trustee in its sole discretion,
insuring a sum of at least one hundred and twenty per cent (120%) of the Loan in respect
of mortgagee’s interest insurance and one hundred and twenty per cent (120%) of the Loan
in respect of additional perils cover;
	 
	 	 	“Minimum Liquidity” means the higher at any relevant time of (i) USD20,000,000 and (ii)
the aggregate amount falling due and payable by any Group Member during the following six
months in respect of principal and interest in respect of any Indebtedness;
	 
	 	 	“month” means a period beginning in one calendar month and ending in the next calendar
month on the day numerically corresponding to the day of the calendar month on which it
started, provided that (a) if the period started on the last Banking Day in a calendar
month or if there is no such numerically corresponding day, it shall end on the last
Banking Day in such next calendar month and (b) if such numerically corresponding day is
not a Banking Day, the period shall end on the next following Banking Day in the same
calendar month but if there is no such Banking Day it shall end on the preceding Banking
Day and “months” and “monthly” shall be construed accordingly;
	 
	 	 	“Mortgage” means, in respect of each Vessel, the first preferred Panamanian Ship
mortgage thereof required to be executed hereunder by the Owner thereof in favour of

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	 	 	the Security Trustee, each in such form as the Agent and the Majority Lenders may
require in their sole discretion;

	 	 	“Mortgaged Vessel” means, at any relevant time, either Vessel which is at such time
subject to a Mortgage and a Vessel shall, for the purposes of this Agreement, be regarded
as a Mortgaged Vessel as from the date on which the Mortgage of that Vessel has been
executed and registered in accordance with this Agreement until whichever shall be the
earlier of (i) the payment in full of the amount required to be paid to the Agent pursuant
to clause 4.3 or 4.5 following the Total Loss or sale respectively of such Vessel and (ii)
the end of the Facility Period;

	 	 	“Navios GP” means Navios GP L.L.C., a limited liability company organised and existing
under the laws of the Marshall Islands and having its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, MH96960, Marshall Islands;

	 	 	“Navios Holdings” means Navios Maritime Holdings Inc., a corporation incorporated in the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, MH96960, Marshall Islands;

	 	 	“Net Worth” means, by reference to the Latest Accounts in respect of the Group, the Total
Assets (adjusted for market values calculated in accordance with clause 8.2) less Total
Liabilities of the Group;

	 	 	“Omnibus Agreements” means (i) the agreement dated 16 November 2007 made between the
Borrower, the Shareholder, Navios GP and Navios Holdings and (ii) the agreement made
between the Borrower, Navios Holdings and Navios Maritime Acquisition Corporation of the
Marshall Islands, both in relation to certain business opportunities of the parties
thereto in a form acceptable to the Lenders;

	 	 	“Operator” means any person who is from time to time during the Facility Period concerned
in the operation of a Relevant Ship and falls within the definition of “Company” set out
in rule 1.1.2 of the ISM Code;

	 	 	“Owner” means, in respect of each Vessel, the Guarantor which is stated in schedule 2 to
be the owner thereof;

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	 	 	“Payment Agent” means Commerzbank AG a company incorporated in Germany, acting
through its branch at Domstrasse 18, D-20095, Hamburg, Germany (or of such other address
as may last have been notified to the other parties to this Agreement pursuant to clause
17.2.3) or such other person as may be appointed as agent by the Lenders pursuant to
clause 16.13;

	 	 	“Permitted Encumbrance” means any Encumbrance in favour of the Banks or any of them
created pursuant to the Security Documents and Permitted Liens;

	 	 	“Permitted Liens” means any lien on a Mortgaged Vessel for master’s, officer’s or crew’s
wages outstanding in the ordinary course of trading, any lien for salvage and any ship
repairer’s or outfitter’s possessory lien for a sum not (except with the prior written
consent of the Agent) exceeding the Casualty Amount (as defined in the Ship Security
Documents for such Mortgaged Vessel);

	 	 	“Permitted Owners” means, in relation to the Borrower, any one or more of Navios
Holdings, any of its subsidiaries, Navios GP and, (as legal and/or beneficial owner), Mrs.
Angeliki Frangou;

	 	 	“Pertinent Jurisdiction” means any jurisdiction in which or where any Security Party is
incorporated, resident, domiciled, has a permanent establishment or assets, carries on, or
has a place of business or is otherwise howsoever effectively connected;

	 	 	“Prepayment Ratio” means in respect of the sale or Total Loss of a Mortgaged Vessel the
Valuation Amount of such Mortgaged Vessel immediately prior to such sale or Total Loss
divided by the Security Value immediately prior to such sale or Total Loss and for these
purposes any valuation of a Vessel (calculated in accordance with Clause 8.2.2) may be no
more than two months old;

	 	 	“Proceedings” means any litigation, arbitration, legal action or complaint or
judicial, quasi-judicial or administrative proceedings whatsoever arising or instigated by
anyone (private or governmental) in any court, tribunal, public office or other forum
whatsoever and wheresoever (including, without limitation, any action for provisional or
permanent attachment of any thing or for injunctive remedies or interim relief and any
action instigated on an ex parte basis);

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	 	 	“Registry” means, in relation to each Vessel, the office of the registrar, commissioner or
representative of the Flag State, who is duly empowered to register such Vessel, the
relevant Owner’s title thereto and the relevant Mortgage under the laws and flag of the
Flag State;

	 	 	“Relevant Ship” means each of the Mortgaged Vessels and any other ship from time to time
(whether before or after the date of this Agreement) owned, managed or crewed by, or
chartered to, any Group Member;

	 	 	“Repayment Date” means the date on which any instalment of the Loan is repayable under the
provisions of clause 4.1;

	 	 	“Required Authorisation” means any authorisation, consent, declaration, licence, permit,
exemption, approval or other document, whether imposed by or arising in connection with
any law, regulation, custom, contract, security or otherwise howsoever which must be
obtained at any time from any person, Government Entity, central bank or other
self-regulating or supra-national authority in order to enable the Borrower lawfully to
borrow the loan or draw the Loan and/or to enable any Security Party lawfully and
continuously to continue its corporate existence and/or perform all its obligations
whatsoever whensoever arising and/or grant security under the relevant Security Documents
and/or to ensure the continuous validity and enforceability thereof;

	 	 	“Required Security Amount” means the amount in USD (as certified by the Agent) which is at
any relevant time one hundred and forty three per cent (143%) of the Loan;

	 	 	“Retention Account” means an interest bearing USD current account of the Borrower paying
interest at a rate to be agreed between the Account Bank and the Borrower opened with the
Account Bank and includes any sub-accounts thereof and any other account designated in
writing by the Payment Agent to be the Retention Account for the purposes of this
Agreement;

	 	 	“Retention Account Pledge” means a first priority charge required to be executed hereunder
between the Borrower and the Lenders in respect of the Retention Account in such form as
the Agent and the Majority Lenders may require in their sole discretion;

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	 	 	“Retention Amount” means, in relation to any Retention Date, such sum as shall be the
aggregate of:

	 	(a)	 	one-third (1/3rd) of the repayment instalment in respect of the Loan
falling due for payment pursuant to clause 4.1.1 (as the same may have been reduced
by any prepayment) on the next Repayment Date after the relevant Retention Date; and
	 
	 	(b)	 	the applicable fraction (as hereinafter defined) of the aggregate amount of
interest falling due for payment in respect of each part of the Loan during and at
the end of each Interest Period current at the relevant Retention Date and, for this
purpose, the expression “applicable fraction” in relation to each Interest Period
shall mean a fraction having a numerator of one and a denominator equal to the number
of Retention Dates falling within the relevant Interest Period;

	 	 	“Retention Dates” means the date falling thirty (30) days after the Drawdown Date and each
of the dates falling at monthly intervals after such date and prior to the Maturity Date;

	 	 	“Security Documents” means this Agreement, the Mortgages, the Guarantees, the General
Assignments, the Charter Assignments, the Earnings Accounts Pledge, the Retention Account
Pledge, the Manager’s Undertakings (with effect from the date of execution pursuant to
Clause 8.1.19), the Charter Insurance Assignments, the Shares Pledges and any other
documents as may have been or shall from time to time after the date of this Agreement be
executed to guarantee and/or to govern and/or secure all or any part of the Loan, interest
thereon and other moneys from time to time owing by the Borrower pursuant to this
Agreement (whether or not any such document also secures moneys from time to time owing
pursuant to any other document or agreement);

	 	 	“Security Party” means the Borrower, the Guarantors or any other person who may at any
time be a party to any of the Security Documents (other than the Banks, the Manager and
Navios Holdings);

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	 	 	“Security Trustee” means DVB Bank SE a company incorporated in Germany, acting through its
branch at Platz der Republik 6, D-60325 Frankfurt am Main, Germany (or of such other
address as may last have been notified to the other parties to this Agreement pursuant to
clause 17.2.3) or such other person as may be appointed as Security Trustee and trustee by
the Lenders, the Payment Agent and the Agent pursuant to clause 16.14;

	 	 	“Security Value” means the amount in USD (as certified by the Agent) which is, at any
relevant time, the aggregate of (a) the Valuation Amounts of the Mortgaged Vessels as most
recently determined in accordance with clause 8.2.2 and (b) the net realizable market
value of any additional security for the time being actually provided to the Lenders
pursuant to clause 8.2.1(b);

	 	 	“Shareholder” means, Navios Maritime Operating L.L.C. a company incorporated in the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands, MH96960;

	 	 	“Shares Pledge” means the first priority pledge of the shares of and in each Owner
required to be executed at any time under clause 8.1.17 by the Shareholder in favour of
the Security Trustee and/or a Lender in such form as the Agent and the Majority Lenders
may require in their sole discretion and in the plural means all of them;

	 	 	“Ship Security Documents” means, in relation to each Mortgaged Vessel, the relevant
Mortgage, the relevant General Assignment, any relevant Charter Assignment and the
relevant Manager’s Undertaking;

	 	 	“subsidiary” of a person means any company or entity directly or indirectly controlled by
such person, and for this purpose “control” means either the ownership of more than fifty
per cent (50%) of the voting share capital (or equivalent rights of ownership) of such
company or entity or the power to direct its policies and management, whether by contract
or otherwise;

	 	 	“Taxes” includes all present and future income, corporation, capital or value-added taxes
and all stamp and other taxes and levies, imposts, deductions, duties, charges and
withholdings whatsoever together with interest thereon and penalties in respect thereto,

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	 	 	if any, and charges, fees or other amounts made on or in respect thereof (and “Taxation”
shall be construed accordingly);

	 	 	“Total Assets” and “Total Liabilities” mean, respectively, the total assets and total
liabilities of the Group as evidenced at any relevant time by the Latest Accounts, in
which they shall have been calculated by reference to the meanings assigned to them in
accordance with US GAAP provided that the value of any ship shall be the value thereof
calculated in accordance with Clause 8.2.2 and not as set out in the Latest Accounts;

	 	 	“Total Commitment” means, at any relevant time, the aggregate of the Commitments of all
the Lenders at such time (being the aggregate of the sums set out opposite their names in
schedule 1);

	 	 	“Total Loss” means, in relation to each Mortgaged Vessel:

	 	(a)	 	actual, constructive, compromised or arranged total loss of such Mortgaged
Vessel; or
	 
	 	(b)	 	Compulsory Acquisition; or
	 
	 	(c)	 	any hijacking, theft, condemnation, capture, seizure, arrest, detention or
confiscation of such Mortgaged Vessel not falling within the definition of Compulsory
Acquisition by any Government Entity, or by persons allegedly acting or purporting
to act on behalf of any Government Entity, unless (i) either such Mortgaged Vessel be
released and restored to the relevant Owner within ninety (90) days after such
incident, or (ii) if relevant underwriters confirm in writing (in customary terms)
prior to the end of such ninety (90) day period that such capture, seizure, detention
or confiscation will be fully covered by the relevant Owner’s war risks insurance,
the shorter of twelve (12) months and such period for which cover is confirmed to
attach;

	 	 	“Transfer Certificate” means a certificate in substantially the form set out in
schedule 5;

	 	 	“Transferee Lender” has the meaning ascribed thereto in clause 15.3;

	 	 	“Transferor Lender” has the meaning ascribed thereto in clause 15.3;

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	 	 	“Trust Deed” means a trust deed in the form, or substantially in the form, set out in
schedule 7;

	 	 	“Trust Property” means (i) the security, powers, rights, titles, benefits and interests
(both present and future) constituted by and conferred on the Banks or any of them under
or pursuant to the Security Documents (including, without limitation, the benefit of all
covenants, undertakings, representations, warranties and obligations given, made or
undertaken to any Bank in the Security Documents), (ii) all moneys, property and other
assets paid or transferred to or vested in any Bank (or anyone else on such Bank’s behalf)
or received or recovered by any Bank (or anyone else on such Bank’s behalf) pursuant to,
or in connection with, any of the Security Documents whether from any Security Party or
any other person and (iii) all moneys, investments, property and other assets at any time
representing or deriving from any of the foregoing, including all interest, income and
other sums at any time received or receivable by any Bank (or anyone else on such Bank’s
behalf) in respect of the same (or any part thereof);

	 	 	“Underlying Documents” means, together, the Existing Charters, Extended Employment
Contracts and the Management Agreements;

	 	 	“Unlawfulness” means any event or circumstance which either is or, as the case may be,
might in the opinion of the Agent become the subject of a notification by the Agent to the
Borrower under clause 12.1;

	 	 	“USA” means the United States of America; and

	 	 	“Valuation Amount” means, in respect of each Mortgaged Vessel, the value thereof as most
recently determined under clause 8.2.2.

	 	 	Words and expressions defined in Schedule 2 (Vessel Details) shall have the meanings given
to them therein as if the same were set out in full in this clause 1.2.

	1.3	 	Construction

	 	 	In this Agreement, unless the context otherwise requires:

	1.3.1	 	clause headings and the index are inserted for convenience of reference only and shall
be ignored in the construction of this Agreement;

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	1.3.2	 	references to clauses and schedules are to be construed as references to clauses of, and
schedules to, this Agreement and references to this Agreement include its schedules and any
supplemental agreements executed pursuant hereto;

	1.3.3	 	references to (or to any specified provision of) this Agreement or any other document shall
be construed as references to this Agreement, that provision or that document as in force for
the time being and as duly amended and/or supplemented and/or novated;

	1.3.4	 	references to a “regulation” include any present or future regulation, rule, directive,
requirement, request or guideline (whether or not having the force of law) of any Government
Entity, central bank or any self-regulatory or other supra-national authority;

	1.3.5	 	references to any person in or party to this Agreement shall include reference to such
person’s lawful successors and assigns and references to a Lender shall also include a
Transferee Lender;

	1.3.6	 	words importing the plural shall include the singular and vice versa;

	1.3.7	 	references to a time of day are, unless otherwise stated, to Hamburg time;

	1.3.8	 	references to a person shall be construed as references to an individual, firm,
company, corporation or unincorporated body of persons or any Government Entity;

	1.3.9	 	references to a “guarantee” include references to an indemnity or any other kind of
assurance whatsoever (including, without limitation, any kind of negotiable instrument, bill
or note) against financial loss or other liability including, without limitation, an
obligation to purchase assets or services as a consequence of a default by any other person to
pay any Indebtedness and “guaranteed” shall be construed accordingly;

	1.3.10	 	references to any statute or other legislative provision are to be construed as references
to any such statute or other legislative provision as the same may be re enacted or modified
or substituted by any subsequent statute or legislative provision (whether before or after the
date hereof) and shall include any regulations, orders, instruments or other subordinate
legislation issued or made under such statute or legislative provision;

	1.3.11	 	a certificate by the Agent or the Payment Agent as to any amount due or
calculation made or any matter whatsoever determined in connection with this Agreement shall
be conclusive and binding on the Borrower except for manifest error;

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	1.3.12	 	if any document, term or other matter or thing is required to be approved, agreed or
consented to by any of the Banks such approval, agreement or consent must be obtained in
writing unless the contrary is stated;

	1.3.13	 	time shall be of the essence in respect of all obligations whatsoever of the Borrower under
this Agreement, howsoever and whensoever arising;

	1.3.14	 	and the words “other” and “otherwise” shall not be construed eiusdem generis with any
foregoing words where a wider construction is possible.

	1.4	 	Accounting terms and references to currencies

	 	 	Currencies are referred to in this Agreement by the three letter currency codes
(ISO 4217) allocated to them by the International Organisation for Standardisation.

	1.5	 	Contracts (Rights of Third Parties Act) 1999

	 	 	Except for clause 19, no part of this Agreement shall be enforceable under the
Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this
Agreement.

	1.6	 	Majority Lenders

	 	 	Where this Agreement or any other Security Document provides for any matter to be
determined by reference to the opinion of the Majority Lenders or to be subject to the
consent or request of the Majority Lenders or for any decision or action to be taken on
the instructions in writing of the Majority Lenders, such opinion, consent, request or
instructions shall (as between the Lenders) only be regarded as having been validly given
or issued by the Majority Lenders if all the Lenders with a Commitment and/or Contribution
shall have received prior notice of the matter on which such opinion, consent, request or
instructions are required to be obtained and the relevant majority of such Lenders shall
have given or issued such opinion, consent, request or instructions but so that (as
between the Borrower and the Banks) the Borrower shall be entitled (and bound) to assume
that such notice shall have been duly received by each relevant Lender and that the
relevant majority shall have been obtained to constitute Majority Lenders whether or not
this is in fact the case.

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	2	 	THE AVAILABLE COMMITMENT AND CANCELLATION

	2.1	 	Agreement to lend

	 	 	The Lenders, relying upon each of the representations and warranties in clause 7,
agree to provide to the Borrower upon and subject to the terms of this Agreement, the Loan
by making available the Loan for the purposes of on-lending to the Shareholder to finance
the cost of acquisition of all of the issued shares in the Owners and providing the
Borrower with general corporate and working capital. Subject to the terms of this
Agreement, the obligations of the Lenders shall be to contribute to the Loan, the
proportion of the Loan which their respective Commitments bear to the aggregate
Commitments on the Drawdown Date.

	2.2	 	Obligations several

	 	 	The obligations of the Lenders under this Agreement are several according to their
respective Commitments and/or Contributions. The failure of any Lender to perform such
obligations shall not relieve any other party to this Agreement of any of its respective
obligations or liabilities under this Agreement nor shall any Bank be responsible for the
obligations of any other Bank (except for its own obligations, if any, as a Lender) under
this Agreement.

	2.3	 	Interests several

	 	 	Notwithstanding any other term of this Agreement (but without prejudice to the
provisions of this Agreement relating to or requiring action by the Majority Lenders) the
interests of the Banks are several and the amount due to any Bank is a separate and
independent debt. Each Bank shall have the right to protect and enforce its rights
arising out of this Agreement and it shall not be necessary for any other Bank to be
joined as an additional party in any Proceedings for this purpose.

	2.4	 	Drawdown

	2.4.1	 	Subject to the terms and conditions of this Agreement, the Loan shall be made available to
the Borrower following receipt by the Payment Agent from the Borrower of the Drawdown Notice
not later than 10:00 a.m. on the third Banking Day before the date, which shall be a

23

 

	 	 	Banking Day falling within the Drawdown Period, on which the Borrower proposes the Loan is
made available.

	2.4.2	 	The Drawdown Notice shall be effective on actual receipt by the Payment Agent and, once
given, shall, subject as provided in clause 2.6, be irrevocable.

	2.5	 	Limitation and application of Loan
	 
	2.5.1	 	The amount of the Loan shall not exceed the amount of the Loan Facility.
	 
	2.5.2	 	The Loan shall be made available in the amount referred to in clause 1.2.
	 
	2.5.3	 	The Loan shall be paid forthwith upon drawdown to such account or accounts as the Borrower
shall stipulate in the Drawdown Notice.

	2.6	 	Availability

	 	 	Upon receipt of the Drawdown Notice complying with the terms of this Agreement, the
Payment Agent shall promptly notify each Lender and each Lender shall make available to
the Payment Agent its portion of the Loan for payment by the Payment Agent in accordance
with clause 6.2. The Borrower acknowledges that payment of the Loan to the account
referred to in Clause 2.5.3 shall satisfy the obligation of the Lenders to lend the Loan
to the Borrower under this Agreement.

	2.7	 	Cancellation in changed circumstances

	 	 	The Borrower may also at any time during the Facility Period by notice to the
Payment Agent (effective only on actual receipt) prepay and cancel with effect from a date
not less than fifteen (15) days after receipt by the Payment Agent of such notice, the
whole but not part only, but without prejudice to the Borrower’s obligations under clauses
6.6 and 12, of the Contribution and Commitment (if any) of any Lender to which the
Borrower shall have become obliged to pay additional amounts under clause 12 or clause
6.6. Upon any notice of such prepayment and cancellation being given, the Commitment of
the relevant Lender shall be reduced to zero, the Borrower shall be obliged to prepay the
Contribution of such Lender and such Lender’s related costs (including but not limited to
Break Costs) on such date and such Lender shall be under no obligation to participate in
the Loan.

	2.8	 	Use of proceeds

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	 	 	Without prejudice to the Borrower’s obligations under clause 8.1.4, no Bank shall
have any responsibility for the application of the proceeds of the Loan or any part
thereof by the Borrower.

	3	 	INTEREST AND INTEREST PERIODS

	3.1	 	Normal interest rate

	 	 	The Borrower must pay interest on the Loan in respect of each Interest Period
relating thereto on each Interest Payment Date at the rate per annum determined by the
Payment Agent to be the aggregate of (a) the Margin and (b) LIBOR.

	3.2	 	Selection of Interest Periods

	 	 	Subject to clause 3.3, the Borrower may by notice received by the Payment Agent not
later than 10:00 a.m. on the fourth Banking Day before the beginning of each Interest
Period specify whether such Interest Period shall have a duration of three (3) or six (6)
months or such other period as the Borrower may select and the Payment Agent (acting on
the instructions of the Lenders) may agree.

	3.3	 	Determination of Interest Periods

	 	 	Subject to Clause 3.3.1 every Interest Period shall be of the duration specified by
the Borrower pursuant to clause 3.2 but so that:

	3.3.1	 	the first Interest Period shall start on the Drawdown Date and each subsequent Interest
Period shall start on the last day of the previous Interest Period;

	3.3.2	 	if any Interest Period would otherwise overrun a relevant Repayment Date, then the Loan
shall be divided into parts so that there is one part in the amount of the repayment
instalment due on such Repayment Date and having an Interest Period ending on the relevant
Repayment Date and another part in the amount of the balance of the Loan having an Interest
Period ascertained in accordance with clause 3.2 and the other provisions of this clause 3.3;

	3.3.3	 	if the Borrower fails to specify the duration of an Interest Period in accordance with the
provisions of clause 3.2 and this clause 3.3, such Interest Period shall have a duration of
three (3) months or such other period as shall comply with this clause 3.3.

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	3.4	 	Default interest

	 	 	If the Borrower fails to pay any sum (including, without limitation, any sum
payable pursuant to this clause 3.4) on its due date for payment under any of the Security
Documents, the Borrower must pay interest on such sum on demand from the due date up to
the date of actual payment (as well after as before judgment) at a rate determined by the
Payment Agent pursuant to this clause 3.4. The period starting on such due date and
ending on such date of payment shall be divided into successive periods of not more than
three (3) months as selected by the Payment Agent each of which (other than the first,
which shall start on such due date) shall start on the last day of the preceding such
period. The rate of interest applicable to each such period shall be the aggregate (as
determined by the Payment Agent) of (a) two per cent (2%) per annum, (b) the Margin and
(c) LIBOR for such periods. Such interest shall be due and payable on demand, or, if no
demand is made, then on the last day of each such period as determined by the Payment
Agent and on the day on which all amounts in respect of which interest is being paid under
this Clause are paid, and each such day shall, for the purposes of this Agreement, be
treated as an Interest Payment Date, provided that if such unpaid sum is an amount of
principal which became due and payable by reason of a declaration by the Payment Agent
under clause 10.2.2 or a prepayment pursuant to clauses 4.3, 4.5, 8.2.1(a) or 12.1, on a
date other than an Interest Payment Date relating thereto, the first such period selected
by the Payment Agent shall be of a duration equal to the period between the due date of
such principal sum and such Interest Payment Date and interest shall be payable on such
principal sum during such period at a rate of two per cent (2%) above the rate applicable
thereto immediately before it shall have become so due and payable. If, for the reasons
specified in clause 3.6.1, the Payment Agent is unable to determine a rate in accordance
with the foregoing provisions of this clause 3.4, each Lender shall promptly notify the
Payment Agent of the cost of funds to such Lender and interest on any sum not paid on its
due date for payment shall be calculated at a rate determined by the Payment Agent to be
two per cent (2%) per annum above the aggregate of the Margin and the arithmetic mean of
the cost of funds to the Lenders compounded at such intervals as the Payment Agent
selects.

	3.5	 	Notification of Interest Periods and interest rate

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	 	 	The Payment Agent agrees to notify (i) the Lenders promptly of the duration of each
Interest Period and (ii) the Borrower and the Lenders promptly of each rate of interest
determined by it under this clause 3.5.

	3.6	 	Market disruption; non-availability

	3.6.1	 	Whenever, at any time prior to the commencement of any Interest Period:

	 	(a)	 	the Payment Agent shall have determined that adequate and fair means do not
exist for ascertaining LIBOR during such Interest Period; or
	 
	 	(b)	 	the Payment Agent shall have received notification from a Lender or Lenders
that deposits in USD are not available to such Lender or Lenders in the London
InterBank Market in the ordinary course of business to fund their Contributions to
the Loan for such Interest Period
	 
	 	(c)	 	the Payment Agent must promptly give notice (a “Determination Notice”)
thereof to the Borrower and to each of the Lenders. A Determination Notice shall
contain particulars of the relevant circumstances giving rise to its issue. After
the giving of any Determination Notice, regardless of any other provision of this
Agreement, the Commitment shall not be borrowed until notice to the contrary is given
to the Borrower by the Payment Agent.

	3.6.2	 	Within ten (10) days of any Determination Notice being given by the Payment Agent under
clause 3.6.1, each Lender must certify an alternative basis (the “Alternative Basis”) for
maintaining its Contribution. The Alternative Basis may at the relevant Lender’s sole
discretion include (without limitation) alternative interest periods, alternative currencies
or alternative rates of interest but shall include a Margin above the cost of funds to such
Lender. The Payment Agent shall calculate the arithmetic mean of the Alternative Bases
provided by the relevant Lenders (the “Substitute Basis”) and certify the same to the Borrower
and the Lenders. The Substitute Basis so certified shall be binding upon the Borrower, and
shall take effect in accordance with its terms from the date specified in the Determination
Notice until such time as the Payment Agent notifies the Borrower that none of the
circumstances specified in clause 3.6.1 continues to exist whereupon the normal interest rate
fixing provisions of this Agreement shall again apply and, subject to the other provisions of
this Agreement, the Commitment may again be borrowed.

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	4	 	REPAYMENT AND PREPAYMENT

	4.1	 	Repayment

	4.1.1	 	Subject to any obligation to pay earlier under this Agreement, the Borrower must repay the
Loan in by 28 equal quarterly instalments of USD625,000 each and by a final balloon payment of
USD17,500,000 (the “Balloon Instalment”), the first such instalment falling due on the date
falling 3 months after the Drawdown Date and subsequent instalments falling at 3-monthly
intervals thereafter up to and including the Maturity Date, on which the Borrower shall also
pay the Balloon Instalment.

	4.1.2	 	The Borrower shall on the Maturity Date also pay to the Payment Agent and the Lenders all
other amounts in respect of interest or otherwise then due and payable under this Agreement
and the Security Documents.

	4.2	 	Voluntary prepayment

	 	 	Subject to clauses 4.3, 4.4, 4.5 and 4.6 the Borrower may, subject to having given
5 Banking Days prior notice thereof to the Payment Agent, prepay any specified amount
(such part being in an amount of five hundred thousand Dollars (USD 500,000) or any larger
sum which is an integral multiple of such amount) of the Loan on any relevant Interest
Payment Date without premium or penalty.

	4.3	 	Mandatory Prepayment/Reduction on Total Loss

	4.3.1	 	On the date falling ninety (90) days after that on which a Mortgaged Vessel became a Total
Loss or, if earlier, on the date upon which the relevant insurance proceeds are, or
Requisition Compensation (as defined in the Mortgage for such Vessel) is, received by the
Owner thereof (or the Security Trustee or any other Bank pursuant to the Security Documents)
the Borrower must prepay the Loan by an amount equal to the amount of the Loan on the date on
which such prepayment is required to be made multiplied by the Prepayment Ratio.

	4.4	 	Interpretation

	 	 	For the purpose of this Agreement, a Total Loss shall be deemed to have occurred:

	4.4.1	 	in the case of an actual total loss of a Vessel, on the actual date and at the time such
Vessel was lost or, if such date is not known, on the date on which such Vessel was last
reported;

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	4.4.2	 	in the case of a constructive total loss of a Vessel, upon the date and at the time
notice of abandonment of the ship is given to the then insurers of such Vessel (provided a
claim for total loss is admitted by such insurers) or, if such insurers do not immediately
admit such a claim, at the date and at the time at which either a total loss is subsequently
admitted by such insurers or a total loss is subsequently adjudged by a competent court of law
or arbitration tribunal to have occurred;
	 
	4.4.3	 	in the case of a compromised or arranged total loss of a Vessel, on the date upon which a
binding agreement as to such compromised or arranged total loss has been entered into by the
then insurers of such Vessel;
	 
	4.4.4	 	in the case of Compulsory Acquisition, on the date upon which the relevant requisition of
title or other compulsory acquisition occurs; and
	 
	4.4.5	 	in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or
confiscation of a Vessel (other than within the definition of Compulsory Acquisition) by any
Government Entity, or by persons allegedly acting or purporting to act on behalf of any
Government Entity, which deprives an Owner of the use of such Vessel for more than thirty (30)
days, upon the expiry of the period of thirty (30) days after the date upon which the relevant
incident occurred.
	 
	4.5	 	Mandatory prepayment/Reduction on sale of Mortgaged Vessel
	 
	 	 	On the date of completion of the sale of a Mortgaged Vessel the Borrower must prepay the
Loan by an amount equal to the amount of the Loan on the date on which such prepayment is
required to be made multiplied by the Prepayment Ratio plus such additional amount as the
Lenders shall decide, in their sole discretion, after consultation in good faith with the
Borrower, having regard to any charter, the earnings capacity, the age on the Maturity
Date and value of the relevant prepayment date of the remaining Mortgaged Vessel.
	 
	4.6	 	Amounts payable on prepayment
	 
	 	 	Any prepayment of all or part of the Loan under this Agreement shall be made together with:       
	 
	4.6.1	 	accrued interest on the amount to be prepaid to the date of such prepayment;
	 
	4.6.2	 	any additional amount payable under clauses 3.6, 6.6 or 12.2; and

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	4.6.3	 	all other sums payable by the Borrower to the Banks under this Agreement or any of the other
Security Documents including, without limitation any Break Costs and, if the whole Loan is
being prepaid, any accrued commitment commission payable under clause 5.1.
	 
	4.7	 	Notice of prepayment; reduction of maximum loan amount

	4.7.1	 	Every notice of prepayment shall be effective only on actual receipt by the Payment Agent,
shall be irrevocable, shall specify the amount to be prepaid and shall oblige the Borrower to
make such prepayment on the date specified. Subject to the other provisions of this Agreement
and in particular Clause 2.6, no amount prepaid under this Clause 4 in respect of the Loan may
be reborrowed.
	 
	4.7.2	 	Upon prepayment in respect of the Loan pursuant to clauses 4.3 or 4.5 the repayment
instalments in Clause 4.1 shall be reduced pro rata.
	 
	4.7.3	 	The Borrower’s obligations set out in Clause 4.1.1 shall not be affected by any prepayment
in respect of the Loan pursuant to clause 4.2.
	 
	4.7.4	 	The Borrower may not prepay any part of the Loan except as expressly provided in this Agreement.
	 
	5	 	 FEES AND EXPENSES

	 
	5.1 	 	Commission
	 
	5.1.1	 	The Borrower agrees to pay to the Payment Agent for the account of the Lenders pro rata in
accordance with their Total Commitments quarterly in arrears from the Execution Date until the
end of the Drawdown Period and on the last day of the Drawdown Period commitment commission
computed from the Execution Date at a rate of zero point five per cent (0.5%) per annum on the
daily amount of the undrawn Loan Facility.
	 
	5.1.2	 	The commission referred to in clause 5.1.1 must be paid by the Borrower to the Payment
Agent, whether or not any part of the Total Commitment is ever advanced and shall be
non-refundable.
	 
	5.2	 	Fees
	 
	 	 	The Borrower shall pay to the Agent (i) a non-refundable agency fee of USD10,000 per annum
for the account of the Agent, such fee being payable in advance on the Execution Date and

30

 

	 	 	annually thereafter and (ii) all amounts required to be paid in accordance with a fee
letter bearing even date with this Agreement.
	 
	5.3	 	Expenses
	 
	 	 	The Borrower agrees to reimburse the Banks on a full indemnity basis within ten (10) days
of demand all expenses and/or disbursements whatsoever (including without limitation
legal, printing, travel and out of pocket expenses and expenses related to the provision
of legal and insurance opinions referred to in schedule 4) certified by the Banks or any
of them as having been incurred by them from time to time:
	 
	5.3.1	 	in connection howsoever with the syndication of the Loan Facility and with the negotiation,
preparation, execution and, where relevant, registration of the Security Documents and of any
contemplated or actual amendment, or indulgence or the granting of any waiver or consent
howsoever in connection with, any of the Security Documents (including legal fees and any
travel expenses); and
	 
	5.3.2	 	in contemplation or furtherance of, or otherwise howsoever in connection with, the exercise
or enforcement of, or preservation of any rights, powers, remedies or discretions under any of
the Security Documents, or in consideration of the Banks’ rights thereunder or any action
proposed or taken following the occurrence of a Default or otherwise in respect of the moneys
owing under any of the Security Documents,
	 
	 	 	together with interest at the rate referred to in clause 3.4 from the date on which
reimbursement of such expenses and/or disbursements were due following demand to the date
of payment (as well after as before judgment).
	 
	5.4	 	Value added tax
	 
	 	 	All fees and expenses payable pursuant to this Agreement must be paid together with
value added tax or any similar tax (if any) properly chargeable thereon in any jurisdiction.
Any value added tax chargeable in respect of any services supplied by the Banks or any of
them under this Agreement shall, on delivery of the value added tax invoice, be paid in
addition to any sum agreed to be paid hereunder.
	 
	5.5	 	Stamp and other duties

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	 	 	The Borrower must pay all stamp, documentary, registration or other like duties or
taxes (including any duties or taxes payable by any of the Banks) imposed on or in
connection with any of the Underlying Documents, the Security Documents or the Loan and
agree to indemnify the Banks or any of them against any liability arising by reason of any
delay or omission by the Borrower to pay such duties or taxes.
	 
	6	 	PAYMENTS AND TAXES; ACCOUNTS AND CALCULATIONS
	 
	6.1	 	No set-off or counterclaim
	 
	 	 	All payments to be made by the Borrower under any of the Security Documents must be
made in full, without any set off or counterclaim whatsoever and, subject as provided in
clause 6.6, free and clear of any deductions or withholdings, in USD on or before 11:00 am
on the due date in freely available funds to such account at such bank and in such place as
the Payment Agent may from time to time specify for this purpose. Save as otherwise
provided in this Agreement or any other relevant Security Documents, such payments shall be
for the account of all Lenders and the Payment Agent shall distribute such payments in like
funds as are received by the Payment Agent to the Lenders rateably, in the proportions which
their respective Contributions bear to the Loan on the date on which such payment is made.
	 
	6.2	 	Payment by the Lenders
	 
	 	 	All sums to be advanced by the Lenders to the Borrower under this Agreement shall be
remitted in USD on the Drawdown Date to the account of the Payment Agent at such bank as the
Payment Agent may have notified to the Lenders and shall be paid by the Payment Agent on
such date in like funds as are received by the Payment Agent to the account specified in the
Drawdown Notice.
	 
	6.3	 	Non-Banking Days
	 
	 	 	When any payment under any of the Security Documents would otherwise be due on a day
which is not a Banking Day, the due date for payment shall be extended to the next following
Banking Day unless such Banking Day falls in the next calendar month in which case payment
shall be made on the immediately preceding Banking Day.

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	6.4	 	Calculations
	 
	 	 	All interest and other payments of an annual nature under any of the Security
Documents shall accrue from day to day and be calculated on the basis of actual days elapsed
and a three hundred and sixty (360) day year.
	 
	6.5	 	Currency of account
	 
	 	 	If any sum due from the Borrower under any of the Security Documents, or under any
order or judgment given or made in relation thereto, must be converted from the currency
(“the first currency”) in which the same is payable thereunder 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 thereto, the Borrower undertakes
to indemnify and hold harmless the Lender from and against any loss suffered as a result of
any discrepancy between (a) the rate of exchange used for such purpose to convert the sum in
question from the first currency into the second currency and (b) the rate or rates of
exchange at which the Lender may in the ordinary course of business purchase the first
currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole
or in part, of any such order, judgment, claim or proof. Any amount due from the Borrower
under this clause 6.5 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 any of the Security Documents
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.
	 
	6.6	 	Grossing-up for Taxes — by the Borrower
	 
	 	 	If at any time the Borrower must make any deduction or withholding in respect of
Taxes or otherwise from any payment due under any of the Security Documents for the account
of any Bank or if the Payment Agent or the Security Trustee must make any deduction or
withholding from a payment to another Bank or withholding in respect of Taxes from any
payment due under any of the Security Documents, the sum due from the Borrower in respect of
such payment must be increased to the extent necessary to ensure that, after the making of
such deduction or withholding, the relevant Bank receives on the due date for

33

 

	 	 	such payment (and retains, free from any liability in respect of such deduction or
withholding), a net sum equal to the sum which it would have received had no such deduction
or withholding been required to be made and the Borrower must indemnify each Bank against
any losses or costs incurred by it by reason of any failure of the Borrower to make any such
deduction or withholding or by reason of any increased payment not being made on the due
date for such payment. The Borrower must promptly deliver to the Payment Agent any
receipts, certificates or other proof evidencing the amounts (if any) paid or payable in
respect of any deduction or withholding as aforesaid.
	 
	6.7	 	Grossing-up for Taxes — by the Lenders
	 
	 	 	If at any time a Lender must make any deduction or withholding in respect of Taxes
from any payment due under any of the Security Documents for the account of the Payment
Agent or the Security Trustee, the sum due from such Lender in respect of such payment must
be increased to the extent necessary to ensure that, after the making of such deduction or
withholding, the Payment Agent or, as the case may be, the Security Trustee receives on the
due date for such payment (and retains free from any liability in respect of such deduction
or withholding) a net sum equal to the sum which it would have received had no such
deduction or withholding been required to be made and each Lender must indemnify the Payment
Agent and the Security Trustee against any losses or costs incurred by it by reason of any
failure of such Lender to make any such deduction or withholding or by reason of any
increased payment not being made on the due date for such payment.
	 
	6.8	 	Loan account
	 
	 	 	Each Lender shall maintain, in accordance with its usual practice, an account evidencing
the amounts from time to time lent by, owing to and paid to it under the Security
Documents. The Payment Agent and/or the Security Trustee shall maintain a control account
showing the Loan and other sums owing by the Borrower under the Security Documents and all
payments in respect thereof being made from time to time. The control account shall, in
the absence of manifest error, be prima facie evidence of the amount from time to time
owing by the Borrower under the Security Documents.
	 
	6.9	 	Payment Agent may assume receipt

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	 	 	Where any sum is to be paid under the Security Documents to the Payment Agent or, as the
case may be, the Security Trustee for the account of another person, the Payment Agent or,
as the case may be, the Security Trustee may assume that the payment will be made when due
and the Payment Agent or, as the case may be, the Security Trustee may (but shall not be
obliged to) make such sum available to the person so entitled. If it proves to be the
case that such payment was not made to the Payment Agent or, as the case may be, the
Security Trustee, then the person to whom such sum was so made available must on request
refund such sum to the Payment Agent or, as the case may be, the Security Trustee together
with interest thereon sufficient to compensate the Payment Agent or, as the case may be,
the Security Trustee for the cost of making available such sum up to the date of such
repayment and the person by whom such sum was payable must indemnify the Payment Agent or,
as the case may be, the Security Trustee for any and all loss or expense which the Payment
Agent or, as the case may be, the Security Trustee may sustain or incur as a consequence
of such sum not having been paid on its due date.
	 
	6.10	 	Partial payments
	 
	 	 	If, on any date on which a payment is due to be made by the Borrower under any of the
Security Documents, the amount received by the Payment Agent from the Borrower falls short
of the total amount of the payment due to be made by the Borrower on such date then,
without prejudice to any rights or remedies available to the Agent, the Payment Agent, the
Security Trustee and the Lenders under any of the Security Documents, the Payment Agent
must apply the amount actually received from the Borrower in or towards discharge of the
obligations of the Borrower under the Security Documents in the following order,
notwithstanding any appropriation made, or purported to be made, by the Borrower:
	 
	6.10.1	 	first, in or towards payment, on a pro-rata basis, of any unpaid costs and expenses of the
Payment Agent, the Agent and the Security Trustee under any of the Security Documents;
	 
	6.10.2	 	secondly, in or towards payment of any fees payable to the Arrangers, the Payment Agent, the
Agent or any of the other Banks under, or in relation to, the Security Documents which remain
unpaid;
	 
	6.10.3	 	thirdly, in or towards payment to the Lenders, on a pro rata basis, of any accrued interest
owing in respect of the Loan which shall have become due under any of the Security Documents
but remains unpaid;

35

 

	6.10.4	 	fourthly, in or towards payment to the Lenders, on a pro rata basis, of any principal in
respect of the Loan which shall have become due but remain unpaid;
	 
	6.10.5	 	fifthly, in or towards payment to the Lenders, on a pro rata basis, any Break Costs and any
other sum relating to the Loan which shall have become due under any of the Security Documents
but remains unpaid; and
	 
	 	 	The order of application set out in clauses 6.10.1 to 6.10.5 may be varied by the
Payment Agent if the Majority Lenders so direct, without any reference to, or consent or
approval from, the Borrower.
	 
	7	 	REPRESENTATIONS AND WARRANTIES
	 
	7.1	 	Continuing representations and warranties
	 
	 	 	The Borrower represents and warrants to each Bank that:
	 
	7.1.1	 	Due incorporation each of the Security Parties are duly incorporated or formed, as the case may be, and
validly existing in good standing, under the laws of its respective country of
incorporation or formation, in each case, as a limited partnership, limited liability
company or corporation as the case may be, and has power to carry on its respective
businesses as it is now being conducted and to own their respective property and other
assets to which it has unencumbered legal and beneficial title except as disclosed to the
Agent in writing;
	 
	7.1.2	 	Limited Partnership, limited liability company or corporate power
	 
	 	 	each of the Security Parties has power to execute, deliver and perform its obligations
and, as the case may be, to exercise its rights under the Underlying Documents and the
Security Documents to which it is a party; all necessary limited partnership, limited
liability company, corporate, partner, member, shareholder and other action has been taken
to authorise the execution, delivery and on the execution of the Security Documents
performance of the same and no limitation on the powers of the Borrower to borrow or any
other Security Party to howsoever incur liability and/or to provide or grant security
will be exceeded as a result of borrowing any part of the Loan;
	 
	7.1.3	 	Binding obligations

36

 

	 	 	the Underlying Documents and the Security Documents, when executed, will constitute valid
and legally binding obligations of the relevant Security Parties enforceable in accordance
with their respective terms;
	 
	7.1.4	 	No conflict with other obligations
	 
	 	 	the execution and delivery of, the performance of their obligations under, and compliance
with the provisions of, the Underlying Documents and the Security Documents by the
relevant Security Parties will not (i) contravene any existing applicable law, statute,
rule or regulation or any judgment, decree or permit to which any Security Party or other
member of the Group 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
Security Party or any other member of the Group 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 Security Party or (iv) result in the creation or
imposition of, or oblige any of the Security Parties to create, any Encumbrance (other
than a Permitted Encumbrance) on any of the undertakings, assets, rights or revenues of
any of the Security Parties;
	 
	7.1.5	 	No default
	 
	 	 	no Default has occurred;
	 
	7.1.6	 	No litigation or judgments
	 
	 	 	no Proceedings are current, pending or, to the knowledge of the officers of the Borrower,
threatened against any of the Security Parties or any other Group Members or their assets
which could have a Material Adverse Effect and there exist no judgments, orders,
injunctions which would materially affect the obligations of the Security Parties under
the Security Documents;
	 
	7.1.7	 	No filings required
	 
	 	 	except for the registration of the Mortgages in the relevant register under the laws of
the relevant Flag State through the relevant Registry, it is not necessary to ensure the
legality, validity, enforceability or admissibility in evidence of any of the Underlying
Documents or any of the Security Documents that they or any other instrument be notarised,
filed, recorded, registered or enrolled in any court, public office or elsewhere in any
Pertinent Jurisdiction or that any stamp, registration or similar tax or charge be paid in
any Pertinent Jurisdiction on or

37

 

	 	 	in relation to any of the Underlying Documents or the Security Documents and each of the
Underlying Documents and the Security Documents is in proper form for its enforcement in
the courts of each Pertinent Jurisdiction;
	 
	7.1.8	 	Required Authorisations and legal compliance
	 
	 	 	all Required Authorisations have been obtained or effected and are in full force and
effect and no Security Party has in any way contravened any applicable law, statute, rule
or regulation (including all such as relate to money laundering);
	 
	7.1.9	 	Choice of law
	 
	 	 	the choice of English law to govern the Underlying Documents and the Security Documents
(other than the Mortgages, the Earnings Account Pledge and the Retention Account Pledge),
the choice of the law of the Flag State to govern the Mortgages, the choice of German law
to govern the Earnings Account Pledge and the Retention Account Pledge 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;
	 
	7.1.10	 	No immunity
	 
	 	 	no Security Party nor any of their assets is entitled to immunity on the grounds of
sovereignty or otherwise from any Proceedings whatsoever;
	 
	7.1.11	 	Financial statements correct and complete
	 
	 	 	the latest audited and unaudited consolidated financial statements of the Borrower in
respect of the relevant financial year as delivered to the Agent present or will present
fairly and accurately the financial position of the Borrower and the consolidated
financial position of the Group as at the date thereof and the results of the operations
of the Borrower 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 Borrower 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;
	 
	7.1.12	 	Pari passu

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	 	 	the obligations of the Borrower under this Agreement are direct, general and unconditional
obligations of the Borrower and rank at least pari passu with all other present and future
unsecured and unsubordinated Indebtedness of the Borrower except for obligations which are
mandatorily preferred by operation of law and not by contract;
	 
	7.1.13	 	Information
	 
	 	 	all information, whatsoever provided by any Security Party to the Banks in connection with
the negotiation and preparation of the Security Documents or otherwise provided hereafter
in relation to, or pursuant to this Agreement is, or will be, true and accurate in all
material respects and not misleading, does or will not omit material facts and all
reasonable enquiries have been, or shall have been, made to verify the facts and
statements contained therein; there are, or will be, no other facts the omission of which
would make any fact or statement therein misleading;
	 
	7.1.14	 	No withholding Taxes
	 
	 	 	no Taxes anywhere are imposed whatsoever by withholding or otherwise on any payment to be
made by any Security Party under the Underlying Documents or the Security Documents to
which such Security Party is or is to be a party or are imposed on or by virtue of the
execution or delivery by the Security Parties of the Underlying Documents or the Security
Documents or any other document or instrument to be executed or delivered under any of the
Security Documents;
	 
	7.1.15	 	Use of proceeds
	 
	 	 	the Borrower shall apply the Loan only for the purposes specified in clause 2.1;
	 
	7.1.16	 	The Mortgaged Vessels
	 
	 	 	throughout the Facility Period (or, as the case may be, from their acquisition by the
relevant Owner) each Mortgaged Vessel will be :

	 	(a)	 	In the absolute sole, legal and beneficial ownership of the relevant Owner;
	 
	 	(b)	 	registered through the offices of the relevant Registry as a ship under the
laws and flag of the relevant Flag State;

39

 

	 	(c)	 	in compliance with the ISM Code and the ISPS Code and operationally
seaworthy and in every way fit for service;
	 
	 	(d)	 	in good and sea-worthy and cargo-worthy condition; and
	 
	 	(e)	 	classed with the relevant Classification free of all requirements and
recommendations of the relevant Classification Society (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).

	7.1.17	 	Earnings
	 
	 	 	except with the prior written consent of the Agent (acting on the instructions of
the Majority Lenders), there will not be any agreement or arrangement whereby the
Earnings (as defined in the relevant Ship Security Documents) of a Mortgaged Vessel may be
shared or pooled howsoever with any other person;
	 
	7.1.18	 	Freedom from Encumbrances
	 
	 	 	no Mortgaged Vessel nor its Earnings, Insurances or Requisition Compensation (each as
defined in the relevant Ship Security Documents) nor the Earnings Account or the Retention
Account nor any Extended Employment Contract in respect of such Mortgaged Vessel or
Existing Charter nor any other properties or rights which are, or are to be, the subject
of any of the Security Documents nor any part thereof will be subject to any Encumbrance
except Permitted Encumbrances;
	 
	7.1.19	 	Environmental Matters
	 
	 	 	except as may already have been disclosed by the Borrower in writing to, and acknowledged
and accepted in writing by, the Agent:

	 	(a)	 	the Owners and the Charterers and, to the best of the Borrower’s knowledge
and belief (having made due enquiry), their respective Environmental Affiliates have
complied with the provisions of all Environmental Laws;
	 
	 	(b)	 	the Owners and the Charterers and, to the best of the Borrower’s knowledge
and belief (having made due enquiry), their respective Environmental Affiliates have

40

 

	 		 	obtained all Environmental Approvals and are in compliance with all such
Environmental Approvals;
	 
	 	(c)	 	no Environmental Claim has been made or threatened or pending against
either Owner or Charterer or, to the best of the Borrower’s knowledge and belief
(having made due enquiry), any of their respective Environmental Affiliates; and
	 
	 	(d)	 	there has been no Environmental Incident.

	7.1.20	 	ISM and ISPS Code
	 
	 	 	each of the Owners has complied with and continues to comply with and has procured that
the Manager has complied with and continues to comply with the ISM Code, the ISPS Code and
all other statutory and other requirements relative to its business and in particular each
Owner or the Manager has obtained and maintains a valid DOC and SMC for each Vessel and
that it and the Manager has implemented and continues to implement an ISM SMS;
	 
	7.1.21	 	Copies true and complete
	 
	 	 	the Certified Copies or originals of the Underlying Documents delivered or to be delivered
to the Agent pursuant to clause 9.1 are, or will when delivered be, true and complete
copies or, as the case may be, originals of such documents; and such documents constitute
valid and binding obligations of the parties thereto enforceable in accordance with their
respective terms and there have been no amendments or variations thereof or defaults
thereunder:
	 
	7.1.22	 	the Borrower and other members of the Group are the ultimate beneficiaries of the Loan;
	 
	7.1.23	 	no Security Party has incurred any Indebtedness save under this Agreement and the Existing
Loan Agreement;
	 
	7.1.24	 	all Guarantors and the Borrower have filed all tax and other fiscal returns required to be
filed by any tax authority to which they are subject;
	 
	7.1.25	 	the Borrower does not have an office in England.
	 
	7.2	 	Repetition of representations and warranties

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	 	 	On each day throughout the Facility Period, the Borrower shall be deemed to repeat
the representations and warranties in clause 7 updated mutatis mutandis as if made with
reference to the facts and circumstances existing on such day.
	 
	8	 	UNDERTAKINGS
	 
	8.1	 	General
	 
	 	 	The Borrower undertakes with each Bank that, from the Execution Date until the end
of the Facility Period, it will:
	 
	8.1.1	 	Notice of Default and Proceedings
	 
	 	 	promptly inform the Agent of (a) any circumstances or occurrence which might adversely
affect the ability of any Security Party to perform its obligations under any of the
Security Documents and (b) as soon as the same is instituted or threatened, details of any
Proceedings involving any Security Party which could have a material adverse effect on
that Security Party and/or the operation of any of the Mortgaged Vessels (including, but
not limited to any Total Loss of a Vessel or the occurrence of any Environmental
Incident) and will from time to time, if so requested by the Agent, confirm to the Agent
in writing that, save as otherwise stated in such confirmation, no Default has occurred
and is continuing and no such Proceedings are on foot or threatened;
	 
	8.1.2	 	Authorisation
	 
		 	obtain or cause to be obtained, maintain in full force and effect and comply fully
with all Required Authorisations, provide the Agent with Certified Copies of the same and
do, or cause to be done, all other acts and things which may from time to time be
necessary or desirable under any applicable law (whether or not in the Pertinent
Jurisdiction) for the continued due performance of all the obligations of the Security
Parties under each of the Security Documents;
	 
	8.1.3	 	Limited partnership, limited liability company and corporate existence
	 
	 	 	ensure that each Security Party maintains its existence as a limited
partnership, limited liability company or body corporate, as the case may be, duly
organised and validly existing and in good standing under the laws of the Pertinent
Jurisdiction;

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	8.1.4	 	Use of proceeds
	 
	 	 	use the Loan exclusively for the purposes specified in clauses 1.1 and 2.1;
	 
	8.1.5	 	Pari passu
	 
	 	 	ensure that their obligations under this Agreement shall at all times rank at least
pari passu with all their other present and future unsecured and unsubordinated
Indebtedness with the exception of any obligations which are mandatorily preferred by law
and not by contract;
	 
	8.1.6	 	Provision of financial statements.
	 
	 	 	send to the Agent (or procure that is sent):

	 	(a)	 	as soon as possible, but in no event later than 180 days after the end of
each of its Financial Years, annual audited (prepared in accordance with US GAAP by a
firm of accountants acceptable to the Agent) consolidated accounts of the Borrower
and all companies which are owned, directly or indirectly, or controlled by it
(commencing with the Financial Year ending 31 December 2011); and
	 
	 	(b)	 	as soon as possible, but in no event later than 60 days after the end of
each 3 month period in each of its Financial Years, the Borrower’s unaudited
management-prepared accounts for that 3 month period certified as to their
correctness by its chief financial officer;
	 
	 	(c)	 	on the Agent’s request, reports on the employment and earnings of each
Vessel in a form acceptable to the Agent (acting on the instructions of the Majority
Lenders).

	8.1.7	 	Reimbursement of MII & MAP Policy premiums
	 
	 	 	Whether or not any amount is borrowed under this Agreement, reimburse the Security Trustee
on the Security Trustee’s written demand the amount of the premium payable by the Security
Trustee for the inception or, as the case may be, extension and/or continuance of the MII
& MAP Policy (including any insurance tax thereon);
	 
	8.1.8	 	Compliance Certificates

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	 	 	deliver to the Agent on the earlier of (i) the date on which the quarterly reports
are delivered under clause 8.1.6 and (ii) 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 Agent (acting on the instructions of the Majority Lenders)
may require.
	 
	8.1.9	 	Provision of further information
	 
	 	 	provide the Agent, and procure that the Guarantors and the General Partner provide the
Agent, with such financial or other information concerning the Borrower and its affairs,
activities, financial standing, Indebtedness and operations and the performance of the
Mortgaged Vessels as the Agent or any Lender (acting through the Agent) may from time to
time reasonably require and all other documentation and information as any Lender may from
time to time require in order to comply with its, and all other relevant,
know-your-customer regulations;
	 
	8.1.10	 	Obligations under Security Documents
	 
	 	 	duly and punctually perform each of the obligations expressed to be imposed or assumed by
them under the Security Documents and Underlying Documents and will procure that each of
the other Security Parties will, duly and punctually perform each of the obligations
expressed to be assumed by it under the Security Documents and the Underlying Documents to
which it is a party;
	 
	8.1.11	 	Compliance with ISM Code, etc
	 
	 	 	and will procure that any Operator will, comply with and ensure that the Vessels and any
Operator complies with the requirements of the ISM Code, including (but not limited to)
the maintenance and renewal of valid certificates pursuant thereto throughout the Security
Period (as defined in the Mortgages);
	 
	8.1.12	 	Withdrawal of DOC and SMC
	 
	 	 	Immediately inform the Agent if there is any actual withdrawal of their or any Operator’s
DOC or the SMC of either Vessel;
	 
	8.1.13	 	Issuance of DOC and SMC

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	 	 	and will procure that any Operator will promptly inform the Agent of the receipt by either
Owner or any Operator of notification that its application for a DOC or any application
for an SMC for either Vessel has been refused;
	 
	8.1.14	 	ISPS Code Compliance
	 
	 	 	and will procure that the Manager or any Operator will:

	 	(a)	 	maintain at all times a valid and current ISSC in respect of each Vessel;
	 
	 	(b)	 	immediately notify the Agent in writing of any actual or threatened
withdrawal, suspension, cancellation or modification of the ISSC in respect of a
Vessel; and
	 
	 	(c)	 	procure that each Vessel will comply at all times with the ISPS Code;

	8.1.15	 	Compliance with Laws and payment of taxes
	 
	 	 	and will comply with all relevant Environmental Laws, laws, statutes and regulations and
pay all taxes for which it is liable as they fall due and obtains and retains all
necessary certificates to enable the Vessels to operate in the trade in which they are
respectively engaged;
	 
	8.1.16	 	Charters etc.
	 
	 	 	deliver to the Agent, a Certified Copy of each Extended Employment Contract upon its
execution, (ii) forthwith on the request of the Agent (acting on the instructions
of the Majority Lenders) execute (a) a Charter Assignment in respect thereof and (b)
any notice of assignment required in connection therewith and use reasonable efforts to
procure the acknowledgement of any such notice of assignment by the relevant charterer
(provided that any failure to procure the same shall not constitute an Event of Default)
and (iii) pay all legal and other costs incurred by any Bank in connection with any such
Charter Assignments, forthwith following the Agent’s demand.
	 
	8.1.17	 	Shares Pledges
	 
	 	 	forthwith upon the written request of the Agent (acting on the instructions of the
Majority Lenders), deliver to the Agent or the relevant Lender such Shares Pledges as
the Agent or the relevant Lender shall specify, each duly executed by the Shareholder
together with documentation equivalent to that referred to in Part 1 of Schedule 4 at
items (a)-(d) (inclusive) in respect of the Shareholder and together with all other
documentation required to be

45

 

	 	 	delivered pursuant to the terms thereof and the Borrower shall pay all legal and other
costs incurred by any Bank in relation thereto.
	 
	8.1.18	 	Financial Covenants of the Group
	 
	 	 	procure that

	 	(a)	 	at no time shall the Liquidity of the Group be less than the Minimum
Liquidity;
	 
	 	(b)	 	the ratio of EBITDA to Interest Expense shall at all times be at least 2 to 1;
	 
	 	(c)	 	the Total Liabilities divided by the Total Assets (adjusted for market
values of vessels calculated in accordance with Clause 8.2.2) shall be less than 75%;
and
	 
	 	(d)	 	the Net Worth shall at all times be equal to or more than USD150,000,000.

	8.1.19	 	Inspection
	 
	 	 	the Agent, at the cost of the Borrower and upon receipt of at least 15 days written
notice, by surveyors or other persons appointed by it for such purpose, to board a
Mortgaged Vessel at all other reasonable times for the purpose of inspecting her and to
afford all proper facilities for such inspections and for this purpose to give the Agent
reasonable advance notice of any intended drydocking of each Vessel (whether for the
purpose of classification, survey or otherwise) and to pay the costs in respect of one
inspection in each calendar year; and
	 
	8.1.20	 	Capital Reserve
	 
	 	 	maintain at all times a minimum Estimated Maintenance and Replacement Capital Expenditure
Reserve (as defined in the Registration Statement in form F1 dated 12 November 2011 filed
in respect of the Borrower under the US Securities act 1933) as the directors of the
Borrower may from time to time approve or require.
	 
	8.1.21	 	Subordination
	 
	 	 	ensure that all Indebtedness of the Borrower to its shareholders or any of them is fully
subordinated, and to subordinate any Indebtedness owed to it by any Guarantor, all in a
form acceptable to the Agent (acting on the instructions of the Majority
Lenders).
	 
	8.1.22	 	Operating Expenses

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	 	 	ensure, for the period ending on 16 November 2011, that the gross operating expenses
(including management fees and amortised drydocking and special survey expenses) shall not
exceed (i) in respect of “NAVIOS LUZ”, USD5,500 per day and (ii) in respect of “NAVIOS
ORBITER”, USD4,400 per day.
	 
	8.1.23	 	Charter Insurance
	 
	 	 	On or before the Drawdown Date, the Borrower shall use its best efforts to arrange Charter
Insurance for the Mortgaged Vessels on terms and through insurers acceptable to the Agent,
and to provide Charter Insurance Assignments in respect thereof, duly executed by Navios
Holdings.
	 
	8.2	 	Security value maintenance
	 
	8.2.1	 	Security shortfall
	 
	 	 	If, at any time after the Drawdown Date, the Security Value shall be less than the
Required Security Amount, the Agent (acting on the instructions of the Majority Lenders)
shall give notice to the Borrower requiring that such deficiency be remedied and then the
Borrower must either:

	 	(a)	 	prepay within a period of thirty (30) days of the date of receipt by the
Borrower of the Agent’s said notice such part of the Loan as will result in the
Security Value after such prepayment (taking into account any other repayment of the
Loan made between the date of the notice and the date of such prepayment) being equal
to or higher than the Required Security Amount; or
	 
	 	(b)	 	within thirty (30) days of the date of receipt by the Borrower of the
Agent’s said notice constitute to the satisfaction of the Agent such
further security for the Loan as shall be acceptable to the Majority Lenders having a
value for security purposes (as determined by the Agent in its absolute discretion)
at the date upon which such further security shall be constituted which, when added
to the Security Value, shall not be less than the Required Security Amount as at such
date.

	 	 	The provisions of clauses 4.6 and 4.7 shall apply to prepayments under clause 8.2.1(a)
provided that the amounts in the applicable one of the Loan Amount Outstanding columns
shall be reduced by the Repayment Proportion of such amount (where “Prepayment Proportion”
means the amount of the prepayment being made under this clause 8.2.1 divided

47

 

	 	 	by the amount of the Loan immediately prior to such prepayment) and the amounts of the
Loan prepaid hereunder shall not be available to be re-borrowed.
	 
	8.2.2	 	Valuation of Mortgaged Vessels
	 
	 	 	Each Mortgaged Vessel shall, for the purposes of this Agreement, be valued (at the
Borrower’s expense) in USD by taking one valuation prepared by any Approved Broker or (at
the request of the Agent) the average of valuations prepared by any two Approved Brokers
(one of which to be Maritime Strategies International Ltd.), or such other Approved Broker
as the Agent may decide (acting on the instructions of the Majority Lenders), such
valuations to be made without physical inspection, and on the basis of a sale for prompt
delivery for cash at arms’ length, on normal commercial terms, as between a willing buyer
and a willing seller, without taking into account the benefit or burden of any
charterparty or other engagement concerning the relevant Mortgaged Vessel provided that if
such two valuations are taken and they vary by more than 15% then the Agent shall appoint
a third Approved Broker to provide a valuation and the Valuation amount shall be the
average of such three valuations, such valuations to be obtained:

	 	(a)	 	On the date falling three months after the Drawdown Date and quarterly
thereafter and
	 
	 	(b)	 	(in addition to (a) above) at any other time as the Agent (acting on the
instructions of the Majority Lenders) shall additionally require, at the cost of the
Lenders

	 	 	The Approved Broker’s valuations for each Mortgaged Vessel on each such occasion
shall constitute the Valuation Amount of such Mortgaged Vessel for the purposes of this
Agreement until superceded by the next such valuation.
	 
	8.2.3	 	Information
	 
	 	 	The Borrower undertakes with the Banks to supply to the Agent and to the Approved Broker
such information concerning the relevant Mortgaged Vessel and its condition as such
shipbrokers may require for the purpose of determining any Valuation Amount.
	 
	8.2.4	 	Costs
	 
	 	 	All costs in connection with the obtaining and any determining of any Valuation Amount
pursuant to Clause 8.2.2 and any valuation either of any additional security for the
purposes

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	 	 	of ascertaining the Security Value at any time or necessitated by the Borrower electing to
constitute additional security pursuant to clause 8.2.1(b), must be paid by the Borrower.
	 
	8.2.5	 	Valuation of additional security
	 
	 	 	For the purposes of this clause 8.2, the market value (i) of any additional security over
a ship (other than the Vessels) shall be determined in accordance with clause 8.2.2 and
(ii) of any other additional security provided or to be provided to the Banks or any of
them shall be determined by the Agent in its absolute discretion.
	 
	8.2.6	 	Documents and evidence
	 
	 	 	In connection with any additional security provided in accordance with this clause 8.2,
the Agent shall be entitled to receive (at the Borrower’s expense) such evidence and
documents of the kind referred to in schedule 4 as may in the Agent’s opinion be
appropriate and such favourable legal opinions as the Agent shall in its absolute
discretion require.
	 
	8.3	 	Negative undertakings
	 
	 	 	The Borrower undertakes with each Bank that, from the Execution Date until the end of the
Facility Period, it will not, without the prior written consent of the Agent (acting on
the instructions of the Majority Banks):
	 
	8.3.1	 	Negative pledge
	 
	 	 	permit any Encumbrance (other than a Permitted Encumbrance) to subsist, arise or be
created or extended over all or any part of its present or future undertakings, assets,
rights or revenues which secure the Loan to secure or prefer any present or future
Indebtedness or other liability or obligation of any person;
	 
	8.3.2	 	No merger or transfer
	 
	 	 	merge or consolidate with any other person or permit any change to the legal or beneficial
ownership of (a) any Security Party’s shares from that existing at the Execution Date and
(b) any of the shares of the Borrower which would give rise to an Event of Default under
Clause 10.1.29;
	 
	8.3.3	 	Disposals

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	 	 	sell, transfer, assign, create security or option over, pledge, pool, abandon, lend or
otherwise dispose of or cease to exercise direct control over any part of their present or
future undertaking, assets, rights or revenues (otherwise than by transfers, sales or
disposals for full consideration in the ordinary course of trading) whether by one or a
series of transactions related or not which could have a material (in the reasonable
opinion of the Lenders) adverse affect on the ability of the Borrower to perform its
obligations under this Agreement;
	 
	8.3.4	 	Other business or manager
	 
	 	 	undertake any business other than the ownership, chartering-in, chartering-out and
operation of ships or permit the owners of the Mortgaged Vessels to employ anyone other
than the Manager as commercial and technical manager of either Vessel;
	 
	8.3.5	 	Acquisitions
	 
	 	 	permit any Guarantor (other than the Shareholder) to acquire any further assets;
	 
	8.3.6	 	Other obligations
	 
	 	 	incur any obligations with Navios GP, any Guarantor, any Charterer or other company in the
Group or associated company of any of them except for obligations arising under the
Security Documents, under the Omnibus Agreement, the Management Agreement or contracts
reasonably entered into in the ordinary course of business with such person;
	 
	8.3.7	 	No borrowing
	 
	 	 	incur any Indebtedness except for Indebtedness pursuant to the Security
Documents or otherwise with the consent of the Lenders (which consent shall not be
unreasonably withheld);
	 
	8.3.8	 	Repayment of borrowings
	 
	 	 	repay or prepay the principal of, or pay interest on or any other sum in connection with
any Indebtedness except for Indebtedness permitted pursuant to Clause 8.3.7 or pursuant to
the Security Documents;
	 
	8.3.9	 	Guarantees

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	 	 	issue any guarantees or otherwise become directly or contingently liable for the
obligations of any person, firm, or corporation except (i) pursuant to the Security
Documents, (ii) in relation to the normal business of the Borrower for a contingent
aggregate liability of up to USD1,000,000 per calendar year or (iii) otherwise with the
consent of the Lenders (which consent shall not be unreasonably withheld);
	 
	8.3.10	 	Loans
	 
	 	 	make any loans or grant any credit to any person or agree to do so;
	 
	8.3.11	 	Share capital and distribution
	 
	 	 	purchase or otherwise acquire for value any partnership interest, membership interest or
shares of their capital, as the case may be, or declare or pay any dividends or
distribute any of their present or future assets, undertakings, rights or revenues to any
of their partners, members or shareholders, as the case may be, except the Borrower may
re-purchase any of its partnership interest or make any distributions to its partners
(which distributions may not in any case exceed USD0.44 per share per quarter) only (i) if
there has not occurred any Event of Default and (ii) no Event of Default would occur as a
result of such payment;
	 
	8.3.12	 	Subsidiaries
	 
	 	 	Permit any Guarantor (other than Shareholder) to form or acquire any Subsidiaries;
	 
	8.3.13	 	Extended Employment Contracts

	 	(a)	 	agree to shorten the tenor of any Extended Employment Contract; or
	 
	 	(b)	 	agree to reduce the charter hire payable under any Extended Employment
Contract;
	 
	 	(c)	 	without the prior written consent of the Agent (acting on the instructions
of the Majority Banks) and then, if such consent is given, only subject to such
conditions as the Agent (acting on the instructions of the Majority Banks) may
impose, let or agree to let any Ship:

	 	(i)	 	on demise charter for any period; or

51

 

	 	(ii)	 	by any time or consecutive voyage charter for a term
which exceeds or which by virtue of any optional extensions therein
contained may exceed three (3) months’ duration; or
	 
	 	(iii)	 	on terms whereby more than two (2) months’ hire (or the
equivalent) is payable in advance; or
	 
	 	(iv)	 	below a fair and reasonable arms-length rate obtainable
at the time when the Relevant Ship is fixed.

	8.3.14	 	Authorised Person
	 
	 	 	Appoint or dismiss any Authorised Person other than with the consent of all of the
Authorised Persons or a director of the Borrower.
	 
	9	 	CONDITIONS
	 
	9.1	 	Advance of the Loan
	 
	 	 	The obligation of each Lender to make its Commitment available in respect of the Loan is
conditional upon:
	 
	9.1.1	 	the Agent, or its authorised representative, having received, not later than two (2) Banking
Days before the day on which the Drawdown Notice is given, the documents and evidence
specified in Part 1 of schedule 4 in form and substance satisfactory to the Agent (acting on
the instructions of the Majority Lenders) and its legal counsel;
	 
	9.1.2	 	the Agent, or its authorised representative, having received, on or prior to the Drawdown
Date, the documents and evidence specified in Part 2 of schedule 4 in form and substance
satisfactory to the Agent (acting on the instructions of the Majority Lenders); and
	 
	9.1.3	 	the representations and warranties contained in clause 7 being then true and correct as if
each was made with respect to the facts and circumstances existing at such time and the same
being unaffected by drawdown of the Loan;
	 
	9.1.4	 	no Default having occurred and being continuing and there being no Default which would
result from the lending of the Loan; and
	 
	9.1.5	 	there has not occurred any Material Adverse Change.

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	9.2	 	Waiver of conditions precedent
	 
	 	 	The conditions specified in this clause 9 are inserted solely for the benefit of the
Lenders and may be waived by the Agent in whole or in part and with or without conditions
only with the consent of the Majority Lenders.
	 
	9.3	 	Further conditions precedent
	 
	 	 	Not later than five (5) Banking Days prior to the Drawdown Date and not later than five
(5) Banking Days prior to any Interest Payment Date, the Agent (acting on the instructions
of the Majority Lenders) may request and the Borrower must, not later than two (2) Banking
Days prior to such date, deliver to the Agent (at the Borrower’s expense) on such request
further favourable certificates and/or opinions as to any or all of the matters which are
the subject of clauses 7, 8, 9 and 10.
	 
	10	 	EVENTS OF DEFAULT
	 
	10.1	 	Events
	 
	 	 	Each of the following events shall constitute an Event of Default (whether such event
shall occur voluntarily or involuntarily or by operation of law or regulation or in
connection with any judgment, decree or order of any court or other authority or
otherwise, howsoever):
	 
	10.1.1	 	Non-payment: any Security Party fails to pay any sum payable by it under any of the Security
Documents at the time, in the currency and in the manner stipulated in the Security Documents
or the Underlying Documents (and so that, for this purpose, sums payable (i) under clauses 3.1
and 4.1 shall be treated as having been paid at the stipulated time if (aa) received by the
Agent within two (2) days of the dates therein referred to and (bb) such delay in receipt is
caused by administrative or other delays or errors within the banking system and (ii) on
demand shall be treated as having been paid at the stipulated time if paid within two (2)
Banking Days of demand); or
	 
	10.1.2	 	Breach of Insurance and certain other obligations: either Owner or, as the context may
require, the Manager or any other person fails to obtain and/or maintain the Insurances (as
defined in, and in accordance with the requirements of, the Ship Security Documents) for any
of the Mortgaged Vessels or if any insurer in respect of such Insurances cancels the
Insurances or disclaims liability by reason, in either case, of mis-statement in any proposal
for the Insurances or for any other failure or default on the part of the Borrower or any
other person

53

 

	 	 	or the Borrower commits any breach of or omits to observe any of the obligations or
undertakings expressed to be assumed by them under clause 8; or
	 
	10.1.3	 	Breach of other obligations: any Security Party commits any breach of or omits to observe
any of its obligations or undertakings expressed to be assumed by it under any of the Security
Documents (other than those referred to in clauses 10.1.1 and 10.1.2 above) unless such breach
or omission, in the opinion of the Agent (following consultation with the Lenders) is capable
of remedy, in which case the same shall constitute an Event of Default if it has not been
remedied within fifteen (15) days of the occurrence thereof; or
	 
	10.1.4	 	Misrepresentation: any representation or warranty made or deemed to be made or repeated by
or in respect of any Security Party in or pursuant to any of the Security Documents or in any
notice, certificate or statement referred to in or delivered under any of the Security
Documents is or proves to have been incorrect or misleading in any material respect; or
	 
	10.1.5	 	Cross-default: There shall occur a default (howsoever therein described) if any Indebtedness
of any Security Party is not paid when due (subject to applicable grace periods) or any
Indebtedness of any Security Party becomes (whether by declaration or automatically in
accordance with the relevant agreement or instrument constituting the same) due and payable
prior to the date when it would otherwise have become due (unless as a result of the exercise
by the relevant Security Party of a voluntary right of prepayment), or any creditor of any
Security Party becomes entitled to declare any such Indebtedness due and payable or any
facility or commitment available to any Security Party relating to Indebtedness is withdrawn,
suspended or cancelled by reason of any default (however described) of the person concerned;
or
	 
	10.1.6	 	Execution: any uninsured judgment or order made against any Security Party is not stayed,
appealed against or complied with within fifteen (15) days or a creditor attaches or takes
possession of, or a distress, execution, sequestration or other process is levied or enforced
upon or sued out against, any of the undertakings, assets, rights or revenues of any Security
Party and is not discharged within thirty (30) days; or
	 
	10.1.7	 	Insolvency: any Security Party or Navios GP is unable or admits inability to pay its debts
as they fall due; suspends making payments on any of its debts or announces an intention to do
so; becomes insolvent; or has negative net worth (taking into account contingent liabilities);
or suffers the declaration of a moratorium in respect of any of its Indebtedness; or

54

 

	10.1.8	 	Reduction or loss of capital: a meeting is convened by any Security Party (other than the
Borrower) without the Agent’s prior written consent, for the purpose of passing any resolution
to purchase, reduce or redeem any of its share capital without the Agent’s prior written
consent; or
	 
	10.1.9	 	Dissolution: any limited partnership, limited liability company or corporate action,
Proceedings or other steps are taken to dissolve or wind-up any Security Party or Navios GP or
an order is made or resolution passed for the dissolution or winding up of any Security Party
or a notice is issued convening a meeting for such purpose; or
	 
	10.1.10	 	Administration: any petition is presented, notice given or other steps are taken anywhere
to appoint an administrator of any Security Party or Navios GP or the Agent believes that any
such petition or other step is imminent or an administration order is made in relation to any
Security Party; or
	 
	10.1.11	 	Appointment of receivers and managers: any administrative or other receiver is appointed
anywhere of any Security Party or Navios GP or any part of its assets and/or undertaking or
any other steps are taken to enforce any Encumbrance over all or any part of the assets of any
Security Party; or
	 
	10.1.12	 	Compositions: any limited partnership, limited liability company or corporate action, legal
proceedings or other procedures or steps are taken, or negotiations commenced, by any Security
Party or Navios GP or by any of its creditors with a view to the general readjustment or
rescheduling of all or part of its Indebtedness or to proposing any kind of composition,
compromise or arrangement involving such limited partnership, limited liability company or
corporation and any of its creditors; or
	 
	10.1.13	 	Analogous proceedings: there occurs, in relation to any Security Party or Navios GP, in any
country or territory in which any of them carries on business or to the jurisdiction of whose
courts any part of their assets is subject, any event which, in the reasonable opinion of the
Agent, appears in that country or territory to correspond with, or have an effect equivalent
or similar to, any of those mentioned in clauses 10.1.6 to 10.1.12 (inclusive) or any Security
Party or Navios GP otherwise becomes subject, in any such country or territory, to the
operation of any law relating to insolvency, bankruptcy or liquidation; or

55

 

	10.1.14	 	Cessation of business: any Security Party suspends or ceases or threatens to suspend or
cease to carry on its business without the prior written consent of the Agent, such consent
not to be unreasonably withheld; or
	 
	10.1.15	 	Seizure: all or a material part of the undertaking, assets, rights or revenues of, or
shares or other ownership interests in, any Security Party are seized, nationalised,
expropriated or compulsorily acquired by or under the authority of any Government Entity; or
	 
	10.1.16	 	Invalidity: any of the Security Documents and the Underlying Documents shall at any time
and for any reason become invalid or unenforceable or otherwise cease to remain in full force
and effect, or if the validity or enforceability of any of the Security Documents and the
Underlying Documents shall at any time and for any reason be contested by any Security Party
which is a party thereto, or if any such Security Party shall deny that it has any, or any
further, liability thereunder; or
	 
	10.1.17	 	Unlawfulness: any Unlawfulness occurs or it becomes impossible or unlawful at any time for
any Security Party, to fulfil any of the covenants and obligations expressed to be assumed by
it in any of the Security Documents or for a Bank to exercise the rights or any of them vested
in it under any of the Security Documents or otherwise; or
	 
	10.1.18	 	Repudiation: any Security Party repudiates any of the Security Documents or does or causes
or permits to be done any act or thing evidencing an intention to repudiate any of the
Security Documents; or
	 
	10.1.19	 	Encumbrances enforceable: any Encumbrance (other than Permitted Liens) in respect of any of
the property (or part thereof) which is the subject of any of the Security Documents becomes
enforceable; or
	 
	10.1.20	 	Arrest: a Mortgaged Vessel is arrested, confiscated, seized, taken in execution, impounded,
forfeited, detained in exercise or purported exercise of any possessory lien or other claim or
otherwise taken from the possession of its Owner and that Owner shall fail to procure the
release of such Mortgaged Vessel within a period of fifteen (15) days thereafter (this clause
does not include capture of the Vessel by pirates for up to 12 months (but does apply if such
capture exceeds 12 months) if relevant underwriters confirm in writing (in customary terms)
within ninety (90) day of capture, that such capture will be covered by the relevant Owner’s
war risks insurance); or

56

 

	10.1.21	 	Registration: the registration of a Mortgaged Vessel under the laws and flag of the
relevant Flag State is cancelled or terminated without the prior written consent of the
Majority Lenders; or
	 
	10.1.22	 	Unrest: the Flag State of either Vessel or the country in which any Security Party is
incorporated or domiciled becomes involved in hostilities or civil war or there is a seizure
of power in the Flag State by unconstitutional means unless the Owner of the Vessel registered
in such Flag State shall have transferred its Vessel onto a new flag acceptable to the Lenders
within sixty (60) days of the start of such hostilities or civil war or seizure of power; or
	 
	10.1.23	 	Environmental Incidents: an Environmental Incident occurs which gives rise, or may give
rise, to an Environmental Claim which could, in the opinion of the Agent be expected to have a
material adverse effect (i) on the business, assets or financial condition of any Security
Party or the Group taken as a whole or (ii) on the security constituted by any of the Security
Documents or the enforceability of that security in accordance with its terms; or
	 
	10.1.24	 	P&I: an Owner or the Manager or any other person fails or omits to comply with any
requirements of the protection and indemnity association or other insurer with which a
Mortgaged Vessel is entered for insurance or insured against protection and indemnity risks
(including oil pollution risks) to the effect that any cover (including, without limitation,
any cover in respect of liability for Environmental Claims arising in jurisdictions where such
Mortgaged Vessel operates or trades) is or may be liable to cancellation, qualification or
exclusion at any time; or
	 
	10.1.25	 	Material events: any other event occurs or circumstance arises which, in the opinion of the
Agent (following consultation with the Lenders), is likely materially and adversely to affect
either (i) the ability of any Security Party to perform all or any of its obligations under or
otherwise to comply with the terms of any of the Security Documents or (ii) the security
created by any of the Security Documents; or
	 
	10.1.26	 	Account: moneys are withdrawn from the Earnings Account or the Retention Account other than
in accordance with clause 14; or
	 
	10.1.27	 	Required Authorisations: any Required Authorisation is revoked or withheld or modified or
is otherwise not granted or fails to remain in full force and effect or if any exchange
control or other law or regulation shall exist which would make any transaction under the
Security

57

 

	 	 	Documents or the continuation thereof, unlawful or would prevent the performance by any
Security Party of any term of any of the Security Documents;
	 
	10.1.28	 	Money Laundering: any Security Party is in breach of or fails to observe any law,
requirement, measure or procedure implemented to combat “money laundering” as defined in
Article 1 of the Directive (91/308 EEC) of the Council of the European Communities; or
	 
	10.1.29	 	Change of Ownership. There shall occur a change in the ownership of any Guarantor, the
Shareholder or Navios GP from the Drawdown Date or Permitted Owners cease to own, in
aggregate, at least 20% of the Borrower, without the prior consent of the Agent
(acting on the instructions of the Majority Lender);
	 
	 	 	PROVIDED THAT that there shall not be an Event of Default solely by reason of any of the
events or circumstances described in clauses 10.1.5 to 10.1.15 inclusive taking place with
respect to any Group Member which is not a Security Party unless in the opinion of the
Majority Lenders, the ability of any Security Party to perform all or any of the
obligations expressed to be assumed by it under, or otherwise to comply with the terms of,
the Security Documents which it is a party would be materially and adversely affected.
	 
	10.2	 	Acceleration
	 
	 	 	The Agent may, and if so requested by the Majority Lenders shall, without prejudice
to any other rights of the Lenders, at any time after the happening of an Event of Default
by notice to the Borrower declare that:
	 
	10.2.1	 	the obligation of each Lender to make its Commitment available shall be terminated,
whereupon the Commitment shall be reduced to zero forthwith; and/or
	 
	10.2.2	 	the Loan and all interest accrued and all other sums payable whatsoever under the Security
Documents have become due and payable, whereupon the same shall, immediately or in accordance
with the terms of such notice, become due and payable.
	 
	10.3	 	Demand Basis
	 
	 	 	If, under clause 10.2.2, the Agent has declared the Loan to be due and payable on demand,
at any time thereafter the Agent may (and if so instructed by the Majority Lenders shall)
by written notice to the Borrower (a) demand repayment of the g Loan on such date as may
be specified whereupon, regardless of any other provision of this Agreement, the Loan
shall

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	 	 	become due and payable on the date so specified together with all interest accrued
and all other sums payable under this Agreement or (b) withdraw such declaration with
effect from the date specified in such notice.
	 
	11	 	INDEMNITIES
	 
	11.1	 	General indemnity
	 
	 	 	The Borrower agrees to indemnify each Bank on demand, without prejudice to any of such
Bank’s other rights under any of the Security Documents, against any loss (including loss
of Margin) or expense (including, without limitation, Break Costs) which such Bank shall
certify as sustained by it as a consequence of any Default, any prepayment of the Loan
being made under clauses 4.3, 4.5, 8.2.1(a) or 12.1 or any other repayment or prepayment
of the Loan or part thereof being made otherwise than on an Interest Payment Date relating
to the part of the Loan prepaid or repaid; and/or the Loan not being made available for
any reason (excluding any default by the Payment Agent, the Agent or any Lender) after the
Drawdown Notice has been given.
	 
	11.2	 	Environmental indemnity
	 
	 	 	The Borrower shall indemnify each Bank on demand and hold it harmless from and against all
costs, claims, expenses, payments, charges, losses, demands, liabilities, actions,
Proceedings, penalties, fines, damages, judgements, orders, sanctions or other outgoings
of whatever nature which may be incurred or made or asserted whensoever against such Bank
at any time, whether before or after the repayment in full of principal and interest under
this Agreement, arising howsoever out of an Environmental Claim made or asserted against
such Bank which would not have been, or been capable of being, made or asserted against
such Bank had it not entered into any of the Security Documents or been involved in any of
the resulting or associated transactions.
	 
	11.3	 	Capital adequacy and reserve requirements indemnity
	 
	 	 	The Borrower shall promptly indemnify each Lender on demand against any cost incurred or
loss suffered by such Lender as a result of its complying with (i) the minimum reserve
requirements from time to time of the European Central Bank (ii) any capital adequacy
directive of the European Union and/or (iii) any revised framework for international
convergence of capital measurements and capital standards and/or any regulation imposed

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	 	 	by any Government Entity in connection therewith, and/or in connection with maintaining
required reserves with a relevant national central bank to the extent that such compliance
or maintenance relates to such Lender’s Commitment and/or Contribution or deposits
obtained by it to fund the whole or part thereof and to the extent such cost or loss is
not recoverable by such Lender under clause 12.2.
	 
	12	 	UNLAWFULNESS AND INCREASED COSTS
	 
	12.1	 	Unlawfulness
	 
	 	 	If it is or becomes contrary to any law, directive or regulation for any Lender to
contribute to the Loan or to maintain its Commitment or fund its Contribution to the
Loan, such Lender shall promptly, through the Agent, give notice to the Borrower whereupon
(a) such Lender’s Contribution and Commitment shall be reduced to zero and (b) the
Borrower shall be obliged to prepay such Lender’s Contribution either (i) forthwith or
(ii) on a future specified date not being earlier than the latest date permitted by the
relevant law, directive or regulation together with interest accrued to the date of
prepayment and all other sums payable by the Borrower under this Agreement.
	 
	12.2	 	Increased costs
	 
	 	 	If the result of any change in, or in the interpretation or application of, or the
introduction of, any law or any regulation, request or requirement (whether or not having
the force of law, but, if not having the force of law, with which a Lender or, as the case
may be, its holding company habitually complies), including (without limitation) those
relating to Taxation, capital adequacy, liquidity, reserve assets, cash ratio deposits and
special deposits, is to:
	 
	12.2.1	 	subject any Lender to Taxes or change the basis of Taxation of any Lender with respect to
any payment under any of the Security Documents (other than Taxes or Taxation on the overall
net income, profits or gains of such Lender imposed in the jurisdiction in which its principal
or lending office under this Agreement is located); and/or
	 
	12.2.2	 	increase the cost to, or impose an additional cost on, any Lender or its holding company in
making or keeping such Lender’s Commitment available or maintaining or funding all or part of
such Lender’s Contribution; and/or
	 
	12.2.3	 	reduce the amount payable or the effective return to any Lender under any of the Security
Documents; and/or

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	12.2.4	 	reduce any Lender’s or its holding company’s rate of return on its overall capital by reason
of a change in the manner in which it is required to allocate capital resources to such
Lender’s obligations under any of the Security Documents; and/or
	 
	12.2.5	 	require any Lender or its holding company to make a payment or forgo a return on or
calculated by reference to any amount received or receivable by such Lender under any of the
Security Documents; and/or
	 
	12.2.6	 	require any Lender or its holding company to incur or sustain a loss (including a loss of
future potential profits) by reason of being obliged to deduct all or part of its Contribution
or the Loan from its capital for regulatory purposes,
	 
	 	 	then and in each such case (subject to clause 12.3):

	 	(a)	 	such Lender shall notify the Borrower in writing of such event promptly
upon its becoming aware of the same; and
	 
	 	(b)	 	the Borrower shall on demand made at any time whether or not such Lender’s
Contribution has been repaid, pay to the Payment Agent for the account of such Lender
the amount which such Lender specifies (in a certificate setting forth the basis of
the computation of such amount but not including any matters which such Lender or its
holding company regards as confidential) is required to compensate such Lender and/or
(as the case may be) its holding company for such liability to Taxes, cost,
reduction, payment , forgone return or loss.

	 	 	For the purposes of this clause 12.2 “holding company” means the company or entity (if
any) within the consolidated supervision of which a Lender is included.
	 
	12.3	 	Exception
	 
	 	 	Nothing in clause 12.2 shall entitle any Lender to receive any amount in respect of
compensation for any such liability to Taxes, increased or additional cost, reduction,
payment, foregone return or loss to the extent that the same is the subject of an
additional payment under clause 6.6.

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	13	 	APPLICATION OF MONEYS, SET OFF, PRO-RATA PAYMENTS AND MISCELLANEOUS
	 
	13.1	 	Application of moneys
	 
	 	 	All moneys received by the Payment Agent and/or the Security Trustee under or pursuant to
any of the Security Documents and expressed to be applicable in accordance with the
provisions of this clause 13.1 or in a manner determined in the Security Trustee’s or (as
the case may be) the Payment Agent’s discretion, shall be applied in the following manner:
	 
	13.1.1	 	first, in or towards payment, on a pro-rata basis, of any unpaid costs and expenses of the
Banks or any of them under any of the Security Documents;
	 
	13.1.2	 	secondly, in or towards payment of any fees payable to the Arrangers, the Payment Agent, the
Agent or any of the other Banks under, or in relation to, the Security Documents which remain
unpaid;
	 
	13.1.3	 	thirdly, in or towards payment to the Lenders, on a pro rata basis, of any accrued interest
owing in respect of the Loan which shall have become due under any of the Security Documents
but remains unpaid;
	 
	13.1.4	 	fourthly, in or towards repayment of the Loan (in such proportions as the Lenders require
and whether the same is due and payable or not) and shall be applied, in respect of the Loan,
pro rata against the outstanding repayment instalments;
	 
	13.1.5	 	fifthly, in or towards payment to the Lenders, on a pro rata basis any Break Costs and any
other sum relating to the Loan which shall have become due under any of the Security Documents
but remains unpaid;
	 
	13.1.6	 	sixthly, the surplus (if any) shall be paid to the Borrower or to whomsoever else may then
be entitled to receive such surplus.
	 
	13.2	 	Set-off
	 
	13.2.1	 	The Borrower irrevocably authorises each Bank (without prejudice to any of such Bank’s
rights at law, in equity or otherwise), at any time and without notice to the Borrower, to
apply any credit balance to which the Borrower is then entitled standing upon any account of
the Borrower with any branch of such Bank in or towards satisfaction of any sum due and

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	 	 	payable from the Borrower to such Bank under any of the Security Documents. For this
purpose, each Bank is authorised to purchase with the moneys standing to the credit of
such account such other currencies as may be necessary to effect such application.
	 
	13.2.2	 	No Bank shall be obliged to exercise any right given to it by this clause 13.2. Each Bank
shall notify the Borrower through the Agent forthwith upon the exercise or purported exercise
of any right of set off giving full details in relation thereto and the Agent shall inform the
other Banks.
	 
	13.2.3	 	Nothing in this clause 13.2 shall be effective to create a charge or other security
interest.
	 
	13.3	 	Pro rata payments
	 
	13.3.1	 	If at any time any Lender (the “Recovering Lender”) receives or recovers any amount owing to
it by the Borrower under this Agreement (other than pursuant to any other Security Document)
by direct payment, set-off or in any manner other than by payment through the Payment Agent
pursuant to clauses 6.1 or 6.9 (not being a payment received from a Transferee Bank or a
sub-participant in such Lender’s Contribution or any other payment of an amount due to the
Recovering Lender for its sole account pursuant to clauses 3.6, 5, 6.6, 11.1, 11.2, 11.3,
12.1, or 12.2), the Recovering Lender shall, within two (2) Banking Days of such receipt or
recovery (a “Relevant Receipt”) notify the Payment Agent of the amount of the Relevant
Receipt. If the Relevant Receipt exceeds the amount which the Recovering Lender would have
received if the Relevant Receipt had been received by the Payment Agent and distributed
pursuant to clause 6.1 or 6.10 (as the case may be) then:

	 	(a)	 	within two (2) Banking Days of demand by the Payment Agent, the Recovering
Lender shall pay to the Payment Agent an amount equal (or equivalent) to the excess;
	 
	 	(b)	 	the Payment Agent shall treat the excess amount so paid by the Recovering
Lender as if it were a payment made by the Borrower and shall distribute the same to
the Lenders (other than the Recovering Lenders) in accordance with clause 6.10; and
	 
	 	(c)	 	as between the Borrower and the Recovering Lender the excess amount so
re-distributed shall be treated as not having been paid but the obligations of the
Borrower to the other Lenders shall, to the extent of the amount so re-distributed to
them, be treated as discharged.

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	13.3.2	 	If any part of the Relevant Receipt subsequently has to be wholly or partly refunded by the
Recovering Lender (whether to a liquidator or otherwise) each Lender to which any part of such
Relevant Receipt was so re-distributed shall on request from the Recovering Lender repay to
the Recovering Lender such Lender’s pro-rata share of the amount which has to be refunded by
the Recovering Lender.
	 
	13.3.3	 	Each Lender shall on request supply to the Agent such information as the Agent may from time
to time request for the purposes of this clause 13.3.
	 
	13.3.4	 	Notwithstanding the foregoing provisions of this clause 13.3, no Recovering Lender shall be
obliged to share any Relevant Receipt which it receives or recovers pursuant to Proceedings
taken by it to recover any sums owing to it under this Agreement with any other party which
has a legal right to, but does not, either join in such Proceedings or commence and diligently
pursue separate Proceedings to enforce its rights in the same or another court (unless the
Proceedings instituted by the Recovering Lender are instituted by it without prior notice
having been given to such party through the Agent).
	 
	13.4	 	No release
	 
	 	 	For the avoidance of doubt it is hereby declared that failure by any Recovering Lender to
comply with the provisions of clause 13.3 shall not release any other Recovering Lender
from any of its obligations or liabilities under clause 13.3.
	 
	13.5	 	No charge
	 
	 	 	The provisions of this clause 13 shall not, and shall not be construed so as to,
constitute a charge or create or declare a trust by a Lender over all or any part of a sum
received or recovered by it in the circumstances mentioned in clause 13.3.
	 
	13.6	 	Further assurance
	 
	 	 	The Borrower undertakes with each Bank that the Security Documents shall both at the date
of execution and delivery thereof and throughout the Facility Period be valid and binding
obligations of the respective parties thereto which, with the rights of each Lender
thereunder, are enforceable in accordance with their respective terms and that they will,
at their expense, execute, sign, perfect and do, and will procure the execution, signing,
perfecting and doing by each of the other Security Parties of, any and every such further
assurance, document, act or

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	 	 	thing as in the reasonable opinion of the Majority Lenders may be necessary or desirable
for perfecting the security contemplated or constituted by the Security Documents.
	 
	13.7	 	Conflicts
	 
	 	 	In the event of any conflict between this Agreement and any of the other Security
Documents, the provisions of this Agreement shall prevail.
	 
	13.8	 	No implied waivers, remedies cumulative
	 
	 	 	No failure or delay on the part of any of the Banks to exercise any power, right or remedy
under any of the Security Documents shall operate as a waiver thereof, nor shall any
single or partial exercise by any Bank of any power, right or remedy preclude any other or
further exercise thereof or the exercise of any other power, right or remedy. The
remedies provided in the Security Documents are cumulative and are not exclusive of any
remedies provided by law. No waiver by any Bank shall be effective unless it is in
writing.
	 
	13.9	 	Severability
	 
	 	 	If any provision of this Agreement is prohibited, invalid, illegal or unenforceable in any
jurisdiction, such prohibition, invalidity, illegality or unenforceability shall not
affect or impair howsoever the remaining provisions thereof or affect the validity,
legality or enforceability of such provision in any other jurisdiction.
	 
	13.10	 	Force Majeure
	 
	 	 	Regardless of any other provision of this Agreement, none of the Banks shall be liable
for any failure to perform the whole or any part of this Agreement resulting directly or
indirectly from (i) the action or inaction or purported action of any governmental or
local authority (ii) any strike, lockout, boycott or blockade (including any strike,
lockout, boycott or blockade effected by or upon the Bank or any of its representatives or
employees) (iii) any act of God (iv) any act of war (whether declared or not) or terrorism
(v) any failure of any information technology or other operational systems or equipment
affecting the Bank or (vi) any other circumstances whatsoever outside the Bank’s control.

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	13.11	 	Amendments
	 
	 	 	This Agreement may be amended or varied only by an instrument in writing executed by all
parties hereto who irrevocably agree that the provisions of this clause 13.11 may not be
waived or modified except by an instrument in writing to that effect signed by both of
them.
	 
	13.12	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts and all such counterparts
taken together shall be deemed to constitute one and the same agreement which may be
sufficiently evidenced by one counterpart.
	 
	13.13	 	English language
	 
	 	 	All documents required to be delivered under and/or supplied whensoever in connection
howsoever with any of the Security Documents and all notices, communications, information
and other written material whatsoever given or provided in connection howsoever therewith
must either be in the English language or accompanied by an English translation certified
by a notary, lawyer or consulate acceptable to the Agent.
	 
	14	 	ACCOUNTS AND RETENTIONS
	 
	14.1	 	General
	 
	 	 	The Borrower undertakes with each Bank that it will ensure that:
	 
	14.1.1	 	it will on or before the Drawdown Date, open the Retention Account with the Account Bank in
its name;
	 
	14.1.2	 	the Shareholder will on or before the Drawdown Date, open the Earnings Account in its name;
and
	 
	14.1.3	 	all moneys payable to either Owner in respect of the Earnings (as defined in the relevant
Mortgage) of its Vessel shall, unless and until the Agent (acting on the instructions of the
Majority Lenders) directs to the contrary pursuant to the provisions of the relevant Mortgage,
be paid to the Earnings Account, Provided however that if any of the moneys paid to the
Earnings Account are payable in a currency other than USD, they shall be paid to a sub-account
of the Earnings Account denominated in such currency (except that if the Shareholder fails to
open such a sub-account, the Account Bank shall then convert such moneys into USD at the
Account Bank’s spot rate of exchange at the relevant time for the purchase of USD with

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	 	 	such currency and the term “spot rate of exchange”
shall include any premium and costs of exchange
payable in connection with the purchase of USD with
such currency).
	 
	14.2	 	Earnings Account: withdrawals
	 
	 	 	Any sums standing to the credit of the Earnings Account may be applied from time to time
(i) Firstly and to make the payments required under this Agreement, (ii) secondly subject
to there being no breach of Clause 14.3 and to no Event of Default having occurred, in the
operation of the Mortgaged Vessels and (iii) subject to there being at any time sufficient
funds to pay amounts due under (i) and (ii) above as they fall due, thirdly for the
general corporate purposes of the Borrower.
	 
	14.3	 	Retention Account: credits and withdrawals
	 
	14.3.1	 	The Borrower undertakes with each Bank that, throughout the Facility Period, it will procure
that, on each Retention Date there is paid (whether from the Earnings Account or elsewhere) to
the Retention Account, the Retention Amount for such date.
	 
	14.3.2	 	Unless and until there shall occur an Event of Default (whereupon the provisions of clause
14.5 shall apply), all Retention Amounts credited to the Retention Account together with
interest from time to time accruing or at any time accrued thereon must be applied by the
Account Bank (and the Borrower hereby irrevocably authorises the Account Bank so to apply the
same) upon each Repayment Date and/or on each day that interest is payable on the Loan
pursuant to clause 3.1, in or towards payment to the Payment Agent of the instalment then
falling due for repayment or, as the case may be, the amount of interest then due. Each such
application by the Account Bank shall constitute a payment in or towards satisfaction of the
Borrower’s corresponding payment obligations under this Agreement but shall be strictly
without prejudice to the obligations of the Borrower to make any such payment to the extent
that the aforesaid application by the Account Bank is insufficient to meet the same.
	 
	 	 	Unless the Agent (acting on the instructions of the Majority Banks) otherwise agrees in
writing and subject to this clause 14.3.2, Borrower shall not be entitled to withdraw any
moneys from the Retention Account at any time during the Facility Period.
	 
	14.4	 	Application of accounts
	 
	 	 	At any time after the occurrence of an Event of Default, the Payment Agent may (and on the
instructions of the Majority Lenders shall), without notice to the Borrower, instruct the

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	 	 	Account Bank to apply all moneys then standing to the credit of the Earnings Account
and/or the Retention Account (together with interest from time to time accruing or accrued
thereon) in or towards satisfaction of any sums due to the Banks or any of them under the
Security Documents in the manner specified in clause 13.1.
	 
	14.5	 	Charging of accounts
	 
	 	 	The Earnings Account, the Retention Account and all amounts from time to time
respectively standing to the credit thereof shall be subject to the security constituted
and the rights conferred by, respectively, the Earnings Account Pledge and the
Retention Account Pledge.
	 
	15	 	ASSIGNMENT, TRANSFER AND LENDING OFFICE
	 
	15.1	 	Benefit and burden
	 
	 	 	This Agreement shall be binding upon, and enure for the benefit of, the Banks and the
Borrower and their respective successors in title.
	 
	15.2	 	No assignment by Borrower

	 
	 	 	The Borrower may not assign or transfer any of its rights or obligations under this Agreement.
	 
	15.3	 	Transfers by Banks
	 
	 	 	Provided that there may be no more than 5 Lenders at any one time, any Lender (the
“Transferor Lender”) may at any time, without the consent of the Borrower, cause all or
any part of its rights, benefits and/or obligations under this Agreement and the other
Security Documents to be transferred to another first class international bank or
financial institution (in either case a “Transferee Lender”) by delivering to the Agent a
Transfer Certificate duly completed and duly executed by the Transferor Lender and the
Transferee Lender. No such transfer is binding on, or effective in relation to, the
Borrower or the Agent unless (i) it is effected or evidenced by a Transfer Certificate
which complies with the provisions of this clause 15.3 and is signed by or on behalf of
the Transferor Lender, the Transferee Lender and the Agent (on behalf of itself, the
Borrower and the other Banks) and (ii) such transfer of rights under the other Security
Documents has been effected and registered. Upon signature of any such Transfer
Certificate by the Agent, which signature shall be effected as promptly as is practicable
after such Transfer Certificate has been delivered to the Agent, and subject to

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	 	 	the terms of such Transfer Certificate, such Transfer Certificate shall have effect as set
out below.
	 
	 	 	The following further provisions shall have effect in relation to any Transfer
Certificate:
	 
	15.3.1	 	a Transfer Certificate may be in respect of a Lender’s rights in respect of all, or part of,
its Commitment and shall be in respect of the same proportion of its Contribution;
	 
	15.3.2	 	a Transfer Certificate shall only be in respect of rights and obligations of the Transferor
Lender in its capacity as a Lender and shall not transfer its rights and obligations (if
applicable) as the Payment Agent and/or the Agent, or in any other capacity, as the case may
be and such other rights and obligations may only be transferred in accordance with any
applicable provisions of this Agreement;
	 
	15.3.3	 	a Transfer Certificate shall take effect in accordance with English law as follows:

	 	(a)	 	to the extent specified in the Transfer Certificate, the Transferor
Lender’s payment rights and all its other rights (other than those referred to in
clause 15.3.2 above) under this Agreement are assigned to the Transferee Lender
absolutely, free of any defects in the Transferor Lender’s title and of any rights or
equities which the Borrower had against the Transferor Lender and the Transferee
Lender assumes all obligations of the Transferor Lender as are transferred by such
Transfer Certificate;
	 
	 	(b)	 	the Transferor Lender’s Commitment is discharged to the extent specified in
the Transfer Certificate;
	 
	 	(c)	 	the Transferee Lender becomes a Lender with a Contribution and/or a
Commitment in respect of each of the Loan Facility of the amounts specified in the
Transfer Certificate;
	 
	 	(d)	 	the Transferee Lender becomes bound by all the provisions of this Agreement
and the Security Documents which are applicable to the Lenders generally, including
those about pro-rata sharing and the exclusion of liability on the part of, and the
indemnification of, the Arrangers, the Payment Agent and the Agent and the Security
Trustee and to the extent that the Transferee Lender becomes bound by those
provisions, the Transferor Lender ceases to be bound by them;

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	 	(e)	 	any part of the Loan which the Transferee Lender makes after the Transfer
Certificate comes into effect ranks in point of priority and security in the same way
as it would have ranked had it been made by the Transferor Lender, assuming that any
defects in the Transferor Lender’s title and any rights or equities of any Security
Party against the Transferor Lender had not existed; and
	 
	 	(f)	 	the Transferee Lender becomes entitled to all the rights under this
Agreement which are applicable to the Lenders generally, including but not limited to
those relating to the Majority Lenders and those under clauses 3.6, 5 and 12 and to
the extent that the Transferee Lender becomes entitled to such rights, the Transferor
Lender ceases to be entitled to them;

	15.3.4	 	the rights and equities of the Borrower or of any other Security Party referred to above
include, but are not limited to, any right of set-off and any other kind of cross-claim; and
	 
	15.3.5	 	the Borrower, the Account Bank, the Security Trustee, the Payment Agent, the Arrangers and
the Lenders hereby irrevocably authorise and instruct the Agent to sign any such Transfer
Certificate on their behalf and undertake not to withdraw, revoke or qualify such authority or
instruction at any time. Promptly upon its signature of any Transfer Certificate, the Agent
shall notify the Borrower, the Transferor Lender and the Transferee Lender.
	 
	15.4	 	Reliance on Transfer Certificate
	 
	15.4.1	 	The Agent shall be entitled to rely on any Transfer Certificate believed by it to be genuine
and correct and to have been presented or signed by the persons by whom it purports to have
been presented or signed, and shall not be liable to any of the parties to this Agreement and
the Security Documents for the consequences of such reliance.
	 
	15.4.2	 	The Payment Agent shall at all times during the continuation of this Agreement maintain a
register in which it shall record the name, Commitments, Contributions and administrative
details (including the lending office) from time to time of the Lenders holding a Transfer
Certificate and the date at which the transfer referred to in such Transfer Certificate held
by each Lender was transferred to such Lender, and the Payment Agent shall make the said
register available for inspection by any Lender or the Borrower during normal banking hours
upon receipt by the Payment Agent of reasonable prior notice requesting the Payment Agent to
do so.

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	15.4.3	 	The entries on the said register shall, in the absence of manifest error, be conclusive in
determining the identities of the Commitments, the Contributions and the Transfer Certificates
held by the Lenders from time to time and the principal amounts of such Transfer Certificates
and may be relied upon by all parties to this Agreement.
	 
	15.5	 	Transfer fees and expenses
	 
	 	 	Any Transferor Lender who causes the transfer of all or any part of its rights, benefits
and/or obligations under the Security Documents in accordance with the foregoing
provisions of this clause 15, must, on each occasion, pay to the Agent a transfer fee of
one thousand five hundred Dollars (USD 1,500) and, in addition, be responsible for all
other costs and expenses (including, but not limited to, reasonable legal fees and
expenses) associated therewith and all value added tax thereon, as well as those of the
Agent (in addition to its fee as aforesaid) in connection with such transfer.
	 
	15.6	 	Documenting transfers
	 
	 	 	If any Lender assigns all or any part of its rights or transfers all or any part of its
rights, benefits and/or obligations as provided in clause 15.3, the Borrower undertakes,
immediately on being requested to do so by the Agent and at the cost of the Transferor
Lender, to enter into, and procure that the other Security Parties shall (at the cost of
the Transferor Lender) enter into, such documents as may be necessary or desirable to
transfer to the Transferee Lender all or the relevant part of such Lender’s interest in
the Security Documents and all relevant references in this Agreement to such Lender shall
thereafter be construed as a reference to the Transferor Lender and/or its Transferee
Lender (as the case may be) to the extent of their respective interests.
	 
	15.7	 	Sub-Participation
	 
	 	 	A Lender may sub-participate all or any part of its rights and/or obligations under the
Security Documents at its own expense without the consent of, or notice to, the Borrower.
	 
	15.8	 	Lending office
	 
	 	 	Each Lender shall lend through its office at the address specified in schedule 1 or, as
the case may be, in any relevant Transfer Certificate or through any other office of such
Lender selected from time to time by it through which such Lender wishes to lend for the
purposes of this Agreement. If the office through which a Lender is lending is changed
pursuant to this

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	 	 	clause 15.8, such Lender shall notify the Agent promptly of such change and the Agent
shall notify the Borrower, the Security Trustee, the Payment Agent, the Account Bank and
the other Lenders.
	 
	15.9	 	Disclosure of information
	 
	 	 	the Borrower hereby irrevocably agrees that each Bank may disclose to any of its branches
and affiliates, its head office, any relevant fiscal authorities a prospective assignee,
transferee or to any other person who may propose entering into contractual relations with
such Bank in relation to this Agreement such information about the Borrower and/or the
other Security Parties and/or the Loan and/or the Security Documents and/or funding of the
Loan and/or operational matters in respect of the Loan as such Bank shall consider
appropriate in relation to any transfer and/or enforcement hereunder.
	 
	16	 	ARRANGERS, AGENT AND SECURITY TRUSTEE
	 
	16.1	 	Appointment of the Agent
	 
	 	 	Each Lender irrevocably appoints the Agent and the Payment Agent as its agent and payment
agent respectively for the purposes of this Agreement and such of the Security Documents
to which it may be appropriate for the Agent to be party. Accordingly each of the Lenders
hereby authorises the Agent and the Payment Agent:
	 
	16.1.1	 	to execute such documents as may be approved by the Majority Lenders for execution by the
Agent and/or (as the case may be) the Payment Agent; and
	 
	16.1.2	 	(whether or not by or through employees or agents) to take such action on such Lender’s
behalf and to exercise such rights, remedies, powers and discretions as are specifically
delegated to the Agent and/or the Payment Agent by any Security Document, together with such
powers and discretions as are reasonably incidental thereto.
	 
	16.2	 	Payment Agent’s/Agent’s actions
	 
	 	 	Any action taken by the Agent or the Payment Agent under or in relation to any of the
Security Documents whether with requisite authority or on the basis of appropriate
instructions received from the Majority Lenders (or as otherwise duly authorised) shall be
binding on all the Banks.

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	16.3	 	Agent’s and Payment Agent’s duties
	 
	16.3.1	 	The Agent shall promptly notify each Lender of the contents of each notice, certificate or
other document received by it from the Borrower under or pursuant to clauses 8.1.1, 8.1.6,
8.1.9, 8.1.10, 8.1.13 and 8.1.17; and
	 
	16.3.2	 	The Agent and the Payment Agent shall (subject to the other provisions of this clause 16)
take (or instruct the Security Trustee to take) such action or, as the case may be, refrain
from taking (or authorise the Security Trustee to refrain from taking) such action with
respect to the exercise of any of its rights, remedies, powers and discretions as agent, as
the Majority Lenders may direct.
	 
	16.4	 	Agent’s and Payment Agent’s rights
	 
	 	 	The Agent and the Payment Agent may:
	 
	16.4.1	 	in the exercise of any right, remedy, power or discretion in relation to any matter, or in
any context, not expressly provided for by this Agreement or any of the other Security
Documents, act or, as the case may be, refrain from acting (or authorise the Security Trustee
to act or refrain from acting) in accordance with the instructions of the Lenders, and shall
be fully protected in so doing;
	 
	16.4.2	 	unless and until it has received directions from the Majority Lenders, take such action or,
as the case may be, refrain from taking such action (or authorise the Security Trustee to take
or refrain from taking such action) in respect of a Default of which the Agent and/or the
Payment Agent has actual knowledge as it shall consider advisable in the best interests of the
Lenders (but shall not be obliged to do so);
	 
	16.4.3	 	refrain from acting (or authorise the Security Trustee to refrain from acting) in accordance
with any instructions of the Lenders to institute any Proceedings arising out of or in
connection with any of the Security Documents until it and/or the Security Trustee has been
indemnified and/or secured to its satisfaction against any and all costs, expenses or
liabilities (including legal fees) which it would or might incur as a result;
	 
	16.4.4	 	deem and treat (i) each Lender as the person entitled to the benefit of the Contribution of
such Lender for all purposes of this Agreement unless and until a notice shall have been filed
with the Agent pursuant to clause 15.3 and shall have become effective, and (ii) the office
set opposite the name of each of the Lenders in schedule 1 as its lending office unless and
until a

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	 	 	 	written notice of change of lending office shall have been received by the Agent and
the Agent may act upon any such notice unless and until the same is superseded by a
further such notice;
	 
	 	16.4.5	 	rely as to matters of fact which might reasonably be expected to be within the knowledge of
any Security Party upon a certificate signed by any director or officer of the relevant
Security Party on behalf of the relevant Security Party; and
	 
	 	16.4.6	 	do anything which is in its opinion necessary or desirable to comply with any law or
regulation in any jurisdiction.
	 
	 	16.5	 	No Liability of Arrangers or Agent or Payment Agent
	 
	 	 	 	None of the Arrangers, the Agent, the Payment Agent nor any of their respective employees
and agents shall:
	 
	 	16.5.1	 	be obliged to make any enquiry as to the use of any of the proceeds of the Loan unless (in
the case of the Agent) so required in writing by a Lender, in which case the Agent shall
promptly make the appropriate request to the Borrower; or
	 
	 	16.5.2	 	be obliged to make any enquiry as to any breach or default by the Borrower or any other
Security Party in the performance or observance of any of the provisions of the Security
Documents or as to the existence of a Default unless (in the case of the Agent) the Agent has
actual knowledge thereof or has been notified in writing thereof by a Bank, in which case the
Agent shall promptly notify the Banks of the relevant event or circumstance; or
	 
	 	16.5.3	 	be obliged to enquire whether or not any representation or warranty made by the Borrower or
any other Security Party pursuant to this Agreement or any of the other Security Documents is
true; or
	 
	 	16.5.4	 	be obliged to do anything (including, without limitation, disclosing any document or
information) which would, or might in its opinion, be contrary to any law or regulation or be
a breach of any duty of confidentiality or otherwise be actionable or render it liable to any
person; or
	 
	 	16.5.5	 	be obliged to account to any Lender for any sum or the profit element of any sum received by
it for its own account; or

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	 	16.5.6	 	be obliged to institute any Proceedings arising out of or in connection with any of the
Security Documents other than on the instructions of the Majority Lenders; or
	 
	 	16.5.7	 	be liable to any Lender for any action taken or omitted under or in connection with any of
the Security Documents unless caused by its gross negligence or wilful misconduct.
	 
	 	 	 	For the purposes of this clause 16, none of the Arrangers nor the Agent or the Payment
Agent shall be treated as having actual knowledge of any matter of which the corporate
finance or any other division outside the agency or loan administration department of
either Arranger or the person for the time being acting as the Agent or the Payment Agent
may become aware in the context of corporate finance, advisory or lending activities from
time to time undertaken by either Arranger or, as the case may be, the Agent or Payment
Agent for any Security Party or any other person which may be a trade competitor of any
Security Party or may otherwise have commercial interests similar to those of any Security
Party.
	 
	 	16.6	 	Non —reliance on Arrangers, Agent or Payment Agent
	 
	 	 	 	Each Lender acknowledges that it has not relied on any statement, opinion, forecast or
other representation made by either Arranger, the Agent or the Payment Agent to induce it
to enter into any of the Security Documents and that it has made and will continue to
make, without reliance on either Arranger, the Agent or the Payment Agent and based on
such documents as it considers appropriate, its own appraisal of the creditworthiness of
the Security Parties and its own independent investigation of the financial condition,
prospects and affairs of the Security Parties in connection with the making and
continuation of such Lender’s Commitment or Contribution under this Agreement. None of
the Arrangers, the Payment Agent and the Agent shall have any duty or responsibility,
either initially or on a continuing basis, to provide any Lender with any credit or other
information with respect to any Security Party whether coming into its possession before
the making of the Loan or at any time or times thereafter other than as provided in clause
16.3.1.
	 
	 	16.7	 	No responsibility on Arrangers, Agent or Payment Agent for Borrower’s performance
	 
	 	 	 	None of the Arrangers, the Agent or the Payment Agent shall have any responsibility or
liability to any Lender:
	 
	 	16.7.1	 	on account of the failure of any Security Party to perform its obligations under any of the
Security Documents; or

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	 	16.7.2	 	for the financial condition of any Security Party; or
	 
	 	16.7.3	 	for the completeness or accuracy of any statements, representations or warranties in any of
the Security Documents or any document delivered under any of the Security Documents; or
	 
	 	16.7.4	 	for the execution, effectiveness, adequacy, genuineness, validity, enforceability or
admissibility in evidence of any of the Security Documents or of any certificate, report or
other document executed or delivered under any of the Security Documents; or
	 
	 	16.7.5	 	to investigate or make any enquiry into the title of the Borrower or any other Security
Party to the Mortgaged Vessels or any other security or any part thereof; or
	 
	 	16.7.6	 	for the failure to register any of the Security Documents with any official or regulatory
body or office or elsewhere; or
	 
	 	16.7.7	 	for taking or omitting to take any other action under or in relation to any of the Security
Documents or any aspect of any of the Security Documents; or
	 
	 	16.7.8	 	on account of the failure of the Security Trustee to perform or discharge any of its duties
or obligations under the Security Documents; or
	 
	 	16.7.9	 	otherwise in connection with the Security Documents or their negotiation or for acting (or,
as the case may be, refraining from acting) in accordance with the instructions of the
Lenders.
	 
	 	16.8	 	Reliance on documents and professional advice
	 
	 	 	 	Each of the Arrangers, the Payment Agent and the Agent shall be entitled to rely on any
communication, instrument or document believed by it to be genuine and correct and to have
been signed or sent by the proper person and shall be entitled to rely as to legal or
other professional matters on opinions and statements of any legal or other professional
advisers selected or approved by it (including those in the relevant Arranger’s or, as the
case may be, the Agent’s or Payment Agent’s employment).
	 
	 	16.9	 	Other dealings
	 
	 	 	 	Each of the Arrangers, the Payment Agent and the Agent may, without any liability to
account to the Lenders, accept deposits from, lend money to, and generally engage in any
kind of banking or other business with, and provide advisory or other services to, any
Security Party or any company in the same group of companies as such Security Party or any

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	 	 	 	of the Lenders as if it were not an Arranger or, as the case may be, the Agent or Payment Agent.
	 
	 	16.10	 	Rights of Agent, Payment Agent as Lender; no partnership
	 
	 	 	 	With respect to its own Commitment and Contribution (if any) the Agent and the Payment
Agent shall have the same rights and powers under the Security Documents as any other
Lender and may exercise the same as though it were not performing the duties and functions
delegated to it under this Agreement and the term “Lenders” shall, unless the context
clearly otherwise indicates, include the Agent and the Payment Agent in their respective
individual capacity as a Lender. This Agreement shall not be construed so as to constitute
a partnership between the parties or any of them.
	 
	 	16.11	 	Amendments and waivers
	 
	 	16.11.1	 	Subject to clause 16.11, the Agent and/or the Payment Agent (as the case may be) may, with
the consent of the Majority Lenders (or if and to the extent expressly authorised by the other
provisions of any of the Security Documents) and, if so instructed by the Majority Lenders,
shall:
	 
	 	16.11.2	 	agree (or authorise the Security Trustee to agree) amendments or modifications to any of
the Security Documents with the Borrower and/or any other Security Party; and/or
	 
	 	16.11.3	 	vary or waive breaches of, or defaults under, or otherwise excuse performance of, any
provision of any of the other Security Documents by the Borrower and/or any other Security
Party (or authorise the Security Trustee to do so).
	 
	 	 	 	Any such action so authorised and effected by the Agent shall be documented in such manner
as the Agent and/or the Payment Agent (as the case may be) shall (with the approval of the
Majority Lenders) determine, shall be promptly notified to the Lenders by the Agent and/or
the Payment Agent (as the case may be) and (without prejudice to the generality of clause
16.2) shall be binding on the Lenders.
	 
	 	16.11.4	 	Except with the prior written consent of the Lenders, the Agent and the Payment Agent shall
have no authority on behalf of the Lenders to agree (or authorise the Security Trustee to
agree) with the Borrower and/or any other Security Party any amendment or modification to any
of the Security Documents or to grant (or authorise the Security Trustee to grant) waivers in
respect of breaches or defaults or to vary or excuse (or authorise the Security Trustee to

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	 	 	 	vary or excuse) performance of or under any of the Security Documents by the Borrower
and/or any other Security Party, if the effect of such amendment, modification, waiver or
excuse would be to:

	 	(a)	 	reduce the Margin, postpone the due date or reduce the amount of any
payment of principal, interest or other amount payable by any Security Party under
any of the Security Documents;
	 
	 	(b)	 	change the currency in which any amount is payable by any Security Party
under any of the Security Documents;
	 
	 	(c)	 	increase any Lender’s Commitment;
	 
	 	(d)	 	extend the Maturity Date;
	 
	 	(e)	 	change any provision of any of the Security Documents which expressly or
impliedly requires the approval or consent of all the Lenders such that the relevant
approval or consent may be given otherwise than with the sanction of all the Lenders;
	 
	 	(f)	 	change the order of distribution under clauses 6.10 and 13.1;
	 
	 	(g)	 	change this clause 16.11;
	 
	 	(h)	 	change the definition of “Majority Lenders” in clause 1.2;
	 
	 	(i)	 	release any Security Party from the security constituted by any Security
Document (except as required by the terms thereof or by law) or change the terms and
conditions upon which such security or guarantee may be, or is required to be,
released.

	 	16.12	 	Reimbursement and indemnity by Lenders
	 
	 	 	 	Each Lender shall reimburse the Agent and the Payment Agent (rateably in accordance with
such Lender’s Commitment or, after the Loan has been drawn, its Contribution,) to the
extent that the Agent or the Payment Agent is not reimbursed by the Borrower, for the
costs, charges and expenses incurred by the Agent or the Payment Agent which are expressed
to be payable by the Borrower under clause 5.2 including (in each case), without
limitation, the fees and expenses of legal or other professional advisers provided that,
if following any payment to the

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	 	 	 	Agent or the Payment Agent by a Lender under this clause the Agent or the Payment Agent
receives payment from the Borrower in respect of the same costs, fees or expenses, the
Agent or the Payment Agent shall upon receipt thereof reimburse the relevant Lender. Each
Lender must on demand indemnify the Agent or the Payment Agent (rateably in accordance
with such Lender’s Commitment or, after the Loan has been drawn, its Contribution)
against all liabilities, damages, costs and claims whatsoever incurred by the Agent in
connection with any of the Security Documents or the performance of its duties under any
of the Security Documents or any action taken or omitted by the Agent or, as the case may
be, the Payment Agent, under any of the Security Documents, unless such liabilities,
damages, costs or claims arise from the Agent’s or as the case may be, the Payment Agent’s
own gross negligence or wilful misconduct.
	 
	 	16.13	 	Retirement of Agent/Payment Agent
	 
	 	16.13.1	 	The Agent and the Payment Agent may, having given to the Borrower and each of the Lenders
not less than fifteen (15) days’ notice of its intention to do so, retire from its appointment
as Agent or the Payment Agent (as the case may be) under this Agreement, provided that no such
retirement shall take effect unless there has been appointed by the Lenders as a successor
agent:

	 	(a)	 	a company in the same group of companies as the Agent or, as the case may
be, the Payment Agent nominated by the Agent or, as the case may be, the Payment
Agent,
	 
	 	(b)	 	a Lender nominated by the Majority Lenders or, failing such a nomination,
	 
	 	(c)	 	any reputable and experienced bank or financial institution nominated by
the retiring Agent or, as the case may be, the Payment Agent.

	 	 	 	Any corporation into which the retiring Agent and/or the Payment Agent (as the case may
be) may be merged or converted or any corporation with which the Agent and/or the Payment
Agent (as the case may be) may be consolidated or any corporation resulting from any
merger, conversion, amalgamation, consolidation or other reorganisation to which the Agent
or the Payment Agent (as the case may be) shall be a party shall, to the extent permitted
by applicable law, be the successor Agent under this Agreement and the other Security
Documents without the execution or filing of any document or any further act on the part
of any of the parties to the Security Documents save that notice of any such merger,
conversion, amalgamation, consolidation or other reorganisation shall forthwith be given
to each Security

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	 	 	 	Party and the Lenders. Prior to any such successor being appointed, the Agent agrees to
consult with the Borrower and the Lenders as to the identity of the proposed successor and
to take account of any reasonable objections which the Borrower and the Lenders may raise
to such successor being appointed.
	 
	 	16.13.2	 	If the Majority Lenders, acting reasonably, are of the opinion that the Agent or Payment
Agent is unable to fulfil its respective obligations under this Agreement in a professional
and acceptable manner, then they may require the Agent or Payment Agent, by written notice, to
resign in accordance with clause 16.13.1, which the Agent shall promptly do, and the terms of
clause 16.13.1 shall apply to the appointment of any substitute Agent or Payment Agent, save
that the same shall be appointed by the Majority Lenders and not by all of the Lenders.
	 
	 	16.13.3	 	Upon any such successor as aforesaid being appointed, the retiring Agent or, as the case
may be, the Payment Agent shall be discharged from any further obligation under the Security
Documents (but shall continue to have the benefit of this clause 16 in respect of any action
it has taken or refrained from taking prior to such discharge) and its successor and each of
the other parties to this Agreement shall have the same rights and obligations among
themselves as they would have had if such successor had been a party to this Agreement in
place of the retiring Agent or Payment Agent. The retiring Agent or Payment Agent shall (at
its own expense) provide its successor with copies of such of its records as its successor
reasonably requires to carry out its functions under the Security Documents.
	 
	 	16.14	 	Appointment and retirement of Security Trustee
	 
	 	16.14.1	 	Appointment
	 
	 	 	 	Each of the Lenders and the Agent irrevocably appoints the Security Trustee as its
Security Trustee and trustee for the purposes of the Security Documents, in each case on
the terms set out in this Agreement. Accordingly, each of the Lenders and the Agent hereby
authorises the Security Trustee (whether or not by or through employees or agents) to take
such action on its behalf and to exercise such rights, remedies, powers and discretions as
are specifically delegated to the Security Trustee by this Agreement and/or the Security
Documents, together with such powers and discretions as are reasonably incidental thereto.
	 
	 	16.14.2	 	Retirement

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	 	 	 	Without prejudice to clause 16.13, the Security Trustee may, having given to the Borrower
and each of the Lenders not less than fifteen (15) days’ notice of its intention to do so,
retire from its appointment as Security Trustee under this Agreement and any Trust Deed,
provided that no such retirement shall take effect unless there has been appointed by the
Lenders and the Agent as a successor Security Trustee and trustee:

	 	(a)	 	a company in the same group of companies of the Security Trustee nominated
by the Security Trustee which the Lenders hereby irrevocably and unconditionally
agree to appoint or, failing such nomination,
	 
	 	(b)	 	a Lender or trust corporation nominated by the Majority Lenders or, failing
such a nomination,
	 
	 	(c)	 	any bank or trust corporation nominated by the retiring Security Trustee,

	 	 	 	and, in any case, such successor Security Trustee and trustee shall have duly accepted
such appointment by delivering to the Agent (i) written confirmation (in a form acceptable
to the Agent) of such acceptance agreeing to be bound by this Agreement in the capacity of
Security Trustee as if it had been an original party to this Agreement and (ii) a duly
executed Trust Deed.
	 
	 	 	 	Any corporation into which the retiring Security Trustee may be merged or converted or any
corporation with which the Security Trustee may be consolidated or any corporation
resulting from any merger, conversion, amalgamation, consolidation or other reorganisation
to which the Security Trustee shall be a party shall, to the extent permitted by
applicable law, be the successor Security Trustee under this Agreement, any Trust Deed and
the other Security Documents without the execution or filing of any document or any
further act on the part of any of the parties to this Agreement, any Trust Deed and the
other Security Documents save that notice of any such merger, conversion, amalgamation,
consolidation or other reorganisation shall forthwith be given to each Security Party and
the Lenders. Prior to any such successor being appointed, the Security Trustee agrees to
consult with the Borrower as to the identity of the proposed successor and to take account
of any reasonable objections which the Borrower may raise to such successor being
appointed.
	 
	 	 	 	Upon any such successor as aforesaid being appointed, the retiring Security Trustee shall
be discharged from any further obligation under the Security Documents (but shall continue
to have the benefit of this clause 16 in respect of any action it has taken or refrained
from taking

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	 	 	 	prior to such discharge) and its successor and each of the other parties to this Agreement
shall have the same rights and obligations among themselves as they would have had if such
successor had been a party to this Agreement in place of the retiring Security Trustee.
The retiring Security Trustee shall (at its own expense) provide its successor with copies
of such of its records as its successor reasonably requires to carry out its functions
under the Security Documents.
	 
	 	16.15	 	Powers and duties of the Security Trustee
	 
	 	16.15.1	 	The Security Trustee shall have no duties, obligations or liabilities to any of the Lenders
and the Agent beyond those expressly stated in any of the Security Documents. Each of the
Agent and the Lenders hereby authorises the Security Trustee to enter into and execute:

	 	(a)	 	each of the Security Documents to which the Security Trustee is or is
intended to be a party; and
	 
	 	(b)	 	any and all such other Security Documents as may be approved by the Agent
in writing (acting on the instructions of the Majority Lenders) for entry into by the
Security Trustee,

	 	 	 	and, in each and every case, to hold any and all security thereby created upon trust for
the Lenders and the Agent for the time being in the manner contemplated by this Agreement.
	 
	 	16.15.2	 	Subject to clause 16.15.3 the Security Trustee may, with the prior consent of the Majority
Lenders communicated in writing by the Agent, concur with any of the Security Parties to:

	 	(a)	 	amend, modify or otherwise vary any provision of the Security Documents to
which the Security Trustee is or is intended to be a party; or
	 
	 	(b)	 	waive breaches of, or defaults under, or otherwise excuse performance of,
any provision of the Security Documents to which the Security Trustee is or is
intended to be a party; or
	 
	 	(c)	 	give any consents to any Security Party in respect of any provision of any
Security Document

	 	 	 	Any such action so authorised and effected by the Security Trustee shall be promptly
notified to the Lenders and the Agent by the Security Trustee and shall be binding on the
other Banks.

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	 	16.15.3	 	The Security Trustee shall not concur with any Security Party with respect to any of the
matters described in clause 16.11.4 without the consent of the Lenders communicated in writing
by the Agent.
	 
	 	16.15.4	 	The Security Trustee shall (subject to the other provisions of this clause 16) take such
action or, as the case may be, refrain from taking such action, with respect to any of its
rights, powers and discretions as Security Trustee and trustee, as the Agent may direct.
Subject as provided in the foregoing provisions of this clause, unless and until the Security
Trustee has received such instructions from the Agent, the Security Trustee may, but shall not
be obliged to, take (or refrain from taking) such action under or pursuant to the Security
Documents referred to in clause 16.14 as the Security Trustee shall deem advisable in the best
interests of the Banks provided that (for the avoidance of doubt), to the extent that this
clause might otherwise be construed as authorising the Security Trustee to take, or refrain
from taking, any action of the nature referred to in clause 16.15.2 — and for which the prior
consent of the Lenders is expressly required under clause 16.15.3 — clauses 16.15.2 and
16.15.3 shall apply to the exclusion of this clause.
	 
	 	16.15.5	 	None of the Lenders nor the Agent shall have any independent power to enforce any of the
Security Documents referred to in clause 16.14 or to exercise any rights, discretions or
powers or to grant any consents or releases under or pursuant to such Security Documents or
any of them or otherwise have direct recourse to the security and/or guarantees constituted by
such Security Documents or any of them except through the Security Trustee.
	 
	 	16.15.6	 	For the purpose of this clause 16, the Security Trustee may, rely and act in reliance upon
any information from time to time furnished to the Security Trustee by the Agent (whether
pursuant to clause 16.15.7 or otherwise) unless and until the same is superseded by further
such information, so that the Security Trustee shall have no liability or responsibility to
any party as a consequence of placing reliance on and acting in reliance upon any such
information unless the Security Trustee has actual knowledge that such information is
inaccurate or incorrect.
	 
	 	16.15.7	 	Without prejudice to the foregoing each of the Agent and the Lenders (whether directly or
through the Agent) shall provide the Security Trustee with such written information as it may
reasonably require for the purpose of carrying out its duties and obligations under the
Security Documents referred to in clause 16.14.

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	 	16.16	 	Trust provisions
	 
	 	16.16.1	 	The trusts constituted or evidenced in or by this Agreement and the Trust Deed shall remain
in full force and effect until whichever is the earlier of:

	 	(a)	 	the expiration of a period of eighty (80) years from the date of this
Agreement; and
	 
	 	(b)	 	receipt by the Security Trustee of confirmation in writing by the Agent
that there is no longer outstanding any Indebtedness (actual or contingent) which is
secured or guaranteed or otherwise assured by or under any of the Security Documents,

	 	 	 	and the parties to this Agreement declare that the perpetuity period applicable to this
Agreement and the trusts declared by the Trust Deed shall for the purposes of the
Perpetuities and Accumulations Act 1964 be the period of eighty (80) years from the date
of this Agreement.
	 
	 	16.16.2	 	In its capacity as trustee in relation to the Security Documents specified in clause 16.14,
the Security Trustee shall, without prejudice to any of the powers, discretions and immunities
conferred upon trustees by law (and to the extent not inconsistent with the provisions of any
of those Security Documents), have all the same powers and discretions as a natural person
acting as the beneficial owner of such property and/or as are conferred upon the Security
Trustee by any of those Security Documents.
	 
	 	16.16.3	 	It is expressly declared that, in its capacity as trustee in relation to the Security
Documents specified in clause 16.14, the Security Trustee shall be entitled to invest moneys
forming part of the security and which, in the opinion of the Security Trustee, may not be
paid out promptly following receipt in the name or under the control of the Security Trustee
in any of the investments for the time being authorised by law for the investment by trustees
of trust moneys or in any other property or investments whether similar to the aforesaid or
not or by placing the same on deposit in the name or under the control of the Security Trustee
as the Security Trustee may think fit without being under any duty to diversify its
investments and the Security Trustee may at any time vary or transpose any such property or
investments for or into any others of a like nature and shall not be responsible for any loss
due to depreciation in value or otherwise of such property or investments. Any investment of
any part or all of the security may, at the discretion of the Security Trustee, be made or
retained in the names of nominees.

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	 	16.17	 	Independent action by Banks
	 
	 	 	 	None of the Banks shall enforce, exercise any rights, remedies or powers or grant any
consents or releases under or pursuant to, or otherwise have a direct recourse to the
security and/or guarantees constituted by any of the Security Documents without the prior
written consent of the Majority Lenders but, provided such consent has been obtained, it
shall not be necessary for any other Bank to be joined as an additional party in any
Proceedings for this purpose.
	 
	 	16.18	 	Common Agent and Security Trustee
	 
	 	 	 	The Agent and the Security Trustee have entered into the Security Documents in their
separate capacities (a) as agent for the Lenders under and pursuant to this Agreement (in
the case of the Agent) and (b) as Security Trustee and trustee for the Lenders and the
Agent under and pursuant to this Agreement, to hold the guarantees and/or security created
by the Security Documents specified in clause 16.14 on the terms set out in such Security
Documents (in the case of the Security Trustee). If and when the Agent and the Security
Trustee are the same entity and any Security Document provides for the Agent to
communicate with or provide instructions to the Security Trustee (and vice versa), all
parties to this Agreement agree that any such communications or instructions on such
occasions are unnecessary and are hereby waived.
	 
	 	16.19	 	Co-operation to achieve agreed priorities of application
	 
	 	 	 	The Lenders and the Agent shall co-operate with each other and with the Security Trustee
and any receiver under the Security Documents in realising the property and assets subject
to the Security Documents and in ensuring that the net proceeds realised under the
Security Documents after deduction of the expenses of realisation are applied in
accordance with clause 13.1.
	 
	 	16.20	 	The Prompt distribution of proceeds
	 
	 	 	 	Moneys received by any of the Banks (whether from a receiver or otherwise) pursuant to the
exercise of (or otherwise by virtue of the existence of) any rights and powers under or
pursuant to any of the Security Documents shall (after providing for all costs, charges,
expenses and liabilities and other payments ranking in priority) be paid to the Agent for
distribution (in the case of moneys so received by any of the Banks other than the Agent
or the Security Trustee) and shall be distributed by the Agent or, as the case may be, the
Security

85

 

	 	 	 	Trustee (in the case of moneys so received by the Agent or, as the case may be, the
Security Trustee) in each case in accordance with clause 13.1. The Agent or, as the case
may be, the Security Trustee shall make each such application and/or distribution as soon
as is practicable after the relevant moneys are received by, or otherwise become available
to, the Agent or, as the case may be, the Security Trustee save that (without prejudice to
any other provision contained in any of the Security Documents) the Agent or, as the case
may be, the Security Trustee (acting on the instructions of the Majority Lenders) or any
receiver may credit any moneys received by it to a suspense account for so long and in
such manner as the Agent or such receiver may from time to time determine with a view to
preserving the rights of the Agent and/or the Security Trustee and/or the Account Bank
and/or the Arrangers and/or the Lenders or any of them to provide for the whole of their
respective claims against the Borrower or any other person liable.
	 
	 	16.21	 	Reconventioning
	 
	 	 	 	After consultation with the Borrower and the Lenders and notwithstanding clause 16.11, the
Agent shall be entitled to make such amendments to this Agreement as it may determine to
be necessary to take account of any changes in market practices as a consequence of the
European Monetary Union (whether as to the settlement or rounding of obligations, business
days, the calculation of interest or otherwise whatsoever). So far as possible such
amendments shall be such as to put the parties in the same position as if the event or
events giving rise the need to amend this Agreement had not occurred. Any amendment so
made to this Agreement by the Agent shall be promptly notified to the other parties hereto
and shall be binding on all parties hereto.
	 
	 	16.22	 	Exclusivity
	 
	 	 	 	Without prejudice to the Borrower’s rights, in certain instances, to give their consent
thereunder, clauses 15 and 16 are for the exclusive benefit of the Banks.
	 
	 	17	 	NOTICES AND OTHER MATTERS
	 
	 	17.1	 	Notices
	 
	 	17.1.1	 	unless otherwise specifically provided herein, every notice under or in connection with this
Agreement shall be given in English by letter delivered personally and/or sent by post and/or
transmitted by fax and/or electronically;

86

 

	 	17.1.2	 	in this clause “notice” includes any demand, consent, authorisation, approval, instruction,
certificate, request, waiver or other communication.
	 
	 	17.2	 	Addresses for communications, effective date of notices
	 
	 	17.2.1	 	Subject to clause 17.2.2, clause 17.2.5 and 17.3 notices to the Borrower shall be deemed to
have been given and shall take effect when received in full legible form by the Borrower at
the address and/or the fax number appearing below (or at such other address or fax number as
the Borrower may hereafter specify for such purpose to the Agent by notice in writing);

	 	 	 	 	 

	 

	 	Address
	 	c/o Navios ShipManagement Inc.

85 Akti Miaouli

Piraeus

Greece
	 
	 	 	 	 
	 

	 	Fax no:
	 	+ 30 210 453 2070

	 	17.2.2	 	notwithstanding the provisions of clause 17.2.1 or clause 17.2.5, a notice of Default
and/or a notice given pursuant to clause 10.2 or clause 10.3 to the Borrower shall be deemed
to have been given and shall take effect when delivered, sent or transmitted by the Banks or
any of them to the Borrower to the address or fax number referred to in clause 17.2.1;
	 
	 	17.2.3	 	subject to clause 17.2.5, notices to the Payment Agent and/or the Agent and/or an Arranger
and/or Account Bank and/or Security Trustee shall be deemed to be given, and shall take
effect, when received in full legible form by the Payment Agent and/or the Agent at the
address and/or the fax number address appearing below (or at any such other address or fax
number as the Payment Agent and/or the Agent (as appropriate) may hereafter specify for such
purpose to the Borrower and the other Lenders by notice in writing);

	 	 	 	 	 

	 

	 	Agent:	 	 
	 
	 	 	 	 
	 

	 	For Credit matters:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	DVB Bank SE

Platz der Republik 6,

60325 Frankfurt-Am-Main

Germany
	 
	 	 	 	 
	 

	 	with a copy to:
	 	DVB Bank SE
	 

	 	 	 	95 Akti Miaouli

87

 

	 	 	 	 	 

	 

	 	 	 	Piraeus 185 38
	 

	 	 	 	Greece
	 
	 	 	 	 
	 

	 	Attn:
	 	Dry Bulk Group:
	 

	 	Fax no:
	 	+30210 4557420
	 
	 	 	 	 
	 	 	For Loan Administration matters:
	 
	 	 	 	 
	 

	 	Address:
	 	DVB Bank SE
	 

	 	 	 	Park House
	 

	 	 	 	6th floor
	 

	 	 	 	16-18 Finsbury Circus
	 

	 	 	 	London EC2M 7EB
	 
	 	 	 	 
	 

	 	Attn:
	 	Loan Administration Department
	 

	 	Fax no:
	 	+44 207 256 4352
	 
	 	 	 	 
	 

	 	Payment Agent:	 	 
	 
	 

	 	Address:
	 	Commerzbank AG
	 

	 	 	 	Domstrasse 18,
	 

	 	 	 	D-20095 Hamburg
	 

	 	 	 	Germany
	 
	 	 	 	 
	 

	 	Attn:
	 	Global Shipping
	 

	 	Fax:
	 	+4940 37699 — 649
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Commerzbank AG
	 

	 	 	 	Domstrasse 18,
	 

	 	 	 	D-20095 Hamburg
	 

	 	 	 	Germany
	 
	 	 	 	 
	 

	 	Attn:
	 	Loans Administration
	 

	 	Fax:
	 	+4940 37699 — 659

	 	17.2.4	 	subject to clause 17.2.5 and 17.3, notices to a Lender shall be deemed to be given and shall
take effect when received in full legible form by such Lender at its address and/or fax number
specified in schedule 1 or in any relevant Transfer Certificate (or at any other address or
fax number as such Lender may hereafter specify for such purpose to the other Banks); and
	 
	 	17.2.5	 	if under clause 17.2.1 or clause 17.2.3 a notice would be deemed to have been given and
effective on a day which is not a working day in the place of receipt or is outside the normal
business hours in the place of receipt, the notice shall be deemed to have been given and to
have taken effect at the opening of business on the next working day in such place.

88

 

	17.3	 	Electronic Communication
	 
	17.3.1	 	Any communication to be made by and/or between the Banks or any of them and the Security
Parties or any of them under or in connection with the Security Documents or any of them may
be made by electronic mail or other electronic means, if and provided that all such parties:

	 	(a)	 	notify each other in writing of their electronic mail address and/or any
other information required to enable the sending and receipt of information by that
means; and
	 
	 	(b)	 	notify each other of any change to their electronic mail address or any
other such information supplied by them.

	17.3.2	 	Any electronic communication made by and/or between the Banks or any of them and the
Security Parties or any of them will be effective only when actually received in readable form
and, in the case of any electronic communication made by the Borrower or the Lenders to the
Agent, only if it is addressed in such manner as the Agent shall specify for this purpose
	 
	17.4	 	Notices through the Agent
	 
	 	 	Every notice under this Agreement or (unless otherwise provided therein) any other
Security Document to be given by the Borrower to any other party, shall be given to the
Agent for onward transmission as appropriate and every notice under this Agreement to be
given to the Borrower shall (except otherwise provided in the Security Documents) be given
to the Borrower by the Agent.
	 
	18	 	GOVERNING LAW
	 
	 	 	This Agreement is governed by and shall be construed in accordance with English law.
	 
	19	 	JURISDICTION
	 
	19.1	 	Exclusive Jurisdiction
	 
	 	 	For the benefit of the Banks, and subject to clause 19.4 below, the Borrower hereby
irrevocably agrees that the courts of England shall have exclusive jurisdiction:

89

 

	19.1.1	 	to settle any disputes or other matters whatsoever arising under or in connection with this
Agreement and any disputes or other such matters arising in connection with the negotiation,
validity or enforceability of this Agreement or any part thereof, whether the alleged
liability shall arise under the laws of England or under the laws of some other country and
regardless of whether a particular cause of action may successfully be brought in the English
courts; and
	 
	19.1.2	 	to grant interim remedies or other provisional or protective relief.
	 
	19.2	 	Submission and service of process
	 
	 	 	The Borrower accordingly irrevocably and unconditionally submits to the jurisdiction of
the English courts. Without prejudice to any other mode of service the Borrower:
	 
	19.2.1	 	irrevocably empowers and appoints HFW Nominees Ltd at present of Marlow House, Lloyds
Avenue, London EC3N 3AL, England as its agent to receive and accept on its behalf any process
or other document relating to any proceedings before the English courts in connection with
this Agreement;
	 
	19.2.2	 	agrees to maintain such an agent for service of process in England from the date hereof
until the end of the Facility Period;
	 
	19.2.3	 	agrees that failure by a process agent to notify the Borrower of service of process will not
invalidate the proceedings concerned;
	 
	19.2.4	 	without prejudice to the effectiveness of service of process on its agent under clause
19.2.1 above but as an alternative method, consents to the service of process relating to any
such proceedings by mailing or delivering a copy of the process to its address for the time
being applying under clause 17.2;
	 
	19.2.5	 	agrees that if the appointment of any person mentioned in clause 19.2.1 ceases to be
effective, the Borrower shall immediately appoint a further person in England to accept
service of process on its behalf in England and, failing such appointment within seven (7)
days the Lender shall thereupon be entitled and is hereby irrevocably authorised by the
Borrower in those circumstances to appoint such person by notice to the Borrower.
	 
	19.3	 	Forum non conveniens and enforcement abroad
	 
	 	 	The Borrower:

90

 

	19.3.1	 	waives any right and agrees not to apply to the English court or other court in any
jurisdiction whatsoever to stay or strike out any proceedings commenced in England on the
ground that England is an inappropriate forum and/or that Proceedings have been or will be
started in any other jurisdiction in connection with any dispute or related matter falling
within clause 19.1; and
	 
	19.3.2	 	agrees that a judgment or order of an English court in a dispute or other matter falling
within clause 19.1 shall be conclusive and binding on the Borrower and may be enforced against
it in the courts of any other jurisdiction.
	 
	19.4	 	Right of Lender, but not Borrower, to bring proceedings in any other jurisdiction
	 
	19.4.1	 	Nothing in this clause 19 limits the right of any Lender to bring Proceedings, including
third party proceedings, against any one or more Borrower, or to apply for interim remedies,
in connection with this Agreement in any other court and/or concurrently in more than one
jurisdiction;
	 
	19.4.2	 	the obtaining by any Lender of judgment in one jurisdiction shall not prevent such Lender
from bringing or continuing proceedings in any other jurisdiction, whether or not these shall
be founded on the same cause of action.
	 
	19.5	 	Enforceability despite invalidity of Agreement
	 
	 	 	Without prejudice to the generality of clause 13.9, the jurisdiction agreement contained
in this clause 19 shall be severable from the rest of this Agreement and shall remain
valid, binding and in full force and shall continue to apply notwithstanding this
Agreement or any part thereof being held to be avoided, rescinded, terminated, discharged,
frustrated, invalid, unenforceable, illegal and/or otherwise of no effect for any reason.
	 
	19.6	 	Effect in relation to claims by and against non-parties
	 
	19.6.1	 	For the purpose of this clause “Foreign Proceedings” shall mean any Proceedings except
proceedings brought or pursued in England arising out of or in connection with (i) or in any
way related to any of the Security Documents or any assets subject thereto or (ii) any action
of any kind whatsoever taken by any Bank pursuant thereto or which would, if brought by any
one or more of the Borrower against the Lender, have been required to be brought in the
English courts;

91

 

	19.6.2	 	no Borrower shall bring or pursue any Foreign Proceedings against any Bank and shall use
its best endeavours to prevent persons not party to this Agreement from bringing or pursuing
any Foreign Proceedings against any Bank;
	 
	19.6.3	 	If, for any reason whatsoever, any Security Party and/or any person connected howsoever with
any Security Party (including but not limited to any general or limited partners of the
Borrower) brings or pursues against any Bank any Foreign Proceedings, the Borrower shall
indemnify such Bank on demand in respect of any and all claims, losses, damages, demands,
causes of action, liabilities, costs and expenses (including, but not limited to, legal costs)
of whatsoever nature howsoever arising from or in connection with such Foreign Proceedings
which such Bank (or the Agent on its behalf) certifies as having been incurred by it;

the Banks and the Borrower hereby agree and declare that the benefit of this clause 19 shall extend
to and may be enforced by any officer, employee, agent or business associate of any of the Banks
against whom the Borrower brings a claim in connection howsoever with any of the Security Documents
or any assets subject thereto or any action of any kind whatsoever taken by, or on behalf of or for
the purported benefit of any Bank pursuant thereto or which, if it were brought against the Lender,
would fall within the material scope of clause 19.1. In those circumstances this clause 19 shall
be read and construed as if references to any Bank were references to such officer, employee, agent
or business associate, as the case may be.

92

 

Execution Pages

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

	 	 	 	 	 

	SIGNED as a deed for and on behalf of

	 	)
	NAVIOS MARITIME PARTNERS L.P.

	 	)
	By NAVIOS GP L.L.C., its sole general partner

	 	)  /s/ Alexandros Laios
	By NAVIOS MARITIME HOLDINGS INC.,

	 	)
	its sole member by
Alexandros Laios
	 	)
	(as Borrower under and pursuant to

	 	)
	a power of attorney dated

	 	) /s/ Maria Koutsoukou
	           25th May 2011) in the presence of
Maria Koutsoukou
	 	)
	 
	 	
	SIGNED by
 Robin Parry
	 	)
	for and on behalf of

	 	)
	COMMERZBANK AG

	 	)
	(as a Lender) in the presence of
 Victoria Liaou
	 	) /s/ Robin Parry
	 
	 	
	/s/
Victoria Liaou
	 	
	SIGNED by
 Robin Parry	 	)
	for and on behalf of

	 	)
	DVB BANK SE

	 	) /s/ Robin Parry
	(as a Lender) in the presence of
 Victoria Liaou
	 	)
	 
	 	
	/s/
Victoria Liaou
	 	
	SIGNED by
 Robin Parry
	 	)
	for and on behalf of

	 	)
	DVB BANK SE

	 	)  /s/ Robin Parry
	(as Joint-Arranger, Agent and

	 	)
	Security Trustee) in the presence of
 Victoria Liaou
	 	)
	 
	 	
	/s/
Victoria Liaou
	 	
	SIGNED by
 Robin Parry

	 	)
	for and on behalf of

	 	)
	COMMERZBANK AG

	 	) /s/ Robin Parry
	(as Payment Agent, Joint-Arranger and Account

	 	)
	Bank) in the presence of
 Victoria Liaou
	 	)
	 
	 	 
	/s/
Victoria Liaou
	 	

93exv10w2

Exhibit 10.2

Date 31 May 2011

NAVIOS MARITIME PARTNERS L.P.

as Borrower

COMMERZBANK AG and DVB BANK SE

as Lenders

DVB BANK SE

as Swap Bank, Joint-Arranger, Agent,

and Security Trustee

and

COMMERZBANK AG

as Joint-Arranger, Payment Agent,

Account Bank and Swap Bank

 

SEVENTH SUPPLEMENTAL AGREEMENT

 

in relation to a Facility Agreement dated 15 November 2007,

as amended by supplemental agreements dated 25 June 2008,

30 January 2009, 11 January 2010,

30 March 2010, 1 June 2010 and

13 December 2010

INCE & CO

PIRAEUS

 

 

	 	 	 	 	 
	Index	 	 
	 
	Clause	 	Page No
	1 INTERPRETATION

	 	 	3	 
	2 UNDERTAKINGS

	 	 	4	 
	3 REPRESENTATIONS AND WARRANTIES

	 	 	5	 
	4 AMENDMENTS TO FACILITY AGREEMENT AND OTHER SECURITY DOCUMENTS

	 	 	5	 
	5 FURTHER ASSURANCES

	 	 	6	 
	6 NOTICES

	 	 	6	 
	7 SUPPLEMENTAL

	 	 	6	 
	8 LAW AND JURISDICTION

	 	 	7	 

2

 

THIS
AGREEMENT is made on 31 May 2011

BETWEEN

	(1)	 	NAVIOS MARITIME PARTNERS L.P. as Borrower;
	 
	(2)	 	COMMERZBANK AG and DVB BANK SE as Lenders;
	 
	(3)	 	DVB BANK SE as Swap Bank, Joint-Arranger, Agent and Security Trustee; and
	 
	(4)	 	COMMERZBANK AG as Joint-Arranger, Payment Agent, Account Bank and Swap Bank.

BACKGROUND

	(A)	 	By a Facility Agreement dated 15 November 2007 as amended by supplemental agreements dated 25
June 2008, 30 January 2009, 11 January 2010, 30 March 2010, 1 June 2010 and 13 December 2010
and made between the parties hereto the Lenders have made available to the Borrower a loan of
up to USD434,000,000.
	 
	(B)	 	The Borrower has made a request to the Lenders that they agree to amend certain terms of the
Facility Agreement, and this Agreement sets out the terms and conditions on which the Lenders
agree thereto.

IT IS AGREED as follows:

	1	 	INTERPRETATION
	 
	1.1	 	Defined expressions. Words and expressions defined in the Facility Agreement and the other
Security Documents shall have the same meanings when used in this Agreement unless the context
otherwise requires.
	 
	1.2	 	Definitions. In this Agreement, unless the contrary intention appears:
	 
	 	 	“Facility Agreement” means the Facility Agreement dated 15 November 2007 (as amended)
referred to in Recital (A);
	 
	 	 	“Kohylia” means Kohylia Shipmanagement S.A., a corporation incorporated in the Marshall
Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro, Marshall Islands, MH96960;
	 
	 	 	“KO Guarantees” means each of the guarantee of the obligations of the Borrower under
the Facility Agreement to be made by the KO Guarantors in favour of the Security Trustee
in such form as the Agent and the Majority Lenders may in their sole discretion require
and, in the singular, means either of them;
	 
	 	 	“KO Guarantors” means, together, Kohylia and Orbiter; and
	 
	 	 	“Orbiter” means Orbiter Shipping Corp., a corporation incorporated in the Marshall Islands
whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands, MH96960.
	 
	1.3	 	Application of construction and Interpretation provisions of Facility Agreement. Clauses 1.3
to 1.6 (inclusive) of the Facility Agreement apply, with any necessary modifications, to this
Agreement.

3

 

	2	 	UNDERTAKINGS
	 
	2.1	 	Undertakings

	 	2.1.1.	 	The Borrower shall forthwith deliver to the Agent:     
	 
	 	(a)	 	Corporate documents
	 
	 	 	 	Certified Copies of all documents which evidence or relate to the constitution of
the Borrower and each KO Guarantor and its current corporate existence;
	 
	 	(b)	 	Corporate authorities

	 	(i)	 	Certified Copies of resolutions of the directors of the
Borrower and each KO Guarantor approving such of this Agreement and each of
the KO Guarantee to which it is a party and authorising the execution and
delivery thereof and performance of its obligations thereunder, additionally
certified by an officer of the Borrower and such KO Guarantor as having been
duly passed at a duly convened meeting of the directors of the Borrower and
such KO Guarantor and not having been amended, modified or revoked and being
in full force and effect; and
	 
	 	(ii)	 	originals of any powers of attorney issued by the Borrower
and each KO Guarantors pursuant to such resolutions;

	 	(c)	 	Required Authorisations
	 
	 	 	 	a certificate that there are no Required Authorisations or that there are no
Required Authorisations except those described in such certificate and Certified
Copies of which as duly executed (including any conditions and/or documents
ancillary thereto) are appended thereto.
	 
	 	(d)	 	Certificate of incumbency
	 
	 	 	 	a list of directors and officers of the Borrower and each KO Guarantor specifying
the names and positions of such persons, certified by an officer of the Borrower
and such KO Guarantor to be true, complete and up to date;
	 
	 	(e)	 	KO Guarantees
	 
	 	 	 	the KO Guarantees duly executed and delivered;
	 
	 	(f)	 	Laws of the Marshall Islands: opinion
	 
	 	 	 	an opinion of Reeder Simpson, special legal adviser to the Lenders on Marshall
Islands law;
	 
	 	(g)	 	Endorsement
	 
	 	 	 	the endorsement at the end of this Agreement signed by each Security Party (other
than the Borrower and the KO Guarantors);
	 
	 	(h)	 	London agent

4

 

	 	 	 	documentary evidence that the agent for service of process named in Clause 19 of
the Facility Agreement has accepted its appointment; and
	 
	 	(i)	 	Further opinions, etc
	 
	 	 	 	any further opinions, consents, agreements and documents in connection with this
Agreement and the Security Documents which the Agent may request by notice to the
Borrower.

	3	 	REPRESENTATIONS AND WARRANTIES
	 
	3.1	 	Repetition of Facility Agreement representations and warranties. The Borrower represents and
warrants to each Lender that the representations and warranties in Clause 7 of the Facility
Agreement, as amended and supplemented by this Agreement and updated with appropriate
modifications to refer to this Agreement, remain true and not misleading if repeated on the
date of this Agreement with reference to the circumstances now existing.
	 
	4	 	AMENDMENTS TO FACILITY AGREEMENT AND OTHER SECURITY DOCUMENTS
	 
	4.1	 	Specific amendments to Facility Agreement. With effect on and from the date of this
Agreement, the Facility Agreement shall be, and shall be deemed by this Agreement to be,
amended as follows:
	 
	(a)	 	by adding in Clause 1.2 thereof each of the definitions in Clause 1.2 (other than the
definition of “Facility Agreement”);
	 
	(b)	 	by adding as new items (n) and (o) in the list of companies in the definition of
“Guarantors” in Clause 1.2 the words “(p) Kohylia and (q) Orbiter”;
	 
	(c)	 	by adding after the words “the Advance H Security Documents” in the definition of
“Security Documents” in Clause 1.2 the words “, the KO Guarantees”;
	 
	(d)	 	by construing references throughout to “this Agreement”, “hereunder” and other like
expressions as if the same referred to the Facility Agreement as amended and supplemented by
this Agreement.
	 
	4.2	 	Amendments to Security Documents. With effect on and from the date of this Agreement each of
the Security Documents other than the Facility Agreement, shall be, and shall be deemed by
this Agreement to be, amended so that the definition of, and references throughout each of the
Security Documents to, the Facility Agreement shall be construed as if the same referred to
the Facility Agreement as amended and supplemented by this Agreement or the relevant KO
Guarantee.
	 
	4.3	 	Security Documents to remain in full force and effect.
	 
	 	 	The Security Documents shall remain in full force and effect as amended and supplemented
by:

	 	(a)	 	the amendments to the Security Documents contained or referred to in Clauses
4.1 and 4.2; and
	 
	 	(b)	 	such further or consequential modifications as may be necessary to give full
effect to the terms of this Agreement.

5

 

	5	 	FURTHER ASSURANCES
	 
	5.1	 	Borrower’s obligation to execute further documents etc. The Borrower shall, and shall
procure that any other party to any Security Document shall:

	 	(a)	 	execute and deliver to the Agent (or as it may direct) any assignment,
mortgage, power of attorney, proxy or other document, governed by the law of England
or such other country as the Agent may, in any particular case, specify,
	 
	 	(b)	 	effect any registration or notarisation, give any notice or take any other
step, which the Agent may, by notice to the Borrower or other party, reasonably
specify for any of the purposes described in Clause 5.2 or for any similar or related
purpose.

	5.2	 	Purposes of further assurances. Those purposes are:

	 	(a)	 	validly and effectively to create any Security Interest or right of any kind
which the Lenders intended should be created by or pursuant to the Facility Agreement
or any other Security Document, each as amended and supplemented by this Agreement;
and
	 
	 	(b)	 	implementing the terms and provisions of this Agreement.

	5.3	 	Terms of further assurances. The Agent may specify the terms of any document to be executed
by the Borrower or any other party under Clause 5.1, and those terms may include any
covenants, powers and provisions which the Agent reasonably considers appropriate to protect
its interests.
	 
	5.4	 	Obligation to comply with notice. The Borrower shall comply with a notice under Clause 5.1
by the date specified in the notice.
	 
	5.5	 	Additional corporate action. At the same time as the Borrower or any other party delivers to
the Agent any document executed under Clause 5.1(a), the Borrower or such other party shall
also deliver to the Agent a certificate signed by 2 of the Borrower’s or that other party’s
directors which shall:

	 	(a)	 	set out the text of a resolution of the Borrower’s or that other party’s
directors specifically authorising the execution of the document specified by the
Agent, and
	 
	 	(b)	 	state that either the resolution was duly passed at a meeting of the
directors validly convened and held throughout which a quorum of directors entitled
to vote on the resolution was present or that the resolution has been signed by all
the directors and is valid under the Borrower’s or that other party’s articles of
association or other constitutional documents.

	6	 	NOTICES
	 
	6.1	 	General. The provisions of clause 17 (Notices and other matters) of the Facility Agreement,
as amended and supplemented by this Agreement, shall apply to this Agreement as if they were
expressly incorporated in this Agreement with any necessary modifications.
	 
	7	 	SUPPLEMENTAL
	 
	7.1	 	Counterparts. This Agreement may be executed in any number of counterparts.

6

 

	7.2	 	Third party rights. A person who is not a party to this Agreement has no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of
this Agreement.
	 
	8	 	LAW AND JURISDICTION
	 
	8.1	 	Governing law. This Agreement and any non-contractual obligations arising out of or in
connection with it shall be governed by and construed in accordance with English law.
	 
	8.2	 	Incorporation of the Facility Agreement provisions. The provisions of Clauses 18 and 19
(Governing Law and Jurisdiction) of the Facility Agreement, as amended and supplemented by
this Agreement, shall apply to this Agreement as if they were expressly incorporated in this
Agreement with any necessary modifications.

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

	 	 	 	 	 	 	 
	SIGNED as a deed by  Vasiliki Papaefthymiou

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	/s/ Vasiliki Papaefthymiou
	NAVIOS MARITIME PARTNERS L.P.

	 	 	)	 	 	 
	(as Borrower under and pursuant to

	 	 	)	 	 	 
	a power of attorney dated

	 	 	)	 	 	 
	25th
May 2011)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED
by Robin Parry

	 	 	)	 	 	 
	for and on behalf of

COMMERZBANK AG

	 	 	)

)	 	 	/s/ Robin Parry 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Robin Parry

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	/s/ Robin Parry 
	DVB BANK SE

	 	 	)	 	 	 
	(as a Lender)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Robin Parry

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	/s/ Robin Parry 
	DVB BANK SE

	 	 	)	 	 	 
	(as Joint-Arranger, Agent, Swap

	 	 	)	 	 	 
	Bank and Security Trustee)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by Robin Parry

	 	 	)	 	 	 
	for and on behalf of

	 	 	)	 	 	/s/ Robin Parry 
	COMMERZBANK AG

	 	 	)	 	 	 
	(as Joint-Arranger, Account Bank,

	 	 	)	 	 	 
	Payment Agent and Swap Bank)

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Witness to all the above

	 	 	)	 	 	/s/ Victoria Liaou
	Signatures: /s/
Victoria Liaou

	 	 	)	 	 	 
	Name: Victoria Liaou
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	47-49 Akti Miaouli
	 	 	 	 	 	 
	Piraeus, Greece
	 	 	 	 	 	 

7

 

We on this
31st day of May 2011 hereby confirm and acknowledge that we have read and understood the
terms and conditions of the above Supplemental Agreement and agree in all respects to the same and
confirm that the Security Documents to which we are respectively a party shall remain in full force
and effect and shall continue to stand as security for the obligations of the Borrower under the
Facility Agreement (as amended by the Supplemental Agreement) and shall, without limitation, secure
the Loan (as increased or to be increased by the amount of Advance H).

	 	 	 

	/s/
Vasiliki Papaefthymiou

	 	/s/ Vasiliki Papaefthymiou
	 

	 	 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	NAVIOS MARITIME OPERATING L.L.C.

	 	NAVIOS SHIPMANAGEMENT INC.
	 
	 	 
	/s/
Vasiliki Papaefthymiou

	 	/s/ Vasiliki Papaefthymiou
	 

	 	 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	LIBRA SHIPPING ENTERPRISES 

CORPORATION

	 	ALEGRIA SHIPPING CORPORATION
	 
	 	 
	/s/
Vasiliki Papaefthymiou

	 	/s/ Vasiliki Papaefthymiou
	 

	 	 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	FANTASTIKS SHIPPING CORPORATION

	 	FELICITY SHIPPING CORPORATION
	 
	 	 
	/s/
Vasiliki Papaefthymiou

	 	/s/ Vasiliki Papaefthymiou
	 

	 	 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	GALAXY SHIPPING CORPORATION

	 	GEMINI SHIPPING CORPORATION
	 
	 	 
	/s/
Vasiliki Papaefthymiou

	 	/s/ Vasiliki Papaefthymiou
	 

	 	 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	AURORA SHIPPING ENTERPRISES LTD.

	 	HYPERION ENTERPRISES INC.
	 
	 	 
	/s/
Vasiliki Papaefthymiou

	 	/s/ Vasiliki Papaefthymiou
	 

	 	 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	SAGITTARIUS SHIPPING CORPORATION

	 	PALERMO SHIPPING S.A.
	 
	 	 
	/s/
Vasiliki Papaefthymiou

	 	/s/ Vasiliki Papaefthymiou
	 

	 	 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	CHILALI CORP.

	 	SURF MARITIME CO.

8

 

	 	 	 

	/s/ Vasiliki Papaefthymiou
 

	 	/s/ Vasiliki Papaefthymiou 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	ALDEBARAN SHIPPING CORPORATION

	 	PROSPERITY SHIPPING CORPORATION
	 
	 	 
	/s/ Vasiliki Papaefthymiou 

	 	/s/ Vasiliki Papaefthymiou 
	VASILIKI PAPAEFTHYMIOU

	 	VASILIKI PAPAEFTHYMIOU
	For and on behalf of

	 	For and on behalf of
	CUSTOMIZED DEVELOPMENT S.A.

	 	PANDORA MARINE INC.

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]