Document:

exv10w46

Exhibit 10.46

THIS COLLECTIVE AGREEMENT is made pursuant to the provisions of the Industrial Relations Act this
28th day of October 2010 between the AVAGO TECHNOLOGIES MANUFACTURING (SINGAPORE) PTE LTD. (Company
Registration Number 200512010Z) AND ITS AFFILIATES, incorporated in the Republic of Singapore and
having its place of business at No. 1 Yishun Avenue 7, Singapore 768923 (hereinafter referred to as
the “Company”) of the one part and the UNITED WORKERS OF ELECTRONICS & ELECTRICAL INDUSTRIES of 252
Tembeling Road, #03-07 Tembeling Centre, Singapore 423731, a trade union of employees registered
pursuant to the Trade Unions Act (hereinafter referred to as the “Union”) of the other part.

NOW IT IS HEREBY AGREED AND DECLARED between the parties hereto as follows:

CLAUSE 1 TITLE

	 	 	This Agreement shall be known as the “AVAGO TECHNOLOGIES SINGAPORE EMPLOYEES’ AGREEMENT OF
2010”.

CLAUSE 2 SCOPE

	 	 	This Agreement shall cover all locally engaged, confirmed, full-time employees of the
Company in Singapore with the exception of staff holding -

	 	(a)	 	Managerial, executive, professional (e.g. engineers, accountants),
supervisory positions.

CLAUSE 3 DURATION OF AGREEMENT

	 	(1)	 	This Agreement takes effect on 1st July 2010 and shall remain in force for a
period of 3 years until 30th June 2013.

	 	 	 
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	 	(2)	 	During the currency of this Agreement, neither the Company nor the Union
shall seek to vary, modify or annul any of its terms in any way whatsoever, save as is
provided herein or by operation of law.

	 	(3)	 	Negotiations for a new collective agreement may commence three months before
the expiry of this Agreement.

CLAUSE 4 RECOGNITION

	 	(1)	 	The Company recognises the Union as the sole collective negotiating body in
respect of all terms and conditions of service of the employees coming within the
scope of this Agreement.

	 	(2)	 	The Union recognises the rights of the Company to control, operate and manage
its business in all respects.

	 	(3)	 	The Union shall use its best endeavours to see that all its members loyally
co-operate in working for the advancement of the Company’s interest and business.

CLAUSE 5 NON-UNION MEMBERS

	 	 	Employees belonging to levels within the scope of this Agreement, who are not members of
the Union shall not receive benefits more favourable than those conferred on the Union
members under this Agreement.

CLAUSE 6 GRIEVANCE PROCEDURE

	 	(1)	 	Recognising the value and importance of full discussions in clearing up
misunderstanding and preserving harmonious relations, every reasonable effort shall be
made by both the Union and the Company to quickly dispose of any grievances from
employees at the earliest possible stage.

	 	(2)	 	In line with the approach outlined in sub-clause (1) of this clause, the
following procedure shall be adhered to in the handling of grievances:

	 	 	 
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	 	(a)	 	Step One

	 	 	 	An employee having a grievance may, within three working days of its arising,
bring it to the attention of the employee’s immediate supervisor who shall
make a decision within three working days after it has been brought to the
supervisor’s attention.

	 	(b)	 	Step Two

	 	 	 	If the employee concerned is dissatisfied with the decision of the employee’s
supervisor, or if the grievance is against the supervisor personally, then
the employee may within three working days of the supervisor’s decision bring
the employee’s grievance to the attention of the Department Manager who shall
make a decision within three working days after it has been brought to the
Department Manager’s attention.

	 	(c)	 	Step Three

	 	 	 	If the employee concerned is dissatisfied with the decision of the Department
Manager, the employee may refer the matter to the Union branch committee,
which may present the matter within three working days after it has been
brought to the Union branch committee’s attention to the Human Resources
Manager, who shall make a decision within three working days after it has
been brought to the Human Resources Manager’s attention.

	 	(d)	 	Step Four

	 	 	 	If the Union branch committee is dissatisfied with the decision of the Human
Resources Manager, then the Union may present the matter to the Division VP
within three working days. The decision of the Division VP shall then be
given to the Union within three working days after the matter has been
brought to his or her attention (or at such

	 	 	 
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	 	 	 	later date as may be mutually agreed) of the grievance being discussed.

	 	(3)	 	The employee may at the employee’s option be accompanied by a representative
of the Union branch committee at any stage of the foregoing grievance procedure.

	 	(4)	 	In the event of there being no settlement at Step Four, the matter shall be
referred to the Ministry of Manpower for conciliation. If the matter is still not
settled, the provisions of clause 7 of this Agreement shall be invoked.

CLAUSE 7 REFEREE

	 	 	Any dispute between the parties to this Agreement while it is in force and arising out of
its operation shall be referred by either party to the President of the Industrial
Arbitration Court who shall have the discretion to select a referee appointed in accordance
with section 43 of the Industrial Relations Act to determine the dispute.

CLAUSE 8 PROBATION

	 	(1)	 	A newly engaged employee shall serve a probationary period of three months
subject to, if necessary, a further three months’ extension, in which case the
employee shall be so informed in writing including the reason therefor, before the
expiration of the first three months. Notice of termination shall be in accordance
with the terms and conditions of employment.

	 	(2)	 	On completion of the probationary period, an employee shall be deemed to have
been confirmed in the Company’s permanent establishment from the date of first
employment unless the employee’s service is terminated by the Company.

CLAUSE 9 PROMOTION

	 	(1)	 	An employee is deemed promoted when the employee is moved from the current
job to another job with a higher salary mid point.

	 	 	 
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	 	(2)	 	In the case of promotion at other than a normal incremental date, the
employee’s base pay shall be increased to the minimum salary of the new job or by 8%
of the mid point of the employee’s last job, whichever is greater. The employee’s
normal incremental date shall not be changed.
	 
	 	(3)	 	If the promotional date coincides with the normal incremental date, the
promotion increases shall be granted plus the normal increment in the new job.

CLAUSE 10 WORKING HOURS

	 	 	The working hours for factory personnel shall be one of the following:

	 	(a)	 	8-Hour Shift / Normal Shift
	 
	 	 	 	Monday — Friday
	 
	 	 	 	1st Shift : 7.00 am  — 3.30 pm
	 
	 	(b)	 	12-Hour Shift
	 
	 	 	 	Day : 7.00 am — 7.00 pm
	 
	 	 	 	Night: 7.00 pm — 7.00 am

CLAUSE 11 WORK ON REST DAY AND PUBLIC HOLIDAY

	 	(1)	 	Every employee shall have one rest day per week, which shall normally be on
Sunday. If this is not on Sunday, the employee shall be notified accordingly.
	 
	 	(2)	 	If and when an employee is required to work on the employee’s rest day or any
public holiday, the employee shall be paid in accordance with the Employment Act.

CLAUSE 12 RETIREMENT AND RE-EMPLOYMENT OF OLDER EMPLOYEES

	 	(1)	 	The retirement age for all employees shall be in accordance with the
prevailing Retirement Age Act.

	 	(2)	 	The Company shall adopt the Tripartite Guidelines on the Re-employment of
Older Employees.

	 	 	 
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	 	(3)	 	In the event a suitable job is not available, company will provide employment
assistance to the staff as follows:

	 	(a)	 	A one-off Employment Assistance Payment (EAP) equivalent to a
minimum sum of $4,500 or 3 months’ salary capped at $10,000, whichever is
greater.
	 
	 	(b)	 	Assist staff with employment assistance with a job placement
agency.

CLAUSE 13 RETRENCHMENT

	 	(1)	 	In the event of redundancy arising, the Company shall inform the Union in
writing of impending retrenchment at least one month before retrenchment notices are
given to the affected employees.

	 	(2)	 	The notice of termination of service to any employee so affected shall not be
less than two months or two months’ pay in lieu thereof. The combination of notice
and pay in lieu of notice shall be two months.

	 	(3)	 	The compensation payable to retrenched employees shall be as follows:

	 	(a)	 	One month’s salary for each completed year of service and
pro-ration of each completed month for an incomplete year of service, capped at
25 years of service.
	 
	 	(b)	 	Pro-rated unconsumed annual leave.
	 
	 	(c)	 	Pro-rated annual wage supplement.
	 
	 	(d)	 	Payment in lieu of maternity leave if employee is certified
pregnant on date of retrenchment.

CLAUSE 14 SALARY

	 	(1)	 	Every employee shall be paid salary in accordance with the salary ranges set
out in Appendix I to this Agreement.

	 	(2)	 	The annual incremental date shall be 1st July of each calendar year.

	 	 	 
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	 	(3)	 	The Company and the Union shall negotiate annually on the quantum of annual
increment payable to employees covered by this Agreement. The quantum of annual
increment payable to employees shall depend on the employee’s performance rank. Such
negotiation shall commence at the beginning of April of each year.

CLAUSE 15 ANNUAL VARIABLE COMPONENT

	 	 	Annual Variable Component (AVC) consists of the Annual Wage Supplement, the Annual Variable
Payment and the Avago Performance Bonus Programme.

	 	(a)	 	Annual Wage Supplement

	 	(i)	 	The Company shall pay an annual wage supplement equivalent to
one month’s base salary to each eligible employee.
	 
	 	(ii)	 	New hires who have not completed 12 months’ service as at 31st
December each year shall be paid an annual wage supplement on a pro—rated
basis for the number of completed months of service. Fifteen or more days
shall be treated as a completed month of service.
	 
	 	(iii)	 	The annual wage supplement shall be based on base salary paid
as of 31st December of each year. Employees not on the payroll as of 31st
December shall not be eligible to receive the annual wage supplement.

	 	(b)	 	Annual Variable Payment

	 	(i)	 	The Company and the Union shall negotiate annually on the
percentage of annual variable payment payable to eligible employees covered by
this Agreement. Such negotiation shall commence in April of each year.
	 
	 	(ii)	 	The annual variable payment quantum shall be paid out in two
equal payments in a year, i.e. January and July of each year.

	 	 	 
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	 	(iii)	 	The amount that each eligible employee gets shall depend on
the employee’s performance rank.
	 
	 	(iv)	 	Eligible employees are defined as employees hired on or before
30th June of each year who are active and confirmed on the Company’s payroll at
the time of payment.
	 
	 	(v)	 	In the event of unfavourable business and economic conditions,
the Company and the Union shall review the annual variable payment payout.

	 	(c)	 	Avago Performance Bonus Programme

	 	 	The Avago Performance Bonus Programme is a global variable payment programme.
Employees shall be paid the Avago Performance Bonus according to the design of this
programme.

CLAUSE 16 SHIFT PREMIUM

	 	(1)	 	12-hour day shift premium shall be $8.00 per shift worked.

	 	(2)	 	12-hour night shift premium inclusive of meal allowance shall be $20.00 per
shift worked.

CLAUSE 17 JOB ALLOWANCE

	 	(1)	 	An employee who spends at least 50% of the employee’s actual workdays in a
month operating a microscope or molding machine shall be entitled to an allowance of
$30.00 per month.

	 	(2)	 	An employee who is employed in the Fab Operation shall be entitled to an
allowance of $100.00 per month.

CLAUSE 18 QUALITY WORK LIFE INCENTIVE PROGRAMME

	 	(1)	 	The Quality Work Life Incentive is to reward employees who have taken extra
efforts in maintaining their health as well as in coming to work regularly during the
calendar year.

	 	(2)	 	A monthly incentive of S$25 shall be paid at the end of each month to
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	 	 	 	the Programme. The maximum reward for the Programme shall be S$300 per annum.

	 	(3)	 	When an employee fails to show up for work and has a sick leave certificate
from any Government Polyclinics, Company Appointed Clinics, Government or restructured
hospital; is absent or on approved unpaid leave, the Company shall deduct $10 per day
from the incentive for each day lost from the Programme during the period of review.

	 	(4)	 	As this is an annual Programme but paid out on a monthly basis, such days
lost from the Programme shall be cumulative for the period of review. However, the
following shall not be considered for cumulative deductions for the purposes of this
incentive:

	 	(a)	 	Contagious and communicable virus/diseases like chicken pox,
measles, conjunctivitis, small pox, mumps and HFM disease;
	 
	 	(b)	 	Approved unpaid leave for religious pilgrimage and maternity
leave;
	 
	 	(c)	 	Medical leave as a result of industrial accidents covered under
Work Injury Compensation Act and dental surgery.

CLAUSE 19 SICK LEAVE

	 	(1)	 	Every employee shall be entitled to paid sick leave of 14 days in each year
if no hospitalisation is necessary.
	 
	 	(2)	 	Every employee shall be entitled to hospitalisation leave up to 60 days in
each year less the amount of sick leave taken.
	 
	 	(3)	 	Paid sick leave shall only be granted on the certification of the Company
appointed doctors or a Government medical officer.
	 
	 	(4)	 	The Company may give sympathetic consideration to the granting of sick leave
in excess of the 14 days.
	 
	 	(5)	 	An employee away on certified sick leave shall inform the employee’s
supervisor, or department manager of the employee’s absence within two days. An
employee who is

	 	 	 
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	 	 	 	absent from work for a period of more than two days without satisfactory explanation
shall be deemed to be absent without permission.
	 
	 	(6)	 	Employees on paid sick leave and hospitalisation leave shall be entitled to
shift allowance.

CLAUSE 20 LONG TERM SICK LEAVE

	 	(1)	 	In the event of an employee contracting any major illness (e.g. cancer or
kidney failure) or tuberculosis which renders him unfit for work, upon management’s
discretion and discussion with Union, the Company shall grant sick leave as follows:

	 	(a)	 	First six months  — full pay

	 	(b)	 	Next six months  — half pay
	 	(c)	 	A further six months  — no pay

	 	 	 	The duration of the paid sick leave shall depend on the condition of the illness of
the employee.

	 	(2)	 	An employee shall forfeit the benefits in sub-clause (1) above in the event
of the employee’s failing or refusing to undergo treatment or carry out any
instructions that may be prescribed from time to time by the doctor in charge of the
employee’s case.

CLAUSE 21 ANNUAL LEAVE

	 	(1)	 	Every employee on all shifts except 12-hour shift shall be granted paid
annual leave as follows:

	 	(a)	 	For the 1st year of service
	 : 10 working days per year
	 	(b)	 	2nd year of service
	: 11 working days per year
	 	(c)	 	3rd year of service
	: 12 working days per year
	 	(d)	 	4th year of service
	: 13 working days per year
	 	(e)	 	5th to 6th year of service
	: 14 working days per year
	 	(f)	 	7th year of service
	: 15 working days per year
	 	(g)	 	8th to 11th year of service
	: 16 working days per year
	 	(h)	 	12th year of service 	: 17 working days per year

	 	 	 
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	 	(i)	 	13th year of service	: 18 working days per year
	 	(j)	 	14th and 15th year of service
	: 19 working days per year
	 	(k)	 	16th year of service and above 	: 20 working days per year

	 	(2)	 	Every employee on 12-hour shift shall be granted paid annual leave as
follows:

	 	(a)	 	For the first 2 years of service
	: 8 working days per year
	 	(b)	 	3rd year of service
	: 9 working days per year
	 	(c)	 	4th year of service
	: 10 working days per year
	 	(d)	 	5th to 6th year of service
	: 12 working days per year
	 	(e)	 	7th year of service
	: 13 working days per year
	 	(f)	 	8th to 11th year of service
	: 14 working days per year
	 	(g)	 	12th year of service
	: 15 working days per year
	 	(h)	 	13th year of service
	: 16 working days per year
	 	(i)	 	14th year of service and above 	: 17 working days per year

	 	(3)	 	An employee shall be entitled to proportionate annual leave in respect of an
incomplete year of service.
	 
	 	(4)	 	From the 2nd year of service, eligibility for annual leave shall commence in
the calendar year in which the anniversary falls.
	 
	 	(5)	 	If an employee terminates the employee’s service, or has the employee’s
service terminated before the employee has taken the employee’s annual leave, the
Company shall pay for leave not taken as on the day of the termination of service.
	 
	 	(6)	 	Application for annual leave shall be made two working days in advance.

CLAUSE 22 MATERNITY LEAVE

	 	(1)	 	A female employee who has completed 90 days of service in the company shall
be entitled to paid maternity leave of 2 months plus 8 weeks, subject to the
conditions stipulated in the Children Development Co-Savings Act.

	 	(2)	 	A female employee who does not qualify under sub-clause (1) above but who has
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	 	 	 	shall be entitled to 2 months of maternity leave on full pay, if she has fewer than
2 living children, and another 4 weeks of maternity leave without pay, subject to
the conditions stipulated in the Employment Act.

	 	(3)	 	An application for maternity leave shall be supported by a certificate from a
registered medical practitioner or a Government medical officer.

	 	(4)	 	Maternity leave shall, as far as possible, be taken one month each before and
after confinement.

	 	(5)	 	Any absence from work due to miscarriage or for any other illness arising out
of and in the course of pregnancy during the first seven months of such pregnancy
shall not be considered as maternity leave, but shall be considered as normal sick
leave under clause 19 of this Agreement.

	 	(6)	 	If at the expiry of the maternity leave, the employee is medically certified
as unfit for duty her absence shall be treated as normal sick leave in accordance with
clause 19 of this Agreement.

CLAUSE 23 PATERNITY LEAVE

	 	 	A confirmed male employee shall be entitled to two days’ paid paternity leave each on the
birth of the employee’s first four surviving children.

CLAUSE 24 MARRIAGE LEAVE

	 	 	The Company shall grant five working days’ leave with full pay only on the occasion of the
first marriage, and a properly authenticated certificate of such marriage shall be provided
by the employee.

CLAUSE 25 COMPASSIONATE LEAVE

	 	(1)	 	An employee shall be granted paid compassionate leave of three working days
at any one time in the event of death of the

	 	 	 
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	 	 	 	employee’s spouse, parent, child, brother, sister, parent-in-law and grandparent.

	 	(2)	(a) 	In the event of serious illness of the employee’s spouse, parent, child,
brother, sister, parent-in-law and grandparent, compassionate leave shall be given
sympathetic consideration without restriction.

	 	  	 (b)	 Serious illness shall be defined as illness requiring the
patient to be on the dangerously ill list of any licensed hospital.

	 	(3)	 	An employee requesting compassionate leave may be required by the Company to
produce evidence that the leave is needed on bona fide grounds. If it is subsequently
found that such leave has been obtained by misrepresentation of facts, the employee
may render himself liable to disciplinary action by the Company.

CLAUSE 26 MEDICAL AND HOSPITALISATION BENEFITS

	 	(1)	 	Medical Benefits

	 	(a)	 	Every employee shall enjoy the privilege of free medical
attention, treatment and medicine from the Company appointed doctors or a
Government medical officer.
	 
	 	(b)	 	If an employee is not satisfied with the Company appointed
doctor’s opinion, the employee may see the nearest Government medical officer.
If the employee is certified sick by the Government medical officer, the
Company shall reimburse the medical expenses and pay for the sick leave.
	 
	 	(c)	 	If the Government medical officer certifies the employee fit
for work, the employee shall not be entitled to pay for time away from work or
to reimbursement of expenses.
	 
	 	(d)	 	If an employee falls sick at home, the employee shall seek
treatment from the Company appointed doctors or a Government medical officer.
If the illness is an emergency, any registered medical practitioner may be
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	 	 	 	this case, the Company shall reimburse the medical expenses and grant paid
sick leave (if applicable) to the employee only if the case has been
certified as an emergency by the registered medical practitioner.

	 	(2)	 	Hospitalisation Benefits

	 	 	Every employee shall be covered by the Company’s Group Hospitalisation and Surgical
Insurance Plan. Subject to the provisions for room and board benefit under this
plan, the normal ward assigned shall be “B1” ward accommodation in the event of the
employee being hospitalised. A copy of the Company’s Group Hospitalisation and
Surgical Insurance Plan shall be extended to all employees in the Company. Appendix
II shows the schedule for this plan.

CLAUSE 27 FLEXIBLE BENEFITS

	 	(1)	 	All active permanent full-time employees shall be eligible for flexible
benefits up to a maximum amount of $420.00 per calendar year with effect from 1st
January 2011. Any unutilised amount in a calendar year shall be forfeited.

	 	(2)	 	The flexible benefit claims may be utilised to cover benefits stipulated
under the Flexible Benefits policy.

CLAUSE 28 DENTAL TREATMENT

	 	(1)	 	A confirmed employee may claim reimbursement from the flexible benefit claim
for the cost of dental examination, scaling, x-ray, extraction and amalgam fillings.
Such reimbursement shall be made only against a valid receipt from a registered dental
practitioner.

	 	(2)	 	An employee’s absence caused through dental illness shall on production of a
medical certificate issued by a registered dental practitioner be treated as normal
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CLAUSE 29 BASIC LIFE INSURANCE

	 	 	The Company shall insure every employee for an amount equivalent to 18 times of the
employee’s last drawn monthly base salary. Employees may, if they so request, be allowed
to take supplementary life insurance policy for additional sums in accordance with the
Company’s Supplementary Life Policy. The premium required for such supplementary insurance
cover shall be shared equally by the Company and the employee concerned.

CLAUSE 30 WORK INJURY COMPENSATION

	 	(1)	 	Every employee shall be insured in accordance with the provisions of the Work
Injury Compensation Act.

	 	(2)	 	For injuries covered under the Work Injury Compensation Act, the Company
shall keep the employee on full pay up to 14 days outpatient medical leave, and full
pay up to 60 days hospitalization. Once this limit is reached, two-thirds of salary
is payable up to a maximum period of one year following the date of the accident.

CLAUSE 31 SAVINGS PLAN

	 	(1)	 	A confirmed employee may authorise the Company to open a Savings Account
under the employee’s name with any bank in Singapore.

	 	(2)	 	The entry dates of the Savings Plan are 1st January and 1st July of each
year.

	 	(3)	 	The employee may contribute up to a maximum of 10% of the employee’s monthly
base salary to the Savings Plan. Upon receipt of the employee’s authorisation, the
Company shall deduct the authorised amount, starting from entry dates per sub-clause
(2).

	 	(4)	 	For every dollar so deducted, the Company shall make a contribution of 15% of
that amount.

	 	 	 
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	 	(5)	 	The employee’s contributions are to be held in the Company’s books for six
full months. At the end of each six-month contribution period, the employee’s
contributions shall be credited to the employee’s bank account together with the
Company’s contribution, and the accrued interest of both contributions.
	 
	 	(6)	 	In the event an employee withdraws the employee’s share of contributions
before they have been held for six full months, the employee shall be entitled to
receive accrued interest on the employee’s contributions but the employee shall not be
entitled to receive the Company’s share of contribution or accrued interest on the
Company’s contribution.
	 
	 	(7)	 	In the event of withdrawal arising from serious need due to an emergency, an
employee may apply to the Human Resources Manager for compassionate consideration to
be entitled to receive the Company’s share of contribution plus accrued interest.

CLAUSE 32 SAFETY COMMITTEE

	 	 	The Company shall establish a safety committee in accordance with the Workplace Safety &
Health Act, and shall invite Union representatives to sit on the committee.

CLAUSE 33 NTUC FAIRPRICE COOPERATIVE SHARES

	 	 	In the event of an employee purchasing NTUC Fairprice Cooperative shares, the Company shall
make an initial payment to NTUC Fairprice of $10.00 for the accounting of the employee.

CLAUSE 34 EDUCATION ASSISTANCE

	 	 	The Company’s current Education Assistance Plan shall be continued.

	 	 	 
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CLAUSE 35 UNION’S DAY

	 	 	At Management’s discretion, the Company shall provide one day’s special leave to all Union
Branch officials on the Union’s Anniversary Day which is decided by the Union’s Executive
Council and upon application by the Union.

CLAUSE 36 EQUAL REMUNERATION

	 	(1)	 	Both parties accept that the principle of equal remuneration for men and
women for work of equal value shall apply. “Remuneration” means salary (as defined in
the Employment Act) and any other consideration, whether in cash or in kind, which the
employee receives directly or indirectly, in respect of employment.

	 	(2)	 	The employer shall ensure the principles of equal remuneration for men and
women for work of equal value are adhered to. Regardless of their gender, employees
will be paid and rewarded based on the value of job, performance and contribution.

	 	 	 
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IN WITNESS WHEREOF the parties hereto, have hereunto set their hands the day and year first above
written.

Signed for and on behalf of

	 	 	 

	AVAGO TECHNOLOGIES 

MANUFACTURING

(SINGAPORE) 

PTE. LTD.

	 	UNITED WORKERS OF

ELECTRONICS & ELECTRICAL

INDUSTRIES
	 
	 	 
	 
	 	 
	/s/ OOI BOON CHYE

	 	/s/ HALIMAH YACOB
	 

	 	 
	OOI BOON CHYE

	 	HALIMAH YACOB
	Senior VP, Global Operations

	 	Executive Secretary
	 
	 	 
	 
	 	 
	/s/ THERESA LIM

	 	/s/ CYRILLE TAN
	 

	 	 
	THERESA LIM

HR Director

	 	CYRILLE TAN

General Secretary
	 
	 	 
	 
	 	 
	 

	 	/s/ BELINDA TENG BEE HONG
 

	 

	 	BELINDA TENG BEE HONG
	 

	 	Branch Chairman
	 
	 	 
	 
	 	 
	 

	 	/s/ PAULINE TONG
 

	 

	 	PAULINE TONG
	 

	 	Branch Secretary
	 
	 	 
	 
	 	 
	 

	 	/s/ MAZNAH BINTE AHMAD
 

	 

	 	MAZNAH BINTE AHMAD
	 

	 	Branch Treasurer
	 
	 	 
	 
	 	 
	 

	 	In the presence of:
	 
	 	 
	 
	 	 
	 

	 	/s/ NG YANLI
 

	 

	 	NG YANLI
	 

	 	Industrial Relations Officer

	 	 	 
	CA NO 315/2010

Avago Technologies Singapore Employees’ Agreement of 2010

(ASCA)B(10/12/2010)
	 	Page 18 of 21

 

 

Appendix I

(Clause 14)

AVAGO TECHNOLOGIES SINGAPORE EMPLOYEES’ AGREEMENT OF 2010

Materials

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	New Global	 	Monthly	 	Monthly	 	Monthly
	2007 CA Job Title	 	2010 CA Job Title	 	Job Level	 	Job Family	 	Grade	 	Min (SGD)	 	Mid (SGD)	 	Max (SGD)
	Mat’l Handler
	 	Mfg Ops Support Mat’l Handling 1	 	ICA1-Entry	 	Operations Support Mat’l Handling	 	G10C	 	900	 	1,200	 	1,500
	Storekeeper A
	 	Mfg Ops Support Mat’l Handling 2	 	ICA2-Intermediate	 	Operations Support Mat’l Handling	 	G11C	 	985	 	1,308	 	1,638
	Storekeeper B
	 	Mfg Ops Support  Mat’l Handling 3	 	ICA3-Career	 	Operations Support Mat’l Handling	 	G12C	 	1,154	 	1,538	 	1,923
	Storekeeper C
	 	Mfg Ops Support  Mat’l Handling 4	 	ICA4-Expert	 	Operations Support Mat’l Handling	 	G13C	 	1,331	 	1,769	 	2,215

Mfg Operations Support — Process/Product

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	New Global	 	Monthly	 	Monthly	 	Monthly
	2007 CA Job Title	 	2010 CA Job Title	 	Job Level	 	Job Family	 	Grade	 	Min (SGD)	 	Mid (SGD)	 	Max (SGD)
	Operator
	 	Mfg Ops Support Proc/Prod 1	 	ICA1-Entry	 	Operations Support Proc/Prod	 	G10B	 	750	 	1,000	 	1,250
	QA Inspector
	 	Mfg Ops Support Proc/Prod 2	 	ICA2-Intermediate	 	Operations Support Proc/Prod	 	G11B	 	900	 	1,200	 	1,500
	Technical Operator A
	 	Mfg Ops Support Proc/Prod 3	 	ICA3-Career	 	Operations Support Proc/Prod	 	G12B	 	985	 	1,308	 	1,638
	Technical Operator B
	 	Mfg Ops Support Proc/Prod 4	 	ICA4-Expert	 	Operations Support Proc/Prod	 	G13B	 	1,154	 	1,538	 	1,923

Wafer Fabrication — Ops Support

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	New Global	 	Monthly	 	Monthly	 	Monthly
	2007 CA Job Title	 	2010 CA Job Title	 	Job Level	 	Job Family	 	Grade	 	Min (SGD)	 	Mid (SGD)	 	Max (SGD)
	Fab Assistant A
	 	Mfg Ops Support Fab 1	 	ICA1-Entry	 	Operations Support Fabrication	 	G10C	 	900	 	1,200	 	1,500
	N.A
	 	Mfg Ops Support Fab 2	 	ICA2-Intermediate	 	Operations Support Fabrication	 	G11C	 	985	 	1,308	 	1,638
	Fab Assistant B
	 	Mfg Ops Support Fab 3	 	ICA3-Career	 	Operations Support Fabrication	 	G12C	 	1,154	 	1,538	 	1,923
	Fab Specialist
	 	Mfg Ops Support Fab 4	 	ICA4-Expert	 	Operations Support Fabrication	 	G13C	 	1,331	 	1,769	 	2,215

Wafer Fabrication — Mfg Technician

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	New Global	 	Monthly	 	Monthly	 	Monthly
	2007 CA Job Title	 	2010 CA Job Title	 	Job Level	 	Job Family	 	Grade	 	Min (SGD)	 	Mid (SGD)	 	Max (SGD)
	N.A
	 	Mfg Technician Fab 1	 	ICA1-Entry	 	Mfg Technician Fabrication	 	G12C	 	1,154	 	1,538	 	1,923
	N.A
	 	Mfg Technician Fab 2	 	ICA2-Intermediate	 	Mfg Technician Fabrication	 	G13C	 	1,331	 	1,769	 	2,215
	N.A
	 	Mfg Technician Fab 3	 	ICA3-Career	 	Mfg Technician Fabrication	 	G14C	 	1,500	 	2,000	 	2,500

	 	 	 
	CA NO 315/2010

Avago Technologies Singapore Employees’ Agreement of 2010

(ASCA)B(10/12/2010)
	 	Page 19 of 21

 

 

Appendix I

(Cont’d)

Administrative

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	New Global	 	Monthly	 	Monthly	 	Monthly
	2007 CA Job Title	 	2010 CA Job Title	 	Job Level	 	Job Family	 	Grade	 	Min (SGD)	 	Mid (SGD)	 	Max (SGD)
	Admin Assistant A
	 	Prod Planning Support 1	 	ICA1-Entry	 	Planning Support	 	G11C	 	985	 	1,308	 	1,638
	N.A
	 	Prod Planning Support 2	 	ICA2-Intermediate	 	Planning Support	 	G12C	 	1,154	 	1,538	 	1,923
	Admin Assistant B
	 	Prod Planning Support 3	 	ICA3-Career	 	Planning Support	 	G13C	 	1,331	 	1,769	 	2,215
	Admin Assistant C
	 	Prod Planning Support 4	 	ICA4-Expert	 	Planning Support	 	G14C	 	1,500	 	2,000	 	2,500

 

Notes:

			
	(1)	 	Min refers to Minimum of Salary Range
	 
	(2)	 	Mid refers to Mid point which is benchmarked against market base salary
	 
	(3)	 	Max refers to Maximum of Salary Range
	 
	(4)	 	The above salary ranges shall be reviewed annually to reflect market competitiveness

	 	 	 
	CA NO 315/2010

Avago Technologies Singapore Employees’ Agreement of 2010

(ASCA)B(10/12/2010)
	 	Page 20 of 21

 

 

Appendix II

(Clause 26)

AVAGO TECHNOLOGIES SINGAPORE EMPLOYEES’ AGREEMENT OF 2010

GROUP HOSPITALISATION AND SURGICAL INSURANCE PLAN

Maximum Per Policy Year (S$)

	 	 	 	 	 	 	 
	 	 	Schedule of Benefits	 	S$
	1

	 	Daily Room and Board

(daily maximum up to 120 days)
	 	 	200	*
	 
	 	 	 	 	 	 
	2

	 	Intensive Care Unit (up to 30 days)
	 	600 / day	*
	 
	 	 	 	 	 	 
	3

	 	Hospital Miscellaneous Services
	 	 	6000	*
	 
	 	 	 	 	 	 
	4

	 	Surgical Benefit

Subject to Schedule
	 	 	7000	*
	 
	 	 	 	 	 	 
	5

	 	Daily In-Hospital Doctor’s Visit

(daily maximum up to 120 days)
	 	 	60*	 
	 
	 	 	 	 	 	 
	6

	 	Diagnostic X-ray and Laboratory Fees

(maximum per disability)
	 	 	400	 
	 
	 	 	 	 	 	 
	7

	 	Specialist Consultation and Treatment

(maximum per disability per policy year)
	 	 	600	 
	 
	 	 	 	 	 	 
	8

	 	Emergency Outpatient Treatment
	 	 	1000	 
	 
	 	 	 	 	 	 
	9

	 	Post Medical Hospitalisation Follow-up
	 	 	1000	*
	 
	 	 	 	 	 	 
	10

	 	Death Benefit
	 	 	3000	 

 

			
	*	 	For items 1-5 and item 9, the coverage is S$15,000 per policy year subject to 4 bedded
Govt. Ward.

	 	 	 
	CA NO 315/2010

Avago Technologies Singapore Employees’ Agreement of 2010

(ASCA)B(10/12/2010)
	 	Page 21 of 21exv10w1

Exhibit 10.1

Private and Confidential

DATED 6 December 2010

RHODES SHIPPING CORPORATION

and

CRETE SHIPPING CORPORATION (1)

EFG EUROBANK ERGASIAS S.A. (2)

 

FACILITY AGREEMENT

in respect of a loan of up to

USD52,000,000 in two tranches

 

PIRAEUS

 

 

Index

	 	 	 	 	 
	Clause	 	Page	 
	1 Purpose and definitions
	 	 	3	 
	 
	 	 	 	 
	2 The Bank’s Commitment, Advance and Use of Proceeds
	 	 	15	 
	 
	 	 	 	 
	3 Interest and Interest Periods
	 	 	16	 
	 
	 	 	 	 
	4 Repayment and prepayment
	 	 	18	 
	 
	 	 	 	 
	5 Commitment commission, fees and expenses
	 	 	20	 
	 
	 	 	 	 
	6 Payments and taxes; Accounts and calculations
	 	 	21	 
	 
	 	 	 	 
	7 Representations and warranties
	 	 	23	 
	 
	 	 	 	 
	8 Undertakings
	 	 	28	 
	 
	 	 	 	 
	9 Conditions
	 	 	35	 
	 
	 	 	 	 
	10 Events of Default
	 	 	36	 
	 
	 	 	 	 
	11 Indemnities
	 	 	40	 
	 
	 	 	 	 
	12 Unlawfulness and increased costs mitigation
	 	 	41	 
	 
	 	 	 	 
	13 Security, set-off and miscellaneous
	 	 	42	 
	 
	 	 	 	 
	14 Accounts
	 	 	44	 
	 
	 	 	 	 
	15 Assignment, transfer and lending office
	 	 	45	 
	 
	 	 	 	 
	16 Notices
	 	 	47	 
	 
	 	 	 	 
	17 Borrowers’ obligations
	 	 	47	 
	 
	 	 	 	 
	18 Governing law
	 	 	49	 
	 
	 	 	 	 
	19 Jurisdiction
	 	 	49	 
	 
	 	 	 	 
	Schedule 1 Form of Drawdown Notice
	 	 	 	 
	 
	 	 	 	 
	Schedule 2 Conditions precedent
	 	 	 	 
	 
	 	 	 	 
	Schedule 3 Form of Compliance Certificate
	 	 	 	 
	 
	 	 	 	 
	Schedule 4 Vessel details
	 	 	 	 

2

 

THIS AGREEMENT is dated 6 December 2010 and made BETWEEN:

	(1)	 	RHODES SHIPPING CORPORATION and CRETE SHIPPING CORPORATION as Borrowers; and
	 
	(2)	 	EFG EUROBANK ERGASIAS S.A. as Bank.

IT IS AGREED as follows:

	1	 	PURPOSE AND DEFINITIONS
	 
	1.1	 	Purpose
	 
	 	 	This Agreement sets out the terms and conditions upon which the Bank agrees to make
available to the Borrowers a facility of up to USD52,000,000 in 2 Tranches of up to
USD26,000,000 each (each Tranche to be drawn in up to 5 Advances), for the purpose of
part-financing the purchase and construction price of two double hull product tankers which
are to be constructed by the Builder for, and purchased by, the Borrowers.

	1.2	 	Definitions
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	 	 	“Advance” means the principal amount of each drawing in respect of the Loan to be made
pursuant to Clause 2.3;
	 
	 	 	“Approved Broker” means each of (i) H Clarkson & Co. Ltd. of St Magnus House, 3 Lower
Thames Street, London EC3R 6HE, England, (ii) Arrow Research Ltd. of Harbour House,
Chelsea Harbour, London SW10 0XE, England and (iii) Fearnleys AS of Grev Wedels Plass 9,
P. O. Box 1158 Sentrum, Oslo N-0107 Norway or such other reputable, independent and first
class firm of shipbrokers specialising in the valuation of vessels of the relevant type
appointed by the Bank and agreed with the Borrowers;
	 
	 	 	“Assignee” is defined in clause 15.3;
	 
	 	 	“Bank” means EFG Eurobank Ergasias S.A., a banking société 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 & Flessa
Street, 5th floor, 185 38 Piraeus, Greece (or of such other address as may last have been
notified to the Borrowers pursuant to clause 16.2.3);
	 
	 	 	“Banking Day” means a day on which dealings in deposits in USD are carried on in
the London Interbank Eurocurrency Market and a day (other than Saturday or Sunday) on which
banks are open for general business in London, Piraeus and New York City and, in relation to
any payment to be made into or out of China, China (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

3

 

	 	 	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;

	 	 	“Borrowers” means each of Crete Shipping Corporation (“Crete”) and Rhodes Shipping
Corporation (“Rhodes”), each of which is incorporated in the Marshall Islands and has its
registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Marshall Islands, MH96960, and in the plural means both of them;
	 
	 	 	“Borrowers’ Security Documents” means, at any relevant time, such of the Security
Documents as shall have been executed by the Borrowers or either of them;
	 
	 	 	“Break Costs” means the aggregate amount of all losses, premiums, penalties, costs and
expenses whatsoever certified by the Bank at any time and from time to time as having been
incurred by it 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
in accordance with, respectively, clause 4.1 or clause 4.3 whether on a voluntary or
involuntary basis or otherwise howsoever or
	 
	 	(b)	 	of the Borrowers failing or being incapable of drawing the Loan after a
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 either Owner in favour of the Bank (including any
notices and/or acknowledgements and/or undertakings associated therewith) in such form as
the Bank may require in its sole discretion;
	 
	 	 	“Classification” means, in relation to each Vessel, the highest class available for a
vessel of her type with the relevant Classification Society;
	 
	 	 	“Classification Society” means, in relation to each Vessel, any IACS classification
society which the Bank shall, at the request of the Borrower, have agreed in writing shall
be treated as the classification society in relation to such Vessel for the purposes of
the relevant Ship Security Documents;
	 
	 	 	“Commitment” means, in relation to each Tranche, or, as the context may require, the Loan,
the maximum amount which the Bank has agreed to lend to the Borrowers under clause 2.1 as
reduced by any relevant term of this Agreement;
	 
	 	 	“Compliance Certificate” means a certificate substantially in the form set out in schedule
3 signed by the chief financial officer of the Corporate Guarantor;

4

 

	 	 	“Compulsory Acquisition” means, in respect of a Vessel, requisition for title or other
compulsory acquisition including, if that ship is not released therefrom within the
Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or
confiscation howsoever for any reason (but excluding requisition for use or hire) by or on
behalf of any Government Entity or other competent authority or by pirates, hijackers,
terrorists or similar persons; “Relevant Period” means for the purposes of this definition
of Compulsory Acquisition either (i) ninety (90) days or, (ii) if relevant underwriters
confirm in writing (in terms satisfactory to the Bank) prior to the end of such ninety
(90) day period that such capture, seizure, detention or confiscation will be fully
covered by the relevant Owner’s war risks insurance if continuing for a further period
exceeding ten (10) calendar months, the shorter of twelve (12) months and such period at
the end of which cover is confirmed to attach;
	 
	 	 	“Corporate Guarantee” means the guarantee required to be executed hereunder by the
Corporate Guarantor in such form as the Bank may agree or require ;
	 
	 	 	“Corporate Guarantor” means Navios Maritime Acquisition Corporation, a corporation listed
on NYSE and incorporated in the Marshall Islands and having 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;
	 
	 	 	“Delivery Date” means, in relation to a Vessel, the date on which title to and possession
of that Vessel is transferred from the Builder to the relevant Borrower, which are
expected to be, in respect of Vessel A, 31 August 2012, and in respect of Vessel B, 31
October 2012;
	 
	 	 	“Dollars” and “USD” mean the lawful currency of the USA and in respect of all payments to
be made under any of the Security Documents means funds which are for same day settlement
in the New York Clearing House Interbank Payments System (or such other US dollar funds as
may at the relevant time be customary for the settlement of international banking
transactions denominated in US dollars);
	 
	 	 	“Drawdown Date” means, in relation to each Advance, any date being a Banking Day falling
during the relevant Drawdown Period, on which the relevant Advance is, or is to be, made
available;
	 
	 	 	“Drawdown Notice” means, in relation to each Advance, a notice substantially in the form
of schedule 1;
	 
	 	 	“Drawdown Period” means, in respect of each Tranche, the period commencing on the
Execution Date and ending on the earlier of (i) 31 December 2012 or the latest date on
which the relevant Vessel may be delivered under the relevant Shipbuilding Contract after
taking into account any permitted delays thereunder and (ii) any date on which the
Commitment is finally cancelled or fully drawn under the terms of this Agreement;
	 
	 	 	“Earnings Account” means, in respect of each Borrower, an interest bearing USD Account
required to be opened hereunder with the Bank in the name of that Borrower designated
“[NAME OF BORROWER] — Earnings Account” and includes any other account designated in
writing by the Bank to be an Earnings Account for the purposes of this Agreement;

5

 

	 	 	“Earnings Account Pledge” means, in respect of each Earnings Account, the pledge required
to be executed hereunder by the relevant Borrower over its Earnings Account in such form
as the Bank may agree or require, and in the plural means all of them;
	 
	 	 	“Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, assignment, title
retention, preferential right, option, trust arrangement or security interest or any other
encumbrance, security or arrangement conferring howsoever a priority of payment in respect
of any obligation of any person;
	 
	 	 	“Environmental Affiliate” means any agent or employee of the Borrower, the Manager or any
other Group Member or any other person having a contractual relationship with the
Borrower, the Manager or any other Group Member in connection with any Relevant Vessel or
its operation or the carriage of cargo and/or passengers thereon and/or the provision of
goods and/or services on or from any Relevant Vessel;
	 
	 	 	“Environmental Approval” means any consent, authorisation, licence or approval of any
governmental or public body or authorities or courts applicable to any Relevant Vessel or
its operation or the carriage of cargo and/or passengers thereon and/or the provision of
goods and/or services on or from any Relevant Vessel required under any Environmental Law;
	 
	 	 	“Environmental Claim” means (i) any claim by, or directive from, any applicable
Government Entity alleging breach of, or non-compliance with, any Environmental Laws or
Environmental Approvals or otherwise howsoever relating to or arising out of an
Environmental Incident or (ii) any claim by any other third party howsoever relating to or
arising out of an Environmental Incident (and, in each such case, “claim” shall include a
claim for damages and/or direction for and/or enforcement relating to clean-up costs,
removal, compliance, remedial action or otherwise) or (iii) any Proceedings arising from
any of the foregoing;
	 
	 	 	“Environmental Incident” means, regardless of cause, (i) any actual or threatened
discharge or release of Environmentally Sensitive Material from any Relevant Vessel; (ii)
any incident in which Environmentally Sensitive Material is discharged or released from a
vessel other than a Relevant Vessel which involves collision between a Relevant Vessel and
such other vessel or some other incident of navigation or operation, in either case, where
the Relevant Vessel, the Manager and/or the relevant Owner and/or the relevant Group
Member and/or the relevant Operator are actually, contingently or allegedly at fault or
otherwise howsoever liable (in whole or in part) or (iii) any incident in which
Environmentally Sensitive Material is discharged or released from a vessel other than a
Relevant Vessel and where such Relevant Vessel is actually or potentially liable to be
arrested as a result and/or where the Manager and/or the relevant Owner and/or other Group
Member and/or the relevant Operator are actually, contingently or allegedly at fault or
otherwise howsoever liable;
	 
	 	 	“Environmental Laws” means all laws, regulations, conventions and agreements whatsoever
relating to pollution, human or wildlife well-being or protection of the environment
(including, without limitation, the United States Oil Pollution Act of 1990 and any
comparable laws of the individual States of the USA);
	 
	 	 	“Environmentally Sensitive Material” means oil, oil products or any other products or
substance which are polluting, toxic or hazardous or any substance the release of which
into the environment is howsoever regulated, prohibited or penalised by or pursuant to any
Environmental Law;

6

 

	 	 	“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 a Mortgaged Vessel, any time
charterparty, contract of affreightment or other contract of employment of such ship
(including the entry of either Vessel in any pool) which has a tenor of not less than
twelve (12) months (including any options to renew or extend such tenor);
	 
	 	 	“Facility Period” means the period starting on the first Drawdown Date 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;
	 
	 	 	“Flag State” means the Republic of Panama or such other state or territory agreed by the
Bank, at the request of the Borrowers, as the “Flag State” of the Vessels for the purposes
of the Security Documents;
	 
	 	 	“General Assignment” means, in respect of each Vessel, the deed of assignment of its
earnings, insurances and requisition compensation executed or to be executed by the
relevant Owner in favour of the Bank in such form as the Bank may require in its sole
discretion, and in the plural means both of them;
	 
	 	 	“Government Entity” means any national or local government body, tribunal, court or
regulatory or other agency and any organisation of which such body, tribunal, court or
agency is a part or to which it is subject;
	 
	 	 	“Group” means the Corporate Guarantor and its subsidiaries but excluding any company which
is publicly listed;
	 
	 	 	“Group Member” means any member of the Group;
	 
	 	 	“IACS” means the International Association of Classification Societies;
	 
	 	 	“Indebtedness” means any obligation howsoever arising (whether present or future, actual
or contingent, secured or unsecured as principal, surety or otherwise) for the payment or
repayment of money;
	 
	 	 	“Interest Payment Date” means, in relation to each Tranche, the last day of an Interest
Period and, if an Interest Period is longer than 3 months, the date falling at the end of
each successive period of 3 months during such Interest Period starting from its
commencement;
	 
	 	 	“Interest Period” means each period for the calculation of interest in respect of the Loan
or, as the case may be, Tranche ascertained in accordance with the provisions of clause 3;
	 
	 	 	“ISM Code” means in relation to its application to the Borrowers, the Vessels and their
operation:

	 	(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

7

 

	 	 	 	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 each Vessel, the document of compliance
(DOC) and safety management certificate (SMC) issued by a Classification Society pursuant
to the ISM Code in relation to such Vessel within the periods specified by the ISM Code;
	 
	 	 	“ISM SMS” means the safety management system which is required to be developed,
implemented and maintained under the ISM Code;
	 
	 	 	“ISPS Code” means the International Ship and Port Security Code of the International
Maritime Organisation and includes any amendments or extensions thereto and any
regulations issued pursuant thereto;
	 
	 	 	“ISSC” means an International Ship Security Certificate issued in respect of a Vessel
pursuant to the ISPS Code;
	 
	 	 	“Latest Accounts” means, in respect of any financial half-year or year of the Group, the
latest unaudited (in respect of each financial half-year) or audited (in respect of each
financial year) financial statements required to be prepared pursuant to clause 8.1.6;
	 
	 	 	“LIBOR” means, for an Interest Period, the greater of:

	 	(a)	 	the rate equal to the offered quotation for deposits in USD in an amount
comparable with the amount in relation to which LIBOR is to be determined for a
period equal to, or as near as possible equal to, the relevant period which appears
on Reuters BBA Page LIBOR 01 at or about 11 a.m. on the second Banking Day before the
first day of such period (and, for the purposes of this Agreement, “Reuters BBA Page
LIBOR 01” means the display designated as “Reuters BBA Page LIBOR 01” on the Reuters
Service or such other page as may replace LIBOR 01 on that service for the purpose of
displaying rates comparable to that rate or on such other service as may be nominated
by the British Bankers’ Association as the information vendor for the purpose of
displaying the British Bankers’ Association Interest Settlement Rates for USD) and
	 
	 	(b)	 	the rate determined by the Bank to be that at which deposits in USD and in
an amount comparable with the amount in relation to which LIBOR is to be determined
and for a period equal to the relevant period were being offered by the Bank to prime
banks in the London Interbank Market at or about 11 a.m. on the second Banking Day
before the first day of such period;

	 	 	“Liquidity” means the aggregate of all cash deposits legally and beneficially owned by any
Group Member which:

8

 

	 	(a)	 	are free from any Encumbrance other than, in respect of any deposit with
the Bank, any Encumbrance given as security for the obligations of the Borrowers
under this Agreement; and
	 
	 	(b)	 	are otherwise at the free and unrestricted disposal of the relevant Group
Member by which it is owned;

	 	 	“Loan” means the principal amount borrowed by the Borrowers under this Agreement or (as
the context may require) the principal amount owing to the Bank under this Agreement at
any relevant time;
	 
	 	 	“MII & MAP Policy” means a mortgagee’s interest and (if required by the Bank) pollution
risks insurance policy (including additional perils (pollution) cover) in respect of each
Mortgaged Vessel to be effected by the Bank to cover the Mortgaged Vessels as the same may
be renewed or replaced annually thereafter and maintained throughout the Facility Period
through such brokers, with such underwriters and containing such coverage as may be
acceptable to the Bank in its sole discretion, insuring a sum of at least one hundred and
twenty per cent (120%) of the Loan;
	 
	 	 	“Material Adverse Effect” means any event or occurrence which the Bank reasonably
determines has had or could reasonably be expected to have a material adverse effect on
(i) the Bank’s rights under, or the security provided by, any Security Document, (ii) the
ability of any Security Party to perform or comply with any of its obligations under any
Security Document or (iii) the value or nature of the property, assets, operations,
liabilities or financial condition of any Security Party;
	 
	 	 	“Management Agreement” means, in respect of each Vessel, the agreement between the
relevant Owner and the Manager in a form previously approved in writing by the Bank;
	 
	 	 	“Manager” means Navios Tankers Management Inc., a company incorporated in the Marshall
Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro, Marshall Islands, MH96960 or any other person appointed by an Owner, with
the prior written consent of the Bank, as the manager of the relevant Mortgaged Vessel;
	 
	 	 	“Manager’s Undertakings” means, collectively, the undertakings and assignments required to
be executed hereunder by the Manager in favour of the Bank in respect of each of the
Vessels each in such form as the Bank may require in its sole discretion (and “Managers’
Undertakings” means all of them);
	 
	 	 	“Margin” means 3 per cent per annum;
	 
	 	 	“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 (i) if the period started on the last Banking Day in a calendar
month or if there is no such numerically corresponding day, it shall end on the last
Banking Day in the such next calendar month and (ii) if such numerically corresponding day
is not a Banking Day, the period shall end on the next following Banking Day in the same
calendar month but if there is no such Banking Day it shall end on the preceding Banking
Day and “months” and “monthly” shall be construed accordingly;

9

 

	 	 	“Mortgage” means, in relation to each Vessel, the first preferred mortgage of such Vessel
required to be executed hereunder by the Borrower which is the owner thereof in such form
as the Bank may agree or require, and in the plural means both of them;
	 
	 	 	“Mortgaged Vessel” means, at any relevant time, a Vessel which is at such time subject to
a Mortgage and/or the Earnings, Insurances and Requisition Compensation (each such term as
defined in the relevant Ship Security Documents) of which are subject to an Encumbrance
pursuant to the relevant Ship Security Documents and a Vessel shall, for the purposes of
this Agreement, be regarded as a Mortgaged Vessel as from whichever shall be the earlier
of (a) her Delivery Date and (b) the date on which the Mortgage of that Vessel has been
executed and registered in accordance with this Agreement until whichever shall be the
earlier of (i) the payment in full of the amount required to be paid to the Bank pursuant
to clause 4.3 or 4.4 following the Total Loss or sale respectively of such Vessel and (ii)
the end of the Facility Period
	 
	 	 	“Net Profit” means for each financial year of the Corporate Guarantor, the Net Profit as
set out in the relevant Latest Accounts;
	 
	 	 	“Net Worth” means by reference to the Latest Accounts, the Total Assets (based on book
values) less Total Liabilities of the Group;
	 
	 	 	“NMH” means Navios Maritime Holdings Inc., a corporation listed on NYSE and
incorporated in the Marshall Islands and having its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;
	 
	 	 	“NYSE” means the stock exchange run by NYSE Euronext with the main exchange located in the
United States of America, originally an acronym for the New York Stock Exchange;
	 
	 	 	“Operator” means any person who is from time to time during the Facility Period concerned
in the operation of a Relevant Vessel and falls within the definition of “Company” set out
in rule 1.1.2 of the ISM Code;
	 
	 	 	“Owner” means, in relation to Vessel A, Rhodes and in relation to Vessel B, Crete, and in
the plural means both of them;
	 
	 	 	“Permitted Encumbrance” means any Encumbrance created pursuant to or expressly permitted
by the Security Documents and Permitted Liens or otherwise permitted by the Bank;
	 
	 	 	“Permitted Liens” means any lien on a 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 Bank) exceeding the Casualty Amount (as defined in the relevant Mortgage);
	 
	 	 	“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;
	 
	 	 	“Predelivery Security Assignment” means, in respect of each Vessel, a deed of assignment
of the Shipbuilding Contract and of the Refund Guarantee in respect thereof in such form
as the Bank may agree or require and in the plural means both of them;

10

 

	 	 	“Proceedings” means any litigation, arbitration, legal action or complaint or judicial,
quasi-judicial or administrative proceedings whatsoever arising or instigated by anyone 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);
	 
	 	 	“Receiving Bank” means Deutsche Bank Trust Company Americas, New York, USA or such other
bank as may from time to time be notified by the Bank to the Borrowers;
	 
	 	 	“Refund Guarantee” means each of the Vessel A Refund Guarantee and the Vessel B Refund
Guarantee and in the plural means both of them;
	 
	 	 	“Refund Guarantor” means each of the Vessel A Refund Guarantor and the Vessel B Refund
Guarantor and in the plural means both of them;
	 
	 	 	“Registry” means, in relation to each Vessel, the office of the registrar, commissioner or
representative of the Flag State, who is duly empowered to register such Vessel, the
relevant Owner’s title thereto and the relevant Mortgage under the laws and flag of the
Flag State;
	 
	 	 	“Relevant Tranche” means, in respect of Vessel A, Tranche A, and in respect of Vessel B,
Tranche B;
	 
	 	 	“Repayment Dates” means, in respect of each Tranche, subject to clause 6.3, each of
the dates falling at quarterly intervals after the Drawdown Date in respect of the Advance
referred to in Clause 2.3.(e) in respect of such Tranche, up to and including the date
falling 96 months after such Drawdown Date;
	 
	 	 	“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 or central bank or other
self-regulating or supra-national authority in order to enable the Borrowers lawfully to
draw the Loan and/or to enable any Security Party lawfully and continuously to continue
its corporate existence and/or perform all its obligations whatsoever whensoever arising
and/or grant security under the relevant Security Documents and/or to ensure the
continuous validity and enforceability thereof;
	 
	 	 	“Required Security Amount” means the amount in USD (as certified by the Bank) which is at
any relevant time 125% of the Loan;
	 
	 	 	“Retention Account” means, an interest bearing USD account in the name of the Borrowers
opened or (as the context may require) to be opened by the Borrowers with the Bank and
includes any sub-accounts thereof and any other account designated in writing by the Bank
to be the Retention Account for the purposes of this Agreement;
	 
	 	 	“Retention Account Pledge” means the pledge required to be executed hereunder by the
Borrowers over the Retention Account in such form as the Bank may agree or require;;
	 
	 	 	“Retention Amount” means, in relation to any Retention Date and each Tranche, such sum as
shall be the aggregate of:

	 	(c)	 	one-third (1/3rd) of the repayment instalment in respect of the relevant
Tranche falling due for payment pursuant to clause 4.1 (as the same may have been
reduced

11

 

	 	 	 	by any prepayment) on the next Repayment Date in respect of such Tranche after
the relevant Retention Date; and

	 	(d)	 	the applicable fraction (as hereinafter defined) of the aggregate amount of
interest falling due for payment in respect of each part of the relevant Tranche
during and at the end of each Interest Period in respect thereof current at the
relevant Retention Date and, for this purpose, the expression “applicable fraction”
in relation to each Interest Period shall mean a fraction having a numerator of one
and a denominator equal to the number of Retention Dates falling within the relevant
Interest Period;

	 	 	“Retention Dates” means, in relation to each Tranche, the date falling thirty (30) days
after the Delivery Date in respect of the Vessel in respect of which such Tranche was made
available, and each of the dates falling at monthly intervals after such date and prior to
the final Repayment Date;
	 
	 	 	“Security Documents” means this Agreement, the Predelivery Security Assignments, the
Mortgages, the General Assignments, the Charter Assignments, the Earnings Account Pledges,
the Retention Account Pledge, the Corporate Guarantee, the Manager’s Undertakings and any
other documents as may have been or shall from time to time after the date of this
Agreement be executed in favour of the Bank to guarantee and/or to govern and/or to secure
payment of all or any part of the Loan, interest thereon and other moneys from time to
time owing by the Borrowers pursuant to this Agreement (whether or not any such document
also guarantees and/or secures moneys from time to time owing pursuant to any other
document or agreement);
	 
	 	 	“Security Party” means the Borrowers, the Corporate Guarantor, the Manager or any other
person who may at any time be a party to any of the Security Documents (other than the
Bank);
	 
	 	 	“Security Value” means the amount in USD (as certified by the Bank) which, at any relevant
time, is the aggregate of (i) the Valuation Amounts of the Vessels as most recently
determined in clause 8.2.2 and (ii) the market value of any additional security (or, in
the case of cash Dollars, its face value) the at that time held by the Bank and provided
under clause 8.2.1 or otherwise;
	 
	 	 	“Seller” means in relation to Vessel A, the Vessel A Seller, and to Vessel B, the Vessel B Seller;

	 
	 	 	“Shareholder” means, Aegean Sea Maritime Holdings Inc., a company incorporated in the Marshall Islands and having
its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;
	 
	 	 	“Ship Security Documents” means in relation to each Vessel, the Mortgage, the General
Assignment, any Charter Assignment and the Manager’s Undertaking in respect of such
Vessel;
	 
	 	 	“Shipbuilding Contract” means each of the Vessel A Shipbuilding Contract and the Vessel B
Shipbuilding Contract and in the plural means both of them;
	 
	 	 	“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;

12

 

	 	 	“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 Assets” and “Total Liabilities” mean, respectively, the total assets and total
liabilities of the Group as evidenced at any relevant time by the Latest Accounts, in
which they shall have been calculated by reference to the meanings assigned to them in
accordance with US GAAP provided that cash shall be deducted from Total Assets and Total
Liabilities;
	 
	 	 	“Total Loss” means, in respect of each Vessel:

	 	(e)	 	actual, constructive, compromised, agreed or arranged total loss of such
Vessel; or
	 
	 	(f)	 	Compulsory Acquistion; or
	 
	 	(g)	 	any hijacking, theft, condemnation, capture, seizure, arrest, detention or
confiscation of such Vessel not falling within the definition of Compulsory
Acquisition by any Government Entity, or by persons allegedly acting or purporting
to act on behalf of any Government Entity, unless such Vessel be released and
restored to the relevant Owner within ninety (90) days after such incident;

	 	 	“Tranche A” means the amount of up to USD26,000,000, being
the aggregate of all of the Advances to be made available by the
Bank to the Borrowers to assist Rhodes in its acquisition of
Vessel A;
	 
	 	 	“Tranche B” means the amount of up to USD26,000,000, being the
aggregate of all of the Advances to be made available by the Bank
to the Borrowers to assist Crete in its acquisition of Vessel B;
and
	 
	 	 	“Tranche” means either of Tranche A or Tranche B and in the plural means both of them
	 
	 	 	“Transactions” means together (i) a private offering of US$400,000,000 First Priority Ship
Mortgage Notes due in 2017 (the “Notes”) issued by the Corporate Guarantor and Navios
Acquisition Finance (US) Inc. (together, the “Issuers”) and (ii) an exchange offer for,
and related public issuance of notes in exchange for, the Notes that the Issuers are
required to execute and issue pursuant to the Indenture and a Registration Rights
Agreement relating to the Notes;
	 
	 	 	“Transferee” is defined in clause 15.4; and
	 
	 	 	“U.S.” means the United States of America;
	 
	 	 	“Unlawfulness” means any event or circumstance which either is or, as the case may be,
might in the reasonable opinion of the Bank become the subject of a notification by the
Bank to the Borrowers under clause 12.1; and
	 
	 	 	“Underlying Documents” means, together, the Shipbuilding Contracts, the Refund Guarantees,
any Extended Employment Contracts and the Management Agreements ;
	 
	 	 	“Valuation Amount” means, in respect of each Mortgaged Vessel, the value thereof as most
recently determined under clause 8.2.2; and

13

 

	 	 	“Vessel” means each of Vessel A and Vessel B and in the plural means both of them.
	 
	 	 	Words and expressions defined in Schedule 4 (Vessel Details) shall have the meanings given
to them therein as if the same were set out in full in this clause 1.2.
	 
	1.3	 	Construction
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	1.3.1	 	clause headings and the index are inserted for convenience of reference only and shall be
ignored in the construction of this Agreement;
	 
	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;
	 
	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 Bank shall also include a
Transferee;
	 
	1.3.6	 	words importing the plural shall include the singular and vice versa;
	 
	1.3.7	 	references to a time of day are, unless otherwise stated, to London time;
	 
	1.3.8	 	references to a person shall be construed as references to an individual, firm, company,
corporation or unincorporated body of persons or any Government Entity;
	 
	1.3.9	 	references to a “guarantee” include references to an indemnity or any other kind of
assurance whatsoever (including, without limitation, any kind of negotiable instrument, bill
or note) against financial loss or other liability including, without limitation, an
obligation to purchase assets or services as a consequence of a default by any other person to
pay any Indebtedness and “guaranteed” shall be construed accordingly;
	 
	1.3.10	 	references to any statute or other legislative provision are to be construed as references
to any such statute or other legislative provision as the same may be re enacted or modified
or substituted by any subsequent statute or legislative provision (whether before or after the
date hereof) and shall include any regulations, orders, instruments or other subordinate
legislation issued or made under such statute or legislative provision;
	 
	1.3.11	 	a certificate by the Bank 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 Borrowers
except for manifest error;
	 
	1.3.12	 	if any document, term or other matter or thing is required to be approved, agreed or
consented to by the Bank such approval, agreement or consent must be obtained in writing
unless the contrary is stated;

14

 

	1.3.13	 	time shall be of the essence in respect of all obligations whatsoever of the Borrowers under
this Agreement, howsoever and whensoever arising; and
	 
	1.3.14	 	the words “other” and “otherwise” shall not be construed eiusdem generis with any foregoing
words where a wider construction is possible.
	 
	1.4	 	Accounting Terms and references to currencies
	 
	 	 	All accounting terms not otherwise defined in this Agreement shall have the meanings
assigned to them in accordance with generally accepted international accounting principles
(or such other accounting principles as the Bank deems appropriate).
	 
	1.5	 	Contracts (Rights of Third Parties Act) 1999
	 
	 	 	Except for clause 18.6.4 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 BANK’S COMMITMENT, ADVANCE AND USE OF PROCEEDS
	 
	2.1	 	The Commitment
	 
	 	 	In reliance upon each of the representations and warranties in clause 7, the Bank agrees
to pay to the Builder by way of loan to the Borrowers on the terms of this Agreement the
principal sum of up to USD52,000,000 in two equal Tranches of up to USD26,000,000 each in
up to five Advances.
	 
	2.2	 	Advance
	 
	 	 	On the terms and subject to the conditions of this Agreement, each Tranche shall be
advanced in up to five (5) Advances on the relevant Drawdown Dates following receipt by
the Bank from the Borrowers of Drawdown Notices not later than 10 a.m. on the second
Banking Day before each proposed Drawdown Date. A Drawdown Notice shall be effective on
actual receipt by the Bank and, once given, shall, subject as provided in clause 3.6.1, be
irrevocable.
	 
	2.3	 	Amount
	 
	 	 	The principal amount specified in each Drawdown Notice for borrowing on the Drawdown Dates
shall, subject to the terms of this Agreement, in respect of each Tranche, not exceed:

	 	(a)	 	USD6,500,000 in respect of the instalment payable to the Builder under the
relevant Shipbuilding Contract after the relevant Refund Guarantee has been issued;
	 
	 	(b)	 	USD2,600,000 in respect of the steel cutting instalment payable to the
Builder under the relevant Shipbuilding Contract;
	 
	 	(c)	 	USD2,600,000 in respect of the keel-laying instalment payable to the
Builder under the relevant Shipbuilding Contract;
	 
	 	(d)	 	USD5,200,000 in respect of the load-out instalment payable to the Builder
under the relevant Shipbuilding Contract; and

15

 

	 	(e)	 	the lesser of (i) USD9,100,000 and (ii) such amount as when added to the
already drawn Advances in respect of that Tranche will be 60% of the Valuation Amount
of relevant Vessel as at her Delivery Date.

	2.4	 	Availability
	 
	 	 	Upon receipt of a Drawdown Notice complying with the terms of this Agreement the Bank
shall, subject to the provisions of clause 9, make each Advance available to the Borrowers
on the relevant Drawdown Date in accordance with clause 2.2. The Borrowers acknowledge
that payment of each Advance to the Builder in accordance with clause 2.2 shall satisfy
the obligation of the Bank to lend that part of the Commitment to the Borrowers under this
Agreement.
	 
	2.5	 	Cancellation
	 
	 	 	If any part of the Loan is not drawn down by the end of the Drawdown Period, the
Commitment shall thereupon be automatically cancelled and the Bank shall have no further
obligation under this Agreement.
	 
	2.6	 	Use of Proceeds
	 
	 	 	Without prejudice to the Borrowers’ obligations under clause 8.1.4, the Bank shall have no
responsibility for the Borrowers’ use of the proceeds of the Loan.
	 
	3	 	INTEREST AND INTEREST PERIODS
	 
	3.1	 	Normal interest rate
	 
	 	 	The Borrowers agree to pay interest on each Tranche in respect of each Interest Period
relating thereto on each Interest Payment Date (or, in the case of Interest Periods of
more than three (3) months, by instalments, the first three (3) months from the
commencement of the Interest Period and the subsequent instalments at intervals of three
(3) months) at the rate per annum determined by the Bank to be the aggregate of (a) the
Margin and (b) LIBOR for such period.
	 
	3.2	 	Selection of Interest Periods
	 
	 	 	The Borrowers may by notice received by the Bank not later than 10 a.m. on the second
Banking Day before the start of each Interest Period request that such Interest Period
shall have a length of one (1), three (3) or six (6) months or such other period as the
Borrowers may select and the Bank may, subject to the same being available in the London
Interbank Market, agree.
	 
	3.3	 	Determination of Interest Periods
	 
	 	 	The length of each Interest Period shall be as requested by the Borrowers under clause 3.2
but so that:
	 
	3.3.1	 	the first Interest Period in respect of each Tranche shall start on the Drawdown Date in
respect of the first Advance in respect of that Tranche, and each subsequent Interest Period
shall start on the last day of the previous Interest Period;

16

 

	3.3.2	 	the first Interest Period in respect of each subsequent Advance shall commence on its
Drawdown Date and terminate simultaneously with the Interest Period which is then current for
the Tranche under which the Advance is made available;
	 
	3.3.3	 	if any Interest Period would otherwise overrun a Repayment Date, then, in the case of the
last Repayment Date, such Interest Period shall end on such Repayment Date, and in the case of
any other Repayment Date the relevant Tranche shall be divided into parts so that there is one
part in the amount of the repayment instalment due on each Repayment Date falling in that
Interest Period and having an Interest Period ending on the relevant Repayment Date and
another part consisting of the balance of the relevant Tranche having an Interest Period
ascertained in accordance with the other provisions of this clause 3; and
	 
	3.3.4	 	if the Borrowers fail to specify the length of an Interest Period in accordance with the
provisions of clause 3.2 and this clause 3.3 such Interest Period shall last three months or
such other period as complies with this clause 3.3.
	 
	3.4	 	Default interest
	 
	 	 	If the Bank fails to receive any sum whatsoever on its due date for payment under any of
the Security Documents, the Borrowers must pay interest on such sum on demand from the due
date up to the date of actual payment (as well after as before judgment) at a rate
determined by the Bank under this clause 3.4. The period starting on such due date and
ending on such date of payment shall be divided into successive periods of not more than
three (3) months as selected by the Bank 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 Bank) of (a) two and a half (2.5) per cent per annum, (b) the Margin and (c) LIBOR for
such period. Such interest shall be due and payable on the last day of each such period
as determined by the Bank and each such day shall 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 Bank under clause 10.2 or a prepayment pursuant to
clauses 4.3, 4.4, 8.2 or 12.1, on a date other than an Interest Payment Date relating
thereto, the first such period selected by the Bank shall be of a length 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 and a
half (2.5) per cent above the rate applicable immediately before it shall have become so
due and payable. If, for the reasons specified in clause 3.6.1, the Bank is unable to
determine a rate in accordance with the provisions of this clause 3.4, interest on any sum
not paid on its due date for payment shall be calculated at a rate determined by the Bank
to be two and a half (2.5) per cent per annum above the aggregate of the Margin and the
cost of funds to the Bank compounded at such intervals as the Bank selects.
	 
	3.5	 	Notification of Interest Periods and interest rate
	 
	 	 	The Bank agrees to notify the Borrowers promptly of the length of each Interest Period and
of each rate of interest determined by it under this clause 3.
	 
	3.6	 	Market disruption; non-availability
	 
	3.6.1	 	Whenever, at any time prior to the start of any Interest Period, the Bank determines:

	 	(a)	 	that adequate and fair means do not exist for determining LIBOR during such
Interest Period; or

17

 

	 	(b)	 	that deposits in USD are not available to the Bank in the London Interbank
Market in its ordinary course of business in sufficient amounts to fund the Loan for
such Interest Period;

	 	 	the Bank shall promptly give notice (a “Determination Notice”) thereof to the Borrowers.
A Determination Notice shall give brief details of the circumstances giving rise to its
issue. After the giving of any Determination Notice any undrawn amount of the Commitment
may not be borrowed until notice to the contrary is given to the Borrowers by the Bank;
	 
	3.6.2	 	upon a Determination Notice being given, the Borrower and the Bank shall discuss the same in
order to agree an alternative basis for maintaining the Loan, but if they are unable to agree
an alternative basis within 30 days of the date of the Determination Notice, then 40 days
after the Determination Notice being given, the Bank shall certify an alternative basis (such
basis, or if agreed, the basis agreed by the Bank and the Borrower, the “Substitute Basis”)
for maintaining the Loan. The Substitute Basis may include alternative interest periods,
alternative currencies or alternative rates of interest but must include a margin above the
cost of funds to the Bank equivalent to the Margin. Each Substitute Basis certified to the
Borrowers or agreed shall take effect in accordance with its terms from the date specified in
the Determination Notice until such time as the Bank notifies the Borrowers that none of the
circumstances specified in clause 3.6.1 continues to exist whereupon the normal interest rate
fixing provisions of this Agreement shall again apply. If the Borrower does not agree with
any Substitute Basis certified by the Bank if there is no agreement between the parties, then
the Borrower may prepay the Loan or the relevant part thereof, and the terms of Clause 4.5 and
4.6 shall apply to any such prepayment
	 
	4	 	REPAYMENT AND PREPAYMENT
	 
	4.1	 	Repayment
	 
	 	 	Subject as otherwise provided in this Agreement, the Borrowers must repay each Tranche by
32 equal quarterly instalments of USD345,000 each, one such instalment to be repaid on
each of the Repayment Dates and a balloon instalment of USD14,960,000 to be repaid on the
relevant final Repayment Date.
	 
	 	 	If the Commitment in respect of either Tranche is not drawn in full, the amount of each
repayment instalment including the said balloon instalment for that Tranche shall be
reduced proportionately.
	 
	4.2	 	Voluntary prepayment
	 
	 	 	The Borrowers may prepay the Loan in whole or part (being USD500,000 or any larger sum
which is a whole multiple of USD500,000) on any Interest Payment Date relating to the part
of the Loan to be repaid without premium or penalty.
	 
	4.3	 	Mandatory Prepayment on Total Loss
	 
	 	 	On the date falling ninety (90) days after that on which a Mortgaged Vessel became a Total
Loss or, if earlier, on the date upon which the relevant insurance proceeds are, or
Requisition Compensation (as defined in the Mortgage for such Vessel) is, received by the
relevant Borrower (or the Bank pursuant to the Security Documents), the Borrowers must
prepay the Relevant Proportion of the Loan.

18

 

	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 a Vessel, on the actual date and at
the time such Vessel was lost or, if such date is not known, on the date on which
such Vessel was last reported;
	 
	 	(b)	 	in the case of a constructive total loss of a Vessel, upon the date and at
the time notice of abandonment of the ship is given to the then insurers of such
Vessel (provided a claim for total loss is admitted by such insurers) or, if such
insurers do not immediately admit such a claim, at the date and at the time at which
either a total loss is subsequently admitted by such insurers or a total loss is
subsequently adjudged by a competent court of law or arbitration tribunal to have
occurred;
	 
	 	(c)	 	in the case of a compromised or arranged total loss of a Vessel, on the
date upon which a binding agreement as to such compromised or arranged total loss has
been entered into by the then insurers of such Vessel;
	 
	 	(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 a Vessel (other than within the definition of Compulsory
Acquisition) by any Government Entity, or by persons allegedly acting or purporting
to act on behalf of any Government Entity, which deprives an Owner of the use of such
Vessel for more than ninety (90) days, upon the expiry of the Relevant Period where
“Relevant Period” means, for the purposes of this clause 4.3.1(e), either (i) the
period of ninety (90) days after the date upon which the relevant incident occurred
or, (ii) if relevant underwriters confirm in writing (in customary terms) prior to
the end of such ninety (90) day period that such capture, seizure, detention or
confiscation will be covered by the relevant Owner’s war risks insurance if
continuing for a further period exceeding ten (10) calendar months, the shorter of
twelve (12) months and such period at the end of which cover is confirmed to attach.

	4.4	 	Mandatory prepayment on sale of Mortgaged Vessel
	 
	 	 	On the date of completion of the sale of any Mortgaged Vessel the Borrowers must prepay
the Relevant Proportion of the Loan.
	 
	4.5	 	Interpretation
	 
	 	 	In clauses 4.3 and 4.4:

	 	(a)	 	“Relevant Vessel” means the Vessel which is sold or becomes a Total Loss;
	 
	 	(b)	 	“Relevant Tranche” means the Tranche which has been made available
hereunder to finance the acquisition of the Relevant Vessel; and
	 
	 	(c)	 	“Relevant Proportion” means the higher of (a) the Relevant Tranche and (b)
such amount of the Loan as will be required to be prepaid so that the Valuation
Amount of the Vessel remaining subject to a Mortgage after such prepayment is at
least 140% of the Loan after such prepayment.

19

 

	4.6	 	Amounts payable on prepayment
	 
	 	 	Any prepayment of all or part of the Loan under this Agreement shall be made together with:
	 
	4.6.1	 	accrued interest on the amount of the Loan to the date of such prepayment;
	 
	4.6.2	 	any additional amount payable under clauses 6.6 or 11.2; and
	 
	4.6.3	 	all other sums payable by the Borrowers to the Bank under this Agreement or any of the other
Security Documents including, without limitation, any accrued commitment commission payable
under clause 5.1 and any Break Costs.
	 
	4.7	 	Notice of prepayment; reduction of repayment instalments
	 
	4.7.1	 	No prepayment may be effected under clause 4.2 unless the Borrowers shall have given the
Bank at least fifteen (15) days’ prior written notice of their intention to make such
prepayment. Every notice of prepayment shall be effective only on actual receipt by the Bank,
shall be irrevocable, shall specify the amount to be prepaid and shall oblige the Borrowers to
make such prepayment on the date specified.
	 
	4.7.2	 	Any amounts prepaid pursuant to clause 4.2 shall be applied against the Loan pro rata
between the Tranches in reducing the repayment instalments of each Tranche (including the
Balloon Instalment) pro rata.
	 
	4.7.3	 	Any amounts prepaid pursuant to clauses 4.3 and 4.4 shall be applied fully against the
Relevant Tranche and thereafter shall be applied pro rata against the repayment instalments of
the remaining Tranche which are at that time outstanding (including the Balloon Instalment).
	 
	4.7.4	 	The Borrowers may not prepay any part of the Loan except as expressly provided in this Agreement.
	 
	4.7.5	 	No amount prepaid may be reborrowed.
	 
	5	 	COMMITMENT COMMISSION, FEES AND EXPENSES
	 
	5.1	 	Fees
	 
	 	 	The Borrowers agree to pay to the Bank:
	 
	5.1.1	 	on the date of this Agreement, an arrangement fee of USD400,000;
	 
	5.1.2	 	on each of the dates falling at three (3) monthly intervals commencing on the date falling
three (3) months after the date of this Agreement until the end of the Drawdown Period,
commitment commission computed from the date of this Agreement (in the case of the first
payment of commission) and from the date of the preceding payment of commission (in the case
of each subsequent payment) at the rate of zero point five per cent. (0.5%) per annum on the
daily undrawn maximum available Commitment; and
	 
	5.1.3	 	on each Interest Payment Date and until the end of the Facility Period, a consultancy fee at
the rate of zero point five per cent. (0.5%) per annum on the amount of the Loan.

20

 

	 	 	The fee referred to in clause 5.1.1 and the commitment commission referred to in clause
5.1.2 must be paid by the Borrowers to the Bank regardless of whether any part of the
Commitment is ever advanced and in each case is not refundable.
	 
	5.2	 	Expenses
	 
	 	 	The Borrowers agree to reimburse the Bank on a full indemnity basis on demand for all
expenses and/or disbursements whatsoever certified by the Bank as having been incurred by
it from time to time and at any time:
	 
	5.2.1	 	in connection howsoever with the negotiation, preparation, execution and, where relevant,
registration of the Security Documents and of any contemplated or actual amendment, indulgence
or the granting of any waiver or consent howsoever in connection with any of the Security
Documents; and
	 
	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 discretion under any of
the Security Documents or any amendment thereto or consideration of the Bank’s rights
thereunder or any action proposed or taken with interest at the rate referred to in clause 3.4
from the date on which such expenses and/or disbursements were incurred to the date of payment
(as well after as before judgment).
	 
	5.3	 	Value Added Tax
	 
	 	 	All fees and expenses payable under to this clause 5 must be paid with value added tax or
any similar tax (if any) properly chargeable thereon. Any value added tax chargeable in
respect of any services supplied by the Bank under this Agreement must, 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 Borrowers must pay all stamp, documentary, registration or other like duties or taxes
(including any duties or taxes payable by the Bank) imposed on or in connection with any
of the Shipbuilding Contracts, the Management Agreements, the Security Documents or the
Loan and agree to indemnify the Bank against any liability arising by reason of any delay
or omission by either Borrower to pay such duties or taxes.
	 
	6	 	PAYMENTS AND TAXES; ACCOUNTS AND CALCULATIONS
	 
	6.1	 	No set-off or counterclaim
	 
	 	 	All payments to be made by the Borrowers under any of the Security Documents must be made
in full, without any set-off or counterclaim whatsoever and, subject to clause 6.6, free
and clear of any deductions or withholdings, in USD not later than 11 a.m. London time on
the due date to the account of the Bank at the Receiving Bank or to such other account at
such other bank in such place as the Bank may from time to time notify to the Borrowers.
	 
	6.2	 	Payment by the Bank
	 
	 	 	The proceeds of the Loan to be advanced by the Bank to the Borrowers under this Agreement
must be remitted in USD on the relevant Drawdown Date to the account or accounts specified
in the relevant Drawdown Notice.

21

 

	6.3	 	Non-Banking Days
	 
	 	 	When any payment under any of the Security Documents would otherwise be due on a day which
is not a Banking Day, the due date for payment shall be extended to the next following
Banking Day unless such Banking Day falls in the next calendar month in which case payment
shall be made on the immediately preceding Banking Day.
	 
	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
360 day year.
	 
	6.5	 	Currency of account
	 
	 	 	If any sum due from the Borrowers under any of the Security Documents, or under any order
or judgment given or made in relation thereto or for any other reason whatsoever, 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 Borrowers, (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 Borrowers undertake to indemnify and hold harmless the Bank from and against any loss
suffered as a result of any discrepancy between (a) the rate of exchange used for such
purpose to covert the sum in question from the first currency into the second currency and
(b) the rate or rates of exchange at which the Bank 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 Borrowers 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
	 
	 	 	If at any time the Borrowers must make any deduction or withholding in respect
of Taxes from any payment due under any of the Security Documents, the sum due from
the Borrowers in respect of such payment must then be increased to the extent
necessary to ensure that, after the making of such deduction or withholding, the Bank
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 made and the Borrowers agree
to indemnify the Bank on demand against any losses or costs certified by the Bank to
have been incurred by it by reason of any failure of the Borrowers to make any such
deduction or withholding or by reason of any increased payment not being made on the
due date for such payment. The Borrowers must promptly deliver to the Bank 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	 	Loan account
	 
	 	 	The Bank agrees to maintain a control account showing the Loan and other sums owing by the
Borrowers under the Security Documents and all payments in respect thereof being made

22

 

	 	 	from time to time. The control account shall, in the absence of manifest error, be
conclusive as to the amount from time to time owing by the Borrowers under the Security
Documents.
	 
	6.8	 	Bank may assume receipt
	 
	 	 	Where any sum is to be paid under the Security Documents to the Bank, the Bank may assume
that the payment will be made when due and the Bank may (but shall not be obliged to) make
such sum available to the person so entitled. If it proves to be the case that such
payment was not made to the Bank, then the person to whom such sum was so made available
must on request refund such sum to the Bank together with interest thereon sufficient to
compensate the Bank for the cost of making available such sum up to the date of such
repayment and the person by whom such sum was payable must indemnify the Bank for any and
all loss or expense which the Bank may sustain or incur as a consequence of such sum not
having been paid on its due date.
	 
	6.9	 	Partial payments
	 
	 	 	If, on any date on which a payment is due to be made by the Borrowers under any of the
Security Documents, the amount received by the Bank from the Borrowers falls short of the
total amount of the payment due to be made by the Borrowers on such date then, without
prejudice to any rights or remedies available to the Bank under any of the Security
Documents, the Bank must apply the amount actually received from the Borrowers in or
towards discharge of the obligations of the Borrowers under the Security Documents in the
following order, notwithstanding any appropriation made, or purported to be made, by the
Borrowers:
	 
	6.9.1	 	first, in or towards payment, on a pro-rata basis, of any unpaid costs and expenses of the
Bank under any of the Security Documents;
	 
	6.9.2	 	secondly, in or towards payment of any fees payable to the Bank under, or in relation to,
the Security Documents which remain unpaid;
	 
	6.9.3	 	thirdly, in or towards payment to the Bank of any accrued interest owing in respect of the
Loan which shall have become due under any of the Security Documents but remains unpaid;
	 
	6.9.4	 	fourthly, in or towards payment to the Bank of any principal in respect of the Loan which
shall have become due but remains unpaid;
	 
	6.9.5	 	fifthly, in or towards payment to the Bank 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
	 
	6.9.6	 	sixthly, in or towards payment to the relevant person of any other sum which shall have
become due under any of the Security Documents but remains unpaid (and, if more than one such
sum so remains unpaid, on a pro rata basis).
	 
	 	 	The order of application set out in clauses 6.9.1 to 6.9.6 may be varied by the Bank
without any reference to, or consent or approval from, the Borrowers..
	 
	7	 	REPRESENTATIONS AND WARRANTIES
	 
	7.1	 	Continuing representations and warranties

23

 

	 	 	The Borrowers represent and warrant to the Bank that:
	 
	7.1.1	 	Due incorporation
	 
	 	 	each of the Security Parties is duly incorporated and validly existing 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 their respective property and other assets to which it has unencumbered legal and
beneficial title except as disclosed to the Bank in writing;
	 
	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 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
Borrowers 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
	 
	 	 	the Underlying Documents and the Security Documents, when executed, will constitute valid
and legally binding obligations of the relevant Security Parties enforceable in accordance
with their respective terms;
	 
	7.1.4	 	No conflict with other obligations
	 
	 	 	the execution and delivery of, the performance of their obligations under, and compliance
with the provisions of, the Underlying Documents and the Security Documents by the
relevant Security Parties will not (i) contravene any existing applicable law, statute,
rule or regulation or any judgment, decree or permit to which any Security Party or other
member of the Group is subject, (ii) conflict with, or result in any breach of any of the
terms of, or constitute a default under, any agreement or other instrument to which any
Security Party or any other member of the Group is a party or is subject or by which it or
any of its property is bound, (iii) contravene or conflict with any provision of the
constitutional documents of any Security Party or (iv) result in the creation or
imposition of, or oblige any of the Security Parties to create, any Encumbrance (other
than a Permitted Encumbrance) on any of the undertakings, assets, rights or revenues of
any of the Security Parties;
	 
	7.1.5	 	No default
	 
	 	 	no Default has occurred;
	 
	7.1.6	 	No litigation or judgments
	 
	 	 	no Proceedings are current, pending or, to the knowledge of the officers of either
Borrower, threatened against any of the Security Parties or any other Group Members or
their assets which could have a Material Adverse Effect and there exist no judgments,
orders, injunctions which would materially affect the obligations of the Security Parties
under the Security Documents;

24

 

	7.1.7	 	No filings required
	 
	 	 	except for the registration of the Mortgages in the relevant register under the laws of
the relevant Flag State through the relevant Registry, it is not necessary to ensure the
legality, validity, enforceability or admissibility in evidence of any of the Underlying
Documents or any of the Security Documents that they or any other instrument be notarised,
filed, recorded, registered or enrolled in any court, public office or elsewhere in any
Pertinent Jurisdiction or that any stamp, registration or similar tax or charge be paid in
any Pertinent Jurisdiction on or in relation to any of the Underlying Documents or the
Security Documents and each of the Underlying Documents and the Security Documents is in
proper form for its enforcement in the courts of each Pertinent Jurisdiction;
	 
	7.1.8	 	Required Authorisations and legal compliance
	 
	 	 	all Required Authorisations have been obtained or effected and are in full force and
effect and no Security Party has in any way contravened any applicable law, statute, rule
or regulation (including all such as relate to money laundering);
	 
	7.1.9	 	Choice of law
	 
	 	 	the choice of English law to govern the Underlying Documents and the Security Documents
(other than the Mortgages, the Earnings Account Pledges and the Retention Account Pledge),
the choice of the law of the Flag State to govern the Mortgages, the choice of Greek law
to govern the Earnings Account Pledges and the Retention Account Pledge and the
submissions by the Security Parties to the jurisdiction of the English courts and the
obligations of such Security Parties associated therewith, are valid and binding;
	 
	7.1.10	 	No immunity
	 
	 	 	no Security Party nor any of their assets is entitled to immunity on the grounds of
sovereignty or otherwise from any Proceedings whatsoever;
	 
	7.1.11	 	Financial statements correct and complete
	 
	 	 	the latest audited and unaudited consolidated financial statements of the Corporate
Guarantor in respect of the relevant financial year as delivered to the Bank and present
or will present fairly and accurately the financial position of the Corporate Guarantor
and the consolidated financial position of the Group as at the date thereof and the
results of the operations of the Corporate Guarantor and the consolidated results of the
operations of the Group for the financial year ended on such date and, as at such date,
neither the Corporate Guarantor nor any of its subsidiaries had any significant
liabilities (contingent or otherwise) or any unrealised or anticipated losses which are
not disclosed by, or reserved against or provided for in, such financial statements;
	 
	7.1.12	 	Pari passu
	 
	 	 	the obligations of the Borrowers under this Agreement are direct, general and
unconditional obligations of the Borrowers and rank at least pari passu with all other
present and future unsecured and unsubordinated Indebtedness of the Borrowers except for
obligations which are mandatorily preferred by operation of law and not by contract;

25

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