Document:

Exhibit

Execution Version

Exhibit 4.28
U.S.$90,000,000
FACILITY AGREEMENT 
Dated September 8, 2016
for
SCORPIO TANKERS INC.  
as Borrower
guaranteed by 
STI WEMBLEY SHIPPING COMPANY LIMITED, STI MILWAUKEE SHIPPING COMPANY LIMITED, STI SENECA SHIPPING COMPANY LIMITED and STI ALEXIS SHIPPING COMPANY LIMITED 
as Joint and Several Guarantors
arranged by
DVB BANK SE 
as Arranger
underwritten by
DVB BANK SE 
as Underwriter
with
DVB BANK AMERICA N.V. 
acting as Facility Agent
DVB BANK AMERICA N.V. 
acting as Security Agent

relating to the refinancing of 
STI WEMBLEY, STI MILWAUKEE, STI SENECA and STI ALEXIS

Index
Clause    
	
		
	Section 1
	Interpretation

	1
	Definitions and Interpretation

	Section 2
	The Facility

	2
	The Facility

	3
	Purpose

	4
	Conditions of Drawdown

	Section 3
	Drawdown

	5
	Drawdown

	Section 4
	Repayment, Prepayment and Cancellation

	6
	Repayment

	7
	Prepayment and Cancellation

	Section 5
	Costs of Drawdown

	8
	Interest

	9
	Interest Periods

	10
	Changes to the Calculation of Interest

	11
	Fees

	Section 6
	Additional Payment Obligations

	12
	Tax Gross Up and Indemnities

	13
	Increased Costs

	14
	Other Indemnities

	15
	Mitigation by the Finance Parties

	16
	Costs and Expenses

	Section 7
	Guarantee

	17
	Guarantee and Indemnity

	Section 8
	Representations, Undertakings and Events of Default

	18
	Representations

	19
	Information Undertakings

	20
	Financial Covenants

	21
	General Undertakings

	22
	Insurance Undertakings

	23
	Vessel Undertakings

	24
	Security Cover

	25
	Accounts and application of Earnings

	26
	Events of Default

	Section 9
	Changes to Parties

	27
	Changes to the Lenders

	28
	Changes to the Transaction Obligors

	Section 10
	The Finance Parties

	
		
	29
	The Facility Agent and the Arranger

	30
	The Security Agent

	31
	Conduct of Business by the Finance Parties

	32
	Sharing among the Finance Parties

	Section 11
	Administration

	33
	Payment Mechanics

	34
	Set-Off

	35
	Bail-In

	36
	Notices

	37
	Calculations and Certificates

	38
	Partial Invalidity

	39
	Remedies and Waivers

	40
	Settlement or Discharge Conditional

	41
	Irrevocable Payment

	42
	Amendments and Waivers

	43
	Confidentiality

	44
	Counterparts

	Section 12
	Governing Law and Enforcement

	45
	Governing Law

	46
	Enforcement

	47
	Waiver of Jury Trial

	48
	PATRIOT Act Notice

Execution
	
	
	Execution Pages

Schedules
	
	
	Schedule 1 The Parties

	Part A The Obligors

	Part B The Original Lenders

	Part C The Servicing Parties

	Schedule 2 Conditions Precedent

	Part A Initial Conditions Precedent

	Part B Conditions Precedent to each Advance

	Schedule 3 Requests

	Part A Drawdown Request

	Part B Selection Notice

	Schedule 4 Form of Transfer Certificate

	Schedule 5 Form of Assignment Agreement

	Schedule 6 Form of Compliance Certificate

	Schedule 7 Timetables

	Schedule 8 Classification Society Undertaking

	Part A Letter to Approved Classification Society

	Part B Undertaking from Approved Classification Society

THIS AGREEMENT is made on September 8, 2016
PARTIES
		
	(1)
	SCORPIO TANKERS INC., a corporation incorporated and existing under the laws of the Republic of The Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands as borrower (the “Borrower”)

		
	(2)
	STI WEMBLEY SHIPPING COMPANY LIMITED, a corporation incorporated and existing under the laws of the Republic of The Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands as guarantor (“Guarantor A”)

		
	(3)
	STI MILWAUKEE SHIPPING COMPANY LIMITED, a corporation incorporated and existing under the laws of the Republic of The Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands as guarantor (“Guarantor B”)

		
	(4)
	STI SENECA SHIPPING COMPANY LIMITED, a corporation incorporated and existing under the laws of the Republic of The Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands as guarantor ( “Guarantor C”)

		
	(5)
	STI ALEXIS SHIPPING COMPANY LIMITED, a corporation incorporated and existing under the laws of the Republic of The Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands as guarantor (“Guarantor D” and, together with Guarantor A, Guarantor B and Guarantor C, collectively, the “Guarantors”, and each separately a “Guarantor”)

		
	(6)
	DVB BANK SE, as arranger (the “Arranger”)

		
	(7)
	DVB BANK SE, as underwriter (the “Underwriter”)

		
	(8)
	THE BANKS AND FINANCIAL INSTITUTIONS listed in Part B of Schedule 1 (The Parties) as lenders (the “Original Lenders”)

		
	(9)
	DVB BANK AMERICA N.V., as agent of the other Finance Parties (the “Facility Agent”)

		
	(10)
	DVB BANK AMERICA N.V., as security agent for the Creditor Parties (the “Security Agent”)

OPERATIVE PROVISIONS

2    

SECTION 1 
 
INTERPRETATION

		
	1
	DEFINITIONS AND INTERPRETATION

		
	1.1
	Definitions

In this Agreement:
“Acceptable Accounting Firm” means PricewaterhouseCoopers Auditors, or such other recognized accounting firm as the Agent may, with the consent of the Majority Lenders, approve from time to time in writing, such approval not to be unreasonably withheld.
“Account Bank” means ABN AMRO Bank N.V. acting through its office at Coolsingel 93, 3012 AE Rotterdam, The Netherlands or any other bank or financial institution which at any time, with the Facility Agent’s prior written consent (acting on the instructions of all the Lenders) holds an Earnings Account. 
“Accounts” means:
		
	(a)
	the Earnings Accounts; and 

		
	(b)
	any other accounts opened by an Obligor with the Account Bank, the Facility Agent or the Security Agent for the purposes of the Finance Documents.

“Account Security” means a document creating Security over any Account in agreed form.
“Advance” means the borrowing of all or a part of a Tranche under this Agreement.
“Affiliate” means, as to any person, any other person that directly or indirectly controls, is controlled by or is under common control with such person or is a director or officer of such person, and for purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a person means the possession, directly or indirectly, of the power to vote 20% or more of the Voting Stock of such person or to direct or cause direction of the management and policies of such person, whether through the ownership of Voting Stock, by contract or otherwise.
“Approved Appraiser” means Maritime Strategies International Ltd, Arrow Shipbrokers, Braemar Seascope Ltd., Compass Maritime Services LLC, Fearnleys, Clarkson Platou and any other firm or firms of independent sale and purchase shipbrokers approved in writing by the Facility Agent, acting with the authorization of the Majority Lenders.
“Approved Classification” means, in respect of a Vessel, the classification of that Vessel as at the date of this Agreement, free of any overdue recommendations and conditions affecting such classification, with the Approved Classification Society or the equivalent classification with another Approved Classification Society. 
“Approved Classification Society” means, in respect of a Vessel, DNV GL, Lloyds Register, Korean Register or American Bureau of Shipping or any other generally recognized first class classification society that is a member of IACS that the Facility Agent may (acting with the authorization of the Majority Lenders) approve in writing from time to time. 
“Approved Commercial Manager” means, in respect of a Vessel, as at the date of this Agreement, Scorpio Commercial Management s.a.m., a company incorporated in Monaco whose registered office is at 9, Boulevard Charles III, Monte Carlo, the Principality of Monaco or any other person 

3    

approved in writing by the Facility Agent, acting with the authorization of the Majority Lenders as the commercial manager of that Vessel.
“Approved Flag” means, in respect of a Vessel, the Republic of The Marshall Islands, Republic of Liberia or such other flag as the Facility Agent may, acting with the consent of the Majority Lenders, approve from time to time in writing as the flag on which a Vessel is be registered.
“Approved Insurance Broker” means Aon, Ital Brokers or any firm or firms of insurance brokers approved in writing by the Facility Agent, acting with the authorization of the Lenders.
“Approved Manager” means the Approved Commercial Manager and/or the Approved Technical Manager.
“Approved Pooling Arrangement” means, in relation to a Vessel, any pooling arrangement: 
(a)     proposed by the Guarantor owning that Vessel; 
(b)     run by any Affiliate of the Approved Commercial Manager of that Vessel; and 
		
	(c)
	approved in writing by the Facility Agent (acting on the instructions of the Majority Lenders) prior to that Vessel’s entry into such pooling arrangement. 

“Approved Technical Manager” means, in respect of a Vessel, Scorpio Ship Management s.a.m., a company incorporated in Monaco whose registered office is at 9, Rue de Gabian, Monte Carlo, the Principality of Monaco or any Affiliate thereof, Claus-Peter Offen Tankschiffreederei (GmbH & Co.) KG, a company incorporated in Germany whose registered office is at Bleichenbrücke 10, 20354 Hamburg, Germany, or any other person approved in writing by the Facility Agent, acting with the authorization of the Majority Lenders, as the technical manager of that Vessel.
“Assignment Agreement” means an agreement substantially in the form set out in Schedule 5 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and assignee.
“Authorization” means an authorization, consent, approval, resolution, license, exemption, filing, notarization, legalization or registration.
“Availability Period” means, in respect of each Tranche, the period from and including the date of this Agreement up to October 31, 2016 (or such later date as the Facility Agent, with the consent of the Majority Lenders, agrees with the Borrower).
“Available Commitment” means a Lender’s Commitment minus:
		
	(a)
	the amount of its participation in the outstanding Loan; and

		
	(b)
	in relation to any proposed Drawdown, the amount of its participation in any Advance that is due to be made under the relevant Tranche on or before the proposed Drawdown Date.

“Available Facility” means the aggregate for the time being of each Lender’s Available Commitment.
”Bail-In Action” means the exercise of any Write-down and Conversion Powers.
”Bail-In Legislation” means:

4    

		
	(a)
	in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

		
	(b)
	in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation.

“Balloon Payment” has the meaning given to it in Clause 6.1 (Repayment of the Loan).
“Bank Secrecy Act” means the U.S. Bank Secrecy Act of 1970, as amended.
“Basel III” means:
		
	(a)
	the agreements on capital requirements, leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and “Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

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

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

“Break Costs” means any claim, expense, liability or loss, including a loss of a prospective profit, or any other amount incurred by a Lender:
		
	(a)
	in liquidating or employing deposits from third parties acquired or arranged to fund or maintain all or any part of its Commitment and/or any overdue amount (or aggregate amount which includes its Commitment or any overdue amount); and 

		
	(b)
	in terminating, or otherwise in connection with, any interest and/or currency swap or any other transaction entered into (whether with another legal entity or with another office or department of the Lender concerned) to hedge any exposure arising under this Agreement or that part which the Lender concerned determines is fairly attributable to this Agreement of the amount of the liabilities, expenses or losses (including losses of prospective profits) incurred by it in terminating, or otherwise in connection with, a number of transactions of which this Agreement is one. 

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London, England (with respect to fixing of LIBOR only), New York, New York, Amsterdam, The Netherlands, Frankfurt, Germany and Curaçao.
“Cash Equivalents” means: 

5    

		
	(a)
	securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof);

		
	(b)
	time deposits, certificates of deposit or deposits in the interbank market of any commercial bank of recognized standing organized under the laws of the United States of America, any state thereof or any foreign jurisdiction having capital and surplus in excess of $500,000,000; and

		
	(c)
	such other securities or instruments as the Majority Lenders shall agree in writing;

and in respect of both (a) and (b) above, with a Rating Category of at least “A-” by S&P and “A” by Moody’s (or the equivalent used by another Rating Agency), and in each case having maturities of not more than ninety (90) days from the date of acquisition.
“Change of Control” means:
		
	(a)
	in respect of the Borrower, 

		
	(i)
	a “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), other than any holders of the Borrower’s Equity Interests as at the date of this Agreement, becoming the ultimate “beneficial owner” (as so defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act) of more than 35% of the total voting power of the Voting Stock of the Borrower (calculated on a fully diluted basis); or 

		
	(ii)
	individuals who at the beginning of any period of two consecutive calendar years constituted the Board of Directors or equivalent governing body of the Borrower (together with any new directors (or equivalent) whose election by such Board of Directors or equivalent governing body or whose nomination for election was approved by a vote of at least two-thirds of the members of such Board of Directors or equivalent governing body then still in office who either were members of such Board of Directors or equivalent governing body at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute at least 50% of the members of such Board of Directors or equivalent governing body then in office;

		
	(b)
	in respect of any Guarantor, the occurrence of any act, event or circumstance that without prior written consent of the Majority Lenders results in the Borrower owning directly or indirectly less than 100% of the issued and outstanding Equity Interests in a Guarantor.  

“Charter” means, in respect of a Vessel, any charter, or other contract for its employment, whether or not already in existence.
“Charter Assignment” means, in respect of a Vessel, an assignment of any Charter in excess of 12 months for such Vessel (other than a Charter where the charterer is a member and/or Affiliate of the Group or pursuant to an Approved Pooling Arrangement), in agreed form.  
“Code” means the U.S. Internal Revenue Code of 1986.

6    

“Commercial Management Agreement” means, in respect of a Vessel, the agreement entered into between a Guarantor owning such Vessel and the Approved Commercial Manager regarding the commercial management of that Vessel.
“Commission” or “SEC” means the U.S. Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act.
“Commitment”  means:
		
	(a)
	in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in Part B of Schedule 1 (The Parties) and the amount of any other Commitment transferred to it under this Agreement; and

		
	(b)
	in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.
“Commitment Date” means August 5, 2016. 
“Compliance Certificate” means a certificate in the form set out in Schedule 6 (Form of Compliance Certificate) or in any other form agreed between the Borrower and the Facility Agent.
“Confidential Information” means all information relating to any Obligor, the Group, the Finance Documents or the Facility of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the Facility from either:
		
	(a)
	any member of the Group or any of its advisers; or 

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

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:
		
	(i)
	is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 43 (Confidentiality); or

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

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

“Confidentiality Undertaking” means a confidentiality undertaking in any form agreed between the Borrower and the Facility Agent.

7    

“Consolidated EBITDA” means, for any accounting period, the consolidated net income of the Borrower for that accounting period:
		
	(a)
	plus, to the extent deducted in computing the net income of the Borrower for that accounting period, the sum, without duplication, of:

		
	(i)
	all federal, state, local and foreign income taxes and tax distributions;

		
	(ii)
	Consolidated Net Interest Expense;

		
	(iii)
	depreciation, depletion, amortization of intangibles and other non-cash charges or non-cash losses (including non-cash transaction expenses and the amortization of debt discounts) and any extraordinary losses not incurred in the ordinary course of business;

		
	(iv)
	expenses incurred in connection with a special or intermediate survey of a Fleet Vessel during such period; and

		
	(v)
	any drydocking expenses;

		
	(b)
	minus, to the extent added in computing the consolidated net income of the Borrower for that accounting period, (i) any non-cash income or non-cash gains and (ii) any extraordinary gains on asset sales not incurred in the ordinary course of business.

“Consolidated Funded Debt” means, for any accounting period, the sum of the following for the Borrower determined (without duplication) on a consolidated basis for such period and in accordance with IFRS consistently applied:
		
	(a)
	all Financial Indebtedness; and

		
	(b)
	all obligations to pay a specific purchase price for goods or services whether or not delivered or accepted (including take-or-pay and similar obligations) which in accordance with IFRS would be shown on the liability side of a balance sheet;

provided that balance sheet accruals for future drydock expenses shall not be classified as Consolidated Funded Debt.
“Consolidated Liquidity” means, on a consolidated basis at any time, the sum of (a) cash and (b) Cash Equivalents, in each case held by the Borrower or any of its subsidiaries on a freely available and unencumbered basis.
“Consolidated Net Interest Expense” means the aggregate of all interest, commissions, discounts and other costs, charges or expenses accruing that are due from the Borrower and all of its subsidiaries during the relevant accounting period less (i) commitment fees, (ii) interest income received and (iii) amortization of deferred charges and arrangement fees, determined on a consolidated basis in accordance with IFRS and as shown in the consolidated statements of income for the Borrower.
“Consolidated Tangible Net Worth” means, on a consolidated basis, the total shareholders’ equity (including retained earnings) of the Borrower, minus goodwill and other non-tangible items.
“Consolidated Total Capitalization” means Consolidated Tangible Net Worth plus Consolidated Funded Debt.

8    

“Corresponding Debt” means any amount, other than any Parallel Debt, which an Obligor owes to a Creditor Party under or in connection with the Finance Documents.
“Creditor Party” means each Finance Party from time to time party to this Agreement and any Receiver or Delegate.
“Default” means an Event of Default or a Potential Event of Default.
“Delegate” means any delegate, agent, attorney, co-trustee or other person appointed by the Security Agent.
“Disruption Event” means either or both of:
		
	(a)
	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties or, if applicable, any Obligor; or 

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

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

		
	(ii)
	from communicating with other Parties or, if applicable, any Obligor in accordance with the terms of the Finance Documents,

and which (in either such case) is not caused by, and is beyond the control of, the Party or, if applicable, any Obligor whose operations are disrupted.
“Document of Compliance” has the meaning given to it in the ISM Code.
“dollars” and “$” mean the lawful currency, for the time being, of the U.S.
“Drawdown” means the drawdown of an Advance.
“Drawdown Date” means the date of a Drawdown, being the date on which the relevant Advance is to be made.
“Drawdown Request” means a notice substantially in the form set out in Part A of Schedule 3 (Requests).
“Earnings” means, in respect of a Vessel, all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Guarantor owning that Vessel or the Security Agent and which arise out of the use or operation of that Vessel, including (but not limited to):
		
	(a)
	the following, save to the extent that any of them is, pooled or shared with any other person, pursuant to an Approved Pooling Arrangement:

		
	(i)
	all freight, hire and passage moneys;

9    

		
	(ii)
	compensation payable to the relevant Guarantor or the Security Agent in the event of requisition of that Vessel for hire;

		
	(iii)
	remuneration for salvage and towage services;

		
	(iv)
	demurrage and detention moneys;

		
	(v)
	damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of that Vessel;

		
	(vi)
	all moneys which are at any time payable under any Insurances in relation to loss of hire;

		
	(vii)
	all monies which are at any time payable to the relevant Guarantor in relation to general average contribution; and

		
	(b)
	if and whenever that Vessel is employed on terms whereby any moneys falling within sub-paragraphs (i) to (vi) of paragraph (a) above are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing arrangement which is attributable to that Vessel.

“EEA Member Country” means any member state of the European Union, Iceland, Liechtenstein and Norway.
“Earnings Account” means, in respect of a Vessel, an account in the name of the Guarantor owning that Vessel with the Account Bank with account number 44 92 92 029 (in the case of Vessel A), 41 60 58 434 (in the case of Vessel B), 41 69 27 270 (in the case of Vessel C), and 46 98 67 213 (in the case of Vessel D), or any other account (with the Account Bank, the Agent or with another bank or financial institution acceptable to the Majority Lenders) which is designated by the relevant Guarantor and approved by the Facility Agent as the Earnings Account in respect of that Vessel for the purposes of this Agreement.  
“Earnings Assignment” means, in respect of a Vessel, an assignment of the Earnings and any Requisition Compensation of that Vessel, in agreed form.
“Environmental Approval” means any present or future permit, ruling, variance or other Authorization required under Environmental Laws.
“Environmental Claim” means any claim by any governmental, judicial or regulatory authority or any other person which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to any Environmental Law and, for this purpose, “claim” includes a claim for damages, compensation, contribution, injury, fines, losses and penalties or any other payment of any kind, including in relation to clean-up and removal, whether or not similar to the foregoing; an order or direction to take, or not to take, certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the arrest or attachment of any asset.
“Environmental Incident” means:
		
	(a)
	any release, emission, spill or discharge into or upon the air, sea, land or soils (including the seabed) or surface water of Environmentally Sensitive Material from a Vessel; or

10    

		
	(b)
	any incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged into or upon the air, sea, land or soils (including the seabed) or surface water from a vessel other than a Vessel and which involves a collision between a Vessel and such other vessel or some other incident of navigation or operation, in either case, in connection with which a Vessel is actually or potentially liable to be arrested, attached, detained or injuncted and/or a Vessel and/or any Transaction Obligor and/or any operator or manager of a Vessel is at fault or allegedly at fault or otherwise liable to any legal or administrative action; or

		
	(c)
	any other incident in which Environmentally Sensitive Material is released, emitted, spilled or discharged into or upon the air, sea, land or soils (including the seabed) or surface water otherwise than from a Vessel and in connection with which a Vessel is actually or potentially liable to be arrested and/or where any Transaction Obligor and/or any operator or manager of a Vessel is at fault or allegedly at fault or otherwise liable to any legal or administrative action, other than in accordance with an Environmental Approval.

“Environmental Law” means any present or future law relating to pollution or protection of human health or the environment, to conditions in the workplace, to the carriage, generation, handling, storage, use, release or spillage of Environmentally Sensitive Material or to actual or threatened releases of Environmentally Sensitive Material.
“Environmentally Sensitive Material” means and includes all contaminants, oil, oil products, toxic substances and any other substance (including any chemical, gas or other hazardous or noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous.
“EU Bail-In Legislation Schedule” means the document described as such and published by the Loan Market Association (or any successor person) from time to time.
“Equity Interests” of any person means:
		
	(a)
	any and all shares and other equity interests (including common stock, preferred stock, limited liability company interests and partnership interests) in such person; and

		
	(b)
	all rights to purchase, warrants or options or convertible debt (whether or not currently exercisable), participations or other equivalents of or interests in (however designated) such shares or other interests in such person.

“Equity Proceeds” means the net cash proceeds from the issuance of common or preferred stock of the Borrower. 
“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated and rulings issued thereunder.  
“ERISA Affiliate” means a trade or business (whether or not incorporated) that, together with the Borrower or any Subsidiary of it, would be deemed to be a single employer under Section 414 of the Code.
“ERISA Funding Event” means:
		
	(a)
	any failure by any Plan to satisfy the minimum funding standards (for purposes of Section 412 or 430 of the Code or Section 302 of ERISA), whether or not waived;

11    

		
	(b)
	the filing pursuant to Section 412 of the Code or Section 303 of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan;

		
	(c)
	the failure by the Borrower, any Guarantor or any ERISA Affiliate to make any required contribution to a Multiemployer Plan;

		
	(d)
	a determination that any Plan is, or is expected to be, in “at risk” status (within the meaning of Section 430(i) of the Code);

		
	(e)
	the incurrence by the Borrower, any Guarantor or any ERISA Affiliate of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan;

		
	(f)
	a determination that a Multiemployer Plan is, or is expected to be, insolvent within the meaning of Section 4245 of ERISA, in reorganization within the meaning of Section 4241 of ERISA or in endangered status within the meaning of Section 432 of the Code or Section 305 of ERISA;

		
	(g)
	any Reportable Event; or

		
	(h)
	the existence with respect to any Plan of a non-exempt “prohibited transaction” for purposes of Section 406 of ERISA or Section 4975 of the Code.

“ERISA Termination Event” means:
		
	(a)
	the imposition of any lien in favor of the PBGC on any Plan or Multiemployer Plan, or on any asset of the Borrower, any Guarantor or any ERISA Affiliate in connection with any Plan or Multiemployer Plan;

		
	(b)
	the receipt by the Borrower, any Guarantor or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan or Multiemployer Plan under Section 4042 of ERISA;

		
	(c)
	the receipt by the Borrower, any Guarantor or ERISA Affiliate of any notice that a Multiemployer Plan is in critical status within the meaning of Section 432 of the Code or Section 305 of ERISA;

		
	(d)
	the filing of a notice of intent to terminate a Plan under Section 4041 of ERISA; or

		
	(e)
	the occurrence of any other event or condition which under Section 4042 of ERISA, could reasonably be expected to lead to the termination of, or the appointment of a trustee to administer, any Plan or Multiemployer Plan.

“Event of Default” means any event or circumstance specified as such in Clause 26 (Events of Default).
“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and any successor act thereto, and (unless the context otherwise requires) includes the rules and regulations of the Commission promulgated thereunder.
“Existing Indebtedness” means the outstanding Financial Indebtedness of the Borrower under the Loan Agreement dated July 2, 2013 as amended by a Letter Agreement dated August 19, 2013, a 

12    

Letter Agreement dated September 22, 2014, a First Amendatory Agreement dated November 19, 2014 and a Second Amendatory Agreement dated May 28, 2015, and as may be further amended or supplemented from time to time, among (i) the Borrower, (ii) the companies listed in schedule 10 thereto as joint and several guarantors, (iii) the banks and financial institutions listed in schedule 1 thereto as Lenders, (iv) the banks and financial listed in schedule 2 thereto as Swap Banks, (v) the banks and financial institutions listed therein as Lead Arrangers, (vi) the banks and financial institutions listed therein as Bookrunners, (vii) the banks and financial institutions listed therein as Co-Arranger and (viii) Nordea Bank Finland plc, New York Branch, as Agent and Security Trustee providing for a loan facility in the aggregate principal amount of (originally) up to $525,000,000.
“Executive Order” means an executive order issued by the President of the United States of America.
“Facility” means the term loan facility made available under this Agreement as described in Clause 2 (The Facility).
“Facility Office” means the office or offices notified by a Lender to the Facility Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than 5 Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement.
“FATCA” means:
		
	(a)
	sections 1471 to 1474 of the Code or any associated regulations;

		
	(b)
	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the U.S. and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

		
	(c)
	any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the IRS, the U.S. government or any governmental or taxation authority in any other jurisdiction.

“FATCA Deduction” means a deduction or withholding from a payment under a Finance Document required by FATCA.
“FATCA Exempt Party” means a Party that is entitled to receive payments free from any FATCA Deduction.
“Fee Letter” means any letter or letters dated on or about the date of this Agreement between any of the Arranger, the Underwriter, the Facility Agent and the Security Agent and any Obligor setting out any of the fees referred to in Clause 11 (Fees).
“Finance Document” means:
		
	(a)
	this Agreement;

		
	(b)
	any Fee Letter;

		
	(c)
	the Note;

		
	(d)
	each Drawdown Request;

13    

		
	(e)
	any Security Document;

		
	(f)
	any other document which is executed for the purpose of establishing any priority or subordination arrangement in relation to the Secured Liabilities; or

		
	(g)
	any other document designated as such by the Facility Agent and the Borrower.

“Finance Party” means the Facility Agent, the Security Agent, the Arranger, the Underwriter or a Lender.
“Financial Indebtedness” means 
with respect to any person (the "Debtor") at any date of determination (without duplication):
		
	(a)
	all obligations of the Debtor for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the Debtor;

		
	(b)
	all obligations of the Debtor evidenced by bonds, debentures, notes or other similar instruments;

		
	(c)
	all obligations of the Debtor in respect of any acceptance credit, guarantee or letter of credit facility or equivalent made available to the Debtor (including reimbursement obligations with respect thereto) which in accordance with IFRS would be shown on the liability side of a balance sheet;

		
	(d)
	all obligations of the Debtor to pay the deferred purchase price of property or services, which purchase price is due more than six months after the date of placing such property in service or taking delivery thereto or the completion of such services, except trade payables;

		
	(e)
	all capitalised lease obligations of the Debtor as lessee;

		
	(f)
	 all Financial Indebtedness of persons other than the Debtor secured by a Security on any asset of that person, whether or not such Financial Indebtedness is assumed by the Debtor, provided that the amount of such Financial Indebtedness shall be the lesser of:

		
	(i)
	the fair market value of such asset at such date of determination; and

		
	(ii)
	the amount of such Financial Indebtedness; and

		
	(g)
	all Financial Indebtedness incurred under any guarantee, indemnity or similar obligation to the extent such Financial Indebtedness is guaranteed, secured, expressed to be indemnified by, or otherwise assured by the Debtor.

The amount of Financial Indebtedness of any Debtor at any date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to the contingent obligations set out in paragraphs (f) and (g) above, the maximum liability which would or might arise upon the occurrence of the contingency giving rise to the obligation, as determined in conformity with IFRS, provided that: 
		
	(a)
	the amount outstanding at any time of any Financial Indebtedness issued with an original issue discount shall be deemed to be the face amount of such Financial Indebtedness less 

14    

the remaining unamortised portion of such original issue discount of such Financial Indebtedness at such time; and 
		
	(b)
	the calculation of Financial Indebtedness shall not take into account any liability of the Debtor for taxes. 

“Fiscal Year” means, in relation to any person, each period of one (1) year commencing on January 1 of each year and ending on December 31 of such year in respect of which its accounts are or ought to be prepared.
“Fleet Vessel” means each vessel owned by a wholly owned direct or indirect subsidiary of the Borrower (including, but not limited to, the Vessels). 
“Foreign Pension Plan” means any plan, fund (including without limitation, any superannuation fund) or other similar program established or maintained outside the U.S. by any Obligor or any one or more of its Subsidiaries primarily for the benefit of its or their employees residing outside the U.S., which plan, fund or other similar program provides, or results in, (i) a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and which plan would be covered by the funding requirements of ERISA or the Code but which is not subject to ERISA or the Code, or (ii) retirement income, and which plan is not subject to ERISA or the Code.
“Group” means the Borrower and its Subsidiaries for the time being.
“IACS” means the International Association of Classification Societies. 
“IFRS” means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.
“Indemnified Person” has the meaning given to it in Clause 14.2 (Other indemnities). 
“Insolvency Event” means with respect to any person:
		
	(a)
	such person shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or

		
	(b)
	a proceeding shall have been instituted by or against such person seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property, and solely in case of an involuntary proceeding:

		
	(i)
	such proceeding shall remain undismissed or unstayed for a period of 45 days; or

		
	(ii)
	any of the actions sought in such involuntary proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur.

“Insurances” means, in respect of a Vessel:

15    

		
	(a)
	all policies and contracts of insurance, including entries of that Vessel in any protection and indemnity or war risks association, effected in respect of that Vessel, the Earnings or otherwise in respect of that Vessel whether before, on or after the date of this Agreement; and 

		
	(b)
	all rights and other assets relating to, or derived from, any of such policies, contracts or entries, including any rights to a return of premium and any rights in relation to any claim whether or not the relevant policy, contract of insurance or entry has expired on or before the date of this Agreement.

“Insurance Assignment” means, in respect of a Vessel, an assignment of Insurances, in agreed form. 
“Interest Period” means, in relation to any Advance or the Loan, each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest).
“Interpolated Screen Rate” means, in relation to LIBOR for an Advance, the Loan or any Unpaid Sum, the rate which results from interpolating on a linear basis between:
		
	(a)
	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of such Advance, the Loan or that Unpaid Sum; and

		
	(b)
	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of such Advance, the Loan or that Unpaid Sum,

each as of the Specified Time on the Quotation Day for the currency of the Loan or that Unpaid Sum.
“IRS” means the U.S. Internal Revenue Service or any successor taxing authority or agency of the U.S. government;
“ISM Code” means the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (including the guidelines on its implementation), adopted by the International Maritime Organization, as the same may be amended or supplemented from time to time.
“ISPS Code” means the International Ship and Port Facility Security (ISPS) Code as adopted by the International Maritime Organization’s (IMO) Diplomatic Conference of December 2002, as the same may be amended or supplemented from time to time. 
“ISSC” means an International Ship Security Certificate issued under the ISPS Code.
“Lender” means:
		
	(a)
	any Original Lender; and

		
	(b)
	any reputable financial institution governed by banking regulations in the United States, the United Kingdom and/or the European Union which has become a Party in accordance with Clause 27 (Changes to the Lenders),

which in each case has not ceased to be a Party in accordance with this Agreement.

16    

“LIBOR” means, in relation to any Advance, the Loan or any Unpaid Sum:
		
	(a)
	the applicable Screen Rate;

		
	(b)
	(if no Screen Rate is available for the Interest Period of the Advance, the Loan or that Unpaid Sum), the applicable Interpolated Screen Rate; or

		
	(c)
	if:

		
	(i)
	no Screen Rate is available for the currency of the Advance, the Loan or that Unpaid Sum); or

		
	(ii)
	no Screen Rate is available for the Interest Period of the Advance, the Loan or that Unpaid Sum and it is not possible to calculate an Interpolated Screen Rate for the Advance, the Loan or that Unpaid Sum,

the Reference Bank Rate,
as of, in the case of paragraphs (a) and (c) above, the Specified Time on the Quotation Day for dollars for the Advance, the Loan or that Unpaid Sum and for a period equal in length to the Interest Period of the Advance, the Loan or that Unpaid Sum and, if any such rate is below zero, LIBOR shall be deemed to be zero.
“Loan” means the loan to be made available under the Facility or the aggregate principal amount outstanding for the time being of the borrowings under the Facility.
“Major Casualty” means any casualty to the Vessel in relation to which the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds U.S.$500,000 or the equivalent in any other currency.
“Majority Lenders” means:
		
	(a)
	if no Advance has yet been made, a Lender or Lenders whose Commitments aggregate more than 662⁄3 percent of the Total Commitments; or

		
	(b)
	at any other time, a Lender or Lenders whose participations in the Loan aggregate more than 662⁄3 percent of the amount of the Loan then outstanding or, if the Loan has been repaid or prepaid in full, a Lender or Lenders whose participations in the Loan immediately before repayment or prepayment in full aggregate more than 662⁄3 percent of the Loan immediately before such repayment.

“Management Agreement” means, in respect of a Vessel, the master agreement dated January 23, 2013 entered into by and among (i) the Borrower, (ii) Scorpio Commercial Management s.a.m. and Scorpio Ship Management s.a.m., or such other management agreement in respect of a Vessel approved in writing by the Facility Agent, acting with the authorization of the Majority Lenders. 
“Manager’s Undertaking” means, in respect of a Vessel, the letter of undertaking from the Approved Technical Manager and the letter of undertaking from the Approved Commercial Manager subordinating the rights of the Approved Technical Manager and the Approved Commercial Manager respectively against that Vessel and each Guarantor to the rights of the Finance Parties and assigning the rights and interests of the Approved Technical Manager and the Approved Commercial Manager in the Insurances to the Finance Parties in agreed form.

17    

“Margin” means 1.60 percent per annum.
“Margin Stock” has the meaning specified in Regulation U of the Board of Governors of the U.S. Federal Reserve System and any successor regulations thereto, as in effect from time to time.
“Market Disruption Event” has the meaning given to it in Clause 10.2 (Market disruption).
“Market Value” means, in respect of a Vessel or any other vessel, at any date, the market value of that Vessel or vessel shown by one valuation or the arithmetic mean of two or three valuations, as the case may be, prepared:
		
	(a)
	unless otherwise specified, as at a date not more than 14 days previously;

		
	(b)
	by an Approved Appraiser or Approved Appraisers;

		
	(c)
	without physical inspection (i.e., on a “desk-top” basis) of that Vessel or vessel; and

		
	(d)
	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free of any Charter.

“Material Adverse Effect” means in the reasonable opinion of the Majority Lenders a  material adverse effect on:
		
	(a)
	the business, operations, property, condition (financial or otherwise) or prospects of any Obligor or the Group as a whole; or

		
	(b)
	the ability of any Transaction Obligor to perform its obligations under any Finance Document; or 

		
	(c)
	the validity or enforceability of, or the effectiveness or ranking of any Security granted or intended to be granted pursuant to any of, the Finance Documents or the rights or remedies of any Finance Party under any of the Finance Documents.

“Maturity Date” means August 4, 2017.
“Month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:
		
	(a)
	(subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

		
	(b)
	if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

		
	(c)
	if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end.

The above rules will only apply to the last Month of any period.

18    

“Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors.
“Mortgage” means, in respect of a Vessel, the first preferred Marshall Islands or Liberian ship mortgage on that Vessel in agreed form.
“Multiemployer Plan” means, at any time, a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which any Obligor or any ERISA Affiliate has any liability or obligation to contribute or has within any of the six preceding plan years had any liability or obligation to contribute.
“Non-indemnified Tax” means:
		
	(a)
	any tax on the net income of a Finance Party (but not a tax on gross income or individual items of income), whether collected by deduction or withholding or otherwise, which is levied by a taxing jurisdiction which:

		
	(i)
	is located in the country under whose laws such entity is incorporated or formed (or in the case of a natural person is a country of which such person is a citizen); or

		
	(ii)
	with respect to any Lender, is located in the country of its Facility Office; or 

		
	(iii)
	with respect to any Finance Party other than a Lender, is located in the country from which such party has originated its participation in this transaction; or

		
	(b)
	any FATCA Deduction made on account of a payment to a Party.

“Note” means a promissory note of the Borrower, payable to the order of the Facility Agent, evidencing the aggregate indebtedness of the Borrower under this Agreement, in agreed form.
“Obligor” means the Borrower and the Guarantors.
“Original Financial Statements” means in relation to the Borrower, the audited consolidated financial statements of the Group for its Fiscal Year ended 2015.
“Parallel Debt” means any amount which an Obligor owes to the Security Agent under Clause 30.2 (Parallel Debt (Covenant to pay the Security Agent)) or under that clause as incorporated by reference or in full in any other Finance Document.
“pari passu”, when used with respect to the ranking of any Financial Indebtedness of any person in relation to other Financial Indebtedness of such person, means that each such Financial Indebtedness:
		
	(a)
	either (i) is not subordinated in right of payment to any other Financial Indebtedness of such person or (ii) is subordinate in right of payment to the same Financial Indebtedness of such person as is the other and is so subordinate to the same extent; and

		
	(b)
	is not subordinate in right of payment to the other or to any Financial Indebtedness of such person as to which the other is not so subordinate.

“Participating Member State” means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

19    

“PATRIOT Act” means the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, as amended.
“Party” means a party to this Agreement.
“PBGC” means the U.S. Pension Benefits Guarantee Corporation and its successors.
“Permitted Charter” means: 
		
	(a)
	a Charter:

		
	(i)
	which is a time, voyage or consecutive voyage charter;

		
	(ii)
	the duration of which does not exceed and is not capable of exceeding, by virtue of any optional extensions, 13 months plus a redelivery allowance of not more than 30 days;

		
	(iii)
	which is entered into on bona fide arm’s length terms at the time at which that Vessel is fixed; and

		
	(iv)
	in relation to which not more than two months’ hire is payable in advance; or

		
	(b)
	a Charter which is entered into pursuant to an Approved Pooling Arrangement; or

		
	(c)
	any Charter (other than one covered by paragraph (a) or (b) above) which is approved in writing by the Facility Agent acting with the authorization of the Majority Lenders.

“Permitted Financial Indebtedness” means:
		
	(a)
	any  Financial Indebtedness incurred under the Finance Documents;

		
	(b)
	any Financial Indebtedness that is subordinated to all Financial Indebtedness incurred under the Finance Documents on terms satisfactory to the Facility Agent (acting on instructions of the Majority Lenders).

“Permitted Security” means:
		
	(a)
	Security created by the Finance Documents;

		
	(b)
	any netting or set-off arrangement entered into by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

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

		
	(d)
	liens for salvage;

		
	(e)
	liens for master’s disbursements incurred in the ordinary course of trading; and

		
	(f)
	any other lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of any Vessel and not as a result of any default or omission by any 

20    

Obligor and subject, in the case of liens for repair or maintenance, to Clause 23.16 (Restrictions on chartering, appointment of managers etc.).
“Plan” means any employee benefit plan as defined in Section 3(3) of ERISA (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect to which any Obligor or ERISA Affiliate is (or, if such plan were terminated, would under Section 4062 or Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.
“Potential Event of Default” means any event or circumstance specified in Clause 26 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.
“Prohibited Person” means any person (whether designated by name or by reason of being included in a class of persons) against whom Sanctions are directed, but only to the extent that transactions with such person would be prohibited or restricted to an Obligor, a Finance Party or any other person resident in or otherwise subject to the jurisdiction of the United States, the United Kingdom or the European Union.
“Protected Party” has the meaning given to it in Clause 12.1 (Definitions).
“Quotation Day” means, in relation to any period for which an interest rate is to be determined, two Business Days before the first day of that period unless market practice differs in the Relevant Interbank Market in which case the Quotation Day will be determined by the Facility Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).
“Rating Agencies” means: 
		
	(a)
	S&P and Moody’s; or

		
	(b)
	if S&P or Moody’s or both of them are not making ratings of securities publicly available, a nationally recognized U.S. rating agency or agencies, as the case may be, selected by the Facility Agent with the consent of the Majority Lenders, which will be substituted for S&P or Moody’s or both, as the case may be.

“Rating Category” means:
		
	(a)
	with respect to S&P, any of the following categories (any of which may include a “+” or “-”):  AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor categories);

		
	(b)
	with respect to Moody’s, any of the following categories:  Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C and D (or equivalent successor categories); and

		
	(c)
	the equivalent of any such categories of S&P or Moody’s used by another Rating Agency, if applicable.

“Receiver” means a receiver or receiver and manager or administrative receiver of the whole or any part of the Security Assets.

21    

“Reference Bank Rate” means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility Agent at its request by the Reference Banks as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in dollars for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period.
“Reference Banks” means the principal Frankfurt am Main offices of DVB Bank SE and/or such other banks as may be appointed by the Facility Agent in consultation with the Borrower.
“Relevant Interbank Market” means the London interbank market.
“Relevant Jurisdiction” means, in relation to an Obligor:
		
	(a)
	its jurisdiction of incorporation or formation;

		
	(b)
	any jurisdiction where any asset subject to, or intended to be subject to, any of the Transaction Security created, or intended to be created, by it is situated;

		
	(c)
	any jurisdiction where it conducts its business; and

		
	(d)
	the jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it.

“Repayment Date” means each date on which a Repayment Instalment is required to be paid under Clause 6.1 (Repayment of Loan).
“Repayment Instalment” has the meaning given to it in Clause 6.1 (Repayment of Loan).
“Repeating Representation” means each of the representations set out in Clause 18 (Representations) except Clause 18.10 (Solvency; Insolvency Event; Creditor’s process), Clause 18.11 (No filing or registration or stamp taxes), Clause 18.12 (Deduction of Tax) and Clause 18.17 (No proceedings pending or threatened) and any representation of any Obligor made in any other Finance Document that is expressed to be a “Repeating Representation” or is otherwise expressed to be repeated.
“Representative” means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.
“Reportable Event” shall mean an event described in Section 4043(c) of ERISA with respect to a Plan that is subject to Title IV of ERISA other than those events as to which the 30-day notice period is waived.
“Requisition” means, in respect of a Vessel:
		
	(a)
	any expropriation, confiscation, requisition or acquisition of that Vessel, whether for full consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period not exceeding one year without any right to an extension) unless it is within 60 days redelivered to the full control of the relevant Guarantor; and

22    

		
	(b)
	any arrest, capture, seizure or detention of that Vessel (including any hijacking or theft) unless it is within 60 days redelivered to the full control of the relevant Guarantor.

“Requisition Compensation” includes all compensation or other moneys payable by reason of any Requisition. 
“Resolution Authority” means any body which has authority to exercise any Write-down and Conversion Powers.
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies Inc., and its successors.
“Safety Management Certificate” has the meaning given to it in the ISM Code.
“Safety Management System” has the meaning given to it in the ISM Code.
“Sanctions” means any sanctions, embargoes, freezing provisions, prohibitions or other restrictions relating to trading, doing business, investment, exporting, financing or making assets available (or other activities similar to or connected with any of the foregoing):
		
	(a)
	imposed by law or regulation of the United Kingdom, the Council of the European Union, the United Nations or its Security Council or the United States of America; or

		
	(b)
	otherwise imposed by any law or regulation or Executive Order by which any Obligor or any Finance Party is bound or, as regards a regulation, compliance with which is reasonable in the ordinary course of business of any Obligor or Finance Party including, without limitation, laws or regulations or Executive Orders restricting loans to investments in, or the exports of assets to, foreign countries or entities doing business there,

provided that such laws, regulations, sanctions, embargoes, freezing provisions, prohibitions or restrictive measures shall be applicable only to the extent such laws, regulations, sanctions, embargoes or restrictive measures are not in conflict with the laws of the United States of America.
“Screen Rate” means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for dollars for the relevant period displayed on page LIBOR01 or LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters. If such page or service ceases to be available, the Facility Agent may specify another page or service displaying the relevant rate after consultation with the Borrower.
“Secured Liabilities” means all present and future obligations and liabilities, (whether actual or contingent and whether owed jointly or severally or in any other capacity whatsoever) of each Transaction Obligor to any Creditor Party under or in connection with each Finance Document.
“Securities Act” means the U.S. Securities Act of 1933, as amended, and any successor act thereto, and (unless the context otherwise requires) includes the rules and regulations of the Commission promulgated thereunder.
“Security” means a mortgage, pledge, lien, charge, assignment, hypothecation or security interest or any other agreement or arrangement having the effect of conferring security.

23    

“Security Assets” means all of the assets of the Transaction Obligors which from time to time are, or are expressed to be, the subject of the Transaction Security.
“Security Document” means:
		
	(a)
	any Shares Security; 

		
	(b)
	any Mortgage;

		
	(c)
	any Earnings Assignment;

		
	(d)
	any Insurance Assignment; 

		
	(e)
	any Charter Assignment; 

		
	(f)
	any Account Security;

		
	(g)
	any Manager’s Undertaking;

		
	(h)
	any other document (whether or not it creates Security) which is executed as security for the Secured Liabilities; or

		
	(i)
	any other document designated as such by the Facility Agent and the Borrower.

“Security Period” means the period starting on the date of this Agreement and ending on the date on which the Facility Agent is satisfied that there is no outstanding Commitment in force and that the Secured Liabilities have been irrevocably and unconditionally paid and discharged in full.
“Security Property” means:
		
	(a)
	the Transaction Security expressed to be granted in favor of the Security Agent as trustee for the Creditor Parties and all proceeds of that Transaction Security;

		
	(b)
	all obligations expressed to be undertaken by a Transaction Obligor to pay amounts in relation to the Secured Liabilities to the Security Agent as trustee for the Creditor Parties and secured by the Transaction Security together with all representations and warranties expressed to be given by a Transaction Obligor or any other person in favor of the Security Agent as trustee for the Creditor Parties;

		
	(c)
	the Security Agent’s interest in any turnover trust created under the Finance Documents; and

		
	(d)
	any other amounts or property, whether rights, entitlements, choses in action or otherwise, actual or contingent, which the Security Agent is required by the terms of the Finance Documents to hold as trustee on trust for the Creditor Parties,

except:
		
	(i)
	rights intended for the sole benefit of the Security Agent; and 

24    

		
	(ii)
	any moneys or other assets which the Security Agent has transferred to the Facility Agent or (being entitled to do so) has retained in accordance with the provisions of this Agreement.

“Selection Notice” means a notice substantially in the form set out in Part B of Schedule 3 (Requests) given in accordance with Clause 9 (Interest Periods).
“Servicing Party” means the Facility Agent or the Security Agent.
“Shares Security” means, in relation to a Guarantor, a document creating Security over the Equity Interests of that Guarantor in agreed form.
“Specified Time” means a time determined in accordance with Schedule 7 (Timetables).
“Subordinated Creditor” means:
		
	(a)
	an Obligor; or

		
	(b)
	any other person who is owed Subordinated Liabilities. 

“Subordinated Finance Document” means any document relating to or evidencing Subordinated Liabilities.
“Subordinated Liabilities” means all indebtedness owed or expressed to owed by the Borrower to a Subordinated Creditor whether under the Subordinated Finance Documents or otherwise. 
“Subordination Agreement” means a subordination agreement entered into or to be entered into by each Subordinated Creditor and the Security Agent in agreed form.
“Subsidiary” means, with respect to any person (the “parent”) at any date:
		
	(a)
	any other corporation, limited liability company, association or other business entity of which securities or other ownership interests representing more than 50% of the voting power of all Equity Interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Board of Directors (or equivalent governing body) thereof are, as of such date, directly, indirectly or beneficially owned, controlled or held by the parent and/or one or more subsidiaries of the parent;

		
	(b)
	any partnership (i) the sole general partner or the managing general partner of which is the parent and/or one or more subsidiaries of the parent or (ii) the only general partners of which are the parent and/or one or more subsidiaries of the parent; 

		
	(c)
	any other person the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with IFRS as of such date; 

		
	(d)
	any other person of which at least a majority of the income, capital, beneficial or ownership interests (however designated) are at the time directly, indirectly or beneficially owned or controlled by the parent and/or one or more subsidiaries of the parent; or

		
	(e)
	any other person that is otherwise controlled by the parent and/or one or more subsidiaries of the parent.

25    

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).
“Tax Credit” has the meaning given to it in Clause 12.1 (Definitions).
“Tax Deduction” has the meaning given to it in Clause 12.1 (Definitions).
“Tax Payment” has the meaning given to it in Clause 12.1 (Definitions).
“Technical Management Agreement” means, in respect of a Vessel, the agreement entered into between the Guarantor owning such Vessel and the Approved Technical Manager regarding the technical management of that Vessel.
“Total Commitments” means the aggregate of the Commitments, being $90,000,000 at the date of this Agreement.
“Total Loss” means, in respect of a Vessel:
		
	(a)
	actual, constructive, compromised, agreed or arranged total loss of that Vessel; or 

		
	(b)
	any Requisition.

“Total Loss Date” means, in relation to the Total Loss of a Vessel:
		
	(a)
	in the case of an actual loss of that Vessel, the date on which it occurred or, if that is unknown, the date when that Vessel was last heard of;

		
	(b)
	in the case of a constructive, compromised, agreed or arranged total loss of that Vessel, the earlier of:

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

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

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

“Tranche” means Tranche A, Tranche B, Tranche C or Tranche D as the context may require. 
“Tranche A” has the meaning given to it in Clause 3.1(a)(i).
“Tranche B” has the meaning given to it in Clause 3.1(a)(ii). 
“Tranche C” has the meaning given to it in Clause 3.1(a)(iii). 
“Tranche D” has the meaning given to it in Clause 3.1(a)(iv).  
“Transaction Document” means:

26    

		
	(a)
	a Finance Document;

		
	(b)
	a Subordinated Finance Document;

		
	(c)
	any Charter

		
	(d)
	any Approved Pooling Arrangement; or

		
	(e)
	any other document designated as such by the Facility Agent and the Borrower.

“Transaction Obligor” means an Obligor, any Approved Manager who is a member of the Group or any other member of the Group who executes a Transaction Document.
“Transaction Security” means the Security created or evidenced or expressed to be created or evidenced under the Security Documents.
“Transfer Certificate” means a certificate in the form set out in Schedule 4 (Form of Transfer Certificate) or any other form agreed between the Facility Agent and the Borrower.
“Transfer Date” means, in relation to an assignment or a transfer, the later of:
		
	(a)
	the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate; and

		
	(b)
	the date on which the Facility Agent executes the relevant Assignment Agreement or Transfer Certificate.

“UCC” means the Uniform Commercial Code of the State of New York.
“Unpaid Sum” means any sum due and payable but unpaid by a Transaction Obligor under the Finance Documents.
“U.S.” means the United States of America.
“VAT” means:  
		
	(a)
	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and

		
	(b)
	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere.

“VAT Group” means two or more companies or limited liability partnerships which register as a single taxable entity for VAT purposes.
“Vessel” means Vessel A, Vessel B, Vessel C or Vessel D. 
“Vessel A” means the product tanker of 38,000 deadweight tons, currently registered in the name of Guarantor A under Marshall Islands flag with the name “STI WEMBLEY”, IMO number 9691735.  

27    

“Vessel B” means the product tanker of 49,990 deadweight tons, currently registered in the name of Guarantor B under Marshall Islands flag with the name “STI MILWAUKEE”, IMO number 9686974.
“Vessel C” means the product tanker of 49,990 deadweight tons, currently registered in the name of Guarantor C under Marshall Islands flag with the name “STI SENECA”, IMO number 9704477. 
“Vessel D” means the product tanker of 114,900 deadweight tons, currently registered in the name of Guarantor D under Marshall Islands flag with the name “STI ALEXIS”, IMO number 9696694.
“Voting Stock” of any person as of any date means the Equity Interests of such person that are at the time entitled to vote in the election of the board of directors or similar governing body of such person.
”Write-down and Conversion Powers” means:
		
	(a)
	in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule; and

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

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

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

		
	1.2
	Construction

		
	(a)
	Unless a contrary indication appears, a reference in this Agreement to:

		
	(i)
	the “Account Bank”, the “Arranger”, the “Underwriter”, the “Facility Agent”, any “Finance Party”, any “Lender”, any “Obligor”, any “Party”, any “Creditor Party”, the “Security Agent”, any “Transaction Obligor” or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents;

		
	(ii)
	“assets” includes present and future properties, revenues and rights of every description;

		
	(iii)
	a liability which is “contingent” means a liability which is not certain to arise and/or the amount of which remains unascertained;

		
	(iv)
	“document” includes a deed and also a letter, Email, fax or telex;

28    

		
	(v)
	“expense” means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable Tax including VAT;

		
	(vi)
	a “Finance Document”, a “Security Document” or “Transaction Document” or any other agreement or instrument is a reference to that Finance Document, Security Document or Transaction Document or other agreement or instrument as amended or novated;

		
	(vii)
	“indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

		
	(viii)
	“law” includes any order or decree, any form of delegated legislation, any treaty or international convention and any statute, regulation or resolution or Executive Order of the United States of America, any state thereof, the Council of the European Union, the European Commission, the United Nations or its Security Council; 

		
	(ix)
	“proceedings” means, in relation to any enforcement provision of a Finance Document, proceedings of any kind, including an application for a provisional or protective measure;

		
	(x)
	a “person” includes any individual or natural person, firm, corporation, limited liability company, partnership, government, state or agency of a state or any association, trust, joint venture, consortium unincorporated association, joint stock company and trust (whether or not having separate legal personality);

		
	(xi)
	a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organization;

		
	(xii)
	a provision of law is a reference to that provision as amended or re-enacted;

		
	(xiii)
	a time of day is a reference to New York City time (unless otherwise indicated);

		
	(xiv)
	any New York legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing shall, in respect of a jurisdiction other than the State of New York or a U.S. federal court, be deemed to include that which most nearly approximates in that jurisdiction to the New York legal term;

		
	(xv)
	words denoting the singular number shall include the plural and vice versa; and

		
	(xvi)
	“including” and “in particular” (and other similar expressions) shall be construed as not limiting any general words or expressions in connection with which they are used.

		
	(b)
	Section, Clause and Schedule headings are for ease of reference only and are not to be used for the purposes of construction or interpretation of the Finance Documents.

		
	(c)
	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under, or in connection with, any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

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

		
	1.3
	Construction of insurance terms

29    

In this Agreement:
“approved” means, for the purposes of Clause 22 (Insurance Undertakings), approved in writing by the Facility Agent;
“excess risks” means the proportion of claims for general average, salvage and salvage charges not recoverable under the hull and machinery policies in respect of a Vessel in consequence of its insured value being less than the value at which such Vessel is assessed for the purpose of such claims;
“obligatory insurances” means all insurances effected, or which a Guarantor is obliged to effect, under Clause 22 (Insurance Undertakings) or any other provision of this Agreement or of another Finance Document;
“policy” includes a slip, cover note, certificate of entry or other document evidencing the contract of insurance or its terms;
“protection and indemnity risks” means the usual risks covered by a protection and indemnity association managed in London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation in them of clause 6 of the International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the Institute Time Clauses (Hulls) (1/10/83)(1/11/95) or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision; and
“war risks” includes the risk of mines and all risks excluded by clause 29 of the International Hull Clauses (1/11/02 or 1/11/03), clause 24 of the Institute Time Clauses (Hulls) (1/11/95) or clause 23 of the Institute Time Clauses (Hulls)(1/10/83).
		
	1.4
	Agreed forms of Finance Documents

References in Clause 1.1 (Definitions) to any Finance Document being in “agreed form” are to that Finance Document:
		
	(a)
	in a form attached to a certificate dated the same date as this Agreement (and signed by the Borrower and the Facility Agent); or

		
	(b)
	in any other form agreed in writing between the Borrower and the Facility Agent acting with the authorization of the Majority Lenders or, where Clause 42.2 (All Lender matters) applies, all the Lenders.

		
	1.5
	Third party rights

		
	(a)
	Unless expressly provided to the contrary in a Finance Document, a person who is not a Party has no right to enforce or to enjoy the benefit of any term of this Agreement.

		
	(b)
	Notwithstanding any term of any Finance Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time.

		
	(c)
	Any Receiver, Delegate or any other person described in paragraph (d) of Clause 14.2 (Other indemnities), paragraph (b) of Clause 29.11 (Exclusion of liability) or paragraph (b) of Clause 30.11 (Exclusion of liability) may, subject to this Clause 1.5 (Third party rights), rely on any Clause of this Agreement which expressly confers rights on it.

30    

SECTION 2 
 
THE FACILITY

		
	2
	THE FACILITY

		
	2.1
	The Facility

Subject to the terms of this Agreement, the Lenders agree to make available to the Borrower a dollar term loan facility in four Tranches in an aggregate amount not exceeding the Total Commitments.
		
	2.2
	Finance Parties’ rights and obligations

		
	(a)
	The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

		
	(b)
	The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from a Transaction Obligor is a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with paragraph (c) below.  The rights of each Finance Party include any debt owing to that Finance Party under the Finance Documents and, for the avoidance of doubt, any part of the Loan or any other amount owed by a Transaction Obligor which relates to a Finance Party's participation in the Facility or its role under a Finance Document (including any such amount payable to the Facility Agent on its behalf) is a debt owing to that Finance Party by that Transaction Obligor.

		
	(c)
	A Finance Party may, except as otherwise stated as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance Documents.

		
	3
	PURPOSE

		
	3.1
	Purpose

		
	(a)
	The Borrower shall apply all amounts borrowed by it under the Facility only for the purpose of partially refinancing the Existing Indebtedness and for other general corporate purposes, which borrowings shall be made available in the following four Tranches: 

		
	(i)
	Tranche A, in a principal amount not exceeding the lesser of (i) 65 percent of the Market Value of Vessel A, and (ii) $18,500,000; 

		
	(ii)
	Tranche B, in a principal amount not exceeding the lesser of (i) 65 percent of the Market Value of Vessel B, and (ii) $19,500,000; 

		
	(iii)
	Tranche C, in a principal amount not exceeding the lesser of (i) 65 percent of the Market Value of Vessel C, and (ii) $20,500,000; and 

		
	(iv)
	Tranche D, in a principal amount not exceeding the lower of (i) 65 percent of the Market Value of Vessel D, and (ii) $31,500,000. 

		
	3.2
	Monitoring

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

		
	4
	CONDITIONS OF DRAWDOWN

		
	4.1
	Conditions precedent to delivery of a Drawdown Request

The Borrower may not deliver a Drawdown Request unless the Facility Agent has received all of the documents and other evidence listed in Part A of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Facility Agent.
		
	4.2
	Conditions precedent to each Advance

The Lenders will be obliged to comply with Clause 5.4 (Lenders’ participation) only if:
		
	(a)
	on the date of the Drawdown Request and on the proposed Drawdown Date and before the Advance under a Tranche is made available:

		
	(i)
	no Default is continuing or would result from the proposed Advance;

		
	(ii)
	the Repeating Representations to be made by each Obligor are true; 

		
	(iii)
	a Change of Control has not occurred; and

		
	(iv)
	the provisions of paragraph (c) of Clause 10.3 (Alternative basis of interest or funding, suspension) do not apply;

		
	(b)
	the Facility Agent has received on or before the relevant Drawdown Date, or is satisfied that it will receive when such Advance is made available, all of the documents and other evidence listed in Part B of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Facility Agent.

		
	4.3
	Notification of satisfaction of conditions precedent

		
	(a)
	The Facility Agent shall notify the Borrower and the Lenders promptly upon being satisfied as to the satisfaction of the conditions precedent and subsequent referred to in Clause 4.1 (Conditions precedent to delivery of a Drawdown Request) and Clause 4.2 (Conditions precedent to each Advance).

		
	(b)
	Other than to the extent that the Majority Lenders notify the Facility Agent in writing to the contrary before the Facility Agent gives the notification described in paragraph (a) above, the Lenders authorize (but do not require) the Facility Agent to give that notification.  The Facility Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

		
	4.4
	Waiver of conditions precedent

If the Majority Lenders, at their discretion, permit an Advance to be borrowed before any of the conditions precedent referred to in Clause 4.1 (Conditions of Drawdown) or Clause 4.2 (Conditions precedent to each Advance) has been satisfied, the Borrower shall ensure that the waived condition is satisfied within five Business Days after the relevant Drawdown Date or such later date as the Facility Agent, acting with the authorization of the Majority Lenders, may agree in writing with the Borrower.

SECTION 3 
 
DRAWDOWN

		
	5
	DRAWDOWN

		
	5.1
	Delivery of a Drawdown Request

		
	(a)
	The Borrower may utilize the Facility by delivery to the Facility Agent of a duly completed Drawdown Request not later than the Specified Time.

		
	(b)
	Only one Advance may be made under each Tranche. 

		
	5.2
	Completion of a Drawdown Request

		
	(a)
	Each Drawdown Request is irrevocable and will not be regarded as having been duly completed unless:

		
	(i)
	the proposed Drawdown Date is a Business Day within the Availability Period; and 

		
	(ii)
	the currency and amount of the Drawdown comply with Clause 5.3 (Currency and amount).

		
	5.3
	Currency and amount

		
	(a)
	The currency specified in a Drawdown Request must be dollars.

		
	(b)
	The amount of the proposed Advance must be an amount which is not more than the relevant Tranche; and 

		
	(c)
	The amount of the proposed Advance must be an amount which would not oblige the Borrower to provide additional security or prepay part of the Advance if the ratio set out in Clause 24 (Security Cover) were applied and notice was given by the Facility Agent under Clause 24.1 (Minimum required security cover) immediately after that Advance was made.

		
	5.4
	Lenders’ participation

		
	(a)
	If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Advance available by the relevant Drawdown Date through its Facility Office.

		
	(b)
	The amount of each Lender’s participation in each Advance will be equal to the proportion borne by its Commitment to the Total Commitments immediately before making that Advance.

		
	(c)
	The Facility Agent shall notify each Lender of the amount of each Advance and the amount of its participation in that Advance by the Specified Time.

		
	5.5
	Cancellation of Commitments

The Commitments in respect of any Tranche which are unutilized after an Advance has been made with respect thereto or at the end of the Availability Period shall then be cancelled.
		
	5.6
	Disbursement of Advance to third party 

A payment by the Facility Agent to a person other than the Borrower at the request of the Borrower shall constitute the making of the relevant Advance and the Borrower shall at that time become indebted, as principal and direct obligor, to each Lender in an amount equal to that Lender’s participation in that Advance. 
		
	5.7
	Promissory note

		
	(a)
	The obligation of the Borrower to pay the principal of, and interest on, the Loan shall be evidenced by the Note.  

		
	(b)
	Each Advance made by the Lenders to the Borrower may be evidenced by a notation of the same made by the Facility Agent on the grid attached to the Note, which notation, absent manifest error, shall be prima facie evidence of the amount of such Advance.

		
	(c)
	Each Lender shall record on its internal records the amount of its participation in each Advance and each payment in respect thereof, and the unpaid balance of such participation in such Advance shall, absent manifest error and to the extent not inconsistent with the notations made by the Facility Agent on the grid attached to the Note, be as so recorded.

		
	(d)
	The failure of the Facility Agent or any Lender to make any such notation shall not affect the obligation of the Borrower in respect of such Advance or the Loan nor affect the validity of any transfer by the Facility Agent of the Note.

		
	(e)
	On receipt of satisfactory evidence that the Note has been lost, mutilated or destroyed and on surrender of the remnants thereof, if any, the Borrower will promptly replace the Note, without charge to the Finance Parties, with a similar Note.  If such replacement Note replaces a lost Note it shall bear an endorsement to that effect.  Any lost Note subsequently found shall be surrendered to the Borrower and cancelled.  The Facility Agent shall indemnify the Borrower for any losses, claims or damages resulting from the loss of such Note.

SECTION 4 
 
REPAYMENT, PREPAYMENT AND CANCELLATION

		
	6
	REPAYMENT

		
	6.1
	Repayment of Loan

The Borrower shall repay
		
	(a)
	Tranche A by three equal consecutive quarterly instalments, each in an amount of $330,000 (each a “Tranche A Repayment Instalment”), the first of which shall be repaid on the date falling three months after the Drawdown Date in respect of Tranche A, followed by a balloon payment in an amount of $17,510,000 on the Maturity Date (the “Tranche A Balloon Payment”); 

		
	(b)
	Tranche B by three equal consecutive quarterly instalments, each in an amount of $350,000 (each a “Tranche B Repayment Instalment”), the first of which shall be repaid on the date falling three months after the Drawdown Date in respect of Tranche B, followed by a balloon payment in an amount of $18,450,000 on the Maturity Date (the “Tranche B Balloon Payment”);

		
	(c)
	Tranche C by three equal consecutive quarterly instalments, each in an amount of $370,000 (each a “Tranche C Repayment Instalment”), the first of which shall be repaid on the date falling three months after the Drawdown Date in respect of Tranche C, followed by a balloon payment in an amount of $19,390,000 on the Maturity Date (the “Tranche C Balloon Payment”); and

		
	(d)
	Tranche D by three equal consecutive quarterly instalments, each in an amount of $575,000 (each a “Tranche D Repayment Instalment” and, together with a Tranche A Repayment Instalment, a Tranche B Repayment Instalment, and a Tranche C Repayment Instalment, each a “Repayment Instalment”), the first of which shall be repaid on the date falling three months after the Drawdown Date in respect of Tranche D, followed by a balloon payment in an amount of $29,775,000 on the Maturity Date (the “Tranche D Balloon Payment” and, together with the Tranche A Balloon Payment, the Tranche B Balloon Payment and the Tranche C Balloon Payment, each a “Balloon Payment”).

		
	6.2
	Reduction of Repayment Instalments

If any part of a Tranche is cancelled, the Repayment Instalments in respect of such Tranche falling after that cancellation shall be reduced in inverse chronological order by the amount cancelled.
		
	6.3
	Maturity Date

On the Maturity Date, the Borrower shall additionally pay to the Facility Agent for the account of the Finance Parties all other sums then accrued and owing under the Finance Documents.
		
	6.4
	Re-borrowing

The Borrower may not re-borrow any part of the Facility which is repaid.

		
	7
	PREPAYMENT AND CANCELLATION

		
	7.1
	Illegality

		
	(a)
	If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in an Advance or the Loan or it becomes unlawful for any Affiliate of a Lender for that Lender to do so:

		
	(i)
	that Lender shall promptly notify the Facility Agent upon becoming aware of that event;

		
	(ii)
	upon the Facility Agent notifying the Borrower, the Available Commitment in respect of any Tranche of that Lender will be immediately cancelled; and

		
	(iii)
	the Borrower shall prepay that Lender’s participation in the Loan on the last day of the Interest Period for the Loan occurring after the Facility Agent has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Facility Agent (being no earlier than the last day of any applicable grace period permitted by law) and that Lender’s corresponding Commitment shall be cancelled in the amount of the participation prepaid.

		
	(b)
	Any partial prepayment under this Clause 7.1 (Illegality) shall reduce pro rata the amount of each Repayment Instalment falling after that prepayment by the amount prepaid.

		
	7.2
	Automatic cancellation

		
	(a)
	The unutilized Commitment (if any) of each Lender for each Tranche shall be automatically cancelled at close of business on the date on which the Advance relating to such Tranche is made available.

		
	7.3
	Voluntary prepayment of Loan

		
	(a)
	The Borrower may, if it gives the Facility Agent not less than five Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of any Tranche (but, if in part, being an amount that reduces the amount of the relevant Tranche by a minimum amount of $500,000 or a multiple of that amount) on the last day of an Interest Period.

		
	(b)
	Any partial prepayment of a Tranche under this Clause 7.3 (Voluntary prepayment of Loan) shall reduce in inverse chronological order the amount of each Repayment Instalment (including the Balloon Payment) of such Tranche falling after that prepayment by the amount prepaid.

		
	7.4
	Mandatory prepayment on sale or Total Loss

If a Vessel is sold or becomes a Total Loss, the Borrower shall repay the Tranche applicable to that Vessel.  Such repayment shall be made:
		
	(a)
	in the case of a sale of a Vessel, on or before the date on which the sale is completed by delivery of such Vessel to the buyer; 

		
	(b)
	in the case of any arrest of a Vessel where a Vessel is not within 45 days redelivered to the full control of the relevant Guarantor, on or before the date falling 52 days after the date of the arrest of such Vessel; or

		
	(c)
	in the case of any other Total Loss, on the earlier of (i) the date falling 180 days after the Total Loss Date and (ii) the date of receipt by the Security Agent of the proceeds of insurance relating to such Total Loss.

		
	7.5
	Restrictions

		
	(a)
	Any notice of cancellation or prepayment given by any Party under this Clause 7 (Prepayment and Cancellation) shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

		
	(b)
	Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

		
	(c)
	The Borrower may not re-borrow any part of the Facility which is prepaid.

		
	(d)
	The Borrower shall not repay or prepay all or any part of the Loan or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

		
	(e)
	No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

		
	(f)
	If the Facility Agent receives a notice under this Clause 7 (Prepayment and Cancellation) it shall promptly forward a copy of that notice to either the Borrower or the affected Lender, as appropriate.

SECTION 5 
 
COSTS OF DRAWDOWN

		
	8
	INTEREST

		
	8.1
	Calculation of interest

The rate of interest on the Loan or any part of the Loan for each Interest Period is the percentage rate per annum which is the aggregate of:
		
	(a)
	the Margin; and

		
	(b)
	LIBOR.

		
	8.2
	Payment of interest

		
	(a)
	The Borrower shall pay accrued interest on the Loan or any part of the Loan on the last day of each Interest Period (each an “Interest Payment Date”).

		
	(b)
	If an Interest Period is longer than three Months, the Borrower shall also pay interest then accrued on the Loan or the relevant part of the Loan on the dates falling at three monthly intervals after the first day of the Interest Period.

		
	8.3
	Default interest

		
	(a)
	If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the Unpaid Sum from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is 2 percent per annum higher than the rate which would have been payable if the Unpaid Sum had, during the period of non-payment, constituted part of a Loan in the currency of the Unpaid Sum for successive Interest Periods, each of a duration selected by the Facility Agent.  Any interest accruing under this Clause 8.3 (Default interest) shall be immediately payable by the Obligor on demand by the Facility Agent.

		
	(b)
	If an Unpaid Sum consists of all or part of the Loan which became due on a day which was not the last day of an Interest Period relating to the Loan:

		
	(i)
	the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion of the current Interest Period relating to the Loan; and

		
	(ii)
	the rate of interest applying to that Unpaid Sum during that first Interest Period shall be 2 percent per annum higher than the rate which would have applied if that Unpaid  Sum had not become due.

		
	(c)
	Default interest (if unpaid) accruing on an Unpaid Sum will be compounded with the Unpaid Sum at the end of each Interest Period applicable to that Unpaid Sum but will remain immediately due and payable.

		
	8.4
	Notification of rates of interest

The Facility Agent shall promptly notify the Lenders and the Borrower of the determination of a rate of interest under this Agreement.

		
	9
	INTEREST PERIODS

		
	9.1
	Selection of Interest Periods

		
	(a)
	The first Interest Period for the Loan as specified in the first Drawdown Request shall be three Months from the Drawdown Date, unless otherwise agreed between the Borrower and the Facility Agent (acting on instructions of all Lenders).

		
	(b)
	Subject to paragraph (g) below, the Borrower may select each subsequent Interest Period in respect of the Loan in a Selection Notice.

		
	(c)
	Each Selection Notice is irrevocable and must be delivered to the Facility Agent by the Borrower not later than the Specified Time.

		
	(d)
	If the Borrower fails to deliver a Selection Notice to the Facility Agent in accordance with paragraphs (b) and (c) above, the relevant Interest Period will, subject to Clause 9.2 (Changes to Interest Periods) and paragraph (g) below, be three Months.

		
	(e)
	Subject to this Clause 9 (Interest Periods), the Borrower may select an Interest Period of three Months or any other period (up to a maximum of 12 Months) agreed between the Borrower and the Facility Agent (acting on the instructions of all the Lenders).

		
	(f)
	An Interest Period in respect of the Loan shall not extend beyond the Maturity Date.

		
	(g)
	In respect of a Repayment Instalment, an Interest Period for a part of the Loan equal to such Repayment Instalment shall end on the Repayment Date relating to it if such date is before the end of the Interest Period then current.

		
	(h)
	Subject to paragraph (i) below, the first Interest Period for the Loan shall start on the Drawdown Date and each subsequent Interest Period shall start on the last day of the preceding Interest Period.

		
	(i)
	Except for the purposes of paragraph (g) above, each Tranche shall have one Interest Period only at any time.

		
	9.2
	Changes to Interest Periods

		
	(a)
	If after the Borrower has selected and the Lenders have agreed an Interest Period longer than three Months, any Lender notifies the Facility Agent within two Business Days after the Specified Time relating to the relevant Drawdown Request or Selection Notice that it is not satisfied that deposits in dollars for a period equal to the Interest Period will be available to it in the Relevant Interbank Market when the Interest Period commences, the Facility Agent shall change the Interest Period to three Months.

		
	(b)
	If the Facility Agent makes any change to an Interest Period referred to in this Clause 9.2 (Changes to Interest Periods), it shall promptly notify the Borrower and the Lenders.

		
	9.3
	Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

		
	10
	CHANGES TO THE CALCULATION OF INTEREST

		
	10.1
	Absence of quotations

Subject to Clause 10.2 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.
		
	10.2
	Market disruption

		
	(a)
	If a Market Disruption Event occurs in relation to an Advance or the Loan for any Interest Period, then the rate of interest on each Lender’s share of such Advance or the Loan for the Interest Period shall be the rate per annum which is the sum of:

		
	(i)
	the Margin; and

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

		
	(b)
	In this Agreement “Market Disruption Event” means:

		
	(i)
	at or about noon on the Quotation Day for the relevant Interest Period, LIBOR is to be determined by reference to the Reference Banks and none or only one of the Reference Banks supplies a rate to the Facility Agent to determine LIBOR for dollars for the relevant Interest Period; or

		
	(ii)
	before close of business in London on the Quotation Day for the relevant Interest Period, the Facility Agent receives notifications from a Lender or Lenders (whose participations in the Loan exceed 50 percent of the Loan) that the cost to it or them of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR; or 

		
	(iii)
	at least one Business Day before the start of an Interest Period, the Facility Agent receives notification from a Lender (the “Affected Lender”) that for any reason it is unable to obtain dollars in the Relevant Interbank Market in order to fund its participation in the Advance or the Loan.

		
	10.3
	Alternative basis of interest or funding, suspension

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

		
	(b)
	Any substitute or alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all Parties to the Finance Documents.

		
	(c)
	If a Market Disruption Event occurs before the Advance is made:

		
	(i)
	in circumstances falling within sub-paragraph (i) of paragraph (b) of Clause 10.2 (Market disruption) or sub-paragraph (ii) of paragraph (b) of Clause 10.2 (Market disruption), the Lenders’ obligation to make the Advance; or

		
	(ii)
	in circumstances falling within sub-paragraph (iii) of paragraph (b) of Clause 10.2 (Market disruption), the Affected Lender’s obligation to participate in the Advance,

shall be suspended while the circumstances giving rise to the Market Disruption Event continue.
		
	10.4
	Break Costs 

		
	(a)
	The Borrower shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of the Loan or Unpaid Sum being paid by the Borrower on a day other than the last day of an Interest Period for the Loan or Unpaid Sum.

		
	(b)
	Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

		
	11
	FEES

		
	11.1
	Commitment fee

		
	(a)
	The Borrower shall pay to the Facility Agent (for the account of each Lender) a fee computed beginning on the date that is 45 days after the Commitment Date at the rate of 1.00 percent per annum on that Lender’s Available Commitment from time to time for the Availability Period.

		
	(b)
	The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period, on the last day of the Availability Period and, if cancelled, on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective.

		
	11.2
	Upfront fee

The Borrower shall pay to the Facility Agent for its own account an upfront fee in the amount and at the times agreed in a Fee Letter.

SECTION 6 
 
ADDITIONAL PAYMENT OBLIGATIONS

		
	12
	TAX GROSS UP AND INDEMNITIES

		
	12.1
	Definitions

		
	(a)
	In this Agreement:

“Protected Party” means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.
“Tax Credit” means a credit against, relief or remission for, or repayment of any Tax.
“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction.
“Tax Payment” means either the increase in a payment made by an Obligor to a Finance Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax indemnity).
		
	(b)
	Unless a contrary indication appears, in this Clause 12 (Tax Gross Up and Indemnities) reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination.

		
	12.2
	Tax gross-up

		
	(a)
	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law.

		
	(b)
	The Borrower shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Facility Agent accordingly. Similarly, a Lender shall notify the Facility Agent on becoming so aware in respect of a payment payable to that Lender. If the Facility Agent receives such notification from a Lender it shall notify the Borrower and that Obligor.

		
	(c)
	If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required, provided, however, that this Clause 12.2(c) shall not apply to any Tax Deduction arising with respect to any Non-Indemnified Tax imposed on a Finance Party. 

		
	(d)
	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law. 

		
	(e)
	Within 30 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction or payment shall deliver to the Facility Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

		
	12.3
	Tax indemnity

		
	(a)
	The Borrower shall (within three Business Days of demand by the Facility Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

		
	(b)
	Paragraph (a) above shall not apply:

		
	(i)
	with respect to any Non-indemnified Tax assessed on a Finance Party; or 

		
	(ii)
	to the extent a loss, liability or cost is compensated for by an increased payment under Clause 12.2 (Tax gross-up).

		
	(c)
	A Protected Party making, or intending to make, a claim under paragraph (a) above shall promptly notify the Facility Agent of the event which will give, or has given, rise to the claim, following which the Facility Agent shall notify the Borrower.

		
	(d)
	A Protected Party shall, on receiving a payment from an Obligor under this Clause 12.3 (Tax indemnity), notify the Facility Agent.

		
	12.4
	Tax Credit

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:
		
	(a)
	a Tax Credit is attributable to (i) an increased payment of which that Tax Payment forms part, (ii) to that Tax Payment or (iii) to a Tax Deduction in consequence of which that Tax Payment was received; and 

		
	(b)
	that Finance Party has obtained, utilized and retained that Tax Credit,

the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Obligor. 
		
	12.5
	Stamp taxes

The Borrower shall pay and, within three Business Days of demand, indemnify each Creditor Party against any cost, loss or liability which that Creditor Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.
		
	12.6
	VAT

		
	(a)
	All amounts expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document and such Finance Party is required to account to the relevant tax authority for the VAT, that Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice to that Party).

		
	(b)
	If VAT is or becomes chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the “Recipient”) under a Finance Document, and any Party other than the Recipient (the “Relevant Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

		
	(i)
	(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where this sub-paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

		
	(ii)
	(where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

		
	(c)
	Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or expense, including such part of it as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

		
	(d)
	Any reference in this Clause 12.6 (VAT) to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time.

		
	(e)
	In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party’s VAT registration and such other information as is reasonably requested in connection with such Finance Party’s VAT reporting requirements in relation to such supply.

		
	12.7
	FATCA Information

		
	(a)
	Subject to paragraph (c) below, each Party confirms to each other Party that it is a FATCA Exempt Party on the date of this Agreement (or in the case of a New Lender, on the date of its applicable Transfer Certificate, and except as otherwise indicated therein) and thereafter each Party shall, within ten Business Days of a reasonable request by another Party:

		
	(i)
	confirm to that other Party whether it is:

		
	(A)
	a FATCA Exempt Party; or

		
	(B)
	not a FATCA Exempt Party; and

		
	(ii)
	supply to that other Party such forms (including IRS Form W-8 or Form W-9 or any successor or substitute form, as applicable), documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA.

		
	(b)
	If a Party confirms to another Party pursuant to paragraph (a) above that it is a FATCA Exempt Party or provides an IRS Form W-8 or W-9 showing that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, or that the IRS Form has ceased to be accurate or valid, that Party shall notify that other Party or provide a revised IRS Form, as applicable, reasonably promptly.

		
	(c)
	Paragraph (a) above shall not oblige any Finance Party to do anything which would or might in its reasonable opinion constitute a breach of:

		
	(i)
	any law or regulation;

		
	(ii)
	any fiduciary duty; or

		
	(iii)
	any duty of confidentiality;

provided that nothing in this paragraph shall excuse any Finance Party from providing a true, complete and correct IRS Form W-8 or W-9 (or any successor or substitute form where applicable).  Any information provided on such IRS Form W-8 or W-9 (or any successor or substitute forms) shall not be treated as confidential information of such party for purposes of this paragraph.
		
	(d)
	If a Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with paragraph (a) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

		
	12.8
	FATCA Deduction

		
	(a)
	Each Party may make any FATCA Deduction as it reasonably determines is required to be made by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

		
	(b)
	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the Party to whom it is making the payment and, in addition, shall notify the Borrower and the Facility Agent, and the Facility Agent shall notify the other Finance Parties.

		
	(c)
	If a FATCA Deduction is made as a result of any Finance Party failing to be a FATCA Exempt Party, such Party shall indemnify each other Finance Party against any loss, cost or expense to it resulting from such FATCA Deduction.

		
	13
	INCREASED COSTS

		
	13.1
	Increased costs

		
	(a)
	Subject to Clause 13.3 (Exceptions), the Borrower shall, within three Business Days of a demand by the Facility Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of:

		
	(i)
	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation; or 

		
	(ii)
	compliance with any law or regulation made,

after the date of this Agreement.  Notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and (ii) Basel III, and all requests, rules, guidelines and directives promulgated pursuant to the foregoing, are deemed to have been introduced or adopted after the date hereof, regardless of the date enacted or adopted.
		
	(b)
	In this Agreement, “Increased Costs” means:

		
	(i)
	a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital;

		
	(ii)
	an additional or increased cost; or

		
	(iii)
	a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document.
		
	13.2
	Increased cost claims

		
	(a)
	A Finance Party intending to make a claim pursuant to Clause 13.1 (Increased costs) shall notify the Facility Agent of the event giving rise to the claim, following which the Facility Agent shall promptly notify the Borrower.

		
	(b)
	Each Finance Party shall, as soon as practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Increased Costs.

		
	13.3
	Exceptions

Clause 13.1 (Increased costs) does not apply to the extent any Increased Cost is:
		
	(a)
	attributable to a change in the rate of tax on the overall net income of a Finance Party;

		
	(b)
	compensated for by Clause 12.2 (Tax gross-up) or 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 12.3 (Tax indemnity) applied);

		
	(c)
	compensated for by any payment made pursuant to Clause 14.3 (Mandatory Cost); or

		
	(d)
	attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation; or 

		
	(e)
	relates to a Non-Indemnified Tax.

		
	14
	OTHER INDEMNITIES

		
	14.1
	Currency indemnity

		
	(a)
	If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of:

		
	(i)
	making or filing a claim or proof against that Obligor; or

		
	(ii)
	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

that Obligor shall, as an independent obligation, on demand, indemnify each Creditor Party to which that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.
		
	(b)
	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

		
	14.2
	Other indemnities

		
	(a)
	Each Obligor shall, on demand, indemnify each Creditor Party against any cost, loss or liability incurred by it as a result of:

		
	(i)
	the occurrence of any Event of Default;

		
	(ii)
	a failure by a Transaction Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 32 (Sharing among the Finance Parties);

		
	(iii)
	funding, or making arrangements to fund, its participation in the Advance or the Loan requested by the Borrower in a Drawdown Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Creditor Party alone); or

		
	(iv)
	the Loan (or part of the Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower.

		
	(b)
	Each Obligor shall, on demand, indemnify each Finance Party, each Affiliate of a Finance Party and each officer or employee of a Finance Party or its Affiliate (each such person for the purposes of this Clause 14.2 (Other indemnities) an “Indemnified Person”), against any cost, loss or liability incurred by that Indemnified Person pursuant to or in connection with any litigation, arbitration or administrative proceedings or regulatory inquiry, in connection with or arising out of the entry into and the transactions contemplated by the Finance Documents, having the benefit of any Security constituted by the Finance Documents or which relates to the condition or operation of, or any incident occurring in relation to, the Vessel unless such cost, loss or liability is caused by the gross negligence or wilful misconduct of that Indemnified Person.

		
	(c)
	Without limiting, but subject to any limitations set out in paragraph (b) above, the indemnity in paragraph (b) above shall cover any cost, loss or liability incurred by each Indemnified Person in any jurisdiction:

		
	(i)
	arising or asserted under or in connection with any law relating to safety at sea, the ISM Code, any Environmental Law or any Sanctions; or

		
	(ii)
	in connection with any Environmental Claim.

		
	(d)
	Any Affiliate or any officer or employee of a Finance Party or of any of its Affiliates may rely on this Clause 14.2 (Other indemnities) subject to Clause 1.5 (Third party rights).

		
	14.3
	Mandatory Cost

The Borrower shall, on demand by the Facility Agent, pay to the Facility Agent for the account of the relevant Lender, such amount which any Lender certifies in a notice to the Facility Agent to be its good faith determination of the amount necessary to compensate it for complying with:
		
	(a)
	in the case of a Lender lending from a Facility Office in a Participating Member State, the minimum reserve requirements (or other requirements having the same or similar purpose) of the European Central Bank or any other authority or agency which replaces all or any of its functions) in respect of loans made from that Facility Office; and 

		
	(b)
	in the case of any Lender lending from a Facility Office in the United Kingdom, any reserve asset, special deposit or liquidity requirements (or other requirements having the same or similar purpose) of the Bank of England (or any other governmental authority or agency) and/or paying any fees to the U.K. Financial Conduct Authority and/or the U.K. Prudential Regulation Authority (or any other governmental authority or agency which replaces all or any of their functions),

which, in each case, is referable to that Lender’s participation in the Loan.
		
	14.4
	Indemnity to the Facility Agent

Each Obligor shall, on demand, indemnify the Facility Agent against:
		
	(a)
	any cost, loss or liability  incurred by the Facility Agent (acting reasonably) as a result of:

		
	(i)
	investigating any event which it reasonably believes is a Default; or

		
	(ii)
	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorized; or 

		
	(iii)
	instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under the Finance Documents; and 

		
	(b)
	any cost, loss or liability incurred by the Facility Agent (otherwise than by reason of the Facility Agent’s gross negligence or wilful misconduct) or, in the case of any cost, loss or liability pursuant to Clause 33.11 (Disruption to Payment Systems etc.) notwithstanding the Facility Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent in acting as Facility Agent under the Finance Documents.

		
	14.5
	Indemnity to the Security Agent

		
	(a)
	Each Obligor shall, on demand, indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them:

		
	(i)
	in relation to or as a result of:

		
	(A)
	any failure by the Borrower to comply with its obligations under Clause 16 (Costs and Expenses);

		
	(B)
	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorized;

		
	(C)
	the taking, holding, protection or enforcement of the Finance Documents and the Transaction Security;

		
	(D)
	the exercise of any of the rights, powers, discretions, authorities and remedies vested in the Security Agent and each Receiver and Delegate by the Finance Documents or by law;

		
	(E)
	any default by any Transaction Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents;

		
	(F)
	any action by any Transaction Obligor which vitiates, reduces the value of, or is otherwise prejudicial to, the Transaction Security; and

		
	(G)
	instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under the Finance Documents.

		
	(ii)
	acting as Security Agent, Receiver or Delegate under the Finance Documents or which otherwise relates to any of the Security Property or the performance of the terms of this Agreement or the other Finance Documents (otherwise, in each case, than by reason of the relevant Security Agent’s, Receiver’s or Delegate’s gross negligence or wilful misconduct). 

		
	(b)
	The Security Agent and every Receiver and Delegate may, in priority to any payment to the Creditor Parties, indemnify itself out of the Security Assets in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 14.5 (Indemnity to the Security Agent) and shall have a lien on the Transaction Security and the proceeds of the enforcement of the Transaction Security for all monies payable to it.

		
	15
	MITIGATION BY THE FINANCE PARTIES

		
	15.1
	Mitigation

		
	(a)
	Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 12 (Tax Gross Up and Indemnities), Clause 13 (Increased Costs) or paragraph (a) of Clause 14.3 (Mandatory Cost).

		
	(b)
	Paragraph (a) above does not in any way limit the obligations of any Transaction Obligor under the Finance Documents.

		
	15.2
	Limitation of liability

		
	(a)
	Each Obligor shall, on demand, indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 15.1 (Mitigation).

		
	(b)
	A Finance Party is not obliged to take any steps under Clause 15 (Mitigation by the Finance Parties) if either:

		
	(i)
	An Event of Default has occurred and is continuing; or 

		
	(ii)
	in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

		
	16
	COSTS AND EXPENSES

		
	16.1
	Transaction expenses

The Obligors shall, on demand, pay the Facility Agent, the Security Agent, the Arranger and the Underwriter the amount of all costs and expenses (including reasonable legal fees) reasonably incurred by any Creditor Party in connection with the negotiation, preparation, printing, execution, syndication and perfection of:
		
	(a)
	this Agreement and any other documents referred to in this Agreement;

		
	(b)
	the Transaction Security; and

		
	(c)
	any other Finance Documents executed after the date of this Agreement.

		
	16.2
	Amendment costs

If:
		
	(a)
	a Transaction Obligor requests an amendment, waiver or consent; or

		
	(b)
	an amendment is required pursuant to Clause 33.9 (Change of currency); or

		
	(c)
	a Transaction Obligor requests, and the Security Agent agrees to, the release of all or any part of the Security Assets from the Transaction Security,

the Obligors shall, on demand, reimburse each of the Facility Agent and the Security Agent for the amount of all costs and expenses (including reasonable legal fees) reasonably incurred by each Creditor Party in responding to, evaluating, negotiating or complying with that request or requirement.
		
	16.3
	Enforcement and preservation costs

The Obligors shall, on demand, pay to each Creditor Party the amount of all costs and expenses (including reasonable legal fees) incurred by that Creditor Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document or the Transaction Security and with any proceedings instituted by or against that Creditor Party as a consequence of it entering into a Finance Document, taking or holding the Transaction Security, or enforcing those rights.

SECTION 7 
 
GUARANTEE

		
	17
	GUARANTEE AND INDEMNITY

		
	17.1
	Guarantee and indemnity

In order to induce the Lenders to make the Loan to the Borrower, each Guarantor irrevocably and unconditionally jointly and severally:
		
	(a)
	guarantees to each Finance Party, as a primary obligor and not merely as a surety, punctual payment and performance by the Borrower of all the Borrower’s obligations under the Finance Documents;

		
	(b)
	undertakes with each Finance Party that whenever the Borrower does not pay any amount (whether for principal, interest, fees, expenses or otherwise) when due (whether at stated maturity, by acceleration or otherwise) under or in connection with any Finance Document, such Guarantor shall immediately on demand pay that amount as if it were the primary obligor; and

		
	(c)
	agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party immediately on demand against any cost, loss or liability it incurs as a result of the Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by such Guarantor under this indemnity will not exceed the amount it would have had to pay under this Clause 17 (Guarantee and Indemnity) if the amount claimed had been recoverable on the basis of a guarantee.

		
	17.2
	Continuing guarantee

This guarantee is a continuing guarantee that shall remain in full force and effect until the irrevocable payment and performance in full by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.  This guarantee constitutes a guarantee of punctual performance and payment and not merely of collection.
		
	17.3
	Reinstatement

If any discharge, release or arrangement (whether in respect of the obligations of Obligor or any security for those obligations or otherwise) is made by a Creditor Party in whole or in part on the basis of any payment, security or other disposition which is rescinded, discharged, avoided or reduced, or must be restored or returned, upon insolvency, bankruptcy, reorganization, liquidation, administration or otherwise, without limitation, then the liability of each Guarantor under this Clause 17 (Guarantee and Indemnity) will continue or be reinstated as if the discharge, release or arrangement had not occurred.
		
	17.4
	Waiver of defenses

The obligations of each Guarantor under this Clause 17 (Guarantee and Indemnity) and in respect of any Transaction Security are irrevocable, absolute and unconditional and shall not be affected or discharged by an act, omission, matter or thing which, but for this Clause 17.4 (Waiver of defenses), would reduce, release or prejudice any of its obligations under this Clause 17 (Guarantee and Indemnity) or in respect of any Transaction Security (without limitation and whether or not known to it or any Creditor Party) including (and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to):
		
	(a)
	any time, waiver or consent granted to, or composition with, any Obligor or other person;

		
	(b)
	the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

		
	(c)
	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect or delay in perfecting, or refusal or neglect to take up or enforce, or delay in taking or enforcing any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realize the full value of any Security Asset;

		
	(d)
	any incapacity or lack of power, authority or legal personality of or dissolution or change in the corporate or company structure, shareholders, members or status of an Obligor or any other person (including without limitation any change in the holding of such Obligor’s or other person’s Equity Interests);

		
	(e)
	any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document or any other document or security including, without limitation, any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or other document or security;

		
	(f)
	any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; 

		
	(g)
	any bankruptcy, insolvency or similar proceedings;

		
	(h)
	any election of remedies by a Creditor Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor or other rights of such Guarantor to proceed against any Obligor, any other guarantor or any other person or entity or any Security Asset;

		
	(i)
	any right of set-off or counterclaim against or in respect of the obligations of such Guarantor hereunder; or

		
	(j)
	any other circumstance whatsoever that might otherwise constitute a defense available to, or a legal or equitable discharge of, any Obligor.

		
	17.5
	Other waivers

Each Guarantor hereby unconditionally and irrevocably waives:
		
	(a)
	promptness, diligence, notice of acceptance, presentment, demand for performance, notice of non-performance, default, acceleration, protest or dishonor and any other notice and this guarantee and any requirement that a Creditor Party protect, secure, perfect or insure any Security or any property subject thereto or exhaust any right or take any action against an Obligor, any other guarantor or any other person or entity or any Security Asset;

		
	(b)
	any right to revoke this guarantee; and

		
	(c)
	any duty on the part of an Obligor to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of that Obligor or any of their respective Subsidiaries now or hereafter known by any Creditor Party.

		
	17.6
	Acknowledgment of benefits

Each Guarantor acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by the Finance Documents and that the waivers set forth in this Clause 17 (Guarantee and Indemnity) are knowingly made in contemplation of such benefits.
		
	17.7
	Immediate recourse

Each Guarantor waives any right it may have of first requiring any Creditor Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person (including without limitation to commence any proceedings under any Finance Document or to enforce any Transaction Security) before claiming or commencing proceedings under this Clause 17 (Guarantee and Indemnity).  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.
		
	17.8
	Appropriations

Until all amounts which may be or become payable by the Transaction Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Creditor Party (or any trustee or agent on its behalf) may:
		
	(a)
	refrain from applying or enforcing any other moneys, security or rights held or received by that Creditor Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and

		
	(b)
	hold in an interest-bearing suspense account any moneys received from a Guarantor or on account of a Guarantor’s liability under this Clause 17 (Guarantee and Indemnity).

		
	17.9
	Deferral of Guarantors’ rights

All rights which a Guarantor at any time has (whether in respect of this guarantee, a mortgage or any other transaction) against the Borrower, any other Transaction Obligor or their respective assets shall be fully subordinated to the rights of the Creditor Parties under the Finance Documents and until the end of the Security Period and unless the Facility Agent otherwise directs, no Guarantor will exercise its rights which it may have (whether in respect of any Finance Document to which it is a Party or any other transaction) by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 17 (Guarantee and Indemnity):
		
	(a)
	to be indemnified by any Transaction Obligor;

		
	(b)
	to claim any contribution from any third party providing security for, or any other guarantor of, any Transaction Obligor’s obligations under the Finance Documents;

		
	(c)
	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Creditor Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Creditor Party;

		
	(d)
	to bring legal or other proceedings for an order requiring any Transaction Obligor to make any payment, or perform any obligation, in respect of which a Guarantor has given a guarantee, undertaking or indemnity under Clause 17.1 (Guarantee and indemnity);

		
	(e)
	to exercise any right of set-off against any Transaction Obligor; and/or

		
	(f)
	to claim or prove as a creditor of any Transaction Obligor in competition with any Creditor Party.

If a Guarantor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Creditor Parties by the Transaction Obligors under or in connection with the Finance Documents to be repaid in full on trust for the Creditor Parties and shall promptly pay or transfer the same to the Facility Agent or as the Facility Agent may direct for application in accordance with Clause 33 (Payment Mechanics).
		
	17.10
	Additional security

This guarantee and any other Security given by each Guarantor is in addition to and is not in any way prejudiced by, and shall not prejudice, any other guarantee or Security or any other right of recourse now or subsequently held by any Creditor Party or any right of set-off or netting or right to combine accounts in connection with the Finance Documents.
		
	17.11
	Independent obligations

The obligations of each Guarantor under or in respect of this guarantee are independent of any other obligations of any other Obligor under or in respect of the Finance Documents, and a separate action or actions may be brought and prosecuted against each Guarantor to enforce this guarantee irrespective of whether any action is brought against any other Obligor or whether any other Obligor is joined in any such action or actions.
		
	17.12
	Limitation of liability

Each of the Guarantors and each of the Creditor Parties hereby confirms that it is its intention that the obligations under this guarantee not constitute a fraudulent transfer or conveyance for purposes of the U.S. Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar law.  To effectuate the foregoing intention, each of the Guarantors and each of the Creditor Parties hereby irrevocably agrees that the obligations guaranteed by each Guarantor under this guarantee shall be limited to such amount as will, after giving effect to such maximum amount and all other (contingent or otherwise) liabilities of such Guarantor that are relevant under such laws, result in the obligations of such Guarantor in respect of such maximum amount not constituting a fraudulent transfer or conveyance.
		
	17.13
	Applicability of provisions of Guarantee to other Security

Clauses 17.2 (Continuing guarantee), 17.3 (Reinstatement), 17.4 (Waiver of defenses), 17.5 (Other waivers), 17.6 (Acknowledgment of benefits), 17.7 (Immediate recourse), 17.8 (Appropriations), 17.9 (Deferral of Guarantors’ rights), 17.10 (Additional security), 17.11 (Independent obligations) and 17.12 (Limitation of liability) shall apply, with any necessary modifications, to any Security which a Guarantor creates (whether at the time at which it signs this Agreement or at any later time) to secure the Secured Liabilities or any part of them.

SECTION 8 
 
REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

		
	18
	REPRESENTATIONS

		
	18.1
	General 

Each Obligor jointly and severally makes the representations and warranties set out in this Clause 18 (Representations) to each Finance Party on the date of this Agreement.
		
	18.2
	Status

		
	(a)
	It is a corporation duly incorporated and validly existing in good standing under the law of its jurisdiction of incorporation, formation or organization.

		
	(b)
	It and each Transaction Obligor has the power to own its assets and carry on its business as it is being conducted.

		
	(c)
	It is duly qualified and in good standing as a foreign company in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed except where, in each case, the failure to so qualify or be licensed and be in good standing could not reasonably be expected to have a Material Adverse Effect.

		
	18.3
	Equity Interests and ownership

		
	(a)
	All of the Equity Interests of the Borrower that are issued and outstanding have been validly issued, are fully paid and non-assessable.

		
	(b)
	All of the Equity Interests of each Guarantor have been validly issued, are fully paid and non-assessable and are owned beneficially and of record by the Borrower, free and clear of any Security (except for Permitted Security).

		
	(c)
	None of the Equity Interests of any Guarantor are subject to any existing option, warrant, call, right (including pre-emption rights or similar rights), commitment or other agreement of any character to which such Guarantor is a party requiring, and there are no Equity Interests of any Guarantor outstanding which upon conversion or exchange would require, the issuance, sale or transfer of any additional Equity Interests of such Guarantor or other Equity Interests convertible into, exchangeable for or evidencing the right to subscribe for or purchase Equity Interests of any Guarantor.

		
	18.4
	Binding obligations

The obligations expressed to be assumed by it in each Transaction Document to which it is a party are legal, valid, binding and enforceable obligations.
		
	18.5
	Validity, effectiveness and ranking of Security

		
	(a)
	Each Finance Document to which it is a party does now or, as the case may be, will upon execution and delivery and, where applicable, registration as provided for in that Finance Document create the Security it purports to create over any assets to which such Security, by its terms, relates, and such Security will, when created, be valid and effective.

		
	(b)
	No third party has or will have any Security (except for Permitted Security) over any assets that are the subject of any Transaction Security granted by it.

		
	(c)
	The Transaction Security granted by it to the Security Agent or any other Creditor Party has or will when created or intended to be created have first ranking priority or such other priority it is expressed to have in the Finance Documents and is not subject to any prior ranking or pari passu ranking security.

		
	(d)
	No concurrence, consent or authorization of any person is required for the creation of or otherwise in connection with any Transaction Security.

		
	18.6
	Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, each Transaction Document to which it is a party do not and will not conflict with:
		
	(a)
	any law or regulation applicable to it;

		
	(b)
	its constitutional documents; or

		
	(c)
	any agreement or instrument binding upon it or any member of the Group or any member of the Group’s assets or constitute a default or termination event (however described) under any such agreement or instrument.

		
	18.7
	Power and authority

		
	(a)
	It has the power to enter into, perform and deliver, and has taken all necessary action to authorize:

		
	(i)
	its entry into, performance and delivery of, each Transaction Document to which it is or will be a party and the transactions contemplated by those Transaction Documents; and

		
	(ii)
	in the case of each Guarantor, the registration of the Vessel owned by it under the relevant Approved Flag.

		
	(b)
	No limit on its powers will be exceeded as a result of the borrowing, granting of security or giving of guarantees or indemnities contemplated by the Transaction Documents to which it is a party.

		
	18.8
	Validity and admissibility in evidence

All Authorizations required or desirable:
		
	(a)
	to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Transaction Documents to which it is a party; and

		
	(b)
	to make the Transaction Documents to which it is a party admissible in evidence in its Relevant Jurisdictions,

have been obtained or effected and are in full force and effect.
		
	18.9
	Governing law and enforcement

		
	(a)
	The choice of governing law of each Transaction Document to which it is a party will be recognized and enforced in its Relevant Jurisdictions.

		
	(b)
	Any judgment obtained in relation to a Transaction Document to which it is a party in the jurisdiction of the governing law of that Transaction Document will be recognized and enforced in its Relevant Jurisdictions.

		
	18.10
	Solvency; Insolvency Event; Creditor’s process

		
	(a)
	It is solvent because:

		
	(i)
	the sum of its assets, at a fair valuation, does and will exceed its liabilities, including, to the extent they are reportable as such in accordance with IFRS, contingent liabilities;

		
	(ii)
	the present fair market saleable value of its assets is not and shall not be less than the amount that will be required to pay its probable liability on its then existing debts, including, to the extent they are reportable as such in accordance with IFRS, contingent liabilities, as they mature;

		
	(iii)
	it does not and will not have unreasonably small working capital with which to continue its business; and

		
	(iv)
	it has not incurred, does not intend to incur and does not believe it will incur, debts beyond its ability to pay such debts as they mature.

		
	(b)
	No Insolvency Event or any expropriation, attachment, sequestration, distress or execution process (or any analogous creditor's process in any jurisdiction) that affects any of its assets has been taken or, to its knowledge, is threatened in relation to a member of the Group.

		
	18.11
	No filing or registration or stamp taxes

Under the laws of its Relevant Jurisdictions it is not necessary that the Finance Documents to which it is a party be registered, filed, recorded, notarized or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance Documents to which it is a party or the transactions contemplated by those Finance Documents which is referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Drawdown) and which will be made or paid promptly after the date of the relevant Finance Document.
		
	18.12
	Deduction of Tax

It is not required to make any Tax Deduction from any payment it may make under any Finance Document to which it is a party.
		
	18.13
	No default

		
	(a)
	No Event of Default and, on the date of this Agreement and on each Drawdown Date, no Default is continuing or might reasonably be expected to result from the making of any Drawdown or the entry into, the performance of, or any transaction contemplated by, any Transaction Document.

		
	(b)
	No other event or circumstance is outstanding which constitutes a default or a termination event (however described) under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries’) assets are subject.

		
	18.14
	No misleading information

		
	(a)
	Any factual information provided by any member of the Group for the purposes of this Agreement was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it is stated.

		
	(b)
	The financial projections contained in any such information have been prepared on the basis of recent historical information and on the basis of reasonable assumptions.

		
	(c)
	Nothing has occurred or been omitted from any such information and no information has been given or withheld that results in any such information being untrue or misleading in any material respect.

		
	18.15
	Financial Statements

		
	(a)
	The Borrower’s Original Financial Statements were prepared in accordance with IFRS consistently applied unless expressly disclosed to the Facility Agent in writing to the contrary before the date of this Agreement.

		
	(b)
	The Borrower’s Original Financial Statements give a fair presentation of its financial position, results of operations and cash flows as at the end of the relevant Fiscal Year unless expressly disclosed to the Facility Agent in writing to the contrary before the date of this Agreement.

		
	(c)
	There has been no material adverse change in its or any Obligor’s assets, business or financial condition (or the assets, business or consolidated financial condition of the Group, in the case of the Borrower) since December 31, 2015.

		
	(d)
	The Borrower’s most recent financial statements delivered pursuant to Clause 19.2 (Financial statements):

		
	(i)
	have been prepared in accordance with Clause 19.4 (Requirements as to financial statements); and

		
	(ii)
	give a true and fair view of (if audited) or fairly represent (if unaudited) its financial condition as at the end of the relevant Fiscal Year and operations during the relevant Fiscal Year.

		
	(e)
	Since the date of the most recent financial statements delivered pursuant to Clause 19.2 (Financial statements) there has been no material adverse change in its or any Transaction Obligor’s business, assets or financial condition (or the business or consolidated financial condition of the Group, in the case of the Borrower).

		
	18.16
	Pari passu ranking

Its payment obligations under the Finance Documents to which it is a party rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.
		
	18.17
	No proceedings pending or threatened

No litigation, arbitration or administrative proceedings or investigations (including proceedings or investigations relating to any alleged or actual breach of the ISM Code or of the ISPS Code or any Sanctions) of or before any court, arbitral body or agency have (to the best of its knowledge and belief (having made due and careful inquiry)) been started or threatened against it or any member of the Group.
		
	18.18
	Validity and completeness of the Transaction Documents

		
	(a)
	Each of the Transaction Documents to which a Transaction Obligor is a party constitutes legal, valid, binding and enforceable obligations of each Transaction Obligor.

		
	(b)
	The copies of the Transaction Documents delivered to the Facility Agent before the date of this Agreement are true and complete copies.

		
	(c)
	No amendments or additions to the Transaction Documents have been agreed nor has any Transaction Obligor waived any of its respective rights under the Transaction Documents.

		
	18.19
	Valuations

		
	(a)
	All information supplied by it or on its behalf to an Approved Appraiser for the purposes of a valuation delivered to the Facility Agent in accordance with this Agreement was true and accurate as at the date it was supplied or (if appropriate) as at the date (if any) at which it is stated to be given.

		
	(b)
	It has not omitted to supply any information to an Approved Appraiser which, if disclosed, would adversely affect any valuation prepared by such Approved Appraiser.

		
	(c)
	There has been no change to the factual information provided pursuant to paragraph (a) above in relation to any valuation between the date such information was provided and the date of that valuation which, in either case, renders that information untrue or misleading in any material respect.

		
	18.20
	No breach of laws

It has not breached any law or regulation which breach has or is reasonably likely to have a Material Adverse Effect.
		
	18.21
	No Charter

No Vessel is subject to any Charter other than a Permitted Charter.
		
	18.22
	Compliance with Environmental Laws

All Environmental Laws relating to the ownership, operation and management of each Vessel and the business of each Transaction Obligor (as now conducted and as reasonably anticipated to be conducted in the future) and the terms of all Environmental Approvals have been complied with.
		
	18.23
	No Environmental Claim

No Environmental Claim which, in any case, could reasonably be expected to (i) exceed $500,000, or (ii) result in a Material Adverse Effect, has been made or, to the knowledge of the Obligors, threatened against any member of the Group or any Vessel. 
		
	18.24
	No Environmental Incident

No Environmental Incident has occurred and, to the knowledge of the Obligors, no person has claimed that an Environmental Incident has occurred.
		
	18.25
	ISM and ISPS Code compliance

All requirements of the ISM Code and the ISPS Code as they relate to each Guarantor, the Approved Manager and each Vessel have been complied with.
		
	18.26
	Taxes paid

		
	(a)
	It has timely filed or has caused to be filed all tax returns and other reports that it is required by law or regulation to file in the U.S. or any Relevant Jurisdiction, and has paid or caused to be paid all taxes, assessments and other similar charges that are due and payable in the U.S. or any Relevant Jurisdiction, other than any Taxes:

		
	(i)
	which (A) are not yet due and payable or (B) are being contested in good faith by appropriate proceedings and for which adequate reserves have been established and as to which such failure to have paid such Tax does not create any risk of sale, forfeiture, loss, confiscation or seizure of any of its assets or of criminal liability; or

		
	(ii)
	the non-payment of which could not reasonably be expected to have a Material Adverse Effect.  

The charges, accruals, and reserves on its books respecting taxes are adequate in accordance with IFRS.
		
	(b)
	No material claim for any Tax has been asserted against it by any Relevant Jurisdiction or other taxing authority other than claims that are included in the liabilities for taxes in its most recent balance sheet or disclosed in the notes thereto, if any.

		
	(c)
	The execution, delivery, filing and registration or recording (if applicable) of the Finance Documents and the consummation of the transactions contemplated thereby will not cause any of the Creditor Parties to be required to make any registration with, give any notice to, obtain any license, permit or other authorization from, or file any declaration, return, report or other document with any governmental authority in any Relevant Jurisdiction.

		
	(d)
	No Taxes are required by any governmental authority in any Relevant Jurisdiction to be paid with respect to or in connection with the execution, delivery, filing, recording, performance or enforcement of any Finance Document.

		
	(e)
	The execution, delivery, filing, registration, recording, performance and enforcement of the Finance Documents by any of the Creditor Parties will not cause such Creditor Party to be subject to taxation under any law or regulation of any governmental authority in any Relevant Jurisdiction of any Obligor.

		
	(f)
	It is not necessary for the legality, validity, enforceability or admissibility into evidence of this Agreement or any other Finance Document that any stamp, registration or similar taxes be paid on or in relation to this Agreement or any of the other Finance Documents.

		
	18.27
	Financial Indebtedness

No Guarantor has any Financial Indebtedness outstanding other than as permitted by this Agreement.
		
	18.28
	Intellectual property

Except for those with respect to which the failure to own or license could not reasonably be expected to have a Material Adverse Effect, it owns or has the right to use all patents, trademarks, permits, service marks, trade names, copyrights, franchises, formulas, licenses and other rights with respect thereto, and has obtained assignment of all licenses and other rights of whatsoever nature, that are material to its business as currently contemplated without any conflict with the rights of others.
		
	18.29
	Good title to assets

		
	(a)
	It has good, valid and marketable title to, or valid leases or licenses of, and all appropriate Authorizations to use, the assets necessary to carry on its business as presently conducted.

		
	(b)
	It has not created and is not contractually bound to create any Security on or with respect to any of its assets, properties, rights or revenues, except for Permitted Security, and except as provided in this Agreement, it is not restricted by contract, applicable law or regulation or otherwise from creating Security on any of its assets, properties, rights or revenues.

		
	18.30
	Ownership

		
	(a)
	Each Guarantor is the sole legal and beneficial owner of the Vessel owned by it, its Earnings and its Insurances. 

		
	(b)
	With effect on and from the date of its creation or intended creation, each Transaction Obligor will be the sole legal and beneficial owner of any asset that is the subject of any Transaction Security created or intended to be created by such Transaction Obligor.

		
	(c)
	The constitutional documents of each Obligor do not and could not restrict or inhibit any transfer of the shares of the Guarantors on creation or enforcement of the security conferred by the Security Documents.

		
	18.31
	Margin stock

It is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock and no proceeds of any Advance will be used to buy or carry any Margin Stock or to extend credit to others for the purpose of buying or carrying any Margin Stock.
		
	18.32
	Place of business

For purposes of the UCC, it has only one place of business located at, or, if it has more than one place of business, the chief executive office from which it manages the main part of its business operations and conducts its affairs is located at:
9, Boulevard Charles III
Monaco 98000

It does not have a place of business in the U.S., the District of Columbia, the U.S. Virgin Islands, or any territory or insular possession subject to the jurisdiction of the U.S, other than its representative office at: 
150 East 58th Street 
New York, New York, 10155

		
	18.33
	Pension plans

		
	(a)
	None of the Obligors or any ERISA Affiliate is a party to a Plan or a Multiemployer Plan and none of the Obligors is a party to a Foreign Pension Plan.

		
	(b)
	No Obligor is deemed to be an entity any of whose underlying assets constitute “plan assets” within the meaning of Section 3(42) of ERISA.

		
	(c)
	The execution and delivery of this Agreement by the Obligors and the consummation of the transactions hereunder will not involve any non-exempt “prohibited transaction” for purposes of Section 406 of ERISA or Section 4975 of the Code that could result in any liability to the Lenders under Section 502 of ERISA or Section 4975 of the Code, assuming, for this purpose, that the funds loaned to the Borrower by the Lenders under this Agreement are not themselves “plan assets” subject to ERISA or Section 4975 of the Code.

		
	(d)
	No ERISA Termination Event has occurred in the five years prior to the date of this Agreement.

		
	(e)
	No ERISA Funding Event exists or has occurred in the five years prior to the date of this Agreement. 

		
	18.34
	Sanctions 

		
	(a)
	No Obligor:

		
	(i)
	and no director or officer of a Transaction Obligor, is a Prohibited Person;

		
	(ii)
	is owned or controlled by or acting directly or, to the knowledge of the Borrower, indirectly on behalf of or for the benefit of, a Prohibited Person; or

		
	(iii)
	owns or controls a Prohibited Person.

		
	(b)
	No proceeds of the Loan shall be made available, directly or, to the knowledge of the Borrower, indirectly, to or for the benefit of a Prohibited Person nor shall they be otherwise directly or, to the knowledge of the Borrower, indirectly, applied in a manner or for a purpose prohibited by Sanctions.

		
	18.35
	Investment company, public utility, etc.

It is not:
		
	(a)
	an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended; or

		
	(b)
	a “public utility” within the meaning of the U.S. Federal Power Act of 1920, as amended.

		
	18.36
	Immunity; enforcement; submission to jurisdiction; choice of law

		
	(a)
	It is subject to civil and commercial law with respect to its obligations under the Finance Documents, and the execution, delivery and performance by it of the Finance Documents to which it is a party constitute private and commercial acts rather than public or governmental acts.  

		
	(b)
	Neither it nor any of its properties has any immunity from suit, court jurisdiction, attachment prior to judgment, attachment in aid of execution of a judgment, set-off, execution of a judgment or from any other legal process in relation to any Finance Document.

		
	(c)
	It is not necessary under the laws of its jurisdiction of incorporation or formation, in order to enable any Creditor Party to enforce its rights under any Finance Document or by reason of the execution of any Finance Document or the performance by it of its obligations under any Finance Document, that such Creditor Party should be licensed, qualified or otherwise entitled to carry on business in such Obligor's jurisdiction of incorporation or formation.  

		
	(d)
	Other than the recording of the Mortgages in accordance with the laws of the Republic of The Marshall Islands and such filings as may be required in a Relevant Jurisdiction in respect of certain of the Finance Documents, and the payment of fees consequent thereto, it is not necessary for the legality, validity, enforceability or admissibility into evidence of this Agreement or any other Finance Document that any of them or any document relating thereto be registered, filed recorded or enrolled with any court or authority in any Relevant Jurisdiction.

		
	(e)
	The execution, delivery, filing, registration, recording, performance and enforcement of the Finance Documents by any of the Creditor Parties will not cause such Creditor Party to be deemed to be resident, domiciled or carrying on business in any Relevant Jurisdiction of any Obligor or subject to taxation under any law or regulation of any governmental authority in any Relevant Jurisdiction of any Obligor.

		
	(f)
	Under the law of its jurisdiction of incorporation or formation, the choice of the law of New York to govern this Agreement and the other Finance Documents to which New York law is applicable is valid and binding.

		
	(g)
	The submission by it to the jurisdiction of the New York State courts and the U.S. Federal court sitting in New York County pursuant to Clause 46.1 (Jurisdiction) is valid and binding and not subject to revocation, and service of process effected in the manner set forth in Clause 48.2 (Service of process) will be effective to confer personal jurisdiction over it in such courts.

		
	18.37
	Repetition

The Repeating Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on the date of each Drawdown Request and the first day of each Interest Period.

		
	19
	INFORMATION UNDERTAKINGS

		
	19.1
	General

The undertakings in this Clause 19 (Information Undertakings) remain in force throughout the Security Period unless the Facility Agent, acting with the authorization of the Majority Lenders (or, where specified, all the Lenders), may otherwise permit.
		
	19.2
	Financial statements

		
	(a)
	Subject to paragraph (b) below, the Borrower shall supply to the Facility Agent electronic copies:

		
	(i)
	as soon as it becomes available, but in any event within 180 days after the end of each of its Fiscal Years an annual report on Form 20-F (or any successor form) containing the audited financial and other information required to be contained therein for such Fiscal Year of the Borrower; 

		
	(ii)
	as soon as the same become available, but in any event within 90 days after the end of the first, second and third quarter of each of its Fiscal Years:

		
	(A)
	 the unaudited consolidated financial statement of the Borrower for that quarter of that Fiscal Year on Form 6-K (or any successor form); and 

		
	(B)
	as soon as possible, but in no event later than 90 days after the end of each of its Fiscal Years an annual budget for the Borrower.

		
	(b)
	To the extent that the financial statements and other information required to be provided by the Borrower to the Facility Agent under paragraph (a) above are published on the internet by, or on behalf of the Borrower, notice of such publication must be made within 5 Business Days of such publication.

		
	19.3
	Compliance Certificate

		
	(a)
	The Borrower shall supply to the Facility Agent, with each set of financial statements delivered pursuant to sub-paragraphs (i) and (ii) of paragraph (a) of Clause 19.2 (Financial statements), a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 20 (Financial Covenants) as at the date as at which those financial statements were drawn up.

		
	(b)
	Each Compliance Certificate shall be signed by the chief financial officer (or equivalent) of the Borrower as appropriate and, if required to be delivered with the financial statements delivered pursuant to sub-paragraphs (i) and (ii) of paragraph (a) of Clause 19.2 (Financial statements), shall be reported on by the Borrower’s auditors in the form agreed by the Borrower and all the Lenders before the date of this Agreement.

		
	19.4
	Requirements as to financial statements

		
	(a)
	Each set of financial statements delivered by the Borrower pursuant to Clause 19.2 (Financial statements) shall be certified by the chief financial officer (or equivalent) of the relevant Obligor as being a fair presentation of the financial position, results of operations and cash flows of such Obligor as at the date as at which those financial statements were prepared.

		
	(b)
	The Borrower shall procure that each set of financial statements delivered pursuant to Clause 19.2(a)(i) (Financial statements) was audited by an Acceptable Accounting Firm.

		
	(c)
	The Borrower shall procure that each set of financial statements delivered pursuant to Clause 19.2 (Financial statements) is prepared using IFRS, accounting practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements for the Borrower unless, in relation to any set of financial statements, it notifies the Facility Agent that there has been a change in IFRS, the accounting practices or reference periods and its auditors (or, if appropriate, the auditors of the Borrower) deliver to the Facility Agent:

		
	(i)
	a description of any change necessary for those financial statements to reflect the IFRS, accounting practices and reference periods upon which the Borrower’s Original Financial Statements were prepared; and

		
	(ii)
	sufficient information, in form and substance as may be reasonably required by the Facility Agent, to enable the Lenders to determine whether Clause 20 (Financial Covenants) has been complied with and make an accurate comparison between the financial position indicated in those financial statements and the Borrower’s Original Financial Statements.

Any reference in this Agreement to those financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial Statements were prepared.
		
	19.5
	Information: miscellaneous

Each Obligor shall supply to the Facility Agent in electronic format:
		
	(a)
	all documents dispatched by it to its shareholders (or any class of them) or its creditors generally at the same time as they are dispatched;

		
	(b)
	promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings or investigations (including proceedings or investigations relating to any alleged or actual breach of the ISM Code or of the ISPS Code) which are current, threatened or pending against any member of the Group, and which might, if adversely determined, have a Material Adverse Effect;

		
	(c)
	promptly, its constitutional documents where these have been amended or varied;

		
	(d)
	promptly, such further information and/or documents regarding:

		
	(i)
	each Vessel, goods transported on each Vessel, its Earnings or its Insurances;

		
	(ii)
	the Security Assets;

		
	(iii)
	compliance of the Transaction Obligors with the terms of the Finance Documents;

		
	(iv)
	the financial condition, business and operations of any Obligor,

as any Finance Party (through the Facility Agent) may reasonably request; and 
		
	(e)
	promptly, such further information and/or documents as any Finance Party (through the Facility Agent) may reasonably request so as to enable such Finance Party to comply with any laws applicable to it or as may be required by any regulatory authority (including without limitation compliance with FATCA).

		
	19.6
	Notification of Default

		
	(a)
	Each Obligor shall, and shall procure that each other Transaction Obligor shall, notify the Facility Agent (i) of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor); and (ii) promptly upon becoming aware of the same, of any breach of any Sanctions applicable to a Vessel, any Transaction Obligor or any party to any agreement relating to a Vessel.

		
	(b)
	Promptly upon a request by the Facility Agent, the Borrower shall supply to the Facility Agent a certificate signed by its chief financial officer (or another executive officer) on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

		
	19.7
	Use of websites

		
	(a)
	Each Obligor may satisfy its obligation under the Finance Documents to which it is a party to deliver any information in relation to the Lenders by posting this information onto an electronic website designated by the Borrower and the Facility Agent (the “Designated Website”) if:

		
	(i)
	the Facility Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;

		
	(ii)
	both the relevant Obligor and the Facility Agent are aware of the address of and any relevant password specifications for the Designated Website; and

		
	(iii)
	the information is in a format previously agreed between the relevant Obligor and the Facility Agent. 

		
	(b)
	The Facility Agent shall supply each Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Obligors or any of them and the Facility Agent. 

		
	(c)
	An Obligor shall promptly upon becoming aware of its occurrence notify the Facility Agent if:

		
	(i)
	the Designated Website cannot be accessed due to technical failure;

		
	(ii)
	the password specifications for the Designated Website change;

		
	(iii)
	any new information which is required to be provided under this Agreement is posted onto the Designated Website;

		
	(iv)
	any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

		
	(v)
	the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software. 

If an Obligor notifies the Facility Agent under sub-paragraph (i) or (v) of paragraph (c) above, all information to be provided by the Obligors under this Agreement after the date of that notice shall be supplied in paper form unless and until the Facility Agent and each Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.
		
	19.8
	 “Know your customer” checks

		
	(a)
	If:

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

		
	(ii)
	any change in the status of an Obligor (including, without limitation, a change of ownership of an Obligor) after the date of this Agreement; or

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

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

		
	19.9
	Change of place of business

The Borrower shall notify the Facility Agent promptly of any change in the location of the place of business where an Obligor conducts its affairs and keeps its records.
		
	19.10
	Information provided to be accurate

All financial and other information which is provided in writing by or on behalf of any Obligor under or in connection with any Finance Document shall be true and not misleading and shall not omit any material fact or consideration.

		
	20
	FINANCIAL COVENANTS

		
	20.1
	Financial covenants

The undertakings in this Clause 20 (Financial Covenants) remain in force throughout the Security Period except as the Facility Agent, acting with the authorization of the Majority Lenders (or, where specified, all the Lenders) may otherwise permit.
		
	20.2
	Maximum leverage

The Borrower shall maintain a ratio of Consolidated Funded Debt to Consolidated Total Capitalization of not more than .60 to 1.00, to be tested on the last day of each fiscal quarter.
		
	20.3
	Minimum Consolidated Tangible Net Worth

The Borrower shall maintain a Consolidated Tangible Net Worth greater than $677,286,768 plus (a) 25 percent of the Borrower’s cumulative, positive consolidated net income for each fiscal quarter commencing on or after October 1, 2013, and (b) 50 percent of the Equity Proceeds realized from the issuance of Equity Interests in the Borrower occurring on or after October 1, 2013. 
		
	20.4
	Minimum interest coverage

The Borrower shall maintain a ratio of Consolidated EBITDA to Consolidated Net Interest Expense of not less than 2.50 to 1.00.  Such ratio shall be calculated quarterly on the last day of each fiscal quarter on a trailing four quarters basis. 
		
	20.5
	Free liquidity

The Borrower shall maintain Consolidated Liquidity, including all amounts on deposit with any bank, of not less than the greater of (a) $25,000,000 and (b) $500,000 per vessel owned by a wholly owned direct or indirect subsidiary of the Borrower (including, but not limited to, the Vessels).

		
	21
	GENERAL UNDERTAKINGS

		
	21.1
	General 

The undertakings in this Clause 21 (General Undertakings) remain in force throughout the Security Period except as the Facility Agent, acting with the authorization of the Majority Lenders (or, where specified, all the Lenders) may otherwise permit.
		
	21.2
	Authorizations

Each Obligor shall, and shall procure that each other Transaction Obligor will, promptly:
		
	(a)
	obtain, comply with and do all that is necessary to maintain in full force and effect; and

		
	(b)
	supply certified copies to the Facility Agent of, 

any Authorization required under any law or regulation of a Relevant Jurisdiction or the state of the Approved Flag at any time of each Vessel to enable it to:
		
	(i)
	perform its obligations under the Transaction Documents to which it is a party;

		
	(ii)
	ensure the legality, validity, enforceability or admissibility in evidence in any Relevant Jurisdiction or in the state of the Approved Flag at any time of each Vessel or any Transaction Document to which it is a party; and 

		
	(iii)
	own and operate the relevant Vessel (in the case of each Guarantor).

		
	21.3
	Compliance with laws

Each Obligor shall, and shall procure that each other Transaction Obligor will, comply in all respects with all laws and regulations to which it may be subject, if failure so to comply has or is reasonably likely to have a Material Adverse Effect.
		
	21.4
	Environmental compliance

Each Obligor shall, and shall procure that each other Transaction Obligor will:
		
	(a)
	comply with all Environmental Laws;

		
	(b)
	obtain, maintain and ensure compliance with all requisite Environmental Approvals;

		
	(c)
	implement procedures to monitor compliance with and to prevent liability under any Environmental Law, 

where failure to do so has or is reasonably likely to have a Material Adverse Effect.
		
	21.5
	Environmental claims

Each Obligor shall, and shall procure that each other Transaction Obligor will (through the Borrower), promptly upon becoming aware of the same, inform the Facility Agent in writing of:
		
	(a)
	any Environmental Claim against any Transaction Obligor which is current, pending or threatened; and

		
	(b)
	any facts or circumstances which are reasonably likely to result in any Environmental Claim being commenced or threatened against any Transaction Obligor,

where the claim, if determined against that Transaction Obligor, has or is reasonably likely to have a Material Adverse Effect.
		
	21.6
	Environmental Incidents

Each Obligor shall, and shall procure that each other Transaction Obligor will, take, or cause to be taken, such actions as may be reasonably required to mitigate potential liability to it arising out of Environmental Incidents or as may be reasonably required to protect the interests of the Creditor Parties with respect thereto.
		
	21.7
	Taxation

		
	(a)
	Each Obligor shall pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

		
	(i)
	such payment is being contested in good faith;

		
	(ii)
	adequate reserves are maintained for those Taxes and the costs required to contest them have been disclosed in its latest financial statements delivered to the Facility Agent under Clause 19.2 (Financial statements); and

		
	(iii)
	such payment can be lawfully withheld and failure to pay those Taxes does not have or is not reasonably likely to have a Material Adverse Effect.

		
	(b)
	No Obligor shall change its residence for Tax purposes.

		
	21.8
	Performance of obligations

Each Obligor shall, and shall procure that each other Transaction Obligor will, duly observe and perform its obligations under each Finance Document to which it is or is to become a party.
		
	21.9
	Pari passu ranking

Each Obligor shall, and shall procure that each other Transaction Obligor will, ensure that at all times any unsecured and unsubordinated claims of a Finance Party against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.
		
	21.10
	Title

		
	(a)
	Each Guarantor shall, in respect of the Vessel owned by it, hold the legal title to, and own the entire beneficial interest in:

		
	(i)
	such Vessel, its Earnings and its Insurances; and

		
	(ii)
	with effect on and from its creation or intended creation, any other assets the subject of any Transaction Security created or intended to be created by such Guarantor. 

		
	(b)
	The Borrower shall hold the legal title to, and own the entire beneficial interest in with effect on and from its creation or intended creation, any assets the subject of any Transaction Security created or intended to be created by the Borrower. 

		
	21.11
	Books of record and account; separate accounts

		
	(a)
	Each of the Obligors shall keep separate and proper books of record and account in which full and materially correct entries shall be made of all financial transactions and the assets and business of each of such Obligor in accordance with IFRS, and the Facility Agent shall have the right to examine the books and records of such Obligor wherever the same may be kept from time to time as it sees fit, in its sole reasonable discretion, or to cause an examination to be made by a firm of accountants selected by it, provided that any examination shall be done only once annually so long as no Event of Default has occurred and is continuing and without undue interference with the day to day business operations of such Obligor.

		
	(b)
	Each of the Obligors shall keep separate accounts and shall not co-mingle assets with each other or any other person nor become a member of a VAT Group.

		
	21.12
	Separate existence in good standing

Each Obligor shall do or cause to be done all things necessary to preserve and keep in full force and effect its separate identity and existence in good standing under the laws of its jurisdiction of incorporation.
		
	21.13
	Conduct of business

		
	(a)
	The Borrower shall conduct business only in connection with, or for the purpose of, owning,  managing, chartering and operating the Vessels and other vessels and directly or indirectly owning the Equity Interests of each Guarantor and other vessel owning companies.

		
	(b)
	Each Guarantor shall conduct business only in connection with, or for the purpose of, owning, managing, chartering and operating the Vessel owned by it.

		
	(c)
	Each Obligor shall conduct business in its own name and observe all corporate and other formalities required by its constitutional documents.

		
	21.14
	Properties

		
	(a)
	Except to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect, each Obligor shall maintain and preserve all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted.

		
	(b)
	Each Obligor shall obtain and maintain good and marketable title or the right to use or occupy all real and personal properties and assets (including intellectual property) reasonably required for the conduct of its business.

		
	(c)
	Each Obligor shall maintain and protect its intellectual property and conduct its business and affairs without infringement of or interference with any intellectual property of any other person in any material respect and shall comply in all material respects with the terms of its licenses.

		
	21.15
	Loan proceeds

The Borrower shall use the proceeds of the Loan solely to partially refinance the Existing Indebtedness and for other general corporate purposes.
		
	21.16
	Subordination of loans

Each Guarantor shall cause all loans made to it by any Affiliate (with the exception of permitted credits not exceeding $250,000 per Vessel owed to each Approved Manager), parent or subsidiary and all sums and other obligations (financial or otherwise) owed by it to any Affiliate, parent or subsidiary to be fully subordinated to all Secured Liabilities pursuant to a Subordination Agreement.
		
	21.17
	Asset control

Each Obligor shall to the best of its knowledge and ability ensure that it is not owned or controlled by, or acting directly or indirectly on behalf of or for the benefit of, a Prohibited Person and does not own or control a Prohibited Person.
		
	21.18
	Sanctions

		
	(a)
	Each Obligor shall ensure that no part of the proceeds of the Loan or other transactions contemplated by this Agreement or any other Finance Document shall, directly or, to its knowledge, indirectly, be used or otherwise made available:

		
	(i)
	to fund any trade, business or other activity involving any Prohibited Person;

		
	(ii)
	for the direct or indirect benefit of any Prohibited Person; or

		
	(iii)
	in any other manner that would reasonably be expected to result in (1) the occurrence of an Event of Default under Clause 26.18 (Prohibited Person), or (2) any Affiliate of an Obligor or any other person being party to or benefitting from any Finance Document being in breach of any Sanctions (if and to the extent applicable to any of them) or becoming a Prohibited Person.

		
	(b)
	Each Obligor shall ensure that its assets (including, without limitation, each Vessel) shall not be used directly or, to its knowledge, indirectly:

		
	(i)
	by or for the direct or indirect benefit of any Prohibited Person; or

		
	(ii)
	in any trade which is prohibited under applicable Sanctions or which could reasonably be expected to expose any Obligor, any asset subject to Security under the Finance Documents, any Creditor Party, any other person being party to or benefitting from any Finance Document, any Approved Manager, any operator, crew or insurers to enforcement proceedings or any other consequences whatsoever arising from Sanctions.

		
	21.19
	Money laundering

Each Obligor shall to the best of its knowledge and ability comply, and cause each of its Subsidiaries to comply, with any applicable law or regulation implemented to combat “money laundering”, including without limitation the PATRIOT Act and the Bank Secrecy Act.
		
	21.20
	Pension plans

Promptly upon the institution of a Plan, a Multiemployer Plan or a Foreign Pension Plan by any Obligor, the Borrower shall furnish or cause to be furnished to the Facility Agent written notice thereof and, if requested by the Facility Agent or any Lender, a copy of such Plan, Multiemployer Plan or Foreign Pension Plan.
		
	21.21
	Maintenance of status 

		
	(a)
	The Borrower will: 

		
	(i)
	maintain its separate corporate existence and remain in good standing under the laws of the Republic of The Marshall Islands; 

		
	(ii)
	remain listed on the New York Stock Exchange; and 

		
	(iii)
	procure that each Guarantor shall maintain its separate corporate existence and remain in goodstanding under the laws of the Republic of The Marshall Islands. 

		
	21.22
	Securitization

Each Obligor shall, and the Obligors shall procure that each Transaction Obligor will provide such information as required by the Facility Agent and/or any Lender in order to effect a securitization (or similar transaction) in respect of the Facility and the Finance Documents and such Transaction Obligor’s reasonable costs for providing such assistance shall be met by the relevant Lender. 
		
	21.23
	Negative pledge

		
	(a)
	No Obligor shall create or permit to subsist any Security over any of its assets (including without limitation in the case of each Guarantor its Equity Interests) subject to the Security created or intended to be created by the Finance Documents. 

		
	(b)
	No Obligor shall:

		
	(i)
	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other member of the Group;

		
	(ii)
	sell, transfer or otherwise dispose of any of its receivables on recourse terms;

		
	(iii)
	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

		
	(iv)
	enter into any other preferential arrangement having a similar effect,

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.
		
	(c)
	Paragraphs (a) and (b) above do not apply to any Permitted Security.

		
	21.24
	Disposals

		
	(a)
	No Obligor shall enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of all or substantially all of its assets (including without limitation any Vessel, its Earnings or its Insurances) unless the applicable portion of the Loan is repaid in accordance with the provisions of Clause 7.4 (Mandatory prepayment on sale or Total Loss).

		
	(b)
	Paragraph (a) above does not apply to any Charter to which Clause 23.16 (Restrictions on chartering, appointment of managers etc.) applies or to any Approved Pooling Arrangement.

		
	21.25
	Merger

No Obligor shall enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction. 
		
	21.26
	Change of business

		
	(a)
	The Borrower shall procure that no substantial change is made to the general nature of the business of the Borrower or the Group from that carried on at the date of this Agreement.

		
	(b)
	No Guarantor shall engage in any business other than the ownership, operation and employment of the Vessel owned by it.

		
	21.27
	Financial Indebtedness 

No Guarantor shall, incur or permit to be outstanding any Financial Indebtedness except Permitted Financial Indebtedness.
		
	21.28
	Expenditure

Neither the Borrower nor any Guarantor shall incur any expenditure, except for expenditure reasonably incurred in the ordinary course of owning, operating, maintaining and repairing its Vessel.  
		
	21.29
	Equity Interests 

No Guarantor shall:
		
	(a)
	purchase, cancel, redeem or retire any of its Equity Interests;

		
	(b)
	increase or reduce its authorized Equity Interests;

		
	(c)
	issue any additional Equity Interests except to the Borrower and provided such new Equity Interests are made subject to the terms of the Shares Security applicable to that Guarantor immediately upon the issue thereof in a manner satisfactory to the Facility Agent and the terms of the Shares Security are complied with;

		
	(d)
	appoint any additional directors or officers (or equivalent) of that Guarantor (unless the provisions of the Shares Security applicable to that Guarantor are complied with). 

		
	21.30
	Dividends

No Guarantor shall make or pay (or set aside any funds to pay) any dividend or other distribution (in cash or in kind) in respect of its Equity Interests following the occurrence of a Potential Event of Default or where the making or payment of such dividend or distribution would result in the occurrence of an Event of Default.
		
	21.31
	Accounts

No Guarantor shall open or maintain any account with any bank or financial institution except the Accounts for the purposes of the Finance Documents. 
		
	21.32
	Other transactions

No Guarantor shall:
		
	(a)
	be the creditor in respect of any loan or any form of credit to any person other than another Obligor and where such loan or form of credit is Permitted Financial Indebtedness;

		
	(b)
	give or allow to be outstanding any guarantee or indemnity to or for the benefit of any person in respect of any obligation of any other person or enter into any document under which that Guarantor assumes any liability of any other person other than any guarantee or indemnity given under the Finance Documents.

		
	(c)
	enter into any material agreement other than:

		
	(i)
	the Transaction Documents;

		
	(ii)
	any other agreement expressly allowed under any other term of this Agreement; and

		
	(d)
	enter into any transaction or series of transactions on terms which are, in any respect, less favorable to that Guarantor than those which it could obtain in a bargain made at arms’ length; or 

		
	(e)
	acquire any shares or other securities other than U.S. or U.K. Treasury bills and certificates of deposit issued by major North American or European banks.

		
	21.33
	Unlawfulness, invalidity and ranking; Security imperiled

No Obligor shall, and the Obligors shall procure that no other Transaction Obligor will, do (or fail to do) or cause or permit another person to do (or omit to do) anything which is likely to:
		
	(a)
	make it unlawful for a Transaction Obligor to perform any of its obligations under the Transaction Documents;

		
	(b)
	cause any obligation of a Transaction Obligor under the Transaction Documents to cease to be legal, valid,  binding or enforceable;

		
	(c)
	cause any Transaction Document to cease to be in full force and effect;

		
	(d)
	cause any Transaction Security to rank after, or lose its priority to, any other Security; and

		
	(e)
	imperil or jeopardize the Transaction Security. 

		
	21.34
	Changes to Fiscal Year

No Obligor shall change its Fiscal Year or its year end accounting reference date.
		
	21.35
	Jurisdiction of incorporation; Amendment of constitutional documents

No Obligor shall change the jurisdiction of its incorporation. No Guarantor shall amend its constitutional documents.  The Borrower shall not amend its constitutional documents in any manner that would adversely affect its obligations under this Agreement or any other Finance Document to which it is a party.
		
	21.36
	Change of location

No Obligor shall change the location of its chief executive office or the office where its corporate records are kept or open any new office for the conduct of its business on less than thirty (30) days prior written notice to the Facility Agent.
		
	21.37
	Further assurance

		
	(a)
	Each Obligor shall promptly, and in any event within the time period specified by the Security Agent do all such acts (including procuring or arranging any registration, notarization or authentication or the giving of any notice) or execute or procure execution of all such documents (including assignments, transfers, mortgages, charges, notices, instructions, acknowledgments, proxies and powers of attorney), as the Security Agent may specify (and in such form as the Security Agent may require in favor of the Security Agent or its nominee(s)):

		
	(i)
	to create, perfect, vest in favor of the Security Agent or protect the priority of the Security or any right of any kind created or intended to be created under or evidenced by the Finance Documents (which may include the execution of a mortgage, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Transaction Security) or for the exercise of any rights, powers and remedies of the Security Agent, any Receiver or the Creditor Parties provided by or pursuant to the Finance Documents or by law;

		
	(ii)
	to confer on the Security Agent or confer on the Creditor Parties Security over any property and assets of that Obligor located in any jurisdiction equivalent or similar to the Security intended to be conferred by or pursuant to the Finance Documents;

		
	(iii)
	to facilitate or expedite the realization and/or sale of, the transfer of title to or the grant of, any interest in or right relating to the assets which are, or are intended to be, the subject of the Transaction Security or to exercise any power specified in any Finance Document in respect of which the Security has become enforceable; and/or 

		
	(iv)
	to enable or assist the Security Agent to enter into any transaction to commence, defend or conduct any proceedings and/or to take any other action relating to any item of the Security Property.

		
	(b)
	Each Obligor shall, and shall procure that each Transaction Obligor will, take all such action as is available to it (including making all filings and registrations) as may be necessary for the purpose of the creation, perfection, protection or maintenance of any Security conferred or intended to be conferred on the Security Agent or the Creditor Parties by or pursuant to the Finance Documents.

		
	(c)
	At the same time as an Obligor delivers to the Security Agent any document executed by itself or another Transaction Obligor pursuant to this Clause 21.37 (Further assurance), that Obligor shall deliver, or shall procure that such other Transaction Obligor will deliver, to the Security Agent a certificate signed by an officer (or equivalent) of that Obligor’s or Transaction Obligor’s which shall:

		
	(i)
	set out the text of a resolution of that Obligor’s directors (or equivalent governing body) specifically authorizing the execution of the document specified by the Security Agent; and

		
	(ii)
	state that either the resolution was duly passed at a meeting of the directors (or equivalent governing body) 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 (or equivalent governing body) and is valid under that Obligor’s or Transaction Obligor’s constitutional documents.

		
	22
	INSURANCE UNDERTAKINGS

		
	22.1
	General

The undertakings in this Clause 22 (Insurance Undertakings) remain in force on and from each Drawdown Date and throughout the rest of the Security Period except as the Facility Agent, acting with the authorization of the Majority Lenders (or, where specified, all the Lenders) may otherwise permit.
		
	22.2
	Maintenance of obligatory insurances

Each Guarantor shall keep the Vessel owned by it insured at its expense against:
		
	(a)
	hull and machinery plus freight interest and hull interest and/or increased value and any other usual marine risks (including excess risks);

		
	(b)
	war risks (including the London Blocking and Trapping addendum or its equivalent);

		
	(c)
	protection and indemnity risks (including liability for oil pollution for an amount of no less than $1,000,000,000 and excess war risk P&I cover) on standard Club Rules, covered by a Protection and Indemnity association which is a member of the International Group of Protection and Indemnity Associations (or, if the International Group ceases to exist, any other leading protection and indemnity association or other leading provider of protection and indemnity insurance) (including, without limitation, the proportion (if any) of any collision liability not covered under the terms of the hull cover);

		
	(d)
	freight, demurrage and defense; and

		
	(e)
	any other risks against which the Facility Agent acting on the instructions of the Majority Lenders considers, having regard to practices and other circumstances prevailing at the relevant time, it would be reasonable for that Guarantor to insure and which are specified by the Facility Agent by notice to such Guarantor.

		
	22.3
	Terms of obligatory insurances

Each Guarantor shall effect such insurances in respect of the Vessel owned by it: 
		
	(a)
	in Dollars;

		
	(b)
	in the case of hull and machinery and usual marine risks and war risks, in an amount on an agreed value basis at least the greater of:

		
	(i)
	an amount which, when aggregated with the insured value of the other Vessels then financed under this Agreement, equals to 120 percent of the Loan; and

		
	(ii)
	the Market Value of the Vessel owned by it;

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

		
	(d)
	in the case of protection and indemnity risks, in respect of the full tonnage of such Vessel;

		
	(e)
	in the case of the hull and machinery insurance, on the basis that the deductible is not higher than the Major Casualty figure;

		
	(f)
	in the case where such Vessel is insured on a fleet policy, on the basis that each vessel insured on that fleet policy is deemed to be insured on an individual basis;

		
	(g)
	on approved terms, such terms to be disclosed to the Facility Agent at least 5 days prior to the Drawdown Date in respect of such Vessel; and

		
	(h)
	through Approved Insurance Brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations.

		
	22.4
	Further protections for the Finance Parties

In addition to the terms set out in Clause 22.3 (Terms of obligatory insurances), each Guarantor shall procure that the obligatory insurances shall:
		
	(a)
	subject always to paragraph (b), name that Guarantor as the named insured unless the interest of every other named insured is limited:

		
	(i)
	in respect of any obligatory insurances for hull and machinery and war risks;

		
	(A)
	to any provable out-of-pocket expenses that it has incurred and which form part of any recoverable claim on underwriters; and 

		
	(B)
	to any third party liability claims where cover for such claims is provided by the policy (and then only in respect of discharge of any claims made against it); and

		
	(ii)
	in respect of any obligatory insurances for protection and indemnity risks, to any recoveries it is entitled to make by way of reimbursement following discharge of any third party liability claims made specifically against it;

and every other named insured has undertaken in writing to the Security Agent (in such form as it requires) that any deductible shall be apportioned between that Guarantor and every other named insured in proportion to the gross claims made or paid by each of them and that it shall do all things necessary and provide all documents, evidence and information to enable the Security Agent to collect or recover any moneys which at any time become payable in respect of the obligatory insurances;
		
	(b)
	whenever the Facility Agent requires, name (or be amended to name) the Security Agent as additional named insured for its rights and interests, warranted no operational interest and with full waiver of rights of subrogation against the Security Agent, but without the Security Agent being liable to pay (but having the right to pay) premiums, calls or other assessments in respect of such insurance;

		
	(c)
	name the Security Agent as loss payee with such directions for payment as the Facility Agent may specify;

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

		
	(e)
	provide that the obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Security Agent or any other Finance Party; and

		
	(f)
	provide that the Security Agent may make proof of loss if that Guarantor fails to do so.

		
	22.5
	Renewal of obligatory insurances

Each Guarantor shall:
		
	(a)
	at least 10 days before the expiry of any obligatory insurance:

		
	(i)
	notify the Facility Agent of the Approved Insurance Brokers (or other insurers) and any protection and indemnity or war risks association through or with which it proposes to renew that obligatory insurance and of the proposed terms of renewal; and

		
	(ii)
	obtain the Facility Agents’ approval to the matters referred to in sub-paragraph (i) of paragraph (a) above;

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

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

		
	22.6
	Copies of policies; letters of undertaking

Each Guarantor shall ensure that the Approved Insurance Brokers provide the Security Agent with:
		
	(a)
	pro forma copies of all policies relating to the obligatory insurances which they are to effect or renew; and 

		
	(b)
	a letter or letters or undertaking in a form required by the Facility Agent and including undertakings by the Approved Insurance Brokers that:

		
	(i)
	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment complying with the provisions of Clause 22.4 (Further protections for the Finance Parties);

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

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

		
	(iv)
	they will, if they have not received notice of renewal instructions from the relevant Guarantor or its agents, notify the Security Agent not less than 14 days before the expiry of the obligatory insurances;

		
	(v)
	if they receive instructions to renew the obligatory insurances, they will promptly notify the Facility Agent of the terms of the instructions;

		
	(vi)
	they will not set off against any sum recoverable in respect of a claim relating to the Vessel owned by that Guarantor under such obligatory insurances any premiums or other amounts due to them or any other person whether in respect of that Vessel or otherwise, they waive any lien on the policies, or any sums received under them, which they might have in respect of such premiums or other amounts and they will not cancel such obligatory insurances by reason of non-payment of such premiums or other amounts; and 

		
	(vii)
	they will arrange for a separate policy to be issued in respect of the Vessel owned by that Guarantor forthwith upon being so requested by the Facility Agent.

		
	22.7
	Copies of certificates of entry

Each Guarantor shall ensure that any protection and indemnity and/or war risks associations in which the Vessel owned by it is entered provide the Security Agent with:
		
	(a)
	a certified copy of the certificate of entry for that Vessel;

		
	(b)
	a letter or letters of undertaking in such form as may be required by the Facility Agent; and

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

		
	22.8
	Deposit of original policies

Each Guarantor shall ensure that all policies relating to obligatory insurances are deposited with the Approved Insurance Brokers through which the insurances are effected or renewed.
		
	22.9
	Payment of premiums

Each Guarantor shall punctually pay all premiums or other sums payable in respect of the obligatory insurances and produce all relevant receipts when so required by the Facility Agent or the Security Agent.
		
	22.10
	Guarantees

Each Guarantor shall ensure that any guarantees required by a protection and indemnity or war risks association are promptly issued and remain in full force and effect.
		
	22.11
	Compliance with terms of insurances

		
	(a)
	No Guarantor shall do or omit to do (nor permit to be done or not to be done) any act or thing which would or might render any obligatory insurance invalid, void, voidable or unenforceable or render any sum payable under an obligatory insurance repayable in whole or in part.

		
	(b)
	Without limiting paragraph (a) above, each Guarantor shall:

		
	(i)
	take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without limiting the obligation contained in sub-paragraph (iii) of paragraph (b) of Clause 22.6 (Copies of policies; letters of undertaking)) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Facility Agent has not given its prior approval;

		
	(ii)
	not make any changes relating to the classification or classification society or manager or operator of the Vessel owned by it approved by the underwriters of the obligatory insurances;

		
	(iii)
	make (and promptly supply copies to the Facility Agent of) all quarterly or other voyage declarations which may be required by the protection and indemnity risks association in which the Vessel owned by it is entered to maintain cover for trading to the U.S. and the Exclusive Economic Zone (as defined in the United States Oil Pollution Act of 1990, as amended, or any other applicable legislation); and

		
	(iv)
	not employ the Vessel owned by it, nor allow it to be employed, otherwise than in conformity with the terms and conditions of the obligatory insurances, without first obtaining the consent of the insurers and complying with any requirements (as to extra premium or otherwise) which the insurers specify.

		
	22.12
	Alteration to terms of insurances

No Guarantor shall make or agree to any alteration to the terms of any obligatory insurance or waive any right relating to any obligatory insurance. 
		
	22.13
	Settlement of claims

Each Guarantor shall:
		
	(a)
	not settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty without the consent of the Facility Agent, such consent not to be unreasonably withheld; and

		
	(b)
	do all things necessary and provide all documents, evidence and information to enable the Security Agent to collect or recover any moneys which at any time become payable in respect of the obligatory insurances.

		
	22.14
	Provision of copies of communications

Each Guarantor shall provide the Security Agent, at the time of each such communication, with copies of any material written communications between that Guarantor and:
		
	(a)
	the Approved Insurance Brokers;

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

		
	(c)
	the approved insurance companies and/or underwriters, 

which relate directly or indirectly to:
		
	(i)
	that Guarantor’s obligations relating to the obligatory insurances including, without limitation, all requisite declarations and payments of additional premiums or calls; and 

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

		
	22.15
	Provision of information

Each Guarantor shall promptly provide the Facility Agent (or any persons which it may designate) with any information which the Facility Agent (or any such designated person) requests for the purpose of:
		
	(a)
	obtaining or preparing any report from an independent marine insurance broker as to the adequacy of the obligatory insurances effected or proposed to be effected; and/or

		
	(b)
	effecting, maintaining or renewing any such insurances as are referred to in Clause 22.16 (Mortgagee’s interest, additional perils and mortgagee’s rights insurances) or dealing with or considering any matters relating to any such insurances,

and that Guarantor shall, forthwith upon demand, indemnify the Facility Agent in respect of all fees and other expenses incurred by or for the account of the Facility Agent in connection with any such report as is referred to in paragraph (a) above.
		
	22.16
	Mortgagee’s interest, additional perils and mortgagee’s rights insurances

The Security Agent shall be entitled from time to time to effect, maintain and renew: 
		
	(a)
	a mortgagee’s interest insurance in an amount equal to 120 percent of the Loan;

		
	(b)
	a mortgagee’s interest additional perils insurance in an amount equal to 120 percent of the Loan;

		
	(c)
	a mortgagee’s rights insurance in an amount equal to 120 percent of the Loan,

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

31    

		
	23
	VESSEL UNDERTAKINGS

		
	23.1
	General

The undertakings in this Clause 23 (Vessel Undertakings) remain in force on and from the first Drawdown Date and throughout the rest of the Security Period except as the Facility Agent, acting with the authorization of the Majority Lenders (or, where specified, all the Lenders) may otherwise permit.
		
	23.2
	Vessels’ names and registration

Each Guarantor shall, in respect of the Vessel owned by it:
		
	(a)
	keep that Vessel registered in its name under the Approved Flag from time to time at its port of registration;

		
	(b)
	not do or allow to be done anything as a result of which such registration might be suspended, cancelled or imperiled; and

		
	(c)
	not change the name of that Vessel.

		
	23.3
	Repair and classification

Each Guarantor shall keep the Vessel owned by it in a good and safe condition and state of repair:
		
	(a)
	consistent with first class ship ownership and management practice; and

		
	(b)
	so as to maintain the Approved Classification for that Vessel with the Approved Classification Society free of overdue recommendations and conditions affecting that Vessel’s class.  

		
	23.4
	Classification society undertaking

Each Guarantor shall, in respect of the Vessel owned by it, request (by sending a letter in the form set out in Part A of Schedule 8 (Classification Society Undertaking) the Approved Classification Society and use its best efforts to procure that the Approved Classification Society undertakes with the Security Agent by entering into an undertaking in the form set out in Part B of Schedule 8 (Classification Society Undertaking):
		
	(a)
	to send to the Security Agent, following receipt of a written request from the Security Agent, certified true copies of all original class records held by the Approved Classification Society in relation to that Vessel;

		
	(b)
	to allow the Security Agent (or its agents), at any time and from time to time, to inspect the original class and related records of that Guarantor and that Vessel at the offices of the Approved Classification Society and to take copies of them;

		
	(c)
	to notify the Security Agent immediately in writing (at Jurek.Bochner@dvbbank.com and techcom@dvbbank.com) if the Approved Classification Society:

		
	(i)
	receives notification from that Guarantor any person that that Vessel’s Approved Classification Society is to be changed; or

32    

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

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

		
	(i)
	to confirm that such Guarantor is not in default of any of its contractual obligations or liabilities to the Approved Classification Society, including confirmation that it has paid in full all fees or other charges due and payable to the Approved Classification Society; or

		
	(ii)
	if such Guarantor is in default of any of its contractual obligations or liabilities to the Approved Classification Society, to specify to the Security Agent in reasonable detail the facts and circumstances of such default, the consequences of such default, and any remedy period agreed or allowed by the Approved Classification Society.

		
	23.5
	Modifications

No Guarantor shall make any modification or repairs to, or replacement of, any Vessel or equipment installed on it which would or is reasonably likely to be materially detrimental to the structure, type or performance characteristics of that Vessel or materially reduce its value. 
		
	23.6
	Removal and installation of parts

		
	(a)
	Subject to paragraph (b) below, no Guarantor shall remove any material part of any Vessel, or any item of equipment installed on any Vessel unless:

		
	(i)
	the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed;

		
	(ii)
	the replacement part or item is free from any Security in favor of any person other than the Security Agent; and 

		
	(iii)
	the replacement part or item becomes, on installation on that Vessel, the property of that Guarantor and subject to the security constituted by the Mortgage.

		
	(b)
	A Guarantor may install equipment owned by a third party if the equipment can be removed without the risk of material damage to the Vessel owned by that Guarantor.

		
	23.7
	Surveys

Each Guarantor shall submit the Vessel owned by it regularly to all periodic or other surveys which may be required for classification purposes and, if so required by the Facility Agent acting on the instructions of the Majority Lenders, provide the Facility Agent, with copies of all survey reports.
		
	23.8
	Inspection

		
	(a)
	Each Guarantor shall permit the Security Agent (acting through surveyors or other persons appointed by it for that purpose) to board the Vessel owned by it once annually to inspect its condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections, provided, however, if an Event of Default has occurred and is continuing such persons shall be permitted to board at all reasonable times. 

33    

		
	(b)
	The cost of all inspections under this Clause 23.8 (Inspection) shall be for the account of the relevant Guarantor once annually, unless an Event of Default has occurred and is continuing at which time the cost shall be for the account of the relevant Guarantor. 

		
	23.9
	Prevention of and release from arrest

		
	(a)
	Each Guarantor shall, in respect of the Vessel owned by it, promptly discharge:

		
	(i)
	all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against that Vessel, its Earnings or its Insurances;

		
	(ii)
	all Taxes, dues and other amounts charged in respect of the Vessel, the Earnings or the Insurances; and

		
	(iii)
	all other outgoings whatsoever in respect of that Vessel, its Earnings or its Insurances.

		
	(b)
	Each Guarantor shall immediately and, forthwith upon receiving notice of the arrest of the Vessel owned by it or of its detention in exercise or purported exercise of any lien or claim, procure its release by providing bail or otherwise as the circumstances may require.

		
	23.10
	Compliance with laws etc.

Each Guarantor shall:
		
	(a)
	comply, or procure compliance with all laws or regulations:

		
	(i)
	relating to its business generally; and

		
	(ii)
	relating to the Vessel owned by it, its ownership, employment, operation, management and registration,

including, but not limited to, the ISM Code, the ISPS Code, all Environmental Laws, all Sanctions and the laws of the Approved Flag;
		
	(b)
	obtain, comply with and do all that is necessary to maintain in full force and effect any Environmental Approvals;

		
	(c)
	without limiting paragraph (a) above, not employ the Vessel owned by it nor allow its employment, operation or management in any manner contrary to any law or regulation including but not limited to the ISM Code, the ISPS Code, all Environmental Laws and all Sanctions; and

		
	(d)
	not appoint any manager or agent to manage the Vessel owned by it unless such party undertakes to procure that any agreement entered into relating to the management, employment or operation of that Vessel contains a clause in which the counterparty undertakes to comply with all Sanctions.

		
	23.11
	ISPS Code

Without limiting paragraph (a) of Clause 23.10 (Compliance with laws etc.), each Guarantor shall:
		
	(a)
	procure that the Vessel owned by it and the company responsible for that Vessel’s compliance with the ISPS Code comply with the ISPS Code; and

34    

		
	(b)
	maintain an ISSC for the Vessel owned by it; and

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

		
	23.12
	Trading in war zones

In the event of hostilities in any part of the world (whether war is declared or not), no Guarantor shall cause or permit the Vessel owned by it to enter or trade to any zone which is declared a war zone by any government or by that Vessel’s war risks insurers unless that Guarantor has (at its expense) effected any special, additional or modified insurance cover which the Security Agent acting on the instructions of the Majority Lenders may require.
		
	23.13
	Monitoring 

		
	(a)
	Each Guarantor shall (or shall procure that any Charterer and the Approved Technical Manager shall) allow the Security Agent (or its agents), at any reasonable time and from time to time, to access all information pertaining to the Vessel owned by it (including the movement of that Vessel) using any and all available means.

		
	(b)
	All costs incurred by the Security Agent (and any of its agents) under paragraph (a) of this Clause 24.13 (Monitoring) shall be for the account of the Lenders.

		
	23.14
	Provision of information

Without prejudice to Clause 19.5 (Information: miscellaneous) each Guarantor shall, in respect of the Vessel owned by it, promptly provide the Facility Agent with any information which it requests regarding:
		
	(a)
	that Vessel, its employment, position and engagements;

		
	(b)
	its Earnings and payments and amounts due to its master and crew;

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

		
	(d)
	any towages and salvages; and

		
	(e)
	its compliance, the Approved Manager’s compliance and the compliance of that Vessel with the ISM Code and the ISPS Code,

and, upon the Facility Agent’s request, provide copies of any current Charter relating to that Vessel, of any current guarantee of any such Charter, that Vessel’s Safety Management Certificate and any relevant Document of Compliance.
		
	23.15
	Notification of certain events

Each Guarantor shall, in respect of the Vessel owned by it, immediately notify the Facility Agent by fax, confirmed forthwith by letter, of:
		
	(a)
	any casualty to that Vessel which is or is, in the reasonable opinion of the Guarantor, likely to be or to become a Major Casualty;

35    

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

		
	(c)
	any requisition of that Vessel for hire;

		
	(d)
	any requirement or recommendation made in relation to that Vessel by any insurer or classification society or by any competent authority which is not immediately complied with;

		
	(e)
	any arrest or detention of that Vessel, any exercise or purported exercise of any lien on that Vessel or its Earnings or any requisition of that Vessel for hire;

		
	(f)
	any intended dry docking of that Vessel;

		
	(g)
	any Environmental Claim made against that Guarantor or in connection with that Vessel, or any Environmental Incident;

		
	(h)
	any claim for breach of the ISM Code or the ISPS Code being made against the that Guarantor, an Approved Manager or otherwise in connection with that Vessel; or

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

and each Guarantor shall keep the Facility Agent advised in writing on a regular basis and in such detail as the Facility Agent shall require as to that Guarantor’s, any such Approved Manager’s or any other person’s response to any of those events or matters.
		
	23.16
	Restrictions on chartering, appointment of managers etc.

No Guarantor shall, in relation to the Vessel owned by it:
		
	(a)
	let that Vessel on demise charter for any period;

		
	(b)
	enter into any time, voyage or consecutive voyage charter in respect of that Vessel other than a Permitted Charter;

		
	(c)
	cancel or terminate any Permitted Charter which has a duration of 12 months or more;

		
	(d)
	materially change, cancel or terminate a Management Agreement; 

		
	(e)
	appoint a manager of that Vessel other than an Approved Manager or agree to any material alteration to the terms of an Approved Manager’s appointment;

		
	(f)
	de activate or lay up that Vessel; or

		
	(g)
	put that Vessel into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed U.S.$500,000 (or the equivalent in any other currency) unless that person has first given to the Security Agent and in terms satisfactory to it a written undertaking not to exercise any lien on that Vessel or its Earnings for the cost of such work or for any other reason.

		
	23.17
	Notice of Mortgage

36    

Each Guarantor shall keep the Mortgage registered against the Vessel owned by it as a valid first preferred mortgage, carry on board that Vessel a certified copy of such Mortgage and place and maintain in a conspicuous place in the navigation room and the master’s cabin of that Vessel a framed printed notice stating that that Vessel is mortgaged by that Guarantor to the Security Agent.
		
	23.18
	Sharing of Earnings

Save for any Approved Pooling Arrangement in relation to a Vessel, no Guarantor shall enter into any agreement or arrangement for the sharing of any Earnings.
		
	23.19
	Notification of compliance

Upon the Facility Agent’s request, each Guarantor shall promptly provide the Facility Agent from time to time with evidence (in such form as the Facility Agent requires) that it is complying with this Clause 23 (Vessel Undertakings). 
		
	23.20
	Nuclear materials

No Guarantor shall permit the Vessel owned by it to carry any nuclear material or any nuclear waste.

		
	24
	SECURITY COVER

		
	24.1
	Minimum required security cover

Clause 24.2 (Provision of additional security; prepayment) applies if the Facility Agent notifies the Borrower that:
		
	(a)
	The aggregated Market Value of the Vessels; plus

		
	(b)
	the net realizable value of additional Security previously provided under this Clause 24.1 (Minimum required security cover),

is below 140 percent of the Loan. 
		
	24.2
	Provision of additional security; prepayment

		
	(a)
	If the Facility Agent serves a notice on the Borrower under Clause 24.1 (Minimum required security cover), the Borrower shall, on or before the date falling 30 days after the date (the “Prepayment Date”) on which the Facility Agent’s notice is served, prepay such part of the Loan as shall eliminate the shortfall.

		
	(b)
	The Borrower may, instead of making a prepayment as described in paragraph (a) above, provide, or ensure that a third party has provided, additional security which, in the opinion of the Facility Agent acting on the instructions of the Majority Lenders:

		
	(i)
	has a net realizable value at least equal to the shortfall; and

		
	(ii)
	is documented in such terms as the Facility Agent may approve or require,

before the Prepayment Date; and conditional upon such security being provided in such manner, it shall satisfy such prepayment obligation. If the additional security is at any point during the Security Period no longer required to comply with Clause 24.1 (Minimum required security cover), the Facility Agent shall, at the request of the Borrower, release such additional security. 
		
	24.3
	Value of additional vessel security

The net realizable value of any additional security which is provided under Clause 24.2 (Provision of additional security; prepayment) and which consists of Security over a vessel shall be the Market Value of the vessel concerned.
		
	24.4
	Valuations binding

Any valuation under this Clause 24 (Security Cover) shall be binding and conclusive as regards the Borrower and the Guarantors.
		
	24.5
	Provision of information

		
	(a)
	The Borrower shall promptly provide the Facility Agent and any Approved Appraiser acting under this Clause 24 (Security Cover) with any information which the Facility Agent or the Approved Appraiser may request for the purposes of the valuation.

		
	(b)
	If the Borrower fails to provide the information referred to in paragraph (a) above by the date specified in the request, the valuation may be made on any basis and assumptions which the Approved Appraiser or the Facility Agent considers prudent.

		
	24.6
	Prepayment mechanism

Any prepayment pursuant to Clause 24.2 (Provision of additional security; prepayment) shall be made in accordance with the relevant provisions of Clause 7 (Prepayment and Cancellation) and shall be treated as a voluntary prepayment pursuant to Clause 7.3 (Voluntary prepayment of Loan).
		
	24.7
	Provision of valuations

		
	(a)
	The Facility Agent shall be entitled to test the security requirements under Clause 24.1 (Minimum required security cover) by reference to valuations in respect of a Vessel from the required number of Approved Appraisers semi-annually delivered with the Compliance Certificates for the second and fourth quarter. 

		
	(b)
	The Facility Agent shall at the request of the Lenders additionally be entitled to test the security cover requirement under Clause 24.1 (Minimum required security cover) by reference to a valuation in respect of a Vessel from the required number of Approved Appraisers at any time and each such valuation shall be at the expense of the Lenders except where the Borrower is by means of such valuation(s) shown to be in breach of Clause 24.1 (Minimum required security cover).

		
	(c)
	Subject to paragraph (d) below, the Market Value of a Vessel shall be determined by reference to one valuation of that Vessel as given by an Approved Appraiser selected by the Borrower and appointed by the Facility Agent.

		
	(d)
	If requested by the Borrower in relation to paragraph (c) above, a second Approved Appraiser shall be selected by the Borrower and appointed by the Facility Agent, and the Market Value of that Vessel shall be the arithmetic average of the two valuations.

		
	(e)
	If one such valuation in respect of that Vessel obtained pursuant to paragraphs (c) and (d) above differs by at least 10 percent from the other valuation, then a third valuation for that Vessel shall be obtained from an Approved Appraiser selected by the Borrower and appointed by the Facility Agent and the Market Value of that Vessel shall be the arithmetic average of all three such valuations.

		
	(f)
	The Facility Agent may at any time after a Default has occurred and is continuing obtain valuations of the Vessel and any other vessel over which additional security has been created in accordance with Clause 24.2 (Provision of additional security; prepayment) from Approved Appraisers to enable the Facility Agent to determine the Market Values of the Vessels and any other vessel.

		
	(g)
	The valuations referred to in paragraph (a), (b), (c), (d), (e) and (f) above shall be obtained at the cost and expense of the Borrower (except where specified in paragraph (b) above) and the Borrower shall within three Business Days of demand by the Facility Agent pay to the Facility Agent all costs and expenses incurred by it in obtaining any such valuation.

		
	25
	ACCOUNTS AND APPLICATION OF EARNINGS

		
	25.1
	Account bank

Subject to Clause 25.5 (Location of Accounts), each Account must be held with the Account Bank.
		
	25.2
	Accounts

		
	(a)
	Each Guarantor must operate the Account held by it in accordance with this Clause 26 (Accounts and Application of Earnings) and the provisions of the Account Security.

		
	(b)
	Account Security must be provided in respect of any Account opened after the date of this Agreement.

		
	25.3
	Payment of Earnings

Each Guarantor shall ensure that, subject only to the provisions of the Earnings Assignment to which it is a party, all Earnings in respect of that Vessel owned by it are paid in to that Vessel’s Earnings Account.
		
	25.4
	Application of Earnings 

The Borrower and each of the Guarantors shall procure that there is transferred to the Facility Agent:
		
	(i)
	on each Repayment Date, the amount of the Repayment Instalment then due on the Repayment Date; and

		
	(ii)
	on the last day of each Interest Period, the amount of interest then due on that date; and 

		
	(iii)
	on any day on which an amount is otherwise due from the Borrower under a Finance Document, an amount necessary to meet that due amount,

and the Borrower irrevocably authorizes and instructs:
		
	(A)
	the Account Bank to make those transfers in accordance with the instructions of the Facility Agent (copied to the Security Agent, who, as security taker under the Accounts Security, agrees for itself and on behalf of the other pledgees that such transfers may be made); 

		
	(B)
	the Facility Agent to apply the transferred amounts in payment of the relevant Repayment Instalment, interest amount or other amount due. 

		
	25.5
	Location of Accounts

Each Guarantor shall promptly:
		
	(a)
	comply with any requirement of the Facility Agent as to the location or relocation of the Accounts (or any of them); and

		
	(b)
	execute any documents which the Facility Agent specifies to create or maintain in favor of the Security Agent Security over (and/or rights of set-off, consolidation or other rights in relation to) each Account.

		
	25.6
	Miscellaneous Accounts provisions

No Finance Party is responsible or liable to any Obligor for:
		
	(a)
	any non-payment of any liability of an Obligor which could be paid out of moneys standing to the credit of the Earnings Account; or

		
	(b)
	any withdrawal wrongly made, if made in good faith.

		
	26
	EVENTS OF DEFAULT

		
	26.1
	General

Each of the events or circumstances set out in this Clause 26 (Events of Default) is an Event of Default except for Clause 26.19 (Acceleration) and Clause 26.20 (Enforcement of security).
		
	26.2
	Non-payment

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless:
		
	(a)
	its failure to pay is caused by:

		
	(i)
	administrative or technical error; or

		
	(ii)
	a Disruption Event; and

		
	(b)
	payment is made within three Business Days of its due date.

		
	26.3
	Specific obligations

A breach occurs of Clause 4.4 (Waiver of conditions precedent), Clause 20 (Financial Covenants), Clause 21.10 (Title), Clause 21.17 (Asset control), Clause 21.18 (Sanctions), Clause 21.19 (Money laundering), Clause 21.23 (Negative pledge), Clause 21.24 (Disposals), Clause 21.25 (Merger), Clause 21.26 (Change of business), Clause 21.33 (Unlawfulness, invalidity and ranking; Security imperiled), Clause 21.34 (Changes to Fiscal Year), Clause 21.35 (Jurisdiction of incorporation; Amendment of constitutional documents), Clause 22.2 (Maintenance of obligatory insurances), Clause 22.3 (Terms of obligatory insurances), Clause 22.5 (Renewal of obligatory insurances) or Clause 24 (Security Cover).
		
	26.4
	Other obligations

		
	(a)
	An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 26.2 (Non-payment) and Clause 26.3 (Specific obligations)).

		
	(b)
	No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within ten Business Days of the Facility Agent giving notice to the Borrower or (if earlier) any Obligor becoming aware of the failure to comply.

		
	26.5
	Misrepresentation

Any representation or statement made or deemed to be made by a Transaction Obligor in the Finance Documents or any other document delivered by or on behalf of any Transaction Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading when made or deemed to be made.
		
	26.6
	Cross default

Other than with respect to Financial Indebtedness arising under the Finance Documents:
		
	(a)
	Any Financial Indebtedness of any Obligor is not paid when due nor within any originally applicable grace period.

		
	(b)
	Any Financial Indebtedness of any Obligor is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

		
	(c)
	Any commitment for any Financial Indebtedness of any Obligor is cancelled or suspended by a creditor of any Obligor as a result of an event of default (however described).

		
	(d)
	Any creditor of any Obligor becomes entitled to declare any Financial Indebtedness of any Obligor due and payable prior to its specified maturity as a result of an event of default (however described).

		
	(e)
	No Event of Default will occur under this Clause 26.6 (Cross default) in respect of a person other than the Borrower if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above is less than $2,500,000 individually or $10,000,000 in the aggregate in respect of the Obligors (or its equivalent in any other currency).

		
	26.7
	Insolvency Event

An Insolvency Event occurs with respect to any Obligor. 
		
	26.8
	Judgments

Any judgment or order for the payment of money individually or in the aggregate in excess of $2,500,000 in the case of any Obligor (other than the Borrower) or $10,000,000 in the case of the Borrower (exclusive of any amounts fully covered by insurance (less any applicable deductible) and as to which the insurer has acknowledged its responsibility to cover such judgment or order) shall be rendered against an Obligor and such judgment shall not have been vacated or discharged or stayed or bonded pending appeal within 30 days after the entry thereof or enforcement proceedings shall have been commenced by any creditor upon such judgment or order.
		
	26.9
	Creditors’ process

Any expropriation, attachment, sequestration, distress or execution (or any analogous process in any jurisdiction) affects a Vessel (other than an arrest where paragraph 7.4(b) of Clause 7.4 (Mandatory prepayment on sale or Total Loss) shall apply) and such Vessel is not returned to the full control of the relevant Guarantor within 60 days.

		
	26.10
	Change of Control

A Change of Control shall have occurred.
		
	26.11
	Unlawfulness, invalidity and ranking

		
	(a)
	It is or becomes unlawful for a Transaction Obligor to perform any of its obligations under the Finance Documents.

		
	(b)
	Any obligation of a Transaction Obligor under the Finance Documents is not or ceases to be legal, valid, binding or enforceable.

		
	(c)
	Any Finance Document ceases to be in full force and effect or to be continuing or is or purports to be determined or any Transaction Security is alleged by a party to it (other than a Finance Party) to be ineffective.

		
	(d)
	Any Transaction Security proves to have ranked after, or loses its priority to, any other Security.

		
	26.12
	Security imperiled; flag instability

		
	(a)
	Any Security created or intended to be created by a Finance Document is in any way imperiled or in jeopardy.

		
	(b)
	The state of the Approved Flag of a Vessel is or becomes involved in hostilities or civil war or there is a seizure of power in such state by unconstitutional means, or any other event occurs in relation to that Vessel, the Mortgage or the Approved Flag and in the reasonable opinion of the Facility Agent such event is likely to have a Material Adverse Effect.

		
	26.13
	Cessation of business

Any Obligor suspends or ceases to carry on (or threatens to suspend or cease to carry on) all or a material part of its business.
		
	26.14
	Expropriation

The authority or ability of any Transaction Obligor to conduct its business is limited or wholly or substantially curtailed by any seizure, expropriation, nationalization, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person in relation to any Transaction Obligor or any of its assets.
		
	26.15
	Repudiation and rescission of agreements

A Transaction Obligor (or any other relevant party) rescinds or purports to rescind or repudiates or purports to repudiate a Transaction Document or any of the Transaction Security or evidences an intention to rescind or repudiate a Transaction Document or any Transaction Security.
		
	26.16
	Litigation

Any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to any of the Transaction Documents or the transactions contemplated in any of the Transaction Documents or against any member of the Group or its assets which has or is reasonably likely to have a Material Adverse Effect.
		
	26.17
	Material adverse change

Any event or circumstance occurs which has or is reasonably likely to have a Material Adverse Effect.
		
	26.18
	Prohibited Person

A Transaction Obligor or any Subsidiary of it or any of their respective directors or officers becomes a Prohibited Person.
		
	26.19
	Acceleration

On and at any time after the occurrence of an Event of Default which is continuing the Facility Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower:
		
	(a)
	cancel the Total Commitments, whereupon they shall immediately be cancelled;

		
	(b)
	declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon it shall become immediately due and payable; and/or

		
	(c)
	declare that all or part of the Loan be payable on demand, whereupon it shall immediately become payable on demand by the Facility Agent acting on the instructions of the Majority Lenders,

and the Facility Agent may serve notices under paragraphs (a), (b) and (c) above simultaneously or on different dates (provided that in the case of an Event of Default under Clause 26.7 (Insolvency Event), the Loan, together with accrued interest and all other amounts accrued or outstanding under the Finance Documents, shall be deemed immediately due and payable without notice or demand therefor) and the Security Agent may take any action referred to in Clause 26.20 (Enforcement of security) if no such notice is served or simultaneously with or at any time after the service of any of such notice.
		
	26.20
	Enforcement of security

Subject to any restrictions imposed by applicable law or regulation, on and at any time after the occurrence of an Event of Default which is continuing the Security Agent may, and shall if so directed by the Majority Lenders, take any action which, as a result of the Event of Default or any notice served under Clause 26.19 (Acceleration), the Security Agent is entitled to take under any Finance Document or any applicable law or regulation.
		
	26.21
	No impairment of rights

Nothing in Clauses 26.19 (Acceleration) or 26.20 (Enforcement of security) shall be taken to impair or restrict the exercise of any right given to individual Finance Parties under a Finance Document; and, in particular, this Clause is without prejudice to Clause 2.2 (Finance Parties’ rights and obligations).

SECTION 9 
 
CHANGES TO PARTIES

		
	27
	CHANGES TO THE LENDERS

		
	27.1
	Assignments and transfers by the Lenders

Subject to this Clause 27 (Changes to the Lenders), a Lender (the “Existing Lender”) may:
		
	(a)
	assign any of its rights; or

		
	(b)
	transfer by novation any of its rights and obligations,

under the Finance Documents to an Affiliate of the Lender or another bank or a reputable financial institution which is governed by banking regulations in the United States, United Kingdom or the European Union (the “New Lender”).
		
	27.2
	Conditions of assignment or transfer

		
	(a)
	The consent of the Borrower (or any other Transaction Obligor) is not required for an assignment or transfer by an Existing Lender to a New Lender.  The consent of the Facility Agent is required for an assignment or transfer by an Existing Lender, such consent not to be unreasonably withheld.

		
	(b)
	An assignment will only be effective on:

		
	(i)
	receipt by the Facility Agent (whether in the Assignment Agreement or otherwise) of written confirmation from the New Lender (in form and substance satisfactory to the Facility Agent) that the New Lender will assume the same obligations to the other Creditor Parties as it would have been under if it were an Original Lender; and

		
	(ii)
	performance by the Facility Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Facility Agent shall promptly notify to the Existing Lender and the New Lender.

		
	(c)
	A transfer will only be effective if the procedure set out in Clause 27.5 (Procedure for transfer) is complied with.

		
	(d)
	If:

		
	(i)
	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and

		
	(ii)
	as a result of circumstances existing at the date the assignment, transfer or change occurs, a Transaction Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 12 (Tax Gross Up and Indemnities) or under that clause as incorporated by reference or in full in any other Finance Document or Clause 13 (Increased Costs),

then the New Lender or Lender acting through its new Facility Office is entitled to receive payment under those Clauses only to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.  
		
	(e)
	Each New Lender, by executing the relevant Transfer Certificate or Assignment Agreement, confirms, for the avoidance of doubt, that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

		
	27.3
	Assignment or transfer fee

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Facility Agent (for its own account) a fee of $5,000.
		
	27.4
	Limitation of responsibility of Existing Lenders

		
	(a)
	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

		
	(i)
	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents, the Transaction Security or any other documents;

		
	(ii)
	the financial condition of any Transaction Obligor;

		
	(iii)
	the performance and observance by any Transaction Obligor of its obligations under the Finance Documents or any other documents; or

		
	(iv)
	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

and any representations or warranties implied by law are excluded.
		
	(b)
	Each New Lender confirms to the Existing Lender and the other Finance Parties and the Creditor Parties that it:

		
	(i)
	has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Transaction Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender or any other Finance Party in connection with any Finance Document or the Transaction Security; and

		
	(ii)
	will continue to make its own independent appraisal of the creditworthiness of each Transaction Obligor and its related entities throughout the Security Period.

		
	(c)
	Nothing in any Finance Document obliges an Existing Lender to:

		
	(i)
	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 27 (Changes to the Lenders); or 

		
	(ii)
	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Transaction Obligor of its obligations under the Finance Documents or otherwise.

		
	27.5
	Procedure for transfer

		
	(a)
	Subject to the conditions set out in 27.2 (Conditions of assignment or transfer), a transfer is effected in accordance with paragraph (c) below when the Facility Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Facility Agent shall, subject to paragraph (b) below as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with this Agreement and delivered in accordance with this Agreement, execute that Transfer Certificate.  

		
	(b)
	The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

		
	(c)
	On the Transfer Date:

		
	(i)
	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer its rights and obligations under the Finance Documents and in respect of the Transaction Security, each of the Transaction Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and in respect of the Transaction Security and their respective rights against one another under the Finance Documents and in respect of the Transaction Security shall be cancelled (being the “Discharged Rights and Obligations”);

		
	(ii)
	each of the Transaction Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Transaction Obligor and the New Lender have assumed and/or acquired the same in place of that Transaction Obligor and the Existing Lender;

		
	(iii)
	the Facility Agent, the Security Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves and in respect of the Transaction Security as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Facility Agent, the Security Agent, the Arranger and the Existing Lenders shall each be released from further obligations to each other under the Finance Documents; and

		
	(iv)
	the New Lender shall become a Party as a “Lender”. 

		
	27.6
	Procedure for assignment

		
	(a)
	Subject to the conditions set out in Clause 27.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with paragraph (c) below when the Facility Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Facility Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.  

		
	(b)
	The Facility Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.

		
	(c)
	On the Transfer Date:

		
	(i)
	the Existing Lender will assign absolutely to the New Lender its rights under the Finance Documents and in respect of the Transaction Security expressed to be the subject of the assignment in the Assignment Agreement;

		
	(ii)
	the Existing Lender will be released from the obligations (the “Relevant Obligations”) expressed to be the subject of the release in the Assignment Agreement (and any corresponding obligations by which it is bound in respect of the Transaction Security); and

		
	(iii)
	the New Lender shall become a Party as a “Lender” and will be bound by obligations equivalent to the Relevant Obligations.

		
	(d)
	Lenders may utilize procedures other than those set out in this Clause 27.6 (Procedure for assignment) to assign their rights under the Finance Documents (but not, without the consent of the relevant Transaction Obligor or unless in accordance with Clause 27.5 (Procedure for transfer), to obtain a release by that Transaction Obligor from the obligations owed to that Transaction Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in Clause 27.2 (Conditions of assignment or transfer).

		
	27.7
	Copy of Transfer Certificate or Assignment Agreement to Borrower 

The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Borrower a copy of that Transfer Certificate or Assignment Agreement.
		
	27.8
	Security over Lenders’ rights

In addition to the other rights provided to Lenders under this Clause 27 (Changes to the Lenders), each Lender may without consulting with or obtaining consent from any Transaction Obligor, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation, any charge, pledge, assignment or other Security to secure obligations to a federal reserve or central bank, except that no such charge, pledge, assignment or Security shall:
		
	(i)
	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, pledge, assignment or Security for the Lender as a party to any of the Finance Documents; or 

		
	(ii)
	require any payments to be made by a Transaction Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

		
	27.9
	Pro rata interest settlement

If the Facility Agent has notified the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause 27.5 (Procedure for transfer) or any assignment pursuant to Clause 27.6 (Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):
		
	(a)
	any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favor of the Existing Lender up to but excluding the Transfer Date (“Accrued Amounts”) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six Months, on the next of the dates which falls at six Monthly intervals after the first day of that Interest Period); and

		
	(b)
	The rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt:

		
	(i)
	when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and

		
	(ii)
	the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 27.9 (Pro rata interest settlement), have been payable to it on that date, but after deduction of the Accrued Amounts.

		
	(c)
	In this Clause 27.9 (Pro rata interest settlement) references to “Interest Period” shall be construed to include a reference to any other period for accrual of fees.

		
	28
	CHANGES TO THE TRANSACTION OBLIGORS

		
	28.1
	Assignment or transfer by Transaction Obligors

No Transaction Obligor may assign any of its rights or transfer any of its rights or obligations under the Transaction Documents.
		
	28.2
	Release of security

		
	(a)
	If a disposal of any asset subject to security created by a Security Document is made in the following circumstances:

		
	(i)
	the disposal is permitted by the terms of any Finance Document;

		
	(ii)
	the Majority Lenders agree to the disposal;

		
	(iii)
	the disposal is being made at the request of the Security Agent in circumstances where any security created by the Security Documents has become enforceable; or

		
	(iv)
	the disposal is being effected by enforcement of a Security Document,

the Security Agent shall release the asset(s) being disposed of from any security over those assets created by a Security Document and the Guarantor owning any Vessel sol.  However, the proceeds of any disposal (or an amount corresponding to them) must be applied in accordance with the requirements of the Finance Documents (if any).
		
	(b)
	If the Security Agent is satisfied that a release is allowed under this Clause 28.2 (Release of security) (at the request and expense of the Borrower) each Finance Party must enter into any document and do all such other things which are reasonably required to achieve that release.  Each other Finance Party irrevocably authorizes the Security Agent to enter into any such document.  Any release will not affect the obligations of any other Transaction Obligor under the Finance Documents.

SECTION 10 
 
THE FINANCE PARTIES

		
	29
	THE FACILITY AGENT AND THE ARRANGER 

		
	29.1
	Appointment of the Facility Agent

		
	(a)
	Each other Finance Party appoints the Facility Agent to act as its agent under and in connection with the Finance Documents.

		
	(b)
	Each other Finance Party authorizes the Facility Agent to perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Facility Agent under, or in connection with, the Finance Documents together with any other incidental rights, powers, authorities and discretions.

		
	29.2
	Instructions

		
	(a)
	The Facility Agent shall:

		
	(i)
	unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Facility Agent in accordance with any instructions given to it by:

		
	(A)
	all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and 

		
	(B)
	in all other cases, the Majority Lenders; and 

		
	(ii)
	not be liable for any act (or omission) if it acts (or fails to act) in accordance with sub-paragraph (i) above (or, if this Agreement stipulates the matter is a decision for any other Finance Party or group of Finance Parties, from that Finance Party or group of Finance Parties).

		
	(b)
	The Facility Agent shall be entitled to request instructions, or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Finance Party or group of Finance Parties, from that Finance Party or group of Finance Parties) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion and the Facility Agent may refrain from acting unless and until it receives any such instructions or clarification that it has requested. 

		
	(c)
	Save in the case of decisions stipulated to be a matter for any other Finance Party or group of Finance Parties under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Facility Agent by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties. 

		
	(d)
	Paragraph (a) above shall not apply:

		
	(i)
	where a contrary indication appears in a Finance Document;

		
	(ii)
	where a Finance Document requires the Facility Agent to act in a specified manner or to take a specified action;

		
	(iii)
	in respect of any provision which protects the Facility Agent’s own position in its personal capacity as opposed to its role of Facility Agent for the relevant Finance Parties.

		
	(e)
	If giving effect to instructions given by the Majority Lenders would in the Facility Agent’s opinion have an effect equivalent to an amendment or waiver referred to in Clause 42 (Amendments and Waivers), the Facility Agent shall not act in accordance with those instructions unless consent to it so acting is obtained from each Party (other than the Facility Agent) whose consent would have been required in respect of that amendment or waiver. 

		
	(f)
	In exercising any discretion to exercise a right, power or authority under the Finance Documents where it has not received any instructions as to the exercise of that discretion the Facility Agent shall do so having regard to the interests of all the Finance Parties.  

		
	(g)
	The Facility Agent may refrain from acting in accordance with any instructions of any Finance Party or group of Finance Parties until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability (together with any applicable VAT) which it may incur in complying with those instructions. 

		
	(h)
	Without prejudice to the remainder of this Clause 29.2 (Instructions), in the absence of instructions, the Facility Agent shall not be obliged to take any action  (or refrain from taking action) even if it considers acting or not acting to be in the best interests of the Finance Parties.  The Facility Agent may act (or refrain from acting) as it considers to be in the best interest of the Finance Parties. 

		
	(i)
	The Facility Agent is not authorized to act on behalf of a Finance Party (without first obtaining that Finance Party’s consent) in any legal or arbitration proceedings relating to any Finance Document.  This paragraph (i) shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Security Documents or enforcement of the Transaction Security or Security Documents. 

		
	29.3
	Duties of the Facility Agent

		
	(a)
	The Facility Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

		
	(b)
	Subject to paragraph (c) below, the Facility Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Facility Agent for that Party by any other Party.

		
	(c)
	Without prejudice to Clause 27.7 (Copy of Transfer Certificate or Assignment Agreement to Borrower), paragraph (b) above shall not apply to any Transfer Certificate or any Assignment Agreement.

		
	(d)
	Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

		
	(e)
	If the Facility Agent receives notice from a Party referring to any Finance Document, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

		
	(f)
	If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Facility Agent, the Arranger or the Security Agent) under this Agreement, it shall promptly notify the other Finance Parties.

		
	(g)
	The Facility Agent shall provide to the Borrower, within three (3) Business Days of a request by the Borrower (but no more frequently than once per calendar month), a list (which may be in electronic form) setting out the names of the Lenders as at the date of that request, their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each Lender for any communication to be made or document to be delivered under or in connection with the Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Facility Agent to that Lender under the Finance Documents.

		
	(h)
	The Facility Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied). 

		
	29.4
	Role of the Arranger

Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.
		
	29.5
	No fiduciary duties

		
	(a)
	Nothing in any Finance Document constitutes the Facility Agent or the Arranger a trustee or fiduciary of any other person.

		
	(b)
	Neither the Facility Agent nor the Arranger shall be bound to account to other Finance Party for any sum or the profit element of any sum received by it for its own account.

		
	29.6
	Application of receipts

Except as expressly stated to the contrary in any Finance Document, any moneys which the Facility Agent receives or recovers in its capacity as Facility Agent shall be applied by the Facility Agent in accordance with Clause 33.5 (Application of receipts; partial payments).
		
	29.7
	Business with the Group

The Facility Agent and the Arranger may accept deposits from, lend money to, and generally engage in any kind of banking or other business with, any member of the Group.
		
	29.8
	Rights and discretions

		
	(a)
	The Facility Agent may:

		
	(i)
	rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorized;

		
	(ii)
	assume that:

		
	(A)
	any instructions received by it from the Majority Lenders, any Finance Parties or any group of Finance Parties are duly given in accordance with the terms of the Finance Documents; and 

		
	(B)
	unless it has received notice of revocation, that those instructions have not been revoked; and 

		
	(iii)
	rely on a certificate from any person:

		
	(A)
	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or 

		
	(B)
	to the effect that such person approves of any particular dealing, transaction, step, action or thing,

as sufficient evidence that that is the case and, in the case of paragraph (A) above, may assume the truth and accuracy of that certificate. 
		
	(b)
	The Facility Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Finance Parties) that:

		
	(i)
	no Default has occurred (unless it has actual knowledge of a Default arising under Clause 26.2 (Non-payment));

		
	(ii)
	any right, power, authority or discretion vested in any Party or any group of Finance Parties has not been exercised; and

		
	(iii)
	any notice or request made by the Borrower (other than a Drawdown Request or a Selection Notice) is made on behalf of and with the consent and knowledge of all the Transaction Obligors.

		
	(c)
	The Facility Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts.

		
	(d)
	Without prejudice to the generality of paragraph (c) above or paragraph (e) below, the Facility Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Facility Agent (and so separate from any lawyers instructed by the Lenders) if the Facility Agent in its reasonable opinion deems this to be desirable. 

		
	(e)
	The Facility Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Facility Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying. 

		
	(f)
	The Facility Agent may act in relation to the Finance Documents and the Security Property through its officers, employees and agents and shall not:

		
	(i)
	be liable for any error of judgment made by any such person; or 

		
	(ii)
	be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part of any such person,

unless such error or such loss was directly caused by the Facility Agent’s gross negligence or wilful misconduct. 
		
	(g)
	Unless a Finance Document expressly provides otherwise the Facility Agent may disclose to any other Party any information it reasonably believes it has received as agent under the Finance Documents. 

		
	(h)
	Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility Agent nor the Arranger is obliged to do or omit to do anything if it would or might, in its reasonable opinion, constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

		
	(i)
	The Facility Agent is not obliged to disclose to any Finance Party any details of the rate notified to the Facility Agent by any Lender or the identity of any such Lender for the purpose of sub-paragraph (ii) of paragraph (a) of Clause 10.2 (Market disruption).

		
	(j)
	Notwithstanding any provision of any Finance Document to the contrary, the Facility Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it. 

		
	29.9
	Responsibility for documentation

Neither the Facility Agent nor the Arranger is responsible or liable for:
		
	(a)
	the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Facility Agent, the Security Agent, the Arranger, a Transaction Obligor or any other person in, or in connection with, any Transaction Document or the transactions contemplated in the Transaction Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document; or

		
	(b)
	the legality, validity, effectiveness, adequacy or enforceability of any Transaction Document or the Security Property or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Transaction Document or the Security Property; or 

		
	(c)
	any determination as to whether any information provided or to be provided to any Finance Party or Creditor Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

		
	29.10
	No duty to monitor

The Facility Agent shall not be bound to inquire:
		
	(a)
	whether or not any Default has occurred;

		
	(b)
	as to the performance, default or any breach by any Transaction Obligor of its obligations under any Transaction Document; or 

		
	(c)
	whether any other event specified in any Transaction Document has occurred. 

		
	29.11
	Exclusion of liability

		
	(a)
	Without limiting paragraph (b) below (and without prejudice to paragraph (e) of Clause 33.11 (Disruption to Payment Systems etc.) or any other provision of any Finance Document excluding or limiting the liability of the Facility Agent), the Facility Agent will not be liable for:

		
	(i)
	any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Transaction Document or the Security Property, unless directly caused by its gross negligence or wilful misconduct;

		
	(ii)
	exercising, or not exercising ,any right, power, authority or discretion given to it by, or in connection with, any Transaction Document, the Security Property or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Transaction Document or the Security Property; or 

		
	(iii)
	any shortfall which arises on the enforcement or realization of the Security Property; or

		
	(iv)
	without prejudice to the generality of paragraphs (i) to (iii) above, any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of:

		
	(A)
	any act, event or circumstance not reasonably within its control; or

		
	(B)
	the general risks of investment in, or the holding of assets in, any jurisdiction,

including (in each case and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of nationalization, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action. 
		
	(b)
	No Party other than the Facility Agent may take any proceedings against any officer, employee or agent of the Facility Agent in respect of any claim it might have against the Facility Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Transaction Document or any Security Property and any officer, employee or agent of the Facility Agent may rely on this Clause subject to Clause 1.5 (Third party rights).

		
	(c)
	The Facility Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Facility Agent if the Facility Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognized clearing or settlement system used by the Facility Agent for that purpose.

		
	(d)
	Nothing in this Agreement shall oblige the Facility Agent or the Arranger to carry out:

		
	(i)
	any “know your customer” or other checks in relation to any person; or

		
	(ii)
	any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Finance Party,

on behalf of any Finance Party and each Finance Party confirms to the Facility Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Facility Agent or the Arranger.
		
	(e)
	Without prejudice to any provision of any Finance Document excluding or limiting the Facility Agent’s liability, any liability of the Facility Agent arising under or in connection with any Transaction Document or the Security Property shall be limited to the amount of actual loss which has been finally judicially determined to have been suffered (as determined by reference to the date of default of the Facility Agent or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Facility Agent at any time which increase the amount of that loss. In no event shall the Facility Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Facility Agent has been advised of the possibility of such loss or damages. 

		
	29.12
	Lenders’ indemnity to the Facility Agent

		
	(a)
	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Facility Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Facility Agent (otherwise than by reason of the Facility Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 33.11 (Disruption to Payment Systems etc.) notwithstanding the Facility Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent) in acting as Facility Agent under the Finance Documents (unless the Facility Agent has been reimbursed by a Transaction Obligor pursuant to a Finance Document).

		
	(b)
	Subject to paragraph (c) below, the Borrower shall immediately on demand reimburse any Lender for any payment that Lender makes to the Facility Agent pursuant to paragraph (a) above.

		
	(c)
	Paragraph (b) above shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability of the Facility Agent to an Obligor. 

		
	29.13
	Resignation of the Facility Agent 

		
	(a)
	The Facility Agent may resign and appoint one of its Affiliates as successor by giving notice to the other Finance Parties and the Borrower.

		
	(b)
	Alternatively, the Facility Agent may resign by giving 30 days’ notice to the other Finance Parties and the Borrower, in which case the Majority Lenders may appoint a successor Facility Agent.

		
	(c)
	If the Majority Lenders have not appointed a successor Facility Agent in accordance with paragraph (b) above within 20 days after notice of resignation was given, the retiring Facility Agent may appoint a successor Facility Agent.

		
	(d)
	If the Facility Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Facility Agent is entitled to appoint a successor Facility Agent under paragraph (c) above, the Facility Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Facility Agent to become a party to this Agreement as Facility Agent) agree with the proposed successor Facility Agent amendments to this Clause 29 (The Facility Agent and the Arranger) and any other term of this Agreement dealing with the rights or obligations of the Facility Agent consistent with then current market practice for the appointment and protection of administrative agents together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Facility Agent’s normal fee rates and those amendments will bind the Parties. 

		
	(e)
	The retiring Facility Agent shall, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility Agent may reasonably request for the purposes of performing its functions as Facility Agent under the Finance Documents. 

		
	(f)
	The Facility Agent’s resignation notice shall only take effect upon the appointment of a successor.

		
	(g)
	Upon the appointment of a successor, the retiring Facility Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (e) above) but shall remain entitled to the benefit of Clause 14.4 (Indemnity to the Facility Agent) and this Clause 29 (The Facility Agent and the Arranger) and any other provisions of a Finance Document which are expressed to limit or exclude its liability (or to indemnify it) in acting as Facility Agent.  Any fees for the account of the retiring Facility Agent shall cease to accrue from (and shall be payable on) that date).  Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

		
	(h)
	The Majority Lenders may, by notice to the Facility Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Facility Agent shall resign in accordance with paragraph (b) above.

		
	(i)
	The consent of the Borrower (or any other Transaction Obligor) is not required for an assignment or transfer of rights and/or obligations by the Facility Agent.

		
	29.14
	Confidentiality

		
	(a)
	In acting as Facility Agent for the Finance Parties, the Facility Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

		
	(b)
	If information is received by a division or department of the Facility Agent other than the division or department responsible for complying with the obligations assumed by it under the Finance Documents, that information may be treated as confidential to that division or department, and the Facility Agent shall not be deemed to have notice of it nor shall it be obliged to disclose such information to any Party.

		
	29.15
	Relationship with the other Finance Parties

		
	(a)
	The Facility Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Facility Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

		
	(i)
	entitled to or liable for any payment due under any Finance Document on that day; and

		
	(ii)
	entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

unless it has received not less than five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this Agreement.
		
	(b)
	Each Finance Party shall supply the Facility Agent with any information that the Security Agent may reasonably specify (through the Facility Agent) as being necessary or desirable to enable the Security Agent to perform its functions as Security Agent.

		
	(c)
	Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or dispatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 36.5 (Electronic communication) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 36.2 (Addresses) and sub-paragraph (ii) of paragraph (a) of Clause 36.5 (Electronic communication) and the Facility Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender. 

		
	29.16
	Credit appraisal by the Finance Parties

Without affecting the responsibility of any Transaction Obligor for information supplied by it or on its behalf in connection with any Transaction Document, each Finance Party confirms to the Facility Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under, or in connection with, any Transaction Document including but not limited to:
		
	(a)
	the financial condition, status and nature of each member of the Group;

		
	(b)
	the legality, validity, effectiveness, adequacy or enforceability of any Transaction Document, the Security Property and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document or the Security Property;

		
	(c)
	whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under, or in connection with, any Transaction Document, the Security Property, the transactions contemplated by the Transaction Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document or the Security Property;

		
	(d)
	the adequacy, accuracy or completeness of any information provided by the Facility Agent, any Party or by any other person under, or in connection with, any Transaction Document, the transactions contemplated by any Transaction Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document; and

		
	(e)
	the right or title of any person in or to or the value or sufficiency of any part of the Security Assets, the priority of any of the Transaction Security or the existence of any Security affecting the Security Assets.

		
	29.17
	Reference Banks

The Facility Agent shall (if so instructed by the Majority Lenders and in consultation with the Borrower) replace a Reference Bank with another bank or financial institution.
		
	29.18
	Facility Agent’s management time 

		
	(a)
	Any amount payable to the Facility Agent under Clause 14.4 (Indemnity to the Facility Agent), Clause 16 (Costs and Expenses) and Clause 29.12 (Lenders’ indemnity to the Facility Agent) shall include the cost of utilizing the Facility Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Facility Agent may notify to the Borrower and the other Finance Parties, and is in addition to any fee paid or payable to the Facility Agent under Clause 11 (Fees).

		
	29.19
	Deduction from amounts payable by the Facility Agent

If any Party owes an amount to the Facility Agent under the Finance Documents, the Facility Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Facility Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.
		
	29.20
	Reliance and engagement letters

Each Creditor Party confirms that each of the Arranger and the Facility Agent has authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or reports already accepted by the Arranger or the Facility Agent) the terms of any reliance letter or engagement letters or any reports or letters provided by accountants, auditors or providers of due diligence reports in connection with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it in respect of those, reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.
		
	29.21
	Full freedom to enter into transactions

Without prejudice to Clause 29.7 (Business with the Group) or any other provision of a Finance Document and notwithstanding any rule of law or equity to the contrary, the Facility Agent shall be absolutely entitled:
		
	(a)
	to enter into and arrange banking, derivative, investment and/or other transactions of every kind with or affecting any Transaction Obligor or any person who is party to, or referred to in, a Finance Document (including, but not limited to, any interest or currency swap or other transaction, whether related to this Agreement or not, and acting as syndicate agent and/or security agent for, and/or participating in, other facilities to such Transaction Obligor or any person who is party to, or referred to in, a Finance Document);

		
	(b)
	to deal in and enter into and arrange transactions relating to:

		
	(i)
	any securities issued or to be issued by any Transaction Obligor or any other person; or 

		
	(ii)
	any options or other derivatives in connection with such securities; and

		
	(c)
	to provide advice or other services to the Borrower or any person who is a party to, or referred to in, a Finance Document,

and, in particular, the Facility Agent shall be absolutely entitled, in proposing, evaluating, negotiating, entering into and arranging all such transactions and in connection with all other matters covered by paragraphs (a), (b) and (c) above, to use (subject only to insider dealing legislation) any information or opportunity, howsoever acquired by it, to pursue its own interests exclusively, to refrain from disclosing such dealings, transactions or other matters or any information acquired in connection with them and to retain for its sole benefit all profits and benefits derived from the dealings transactions or other matters.

		
	30
	THE SECURITY AGENT

		
	30.1
	Appointment and trust

		
	(a)
	Each other Finance Party appoints the Security Agent to act as its agent and (to the extent permitted or required under any applicable law) trustee in connection with the Security Property and confirms that the Security Agent shall have a lien on the Security Property and the proceeds of the enforcement of the Security Documents for all moneys payable to the beneficiaries of the Security Documents.

		
	(b)
	The Security Agent accepts its appointment under paragraph (a) above as trustee of the Security Property with effect from the date of this Agreement and declares that it holds the Security Property on trust for the Creditor Parties on the terms contained in this Agreement and shall deal with the Security Property in accordance with this Clause 30 (The Security Agent) and the other provisions of the Finance Documents.

		
	(c)
	Each other Finance Party appoints the Security Agent, as trustee to (i) perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Security Agent under, or in connection with, the Finance Documents together with any other incidental rights, powers, authorities and discretions, and (ii) execute each of the Security Documents and all other documents that may be approved by the Facility Agent and/or the Majority Lenders for execution by it.

		
	30.2
	Parallel Debt (Covenant to pay the Security Agent)

		
	(a)
	Each Obligor irrevocably and unconditionally undertakes to pay to the Security Agent its Parallel Debt which shall be amounts equal to, and in the currency or currencies of, its Corresponding Debt.

		
	(b)
	The Parallel Debt of an Obligor:

		
	(i)
	shall become due and payable at the same time as its Corresponding Debt;

		
	(ii)
	is independent and separate from, and without prejudice to, its Corresponding Debt.

		
	(c)
	For purposes of this Clause 30.2 (Parallel Debt (Covenant to pay the Security Agent), the Security Agent:

		
	(i)
	is the independent and separate creditor of each Parallel Debt;

		
	(ii)
	acts in its own name and not as agent, representative or trustee of the Finance Parties and its claims in respect of each Parallel Debt shall not be held on trust; and

		
	(iii)
	shall have the independent and separate right to demand payment of each Parallel Debt in its own name (including, without limitation, through any suit, execution, enforcement of security, recovery of guarantees and applications for and voting in any kind of insolvency proceeding).

		
	(d)
	The Parallel Debt of an Obligor shall be:

		
	(i)
	decreased to the extent that its Corresponding Debt has been irrevocably and unconditionally paid or discharged; and

		
	(ii)
	increased to the extent that its Corresponding Debt has increased,

and the Corresponding Debt of an Obligor shall be:
		
	(A)
	decreased to the extent that its Parallel Debt has been irrevocably and unconditionally paid or discharged; and

		
	(B)
	increased to the extent that its Parallel Debt has increased,

in each case provided that the Parallel Debt of an Obligor shall never exceed its Corresponding Debt.
		
	(e)
	All amounts received or recovered by the Security Agent in connection with this Clause 30.2 (Parallel Debt (Covenant to pay the Security Agent)) to the extent permitted by applicable law, shall be applied in accordance with Clause 33.5 (Application of receipts; partial payments).

		
	(f)
	This Clause 30.2 (Parallel Debt (Covenant to pay the Security Agent)) shall apply, with any necessary modifications, to each Finance Document.

		
	30.3
	Enforcement through Security Agent only

The Creditor Parties shall not have any independent power to enforce, or have recourse to, any of the Transaction Security or to exercise any right, power, authority or discretion arising under the Security Documents except through the Security Agent.
		
	30.4
	Instructions 

		
	(a)
	The Security Agent shall:

		
	(i)
	unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Security Agent in accordance with any instructions given to it by the Facility Agent acting on the instructions of: 

		
	(A)
	all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and 

		
	(B)
	in all other cases, the Majority Lenders; and 

		
	(ii)
	not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with sub-paragraph (i) above (or if this Agreement stipulates the matter is a decision for any other Finance Party or group of Finance Parties, from that Finance Party or group of Finance Parties).

		
	(b)
	The Security Agent shall be entitled to request instructions, or clarification of any instruction, from the Facility Agent acting on the instructions of the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Finance Party or group of Finance Parties, from that Finance Party or group of Finance Parties) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, authority or discretion and the Security Agent may refrain from acting unless and until it receives any such instructions or clarification that it has requested.

		
	(c)
	Save in the case of decisions stipulated to be a matter for any other Finance Party or group of Finance Parties under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Security Agent by the Facility Agent acting on the instructions of the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties.

		
	(d)
	Paragraph (a) above shall not apply:

		
	(i)
	where a contrary indication appears in a Finance Document;

		
	(ii)
	where a Finance Document requires the Security Agent to act in a specified manner or to take a specified action;

		
	(iii)
	in respect of any provision which protects the Security Agent’s own position in its personal capacity as opposed to its role of Security Agent for the relevant Creditor Parties.

		
	(iv)
	in respect of the exercise of the Security Agent’s discretion to exercise a right, power or authority under any of:

		
	(A)
	Clause 30.26 (Deductions from receipts); and

		
	(B)
	Clause 30.27 (Prospective liabilities).

		
	(e)
	If giving effect to instructions given by the Facility Agent acting on the instructions of the Majority Lenders would in the Security Agent’s opinion have an effect equivalent to an amendment or waiver referred to in Clause 42 (Amendments and Waivers), the Security Agent shall not act in accordance with those instructions unless consent to it so acting is obtained from each Party (other than the Security Agent) whose consent would have been required in respect of that amendment or waiver.

		
	(f)
	In exercising any discretion to exercise a right, power or authority under the Finance Documents where either:

		
	(i)
	it has not received any instructions as to the exercise of that discretion; or 

		
	(ii)
	the exercise of that discretion is subject to sub-paragraph (iv) (iv)of paragraph (d) above, 

the Security Agent shall do so having regard to the interests of all the Creditor Parties.  
		
	(g)
	The Security Agent may refrain from acting in accordance with any instructions of the Facility Agent acting on the instructions of any Finance Party or group of Finance Parties until it has received any indemnification and/or security that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability (together with any applicable VAT) which it may incur in complying with those instructions. 

		
	(h)
	Without prejudice to the remainder of this Clause 30.4 (Instructions), in the absence of instructions, the Security Agent may (but shall not be obliged to) take such action in the exercise of its powers and duties under the Finance Documents as it considers in its discretion to be appropriate. 

		
	(i)
	The Security Agent is not authorized to act on behalf of a Finance Party (without first obtaining that Finance Party’s consent) in any legal or arbitration proceedings relating to any Finance Document.  This paragraph (i) shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Security Documents or enforcement of the Transaction Security or Security Documents. 

		
	30.5
	Duties of the Security Agent

		
	(a)
	The Security Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

		
	(b)
	The Security Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Security Agent for that Party by any other Party.

		
	(c)
	Except where a Finance Document specifically provides otherwise, the Security Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

		
	(d)
	If the Security Agent receives notice from a Party referring to any Finance Document, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

		
	(e)
	The Security Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied). 

		
	30.6
	No fiduciary duties

		
	(a)
	Nothing in any Finance Document constitutes the Security Agent as an agent, trustee or fiduciary of any Transaction Obligor.

		
	(b)
	The Security Agent shall not be bound to account to any other Party for any sum or the profit element of any sum received by it for its own account.

		
	30.7
	Business with the Group

The Security Agent may accept deposits from, lend money to, and generally engage in any kind of banking or other business with, any member of the Group.
		
	30.8
	Rights and discretions

		
	(a)
	The Security Agent may:

		
	(i)
	rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorized;

		
	(ii)
	assume that:

		
	(A)
	any instructions received by it from the Facility Agent acting on the instructions of the Majority Lenders, any Finance Parties or any group of Finance Parties are duly given in accordance with the terms of the Finance Documents; and 

		
	(B)
	unless it has received notice of revocation, that those instructions have not been revoked; and 

		
	(iii)
	rely on a certificate from any person:

		
	(A)
	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or 

		
	(B)
	to the effect that such person approves of any particular dealing, transaction, step, action or thing,

as sufficient evidence that that is the case and, in the case of paragraph (A) above, may assume the truth and accuracy of that certificate.
		
	(b)
	The Security Agent may assume (unless it has received notice to the contrary in its capacity as security agent for the Creditor Parties) that:

		
	(i)
	no Default has occurred;

		
	(ii)
	any right, power, authority or discretion vested in any Party or any group of Finance Parties has not been exercised; and

		
	(iii)
	any notice or request made by the Borrower (other than a Drawdown Request or a Selection Notice) is made on behalf of and with the consent and knowledge of all the Transaction Obligors.

		
	(c)
	The Security Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts.

		
	(d)
	Without prejudice to the generality of paragraph (c) above or paragraph (e) below, the Security Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Security Agent (and so separate from any lawyers instructed by the Facility Agent or the Lenders) if the Security Agent in its reasonable opinion deems this to be desirable.

		
	(e)
	The Security Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Security Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying. 

		
	(f)
	The Security Agent may act in relation to the Finance Documents and the Security Property through its officers, employees and agents and shall not:

		
	(i)
	be liable for any error of judgment made by any such person; or 

		
	(ii)
	be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part of any such person,

unless such error or such loss was directly caused by the Security Agent’s gross negligence or wilful misconduct. 
		
	(g)
	Unless a Finance Document expressly provides otherwise the Security Agent may disclose to any other Party any information it reasonably believes it has received as security agent under the Finance Documents. 

		
	(h)
	Notwithstanding any other provision of any Finance Document to the contrary, the Security Agent is not obliged to do or omit to do anything if it would or might, in its reasonable opinion, constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

		
	(i)
	Notwithstanding any provision of any Finance Document to the contrary, the Security Agent is not obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security for, such risk or liability is not reasonably assured to it. 

		
	30.9
	Responsibility for documentation

The Security Agent is not responsible or liable for:
		
	(a)
	the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Facility Agent, the Security Agent, the Arranger, a Transaction Obligor or any other person in, or in connection with, any Transaction Document or the transactions contemplated in the Transaction Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document; 

		
	(b)
	the legality, validity, effectiveness, adequacy or enforceability of any Transaction Document or the Security Property or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Transaction Document or the Security Property; or 

		
	(c)
	any determination as to whether any information provided or to be provided to any Creditor Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

		
	30.10
	No duty to monitor

The Security Agent shall not be bound to inquire:
		
	(a)
	whether or not any Default has occurred;

		
	(b)
	as to the performance, default or any breach by any Transaction Obligor of its obligations under any Transaction Document; or 

		
	(c)
	whether any other event specified in any Transaction Document has occurred. 

		
	30.11
	Exclusion of liability

		
	(a)
	Without limiting paragraph (b) below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Security Agent or any Receiver or Delegate), none of the Security Agent nor any Receiver or Delegate will be liable for:

		
	(i)
	any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Transaction Document or the Security Property, unless directly caused by its gross negligence or wilful misconduct;

		
	(ii)
	exercising, or not exercising ,any right, power, authority or discretion given to it by, or in connection with, any Transaction Document, the Security Property or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Transaction Document or the Security Property; or 

		
	(iii)
	any shortfall which arises on the enforcement or realization of the Security Property; or

		
	(iv)
	without prejudice to the generality of paragraphs (i) to (iii) above, any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of:

		
	(A)
	any act, event or circumstance not reasonably within its control; or

		
	(B)
	the general risks of investment in, or the holding of assets in, any jurisdiction,

including (in each case and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of nationalization, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action. 
		
	(b)
	No Party other than the  Security Agent, that Receiver or that Delegate (as applicable) may take any proceedings against any officer, employee or agent of the Security Agent, a Receiver or a Delegate in respect of any claim it might have against the Security Agent, a Receiver or a Delegate or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Transaction Document or any Security Property and any officer, employee or agent of the Security Agent, a Receiver or a Delegate may rely on this Clause subject to Clause 1.5 (Third party rights).

		
	(c)
	The Security Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Security Agent if the Security Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognized clearing or settlement system used by the Security Agent for that purpose.

		
	(d)
	Nothing in this Agreement shall oblige the Security Agent to carry out:

		
	(i)
	any “know your customer” or other checks in relation to any person; or

		
	(ii)
	any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Finance Party,

on behalf of any Finance Party and each Finance Party confirms to the Security Agent that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Security Agent.
		
	(e)
	Without prejudice to any provision of any Finance Document excluding or limiting the liability of the Security Agent, any Receiver or Delegate, any liability of the Security Agent, any Receiver or Delegate arising under or in connection with any Transaction Document or the Security Property shall be limited to the amount of actual loss which has been finally judicially determined to have been suffered (as determined by reference to the date of default of the Security Agent, Receiver or Delegate or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Security Agent, any Receiver or Delegate at any time which increase the amount of that loss. In no event shall the Security Agent, any Receiver or Delegate be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not the Security Agent, the Receiver or Delegate has been advised of the possibility of such loss or damages.

		
	30.12
	Lenders’ indemnity to the Security Agent

		
	(a)
	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Security Agent and every Receiver and every Delegate, within three Business Days of demand, against any cost, loss or liability incurred by any of them (otherwise than by reason of the Security Agent’s, Receiver’s or Delegate’s gross negligence or wilful misconduct) in acting as Security Agent, Receiver or Delegate under the Finance Documents (unless the Security Agent, Receiver or Delegate has been reimbursed by a Transaction Obligor pursuant to a Finance Document).

		
	(b)
	Subject to paragraph (c) below, the Borrower shall immediately on demand reimburse any Lender for any payment that Lender makes to the Security Agent pursuant to paragraph (a) above. 

		
	(c)
	Paragraph (b) above shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability of the Security Agent to an Obligor.

		
	30.13
	Resignation of the Security Agent 

		
	(a)
	The Security Agent may resign and appoint one of its Affiliates as successor by giving notice to the other Finance Parties and the Borrower.

		
	(b)
	Alternatively, the Security Agent may resign by giving 30 days’ notice to the other Finance Parties and the Borrower, in which case the Majority Lenders may appoint a successor Security Agent.

		
	(c)
	If the Majority Lenders have not appointed a successor Security Agent in accordance with paragraph (b) above within 20 days after notice of resignation was given, the retiring Security Agent may appoint a successor Security Agent.

		
	(d)
	The retiring Security Agent shall, at its own cost, make available to the successor Security Agent such documents and records and provide such assistance as the successor Security Agent may reasonably request for the purposes of performing its functions as Security Agent under the Finance Documents. 

		
	(e)
	The Security Agent’s resignation notice shall only take effect upon:

		
	(i)
	the appointment of a successor; and 

		
	(ii)
	the transfer of all the Security Property to that successor. 

		
	(f)
	Upon the appointment of a successor, the retiring Security Agent shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (b) of Clause 30.24 (Winding up of trust) and paragraph (d) above) but shall remain entitled to the benefit of Clause 14.5 (Indemnity to the Security Agent) and this Clause 30 (The Security Agent) and any other provisions of a Finance Document which are expressed to limit or exclude its liability (or to indemnify it) in acting as Security Agent.  Any fees for the account of the retiring Security Agent shall cease to accrue from (and shall be payable on) that date).  Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

		
	(g)
	The Majority Lenders may, by notice to the Security Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Security Agent shall resign in accordance with paragraph (b) above.

		
	(h)
	The consent of the Borrower (or any other Transaction Obligor) is not required for an assignment or transfer of rights and/or obligations by the Security Agent.

		
	30.14
	Confidentiality

		
	(a)
	In acting as Security Agent for the Finance Parties, the Security Agent shall be regarded as acting through its trustee division which shall be treated as a separate entity from any other of its divisions or departments.

		
	(b)
	If information is received by a division or department of the Security Agent other than the division or department responsible for complying with the obligations assumed by it under the Finance Documents, that information may be treated as confidential to that division or department, and the Security Agent shall not be deemed to have notice of it nor shall it be obliged to disclose such information to any Party.

		
	30.15
	Credit appraisal by the Finance Parties

Without affecting the responsibility of any Transaction Obligor for information supplied by it or on its behalf in connection with any Transaction Document, each Finance Party confirms to the Security Agent that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under, or in connection with, any Transaction Document including but not limited to:
		
	(a)
	the financial condition, status and nature of each member of the Group;

		
	(b)
	the legality, validity, effectiveness, adequacy or enforceability of any Transaction Document, the Security Property and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document or the Security Property;

		
	(c)
	whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under, or in connection with, any Transaction Document, the Security Property, the transactions contemplated by the Transaction Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document or the Security Property;

		
	(d)
	the adequacy, accuracy or completeness of any information provided by the Security Agent, any Party or by any other person under, or in connection with, any Transaction Document, the transactions contemplated by any Transaction Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Transaction Document; and

		
	(e)
	the right or title of any person in or to or the value or sufficiency of any part of the Security Assets, the priority of any of the Transaction Security or the existence of any Security affecting the Security Assets.

		
	30.16
	 Security Agent’s management time 

		
	(a)
	Any amount payable to the Security Agent under Clause 14.5 (Indemnity to the Security Agent), Clause 16 (Costs and Expenses) and Clause 30.12 (Lenders’ indemnity to the Security Agent) shall include the cost of utilizing the Security Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Security Agent may notify to the Borrower and the other Finance Parties, and is in addition to any fee paid or payable to the Security Agent under Clause 11 (Fees).

		
	(b)
	Without prejudice to paragraph (a) above, in the event of:

		
	(i)
	An Event of Default;

		
	(ii)
	the Security Agent being requested by a Transaction Obligor or the Facility Agent acting on the instructions of the Majority Lenders to undertake duties which the Security Agent and the Borrower agree to be of an exceptional nature or outside the scope of the normal duties of the Security Agent under the Finance Documents; or

		
	(iii)
	the Security Agent and the Borrower agreeing that it is otherwise appropriate in the circumstances,

the Borrower shall pay to the Security Agent any additional remuneration (together with any applicable VAT) that may be agreed between them or determined pursuant to paragraph (c) below.
		
	(c)
	If the Security Agent and the Borrower fail to agree upon the nature of the duties, or upon the additional remuneration referred to in paragraph (b) above or whether additional remuneration is appropriate in the circumstances, any dispute shall be determined by an investment bank (acting as an expert and not as an arbitrator) selected by the Security Agent and approved by the Borrower (the costs of the nomination and of the investment bank being payable by the Borrower) and the determination of any investment bank shall be final and binding upon the Parties.

		
	30.17
	Reliance and engagement letters

Each Creditor Party confirms that the Security Agent has authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or reports already accepted by the Security Agent) the terms of any reliance letter or engagement letters or any reports or letters provided by accountants, auditors or providers of due diligence reports in connection with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it in respect of those, reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.
		
	30.18
	No responsibility to perfect Transaction Security

The Security Agent shall not be liable for any failure to:
		
	(a)
	require the deposit with it of any deed or document certifying, representing or constituting the title of any Transaction Obligor to any of the Security Assets;

		
	(b)
	obtain any license, consent or other authority for the execution, delivery, legality, validity, enforceability or admissibility in evidence of any Finance Document or the Transaction Security;

		
	(c)
	register, file or record or otherwise protect any of the Transaction Security (or the priority of any of the Transaction Security) under any law or regulation or to give notice to any person of the execution of any Finance Document or of the Transaction Security;

		
	(d)
	take, or to require any Transaction Obligor to take, any step to perfect its title to any of the Security Assets or to render the Transaction Security effective or to secure the creation of any ancillary Security under any law or regulation; or

		
	(e)
	require any further assurance in relation to any Security Document.

		
	30.19
	Insurance by Security Agent

		
	(a)
	The Security Agent shall not be obliged:

		
	(i)
	to insure any of the Security Assets;

		
	(ii)
	to require any other person to maintain any insurance; or 

		
	(iii)
	to verify any obligation to arrange or maintain insurance contained in any Finance Document,

and the Security Agent shall not be liable for any damages, costs or losses to any person as a result of the lack of, or inadequacy of, any such insurance.
		
	(b)
	Where the Security Agent is named on any insurance policy as an insured party, it shall not be liable for any damages, costs or losses to any person as a result of its failure to notify the insurers of any material fact relating to the risk assumed by such insurers or any other information of any kind, unless the Facility Agent acting on the instructions of the Majority Lenders request it to do so in writing and the Security Agent fails to do so within 14 days after receipt of that request.

		
	30.20
	Custodians and nominees

The Security Agent may appoint and pay any person to act as a custodian or nominee on any terms in relation to any asset of the trust as the Security Agent may determine, including for the purpose of depositing with a custodian this Agreement or any document relating to the trust created under this Agreement and the Security Agent shall not be responsible for any loss, liability, expense, demand, cost, claim or proceedings incurred by reason of the misconduct, omission or default on the part of any person appointed by it under this Agreement or be bound to supervise the proceedings or acts of any person.
		
	30.21
	Delegation by the Security Agent

		
	(a)
	Each of the Security Agent, any Receiver and any Delegate may, at any time, delegate by power of attorney or otherwise to any person for any period, all or any right, power, authority or discretion vested in it in its capacity as such.

		
	(b)
	That delegation may be made upon any terms and conditions (including the power to sub delegate) and subject to any restrictions that the Security Agent, that Receiver or that Delegate (as the case may be) may, in its discretion, think fit in the interests of the Creditor Parties.

		
	(c)
	No Security Agent, Receiver or Delegate shall be bound to supervise, or be in any way responsible for any damages, costs or losses incurred by reason of any misconduct, omission or default on the part of any such delegate or sub delegate.

		
	30.22
	Additional Security Agents

		
	(a)
	The Security Agent may at any time appoint (and subsequently remove) any person to act as a separate trustee or as a co-trustee jointly with it:

		
	(i)
	if it considers that appointment to be in the interests of the Creditor Parties; or 

		
	(ii)
	for the purposes of conforming to any legal requirement, restriction or condition which the Security Agent deems to be relevant; or 

		
	(iii)
	for obtaining or enforcing any judgment in any jurisdiction, 

and the Security Agent shall give prior notice to the Borrower and the Finance Parties of that appointment.
		
	(b)
	Any person so appointed shall have the rights, powers, authorities and discretions (not exceeding those given to the Security Agent under or in connection with the Finance Documents) and the duties, obligations and responsibilities that are given or imposed by the instrument of appointment.

		
	(c)
	The remuneration that the Security Agent may pay to that person, and any costs and expenses (together with any applicable VAT) incurred by that person in performing its functions pursuant to that appointment shall, for the purposes of this Agreement, be treated as costs and expenses incurred by the Security Agent.

		
	30.23
	Acceptance of title

The Security Agent shall be entitled to accept without inquiry, and shall not be obliged to investigate, any right and title that any Transaction Obligor may have to any of the Security Assets and shall not be liable for or bound to require any Transaction Obligor to remedy any defect in its right or title.
		
	30.24
	Winding up of trust

If the Security Agent, with the approval of the Facility Agent determines that:
		
	(a)
	all of the Secured Liabilities and all other obligations secured by the Security Documents have been fully and finally discharged; and 

		
	(b)
	no Creditor Party is under any commitment, obligation or liability (actual or contingent) to make advances or provide other financial accommodation to any Transaction Obligor pursuant to the Finance Documents, 

then
		
	(i)
	the trusts set out in this Agreement shall be wound up and the Security Agent shall release, without recourse or warranty, all of the Transaction Security and the rights of the Security Agent under each of the Security Documents; and

		
	(ii)
	any Security Agent which has resigned pursuant to Clause 30.13 (Resignation of the Security Agent) shall release, without recourse or warranty, all of its rights under each Security Document.

		
	30.25
	Application of receipts

		
	(a)
	Except as expressly stated to the contrary in any Finance Document, any moneys which the Security Agent receives or recovers and which are, or are attributable to, Security Property (for the purposes of this Clause 30 (The Security Agent), the “Recoveries”) shall be transferred to the Facility Agent for application in accordance with Clause 33.5 (Application of receipts; partial payments).

		
	(b)
	Paragraph (a) above is without prejudice to the rights of the Security Agent, each Receiver and each Delegate:

		
	(i)
	under Clause 14.5 (Indemnity to the Security Agent) or any other indemnity in favor of the Security Agent under the Finance Documents to be indemnified out of the Security Assets; and 

		
	(ii)
	under any Finance Document to credit any moneys received or recovered by it to any suspense account.

		
	(c)
	Any transfer by the Security Agent to the Facility Agent in accordance with paragraph (a) above shall be a good discharge, to the extent of that payment, by the Security Agent.

		
	(d)
	The Security Agent is under no obligation to make the payments to the Facility Agent under paragraph (a) of this Clause 30.25 (Application of receipts) in the same currency as that in which the obligations and liabilities owing to the relevant Finance Party are denominated.

		
	30.26
	Deductions from receipts

		
	(a)
	Before transferring any moneys to the Facility Agent under Clause 30.25 (Application of receipts), the Security Agent may, in its discretion:

		
	(i)
	deduct any sum then due and payable under this Agreement or any other Finance Documents to the Security Agent or any Receiver or Delegate and retain that sum for itself or, as the case may require, pay it to another person to whom it is then due and payable;

		
	(ii)
	set aside by way of reserve amounts required to meet, and to make and pay, any deductions and withholdings (on account of Taxes or otherwise) which it is or may be required by any applicable law to make from any distribution or payment made by it under this Agreement; and 

		
	(iii)
	pay all Taxes which may be assessed against it in respect of any of the Security Property, or as a consequence of performing its duties, or by virtue of its capacity as Security Agent under any of the Finance Documents or otherwise (other than in connection with its remuneration for performing its duties under this Agreement).

		
	(b)
	For the purposes of sub-paragraph (i) of paragraph (a) above, if the Security Agent has become entitled to require a sum to be paid to it on demand, that sum shall be treated as due and payable, even if no demand has yet been served. 

		
	30.27
	Prospective liabilities

Following acceleration, the Security Agent may, in its discretion, or at the request of the Facility Agent, hold any Recoveries in an interest bearing suspense or impersonal account(s) in the name of the Security Agent with such financial institution (including itself) and for so long as the Security Agent shall think fit (the interest being credited to the relevant account) for later payment to the Facility Agent for application in accordance with Clause 33.5 (Application of receipts; partial payments) in respect of:
		
	(a)
	any sum to the Security Agent, any Receiver or any Delegate; and

		
	(b)
	any part of the Secured Liabilities, 

that the Security Agent or, in the case of paragraph (b) only, the Facility Agent, reasonably considers, in each case, might become due or owing at any time in the future.
		
	30.28
	Investment of proceeds

Prior to the payment of the proceeds of the Recoveries to the Facility Agent for application in accordance with Clause 33.5 (Application of receipts; partial payments) the Security Agent may, in its discretion, hold all or part of those proceeds in an interest bearing suspense or impersonal account(s) in the name of the Security Agent with such financial institution (including itself) and for so long as the Security Agent shall think fit (the interest being credited to the relevant account) pending the payment  from time to time of those moneys in the Security Agent’s discretion in accordance with the provisions of this Clause 30.28 (Investment of proceeds).
		
	30.29
	Currency conversion

		
	(a)
	For the purpose of, or pending the discharge of, any of the Secured Liabilities the Security Agent may convert any moneys received or recovered by the Security Agent from one currency to another, at a market rate of exchange.

		
	(b)
	The obligations of any Transaction Obligor to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting the costs of conversion.

		
	30.30
	Good discharge

Any payment to be made in respect of the Secured Liabilities by the Security Agent may be made to the Facility Agent on behalf of the Creditor Parties and any payment made in that way shall be a good discharge, to the extent of that payment, by the Security Agent.
		
	30.31
	Full freedom to enter into transactions

Without prejudice to Clause 30.7 (Business with the Group) or any other provision of a Finance Document and notwithstanding any rule of law or equity to the contrary, the Security Agent shall be absolutely entitled:
		
	(a)
	to enter into and arrange banking, derivative, investment and/or other transactions of every kind with or affecting any Transaction Obligor or any person who is party to, or referred to in, a Finance Document (including, but not limited to, any interest or currency swap or other transaction, whether related to this Agreement or not, and acting as syndicate agent and/or security agent for, and/or participating in, other facilities to such Transaction Obligor or any person who is party to, or referred to in, a Finance Document);

		
	(b)
	to deal in and enter into and arrange transactions relating to:

		
	(i)
	any securities issued or to be issued by any Transaction Obligor or any other person; or 

		
	(ii)
	any options or other derivatives in connection with such securities; and

		
	(c)
	to provide advice or other services to the Borrower or any person who is a party to, or referred to in, a Finance Document,

and, in particular, the Security Agent shall be absolutely entitled, in proposing, evaluating, negotiating, entering into and arranging all such transactions and in connection with all other matters covered by paragraphs (a), (b) and (c) above, to use (subject only to insider dealing legislation) any information or opportunity, howsoever acquired by it, to pursue its own interests exclusively, to refrain from disclosing such dealings, transactions or other matters or any information acquired in connection with them and to retain for its sole benefit all profits and benefits derived from the dealings transactions or other matters.

		
	31
	CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of this Agreement will:
		
	(a)
	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

		
	(b)
	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

		
	(c)
	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

		
	32
	SHARING AMONG THE FINANCE PARTIES

		
	32.1
	Payments to Finance Parties

If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from a Transaction Obligor other than in accordance with Clause 33 (Payment Mechanics) (a “Recovered Amount”) and applies that amount to a payment due to it under the Finance Documents then:
		
	(a)
	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery, to the Facility Agent;

		
	(b)
	the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Facility Agent and distributed in accordance with Clause 33 (Payment Mechanics), without taking account of any Tax which would be imposed on the Facility Agent in relation to the receipt, recovery or distribution; and

		
	(c)
	the Recovering Finance Party shall, within three Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Facility Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 33.5 (Application of receipts; partial payments).

		
	32.2
	Redistribution of payments

The Facility Agent shall treat the Sharing Payment as if it had been paid by the relevant Transaction Obligor and distribute it among the Finance Parties (other than the Recovering Finance Party) (the “Sharing Finance Parties”) in accordance with Clause 33.5 (Application of receipts; partial payments) towards the obligations of that Transaction Obligor to the Sharing Finance Parties.
		
	32.3
	Recovering Finance Party’s rights

On a distribution by the Facility Agent under Clause 32.2 (Redistribution of payments) of a payment received by a Recovering Finance Party from a Transaction Obligor, as between the relevant Transaction Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Transaction Obligor.
		
	32.4
	Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:
		
	(a)
	each Sharing Finance Party shall, upon request of the Facility Agent, pay to the Facility Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the “Redistributed Amount”); and

		
	(b)
	as between the relevant Transaction Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Transaction Obligor.

		
	32.5
	Exceptions

		
	(a)
	This Clause 32 (Sharing among the Finance Parties) shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Transaction Obligor.

		
	(b)
	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

		
	(i)
	it notified that other Finance Party of the legal or arbitration proceedings; and

		
	(ii)
	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

SECTION 11 
 
ADMINISTRATION

		
	33
	PAYMENT MECHANICS

		
	33.1
	Payments to the Facility Agent

		
	(a)
	On each date on which a Transaction Obligor or a Lender is required to make a payment under a Finance Document, that Transaction Obligor or Lender shall make an amount equal to such payment available to the Facility Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time specified by the Facility Agent as being customary for settlement of transactions in dollars in the place of payment.

		
	(b)
	Payment shall be made to such account as specified by the Facility Agent) and with such bank as the Facility Agent, in each case, specifies.

		
	33.2
	Distributions by the Facility Agent

Each payment received by the Facility Agent under the Finance Documents for another Party shall, subject to Clause 33.3 (Distributions to a Transaction Obligor) and Clause 33.4 (Clawback and pre-funding) be made available by the Facility Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Facility Agent by not less than five Business Days’ notice with a bank specified by that Party or, in the case of the Advance, to such account of such person as may be specified by the Borrower in the Drawdown Request.
		
	33.3
	Distributions to a Transaction Obligor

The Facility Agent may (with the consent of the Transaction Obligor or in accordance with Clause 34 (Set-Off)) apply any amount received by it for that Transaction Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Transaction Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.
		
	33.4
	Clawback and pre-funding

		
	(a)
	Where a sum is to be paid to the Facility Agent under the Finance Documents for another Party, the Facility Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.  

		
	(b)
	Unless paragraph (c) below applies, if the Facility Agent pays an amount to another Party and it proves to be the case that the Facility Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Facility Agent shall on demand refund the same to the Facility Agent together with interest on that amount from the date of payment to the date of receipt by the Facility Agent, calculated by the Facility Agent to reflect its cost of funds.

		
	(c)
	If the Facility Agent has notified the Lenders that it is willing to make available amounts for the account of the Borrower before receiving funds from the Lenders then if and to the extent that the Facility Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to the Borrower:

		
	(i)
	the Facility Agent shall notify the Borrower of the Lender’s identity and the Borrower shall on demand refund it to the Facility Agent; and

		
	(ii)
	the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower shall on demand pay to the Facility Agent the amount (as certified by the Facility Agent) which will indemnify the Facility Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

		
	33.5
	Application of receipts; partial payments

		
	(a)
	Subject to paragraph (b) below and except as any Finance Document may otherwise provide, any payment that is received or recovered by any Finance Party under, in connection with, or pursuant to any Finance Document shall be paid to the Facility Agent which shall apply the same in the following order:

		
	(i)
	first, in or towards payment of any amounts then due and payable under any of the Finance Documents;

		
	(ii)
	secondly, in retention by the Security Agent of an amount equal to any amount not then payable under any Finance Document but which the Facility Agent, by notice to the Borrower and the other Finance Parties, states in its opinion will or may become payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them; and

		
	(iii)
	thirdly, any surplus shall be paid to the Borrower or to any other person who appears to be entitled to it.

		
	(b)
	If the Facility Agent receives a payment that is insufficient to discharge all the amounts then due and payable by a Transaction Obligor under the Finance Documents, the Facility Agent shall apply that payment towards the obligations of that Transaction Obligor under the Finance Documents in the following order:

		
	(i)
	first, in or towards payment pro rata of any unpaid fees, costs and expenses of, and any other amounts owing to, the Facility Agent, the Security Agent, any Receiver and any Delegate under the Finance Documents;

		
	(ii)
	secondly, in or towards payment pro rata of any accrued interest or commission due to any Finance Party but unpaid under this Agreement;

		
	(iii)
	thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and

		
	(iv)
	fourthly, in or towards payment pro rata of any other sum due to any Finance Party but unpaid under the Finance Documents.

		
	(c)
	The Facility Agent shall, if so directed by the Majority Lenders, vary the order set out in sub-paragraphs (ii) to (iv) of paragraph (b) above.

		
	(d)
	Paragraphs (a), (b) and (c) above will override any appropriation made by a Transaction Obligor.

		
	33.6
	No set-off by Transaction Obligors

All payments to be made by a Transaction Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.
		
	33.7
	Business Days

		
	(a)
	Any payment under the Finance Documents which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

		
	(b)
	During any extension of the due date for payment of any principal or an Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

		
	33.8
	Currency of account

		
	(a)
	Subject to paragraphs (b) and (c) below, dollars is the currency of account and payment for any sum due from a Transaction Obligor under any Finance Document.

		
	(b)
	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

		
	(c)
	Any amount expressed to be payable in a currency other than dollars shall be paid in that other currency.

		
	33.9
	Change of currency

		
	(a)
	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognized by the central bank of any country as the lawful currency of that country, then:

		
	(i)
	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Facility Agent (after consultation with the Borrower); and

		
	(ii)
	any translation from one currency or currency unit to another shall be at the official rate of exchange recognized by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Facility Agent (acting reasonably).

		
	(b)
	If a change in any currency of a country occurs, this Agreement will, to the extent the Facility Agent (acting reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

		
	33.10
	Currency Conversion

		
	(a)
	For the purpose of, or pending any payment to be made by any Servicing Party under any Finance Document, such Servicing Party may convert any moneys received or recovered by it from one currency to another, at a market rate of exchange.

		
	(b)
	The obligations of any Transaction Obligor to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting the costs of conversion.

		
	33.11
	Disruption to Payment Systems etc.

If either the Facility Agent determines (in its discretion) that a Disruption Event has occurred or the Facility Agent is notified by the Borrower that a Disruption Event has occurred:
		
	(a)
	the Facility Agent may, and shall if requested to do so by the Borrower, consult with the Borrower with a view to agreeing with the Borrower such changes to the operation or administration of the Facility as the Facility Agent may deem necessary in the circumstances;

		
	(b)
	the Facility Agent shall not be obliged to consult with the Borrower in relation to any changes mentioned in paragraph (a) above if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

		
	(c)
	the Facility Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) above but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

		
	(d)
	any such changes agreed upon by the Facility Agent and the Borrower shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 42 (Amendments and Waivers);

		
	(e)
	the Facility Agent shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 33.11 (Disruption to Payment Systems etc.); and

		
	(f)
	the Facility Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

		
	34
	SET-OFF

A Finance Party may set off any matured obligation due from a Transaction Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Transaction Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

		
	35
	BAIL-IN

Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the parties to a Finance Document, each Party acknowledges and accepts that any liability of any party to a Finance Document under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of: 
		
	35.1
	any Bail-In Action in relation to any such liability, including (without limitation):

		
	(i)
	a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability;

		
	(ii)
	a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

		
	(iii)
	a cancellation of any such liability; and

		
	35.2
	a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.

		
	36
	NOTICES

		
	36.1
	Communications in writing

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.
		
	36.2
	Addresses

The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents are:
		
	(a)
	in the case of the Borrower and the Guarantor, that specified in Schedule 1 (The Parties);

		
	(b)
	in the case of each Lender or any other Obligor, that specified in Schedule 1 (The Parties) or, if it becomes a Party after the date of this Agreement, that notified in writing to the Facility Agent on or before the date on which it becomes a Party;

		
	(c)
	in the case of the Facility Agent, that specified in Schedule 1 (The Parties); and

		
	(d)
	in the case of the Security Agent, that specified in Schedule 1 (The Parties),

or any substitute address, fax number or department or officer as the Party may notify to the Facility Agent (or the Facility Agent may notify to the other Parties, if a change is made by the Facility Agent) by not less than five Business Days’ notice.
		
	36.3
	Delivery

		
	(a)
	Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

		
	(i)
	if by way of fax, when received in legible form; or

		
	(ii)
	if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details provided under Clause 36.2 (Addresses), if addressed to that department or officer.
		
	(b)
	Any communication or document to be made or delivered to a Servicing Party will be effective only when actually received by that Servicing Party and then only if it is expressly marked for the attention of the department or officer of that Servicing Party specified in Schedule 1 (The Parties) (or any substitute department or officer as that Servicing Party shall specify for this purpose).

		
	(c)
	All notices from or to a Transaction Obligor shall be sent through the Facility Agent unless otherwise specified in any Finance Document.

		
	(d)
	Any communication or document made or delivered to the Borrower in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

		
	(e)
	Any communication or document which becomes effective, in accordance with paragraphs (a) to (d) above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

		
	36.4
	Notification of address and fax number 

Promptly upon receipt of notification of an address and fax number or change of address or fax number pursuant to Clause 36.2 (Addresses) or changing its own address or fax number, the Facility Agent shall notify the other Parties.
		
	36.5
	Electronic communication

		
	(a)
	Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means, to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication and if those two Parties:

		
	(i)
	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

		
	(ii)
	notify each other of any change to their address or any other such information supplied by them by not less than five Business Days’ notice.

		
	(b)
	Any electronic communication made between those two Parties will be effective only when actually received in readable form and in the case of any electronic communication made by a Party to the Facility Agent only if it is addressed in such a manner as the Facility Agent shall specify for this purpose.

		
	(c)
	Any electronic communication which becomes effective, in accordance with paragraph (b) above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

		
	36.6
	English language

		
	(a)
	Any notice given under or in connection with any Finance Document must be in English.

		
	(b)
	All other documents provided under or in connection with any Finance Document must be:

		
	(i)
	in English; or

		
	(ii)
	if not in English, and if so required by the Facility Agent, accompanied by a certified English translation prepared by a translator approved by the Facility Agent and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

		
	37
	CALCULATIONS AND CERTIFICATES

		
	37.1
	Accounts

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.
		
	37.2
	Certificates and determinations

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.
		
	37.3
	Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

		
	38
	PARTIAL INVALIDITY

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions under the law of that jurisdiction nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

		
	39
	REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Creditor Party, any right or remedy under a Finance Document shall operate as a waiver of any such right or remedy or constitute an election to affirm any Finance Document.  No election to affirm any Finance Document on the part of a Creditor Party shall be effective unless it is in writing.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law.

		
	40
	SETTLEMENT OR DISCHARGE CONDITIONAL

Any settlement or discharge under any Finance Document between any Finance Party and any Transaction Obligor shall be conditional upon no security or payment to any Finance Party by any Transaction Obligor or any other person being set aside, adjusted or ordered to be repaid, whether under any bankruptcy or insolvency law or otherwise.

		
	41
	IRREVOCABLE PAYMENT

If the Facility Agent considers that an amount paid or discharged by, or on behalf of, a Transaction Obligor or by any other person in purported payment or discharge of an obligation of that Transaction Obligor to a Finance Party under the Finance Documents is capable of being avoided or otherwise set aside on the bankruptcy, liquidation or administration of that Transaction Obligor or otherwise, then that amount shall not be considered to have been unconditionally and irrevocably paid or discharged for the purposes of the Finance Documents.

		
	42
	AMENDMENTS AND WAIVERS

		
	42.1
	Required consents

		
	(a)
	Subject to Clause 42.2 (All Lender matters) and Clause 42.3 (Other exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and, in the case of an amendment, the Transaction Obligors party thereto and any such amendment or waiver will be binding on all Parties.

		
	(b)
	The Facility Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 42 (Amendments and Waivers).

		
	(c)
	Without prejudice to the generality of Clause 29.8 (Rights and discretions), the Facility Agent may engage, pay for and rely on the services of lawyers in determining the consent level required for and effecting any amendment, waiver or consent under this Agreement.

		
	42.2
	All Lender matters

An amendment of or waiver or consent in relation to any term of any Finance Document that has the effect of changing or which relates to:
		
	(a)
	the definition of “Majority Lenders” in Clause 1.1 (Definitions);

		
	(b)
	a postponement to or extension of the date of payment of any amount under the Finance Documents (other than in relation to Clause 7.3 (Voluntary prepayment of Loan) in respect of a prepayment made pursuant to Clause 24.2 (Provision of additional security; prepayment) or Clause 7.4 (Mandatory prepayment on sale or Total Loss);

		
	(c)
	a reduction in the Margin or the amount of any payment of principal, interest, fees or commission payable;

		
	(d)
	a change in currency of payment of any amount under the Finance Documents;

		
	(e)
	an increase in any Commitment or the Total Commitments, an extension of any Availability Period or any requirement that a cancellation of Commitments reduces the Commitments rateably under the Facility;

		
	(f)
	any provision which expressly requires the consent of all the Lenders;

		
	(g)
	this Clause 42 (Amendments and Waivers);

		
	(h)
	any change to Clause 2 (The Facility), Clause 3 (Purpose), Clause 5 (Drawdown), Clause 8 (Interest), paragraph (a) of Clause 24.7 (Provision of valuations), Clause 25 (Accounts and application of Earnings), Clause 27 (Changes to the Lenders), Clause 45 (Governing Law);

		
	(i)
	any release of, or material variation to, any Transaction Security, guarantee, indemnity or subordination arrangement set out in a Finance Document (except in the case of a release of Transaction Security as it relates to the disposal of an asset which is the subject of the Transaction Security and where such disposal is expressly permitted by the Majority Lenders or otherwise under a Finance Document);

		
	(j)
	(other than as expressly permitted by the provisions of any Finance Document) the nature or scope of:

		
	(i)
	the guarantee and indemnity granted under Clause 17 (Guarantee and Indemnity);

		
	(ii)
	the Security Assets; or

		
	(iii)
	the manner in which the proceeds of enforcement of the Transaction Security are distributed,

(except in the case of sub-paragraphs (ii) and (iii) above, insofar as it relates to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document); or
		
	(k)
	the release of the guarantee and indemnity granted under Clause 17 (Guarantee and Indemnity) or of any Transaction Security unless permitted under this Agreement or any other Finance Document or relating to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document,

shall not be made, or given, without the prior consent of all the Lenders. 
		
	42.3
	Other exceptions

		
	(a)
	An amendment or waiver which relates to the rights or obligations of a Servicing Party or the Arranger (each in their capacity as such) may not be effected without the consent of that Servicing Party or, as the case may be, the Arranger.

		
	(b)
	The Borrower and the Facility Agent, the Arranger or the Security Agent, as applicable, may amend or waive a term of a Fee Letter to which they are party.

		
	43
	CONFIDENTIALITY

		
	43.1
	Confidential Information

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 43.2 (Disclosure of Confidential Information) and Clause 43.3 (Disclosure to numbering service providers) and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.
		
	43.2
	Disclosure of Confidential Information

Any Finance Party may disclose:
		
	(a)
	to any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

		
	(b)
	to any person:

		
	(i)
	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as Facility Agent or Security Agent and, in each case, to any of that person’s Affiliates, Representatives and professional advisers;

		
	(ii)
	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction including a Securitization under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Transaction Obligors and to any of that person’s Affiliates, Representatives and professional advisers;

		
	(iii)
	appointed by any Finance Party or by a person to whom sub-paragraph (i) or (ii) of paragraph (b) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under paragraph (b) of Clause 29.15 (Relationship with the other Finance Parties);

		
	(iv)
	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in sub-paragraph (i) or (ii) of paragraph (b) above;

		
	(v)
	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation including any applicable data protection laws;

		
	(vi)
	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitrations, administrative or other investigations, proceedings or disputes;

		
	(vii)
	to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 27.8 (Security over Lenders’ rights);

		
	(viii)
	who is a Party, a member of the Group or any related entity of a Transaction Obligor;

		
	(ix)
	as a result of the registration of any Finance Document as contemplated by any Finance Document or any legal opinion obtained in connection with any Finance Document; or

		
	(x)
	with the consent of the Borrower;

in each case, such Confidential Information as that Finance Party shall consider appropriate if:
		
	(A)
	in relation to sub-paragraphs (i), (ii) and (iii) of paragraph (b) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

		
	(B)
	in relation to sub-paragraph (iv) of paragraph (b) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

		
	(C)
	in relation to sub-paragraphs (v) (vi) and (vii) of paragraph (b) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances; 

		
	(c)
	to any person appointed by that Finance Party or by a person to whom sub-paragraph (i) or (ii) of paragraph (b) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered in to a confidentiality agreement in such form as may be agreed between the Borrower and the relevant Finance Party; and

		
	(d)
	to any Rating Agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such Rating Agency to carry out its normal rating activities in relation to the Finance Documents and/or the Transaction Obligors if the Rating Agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

		
	43.3
	Disclosure to numbering service providers

		
	(a)
	Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information:

		
	(i)
	names of Transaction Obligors;

		
	(ii)
	country of domicile of Transaction Obligors;

		
	(iii)
	place of incorporation of Transaction Obligors;

		
	(iv)
	date of this Agreement;

		
	(v)
	Clause 45 (Governing Law);

		
	(vi)
	the names of the Facility Agent and the Arranger;

		
	(vii)
	date of each amendment and restatement of this Agreement;

		
	(viii)
	amount of Total Commitments;

		
	(ix)
	currency of the Facility;

		
	(x)
	type of Facility;

		
	(xi)
	ranking of Facility;

		
	(xii)
	Maturity Date for Facility;

		
	(xiii)
	changes to any of the information previously supplied pursuant to sub-paragraphs (i) to (xii) above; and

		
	(xiv)
	such other information agreed between such Finance Party and the Borrower,

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.
		
	(b)
	The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Transaction Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

		
	(c)
	Each Obligor represents, on behalf of itself and the other Transaction Obligors, that none of the information set out in sub-paragraphs (i) to (xiv) of paragraph (a) above is, nor will at any time be, unpublished price-sensitive information.

		
	(d)
	The Facility Agent shall notify the Guarantor and the other Finance Parties of:

		
	(i)
	the name of any numbering service provider appointed by the Facility Agent in respect of this Agreement, the Facility and/or one or more Transaction Obligors; and 

		
	(ii)
	the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or one or more Transaction Obligors by such numbering service provider.

		
	43.4
	Entire agreement

This Clause 43 (Confidentiality) constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.
		
	43.5
	Inside information

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.
		
	43.6
	Notification of disclosure

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Borrower:
		
	(a)
	of the circumstances of any disclosure of Confidential Information made pursuant to sub-paragraph (v) of paragraph (b) of Clause 43.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

		
	(b)
	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 43 (Confidentiality).

		
	43.7
	Continuing obligations

The obligations in this Clause 43 (Confidentiality) are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of 12 months from the earlier of:
		
	(a)
	the date on which all amounts payable by the Obligors under or in connection with this Agreement have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and 

		
	(b)
	the date on which such Finance Party otherwise ceases to be a Finance Party.

		
	44
	COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

SECTION 12 
 
GOVERNING LAW AND ENFORCEMENT

		
	45
	GOVERNING LAW

THIS AGREEMENT AND THE OTHER FINANCE DOCUMENTS (EXCEPT AS OTHERWISE PROVIDED IN A FINANCE DOCUMENT) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAW PRINCIPLES.

		
	46
	ENFORCEMENT

		
	46.1
	Jurisdiction 

		
	(a)
	Each of the Obligors hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York County, and any appellate court thereof, in any action or proceeding arising out of or relating to this Agreement or any of the other Finance Documents to which such Obligor is a party or for recognition or enforcement of any judgment, and each of the Parties hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State Court or, to the extent permitted by law, in such Federal court.  Each of the Parties agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  

		
	(b)
	This Clause 46.1 (Jurisdiction) is for the benefit of the Creditor Parties only.  As a result, no Creditor Party shall be prevented from taking proceedings relating to any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) in any other courts with jurisdiction.  To the extent allowed by law, the Creditor Parties may take concurrent proceedings in any number of jurisdictions.

		
	46.2
	Service of process

		
	(a)
	Each of the Obligors hereby agrees to appoint Seward & Kissel LLP, attention Michael Timpone, Esq., with offices currently located at One Battery Park Plaza, New York, New York 10004, as its designated agent for service of process for any action or proceeding arising out of or relating to this Agreement or any other Finance Document.  Each of the Obligors also irrevocably consents to the service of any and all process in any such action or proceeding by the mailing of copies of such process to its address specified in Clause 36.2 (Addresses).  Each of the Obligors also agrees that service of process may be made on it by any other method of service provided for under the applicable laws in effect in the State of New York.

		
	(b)
	If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, the Borrower (on behalf of all the Obligors) must immediately (and in any event within 10 days of such event taking place) appoint another agent on terms acceptable to the Facility Agent.  Failing this, the Facility Agent may appoint another agent for this purpose.

		
	46.3
	Venue; immunity

Each of the Obligors hereby irrevocably and unconditionally waives to the fullest extent it may legally and effectively do so:
		
	(a)
	any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Finance Document to which it is a party in any New York State or Federal court and the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court; and

		
	(b)
	any immunity from suit, the jurisdiction of any court in which judicial proceedings may at any time be commenced with respect to this Agreement or any other Finance Document or from any legal process with respect to itself or its property (including without limitation attachment prior to judgment, attachment in aid of execution of judgment, set-off, execution of a judgment or any other legal process), and to the extent that in any such jurisdiction there may be attributed to such person such an immunity (whether or not claimed), such person hereby irrevocably agrees not to claim such immunity.

		
	47
	WAIVER OF JURY TRIAL

		
	47.1
	Waiver

EACH OF THE PARTIES MUTUALLY AND IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

		
	48
	PATRIOT ACT NOTICE

		
	48.1
	PATRIOT Act Notice

Each of the Creditor Parties hereby notifies the Obligors that pursuant to the requirements of the PATRIOT Act and the policies and practices of the Creditor Parties, each of the Creditor Parties is required to obtain, verify and record certain information and documentation that identifies each Obligor, which information includes the name and address of each Obligor and such other information that will allow each of the Creditor Parties to identify each Obligor in accordance with the PATRIOT Act.

EXECUTION PAGES
WHEREFORE, the Parties have caused this Loan Agreement to be executed as of the date first above written.

	
		
	SCORPIO TANKERS INC., as Borrower 

By: _/s/ Luca Forgione____________________
Name: Luca Forgione
Title: General Counsel 

	DVB BANK SE, as Arranger

By: __/s/ Theresa M. Adamski_______________
Name: Theresa M. Adamski
Title: Attorney-in-Fact

	STI WEMBLEY SHIPPING COMPANY LIMITED,
as Guarantor 

By: _/s/ Francesca Gianfranchi_______________
Name: Francesca Gianfranchi
Title: Attorney-in-Fact

	DVB BANK SE, as Underwriter 

By: __/s/ Theresa M. Adamski_______________
Name: Theresa M. Adamski
Title: Attorney-in-Fact

	STI MILWAUKEE SHIPPING COMPANY LIMITED,
as Guarantor 

By: _/s/ Francesca Gianfranchi_______________
Name: Francesca Gianfranchi
Title: Attorney-in-Fact

	DVB BANK SE, AMSTERDAM BRANCH, as Original Lender

By: __/s/ Theresa M. Adamski_______________
Name: Theresa M. Adamski
Title: Attorney-in-Fact

	STI SENECA SHIPPING COMPANY LIMITED,
as Guarantor 

By: _/s/ Francesca Gianfranchi_______________
Name: Francesca Gianfranchi
Title: Attorney-in-Fact

	DVB BANK AMERICA N.V., as Facility Agent

By: __/s/ Theresa M. Adamski_______________
Name: Theresa M. Adamski
Title: Attorney-in-Fact

	STI ALEXIS SHIPPING COMPANY LIMITED,
as Guarantor 

By: _/s/ Francesca Gianfranchi_______________
Name: Francesca Gianfranchi
Title: Attorney-in-Fact

	DVB BANK AMERICA N.V., as Security Agent

By: __/s/ Theresa M. Adamski_______________
Name: Theresa M. Adamski
Title: Attorney-in-Fact

	 
	 

SCHEDULE 1  
 
THE PARTIES

PART A 
 
THE OBLIGORS
	
				
	Name of Borrower
	Place of Incorporation
	Registration number (or equivalent, if any)
	Address for Communication

	Scorpio Tankers Inc.
	The Republic of The Marshall Islands
	36141
	Scorpio Tankers Inc. 
Le Millenium, 
9 Boulevard Charles III
98000 Monaco 
Attention: Mr. Luca Forgione – Legal Department 
Facsimile: +3 77 97 77 83 46
Email: legal@scorpiogroup.net

	 
	 
	 
	 

	 
	

	 
	 

	Name of Guarantor
	Place of Incorporation
	Registration number (or equivalent, if any)
	Address for Communication

	STI Wembley Shipping Company Limited
	The Republic of The Marshall Islands
	60722
	c/o Scorpio Tankers Inc. 
Le Millenium, 
9 Boulevard Charles III
98000 Monaco 
Attention: Mr. Luca Forgione – Legal Department 
Facsimile: +3 77 97 77 83 46
Email: legal@scorpiogroup.net

	STI Milwaukee Shipping Company Limited
	The Republic of The Marshall Islands
	65151
	c/o Scorpio Tankers Inc. 
Le Millenium, 
9 Boulevard Charles III
98000 Monaco 
Attention: Mr. Luca Forgione – Legal Department 
Facsimile: +3 77 97 77 83 46
Email: legal@scorpiogroup.net

	STI Seneca Shipping Company Limited
	The Republic of The Marshall Islands
	65154
	c/o Scorpio Tankers Inc. 
Le Millenium, 
9 Boulevard Charles III
98000 Monaco 
Attention: Mr. Luca Forgione – Legal Department 
Facsimile: +3 77 97 77 83 46
Email: legal@scorpiogroup.net

	STI Alexis Shipping Company Limited
	The Republic of The Marshall Islands
	71771
	c/o Scorpio Tankers Inc. 
Le Millenium, 
9 Boulevard Charles III
98000 Monaco 
Attention: Mr. Luca Forgione – Legal Department 
Facsimile: +3 77 97 77 83 46
Email: legal@scorpiogroup.net

PART B 
 
THE ORIGINAL LENDERS
	
			
	Name of Original Lender
	Commitment
	Address for Communication

	DVB Bank SE, Amsterdam Branch
	$90,000,000
	Tower F, 6th Floor 
Schiphol Boulevard 255
118 BH Schiphol, The Netherlands

Attention: Ingmar Loges
Facsimile: +31 88 399 8112
Email: Ingmar.Loges@dvbbank.com

With a copy to: 

DVB Transport (US) LLC 
Representative Office of DVB Bank SE
609 Fifth Avenue, 5th Floor 
New York, New York 10017 

Attention: Jurek Bochner
Facsimile: + (212) 588 0424
Email: Jurek.bochner@dvbbank.com

	 
	 
	 

37    

PART C 
 
THE SERVICING PARTIES
	
		
	Name of Facility Agent
	Address for Communication

	DVB Bank America N.V.
	DVB Bank America N.V. 
Gaitoweg 35
Willemstad, Curacao

Attention: Managing Director 
and Loan Administration Department 

Facsimile: +599-9-465-2366
Email: TLS.Curacao@dvbbank.com

With a copy to: 

DVB Transport (US) LLC 
Representative Office of DVB Bank SE
609 Fifth Avenue, 5th Floor 
New York, New York 10017 

Attention: Jurek Bochner
Facsimile: +1 (212) 588 0424
Email: Jurek.bochner@dvbbank.com

Attention: TM New York
Facsimile: +1 (212) 588 0424
Email: TM.NewYork@dvbbank.com

38    

	
		
	Name of Security Agent
	Address for Communication

	DVB Bank America N.V.
	

DVB Bank America N.V. 
Gaitoweg 35
Willemstad, Curacao

Attention: Managing Director 
and Loan Administration Department 

Facsimile: +599-9-465-2366
Email: TLS.Curacao@dvbbank.com

With a copy to: 

DVB Transport (US) LLC 
Representative Office of DVB Bank SE
609 Fifth Avenue, 5th Floor 
New York, New York 10017 

Attention: Jurek Bochner
Facsimile: +1 (212) 588 0424
Email: Jurek.bochner@dvbbank.com

Attention: TM New York
Facsimile: +1 (212) 588 0424
Email: TM.NewYork@dvbbank.com

39    

	
		
	Name of Arranger
	Address for Communication

	DVB Bank SE
	DVB Bank SE
Legal Department
Platz der Republik 6
60325 Frankfurt am Main
Germany

With a copy to: 

DVB Transport (US) LLC 
Representative Office of DVB Bank SE
609 Fifth Avenue, 5th Floor 
New York, New York 10017 

Attention: Jurek Bochner
Facsimile: +1 (212) 588 0424
Email: Jurek.bochner@dvbbank.com

Attention: TM New York
Facsimile: +1 (212) 588 0424
Email: TM.NewYork@dvbbank.com

	Name of Underwriter
	Address for Communication

	DVB Bank SE
	DVB Bank SE
Legal Department
Platz der Republik 6
60325 Frankfurt am Main
Germany

With a copy to: 

DVB Transport (US) LLC 
Representative Office of DVB Bank SE
609 Fifth Avenue, 5th Floor 
New York, New York 10017 

Attention: Jurek Bochner
Facsimile: +1 (212) 588 0424
Email: Jurek.bochner@dvbbank.com

Attention: TM New York
Facsimile: +1 (212) 588 0424
Email: TM.NewYork@dvbbank.com

40    

	
		
	 
	 

SCHEDULE 2  
 
CONDITIONS PRECEDENT

PART A 
 
INITIAL CONDITIONS PRECEDENT
		
	1
	Obligors

		
	1.1
	A copy of the constitutional documents of each Obligor.

		
	1.2
	A copy of a resolution of the board of directors  (or equivalent governing body) of each Obligor:

		
	(a)
	approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a party;

		
	(b)
	authorizing a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and

		
	(c)
	authorizing a specified person or persons, on its behalf, to sign and/or dispatch all documents and notices (including, if relevant, a Drawdown Request and each Selection Notice) to be signed and/or dispatched by it under, or in connection with, the Finance Documents to which it is a party.

		
	1.3
	A copy of a resolution signed by the Borrower as the holder of all of the issued shares in each Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which each Guarantor is a party.

		
	1.4
	An original of the power of attorney of any Obligor authorizing a specified person or persons to execute the Finance Documents to which it is a party.

		
	1.5
	A specimen of the signature of each person signing any Finance Document.

		
	1.6
	A certificate of an authorized signatory of each Obligor confirming that borrowing or guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on that Obligor to be exceeded.

		
	1.7
	A certificate of an authorized signatory of the relevant Obligor certifying that each copy document relating to it specified in this Part A of Schedule 2 (Conditions Precedent) is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

		
	2
	Finance Documents 

		
	2.1
	If applicable, a duly executed original of the Subordination Agreement and copies of each Subordinated Finance Document in respect of any Subordinated Liabilities.

		
	2.2
	A duly executed original of any Finance Document not otherwise referred to in this Schedule 2 (Conditions Precedent).

		
	2.3
	A duly executed original of any other document required to be delivered by each Finance Document if not otherwise referred to in this Schedule 2 (Conditions Precedent). 

		
	3
	Other documents and evidence

		
	3.1
	A valuation of the relevant Vessel, addressed to the Facility Agent on behalf of the Finance Parties, dated not earlier than two weeks before the Drawdown Date unless otherwise agreed by the Facility Agent from an Approved Appraiser and showing the Market Value for that Vessel.

		
	3.2
	A copy of any other Authorization or other document, opinion or assurance which the Facility Agent considers to be necessary or desirable (if it has notified the Borrower accordingly) in connection with the entry into and performance of the transactions contemplated by any Transaction Document or for the validity and enforceability of any Transaction Document.

		
	3.3
	The Original Financial Statements of the Borrower.

		
	3.4
	A copy of any mandates or other documents required in connection with the opening or operation of the Accounts.

		
	3.5
	Such evidence as the Facility Agent may require for the Finance Parties to be able to satisfy each of their “know your customer” or similar identification procedures in relation to the transactions contemplated by the Finance Documents.

PART B 
 
CONDITIONS PRECEDENT TO EACH ADVANCE
		
	1
	Obligors

A certificate of an authorized signatory of the relevant Obligor certifying that each corporate and copy document provided by it under Part A of Schedule 2 (Conditions Precedent) remains correct, complete and in full force and effect as at the Drawdown Date.
		
	2
	Borrower

A certificate of an authorized signatory of each of the Borrower and the relevant Guarantor certifying that each copy document which it is required to provide under this Part B of Schedule 2 (Conditions Precedent) is correct, complete and in full force and effect as at the Drawdown Date.
		
	3
	Existing Indebtedness 

		
	3.1
	Evidence that all sums then due to DVB Bank America N.V., as Lender in respect of the Existing Indebtedness will have been paid in full immediately upon the making of the Advance.

		
	4
	Finance Documents 

		
	4.1
	A duly executed copy of each Security Document if not previously delivered pursuant to Part A of this Schedule 2 (Conditions Precedent). 

		
	4.2
	A duly executed copy of any other document required to be delivered by each Finance Document if not previously provided pursuant to Part A of this Schedule 2 (Conditions Precedent). 

		
	5
	Vessel and other security

		
	5.1
	Documentary evidence that the Mortgage in respect of the relevant Vessel has been duly recorded as a valid first preferred ship mortgage in accordance with the laws of the jurisdiction of its Approved Flag. 

		
	5.2
	Documentary evidence that the relevant Vessel:

		
	(a)
	maintains the Approved Classification for that Vessel with the Approved Classification Society free of all overdue recommendations and conditions of the Approved Classification Society; and

		
	(b)
	is insured in accordance with the provisions of this Agreement and all requirements in this Agreement in respect of insurances have been complied with.

		
	5.3
	Copies of the relevant Vessel’s Safety Management Certificate (together with any other details of the applicable Safety Management System which the Facility Agent requires) and of any other documents required under the ISM Code and the ISPS Code in relation to the Vessel including without limitation an ISSC. 

		
	5.4
	Copies of the relevant Vessel’s Commercial Management Agreement and Technical Management Agreement, both on terms acceptable to the Facility Agent acting with the authorization of all of the Lenders, together with:

		
	(a)
	a Manager’s Undertaking for each of the Approved Technical Manager and the Approved Commercial Manager; and

		
	(b)
	copies of the Approved Technical Manager’s Document of Compliance.

		
	5.5
	A copy of the Approved Pooling Arrangement, if applicable. 

		
	5.6
	Evidence that the Security Documents have been duly registered or recorded in such jurisdictions as the Facility Agent may require and that all notices of assignment required under or in connection with the relevant Security Documents have been served.

		
	5.7
	A duly executed copy of a Letter of Undertaking from the Approved Insurance Brokers in a form acceptable to the Facility Agent.

		
	5.8
	A duly executed copy of a Letter of Undertaking from any protection and indemnity club or war risks association through or with whom any obligatory insurances are placed or effected in a form acceptable to the Facility Agent.

		
	5.9
	A duly executed copy of a Letter of Undertaking from the Approved Classification Society in a form acceptable to the Facility Agent.

		
	5.10
	Confirmation from the Facility Agent’s insurance team that it is satisfied that the Vessel is insured in accordance with the provisions of this Agreement.

		
	5.11
	In respect of the Vessel, a class certificate together with maintenance certificate. 

		
	6
	Legal opinions

		
	(a)
	Executed favorable legal opinions by lawyers appointed by each Transaction Obligor on such matters concerning the laws of such relevant jurisdictions as the Facility Agent may require in agreed form. 

		
	(b)
	Executed favorable legal opinions of the legal advisers to the Arranger, the Facility Agent and the Security Agent in New York, in the jurisdiction of the Approved Flag of the relevant Vessel, and such other relevant jurisdictions as the Facility Agent may require.

		
	7
	Other documents and evidence

		
	7.1
	Evidence that any process agent referred to in Clause 46.2 (Service of process), if not an Obligor, has accepted its appointment.

		
	7.2
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 11 (Fees) and Clause 16 (Costs and Expenses), including legal fees, have been paid.

SCHEDULE 3  
 
REQUESTS

PART A 
 
DRAWDOWN REQUEST

From:    Scorpio Tankers Inc. 
To:    DVB Bank America N.V., as Facility Agent 
Gaitoweg 35
Willemstad, Curacao 
Attention: Managing Director and Loan Administration Department
-and-
DVB Bank SE 
c/o DVB Transport (US) LLC 
609 Fifth Avenue, 5th Floor
New York, New York 10017 
Attention: Jurek Bochner 
Dated:     [l]
Dear Sirs
Scorpio Tankers Inc. – $90,000,000 Facility Agreement dated [l] (the “Agreement”)
		
	1
	We refer to the Agreement.  This is a Drawdown Request.  Terms defined in the Agreement have the same meaning in this Drawdown Request unless given a different meaning in this Drawdown Request.

		
	2
	We wish to borrow the Advance under Tranche [A][B][C][D] on the following terms:

Proposed Drawdown Date:    [l] (or, if that is not a Business Day, the     next Business Day)
Amount:    [l] or, if less, the Available Facility
Interest Period:    [l]
		
	3
	We confirm that each condition specified in Clause 4.1 (Conditions precedent to delivery of a Drawdown Request) and paragraph (a) of Clause 4.2 (Conditions precedent to each Advance) is satisfied on the date of this Drawdown Request.

		
	4
	The proceeds of this Advance should be credited to the following account[s]:

amount: [l]
account number: [l]
name and SWIFT of account bank: [l]
name and SWIFT of U.S. correspondent bank: [l]

[amount: [l]
account number: [l]
name and SWIFT of account bank: [l]
name and SWIFT of U.S. correspondent bank: [l]]

		
	5
	This Drawdown Request is irrevocable.

Yours faithfully

________________________
[l]
authorized signatory for 
Scorpio Tankers Inc. 

PART B 
 
SELECTION NOTICE

From:    Scorpio Tankers Inc. 
To:    DVB Bank America N.V., as Facility Agent 
Gaitoweg 35
Willemstad, Curacao 
Attention: Managing Director and Loan Administration Department
-and-
DVB Bank SE 
c/o DVB Transport (US) LLC 
609 Fifth Avenue, 5th Floor
New York, New York 10017 
Attention: Jurek Bochner 

Dated:    [l]

Dear Sirs
Scorpio Tankers Inc. - $90,000,000 Facility Agreement dated [l] (the “Agreement”)
We refer to the Agreement.  This is a Selection Notice.  Terms defined in the Agreement have the same meaning in this Selection Notice unless given a different meaning in this Selection Notice.
		
	2
	We request that, subject to paragraph (g) of Clause 9.1 (Selection of Interest Periods) of the Agreement, the next Interest Period for the Loan be [l].

		
	3
	This Selection Notice is irrevocable. 

Yours faithfully

_________________________ 
[l] 
authorized signatory for
Scorpio Tankers Inc. 

SCHEDULE 4  
 
FORM OF TRANSFER CERTIFICATE

To:    DVB Bank America N.V. as Facility Agent 
From:    [The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

Dated:     [l]
Dear Sirs
Scorpio Tankers Inc. – $90,000,000 Facility Agreement dated [l] (the “Agreement”)
		
	1
	We refer to the Agreement.  This is a Transfer Certificate.  Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

		
	2
	We refer to Clause 27.5 (Procedure for transfer) of the Agreement:

		
	(a)
	The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all of the Existing Lender’s rights and obligations under the Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment and participation in the Loan under the Agreement as specified in the Schedule in accordance with Clause 27.5 (Procedure for transfer) of the Agreement.

		
	(b)
	The proposed Transfer Date is [l].

		
	(c)
	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 36.2 (Addresses) of the Agreement are set out in the Schedule.

		
	3
	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 27.4 (Limitation of responsibility of Existing Lenders) of the Agreement. 

		
	4
	This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate. 

		
	5
	This Transfer Certificate and any non-contractual obligations arising out of or in connection with it are governed by New York law. 

		
	6
	This Transfer Certificate has been entered into on the date stated at the beginning of this Transfer Certificate.

		
	7
	The New Lender confirms that, immediately following the effective date of this Transfer Certificate, it will be a FATCA Exempt Party.

Note: The execution of this Transfer Certificate may not transfer a proportionate share of the Existing Lender’s interest in the Transaction Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

THE SCHEDULE 
 
Commitment/rights and obligations to be transferred
[insert relevant details]
[Facility Office address, fax number and attention details
for notices and account details for payments.]

[Existing Lender]    [New Lender]

By: _________________    By: _________________
Name:                            Name: 
Title:                             Title:

This Transfer Certificate is accepted by the Facility Agent [and the Security Agent] and the Transfer Date is confirmed as [l].
[Facility Agent]

By: _______________________
Name:
Title:

SCHEDULE 5  
 
FORM OF ASSIGNMENT AGREEMENT

To:    DVB Bank America N.V. as Facility Agent and [l] as Borrower, for and on behalf of each Obligor
		
	From:
	[the Existing Lender] (the “Existing Lender”) and [the New Lender] (the “New Lender”)

Dated: [l]
Dear Sirs
Scorpio Tankers Inc.  - $90,000,000 Facility Agreement dated [l] (the “Agreement”)
		
	1
	We refer to the Agreement.  This is an Assignment Agreement.  Terms defined in the Agreement have the same meaning in this Assignment Agreement unless given a different meaning in this Assignment Agreement.

		
	2
	We refer to Clause 27.6 (Procedure for assignment):

		
	(a)
	The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Agreement, the other Finance Documents and in respect of the Transaction Security which correspond to that portion of the Existing Lender’s Commitment and participations in the Loan under the Agreement as specified in the Schedule.

		
	(b)
	The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitments and participations in the Loan under the Agreement specified in the Schedule.

		
	(c)
	The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph (b) above.

		
	3
	The proposed Transfer Date is [l].

		
	4
	On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.

		
	5
	The Facility Office and address, fax, number and attention details for notices of the New Lender for the purposes of Clause 36.2 (Addresses) are set out in the Schedule.

		
	6
	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 27.4 (Limitation of responsibility of Existing Lenders).

		
	7
	This Assignment Agreement acts as notice to the Facility Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 27.7 (Copy of Transfer Certificate or Assignment Agreement to Borrower), to the Borrower (on behalf of each Transaction Obligor) of the assignment referred to in this Assignment Agreement.

		
	8
	This Assignment Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Assignment Agreement.

		
	9
	This Assignment Agreement and any non-contractual obligations arising out of or in connection with it are governed by New York law.

		
	10
	This Assignment Agreement has been entered into on the date stated at the beginning of this Assignment Agreement.

Note: The execution of this Assignment Agreement may not transfer a proportionate share of the Existing Lender’s interest in the Transaction Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

THE SCHEDULE
Commitment rights and obligations to be transferred by assignment, release and accession
[insert relevant details]
[Facility office address, fax number and attention details for notices 
and account details for payments]
[Existing Lender]    [New Lender]

By: _________________    By: _________________
Name:                            Name: 
Title:                             Title:
This Assignment Agreement is accepted by the Facility Agent [and the Security Agent] and the Transfer Date is confirmed as [l].
Signature of this Assignment Agreement by the Facility Agent [and the Security Agent] constitutes confirmation by the Facility Agent of receipt of notice of the assignment referred to herein, which notice the Facility Agent receives on behalf of each Finance Party.
[Facility Agent]

By: _______________________
Name:
Title:

SCHEDULE 6  
 
FORM OF COMPLIANCE CERTIFICATE

To:    DVB Bank America N.V., as Facility Agent 
Gaitoweg 35
Willemstad, Curacao 
Attention: Managing Director and Loan Administration Department
-and-
DVB Bank SE 
c/o DVB Transport (US) LLC 
609 Fifth Avenue, 5th Floor
New York, New York 10017 
Attention: Jurek Bochner 

From:    Scorpio Tankers Inc. 
Dated:     [l]

Dear Sirs
Scorpio Tankers Inc. – $90,000,000 Facility Agreement dated [l] (the “Agreement”)
		
	1
	We refer to the Agreement.  This is a Compliance Certificate.  Terms defined in the Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

		
	2
	I am an authorized signatory of the Borrower and in such capacity I hereby certify to the Facility Agent that: 

Attached to this certificate is [a true, correct and complete copy of the annual report on Form 20-F (or any successor form) containing the audited financial and other information required to be contained therein for [l] of the Borrower] [the unaudited consolidated financial statement of the Borrower for that quarter of [l] on Form 6-K (or any successor form)]
		
	3
	We confirm that:  [Insert details of covenants to be certified] and that the computations of such financial covenants are attached to this Compliance Certificate. 

		
	4
	The representations and warranties stated in Clause 18 (Representations) of the Agreement (updated mutatis mutandis) are true and correct as of the date hereof. 

		
	5
	[We confirm that no Default is continuing.]*

Yours faithfully,

______________________
[l]
authorized signatory for
Scorpio Tankers Inc. 

________________________
for and on behalf of
[name of Auditors of the Borrower]

*If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it 

SCHEDULE 7  
 
TIMETABLES

	
		
	Delivery of a duly completed Drawdown Request (Clause 5.1 (Delivery of a Drawdown Request)) or a Selection Notice (Clause 9.1 (Selection of Interest Periods))
	Five Business Days before the intended Drawdown Date (Clause 5.1 (Delivery of a Drawdown Request)) or the expiry of the preceding Interest Period (Clause 9.1 (Selection of Interest Periods))

	Facility Agent notifies the Lenders of the Advance in accordance with Clause 5.4 (Lenders’ participation)
	Three Business Days before the intended Drawdown Date.

	LIBOR is fixed
	Quotation Day as of 11:00 am New York time

	 
	 

SCHEDULE 8  
 
CLASSIFICATION SOCIETY UNDERTAKING

41    

PART A 
 
LETTER TO APPROVED CLASSIFICATION SOCIETY

To:    [Insert name of classification society]
Date:  [l]

Dear Sirs
Name of vessel: m.v. [“STI WEMBLEY”][“STI MILWAUKEE”][“STI SENECA”][“STI ALEXIS”] (the “Vessel”)
Name of mortgagee: DVB BANK AMERICA N.V. (the “Mortgagee”)
We [l] (the “Owner”) as owner of the Vessel (which has been entered into and classed by you) give notice that we have authorized the Mortgagee to access all and any information we are contractually or otherwise  entitled to receive from you in relation to the Vessel.  
We hereby authorize and instruct you to provide the Mortgagee with such information as it may request from you.
Furthermore, we instruct you to notify the Mortgagee by email (to techcom@dvbbank.com) on a best efforts basis as soon as reasonably practicable  following  the imposition of a condition or the issue of a recommendation in relation to the Vessel or if class is withdrawn in relation to the Vessel.
This letter and any non-contractual obligations arising out of or in connection with it are governed by New York law.

________________________
For and on behalf of
[Insert name of Owner]

42    

PART B 
 
UNDERTAKING FROM APPROVED CLASSIFICATION SOCIETY

To:    [name of Owner]

And

DVB Bank America N.V., as Facility Agent 
Gaitoweg 35
Willemstad, Curacao 
Attention: Managing Director and Loan Administration Department
-and-
DVB Bank SE 
c/o DVB Transport (US) LLC 
609 Fifth Avenue, 5th Floor
New York, New York 10017 
Attention: Jurek Bochner 

Dated: [l]
Dear Sirs
Name of vessel: m.v. “[l]” (the “Vessel”)
Name of Owner: [l] (the “Owner”)
We [name of classification society], acknowledge receipt of a letter dated [l] sent to us by the Owner regarding the Vessel and consent to the instructions contained in such letter. 
Yours faithfully

________________________
For and on behalf of
[name of classification society]

43Exhibit

Execution Version

Exhibit 4.29
Date 26 January 2017
SCORPIO TANKERS INC.
as Borrower
and
THE BANKS AND FINANCIAL INSTITUTIONS 
listed in Schedule 1
as Lenders
and
HSH NORDBANK AG 
as Bookrunner
and
HSH NORDBANK AG
as Mandated Lead Arranger
and
HSH NORDBANK AG 
as Agent and as Security Trustee

LOAN AGREEMENT
relating to 
a loan facility of up to $34,000,000 to refinance existing indebtedness  
on two combined product tankers (m.v.s "STI ONYX" and "STI DUCHESSA") 
and/or for general corporate purposes

Index
Clause    
	
		
	1
	Interpretation

	2
	Facility

	3
	Position of the Lenders

	4
	Drawdown

	5
	Interest

	6
	Interest Periods

	7
	Default Interest

	8
	Repayment, Prepayment and Reborrowing

	9
	Conditions Precedent

	10
	Representations and Warranties

	11
	General Undertakings

	12
	Corporate and Financial Undertakings

	13
	Insurance

	14
	Ship Covenants

	15
	Security Cover

	16
	Payments and Calculations

	17
	Application of Receipts

	18
	Application of Earnings

	19
	Events of Default

	20
	Fees and Expenses

	21
	Indemnities

	22
	No Set-Off or Tax Deduction

	23
	Illegality, etc.

	24
	Increased Costs

	25
	Set-Off

	26
	Transfers and Changes in Lending Offices

	27
	Variations and Waivers

	28
	Bail in

	29
	Notices

	30
	Supplemental

	31
	Law and Jurisdiction

Schedules
	
	
	Schedule 1 Lenders and Commitments

	Schedule 2 Drawdown Notice

	Schedule 3 Condition Precedent Documents

	Part A

	Part B

	Schedule 4 Transfer Certificate

	Schedule 5 List of Approved Brokers

	Schedule 6 Form of Compliance Certificate

	Schedule 7 The Ships

	Schedule 8 Power of Attorney

59295567v5

Execution
	
	
	Execution Pages

59295567v5

THIS AGREEMENT is made on  January 2017
BETWEEN
		
	(1)
	SCORPIO TANKERS INC., a corporation incorporated in the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands (the "Borrower");

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

		
	(3)
	HSH NORDBANK AG as Bookrunner;

		
	(4)
	HSH NORDBANK AG as Mandated Lead Arranger;

		
	(5)
	HSH NORDBANK AG as Agent; and

		
	(6)
	HSH NORDBANK AG, as Security Trustee.

BACKGROUND
The Lenders have agreed to make available to the Borrower, subject to the terms of this Agreement, a term loan facility in an amount of up to $34,000,000 for the purpose of refinancing the Existing Indebtedness and/or for general corporate purposes.
IT IS AGREED as follows:

59295567v5

		
	1
	INTERPRETATION

		
	1.1
	Definitions

Subject to Clause 1.5, in this Agreement:
"Account Security Deed" means, in respect of each Earnings Account, a deed creating security in respect of that Earnings Account in the Agreed Form.
"Account Bank" means HSH Nordbank AG, acting through its branch at Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany, ABN AMRO Bank N.V. or any other bank or financial institution which at any time, with the Agent's prior written consent (acting on the instructions of all the Lenders) holds an Earnings Account.
"Accounting Information" means the annual audited consolidated accounts of the Borrower and the annual audited individual accounts of the Borrower or the quarterly unaudited consolidated accounts of the Borrower and the quarterly unaudited individual accounts of the Borrower, in each case, delivered to the Agent in accordance with Clause 11.6.
"Accounting Period" means each consecutive quarterly period during the Security Period ending on 31 March, 30 June, 30 September and 31 December of each financial year of the Borrower.
"Advance" means Advance A and Advance B.
"Advance A" means the principal amount of the borrowing of a portion of the Total Commitments to be made available to the Borrower to refinance the Existing Indebtedness relating to Ship A pursuant to the Existing Facility Agreement and/or for general corporate purposes. 
"Advance B" means the principal amount of the borrowing of a portion of the Total Commitments to be made available to the Borrower to refinance the Existing Indebtedness relating to Ship B pursuant to the Existing Facility Agreement and/or for general corporate purposes. 
"Affected Lender" has the meaning given in Clause 5.7.
"Affiliate" means, as to any person, any other person that, directly or indirectly, controls, is controlled by or is under common control with such person or is a director or officer of such person, and for purposes of this definition, the term "control" (including the terms "controlling", "controlled by" and "under common control with") of a person means the possession, direct or indirect, of the power to vote 20% or more of the Voting Stock of such person or to direct or cause direction of the management and policies of such person, whether through the ownership of Voting Stock, by contract or otherwise.
"Agency and Trust Deed" means the agency and trust deed dated the same date as this Agreement and made between the same parties.
"Agent" means HSH Nordbank AG, acting in its capacity as agent for the Lenders, the Bookrunner and the Mandated Lead Arranger through its office at Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany includes its successor appointed under clause 5 of the Agency and Trust Deed and any transferee or assign.
"Agreed Form" means in relation to any document, that document in the form approved in writing by the Agent (acting on the instructions of all of the Lenders), or as otherwise approved in accordance with any other approval procedure specified in any relevant provision of any Finance Document.

2    59295567v5

"Approved Broker" means any of the companies listed in Schedule 5 (or any Affiliate of such person through which valuations are commonly issued) or such other company proposed by the Borrower which the Agent may (acting on the instructions of all the Lenders) approve in writing from time to time to act as an "Approved Broker" under this Agreement.
"Approved Classification Society" means, in relation to a Ship, ABS or any other generally recognised first class classification society that is a member of IACS (other than the China Classification Society and the Russian Maritime Registry of Shipping) that the Agent may (acting on the authorisation of all the Lenders), approve in writing from time to time as the "Approved Classification Society" of that Ship for the purposes of this Agreement.
"Approved Commercial Manager" means, in relation to a Ship, Scorpio Commercial Management s.a.m. of 9, Boulevard Charles III, Monte Carlo, the Principality of Monaco (or any Affiliate or subsidiary of Scorpio Commercial Management s.a.m), Scorpio Ship Management s.a.m of 9, Boulevard Charles III, Monte Carlo, the Principality of Monaco (or any Affiliate or subsidiary of Scorpio Ship Management s.a.m) or Zenith, Hellespont Shipping Synergy, CP Offen, Optimum Ship Services Ltd, V Ships Ship Management and d'Amico International Shipping, or any other company proposed by the Borrower or a Guarantor which the Agent may (acting on the instructions of all the Lenders), approve from time to time as the commercial manager of that Ship.
"Approved Flag" means, in relation to a Ship, the Republic of the Marshall Islands, the Republic of Liberia or such other flag as the Agent may acting reasonably (acting on the instructions of all the Lenders, such instructions not to be unreasonably withheld or delayed) approve from time to time in writing as the flag on which such Ship shall be registered.
"Approved Pooling Arrangement" means, in relation to a Ship, the Scorpio MR Pool or any other pooling arrangement notified to the Agent prior to that Ship's entry into such pooling arrangement.
"Approved Ship Manager" means, in relation to a Ship, the Approved Commercial Manager or the Approved Technical Manager of that Ship.
"Approved Technical Manager" means, in relation to a Ship, Scorpio Ship Management s.a.m of 9, Boulevard Charles III, Monte Carlo, the Principality of Monaco (or any Affiliate or subsidiary of Scorpio Ship Management s.a.m), Scorpio Commercial Management s.a.m. of 9, Boulevard Charles III, Monte Carlo, the Principality of Monaco (or any Affiliate or subsidiary of Scorpio Commercial Management s.a.m) or Zenith, Hellespont Shipping Synergy, CP Offen, Optimum Ship Services Ltd, V Ships Ship Management and d'Amico International Shipping, or any other company proposed by the Borrower or a Guarantor which the Agent may (acting on the instructions of all the Lenders), approve from time to time as the technical manager of that Ship. 
"Approved Ship Manager's Undertaking" means, in relation to a Ship, the letter executed and delivered by an Approved Ship Manager and an Approved Sub-Manager, in the Agreed Form.
"Approved Sub-Manager" means any entity which is an Approved Ship Manager or any other company proposed by the Borrower or a Guarantor which the Agent may (acting on the instructions of all the Lenders), approve from time to time as the technical and/or commercial sub-contracting manager of a Ship. 
"Assignable Charter" means, in relation to a Ship, any demise charter for any period and/or any time charterparty, consecutive voyage charter or contract of affreightment in respect of such 

3    59295567v5

Ship having a duration (or capable of exceeding a duration) of more than 12 months and any guarantee of the obligations of the charterer under such charter or any bareboat charter in respect of that Ship and any guarantee of the obligations of the charterer under such demise charter, entered or to be entered into by the Guarantor which is the owner thereof and a charterer or, as the context may require, bareboat charterer (other than an Assignable Charter where the charterer is a member of the Group or pursuant to an Approved Pooling Arrangement).
"Availability Period" means the period commencing on the date of this Agreement and ending on the earlier of (i) 60 days after the date of this Agreement and (ii) 31 March 2017.
"Available Commitment" means, in relation to a Lender and at any time, its Commitment less its Contribution at that time. 
"Bail-In Action" means the exercise of any Write-down and Conversion Powers.
"Bail-In Legislation" means:
		
	(a)
	in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

		
	(b)
	in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation.

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

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

		
	(c)
	any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III".

"Bookrunner" means HSH Nordbank AG, acting in its capacity as bookrunner through its office at Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany including any transferee, assign or successor.
"Business Day" means a day on which banks are open in London, Hamburg and New York.
"Cash" means any credit balance on any deposit, savings, current or other account, and any cash in hand held with banks or other financial institutions of the Borrower and/or any subsidiary of the Borrower which is:

4    59295567v5

		
	(a)
	freely withdrawable on demand;

		
	(b)
	not subject to any Security Interest (other than pursuant to the Finance Documents);

		
	(c)
	denominated and payable in freely transferable and freely convertible currency; and

		
	(d)
	capable of being remitted to the Borrower or such subsidiary of the Borrower.

"Cash Equivalents" means:
		
	(a)
	unencumbered securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof);

		
	(b)
	time deposits, certificates of deposit or deposits in the interbank market of any commercial bank of recognised standing organised under the laws of the United States of America, any state thereof or any foreign jurisdiction having capital and surplus in excess of $500,000,000; and

		
	(c)
	such other securities or instruments as the Agent shall, with the authorisation of all the Lenders, agree in writing,

provided that in respect of (a) and (b) above such Cash Equivalents shall have a rating of at least "A-" given by S&P or "A" given by Moody's (or the equivalent rating given by another Rating Agency), in each case having maturities of not more than ninety (90) days from the date of acquisition.
"Change of Control" means the occurrence of any act, event or circumstances which results in:
		
	(a)
	100 per cent. of the Equity Interests of any Guarantor ceasing to be ultimately owned and/or controlled by the Borrower (an "Guarantor Disposal");

		
	(b)
	a "person" or "group" (within the meaning of Sections 13(d) and 14(d) of the Exchange Act) other than any holders of the Borrower's Equity Interests as at the date of this Agreement, becoming the ultimate beneficial owner of the Borrower including, without limitation, any change from the date of this Agreement in the ultimate "beneficial owner" (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act) of more than 35 per cent. of the total voting power of the Voting Stock of the Borrower (calculated on a fully diluted basis); or

		
	(c)
	individuals who constitute the board of directors of the Borrower at the beginning of any period of two consecutive calendar years and yet ceasing for any reason to constitute at least 50 per cent. of the total members of the Borrower's board of directors at any time during such two year period;

"Charterparty Assignment" means, in respect of an Assignable Charter including, without limitation, any guarantee of that Assignable Charter, an assignment of the rights and interests of the Guarantor which is party to that Assignable Charter in respect of that Assignable Charter including, without limitation, any related guarantee, to be executed by that Guarantor in favour of the Security Trustee in the Agreed Form.
"Code" means the US Internal Revenue Code of 1986, as amended.

5    59295567v5

"Commission" means the United States Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act.
"Commitment" means:
		
	(a)
	in relation to a Lender as at the date of this Agreement, the amount set opposite its name under the heading "Commitment" in Schedule 1 (Lenders and Commitments) and the amount of any other Commitment transferred to it under this Agreement; and

		
	(b)
	in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement.

"Compliance Certificate" means a certificate executed by the chief financial officer of the Borrower in the form set out in Schedule 6.
"Confidential Information" means all information relating to the Borrower, any Security Party or the Finance Documents of which a Creditor Party becomes aware in its capacity as, or for the purpose of becoming, a Creditor Party or which is received by a Creditor Party in relation to, or for the purpose of becoming a Creditor Party under or the Finance Documents from either:
		
	(a)
	the Borrower or any Security Party or any of their advisers; or

		
	(b)
	another Creditor Party, if the information was obtained by that Creditor Party directly or indirectly from the Borrower or any Security Party or any of their advisers,

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:
		
	(i)
	is or becomes public information other than as a direct or indirect result of any breach by that Creditor Party of Clause 26.13; or

		
	(ii)
	is identified in writing at the time of delivery as non-confidential by the Borrower or any Security Party or any of their advisers; or

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

"Confidentiality Undertaking" means a confidentiality undertaking in substantially the appropriate form recommended by the Loan Market Association from time to time or in any other form agreed between the Borrower and the Agent.
"Consolidated EBITDA" means, for any Accounting Period, the consolidated net income of the Borrower for that Accounting Period:
		
	(a)
	plus, to the extent deducted in computing the net income of the Borrower for that Accounting Period, the sum, without duplication, of:

		
	(i)
	all federal, state, local and foreign income taxes and tax distributions;

6    59295567v5

		
	(ii)
	Consolidated Net Interest Expense;

		
	(iii)
	depreciation, depletion, amortisation of intangibles and other non-cash charges or non-cash losses (including non-cash transaction expenses and the amortisation of debt discounts) and any extraordinary losses not incurred in the ordinary course of business;

		
	(iv)
	expenses incurred in connection with a special or intermediate survey (including any underwater survey done in lieu thereof) of a Fleet Vessel during such period; and

		
	(v)
	any drydocking expenses;

		
	(b)
	minus, to the extent added in computing the consolidated net income of the Borrower for that Accounting Period:

		
	(i)
	any non-cash income or non-cash gains; and

		
	(ii)
	any extraordinary gains on asset sales not received in the ordinary course of business.

"Consolidated Funded Debt" means, for any Accounting Period, the sum of the following for the Borrower determined (without duplication) on a consolidated basis for such period and in accordance with IFRS consistently applied:
		
	(a)
	all Financial Indebtedness; and

		
	(b)
	all obligations to pay a specific purchase price for goods or services whether or not delivered or accepted (including take-or-pay and similar obligations which in accordance with IFRS would be shown on the liability side of a balance sheet),

provided that balance sheet accruals for future drydock expenses shall not be classified as Consolidated Funded Debt.
"Consolidated Net Interest Expense" means, for any Accounting Period, the aggregate of all interest, commissions, discounts and other costs, charges or expenses accruing that are due from the Borrower and all of its subsidiaries during the relevant Accounting Period less:
		
	(a)
	commitment fees;

		
	(b)
	interest income received; and

		
	(c)
	amortisation of deferred charges and arrangement fees, determined on a consolidated basis in accordance with IFRS and as shown in the consolidated statements of income for the Borrower.

"Consolidated Tangible Net Worth" means, on a consolidated basis, the total shareholders' equity (including retained earnings) of the Borrower, minus goodwill and other non-tangible items.
"Consolidated Total Capitalisation" means the Consolidated Tangible Net Worth plus Consolidated Funded Debt.
"Contractual Currency" has the meaning given in Clause 21.4.

7    59295567v5

"Contribution" means, in relation to a Lender, the part of the Loan which is owing to that Lender.
"CRD IV" means Directive 2013/36/EU of the European Union on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms.
"Creditor Party" means the Agent, the Security Trustee, the Bookrunner, the Mandated Lead Arranger or any Lender whether as at the date of this Agreement or at any later time.
"CRR" means and Regulation (EU) No 575/2013 of the European Union on prudential requirements for credit institutions and investment firms.
"Disruption Event" means either or both of:
		
	(a)
	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Loan (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the parties; or

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

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

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

and which (in either such case) is not caused by, and is beyond the control of, the party whose operations are disrupted.
"Dollars" and "$" means the lawful currency for the time being of the United States of America.
"Drawdown Date" means, in relation to an Advance, the date requested by the Borrower for such Advance to be made, or (as the context requires) the date on which such Advance is actually made.
"Drawdown Notice" means a notice in the form set out in Schedule 2 (or in any other form which the Agent approves or reasonably requires).
"Earnings" means, in relation to a Ship, all moneys whatsoever which are now, or later become, payable (actually or contingently) to the Guarantor owning that Ship or the Security Trustee and which arise out of the use or operation of that Ship, including (but not limited to):
		
	(a)
	except to the extent that they fall within paragraph (b):

		
	(i)
	all freight, hire and passage moneys;

		
	(ii)
	compensation payable to the relevant Guarantor or the Security Trustee in the event of requisition of that Ship for hire;

		
	(iii)
	remuneration for salvage and towage services;

		
	(iv)
	demurrage and detention moneys;

8    59295567v5

		
	(v)
	damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of that Ship; and

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

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

"Earnings Account" means, in relation to a Ship, an account in the name of the Guarantor of that Ship with the relevant Account Bank designated as the Earnings Account in respect of such Ship, or any other account (with the relevant Account Bank, the Agent or with a bank or financial institution acceptable to all the Lenders) which is designated by the Agent as the Earnings Account for the purposes of this Agreement. 
"Email" has the meaning given in Clause 29.1.
"Environmental Claim" means:
		
	(a)
	any claim by any governmental, judicial or regulatory authority which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to any Environmental Law; or

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

and "claim" means a claim for damages, compensation, fines, penalties or any other payment of any kind whether or not similar to the foregoing; an order or direction to take, or not to take, certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the arrest or attachment of any asset.
"Environmental Incident" means:
		
	(a)
	any release of Environmentally Sensitive Material from a Ship; or

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

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

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

9    59295567v5

"Environmentally Sensitive Material" means oil, oil products and any other substance (including any chemical, gas or other hazardous or noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous.
"Equity Interests" of any person means:
		
	(a)
	any and all shares and other equity interests (including common stock, preferred stock, limited liability company interests and partnership interests) in such person; and

		
	(b)
	all rights to purchase, warrants or options or convertible debt (whether or not currently exercisable), participations or other equivalents of or interests in (however designated) such shares or other interests in such person.

"Equity Proceeds" means the net cash proceeds from the issuance of common or preferred stock of the Borrower.
"EU Bail-In Legislation Schedule" means the document described as such and published by the Loan Market Association (or any successor person) from time to time.
"euros" means the single currency unit of the Participating Member States.
"Event of Default" means any of the events or circumstances described in Clause 19.1.
"Exchange Act" means the United States Securities Exchange Act of 1934, as amended, and any successor act thereto, and (unless the context otherwise requires) includes the rules and regulations of the Commission promulgated thereunder.
"Existing Agents" means the "Agents" as such term is defined in the Existing Facility Agreement.
"Existing Facility Agreement" means the facility agreement dated 3 May 2011 (as amended from time to time) and entered into between, inter alia, the Borrower as borrower and Nordea Bank Finland plc, New York branch as agent and security trustee in respect of a $150,000,000 loan facility.
"Existing Indebtedness" means, at any date, the aggregate outstanding indebtedness of the Borrower on that date under the Existing Facility Agreement.
"Existing Security" means any Security Interest created to secure the Existing Indebtedness.
"Facility" means the term loan facility made available under this Agreement as described in Clause 2.1 (Amount of facility). 
"Facility Office" means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or following that date, by not less than 5 Business Days' written notice) as the office or offices through which it will perform its obligations under this Agreement.
"Fair Market Value" means, in relation to a Ship, a valuation determined in accordance with Clause 15.3.
"FATCA" means:
		
	(a)
	sections 1471 to 1474 of the Code or any associated regulations;

10    59295567v5

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

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

"FATCA Deduction" means a deduction or withholding from a payment under a Finance Document required by FATCA.
"FATCA Exempt Party" means a party to this Agreement that is entitled to receive payments free from any FATCA Deduction.
"Finance Documents" means:
		
	(a)
	this Agreement;

		
	(b)
	the Agency and Trust Deed;

		
	(c)
	the Guarantee;

		
	(d)
	the Mortgages;

		
	(e)
	the General Assignments;

		
	(f)
	the Account Security Deeds;

		
	(g)
	any Charterparty Assignment;

		
	(h)
	any Intercompany Loan Assignment; and

		
	(i)
	any other document (whether creating a Security Interest or not) which is executed at any time by the Borrower, any Security Party or any other person as security for, or to establish any form of subordination or priorities arrangement in relation to, any amount payable to the Lenders under this Agreement or any of the other documents referred to in this definition (other than any Approved Ship Manager's Undertakings). 

"Financial Indebtedness" means, with respect to any person (the "Debtor") at any date of determination (without duplication):
		
	(a)
	all obligations of the Debtor for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the Debtor;

		
	(b)
	all obligations of the Debtor evidenced by bonds, debentures, notes or other similar instruments;

		
	(c)
	all obligations of the Debtor in respect of any acceptance credit, guarantee or letter of credit facility or equivalent made available to the Debtor (including reimbursement obligations with respect thereto) which in accordance with IFRS would be shown on the liability side of a balance sheet;

		
	(d)
	all obligations of the Debtor to pay the deferred purchase price of property or services, which purchase price is due more than six months after the date of placing such property 

11    59295567v5

in service or taking delivery thereto or the completion of such services, except trade payables;
		
	(e)
	all capitalised lease obligations of the Debtor as lessee;

		
	(f)
	all Financial Indebtedness of persons other than the Debtor secured by a Security Interest on any asset of that person, whether or not such Financial Indebtedness is assumed by the Debtor, provided that the amount of such Financial Indebtedness shall be the lesser of:

		
	(i)
	the fair market value of such asset at such date of determination; and

		
	(ii)
	the amount of such Financial Indebtedness; and

		
	(g)
	all Financial Indebtedness incurred under any guarantee, indemnity or similar obligation to the extent such Financial Indebtedness is guaranteed, secured, expressed to be indemnified by, or otherwise assured by the Debtor.

The amount of Financial Indebtedness of any Debtor at any date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to the contingent obligations set out in paragraphs (f) and (g) above, the maximum liability which would or might arise upon the occurrence of the contingency giving rise to the obligation, as determined in conformity with IFRS, provided that:
		
	(i)
	the amount outstanding at any time of any Financial Indebtedness issued with an original issue discount shall be deemed to be the face amount of such Financial Indebtedness less the remaining unamortised portion of such original issue discount of such Financial Indebtedness at such time; and

		
	(ii)
	the calculation of Financial Indebtedness shall not take into account any liability of the Debtor for taxes.

"Fiscal Year" means, in relation to any person, each period of 1 year commencing on January 1 of each year and ending on December 31 of such year in respect of which its accounts are or ought to be prepared.
"Fleet Vessel" means each vessel owned by a wholly owned direct or indirect subsidiary of the Borrower (including, but not limited to, the Ships).
"General Assignment" means, in relation to a Ship, a general assignment of the Earnings, the Insurances and any Requisition Compensation for that Ship in the Agreed Form.
"Green Passport" means, in relation to a Ship, a green passport statement of compliance issued by the relevant Approved Classification Society which includes a list of any and all materials known to be potentially hazardous utilised in the construction of that Ship.
"Group" means the Borrower and its subsidiaries.
"Guarantee" means the joint and several guarantee to be executed by the Guarantors in favour of the Security Trustee in the Agreed Form.
"Guarantor" means each of Guarantor A and Guarantor B.

12    59295567v5

"Guarantor A" means STI Onyx Shipping Company Limited, a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960.
"Guarantor B" means STI Duchessa Shipping Company Limited, a corporation incorporated in the Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960.
"Guarantor Disposal" shall have the meaning given to that expression in paragraph (a) of the definition of "Change of Control".
"IACS" means the International Association of Classification Societies.
"IFRS" means international accounting standards within the meaning of the IAS Regulations 1606/2002 to the extent applicable to the relevant financial statements.
"Insurances" means, in relation to a Ship:
		
	(a)
	all policies and contracts of insurance, including entries of that Ship in any protection and indemnity or war risks association, effected in respect of that Ship, its Earnings or otherwise in relation to that Ship; and

		
	(b)
	all rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium and any rights in respect of any claim whether or not the relevant policy, contract of insurance or entry has expired on or before the date of this Agreement.

"Intercompany Loan" means any transaction constituting Financial Indebtedness entered into by the Borrower or any direct or indirect shareholder of the Borrower ("Party A") with the Guarantors or any of them ("Party B") whereby Party A is entitled to receive any payment in cash or in kind from Party B.
"Intercompany Loan Assignment" means an assignment of each Intercompany Loan made or to be made by the person providing such Intercompany Loan in favour of the Security Trustee in the Agreed Form.
"Interest Period" means a period determined in accordance with Clause 6.
"Interpolated Screen Rate" means, in relation to LIBOR for the Loan or any part of the Loan, the rate which results from interpolating on a linear basis between:
		
	(a)
	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of the Loan or that part of the Loan; and

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

each as of the Quotation Date for Dollars.
"ISM Code" means the International Safety Management Code (including the guidelines on its implementation), adopted by the International Maritime Organisation, as the same may be amended or supplemented from time to time (and the terms "safety management system", "Safety Management Certificate" and "Document of Compliance" have the same meanings as are given to them in the ISM Code).

13    59295567v5

"ISPS Code" means the International Ship and Port Facility Security Code as adopted by the International Maritime Organisation, as the same may be amended or supplemented from time to time.
"ISSC" means a valid and current International Ship Security Certificate issued under the ISPS Code.
"Latent Event of Default" means any event or circumstance specified in Clause 19 which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be or become an Event of Default.
"Lender" means, subject to Clause 26.6, a bank or financial institution listed in Part 1 of Schedule 1 and acting through its branch indicated in Schedule 1 (or through another branch notified to the Borrower under Clause 26.14) or its transferee, successor or assignee.
"LIBOR" means, in relation to any period for which an interest rate is to be determined under any provision of a Finance Document:
		
	(a)
	the applicable Screen Rate as of 11 a.m. (London time) on the Quotation Date for that period for the offering of deposits in the relevant currency and for a period comparable to that period; or

		
	(b)
	as otherwise determined pursuant to Clause 5.5,

and if, in either case, any such rate is below zero, LIBOR shall be deemed to be zero.
"Loan" means the principal amount for the time being outstanding under this Agreement.
"Major Casualty" means, in relation to a Ship, any casualty to that Ship in respect of which the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds $5,000,000 or the equivalent in any other currency.
"Majority Lenders" means at any time Lenders whose Commitments total 66.66 per cent. of the Total Commitments at that time.
"Mandated Lead Arranger" means HSH Nordbank AG acting as mandated lead arranger of the loan facility made available to the Borrower under this Agreement.
"Margin" means 2.50 per cent. per annum.
"Material Adverse Effect" means in the reasonable opinion of the Lenders a material adverse effect on:
		
	(a)
	the business, operations, property or condition (financial or otherwise) of the Borrower and/or any Guarantor; or

		
	(b)
	the ability of the Borrower and/or any Guarantor to perform its obligations under any Finance Document; or

		
	(c)
	the validity or enforceability of, or the effectiveness or ranking of any Security Interest granted or intended to be granted pursuant to any of, the Finance Documents; or

		
	(d)
	the rights or remedies of any Creditor Party under any of the Finance Documents.

14    59295567v5

"Maturity Date" means the earlier of (i) the fifth anniversary of the first Drawdown Date and (ii) 31 May 2022.
"Moody's" means Moody's Investors Service, Inc., a subsidiary of Moody's Corporation.
"Mortgage" means, in relation to a Ship the first priority or, as the case may be, preferred ship mortgage on the Ship under the applicable Approved Flag together with any deed of covenant collateral thereto, (if applicable) in the Agreed Form.
"Net Debt" means Consolidated Funded Debt less Cash and Cash Equivalents of the Borrower and its Subsidiaries.
"Notifying Lender" has the meaning given in Clause 23.1 or Clause 24.1 as the context requires.
"Participating Member State" means any member state of the European Union that has the euro as its lawful currency in accordance with the legislation of the European Union relating to Economic and Monetary Union.
"Payment Currency" has the meaning given in Clause 21.4.
"Permitted Security Interests" means:
		
	(a)
	Security Interests created by the Finance Documents;

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

		
	(c)
	liens for salvage;

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

		
	(e)
	liens for master's disbursements incurred in the ordinary course of trading and any other lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of a Ship, provided such liens do not secure amounts more than 30 days overdue (unless the overdue amount is being contested by the Guarantor that owns such Ship in good faith by appropriate steps) and subject, in the case of liens for repair or maintenance, to Clause 14.13(d);

		
	(f)
	any Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses where the Guarantor that owns such Ship or the Borrower, as the case may be, is actively prosecuting or defending such proceedings or arbitration in good faith; 

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

		
	(h)
	any Security Interest and right of set-off arising under or pursuant to any applicable general banking conditions

"Pertinent Document" means:
		
	(a)
	any Finance Document;

15    59295567v5

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

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

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

"Pertinent Jurisdiction", in relation to a company, means:
		
	(a)
	England and Wales, the Principality of Monaco, New York State of the United States of America, Germany and the Republic of the Marshall Islands;

		
	(b)
	if not within any of the jurisdictions referred to in (a) above, the country under the laws of which the company is incorporated or formed;

		
	(c)
	if not within any of the jurisdictions referred to in (a) above, a country in which the company has the centre of its main interests or in which the company's central management and control is or has recently been exercised.

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

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

and covers any such transaction, matter or statement, whether entered into, arising or made at any time before the signing of this Agreement or on or at any time after that signing.
"Quotation Date" means, in relation to any period for which an interest rate is to be determined under any provision of a Finance Document, the day which is 2 Business Days before the first day of that period, unless market practice differs in the London Interbank Market for a currency, in which case the Quotation Date will be determined by the Agent in accordance with market practice in the London Interbank Market (and if quotations would normally be given by leading banks in the London Interbank Market on more than one day, the Quotation Date will be the last of those days).
"Rating Agency" means S&P, Moody's or, if both of them are not making ratings of securities publically available, an internationally recognised rating agency selected by the Agent which shall be substituted for S&P or Moody's.
"Reference Banks" means, subject to Clause 26.16, HSH Nordbank AG, and any other prime international banks selected by the Agent and notified to the Borrower.
"Reference Bank Rate" means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks:
		
	(a)
	(other than where paragraph (b) below applies) as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in dollars for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or 

16    59295567v5

		
	(b)
	if different, as the rate (if any and applied to the relevant Reference Bank and the relevant currency and period) which contributors to the Screen Rate are asked to submit to the relevant administrator.

"Relevant Person" has the meaning given in Clause 19.9.
"Repayment Date" means a date on which a repayment is required to be made under Clause 8.
"Requisition Compensation" includes all compensation or other moneys payable by reason of any act or event such as is referred to in paragraph (b) of the definition of "Total Loss".
"S&P" means Standard & Poor's Rating Services, a division of the McGraw Hill Companies Inc.
"Screen Rate" means, in respect of LIBOR for any period, the rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for Dollars for the relevant period displayed on the appropriate page of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Thomson Reuters.  If the agreed page is replaced or service ceases to be available, the Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the Lenders.
"Secured Liabilities" means all liabilities which the Borrower, the Security Parties or any of them have, at the date of this Agreement or at any later time or times, under or in connection with any Finance Document or any judgment relating to any Finance Documents and for this purpose, there shall be disregarded any total or partial discharge of these liabilities, or variation of their terms, which is effected by, or in connection with, any bankruptcy, liquidation, arrangement or other procedure under the insolvency laws of any country.
"Security Interest" means:
		
	(a)
	a mortgage, charge (whether fixed or floating) or pledge, any maritime or other lien or any other security interest of any kind;

		
	(b)
	the security rights of a plaintiff under an action in rem; and

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

"Security Party" means each Guarantor and any other person (except a Creditor Party) who, as a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes a document falling within the last paragraph of the definition of "Finance Documents" but always excluding any Approved Ship Manager and any Approved Sub-Manager.
"Security Period" means the period commencing on the date of this Agreement and ending on the date on which the Agent acting reasonably notifies the Borrower, the Security Parties and the other Creditor Parties that:

17    59295567v5

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

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

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

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

"Security Trustee" means HSH Nordbank AG, acting in its capacity as Security Trustee for the Lenders through its office at Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany and includes any transferee, assign or any successor of it appointed under clause 5 of the Agency and Trust Deed.
"Servicing Bank" means the Agent or the Security Trustee.
"Ship" means Ship A or Ship B.
"Ship A" means m.v. "STI ONYX", details of which are set out opposite its name in Schedule 7 (The Ships).
"Ship B" means m.v. "STI DUCHESSA", details of which are set out opposite its name in Schedule 7 (The Ships).
"SMC" means a safety management certificate issued in respect of the Ship in accordance with Rule 13 of the ISM Code.
"Total Commitments" means the aggregate of the Commitments of all the Lenders.
"Total Loss" means, in relation to a Ship:
		
	(a)
	actual, constructive, compromised, agreed or arranged total loss of that Ship;

		
	(b)
	any expropriation, confiscation, requisition or acquisition of that Ship, whether for full consideration, a consideration less than its proper value, a nominal consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period not exceeding 1 year without any right to an extension), unless it is within 45 days redelivered to the full control of the Guarantor owning that Ship;

		
	(c)
	any arrest, capture, seizure or detention of that Ship (including any theft) unless it is within 45 days redelivered to the full control of the Guarantor owning that Ship; and

		
	(d)
	any hijacking of that ship unless it is within 45 days redelivered to the full control of the Guarantor owning that Ship.

18    59295567v5

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

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

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

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

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

"Transfer Certificate" has the meaning given in Clause 26.2. 
"Trust Property" has the meaning given in clause 3.1 of the Agency and Trust Deed.
"VAT" means:
		
	(a)
	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and

		
	(b)
	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere. 

"Voting Stock" of any person as of any date means the Equity Interests of such person that are at the time entitled to vote in the election of the board of directors or similar governing body of such person.
"Write-down and Conversion Powers" means:
		
	(a)
	in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule ; and

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

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

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

19    59295567v5

		
	1.2
	Construction of certain terms.  In this Agreement:

"administration notice"  means a notice appointing an administrator, a notice of intended appointment and any other notice which is required by law (generally or in the case concerned) to be filed with the court or given to a person prior to, or in connection with, the appointment of an administrator;
"approved"  means, for the purposes of Clause 13, approved in writing by the Agent;
"asset" includes every kind of property, asset, interest or right, including any present, future or contingent right to any revenues or other payment;
"company" includes any partnership, joint venture and unincorporated association;
"consent" includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration, notarisation and legalisation;
"contingent liability"  means a liability which is not certain to arise and/or the amount of which remains unascertained;
"document" includes a deed; also a letter or fax;
"excess risks"  means, in relation to a Ship, the proportion of claims for general average, salvage and salvage charges not recoverable under the hull and machinery policies in respect of that Ship in consequence of its insured value being less than the value at which such Ship is assessed for the purpose of such claims;
"expense"  means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable value added or other tax;
"law"  includes any order or decree, any form of delegated legislation, any treaty or international convention and any regulation or resolution of the Council of the European Union, the European Commission, the United Nations or of its Security Council;
"legal or administrative action"  means any legal proceeding or arbitration and any administrative or regulatory action or investigation;
"liability" includes every kind of debt or liability (present or future, certain or contingent), whether incurred as principal or surety or otherwise;
"months" shall be construed in accordance with Clause 1.3;
"obligatory insurances"  means, in relation to a Ship, all insurances effected, or which the Guarantor owning that Ship is obliged to effect, under Clause 13 or any other provision of this Agreement or another Finance Document;
"party" means any party to this Agreement;
"person" includes any company; any state, political sub-division of a state and local or municipal authority; and any international organisation;
"policy", in relation to any insurance, includes a slip, cover note, certificate of entry or other document evidencing the contract of insurance or its terms;

20    59295567v5

"protection and indemnity risks"  means the usual risks covered by a protection and indemnity association managed in London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation in them of clause 6 of the International Time Clauses (Hulls)(1/11/02 or 1/11/03) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83) or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision;
"regulation" includes any regulation, rule, official directive, request or guideline whether or not having the force of law of any governmental body, intergovernmental or supranational, agency, department or regulatory, self‐regulatory or other authority or organisation;
"subsidiary"  has the meaning given in Clause 1.4;
"tax"  includes any present or future tax, duty, impost, levy or charge of any kind which is imposed by any state, any political sub-division of a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any connected penalty, interest or fine; 
"war risks"  includes the risk of mines and all risks excluded by clause 29 of the Institute Hull Clauses (1/11/02 or 1/11/03) or clause 24 of the Institute Time clauses (Hulls) (1/11/1995) or clause 23 of the Institute Time Clauses (Hulls) (1/10/83); and
an "Event of Default" or a "Latent Event of Default" is "continuing" if it has not been remedied or waived.
		
	1.3
	Meaning of "month".  A period of one or more "months" ends on the day in the relevant calendar month numerically corresponding to the day of the calendar month on which the period started (the "numerically corresponding day"), but:

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

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

and "month" and "monthly" shall be construed accordingly.
		
	1.4
	Meaning of "subsidiary".  In this Agreement "subsidiary" means a subsidiary within the meaning of section 1159 of the Companies Act 2006.

		
	1.5
	General Interpretation.  In this Agreement:

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

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

		
	(c)
	words denoting the singular number shall include the plural and vice versa; and

		
	(d)
	Clauses 1.1 to 1.5 apply unless the contrary intention appears.

21    59295567v5

		
	1.6
	Headings.  In interpreting a Finance Document or any provision of a Finance Document, all clause, sub-clause and other headings in that and any other Finance Document shall be entirely disregarded.

		
	2
	FACILITY

		
	2.1
	Amount of facility.  Subject to the other provisions of this Agreement, the Lenders shall make available to the Borrower a term loan facility to be made available to the Borrower in two (2) Advances in accordance with Clause 4 (Drawdown) in the aggregate principal amount of up to $34,000,000.

		
	2.2
	Lenders' participations in an Advance

Subject to the other provisions of this Agreement, each Lender shall participate in each Advance in the proportion which, as at the relevant Drawdown Date, its Commitment bears to the Total Commitments.
		
	2.3
	Purpose of each Advance

The Borrower undertakes with each Creditor Party to use each Advance only for the purpose stated in the preamble to this Agreement and Clause 4.2(g).

		
	3
	POSITION OF THE LENDERS 

		
	3.1
	Interests several.  The rights of the Lenders under this Agreement are several.

		
	3.2
	Individual right of action. Each Lender shall be entitled to sue for any amount which has become due and payable by the Borrower to it under this Agreement without joining the Agent, the Security Trustee or any other Lender as additional parties in the proceedings.

		
	3.3
	Proceedings requiring Majority Lender consent. Except as provided in Clause 3.2, no Lender may commence proceedings against the Borrower, any Security Party, any Approved Ship Manager or Approved Sub-Manager in connection with a Finance Document without the prior consent of the Majority Lenders.

		
	3.4
	Obligations several.  The obligations of the Lenders under this Agreement are several; and a failure of a Lender to perform its obligations under this Agreement shall not result in:

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

		
	(b)
	the Borrower, any Security Party, any Approved Ship Manager or Approved Sub-Manager or any other Lender being discharged (in whole or in part) from its obligations under any Finance Document,

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

		
	4
	DRAWDOWN

		
	4.1
	Request for Advance.  Subject to the following conditions, the Borrower may request that an Advance be made by ensuring that the Agent receives a completed Drawdown Notice not later than 11.00 a.m. (London time) 3 Business Days prior to the intended Drawdown Date.

		
	4.2
	Availability. The conditions referred to in Clause 4.1 are that:

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

		
	(b)
	the aggregate of the Advances shall not exceed the lower of (i) $34,000,000 and (ii) 60 per cent. of the aggregate of the Fair Market Value of the Ships;

		
	(c)
	there shall be no more than two Advances;

		
	(d)
	the aggregate amount of the Advances once drawn shall not exceed the Total Commitments;

		
	(e)
	the Drawdown Date of the second Advance shall be no later than 30 Business Days from the Drawdown Date for the first Advance;

		
	(f)
	each Advance shall be made available in a single amount and any amount undrawn following the drawdown of the second Advance shall be cancelled in accordance with Clause 8.1(b) and may not be borrowed by the Borrower at a later date;

For the purposes of paragraph (b), the Fair Market Value of the Ships shall, notwithstanding paragraph (b) of Clause 15.3, in any event be determined on the basis of valuations carried out in the case of each Advance as required pursuant to paragraph 2 of Part B of Schedule 3 (Condition Precedent Documents), at a date not earlier than fourteen (14) days before the Drawdown Date for the relevant Advance.
		
	4.3
	Notification to Lenders of receipt of a Drawdown Notice.  The Agent shall promptly notify the Lenders that it has received a Drawdown Notice and shall inform each Lender of:

		
	(a)
	the amount of the Advance requested and the Drawdown Date and the Ship to which that Advance relates;

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

		
	(c)
	the duration of the first Interest Period applicable to that Advance.

		
	4.4
	Drawdown Notice irrevocable.  A Drawdown Notice must be signed by an officer or a duly authorised attorney-in-fact of the Borrower; and once served, a Drawdown Notice cannot be revoked without the prior consent of the Agent, acting on the authority of the Majority Lenders.

		
	4.5
	Lenders to make available Contributions.  Subject to the provisions of this Agreement, each Lender shall, on and with value on the Drawdown Date, make available to the Agent the amount due from that Lender under Clause 2.2.

		
	4.6
	Disbursement of an Advance.  Subject to the provisions of this Agreement, the Agent shall on each Drawdown Date pay to the Borrower the amounts which the Agent receives from the Lenders under Clause 4.5; and that payment to the Borrower shall be made:

		
	(a)
	to the account which the Borrower specifies in the Drawdown Notice; and

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

		
	4.7
	Disbursement of an Advance to third party.  The payment of an Advance by the Agent under Clause 4.6 to the Borrower or such other person notified by the Borrower to the Agent shall constitute the making of that Advance and the Borrower shall at that time become indebted, as principal and direct obligor, to each Lender in an amount equal to that Lender's Contribution.

		
	4.8
	Cancellation of Commitments.  The Commitments in respect of any Advance which are unutilised at the end of the Availability Period for such Advance shall then be cancelled.

22    59295567v5

		
	5
	INTEREST

		
	5.1
	Payment of normal interest.  Subject to the provisions of this Agreement, interest on each Advance in respect of each Interest Period shall be paid by the Borrower on the last day of that Interest Period.

		
	5.2
	Normal rate of interest.  Subject to the provisions of this Agreement, the rate of interest on each Advance in respect of an Interest Period shall be the aggregate of (i) the Margin and (ii) LIBOR for that Interest Period.

		
	5.3
	Payment of accrued interest.  In the case of an Interest Period longer than 3 months, accrued interest shall be paid every 3 months during that Interest Period and on the last day of that Interest Period.

		
	5.4
	Notification of Interest Periods and rates of normal interest.  The Agent shall notify the Borrower and each Lender of:

		
	(a)
	each rate of interest; and

		
	(b)
	the duration of each Interest Period,

as soon as reasonably practicable after each is determined.
		
	5.5
	Unavailability of Screen Rate

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

		
	(b)
	If no Screen Rate is available for LIBOR for:

		
	(i)
	dollars; or

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

the applicable LIBOR shall be the Reference Bank Rate as of the Quotation Date and for a period equal in length to the Interest Period of the Loan or that part of the Loan.
		
	(c)
	If paragraph (b) above applies but no Reference Bank Rate is available for dollars or the relevant Interest Period, there shall be no LIBOR for the Loan or that part of the Loan and Clause 5.8 (Cost of funds) shall apply to the Loan or that part of the Loan for that Interest Period.

		
	5.6
	Calculation of Reference Bank Rate

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

		
	(b)
	If at or about 12.00 p.m. (London time) on the Quotation Date none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period.

		
	5.7
	Market disruption

23    59295567v5

		
	(a)
	If before close of business in London on the Quotation Day for the relevant Interest Period the Agent receives notification from a Lender or Lenders (whose participations in the Loan or the relevant part of the Loan exceed 50 per cent. of the Loan or the relevant part of the Loan) (the "Relevant Lender") that the cost to it of funding its participation in the Loan or that part of the Loan would be in excess of LIBOR then Clause 5.8 (Cost of funds) shall apply to the Loan or that part of the Loan (as applicable) for the relevant Interest Period.

		
	(b)
	If, at least 1 Business Day before a Drawdown Date, the Agent receives notification from a Lender (the "Affected Lender") that for any reason it is unable to obtain Dollars in the London Interbank Market in order to fund its participation in the relevant Advance, the Affected Lender's obligation to participate in that Advance shall be suspended while that situation continues.

		
	5.8
	Cost of funds

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

		
	(i)
	the Margin; and

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

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

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

		
	6
	INTEREST PERIODS

		
	6.1
	Commencement of term Interest Periods

The first Interest Period applicable to an Advance shall commence on the Drawdown Date relating to that Advance and each subsequent Interest Period shall commence on the expiry of the preceding Interest Period applicable to such Advance.
		
	6.2
	Duration of normal term Interest Periods

Subject to Clauses 6.3, 6.4 and 6.5, each Interest Period shall be: 
		
	(a)
	three (3) months; or 

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

		
	(c)
	such longer period (as proposed by the Borrower to the Agent not later than 11.00am (Hamburg time) 3 Business Days before the commencement of the Interest Period in respect of that Advance) as the Agent may, with the authorisation of all the Lenders, agree with the Borrower, failing which, the Interest Period shall be three (3) months).

		
	6.3
	Duration of Interest Periods for repayment instalments.  In respect of an amount due to be repaid under Clause 8 on a particular Repayment Date, an Interest Period shall end on that Repayment Date.

		
	6.4
	No Interest Period to extend beyond Maturity Date. No Interest Period shall end after the Maturity Date and any Interest Period which would otherwise extend beyond the Maturity Date shall instead end on the Maturity Date.

		
	6.5
	Non-availability of matching deposits for Interest Period selected.  If, after the Borrower has selected and the Lenders have agreed an Interest Period longer than 3 months, any Lender notifies the Agent by 11.00 a.m. (London time) on the third Business Day before the commencement of the Interest Period that it is not satisfied that deposits in Dollars for a period equal to the Interest Period will be available to it in the London Interbank Market when the Interest Period commences, the Interest Period shall be of 3 months.

		
	7
	DEFAULT INTEREST

		
	7.1
	Payment of default interest on overdue amounts.  The Borrower shall pay interest in accordance with the following provisions of this Clause 7 on any amount payable by the Borrower under any Finance Document which the Agent, the Security Trustee or the other designated payee does not receive on or before the relevant date, that is:

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

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

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

		
	7.2
	Default rate of interest.  Interest shall accrue on an overdue amount from (and including) the relevant date until the date of actual payment (as well after as before judgment) at the rate per annum determined by the Agent to be 2 per cent. above:

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

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

		
	7.3
	Calculation of default rate of interest.  The rates referred to in Clause 7.2 are:

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

		
	(b)
	the Margin plus, in respect of successive periods select by the Agent for so long as such amounts remain unpaid:

		
	(i)
	LIBOR; or

		
	(ii)
	if LIBOR is unavailable, a rate from time to time determined by the Agent by reference to the actual cost of funds to the Reference Banks from such other sources as the Agent (after consultation with the Reference Banks) may from time to time determine.

		
	7.4
	Notification of interest periods and default rates.  The Agent shall promptly notify the Lenders and the Borrower of each interest rate determined by the Agent under Clause 7.3 and of each period selected by the Agent for the purposes of paragraph (b) of that Clause; but this shall not be taken to imply that the Borrower is liable to pay such interest only with effect from the date of the Agent's notification.

		
	7.5
	Payment of accrued default interest.  Subject to the other provisions of this Agreement, any interest due under this Clause shall be paid on the last day of the period by reference to which it was determined; and the payment shall be made to the Agent for the account of the Creditor Party to which the overdue amount is due.

		
	7.6
	Compounding of default interest.  Any such default interest which is not paid at the end of the period by reference to which it was determined shall thereupon be compounded by the default rate on a daily basis.

		
	8
	REPAYMENT, PREPAYMENT AND REBORROWING

		
	8.1
	Repayment of Loan

		
	(a)
	The Borrower shall repay the Loan by 20 consecutive quarterly instalments (each a "Repayment Instalment"), the first of which shall be repaid on the date falling three months after the first Drawdown Date relating to the Loan. The first 8 Repayment Instalments shall be $814,583 each and the next 12 Repayment Instalments shall be $708,333 each, the last of which shall be payable together with an additional balloon instalment equal to the then outstanding balance of the Loan.

		
	(b)
	If the aggregate amount advanced under the Loan is less than $34,000,000:

		
	(i)
	the repayment instalments referred to in this Clause 8.1 (Repayment of Loan) (including the balloon) shall be reduced pro rata and the Agent shall provide the Borrower and the other Creditor Parties with a repayment schedule for the Loan with the amended repayment instalments (and balloon); and

		
	(ii)
	the unutilised Commitments (if any) of each Lender shall be automatically cancelled at close of business on the earlier to occur of the expiry of the Availability Period and the Drawdown Date in relation to the second Advance.

		
	8.2
	Final Repayment Date.  On the final Repayment Date, the Borrower shall additionally pay to the Agent for the account of the Creditor Parties all other sums then accrued or owing under any Finance Document.

		
	8.3
	Voluntary prepayment

Subject to the conditions set forth in Clause 8.4, the Borrower may prepay or cancel the whole or any part of the Loan without premium other than pursuant to Clause 8.10.
		
	8.4
	Conditions for voluntary prepayment.  The conditions referred to in Clause 8.3 are that:

		
	(a)
	a partial prepayment of the Loan shall be $1,000,000 or a higher integral multiple of $100,000 or such lower amount as the Agent may approve; and

		
	(b)
	the Agent has received from the Borrower at least 3 Business Days' prior written notice specifying the amounts to be prepaid and cancelled and the date on which the prepayment and cancellation is to be made.

		
	8.5
	Effect of notice of prepayment.  A prepayment notice may not be withdrawn or amended without the consent of the Agent, given with the authorisation of all the Lenders, and the amount specified in the prepayment notice shall become due and payable by the Borrower on the date for prepayment specified in the prepayment notice.

		
	8.6
	Notification of notice of prepayment.  The Agent shall notify the Lenders promptly upon receiving a prepayment notice.

		
	8.7
	Mandatory prepayment or cancellation on sale or Total Loss.  If a Ship is sold or there is a Guarantor Disposal to facilitate the sale or disposal of a Ship or a Ship becomes a Total Loss, the Borrower shall prepay the Loan by, in aggregate, the relevant amount (as defined below):

		
	(a)
	in the case of a sale, on the earlier of (i) the date on which the sale is completed by delivery of the Ship to the relevant buyer and (ii) the date of receipt by the Security Trustee of the proceeds of the sale; or

		
	(b)
	in the case of a Guarantor Disposal, on the date on which the Guarantor Disposal occurs; or

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

In this Clause 8.7 "relevant amount" means:
in the case of a sale or a Guarantor Disposal or a Total Loss, the greater of the amount of the Loan on the date of such prepayment multiplied by a fraction of which the numerator is the Fair Market Value of the relevant Ship (determined as at the date of the most recent appraisal and not more than 6 months prior to the date of the sale or Total Loss) and the denominator is the aggregate of the most recently determined Fair Market Values of the Ships (determined on the same basis).  
		
	8.8
	Mandatory prepayment or cancellation on Change of Control.  If there is a Change of Control, the Borrower shall prepay the Loan on or before the date falling 60 days following such Change of Control unless agreed otherwise by all the Lenders or the Change of Control consists of a Guarantor Disposal, where such Guarantor Disposal is made solely to facilitate the sale or disposal of a Ship and a corresponding prepayment is made in accordance with Clause 8.7. 

		
	8.9
	Mandatory prepayment or cancellation on Illegality.  If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in an Advance or all or any part of the Loan or it becomes unlawful for any Affiliate of a Lender for that Lender to do so:

		
	(a)
	that Lender shall promptly notify the Agent upon becoming aware of that event;

		
	(b)
	upon the Agent notifying the Borrower, each Available Commitment of that Lender will be immediately cancelled; and

		
	(c)
	the Borrower shall prepay that Lender's participation in each part of the Loan on the last day of the Interest Period for that part of the Loan occurring after the Agent has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law) and that Lender's corresponding Commitment shall be cancelled in the amount of the participation prepaid.

		
	8.10
	Amounts payable on prepayment.  A voluntary prepayment under Clause 8.3, a mandatory prepayment under Clauses 8.7, 8.8 and 8.9 and any cancellation of any Lender's Commitment under this Agreement shall be made together with:

		
	(a)
	accrued interest (and any other amount payable under Clause 21 or otherwise) in respect of the amount prepaid;

		
	(b)
	if the prepayment or any part of it is not made on the last day of the Interest Period applicable to the part of the Loan against which it is to be applied, any sums payable under Clause 21.1(b); and

		
	(c)
	in respect of a voluntary prepayment or reduction pursuant to Clause 8.3 only, a prepayment fee of 1.00 per cent. of the amount of the prepayment or reduction of the Loan as at the prepayment or reduction date in respect of any voluntary prepayment or reduction made prior to the first anniversary of the earlier of (i) 31 January 2017 and (ii) the date of this Agreement.

		
	8.11
	Application of partial prepayment.

		
	(a)
	Each voluntary partial prepayment pursuant to Clause 8.3 where the aggregate amount of the partial prepayment is:

		
	(i)
	in an amount equal to or lesser than $5,000,000 shall be applied as regards the Loan, first against the balloon instalment and secondly against the Repayment Instalments as specified in Clause 8.1 in inverse order of maturity; and

		
	(ii)
	in an amount in excess of $5,000,000 shall be applied:

		
	(A)
	in respect of the amount up to and including $5,000,000, first against the balloon instalment and secondly against the Repayment Instalments as specified in Clause 8.1 in inverse order of maturity; and

		
	(B)
	in respect of the amount exceeding $5,000,000, pro rata against the Repayment Instalments and the balloon instalment as specified in Clause 8.1.

		
	(b)
	Any mandatory partial prepayment made pursuant to Clause 8.7 shall be applied pro rata against the Repayment Instalments and the balloon instalments as specified in Clause 8.1.

		
	(c)
	Any mandatory partial prepayment or cancellation made pursuant to Clauses 8.8, 8.9, 15.2, 23.3 and 24.6 (b) shall be applied in an amount, in aggregate, equal to the amount of such prepayment and cancellation and, as regards the Loan, first against the balloon instalment and secondly against the repayment instalments for the Loan as specified in Clause 8.1 in inverse order of maturity.

		
	8.12
	Reborrowing.  No amount of the Loan repaid or prepaid may be reborrowed.

		
	9
	CONDITIONS PRECEDENT

		
	9.1
	Documents, fees and no default.  Each Lender's obligation to contribute to the Loan is subject to the following conditions precedent:

		
	(a)
	that, on or before the service of the first Drawdown Notice, the Agent receives the documents described in Part A of Schedule 3 in form and substance satisfactory to the Agent and its lawyers;

		
	(b)
	that, on or before the Drawdown Date in relation to any Advance, the Agent receives or is satisfied that it will receive on the making of such Advance, the documents described in Part B of Schedule 3 in form and substance satisfactory to it and its lawyers;

		
	(c)
	that, on or before the service of each Drawdown Notice, the Agent receives all fees contemplated by Clause 20.1 and has received payment of the expenses referred to in Clause 20.2; 

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

		
	(i)
	no Event of Default or Latent Event of Default has occurred or would result from the borrowing of the relevant Advance;

		
	(ii)
	the representations and warranties in Clause 10.1 and those of the Borrower or any Security Party which are set out in the other Finance Documents would be true and not misleading if repeated on each of those dates with reference to the circumstances then existing;

		
	(iii)
	no event or circumstance has occurred which has or is reasonably likely to have a Material Adverse Effect;

		
	(iv)
	there has been no material change in the consolidated financial condition, operations or business prospects of the Borrower since the date on which the Borrower provided the Compliance Certificate and Accounting Information accompanying such Compliance Certificate or in respect of any of the information concerning those topics appended to the Compliance Certificate; and

		
	(v)
	none of the circumstances contemplated by Clause 5.7 (Market disruption) has occurred and is continuing; and

		
	(e)
	that, the Agent is satisfied that the Borrower will be in compliance with the requirements of Clause 15 immediately following the making of the Advance; and

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

		
	9.2
	Waiver of conditions precedent.  If the Majority Lenders, at their discretion, permit an Advance to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied, the Borrower shall ensure that those conditions are satisfied within 5 Business Days after the Drawdown Date relating to that Advance (or such longer period as the Agent may, with the authorisation of all Lenders, specify).

		
	10
	REPRESENTATIONS AND WARRANTIES

		
	10.1
	General.  The Borrower represents and warrants to each Creditor Party as follows.

		
	10.2
	Status.  The Borrower is duly incorporated and validly existing and in good standing under the laws of the Republic of the Marshall Islands.

		
	10.3
	Ownership of the Guarantors.  The Borrower is the ultimate beneficial owner of all the issued share capital and voting rights in respect of each Guarantor free of Security Interests save for the Security Interests created pursuant to the Finance Documents and Security Interests created in connection with the Existing Facility Agreement over the share capital and voting rights of that Guarantor.

		
	10.4
	Corporate power.  The Borrower (or, in the case of paragraph (a), each Guarantor) has the corporate capacity, and has taken all corporate action and obtained all consents necessary for it:

		
	(a)
	to register the Ships in its ownership on the Approved Flag;

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

		
	(c)
	to borrow under this Agreement and to make all the payments contemplated by, and to comply with, the Finance Documents to which the Borrower is a party.

		
	10.5
	Consents in force.  All the consents referred to in Clause 10.4 remain in force and nothing has occurred which makes any of them liable to revocation.

		
	10.6
	Legal validity; effective Security Interests.  The Finance Documents to which the Borrower is a party, do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents):

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

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

subject to any relevant insolvency laws affecting creditors' rights generally.
		
	10.7
	No third party Security Interests.  Without limiting the generality of Clause 10.6, at the time of the execution and delivery of each Finance Document:

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

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

		
	10.8
	No conflicts.  The execution by the Borrower of each Finance Document, and the borrowing by the Borrower of the Loan, and its compliance with each Finance Document will not involve or lead to a contravention of:

		
	(a)
	any law or regulation; or

		
	(b)
	the constitutional documents of the Borrower; or

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

		
	10.9
	No withholding taxes.  All payments which the Borrower is liable to make under the Finance Documents may be made without deduction or withholding for or on account of any tax payable under any law of any Pertinent Jurisdiction.

		
	10.10
	No default.  No Event of Default or Latent Event of Default has occurred.

		
	10.11
	Information.  All information which has been provided in writing by or on behalf of the Borrower or any Security Party to any Creditor Party in connection with any Finance Document satisfied the requirements of Clause 11.5; all audited and unaudited accounts which have been so provided satisfied the requirements of Clause 11.7; and there has been no material adverse change in the financial position or state of affairs of the Borrower from that disclosed in the latest of those accounts.

		
	10.12
	No litigation.  No legal or administrative action involving the Borrower or any Security Party (including action relating to any alleged or actual breach of the ISM Code or the ISPS Code) has been commenced or taken or, to the Borrower's knowledge, is likely to be commenced or taken which, in either case, would be likely to have a Material Adverse Effect.

		
	10.13
	No rebates etc.  There is no agreement or understanding to allow or pay any rebate, premium, commission, discount or other benefit or payment (howsoever described) to the Borrower or any Security Party, from the Borrower or any Security Party in connection with the Ships.

		
	10.14
	Compliance with certain undertakings.  At the date of this Agreement, the Borrower is in compliance with Clauses 11.2, 11.4, 11.8 and 11.12.

		
	10.15
	Taxes paid.  The Borrower has paid and has procured that each Guarantor has paid all taxes applicable to, or imposed on or in relation to it, its business or the Ship owned or to be owned by it.

		
	10.16
	ISM Code, ISPS Code and Environmental Laws compliance.  All requirements of the ISM Code, the ISPS Code and all Environmental Laws as they relate to the Borrower, the Guarantors, any Approved Ship Manager, any Approved Sub-Manager and the Ships have been complied with.

		
	10.17
	No money laundering.  Without prejudice to the generality of Clause 2.3, in relation to the borrowing by the Borrower of the Loan, the performance and discharge of its obligations and liabilities under the Finance Documents, and the transactions and other arrangements affected or contemplated by the Finance Documents to which the Borrower is a party, the Borrower confirms (i) that it is acting for its own account;  (ii) that it will use the proceeds of the Loan for its own benefit, under its full responsibility and exclusively for the purposes specified in this Agreement;  and (iii) that the foregoing will not involve or lead to a contravention of any law, official requirement or other regulatory measure or procedure implemented to combat "money laundering" (as defined in Article 1 of Directive 2005/60/EC of the European Parliament and of the Council).

		
	10.18
	No immunity.  The Borrower is not and no assets of the Borrower are entitled to immunity on the grounds of sovereignty or otherwise from any legal action or proceedings (which shall include, without limitation, suit, attachment prior to judgment, execution or other enforcement).

		
	10.19
	Pari passu.  The obligations of the Borrower under the Finance Documents to which it is a party rank at least pari passu with all other unsecured indebtedness of the Borrower other than indebtedness mandatorily preferred by law.

		
	11
	GENERAL UNDERTAKINGS

		
	11.1
	General.  The Borrower undertakes with each Creditor Party to comply with the following provisions of this Clause 11 at all times during the Security Period except as the Agent may, with the authorisation of all the Lenders, otherwise permit.

		
	11.2
	Title; negative pledge.  The Borrower will:

		
	(a)
	own (directly or indirectly) and maintain ownership of the entire legal and beneficial interest in the entire issued share capital of each Guarantor free from all Security Interests and other interests and rights of every kind except for those created by the Finance Documents and Security Interests created in connection with the Existing Facility Agreement over the share capital of that Guarantor;

		
	(b)
	procure that each Guarantor will:

		
	(i)
	hold the legal title to, and own the entire beneficial interest in the Ship to be owned by it, the Insurances and Earnings relating to that Ship and the Earnings Account in its name, free from all Security Interests and other interests and rights of every kind, except for those created by the Finance Documents and the effect of assignments contained in the Finance Documents and except for Permitted Security Interests; and

		
	(ii)
	not create or permit to arise any Security Interest (except for Permitted Security Interests) over any other asset, present or future; and

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

		
	11.3
	No disposal of assets.  The Borrower will procure that no Guarantor will transfer, lease or otherwise dispose of:

		
	(a)
	any debt payable to it or any other right (present, future or contingent right) to receive a payment, including any right to damages or compensation except for demurrage claims and otherwise in the ordinary course of conducting its business as a ship owner ; or

		
	(b)
	make any substantial change to the nature of its business from that existing at the date of this Agreement.

		
	11.4
	No other liabilities or obligations to be incurred.  The Borrower will procure that no Guarantor, from the date of the Guarantee, will incur any liability or obligation (including, without limitation, any contingent liability) except liabilities and obligations:

		
	(a)
	under the Finance Documents to which it is a party;

		
	(b)
	reasonably incurred in the ordinary course of operating, upgrading, maintaining and chartering its Ship; and

		
	(c)
	in respect of Intercompany Loans made to the relevant Guarantor provided these comply with the requirements of Clause 11.19.

		
	11.5
	Information provided to be accurate.  All financial and other information which is provided in writing by or on behalf of the Borrower or any Security Party under or in connection with any Finance Document will be true, complete and not misleading and will not omit any material fact or consideration.

		
	11.6
	Provision of financial statements.  The Borrower will send to the Agent:

		
	(a)
	as soon as possible, but in no event later than 120 days after the end of each financial year of the Borrower, the audited consolidated accounts of the Borrower and its subsidiaries;

		
	(b)
	as soon as possible, but in no event later than 90 days after the end of each of the first three Accounting Periods in a calendar year, unaudited consolidated accounts of the Borrower and its subsidiaries which are certified as to their correctness by the chief financial officer of the Borrower;

		
	(c)
	a Compliance Certificate together with the annual reports that the Borrower delivers pursuant to paragraph (a) above and quarterly reports that the Borrower delivers in (b) above each certified by the chief financial officer of the Borrower; and

		
	(d)
	such other information and financial statements (including, without limitation, details of the operating performance, employment, positions and engagements of the Ships, annual budgets and projections) as may be requested by the Agent from time to time.

		
	11.7
	Form of financial statements.  All accounts (audited and unaudited) delivered under Clause 11.6 will:

		
	(a)
	be prepared in accordance with all applicable laws and IFRS consistently applied;

		
	(b)
	fairly represent the financial condition of the Borrower and its subsidiaries at the date of those accounts and of their profit for the period to which those accounts relate; and

		
	(c)
	fully disclose or provide for all significant liabilities of the Borrower and its subsidiaries.

		
	11.8
	Consents.  The Borrower will, and will procure that each Guarantor will, maintain in force and promptly obtain or renew, and will promptly send certified copies to the Agent of, all consents required:

		
	(a)
	for it to perform its obligations under any Finance  Document to which it is a party;

		
	(b)
	for the validity or enforceability of any Finance Document to which it is a party; and

		
	(c)
	in the case of each Guarantor, to continue to own and operate the Ship owned by it

and the Borrower will, and will procure that each Guarantor will, comply with the terms of all such consents.
		
	11.9
	Maintenance of Security Interests.  The Borrower will:

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

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

		
	11.10
	Notification of litigation.  The Borrower will provide the Agent with details of any legal action involving the Borrower, any Security Party or any Ship, its Earnings or its Insurances as soon as such action is instituted unless it is clear that the legal action cannot be considered material in the context of any Finance Document.

		
	11.11
	Chief Executive Office. The Borrower will maintain its chief executive office in the Principality of Monaco.

		
	11.12
	Confirmation of no default.  The Borrower will, within 2 Business Days after service by the Agent of a written request, serve on the Agent a notice which is signed by 2 directors of the Borrower and which:

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

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

The Agent may serve requests under this Clause 11.12 from time to time but only if asked to do so by a Lender or Lenders having Contributions exceeding 10 per cent. of the Loan or (if the Loan has not been made) Commitments exceeding 10 per cent of the Total Commitments; and this Clause 11.12 does not affect the Borrower's obligations under Clause 11.13.
		
	11.13
	Notification of default.  The Borrower will notify the Agent as soon as the Borrower becomes aware of:

		
	(a)
	the occurrence of an Event of Default or a Latent Event of Default; or

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

and will keep the Agent fully up‐to‐date with all developments.
		
	11.14
	Provision of further information.  The Borrower will, as soon as practicable after receiving the request, provide the Agent with any additional financial or other information relating to:

		
	(a)
	the financial condition, business and operations of the Borrower;

		
	(b)
	the Borrower, any Security Party, any Ship, its Earnings or its Insurances; or

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

which may be requested by the Agent, the Security Trustee, any Lender at any time and the Borrower shall promptly, provide such further information and/or documents as any Creditor Party (through the Agent) may request so as to enable such Creditor Party to comply with any laws applicable to it (including, without limitation, compliance with FATCA).
		
	11.15
	Provision of copies and translation of documents.  The Borrower will supply the Agent with a sufficient number of copies of the documents referred to above to provide 1 copy for each Creditor Party; and if the Agent so requires in respect of any of those documents, the Borrower will provide a certified English translation prepared by a translator approved by the Agent.

		
	11.16
	"Know your customer" checks.  The Borrower shall notify the Agent immediately if it becomes aware of any actual or intended change in its status or the status of any Security Party after the date of this Agreement.  If:

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

		
	(b)
	any change in the status of the Borrower or any Security Party after the date of this Agreement; or

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

obliges the Agent or any Lender (or, in the case of paragraph (c), any prospective new Lender) to comply with "know your customer" or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the request of the Agent or the Lender concerned supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or the Lender concerned (for itself or, in the case of the event described in paragraph (c), on behalf of any prospective new Lender) in order for the Agent, the Lender concerned or, in the case of the event described in paragraph (c), any prospective new Lender to carry out and be satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.
		
	11.17
	Compliance with laws. The Borrower shall comply and shall procure that each Guarantor shall comply in all material respects with all applicable laws, including, without limitation, all Environmental Laws and regulations relating thereto. 

		
	11.18
	Taxes.  The Borrower shall prepare and timely file all tax returns required to be filed by it and any member of the Group and pay and discharge all taxes imposed upon it and any member of the Group or in respect of any of its or any member of the Group's property and assets before the same shall become in default, as well as all lawful claims (including, without limitation, claims for labour, materials and supplies) which, if unpaid, might become a lien or any part thereof, except in each case, for any such taxes (a) as are being contested in good faith by appropriate proceedings and for which adequate reserves have been established, (b) as to which such failure to have paid does not create any risk of sale, forfeiture, loss, confiscation or seizure of a Ship or criminal liability, or (c) the failure of which to pay or discharge would not be likely to have a Material Adverse Effect.

		
	11.19
	Use of proceeds and Intercompany Loans.  The Borrower shall:

		
	(a)
	use the proceeds of each Advance to partially re-finance the Existing Facility Agreement and/or for general corporate purposes and where it on-lends part of the proceeds of each Advance directly or indirectly to the Guarantor which owns the relevant Ship, it shall procure that such Guarantor shall use the proceeds of such Advance solely as permitted pursuant to the terms of this Agreement; and

		
	(b)
	procure that any Intercompany Loan it provides whether directly or indirectly to a Guarantor pursuant to paragraph (a) above shall:

		
	(i)
	be fully subordinated to any and all obligations of the Guarantors and the rights of the Creditor Parties under the Finance Documents;

		
	(ii)
	not require the payment of interest prior to expiry of the Maturity Date;

		
	(iii)
	mature at least 1 year after the Maturity Date; and

		
	(iv)
	not be secured by any asset which is already, or is to be, the subject of a Security Interest created by the Borrower or any Security Party pursuant to any Finance Document;

		
	(c)
	furnish promptly to the Agent a true and complete copy of any instrument evidencing any Intercompany Loan, all other documents related thereto and a true and complete copy of each material amendment or other modification thereof; and

		
	(d)
	in respect of any such Intercompany Loan, execute and deliver to the Agent an Intercompany Loan Assignment and deliver to the Agent such other documents equivalent to those referred to in paragraphs 3, 4, and 6 of Part A of Schedule 3 as the Agent may require.

		
	12
	CORPORATE AND FINANCIAL UNDERTAKINGS

		
	12.1
	General.  The Borrower also undertakes with each Creditor Party to comply with the following provisions of this Clause 12 at all times during the Security Period except as the Agent may, with the authorisation of all the Lenders, otherwise permit.

		
	12.2
	Maintenance of status.  The Borrower will:

		
	(a)
	maintain its separate corporate existence and remain in good standing under the laws of the Republic of the Marshall Islands;

		
	(b)
	remain listed on the New York Stock Exchange; and

		
	(c)
	procure that each Guarantor shall maintain its separate corporate existence and remain in goodstanding under the laws of the Republic of the Marshall Islands.

		
	12.3
	Negative undertakings.  

		
	(a)
	The Borrower will not and will procure that no Guarantor shall:

		
	(i)
	change its name, its type of organisation or the nature of its business; or

		
	(ii)
	change its Fiscal Year; or 

		
	(iii)
	permit any act, event or circumstance to occur or arise which would or could result in a Change of Control of the Borrower or any Guarantor other than a Guarantor Disposal for the purposes of selling  or disposing of a Ship where the relevant prepayment is made in accordance with Clause 8.7 or give rise whether directly or indirectly to a Material Adverse Effect; or

		
	(iv)
	enter into any form of amalgamation, merge or de-merger or any form of reconstruction or reorganisation.

		
	(b)
	The Borrower will procure that no Guarantor shall:

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

		
	(A)
	a person who is directly or indirectly interested in the Borrower's or the relevant Guarantor's share or loan capital; or

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

or enter into any transaction with or involving such a person or company on terms which are, in any respect, less favourable to the Borrower or the relevant Guarantor than those which it could obtain in a bargain made at arms' length; or 
		
	(ii)
	issue, allot or grant any person a right to any shares in its capital or repurchase or reduce its issued share capital; or

		
	(iii)
	acquire any shares or other securities other than US or UK Treasury bills and certificates of deposit issued by major North American or European banks, or enter into any transaction in a derivative.

		
	12.4
	Dividends.

		
	(a)
	The Borrower may only pay a dividend or make any other form of distribution or effect any form of redemption, purchase or return of share capital provided that no Event of Default has occurred and is continuing at the time of the payment of such dividends or making of such distributions, redemptions, purchase or return or will result from the payment of such dividend or making of such distributions, redemptions, purchase or return; and

		
	(b)
	The Borrower will procure that no Guarantor shall pay a dividend or make any other form of distribution or effect any form of redemption, purchase or return of share capital if:

		
	(i)
	any Event of Default has occurred and is continuing at the time of the payment of such dividend or making of such other form of distribution or effecting of such redemption, purchase or return of share capital or will result from such payment or making of such other form of distribution or effecting of such redemption, purchase or return of share capital; or

		
	(ii)
	such dividend or other form of distribution or redemption, purchase or return of share capital  shall result in a breach of the financial covenants set out in Clauses 12.5, 12.6, 12.7 and 12.8.

		
	12.5
	Minimum liquidity.  The Borrower shall, at all times, maintain Cash and Cash Equivalents on a consolidated basis, including all amounts on deposit with any bank, of not less than the greater of (a) $25,000,000 or (b) $250,000 per ship which is time chartered by the Borrower, plus $500,000 per Fleet Vessel (the "Minimum Liquidity"), provided that:

		
	(a)
	for the purpose of this Clause 12.5, "Cash Equivalents" shall include unutilised and freely available amounts under the Facility (where no default or termination event has occurred and is continuing and there is no restriction on borrowing under such Facility) with a  maturity date in excess of 12 months after the date of the financial statements delivered pursuant to Clause 11.6; and

		
	(b)
	100 per cent. of the Minimum Liquidity shall at all times consist of Cash.

		
	12.6
	Minimum Consolidated Tangible Net Worth.  The Borrower shall maintain a Consolidated Tangible Net Worth of not less than $1,000,000,000 plus:

		
	(a)
	25 per cent. of the Borrower 's cumulative, positive consolidated net income for each Accounting Period commencing on or after 1 January 2016; and

		
	(b)
	50 per cent. of the Equity Proceeds realised from any issuance of Equity Interests in the Borrower occurring on or after 1 January 2016.

		
	12.7
	Maximum leverage.  The Borrower shall maintain a ratio of Net Debt to Consolidated Total Capitalisation of not more than 0.60 to 1.00, to be tested on the last day of each Accounting Period.

		
	12.8
	Minimum interest coverage. The Borrower shall maintain a ratio of Consolidated EBITDA to Consolidated Net Interest Expense greater than 2.50 to 1.00.  Such ratio shall be calculated on the last day of each Accounting Period on a trailing four quarter basis.

		
	12.9
	Material Changes in IFRS requirements.  If, at any time after the date of this Agreement, the IFRS requirements materially change so as to impact the financial covenants set out in this Clause 12 the Borrower shall notify the Agent and, if agreed between the Borrower and the Agent, this Agreement shall be amended and/or supplemented to reflect these changes.

		
	13
	INSURANCE

		
	13.1
	General. The Borrower also undertakes with each Creditor Party to procure that each Guarantor will comply with the following provisions of this Clause 13 (Insurance) at all times during the Security Period except as the Agent, acting with the authorisation of the Majority Lenders, may otherwise permit in writing.

		
	13.1
	Maintenance of obligatory insurances. The Borrower shall procure that each Guarantor shall keep the Ship owned by it insured at the expense of that Guarantor against:

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

		
	(b)
	war risks (including, without limitation, protection and indemnity war risks with a separate limit not less than hull value of the relevant Ship);

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

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

		
	13.2
	Terms of obligatory insurances. The Borrower shall procure that each Guarantor shall effect such insurances in respect of the Ship owned by it in such amounts in such currency and upon such terms and conditions as shall from time to time be approved in writing by the Security Trustee acting reasonably, but in any event as follows:

		
	(a)
	in Dollars;

		
	(b)
	in the case of fire and usual marine risks and war risks, on an agreed value basis in an amount equal to at least the higher of (i) an amount which when aggregated with the amount for which any other Ship then subject to a Mortgage, is insured, is equal to 120 per cent. of the Loan and (ii) the Fair Market Value of that Ship;

		
	(c)
	in the case of oil pollution liability risks, for an amount equal to the highest level of cover from time to time available under basic protection and indemnity club entry (with the International Group of Protection and Indemnity Clubs) and the international marine insurance market (currently at the time of entering this Agreement $1,000,000,000 for any one accident or occurrence);

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

		
	(e)
	in relation to war risks insurance, extended to cover piracy and terrorism where excluded under the fire and usual marine risks insurance;

		
	(f)
	on approved terms and conditions;

		
	(g)
	such other risks of whatever nature and howsoever arising in respect of which insurance would be maintained by a prudent owner of a vessel similar to that Ship; and

		
	(h)
	through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war risks and protection and indemnity risks associations which are members of the International Group of Protection and Indemnity Associations, and have an S&P rating of at least BBB- or a comparable rating by any other rating agency acceptable to the Security Trustee (acting on the instructions of the Majority Lenders).

		
	13.3
	Further protections for the Creditor Parties.  In addition to the terms set out in Clause 13.3 (Terms of obligatory insurances), the Borrower shall procure that:

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

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

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

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

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

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

		
	(g)
	the obligatory insurances shall provide that the obligatory insurances shall be primary without right of contribution from other insurances effected by the Security Trustee or any other Creditor Party;

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

		
	(i)
	the obligatory insurances shall provide that if any obligatory insurance is cancelled, or if any substantial change is made in the coverage which adversely affects the interest of the Security Trustee, or if any obligatory insurance is allowed to lapse for non‐payment of premium, such cancellation, charge or lapse shall only be effective against the Security Trustee 14 days (or 7 days in the case of war risks) after receipt by the Security Trustee of prior written notice from the insurers of such cancellation, change or lapse.

		
	13.4
	Renewal of obligatory insurances.  The Borrower shall procure that each Guarantor shall:

		
	(a)
	at least 7 days before the expiry of any obligatory insurance effected by it:

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

		
	(ii)
	seek the Security Trustee's approval to the matters referred to in paragraph (i);

		
	(b)
	at least 5 days before the expiry of any obligatory insurance, renew that obligatory insurance in accordance with the Security Trustee's approval pursuant to paragraph (a); and

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

		
	13.5
	Copies of policies; letters of undertaking.  The Borrower shall procure that each Guarantor shall ensure that all approved brokers provide the Security Trustee with pro forma copies of all cover notes and policies relating to the obligatory insurances which they are to effect or renew and of a letter or letters of undertaking in a form required by the Security Trustee and including undertakings by the approved brokers that:

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

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

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

		
	(d)
	they will notify the Security Trustee, not less than 5 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal instructions from that Guarantor or its agents and, in the event of their receiving instructions to renew, they will promptly notify the Security Trustee of the terms of the instructions; and

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

		
	13.6
	Copies of certificates of entry; letters of undertaking.  The Borrower shall procure that each Guarantor shall ensure that any protection and indemnity and/or war risks associations in which the Ship owned by that Guarantor is entered provides the Security Trustee with:

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

		
	(b)
	a letter or letters of undertaking in such form as may be required by the Security Trustee.

		
	13.7
	Deposit of original policies.  The Borrower shall procure that each Guarantor shall ensure that all policies relating to obligatory insurances effected by it are deposited with the approved brokers through which the insurances are effected or renewed.

		
	13.8
	Payment of premiums.  The Borrower shall procure that each Guarantor shall punctually pay all premiums or other sums payable in respect of the obligatory insurances effected by it and produce all relevant receipts when so required by the Security Trustee.

		
	13.9
	Guarantees.  The Borrower shall procure that each Guarantor shall ensure that any guarantees required by a protection and indemnity or war risks association are promptly issued and remain in full force and effect.

		
	13.10
	Compliance with terms of insurances.  The Borrower shall procure that each Guarantor shall not do or omit to do (nor permit to be done or not to be done) any act or thing which would or might render any obligatory insurance invalid, void, voidable or unenforceable or render any sum payable under an obligatory insurance repayable in whole or in part; and, in particular:

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

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

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

		
	(d)
	no Guarantor shall employ the Ship owned by it, or allow it to be employed, otherwise than in conformity with the terms and conditions of the obligatory insurances, without first obtaining the consent of the insurers and complying with any requirements (as to extra premium or otherwise) which the insurers specify.

		
	13.11
	Alteration to terms of insurances.  The Borrower shall procure that each Guarantor shall neither make nor agree to any material alteration to the terms of any obligatory insurance or waive any right relating to any obligatory insurance.

		
	13.12
	Settlement of claims.  The Borrower shall not and shall procure that no Guarantor shall settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty, and shall do all things necessary and provide all documents, evidence and information to enable the Security Trustee to collect or recover any moneys which at any time become payable in respect of the obligatory insurances and shall do all things necessary to ensure such collection or recovery is made.

		
	13.13
	Provision of copies of communications.  The Borrower shall procure that each Guarantor shall provide the Security Trustee, at the time of each such communication, copies of all material written communications between the relevant Guarantor and:

		
	(a)
	the approved insurance brokers; 

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

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

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

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

		
	13.14
	Provision of information and further undertakings.  In addition, the Borrower shall procure that each Guarantor shall promptly provide the Security Trustee (or any persons which it may designate) with any information which the Security Trustee (or any such designated person) requests for the purpose of:

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

		
	(b)
	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.16 or dealing with or considering any matters relating to any such insurances,

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

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

and the Borrower shall, forthwith upon demand, indemnify the Security Trustee in respect of all fees and other expenses incurred by or for the account of the Security Trustee in connection with any such report as is referred to in paragraph (a).
		
	13.15
	Mortgagee's interest and additional perils insurances.  The Security Trustee shall be entitled from time to time to effect, maintain and renew all or any of the following insurances in such amounts, on such terms, through such insurers and generally in such manner as the Majority Lenders may from time to time consider appropriate:

		
	(a)
	a mortgagee's interest insurance providing for the indemnification of the Creditor Parties for any losses under or in connection with any Finance Document (in an aggregate amount of up to 120 per cent. of the Loan) which directly or indirectly result from loss of or damage to a Ship or a liability of that Ship or of the Guarantor owning that Ship, being a loss or damage which is prima facie covered by an obligatory insurance but in respect of which there is a non-payment (or reduced payment) by the underwriters by reason of, or on the basis of an allegation concerning:

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

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

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

		
	(b)
	a mortgagee's interest additional perils insurance providing for the indemnification of the Creditor Parties against, among other things, any possible losses or other consequences of any Environmental Claim, including the risk of expropriation, arrest or any form of detention of a Ship, the imposition of any Security Interest over that Ship and/or any other matter capable of being insured against under a mortgagee's interest additional perils policy whether or not similar to the foregoing, and in an aggregate amount of up to 110 per cent. of the Loan,

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

		
	1
	SHIP COVENANTS

		
	1.1
	General.  The Borrower also undertakes with each Creditor Party that it shall and that it shall procure that each Guarantor shall comply with the following provisions of this Clause 14 at all times during the Security Period except as the Agent, acting with the authorisation of the Majority Lenders, may otherwise permit in writing (and which shall not be unreasonably withheld or delayed in relation to Clause 14.2 (Ship's name and registration)).

		
	1.2
	Ship's name and registration.  The Borrower shall and shall procure that each Guarantor shall keep the Ship owned by it registered in its name under an Approved Flag; shall not do, omit to do or allow to be done anything as a result of which such registration might be cancelled or imperilled; and shall not change the name or port of registry of that Ship.

		
	1.3
	Repair and classification.  The Borrower shall, and shall procure that each Guarantor, each Approved Ship Manager and any Approved Sub-Manager shall, keep the Ship owned by that Guarantor in a good and safe condition and state of repair:

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

		
	(b)
	so as to maintain the highest class free of overdue recommendations and conditions, an Approved Classification Society; and

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

and the Agent shall be given power of attorney in the form attached as Schedule 8 (Power of Attorney) to act on behalf of that Guarantor in order to, inspect the class records and any files held by the Approved Classification Society and to require the Approved Classification Society to provide the Agent or any of its nominees with any information, document or file, it might request and the Approved Classification Society shall be fully entitled to rely hereon without any further inquiry. 
		
	1.4
	Classification society undertaking.  The Borrower shall procure that each Guarantor shall instruct the Approved Classification Society in relation to its Ship (and in the case of dual classification, only the primary classification society):

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

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

		
	(c)
	to notify the Security Trustee immediately in writing if the Approved Classification Society:

		
	(i)
	receives notification from that Guarantor or any person that that Ship's Approved Classification Society is to be changed; or

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

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

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

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

		
	1.5
	Modification.  The Borrower shall procure that neither Guarantor shall make any modification or repairs to, or replacement of, its Ship or equipment installed on it which would or might materially alter the structure, type or performance characteristics of that Ship or materially reduce its value.

		
	1.6
	Removal of parts.  The Borrower shall procure that neither Guarantor shall remove any material part of its Ship, or any item of equipment installed on that Ship unless the part or item so removed is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest or any right in favour of any person other than the Security Trustee and becomes on installation on that Ship the property of that Guarantor and subject to the security constituted by the relevant Mortgage Provided that a Guarantor may install equipment owned by a third party if the equipment can be removed without any risk of damage to the Ship owned by it.

		
	1.7
	Surveys.  The Borrower shall procure that each Guarantor shall submit the Ship owned by it regularly to all periodical or other surveys which may be required for classification purposes and, if so required by the Security Trustee provide the Security Trustee, with copies of all technical survey reports.

		
	1.8
	Inspection.  The Borrower shall procure that each Guarantor shall permit the Security Trustee (by surveyors or other persons appointed by it for that purpose) to board the Ship owned by that Guarantor at all reasonable times, with reasonable notice to the relevant Guarantor, always without interfering with the trading of the Ship, to inspect its condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections at the Borrower's expense, and if the inspector or surveyor appointed by the Security Trustee under this Clause is of the opinion that there are any technical, commercial or operational actions being undertaken or omitted to be undertaken by the Guarantor which is the owner of that Ship, the Approved Ship Manager or the Approved Sub-Manager (as the case may be) which adversely affect the operation or value of that Ship, the Borrower shall procure that the Guarantors shall forthwith (at the Borrower’s or applicable Guarantor's expense) on the Security Trustee's demand remedy such action or inaction and provide the Security Trustee with evidence that it has or the Guarantors have taken such remedial action. Provided always that unless an Event of Default has occurred or that Ship's Approved Classification Society has issued a recommendation or condition affecting that Ship's class, the Borrower shall not have to pay for more than 1 inspection per Ship in each calendar year.  Further, the Security Trustee shall use reasonable efforts not to interfere with the operation of that Ship when exercising its rights under this Clause 14 (Ship Covenants).

		
	1.9
	Prevention of and release from arrest.  The Borrower shall procure that each Guarantor shall promptly discharge:

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

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

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

and, forthwith upon receiving notice of the arrest of that Ship, or of its detention in exercise or purported exercise of any lien or claim, the Borrower shall procure its release by providing bail or otherwise as the circumstances may require.
		
	1.10
	Compliance with laws etc.  The Borrower shall procure that each Guarantor shall:

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

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

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

		
	1.11
	Provision of information.  The Borrower shall procure that each Guarantor shall promptly provide the Security Trustee with any information which it requests regarding:

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

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

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

		
	(d)
	any towages and salvages; and

		
	(e)
	its compliance, the Approved Ship Manager's and/or Approved Sub-Manager's compliance and the compliance of the Ship owned by it with the ISM Code and the ISPS Code,

and, upon the Security Trustee's request, provide copies of any current charter relating to that Ship, of any current charter guarantee and copies of each Guarantor's, the Approved Ship Manager's and/or Approved Sub-Manager's (as applicable) Document of Compliance, SMC and the ISSC.
		
	1.12
	Notification of certain events.  The Borrower shall procure that each Guarantor shall:

		
	(a)
	before entering into any Assignable Charter, notify the Agent and provide copies of any draft charter relating to its Ship and, if applicable, any draft charter guarantee and that Guarantor shall be entitled to enter into such charter without the consent of the Creditor Parties Provided that:

		
	(i)
	that Guarantor executes in favour of the Security Trustee a specific assignment of all its rights, title and interest in and to such charter and any charter guarantee in the form of a Charterparty Assignment;

		
	(ii)
	each Guarantor sends to the charterer and any charter guarantor a notice of the specific assignment of such charter and charter guarantee substantially in the form included in the relevant Charterparty Assignment and will use best commercial efforts to procure that the charterer and any charter guarantor provides to the Security Trustee an acknowledgment of the notice of assignment and, in the case where such charter is a demise charter, the relevant Guarantor shall use best commercial efforts to procure that the relevant charterer undertakes to the Security Trustee (1) to comply with all of that Guarantor's undertakings with regard to the employment, insurances, operation, repairs and maintenance of its Ship contained in this Agreement, the Guarantee, the Mortgage and the General Assignment in relation to that Ship and (2) the relevant charterer and any charter guarantor undertakes to provide an assignment of its interest in the insurances of the Ship in the form of a Charterparty Assignment; 

		
	(iii)
	the relevant Guarantor provides certified true and complete copies of the charter relating to its Ship and of the current charter guarantee, if any, immediately after its execution; 

		
	(iv)
	the Agent's receipt of a copy of the charter and any charter guarantee and its failure or neglect to act, delay or acquiescence in connection with the relevant Guarantor's entering into such charter shall not in any way constitute an acceptance by the Agent of whether or not the Earnings under the charter are sufficient to meet the debt service requirements under this Agreement nor shall it in any way affect the Agent's or the Security Trustee's entitlement to exercise its rights under the Finance Documents pursuant to Clause 19 upon the occurrence of an Event of Default arising as a result of an act or omission of the charterer or charter guarantor; and

		
	(v)
	each Guarantor delivers to the Agent such other documents equivalent to those referred to at paragraphs 2, 3, 4, 5, 6, 7 and 8 of Schedule 3, Part A as the Agent may require; and

		
	(b)
	immediately notify the Security Trustee by letter, of:

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

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

		
	(iii)
	any requirement, condition or recommendation made by any insurer or the Approved Classification Society or by any competent authority which is not  complied with within the specified time;

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

		
	(v)
	any intended dry docking of the Ship owned by it;

		
	(vi)
	any Environmental Claim made against either Guarantor in connection with its Ship, or any Environmental Incident;

		
	(vii)
	any claim for breach of the ISM Code or the ISPS Code being made against either Guarantor, the Approved Ship Manager, the Approved Sub-Manager or otherwise in connection with the Ship owned by it; 

		
	(viii)
	its intention to de-activate or lay up its Ship; or

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

and the Borrower shall procure that the Guarantor shall keep the Security Trustee advised in writing on a regular basis and in such detail as the Security Trustee shall require of that Guarantor's, the Approved Ship Manager's, the Approved Sub-Manager's or any other person's response to any of those events or matters.
		
	1.13
	Restrictions on chartering, appointment of managers etc.  The Borrower shall procure that neither Guarantor shall, in relation to the Ship owned by it:

		
	(a)
	enter into any charter in relation to that Ship under which more than two months' hire (or the equivalent) is payable in advance;

		
	(b)
	charter that Ship otherwise than on bona fide arm's length terms at the time when that Ship is fixed;

		
	(c)
	appoint a manager of that Ship other than the Approved Ship Manager or an Approved Sub-Manager or agree to any material alteration to the terms of the Approved Ship Manager's or Approved Sub-Manager's appointment save that changes to termination and insurance provisions shall always be permitted provided they do not affect the security granted to the Security Trustee; or

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

		
	1.14
	Notice of Mortgage.  The Borrower shall procure that each Guarantor shall keep the Mortgage relative to its Ship registered against that Ship as a valid first preferred or, as the case may be, priority mortgage, carry on board that Ship a certified copy of that Mortgage and place and maintain in a conspicuous place in the navigation room and the Master's cabin of that Ship a framed printed notice stating that that Ship is mortgaged by that Guarantor to the Security Trustee.

		
	1.15
	Sharing of Earnings.  The Borrower shall procure that neither Guarantor shall enter into any agreement or arrangement for the sharing of any Earnings (other than (i) any profit sharing agreement with a charterer which takes effect above an agreed minimum charter hire rate payable to the relevant Guarantor under a charter to which that Guarantor is a party and (ii) any Approved Pooling Arrangement, in either case, on bona fide arm's length terms).

		
	1.16
	ISPS Code.  The Borrower shall procure that each Guarantor shall comply with the ISPS Code and in particular, without limitation, shall:

		
	(a)
	procure that the Ship owned by it and the company responsible for that Ship's compliance with the ISPS Code comply with the ISPS Code; and

		
	(b)
	maintain for that Ship an ISSC; and

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

		
	1.17
	Green Passport.  The Borrower shall procure that each Guarantor has obtained a Green Passport, or equivalent document acceptable to the Agent, within 30 days from the Drawdown Date of the relevant Advance in respect of the Ship owned by it which remains valid throughout the Security Period.

		
	2
	SECURITY COVER

		
	2.1
	Minimum required security cover.  Clause 15.2 applies if the Agent notifies the Borrower that:

		
	(a)
	the Fair Market Value of the Ships then subject to a Mortgage; plus

		
	(b)
	the net realisable value of any additional security previously provided under this Clause 15,

is below 140 per cent. of the Loan.
		
	2.2
	Provision of additional security; prepayment.  If the Agent serves a notice on the Borrower under Clause 15.1, the Borrower shall within 30 days after the date on which the Agent's notice is served, either:

		
	(a)
	prepay such part (at least) of the Loan as will eliminate the shortfall; or 

		
	(b)
	provide, or ensure that a third party provides, additional security which, in the opinion of all of the Lenders acting in their absolute discretion, has a net realisable value at least equal to the shortfall and is documented in such terms as the Agent may, with the authorisation of all of the Lenders, approve or require and, for this purpose, it is agreed that acceptable additional security shall include cash collateral in Dollars valued at par.

For the avoidance of doubt, amounts prepaid pursuant to this Clause shall be applied in accordance with Clause 8.11.
		
	2.3
	Valuation of Ship.  The market value of a Ship at any date is that shown by:

		
	(a)
	the arithmetic average of 2 valuations each prepared by an Approved Broker selected by the Agent;

		
	(b)
	as at a date not more than 30 days prior to the date such valuation is delivered to the Agent by such Approved Broker;

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

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

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

		
	2.4
	Value of additional vessel security.  The net realisable value of any additional security which is provided under Clause 15.2 and which consists of a Security Interest over a vessel shall be that shown by a valuation complying with the requirements of Clause 15.2.

		
	2.5
	Valuations binding.  Any valuation under Clause 15.2, 15.3 or 15.4 shall be binding and conclusive as regards the Borrower, as shall be any valuation which the Majority Lenders make of any additional security which does not consist of or include a Security Interest.

		
	2.6
	Provision of information.  The Borrower shall promptly provide the Agent and any Approved Broker acting under Clause 15.3 or 15.4 with any information which the Agent or the Approved Broker may request for the purposes of the valuation; and, if the Borrower fails to provide the information by the date specified in the request, the valuation may be made on any basis and assumptions which the Approved Broker or the Lenders (or the expert appointed by them) consider prudent.

		
	2.7
	Payment of valuation expenses.  Without prejudice to the generality of the Borrower's obligations under Clauses 20.2, 20.3 and 20.4, the Borrower shall, subject to Clause 15.8, on demand, pay the Agent the amount of the fees and expenses of any Approved Broker instructed by the Agent under this Clause and all legal and other expenses incurred by any Creditor Party in connection with any matter arising out of this Clause 15.

		
	2.8
	Frequency of valuations

		
	(a)
	The Borrower shall provide the valuations of each Ship required pursuant to paragraph 12 of Part B of Schedule 3 at the Borrower's expense;

		
	(b)
	the Borrower shall provide to the Agent 2 valuations during each half of each Fiscal Year of the Borrower commencing on 1 January 2017 (such valuations to be attached to the Compliance Certificates for the relevant fiscal quarter to be provided by the Borrower) setting forth the Fair Market Value of each Ship in each case at the cost of the Borrower save that the Borrower shall not be required to pay for more than 2 sets of valuations of each Ship in each calendar year unless an Event of Default has occurred and is continuing or any valuation obtained would entitle the Agent to serve a notice pursuant to Clause 15.1 in which case such valuations required by the Agent shall be for the cost of the Borrower; and

		
	(c)
	the Agent shall be entitled, at its own expense, to obtain valuations of each Ship other than those referred to in paragraphs (a) and (b) above as often as it may request.

		
	2.9
	Application of prepayment.  Clause 8 shall apply in relation to any prepayment pursuant to Clause 15.2.

		
	2.10
	Release of Additional Security.  It is agreed that where the Borrower or a third party has provided additional security pursuant to Clause 15.2 the Borrower is entitled to request the release of such additional security at its expense at any time following a testing of compliance by the Borrower of the minimum required security cover under Clause 15.1. Where the Borrower is shown to be in compliance with such minimum required security cover without including the additional security within the calculation and where the Borrower is in compliance with the minimum required security cover under Clause 15.1, such additional security shall be released at the Borrower's cost.

		
	3
	PAYMENTS AND CALCULATIONS

		
	3.1
	Currency and method of payments.  All payments to be made by the Lenders or by the Borrower and any Security Party under a Finance Document shall be made to the Agent or to the Security Trustee, in the case of an amount payable to it:

		
	(a)
	by not later than 11.00 a.m. (London time) on the due date;

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

		
	(c)
	in the case of an amount payable by a Lender to the Agent or by the Borrower or another Security Party to the Agent or any Lender, to an account of the Agent as the Agent may from time to time notify to the Borrower and the other Creditor Parties, or to such other account with such other bank as the Agent may from time to time notify to the Borrower and the other Creditor Parties; and

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

		
	3.2
	Payment on non-Business Day.  If any payment by the Borrower under a Finance Document would otherwise fall due on a day which is not a Business Day:

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

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

and interest shall be payable during any extension under paragraph (a) at the rate payable on the original due date.
		
	3.3
	Basis for calculation of periodic payments.  All interest and any other payments under any Finance Document which are of an annual or periodic nature shall accrue from day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year.

		
	3.4
	Distribution of payments to Creditor Parties.  Subject to Clauses 16.5, 16.6 and 16.7:

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

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

		
	3.5
	Permitted deductions by Agent.  Notwithstanding any other provision of this Agreement or any other Finance Document, the Agent may, before making an amount available to a Lender, deduct and withhold from that amount any sum which is then due and payable to the Agent from that Lender under any Finance Document or any sum which the Agent is then entitled under any Finance Document to require that Lender to pay on demand.

		
	3.6
	Agent only obliged to pay when monies received.  Notwithstanding any other provision of this Agreement or any other Finance Document, the Agent shall not be obliged to make available to the Borrower or any Lender any sum which the Agent is expecting to receive for remittance or distribution to the Borrower or that Lender until the Agent has satisfied itself that it has received that sum.

		
	3.7
	Refund to Agent of monies not received.  If and to the extent that the Agent makes available a sum to the Borrower or a Lender, without first having received that sum, the Borrower or the Lender concerned shall, on demand:

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

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

		
	3.8
	Agent may assume receipt.  Clause 16.7 shall not affect any claim which the Agent has under the law of restitution, and applies irrespective of whether the Agent had any form of notice that it had not received the sum which it made available.

		
	3.9
	Creditor Party accounts.  Each Creditor Party shall maintain accounts showing the amounts owing to it by the Borrower and each Security Party under the Finance Documents and all payments in respect of those amounts made by the Borrower and any Security Party.

		
	3.10
	Agent's memorandum account.  The Agent shall maintain a memorandum account showing the amounts advanced by the Lenders and all other sums owing to the Agent, the Security Trustee and each Lender from the Borrower and each Security Party under the Finance Documents and all payments in respect of those amounts made by the Borrower and any Security Party.

		
	3.11
	Accounts prima facie evidence.  If any accounts maintained under Clauses 16.9 and 16.10 show an amount to be owing by the Borrower or a Security Party to a Creditor Party, those accounts shall be prima facie evidence that that amount is owing to that Creditor Party.

		
	4
	APPLICATION OF RECEIPTS

		
	4.1
	Normal order of application.  Except as any Finance Document may otherwise provide, any sums which are received or recovered by any Creditor Party under or by virtue of any Finance Document shall be applied:

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

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

		
	(ii)
	secondly, in or towards satisfaction of any and all amounts of interest or default interest payable to the Creditor Parties under the Finance Documents; and

		
	(iii)
	thirdly, in or towards satisfaction of the Loan;

		
	(b)
	SECONDLY: in retention of an amount equal to any amount not then due and payable under any Finance Document but which the Agent, by notice to the Borrower, the Security Parties and the other Creditor Parties, states in its opinion will or may become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the provisions of Clause 17.1(a);

		
	(c)
	THIRDLY: any surplus shall be paid to the Borrower or to any other person appearing to be entitled to it.

		
	4.2
	Variation of order of application.  The Agent may, with the authorisation of the Lenders, by notice to the Borrower, the Security Parties and the other Creditor Parties provide for a different manner of application from that set out in Clause 17.1 either as regards a specified sum or sums or as regards sums in a specified category or categories.

		
	4.3
	Notice of variation of order of application.  The Agent may give notices under Clause 17.2 from time to time; and such a notice may be stated to apply not only to sums which may be received or recovered in the future, but also to any sum which has been received or recovered on or after the third Business Day before the date on which the notice is served.

		
	4.4
	Appropriation rights overridden.  This Clause 17 and any notice which the Agent gives under Clause 17.2 shall override any right of appropriation possessed, and any appropriation made, by the Borrower or any Security Party.

		
	5
	APPLICATION OF EARNINGS

		
	5.1
	Payment of Earnings.  The Borrower undertakes with each Creditor Party to ensure that, throughout the Security Period (subject only to the provisions of the General Assignment), all the Earnings of each Ship are paid to the Earnings Account for that Ship, at all times whilst such Ship is subject to a Mortgage.

		
	5.2
	Application of Earnings.  The Borrower undertakes with the Lenders to procure that money from time to time credited to, or for the time being standing to the credit of, an Earnings Account shall, unless and until an Event of Default shall have occurred and is continuing (whereupon the provisions of Clause 17.1 shall be and become applicable), be freely available to the Borrower.

		
	5.3
	Location of accounts.  The Borrower shall promptly:

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

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

		
	5.4
	Debits for expenses etc.  The Agent shall be entitled (but not obliged) from time to time to debit any Earnings Account without prior notice in order to discharge any amount due and payable under Clause 20 or 21 to a Creditor Party or payment of which any Creditor Party has become entitled to demand under Clause 20 or 21.

		
	5.5
	Borrower's obligations unaffected.  The provisions of this Clause 18 do not affect:

		
	(a)
	the liability of the Borrower to make payments of principal and interest on the due dates; or

		
	(b)
	any other liability or obligation of the Borrower or any Security Party under any Finance Document.

		
	6
	EVENTS OF DEFAULT

		
	6.1
	Events of Default.  An Event of Default occurs if:

		
	(a)
	the Borrower or any Security Party fails to pay when due any sum payable under a Finance Document or under any document relating to a Finance Document unless its failure to pay is caused by a Disruption Event and payment is made within 3 Business Days of its due date; or

		
	(b)
	any breach occurs of Clause 9.2, 11.2, 11.3, 12.5, 12.6, 12.7, 12.8 and 15.2; or

		
	(c)
	any breach by the Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach covered by paragraphs (a) or (b)) which, in the opinion of the Majority Lenders, is capable of remedy, and such default continues unremedied 20 days after written notice from the Agent requesting action to remedy the same; or

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

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

		
	(f)
	any of the following occurs in relation to any Financial Indebtedness of the Borrower on a consolidated basis exceeding $10,000,000 in aggregate or, in the case of any Security Party, $2,500,000 (or in either case, the equivalent in any other currency):

		
	(i)
	any Financial Indebtedness of that Relevant Person is not paid when due; or

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

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

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

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

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

		
	(i)
	a Relevant Person becomes unable to pay its debts as they fall due; or

		
	(ii)
	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress in respect of a sum of, or sums aggregating, $10,000,000 in the case of the Borrower or $2,500,000 in the case of any Security Party or more or the equivalent in another currency; or

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

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

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

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

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

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

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

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

		
	(xi)
	in a Pertinent Jurisdiction other than England, any event occurs, any proceedings are opened or commenced or any step is taken which, in the opinion of the Lenders acting reasonably is similar to any of the foregoing.

		
	(h)
	any litigation, arbitration, administrative, governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened against a Relevant Person or its assets which has, will have or may have a Material Adverse Effect;

		
	(i)
	a Finance Document is amended, terminated, cancelled or suspended for any reason except with the prior written consent of the Agent, acting with the authorisation of all the Lenders;

		
	(j)
	the Borrower ceases or suspends carrying on its business or a part of its business which is material in the context of this Agreement; or

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

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

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

		
	(l)
	any consent necessary to enable any Guarantor to own, operate or charter the Ship owned by it or on the Approved Flag or to enable the Borrower, such Guarantor or any other Security Party to comply with any provision which all the Lenders consider material of a Finance Document, to which it is a party is not granted, expires without being renewed, is revoked or becomes liable to revocation or any condition of such a consent is not fulfilled; or

		
	(m)
	any failure to change the flag state of a Ship after written notice from the Agent requesting a flag change as a result of governmental and/or political unrest which may in the Agent's opinion have a Material Adverse Effect; or

		
	(n)
	any arrest, capture, seizure or detention of a Ship unless it is within 30 Business Days redelivered to the full control of the Guarantor owning that Ship; or

		
	(o)
	any provision which all the Lenders consider material of a Finance Document proves to have been or becomes invalid or unenforceable, or a Security Interest created by a Finance Document proves to have been or becomes invalid or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security Interest or any other third party claim or interest and which in each case such default continues unremedied 15 days after written notice from the Agent requesting action to remedy the same; or

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

		
	(q)
	any of the Ships ceases to be employed by the relevant Approved Ship Manager on terms acceptable to the Agent or any of the circumstances described in Clause 19.1(g) or (j) occurs (mutatis mutandis) in relation to an Approved Ship Manager or an Approved Ship Manager or Approved Sub‐Manager breaches any provision of its Approved Ship Manager's Undertaking which the Agent considers material and the Borrower fails within a period of 15 days of it becoming aware of the occurrence of such circumstance or breach or of the receipt of a written notification from the Agent requesting the Borrower to remedy such circumstances or breach either to remedy such circumstances or breach or to substitute the relevant Approved Ship Manager or Approved Sub-Manager with another Approved Ship Manager or Approved Sub‐Manager which executes and delivers to the Security Trustee a replacement Approved Ship Manager's Undertaking; or

		
	(r)
	an event or circumstance occurs which has or is reasonably likely to have a Material Adverse Effect.

		
	6.2
	Actions following an Event of Default.  On, or at any time after, the occurrence of an Event of Default which is continuing:

		
	(a)
	the Agent may, and if so instructed by the Majority Lenders, the Agent shall:

		
	(i)
	serve on the Borrower a notice stating that all or part of the Commitments and of the other obligations of each Lender to the Borrower under this Agreement are cancelled; and/or

		
	(ii)
	serve on the Borrower a notice stating that all or part of the Loan together with accrued interest and all other amounts accrued or owing under this Agreement are immediately due and payable or are due and payable on demand; and/or

		
	(iii)
	take any other action which, as a result of the Event of Default or any notice served under paragraph (i) or (ii), the Agent and/or the Lenders are entitled to take under any Finance Document or any applicable law; and/or

		
	(b)
	the Security Trustee may, and if so instructed by the Agent, acting with the authorisation of all the Lenders, the Security Trustee shall take any action which, as a result of the Event of Default or any notice served under paragraph (a) (i) or (ii), the Security Trustee, the Agent and/or the Lenders are entitled to take under any Finance Document or any applicable law.

		
	6.3
	Termination of Commitments.  On the service of a notice under Clause 19.2(a)(i), the Commitments and all other obligations of each Lender to the Borrower under this Agreement shall be cancelled.

		
	6.4
	Acceleration of Loan.  On the service of a notice under Clause 19.2(a)(i), all or, as the case may be, the part of the Loan specified in the notice together with accrued interest and all other amounts accrued or owing from the Borrower or any Security Party under this Agreement and every other Finance Document shall become immediately due and payable or, as the case may be, payable on demand.

		
	6.5
	Multiple notices; action without notice.  The Agent may serve notices under Clauses 19.2(a)(i) and (ii) simultaneously or on different dates and it and/or the Security Trustee may take any action referred to in Clause 19.2 if no such notice is served or simultaneously with or at any time after the service of both or either of such notices.

		
	6.6
	Notification of Creditor Parties and Security Parties.  The Agent shall send to each Lender, the Security Trustee and each Security Party a copy or the text of any notice which the Agent serves on the Borrower under Clause 19.2; but the notice shall become effective when it is served on the Borrower, and no failure or delay by the Agent to send a copy or the text of the notice to any other person shall invalidate the notice or provide the Borrower or any Security Party with any form of claim or defence.

		
	6.7
	Creditor Party rights unimpaired.  Nothing in this Clause shall be taken to impair or restrict the exercise of any right given to individual Lenders under a Finance Document or the general law; and, in particular, this Clause is without prejudice to Clause 3.1.

		
	6.8
	Exclusion of Creditor Party liability.  No Creditor Party, and no receiver or manager appointed by the Security Trustee, shall have any liability to the Borrower or a Security Party:

		
	(a)
	for any loss caused by an exercise of rights under, or enforcement of a Security Interest created by, a Finance Document or by any failure or delay to exercise such a right or to enforce such a Security Interest; or

		
	(b)
	as mortgagee in possession or otherwise, for any income or principal amount which might have been produced by or realised from any asset comprised in such a Security Interest or for any reduction (however caused) in the value of such an asset,

except that this does not exempt a Creditor Party or a receiver or manager from liability for losses shown to have been directly and mainly caused by the dishonesty or the wilful misconduct of such Creditor Party's own officers and employees or ( as the case may be) such receiver's or manager's own partners or employees.
		
	6.9
	Relevant Persons.  In this Clause 19, a "Relevant Person" means the Borrower and any Security Party.

		
	6.10
	Interpretation.  In Clause 19.1(f) references to an event of default or a termination event include any event, howsoever described, which is similar to an event of default in a facility agreement or a termination event in a finance lease; and in Clause 19.1(g) "petition" includes an application.

		
	7
	FEES AND EXPENSES

		
	7.1
	Upfront fees.  The Borrower shall pay to the Agent on the date of this Agreement the following:

		
	(a)
	a structuring fee of $272,000, representing 0.8 per cent, of the Total Commitments; and

		
	(b)
	an arrangement fee of $187,000, representing 0.55 per cent, of the Total Commitments.

		
	7.2
	Costs of negotiation, preparation etc.  The Borrower shall pay to the Agent on its demand the amount of all expenses incurred by the Agent or the Security Trustee in connection with the negotiation, preparation, execution, syndication or registration of any Finance Document or any related document or with any transaction contemplated by a Finance Document or a related document including, without limitation, any legal fees (including VAT and disbursements) reasonably incurred by the Agent, Security Trustee, the Bookrunner and the Mandated Lead Arranger in this connection.

		
	7.3
	Costs of variations, amendments, enforcement etc.  The Borrower shall pay to the Agent, on the Agent's demand, for the account of the Creditor Party concerned, the amount of all expenses incurred by a Creditor Party in connection with:

		
	(a)
	any amendment or supplement to a Finance Document, or any proposal for such an amendment to be made;

		
	(b)
	any consent or waiver by the Lenders, the Majority Lenders or the Creditor Party concerned under or in connection with a Finance Document, or any request for such a consent or waiver;

		
	(c)
	the valuation of any security provided or offered under Clause 15 or any other matter relating to such security; or

		
	(d)
	any step taken by the Lender concerned with a view to the protection, exercise or enforcement of any right or Security Interest created by a Finance Document or for any similar purpose.

There shall be recoverable under paragraph (d) the full amount of all legal expenses, whether or not such as would be allowed under rules of court or any taxation or other procedure carried out under such rules.
		
	7.4
	Documentary taxes.  The Borrower shall promptly pay any tax payable on or by reference to any Finance Document, and shall, on the Agent's demand, fully indemnify each Creditor Party against any claims, expenses, liabilities and losses resulting from any failure or delay by the Borrower to pay such a tax.

		
	7.5
	Financial Services Authority fees.  The Borrower shall pay to the Agent, on the Agent's demand, for the account of the Lender concerned the amounts which the Agent from time to time notifies the Borrower that a Lender has notified the Agent to be necessary to compensate it for the cost attributable to its Contribution resulting from the imposition from time to time under or pursuant to the Bank of England Act 1998 and/or by the Bank of England and/or by the Financial Services Authority (or other United Kingdom governmental authorities or agencies) of a requirement to pay fees to the Financial Services Authority calculated by reference to liabilities used to fund its Contribution.

		
	7.6
	Certification of amounts.  A notice which is signed by 2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause 20 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

		
	8
	INDEMNITIES

		
	8.1
	Indemnities regarding borrowing and repayment of Loan.  The Borrower shall fully indemnify the Agent and each Lender on the Agent's demand and the Security Trustee on its demand in respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by that Creditor Party, or which that Creditor Party reasonably and with due diligence estimates that it will incur, as a result of or in connection with:

		
	(a)
	an Advance not being borrowed on the date specified in the Drawdown Notice relating to such Advance for any reason other than a default by the Lender claiming the indemnity;

		
	(b)
	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the last day of an Interest Period or other relevant period;

		
	(c)
	any failure (for whatever reason) by the Borrower to make payment of any amount due under a Finance Document on the due date or, if so payable, on demand (after giving credit for any default interest paid by the Borrower on the amount concerned under Clause 7);

		
	(d)
	the occurrence of an Event of Default or a Latent Event of Default and/or the acceleration of repayment of the Loan under Clause 19;

and in respect of any tax (other than any FATCA Deduction or a tax on its overall net income under the law of the jurisdiction in which that Creditor Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Creditor Party is treated as a resident for tax purposes) for which a Creditor Party is liable in connection with any amount paid or payable to that Creditor Party (whether for its own account or otherwise) under or in respect of any Finance Document.
		
	8.2
	Breakage costs.  Without limiting its generality, Clause 21.1 covers any claim, expense, liability or loss, including a loss of a prospective profit, incurred by a Lender:

		
	(a)
	in liquidating or employing deposits from third parties acquired or arranged to fund or maintain all or any part of its Contribution and/or any overdue amount (or an aggregate amount which includes its Contribution or any overdue amount); and

		
	(b)
	in terminating, or otherwise in connection with, any interest and/or currency swap or any other transaction entered into (whether with another legal entity or with another office or department of the Lender concerned) to hedge any exposure arising under this Agreement or that part which the Lender concerned determines is fairly attributable to this Agreement of the amount of the liabilities, expenses or losses (including losses of prospective profits) incurred by it in terminating, or otherwise in connection with, a number of transactions of which this Agreement is one.

		
	8.3
	Miscellaneous indemnities.  The Borrower shall fully indemnify each Creditor Party severally on their respective demands in respect of all claims, expenses, liabilities and losses which may be made or brought against or incurred by a Creditor Party, in any country, as a result of or in connection with:

		
	(a)
	any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Agent, the Security Trustee or any other Creditor Party or by any receiver appointed under a Finance Document; or

		
	(b)
	any other Pertinent Matter,

other than claims, expenses, liabilities and losses which are shown to have been directly and mainly caused by the dishonesty or wilful misconduct of the officers or employees of the Creditor Party concerned.
Without prejudice to its generality, this Clause 21.3 covers any claims, expenses, liabilities and losses which arise, or are asserted, under or in connection with any law relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law.
		
	8.4
	Currency indemnity.  If any sum due from the Borrower or any Security Party to a Creditor Party under a Finance Document or under any order or judgment relating to a Finance Document has to be converted from the currency in which the Finance Document provided for the sum to be paid (the "Contractual Currency") into another currency (the "Payment Currency") for the purpose of:

		
	(a)
	making or lodging any claim or proof against the Borrower or any Security Party, whether in its liquidation, any arrangement involving it or otherwise; or

		
	(b)
	obtaining an order or judgment from any court or other tribunal; or

		
	(c)
	enforcing any such order or judgment,

the Borrower shall indemnify the Creditor Party concerned against the loss arising when the amount of the payment actually received by that Creditor Party is converted at the available rate of exchange into the Contractual Currency.
In this Clause 21.4, the "available rate of exchange" means the rate at which the Creditor Party concerned is able at the opening of business (London time) on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the Payment Currency.
This Clause 21.4 creates a separate liability of the Borrower which is distinct from its other liabilities under the Finance Documents and which shall not be merged in any judgment or order relating to those other liabilities.
		
	8.5
	Mandatory Cost

The Borrower shall, on demand by the Agent, pay to the Agent for the account of the relevant Lender, such amount which any Lender certifies in a notice to the Agent to be its good faith determination of the amount necessary to compensate it for complying with:
		
	(a)
	in the case of a Lender lending from a Facility Office in a Participating Member State, the minimum reserve requirements (or other requirements having the same or similar purpose) of the European Central Bank or any other authority or agency which replaces all or any of its functions) in respect of loans made from that Facility Office; and 

		
	(b)
	in the case of any Lender lending from a Facility Office in the United Kingdom, any reserve asset, special deposit or liquidity requirements (or other requirements having the same or similar purpose) of the Bank of England (or any other governmental authority or agency) and/or paying any fees to the Financial Conduct Authority and/or the Prudential Regulation Authority (or any other governmental authority or agency which replaces all or any of their functions).

		
	8.6
	Certification of amounts.  A notice which is signed by 2 officers of a Creditor Party, which states that a specified amount, or aggregate amount, is due to that Creditor Party under this Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

		
	8.7
	Sums deemed due to a Lender.  For the purposes of this Clause 21, a sum payable by the Borrower to the Agent or the Security Trustee for distribution to a Lender shall be treated as a sum due to that Lender.

		
	9
	NO SET-OFF OR TAX DEDUCTION

		
	9.1
	No deductions.  All amounts due from the Borrower or any Security Party under a Finance Document shall be paid:

		
	(a)
	without any form of set‐off, cross-claim or condition; and

		
	(b)
	free and clear of any tax deduction except a tax deduction which the Borrower or such Security Party is required by law to make.

		
	9.2
	Grossing-up for taxes.  If the Borrower or any Security Party is required by law to make a tax deduction from any payment under a Finance Document (other than a FATCA Deduction):

		
	(a)
	the Borrower or such Security Party (as the case may be) shall notify the Agent as soon as it becomes aware of the requirement;

		
	(b)
	the Borrower or such Security Party (as the case may be) shall pay the tax deducted to the appropriate taxation authority promptly, and in any event before any fine or penalty arises; and

		
	(c)
	the amount due in respect of the payment shall be increased by the amount necessary to ensure that each Creditor Party receives and retains (free from any liability relating to the tax deduction) a net amount which, after the tax deduction, is equal to the full amount which it would otherwise have received.

		
	9.3
	Evidence of payment of taxes.  Within 1 month after making any tax deduction, the Borrower shall deliver to the Agent documentary evidence satisfactory to the Agent that the tax had been paid to the appropriate taxation authority.

		
	9.4
	Tax deduction.  In this Clause 22 "tax deduction" means any deduction or withholding for or on account of any present or future tax other than a FATCA Deduction.

		
	9.5
	FATCA Deduction.  Each party to this Agreement may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no party to this Agreement shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. Each party to this Agreement shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify the party to this Agreement to whom it is making the payment and, in addition, shall notify the Borrower, the Agent and the other Creditor Parties.

		
	9.6
	Stamp taxes.  The Borrower shall pay and, within 3 Business Days of demand, indemnify each Creditor Party against any cost, loss or liability which that Creditor Party incurs in relation to all stamp duty, registration and other similar taxes payable in respect of any Finance Document.

		
	9.7
	FATCA Information

		
	(a)
	Subject to paragraph (c) below, each Party shall, within 10 Business Days of a reasonable request by another Party:

		
	(i)
	confirm to that other Party whether it is:

		
	(A)
	a FATCA Exempt Party; or

		
	(B)
	not a FATCA Exempt Party;

		
	(ii)
	supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA; and

		
	(iii)
	supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party's compliance with any other law, regulation, or exchange of information regime.

		
	(b)
	If a Party confirms to another Party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

		
	(c)
	Paragraph (a) above shall not oblige any Creditor Party to do anything, and paragraph (a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

		
	(i)
	any law or regulation;

		
	(ii)
	any fiduciary duty; or

		
	(iii)
	any duty of confidentiality.

		
	(d)
	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with sub-paragraphs (i) or (ii) of paragraph (a) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

		
	9.8
	VAT

		
	(a)
	All amounts expressed to be payable under a Finance Document by any Party to a Creditor Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Creditor Party to any Party under a Finance Document and such Creditor Party is required to account to the relevant tax authority for the VAT, that Party must pay to such Creditor Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and such Creditor Party must promptly provide an appropriate VAT invoice to that Party).

		
	(b)
	If VAT is or becomes chargeable on any supply made by any Creditor Party (the "Supplier") to any other Creditor Party (the "Recipient") under a Finance Document, and any Party other than the Recipient (the "Relevant Party") is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

		
	(i)
	(where the Supplier is the person required to account to the relevant tax authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where this sub-paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant tax authority which the Recipient reasonably determines relates to the VAT chargeable on that supply; and

		
	(ii)
	(where the Recipient is the person required to account to the relevant tax authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant tax authority in respect of that VAT.

		
	(c)
	Where a Finance Document requires any Party to reimburse or indemnify a Creditor Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Creditor Party for the full amount of such cost or expense, including such part of it as represents VAT, save to the extent that such Creditor Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

		
	(d)
	Any reference in this Clause 22.8 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to any member of such group at such time.

		
	(e)
	In relation to any supply made by a Creditor Party to any Party under a Finance Document, if reasonably requested by such Creditor Party, that Party must promptly provide such Creditor Party with details of that Party's VAT registration and such other information as is reasonably requested in connection with such Creditor Party's VAT reporting requirements in relation to such supply.

		
	10
	ILLEGALITY, ETC.

		
	10.1
	Illegality.  This Clause 23 applies if a Lender (the "Notifying Lender") notifies the Agent that it has become, or will with effect from a specified date, become:

		
	(a)
	unlawful or prohibited as a result of the introduction of a new law, an amendment to an existing law or a change in the manner in which an existing law is or will be interpreted or applied; or

		
	(b)
	contrary to, or inconsistent with, any regulation,

for the Notifying Lender to maintain or give effect to any of its obligations under this Agreement in the manner contemplated by this Agreement.
		
	10.2
	Notification of illegality.  The Agent shall promptly notify the Borrower, the Security Parties, the Security Trustee and the other Lenders of the notice under Clause 23.1 which the Agent receives from the Notifying Lender.

		
	10.3
	Prepayment; termination of Commitment.  On the Agent notifying the Borrower under Clause 23.2, the Notifying Lender's Commitment shall terminate; and thereupon or, if later, on the date specified in the Notifying Lender's notice under Clause 23.1 as the date on which the notified event would become effective the Borrower shall prepay the Notifying Lender's Contribution in accordance with Clause 8.

		
	10.4
	Mitigation.  If circumstances arise which would result in a notification under Clause 23.1 then, without in any way limiting the rights of the Notifying Lender under Clause 23.3, the Notifying Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement and the Finance Documents to another office or financial institution not affected by the circumstances but the Notifying Lender shall not be under any obligation to take any such action if, in its opinion, to do would or might:

		
	(a)
	have an adverse effect on its business, operations or financial condition; or

		
	(b)
	involve it in any activity which is unlawful or prohibited or any activity that is contrary to, or inconsistent with, any regulation; or

		
	(c)
	involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage.

		
	11
	INCREASED COSTS

		
	11.1
	Increased costs.  This Clause 24 applies if a Lender (the "Notifying Lender") notifies the Agent that the Notifying Lender considers that as a result of:

		
	(a)
	the introduction or alteration after the date of this Agreement of a law or an alteration after the date of this Agreement in the manner in which a law is interpreted or applied (disregarding any effect which relates to the application to payments under this Agreement of a tax on the Notifying Lender's overall net income); or

		
	(b)
	the effect of complying with any law or regulation (including any which relates to capital adequacy or liquidity controls or which affects the manner in which the Notifying Lender allocates capital resources to its obligations under this Agreement) which is introduced, or altered, or the interpretation or application of which is altered, after the date of this Agreement; or

		
	(c)
	the implementation or application of or compliance with any Basel III Regulation, CRD IV and CRR, 

the Notifying Lender (or a parent company of it) has incurred or will incur an "increased cost".
		
	11.2
	Meaning of "increased costs".  In this Clause 24, "increased costs" means, in relation to a Notifying Lender:

		
	(a)
	an additional or increased cost incurred as a result of, or in connection with, the Notifying Lender having entered into, or being a party to, this Agreement or having taken an assignment of rights under this Agreement, of funding or maintaining its Commitment or Contribution or performing its obligations under this Agreement, or of having outstanding all or any part of its Contribution or other unpaid sums;

		
	(b)
	a reduction in the amount of any payment to the Notifying Lender under this Agreement or in the effective return which such a payment represents to the Notifying Lender or on its capital;

		
	(c)
	an additional or increased cost of funding all or maintaining all or any of the advances comprised in a class of advances formed by or including the Notifying Lender's Contribution or (as the case may require) the proportion of that cost attributable to the Contribution; or

		
	(d)
	a liability to make a payment, or a return foregone, which is calculated by reference to any amounts received or receivable by the Notifying Lender after providing evidence of its method of calculation to quantify such increased costs under this Agreement,

but not an item attributable to a FATCA Deduction required to be made by a Party or compensated for by any payment made pursuant to Clause 21.5.
For the purposes of this Clause 24.2 the Notifying Lender may in good faith allocate or spread costs and/or losses among its assets and liabilities (or any class of its assets and liabilities) on such basis as it considers appropriate.
		
	11.3
	Notification to Borrower of claim for increased costs.  The Agent shall promptly notify the Borrower and the Security Parties of the notice which the Agent received from the Notifying Lender under Clause 24.1.

		
	11.4
	Payment of increased costs.  The Borrower shall pay to the Agent, on the Agent's demand, for the account of the Notifying Lender the amounts which the Agent from time to time notifies the Borrower that the Notifying Lender has specified to be necessary to compensate the Notifying Lender for the increased cost.

		
	11.5
	Notice of prepayment.  If the Borrower is not willing to continue to compensate the Notifying Lender for the increased cost under Clause 24.4, the Borrower may give the Agent not less than 14 days' notice of its intention to prepay the Notifying Lender's Contribution at the end of an Interest Period.

		
	11.6
	Prepayment; termination of Commitment.  A notice under Clause 24.5 shall be irrevocable; the Agent shall promptly notify the Notifying Lender of the Borrower's notice of intended prepayment; and:

		
	(a)
	on the date on which the Agent serves that notice, the Commitment of the Notifying Lender shall be cancelled; and

		
	(b)
	on the date specified in its notice of intended prepayment, the Borrower shall prepay (without premium or penalty) the Notifying Lender's Contribution, together with accrued interest thereon at the applicable rate plus the Margin.

		
	11.7
	Application of prepayment.  Clause 8 shall apply in relation to the prepayment.

		
	12
	SET‐OFF

		
	12.1
	Application of credit balances.  Each Creditor Party may without prior notice:

		
	(a)
	apply any balance (whether or not then due) which at any time stands to the credit of any account in the name of the Borrower at any office in any country of that Creditor Party in or towards satisfaction of any sum then due from the Borrower to that Creditor Party under any of the Finance Documents; and

		
	(b)
	for that purpose:

		
	(i)
	break, or alter the maturity of, all or any part of a deposit of the Borrower;

		
	(ii)
	convert or translate all or any part of a deposit or other credit balance into Dollars; and

		
	(iii)
	enter into any other transaction or make any entry with regard to the credit balance which the Creditor Party concerned considers appropriate.

		
	12.2
	Existing rights unaffected.  No Creditor Party shall be obliged to exercise any of its rights under Clause 25.1; and those rights shall be without prejudice and in addition to any right of set‐off, combination of accounts, charge, lien or other right or remedy to which a Creditor Party is entitled (whether under the general law or any document).

		
	12.3
	Sums deemed due to a Lender.  For the purposes of this Clause 25, a sum payable by the Borrower to the Agent or the Security Trustee for distribution to, or for the account of, a Lender shall be treated as a sum due to that Lender; and each Lender's proportion of a sum so payable for distribution to, or for the account of, the Lenders shall be treated as a sum due to such Lender.

		
	12.4
	No Security Interest.  This Clause 25 gives the Creditor Parties a contractual right of set-off only, and does not create any equitable charge or other Security Interest over any credit balance of the Borrower.

		
	13
	TRANSFERS AND CHANGES IN LENDING OFFICES

		
	13.1
	Transfer by Borrower.  The Borrower may not, without the prior written consent of the Agent, given on the instructions of all the Lenders transfer any of its rights, liabilities or obligations under any Finance Document.

		
	13.2
	Transfer by a Lender.  Subject to Clause 26.5 a Lender (the "Transferor Lender") may at any time, without the consent of the Borrower or any Security Party but with the prior approval of the Agent, cause:

		
	(a)
	its rights in respect of all or part of its Contribution but in the case of part, in an amount no less than $5,000,000; or

		
	(b)
	its obligations in respect of all or part of its Commitment but in the case of part, in an amount no less than $5,000,000; or

		
	(c)
	a combination of (a) and (b),

to be (in the case of its rights) transferred to, or (in the case of its obligations) assumed by, another bank or financial institution which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets and which is FATCA Exempt Party (a "Transferee Lender") or the securitisation or similar transaction of that Transferor Lender's Contribution of Commitment by delivering to the Agent a completed certificate in the form set out in Schedule 4 with any modifications approved or required by the Agent (a "Transfer Certificate") executed by the Transferor Lender and the Transferee Lender,
However any rights and obligations of the Transferor Lender in its capacity as Agent or Security Trustee will have to be dealt with separately in accordance with the Agency and Trust Deed.
		
	13.3
	Transfer Certificate, delivery and notification.  As soon as reasonably practicable after a Transfer Certificate is delivered to the Agent, it shall (unless it has reason to believe that the Transfer Certificate may be defective):

		
	(a)
	sign the Transfer Certificate on behalf of itself, the Borrower, the Security Parties, the Security Trustee and each of the other Lenders;

		
	(b)
	on behalf of the Transferee Lender, send to the Borrower and each Security Party letters or faxes notifying them of the Transfer Certificate and attaching a copy of it;

		
	(c)
	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b),

but the Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Transferor Lender and the Transferee Lender once it is satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations to the transfer to that Transferee Lender.
		
	13.4
	Effective Date of Transfer Certificate.  A Transfer Certificate becomes effective on the date, if any, specified in the Transfer Certificate as its effective date Provided that it is signed by the Agent under Clause 26.3 on or before that date.

		
	13.5
	No transfer without Transfer Certificate.  Except as provided in Clause 26.17, no assignment or transfer of any right or obligation of a Lender under any Finance Document is binding on, or effective in relation to, the Borrower, any Security Party, the Agent or the Security Trustee unless it is effected, evidenced or perfected by a Transfer Certificate.

		
	13.6
	Lender re-organisation; waiver of Transfer Certificate.  However, if a Lender enters into any merger, de-merger or other reorganisation as a result of which all its rights or obligations vest in a successor, the Agent may, if it sees fit, by notice to the successor and the Borrower and the Security Trustee waive the need for the execution and delivery of a Transfer Certificate; and, upon service of the Agent's notice, the successor shall become a Lender with the same Commitment and Contribution as were held by the predecessor Lender.

		
	13.7
	Effect of Transfer Certificate.  A Transfer Certificate takes effect in accordance with English law as follows:

		
	(a)
	to the extent specified in the Transfer Certificate, all rights and interests (present, future or contingent) which the Transferor Lender has under or by virtue of the Finance Documents 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 or any Security Party had against the Transferor Lender;

		
	(b)
	the Transferor Lender's Commitment is discharged to the extent specified in the Transfer Certificate;

		
	(c)
	the Transferee Lender becomes a Lender with the Contribution previously held by the Transferor Lender and a Commitment of an amount specified in the Transfer Certificate;

		
	(d)
	the Transferee Lender becomes bound by all the provisions of the Finance Documents 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 Agent and the Security Trustee and, to the extent that the Transferee Lender becomes bound by those provisions (other than those relating to exclusion of liability), the Transferor Lender ceases to be bound by them;

		
	(e)
	any part of the Loan which the Transferee Lender advances after the Transfer Certificate's effective date ranks in point of priority and security in the same way as it would have ranked had it been advanced by the transferor, assuming that any defects in the transferor's title and any rights or equities of the Borrower or any Security Party against the Transferor Lender had not existed;

		
	(f)
	the Transferee Lender becomes entitled to all the rights under the Finance Documents which are applicable to the Lenders generally, including but not limited to those relating to the Majority Lenders and those under Clause 5.6 and Clause 20, and to the extent that the Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to be entitled to them; and

		
	(g)
	in respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document or any misrepresentation made in or in connection with a Finance Document, the Transferee Lender shall be entitled to recover damages by reference to the loss incurred by it as a result of the breach or misrepresentation, irrespective of whether the original Lender would have incurred a loss of that kind or amount.

The rights and equities of the Borrower or any Security Party referred to above include, but are not limited to, any right of set off and any other kind of cross‐claim.
		
	13.8
	Maintenance of register of Lenders.  During the Security Period the Agent shall maintain a register in which it shall record the name, Commitment, Contribution and administrative details (including the lending office) from time to time of each Lender holding a Transfer Certificate and the effective date (in accordance with Clause 26.4) of the Transfer Certificate; and the Agent shall make the register available for inspection by any Lender, the Security Trustee and the Borrower during normal banking hours, subject to receiving at least 3 Business Days' prior notice.

		
	13.9
	Reliance on register of Lenders.  The entries on that register shall, in the absence of manifest error, be conclusive in determining the identities of the Lenders and the amounts of their Commitments and Contributions and the effective dates of Transfer Certificates and may be relied upon by the Agent and the other parties to the Finance Documents for all purposes relating to the Finance Documents.

		
	13.10
	Authorisation of Agent to sign Transfer Certificates.  The Borrower, the Security Trustee and each Lender irrevocably authorises the Agent to sign Transfer Certificates on its behalf.

		
	13.11
	Registration fee.  In respect of any Transfer Certificate, the Agent shall be entitled to recover a registration fee of $5,000 from the Transferor Lender or (at the Agent's option) the Transferee Lender.

		
	13.12
	Sub-participation; subrogation assignment.  A Lender may sub‐participate all or any part of its rights and/or obligations under or in connection with the Finance Documents without the consent of, or any notice to, the Borrower, any Security Party, the Agent or the Security Trustee; and the Lenders may assign, in any manner and terms agreed by the Majority Lenders, the Agent and the Security Trustee, all or any part of those rights to an insurer or surety who has become subrogated to them.

		
	13.13
	Disclosure of Confidential Information.  Any Creditor Party may disclose:

		
	(a)
	with the prior written consent of the Borrower, to any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and representatives such Confidential Information as that Creditor Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph (a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

		
	(b)
	to any person:

		
	(i)
	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents and to any of that person's Affiliates, representatives and professional advisers;

		
	(ii)
	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or the Borrower and/or one or more of the Security Parties and to any of that person's Affiliates, representatives and professional advisers;

		
	(iii)
	appointed by any Creditor Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf;

		
	(iv)
	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above;

		
	(v)
	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

		
	(vi)
	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitrations, administrative or other investigations, proceedings or disputes;

		
	(vii)
	to whom or for whose benefit that Creditor Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 26.17 and to any rating agency in relation to any such securitisation;

		
	(viii)
	who is a party; or

		
	(ix)
	as a result of the registration of any Finance Document as contemplated by any Finance Document or any legal opinion obtained in connection with any Finance Document,

in each case, such Confidential Information as that Creditor Party shall consider appropriate if:
		
	(A)
	in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

		
	(B)
	in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

		
	(C)
	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Creditor Party, it is not practicable so to do in the circumstances; and

		
	(c)
	with the prior written consent of the Borrower, to any person appointed by that Creditor Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered in to a confidentiality agreement substantially in the form of the Loan Market Association Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Borrower and the relevant Creditor Party.

		
	13.14
	Change of lending office.  A Lender may change its lending office by giving notice to the Agent and the change shall become effective on the later of:

		
	(a)
	the date on which the Agent receives the notice; and

		
	(b)
	the date, if any, specified in the notice as the date on which the change will come into effect.

		
	13.15
	Notification.  On receiving such a notice, the Agent shall notify the Borrower and the Security Trustee; and, until the Agent receives such a notice, it shall be entitled to assume that a Lender is acting through the lending office of which the Agent last had notice.

		
	13.16
	Replacement of Reference Bank.  If any Reference Bank ceases to be a Lender or is unable on a continuing basis to supply quotations for the purposes of Clause 5 then, unless the Borrower, the Agent and the Majority Lenders otherwise agree, the Agent, acting on the instructions of the Majority Lenders, and after consulting the Borrower, shall appoint another bank (whether or not a Lender) to be a replacement Reference Bank; and, when that appointment comes into effect, the first‐mentioned Reference Bank's appointment shall cease to be effective.

		
	13.17
	Security over Lenders' rights.  In addition to the other rights provided to Lenders under this Clause 26, each Lender may without consulting with or obtaining consent from the Borrower or any Security Party, at any time charge, assign or otherwise create a Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:

		
	(a)
	any charge, assignment or other Security Interest to secure obligations to a federal reserve or central bank; and

		
	(i)
	in the case of any Lender which is a fund, any charge, assignment or other Security Interest granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities;

except that no such charge, assignment or Security Interest shall:
		
	(ii)
	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the Lender as a party to any of the Finance Documents; or

		
	(iii)
	require any payments to be made by the Borrower or any Security Party or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents.

		
	14
	VARIATIONS AND WAIVERS

		
	14.1
	Variations, waivers etc. by Majority Lenders.  Subject to Clause 27.2, a document shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or any Creditor Party's rights or remedies under such a provision or the general law, only if the document is signed, or specifically agreed to by fax, by the Borrower, by the Agent on behalf of the Majority Lenders, by the Agent and the Security Trustee in their own rights, and, if the document relates to a Finance Document to which a Security Party is party, by that Security Party.

		
	14.2
	Variations, waivers etc. requiring agreement of all Lenders.  However, as regards the following, Clause 27.1 applies as if the words "by the Agent on behalf of the Majority Lenders" were replaced by the words "by or on behalf of every Lender ":

		
	(a)
	a change to any Security Party, other than in accordance with the terms of the Finance Documents;

		
	(b)
	a reduction in the Margin;

		
	(c)
	a postponement to the date for, or a reduction in the amount of, any payment of principal, interest, fees or other sum payable under this Agreement;

		
	(d)
	an increase in any Lender's Commitment;

		
	(e)
	a change to the definition of "Majority Lenders";

		
	(f)
	a change to Clause 3 or this Clause 27;

		
	(g)
	a change to Clauses 12.5, 12.6, 12.7 and 12.8;

		
	(h)
	any release of, or material variation to, a Security Interest, guarantee, indemnity or subordination arrangement set out in a Finance Document;

		
	(i)
	an extension of the Availability Period; and

		
	(j)
	any other change or matter as regards which this Agreement or another Finance Document expressly provides that each Lender's consent is required.

		
	14.3
	Exclusion of other or implied variations.  Except for a document which satisfies the requirements of Clauses 27.1 and 27.2, no document, and no act, course of conduct, failure or neglect to act, delay or acquiescence on the part of the Creditor Parties or any of them (or any person acting on behalf of any of them) shall result in the Creditor Parties or any of them (or any person acting on behalf of any of them) being taken to have varied, waived, suspended or limited, or being precluded (permanently or temporarily) from enforcing, relying on or exercising:

		
	(a)
	a provision of this Agreement or another Finance Document; or

		
	(b)
	an Event of Default; or

		
	(c)
	a breach by the Borrower or a Security Party of an obligation under a Finance Document or the general law; or

		
	(d)
	any right or remedy conferred by any Finance Document or by the general law,

and there shall not be implied into any Finance Document any term or condition requiring any such provision to be enforced, or such right or remedy to be exercised, within a certain or reasonable time.

		
	15
	BAIL IN

		
	15.1
	Contractual recognition of bail-in

Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the parties to a Finance Document, each Party acknowledges and accepts that any liability of any party to a Finance Document under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:
		
	(a)
	any Bail-In Action in relation to any such liability, including (without limitation):

		
	(i)
	a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability;

		
	(ii)
	a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

		
	(iii)
	a cancellation of any such liability; and

		
	(b)
	a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.

		
	16
	NOTICES

		
	16.1
	General.  Unless otherwise specifically provided, any notice under or in connection with any Finance Document shall be given by letter, electronic mail ("Email") or fax and references in the Finance Documents to written notices, notices in writing and notices signed by particular persons shall be construed accordingly.

		
	16.2
	Addresses for communications.  A notice by letter or fax shall be sent:

		
	(a)
	to the Borrower:    Scorpio Tankers Inc.

Le Millenium, 9 Boulevard Charles III,
98000 Monaco
Attn:  Mr Luca Forgione - Legal Department
Fax No:     + 3 77 97 77 83 46
Email@ legal@scorpiogroup.net
		
	(b)
	to a Lender:    At the address below its name in Schedule 1 in the relevant Transfer Certificate.

		
	(c)
	to the Agent:            HSH Nordbank AG  
                Gerhart-Hauptmann-Platz 50, 

20095 Hamburg, 
Germany
    
Attention:  Michael Stamp
Email: michael.stamp@hsh-nordbank.com
Fax:  +49 403333613620
		
	(d)
	to the Security Trustee:        in respect of administrative matters:

HSH Nordbank AG 
Gerhart-Hauptmann-Platz 50, 
20095 Hamburg, 
Germany
    
Attention:      Loan and Collateral Management,
Steffi Dädlow

Email: Steffi.daedlow@hsh-nordbank.com
Fax: +49 40 3333 610475
    
or to such other address as the relevant party may notify the Agent or, if the relevant party is the Agent or the Security Trustee, the Borrower, the Lenders and the Security Parties.
		
	16.3
	Effective date of notices.  Subject to Clauses 29.4 and 29.5:

		
	(a)
	a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered;

		
	(b)
	a notice which is sent by Email shall be deemed to be served, and shall take effect, at the time when it is actually received in readable form; and

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

		
	16.4
	Service outside business hours.  However, if under Clause 29.3 a notice would be deemed to be served:

		
	(a)
	on a day which is not a business day in the place of receipt; or

		
	(b)
	on such a business day, but after 5 p.m. local time,

the notice shall (subject to Clause 29.5) be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a business day.
		
	16.5
	Illegible notices.  Clauses 29.3 and 29.4 do not apply if the recipient of a notice notifies the sender within 1 hour after the time at which the notice would otherwise be deemed to be served that the notice has been received in a form which is illegible in a material respect.

		
	16.6
	Valid notices.  A notice under or in connection with a Finance Document shall not be invalid by reason that its contents or the manner of serving it do not comply with the requirements of this Agreement or, where appropriate, any other Finance Document under which it is served if:

		
	(a)
	the failure to serve it in accordance with the requirements of this Agreement or other Finance Document, as the case may be, has not caused any party to suffer any significant loss or prejudice; or

		
	(b)
	in the case of incorrect and/or incomplete contents, it should have been reasonably clear to the party on which the notice was served what the correct or missing particulars should have been.

		
	16.7
	Electronic communication between the Agent and a Lender.  Any communication to be made between the Agent and a Lender under or in connection with the Finance Documents may be made by Email or other electronic means, if the Agent and the relevant Lender:

		
	(a)
	agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

		
	(b)
	notify each other in writing of their Email address and/or any other information required to enable the sending and receipt of information by that means; and

		
	(c)
	notify each other of any change to their respective Email addresses or any other such information supplied to them.

Any electronic communication made between the Agent and a Lender will be effective only when actually received in readable form and, in the case of any electronic communication made by a Lender to the Agent, only if it is addressed in such a manner as the Agent shall specify for this purpose.
		
	16.8
	English language.  Any notice under or in connection with a Finance Document shall be in English.

		
	16.9
	Meaning of "notice".  In this Clause 29, "notice" includes any demand, consent, authorisation, approval, instruction, waiver or other communication.

		
	17
	SUPPLEMENTAL

		
	17.1
	Rights cumulative, non-exclusive.  The rights and remedies which the Finance Documents give to each Creditor Party are:

		
	(a)
	cumulative;

		
	(b)
	may be exercised as often as appears expedient; and

		
	(c)
	shall not, unless a Finance Document explicitly and specifically states so, be taken to exclude or limit any right or remedy conferred by any law.

		
	17.2
	Severability of provisions.  If any provision of a Finance Document is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or legality of the other provisions of that Finance Document or of the provisions of any other Finance Document.

		
	17.3
	Counterparts.  A Finance Document may be executed in any number of counterparts.

		
	17.4
	Third party rights.  A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.

		
	18
	LAW AND JURISDICTION

		
	18.1
	English 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.

		
	18.2
	Exclusive English jurisdiction.  Subject to Clause 31.3, the courts of England shall have exclusive jurisdiction to settle any Dispute.

		
	18.3
	Choice of forum for the exclusive benefit of Creditor Parties.  Clause 31.2 is for the exclusive benefit of the Creditor Parties, each of which reserves the rights:

		
	(a)
	to commence proceedings in relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and

		
	(b)
	to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings in England.

The Borrower shall not commence any proceedings in any country other than England in relation to a Dispute.
		
	18.4
	Process agent.  

		
	(a)
	The Borrower irrevocably appoints Scorpio UK Limited at its office for the time being, presently at 10 Lower Grosvenor Place, London, SW1W 0EN (such communication to be marked preferably and if possible on the paper envelope and not on the courier packaging marked "STNG Transaction" for the urgent attention of General Counsel), to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with a Dispute.

		
	(b)
	If any agent appointed as an agent for service of process under this Clause is unable for any reason to act as agent for service of process, the Borrower (on behalf of itself and all of the other Security Parties) must immediately (and in any event no later than the end of the previous process agent's appointment) appoint another agent on terms acceptable to the Agent. Failing this, the Agent may appoint another agent for this purpose. 

		
	18.5
	Creditor Party rights unaffected.  Nothing in this Clause 31 shall exclude or limit any right which any Creditor Party may have (whether under the law of any country, an international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction.

		
	18.6
	Meaning of "proceedings".  In this Clause 31, "proceedings" means proceedings of any kind, including an application for a provisional or protective measure and a "Dispute" means any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement) or any non-contractual obligation arising out of or in connection with this Agreement.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

Schedule 1 
 
LENDERS AND COMMITMENTS

	
			
	Lender
	Lending Office
	Commitment

	HSH Nordbank AG
	Gerhart-Hauptmann-Platz 50,  
20095 Hamburg, Germany
	$34,000,000

Schedule 2     
 
DRAWDOWN NOTICE
To:    HSH Nordbank AG
Attn:     [l]

Gerhart-Hauptmann-Platz 50
20095 Hamburg
Germany
 
 [l] 2017
DRAWDOWN NOTICE
		
	1
	We refer to the loan agreement (the "Loan Agreement") dated [l] 2017 and made between ourselves as Borrower, the Lenders referred to therein, the Mandated Lead Arranger referred to therein, the Bookrunner referred to therein, yourselves as Agent and as Security Trustee in connection with a facility of up to US$34,000,000.  Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice.

		
	2
	We request to borrow an Advance pursuant to the Loan as follows:

		
	(a)
	Amount: US$[l];

		
	(b)
	Drawdown Date: [l] 2017;

		
	(c)
	[Duration of the first Interest Period shall be [l] months;] and

		
	(d)
	Payment instructions: [l].

		
	3
	We represent and warrant that:

		
	(a)
	the representations and warranties in Clause 10 of the Loan Agreement would remain true and not misleading if repeated on the date of this notice and on the Drawdown Date with reference to the circumstances now existing; and

		
	(b)
	no Event of Default or Latent Event of Default has occurred or will result from the borrowing of the Loan.

		
	4
	This notice cannot be revoked without the prior consent of the Majority Lenders.

[Name of Signatory]

Chief Financial Officer
for and on behalf of
SCORPIO TANKERS INC.

Schedule 3     
 
CONDITION PRECEDENT DOCUMENTS

Part A    
The following are the documents referred to in Clause 9.1(a).
		
	1
	A duly executed original of this Agreement and the Agency and Trust Deed.

		
	2
	Copies of the certificate of incorporation and constitutional documents of the Borrower and each Security Party.

		
	3
	Copies of resolutions of the directors of the Borrower and each Security Party and in the case of the Guarantors copies of resolutions of their shareholders authorising the execution of each of the Finance Documents to which the Borrower or that Security Party is a party and, in the case of the Borrower, authorising named officers to give Drawdown Notices and other notices under this Agreement.

		
	1
	The original of any power of attorney under which any Finance Document is executed on behalf of the Borrower (where a separate power of attorney is issued by the Borrower) or a Security Party.

		
	2
	An incumbency certificate in respect of the officers and directors (or equivalent) of each of the Borrower and the Security Parties and signature samples of any signatories to any Finance Document.

		
	3
	Evidence satisfactory to the Agent that all consents and approvals which the Borrower or any Security Party requires to enter into, or make any payment under, any Finance Document have been obtained and any required filings have been made.

		
	4
	Documentary evidence that the agent for service of process named in Clause 31 has accepted its appointment.

		
	5
	Such documentation and other evidence in form and substance acceptable to the Agent or a Lender in order for each to carry out and be satisfied with the results of all necessary "know your customer" or other checks which it is required to carry out in relation to the transactions contemplated by this Agreement, and other Finance Documents including without limitation obtaining, verifying and recording certain information and documentation that will allow the Agent and each of the Lenders to identify the Borrower and each Security Party.

		
	6
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of England, the Marshall Islands, The Netherlands and such other relevant jurisdictions as the Agent may require.

		
	7
	A Compliance Certificate together with all supporting Accounting Information and other evidence as required pursuant to the terms of this Agreement.

		
	8
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the first Drawdown Date.

		
	9
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

		
	10
	The financial statements of the Borrower for its financial year ended 31 December 2015.

Part B    
The following are the documents referred to in Clause 9.1(b).
In this Part B, "Ship" means the particular Ship to which the relevant Advance relates and "Guarantor" means the relevant Guarantor owning such Ship.
		
	1
	A certificate of an authorised signatory of the Guarantor and, if signing any Finance Document listed in paragraph 3 below, the Borrower and any other Security Party, certifying that each corporate and copy document provided by it under Part A of Schedule 3 remains correct, complete, has not been amended and is in full force and effect as at the relevant Drawdown Date and that there is no Event of Default. 

		
	2
	Copies of resolutions of the directors of the Borrower and each Security Party and, in the case of the Guarantor, copies of resolutions of its shareholders, in each case, authorising the execution of the Finance Documents to which the Borrower or that Security Party is a party.

		
	3
	A duly executed original of the Mortgage, the Guarantee, the General Assignment, the Charterparty Assignment, the Accounts Security Deed and any Intercompany Loan Assignment (if applicable) in relation to the Guarantor and the Ship (and of each document required to be delivered by their respective terms).

		
	4
	Evidence that any Existing Security over the Ship (including any mortgages) has been released and evidence satisfactory to the Agent that the amount of the Existing Indebtedness in relation to the Ship has been prepaid.

		
	5
	The original of any power of attorney under which any Finance Document is to be executed on behalf of the Guarantor or the Borrower if applicable (and only where a separate power of attorney is issued by the Borrower).

		
	6
	Copies of all consents which the Borrower or any Security Party requires to enter into, or make any payment under, any Finance Document entered into on or prior to the Drawdown Date not already provided under Part A of this Schedule.

		
	7
	The Agent and Lenders have been provided with all information and documentation they have requested in order to carry out and be reasonably satisfied with all further necessary "know your customer" or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated by this Agreement and to satisfy all internal compliance policies of the Agent and the Lenders in relation to "know you customer" requirements.

		
	8
	Confirmation that any Intercompany Loans made or to be made available to the Guarantor have been or will be when made available fully subordinated to the rights of the Creditor Parties under the Finance Documents.

		
	9
	Documentary evidence that the Earnings Account in respect of the Ship has been opened with the Account Bank.

		
	10
	Documentary evidence that:

		
	(a)
	the Ship is definitively and permanently registered in the name of the Guarantor under the relevant Approved Flag in accordance with the laws of the applicable Approved Flag;

		
	(b)
	the Ship is in the absolute and unencumbered ownership of the Guarantor save as contemplated by the Finance Documents;

		
	(c)
	the Ship maintains class acceptable to the Agent free of all overdue recommendations and conditions of an Approved Classification Society;

		
	(d)
	the Mortgage in relation to the Ship has been duly registered against such Ship as a valid first preferred ship mortgage in accordance with the laws of the relevant Approved Flag; and

		
	(e)
	the Ship is insured in accordance with the provisions of this Agreement and all requirements therein in respect of insurances have been complied with.

		
	11
	Documents establishing that the Ship is managed by the Approved Ship Manager on terms acceptable to the Lenders, together with:

		
	(a)
	the Approved Ship Manager's Undertaking in respect of the Ship; and

		
	(b)
	copies of the relevant Approved Ship Manager's Document of Compliance and of the Ship's Safety Management Certificate (together with any other details of the applicable safety management system which the Agent requires) and of the Ship's ISSC.

		
	12
	Valuations of the Ship to determine its Fair Market Value, addressed to the Agent and the Lenders, stated to be for the purposes of this Agreement and, notwithstanding paragraph (b) of Clause 15.3, in any event dated not earlier than the date falling 14 days prior to the relevant Drawdown Date and obtained in accordance with Clause 15 and showing that upon the drawdown of the Advance relating to the Ship, the Borrower will be in compliance with Clause 15. 

		
	13
	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the laws of England, Marshall Islands and such other relevant jurisdictions as the Agent may require.

		
	14
	A favourable opinion from an independent insurance consultant acceptable to the Agent on such matters relating to the insurances for the Ship as the Agent may require.

		
	15
	Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 20 have been paid or will be paid by the first Drawdown Date.

		
	16
	If the Agent so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Agent.

Each copy document delivered under this Schedule 3 shall be certified as a true and up to date copy by a director or secretary (or equivalent officer) or an attorney-in-fact of the Borrower.

Schedule 4     
 
TRANSFER CERTIFICATE
The Transferor and the Transferee accept exclusive responsibility for ensuring that this Certificate and the transaction to which it relates comply with all legal and regulatory requirements applicable to them respectively.
		
	To:
	[Name of Agent] for itself and for and on behalf of the Borrower, each Security Party, the Security Trustee, each Lender, the Bookrunner and the Mandated Lead Arranger as defined in the Loan Agreement referred to below.

[l]
		
	1
	This Certificate relates to a loan agreement ("the "Agreement") dated [l] 2017 and made between (1) Scorpio Tankers Inc. (the "Borrower"), (2) the banks and financial institutions named therein as Lenders, (3) HSH Nordbank AG as Mandated Lead Arranger, (4) HSH Nordbank AG as Bookrunner, (5) HSH Nordbank AG as Agent and as Security Trustee for a loan facility of up to $34,000,000.

		
	2
	In this Certificate, terms defined in the Agreement shall, unless the contrary intention appears, have the same meanings when used in this Certificate and:

"Relevant Parties" means the Agent, the Borrower, each Security Party, the Bookrunner, the Mandated Lead Arranger, the Security Trustee and each Lender;
"Transferor" means [full name] of [lending office];
"Transferee" means [full name] of [lending office].
		
	3
	The effective date of this Certificate is [l] Provided that this Certificate shall not come into effect unless it is signed by the Agent on or before that date.

		
	4
	[The Transferor assigns to the Transferee absolutely all rights and interests (present, future or contingent) which the Transferor has as Lender under or by virtue of the Agreement and every other Finance Document in relation to [l] per cent. of its Contribution, which percentage represents $[l].]

		
	5
	[By virtue of this Certificate and Clause 26 of the Agreement, the Transferor is discharged [entirely from its Commitment which amounts to $[l]] [from [l] per cent. of its Commitment, which percentage represents $[l]] and the Transferee acquires a Commitment of $[l].]

		
	6
	The Transferee undertakes with the Transferor and each of the Relevant Parties that the Transferee will observe and perform all the obligations under the Finance Documents which Clause 26 of the Agreement provides will become binding on it upon this Certificate taking effect.

		
	7
	The Agent, at the request of the Transferee (which request is hereby made) accepts, for the Agent itself and for and on behalf of every other Relevant Party, this Certificate as a Transfer Certificate taking effect in accordance with Clause 26 of the Agreement.

		
	8
	The Transferor:

		
	(a)
	warrants to the Transferee and each Relevant Party that:

		
	(i)
	the Transferor has full capacity to enter into this transaction and has taken all corporate action and obtained all consents which are required in connection with this transaction; and

		
	(ii)
	this Certificate is valid and binding as regards the Transferor;

		
	(b)
	warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances, to all the rights and interests covered by the assignment in paragraph 4; and

		
	(c)
	undertakes with the Transferee that the Transferor will, at its own expense, execute any documents which the Transferee reasonably requests for perfecting in any relevant jurisdiction the Transferee's title under this Certificate or for a similar purpose.

		
	9
	The Transferee:

		
	(a)
	confirms that it has received a copy of the Agreement and each of the other Finance Documents;

		
	(b)
	agrees that it will have no rights of recourse on any ground against either the Transferor, the Agent, the Security Trustee, any Lender, the Bookrunner or the Mandated Lead Arranger in the event that:

		
	(i)
	any of the Finance Documents prove to be invalid or ineffective;

		
	(ii)
	the Borrower or any Security Party fails to observe or perform its obligations, or to discharge its liabilities, under any of the Finance Documents;

		
	(iii)
	it proves impossible to realise any asset covered by a Security Interest created by a Finance Document, or the proceeds of such assets are insufficient to discharge the liabilities of the Borrower or any Security Party under any of the Finance Documents;

		
	(c)
	agrees that it will have no rights of recourse on any ground against the Agent, the Security Trustee, any Lender, the Bookrunner, or any Mandated Lead Arranger in the event that this Certificate proves to be invalid or ineffective;

		
	(d)
	warrants to the Transferor and each Relevant Party that:

		
	(i)
	it has full capacity to enter into this transaction and has taken all corporate action and obtained all consents which it needs to take or obtain in connection with this transaction; and

		
	(ii)
	that this Certificate is valid and binding as regards the Transferee;

		
	(e)
	confirms the accuracy of the administrative details set out below regarding the Transferee.

		
	10
	The Transferor and the Transferee each undertake with the Agent and the Security Trustee severally, on demand, fully to indemnify the Agent and/or the Security Trustee in respect of any claim, proceeding, liability or expense (including all legal expenses) which they or either of them may incur in connection with this Certificate or any matter arising out of it, except such as are shown to have been mainly and directly caused by the gross and culpable negligence or dishonesty of the Agent's or the Security Trustee's own officers or employees.

		
	11
	The Transferee shall repay to the Transferor on demand so much of any sum paid by the Transferor under paragraph 9 as exceeds one-half of the amount demanded by the Agent or the Security Trustee in respect of a claim, proceeding, liability or expense which was not reasonably foreseeable at the date of this Certificate; but nothing in this paragraph shall affect the liability of each of the Transferor and the Transferee to the Agent or the Security Trustee for the full amount demanded by it.

[Name of Transferor]    [Name of Transferee]
By:    By:
Date:    Date:
Agent
Signed for itself and for and on behalf of itself
as Agent and for every other Relevant Party
[Name of Agent]
By:
Date:
Administrative Details of Transferee
Name of Transferee:
Lending Office:
Contact Person 
(Loan Administration Department):
Telephone:
Fax:
Contact Person 
(Credit Administration Department):
Telephone:
Fax:
Account for payments:
Note:    This Transfer Certificate alone may not be sufficient to transfer a proportionate share of the Transferor's interest in the security constituted by the Finance Documents in the Transferor's or Transferee's jurisdiction.  It is the responsibility of each Lender to ascertain whether any other documents are required for this purpose.

Schedule 5     
 
LIST OF APPROVED BROKERS

Clarkson Platou Securities AS
Arrow Sale & Purchase Ltd.
Braemar Seascope Ltd.
Maersk Broker K/S
Fearnleys Ltd.
Simpson Spence Young

24    59295567v5

Schedule 6     
 
FORM OF COMPLIANCE CERTIFICATE
To:    HSH Nordbank AG
Gerhart-Hauptmann-Platz 50
20095 Hamburg
Germany 
[date]
Dear Sirs,
We refer to a loan agreement dated [l] 2017 (the "Loan Agreement") made between (i) Scorpio Tankers Inc. as borrower (the "Borrower"), (2) the Lenders named therein, (3) the Mandated Lead Arranger named therein, (4) the Bookrunner named therein and (5) yourselves as Agent and Security Trustee
Words and expressions defined in each of the Loan Agreement shall have the same meaning when used in this Compliance Certificate.
We hereby represent that no Event of Default has occurred as at the date of this Certificate [other than [l]].
We hereby certify that, as at the date of this certificate:
		
	(a)
	the Minimum Liquidity requirement is $[l], Cash and Cash Equivalents is $[l]; $[l] of which consists of Cash;

		
	(b)
	the Consolidated Tangible Net Worth is $[l];

		
	(c)
	the ratio of Net Debt to Consolidated Total Capitalisation is [l] to [l];

		
	(d)
	the ratio of Consolidated EBITDA to Consolidated Net Interest Expense is [l] to [l]; and

		
	(e)
	the Fair Market Value of the Ships plus the net realisation value of any additional security previously provided under Clause 15 [as at [date of most recent half/full year certificate] is not less than 140 per cent of the Loan. [Note: Wording in square brackets is only relevant for quarterly compliance certificates]

All of these thresholds and ratios are in compliance with the requirements of clauses 12.5, 12.6, 12.7, 12.8 and 15.1 of the Loan Agreement. Copies of our calculations in relation to the financial covenants and the valuations for the purposes of determining the Fair Market Value of the Ships is attached.
This Certificate and any non-contractual obligations arising out of or in connection with it shall be governed by, and construed in accordance with, English law.

______________________________
[l]
Chief Financial Officer
Scorpio Tankers Inc.

25    59295567v5

Schedule 7     
 
THE SHIPS

	
					
	 
	Vessel
	DWT
	Built
	Owner/Guarantor

	1.
	STI Onyx
	52,000
	Sep-12
	STI Onyx Shipping Company Limited

	2.
	STI Duchessa
	52,000
	Jan-14
	STI Duchessa Shipping Company Limited

Schedule 8     
 
POWER OF ATTORNEY
Know all men by these presents that STI [Onyx][Duchessa] Shipping Company Limited (the "Company"), a company incorporated in the Republic of the Marshall Islands and having its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands irrevocably and by way of security appoints HSH Nordbank AG (the "Attorney") of Gerhart-Hauptmann-Platz 50, D-20095 Hamburg, Germany its attorney, to act in the name of the Company in relation to [name of Approved Classification Society] (the "Classification Society") and/or to the classification records of any vessel owned, controlled or operated by the Company including, with limitation, such powers or entitlement as the Company may have to inspect the class records and any files held by the Classification Society in relation to any such vessel and to require the Classification Society to provide to the Attorney or to any of its nominees any information, document or file which the Attorney may request
Delegation.  The Attorney may exercise its powers hereunder through any officer or through any nominee and/or may sub‐delegate to any person or persons (including a Receiver and persons designated by him) all or any of the powers (including the discretions) conferred on the Attorney hereunder, and may do so on terms authorising successive sub‐delegations.
This Power of Attorney was executed by the Company as a Deed on [date].

EXECUTED as a DEED by            )
STI [Onyx][Duchessa] Shipping Company Limited    )
acting by two directors or one director    )
and the company secretary        )

Director: .................................
Director/Secretary: .......................

26    59295567v5

EXECUTION PAGES

	
		
	THE BORROWER
	 

	SIGNED by
	 

	Name: Micha Withoft
	/s/ Micha Withoft

	Title: Attorney-in-Fact
	 

	for and on behalf of
	 

	SCORPIO TANKERS INC.
	 

	in the presence of:
	 

	 
	 

	Name: Andrew Cottrell, Legal Intern
	/s/ Andrew Cottrell

	Address: “Le Millenium” 9 Boulevard Charles III, MC 98000 Monaco

	 
	 

	THE LENDERS
	 

	SIGNED by
	 

	Name: Lucy Shtenko
	/s/ Lucy Shtenko

	for and on behalf of
	Title: Attorney-in-Fact

	HSH NORDBANK AG
	 

	in the presence of:
	 

	Name: Clementine Freeth
	 

	/s/ Clementine Freeth
	 

	Title: Trainee, WFW, LLP
	 

	 
	 

	THE MANDATED LEAD ARRANGER
	 

	SIGNED by
	 

	Name: Lucy Shtenko
	/s/ Lucy Shtenko

	for and on behalf of
	Title: Attorney-in-Fact

	HSH NORDBANK AG
	 

	in the presence of:
	 

	Name: Clementine Freeth
	 

	/s/ Clementine Freeth
	 

	Title: Trainee, WFW, LLP
	 

	 
	 

	THE BOOKRUNNER
	 

	SIGNED by
	 

	Name: Lucy Shtenko
	/s/ Lucy Shtenko

	for and on behalf of
	Title: Attorney-in-Fact

	HSH NORDBANK AG
	 

	in the presence of:
	 

	Name: Clementine Freeth
	 

	/s/ Clementine Freeth
	 

	Title: Trainee, WFW, LLP
	 

	 
	 

	THE SECURITY TRUSTEE
	 

	SIGNED by
	 

27    59295567v5

	
		
	Name: Lucy Shtenko
	/s/ Lucy Shtenko

	for and on behalf of
	Title: Attorney-in-Fact

	HSH NORDBANK AG
	 

	in the presence of:
	 

	Name: Clementine Freeth
	 

	/s/ Clementine Freeth
	 

	Title: Trainee, WFW, LLP
	 

	 
	 

	THE AGENT
	 

	SIGNED by
	 

	Name: Lucy Shtenko
	/s/ Lucy Shtenko

	for and on behalf of
	Title: Attorney-in-Fact

	HSH NORDBANK AG
	 

	in the presence of:
	 

	Name: Clementine Freeth
	 

	/s/ Clementine Freeth
	 

	Title: Trainee, WFW, LLP
	 

28    59295567v5

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