Document:

Exhibit 4.27

  

   

  

    

  

  

  
    

    

    

    

    Dated: 27th January 2021

    

    

    

    

    

    

    

    

    

    

    Eurodry ltd.

      (The "Guarantor")

    

    

    

    

    

    

    -And-

    

    

    

    

    

    

    

    

    

    

    Eurobank s.a.

    (the "security trustee")

    

    

    

    

    

    

    

    

    	 	 	 
	 	 	 
	 	
            Guarantee

          	 
	 	 	 

    

    

    

    

    

    

    

    

    
      
        

    

    

    

     

    

    

    

    

    

    INDEX

    

    

    

    

    	
            CLAUSE

          	 	
            PAGE

          
	 	 	 
	
            1.

          	
            INTERPRETATION

          	
            1

          
	 	 	 
	
            2.

          	
            GUARANTEE

          	
            2

          
	 	 	 
	
            3.

          	
            LIABILITY AS PRINCIPAL AND INDEPENDENT DEBTOR

          	
            2

          
	 	 	 
	
            4.

          	
            EXPENSES

          	
            3

          
	 	 	 
	
            5.

          	
            ADJUSTMENT OF TRANSACTIONS

          	
            3

          
	 	 	 
	
            6.

          	
            PAYMENTS

          	
            3

          
	 	 	 
	
            7.

          	
            INTEREST

          	
            3

          
	 	 	 
	
            8.

          	
            SUBORDINATION

          	
            4

          
	 	 	 
	
            9.

          	
            ENFORCEMENT

          	
            4

          
	 	 	 
	
            10.

          	
            REPRESENTATIONS AND WARRANTIES

          	
            4

          
	 	 	 
	
            11.

          	
            UNDERTAKINGS

          	
            6

          
	 	 	 
	
            12.

          	
            JUDGMENTS AND CURRENCY INDEMNITY

          	
            8

          
	 	 	 
	
            13.

          	
            SET-OFF

          	
            8

          
	 	 	 
	
            14.

          	
            NO SET-OFF OR TAX DEDUCTION

          	
            9

          
	 	 	 
	
            15.

          	
            SUPPLEMENTAL

          	
            9

          
	 	 	 
	
            16.

          	
            TRANSFER

          	
            10

          
	 	 	 
	
            17.

          	
            NOTICES

          	
            10

          
	 	 	 
	
            18.

          	
            INVALIDITY OF LOAN AGREEMENT

          	
            11

          
	 	 	 
	
            19.

          	
            GOVERNING LAW AND JURISDICTION

          	
            11

          

    

    

    
      
        

    

    

    

    

    

    

    

    

    

    THIS GUARANTEE is made on 27 January 2021

     

    

    BETWEEN

    	(1)	
            EURODRY LTD., being a company incorporated in accordance with the laws of the Republic of the Marshall Islands,
              whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, Republic of Marshall Islands (the "Guarantor"); and

          

    	(2)	
            EUROBANK S.A., a banking societe anonyme duly incorporated under the laws of Greece, having its registered
              office at 8, Othonos Street, Athens, Greece, acting for the purposes of this Agreement through its office at 83, Akti Miaouli, 185 38 Piraeus, Greece (the "Security Trustee", which expression includes its successors and assigns).

          

    BACKGROUND

    	(A)	
            By a loan agreement dated 27 January 2021 (hereinafter, as the same may be amended, supplemented, novated or varied from time to time, the "Loan Agreement") and made between (i) Ultra One Shipping Ltd, a company incorporated in accordance with the laws of the Republic of Liberia whose registered office is situated at 80, Broad Street, Monrovia, Liberia ("Borrower A") and Kamsarmax One Shipping Ltd, a company incorporated in accordance with the laws of the Republic of Marshall
              Islands ("Borrower B" and together with Borrower A, the "Borrowers"), as joint and several borrowers, (ii) the banks and financial institutions listed in Schedule 1 thereto, which on the date
              hereof comprised only Eurobank S.A., as lenders ("the Lenders" or "a Lender") and (iii) Eurobank S.A., as agent (the "Agent"), arranger (the "Arranger"), account bank (the "Account Bank") and security trustee (the "Security Trustee" and together with the Lenders, the Agent, the Arranger and the Account Bank, the "Creditor Parties"), it was agreed that the Lenders would make available to the Borrowers a secured term loan facility of up to the lesser of (a) $26,700,000 and (b) 62% of the aggregate Market Value of the Ships as therein
              defined for the purposes and upon the terms and conditions set out therein.

          

    	(B)	
            By an agency and trust deed dated 27 January 2021 and entered into pursuant to the Loan Agreement (the "Agency and Trust Deed"), it was agreed that the Security Trustee would hold the Trust Property on trust for the Lenders.

          

    	(C)	
            The execution and delivery to the Security Trustee of this Guarantee is one of the conditions precedent to the availability of the facility under the said Loan Agreement.

          

    IT IS AGREED as follows:

    	1	
            INTERPRETATION

          

    	1.1	
            Terms defined in the Loan Agreement. Words and expressions defined in the Loan Agreement shall have the same meanings when used in this Guarantee unless
              the context otherwise requires or unless otherwise defined in this Guarantee.

          

    	1.2	
            Construction of certain terms. In this Guarantee:

          

    "bankruptcy" includes a liquidation, receivership or administration and any form of suspension of payments, arrangement with creditors or
      reorganisation under any corporate or insolvency law of any country;

    "Loan Agreement" means the loan agreement dated 27 January 2021 referred to in Recital (A) and includes any existing or future amendments
      or supplements, whether made with the Guarantor's consent or otherwise.

    
      
        

    

    
    

    

    

    

    	1.3	
            Application of construction and interpretation provisions of Loan Agreement. Clauses 1 2 to 1.8 of the Loan Agreement apply, with any necessary
              modifications, to this Guarantee.

          

    	1.4	
            Inconsistency between Loan Agreement provisions and this Guarantee. This Guarantee shall be read together with the other Finance Documents, but in case
              of any conflict between the Loan Agreement and this Guarantee, the provisions of the Loan Agreement shall prevail.

          

    	1.5	
            Contractual recognition of bail-in. The Guarantor agrees to be bound by clause 22.7 (Contractual recognition of
                Bail-In) of the Loan Agreement as if it were a party to the Loan Agreement.

          

    	2	
            GUARANTEE

          

    	2.1	
            Guarantee and indemnity. The Guarantor unconditionally and irrevocably:

          

    	(a)	
            guarantees the due payment of all amounts payable by the Borrowers under or in connection with the Loan Agreement and the Finance Documents and the punctual performance by the Borrowers of all
              their respective obligations thereunder;

          

    	(b)	
            undertakes to pay to the Security Trustee or any other Creditor Party, on the Security Trustee's demand, any such amount which is not paid by the Borrowers when due and payable under or in
              connection with the Loan Agreement and any other Finance Document; and

          

    	(c)	
            as a separate, continuing and primary obligation agrees to fully indemnify the Security Trustee and (to the extent applicable) each other Creditor Party on the Security Trustee's demand in
              respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by the Security Trustee or the other Creditor Party concerned as a result of or in connection with any obligation or liability guaranteed by
              the Guarantor being or becoming unenforceable, invalid, void or illegal; and the amount recoverable under this indemnity shall be equal to the amount which the Security Trustee or the other Creditor Party concerned would otherwise have been
              entitled to recover.

          

    	2.2	
            No limit on number of demands. The Security Trustee may serve more than one demand under Clause 2.1.

          

    	2.3	
            Release of Guarantee. This Guarantee shall terminate and be cancelled upon the receipt by the Lender or any other Creditor Party of all amounts due or
              to become due to it hereunder in accordance with the terms hereof, whereupon, the Guarantor shall be fully released from any and all of its obligations hereunder and any other Finance Documents.

          

    	3	
            LIABILITY AS PRINCIPAL AND INDEPENDENT DEBTOR

          

    	3.1	
            Principal and independent debtor. The Guarantor shall be liable under this Guarantee as a principal and independent debtor and bccordingly it shall not
              have, as regards this Guarantee, any of the rights or defences of a surety.

          

    	3.2	
            Waiver of rights and defences. Without limiting the generality of Clause 3.1, none of the following shall give rise to the Guarantor being discharged,
              or its having any cause of action against any Creditor Party:

          

    	(a)	
            any amendment, novation, restatement or supplement being made to any of the Finance Documents;

          

    
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    	(b)	
            any arrangement or concession (including a rescheduling or acceptance of partial payments) relating to, or affecting, any of the Finance Documents;

          

    	(c)	
            any release or loss (even though negligent) of any right or Security Interest created by any of the Finance Documents;

          

    	(d)	
            any failure (even though negligent) promptly or properly to exercise or enforce any such right or Security Interest, including a failure to realise for its full market value an asset covered
              by such a Security Interest; or

          

    	(e)	
            any other Finance Document or any Security Interest now being or later becoming void, unenforceable, illegal or invalid or otherwise defective for any reason, including a neglect to register
              it.

          

    	4	
            EXPENSES

          

    	4.1	
            Costs of preservation of rights, enforcement etc. The Guarantor shall pay to the Security Trustee on its demand the amount of all expenses incurred by
              the Security Trustee or any other Creditor Party in connection with any matter arising out of this Guarantee or any Security Interest connected with it, including any advice, claim or proceedings relating to this Guarantee or such a Security
              Interest.

          

    	4.2	
            Fees and expenses payable under Loan Agreement. Clause 4.1 is without prejudice to the Guarantor's liabilities in respect of the Borrowers' obligations
              under clause 20 of the Loan Agreement (fees and expenses) and under similar provisions of the other Finance Documents.

          

    	5	
            ADJUSTMENT OF TRANSACTIONS

          

    	5.1	
            Reinstatement of obligation to pay. The Guarantor shall pay to the Security Trustee or, as the case may be, to any other Creditor Party on its demand
              any amount which any Creditor Party is required, or agrees, to pay pursuant to any claim by, or settlement with, a trustee in bankruptcy of the Borrowers or of another Security Party (or similar person) on the ground that the Loan Agreement
              or any other Finance Document, or a payment by the Borrowers or of another Security Party, was invalid or on any similar ground.

          

    	6	
            PAYMENTS

          

    	6.1	
            Method of payments. Any amount due under this Guarantee shall be paid:

          

    	(a)	
            in immediately available funds;

          

    	(b)	
            to such account as the Security Trustee may from time to time notify to the Guarantor;

          

    	(c)	
            without any form of set-off, cross-claim or condition; and

          

    	(d)	
            free and clear of any tax deduction except a tax deductibn which the Guarantor is required by law to make.

          

    	7	
            INTEREST

          

    	7.1	
            Accrual of interest. Any amount due under this Guarantee shall carry interest after the date on which the Security Trustee or any other Creditor Party
              demands payment of it until it is actually paid, unless interest on that same amount also accrues under the Loan Agreement.

          

    
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    	7.2	
            Calculation of interest. Interest under this Guarantee shall be calculated and accrue in the same way as interest under clause 5 of the Loan Agreement.

          

    	7.3	
            Guarantee extends to interest payable under Loan Agreement. For the avoidance of doubt, it is confirmed that this Guarantee covers all interest payable
              under the Loan Agreement, including that payable under clause 7 of the Loan Agreement.

          

    	8	
            SUBORDINATION

          

    	8.1	
            Subordination of rights of Guarantor. All rights which the Guarantor at any time has (whether in respect of this Guarantee or any other transaction)
              against the Borrowers, any other Security Party or their respective assets shall be fully subordinated to the rights of the Security Trustee or any other Creditor Party under the Finance Documents; and in particular, the Guarantor shall not:

          

    	(a)	
            claim, or in a bankruptcy of the Borrowers or any other Security Party prove for, any amount payable to the Guarantor by the Borrowers or any other Security Party, whether in respect of this
              Guarantee or any other transaction;

          

    	(b)	
            take or enforce any Security Interest for any such amount;

          

    	(c)	
            claim to set-off any such amount against any amount payable by the Guarantor to the Borrowers or any other Security Party; or

          

    	(d)	
            claim any subrogation or other right in respect of any Finance Document or any sum received or recovered by a Creditor Party under a Finance Document.

          

    	9	
            ENFORCEMENT

          

    	9.1	
            No requirement to commence proceedings against the Borrowers. Neither the Security Trustee nor any other Creditor Party will need to commence any
              proceedings under, or enforce any Security Interest created by, the Loan Agreement or any other Finance Document before claiming or commencing proceedings under this Guarantee.

          

    	9.2	
            Conclusive evidence of certain matters. However, as against the Guarantor:

          

    	(a)	
            any judgment or order of a court in England or the Marshall Islands or any other Relevant Jurisdiction in connection with the Loan Agreement; and

          

    	(b)	
            any written statement or admission of the Borrowers (absent any manifest error) in connection with the Loan Agreement or any other Finance Document,

          

    shall be binding and conclusive as to all matters of fact and law to which it relates.

    	9.3	
            Suspense account. The Security Trustee and any Creditor Party may, for the purpose of claiming or proving in a bankruptcy of the Borrowers or any other
              Security Party, place any sum received or recovered under or by virtue of this Guarantee or any Security Interest connected with it on a separate suspense or other nominal account without applying it in satisfaction of the Borrowers'
              obligations under the Loan Agreement or any other Finance Document.

          

    	10	
            REPRESENTATIONS AND WARRANTIES

          

    	10.1	
             General. The Guarantor represents and warrants to the Security Trustee as follows.

          

    
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    	10.2	
            Status. The Guarantor is duly incorporated and validly existing and in good standing under the laws of the Republic of the Marshall Islands, will be in
              compliance with the Republic of the Marshall Islands Economic Substance Regulation 2018 in accordance with its terms and time frame once the same becomes applicable and is not a FATCA FFI or a US Tax Obligor.

          

    	10.3	
            Corporate power. The Guarantor has the corporate capacity, and has taken all corporate action and obtained all consents necessary for it:

          

    	(a)	
            to execute this Guarantee; and

          

    	(b)	
            to make all the payments contemplated by, and to comply with this Guarantee.

          

    	10.4	
            Consents in force. All the consents referred to in Clause 10.3 remain in force and nothing has occurred which makes any of them liable to revocation.

          

    	10.5	
            Legal validity. This Guarantee constitutes the Guarantor's legal, valid and binding obligations enforceable against the Guarantor in accordance with its
              terms subject to any relevant insolvency laws affecting creditors' rights generally.

          

    	10.6	
            No conflicts. The execution by the Guarantor of this Guarantee and its compliance with this Guarantee will not involve or lead to a contravention of:

          

    	(a)	
            any law or regulation; or

          

    	(b)	
            the constitutional documents of the Guarantor; or

          

    	(c)	
            any contractual or other obligation or restriction which is binding on the Guarantor or any of its assets.

          

    	10.7	
            No withholding taxes. All payments which the Guarantor is liable to make under this Guarantee may be made without deduction or withholding for or on
              account of any tax payable under any law of any Relevant Jurisdiction.

          

    	10.8	
            No default. To the knowledge of the Guarantor, no Event of Default or Potential Event of Default has occurred and is continuing.

          

    	10.9	
            Information. All information which has been provided in writing by or on behalf of the Guarantor to the Security Trustee or any other Creditor Party in
              connection with any Finance Document satisfied the requirements of Clause 11.2; all audited financial statements which have been so provided satisfied the requirements of Clause 11.4; and there has been no material adverse change in the
              financial position or state of affairs of the Guarantor from that disclosed in the latest of those accounts which could (in the reasonable opinion of the Security Trustee or any other Creditor Party) affect the solvency of the Guarantor.

          

    	10.10	
            No litigation. No legal or administrative action involving the Guarantor has been commenced or taken or, to the Guarantor's knowledge, is likely to be
              commenced or taken which, in either case, would be likely to have a Material Adverse Effect on the Guarantor's financial position or profitability.

          

    	10.11	
            The Guarantor represents and warrants that:

          

    	(a)	
            its total debt net of cash will not exceed 75% of the total market value of its assets; and

          

    	(b)	
            the Guarantor's minimum Net Worth listed in Nasdaq will throughout the Security Period be at least United States Dollars fifteen million ($15,000,000).

          

    
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    	10.12	
            Disclosure of material facts. The Guarantor is not aware of any material facts or circumstances which have not been disclosed to the Security Trustee or
              any other Creditor Parties and which might, if disclosed, have adversely affected their decision (acting reasonably) considering whether or not to make loan facility of the nature contemplated by the Loan Agreement available to the Borrowers.

          

    	10.13	
            Copy Loan Agreement. The Guarantor has received a copy of the Loan Agreement and represents and warrants that it is fully aware of all the terms and
              provisions of the Loan Agreement and the other Finance Documents.

          

    	11	
            UNDERTAKINGS

          

    	11.1	
            General. The Guarantor undertakes with the Security Trustee to comply with the following provisions of this Clause 11 at all times during the Security
              Period, except as the Security Trustee may otherwise permit.

          

    	11.2	
            Information provided to be accurate. All financial and other information which is provided in writing by or on behalf of the Guarantor under or in
              connection with this Guarantee will be true and not misleading and will not omit any material fact or consideration.

          

    	11.3	
            Provision of financial statements. The Guarantor will send to the Security Trustee:

          

    	(a)	
            as soon as possible, but in no event later than 180 days after the end of each financial year of the Guarantor, the annual audited consolidated financial statements of the Guarantor and its
              subsidiaries; and

          

    	(b)	
            promptly after each written request by the Security Trustee, such further information about the financial condition, commitments and operations of its managed fleet and of each Security Party,
              as the Security Trustee may reasonably require.

          

    	11.4	
            Form of financial statements. All audited consolidated financial statements delivered under Clause 11.3 will:

          

    	(a)	
            be prepared in accordance with all applicable laws and GAAP consistently applied;

          

    	(b)	
            give a true and fair view of the state of affairs of the Guarantor at the date of those accounts and of the profit for the period to which those accounts relate; and

          

    	(c)	
            fully disclose or provide for all significant liabilities of the Guarantor.

          

    	11.5	
            Shareholder and creditor notices. The Guarantor will send the Security Trustee, at the same time as they are despatched, copies of all communications
              which are

          

    despatched to the Guarantor's shareholders and creditors or any class of them.

    	11.6	
            Consents. The Guarantor will maintain in force and promptly obtain or renew, and will promptly send certified copies to the Security Trustee of, all
              consents required:

          

    	(a)	
            for the Guarantor to perform its obligations under this Guarantee;

          

    	(b)	
            for the validity or enforceability of this Guarantee;

          

    and the Guarantor will comply with the terms of all such consents.

    	11.7	
            Maintenance of Security Interests. The Guarantor will:

          

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

          

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

          

    	11.8	
            Notification of litigation. The Guarantor will provide the Security Trustee with details of any legal or administrative action involving the Guarantor
              as soon as such action is instituted or it becomes apparent to the Guarantor that it is likely to be instituted, unless it is clear that the legal or administrative action cannot be considered material in the context of this Guarantee.

          

    	11.9	
            Notification of default. The Guarantor will notify the Security Trustee as soon as the Guarantor becomes aware of:

          

    	(a)	
            the occurrence of an Event of Default or a Potential Event of Default which are continuing; or

          

    	(b)	
            any matter which indicates that an Event of Default or a Potential Event of Default which are continuing may have occurred;

          

    and will thereafter keep the Security Trustee fully up-to-date with all developments.

    	11.10	
            Maintenance of status. The Guarantor will maintain its separate corporate existence and remain in good standing under the laws of the Republic of the
              Marshall Islands and will comply in all respects with the Republic of the Marshall Islands Economic Substance Regulation 2018 in accordance with its terms and time frame once the same becomes applicable.

          

    	11.11	
            Negative pledge. The Guarantor shall procure that the Borrowers will not, create or permit to arise any Security Interest over any asset present or
              future except Security Interests created or permitted by the Finance Documents and except for Permitted Security Interests.

          

    	11.12	
            No disposal of assets, change of business. The Guarantor will not, and shall procure that the Borrowers will not:

          

    	(a)	
            transfer, lease or otherwise dispose of all or a substantial part of its assets, whether by one transaction or a number of transactions, whether related or not except in the usual course of
              its trading operations; or

          

    	(b)	
            make any substantial change to the nature of its business from that dxisting at the date of this Guarantee.

          

    	11.13	
            No merger etc. The Guarantor shall procure that the Borrowers will not, enter into any form of merger, sub-division, amalgamation or other
              reorganisation, and shall ensure that throughout the Security Period, no change shall be made to the legal or beneficial ownership of the shares in the Guarantor without the prior written consent of the Lenders, which shall not be
              unreasonably withheld. For the avoidance of doubt the Lenders consent and agree to any changes relating to the Guarantor's trading

          

    
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    shares in the normal course of business and confirm that such changes do not violate the terms of this Guarantee.

    	11.14	
            Maintenance of ownership of Borrowers. The Guarantor shall remain the beneficial owner of the entire issued and allotted share capital of the Borrowers,
              free from any Security Interest, and shall ensure that throughout the Security Period, no change shall be made to the legal ownership of the shares in the Borrowers. For the avoidance of doubt the last sentence of Clause 11.13 above applies
              to this Clause 11.14.

          

    	11.15	
            Sanctions.

          

    The Guarantor confirms and undertakes that it shall (and shall procure that the Borrowers shall) comply with all Sanctions applicable to it
      or the Borrowers, in accordance with the Loan Agreement.

    	11.16	
            Application of FATCA. The Guarantor shall not become a FATCA FFI or a US Tax Obligor, without the prior written consent of the Lenders.

          

    	11.17	
            Pari Pasu. The obligations of the Guarantor under this Guarantee and each of the Finance Documents to which the Guarantor is or is to be a party are
              direct, general and unconditional obligations of the Guarantor and rank at least pari passu with all other present and future unsecured and unsubordinated Financial Indebtedness of the Guarantor except for obligations which are mandatorily
              preferred by operation of law and not by contract

          

    	12	
            JUDGMENTS AND CURRENCY INDEMNITY

          

    	12.1	
            Judgments relating to Loan Agreement. This Guarantee shall cover any amount payable by the Borrowers under or in connection with any judgment relating
              to the Loan Agreement.

          

    	12.2	
            Currency indemnity. In addition, clause 21.5 (Currency indemnity) of the Loan Agreement shall apply, with any
              necessary adaptations, in relation to this Guarantee.

          

    	13	
            SET-OFF

          

    	13.1	
            Application of credit balances. The Security Trustee may at any time after the occurrence of an Event of Default which is continuing 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 Guarantor at any office in any country of the Security Trustee or any other
              Creditor Party in or towards satisfaction of any sum then due from the Guarantor to the Security Trustee under this Guarantee; and

          

    	(b)	
            for that purpose:

          

    	

          	(i)	
            break, or alter the maturity of, all or any part of a deposit of the Guarantor;

          

    	

          	(ii)	
            convert or translate all or any part of a deposit or other credit balance into Dollars;

          

    	

          	(iii)	
            enter into any other transaction or make any entry with regard to the credit balance which the Security Trustee considers appropriate.

          

    	13.2	
            Existing rights unaffected. The Security Trustee shall not be obliged to exercise any of its rights under Clause 13.1; 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

          

    
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    remedy to which the Security Trustee or any other Creditor Party is entitled (whether under the general law or any document).

    	14	
            NO SET-OFF OR TAX DEDUCTION

          

    	14.1	
            No deductions. All amounts due from the Guarantor under this Guarantee 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 Guarantor is required by law to make.

          

    	14.2	
            Grossing-up.

          

    	(a)	
            If the Guarantor is required by law to make a tax deduction from any payment:

          

    	

          	(i)	
            the Guarantor shall notify the Security Trustee as soon as it becomes aware of the requirement;

          

    	

          	(ii)	
            the Guarantor shall pay the tax deducted to the appropriate taxation authority promptly, and in any event before any fine or penalty arises;

          

    	

          	(iii)	
            the amount due in respect of the payment shall be increased by the amount necessary to ensure that the Security Trustee or any other 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.

          

    	(b)	
            If the Guarantor is required to make a FATCA deduction, the provisions of Clause 22.6 (FATCA Deduction) of the Loan Agreement shall apply to this
              Guarantee as if they were incorporated into it with any necessary modifications.

          

    	14.3	
            Evidence of payment of taxes. Within 1 month after making any tax deduction, the Guarantor shall deliver to the Security Trustee documentary evidence
              satisfactory to the Lender that the tax had been paid to the appropriate taxation authority.

          

    	14.4	
            Exclusion of tax on overall net income. In this Clause 14 "tax deduction" means any deduction or withholding for or on account of any present or future
              tax except tax on any Creditor Party's overall net income.

          

    	15	
            SUPPLEMENTAL

          

    	15.1	
            Continuing guarantee. This Guarantee shall remain in force as a continuing security at all times during the Security Period.

          

    	15.2	
            Rights cumulative, non-exclusive. The Security Trustee's rights under and in connection with this Guarantee are cumulative, may be exercised as often as
              appears expedient and shall not be taken to exclude or limit any right or remedy conferred by law.

          

    	15.3	
            No impairment of rights under Guarantee: If the Security Trustee omits to exercise, delays in exercising or invalidly exercises any of its rights under
              this Guarantee, that shall not impair that or any other right of the Security Trustee under this Guarantee.

          

    
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    	15.4	
            Severability of provisions. If any provision of this Guarantee is or subsequently becomes void, illegal, unenforceable or otherwise invalid, that shall
              not affect the validity, legality or enforceability of its other provisions.

          

    	15.5	
            Guarantee not affected by other security. This Guarantee shall not impair, nor be impaired by, any other guarantee, any Security Interest or any right
              of set-off or netting or to combine accounts which any Creditor Party may now or later hold in connection with the Loan Agreement.

          

    	15.6	
            Guarantor bound by Loan Agreement. The Guarantor agrees with the Security Trustee to be bound by all provisions of the Loan Agreement which are
              applicable to the Security Parties in the same way as if those provisions had been set out (with any necessary modifications) in this Guarantee.

          

    	15.7	
            Applicability of provisions of Guarantee to other Security Interests. Any Security Interest which the Guarantor creates (whether at the time at which it
              signs this Guarantee or at any later time) to secure any liability under this Guarantee shall be a principal and independent security, and Clauses 3 and 18 shall, with any necessary modifications, apply to it, notwithstanding that the
              document creating the Security Interest neither describes it as a principal or independent security nor includes provisions similar to Clauses 3 and 18.

          

    	15.8	
            Applicability of provisions of Guarantee to other rights. Clauses 3 and 18 shall also apply to any right of set-off or netting or to combine accounts
              which the Guarantor creates by an agreement entered into at the time of this Guarantee or at any later time (notwithstanding that the agreement does not include provisions similar to Clauses 3 and 18), being an agreement referring to this
              Guarantee.

          

    	15.9	
            Third party rights. A person (other than a Creditor Party) who is not a party to this Guarantee has no right under the Contracts (Rights of Third
              Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Guarantee.

          

    	16	
            TRANSFER

          

    	16.1	
            Transfer by Security Trustee. The Security Trustee may transfer its rights under and in connection with this Guarantee to the same extent as it may
              transfer its rights under the Loan Agreement and the other Finance Documents.

          

    	16.2	
            Benefit of this Guarantee. This Guarantee will bind the Guarantor and its successors and will enure to the benefit of the Creditor Parties and their
              respective successors, transferees and assigns, as if each of the other Creditor Parties had also been a Party. The Guarantor acknowledges the transfer provisions in clause 26 (Transfers and Changes in
                Lending Offices) of the Loan Agreement and agrees that any person in favour of whom a transfer is made in accordance with those provisions will be entitled to the benefit of this Guarantee.

          

    	17	
            NOTICES

          

    	17.1	
            Notices to Guarantor. Any notice or demand to the Guarantor under or in connection with this Guarantee shall be given by letter or fax or electronic
              mail at:

          

    Eurodry Ltd.

      c/o Eurobulk Ltd.

      4, Messogiou & Evropis Street

      151 24 Maroussi

      Greece

      Fax No: +30 2111 804097

      Attn: Tassos Aslidis/Simos Pariaros

    

    

    
      10

      
        

    

    
    

    

    or to such other address, fax number, or electronic mail or officer which the Guarantor may notify to the Security Trustee.

    	17.2	
            Application of certain provisions of Loan Agreement. Clauses 28.3, 28.4 and 28.5 of the Loan Agreement apply to any notice or demand under or in
              connection with this Guarantee.

          

    	17.3	
            Validity of demands. A demand under this Guarantee shall be valid notwithstanding that it is served:

          

    	(a)	
            on the date on which the amount to which it relates is payable by the Borrowers under the Loan Agreement;

          

    	(b)	
            at the same time as the service of a notice under paragraph (a)(i) of clause 19.2 of the Loan Agreement;

          

    and a demand under this Guarantee may refer to all amounts payable under or in connection with the Loan Agreement without specifying a
      particular sum or aggregate sum.

    	17.4	
            Notices to Security Trustee. Any notice to the Security Trustee under or in connection with this Guarantee shall be sent to the same address and in the
              same manner as notices to the Security Trustee under the Loan Agreement.

          

    	18	
            INVALIDITY OF LOAN AGREEMENT

          

    	18.1	
            Invalidity of Loan Agreement. In the event of:

          

    	(a)	
            the Loan Agreement now being or later becoming, with immediate or retrospective effect, void, illegal, unenforceable or otherwise invalid for any other reason whatsoever, whether of a similar
              kind or not; or

          

    	(b)	
            without limiting the scope of paragraph (a), a bankruptcy of the Borrowers, the introduction of any law or any other matter resulting in the Borrowers being discharged from liability under the
              Loan Agreement, or the Loan Agreement ceasing to operate (for example, by interest ceasing to accrue),

          

    this Guarantee shall cover any amount which would have been or become payable under or in connection with the Loan Agreement if the Loan
      Agreement had been and remained entirely valid, legal and enforceable, or the Borrowers had not suffered bankruptcy, or any combination of such events or circumstances, as the case may be, and the Borrowers had remained fully liable under it for
      liabilities whether invalidly incurred or validly incurred but subsequently retrospectively invalidated; and references in this Guarantee to amounts payable by the Borrowers under or in connection with the Loan Agreement shall include references to
      any amount which would have so been or become payable as aforesaid.

    	18.2	
            Invalidity of Finance Documents. Clause 18.1 also applies to each of the Finance Documents to which the Borrowers are a party.

          

    	19	
            GOVERNING LAW AND JURISDICTION

          

    	19.1	
            English law. This Guarantee (and any non contractual obligations connected with it) shall be governed by, and construed in accordance with, English law.

          

    	19.2	
             Exclusive English jurisdiction. Subject to Clause 19.3, the courts of England shall have exclusive jurisdiction to settle any Dispute.

          

    
      11

      
        

    

    

    

    

    

    	19.3	
            Choice of forum for the exclusive benefit of the Security Trustee. Clause 19.2 is for the exclusive benefit of the Security Trustee, 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 Guarantor shall not commence any proceedings in any country other than England in relation to a Dispute.

    	19.4	
            Service of process.

          

    	(a)	
            Without prejudice to any other mode of service allowed under any relevant law, the Guarantor:

          

    	

          	(i)	
            irrevocably appoints Hill Dickinson at The Broadgate Tower, 20 Primrose Street, London, EC2A 2EW, England (Tel.: +44 (0)20 7283 9033, fax' +44 (0)20 7283 1144, attention of: Mr. Roderick James
              Palmer), as its agent for service of process in relation to any proceedings before the English courts in connection with this Guarantee and any Finance Document; and

          

    	

          	(ii)	
            agrees that (on the understanding that process has first duly been served upon the process agent) failure by a process agent to notify the Guarantor of the process will not invalidate the
              proceedings concerned.

          

    	

          	(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 or terminates its appointment as agent for service of process, the
              Guarantor must immediately (and in any event within seven (7) days of such event taking place) appoint another agent on terms reasonably acceptable to the Security Trustee. Failing this, the Security Trustee may appoint another agent for this
              purpose and will duly notify the Guarantor on the contact details of the same.

          

    	19.5	
            Creditor Parties' rights unaffected. Nothing in this Clause 19 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.

          

    	19.6	
            Meaning of "proceedings" and "Dispute". In this Clause 19, "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 Guarantee (including a dispute relating to the existence, validity or termination of this Guarantee) or any non-contractual obligation arising out
              of or in connection with this Guarantee.

          

    THIS GUARANTEE has been entered into on the date stated at the beginning of
      this Guarantee.

    
      12

      
        

    

    

    

    EXECUTION PAGE

    

    

    	
            GUARANTOR

          	 	 	 	 
	 	 	 	 	 
	
            EXECUTED AS A DEED

          	
            )

          	 	 	 
	
            by Stefania Karmiri

          	
            )

          	 	
            /s/ Stefania Karmiri

          	 
	
            for and on behalf of

          	
            )

          	 	 	 
	
            EURODRY LTD.

          	
            )

          	 	 	 
	
            of the Marshall Islands

          	
            )

          	 	 	 
	
            pursuant to a power of attorney

          	
            )

          	 	 	 
	
            dated 13 January 2021

          	
            )

          	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    

    

    

    

    	
            in the presence of

          	 
	 	 	 
	
            Witness:

          	
            /s/ Avramidou Aikaterini Maria

          	 
	
            Name:

          	
            Avramidou Aikaterini Maria

          	 
	
            Address:

          	
            13, Defteras Merarchias Street

              Piraeus, 18535, Greece,

          	 
	
            Occupation:

          	
            Attorney-at-law

          	 
	 	 	 

    

    

    	
            SECURITY TRUSTEE

          	 	 	 	 
	 	 	 	 	 
	
            EXECUTED AS A DEED

          	
            )

          	 	 	 
	
            by Stavros Yagos

          	
            )

          	 	
            /s/ Stavros Yagos

          	 
	
            and Nikoletta Mitropoulou

          	
            )

          	 	
            /s/ Nikoletta Mitropoulou

          	 
	
            for and on behalf of

          	
            )

          	 	 	 
	
            EUROBANK S.A.

          	
            )

          	 	 	 
	
            pursuant to a power of attorney

          	
            )

          	 	 	 
	
            dated 20 March 2020

          	
            )

          	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    	
            in the presence of

          	 
	 	 	 
	
            Witness:

          	
            /s/ Avramidou Aikaterini Maria

          	 
	
            Name:

          	
            Avramidou Aikaterini Maria

          	 
	
            Address:

          	
            13, Defteras Merarchias Street

              Piraeus, 18535, Greece,

          	 
	
            Occupation:

          	
            Attorney-at-law

          	 
	 	 	 

    

    

    

    

  

  13Exhibit 4.28

  

   

  

  
    

    

    EXECUTION VERSION

    

    

    DATED               22 February                2021

    EIRINI SHIPPING LTD

    - and -

    SINOPAC CAPITAL INTERNATIONAL (HK) LIMITED

    ____________________________________

    

    LOAN AGREEMENT

      in respect of a loan of

      up to USD5,000,000

    ____________________________________

    

    

    
      
        

    

    
    Index

    

    

    	
            Clause

          	 	
            Page

          
	 	 	 
	
            1

          	
            Purpose, definitions and construction

          	
            3

          
	 	 	 
	
            2

          	
            The Commitment and cancellation

          	
            16

          
	 	 	 
	
            3

          	
            Interest and Interest Periods

          	
            17

          
	 	 	 
	
            4

          	
            Repayment and prepayment

          	
            19

          
	 	 	 
	
            5

          	
            Fees and expenses

          	
            21

          
	 	 	 
	
            6

          	
            Payments and taxes; accounts and calculations

          	
            22

          
	 	 	 
	
            7

          	
            Representations and warranties

          	
            25

          
	 	 	 
	
            8

          	
            Undertakings

          	
            30

          
	 	 	 
	
            9

          	
            Conditions

          	
            41

          
	 	 	 
	
            10

          	
            Events of Default

          	
            42

          
	 	 	 
	
            11

          	
            Indemnities

          	
            46

          
	 	 	 
	
            12

          	
            Unlawfulness and increased costs

          	
            47

          
	 	 	 
	
            13

          	
            Application of moneys, set off, pro-rata payments and miscellaneous

          	
            48

          
	 	 	 
	
            14

          	
            Assignment, transfer and lending office

          	
            52

          
	 	 	 
	
            15

          	
            Notices and other matters

          	
            54

          
	 	 	 
	
            16

          	
            Governing law

          	
            55

          
	 	 	 
	
            17

          	
            Jurisdiction

          	
            55

          
	 	 	 
	
            Schedule 1 Form of Drawdown Notice

          	
            58

          
	 	 
	
            Schedule 2 Conditions precedent and subsequent

          	
            59

          
	 	 
	
            Execution Page

          	
            66

          

    

    

    

    

    
      2

      
        

    

    THIS AGREEMENT dated 22 February 2021 is made BY and BETWEEN:

    	(1)	
            EIRINI SHIPPING LTD as Borrower; and

          

    	(2)	
            SINOPAC CAPITAL INTERNATIONAL (HK) LIMITED as Lender.

          

    NOW IT IS HEREBY AGREED AS FOLLOWS:

    	1	
            PURPOSE, DEFINITIONS AND CONSTRUCTION

          

    	1.1	
            Purpose

          

    This Agreement sets out the terms and conditions upon which the Lender agrees to make available to the Borrower a loan facility of up to
      five million Dollars (USD5,000,000) in a single advance for the purposes of enabling the Borrower to refinance the Vessel.

    	1.2	
            Definitions

          

    In this Agreement, unless the context otherwise requires:

    “Annual Financial Statements” means the financial statements for a financial year of each of the
      Borrower and the Corporate Guarantor delivered pursuant to clause 8.1.6(a);

    “Approved Broker” means Clarksons Valuation Limited, Maersk Broker KS, Simpsons Spence and Young
      Ltd, Howe Robinson Partners, Arrow Shipbroking Group, Fearnleys AS or an affiliate of any of the entities referred to the aforementioned or such ship broker as the Lender may agree with the Borrower is an Approved Broker for the purposes of this
      Agreement;

    “Available Facility” means, at any relevant time, such part of the Commitment which is available
      for borrowing under this Agreement at such time in accordance with clause 9;

    “Balloon Instalment” has the meaning given to it in clause 4.1.1, as the same may reduce from time
      to time;

    “Banking Day” means a day on which dealings in deposits in USD are carried on in the London
      Interbank Eurocurrency Market and (other than Saturday or Sunday) on which banks are open for business in London, Athens, Hong Kong, Taipei and New York City (or any other relevant place of payment under clause 6);

    “Borrowed Money” means Indebtedness in respect of (i) money borrowed or raised and debit balances
      at banks, (ii) any bond, note, loan stock, debenture or similar debt instrument, (iii) acceptance or documentary credit facilities, (iv) receivables sold or discounted (otherwise than on a non-recourse basis), (v) deferred payments for assets or
      services acquired, (vi) finance leases and hire purchase contracts, (vii) swaps, forward exchange contracts, futures and other derivatives, (viii) any other transaction (including without limitation forward sale or purchase agreements) having the
      commercial effect of a borrowing or raising of money or of any of (ii) to (vii) above and (ix) guarantees in respect of Indebtedness of any person falling within any of (i) to (viii) above;

    
      3

      
        

    

    “Borrower” means Eirini Shipping Ltd, a corporation incorporated in the Republic of Liberia and
      having its registered office at 80 Broad Street, Monrovia, Liberia;

    “Break Costs” means the aggregate amount of all losses, premiums, penalties, costs and expenses
      whatsoever certified by the Lender at any time and from time to time as having been incurred by the Lender in maintaining or funding the Loan or in liquidating or re-employing fixed deposits acquired to maintain the same as a result of either:

    	

          	(a)	
            any repayment or prepayment of the Loan or any part thereof otherwise than (i) in accordance with clause 4.1, or (ii) on an Interest Payment Date whether on a voluntary or involuntary basis or
              otherwise howsoever; or

          

    	

          	(b)	
            the Borrower failing or being incapable of drawing the Loan after the Drawdown Notice has been given;

          

    “Casualty Amount” means five hundred thousand Dollars (USD500,000) (or the equivalent in any other
      currency);

    “Certified Copy” means in relation to any document delivered or issued by or on behalf of any
      company, a copy of such document certified as a true, complete and up to date copy of the original by any of the directors or officers for the time being of such company or by such company’s attorneys or solicitors;

    “Charter Assignment” means a specific assignment of any Extended Employment Contract required to be
      executed hereunder by the Borrower in favour of the Lender (including any notices and/or acknowledgements and/or undertakings associated therewith) in such form as the Lender may reasonably require;

    “Classification” means, in relation to the Vessel, the highest class available for a vessel of her
      type with the Classification Society;

    “Classification Society” means any classification society which is a member of the International
      Association of Classification Societies which the Lender shall, at the request of the Borrower, have agreed in writing shall be treated as the classification society in relation to the Vessel for the purposes of the relevant Ship Security Documents;

    “Co-Assured” means, any other person (other than the Borrower or the Manager) who is named as a
      co-assured or a member under the Insurance of the Vessel.

    “Code” means the US Internal Revenue Code of 1986, as amended, and the regulations promulgated and
      rulings issued thereunder;

    “Commitment” means five million Dollars (USD5,000,000) which the Lender is obliged to lend to the
      Borrower under this Agreement, as such amount may be reduced and/or cancelled under this Agreement;

    “Compulsory Acquisition” means, in respect of the Vessel, requisition for title or other compulsory
      acquisition including, if the Vessel is not released therefrom within the Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or confiscation howsoever for any reason (but

    
      4

      
        

    

    excluding requisition for use or hire) by or on behalf of any Government Entity or other competent authority or by pirates, hijackers,
      terrorists or similar persons; and “Relevant Period” means for the purposes of this definition of Compulsory Acquisition either (i) one (1) calendar month or, (ii) in respect of pirates, hijackers, terrorists
      or similar persons, if relevant underwriters confirm in writing (in terms satisfactory to the Lender) prior to the end of such one (1) month period that such capture, appropriation, forfeiture, seizure, detention, deprivation or confiscation will be
      fully covered by the Borrower’s relevant insurances, the shorter of twelve (12) months after the date upon which the relevant incident occurred and such period at the end of which the relevant cover expires;

    “Constitutional Documents” means, in relation to a Security Party, its memorandum and articles of
      association, by-laws and/or any other documents that form part of its constitution, including those referred to as such in any certificate delivered pursuant to schedule 2;

    “Corporate Guarantee” means the unconditional, irrevocable and on demand guarantee of the
      obligations of the Borrower under this Agreement required to be executed by the Corporate Guarantor in favour of the Lender in such form as the Lender may reasonably require;

    “Corporate Guarantor” means EuroDry Ltd., a corporation incorporated in the Republic of the
      Marshall Islands with its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;

    “Default” means any Event of Default or any event or circumstance which with the giving of notice
      or lapse of time or the satisfaction of any other condition (or any combination thereof) would constitute an Event of Default;

    “Dollars” and “USD” mean the lawful currency of the USA and
      in respect of all payments to be made under any of the Security Documents means funds which are for same day settlement in the New York Clearing House Interbank Payments System (or such other US dollar funds as may at the relevant time be customary
      for the settlement of international banking transactions denominated in US dollars);

    “Drawdown” means a drawdown of the Loan Facility;

    “Drawdown Date” means any date being a Banking Day falling during the Drawdown Period on which the
      Loan is, or is to be, made available;

    “Drawdown Notice” means a notice substantially in the form of schedule 1;

    “Drawdown Period” means the period commencing on the Execution Date and ending on the earliest of
      (i) the date falling three (3) months from the Execution Date, (ii) such later date as the Lender may agree in its sole discretion and (iii) any date on which the Commitment is finally cancelled or fully drawn under the terms of this Agreement;

    “Earnings” means all moneys whatsoever from time to time due or payable to the Borrower during the
      Facility Period arising out of the use or operation of the Vessel including (but without limiting the generality of the foregoing) all freight, hire and passage moneys, income arising under pooling arrangements, compensation payable to the Borrower
      in event of requisition

    
      5

      
        

    

    of the Vessel for hire, remuneration for salvage and towage services, demurrage and detention moneys, and damages for breach (or payments
      for variation or termination) of any charterparty or other contract (including any contract of affreightment) for the employment of the Vessel (including any proceeds under any loss of hire insurance, if applicable);

    “EIAPP Certificate” means the Engine International Air Pollution Prevention Certificate issued or
      to be issued pursuant to Annex VI of the International Convention for the Prevention of Pollution from Ships, MARPOL 73/78 (Regulations for the Prevention of Air Pollution from Ships) in relation to the Vessel;

    “Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, assignment, title retention
      having a similar effect, preferential right, option, trust arrangement or security interest or other encumbrance, security or arrangement conferring howsoever a priority of payment in respect of any obligation of any person (excluding preferential
      payment rights granted by preferred shares);

    “Environmental Approvals” means all authorisations, consents, licences, permits, exemptions or
      other approvals required under applicable Environmental Laws;

    “Environmental Claim” means (i) any claim by, or directive from, any applicable Government Entity
      alleging breach of, or non-compliance with, any Environmental Laws or Environmental Approvals or otherwise howsoever relating to or arising out of an Environmental Incident or (ii) any claim by any other third party howsoever relating to or arising
      out of an Environmental Incident (and, in each such case, “claim” shall include a claim for damages and/or direction for and/or enforcement relating to clean-up costs, removal, compliance, remedial action or otherwise) or (iii) any Proceedings
      arising from any of the foregoing;

    “Environmental Incident” means, regardless of cause, (i) any discharge or release of
      Environmentally Sensitive Material from the Vessel; (ii) any incident in which Environmentally Sensitive Material is discharged or released from a vessel other than the Vessel which involves collision between the Vessel and such other vessel or some
      other incident of navigation or operation, in either case, where the Vessel , the Manager and/or the Borrower and/or the relevant Group Member and/or the Operator are actually, contingently or allegedly at fault or otherwise howsoever liable (in
      whole or in part) or (iii) any incident in which Environmentally Sensitive Material is discharged or released from a vessel other than the Vessel and where the Vessel is actually or potentially liable to be arrested as a result and/or where the
      Manager and/or the Borrower and/or other Group Member and/or the Operator are actually, contingently or allegedly at fault or otherwise howsoever liable;

    “Environmental Laws” means all laws, regulations, conventions and agreements whatsoever relating to
      pollution, human or wildlife well-being or protection of the environment (including, without limitation, the United States Oil Pollution Act of 1990 and any comparable laws of the individual States of the USA);

    “Environmentally Sensitive Material” means oil, oil products or any other products or substance
      which are polluting, toxic or hazardous or any

    
      6

      
        

    

    substance the release of which into the environment is howsoever regulated, prohibited or penalised by or pursuant to any Environmental
      Law;

    “Event of Default” means any of the events or circumstances listed in clause 10.1;

    “Execution Date” means the date on which this Agreement has been executed by all the parties
      hereto;

    “Extended Employment Contract” means, in respect of the Vessel and at any relevant time, any
      bareboat charterparty (irrespective of the duration of such charterparty) or any time charterparty or other contract of employment of such ship (including the entry of the Vessel in any pool) which has a remaining tenor exceeding twelve (12) months
      (excluding any options to renew or extend such tenor) at such time;

    “Facility Period” means the period starting on the date of this Agreement and ending on such date
      as all obligations whatsoever of all of the Security Parties under or pursuant to the Security Documents whensoever arising, actual or contingent, have been irrevocably paid, performed and/or complied with;

    “FATCA” means:

    	

          	(i)	
            sections 1471 to 1474 of the US Internal Revenue Code of 1986 (the “Code”) or any associated regulations or other official guidance;

          

    	

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

          

    	

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

          

    “FATCA Application Date” means:

    	

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

          

    	

          	(ii)	
            in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraph (a) above, the first date from which such payment may become subject to a deduction
              or withholding required by FATCA;

          

    “FATCA Deduction” means a deduction or withholding from a payment under a Security Document
      required by FATCA;

    “FATCA Exempt Party” means a party to a Security Document that is entitled to receive payments free
      from any FATCA Deduction;

    “FATCA FFI” means a foreign financial institution as defined in section 1471(d)(4) of the Code
      which, if the Bank is not a FATCA Exempt Party, could be required to make a FATCA Deduction;

    
      7

      
        

    

    “Final Repayment Date” means the date falling 60 Months after the Drawdown Date;

    “Flag State” means the Republic of Liberia or any other country, or such other state or territory
      which is acceptable to the Lender, on whose flag the Vessel is or is to be registered in the ownership of the Borrower;

    “General Assignment” means, in respect of the Vessel, the deed of assignment of its earnings,
      insurances and requisition compensation executed or to be executed by the Borrower in favour of the Lender in such form as the Lender may reasonably require;

    “Government Entity” means any national or local government body, tribunal, court or regulatory or
      other agency and any organisation of which such body, tribunal, court or agency is a part or to which it is subject;

    “Group” means, at any relevant time, the Corporate Guarantor and its Subsidiaries (including the
      Borrower);

    “Group Member” means any member of the Group;

    “IAPP Certificate” means the International Air Pollution Prevention Certificate issued or to be
      issued pursuant to Annex VI of the International Convention for the Prevention of Pollution from Ships, MARPOL 73/78 (Regulations for the Prevention of Air Pollution from Ships) in relation to the Vessel;

    “Indebtedness” means any obligation howsoever arising (whether present or future, actual or
      contingent, secured or unsecured as principal, surety or otherwise) for the payment or repayment of money;

    “Insurances” means all policies and contracts of insurance (which expression includes all entries
      of the Vessel in a protection and indemnity or war risks association) which are from time to time during the Facility Period in place or taken out or entered into by or for the benefit of the Borrower (whether in the sole name of the Borrower, or in
      the joint names of the Borrower and the Mortgagee or otherwise) in respect of the Vessel or otherwise howsoever in connection with the Vessel and all benefits thereof (including claims of whatsoever nature and return of premiums);

    “Insurance Assignment” means a specific assignment of any Insurances required to be executed
      hereunder by a Co-Assured in favour of the Lender (including any notices and/or acknowledgements and/or undertakings associated therewith) in such form as the Lender may reasonably require;

    “Interest Payment Date” means the last day of an Interest Period and, if an Interest Period is
      longer than three (3) months, the date falling at the end of each successive period of three (3) months from the start of such Interest Period;

    “Interest Period” means each period determined in accordance with clause 3.2 and, in relation to
      any unpaid sum, each period determined in accordance with clause 3.3;

    “ISM Code” means in relation to its application to the Borrower, the Vessel and its operation:

    
      8

      
        

    

    	

          	(a)	
            ‘The International Management Code for the Safe Operation of Ships and for Pollution Prevention’, currently known or referred to as the ‘ISM Code’, adopted by the Assembly of the International
              Maritime Organisation by Resolution A.741(18) on 4 December 1993 and incorporated on 19 May 1994 into Chapter IX of the International Convention for Safety of Life at Sea 1974 (SOLAS 1974); and

          

    	

          	(b)	
            all further resolutions, circulars, codes, guidelines, regulations and recommendations which are now or in the future issued by or on behalf of the International Maritime Organisation or any
              other entity with responsibility for implementing the ISM Code, including, without limitation, the ‘Guidelines on implementation or administering of the International Safety Management (ISM) Code by Administrations’ produced by the
              International Maritime Organisation pursuant to Resolution A.788(19) adopted on 25 December 1995,

          

    as the same may be amended, supplemented or replaced from time to time;

    “ISM Code Documentation” means, in relation to the Vessel, the document of compliance (DOC) and
      safety management certificate (SMC) issued by a Classification Society pursuant to the ISM Code in relation to the Vessel within the periods specified by the ISM Code;

    “ISM SMS” means the safety management system which is required to be developed, implemented and
      maintained under the ISM Code;

    “ISPS Code” means the International Ship and Port Security Code of the International Maritime
      Organisation and includes any amendments or extensions thereto and any regulations issued pursuant thereto;

    “ISSC” means an International Ship Security Certificate issued in respect of the Vessel pursuant to
      the ISPS Code;

    “Latest Accounts” means, in respect of any fiscal year of the Borrower and the Corporate Guarantor,
      the latest annual unaudited unconsolidated accounts of the Borrower and the latest annual audited consolidated accounts of the Corporate Guarantor required to be prepared pursuant to clause 8.1.6;

    “Lender” means SinoPac Capital International (HK) Limited having its registered office at Suites
      3306, 33/F., Tower 1, The Gateway, 25 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong (fax no. +886-2-81612452);

    “LIBOR” means, in relation to the Loan:

    	

          	(a)	
            the applicable Screen Rate; or

          

    	

          	(b)	
            (if no such Screen Rate is available) the arithmetic mean of the rates quoted to the Lender in the London Interbank Market,

          

    each as of the Specified Time on the Quotation Day for Dollars and for a period equal in length to the Interest Period of the Loan and, in
      each case, if that rate is less than zero, LIBOR shall be deemed to be zero;

    “Loan” means the loan made or to be made under the Loan Facility or the principal amount
      outstanding for the time being of the loan;

    
      9

      
        

    

    “Loan Facility” means the loan facility provided by the Lender on the terms and subject to the
      conditions of this Agreement in an amount not exceeding the lesser of (i) five million Dollars (USD5,000,000) and (ii) 65% of the Market Value of the Vessel (to be determined immediately prior to the Drawdown Date);

    “Management Agreement” means, in respect of the Vessel, the agreement between the Borrower and the
      Manager, in a form approved by the Lender;

    “Manager” means Eurobulk Ltd., a corporation incorporated in the Republic of Liberia with its
      registered office at 80 Broad Street, Monrovia, Liberia and having its place of business at 4 Messogiou & Evropis Street, 151 24 Maroussi, Greece, or any other commercial and/or technical manager appointed by the Borrower, with the prior written
      consent of the Lender (such consent not to be unreasonably withheld), as the manager of the Vessel;

    “Manager's Undertaking” means, in respect of the Vessel, the undertaking and assignment of
      insurances required to be executed hereunder by the Manager in favour of the Lender in such form as the Lender may reasonably require;

    “Margin” means 3.60% (three point six per cent) per annum;

    “Market Value” means the market value of the Vessel as determined from time to time in accordance
      with clause 8.2.1;

    “Material Adverse Effect” means, a material adverse effect on:

    	

          	(a)	
            the business, operations, property, condition (financial or otherwise) or prospects of the Group taken as a whole; or

          

    	

          	(b)	
            the ability of the Borrower or the Guarantor to perform its obligations under the relevant Security Documents; or

          

    	

          	(c)	
            the validity or enforceability of, or the effectiveness or ranking of, any Encumbrance granted or purporting to be granted pursuant to any of the Security Documents, or the rights or remedies
              of the Lender under any of the Security Documents;

          

    “Maturity Date” means the date falling 5 years after the Drawdown Date of the Loan;

    “MII Policy” means a mortgagee’s interest insurance policy in respect of the Vessel to be effected
      by the Lender on or before the Drawdown Date to cover the Vessel as the same may be renewed or replaced annually thereafter and maintained throughout the Facility Period through such brokers, with such underwriters and containing such coverage as may
      be acceptable to the Lender in its sole discretion, insuring a sum of at least one hundred and twenty per cent (120%) of the Loan in respect of mortgagee’s interest insurance;

    “Month” means a period beginning in one calendar month and ending in the next calendar month on the
      day numerically corresponding to the day of the calendar month on which it started, provided that (a) if the period started on the last Banking Day in a calendar month or if there is no such numerically

    
      10

      
        

    

    corresponding day, it shall end on the last Banking Day in such next calendar month and (b) if such numerically corresponding day is not a
      Banking Day, the period shall end on the next following Banking Day in the same calendar month but if there is no the Banking Day it shall end on the preceding Banking Day and “months” and “monthly” shall be
      construed accordingly;

    “Mortgage” means the first preferred Liberia ship mortgage of the Vessel required to be executed
      hereunder by the Borrower, to be in such form as the Lender may reasonably require;

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

    “Permitted Encumbrance” means any Encumbrance in favour of the Lender created pursuant to the
      Security Documents any Encumbrance created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses while the Borrower is actively prosecuting or defending such proceedings or arbitration in good
      faith; Encumbrances 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 Permitted
      Liens;

    “Permitted Liens” means any lien on the Vessel for master's, officer's or crew's wages outstanding
      in the ordinary course of trading, any lien for salvage and any ship repairer's or outfitter's possessory lien for a sum not (except with the prior written consent of the Lender) exceeding the Casualty Amount any lien arising in the ordinary course
      of trading by statute or by operation of law in respect of obligations which are not overdue (and while such obligations are not overdue) or which are being contested in good faith by bona fide and appropriate proceedings (and for the payment of
      which adequate, freely-available reserves have been provided) unless such proceedings or the continued existence of such lien makes likely the sale, forfeiture or loss of, or of any interest in, the Vessel, and liens securing liabilities for Taxes
      against which adequate, freely-available reserves have been provided;

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

    “Prepayment Fee” means the fee payable by the Borrower in accordance with clause 4.7.5;

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

    “Quotation Day” means, in relation to any period for which an interest rate is to be determined
      under any provision of a Security Document, the day

    
      11

      
        

    

    which is 2 Banking Days before the first day of that period unless market practice differs in the London Interbank Market, in which case
      the Quotation Day will be determined by the Lender 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 Day
      will be the last of those days);

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

    “Repayment Date” means the date on which any instalment of the Loan is repayable under the
      provisions of clause 4.1.1;

    “Repayment Instalment” means each of the repayment instalments falling due under and in accordance
      with clause 4.1.1, as the same may be reduced in accordance with this Agreement;

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

    “Requisition Compensation” means all moneys or other compensation from time to time payable during
      the Facility Period by reason of Compulsory Acquisition of the Vessel;

    “Restricted Person” means a person that is:

    	

          	(i)	
            listed on, or directly or indirectly owned or controlled (as such terms are defined by the relevant Sanctions Authority) by a person listed on, any Sanctions List;

          

    	

          	(ii)	
            located in, incorporated under the laws of, or owned or controlled by, or acting on behalf of, a person located in or organised under the laws of, a country or territory that is the target of
              country or territory-wide Sanctions (“Sanctions Restricted Jurisdiction”); or

          

    	

          	(iii)	
            otherwise a target of Sanctions;

          

    “Sanctions” means any economic, financial or trade sanctions laws, regulations, embargoes or
      restrictive measures administered, enacted or enforced by:

    	

          	(i)	
            the United States government;

          

    	

          	(ii)	
            the United Nations;

          

    	

          	(iii)	
            the European Union or any of its Member States;

          

    
      12

      
        

    

    	

          	(iv)	
            the United Kingdom;

          

    	

          	(v)	
            any country to which any Security Party or any other member of the Group or any affiliate of any of them is bound; or

          

    	

          	(vi)	
            the respective governmental institutions and agencies of any of the foregoing, including without limitation, the Office of Foreign Assets Control of the US Department of Treasury (“OFAC”), the United States Department of State, and Her Majesty’s Treasury (“HMT”) (together “Sanctions Authorities” and each,
              “Sanctions Authority”);

          

    “Sanctions List” means the “Specially Designated Nationals and Blocked Persons” list issued by
      OFAC, the “Consolidated List of Financial Sanctions Targets in the UK” issued by HMT, or any similar list issued or maintained or made public by any of the Sanctions Authorities;

    “Security Documents” means this Agreement, the Mortgage, the Corporate Guarantee, the General
      Assignment, any Charter Assignment, the Shares Security, the Manager’s Undertaking, any Subordination Deed, any Tripartite Deed, any Insurance Assignment and any other documents as may have been or shall from time to time after the date of this
      Agreement be executed to guarantee and/or to govern and/or secure all or any part of the Loan, interest thereon and other moneys from time to time owing by the Borrower pursuant to this Agreement (whether or not any such document also secures moneys
      from time to time owing pursuant to any other document or agreement);

    “Security Party” means the Borrower, the Corporate Guarantor, the Shareholder, the Manager or any
      other person who may at any time be a party to any of the Security Documents (other than the Lender);

    “Semi-Annual Financial Statements” means the financial statements for a financial half year of each
      of the Borrower and the Guarantor delivered pursuant to clause 8.1.6(b);

    “Security Value” means, at any time, the amount in Dollars which, at that time, is the aggregate of
      (a) the Market Value of the Vessel which has not then become a Total Loss and (b) the value of any additional security then held by the Lender provided under clause 8.2;

    “Shareholder” means Eurodry Ltd., a corporation incorporated in the Republic of the Marshall
      Islands with its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;

    “Shares Security” means the charge of the shares of and in the Borrower to be executed by the
      Shareholder in favour of the Lender, to be in such form as the Lender may reasonably require;

    “Ship Security Documents” means the Mortgage, the General Assignment, any Charter Assignment, any
      Tripartite Deed, any Insurance Assignment and the Manager’s Undertaking;

    “Specified Time” means 11:00am London time;

    “Subordination Deed” means any deed of subordination required by clause 8.3.7;

    
      13

      
        

    

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

    “Taxes” includes all present and future income, corporation, capital or value-added taxes and all
      stamp and other taxes and levies, imposts, deductions, duties, charges and withholdings whatsoever together with interest thereon and penalties in respect thereto, if any, and charges, fees or other amounts made on or in respect thereof (and
      “Taxation” shall be construed accordingly);

    “Total Commitment” means, at any relevant time, the aggregate of the Commitments of the Lender at
      such time;

    “Total Loss” means, in relation to the Vessel:

    	

          	(i)	
            the actual, constructive, compromised or arranged total loss of the Vessel; or

          

    	

          	(ii)	
            Compulsory Acquisition; or

          

    	

          	(iii)	
            any hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of the Vessel not falling within the definition of Compulsory Acquisition, unless the Vessel be released
              and restored to the Borrower within sixty (60) days after such incident;

          

    “Tripartite Deed” means, if the Vessel is subject to a bareboat charter, a deed containing (inter
      alia) an assignment of the relevant charterer’s interest in the insurances of the Vessel, required to be executed by the Borrower and the relevant charterer in favour of the Lender in such form as the Lender may reasonably require and the relevant
      charterer may agree;

    “Underlying Documents” means, together, any Extended Employment Contract and the Management
      Agreement;

    “Unlawfulness” means any event or circumstance which is the subject of a notification by the Lender
      to the Borrower under clause 12.1;

    “USA” means the United States of America;

    “US Tax Obligor” means:

    (a)     the Borrower if it is resident for tax purposes in the USA; or

    (b)      a Security Party some or all of whose payments under the Security Documents are from sources within the USA for US federal income
      tax purposes; and

    “Vessel” means the 2004-built bulk carrier of 76,466dwt named “EIRINI P.” registered in the name of
      the Borrower under the Liberia flag.

    	1.3	
            Construction

          

    In this Agreement, unless the context otherwise requires:

    
      14

      
        

    

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

          

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

          

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

          

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

          

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

          

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

          

    	1.3.7	
            references to a person shall be construed as references to an individual, firm, company, corporation or unincorporated body of persons or any Government Entity;

          

    	1.3.8	
            references to a “guarantee” include references to an indemnity or any other kind of assurance whatsoever (including, without limitation, any kind of negotiable instrument, bill or note)
              against financial loss or other liability including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and “guaranteed” shall be construed accordingly;

          

    	1.3.9	
            references to any statute or other legislative provision are to be construed as references to any such statute or other legislative provision as the same may be re enacted or modified or
              substituted by any subsequent statute or legislative provision (whether before or after the date hereof) and shall include any regulations, orders, instruments or other subordinate legislation issued or made under such statute or legislative
              provision;

          

    	1.3.10	
            a certificate by the Lender as to any amount due or calculation made or any matter whatsoever determined in connection with this Agreement shall be conclusive and binding on the Borrower
              except for manifest error;

          

    	1.3.11	
            if any document, term or other matter or thing is required to be approved, agreed or consented to by the Lender such approval, agreement or consent must be obtained in writing unless the
              contrary is stated;

          

    	1.3.12	
            time shall be of the essence in respect of all obligations whatsoever of the Borrower under this Agreement, howsoever and whensoever arising;

          

    	1.3.13	
            a Default or an Event of Default is “continuing” if it has not been remedied or waived;

          

    
      15

      
        

    

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

          

    	1.4	
            References to currencies

          

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

    	1.5	
            Contracts (Rights of Third Parties Act) 1999

          

    Except for clause 18, no part of this Agreement shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who
      is not a party to this Agreement.

    	2	
            THE COMMITMENT AND CANCELLATION

          

    	2.1	
            Agreement to lend

          

    The Lender, relying upon each of the representations and warranties in clause 7, agrees to make available to the Borrower upon and subject
      to the terms of this Agreement, the Loan Facility in a single advance for the purposes of enabling the Borrower to refinance the Vessel.

    	2.2	
            Drawdown

          

    	2.2.1	
            Subject to the terms and conditions of this Agreement, the Loan shall be made available to the Borrower following receipt by the Lender from the Borrower of a Drawdown Notice
              not later than 10:00 a.m. (Taipei Time) on the third Banking Day before the date, which shall be a Banking Day falling within the Drawdown Period, on which the Borrower proposes the Loan is made available.

          

    	2.2.2	
            The Drawdown Notice shall be effective on actual receipt by the Lender and, once given, shall, subject as provided in clause 3.4, be irrevocable.

          

    	2.3	
            Limitation and application of the Loan

          

    	2.3.1	
            The amount of the proposed Loan in respect of the Loan Facility must not exceed the Total Commitments.

          

    	2.3.2	
            Only one (1) Drawdown may be requested for the Loan.

          

    	2.3.3	
            The principal amount specified in the Drawdown Notice for borrowing on the Drawdown Date shall, subject to the terms of this Agreement, not exceed the lesser of (i) five
              million Dollars (USD5,000,000) and (ii) 65% of the Market Value of the Vessel (to be determined immediately prior to the Drawdown Date), to be applied in or towards refinancing the Vessel and providing working capital to the Borrower.

          

    	2.3.4	
            The Loan shall be paid forthwith upon drawdown to such account as the Borrower shall stipulate in the Drawdown Notice.

          

    	2.4	
            Availability

          

    	2.4.1	
            The Borrower acknowledges that payment of the Loan referred to in clause 2.3.4 to the account or accounts specified in the Drawdown Notice shall

          

    
      16

      
        

    

    satisfy the obligation of the Lender to lend the Loan to the Borrower under this Agreement.

    	2.5	
            Cancellation in changed circumstances

          

    	2.5.1	
            The Borrower may at any time during the Facility Period by notice to the Lender (effective only on actual receipt) cancel with effect from a date not less than ten (10) Banking Days after
              receipt by the Lender of such notice, all or part of the undrawn Total Commitment.

          

    	2.6	
            Use of proceeds

          

    	2.6.1	
            Without prejudice to the Borrower’s obligations under clause 8.1.4, the Lender shall not have any responsibility for the application of the proceeds of the Loan or any part thereof by the
              Borrower.

          

    	2.6.2	
            The Borrower shall not, and shall procure that each Security Party and each other Group Member and any Subsidiary of any of them shall not, permit or authorise any other person to, directly or
              indirectly, use, lend, make payments of, contribute or otherwise make available, all or any part of the proceeds of the Loan or other transactions contemplated by this Agreement to fund or facilitate trade, business or other activities: (i)
              involving or for the benefit of any Restricted Person; or (ii) in any other manner that could result in the Borrower or any other Security Party being in breach of any Sanctions or becoming a Restricted Person.

          

    	3	
            INTEREST AND INTEREST PERIODS

          

    	3.1	
            Normal interest rate

          

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

    	3.2	
            Interest Periods

          

    	3.2.1	
            The period during which the Loan is outstanding under this Agreement shall, subject to clause 3.2.2 and clause 3.2.4, be divided into consecutive Interest Periods of 3 Month’s duration unless
              provided otherwise in this Agreement or such other duration as may be agreed by the Lender and the Borrower.

          

    	3.2.2	
            The first Interest Period shall start on the Drawdown Date and end on the date falling 3 Months after the Drawdown Date.

          

    	3.2.3	
            Each subsequent Interest Period shall start on the last day of the preceding Interest Period and end on the date falling 3 Months therefrom.

          

    	3.2.4	
            No Interest Period of the Loan shall extend beyond the Final Repayment Date.

          

    	3.3	
            Default interest

          

    If the Borrower fails to pay any sum (including, without limitation, any sum payable pursuant to this clause 3.3) on its due date for
      payment under any of the Security Documents, the Borrower must pay interest on such sum on demand from the due date up to the date of actual payment (as well after as

    
      17

      
        

    

    before judgment) at a rate determined by the Lender pursuant to this clause 3.3. The period starting on such due date and ending on such
      date of payment shall be divided into successive periods selected by the Lender each of which (other than the first, which shall start on such due date) shall start on the last day of the preceding such period. The rate of interest applicable to each
      such period shall be the aggregate (as determined by the Lender) of (a) two per cent (2%) per annum, (b) the Margin and (c) LIBOR for such periods. Such interest shall be due and payable on demand, or, if no
      demand is made, then on the last day of each such period as determined by the Lender and on the day on which all amounts in respect of which interest is being paid under this clause are paid, and each such day shall, for the purposes of this
      Agreement, be treated as an Interest Payment Date, provided that if such unpaid sum is an amount of principal which became due and payable by reason of a declaration by the Lender under clause 10.2.2 or a prepayment pursuant to clauses 4.3, 4.4,
      8.2.1(a) or 12.1, on a date other than an Interest Payment Date relating thereto, the first such period selected by the Lender shall be of a duration equal to the period between the due date of such principal sum and such Interest Payment Date and
      interest shall be payable on such principal sum during such period at a rate of two per cent (2%) above the rate applicable thereto immediately before it shall have become so due and payable. If, for the
      reasons specified in clause 3.4.1, the Lender is unable to determine a rate in accordance with the foregoing provisions of this clause 3.3, interest on any sum not paid on its due date for payment shall be calculated at a rate determined by the
      Lender to be two per cent (2%) per annum above the aggregate of the Margin and the cost of funds to the Lender compounded at such intervals as the Lender selects.

    	3.4	
            Market disruption; non-availability

          

    	3.4.1	
            If at any time prior to the commencement of any Interest Period:

          

    	

          	(a)	
            the Lender for any reason is unable to obtain Dollars in the London Interbank Market in order to fund the Loan (or any part of it) during that Interest Period; or

          

    	

          	(b)	
            the Lender considers that LIBOR would not accurately reflect the cost to it of funding the Loan (or any part of them) during that Interest Period,

          

    then the Lender must promptly give notice (a “Determination Notice”) thereof to the Borrower. A
      Determination Notice shall contain particulars of the relevant circumstances giving rise to its issue. After the giving of any Determination Notice, regardless of any other provision of this Agreement, no Commitment shall be borrowed until notice to
      the contrary is given to the Borrower by the Lender.

    	3.4.2	
            Within ten (10) Banking Days of any Determination Notice being given by the Lender under clause 3.4.1, the Lender must certify an alternative basis in place of LIBOR (the “Alternative Basis”) for maintaining the Loan. The Alternative Basis may at the Lender’s sole discretion include (without limitation) alternative interest periods, alternative currencies or alternative rates
              of interest but shall include the relevant Margin above the cost of funds to the Lender.

          

    
      18

      
        

    

    Once the Alternative Basis has been received by the Borrower, the Borrower and the Lender shall negotiate in good faith for a period of
      thirty (30) Banking Days in order to arrive at a mutually acceptable substitute basis for the Lender to continue to make available the Loan and, if within such thirty (30) Banking Day period the Borrower and the Lender shall agree in writing upon
      such an alternative basis (the “Substitute Basis”) the Substitute Basis should be retroactive to and effective from the first day of the Interest Period.

    The Substitute Basis so certified shall be binding upon the Borrower, and shall take effect in accordance with its terms from the date
      specified in the Determination Notice until such time as the Lender notifies the Borrower that none of the circumstances specified in clause 3.4.1 continues to exist whereupon the normal interest rate fixing provisions of this Agreement shall again
      apply and, subject to the other provisions of this Agreement, the Commitment may again be borrowed.

    If the Borrower does not agree the Substitute Basis, then the Borrower shall have the right to repay the Loan without any premium or
      penalty on the next Interest Payment Date after receiving notice of the Substitute Basis, together with accrued interest thereon payable to the Lender at the rate certified by the Lender and notified to the Borrower as being a reasonable interest
      reflecting the cost to the Lender of funding the Loan during the period ending on the date of such prepayment, plus the Margin.

    So long as any Substitute Basis is in force, the Lender shall from time to time (but at least monthly) review whether or not the
      circumstances are such that such Substitute Basis is no longer necessary and, if the Lender so determines it shall notify the Borrower that the Substitute Basis shall cease to be effective from such date as the Lender shall reasonably specify.

    	4	
            REPAYMENT AND PREPAYMENT

          

    	4.1	
            Repayment

          

    	4.1.1	
            Subject to any obligation to pay earlier under this Agreement, the Borrower must repay the Loan by:

          

    	

          	(a)	
            twenty (20) equal quarterly instalments of USD210,000 each; and

          

    	

          	(b)	
            an instalment (the “Balloon Instalment”) of USD800,000,

          

    the first repayment instalment falling due 3 months after the Drawdown Date and subsequent instalments falling due at quarterly intervals
      thereafter, with the final instalment falling due on the Maturity Date and the Balloon Instalment being repayable together with the final such instalment.

    	4.1.2	
            If less than the full amount of the Loan Facility is drawn down, then each of the said repayment instalments and the Balloon Instalment shall be reduced pro rata by the amount of, in
              aggregate, such undrawn amount.

          

    	4.1.3	
            The Borrower shall on the Maturity Date also pay to the Lender all other amounts in respect of interest or otherwise then due and payable under this Agreement and the Security Documents.

          

    	4.2	
            Voluntary prepayment

          

    
      19

      
        

    

    Subject to clauses 4.3, 4.4, 4.5 and 4.6, the Borrower may, subject to having given 10 Banking Days’ prior written notice (or such shorter
      period as the Lender may agree) thereof to the Lender, prepay any specified amount (such part being in an amount of five hundred thousand Dollars (USD500,000) or any larger sum which is an integral multiple of such amount) of the Loan on any Interest
      Payment Date without premium or penalty.

    	4.3	
            Mandatory Prepayment on Total Loss

          

    On the date falling ninety (90) days after that on which the Vessel became a Total Loss or, if earlier, on the date upon which the relevant
      insurance proceeds are, or Requisition Compensation is, received by the Borrower (or the Lender pursuant to the Security Documents) the Borrower must prepay the Loan in full.

    	4.3.1	
            Interpretation

          

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

    	

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

          

    	

          	(b)	
            in the case of a constructive total loss of the Vessel, upon the date and at the time notice of abandonment of the Vessel is given to the then insurers of the Vessel (provided a claim for
              total loss is admitted by such insurers) or, if such insurers do not immediately admit such a claim, at the date and at the time at which either a total loss is subsequently admitted by such insurers or a total loss is subsequently adjudged
              by a competent court of law or arbitration tribunal to have occurred;

          

    	

          	(c)	
            in the case of a compromised or arranged total loss of the Vessel, on the date upon which a binding agreement as to such compromised or arranged total loss has been entered into by the then
              insurers of the Vessel;

          

    	

          	(d)	
            in the case of Compulsory Acquisition, on the date upon which the relevant requisition of title or other compulsory acquisition occurs; and

          

    	

          	(e)	
            in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of the Vessel (other than within the definition of Compulsory Acquisition) by any Government
              Entity, or by persons allegedly acting or purporting to act on behalf of any Government Entity, which deprives the Borrower of the use of the Vessel for more than sixty (60) days, upon the expiry of the period of sixty (60) days after the
              date upon which the relevant incident occurred.

          

    	4.4	
            Mandatory prepayment on sale of the Vessel

          

    On the date of completion of the sale of the Vessel, the Borrower must prepay the Loan in full, including the applicable Prepayment Fee, if
      any, in accordance with clause 4.7.5.

    
      20

      
        

    

    	4.5	
            Illegality

          

    	4.5.1	
            If, in any applicable jurisdiction, it becomes unlawful for the Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its funding of the Loan or it
              becomes unlawful for any affiliate of the Lender for the Lender to do so:

          

    	

          	(a)	
            the Lender shall promptly notify the Borrower upon becoming aware of that event;

          

    	

          	(b)	
            upon the Lender notifying the Borrower, the Available Facility will be immediately cancelled; and

          

    the Borrower shall repay the Loan on the last day of the Interest Period occurring after the Lender has notified the Borrower or, if
      earlier, the date specified by the Lender (being no earlier than the last day of any applicable grace period permitted by law) and the Commitment shall be cancelled in the amount of the Loan repaid.

    	4.6	
            Amounts payable on prepayment

          

    	4.6.1	
            Any prepayment of all or part of the Loan under this Agreement shall be made together with:

          

    	

          	(a)	
            accrued interest on the amount to be prepaid to the date of such prepayment;

          

    	

          	(b)	
            any additional amount payable under clauses 3.4, 6.6 or 12.2; and

          

    	

          	(c)	
            all other sums payable by the Borrower to the Lender under this Agreement or any of the other Security Documents including, without limitation any Break Costs.

          

    	4.7	
            Notice of prepayment; reduction of Repayment Instalments

          

    	4.7.1	
            Every notice of prepayment shall be effective only on actual receipt by the Lender, shall be irrevocable, shall specify the amount to be prepaid and shall

          

    oblige the Borrower to make such prepayment on the date specified.

    	4.7.2	
            Any amount prepaid pursuant to clause 4.2 shall satisfy the obligations specified in clause 4.1.1 in inverse order of maturity.

          

    	4.7.3	
            The Borrower may not prepay the Loan or any part thereof except as expressly provided in this Agreement.

          

    	4.7.4	
            No amount repaid or prepaid may be re-borrowed.

          

    	4.7.5	
            Save and except for the occurrence of mandatory prepayment, the Borrower shall pay a fee in an amount equal to 1% of the amount prepaid or cancelled under this clause 4 within the first two
              (2) years from the Drawdown Date, which fee shall be paid on the date of the relevant prepayment or cancellation date.

          

    	5	
            FEES AND EXPENSES

          

    	5.1	
            Arrangement fee

          

    
      21

      
        

    

    The Borrower agrees to pay to the Lender a non-refundable arrangement fee of one per cent (1%) of the amount of the Loan Facility within
      seven (7) Banking Days from the Execution Date, but latest by two (2) Banking Days before the Drawdown Date.

    	5.2	
            Expenses

          

    The Borrower agrees to reimburse the Lender on a full indemnity basis within ten (10) days of demand all reasonable expenses and/or
      disbursements whatsoever (including without limitation legal, printing and out of pocket expenses) certified by the Lender as having been incurred by them from time to time:

    	5.2.1	
            in connection with the negotiation, preparation, execution and, where relevant, registration of the Security Documents and of any contemplated or actual amendment, or indulgence or the
              granting of any waiver or consent howsoever in connection with, any of the Security Documents (including legal fees) (but excluding any such expense incurred in connection with the transfer, assignment or sub-participation of any of the
              rights and/or obligations of the Lender under the Security Documents);

          

    	5.2.2	
            in contemplation or furtherance of, or otherwise howsoever in connection with, the exercise or enforcement of, or preservation of any rights, powers, remedies or discretions under any of the
              Security Documents, or in consideration of the Lender’s rights thereunder or any action proposed or taken following the occurrence of an Event of Default which is continuing or otherwise in respect of the moneys owing under any of the
              Security Documents; and

          

    	5.2.3	
            in connection with obtaining a written report from a maritime insurance consultant or broker acceptable to the Lender in relation to the Insurances of the Vessel (which the Lender may obtain
              not more than once a year,),

          

    	5.3	
            Value added tax

          

    All fees and expenses payable pursuant to this Agreement must be paid together with value added tax or any similar tax (if any) properly
      chargeable thereon in any jurisdiction. Any value added tax chargeable in respect of any services supplied by the Lender under this Agreement shall, on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid
      hereunder.

    	5.4	
            Stamp and other duties

          

    The Borrower must pay all stamp, documentary, registration or other like duties or taxes, but excluding any FATCA Deduction (except for any
      such Taxes incurred in connection with any transfer, assignment or sub-participation of any of the rights and/or obligations of the Lender under any of the Security Documents) (including any duties or taxes payable by the Lender) imposed on or in
      connection with any of the Underlying Documents, the Security Documents or the Loan and agree to indemnify the Lender against any liability arising by reason of any delay or omission by the Borrower to pay such duties or taxes.

    	6	
            PAYMENTS AND TAXES; ACCOUNTS AND CALCULATIONS

          

    	6.1	
            No set-off or counterclaim

          

    
      22

      
        

    

    All payments to be made by the Borrower under any of the Security Documents must be made in full, without any set off or counterclaim
      whatsoever and, subject as provided in clause 6.6, free and clear of any deductions or withholdings, in USD on or before 11:00 am (London time) on the due date in freely available funds to such account at the Lender and in such place as the Lender
      may from time to time specify for this purpose.

    	6.2	
            Payment by the Lender

          

    All sums to be advanced by the Lender to the Borrower under this Agreement shall be remitted in USD on the Drawdown Date to the account
      specified in the Drawdown Notice.

    	6.3	
            Non-Banking Days

          

    When any payment under any of the Security Documents would otherwise be due on a day which is not a Banking Day, the due date for payment
      shall be extended to the next following Banking Day unless the Banking Day falls in the next calendar month in which case payment shall be made on the immediately preceding Banking Day.

    	6.4	
            Calculations

          

    All interest and other payments of an annual nature under any of the Security Documents shall accrue from day to day and be calculated on
      the basis of actual days elapsed and a three hundred and sixty (360) day year.

    	6.5	
            Currency of account

          

    If any sum due from the Borrower under any of the Security Documents, or under any order or judgment given or made in relation thereto,
      must be converted from the currency (“the first currency”) in which the same is payable thereunder into another currency (“the second currency”) for the purpose of (i) making or filing a claim or proof against the Borrower, (ii) obtaining an order or
      judgment in any court or other tribunal or (iii) enforcing any order or judgment given or made in relation thereto, the Borrower undertakes to indemnify and hold harmless the Lender from and against any loss suffered as a result of any discrepancy
      between (a) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Lender may in the ordinary course of business purchase the first
      currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof. Any amount due from the Borrower under this clause 6.5 shall be due as a separate debt and shall not
      be affected by judgment being obtained for any other sums due under or in respect of any of the Security Documents and the term “rate of exchange” includes any premium and costs of exchange payable in connection with the purchase of the first
      currency with the second currency.

    	6.6	
            Grossing-up for Taxes - by the Borrower

          

    If at any time the Borrower must make any deduction or withholding in respect of Taxes (other than a FATCA Deduction) or otherwise from any
      payment due under any of the Security Documents for the account of the Lender or withholding in respect of Taxes from any payment due under any of the Security Documents, the sum due from the Borrower in respect of

    
      23

      
        

    

    such payment must be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the Lender
      receives on the due date for such payment (and retains, free from any liability in respect of such deduction or withholding), a net sum equal to the sum which it would have received had no such deduction or withholding been required to be made and
      the Borrower must indemnify the Lender against any losses or costs incurred by it by reason of any failure of the Borrower to make any such deduction or withholding or by reason of any increased payment not being made on the due date for such
      payment. The Borrower must promptly deliver to the Lender any receipts, certificates or other proof evidencing the amounts (if any) paid or payable in respect of any deduction or withholding as aforesaid.

    	6.7	
            Claw back of Tax benefit

          

    If, following any such deduction or withholding as is referred to in clause 6.6 from any payment by the Borrower, the Lender shall receive
      or be granted a credit against or remission for any Taxes payable by it, the Lender shall, and to the extent that it can do so without prejudicing the retention of the amount of such credit or remission and without prejudice to the right of the
      Lender to obtain any other relief or allowance which may be available to it, reimburse the Borrower with such amount as Lender shall in its absolute discretion certify to be the proportion of such credit or remission as will leave the Lender (after
      such reimbursement) in no worse position than it would have been in had there been no such deduction or withholding from the payment by the Borrower as aforesaid. Such reimbursement shall be made forthwith upon the Lender certifying that the amount
      of such credit or remission has been received by it. Nothing contained in this Agreement shall oblige the Lender to rearrange its tax affairs or to disclose any information regarding its tax affairs and computations. Without prejudice to the
      generality of the foregoing, the Borrower shall not, by virtue of this clause 6.7, be entitled to enquire about the Lender’s tax affairs.

    	6.8	
            Loan account

          

    The Lender shall maintain, in accordance with its usual practice, an account evidencing the amounts from time to time lent by, owing to and
      paid to it under the Security Documents. The Lender shall maintain a control account or accounts (as the Lender may deem necessary) showing the Loan and other sums owing by the Borrower under the Security Documents and all payments in respect thereof
      being made from time to time. The control account shall, in the absence of manifest error, be prima facie evidence of the amount from time to time owing by the Borrower under the Security Documents.

    	6.9	
            Partial payments

          

    If, on any date on which a payment is due to be made by the Borrower under any of the Security Documents, the amount received by the Lender
      from the Borrower falls short of the total amount of the payment due to be made by the Borrower on such date then, without prejudice to any rights or remedies available to the Lender under any of the Security Documents, the Lender must apply the
      amount actually received from the Borrower in or towards discharge of the obligations of the Borrower under the Security Documents in the following order, notwithstanding any appropriation made, or purported to be made, by the Borrower:

    
      24

      
        

    

    	6.9.1	
            first, in or towards payment, in such order as the Lender may decide, of any unpaid costs and expenses of the Lender under any of the Security Documents;

          

    	6.9.2	
            secondly, in or towards payment of any fees payable to the Lender under, or in relation to, the Security Documents which remain unpaid;

          

    	6.9.3	
            thirdly, in or towards payment to the Lender of any accrued default interest owing pursuant to clause 3.3 but remains unpaid;

          

    	6.9.4	
            fourthly, in or towards payment to the Lender of any accrued interest owing in respect of the Loan which shall have become due under any of the Security Documents but remains unpaid;

          

    	6.9.5	
            fifthly, in or towards payment to the Lender of any due but unpaid Repayment Instalments; and

          

    	6.9.6	
            sixthly, in or towards payment to the Lender, on a pro rata basis, for any loss suffered by reason of any such payment in respect of principal not being effected on an Interest Payment Date
              relating to the part of the Loan repaid and which amounts are so payable under this Agreement and any other sum relating to the Loan which shall have become due under any of the Security Documents but remains unpaid.

          

    The order of application set out in clauses 6.9.1 to 6.9.6 may be varied by the Lender without any reference to, or consent or approval
      from, the Borrower.

    	7	
            REPRESENTATIONS AND WARRANTIES

          

    	7.1	
            Continuing representations and warranties

          

    The Borrower represents and warrants to the Lender that:

    	7.1.1	
            Due incorporation

          

    each of the corporate Security Parties is duly incorporated, validly existing and in good standing under the laws of its respective country
      of incorporation, in each case, as a corporation and has power to carry on its respective businesses as it is now being conducted and to own its respective property and other assets, to which it has unencumbered legal and beneficial title except as
      disclosed to the Lender, and the shares of the Borrower are in registered form;

    	7.1.2	
            Corporate power

          

    each of the Security Parties has power to execute, deliver and perform its obligations and, as the case may be, to exercise its rights
      under the Underlying Documents and the Security Documents to which it is a party; all necessary corporate, shareholder (if applicable) and other action has been taken to authorise the execution, delivery and on the execution of the Security Documents
      performance of the same and no limitation on the powers of the Borrower to borrow or any other Security Party to howsoever incur liability and/or to provide or grant security will be exceeded as a result of borrowing any part of the Loan;

    	7.1.3	
            Binding obligations

          

    

    

    
      25

      
        

    

    the Underlying Documents and the Security Documents, when executed, will constitute valid and legally binding obligations of the relevant
      Security Parties enforceable in accordance with their respective terms;

    	7.1.4	
            No conflict with other obligations

          

    the execution and delivery of, the performance of their obligations under, and compliance with the provisions of, the Underlying Documents
      and the Security Documents by the relevant Security Parties will not (i) contravene any existing applicable law, statute, rule or regulation or any judgment, decree or permit to which any Security Party or other member of the Group is subject, (ii)
      conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which any Security Party or other member of the Group is a party or is subject or by which it or any of its property is
      bound, (iii) contravene or conflict with any provision of the Constitutional Documents of any Security Party or (iv) result in the creation or imposition of, or oblige any of the Security Parties to create, any Encumbrance (other than a Permitted
      Encumbrance) on any of the undertakings, assets, rights or revenues of any of the Security Parties;

    	7.1.5	
            No default

          

    no Event of Default has occurred;

    	7.1.6	
            No litigation or judgments

          

    no Proceedings are current, pending or threatened against any of the Security Parties or their assets which could have a Material Adverse
      Effect and there exist no judgments, orders, injunctions which would materially affect the obligations of the Security Parties under the Security Documents to which they are a party;

    	7.1.7	
            No filings required

          

    except for the registration of the Mortgage in the relevant register under the laws of the Flag State through the Registry, it is not
      necessary to ensure the legality, validity, enforceability or admissibility in evidence of any of the Underlying Documents or any of the Security Documents that they or any other instrument be notarised, filed, recorded, registered or enrolled in any
      court, public office or elsewhere in any Pertinent Jurisdiction or that any stamp, registration or similar tax or charge be paid in any Pertinent Jurisdiction on or in relation to any of the Underlying Documents or the Security Documents and each of
      the Underlying Documents and the Security Documents is in proper form for its enforcement in the courts of each Pertinent Jurisdiction;

    	7.1.8	
            Required Authorisations and legal compliance

          

    all Required Authorisations have been obtained or effected or waived by the person requiring the same and, to the extent no such waiver
      exists, are in full force and effect and no Security Party has in any way contravened any applicable law, statute, rule or regulation (including all such as relate to money laundering) to which such Security Party is subject;

    	7.1.9	
            Choice of law

          

    
      26

      
        

    

    the choice of English law to govern the Underlying Documents and the Security Documents (other than the Mortgage), the choice of the law of
      the Flag State to govern the Mortgage and the submissions by the Security Parties to the jurisdiction of the English courts and the obligations of such Security Parties associated therewith, are valid and binding;

    	7.1.10	
            No immunity

          

    no Security Party nor any of their assets is entitled to immunity on the grounds of sovereignty or otherwise from any Proceedings
      whatsoever;

    	7.1.11	
            Financial statements correct and complete

          

    the latest audited consolidated accounts of the Corporate Guarantor and its Subsidiaries (including the Borrower) in respect of the
      relevant financial year as delivered to the Lender present or will present fairly and accurately the consolidated financial position of the Borrower and the Corporate Guarantor as at the date thereof and the results of the operations of the Corporate
      Guarantor and its Subsidiaries (including the Borrower) and, as at such date, neither the Borrower nor the Corporate Guarantor have any significant liabilities (contingent or otherwise) or any unrealised or anticipated losses which are not disclosed
      by, or reserved against or provided for in, such financial statements;

    	7.1.12	
            Pari passu

          

    the obligations of the Borrower under this Agreement are direct, general and unconditional obligations of the Borrower and rank at least
      pari passu with all other present and future unsecured and unsubordinated Indebtedness of the Borrower except for obligations which are mandatorily preferred by operation of law and not by contract;

    	7.1.13	
            Information

          

    all information, whatsoever provided by any Security Party to the Lender in connection with the negotiation and preparation of the Security
      Documents or otherwise provided hereafter in relation to, or pursuant to this Agreement is, or will be, true and accurate in all material respects and not misleading, does or will not omit material facts and all reasonable enquiries have been, or
      shall have been, made to verify the facts and statements contained therein; there are, or will be, no other facts the omission of which would make any fact or statement therein misleading in any (in the reasonable opinion of the Lender) material
      respect;

    	7.1.14	
            No withholding Taxes

          

    no Taxes anywhere are imposed whatsoever by withholding or otherwise on any payment to be made by any Security Party under the Underlying
      Documents or the Security Documents to which such Security Party is or is to be a party or are imposed on or by virtue of the execution or delivery by the Security Parties of the Underlying Documents or the Security Documents or any other document or
      instrument to be executed or delivered under any of the Security Documents;

    	7.1.15	
            No Default under Underlying Documents

          

    
      27

      
        

    

    except as disclosed in writing by the Borrower to the Lender, no Security Party is in material default of any of its obligations under any
      relevant Underlying Document;

    	7.1.16	
            Use of proceeds

          

    the Borrower shall apply the Loan only for the purposes specified in clause 2.1;

    	7.1.17	
            Copies true and complete

          

    the Certified Copies of the Underlying Documents delivered or to be delivered to the Lender pursuant to clause 9.1 are, or will when
      delivered be, true and complete copies or, as the case may be, originals of such documents; and such documents constitute valid and binding obligations of the parties thereto enforceable in accordance with their respective terms and there have been
      no amendments or variations thereof or defaults thereunder;

    	7.1.18	
            Ownership of Borrower

          

    all the shares in the Borrower are legally owned by the Shareholder and ultimately owned and controlled by the Corporate Guarantor and are
      not held on trust for any third party;

    	7.1.19	
            No Indebtedness

          

    the Borrower has not incurred any Borrowed Moneys save as envisaged by this Agreement or as otherwise disclosed to the Lender or incurred
      in the ordinary course of its business of owning, operating and chartering the Vessel;

    	7.1.20	
            Tax returns

          

    the Borrower and the Corporate Guarantor have filed all tax and other fiscal returns (if any) which may be required to be filed by any tax
      authority to which they are subject;

    	7.1.21	
            Freedom from Encumbrances

          

    neither the Vessel nor its Earnings, Insurances or Requisition Compensation (each as defined in the relevant Ship Security Documents) nor
      any Extended Employment Contract in respect of the Vessel nor any other properties or rights which are, or are to be, the subject of any of the Security Documents nor any part thereof will be subject to any Encumbrance except Permitted Encumbrances;

    	7.1.22	
            Environmental Matters

          

    except as may already have been disclosed by the Borrower in writing to, and acknowledged in writing by, the Lender:

    	

          	(a)	
            the Borrower, the Manager and the other Group Members have complied with the provisions of all Environmental Laws;

          

    
      28

      
        

    

    	

          	(b)	
            the Borrower, the Manager and the other Group Members have obtained all Environmental Approvals and are in compliance with all such Environmental Approvals;

          

    	

          	(c)	
            no Environmental Claim has been made or threatened or pending against any of the Borrower, the Manager, or any other Group Member; and

          

    	

          	(d)	
            there has been no Environmental Incident;

          

    	7.1.23	
            ISM and ISPS Code

          

    the Borrower has complied with and continue to comply with and have procured that the Manager of the Vessel has complied with and continues
      to comply with the ISM Code, the ISPS Code and all other statutory and other requirements relative to their business and in particular they or the Manager have obtained and maintains a valid DOC, IAPP Certificate, EIAPP Certificate (if applicable)
      and SMC for the Vessel and that they and the Manager have implemented and continue to implement an ISM SMS;

    	7.1.24	
            Accounting reference date

          

    the Borrower’s and the Corporate Guarantor’s accounting reference date is 31 December.

    	7.1.25	
            Office

          

    the Borrower does not have an office in England;

    	7.1.26	
            Restricted Persons, unlawful activity

          

    	

          	(a)	
            none of the shares in the Borrower, in (to the best of its knowledge) the Corporate Guarantor, or in any other Security Party or the Vessel are or will be at any time during the Facility
              Period legally or beneficially owned or controlled by a Restricted Person;

          

    	

          	(b)	
            no Restricted Person has or will have at any time during the Facility Period any legal or beneficial interest of any nature whatsoever in any of the shares of the Borrower, (to the best of its
              knowledge) the Corporate Guarantor, or any other Security Party or the Vessel;

          

    	7.1.27	
            Sanctions

          

    (to the best of its knowledge only in respect of an agent) no Security Party nor any director, officer, agent, employee of any Security
      Party or any person acting on behalf of any Security Party, is a Restricted Person nor acts directly or indirectly on behalf of a Restricted Person;

    	7.1.28	
            FATCA

          

    none of the Security Parties is a FATCA FFI or a US Tax Obligor; and

    	7.1.29	
            Republic of the Marshall Islands Economic Substance Regulation 2018

          

    
      29

      
        

    

    The Corporate Guarantor is in compliance with the Republic of the Marshall Islands Economic Substance Regulation 2018 in accordance with
      its terms and the time frame once the same becomes applicable.

    	7.2	
            Repetition of representations and warranties

          

    On each day throughout the Facility Period, the Borrower shall be deemed to repeat the representations and warranties in clause 7 updated
      mutatis mutandis as if made with reference to the facts and circumstances existing on such day and in clause 7.1.11 as if made with reference to the Latest Accounts at any relevant time.

    	8	
            UNDERTAKINGS

          

    	8.1	
            General

          

    The Borrower undertakes with the Lender that, from the Execution Date until the end of the Facility Period, it will:

    	8.1.1	
            Notice of Event of Default and Proceedings

          

    promptly inform the Lender of (a) any Event of Default and of any other circumstances or occurrence which might adversely affect the
      ability of any Security Party to perform its obligations under any of the Security Documents to which it is a party and (b) as soon as the same is commenced or threatened, details of any Proceedings involving any Security Party which could have a
      Material Adverse Effect on that Security Party and/or the operation of the Vessel (including, but not limited to any Total Loss of the Vessel or the occurrence of any Environmental Incident) and will from time to time, if so requested by the Lender,
      confirm to the Lender in writing that, save as otherwise stated in such confirmation, no Event of Default has occurred and is continuing and no such Proceedings have been commenced or threatened;

    	8.1.2	
            Authorisation

          

    to the extent a waiver has not been obtained, obtain or cause to be obtained, maintain in full force and effect and comply fully with all
      Required Authorisations, provide the Lender with Certified Copies of the same and do, or cause to be done, all other acts and things which may from time to time be necessary or desirable under any applicable law (whether or not in the Pertinent
      Jurisdiction) for the continued due performance of all the obligations of the Security Parties under each of the Security Documents;

    	8.1.3	
            Corporate Existence

          

    ensure that each Security Party maintains its corporate existence as a body corporate duly organised and validly existing and in good
      standing under the laws of the Pertinent Jurisdiction;

    	8.1.4	
            Use of proceeds

          

    use the Loan exclusively for the purposes specified in clauses 1.1 and 2.1;

    	8.1.5	
            Pari passu

          

    
      30

      
        

    

    ensure that its obligations under this Agreement shall, without prejudice to the provisions of clause 8.3, at all times rank at least pari
      passu with all its other present and future unsecured and unsubordinated Indebtedness with the exception of any obligations which are mandatorily preferred by law and not by contract;

    	8.1.6	
            Financial statements

          

    	

          	(a)	
            supply to the Lender as soon as become available, but in any event within 180 days after the end of each of its financial years:

          

    	

          	(i)	
            the unaudited Annual Financial Statements of the Borrower for that financial year; and

          

    	

          	(ii)	
            the audited consolidated Annual Financial Statements of the Corporate Guarantor for that financial year.

          

    	

          	(b)	
            supply to the Lender as soon as become available, but in any event within 90 days after the end of each financial half year (i) in the case of the Borrower, the Semi-Annual Financial
              Statements; and (ii) in the case of the Corporate Guarantor, the unaudited consolidated Semi-Annual Financial Statements, for that financial half year.

          

    	

          	(c)	
            procure that each set of Annual Financial Statements and Semi-Annual Financial Statements includes a balance sheet, a profit and loss account and a cashflow statement and that, in addition
              each set of Annual Financial Statements of the Corporate Guarantor shall be audited.

          

    	

          	(d)	
            procure that each set of financial statements delivered pursuant to this clause 8.1.6 shall:

          

    	

          	(i)	
            give a true and fair view of (in the case of Annual Financial Statements for any financial year), or fairly present (in other cases), the financial condition and operations of the relevant
              Security Party as at the date as at which those financial statements were drawn up; and

          

    	

          	(ii)	
            in the case of Annual Financial Statements of the Corporate Guarantor, not be the subject of any adverse auditor’s qualification having a Material Adverse Effect in its ability to perform its
              obligations under the relevant Security Documents.

          

    	

          	(e)	
            supply to the Lender the bank account statement of the Borrower each month evidencing that the charterhire of each charter of the Vessel is remitted to the account designated by the Lender.

          

    	8.1.7	
            Reimbursement of MII Policy premiums

          

    reimburse the Lender on the Lender’s written demand the amount of the premium payable by the Lender for the inception or, as the case may
      be, extension and/or continuance of the MII Policy (including any insurance tax thereon);

    
      31

      
        

    

    	8.1.8	
            Provision of further information

          

    provide the Lender, and procure that the Corporate Guarantor (including its Subsidiaries), shall provide the Lender, with such financial or
      other information (including, but not limited to, financial standing, Indebtedness, balance sheet, off-balance sheet commitments, repayment schedules, operating expenses, charter arrangements concerning the Borrower, the Corporate Guarantor
      (including its Subsidiaries), the Group and their respective affairs, activities, financial standing, Indebtedness and operations and the performance of the Vessel as the Lender may from time to time reasonably require save for any information which
      is confidential in relation to arms-length third parties or is not disclosable by law, convention or regulatory requirements;

    	8.1.9	
            Obligations under Security Documents, etc.

          

    duly and punctually perform each of the obligations expressed to be imposed or assumed by them under the Security Documents and any
      Extended Employment Contact and will procure that each of the other Security Parties will, duly and punctually perform each of the obligations expressed to be assumed by it under the Security Documents and any Extended Employment Contract to which it
      is a party;

    	8.1.10	
            Compliance with ISM Code

          

    and will procure that any Operator will, comply with and ensure that the Vessel and any Operator complies with the requirements of the ISM
      Code, including (but not limited to) the maintenance and renewal of valid certificates pursuant thereto throughout the Facility Period;

    	8.1.11	
            Withdrawal of DOC and SMC

          

    immediately inform the Lender if there is any actual withdrawal of its or any Operator’s DOC, IAPP Certificate, EIAPP Certificate or the
      SMC of the Vessel;

    	8.1.12	
            Issuance of DOC and SMC

          

    and will procure that any Operator will promptly inform the Lender of the receipt by the Borrower or any Operator of notification that its
      application for a DOC or any application for an SMC or IAPP Certificate or EIAPP Certificate for the Vessel has been refused;

    	8.1.13	
             ISPS Code Compliance

          

    and will procure that the Manager or any Operator will:

    	

          	(a)	
            maintain at all times a valid and current ISSC in respect of the Vessel;

          

    	

          	(b)	
            immediately notify the Lender in writing of any actual or threatened withdrawal, suspension, cancellation or material modification of the ISSC in respect of the Vessel; and

          

    	

          	(c)	
            procure that the Vessel will comply at all times with the ISPS Code;

          

    	8.1.14	
            Compliance with Laws and payment of taxes

          

    
      32

      
        

    

    	

          	(a)	
            comply with all relevant Environmental Laws, laws, statutes and regulations applicable to it and pay all taxes for which it is liable as they fall due; and

          

    	

          	(b)	
            comply in all respects with, and will procure that each Security Party and each other Group Member will comply in all respects with, all Sanctions;

          

    	8.1.15	
            Inspection

          

    ensure that the Lender, by independent marine surveyors or other persons appointed by it for such purpose (who shall be appointed by the
      Lender at the Lender’s expense), may board the Vessel, once per calendar year or whenever the Lender deems necessary after the occurrence of an Event of Default which is continuing, provided in each case that the Lender shall use reasonable
      endeavours to ensure that such inspections or surveys shall not interfere with the operation of the Vessel, for the purpose of inspecting or surveying her and will afford all proper facilities for such inspections or survey and for this purpose will
      give the Lender reasonable advance notice of any intended drydocking of the Vessel (whether for the purpose of classification, survey or otherwise) and will provide the Lender with or ensure that the Lender receives on request all reports of such
      inspections;

    	8.1.16	
            The Vessel

          

    ensure that throughout the Facility Period the Vessel will at all times after her delivery (except as the Lender may otherwise permit) be:

    	

          	(i)	
            in the absolute sole, legal and beneficial ownership of the Borrower and not held on trust for any third party;

          

    	

          	(ii)	
            registered through the offices of the Registry as a ship under the laws and flag of the Flag State;

          

    	

          	(iii)	
            in compliance with the ISM Code and the ISPS Code and operationally seaworthy and in every way fit for service;

          

    	

          	(iv)	
            classed with the Classification free of all overdue requirements and recommendations of the Classification Society affecting the Classification;

          

    	

          	(v)	
            insured in accordance with the Ship Security Documents; and

          

    	

          	(vi)	
            managed by the Manager in accordance with the terms of the Management Agreement, which shall be acceptable to the Lender.

          

    	8.1.17	
            Charters

          

    deliver to the Lender, a Certified Copy of each Extended Employment Contract upon its execution or from time to time upon the Lender’s
      request, forthwith on the Lender’s request execute (a) a Charter Assignment in respect thereof and (b) any notice of assignment required in connection therewith and use reasonable efforts to procure the acknowledgement of any such notice of
      assignment by the relevant charterer (provided that any failure to procure the acknowledgement shall not constitute an Event of Default) and (c) (if the Vessel is subject to a bareboat charter) procure execution by the Borrower and the charterer of a
      Tripartite Deed, together

    
      33

      
        

    

    with all notices required to be determined thereunder and will provide evidence acceptable to the Lender that such notice has been given to
      the relevant charterer and the Borrower shall pay all legal and other costs incurred by the Lender in connection with any such Charter Assignment and Tripartite Deed, forthwith following the Lender’s demand;

    	8.1.18	
            Chartering

          

    not without the prior written consent of the Lender and, if such consent is given, only subject to such conditions as the Lender may
      reasonably impose (and in the case of (b) only, such consent not to be unreasonably withheld or delayed), to let the Vessel:

    	

          	(a)	
            on demise charter for any period; or

          

    	

          	(b)	
            by any time or consecutive voyage charter for a term which exceeds or which by virtue of any optional extensions therein contained might exceed twelve (12) months' duration; or

          

    	

          	(c)	
            on terms whereby more than two (2) months' hire (or the equivalent) is payable in advance;

          

    	8.1.19	
            Sanctions

          

    	

          	(a)	
            (to the best of its knowledge only in respect of an agent) not be, and shall procure that any Security Party and other Group Member, or any director, officer, agent, employee or person acting
              on behalf of the foregoing is not, a Restricted Person and does not act directly or indirectly on behalf of a Restricted Person;

          

    	

          	(b)	
            and shall procure that each Security Party and each other Group Member shall, not use any revenue or benefit derived from any activity or dealing with a Restricted Person in discharging any
              obligation due or owing to the Lender;

          

    	

          	(c)	
            procure that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with the Lender in its name or in the name of any other member of the
              Group;

          

    	

          	(d)	
            take, and shall procure that each Security Party and each other Group Member has taken, reasonable measures to ensure compliance with Sanctions;

          

    	

          	(e)	
            and shall procure that each Security Party and each other Group Member shall, to the extent permitted by law promptly upon becoming aware of them, supply to the Lender details of any claim,
              action, suit, proceedings or investigation against it with respect to Sanctions by any Sanctions Authority; and

          

    	

          	(f)	
            not accept, obtain or receive any goods or services from any Restricted Person, except (without limiting clause 8.1.19(b)), to the extent relating to any warranties and/or guarantees given
              and/or liabilities incurred in respect of an activity or dealing with a Restricted Person by the Borrower, any other Security Party or any other Group Member in accordance with this Agreement;

          

    
      34

      
        

    

    	8.1.20	
            Ownership

          

    ensure that all the shares in the Borrower are legally owned by the Shareholder and ultimately owned and controlled by the Corporate
      Guarantor and are not held on trust for any third party;

    	8.1.21	
            Shipping activities

          

    procure that the Corporate Guarantor shall at all times remain the ultimate holding company of shipowning companies engaged in shipping
      activities reasonably acceptable to the Lender;

    	8.1.22	
            FATCA Information

          

    	

          	(a)	
            subject to paragraph (c) below each party to any Security Document shall, within 10 Banking Days of a reasonable request by the other party to that Security Documents:

          

    	

          	(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, 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;

          

    	

          	(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 to any Security Document 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 the other party reasonably promptly;

          

    	

          	(c)	
            paragraph (a) above shall not oblige the Lender to do anything, and paragraph (a)(iii) above shall not oblige any other party to any Security Document to do anything, which would or might in
              its reasonable opinion constitute a breach of:

          

    	

          	(i)	
            any law or regulation;

          

    	

          	(ii)	
            any policy of the Lender;

          

    	

          	(iii)	
            any fiduciary duty; or

          

    	

          	(iv)	
            any duty of confidentiality;

          

    	

          	(d)	
            paragraph (a) above shall not oblige the Lender to do anything, and paragraph (a)(iii) above shall not oblige any other party to any Security Document to do anything, which would or might in
              its reasonable opinion cause it to disclose any confidential information

          

    
      35

      
        

    

    (including, without limitation, its tax returns and calculations); provided, however, that information required (or equivalent to the
      information so required) by United States Internal Revenue Service Forms W-8 or W-9 (or any successor forms) shall not be treated as confidential information of such Lender for purposes of this paragraph (d);

    	

          	(e)	
            if a party to any Security Document fails to confirm whether or not it is a FATCA Exempt Party, or to supply forms, documentation or other information requested in accordance with paragraph
              (a) (i) or (ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such party shall be treated for the purposes of the Security Documents (and payments under them) as if it is not a FATCA Exempt Party until
              (in each case) such time as that party provides the requested confirmation, forms, documentation or other information;

          

    	8.1.23	
            FATCA Deduction

          

    	

          	(a)	
            A party to any Security Document may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no party to any Security
              Document 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)	
            A party to any Security Document shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) notify
              the party to whom it is making the payment and, in addition, shall notify the Borrower and the Lender; and

          

    	8.1.24	
            Republic of the Marshall Islands Economic Substance Regulation 2018

          

    procure that the Corporate Guarantor will be in compliance with the Republic of the Marshall Islands Economic Substance Regulation 2018 in
      accordance with its terms and time frame once the same becomes applicable.

    	8.2	
            Security value maintenance

          

    	8.2.1	
            Valuation of the Vessel

          

    The Market Value of the Vessel shall be determined in each June and December in each calendar year within the Facility Period by a
      valuation report:

    	

          	(a)	
            in Dollars;

          

    	

          	(b)	
            by an Approved Broker appointed by the Lender;

          

    	

          	(c)	
            without physical inspection of the Vessel (unless the Lender may so require); and

          

    	

          	(d)	
            on the basis of a sale for prompt delivery at arm’s length on normal commercial terms as between a willing seller and a willing buyer, without taking into account any existing charter or other
              contract of employment,

          

    
      36

      
        

    

    which valuation shall be binding as regards the Borrower (absent manifest error).

    	8.2.2	
            Information

          

    The Borrower shall promptly provide the Lender and any shipbroker or expert carrying out the valuation with any information which the
      Lender or the shipbroker or expert may reasonably request for the proposes 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 assumptions which the Lender and any
      shipbroker or expert appointed by it, considers prudent.

    	8.2.3	
            Costs

          

    Within the Facility Period, the Borrower shall provide the Lender with valuation report of the Vessel and shall bear the costs in
      connection with the Lender obtaining valuations of the Vessel not more than twice per year. In the event of valuation for additional securities provided for the purpose of clause 8.2.5, same should be under Borrower’s account and shall not be
      included in the aforementioned frequency.

    	8.2.4	
            Minimum required security cover

          

    Clause 8.2.5 applies if the Lender notifies the Borrower that the aggregate Security Value is below 120% of the Loan at any time during the
      Facility Period.

    	8.2.5	
            Provision of additional security; prepayment

          

    If the Lender serves a notice on the Borrower under clause 8.2.4, the Borrower shall, or shall procure the Corporate Guarantor to, within
      thirty (30) days after the date on which the Lender’s notice is served, either:

    	

          	(a)	
            provide, or ensure that a third party provides, cash deposit in the amount equal to the shortfall, or additional security which, in the opinion of the Lender, has a net realisable value at
              least equal to the shortfall and is documented in such terms as the Lender may approve or require; and/or

          

    	

          	(b)	
            prepay such part (at least) of the Loan under clause 4.2 as will eliminate the shortfall.

          

    For the purpose of the Security Documents, the value at any time of any other asset over which additional security is provide under this
      Clause 8.2 will be value as most recently determined in accordance with this Clause 8.2.

    In addition, for the purposes of this clause 8.2.5 the market value (i) of any additional security over a ship (other than the Vessel)
      shall be determined (at the Borrower’s expense) in USD by an Approved Broker appointed by, and reporting to, the Lender, such valuation to be made without physical inspection, and on the basis of a sale for prompt delivery for cash at arms’ length,
      on normal commercial terms, as between a willing buyer and a willing seller, without taking into account the benefit or burden of any charterparty or other engagement concerning the Vessel and (ii) of any other additional security provided or to be
      provided to the Lender shall be determined by the Lender in its reasonable discretion, Provided that

    
      37

      
        

    

    additional security in the form of cash in Dollars will be valued on a Dollar for Dollar basis.

    	8.2.6	
            Documents and evidence

          

    In connection with any additional security provided in accordance with this clause 8.2, the Lender shall be entitled to receive (at the
      Borrower’s expense) such evidence and documents of the kind referred to in schedule 2 as may in the Lender’s reasonable opinion be appropriate and such favourable legal opinions as the Lender shall reasonably require.

    	8.2.7	
            Release of Security

          

    If the Security Value shall at any time exceeds 120% of the Loan, and the Borrower shall previously have provided further security to the
      Lender pursuant to clause 8.2.5 for more than three (3) months, the Lender shall, as soon as reasonably practicable after notice from the Borrower to do so and subject to being indemnified to its reasonable satisfaction against the cost of doing so,
      release any such further security specified by the Borrower provided that the Lender is satisfied that, immediately following such release, the Security Value will equal or exceed 120% of the Loan.

    	8.3	
            Negative undertakings relating to the Borrower

          

    The Borrower undertakes with the Lender that, from the Execution Date until the end of the Facility Period, it will procure that, except
      with the prior written consent of the Lender (and such consent in respect of any change of name of the Vessel not to be unreasonably withheld), it will not:

    	8.3.1	
            Negative pledge

          

    permit any Encumbrance (other than a Permitted Encumbrance) to subsist, arise or be created or extended over all or any part of its present
      or future undertakings, assets, rights or revenues to secure or prefer any present or future Indebtedness or other liability or obligation of any Group Member or any other person;

    	8.3.2	
            No merger or transfer

          

    merge or consolidate with any other person or permit any change to the legal or beneficial ownership of its shares from that existing at
      the Execution Date (and for the avoidance of doubt any change in the ownership of shares of and in the Corporate Guarantor occurring in the normal course of business shall not constitute a breach of this clause 8.3);

    	8.3.3	
            Disposals

          

    sell, transfer, assign, create security or option over, pledge, pool, abandon, lend or otherwise dispose of or cease to exercise direct
      control over any part of their present or future undertaking, assets, rights or revenues (otherwise than by transfers, sales or disposals for full consideration in the ordinary course of trading) whether by one or a series of transactions related or
      not;

    	8.3.4	
            Other business or manager

          

    
      38

      
        

    

    undertake any type of business other than the ownership and operation of the Vessel or (without the prior consent of the Lender) employ
      anyone other than the Manager as commercial and technical manager of the Vessel;

    	8.3.5	
            Acquisitions

          

    acquire, any assets other than the Vessel and rights arising under contracts entered into by or on behalf of the Borrower in the ordinary
      course of its business of owning, operating and chartering the Vessel;

    	8.3.6	
            Other obligations

          

    incur, any obligations except for obligations arising under the Underlying Documents or the Security Documents or contracts entered into in
      the ordinary course of its business of owning, operating and chartering the Vessel;

    	8.3.7	
            No borrowing

          

    incur any Borrowed Money except for Borrowed Money (i) pursuant to the Security Documents or (ii) incurred in the ordinary course of its
      business of owning, operating and chartering the Vessel or (iii) owed by any Group Member provided that such Borrowed Money is fully subordinated to the Borrowed Money incurred under the Security Documents by a Subordination Deed in form and
      substance reasonably acceptable to the Lender;

    	8.3.8	
            Repayment of borrowings

          

    repay or prepay the principal of, or pay interest on or any other sum in connection with any of their Borrowed Money except for Borrowed
      Money pursuant to or permitted under the Security Documents;

    
      	8.3.9	
              Guarantees

            

       

    issue any guarantees or otherwise become directly or contingently liable for the obligations of any person, firm, or corporation except
      pursuant to the Security Documents and except for guarantees from time to time required in the ordinary course of trading up to USD350,000 or such higher amount as agreed with the Lender or by any protection and indemnity or war risks association
      with which the Vessel is entered, guarantees required to procure the release of the Vessel from any arrest, detention, attachment or levy or guarantees required for the salvage of the Vessel;

    	8.3.10	
            Loans

          

    make any loans or grant any credit (save for normal trade credit in the ordinary course of business) to any person or agree to do so;

    	8.3.11	
            Sureties

          

    permit any Indebtedness of the Borrower to any person (other than to the Lender pursuant to the Security Documents) to be guaranteed by any
      person (except for guarantees from time to time required in the ordinary course of trading up to USD350,000 or such higher amount as agreed with the Lender or by any protection and indemnity or war risks association with which the Vessel is entered,
      guarantees required to procure the release of

    
      39

      
        

    

    the Vessel from any arrest, detention, attachment or levy or guarantees or undertakings required for the salvage of the Vessel); or

    	8.3.12	
            Flag, Class etc.

          

    permit:

    	

          	(a)	
            any change in the name or flag of the Vessel;

          

    	

          	(b)	
            any change of Classification or Classification Society in respect of the Vessel;

          

    	

          	(c)	
            any change of Manager in respect of the Vessel; or

          

    	

          	(d)	
            any change in the ownership (including ultimate beneficial ownership) or control of the Borrower from that existing as at the date hereof and shall procure that there is no change in the
              ownership (including ultimate beneficial ownership) or control of the Manager (if other than the Corporate Guarantor) from that existing as at the date hereof (and for the avoidance of doubt any change in the ownership of shares of and in the
              Corporate Guarantor occurring in the normal course of business shall not constitute a breach of this clause);

          

    	8.3.13	
            Underlying Documents

          

    terminate or materially amend or vary an Extended Employment Contract or a Management Agreement (and for the avoidance of doubt, material
      amendments include, but are not limited to, reductions of rate of hire, increase of management fees not already provided for in the Management Agreement and termination rights); or

    	8.3.14	
            Lay-up

          

    de-activate or lay up the Vessel; or

    	8.3.15	
            Place of business

          

    own or operate and will procure that no Security Party shall own or operate a place of business situate in England; or

    	8.3.16	
            Share capital and distribution

          

    declare or pay any dividends if an Event of Default has occurred and is continuing or would occur as a result of such declaration or
      payment or distribute any of its present or future assets, undertakings, rights or revenue;

    	8.3.17	
            Sharing of Earnings

          

    permit there to be any agreement or arrangement whereby the Earnings (as defined in the relevant Ship Security Documents) of the Vessel may
      be shared or pooled howsoever with any other person except for customary profit sharing arrangements under a charterparty;

    	8.3.18	
            Lawful use

          

    
      40

      
        

    

    permit the Vessel to be employed:

    	

          	(i)	
            in any way or in any activity with a Restricted Person or in any Sanctions Restricted Jurisdiction or which is (i) unlawful under international law or the domestic laws of any relevant country
              or (ii) contrary to any Sanctions;

          

    	

          	(ii)	
            to the best of its knowledge, in carrying illicit or prohibited goods;

          

    	

          	(iii)	
            in a way which may make the Vessel liable to be condemned by a prize court or destroyed, seized or confiscated;

          

    	

          	(iv)	
            in any part of the world where there are hostilities (whether war has been declared or not), unless such employment has been notified to, and approved by, the relevant insurers of the Vessel;
              or

          

    	

          	(v)	
            to the best of its knowledge, in carrying contraband goods,

          

    and the Borrower shall procure that the persons responsible for the operation of the Vessel shall take all necessary and proper precautions
      to ensure that this does not happen, including participation in industry or other voluntary schemes available to the Vessel and in which leading operators of ships operating under the same flag or engaged in similar trades generally participate at
      the relevant time;

    	8.3.19	
            FATCA

          

    become a FATCA FFI or a US Tax Obligor and shall procure that no Security Party shall do so.

    	9	
            CONDITIONS

          

    	9.1	
            Initial conditions precedent

          

    The Borrower may not deliver the Drawdown Notice unless the Lender, or its duly authorised representative, has received in form and
      substance satisfactory to it all of the documents and other evidence listed in part 1 of schedule 2, in form and substance satisfactory to the Lender.

    	9.2	
            Conditions precedent on Drawdown

          

    Subject to clause 9.1, the Lender will only be obliged to comply with clause 2.2 in relation to the Drawdown of the Loan, if the Lender, or
      its duly authorised representative, has received in form and substance satisfactory to it all of the documents and evidence listed in part 2 of schedule 2.

    	9.3	
            Further conditions precedent

          

    The Lender will only be obliged to comply with clause 2.2 if on the date of the Drawdown Notice and on the proposed Drawdown Date:

    	

          	(c)	
            no Default is continuing or would result from the proposed Drawdown;

          

    	

          	(d)	
            all of the representations set out in clause 7 are true; and

          

    
      41

      
        

    

    the representations are true so far as they relate to the Vessel.

    	9.4	
            Conditions subsequent

          

    The Borrower undertakes to deliver or to cause to be delivered to the Lender the documents and evidence listed in part 3 of schedule 2 as
      soon as practicable after the Drawdown Date, but no later than the date as stipulated set out therein.

    	9.5	
            Waiver of conditions precedent

          

    The conditions in this clause 9 are inserted solely for the benefit of the Lender and may be waived by the Lender in whole or in part and
      with or without conditions.

    	10	
            EVENTS OF DEFAULT

          

    	10.1	
            Events

          

    Each of the following events shall constitute an Event of Default (whether such event shall occur voluntarily or involuntarily or by
      operation of law or regulation or in connection with any judgment, decree or order of any court or other authority or otherwise, howsoever):

    	10.1.1	
            Non-payment: any Security Party fails to pay any sum payable by it under any of the Security Documents to which it is a party at the time, in the
              currency and in the manner stipulated in the Security Documents (and so that, for this purpose, sums payable (i) under clauses 3.1 and 4.1 shall be treated as having been paid at the stipulated time if (aa) received by the Lender within two
              (2) Banking Days of the dates therein referred to and (bb) such delay in receipt is caused by administrative or other delays or errors within the banking system and (ii) on demand shall be treated as having been paid at the stipulated time if
              paid within two (2) Banking Days of demand); or

          

    	10.1.2	
            Breach of Insurance and certain other obligations: the Borrower or, as the context may require, the Manager or any other person fails to obtain and/or
              maintain the Insurances (as defined in, and in accordance with the requirements of, the Ship Security Documents) for the Vessel or if any insurer in respect of such Insurances cancels the Insurances or disclaims liability by reason, in either
              case, of mis-statement in any proposal for the Insurances or for any other failure or default on the part of the Borrower or any other person or the Borrower commits any breach of or omits to observe any of the obligations or undertakings
              expressed to be assumed by it under clause 8; or

          

    	10.1.3	
            Breach of other obligations: any Security Party commits any breach of or omits to observe any of its obligations or undertakings expressed to be
              assumed by it under any of the Security Documents to which it is a party (other than those referred to in clauses 10.1.1 and 10.1.2 above) unless such breach or omission, in the opinion of the Lender is capable of remedy, in which case the
              same shall constitute an Event of Default if it has not been remedied within fifteen (15) Banking Days of the occurrence thereof; or

          

    	10.1.4	
            Misrepresentation: any representation or warranty made or deemed to be made or repeated by or in respect of any Security Party in or pursuant to any of
              the Security Documents to which it is a party or in any notice,

          

    
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    certificate or statement referred to in or delivered under any of the Security Documents is or proves to have been incorrect or misleading
      in any material respect; or

    	10.1.5	
            Cross-default: any Indebtedness of the Borrower or any Indebtedness of the Corporate Guarantor exceeding USD1,000,000 is not paid when due (subject to
              applicable grace periods) or any Indebtedness of the Borrower or any Indebtedness of the Corporate Guarantor exceeding USD1,000,000 becomes (whether by declaration or automatically in accordance with the relevant agreement or instrument
              constituting the same) due and payable prior to the date when it would otherwise have become due (unless as a result of the exercise by the Borrower or the Corporate Guarantor of a voluntary right of prepayment), or any creditor of the
              Borrower or the Corporate Guarantor becomes entitled to declare any such Indebtedness due and payable or any facility or commitment available to the Borrower or the Corporate Guarantor relating to Indebtedness is withdrawn, suspended or
              cancelled by reason of any default (however described) of the person concerned, and such Indebtedness of the Borrower or the Corporate Guarantor (as the case may be) is not paid within fourteen (14) Banking Days from the due date for payment;
              or

          

    	10.1.6	
            Execution: any uninsured judgment or order made against any Security Party is not stayed, appealed against or complied with within fifteen (15) days or
              a creditor attaches or takes possession of, or a distress, execution, sequestration or other process is levied or enforced upon or sued out against, any of the undertakings, assets, rights or revenues of any Security Party and is not
              discharged within twenty (20) days; or

          

    	10.1.7	
            Insolvency: any Security Party is unable or admits inability to pay its debts as they fall due; suspends making payments on any of its debts or
              announces an intention to do so; becomes insolvent; or has negative net worth (taking into account contingent liabilities); or suffers the declaration of a moratorium in respect of any of its Indebtedness; or

          

    	10.1.8	
            Dissolution: any corporate action, Proceedings or other steps are taken to dissolve or wind-up any Security Party unless the Borrower can demonstrate
              to the satisfaction of the Lender, by providing an opinion of leading counsel that such corporate action, Proceedings or other steps are frivolous, vexatious or an abuse of the process of the court or an order is made or resolution passed for
              the dissolution or winding up of any Security Party or a notice is issued convening a meeting for such purpose; or

          

    	10.1.9	
            Administration: any petition is presented, notice given or other steps are taken anywhere to appoint an administrator of any Security Party or an
              administration order is made in relation to any Security Party; or

          

    	10.1.10	
            Appointment of receivers and managers: any administrative or other receiver is appointed anywhere of any Security Party or any material part of its
              assets and/or undertaking or any other steps are taken to enforce any Encumbrance over all or any substantial part of the assets of any Security Party; or

          

    	10.1.11	
            Compositions: any corporate action, legal proceedings or other procedures or steps are taken or negotiations commenced, by any Security Party or by any
              of its creditors with a view to the general readjustment or rescheduling of all or a substantial part of its Indebtedness or to proposing any kind of composition, compromise or arrangement involving such company and any

          

    
      43

      
        

    

    of its creditors (excluding always negotiations with holders of preferred shares); or

    	10.1.12	
            Analogous proceedings: there occurs, in relation to any Security Party, in any country or territory in which any of them carries on business or to the
              jurisdiction of whose courts any part of their assets is subject, any event which, in the reasonable opinion of the Lender, appears in that country or territory to correspond with, or have an effect equivalent or similar to, any of those
              mentioned in clauses 10.1.6 to 10.1.11 (inclusive) or any Security Party otherwise becomes subject, in any such country or territory, to the operation of any law relating to insolvency, bankruptcy or liquidation; or

          

    	10.1.13	
            Cessation of business: any Security Party suspends or ceases or threatens to suspend or cease to carry on its business without the prior consent of the
              Lender; or

          

    	10.1.14	
            Seizure: all or a material part of the undertaking, assets, rights or revenues of, or shares or other ownership interests in, any Security Party are
              seized, nationalised, expropriated or compulsorily acquired by or under the authority of any Government Entity and the same are not returned to the relevant Security Party within 45 days of such seizure, nationalisation, expropriation or
              compulsory acquisition; or

          

    	10.1.15	
            Invalidity: any of the Security Documents shall at any time and for any reason become invalid or unenforceable or otherwise cease to remain in full
              force and effect, or if the validity or enforceability of any of the Security Documents shall at any time and for any reason be contested by any Security Party which is a party thereto, or if any such Security Party shall deny that it has
              any, or any further, liability thereunder; or

          

    	10.1.16	
            Unlawfulness: any Unlawfulness occurs or it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the covenants and
              obligations expressed to be assumed by it in any of the Security Documents or for the Lender to exercise the rights or any of them vested in it under any of the Security Documents or otherwise; or

          

    	10.1.17	
            Repudiation: any Security Party repudiates any of the Security Documents or does or causes or permits to be done any act or thing evidencing an
              intention to repudiate any of the Security Documents; or

          

    	10.1.18	
            Encumbrances enforceable: any Encumbrance (other than Permitted Encumbrances) in respect of any of the property (or part thereof) which is the subject
              of any of the Security Documents becomes enforceable; or

          

    	10.1.19	
            Arrest: the Vessel is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained in exercise or purported exercise of any
              possessory lien or other claim or otherwise taken from the possession of the Borrower and the Borrower shall fail to procure the release of the Vessel within a period of fifteen (15) Banking Days thereafter; or

          

    	10.1.20	
            Registration: the registration of the Vessel under the laws and flag of the Flag State is cancelled or terminated without the prior written consent of
              the Lender; or

          

    	10.1.21	
            Unrest: the Flag State of the Vessel becomes involved in hostilities or civil war or there is a seizure of power in the Flag State by unconstitutional
              means unless the Borrower shall have transferred the Vessel onto a new flag

          

    
      44

      
        

    

    acceptable to the Lender within thirty (30) days of the Lender’s written request to the Borrower to effect such transfer; or

    	10.1.22	
            Environmental Incidents: an Environmental Incident occurs which gives rise, or may give rise, to an Environmental Claim which could, in the opinion of
              the Lender be expected to have a Material Adverse Effect (i) on the financial condition of any Security Party or the Group taken as a whole or (ii) on the security constituted by any of the Security Documents or the enforceability of that
              security in accordance with its terms; or

          

    	10.1.23	
            P&I: the Borrower or the Manager or any other person fails or omits to comply with any requirements of the protection and indemnity association or
              other insurer with which the Vessel is entered for insurance or insured against protection and indemnity risks (including oil pollution risks) to the effect that any cover (including, without limitation, any cover in respect of liability for
              Environmental Claims arising in jurisdictions where the Vessel operates or trades) is or may be liable to cancellation, qualification or exclusion at any time; or

          

    	10.1.24	
            Material events: any other event occurs or circumstance arises which, in the reasonable opinion of the Lender, is likely materially and adversely to
              affect either (i) the ability of any Security Party to perform all or any of its obligations under or otherwise to comply with the terms of any of the Security Documents to which it is a party or (ii) the security created by any of the
              Security Documents or (iii) the value or nature of the financial condition of any Security Party (other than the Manager); or

          

    	10.1.25	
            Required Authorisations: to the extent it has not been waived, any Required Authorisation is revoked or withheld or modified or is otherwise not
              granted or fails to remain in full force and effect; or

          

    	10.1.26	
            Money Laundering: any Security Party is in breach of or fails to observe any law, official requirement, other regulatory measure or procedure
              implemented to combat “money laundering” as defined in Article 1 of the Directive (2015/849/EC) of the Council of the European Communities; or

          

    	10.1.27	
            Management Agreement: a Management Agreement is terminated, revoked, suspended, rescinded, transferred, novated or otherwise ceases to remain in full
              force and effect for any reason except with the prior consent of the Lender; or

          

    	10.1.28	
            Change of Ownership: there is any change in the immediate and/or ultimate legal and/or beneficial ownership or control of any of the shares of the
              Borrower or the Shareholder from that existing on the Execution Date (and for the avoidance of doubt any change in the ownership of shares of and in the Corporate Guarantor occurring in the normal course of business shall not constitute a
              breach of this clause); or

          

    	10.1.29	
            Sanctions: A Security Party fails to comply with clauses 7.1.26, 7.1.27 or 8.1.19 of this Agreement.

          

    	10.2	
            Acceleration

          

    The Lender may at any time after the occurrence of an Event of Default, and only while the same is continuing, by notice to the Borrower
      declare that:

    
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    	10.2.1	
            the obligation of the Lender to make its Commitment available shall be terminated, whereupon the Total Commitment shall be reduced to zero forthwith; and/or

          

    	10.2.2	
             the Loan and all interest accrued and all other sums payable whatsoever under the Security Documents have become due and payable, whereupon the same shall, immediately or in accordance with
              the terms of such notice, become due and payable.

          

    	10.3	
            Demand Basis

          

    If, under clause 10.2.2, the Lender has declared the Loan to be due and payable on demand, at any time thereafter the Lender shall by
      written notice to the Borrower (a) demand repayment of the Loan on such date as may be specified whereupon, regardless of any other provision of this Agreement, the Loan shall become due and payable on the date so specified together with all interest
      accrued and all other sums payable under this Agreement or (b) withdraw such declaration with effect from the date specified in such notice.

    	11	
            INDEMNITIES

          

    	11.1	
            General indemnity

          

    The Borrower agrees to indemnify the Lender on demand, without prejudice to any of the Lender's other rights under any of the Security
      Documents, against any loss (including loss of Margin) or expense (including, without limitation, Break Costs) which the Lender shall certify as sustained by it as a consequence of any Default, any prepayment of the Loan being made under clauses 4.3,
      4.4, 8.2.5 or 12.1 or any other repayment or prepayment of the Loan being made otherwise than on an Interest Payment Date relating to the part of the Loan prepaid or repaid; and/or the Loan not being made for any reason (excluding any default by the
      Lender) after the Drawdown Notice has been given.

    	11.2	
            Environmental indemnity

          

    The Borrower shall indemnify the Lender on demand and hold it harmless from and against all costs, claims, expenses, payments, charges,
      losses, demands, liabilities, actions, Proceedings, penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be incurred or made or asserted whensoever against the Lender at any time, whether before or
      after the repayment in full of principal and interest under this Agreement, arising howsoever out of an Environmental Claim made or asserted against the Lender which would not have been, or been capable of being, made or asserted against the Lender
      had it not entered into any of the Security Documents or been involved in any of the resulting or associated transactions.

    	11.3	
            Capital adequacy and reserve requirements indemnity

          

    The Borrower shall promptly indemnify the Lender on demand against any cost incurred or loss suffered by the Lender as a result of its
      complying with (i) the minimum reserve requirements from time to time (ii) any capital adequacy directive and/or (iii) any revised framework for international convergence of capital measurements and capital standards and/or any regulation imposed by
      any Government Entity in connection therewith,

    
      46

      
        

    

    and/or in connection with maintaining required reserves with a relevant national central bank to the extent that such compliance or
      maintenance relates to the Commitment and/or the Loan or deposits obtained by it to fund the whole or part thereof and to the extent such cost or loss is not recoverable by the Lender under clause 12.2.

    	12	
            UNLAWFULNESS AND INCREASED COSTS

          

    	12.1	
            Unlawfulness

          

    If it is or becomes contrary to any law, directive or regulation for the Lender to contribute to the Loan or to maintain its Commitment or
      fund the Loan, the Lender shall promptly give notice to the Borrower whereupon (a) the Loan and Commitment shall be reduced to zero and (b) the Borrower shall be obliged to prepay the Loan either (i) forthwith or (ii) on a future specified date not
      being earlier than the latest date permitted by the relevant law, directive or regulation together with interest accrued to the date of prepayment and all other sums payable by the Borrower under this Agreement.

    Provided that if circumstances arise which would result in a notification under this clause 12.1 then, prior to giving such notice, the
      Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement and the Security Documents to another office of the Lender not affected by the circumstances but the 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.

          

    	12.2	
            Increased costs

          

    If the result of any change in, or in the interpretation or application of, or the introduction of, any law or any regulation, request or
      requirement (whether or not having the force of law, but, if not having the force of law, with which the Lender or, as the case may be, its holding company habitually complies), including (without limitation) those relating to Taxation, capital
      adequacy, liquidity, reserve assets, cash ratio deposits and special deposits, is to:

    	12.2.1	
            subject the Lender to Taxes or change the basis of Taxation of the Lender with respect to any payment under any of the Security Documents (other than Taxes or Taxation on the overall net
              income, profits or gains of the Lender imposed in the jurisdiction in which its principal or lending office under this Agreement is located); and/or

          

    	12.2.2	
            increase the cost to, or impose an additional cost on, the Lender or its holding company in making or keeping the Commitment available or maintaining or funding all or part of the Loan; and/or

          

    
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    	12.2.3	
            reduce the amount payable or the effective return to the Lender under any of the Security Documents; and/or

          

    	12.2.4	
            reduce the Lender's or its holding company's rate of return on its overall capital by reason of a change in the manner in which it is required to allocate capital resources to its obligations
              under any of the Security Documents; and/or

          

    	12.2.5	
            require the Lender or its holding company to make a payment or forgo a return on or calculated by reference to any amount received or receivable by it under any of the Security Documents;
              and/or

          

    	12.2.6	
            require the Lender or its holding company to incur or sustain a loss (including a loss of future potential profits) by reason of being obliged to deduct all or part of the Commitment or the
              Loan from its capital for regulatory purposes,

          

    then and in each such case (subject to clause 12.3):

    	

          	(a)	
            the Lender shall notify the Borrower in writing of such event promptly upon its becoming aware of the same; and

          

    	

          	(b)	
            the Borrower shall on demand made at any time whether or not the Loan has been repaid, pay to the Lender the amount which the Lender specifies (in a certificate setting forth the basis of the
              computation of such amount but not including any matters which the Lender or its holding company regards as confidential) is required to compensate the Lender and/or (as the case may be) its holding company for such liability to Taxes, cost,
              reduction, payment, forgone return or loss.

          

    For the purposes of this clause 12.2 “holding company” means the company or entity (if any) within the consolidated supervision of which
      the Lender is included.

    	12.3	
            Exception

          

    Nothing in clause 12. shall entitle the Lender to receive any amount in respect of compensation for any such liability to Taxes, increased
      or additional cost, reduction, payment, foregone return or loss to the extent that the same is the subject of an additional payment under clause 6.6.

    	13	
            APPLICATION OF MONEYS, SET OFF, PRO-RATA PAYMENTS AND MISCELLANEOUS

          

    	13.1	
            Application of moneys

          

    All moneys received by the Lender under or pursuant to any of the Security Documents and expressed to be applicable in accordance with the
      provisions of this clause 13.1 or in a manner determined in the Lender’s discretion, shall be applied in the following manner:

    	13.1.1	
            first, in or towards payment, in such order as the Lender may decide, of any unpaid costs and expenses of the Lender and the Lender under any of the Security Documents;

          

    
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    	13.1.2	
            secondly, in or towards payment of any fees payable to the Lender under, or in relation to, the Security Documents which remain unpaid;

          

    	13.1.3	
            thirdly, in or towards payment to the Lender of any accrued default interest owing pursuant to clause 3.3 but remains unpaid;

          

    	13.1.4	
            fourthly, in or towards payment to the Lender of any accrued interest owing in respect of the Loan which shall have become due under any of the Security Documents but remains unpaid;

          

    	13.1.5	
             fifthly, in or towards payment to the Lender of any due but unpaid Repayment Instalments;

          

    	13.1.6	
            sixthly, in or towards payment to the Lender in application in repayment of the Loan in accordance with clause 4.7.2;

          

    	13.1.7	
            seventhly, in or towards payment for any loss suffered by reason of any such payment in respect of principal not being effected on an Interest Payment Date relating to the part of the Loan
              repaid and which amounts are so payable under this Agreement and any other sum relating to the Loan which shall have become due under any of the Security Documents but remains unpaid; and

          

    	13.1.8	
            eighthly, the surplus (if any) shall be paid to the Borrower or to whomsoever else may then be entitled to receive such surplus.

          

    The order of application set out in clauses 13.1.1 to 13.1.8 may be varied by the Lender without any reference to, or consent or approval
      from, the Borrower.

    	13.2	
            Set-off

          

    	13.2.1	
            The Borrower irrevocably authorises the Lender (without prejudice to any of the Lender’s rights at law, in equity or otherwise), following the occurrence of an Event of Default which is
              continuing and without notice to the Borrower, to apply any credit balance to which the Borrower is then entitled standing upon any account of the Borrower with any branch of the Lender in or towards satisfaction of any sum due and payable
              from the Borrower to the Lender under any of the Security Documents. For this purpose, the Lender is authorised to purchase with the moneys standing to the credit of such account such other currencies as may be necessary to effect such
              application.

          

    	13.2.2	
            The Lender shall not be obliged to exercise any right given to it by this clause 13.2. The Lender shall notify the Borrower forthwith upon the exercise or purported exercise of any right of
              set off giving full details in relation thereto.

          

    	13.2.3	
            Nothing in this clause 13.2 shall be effective to create a charge or other security interest.

          

    	13.3	
            Further assurance

          

    The Borrower undertakes with the Lender that the Security Documents shall both at the date of execution and delivery thereof and throughout
      the Facility Period be valid and binding obligations of the respective parties thereto which, with the rights of the Lender thereunder, are enforceable in

    
      49

      
        

    

    accordance with their respective terms and that it will, at its expense, execute, sign, perfect and do, and will procure the execution,
      signing, perfecting and doing by each of the other Security Parties of, any and every such further assurance, document, act or thing as in the reasonable opinion of the Lender may be necessary for perfecting the security contemplated or constituted
      by the Security Documents.

    	13.4	
            Conflicts

          

    In the event of any conflict between this Agreement and any of the other Security Documents, the provisions of this Agreement shall
      prevail.

    	13.5	
            No implied waivers, remedies cumulative

          

    No failure or delay on the part of the Lender to exercise any power, right or remedy under any of the Security Documents shall operate as a
      waiver thereof, nor shall any single or partial exercise by the Lender of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. The remedies provided in the Security Documents
      are cumulative and are not exclusive of any remedies provided by law. No waiver by the Lender shall be effective unless it is in writing.

    	13.6	
            Severability

          

    If any provision of this Agreement is prohibited, invalid, illegal or unenforceable in any jurisdiction, such prohibition, invalidity,
      illegality or unenforceability shall not affect or impair howsoever the remaining provisions thereof or affect the validity, legality or enforceability of such provision in any other jurisdiction.

    	13.7	
            Force Majeure

          

    Regardless of any other provision of this Agreement, the Lender shall not be liable for any failure to perform the whole or any part of
      this Agreement resulting directly or indirectly from (i) the action or inaction or purported action of any governmental or local authority (ii) any strike, lockout, boycott or blockade (including any strike, lockout, boycott or blockade effected by
      or upon the Lender or any of its representatives or employees) (iii) any act of God (iv) any act of war (whether declared or not) or terrorism or (v) any other circumstances whatsoever outside the Lender’s control.

    	13.8	
            Amendments

          

    This Agreement may be amended or varied only by an instrument in writing executed by all parties hereto who irrevocably agree that the
      provisions of this clause 13.8 may not be waived or modified except by an instrument in writing to that effect signed by all of them.

    	13.9	
            Replacement of Screen Rate

          

    	13.9.1	
            Any amendment or waiver which relates to:

          

    	

          	(a)	
            providing for the use of a Replacement Benchmark; and

          

    	

          	(b)	
            any or all of the following:

          

    
      50

      
        

    

    	

          	(i)	
            aligning any provision of any Security Document to the use of that Replacement Benchmark;

          

    	

          	(ii)	
            enabling that Replacement Benchmark to be used for the calculation of interest under this Agreement (including, without limitation, any consequential changes required to enable that
              Replacement Benchmark to be used for the purposes of this Agreement);

          

    	

          	(iii)	
            implementing market conventions applicable to that Replacement Benchmark;

          

    	

          	(iv)	
            providing for appropriate fallback (and market disruption) provisions for that Replacement Benchmark; or

          

    	

          	(v)	
            adjusting the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of economic value from one Party to another as a result of the application of that Replacement
              Benchmark (and if any adjustment or method for calculating any adjustment has been formally designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall be determined on the basis of that designation, nomination
              or recommendation),

             

            

             may be made with the consent of the Lender and the Security Parties.

          

    	13.9.2	
            In this clause 13.9:

          

    “Relevant Nominating Body” means any applicable central bank, regulator or other supervisory
      authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board.

    “Replacement Benchmark” means a benchmark rate which is:

    	

          	(a)	
            formally designated, nominated or recommended as the replacement for a Screen Rate by:

          

    	

          	(i)	
            the administrator of that Screen Rate (provided that the market or economic reality that such benchmark rate measures is the same as that measured by that Screen Rate); or

          

    	

          	(ii)	
            any Relevant Nominating Body,

          

    and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the “Replacement
      Benchmark” will be the replacement under paragraph (ii) above;

    
      51

      
        

    

    	

          	(b)	
            in the opinion of the Lender and the Security Parties, generally accepted in the international or any relevant domestic syndicated loan markets as the appropriate successor to that Screen
              Rate; or

          

    in the opinion of the Lender and the Security Parties, an appropriate successor to a Screen Rate.

    	13.10	
            Counterparts

          

    This Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute one and
      the same agreement which may be sufficiently evidenced by one counterpart.

    	13.11	
            English language

          

    All documents required to be delivered under and/or supplied whensoever in connection howsoever with any of the Security Documents and all
      notices, communications, information and other written material whatsoever given or provided in connection howsoever therewith must either be in the English language or accompanied, at the Lender’s request, by an English translation certified by a
      notary, lawyer or consulate acceptable to the Lender.

    	14	
            ASSIGNMENT, TRANSFER AND LENDING OFFICE

          

    	14.1	
            Benefit and burden

          

    This Agreement shall be binding upon, and ensure for the benefit of, the Lender and the Borrower and their respective successors in title.

    	14.2	
            No assignment by Borrower

          

    The Borrower may not assign or transfer any of its rights or obligations under this Agreement.

    	14.3	
            Transfer by Lender

          

    The Lender may at any time (i) change its office through which the Loan is made available or (ii) cause all or any part of its rights,
      benefits and/or obligations under this Agreement and the other Security Documents to be transferred or assigned without the consent of the Borrower or the Corporate Guarantor to a wholly-owned banking subsidiary or associated company of the Lender or
      with the consent (which should not be unreasonably withheld) of the Borrower to any third party (in either case a “Transferee Lender”) provided always that any such Transferee Lender, by delivery of such
      undertaking as the Lender may approve, becomes bound by the terms of this Agreement and agrees to perform all or, as the case may be, relevant part of the Lender’s obligations under this Agreement the rights and equities of the Borrower or of any
      other Security Party referred to above include, but are not limited to, any right of set-off and any other kind of cross-claim. The Lender shall give a notice to the Borrower at least 14 Banking Days if such transfer or assignment is to any third
      party.

    	14.4	
            Documenting transfers

          

    If the Lender assigns all or any part of its rights or transfers all or any part of its rights, benefits and/or obligations as provided in
      clause 14.3, the Borrower undertakes, immediately on being requested to do so by the

    
      52

      
        

    

    Lender and at the cost of the Transferee Lender, to enter into, and procure that the other Security Parties shall (at the cost of the
      Transferee Lender) enter into, such documents as may be necessary or desirable to transfer to the Transferee Lender all or the relevant part of the Lender’s interest in the Security Documents and all relevant references in this Agreement to the
      Lender shall thereafter be construed as a reference to the Lender and/or its Transferee Lender (as the case may be) to the extent of their respective interests. For the avoidance of doubt there will be no expense for the Borrower in connection with
      an assignment or transfer, as provided in clauses 14.3 and 14.5.

    	14.5	
            Sub-Participation

          

    The Lender may sub-participate all or any part of its rights and/or obligations under the Security Documents at its own expense without the
      consent of, or notice to, the Borrower. Any such sub-participation shall have no effect on the Lender’s rights under the Security Documents and shall not affect the Borrower at all.

    	14.6	
            Disclosure of information

          

    The Lender may disclose to:

    	

          	(a)	
            its officers, employees, auditors and professional advisers;

          

    	

          	(b)	
            persons to whom disclosure is required to be made by applicable law or court order or pursuant to the rules or regulations of any supervisory or regulatory body or in connection with any
              judicial proceedings;

          

    	

          	(c)	
            any person who may conduct any merger and acquisition (or any transaction of such kind) with the Lender;

          

    	

          	(d)	
            any person to bring lawsuits against, or to collect and recover whole or a part of the money payable by, the Borrower or the Corporate Guarantor under and pursuant to any of the Security
              Documents;

          

    	

          	(e)	
            any person conducting credit appraisal or verification, or any other person permitted by the laws;

          

    	

          	(f)	
            any person who (i) becomes a lender in accordance with this Agreement, (ii) is a prospective assignee, transferee of the Lender; or (iii) is a potential sub-participant of the Lender, and
              their respective professional advisers (a “Prospective Assignee”) who may propose entering into contractual relations with the Lender in relation to this Agreement such information about the Borrower
              and/or the other Security Parties as the Lender shall consider appropriate, but only if the Prospective assignee has first undertaken to the Borrower to keep secret and confidential and, not without the prior written consent of the Borrower,
              disclose to any third party, any of the information, reports or documents to be supplied by the Lender.

          

    	14.7	
            No additional costs

          

    If at the time of, or immediately after, any assignment or transfer by the Lender of all or any part of its rights or benefits or
      obligations under this

    
      53

      
        

    

    Agreement, or any change in the office through which it lends for the purposes of this Agreement, the Borrower would be obliged to pay to
      the Lender or, as the case may be, the Transferee Lender under clause 3.4, 6.6 or clause 12.2 any sum in excess of the sum (if any) which it would have been obliged to pay to the Lender or the Transferor Lender, as the case may be, under the relevant
      clause in the absence of such assignment, transfer or change, the Borrower shall not be obliged to pay that excess.

    	15	
            NOTICES AND OTHER MATTERS

          

    	15.1	
            Notices

          

    	15.1.1	
            unless otherwise specifically provided herein, every notice under or in connection with this Agreement shall be given in English by letter delivered personally and/or sent by post and/or
              transmitted by fax and/or electronically;

          

    	15.1.2	
            in this clause “notice” includes any demand, consent, authorisation, approval, instruction, certificate, request, waiver or other communication.

          

    	15.2	
            Addresses for communications, effective date of notices

          

    	15.2.1	
            Subject to clause 15.2.2 and clause 15.2.5 notices to the Borrower shall be deemed to have been given and shall take effect when received in full legible form by the Borrower at the address
              and/or the fax number appearing below (or at such other address or fax number as the Borrower may hereafter specify for such purpose to the Lender by notice in writing);

          

    	 	
            Address:

          	
            c/o Eurodry Ltd.

              4, Messogiou & Evropis Street, 151 24, Maroussi, Greece

          
	 	
            Fax:

          	
            +30 211 180 40 97

          
	 	
            Attn:

          	
            Tassos Aslidis/Simos Pariaros

          
	 	
            Email:

          	
            aha@eurodry.gr/snp@eurodry.gr

          

    

    

    	15.2.2	
            notwithstanding the provisions of clause 15.2.1 or clause 15.2.5, a notice of Default and/or a notice given pursuant to clause 10.2 or clause 10.3 to the Borrower shall be deemed to have been
              given and shall take effect when delivered, sent or transmitted by the Lender to the Borrower to the address or fax number referred to in clause 15.2.1;

          

    	15.2.3	
            subject to clause 15.2.5, notices to the Lender shall be deemed to be given, and shall take effect, when received in full legible form by the Lender at the address and/or the fax number
              appearing below (or at any such other address or fax number as the Lender may hereafter specify for such purpose to the Borrower in writing);

          

    	 	
            Address:

          	
            c/o SinoPac Leasing Corp.

              5/F., NO. 203 Bade Road, Sec. 2, Taipei 10491, Taiwan, R.O.C.

          
	 	
            Fax:

          	
            +886-2-81612452

          
	 	
            Attn:

          	
            Carol Lin

          
	 	
            Email:

          	
            carol.cl.lin@sinopac.com

          

    

    

    	15.2.4	
            subject to clause 15.2.5, notices to the Lender shall be deemed to be given and shall take effect when received in full legible form by the Lender at its address and/or fax number specified in
              the definition of “Lender” (or at any other address or fax number as the Lender may hereafter specify for such purpose); and

          

    
      54

      
        

    

    	15.2.5	
            if under clause 15.2.1 or clause 15.2.3 a notice would be deemed to have been given and effective on a day which is not a working day in the place of receipt or is outside the normal business
              hours in the place of receipt, the notice shall be deemed to have been given and to have taken effect at the opening of business on the next working day in such place.

          

    	15.3	
            Electronic Communication

          

    	15.3.1	
            Any communication to be made by and/or between the Lender and the Security Parties or any of them under or in connection with the Security Documents or any of them may be made by electronic
              mail or other electronic means, if and provided that all such parties:

          

    	

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

          

    	

          	(b)	
            notify each other of any change to their electronic mail address or any other such information supplied by them.

          

    	15.3.2	
            Any electronic communication made by and/or between the Lender and the Security Parties or any of them will be effective only when actually received in readable form.

          

    	16	
            GOVERNING LAW

          

    This Agreement and any non-contractual obligations arising out of or in connection with it is governed by and shall be construed in
      accordance with English law.

    	17	
            JURISDICTION

          

    	17.1	
            Exclusive Jurisdiction

          

    For the benefit of the Lender, and subject to clause 17.4 below, the Borrower hereby irrevocably agrees that the courts of England shall
      have exclusive jurisdiction:

    	17.1.1	
            to settle any disputes or other matters whatsoever arising under or in connection with this Agreement or any non-contractual obligation arising out of or in connection with this Agreement and
              any disputes or other such matters arising in connection with the negotiation, validity or enforceability of this Agreement or any part thereof, whether the alleged liability shall arise under the laws of England or under the laws of some
              other country and regardless of whether a particular cause of action may successfully be brought in the English courts; and

          

    
      	17.1.2	
              to grant interim remedies or other provisional or protective relief.

            

    

     

    	17.2	
            Submission and service of process

          

    The Borrower accordingly irrevocably and unconditionally submits to the jurisdiction of the English courts. Without prejudice to any other
      mode of service the Borrower:

    	17.2.1	
            irrevocably empowers and appoints Messrs Hill Dickinson Services (London) Ltd at present of The Broadgate Tower, 20 Primrose Street, London EC2A

          

    
      55

      
        

    

    2EW, England, as its agent to receive and accept on its behalf any process or other document relating to any proceedings before the English
      courts in connection with this Agreement;

    	17.2.2	
            agrees to maintain such an agent for service of process in England from the date hereof until the end of the Facility Period;

          

    	17.2.3	
            agrees that failure by a process agent to notify the Borrower of service of process will not invalidate the proceedings concerned;

          

    	17.2.4	
            without prejudice to the effectiveness of service of process on its agent under clause 17.2.1 above but as an alternative method, consents to the service of process relating to any such
              proceedings by mailing or delivering a copy of the process to its address for the time being applying under clause 16.2; and

          

    	17.2.5	
             agrees that if the appointment of any person mentioned in clause 17.2.1 ceases to be effective, the Borrower shall immediately appoint a further person in England to accept service of process
              on its behalf in England and, failing such appointment within seven (7) days the Lender shall thereupon be entitled and is hereby irrevocably authorised by the Borrower in those circumstances to appoint such person by notice to the Borrower.

          

    	17.3	
            Forum non conveniens and enforcement abroad

          

    The Borrower:

    	17.3.1	
            waives any right and agrees not to apply to the English court or other court in any jurisdiction whatsoever to stay or strike out any proceedings commenced in England on the ground that
              England is an inappropriate forum and/or that Proceedings have been or will be started in any other jurisdiction in connection with any dispute or related matter falling within clause 17.1; and

          

    	17.3.2	
            agrees that a judgment or order of an English court in a dispute or other matter falling within clause 17.1 shall be conclusive and binding on the Borrower and may be enforced against it in
              the courts of any other jurisdiction.

          

    	17.4	
            Right of Lender, but not Borrower, to bring proceedings in any other jurisdiction

          

    	17.4.1	
            Nothing in this clause 17 limits the right of the Lender to bring Proceedings, including third party proceedings, against the Borrower, or to apply for interim remedies, in connection with
              this Agreement in any other court and/or concurrently in more than one jurisdiction;

          

    	17.4.2	
            the obtaining by the Lender of judgment in one jurisdiction shall not prevent the Lender from bringing or continuing proceedings in any other jurisdiction, whether or not these shall be
              founded on the same cause of action.

          

    	17.5	
            Enforceability despite invalidity of Agreement

          

    Without prejudice to the generality of clause 13.6, the jurisdiction agreement contained in this clause 17 shall be severable from the rest
      of this Agreement and shall remain valid, binding and in full force and shall continue to apply notwithstanding this Agreement or any part thereof being

    
      56

      
        

    

    held to be avoided, rescinded, terminated, discharged, frustrated, invalid, unenforceable, illegal and/or otherwise of no effect for any
      reason.

    	17.6	
            Effect in relation to claims by and against non-parties

          

    	17.6.1	
            For the purpose of this clause “Foreign Proceedings” shall mean any Proceedings except proceedings brought or pursued in England arising out of or in connection with (i) or in any way related
              to any of the Security Documents or any assets subject thereto or (ii) any action of any kind whatsoever taken by the Lender pursuant thereto or which would, if brought by the Borrower against the Lender, have been required to be brought in
              the English courts;

          

    	17.6.2	
            the Borrower shall not bring or pursue any Foreign Proceedings against the Lender and the Borrower shall use its best endeavours to prevent persons not party to this Agreement from bringing or
              pursuing any Foreign Proceedings against the Lender;

          

    	17.6.3	
             If, for any reason whatsoever, any Security Party and/or any person connected howsoever with any Security Party (including but not limited to any shareholder of the Borrower) brings or
              pursues against the Lender any Foreign Proceedings, the Borrower shall indemnify the Lender on demand in respect of any and all claims, losses, damages, demands, causes of action, liabilities, costs and expenses (including, but not limited
              to, legal costs) of whatsoever nature howsoever arising from or in connection with such Foreign Proceedings which the Lender certifies as having been incurred by it;

          

    the Lender and the Borrower hereby agree and declare that the benefit of this clause 17 shall extend to and may be enforced by any officer,
      employee, agent or business associate of the Lender against whom the Borrower brings a claim in connection howsoever with any of the Security Documents or any assets subject thereto or any action of any kind whatsoever taken by, or on behalf of or
      for the purported benefit of the Lender pursuant thereto or which, if it were brought against the Lender, would fall within the material scope of clause 17.1. In those circumstances this clause 17 shall be read and construed as if references to the
      Lender were references to such officer, employee, agent or business associate, as the case may be.

    
      57

      
        

    

    Schedule 1

    Form of Drawdown Notice

    

    

    	
            To:

          	
            SinoPac Capital International (HK) Limited

              Suites 3306, 33/F., Tower 1, The Gateway, 25 Canton Road, Tsim Sha Tsui,

              Kowloon, Hong Kong

          

    

    

    

    

    [●] 2021

    

    

    Dear Sirs

    

    

    	
            Re:

          	
            Loan agreement dated                        2021 in respect of a loan of up to USD5,000,000 (the “Loan Agreement”) made between (1) Eirini Shipping Ltd as
              Borrower and (2) SinoPac Capital International (HK) Limited as Lender

          

    

    

    

    

    

    

    We refer to the Loan Agreement. Words and expressions whose meanings are defined therein shall have the same meanings when used herein.

    We hereby give you notice that we wish to draw the sum of USD[              ] on [date] 2021. The
      funds should be credited to the account of [              ] and numbered [              ] with [              ] of [              ].

    We confirm that:

    	(a)	
            no Default has occurred and is continuing;

          

    	(b)	
            the representations and warranties contained in clause 7 of the Loan Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such
              date;

          

    	(c)	
            the borrowing to be effected by the drawdown of the Loan will be within our corporate powers, has been validly authorised by appropriate corporate action and will not cause any limit on our
              borrowings (whether imposed by statute, regulation, agreement or otherwise howsoever) to be exceeded;

          

    	(d)	
            there has been no material adverse change in our financial position or in the consolidated financial position of the Borrower or the Corporate Guarantor from that described by us to the Lender
              in the negotiation of the Loan Agreement and/or in any documents or statements already delivered to the Lender in connection therewith;

          

    	(e)	
            there are no Required Authorisations; and

          

    	(f)	
            there has occurred nothing which would have a Material Adverse Effect.

          

    

    

    	
            By

          	 	 
	 	
            Authorised Signatory

          	 
	 	
            EIRINI SHIPPING LTD

          	 

    

    

    

    

    

    

    

    

    

    

    
      58

      
        

    

    Schedule 2

    Conditions precedent and subsequent

    Part 1

    Conditions precedent to the Drawdown Notice

    	1.	
            Security Parties’ documents

          

    	1.1	
            A copy of the Constitutional Documents of each Security Party.

          

    	1.2	
            A copy of a resolution of the board of directors of each Security Party (or any committee of such board empowered to approve and authorise the following matters):

          

    	

          	(i)	
            approving the terms of, and the transactions contemplated by, the Security Documents to which it is a party and resolving that it execute, deliver and perform such Security Documents;

          

    	

          	(ii)	
            authorising a specified person or persons to execute the Security Documents on its behalf; and

          

    	

          	(iii)	
            authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, the Drawdown Notices) to be signed and/or despatched by it
              under or in connection with the Security Documents.

          

    	1.3	
            If applicable, a copy of a resolution of the board of directors of the relevant company, establishing any committee referred to in paragraph 1.2 above and conferring authority on that
              committee.

          

    	1.4	
            A specimen of the signature of each person authorised by the resolution referred to in paragraph 1.2 above.

          

    	1.5	
            A copy of a resolution signed by all the holders of the issued shares in each Security Party (other than the Corporate Guarantor) approving the terms of, and the transactions contemplated by,
              the relevant Security Documents to which such Security Party is a party.

          

    	1.6	
            A certificate of each Security Party (signed by a director) confirming that borrowing or guaranteeing or securing, as appropriate, the Commitment would not cause any borrowing, guaranteeing or
              similar limit binding on such Security Party to be exceeded.

          

    	1.7	
            The original of any power of attorney under which any person is to execute any of the Security Documents on behalf of any Security Party.

          

    	1.8	
            A certificate of an authorised signatory of the relevant Security Party certifying that each copy document relating to it specified in this Part of this Schedule is correct, complete and in
              full force and effect and has not been amended or superseded as at a date no earlier than the date of this Agreement and that any resolutions or power of attorney relating to it have not been revoked or amended.

          

    	2.	
            Legal opinions

          

    
      59

      
        

    

    	2.1	
            A legal opinion addressed to the Lender as to English law, substantially in the form approved by the Lender prior to signing this Agreement.

          

    	2.2	
            A legal opinion of the legal advisers to the Lender in each jurisdiction (other than England) in which a Security Party is incorporated and/or which is or is to be the Flag State of the
              Vessel, each substantially in the form approved by the Lender prior to signing this Agreement.

          

    	3.	
            Other documents and evidence

          

    	3.1	
            Evidence that any process agent referred to in clause 18.2 or any equivalent provision of any other Security Document entered into on or before the Drawdown Date has accepted its appointment.

          

    	3.2	
            A copy of any other authorisation or other document, opinion or assurance which the Lender reasonably 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 Security Document or for the validity and enforceability of any Security Document.

          

    	3.3	
            A copy, certified by a director of the Borrower to be a true and complete copy, of the Original Financial Statements.

          

    	3.4	
            Evidence that the fees, commissions, costs and expenses then due from the Borrower pursuant to clause 5 (Fees and Expenses) have been paid or will be
              paid by the Drawdown Date.

          

    	4.	
            “Know your customer” information

          

    Such documentation and information as the Lender may reasonably request to comply with “know your customer” or similar identification
      procedures under all laws and regulations applicable to it.

    	5.	
            Security Documents

          

    	5.1	
            The Corporate Guarantee duly executed by the Corporate Guarantor in favour of the Lender.

          

    	5.2	
            The Share Security duly executed by the Shareholder together with all letters, transfers, certificates and other documents required to be delivered under the Share Security.

          

    	5.3	
            A Subordination Deed in respect of the Borrower duly executed by the Borrower and the Shareholder in favour of the Lender.

          

    	6.	
            Value of security Valuations obtained (not more than 3 months before the Drawdown Date) in accordance with clause 8.2.

          

    	7.	
            Capital injection

          

    Evidence of receipt by the Borrower of capital injection of minimum HKD1,000,000 or USD130,000 or other equivalent currencies which may be
      freely used for Borrower’s corporate/business purposes.

    
      60

      
        

    

    	8.	
            Related documents

          

    A Certified Copy of the Extended Employment Contract.

    
      61

      
        

    

    Part 2

    Conditions precedent to Drawdown of the Loan

    	1.	
            Corporate documents

          

    	1.1	
            A certificate of an authorised signatory of the Borrower certifying that eachcopy document relating to it specified in part 1 of this schedule remains correct, complete and in full force and
              effect and has not been amended or superseded as at a date no earlier than a date approved for this purpose and that any resolutions or power of attorney referred to in part 1 of this schedule in relation to it have not been revoked or
              amended.

          

    	1.2	
            A certificate of an authorised signatory of each other Security Party which is party to any of the Security Documents required to be executed at or before Drawdown Date certifying that each
              copy document relating to it specified in part 1 of this schedule remains correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than a date approved for this purpose and that any
              resolutions or power of attorney referred to in part I of this schedule in relation to it have not been revoked or amended.

          

    	1.3	
            A certificate of the Borrower (signed by a director) confirming that each condition specified in clause 9.3 is satisfied on the Drawdown Date.

          

    	2.	
            Security

          

    	2.1	
            The Mortgage duly executed by the Borrower.

          

    	2.2	
            The General Assignment duly executed by the Borrower.

          

    	2.3	
            The Charter Assignment duly executed by the Borrower.

          

    	2.4	
            Any Tripartite Deed (if applicable).

          

    	2.5	
            Any Insurance Assignment (if applicable).

          

    	2.6	
            The Manager's Undertaking pursuant to the Security Documents duly executed by the Manager.

          

    	2.7	
            Duly executed notices of assignment and (if available) acknowledgments of those notices as required by any of the above Security Documents.

          

    	3.	
            Registration of Vessel and Mortgage

          

    	3.1	
            Evidence that the Vessel is:

          

    	

          	(a)	
            legally and beneficially owned by the Borrower and registered in the name of the Borrower through the relevant Registry as a ship under the laws and flag of the relevant Flag State;

          

    	

          	(b)	
            operationally seaworthy and in every way fit for service;

          

    	

          	(c)	
            classed with the relevant Classification free of all requirements and outstanding recommendations of the relevant Classification Society affecting class;

          

    
      62

      
        

    

    	

          	(d)	
            insured in the manner required by the Security Documents; and

          

    	

          	(e)	
            free of any charter commitment which would require approval under the Security Documents.

          

    	3.2	
            Evidence that the Mortgage has been duly registered with the relevant Registry in the relevant Flag State.

          

    	3.3	
            Evidence that there are no Encumbrance of any kind created or permitted byany person on or in relation to the Vessel, other than the Mortgage.

          

    	4.	
            Insurance

          

    	4.1	
            In relation to the Ship's Insurances:

          

    	

          	(a)	
            If required, an opinion from insurance consultant appointed by the Lender;

          

    	

          	(b)	
            evidence that such Insurances have been placed; and

          

    	

          	(c)	
            evidence (including but not limited in the form of an email) from approved brokers, insurers and/or associations that they will issue letters of undertaking in favour of the Lender in an
              approved form in relation to the Insurances (including but not limited to insurances relating to fire and usual marine risks (including hull and machinery and excess risks), war risks (including acts of terrorism and piracy) and protection
              and indemnity risks) and will note the interest of the Lender as loss payee.

          

    	5.	
            ISM and ISPS Code

          

    	5.1	
            A copy of each of:

          

    	

          	(a)	
            the document of compliance issued in accordance with the ISM Code to the person who is the operator of the Vessel for the purposes of that code;

          

    	

          	(b)	
            the safety management certificate in respect of the Vessel issued in accordance with the ISM Code;

          

    	

          	(c)	
            the international ship security certificate in respect of the Vessel issued under the ISPS Code; and

          

    	

          	(d)	
            if so requested by the Lender, any other certificates issued under any applicable code required to be observed by the Vessel or in relation to its operation under any applicable law.

          

    	6.	
            Management agreement

          

    A copy of the management agreement between the Borrower and the Manager relating to the appointment of that Manager.

    	7.	
            Fees and expenses

          

    Evidence that the fees, commissions, costs and expenses then due from the Borrower pursuant to clause 5.1 have been paid or will be paid by
      the Drawdown Date.

    
      63

      
        

    

    	8.	
            Taxes

          

    If applicable, evidence that any withholding Tax has been paid or will be paid or that the relevant applications have been or will be
      lodged with the relevant tax authorities.

    
      64

      
        

    

    Part 3

    Conditions subsequent

    Conditions Subsequent to Drawdown 

    	1.	
            Acknowledgements of notices of assignment

          

    Acknowledgements of all notices of assignment and/or charge given pursuant to any Security Documents received by the Lender.

    	2.	
            Legal Opinions

          

    Such of the legal opinions specified in part 1 of this schedule 2 as have not already been provided to the Lender.

    	3.	
            Insurance

          

    Within one (1) month from the Drawdown Date of the Loan, copies of all policies and contracts of insurance (including hull and machinery
      insurances and all entries of the Vessel in a protection and indemnity or war risks association), and the original of the mortgagee’s interest insurance policies and contracts of insurance, of the Vessel.

    	4.	
            Fees and expenses

          

    Evidence that the fees, commissions, costs and expenses then due from the Borrower pursuant to clause 5.2 have been paid or will be paid
      with 14 days following receipt of the appropriate invoices / vouchers.

    
      65

      
        

    

    Execution Page

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

    THE BORROWER

    

    

    	
            SIGNED by

          	
            )

          	 	 	 
	
            attorney-in-fact for and on behalf of

          	
            )

          	 	 	 
	
            EIRINI SHIPPING LTD

          	
            )

          	 	 	 
	
            pursuant to a Power of Attorney

          	
            )

          	 	
            /s/ Stefania Karmiri

          	 
	
            dated 10 February 2021

          	
            )

          	 	
            Attorney-in-fact

          	 
	 	 	 	 	 

    

    

    THE LENDER

    

    

    

    

    	
            EXECUTED

          	 	 	 	 
	
            by: Lin, Chia-Heng, Director

          	
            )

          	 	 	 
	
            for and on behalf of

          	
            )

          	 	 	 
	
            SINOPAC CAPITAL INTERNATIONAL

          	
            )

          	 	 	 
	
            (HK) LIMITED

          	
            )

          	 	
            /s/ Lin, Chia-Heng

          	 
	 	
            )

          	 	
            Authorised Signatory

          	 
	 	 	 	 	 
	 	 	 	 	 
	
            in the presence of:

          	 	 	 	 
	 	 	 	 	 
	
            /s/ Carol Lin

          	 	 	 	 
	
            Name: Carol Lin

          	 	 	 	 
	
            Address:

          	 	 	 	 

    

    

    

    

    

    

    

    

  

   

  

  

  

  

  

  66

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