Document:

Exhibit
10.36

 

Private
& Confidential

 

 

 

FORM
OF FACILITY AGREEMENT

for
a

Term
Loan, Overdraft and Guarantee Facility

of
up to US$183,400,000

to

AEGEAN
MARINE PETROLEUM NETWORK INC.

and

AEGEAN
MARINE PETROLEUM S.A.

provided
by

THE
ROYAL BANK OF SCOTLAND PLC

 

 

 

 

 

THIS
AGREEMENT is dated [•] 2006 and made BETWEEN:

 

(1)        AEGEAN
MARINE PETROLEUM NETWORK INC. and AEGEAN MARINE PETROLEUM S.A. as joint and several
Borrowers; and

 

(2)        THE
ROYAL BANK OF SCOTLAND PLC as Bank.

 

IT IS AGREED as follows:

 

1              Purpose and definitions

 

1.1          Purpose

 

This
Agreement sets out the terms and conditions upon and subject to which the Bank
agrees to make available to the Borrowers, jointly and severally:

 

1.1.1        a loan of
up to Thirty three million four hundred thousand Dollars ($33,400,000) in
twenty (20) Advances for the purpose of assisting the Borrowers to lend funds
to the Newbuilding Owners to be used for the financing and/or refinancing of
part of the construction and acquisition cost of the Newbuildings;

 

1.1.2        an
overdraft facility of up to Fifty million Dollars ($50,000,000) for the purpose
of assisting the Borrowers to finance the working capital needs of the Group;
and

 

1.1.3        a
multi-currency revolving guarantee and letter of credit facility of up to One
hundred million Dollars ($100,000,000) for the purpose of assisting the
Borrowers to finance the purchase and transportation of fuel cargoes and the
payment of other expenses incidental to the supply of bunkers and lubricants to
customers of the AMPSA Borrower.

 

1.2          Definitions

 

In this
Agreement, unless the context otherwise requires:

 

“Accounting Information” means (a) the annual audited
consolidated financial statements of the Group and (b) the semi-annual
unaudited consolidated financial statements of the Group, each as provided or
(as the context may require) to be provided to the Bank in accordance with
clause 8.1.5;

 

“Accounting Period” means (a) each financial year of the
AMPNI Borrower and (b) [each][the first] half-year of each financial year of
the AMPNI Borrower, for which Accounting Information is required to be
delivered pursuant to this Agreement;

 

“Accounts” means, together, the Aegean Hellas Operating
Account, the Fos Operating Account, the Manager’s Operating Account, the AMPNI
Operating Account, the AMPSA Operating Account, the Overdraft Account and the
Cash Collateral Account and:

 

(a)           in relation to m.v. Aegean Hellas,
it means the Aegean Hellas Operating Account;

 

(b)           in relation to m.v. Fos, it means the Fos Operating Account; or

 

(c)           in relation to each Ship
(other than the two Ships referred to in paragraphs (a) and (b) above), it
means the Manager’s Operating Account,

 

and “Account” means any of them;

 

1

 

“Actual Exposure” means, at any relevant time, the aggregate
of:

 

(a)           the
Loan less any Pre-delivery Advances in respect of a Newbuilding which has not
yet been delivered to the relevant Newbuilding Owner; and

 

(b)           the
Outstanding Amounts for all L/Cs (subject to clause 2.18); and

 

(c)           any
undrawn and available amount of the Overdraft Facility taken into account by
the Borrowers for the purpose of complying with clause 8.6.1(c) at the then
latest time when compliance was tested by the Bank;

 

“Additional  Contract A” means the memorandum of agreement or shipbuilding
contract made or (as the context may require) to be made between the Additional
Owner A and the Additional Ship Seller A in form and substance in all respects
acceptable to the Bank and as contemplated by clause 14.2.1, relating to the
sale (and/or construction) by the Additional Ship Seller A, and the purchase by
the Additional Owner A, of the Additional Ship A;

 

“Additional  Contract B” means the memorandum of agreement or
shipbuilding contract made or (as the context may require) to be made between
the Additional Owner B and the Additional Ship Seller B in form and substance
in all respects acceptable to the Bank and as contemplated by clause 14.2.1,
relating to the sale (and/or construction) by the Additional Ship Seller B, and
the purchase by the Additional Owner B, of the Additional Ship B;

 

“Additional  Contract C” means the memorandum of agreement or
shipbuilding contract made or (as the context may require) to be made between
the Additional Owner C and the Additional Ship Seller C in form and substance
in all respects acceptable to the Bank and as contemplated by clause 14.2.1,
relating to the sale (and/or construction) by the Additional Ship Seller C, and
the purchase by the Additional Owner C, of the Additional Ship C;

 

“Additional  Contracts” means, together the Additional Contract A, the
Additional Contract B and the Additional Contract C and “Additional
Contract” means any of them;

 

“Additional Cost” means, in relation to any period, a
percentage calculated for such period at an annual rate determined in the
manner set out in schedule 9;

 

“Additional Mortgage Date” means, in relation to each
Additional Owner and the relevant Ship, the latest date when the Borrowers
shall deliver the documents and evidence specified in clause 8.1.15(b) in connection
with such Additional Ship in accordance with the terms of such clause
8.1.15(b);

 

“Additional Owner”
means:

 

(a)           in
relation to Additional Ship A, the Additional Owner A;

 

(b)           in
relation to Additional Ship B, the Additional Owner B; or

 

(c)           in relation
to Additional Ship C, the Additional Owner C,

 

and “Additional Owners”
means any or all of them;

 

“Additional  Owner A” means [•] of [•] or such other
member of the Group advised by the Borrowers to the Bank in writing and
accepted by the Bank in writing (no later than forty (40) Banking Days prior to
the Delivery Date of the Additional Ship A) to be the purchaser of such Ship
pursuant to the Additional Contract A, and includes its successors in title;

 

“Additional  Owner B” means [•] of [•] or such other
member of the Group advised by the Borrowers to the Bank in writing and
accepted by the Bank in writing (no later than forty (40) Banking Days prior to
the Delivery Date of the Additional Ship B) to be the purchaser of such Ship
pursuant to the Additional Contract B, and includes its successors in title;

 

2

 

“Additional  Owner C” means [•] of [•] or such other
member of the Group advised by the Borrowers to the Bank in writing and
accepted by the Bank in writing (no later than forty (40) Banking Days prior to
the Delivery Date of the Additional Ship C) to be the purchaser of such Ship
pursuant to the Additional Contract C, and includes its successors in title;

 

“Additional  Ship” means:

 

(a)           in
relation to Additional Owner A, the Additional Ship A;

 

(b)           in
relation to Additional Owner B, the Additional Ship B; or

 

(c)           in
relation to Additional Owner C, the Additional Ship C,

 

and “Additional  Ships” means any or all of them;

 

“Additional  Ship A” means a motor vessel of the Approved Type nominated
in writing by the Borrowers to the Bank not less than thirty (30) Banking Days
before its proposed Delivery Date and approved in writing by the Bank not later
than five (5) Banking Days after receipt by the Bank of such nomination, to be
purchased by the Additional Owner A pursuant to the Additional Contract A and
to be registered on its Delivery Date in the ownership of the Additional Owner
A under the laws and the flag of the relevant Flag State through the relevant Registry;

 

“Additional  Ship B” means a motor vessel of the Approved Type nominated
in writing by the Borrowers to the Bank not less than thirty (30) Banking Days
before its proposed Delivery Date and approved in writing by the Bank not later
than five (5) Banking Days after receipt by the Bank of such nomination, to be
purchased by the Additional Owner B pursuant to the Additional Contract B and
to be registered on its Delivery Date in the ownership of the Additional Owner
B under the laws and the flag of the relevant Flag State through the relevant
Registry;

 

“Additional  Ship C” means a motor vessel of the Approved Type nominated
in writing by the Borrowers to the Bank not less than thirty (30) Banking Days
before its proposed Delivery Date and approved in writing by the Bank not later
than five (5) Banking Days after receipt by the Bank of such nomination, to be
purchased by the Additional Owner C pursuant to the Additional Contract C and
to be registered on its Delivery Date in the ownership of the Additional Owner
C under the laws and the flag of the relevant Flag State through the relevant
Registry;

 

“Additional Ship Seller” means:

 

(a)           in
relation to Additional Ship A, the Additional Ship Seller A;

 

(b)           in
relation to Additional Ship B, the Additional Ship Seller B; or

 

(c)           in
relation to Additional Ship C, the Additional Ship Seller C,

 

and “Additional Ship Sellers” means any or all of them;

 

“Additional Ship Seller A”
means the company which is a party to the Additional Contract A as seller
and/or builder (as the case may be) of the Additional Ship A and includes its
successors in title;

 

“Additional Ship Seller B”
means the company which is a party to the Additional Contract B as seller
and/or builder (as the case may be) of the Additional Ship B and includes its
successors in title;

 

“Additional Ship Seller C”
means the company which is a party to the Additional Contract C as seller
and/or builder (as the case may be) of the Additional Ship C and includes its
successors in title;

 

3

 

“Advances” means each borrowing of a proportion of the
Commitment by the Borrowers or (as the context may require) the principal
amount of such borrowing, it includes (i) each Amorgos Pre-delivery Advance,
(ii) each Kimolos Pre-delivery Advance, (iii) each Milos Pre-delivery Advance,
(iv) each Mykonos Pre-delivery Advance, (v) each Syros Pre-delivery Advance and
(vi) each of the five (5) Delivery Advances (ie one for each Newbuilding), and:

 

(a)           in
relation to the Amorgos Ship and the Amorgos Tranche, it means the Amorgos
Advances;

 

(b)           in
relation to the Kimolos Ship and the Kimolos Tranche, it means the Kimolos
Advances;

 

(c)           in
relation to the Milos Ship and the Milos Tranche, it means the Milos Advances;

 

(d)           in
relation to the Mykonos Ship and the Mykonos Tranche, it means the Mykonos
Advances; or

 

(e)           in
relation to the Syros Ship and the Syros Tranche, it means the Syros Advances,

 

and “Advance” means any of them;

 

“Aegean Hellas  Operating Account”
means an interest bearing Dollar account of the Owner of the motor vessel Aegean Hellas opened or (as the context may require) to be
opened by such Owner with the Bank and includes any sub-accounts thereof and
any other account designated in writing by the Bank to be an Aegean Hellas
Operating Account for the purposes of this Agreement;

 

“Aggregate
Liabilities” means, at any relevant time, the aggregate of the Loan
and the Outstandings;

 

“Amorgos Advances” means, together, the Amorgos Pre-delivery
Advances and the Delivery Advance in respect of the Amorgos Ship and “Amorgos Advance” means any of them;

 

“Amorgos  Owner” means
Amorgos Maritime Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 and includes its successors in title;

 

“Amorgos Pre-delivery Advances” means, together, the First
Advance, the Second Advance and the Third Advance in respect of the Amorgos
Ship and “Amorgos Pre-delivery Advance” means any
of them;

 

“Amorgos  Ship” means the
(approximately) 3,800 dwt double-hull oil product tanker known on the date of
this Agreement as Hull No. DN-3500-4 and under construction by the Builders, to
be constructed and sold by the Builders to the Amorgos Owner pursuant to the
relevant Contract and to be registered on its Delivery Date in the ownership of
the Amorgos Owner through the relevant Registry under the laws and flag of the
relevant Flag State;

 

“Amorgos Tranche” means a tranche of the Term Loan of up to
Six million six hundred and eighty thousand Dollars ($6,680,000) comprising,
and to be drawn down in, four (4) Advances (being the Amorgos Advances);

 

“AMPNI Borrower” means Aegean Marine Petroleum Network Inc.
of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall
Islands MHJ96960 and includes its successors in title;

 

“AMPNI  Operating Account”
means an interest bearing Dollar account of the AMPNI Borrower opened or (as
the context may require) to be opened by the AMPNI Borrower with the Bank and
includes any sub-accounts thereof and any other account designated in writing
by the Bank to be an AMPNI Operating Account for the purposes of this
Agreement;

 

4

 

“AMPSA Borrower” means Aegean Marine Petroleum S.A. of 80
Broad Street, Monrovia, Republic of Liberia and includes its successors in
title;

 

“AMPSA  Operating Account”
means an interest bearing Dollar account of the AMPSA Borrower opened or (as
the context may require) to be opened by the AMPSA Borrower with the Bank and
includes any sub-accounts thereof and any other account designated in writing
by the Bank to be an AMPSA Operating Account for the purposes of this
Agreement;

 

“Applicable Accounting Principles” means, at any relevant
time, the most recent and up to date [US GAAP];

 

“Approved Type” means a double-hull product tanker which is:

 

(a)           of up
to (approximately) 10,000 dwt; and

 

(b)           otherwise
in all respects (including, without limitation, as to its physical condition,
flag, classification or employment) acceptable to the Bank in its sole
discretion;

 

“Assignee” has the meaning ascribed thereto in
clause 15.3;

 

“Availability Period”
means, in relation to each of the Overdraft Facility and the Guarantee
Facility, the period commencing on the date of this Agreement and ending on the
earlier of:

 

(a)           the
date falling one (1) month before the Final Maturity Date (or such later date
as the Bank may agree with the Borrowers); and

 

(b)           the
date on which the Bank’s obligation to make the Overdraft Facility or (as the
case may be) the Guarantee Facility available is fully cancelled or terminated
under the terms of this Agreement; and

 

(c)           the
date when the Term Loan is repaid or prepaid in full;

 

“Bank” means The Royal Bank of Scotland plc whose registered
office is at 36 St. Andrew Square, Edinburgh EH2 2YB, Scotland acting for the
purposes of this Agreement through its branch at 45 Akti Miaouli, 185 36
Piraeus, Greece (or of such other address as may last have been notified to the
Borrowers pursuant to clause 15.6) and includes its successors in title,
Assignees and/or Transferees;

 

“Banking Day”
means a day on which banks are open in London and Greece and, in respect of a
day on which payment is required to be made or other dealing is due to take
place under this Agreement:

 

(a)           in
Dollars, a day on which banks are open in New York City;

 

(b)           in an
Optional Currency (other than euros), a day on which banks are open in New York
City and the principal financial centre of the country of that Optional
Currency; and

 

(c)           in
euros, a Target Day,

 

or any
other relevant place of payment under clause 6;

 

“Beneficiary”
means, in relation to an L/C, the person in whose favour the L/C has been
issued under this Agreement;

 

“Borrowed Money” means Indebtedness incurred 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

 

5

 

(otherwise
than on a non-recourse basis), (v) deferred payments for assets or services
acquired, (vi) finance leases and hire purchase contracts, (vii) swaps, forward
exchange contracts, futures and other derivatives, (viii) any other transaction
(including without limitation forward sale or purchase agreements) having the
commercial effect of a borrowing or raising of money or of any of (ii) to (vii)
above and (ix) guarantees in respect of Indebtedness of any person falling
within any of (i) to (viii) above;

 

“Borrowers” mean, together, the AMPNI Borrower and the AMPSA
Borrower and “Borrower” means either or both of
them;

 

“Borrowers’ Security Documents” means, at any relevant time,
such of the Security Documents as shall have been executed by either of the
Borrowers at such time;

 

“Builders” means, together, FSIGC and FSS and “Builder” means either of them;

 

“Cash Collateral Account”
means an interest bearing account of the AMPSA Borrower opened or (as the
context may require) to be opened by the AMPSA Borrower with the Bank and
includes any sub-accounts thereof and any other account designated in writing
by the Bank to be a Cash Collateral Account for the purposes of this Agreement;

 

“Casualty Amount” means, in relation to each Ship, Two
hundred and fifty thousand Dollars ($250,000) or the equivalent in any other
currency;

 

“Classification” means:

 

(a)           in
relation to each Newbuilding, the classification “+A1 OIL CARRIER (E) ESP,
FP.<60oC, + ACC + AMS” with the relevant Classification Society;
or

 

(b)           in
relation to each Ship (other than the Newbuildings), the highest possible
classification for a vessel of such Ship’s type with the relevant
Classification Society,

 

or, in
each case, such other classification as the Bank shall, at the request of an
Owner, have agreed in writing shall be treated as the Classification in
relation to such Owner’s Ship for the purposes of the relevant Ship Security
Documents;

 

“Classification Society” means, in relation to each Ship,
such classification society (being a member of the International Association of
Classification Societies (IACS)) which the Bank shall, at the request of an
Owner, have agreed in writing shall be treated as the Classification Society in
relation to such Owner’s Ship for the purposes of the relevant Ship Security
Documents;

 

“Code” means the International Management Code for the Safe
Operation of Ships and for Pollution Prevention constituted pursuant to
Resolution A. 741(18) of the International Maritime Organisation and
incorporated into the International Convention on Safety of Life at Sea 1974 (as
amended) and includes any amendments or extensions thereto and any regulation
issued pursuant thereto;

 

“Collateral Mortgage Date” means, in relation to each
Collateral Owner and the Ship owned by it, the latest date when the Borrowers
shall deliver the documents and evidence specified in clause 8.1.15(a) in
connection with such Collateral Ship in accordance with the terms of such
clause 8.1.15(a);

 

“Collateral Owner”
means:

 

(a)           in
relation to Collateral Ship A, the Collateral Owner A;

 

(b)           in
relation to Collateral Ship B, the Collateral Owner B; or

 

(c)           in
relation to Collateral Ship C, the Collateral Owner C,

 

and “Collateral Owners”
means any or all of them;

 

6

 

“Collateral Owner A”
means Baldwin Management Co. of [•], Marshall Islands and includes its successors in title;

 

“Collateral Owner B”
means Aegean VII Shipping Ltd. of [•], Malta and includes its successors in title;

 

“Collateral Owner C”
means Venus Holding Company of Marshall Islands and includes its successors in
title;

 

“Collateral Ship”
means:

 

(a)           in
relation to Collateral Owner A, the Collateral Ship A;

 

(b)           in
relation to Collateral Owner B, the Collateral Ship B;

 

(c)           in
relation to Collateral Owner C, the Collateral Ship C;

 

and “Collateral Ships”
means any or all of them;

 

“Collateral Ship A”
means the Ship owned by the Collateral Owner A, as described in more detail in
row 17 of Part B of schedule 3;

 

“Collateral Ship B”
means the Ship owned by the Collateral Owner B, as described in more detail in
row 18 of Part B of schedule 3;

 

“Collateral Ship C”
means the Ship owned by the Collateral Owner C, as described in more detail in
row 19 of Part B of schedule 3;

 

“Commitment” means the amount which the Bank has agreed to
lend to the Borrowers under clause 2.1 as reduced by any relevant term of
this Agreement;

 

“Compulsory Acquisition” means, in relation to a Ship,
requisition for title or other compulsory acquisition, requisition,
appropriation, expropriation, deprivation, forfeiture or confiscation for any
reason of that Ship by any Government Entity or other competent authority,
whether de jure or de facto, but shall exclude requisition for use or hire not
involving requisition of title;

 

“Consolidated  Book Net Worth”
means the aggregate of the amounts paid-up or credited as paid-up on the AMPNI
Borrower’s issued share capital and the amount of the consolidated capital and
revenue reserves of the Group (including any share premium account, capital
redemption reserve fund and any credit balance on the consolidated profit and
loss account of the Group) all as shown by the latest consolidated balance
sheet and profit and loss account of the Group delivered under this Agreement
but after:

 

(a)           deducting
any debit balance on such consolidated profit and loss account;

 

(b)           deducting
any amount shown in such consolidated balance sheet in respect of goodwill
(including good will arising on consolidation) and other intangible assets;

 

(c)           deducting
(so far as not otherwise excluded as attributable to minority interests) a sum
equal to the aggregate of the amount by which the book value of any fixed
assets of any member of the Group has been written up after 31 December 2006
(or, in the case of a company becoming a subsidiary after that date, the date
on which that company became a subsidiary) by way of revaluation.  For the purposes of this paragraph (c)
any increase in the book value of any fixed asset resulting from its transfer
by one member of the Group to another member of the Group shall be deemed to
result from a writing up of its book value by way of revaluation;

 

(d)           excluding
amounts set aside for taxation as at the date of such balance sheet and making
such adjustments as may be appropriate in respect of any significant additional
taxation

 

7

 

expected to
result from transactions carried out by any member of the Group after such date
and not reflected in that balance sheet;

 

(e)           deducting
all amounts attributable to minority interests in Subsidiaries;

 

(f)            making
such adjustments as may be appropriate in respect of any variation in the
amount of such paid up share capital or any such reserves after the date of the
relevant balance sheet (but so that no such adjustment shall be made in respect
of any variation in profit and loss account except to the extent of any profit
or loss, calculated on a cumulative basis, recorded in the consolidated profit
and loss account of the Group delivered to the Bank before the date of this
Agreement, or under clause 8.1.5 in respect of any subsequent period);

 

(g)           making
such adjustments as may be appropriate in respect of any distribution declared,
recommended or made by any member of the Group (otherwise than attributable
directly or indirectly to the AMPNI Borrower) out of profits earned up to and
including the date of the latest audited balance sheet of that member of the
Group to the extent that such distribution is not provided for in that balance
sheet;

 

(h)           making
such adjustments as may be appropriate in respect of any variation in the
interests of the AMPNI Borrower in its Subsidiaries since the date of the
latest consolidated balance sheet of the Group;

 

(i)            if the calculation is required for the purpose of or in connection
with a transaction under or in connection with which any company is to become
or cease to be a Subsidiary of the AMPNI Borrower, making all such adjustments
as would be appropriate if that transaction had been carried into effect; and

 

(j)            making
such adjustments as may be appropriate in the opinion of the Bank in order that
the above amounts are calculated in accordance with the Applicable Accounting
Principles;

 

“Consolidated Current Assets” means, as of the last day of an
Accounting Period, the aggregate of the cash and marketable securities, trade
and other receivables from persons other than a member of the Group realisable
within one (1) year, inventories and prepaid expenses which are to be charged
to income within one (1) year less any doubtful debts and any discounts or
allowances given, in each case in relation to the Group, as stated in the then
most recent Accounting Information relevant to such Accounting Period;

 

“Consolidated Debt” means, as of the last day of an
Accounting Period, the aggregate amount of Debt owed by the members of the
Group (other than any Debt owing by any member of the Group to another member
of the Group), as stated in the then most recent Accounting Information
relevant to such Accounting Period;

 

“Consolidated Leverage Ratio” means, as of the last day of an
Accounting Period, the ratio of (a) the Consolidated Debt to (b) the
Consolidated Total Assets, as stated in the then most recent Accounting
Information relevant to such Accounting Period;

 

“Consolidated Liquid Funds” means, as of the last day of an
Accounting Period or at any other relevant time:

 

(a)           cash
of any member of the Group in bank accounts held with the Bank which is free
from any Encumbrances (other than Permitted Encumbrances) but excluding:

 

(i)    any amounts
required by and maintained by the Borrowers in the AMPNI Operating Account for
the purposes of compliance with, clause 8.1.14; and

 

(ii)   any amounts
standing to the credit of the Cash Collateral Account;

 

8

 

(b)   the undrawn
amount of any committed overdraft facilities available to any member of the
Group with a remaining tenor of no less than [six (6)] months (including the
Overdraft Facility); and

 

(c)   any
instrument, investment or security of any member of the Group approved by the
Bank in its sole discretion which is free from Encumbrances,

 

in each
case, as stated in the then most recent Accounting Information relevant to such
Accounting Period and/or as calculated by the Bank in its sole discretion by
reference to any other information available to the Bank at the relevant time
of calculation;

 

“Consolidated Tangible Fixed Assets” means, as of the last
day of an Accounting Period, the aggregate of (a) the Fleet Market Value and
(b) the book value (less depreciation computed in accordance with the
Applicable Accounting Principles consistently applied) on a consolidated basis
of all other tangible fixed assets of the Group (i.e. excluding Fleet Vessels),
as stated in the then most recent Accounting Information relevant to such
Accounting Period;

 

“Consolidated Total Assets” means, in respect of an
Accounting Period, the aggregate of Consolidated Current Assets and
Consolidated Tangible Fixed Assets;

 

“Construction Cost” means, in relation to each Newbuilding,
the aggregate of (a) the Contract Price for that Newbuilding and (b) the
Supervision Cost for that Newbuilding and “Construction Costs”
means any or all of them;

 

“Contract” means, in relation to each Newbuilding, the
shipbuilding contract dated 6 February 2005, as amended by addendum No. 1 dated
31 March 2005, addendum No. 2 dated 27 April 2005 and addendum No. 3 dated 27
May 2005, all made between the Builders and the Newbuilding Owner relevant to
such Newbuilding as may be further amended, supplemented, varied, replaced or
novated from time to time with the prior written consent of the Bank, relating
to the construction and sale by the Builders, and the purchase by such
Newbuilding Owner, of the relevant Newbuilding and “Contracts”
means any or all of them;

 

“Contract Assignment Consent and Acknowledgement” means, in
relation to each Newbuilding, the acknowledgement of notice of, and consent to,
the assignment in respect of the relevant Contract to be given by the Builders
in the form scheduled to the relevant Pre-delivery Security Assignment and “Contract Assignment Consents and Acknowledgements” means any
or all of them;

 

“Contract Price” means, in relation to each Newbuilding, the
purchase price for such Newbuilding under the relevant Contract, being Six
million eight hundred thousand Dollars ($6,800,000) or such other lesser sum in
Dollars as may be payable by the relevant Newbuilding Owner to the Builders
pursuant to the relevant Contract as the purchase price for the relevant
Newbuilding and “Contract Prices” means any or all
of them;

 

“Corporate Guarantee” means the corporate guarantee executed
or (as the context may require) to be executed by the Corporate Guarantor in
favour of the Bank in such form as the Bank may in its sole discretion require;

 

“Corporate Guarantor” means Aegean Bunkering Services Inc. of
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960 and includes its successors in title;

 

“Credit Support Document” has the meaning given to that
expression in section 14 of the Master Swap Agreement and as set out in
paragraph (f) of Part 4 of the Schedule to the Master Swap Agreement;

 

“Credit Support Provider” means any person defined as such in
the Master Swap Agreement pursuant to section 14 of the Master Swap
Agreement;

 

9

 

“Customer” means
each person from whom Receivables are due to the AMPSA Borrower at any relevant
time and “Customers” means any or all of them;

 

“Debt” means, in relation to any member of the Group (the “debtor”):

 

(a)           Borrowed
Money of the debtor;

 

(b)           liability
for any credit to the debtor from a supplier of goods or services or under any
instalment purchase or payment plan or other similar arrangement;

 

(c)           contingent
liabilities of the debtor (including without limitation any taxes or other
payments under dispute) which have been or, under the Applicable Accounting
Principles consistently applied, should be recorded in the notes to the
Accounting Information;

 

(d)           deferred
tax of the debtor; and

 

(e)           liability
under a guarantee, indemnity or similar obligation entered into by the debtor
in respect of a liability of another person who is not a member of the Group
which would fall within (a) to (d) above if the references to the debtor
referred to the other person;

 

“Deed of Covenant” means, in relation to each Ship, the first
priority deed of covenant and/or general assignment (as the case may be)
collateral to the Mortgage for that Ship executed or (as the context may
require) 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 “Deeds of
Covenant” means any or all of them;

 

“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” means:

 

(a)           in
relation to each Newbuilding, the delivery of such Newbuilding by the Builders
to, and the acceptance of such Newbuilding by, the relevant Newbuilding Owner
pursuant to the relevant Contract; or

 

(b)           in
relation to each Additional Ship, the delivery of such Additional Ship by the
relevant Additional Ship Seller to, and the acceptance of such Additional Ship
by, the relevant Additional Owner pursuant to the relevant Additional Contract;

 

“Delivery Advance” means, in relation to each Newbuilding, an
Advance of up to Three million seven hundred and fifty seven thousand five
hundred Dollars ($3,757,500) made or (as the context may require) to be made
available to the Borrowers for the purpose of (a) financing or refinancing in
part the payment of the final instalment of the Contract Price for the relevant
Newbuilding and the final instalment of the Supervision Cost for the relevant
Newbuilding, each falling due on the Delivery Date for the relevant Newbuilding
and (b) (as to the balance) refinancing the payment of any other part of the
Construction Cost for the relevant Newbuilding previously made by the relevant
Newbuilding Owner and not already financed under the terms of this Agreement
and “Delivery Advances” means any or all of
them;

 

“Delivery Date” means, in relation to each Newbuilding or
Additional Ship, the date upon which its Delivery occurs;

 

“Direct Credit
Substitute” means a letter of credit or bank guarantee issued or to
be issued by the Bank in favour of a Beneficiary in such form as is agreed
between the Bank and the AMPSA Borrower which is required by the AMPSA Borrower
in the ordinary course of the AMPSA Borrower’s business and which is neither a
Documentary L/C nor a Transaction Related Standby L/C;

 

10

 

“DOC” means a document of compliance issued to an Operator in
accordance with rule 13 of the Code;

 

“Documentary L/C” means a letter of credit issued or to be
issued by the Bank in favour of a Beneficiary in such form as is agreed between
the Bank and the AMPSA Borrower which directly relates to the purchase of Oil
Products by the AMPSA Borrower and which imposes on the Bank a primary obligation
to pay upon presentation of specified documents as specified in such letter of
credit;

 

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

 

“Drawdown Date” means, in relation to an Advance, any date,
being a Banking Day falling during the relevant Drawdown Period, on which the
Borrowers request that Advance to be made as specified in the relevant Drawdown
Notice (whether or not such Advance is actually made or not);

 

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

 

“Drawdown Period” means, in relation to an Advance, the
period commencing on the date of this Agreement and ending on the relevant
Termination Date or the period ending on such earlier date (if any) on which
(a) the aggregate amount of all Advances is equal to the Commitment or (b) the
Commitment is reduced to zero pursuant to clauses 4.3, 10.2 or 12 or any
other relevant term of this Agreement or (c) Delivery of the Newbuilding
relevant to such Advance occurs;

 

“Earnings” means, in relation to a Ship, all moneys
whatsoever from time to time due or payable to the Owner of such Ship during
the Security Period arising out of the use or operation of such Ship including
(but without limiting the generality of the foregoing) all freight, hire and
passage moneys, income arising out of pooling arrangements, compensation
payable to such Owner in the event of requisition of such Ship for hire,
remuneration for salvage or towage services, demurrage and detention moneys and
damages for breach (or payment for variation or termination) of any
charterparty or other contract for the employment of such Ship;

 

“EMU Legislation”
means legislative measures of the Council of the European Union for the
introduction of, changeover to, or operation of, a single or unified European
Currency being part of the implementation of the Third Stage;

 

“Encumbrance” means any mortgage, charge (whether fixed or
floating), pledge, lien, hypothecation, assignment, trust arrangement or
security interest or other encumbrance of any kind securing any obligation of
any person or any type of preferential arrangement (including without
limitation title transfer and/or retention arrangements) having a similar
effect;

 

“Environmental Affiliate” means any agent or employee of any
Owner or any other Relevant Party or any person having a contractual
relationship with any Owner or any other Relevant Party in connection with any
Relevant Ship or its operation or the carriage of cargo and/or passengers
thereon and/or the provision of goods and/or services on or from any Relevant
Ship;

 

“Environmental Approval” means any consent, authorisation,
licence or approval of any governmental or public body or authorities or courts
applicable to any Relevant Ship or its operation or the carriage of cargo
and/or passengers thereon and/or the provision of goods and/or services on or
from any Relevant Ship required under any Environmental Law;

 

“Environmental Claim” means any and all material enforcement,
clean-up, removal or other governmental or regulatory actions or orders
instituted or completed pursuant to any Environmental Law or any Environmental
Approval together with claims made by any third party

 

11

 

relating
to damage, contribution, loss or injury, resulting from any actual or
threatened emission, spill, release or discharge of a Pollutant from any
Relevant Ship;

 

“Environmental Laws” means all national, international and
state laws, rules, regulations, treaties and conventions applicable to any
Relevant Ship pertaining to the pollution or protection of human health or the
environment including, without limitation, the carriage of Pollutants and
actual or threatened emissions, spills, releases or discharges of Pollutants;

 

“EURIBOR”
means, in respect of any amount outstanding hereunder in euros and in relation
to a particular period, the rate per annum determined by the Bank to be that at
which deposits in euros and in an amount comparable with the amount in relation
to which EURIBOR is to be determined and for a period equal to the relevant
period were being offered by the Bank to prime banks in the European Interbank
Market at or about 11.00 a.m. (Brussels time) on the Quotation Date for such
period;

 

“euro”
and “euros” means, for the time
being, the single currency of Participating Member States as provided in the
EMU Legislation;

 

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

 

“Expiry Date”
means, in relation to an L/C, the expiry date specified in the Issue Request
relating thereto and initially applicable thereto or, as the context may
require, any extended expiry date requested and agreed to by the Bank pursuant
to clause 2.19 and/or clause 2.29 provided that in no circumstances shall the
expiry date of an L/C be a date falling after the Final Maturity Date except in
accordance with clause 2.29;

 

“Final Maturity Date”
means, in relation to the Overdraft Facility and the Guarantee Facility, the
earlier of (a) the date falling twenty four (24) months after the date of this
Agreement and (b) 31 December 2008;

 

“First Advance” means, in relation to each Newbuilding, an
Advance of up to Four hundred and seventeen thousand five hundred Dollars
($417,500) made or (as the context may require) to be made available to the
Borrowers for the purpose of financing or refinancing in part the payment of
the second instalment of the Contract Price for the relevant Newbuilding and
the second instalment of the Supervision Cost for the relevant Newbuilding,
each falling due before the Delivery Date of the relevant Newbuilding as set
out in schedule 4 and “First Advances”
means any or all of them;

 

“First Repayment Date” means, in relation to each Tranche
(and subject to clause 6.3), the date falling three (3) months after the
earlier of (a) the Drawdown Date of the Delivery Advance relevant to such
Tranche and (b) the last day of the Drawdown Period for the Delivery Advance relevant
to such Tranche;

 

“Flag State” means, in relation to each Ship, such state or
territory (if any) specified opposite such Ship’s name in the column headed “Flag State” in Part B of schedule 3 or, in each case, if not
so specified or for any other reason, such other state or territory designated
in writing by the Bank in its absolute discretion, at the request of an Owner
as being the “Flag State” of such Owner’s Ship for the purpose of the Security
Documents;

 

“Fleet Market Value” means, as of the date of calculation,
the aggregate market value of the Fleet Vessels as most recently determined
pursuant to valuations obtained by the Security Agent and made in accordance
with the provisions of clause 8.2.2 of the Agreement (at the expense of
the Borrowers);

 

“Fleet Vessels” means the vessels (including, but not limited
to, the Ships) from time to time owned by the members of the Group and “Fleet Vessel” means any of them;

 

“Fos  Operating Account”
means an interest bearing Dollar account of the Owner of the motor vessel Fos opened or (as the context may require) to be opened by
such Owner with the Bank

 

12

 

and
includes any sub-accounts thereof and any other account designated in writing
by the Bank to be a Fos Operating Account for the purposes of this Agreement;

 

“FSIGC” means Fujian Shipbuilding Industry Group Corporation,
a corporation duly organized and existing under the laws of the People’s
Republic of China, having its registered office at 27 Qunzhong Road, Fuzhou,
Fujian, The People’s Republic of China and includes its successors in title;

 

“FSS” means Fujian Southeast Shipyard, a corporation duly
organized and existing under the laws of the People’s Republic of China, having
its registered office at 7# Jianshe Road, Economic Technical Development Zone
of Fuzhou, Fujian Province, The People’s Republic of China and includes its
successors in title;

 

“Government Entity” means and includes (whether having a
distinct legal personality or not) any national or local government authority,
board, commission, department, division, organ, instrumentality, court or
agency and any association, organisation or institution of which any of the
foregoing is a member or to whose jurisdiction any of the foregoing is subject
or in whose activities any of the foregoing is a participant;

 

“Group” means
the AMPNI Borrower and its Subsidiaries from time to time (including, for the
avoidance of doubt, the AMPSA Borrower, each Owner and the Corporate Guarantor)
and “member of the Group” shall be construed
accordingly;

 

“Guarantee Facility” means the multi-currency revolving
guarantee and letter of credit facility of up to $100,000,000 referred to in
clause 2.11 and made available by the Bank to the Borrowers pursuant to this
Agreement;

 

“Guarantee Facility Commitment” means $100,000,000 or the
equivalent thereof in Optional Currencies as such amount may be reduced or
cancelled by any relevant term of this Agreement;

 

“Indebtedness” means any obligation for the payment or
repayment of money, whether as principal or as surety and whether present or
future, actual or contingent;

 

“Insurance Letter” means, in respect of a Ship, a letter from
the Owner of such Ship in the form set out in schedule 7;

 

“Insurances” means, in relation to a Ship, all policies and
contracts of insurance (which expression includes all entries of that Ship in a
protection and indemnity or war risks association) which are from time to time
during the Security Period in place or taken out or entered into by or for the
benefit of the relevant Owner (whether in the sole name of such Owner, or in
the joint names of such Owner and the Bank or otherwise) in respect of such
Owner’s Ship and her Earnings or otherwise howsoever in connection with such
Ship and all benefits thereof (including claims of whatsoever nature and return
of premiums);

 

“Interest Payment Date” means the last day of an Interest
Period;

 

“Interest Period” means:

 

(a)           in
relation to any Advance or Tranche, each period for the calculation of interest
in respect of such Advance or, as the case may be, Tranche, ascertained in
accordance with clauses 3.2 and 3.3; or

 

(b)           in
relation to the Overdraft, each seven day period commencing on a Wednesday of a
week and ending on the Tuesday of the immediately subsequent week (but, in the
event the date of the first drawing under the Overdraft Facility falls on a day
other than a Wednesday, the first Interest Period thereof shall commence on
such first day of drawing and shall end on the immediately subsequent Tuesday);

 

13

 

“Interest Period Letter” means the letter addressed by the
Borrowers to the Bank, such letter to be substantially in the form set out in
schedule 8;

 

“Iota” means Iota Corporation, a corporation duly organised
and existing under the laws of the Republic of Liberia having its registered
office at 80 Broad Street, Monrovia, Republic of Liberia and includes its
successors in title;

 

“ISPS Code” means the International Ship and Port facility
Security Code constituted pursuant to resolution A.924(22) of the International
Maritime Organization now set out in Chapter XI-2 of the International
Convention for the Safety of Life at Sea 1974 (as amended) as adopted by a
Diplomatic conference of the International Maritime Organisation on Maritime
Security in December 2002 and includes any amendments or extensions thereto and
any regulation issued pursuant thereto;

 

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

 

“Issue Date”
means, in relation to an L/C, the date, being a Banking Day falling within the
Availability Period, on which the Borrowers request that such L/C be issued, as
specified in the Issue Request for such L/C or (as the context may require) the
date on which such L/C is actually issued;

 

“Issue Request”
means, in relation to an L/C, a notice in the form or substantially in the form
of Part B of schedule 1;

 

“Kimolos Advances” means, together, the Kimolos Pre-delivery
Advances and the Delivery Advance in respect of the Kimolos Ship and “Kimolos Advance” means any of them;

 

“Kimolos  Owner” means
Kimolos Maritime Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 and includes its successors in title;

 

“Kimolos  Pre-delivery Advances”
means, together, the First Advance, the Second Advance and the Third Advance in
respect of the Kimolos Ship and “Kimolos Pre-delivery
Advance” means any of them;

 

“Kimolos  Ship” means the
(approximately) 3,800 dwt double-hull oil product tanker known on the date of
this Agreement as Hull No. DN-3500-5 and under construction by the Builders, to
be constructed and sold by the Builders to the Kimolos Owner pursuant to the
relevant Contract and to be registered on its Delivery Date in the ownership of
the Kimolos Owner through the relevant Registry under the laws and flag of the
relevant Flag State;

 

“Kimolos Tranche” means a tranche of the Term Loan of up to
Six million six hundred and eighty thousand Dollars ($6,680,000) comprising,
and to be drawn down in, four (4) Advances (being the Kimolos Advances);

 

“L/C” means:

 

(a)           a
Documentary L/C; or

 

(b)           a
Transaction Related Standby L/C; or

 

(c)           a
Direct Credit Substitute;

 

“L/C Valuation Date”
has the meaning given to that term in clause 2.21;

 

“LIBOR” means:

 

(a)           in
respect of the Term Loan and any amount outstanding hereunder in Dollars or in
an Optional Currency (other than euros) but excluding any amount outstanding
under the

 

14

 

Overdraft, and
in relation to a particular period, the rate per annum determined by the Bank
to be that at which deposits in Dollars or the relevant Optional Currency 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 11:00 a.m.
on the Quotation Date for such period, Provided that
if the Borrowers shall at any time enter into any Transaction(s) under the
Master Swap Agreement in respect of the Term Loan, LIBOR shall (during the
period when any such Transaction(s) are effective and for an amount equal to
the notional amount of such Transaction(s)) be the rate for deposits in Dollars
for a period equivalent to such period at or about 11:00 a.m. on the Quotation
Date for such period as displayed on Reuters page LIBOR01 (British Bankers’
Association Interest Settlement Rates) (or such other page as may replace such
page LIBOR01 on such system or on any other system of the information vendor
for the time being designated by the British Bankers’ Association to calculate
the BBA Interest Settlement Rate (as defined in the British Bankers’
Association’s Recommended Terms and Conditions (“BBAIRS”
terms) dated August, 1996) for Dollars); or

 

(b)           in
respect of the Overdraft and in relation to each Interest Period for the
Overdraft, the rate per annum [(rounded upwards to the nearest one sixteenth
(1/16th) of one per cent (1%))] quoted by the Bank to the Borrowers
as “LIBOR” for seven-day Dollar deposits at or about [•] a.m. on the first day of such Interest Period;

 

“Listing” means the successful listing of all the shares in
the AMPNI Borrower on the New York Stock Exchange;

 

“Listing Date” means the date when the Listing has taken
place;

 

“Loan” means the aggregate principal amount owing to the Bank
under this Agreement (including, for the avoidance of doubt, the Overdraft) but
excluding the Outstandings at any relevant time;

 

“Management Agreement” means, in relation to each Ship, the
management agreement made or (as the context may require) to be made between
the relevant Owner and the relevant Manager in a form previously approved in
writing by the Bank, providing (inter alia) for
the relevant Manager to manage that Ship and “Management
Agreements” means any or all of them;

 

“Manager”:

 

(a)           in
relation to each Ship (other than the motor vessels Aegean
Hellas and Fos), means
Aegean Bunkering Services Inc. of Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro, Marshall Islands MH96960; or

 

(b)           in
relation to each of the motor vessels Aegean Hellas
and Fos, means Aegean Shipping Management
S.A. of 80 Broad Street, Monrovia, Republic of Liberia,

 

or, in
each such case, any other person appointed by the relevant Owner, with the
prior written consent of the Bank, as the manager of such Ship and, in each
such case, includes their respective successors in title;

 

“Manager’s  Operating Account”
means an interest bearing Dollar account of the Corporate Guarantor opened or
(as the context may require) to be opened by the Corporate Guarantor with the
Bank and includes any sub-accounts thereof and any other account designated in
writing by the Bank to be a Manager’s Operating Account for the purposes of this
Agreement;

 

“Manager’s Undertaking” means, in relation to each Ship, the
first priority undertaking and assignment in relation to that Ship executed or
(as the context may require) to be executed by the relevant Manager in favour
of the Bank in such form as the Bank may require in its sole discretion and “Manager’s Undertakings” means any or all of them;

 

15

 

“Margin” means:

 

(a)           in
relation to the Term Loan, one point one five per cent (1.15%) per annum; or

 

(b)           in
relation to the Overdraft, one point two five per cent (1.25%) per annum;

 

“Master Agreement Security Deed” means the security deed
executed or (as the context may require) to be executed by the Borrowers in
favour of the Bank in the form set out in schedule 6;

 

“Master Swap Agreement” means the agreement made between the
Bank and the Borrowers dated as of [·] 2006 comprising an ISDA Master Agreement, a schedule thereto (each
in the form set out in schedule 5 and any Confirmations (as defined therein)
supplemental thereto;

 

“Milos Advances” means, together, the Milos Pre-delivery
Advances and the Delivery Advance in respect of the Milos Ship and “Milos Advance” means any of them;

 

“Milos  Owner” means
Milos Maritime Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 and includes its successors in title;

 

“Milos  Pre-delivery Advances”
means, together, the First Advance, the Second Advance and the Third Advance in
respect of the Milos Ship and “Milos Pre-delivery Advance”
means any of them;

 

“Milos  Ship” means the
(approximately) 3,800 dwt double-hull oil product tanker known on the date of
this Agreement as Hull No. DN-3500-1 and under construction by the Builders, to
be constructed and sold by the Builders to the Milos Owner pursuant to the
relevant Contract and to be registered on its Delivery Date in the ownership of
the Milos Owner through the relevant Registry under the laws and flag of the
relevant Flag State;

 

“Milos Tranche” means a tranche of the Term Loan of up to Six
million six hundred and eighty thousand Dollars ($6,680,000) comprising, and to
be drawn down in, four (4) Advances (being the Milos Advances);

 

“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 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;

 

“Mortgage” means, in relation to each Ship, the first
priority or (as the case may be) first preferred mortgage of that Ship executed
or (as the context may require) 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 “Mortgages” means any or all of them;

 

“Mortgaged Ship” means, at any relevant time, any Ship which
is at such time subject to a Mortgage and/or the Earnings, Insurances and
Requisition Compensation of which are subject to an Encumbrance pursuant to the
relevant Ship Security Documents and a Ship shall, for the purposes of this
Agreement, be deemed to be a Mortgaged Ship as from whichever shall be the earlier
of (a) the date that the Deed of Covenant for such Ship shall have been
executed in accordance with this Agreement and (b) the date that the Mortgage
of that Ship shall have been executed and registered in accordance with this
Agreement and (c) (in the case of a Newbuilding only) the Drawdown Date of the
Delivery Advance for such Newbuilding, until whichever shall be the earlier of
(i) the payment in full of the amount (if any) required to be paid by the Bank
pursuant to clause 4.3 following the Total Loss of such Ship and (ii) the
date on which all moneys owing under the Security Documents have been repaid in
full;

 

16

 

“Mykonos Advances” means, together, the Mykonos Pre-delivery
Advances and the Delivery Advance in respect of the Mykonos Ship and “Mykonos Advance” means any of them;

 

“Mykonos  Owner” means
Mykonos Maritime Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 and includes its successors in title;

 

“Mykonos  Pre-delivery Advances”
means, together, the First Advance, the Second Advance and the Third Advance in
respect of the Mykonos Ship and “Mykonos Pre-delivery
Advance” means any of them;

 

“Mykonos  Ship” means the
(approximately) 3,800 dwt double-hull oil product tanker known on the date of
this Agreement as Hull No. DN-3500-7 and under construction by the Builders, to
be constructed and sold by the Builders to the Mykonos Owner pursuant to the
relevant Contract and to be registered on its Delivery Date in the ownership of
the Mykonos Owner through the relevant Registry under the laws and flag of the
relevant Flag State;

 

“Mykonos Tranche” means a tranche of the Term Loan of up to
Six million six hundred and eighty thousand Dollars ($6,680,000) comprising,
and to be drawn down in, four (4) Advances (being the Mykonos Advances);

 

“Newbuilding Owner” means:

 

(a)           in
relation to the Amorgos Ship, the Amorgos Owner;

 

(b)           in
relation to the Kimolos Ship, the Kimolos Owner;

 

(c)           in
relation to the Milos Ship, the Milos Owner;

 

(d)           in
relation to the Mykonos Ship, the Mykonos Owner; or

 

(e)           in
relation to the Syros Ship, the Syros Owner,

 

and “Newbuilding Owners” means any or all of them;

 

“Newbuildings” means, together, the
Amorgos Ship, the Kimolos Ship, the Milos Ship, the Mykonos Ship and the Syros
Ship and “Newbuilding” means any of them;

 

“Oil Products”
means oil bunkering products and lubricants used in the maritime industry;

 

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

 

“Optional Currency”
means the euro and any other currency (other than Dollars) which is acceptable
to the Bank and is, for the time being, freely transferable and convertible
into Dollars in the London Foreign Exchange Market;

 

“Optional Currency
L/C” means an L/C denominated in an Optional Currency;

 

“Original Dollar Amount”
means, in relation to an L/C, the amount in Dollars which is, or is to be,
outstanding (if denominated in Dollars) or (if denominated in an Optional
Currency) the amount in Dollars which would have been outstanding if such L/C
had first been issued and had remained denominated in Dollars, reduced from
time to time by reductions of such L/C under this Agreement;

 

“Outstanding Amount”
means, in relation to an L/C, the maximum amount (whether of principal or
interest or otherwise) determined by the Bank to be that for which such L/C was
issued and, in relation to an Optional Currency L/C, the amount in Dollars last
determined by the Bank as the Outstanding Amount in accordance with
clause 2.21.2, in each case less the

 

17

 

aggregate amount of all reductions to such L/C which have
been made in accordance with the provisions of clause 2.22;

 

“Outstandings”
means, at any relevant time, the aggregate of (a) the Outstanding Amounts for
all L/Cs and (b) the aggregate principal amount of each outstanding loan made
by the Bank to the Borrowers pursuant to clause 2.23.3;

 

“Overdraft” means, from time to time and
at any relevant time, the outstanding aggregate debit balance on the Overdraft
Account;

 

“Overdraft Account”
means a Dollar [“open current account”] of the AMPSA Borrower opened or (as the
context may require) to be opened by the AMPSA Borrower with the Bank and
includes any sub-accounts thereof and any other account designated in writing
by the Bank to be an Overdraft Account for the purposes of this Agreement;

 

“Overdraft Facility” means the overdraft
facility of up to $50,000,000 referred to in clause 2.7 and made available
by the Bank to the Borrowers pursuant to this Agreement;

 

“Overdraft Facility Limit” means an
amount of up to Fifty million Dollars ($50,000,000) or such other sum as may be
approved in writing by the Bank in its absolute discretion, as such amount may
be reduced or cancelled by any relevant term of this Agreement;

 

“Owner” means
each of the companies listed in Part A of schedule 3 under the column headed “Owner”, each being a company incorporated in such
jurisdiction as specified opposite such company’s name in the column headed “Country of Incorporation” in Part A of schedule 3 and whose
registered office is as specified opposite such company’s name in the column
headed “Registered Office” in Part A of
schedule 3, it includes, for the avoidance of doubt and without limitation,
each Newbuilding Owner, each Collateral Owner and each Additional Owner and, in
relation to a Ship, means the company set out opposite the name of such Ship in
the column headed “Owning Company”
in Part B of schedule 3, it includes each Owner’s successors in title and “Owners” means any or all of them;

 

“Owner’s Guarantee”
means, in relation to each Owner and its Ship, the corporate guarantee executed
or (as the context may require) to be executed by such Owner in favour of the
Bank in such form as the Bank may in its sole discretion require and “Owner’s Guarantees” means any or all of them;

 

“Participating
Member State” means each state so described in any EMU Legislation;

 

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

 

“Permitted Liens” means, in relation to
each Ship, any lien on that Ship 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 relevant Casualty Amount;

 

“Pollutant” means and includes
pollutants, contaminants, toxic substances, oil as defined in the United States
Oil Pollution Act of 1990 and all hazardous substances as defined in the United
States Comprehensive Environmental Response, Compensation and Liability Act
1980;

 

“Pre-delivery Advances”:

 

(a)           in
relation to the Amorgos Ship and the Amorgos
Tranche, means the Amorgos Pre-delivery Advances;

 

(b)           in
relation to the Kimolos Ship and the Kimolos Tranche, means the Kimolos
Pre-delivery Advances;

 

18

 

(c)           in
relation to the Milos Ship and the Milos Tranche, means the Milos Pre-delivery
Advances;

 

(d)           in
relation to the Mykonos Ship and the Mykonos Tranche, means the Mykonos
Pre-delivery Advances; or

 

(e)           in
relation to the Syros Ship and the Syros Tranche,
means the Syros Pre-delivery Advances,

 

and “Pre-delivery Advance” means any of them;

 

“Pre-delivery Security Assignment” means, in relation to each
Newbuilding, the assignment of the Contract, the Refund Guarantees and the
Supervision Contract for such Newbuilding executed or (as the context may
require) to be executed by the relevant Newbuilding Owner in favour of the Bank
in such form as the Bank may in its sole discretion require;

 

“Qualifying
Receivables” means Receivables which, at the relevant time:

 

(a)           have
been assigned to the Bank pursuant to the Receivables Assignment;

 

(b)           have
been included in a Schedule of Receivables submitted to the Bank pursuant to
clause 9.1.1(b) or clause 8.2.7, each together with the copies of
documents,  receipt(s) and invoice(s)
relating to such Receivables required to be submitted pursuant to clause 2.12
and:

 

(c)           (i) in
the case of Receivables due in respect of lubricants, are payable within 60
days of the date of the relevant receipt and are not overdue for payment; and

 

(ii) in the case of Receivables due in respect of oil
bunkering, are payable within 30 days of the date of the relevant receipt and
are not overdue for payment by more than 15 days;

 

“Quotation Date”
means, in relation to any period for which an interest rate is to be determined
under any provision of this Agreement or any other Security Documents:

 

(a)           in the
case of deposits in Dollars or an Optional Currency (other than euros), the day
on which quotations would ordinarily be given by leading banks in the London
Interbank Market for deposits in the relevant currency to which such rate is to
be determined for delivery on the first day of that period; and

 

(b)           in the
case of deposits in euros, the Target Day on which quotations would ordinarily
be given by leading banks in the European Interbank Market for deposits in
euros for delivery on the first day of that period;

 

“Receivables”
means sums due and owing at any relevant time to the AMPSA Borrower by [its]
customers [of the Group] in respect of oil bunkering and/or lubricant sales;

 

“Receivables Assignment”
means an assignment of the Receivables executed or (as the context may require)
to be executed by the AMPSA Borrower in favour of the Bank in such form as the
Bank may in its sole discretion require;

 

“Refund Guarantee Assignment Consent and Acknowledgement”
means, in relation to each Refund Guarantee in respect of a Newbuilding, an
acknowledgement of notice of, and consent to, the assignment in respect of that
Refund Guarantee to be given by the relevant Refund Guarantor who issued such
Refund Guarantee in the form scheduled to the Pre-delivery Security Assignment
for such Newbuilding and “Refund Guarantee
Assignment Consents and Acknowledgements” means any or all of them;

 

“Refund Guarantees” means, in relation to each Newbuilding,
together, each letter of guarantee issued or (as the context may require) to be
issued from time to time by a Refund Guarantor in

 

19

 

respect
of certain of the Builders’ obligations under the Contract relevant to such
Newbuilding, whether pursuant to that Contract or any agreement supplemental to
that Contract, and any extensions, renewals or replacements to or of any such
guarantee(s), in each case in form and substance acceptable to the Bank in its
sole discretion and “Refund Guarantee”
means any of them;

 

“Refund Guarantor” means Bank of Communications, Fuzhou
Branch of Fuzhou, People’s Republic of China and/or any other bank or financial
institution acceptable to the Bank in its sole discretion and appointed by the
Builders to issue a Refund Guarantee and includes their respective successors
in title and “Refund Guarantors” means any or
all of them;

 

“Registry” means, in relation to a Ship, any registrar,
consul, commissioner or representative of the relevant Flag State who is duly
authorised and empowered to register such Ship, the relevant Owner’s title to
such Ship and the relevant Mortgage under the laws and flag of the relevant
Flag State;

 

“Regulatory Agency” means the Government Entity or other
organisation in a Flag State which has been designated by the Government of
that Flag State to implement and/or administer and/or enforce the provisions of
the Code;

 

“Related Company” means:

 

(a)           of the Bank,
means any Subsidiary of the Bank, any company or other entity of which the Bank
is a Subsidiary and any Subsidiary of any such company or entity; or

 

(b)           of a Security
Party, means any company or other entity which is engaged or active in the
bunkering business or
in the provision of bunkering services and which is:

 

(i)    a Subsidiary of
the relevant Security Party; or

 

(ii)   any company or other entity (“holding company”) of which such Security
Party is a Subsidiary; or

 

(iii)  any Subsidiary (other than such Security Party) of any such holding
company;

 

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

 

“Relevant Party” means the Borrowers, the Borrowers’ Related
Companies, the other Security Parties (other than the Builders and the Refund
Guarantors) and their respective Related Companies including, for the avoidance
of doubt, all the members of the Group from time to time;

 

“Relevant Ship” means the Ships and any other vessel from
time to time (whether before or after the date of this Agreement) owned,
managed or crewed by, or chartered to, any Relevant Party;

 

“Repayment Dates” means, in relation to each Tranche (and
subject to clause 6.3), the First Repayment Date in respect such Tranche
and each of the dates falling at three (3) monthly intervals after such First
Repayment Date up to and including the date falling one hundred and forty one
(141) months after such First Repayment Date;

 

“Requisition Compensation” means, in relation to a Ship, all
sums of money or other compensation from time to time payable during the
Security Period by reason of the Compulsory Acquisition of such Ship;

 

“Reset Date”
has the meaning given in clause 2.13;

 

20

 

“Schedule of
Receivables” means a Schedule in the form of a schedule to the
Receivables Assignment (or in such other form as the Bank may approve) and
submitted or to be submitted to the Bank pursuant to clause 2.12 or clause
8.2.7;

 

“Second Advance” means, in relation to each Newbuilding, an
Advance of up to One million two hundred and fifty two thousand five hundred
Dollars ($1,252,500) made or (as the context may require) to be made available
to the Borrowers for the purpose of (a) financing or refinancing in full the
payment of the third instalment of the Contract Price for the relevant
Newbuilding falling due before the Delivery Date of the relevant Newbuilding as
set out in schedule 4 and (b) (as to the balance) refinancing the payment of
any other part of the Construction Cost for the relevant Newbuilding previously
made by the relevant Newbuilding Owner and not already financed or refinanced
under the terms of this Agreement and “Second Advances”
means any or all of them;

 

“Security Documents” means this Agreement, the Master Swap
Agreement, the Master Agreement Security Deed, the Corporate Guarantee, the
Owner’s Guarantees, the Mortgages, the Deeds of Covenant, the Pre-delivery
Security Assignments, the Contract Assignment Consents and Acknowledgements,
the Refund Guarantee Assignment Consents and Acknowledgements, the Supervision
Contract Assignment Consents and Acknowledgements, the Manager’s Undertakings,
the Receivables Assignment, any Schedule of Receivables, and any other
agreement or document as may have been or shall from time to time after the
date of this Agreement be executed to guarantee and/or secure all or any part
of the Aggregate Liabilities, interest thereon and other moneys from time to
time owing by the Borrowers or either of them or any other Security Party
pursuant to this Agreement and/or the Master Swap Agreement and/or any other
Security Document (whether or not any such document also secures moneys from
time to time owing pursuant to any other document or agreement);

 

“Security Party” means each Borrower, the Corporate
Guarantor, each Owner, each Manager, each Refund Guarantor, Iota and each
Builder or any other person who may at any time be a party to any of the
Security Documents (other than the Bank);

 

“Security Period” means the period commencing on the date
hereof and terminating upon the later of (a) the date when there shall be no Aggregate
Liabilities and the security created by the Security Documents shall have been
discharged by payment of all monies payable thereunder, whether actually or
contingently and (b) the latest Expiry Date;

 

“Security Requirement” means the amount in Dollars (as
certified by the Bank whose certificate shall, in the absence of manifest
error, be conclusive and binding on the Borrowers and the Bank) which is, at
any relevant time, One hundred and twenty per cent (120%) of the aggregate of
(a) the Actual Exposure and (b) the cost (if any) (as certified by the Bank
whose certificate shall in the absence of manifest error be conclusive and
binding on the Borrowers and the Bank) of terminating any Transactions entered
into pursuant to the Master Swap Agreement;

 

“Security Value” means the amount in Dollars (as certified by
the Bank whose certificate shall, in the absence of manifest error, be
conclusive and binding on the Borrowers and the Bank) which is, at any relevant
time, the aggregate of (a) the market value of the Mortgaged Ships as most
recently determined in accordance with clause 8.2.2 and (b) the market
value of any additional security for the time being actually provided to the
Bank pursuant to clause 8.2 and (c) the amount standing to the credit of
the AMPNI Operating Account for the purposes of compliance with clause 8.1.14
and (d) any amount standing to the credit of the Cash Collateral Account;

 

“Settlement Amount”
means, in relation to each demand made under an L/C, the amount payable by the
Bank to the Beneficiary in respect of such demand, in Dollars or, in the case
of an L/C issued in an Optional Currency, in such Optional Currency;

 

“Settlement Date”
means, in relation to each demand made under an L/C, the date on which payment
of the Settlement Amount is due to the Beneficiary in respect of the demand;

 

21

 

“Ship” means
each of the motor vessels listed in Part B of schedule 3 under the column
headed “Name/Hull Number”, each registered or
(in the case of each Newbuilding and each Additional Ship) to be registered on
its Delivery Date, in the name and under the ownership of the relevant Owner
under the relevant Flag State, in each case with the IMO number (if any)
specified opposite such vessel’s name in the column headed “IMO No.” in Part B of schedule 3 and it includes, for the
avoidance of doubt and without limitation, each Newbuilding, each Collateral
Ship and each Additional Ship, and “Ships” means
any or all of them;

 

“Ship Security Documents” means, in relation to a Ship, the
Owner’s Guarantee, the Mortgage, the Deed of Covenant and the Manager’s
Undertaking relevant to such Ship;

 

“SMC” means a safety management certificate issued in respect
of a Ship in accordance with rule 13 of the Code;

 

“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;

 

“Supervision Contract” means, in relation to each
Newbuilding, the contract dated 10 February 2005 made between the relevant
Newbuilding Owner and Iota as may be amended, supplemented, varied, replaced or
novated from time to time with the prior written consent of the Bank, relating
to the design, building, supervision, representation, procurement of machinery
and supplies and turn-key delivery of the relevant Newbuilding and “Supervision Contract” means any or all of them;

 

“Supervision Contract Assignment Consent and Acknowledgement”
means, in relation to each Newbuilding, the acknowledgement of notice of, and
consent to, the assignment in respect of the Supervision Contract relevant to
such Newbuilding to be given by Iota in the form scheduled to the Pre-delivery
Security Agreement Assignment for such Newbuilding and “Supervision
Contract Assignment Consent and Acknowledgements” means any or all of
them;

 

“Supervision Cost” means, in relation to each Newbuilding,
One million five hundred and fifty thousand Dollars ($1,550,000) or such other
lesser sum in Dollars as may be payable by the relevant Newbuilding Owner to
Iota pursuant to the Supervision Contract relevant to such Newbuilding, as the
cost for the services provided by Iota thereunder and “Supervision
Costs” means any or all of them;

 

“Syros Advances” means, together, the Syros Pre-delivery
Advances and the Delivery Advance in respect of the Syros Ship and “Syros  Advance” means
any of them;

 

“Syros  Owner” means
Syros Maritime Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH96960 and includes its successors in title;

 

“Syros  Pre-delivery Advances”
means, together, the First Advance, the Second Advance and the Third Advance in
respect of the Syros Ship and “Syros Pre-delivery Advance”
means any of them;

 

“Syros  Ship” means the
(approximately) 3,800 dwt double-hull oil product tanker known on the date of
this Agreement as Hull No. DN-3500-6 and under construction by the Builders, to
be constructed and sold by the Builders to the Syros Owner pursuant to the
relevant Contract and to be registered on its Delivery Date in the ownership of
the Syros Owner through the relevant Registry under the laws and flag of the
relevant Flag State;

 

“Syros Tranche” means a tranche of the Term Loan of up to Six
million six hundred and eighty thousand Dollars ($6,680,000) comprising, and to
be drawn down in, four (4) Advances (being the Syros Advances);

 

22

 

“Target Day”
means a day on which the Trans-European Automated Real Time Gross Settlement
Express Transfer System is open;

 

“Taxes” includes all present and future taxes, levies,
imposts, duties, fees or charges of whatever nature together with interest
thereon and penalties in respect thereof and “Taxation”
shall be construed accordingly;

 

“Termination Date” means:

 

(a)           in
relation to the Amorgos First Advance, [31 January 2007];

 

(b)           in
relation to the Amorgos Second Advance, [31 January 2007];

 

(c)           in
relation to the Amorgos Third Advance, 30 April 2007;

 

(d)           in
relation to the Amorgos Delivery Advance, 30 September 2007;

 

(e)           in
relation to the Kimolos First Advance, [31 January 2007];

 

(f)            in
relation to the Kimolos Second Advance, 15 February 2007;

 

(g)           in
relation to the Kimolos Third Advance, 30 June 2007;

 

(h)           in
relation to the Kimolos Delivery Advance, 30 October 2007;

 

(i)            in
relation to the Milos First Advance, [31 January 2007];

 

(j)            in
relation to the Milos Second Advance, [31 January 2007];

 

(k)           in
relation to the Milos Third Advance, [31 January 2007];

 

(l)            in
relation to the Milos Delivery Advance, 28 February 2007;

 

(m)          in
relation to the Mykonos First Advance, 28 February 2007;

 

(n)           in
relation to the Mykonos Second Advance, 30 June 2007;

 

(o)           in
relation to the Mykonos Third Advance, 10 November 2007;

 

(p)           in
relation to the Mykonos Delivery Advance, 10 March 2008;

 

(q)           in
relation to the Syros First Advance, [31 January 2007];

 

(r)            in
relation to the Syros Second Advance, 31 March 2007;

 

(s)           in
relation to the Syros Third Advance, 14 September 2007; or

 

(t)            in
relation to the Syros Delivery Advance, 31 January 2008,

 

or, in
each such case, such later date as the Borrowers may request and the Bank may
in its absolute discretion consent to;

 

“Term Loan” means the aggregate principal amount owing to the
Bank under this Agreement at any relevant time under the Advances;

 

“Third Advance” means, in relation to each Newbuilding, an
Advance of up to One million two hundred and fifty two thousand five hundred
Dollars ($1,252,500) made or (as the context may require) to be made available
to the Borrowers for the purpose of financing or refinancing in part the
payment of the fourth instalment of the Contract Price for the relevant
Newbuilding and the

 

23

 

third
instalment of the Supervision Cost for the relevant Newbuilding, each falling
due before the Delivery Date of the relevant Newbuilding as set out in schedule
4;

 

“Third Stage”
means the third stage of European economic and monetary union pursuant to the
Treaty on European Union;

 

“Total Loss” means, in relation to a Ship:

 

(a)           actual,
constructive, compromised or arranged total loss of such Ship; or

 

(b)           the
Compulsory Acquisition of such Ship; or

 

(c)           the
hijacking, theft, condemnation, capture, seizure, arrest, detention or
confiscation of such Ship (other than where the same amounts to the Compulsory
Acquisition of such Ship) by any Government Entity, or by persons acting or
purporting to act on behalf of any Government Entity, unless such Ship be
released and restored to the relevant Owner (or, in the case of a Newbuilding
prior to its Delivery, the Builders) from such hijacking, theft, condemnation,
capture, seizure, arrest, detention or confiscation within thirty (30) days
after the occurrence thereof;

 

“Tranche” means:

 

(a)           in
relation to the Amorgos Ship, the Amorgos Tranche;

 

(b)           in
relation to the Kimolos Ship, the Kimolos Tranche;

 

(c)           in
relation to the Milos Ship, the Milos Tranche;

 

(d)           in
relation to the Mykonos Ship, the Mykonos Tranche; or

 

(e)           in
relation to the Syros Ship, the Syros Tranche,

 

and “Tranches” means any or all of them;

 

“Transaction” means a Transaction as defined in the
introductory paragraph of the Master Swap Agreement;

 

“Transaction Related
Standby L/C”  means a letter
of credit, letter of guarantee or bank guarantee issued or to be issued by the
Bank in favour of a Beneficiary in such form as is agreed between the Bank and
the AMPSA Borrower which relates directly to the purchase of Oil Products by
the AMPSA Borrower and which imposes on the Bank an obligation to pay (a) only
upon default in payment by the AMPSA Borrower under its contract with the
supplier of such Oil Products and (b) upon presentation of specified documents
as specified in such letter of credit, letter of guarantee or bank guarantee
(as the case may be);

 

“Transferee” has the meaning ascribed thereto in
clause 15.4;

 

“Treaty on European
Union” means the Treaty of Rome of 25 March 1957, as amended by the
Single European Act 1986 and the Maastricht Treaty of 7 February 1992; and

 

“Underlying Documents” means, together, the Contracts, the
Refund Guarantees, the Supervision Contracts, any Additional Contracts and the
Management Agreements and “Underlying Document”
means any of them.

 

1.3          Headings

 

Clause headings
and the table of contents are inserted for convenience of reference only and
shall be ignored in the interpretation of this Agreement.

 

24

 

1.4          Construction
of certain terms

 

In this
Agreement, unless the context otherwise requires:

 

1.4.1        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;

 

1.4.2        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 amended in accordance with terms
thereof, or, as the case may be, with the agreement of the relevant parties;

 

1.4.3        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 agency, authority, central bank or
government department or any self-regulatory or other national or
supra-national authority;

 

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

 

1.4.5        references
to a time of day are to London time;

 

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

 

1.4.7        references
to a “guarantee” include references to an
indemnity or other assurance against financial loss 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;

 

1.4.8        references
to any enactment shall be deemed to include references to such enactment as
re-enacted, amended or extended; and

 

1.4.9        references
to a “demand” include any requirement to make
payment in accordance with the terms of an L/C.

 

2              The Commitment and the Term Loan; the
Overdraft and the Guarantee Facility

 

2.1          Agreement
to lend Term Loan

 

The
Bank, relying upon each of the representations and warranties in clause 7,
agrees to lend to the Borrowers, jointly and severally, upon and subject to the
terms of this Agreement, the principal sum of up to Thirty three million four
hundred thousand Dollars ($33,400,000) in twenty (20) Advances comprising five
(5) Tranches, namely, the Amorgos Tranche, the Kimolos Tranche, the Milos
Tranche, the Mykonos Tranche and the Syros Tranche.

 

2.2          Drawdown
of Advances

 

Subject
to the terms and conditions of this Agreement, each Advance shall be made
following receipt by the Bank from the Borrowers of a Drawdown Notice not later
than 10:00 a.m. on the second Banking Day before the date, which shall be a
Banking Day falling within the relevant Drawdown Period, on which such Advance
is intended to be made.  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          Timing
and limitations of Term Loan, Tranches and Advances

 

2.3.1        The
aggregate amount of the Term Loan shall not exceed the lower of (a) Thirty
three million four hundred thousand Dollars ($33,400,000) and (b) eighty per
cent (80%) of the aggregate Construction Costs of all the Newbuildings.

 

25

 

2.3.2        The
aggregate amount of all the Advances for a Newbuilding shall not exceed the
lower of (a) Six million six hundred and eighty thousand Dollars ($6,680,000)
and (b) eighty per cent (80%) of the Construction Cost of the relevant
Newbuilding.

 

2.3.3        The
amount of each Pre-delivery Advance shall be:

 

(a)           in the
case of each First Advance, not more than $417,500;

 

(b)           in the
case of each Second Advance, not more than $1,252,500; and

 

(c)           in the
case of each Third Advance, not more than $1,252,500.

 

2.3.4        Each
First Advance:

 

(a)           shall
be applied in or towards payment to the Builders and, as the case may be, Iota
of part of the second instalment of the Contract Price and part of the second
instalment of the Supervision Cost (respectively) for the Newbuilding relevant
to such Advance;

 

(b)           shall
be made when both such instalments have become due and payable, as specified in
the second and third column, respectively, of schedule 4 opposite the relevant
First Advance; and

 

(c)           shall
be paid by the Bank to the Builders and Iota, respectively, unless the relevant
Newbuilding Owner has already paid either such instalment to the Builders or
(as the case may be) Iota when it was due, in which case the relevant First
Advance (or part thereof) shall be advanced to the Borrowers or the relevant
Newbuilding Owner in refinancing of such payment.

 

2.3.5        Each
Second Advance:

 

(a)           shall
be applied (i) first, in or towards payment to the Builders of the full amount
of the third instalment of the Contract Price for the Newbuilding relevant to
such Advance and (ii) secondly, as to its balance in refinancing of any other
part of the Construction Cost of the relevant Newbuilding previously paid by
the relevant Newbuilding Owner when it was due and not financed or refinanced
by this Agreement;

 

(b)           shall
be made when the instalment referred to in paragraph 2.3.5(a)(i) above has
become due and payable, as specified in the second column of schedule 4
opposite the relevant Second Advance; and

 

(c)           (except
for the part of the relevant Second Advance referred to in paragraph 2.3.5
(a)(ii) above, which shall be paid directly to the Borrowers or the relevant
Newbuilding Owner) shall be paid by the Bank to the Builders, unless the
relevant Newbuilding Owner has already paid the relevant third instalment to
the Builders when it was due, in which case the relevant Second Advance (or
part thereof) shall be advanced to the Borrowers or the relevant Newbuilding
Owner in refinancing of such payment.

 

2.3.6        Each
Third Advance:

 

(a)           shall
be applied in or towards payment to the Builders and, as the case may be, Iota
of part of the fourth instalment of the Contract Price and part of the third
instalment of the Supervision Cost (respectively) for the Newbuilding relevant
to such Advance;

 

(b)           shall
be made when both such instalments have become due and payable, as specified in
the second and third column, respectively, of schedule 4 opposite the relevant
Third Advance; and

 

(c)           shall
be paid by the Bank to the Builders and Iota, respectively, unless the relevant
Newbuilding Owner has already paid either such instalment to the Builders or
(as the case may be) Iota when it was due, in which case the relevant Third
Advance (or part

 

26

 

thereof)
shall be advanced to the Borrowers or the relevant Newbuilding Owner in
refinancing of such payment.

 

2.3.7        Each
Delivery Advance:

 

(a)   shall not
exceed the lower of:

 

(i)            Three
million seven hundred and fifty seven thousand five hundred Dollars ($3,757,500);

 

(ii)           the
amount in Dollars which, when added to the aggregate amount of the Pre-delivery
Advances for the relevant Newbuilding actually drawn down, will produce a
figure equal to eighty per cent (80%) of the Construction Cost of that
Newbuilding;

 

(iii)          the
amount in Dollars which, when added to the aggregate amount of the Pre-delivery
Advances for the relevant Newbuilding actually drawn down, will produce a figure
equal to eighty per cent (80%) of the market value of that Newbuilding
determined in accordance with the valuation of such Newbuilding obtained
pursuant to schedule 2, Part 5, paragraph 19; and

 

(iv)          the
amount in Dollars which, when added to the aggregate amount of the Pre-delivery
Advances for the relevant Newbuilding actually drawn down, will produce a total
figure of $6,680,000;

 

(b)   shall be
applied (i) first, in or towards payment to the Builders and, as the case may
be, Iota of part of the final instalment of the Contract Price and the final
instalment of the Supervision Cost (respectively) for the Newbuilding relevant
to such Advance and (ii) secondly, as to its balance in refinancing of any
other part of the Construction Cost of the relevant Newbuilding previously paid
by the relevant Newbuilding Owner when it was due and not financed or
refinanced by this Agreement;

 

(c)   shall be made
when both of the instalments referred to in paragraph 2.3.7(b)(i) above have
become due and payable; and

 

(d)   (except for
the part of the relevant Delivery Advance referred to in paragraph 2.3.7(b)(ii)
above, which shall be paid directly to the Borrowers or the relevant
Newbuilding Owner) shall be paid by the Bank to the Builders and Iota,
respectively, unless the relevant Newbuilding Owner has already paid either
such instalment to the Builders or (as the case may be) Iota when it was due,
in which case the relevant Delivery Advance (or part thereof) shall be advanced
to the Borrowers or the relevant Newbuilding Owner in refinancing of such
payment.

 

2.4          Availability
of Commitment

 

Upon
receipt of a Drawdown Notice for an Advance complying with the terms of this
Agreement the Bank shall, subject to the provisions of clause 9, on the
date specified in the Drawdown Notice make the relevant Advance available to
the Borrowers in accordance with clause 6.2.  The Borrowers acknowledge that payment of any
Advance to Iota or, as the case may be, the Builders or the relevant Newbuilding
Owner or either Borrower or any of such persons, in accordance with
clause 6.2 shall satisfy the obligation of the Bank to lend that Advance
to the Borrowers under this Agreement.

 

2.5          Termination
of Commitment

 

Any part of the Commitment undrawn and
uncancelled by the relevant Termination Date, shall thereupon be automatically
cancelled.

 

27

 

2.6          Application
of Term Loan proceeds

 

Without
prejudice to the Borrowers’ obligations under clause 8.1.3, the Bank shall
have no responsibility for the application of proceeds of the Term Loan or any
part thereof by the Borrowers or either of them.

 

2.7          Agreement
to make available Overdraft Facility

 

Subject
to the terms and conditions of this Agreement, and in reliance on the
representations and warranties set out in clause 7 and the representations
and warranties of the other Security Parties in the other Security Documents,
the Bank agrees to make available to the Borrowers, jointly and severally, for
the Availability Period an overdraft facility for the purposes described in
clause 1.1.2 in an amount not exceeding at any one time the applicable
Overdraft Facility Limit.

 

2.8          Authorisations

 

Each
drawing may be made only upon receipt by the Bank of a written request (whether
in the form of a cheque or any other written (including electronic) form agreed
between the Bank and the AMPSA Borrower from time to time) by the AMPSA
Borrower from time to time, duly signed by a person who, in the Bank’s
discretion, is duly authorised by the AMPSA Borrower to request the debiting of
the Overdraft Account.

 

2.9          Drawings;
joint and several obligations

 

2.9.1        Subject
to the terms and conditions of this Agreement, the Bank shall advance each
drawing in respect of the Overdraft to the Borrowers, jointly and severally, on
the date requested by the AMPSA Borrower in accordance with clause 2.8 by (a)
debiting the amount thereof to the Overdraft Account and (b) paying the
proceeds thereof in accordance with the AMPSA Borrower’s written instructions.

 

2.9.2        For the
avoidance of doubt, it is hereby agreed and acknowledged that, notwithstanding
that each amount made available pursuant to the Overdraft Facility may be drawn
following a request by the AMPSA Borrower alone and shall be debited to the
Overdraft Account (being a bank account in the name of the AMPSA Borrower
alone), each such amount shall be considered advanced to both Borrowers jointly
and severally.  Accordingly, the
Borrowers shall be jointly and severally liable for the repayment of each such
amount and the payment of interest accruing thereon in accordance with the
terms of this Agreement.

 

2.10        Terms of
Overdraft Facility

 

2.10.1      Drawings
under the Overdraft Facility may only be made on a Banking Day falling within
the Availability Period.

 

2.10.2      No drawing
shall be made under the Overdraft Facility unless one or more Advances have
been drawn down.

 

2.10.3      The
Borrowers may repay amounts outstanding in respect of the Overdraft at any time
by placing funds to the credit of the Overdraft Account.

 

2.10.4      The
Overdraft Facility shall be revolving, so that sums repaid in respect of the
Overdraft may be reborrowed provided always that the Overdraft shall never
exceed the Overdraft Facility Limit.

 

2.10.5      No drawing
on the Overdraft Account is permitted if such drawing would cause the Overdraft
to exceed the Overdraft Facility Limit.

 

2.10.6      On the
earlier of (a) the date on which the Term Loan is fully repaid or prepaid and
(b) the Final Maturity Date, the Borrowers shall repay the Overdraft in full.

 

2.10.7      On the last
day of the Availability Period:

 

28

 

(a)   the Overdraft
Facility shall cease to be available and no drawings thereunder may be made
thereafter; and

 

(b)   the Overdraft
Facility Limit shall be reduced to zero.

 

2.10.8      Without
prejudice to the Borrowers’ obligations under clause 8.1.3, the Bank shall
have no responsibility for the application of proceeds of the Overdraft or any
part thereof by the Borrowers or either of them.

 

2.11        Guarantee
Facility

 

2.11.1      Subject to the
terms and conditions of this Agreement, and in reliance on the representations
and warranties set out in clause 7 and the representations and warranties of
the other Security Parties in the other Security Documents, the Bank agrees to
make available to the Borrowers, jointly and severally for the Availability
Period, a multi-currency revolving guarantee and letter of credit facility not
exceeding the Guarantee Facility Commitment.

 

2.11.2      The
Borrowers undertake with the Bank to use each L/C only for the purpose stated
in clause 1.1.3.

 

2.11.3      The
Guarantee Facility shall terminate on the last day of the Availability Period.

 

2.12        Submission of Schedule of Receivables

 

On each
Reset Date the Borrowers shall submit to the Bank:

 

2.12.1      a Schedule
of Receivables duly executed as a deed by the AMPSA Borrower and setting out
details of Receivables in respect of which the Borrowers may wish to submit
Issue Requests, provided that:

 

(a)   no more than
five per cent (5%) of the aggregate of all such Receivables set out in such
Schedule of Receivables shall be due from any one Customer (except the United
States Navy); and

 

(b)   such
Receivables shall not have been contained in a Schedule of Receivables
previously delivered under this Agreement;

 

2.12.2      in respect
of each Receivable contained in a Schedule of Receivables submitted to the Bank
under clause 2.12.1, a copy of the bunkering confirmation issued by the AMPSA
Borrower to the relevant Customer together with a copy of the Customer’s
confirmation of such bunkering confirmation, together evidencing the contract
entered into between the AMPSA Borrower and the Customer in relation to such
Receivable and complying with the following requirements:

 

(a)   such bunkering
confirmation when read together with the relevant Customer’s confirmation shall
include, whether expressly or by incorporation, all the terms of such contract
between the AMPSA Borrower and the Customer;

 

(b)   in the case of
Receivables relating to oil bunkers and/or lubricants supplied to the Customer
by the AMPSA Borrower or its employees, such bunkering confirmation when read
together with the relevant Customer’s confirmation shall refer to and
incorporate the AMPSA Borrower’s standard terms and conditions;

 

(c)   in the case of
Receivables relating to oil bunkers and/or lubricants supplied to the Customer
by any parties other than the AMPSA Borrower or its employees, such bunkering
confirmation shall contain the following wording:

 

“AMP’s standard
terms and conditions to apply, except as regards operational matters at the
place of delivery, in relation to which supplier’s terms and conditions shall
apply”;

 

29

 

2.12.3      in respect
of each Receivable contained in a Schedule of Receivables submitted to the Bank
under clause 2.12.1, a copy of the receipt for the oil bunkers and/or
lubricants supplied (as relevant) complying with the following requirements:

 

(a)   such receipt
shall have been duly signed by the master or chief engineer on behalf of the
vessel to which the AMPSA Borrower has supplied such oil bunkers and/or
lubricants (as relevant) as evidence of the relevant Customer’s irrevocable
payment obligations, free from any rights of set-off or other deduction;

 

(b)   in the case of
oil bunkering receipts or lubricant sales receipts issued by any parties other
than the AMPSA Borrower or its employees, such receipt shall:

 

(i)            contain
an express acknowledgement to the effect that the relevant third party has
supplied the relevant Receivables to the Customer for and on behalf of the
AMPSA Borrower; and

 

(ii)           set
out the number of the relevant bunkering confirmation to which such receipt
relates;

 

(c)   in the case of
oil bunkering receipts, such receipt shall be dated no more than 45 days before
the relevant Issue Date and shall have a payment tenor of no more than 30 days;

 

(d)   in the case of
lubricant sales receipts, such receipt shall be dated no more than 60 days
before the relevant Utilisation Date and shall have a payment tenor of no more
than 60 days;

 

2.12.4      for each
copy of a receipt delivered under clause 2.12.3, a certificate duly signed by
an officer of the AMPSA Borrower, certifying that the copy of the relevant
receipt is true and up to date; and

 

2.12.5      for each
copy of a receipt delivered under clause 2.12.3, a carbon copy of the relevant
invoice issued to the relevant Customer, complying with the following
requirements:

 

(a)   in the case of
oil bunkering invoices, such invoice shall have a payment tenor of no more than
30 days as of the date of the relevant receipt; and

 

(b)   in the case of
lubricant sales invoices, such invoice shall have a payment tenor of no more
than 60 days as of the date of the relevant receipt.

 

2.13        Reset Date

 

The
first Reset Date shall be the date on which the Borrowers deliver to the Bank
the first Schedule of Receivables and each subsequent Reset Date shall be the
day (the “numerically corresponding day”) in each
subsequent calendar month during the Availability Period numerically
corresponding to the day in the relevant calendar month which was the first
Reset Date, but if the numerically corresponding day is not a Business Day, the
subsequent Reset Date shall be on the Business Day following the numerically
corresponding day or, if there is no later Business Day in the same calendar
month, the Business Day preceding the numerically corresponding day, but so
that in the next following month the Reset Date shall revert to the numerically
corresponding day.

 

2.14        Issuance
of L/Cs

 

Subject
to the fulfilment of the conditions precedent contained in clause 9 and the
conditions contained in clause 2.15, the Borrowers may request the issuance of
an L/C by ensuring that the Bank receives a completed Issue Request not later
than 11.00 a.m. (Piraeus time) two (2) Banking Days prior to the intended Issue
Date.

 

2.15        Availability
of L/Cs

 

The
conditions referred to in clause 2.14 are that:

 

30

 

2.15.1      an Issue
Date has to be a Banking Day during the Availability Period;

 

2.15.2      each L/C
shall be denominated in Dollars or in an Optional Currency;

 

2.15.3      the
Original Dollar Amount of a L/C shall be not less than $1,000,000 (or such
other amount as is agreed by the Bank) or such other amount as is available in
accordance with clause 2.15.4;

 

2.15.4      the total
amount of the Outstandings and the Outstanding Amount of the L/C then to be
made shall not exceed the lower of:

 

(a)   the Guarantee
Facility Commitment; and

 

(b)   such amount as
shall ensure that the Borrowers are in compliance with clauses 8.2.1 and 8.2.7
and shall remain in compliance with clauses 8.2.1 and 8.2.7 after the issuance
of the relevant L/C (but, when testing compliance with clause 8.2.7 for the
purposes of this clause 2.15.4, only those Qualifying Receivables shall be
taken into account as were included in the Schedule of Receivables submitted to
the Bank pursuant to clause 9.1.1(b));

 

2.15.5      each L/C shall specify an Expiry
Date and that Expiry Date shall be a date falling not later than the Final
Maturity Date; and

 

2.15.6      no L/C shall be issued unless at
least one or more Advances have been drawn down.

 

2.16        Issue
Request irrevocable

 

Each
Issue Request must be signed by a duly authorised signatory of the Borrowers
and, once served, the Issue Request cannot be revoked without the prior consent
of the Bank.

 

2.17        Issuance
of L/C

 

Subject
to the provisions of this Agreement, the Bank shall on the Issue Date for an
L/C, issue the relevant L/C to the relevant Beneficiary.

 

2.18        Weighting of Optional Currency L/Cs

 

For the
purposes of (a) the definition of “Actual Exposure” in clause 1.2 and (b)
clauses 2.15.4, 8.2.1and 8.2.7, the Outstanding Amount of each Optional
Currency L/C and the Original Dollar Amount of any Optional Currency L/C shall
be multiplied by 110%.

 

2.19        Extension of Expiry Date

 

The
Borrowers may, by notice in writing to the Bank signed by a duly authorised
signatory of the Borrowers not later than 11.00 a.m. (Piraeus time) five (5)
Banking Days prior to the Expiry Date of an L/C, request that such Expiry Date
be extended.  Subject to compliance with
the following conditions:

 

2.19.1      the
extended Expiry Date shall be a date falling not later than the Final Maturity
Date;

 

2.19.2      no Default
has occurred and is continuing as at the date on which such extension is
implemented;

 

2.19.3      the
representations and warranties in clause 7 and those (if any) in the Security
Documents would be true and not misleading if repeated on the date of the
request for extension; and

 

2.19.4      the Bank is
satisfied that the test contained in clause 8.2.7 would not then or in the
future be breached by reason of the requested extension,

 

the Bank shall agree to and implement such request by
amending and re-issuing the relevant L/C.

 

31

 

2.20        Selection of Optional Currencies for L/Cs

 

2.20.1      If an L/C
is to be issued in an Optional Currency, the Borrowers shall specify such
Optional Currency in the relevant Issue Request submitted in accordance with
clause 2.14.

 

2.20.2      If the
Borrowers fail to specify an Optional Currency, they shall be deemed to have
specified Dollars for the L/C concerned.

 

2.21        Amount of
Optional Currencies

 

2.21.1      In this
clause 2.21, the “Bank’s spot rate of
exchange” means the Bank’s rate of exchange for the purchase in the
London Foreign Exchange Market of the appropriate amount of the relevant
Optional Currency with Dollars at or about 11.00 a.m. on, as the case may be,
each Issue Date on which an Optional Currency L/C is to be issued or on which a
previously issued Optional Currency L/C remains outstanding, the Settlement
Date of an Optional Currency L/C and each Reset Date or on any other date when
compliance with clause 8.2.1 or clause 8.2.7 is tested by the Bank, as relevant
(each an “L/C Valuation Date”).

 

2.21.2      On each L/C
Valuation Date the Bank shall determine:

 

(a)   in the case of
an Issue Date, the Outstanding Amount of each Optional Currency L/C then
outstanding or to be issued on that L/C Valuation Date;

 

(b)   in the case of
a Settlement Date, the Outstanding Amount of each relevant Optional Currency
L/C; and

 

(c)   in the case of
a Reset Date or any other date when compliance with clause 8.2.1 or clause
8.2.7 is tested by the Bank, the Outstanding Amount of each Optional Currency
L/C then outstanding,

 

by
converting the amount of such L/C in the Optional Currency into Dollars on the
basis of the Bank’s spot rate of exchange.

 

2.21.3      The Bank
shall promptly notify the Borrowers of the Bank’s spot rate of exchange (as to
which the Bank’s determination shall, in the absence of manifest error, be
conclusive) and of the Outstanding Amounts hereunder as soon as they are
ascertained.

 

2.22        Reduction
of L/Cs

 

The
Outstanding Amount of an L/C shall not be treated as reduced for the purposes
of this Agreement unless and until:

 

2.22.1      the Bank
has received a written confirmation from the Beneficiary of such L/C of the
amount of such reduction; or

 

2.22.2      the Bank
has notified the Borrowers in writing that (notwithstanding the absence of a
written confirmation from the Beneficiary of such L/C) it is satisfied that its
liability under the L/C has been irrevocably reduced or discharged; or

 

2.22.3      the amount
of the L/C irrevocably and unconditionally reduces in accordance with its
terms; or

 

2.22.4      the expiry
date of the L/C elapses and the Bank has notified the Borrowers in writing that
it is satisfied that no claim or demand has been made, or may thereafter be
made, under the L/C.

 

If the
Outstanding Amount of an L/C has been reduced pursuant to this clause 2.22, the
Outstandings shall be reduced by an equal amount.

 

32

 

2.23        Settlement
of L/Cs - non-settlement to constitute loan

 

2.23.1      The Bank
shall, immediately after receiving a demand from, or after being notified by, a
Beneficiary that it is required to make payment under an L/C, notify the
Borrowers that such payment is due and of the Settlement Amount and the
Settlement Date.

 

2.23.2      The
Borrowers shall immediately after notification from the Bank under clause
2.23.1 reimburse the Settlement Amount to the Bank by payment forthwith to the
Bank on the Settlement Date the Settlement Amount in Dollars or, if the
relevant L/C was issued in an Optional Currency, in such Optional Currency.

 

2.23.3      Each
payment of a Settlement Amount made by the Bank to a Beneficiary under an L/C
and not reimbursed by the Borrowers on the relevant Settlement Date in
accordance with clause 2.23.2, shall constitute a loan advanced by the Bank to
the Borrowers jointly and severally on the Settlement Date.  Each such loan shall be (a) of a principal
amount equal to the Settlement Amount paid by the Bank to the relevant
Beneficiary under such L/C, (b) treated as advanced to the Borrowers on the
relevant Settlement Date and (c) due and repayable by the Borrowers to the Bank
on the relevant Settlement Date.  The
Borrowers, jointly and severally, hereby undertake with the Bank to repay to
the Bank each such loan on the date so advanced (or deemed advanced) to them
pursuant to this clause 2.23.3 (i.e. on the relevant Settlement Date).

 

2.24        Borrowers’
undertaking to indemnify

 

The Borrowers
jointly and severally undertake with the Bank that they shall indemnify, each
as a principal and independent debtor, the Bank on demand against all actions,
claims, demands, liabilities, costs, losses, damages and expenses incurred,
suffered or sustained or any penalty or other expenditure which may result or
which the Bank may incur, suffer or sustain in connection with or arising out
of or in relation to any L/C and/or the payment under or other performance of
an L/C.

 

2.25        L/C
payments

 

The
Borrowers:

 

2.25.1      irrevocably
authorise the Bank to make any payment demanded from it pursuant to an L/C if
that demand is made in accordance with its terms;

 

2.25.2      accept that
any demand for payment made by the Beneficiary pursuant to an L/C and which is
made in accordance with its terms shall be conclusive evidence that the Bank
was liable to make payment under that L/C and any payment which the Bank makes
pursuant to any such demand shall be accepted by the Borrowers as binding upon
the Borrowers; and

 

2.25.3      acknowledge
and agree that the Bank shall not in any circumstances whatsoever be liable to
the Borrowers or either of them in respect of any loss or damage suffered by
the Borrowers or either of them by reason of the Bank making a payment to the
Beneficiary in connection with any payment demanded under an L/C.

 

2.26        Continuing
liabilities

 

The
liabilities and obligations of the Borrowers under clauses 2.23.2 and 2.24
shall remain in force as a continuing security until:

 

2.26.1      the full,
prompt and complete performance of all the terms of such liabilities and
obligations including the proper and valid payment of all amounts that may
become due to the Bank under clauses 2.22 and 2.24; and

 

2.26.2      subject to
clause 2.27, an absolute discharge or release of the Borrowers signed by the
Bank,

 

and accordingly the Borrowers shall not have, as
regards those liabilities and obligations, any of the rights or defences of a
surety.

 

33

 

2.27        Discharges

 

Any such discharge or release referred to
in clause 2.26, and any composition or arrangement which the Borrowers may
effect with the Bank, shall be deemed to be made subject to the condition that
it will be void if any payment or security which the Bank may previously have
received or may thereafter receive is set aside under any applicable law or
proves to have been for any reason invalid.

 

2.28        No
impairment

 

Without
limiting the generality of clauses 2.26 and 2.27, the Borrowers shall neither
be discharged from any of their liabilities or obligations under clauses 2.23.3
and 2.24 by, nor have any claim against the Bank in respect of:

 

2.28.1      any
misrepresentation or non-disclosure respecting the affairs or condition of the
Bank made to the Borrowers or either of them by any person; or

 

2.28.2      a
Beneficiary and/or the Bank releasing or granting any time or any indulgence
whatsoever or making any settlement, composition or arrangement with the
Borrowers or either of them, a Beneficiary, any other Security Party or any
other person; or

 

2.28.3      a
Beneficiary and/or the Bank asserting or pursuing, failing or neglecting to
assert or pursue, or delaying in asserting or pursuing, or waiving, any of
their rights or remedies against the Borrowers or either of them, a
Beneficiary, any other Security Party or any other person; or

 

2.28.4      a
Beneficiary and/or the Bank and/or the Borrowers or either of them, with the
consent of the Borrowers (or with or without the consent of the Borrowers in
the case of any variation agreed between a Beneficiary and the Borrowers or
either of them or the person whose obligations are guaranteed thereby), making,
whether expressly or by conduct, any variation to any L/C; or

 

2.28.5      a
Beneficiary and/or the Bank and/or the Borrowers or either of them:

 

(a)   taking,
accepting, varying, dealing with, enforcing, abstaining from enforcing,
surrendering or releasing any security in relation to a Beneficiary or the Bank
or the Borrowers or either of them or any other person in such manner as it or
they think fit; or

 

(b)   claiming,
proving for, accepting or transferring any payment in respect of the
obligations and liabilities of the Borrowers or either of them and/or a
Beneficiary relative to any L/C or under this Agreement in any composition by,
or winding up of, the Borrowers or either of them and/or any third party or
abstaining from so claiming, proving, accepting or transferring; or

 

2.28.6      any
assignment or transfer by a Beneficiary of, or any succession to, any of its
rights relative to any L/C.

 

2.29        Expiry
Date after the Final Maturity Date

 

Without
prejudice to the rights of the Bank under clauses 2.15 and 2.19, if the Bank in
its absolute and unfettered discretion, and following a relevant request by the
Borrowers, agrees to issue an L/C with an Expiry Date falling later than the
Final Maturity Date, or agrees to extend the Expiry Date of an existing L/C
beyond the Final Maturity Date, the Borrowers hereby jointly and severally
undertake with the Bank to place funds to the credit of the Cash Collateral
Account in the currency in which the relevant L/C is denominated and in such
amount as determined by the Bank in its absolute discretion (which, in any
event, shall be no less than the Outstanding Amount of the relevant L/C).

 

34

 

3              Interest and Interest Periods

 

3.1          Normal
interest rate

 

3.1.1        Term Loan

 

The
Borrowers shall pay interest on each Tranche in respect of each Interest Period
relating thereto on each Interest Payment Date for such Tranche (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 or, if shorter, the
period from the date of the preceding instalment until the Interest Payment
Date relative to such Interest Period) at the rate per annum determined by the
Bank to be the aggregate of (a) the relevant Margin, (b) the Additional Cost and
(c) LIBOR for such Interest Period.

 

3.1.2        Overdraft

 

(a)   The Overdraft
shall bear interest calculated on a daily basis at the annual rate of interest
which is conclusively certified by the Bank to the Borrowers to be the
aggregate of (a) the relevant Margin, (b) the Additional Cost and (c) LIBOR
applicable to each of the relevant days, and such interest shall be payable
quarterly on the twentieth (20th) day of March, June, September and December of
each calendar year (or on such other date or dates as the Bank may notify to
the Borrowers from time to time) up to the Final Maturity Date and on the Final
Maturity Date.

 

(b)   Interest
payments due on the Overdraft shall be made by way of debit to the Overdraft
Account (at the Bank’s discretion) provided that such debit shall not cause the
Overdraft (which for these purposes shall include any amount in respect of
which the AMPSA Borrower has made a drawing request pursuant to clause 2.8) to
exceed the applicable Overdraft Facility Limit. 
If interest payments due hereunder are not debited to the Overdraft
Account as permitted by the preceding sentence, the Borrowers shall pay the
amount thereof to the Bank in cash on the due date.

 

(c)   The Bank shall
advise the AMPSA Borrower of the interest rates applied to the Overdraft by
bank account statements in respect of the Overdraft Account, which the Bank
shall send to the AMPSA Borrower at the times and in the manner specified in
the terms and conditions applicable to the Overdraft Account as agreed between
the Bank and the AMPSA Borrower from time to time.

 

3.2          Selection
of Interest Periods; Term Loan

 

The
Borrowers may by notice received by the Bank not later than 10:00 a.m. on the
second Banking Day before the beginning of each Interest Period for a Tranche,
specify whether such Interest Period shall have a duration of one (1) month,
two (2) months, (3) months, six (6) months or (subject to availability to be
determined by the Bank in its sole discretion) twelve (12) months or such other
period as the Borrowers may select and the Bank may, in its absolute
discretion, agree Provided always that
if, on any date upon which an Interest Period for a Tranche falls to be
selected by the Borrowers pursuant to this clause 3.2, a Transaction or
Transactions (which is/are effective or which shall become effective during the
relevant Interest Period) shall have been entered into between the Bank and the
Borrowers pursuant to the Master Swap Agreement, LIBOR for the Term Loan shall,
during the period of any such Transaction(s) and for an amount of the Term Loan
equal to the notional amount of such Transaction(s), be determined by reference
to the rate for deposits in Dollars displayed on Reuters page LIBOR01 (British
Bankers’ Association Settlement Rates) in accordance with the proviso to
paragraph (a) of the definition of LIBOR in clause 1.2 and, for the avoidance
of doubt, LIBOR for that part of the Term Loan which exceeds the notional
amount of the Transaction(s) shall be determined by reference to the rate for
deposits in Dollars referred to in the definition of LIBOR in clause 1.2 but
excluding the proviso to paragraph (a) of such definition.

 

35

 

3.3          Determination
of Interest Periods; Term Loan

 

Every
Interest Period in respect of the Term Loan shall be of the duration required
by, or specified by the Borrowers pursuant to, clause 3.2 but so that:

 

3.3.1        the
initial Interest Period in respect of each Advance shall commence on the
Drawdown Date of such Advance and each subsequent Interest Period in respect
thereof shall commence on the last day of the previous Interest Period for such
Advance;

 

3.3.2        the
initial Interest Period in respect of each Advance in respect of a Newbuilding
(after the first Advance to be drawn down in respect of such Newbuilding) shall
end on the same day as the then current Interest Period for the Tranche for
such Newbuilding and, on the last day of such Interest Period, such Advances
shall be consolidated into, and shall thereafter constitute, the Tranche in
respect of such Newbuilding;

 

3.3.3        if any
Interest Period in respect of a Tranche would otherwise overrun a Repayment
Date for such Tranche, then, in the case of the last Repayment Date for such
Tranche, such Interest Period shall end on such Repayment Date, and in the case
of any other Repayment Date or Repayment Dates for such Tranche, the relevant
Tranche shall be divided into parts so that there is one part in the amount of
the repayment instalment or instalments due on each Repayment Date for such Tranche
falling during that Interest Period and having an Interest Period ending on the
relevant Repayment Date and another part in the amount of the balance of the
relevant Tranche having an Interest Period ascertained in accordance with
clause 3.2 and the other provisions of this clause 3.3; and

 

3.3.4        if the
Borrowers fail to specify the duration of an Interest Period in respect of the
Term Loan in accordance with the provisions of clause 3.2 and this
clause 3.3, such Interest Period shall have a duration of three (3) months
or such other period as shall comply with this clause 3.3.

 

3.4          Default
interest

 

If the
Borrowers fail to pay any sum (including, without limitation, any sum payable
pursuant to this clause 3.4 and any amounts payable by the Borrowers under
clause 2.23.3) on its due date for payment under any of the Security Documents
(other than the Master Swap Agreement), the Borrowers shall 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 pursuant to this
clause 3.4.  The period beginning on
such due date and ending on such date of payment shall be divided into
successive periods of not more than six (6) months as selected by the Bank each
of which (other than the first, which shall commence on such due date) shall
commence 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) one per cent
(1%) per annum, (b) the relevant Margin, (c) the Additional Cost and (d)
LIBOR for such period or, for any such amounts denominated in euros, EURIBOR
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, for the purposes of this Agreement, be treated as an
Interest Payment Date, provided that, if such unpaid sum is an amount of
principal which became due and payable by reason of a declaration by the Bank
under clause 10.2.2 or a prepayment pursuant to clauses 4.3, 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 duration equal to the period
between the due date of such principal sum and such Interest Payment Date and
interest shall be payable on such principal sum during such period at a rate
one per cent (1%) above the rate applicable thereto immediately before it shall
have become so due and payable.  If, for
the reasons specified in clause 3.6.1, the Bank is unable to determine a
rate in accordance with the foregoing 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 one per cent (1%) per annum above the
aggregate of the relevant Margin and the cost of funds (including Additional
Cost) to the Bank.

 

36

 

3.5          Notification
of Interest Periods and interest rate

 

The
Bank shall notify the Borrowers promptly of the duration of each Interest
Period in respect of the Term Loan and of each rate of interest determined by
it under this clause 3 in respect of the Term Loan.

 

3.6          Market
disruption; non-availability

 

3.6.1        If and
whenever, at any time prior to the commencement of any Interest Period, the
Bank shall have determined (which determination shall, in the absence of
manifest error, be conclusive):

 

(a)   that adequate
and fair means do not exist for ascertaining LIBOR or (as the case may be)
EURIBOR during such Interest Period; or

 

(b)   that deposits
in Dollars or any Optional Currency are not available to the Bank in the London
Interbank Market or (as the case may be) the European Interbank Market in the
ordinary course of business in sufficient amounts to fund the Loan or (as the
case may be) the Aggregate Liabilities (or a part thereof) for such Interest
Period,

 

the
Bank shall forthwith give notice (a “Determination Notice”)
thereof to the Borrowers.  A
Determination Notice shall contain particulars of the relevant circumstances
giving rise to its issue.  After the
giving of any Determination Notice the undrawn amount of the Commitment and the
Overdraft Facility shall not be borrowed and no further L/Cs may be issued until
notice to the contrary is given to the Borrowers by the Bank.

 

3.6.2        During
the period of ten (10) days after any Determination Notice has been given by
the Bank under clause 3.6.1, the Bank shall certify an alternative basis
(the “Substitute Basis”) for maintaining the
Loan or (as the case may be) the Aggregate Liabilities.  The Substitute Basis may (without limitation)
include alternative interest periods, alternative currencies or alternative
rates of interest but shall include a margin above the cost of funds, including
Additional Cost, if any, to the Bank equivalent to the Margin.  Each Substitute Basis so certified shall be
binding upon the Borrowers and 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 apply.

 

4              Repayment and prepayment

 

4.1          Repayment
of Term Loan

 

The
Borrowers shall repay each Tranche by forty eight (48) instalments, one such
instalment to be repaid on each of the Repayment Dates for such Tranche.  Subject to the provisions of this Agreement,
the amount of each of the repayment instalments (other than the last repayment
instalment) for each Tranche shall be One hundred and forty thousand Dollars
($140,000) and the amount of the last repayment instalment for each Tranche
shall be One hundred thousand Dollars ($100,000).  If the Commitment in respect of any Tranche
or part thereof is not drawn in full, the amount of the repayment instalments
in respect of the relevant Tranche shall be reduced proportionately.

 

4.2          Voluntary
prepayment of Term Loan

 

The
Borrowers may prepay any Tranche in whole or part (being Two hundred thousand
Dollars ($200,000) or any larger sum which is an integral multiple of Two
hundred thousand Dollars ($200,000)) on any Interest Payment Date relating to
the part of the Tranche to be prepaid, without premium or penalty.

 

37

 

4.3          Prepayments,
reductions and cash-collateralisations on Total Loss or demand under Refund
Guarantees

 

4.3.1        Before
first drawdown - Newbuildings

 

On a
Newbuilding becoming a Total Loss or suffering damage or being involved in an
incident which, in the opinion of the Bank, may result in such Newbuilding
being subsequently determined to be a Total Loss, before any Advance for such
Newbuilding is drawn down, the obligation of the Bank to advance the Tranche
(or part thereof) for such Newbuilding shall immediately cease and the
Commitment shall be reduced accordingly.

 

4.3.2        Before
first drawdown - Other Ships

 

On a
Mortgaged Ship (other than a Newbuilding) becoming a Total Loss or suffering
damage or being involved in an incident which, in the opinion of the Bank, may
result in that Mortgaged Ship being subsequently determined to be a Total Loss,
before any Advance is drawn down, the Commitment, the Overdraft Facility Limit
and the Guarantee Facility Commitment will be reduced by such amount (and, in
the case of the Commitment, in respect of such Advances) as the Bank may in its
absolute discretion require, and the Bank’s obligation to make available any
Advances (or any part thereof) which comprise the part of the Commitment that
was so cancelled shall immediately cease.

 

4.3.3        After
first drawdown but prior to Delivery - Newbuildings

 

(a)   On a
Newbuilding becoming a Total Loss or suffering damage or being involved in an
incident which, in the opinion of the Bank, may result in such Newbuilding
being subsequently determined to be a Total Loss, after any Advance for such
Newbuilding has been drawn down but prior to the drawing of the Delivery
Advance for such Newbuilding, then:

 

(i)            the
obligation of the Bank to advance any other Advance (or part thereof) for such
Newbuilding shall immediately cease and the Commitment shall be reduced
accordingly; and

 

(ii)           the
Borrowers shall prepay the Pre-delivery Advances for such Newbuilding in full;
and

 

(iii)          the
Overdraft Facility Limit and the Guarantee Facility Commitment shall be reduced
by such amounts as the Bank may in its absolute discretion require; and

 

(iv)          the
Borrowers shall repay such part of the Overdraft and shall place funds to the
credit of the Cash Collateral Account in such amount and in such currency, as
the Bank may in its absolute discretion require.

 

(b)   If a claim is
made under any Refund Guarantee and such claim is not paid within twenty (20)
Banking Days of it being made (whether or not such claim has been referred to
the appropriate courts pursuant to the relevant Refund Guarantee), then:

 

(i)            the
obligation of the Bank to advance any other Advance (or any part thereof) for
the Newbuilding relevant to such Refund Guarantee shall immediately cease; and

 

(ii)           forthwith
on the expiry of such twenty (20) day period, the Borrowers shall:

 

(A)          prepay
in full the then outstanding Advances in respect of that Newbuilding; and

 

(B)           the
Overdraft Facility Limit and the Guarantee Facility Commitment shall be reduced
by such amounts as the Bank may in its absolute discretion require; and

 

(C)           the
Borrower shall repay such part of the Overdraft and shall place funds to the
credit of the Cash Collateral Account in such amount and in such currency, as
the Bank may in its absolute discretion require,

 

38

 

Provided
however that if the relevant claim made
under the Contract to which such Refund Guarantee relates has been referred to
arbitration under the terms of such Contract, the time-limit (and the corresponding
prepayment obligation of the Borrowers) referred to in paragraph (ii) of this
clause 4.3.3(b) shall be extended to ninety (90) days of the claim under the
relevant Refund Guarantee being made.

 

4.3.4        After first drawdown - all Mortgaged Ships

 

If a Mortgaged Ship becomes a Total Loss after the first Drawdown Date
under this Agreement, then:

 

(a)   in the event
that such Mortgaged Ship is a Newbuilding, the Borrowers shall prepay the
Tranche for such Newbuilding in full on the Reduction Date for such
Newbuilding; and

 

(b)   forthwith
after the occurrence of such Total Loss, the Overdraft Facility Limit and the
Guarantee Facility Commitment shall be reduced by such amounts as the Bank may
in its absolute discretion require; and

 

(c)   forthwith
following the Bank’s request, the Borrowers shall repay such part of the
Overdraft and the Tranches (and in such manner as between them), and shall
place funds to the credit of the Cash Collateral Account in such amount and in
such currency, as the Bank may in its absolute discretion require.

 

For the
purposes of this clause 4.3.4, “Reduction Date”
means, in relation to a Mortgaged Ship which has become a Total Loss, the date
falling one hundred and twenty (120) days after the date when such Ship became
a Total Loss or, if earlier, the date when insurance proceeds in respect of
such Total Loss are, or Requisition Compensation for such Ship is, received by
the relevant Owner (or the Bank pursuant to the Ship Security Documents).

 

4.3.5        Interpretation

 

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

 

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

 

(b)   in the case of
a constructive total loss of a Ship, upon the date and at the time notice of
abandonment of such Ship is given to the insurers of such Ship for the time
being;

 

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

 

(d)   in the case of
Compulsory Acquisition of such Ship, 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 Ship (other than where the same amounts to Compulsory
Acquisition of such Ship) by any Government Entity, or by persons purporting to
act on behalf of any Government Entity, which deprives the relevant Owner (or,
in the case of a Newbuilding prior to its Delivery, the Builders) of the use of
such Ship for more than thirty (30) days, upon the expiry of the period of
thirty (30) days after the date upon which the relevant hijacking, theft,
condemnation, capture, seizure, arrest, detention or confiscation occurred.

 

4.4          Amounts
payable on prepayment - Term Loan

 

Any
prepayment of all or part of the Term Loan under this Agreement shall be made
together with (a) accrued interest on the amount to be prepaid to the date of
such prepayment, (b) any 

 

39

 

additional
amount payable under clauses 6.6 or 12.2 and (c) 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 or guarantee commission payable under clause 5.1 and any
amounts payable under clause 11.

 

4.5          Notice
of prepayment; reduction of repayment instalments - Term Loan

 

4.5.1        No
prepayment of the Term Loan may be effected under clause 4.2 unless the
Borrowers shall have given the Bank at least fourteen (14) days’ 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 Tranche and the amount
thereof to be prepaid and shall oblige the Borrowers to make such prepayment on
the date specified.

 

4.5.2        Any
amount of the Term Loan prepaid pursuant to clause 4.2 in respect of a
Tranche shall be applied in reducing the repayment instalments of the relevant
Tranche under clause 4.1 in inverse order of their due dates for payment.

 

4.5.3        Any
amount of the Term Loan prepaid pursuant to clause 8.2.1(a) shall be applied in
prepayment of all Tranches proportionately as between them and in reduction of
the repayment instalments of each Tranche in inverse order of their due dates
for payment.

 

4.5.4        The
Borrowers may not prepay the Term Loan or any part thereof save as expressly
provided in this Agreement.  No amount
prepaid under this Agreement may be re-borrowed.

 

4.6          Master
Swap Agreement, repayments and prepayments of Term Loan

 

4.6.1        Notwithstanding
any provision of the Master Swap Agreement to the contrary, in the case of a
prepayment of all or part of the Term Loan (including, without limitation,
following the occurrence of a Total Loss in accordance with clause 4.3 or
under clauses 8.2.1(a) or 12.1) then, subject to clause 4.6.2, the Bank shall
be entitled but not obliged (and, where relevant, may do so without the consent
of the Borrowers, where it would otherwise be required whether under the Master
Swap Agreement or otherwise) to amend, supplement, cancel, net out, terminate,
liquidate, transfer or assign all or any part of the rights, benefits and
obligations created by any Transaction and/or the Master Swap Agreement and/or
to obtain or re-establish any hedge or related trading position in any
manner and with any person the Bank in its absolute discretion may determine
and both the Bank’s and the Borrowers’ continuing obligations under any
Transaction and/or the Master Swap Agreement shall, unless agreed otherwise by
the Bank, be calculated so far as the Bank considers it practicable by
reference to the amended repayment schedule for the Term Loan taking into
account the fact that less than the full amount of the Term Loan remains
outstanding.

 

4.6.2        If less
than the full amount of the Term Loan remains outstanding following a
prepayment under this Agreement and the Bank in its absolute discretion agrees,
following a written request of the Borrowers, that the Borrowers may be
permitted to maintain all or part of a Transaction in an amount not wholly
matched with or linked to all or part of the Term Loan, the Borrowers shall,
within ten (10) days of being notified by the Bank of such requirement, provide
the Bank with, or procure the provision to the Bank of, such additional
security as shall in the opinion of the Bank be adequate to secure the
performance of such Transaction, which additional security shall take such
form, be constituted by such documentation and be entered into between such
parties, as the Bank in its absolute discretion may approve or require, and
each document comprising such additional security shall constitute a Credit
Support Document.

 

4.6.3        The
Borrowers shall on the first written demand of the Bank indemnify the Bank in
respect of all losses, costs and expenses (including, but not limited to, legal
costs and expenses) incurred or sustained by the Bank as a consequence of or in
relation to the effecting of any matter or transactions referred to in this
clause 4.6.

 

4.6.4        Notwithstanding
any provision of the Master Swap Agreement to the contrary, if for any reason a
Transaction has been entered into but no Advance is drawn down under this
Agreement then, subject to clause 4.6.5, the Bank shall be entitled but
not obliged (and, where relevant, may do 

 

40

 

so without the
consent of the Borrowers where it would otherwise be required whether under the
Master Swap Agreement or otherwise) to amend, supplement, cancel, net out,
terminate, liquidate, transfer or assign all or any part of the rights,
benefits and obligations created by such Transaction and/or the Master Swap
Agreement and/or to obtain or re-establish any hedge or related trading
position in any manner and with any person the Bank in its absolute discretion
may determine.

 

4.6.5        If a
Transaction has been entered into but no Advance is drawn down under this
Agreement and the Bank in its absolute discretion agrees, following a written
request of the Borrowers, that the Borrowers may be permitted to maintain all
or part of a Transaction, the Borrowers shall, within ten (10) days of being
notified by the Bank of such requirement, provide the Bank with, or procure the
provision to the Bank of, such additional security as shall in the opinion of
the Bank be adequate to secure the performance of such Transaction, which
additional security shall take such form, be constituted by such documentation
and be entered into between such parties, as the Bank in its absolute
discretion may approve or require, and each document comprising such additional
security shall constitute a Credit Support Document for the purposes of the
Master Swap Agreement and/or otherwise.

 

4.6.6        Without
prejudice to or limitation of the obligations of the Borrowers under
clause 4.6.3, in the event that the Bank exercises any of its rights under
clauses 4.6.1, 4.6.2, 4.6.4 or 4.6.5 and such exercise results in all or
part of a Transaction being terminated, such termination shall be treated under
the Master Swap Agreement in the same manner as if it were a Terminated
Transaction (as defined in section 14 of the Master Swap Agreement)
effected by the Bank after an Event of Default (as so defined in that
section 14) by the Borrowers and, accordingly, the Bank shall be permitted
to recover from the Borrowers a payment for early termination calculated in
accordance with the provisions of section 6(e)(i) of the Master Swap
Agreement.

 

5              Fees, commitment commission and expenses

 

5.1          Fees

 

The
Borrowers shall pay to the Bank:

 

5.1.1        an
arrangement fee of Three hundred and seventy five thousand Dollars ($375,000) on
the date of this Agreement;

 

5.1.2        on each
of the dates falling at three (3) monthly intervals after the date of this
Agreement until the earlier of (a) the last day of the last Drawdown Period to
elapse and (b) the Drawdown Date of the last Delivery Advance to be drawn down,
and on the earlier of such two dates, commitment commission computed from the
date of this Agreement (in the case of the first payment of commission) and
from the due date of the preceding payment of commission (in the case of each
subsequent payment) at the rate of zero point two five per cent (0.25%) per
annum on the daily undrawn amount of the Commitment;

 

5.1.3        on each
of the dates falling at monthly intervals after the date of this Agreement,
letter of credit commission on the Outstanding Amount of each L/C outstanding
during any part of the relevant monthly period, computed in respect of each L/C
from its Issue Date until its Expiry Date at the following respective rates in
respect of each type of L/C:

 

(a)   in respect of
Documentary L/Cs, zero point two five per cent (0.25%) per annum;

 

(b)   in respect of
Transaction Related Standby L/Cs, zero point six two five per cent (0.625%) per
annum; and

 

(c)   in respect of
Direct Credit Substitutes, one point one two five per cent (1.125%) per annum;
and

 

5.1.4        on the
Issue Date for an L/C, a processing fee of $500 in respect of each L/C so
issued on such date.

 

41

 

The fee
referred to in clause 5.1.1 and the commissions referred to in
clauses 5.1.2 and 5.1.3 shall be non-refundable and shall be payable by
the Borrowers to the Bank whether or not any part of the Commitment is ever
advanced, any drawing is made under the Overdraft Facility or (except in the
case of the commission under clause 5.1.3) any L/C is ever issued.

 

5.2          Expenses

 

The
Borrowers shall pay to the Bank on a full indemnity basis on demand all
expenses (including legal, printing and out-of-pocket expenses)
incurred by the Bank:

 

5.2.1        in
connection with the negotiation, preparation, execution and, where relevant,
registration of the Security Documents and of any amendment or extension of or
the granting of any waiver or consent under, any of the Security Documents; and

 

5.2.2        in contemplation
of, or otherwise in connection with, the enforcement of, or preservation of any
rights under, any of the Security Documents, or otherwise in respect of the
moneys owing under any of the Security Documents,

 

together with
interest at the rate referred to in clause 3.4 from the date on which such
expenses were incurred to the date of payment (as well after as before
judgment).

 

5.3          Value
Added Tax

 

All fees,
commissions and expenses payable pursuant to this clause 5 shall be paid
together 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 shall, on
delivery of the value added tax invoice, be paid in addition to any sum agreed
to be paid hereunder.

 

5.4          Stamp
and other duties

 

The
Borrowers shall pay all stamp, documentary, registration or other like duties
or taxes imposed on or in connection with any of the Underlying Documents, the
Security Documents, the Overdraft Facility, the Guarantee Facility, the Loan,
the Outstandings or the L/Cs and shall indemnify the Bank against any liability
arising by reason of any delay or omission by the Borrowers to pay such duties
or taxes.

 

6              Payments and taxes; accounts and
calculations

 

6.1          No
set-off or counterclaim

 

The
Borrowers acknowledge that in performing its obligations under this Agreement,
the Bank will be incurring liabilities to third parties in relation to the
funding of amounts to the Borrowers, such liabilities matching the liabilities
of the Borrowers to the Bank and that it is reasonable for the Bank to be
entitled to receive payments from the Borrowers gross on the due date in order
that the Bank is put in a position to perform its matching obligations to the
relevant third parties.  Accordingly, all
payments to be made by the Borrowers under any of the Security Documents shall
be made in full, without any set-off or counterclaim whatsoever and,
subject as provided in clause 6.6, free and clear of any deductions or
withholdings, in Dollars or the relevant Optional Currency in which they are
denominated (except for charges or expenses which shall be paid in the currency
in which they are incurred) on the due date (for value on the day on which
payment is due) to the account of the Bank as follows:

 

6.1.1        if in
Dollars:

 

(a)   by not later
than 11.00 a.m. (New York time) on the due date;

 

(b)   in same day
Dollar funds settled through the New York Clearing House Interbank Payments
System (or in such other Dollar funds and/or settled in such other manner as 

 

42

 

the Bank shall
specify as being customary at the time for the settlement of international
transactions of the type contemplated by this Agreement); and

 

(c)   to the account
of the Bank at American Express Bank Limited, 23rd Floor, American Express
Tower, 200 Vesey Street, New York, NY 10285-2300, U.S.A. (Account No
000261123), or to such other account with such other bank as the Bank may from
time to time notify to the Borrowers;

 

6.1.2        if in an
Optional Currency (other than euros and Sterling):

 

(a)   by not later
than 11.00 a.m. local time in the place for payment (or such other time as may
be required law or practice for the settlement of foreign exchange transactions
in the place of payment) on the due date; and

 

(b)   in lawful
money of the country of that currency which is freely transferable and
convertible into Dollars and in immediately available funds to the account of
such bank in such place in the country of that currency as the Bank shall from
time to time notify to the Borrowers;

 

6.1.3        if in
Sterling:

 

(a)   by not later
than 11.00 a.m. (London time) on the due date;

 

(b)   in immediately
available funds; and

 

(c)   to such
account of the Bank with such bank as the Bank shall from time to time notify
to the Borrowers; and

 

6.1.4        if in
euros:

 

(a)   by not later
than 11.00 a.m. (Greek time) on the due date;

 

(b)   in immediately
available funds; and

 

(c)   to such
account of the Bank with such bank as the Bank shall from time to time notify
to the Borrowers.

 

6.2          Payment
by the Bank

 

All
sums to be advanced by the Bank to the Borrowers under this Agreement:

 

6.2.1        if in
respect of the Term Loan shall be remitted in Dollars on the Drawdown Date for
the relevant Advance to the account specified in the Drawdown Notice for such
Advance; or

 

6.2.2        if in
respect of the Overdraft shall be paid in Dollars in accordance with the AMPSA
Borrower’s instructions and pursuant to clauses 2.8 and 2.9.1.

 

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:

 

43

 

(a)   in the case of
payments denominated in Dollars or an Optional Currency other than Sterling or
Hong Kong Dollars, on the basis of a three hundred and sixty (360) day year; or

 

(b)   in the case of
payments denominated in Sterling or Hong Kong Dollars, on the basis of a three
hundred and sixty five (365) day year.

 

6.5          Certificates
conclusive

 

Any
certificate or determination of the Bank as to any rate of interest, rate of
exchange or any other amount pursuant to and for the purposes of any of the
Security Documents shall, in the absence of manifest error, be conclusive and
binding on the Borrowers.

 

6.6          Grossing-up
for Taxes

 

If at
any time the Borrowers are required to 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 shall 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 required to be made and the Borrowers shall indemnify the Bank
against any losses or costs 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 shall 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 shall maintain, in accordance with its usual practice, an account or
accounts evidencing the amounts from time to time lent by, owing and paid to,
it under the Security Documents.  Such
account shall be the “account current” referred to in any Mortgage which shall
be in a statutory form.  Such 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          Types
of L/C

 

For all
purposes of this Agreement the Bank shall determine, which determination shall
be conclusive and binding on the Borrowers, whether an L/C is to be classified
as a Documentary L/C, a Transaction Related Standby L/C or a Direct Credit
Substitute.

 

7              Representations and warranties

 

7.1          Continuing
representations and warranties

 

The
Borrowers jointly and severally represent and warrant to the Bank that:

 

7.1.1        Due
incorporation

 

each of
the Borrowers and each of the other Security Parties are duly incorporated and
validly existing in good standing under the laws of their respective countries
of incorporation as corporations or (as the case may be) as companies with
limited liability and have power to carry on their respective businesses as
they are now being conducted and to own their respective property and other
assets;

 

7.1.2        Corporate
power

 

each of
the Borrowers has power to execute, deliver and perform its obligations under
the Borrowers’ Security Documents and the Underlying Documents to which it is
or is to be a party 

 

44

 

and to
borrow the Commitment, the Overdraft and any loans made by the Bank under
clause 2.23.3, and each of the other Security Parties has power to execute and
deliver and perform its obligations under the Security Documents and the
Underlying Documents to which it is or is to be a party; all necessary
corporate, shareholder and other action has been taken to authorise the
execution, delivery and performance of the same and no limitation on the powers
of either Borrower to borrow will be exceeded as a result of borrowing the Loan
or any other loans made by the Bank under clause 2.23.3 or any other
transaction contemplated by this Agreement or the other Security Documents;

 

7.1.3        Binding
obligations

 

the
Underlying Documents and the Security Documents constitute or will, when
executed, 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 (a) contravene any existing applicable
law, statute, rule or regulation or any judgment, decree or permit to which
either of the Borrowers or any other Security Party is subject,
(b) 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 either
of the Borrowers or any other Security Party is a party or is subject or by
which it or any of its property is bound, (c) contravene or conflict with
any provision of the constitutional documents of either of the Borrowers or any
other Security Party or (d) result in the creation or imposition of or oblige
either of the Borrowers or any other Security Party to create any Encumbrance
(other than a Permitted Encumbrance) on any of the undertakings, assets, rights
or revenues of the Borrowers or any other Security Party;

 

7.1.5        No litigation

 

no
litigation, arbitration or administrative proceeding is taking place, pending
or, to the knowledge of any of the officers of the Borrowers, threatened
against either of the Borrowers or any other Security Party which could have a
material adverse effect on the business, assets or financial condition of
either of the Borrowers or any of their Related Companies or any other Security
Party;

 

7.1.6        No filings required

 

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

 

7.1.7        Choice of law

 

the
choice of English law to
govern the Underlying Documents and the Security Documents (other than the
Mortgages), the choice of the law of the relevant Flag State to govern each
Mortgage, and the submissions by the Security Parties to the non-exclusive
jurisdiction of the English courts, are valid and binding;

 

7.1.8        No immunity

 

neither
of the Borrowers nor any other Security Party nor any of their respective
assets is entitled to immunity on the grounds of sovereignty or otherwise from
any legal action or proceeding 

 

45

 

(which
shall include, without limitation, suit, attachment prior to judgement, execution
or other enforcement);

 

7.1.9        Consents obtained

 

every
consent, authorisation, licence or approval of, or registration with or
declaration to, governmental or public bodies or authorities or courts required
by any Security Party to authorise, or required by any Security Party in
connection with, the execution, delivery, validity, enforceability or
admissibility in evidence of each of the Underlying Documents and the Security
Documents or the performance by each Security Party of its obligations under
the Underlying Documents and the Security Documents has been obtained or made
and is in full force and effect and there has been no default in the observance
of any of the conditions or restrictions (if any) imposed in, or in connection
with, any of the same; and

 

7.1.10      Shareholdings

 

each of
the AMPSA Borrower, each Owner and the Corporate Guarantor are wholly-owned
direct Subsidiaries of the AMPNI Borrower and:

 

(a)   on the date of this Agreement and
at all times thereafter until the Listing, all of the issued shares of the
AMPNI Borrower are ultimately beneficially owned by such person or persons as
disclosed by or on behalf of the Borrowers to the Bank in the negotiation of
this Agreement; and

 

(b)   from the Listing Date and at all
times thereafter, no less than 35% of the total issued and voting share capital
of the AMPNI Borrower shall be ultimately beneficially owned by Mr Dimitrios
Melissanidis.

 

7.2          Initial representations and warranties

 

The
Borrowers jointly and severally further represent and warrant to the Bank that:

 

7.2.1        Pari passu

 

the
obligations of each Borrower under this Agreement and the Master Swap Agreement
are direct, general and unconditional obligations of such Borrower and rank at
least pari passu with all other present and future unsecured and unsubordinated
Indebtedness of such Borrower (with the exception of any obligations which are
mandatorily preferred by law and not by contract);

 

7.2.2        No default under other
Indebtedness

 

neither
of the Borrowers nor any of their respective Related Companies nor any other
Security Party is (nor would with the giving of notice or lapse of time or the
satisfaction of any other condition or combination thereof be) in breach of or
in default under the Master Swap Agreement or any other agreement relating to
Indebtedness to which it is a party or by which it may be bound;

 

7.2.3        Information

 

the
information, exhibits and reports furnished by any Security Party to the Bank
in connection with the negotiation and preparation of the Security Documents
are true and accurate in all material respects and not misleading, do not omit
material facts and all reasonable enquiries have been made to verify the facts
and statements contained therein; there are no other facts the omission of
which would make any fact or statement therein misleading;

 

7.2.4        No withholding Taxes

 

no
Taxes are imposed by withholding or otherwise on any payment to be made by any
Security Party under the Underlying Documents or the Security Documents or are
imposed on or by virtue of the execution or delivery by the Security Parties of
the Underlying Documents or the 

 

46

 

Security
Documents or any other document or instrument to be executed or delivered under
any of the Security Documents;

 

7.2.5        No Default

 

no
Default has occurred and is continuing;

 

7.2.6        No Default under Contracts,
Supervision Contracts or Refund Guarantees

 

no
Newbuilding Owner is in default of any of its obligations under the relevant
Contract or the relevant Supervision Contract or any of its obligations upon
the performance or observance of which depend the continued liability of any
Refund Guarantor in accordance with the terms of any Refund Guarantee relating
to such Newbuilding Owner’s Newbuilding;

 

7.2.7        No Encumbrance in respect of
pre-delivery security

 

no
Newbuilding Owner has previously charged, encumbered or assigned the benefit of
any of its rights, title and interest in or to the Contract or the Supervision
Contract or any Refund Guarantee relating to such Newbuilding Owner’s
Newbuilding and such benefit and all such rights, title and interest are freely
assignable and chargeable in the manner contemplated by the Security Documents;

 

7.2.8        The Ships

 

(a)   each Newbuilding will be on the
Drawdown Date of the Delivery Advance relevant to such Newbuilding; and

 

(b)   each Additional Ship will be on the
Additional Mortgage Date for that Ship; and

 

(c)   each Ship (other than the
Newbuildings and the Additional Ships) will be on the first Drawdown Date under
this Agreement:

 

(i)         in the absolute ownership of
the relevant Owner who will, on and after such date, be the sole, legal and
beneficial owner of such Ship;

 

(ii)        registered in the name of the
relevant Owner through the relevant Registry as a ship under the laws and flag
of the relevant Flag State;

 

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

 

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

 

7.2.9        Ships’ employment

 

none of the Ships will be:

 

(a)   in the case of each Newbuilding, on
the Drawdown Date of the relevant Delivery Advance; or

 

(b)   in the case of an Additional Ship,
on the Additional Mortgage Date for that Ship; or

 

(c)   in the case of each Ship (other than
a Newbuilding or an Additional Ship), on the first Drawdown Date under this
Agreement,

 

subject to any charter or contract or to any agreement to enter into
any charter or contract which, if entered into after the date of the relevant
Ship Security Documents would have required the consent of the Bank and:

 

47

 

(i)    on or before the Drawdown Date of
the Delivery Advance relevant to a Newbuilding, there will not be any agreement
or arrangement whereby the Earnings of that Newbuilding may be shared with any
other person; and

 

(ii)   on or before the Additional
Mortgage Date in respect of an Additional Ship, there will not be any agreement
or arrangement whereby the Earnings of that Ship may be shared with any other
person; and

 

(iii)  on the first Drawdown Date, there
will not be any agreement or arrangement whereby the Earnings of any Ship
(other than the Newbuildings and the Additional Ships) may be shared with any
other person;

 

7.2.10      Freedom from Encumbrances

 

(a)   no Newbuilding, nor its Earnings,
Insurances or Requisition Compensation nor any other properties or rights which
are, or are to be, the subject of any of the Ship Security Documents relating
to that Newbuilding nor any part thereof will be, on the Drawdown Date of the
Delivery Advance relevant to such Newbuilding, subject to any Encumbrance
(other than Permitted Encumbrances);

 

(b)   no Additional Ship nor its
Earnings, Insurances or Requisition Compensation nor any other properties or
rights which are, or are to be, the subject of any of the Ship Security
Documents relating to that Additional Ship nor any part thereof will be, on the
Additional Mortgage Date for that Ship, subject to any Encumbrance (other than
Permitted Encumbrances); and

 

(c)   no Ship (other than a Newbuilding
or an Additional Ship) nor its Earnings, Insurances or Requisition Compensation
nor any other properties or rights which are or are to be the subject of any of
the Ship Security Documents relating to that Ship, nor any of the Accounts nor
the Receivables nor any part thereof will be, on the first Drawdown Date under
this Agreement, subject to any Encumbrances (other than Permitted
Encumbrances);

 

7.2.11      Compliance with Environmental
Laws and Approvals

 

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

 

(a)   the Borrowers and the other
Relevant Parties and, to the best of the Borrowers’ knowledge and belief
(having made due enquiry), their respective Environmental Affiliates have
complied with the provisions of all Environmental Laws;

 

(b)   the Borrowers and the other
Relevant Parties and, to the best of the Borrowers’ knowledge and belief
(having made due enquiry), their respective Environmental Affiliates have
obtained all Environmental Approvals and are in compliance with all such
Environmental Approvals; and

 

(c)   neither the Borrowers nor any other
Relevant Party nor, to the best of the Borrowers’ knowledge and belief (having
made due enquiry), any of their respective Environmental Affiliates has
received notice of any Environmental Claim that the Borrowers or either of them
or any other Relevant Party or any such Environmental Affiliate is not in
compliance with any Environmental Law or any Environmental Approval;

 

7.2.12      No Environmental Claims

 

except
as may already have been disclosed by the Borrowers in writing to, and
acknowledged in writing by, the Bank, there is no Environmental Claim pending
or, to the best of the Borrowers’ knowledge and belief, threatened against any
of the Owners or any of the Ships or any other Relevant Party or any other
Relevant Ship or, to the best of the Borrowers’ knowledge and belief (having
made due enquiry), any of their respective Environmental Affiliates;

 

48

 

7.2.13      No potential Environmental
Claims

 

except
as may already have been disclosed by the Borrowers in writing to, and
acknowledged in writing by, the Bank, there has been no emission, spill,
release or discharge of a Pollutant from any of the Ships or any other Relevant
Ship owned by, managed or crewed by or chartered to any of the Owners nor, to
the best of the Borrowers’ knowledge and belief (having made due enquiry), from
any Relevant Ship owned by, managed or crewed by or chartered to any other
Relevant Party which could give rise to an Environmental Claim;

 

7.2.14      No material adverse change

 

there
has been no material adverse change in the financial position of the Borrowers
or the Owners or the Corporate Guarantor or any other Relevant Party or the
consolidated financial position of the Group, from that described by the
Borrowers to the Bank in the negotiation of this Agreement;

 

7.2.15      ISPS Code

 

(a)   on the Drawdown Date of the
Delivery Advance for a Newbuilding, the relevant Newbuilding Owner shall have a
valid and current ISSC in respect of that Newbuilding and such Newbuilding
shall be in compliance with the ISPS Code;

 

(b)   on the Additional Mortgage Date for
an Additional Ship, the relevant Additional Owner shall have a valid and
current ISSC in respect of that Ship and such Ship shall be in compliance with
the ISPS Code; and

 

(c)   on the first Drawdown Date under
this Agreement, the Owner of each Ship (other than the Newbuildings and the
Additional Ships), shall have a valid and current ISSC in respect of its Ship
and each such Ship shall be in compliance with the ISPS Code;

 

7.2.16      Copies true and complete -
commissions

 

(a)   the copies of each of the
Underlying Documents (other than the Refund Guarantees) delivered or to be
delivered to the Bank pursuant to clause 9.1 are, or will when delivered
be, true and complete copies of such documents; each of such document
constitutes valid and binding obligations of the parties thereto enforceable in
accordance with its terms and there will have been no amendments or variations
thereof or defaults thereunder; and

 

(b)   there are no address or other
commissions payable to any of the Newbuilding Owners or any other Relevant
Party or other person on account of any of the Contracts and the Supervision
Contracts, except as disclosed in writing by or on behalf of the Borrowers or
any other Security Party to the Bank prior to the date of this Agreement;

 

7.2.17      Refund Guarantees

 

the
original executed copy of each Refund Guarantee delivered or to be delivered to
the Bank pursuant to clause 9 is, or will when delivered be, a true and
complete original of such document; each such document will, when delivered,
constitute valid and binding obligations of the relevant Refund Guarantor
enforceable in accordance with its terms and there will have been no amendments
or variations thereof or defaults thereunder; and

 

7.2.18      Application for DOC and SMC

 

the
Operator of each Ship has applied for a DOC for itself and an SMC in respect of
each Ship (other than the Newbuildings and each Additional Ship) and:

 

(a)   on the Drawdown Date of the
Delivery Advance for a Newbuilding, it will have applied, for an SMC in respect
of such Newbuilding; and

 

49

 

(b)         on the Additional Mortgage
Date for an Additional Ship, it will have applied for an SMC in respect of such
Ship,

 

and neither of
the Borrowers nor the Operator of any Ship is aware of any reason why any such
application may be refused.

 

7.3                               Repetition of representations and warranties

 

On and
as of each Drawdown Date and each Issue Date of an L/C and (except in relation
to the representations and warranties in clause 7.2) on each Interest
Payment Date, the Borrowers shall (a) be deemed to repeat the representations
and warranties in clauses 7.1 and 7.2 as if made with reference to the
facts and circumstances existing on such day and (b) be deemed to further
represent and warrant to the Bank that the then latest audited consolidated
financial statements of the Group delivered to the Bank (if any) have been
prepared in accordance with the Applicable Accounting Principles which have
been consistently applied and present fairly and accurately the consolidated
financial position of the Group as at the end of the financial period to which
the same relate and the consolidated results of the operations of the Group for
the financial period to which the same relate, respectively, and, as at the end
of such financial period, neither the AMPNI Borrower nor any other member of
the Group 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.

 

8                                         Undertakings

 

8.1                               General

 

The
Borrowers jointly and severally undertake with the Bank that, from the date of
this Agreement and so long as any moneys are owing under any of the Security
Documents, whether actually or contingently, and while all or any part of the
Commitment remains outstanding or the Overdraft Facility or the Guarantee
Facility Commitment remains available, each Borrower will:

 

8.1.1                        Notice of
Default

 

(a)          promptly inform the Bank of
any occurrence of which it becomes aware which might adversely affect the
ability of any Security Party to perform its obligations under any of the
Security Documents or the Underlying Documents and, without limiting the
generality of the foregoing, will inform the Bank of any Default forthwith upon
becoming aware thereof and will from time to time, if so requested by the Bank,
confirm to the Bank in writing that, save as otherwise stated in such
confirmation, no Default has occurred and is continuing; and

 

(b)         promptly inform the Bank of
any occurrence of which it becomes aware which might adversely affect the
ability or rights of any Newbuilding Owner to make any claims under the
Contract or the Supervision Contract or any Refund Guarantee relating to such
Newbuilding Owner’s Newbuilding, which might reduce or release any of the
obligations of the Builders or either of them under such Contract or lota under
such Supervision Contract or of the relevant Refund Guarantor under such Refund
Guarantee (as the case may be);

 

8.1.2                        Consents and
licences

 

without
prejudice to clauses 7.1 and 9, obtain or cause to be obtained, maintain
in full force and effect and comply in all material respects with the
conditions and restrictions (if any) imposed in, or in connection with, every
consent, authorisation, licence or approval of governmental or public bodies or
authorities or courts and do, or cause to be done, all other acts and things
which may from time to time be necessary or desirable under applicable law for
the continued due performance of all the obligations of the Security Parties
under each of the Security Documents and the Underlying Documents;

 

50

 

8.1.3                        Use of
proceeds

 

(a)          without prejudice to
paragraph (b) below, use the Term Loan or, as the case may be, the Advances,
the Overdraft and the L/Cs exclusively for the relevant purposes specified in
clauses 1.1, 2.3 and 2.7; and

 

(b)         (in view of the fact that the
Overdraft Facility is to be used for working capital purposes), ensure that
there are fluctuating debit balances in the Overdraft Account at all times;

 

8.1.4                        Pari passu and
subordination of intra-Group loans

 

(a)          ensure that the obligations
of the Borrowers, each Owner and the Corporate Guarantor under this Agreement,
the Master Swap Agreement, each Owner’s Guarantee and the Corporate Guarantee, respectively,
shall, without prejudice to the provisions of clause 8.3 and the security
intended to be created by the Security Documents, at all times rank at least
pari passu with all their other respective present and future unsecured and
unsubordinated Indebtedness with the exception of any obligations which are
mandatorily preferred by law and not by contract; and

 

(b)         ensure that, to the extent
that the proceeds of any Advance (or part thereof) or the Overdraft Facility
are on-lent by the Borrowers to the Newbuilding Owners or any other Owner or
any other member of the Group in accordance with the specified purpose of any
such Advance or the Overdraft Facility pursuant to clauses 1.1, 2.3 and 2.7:

 

(i)                          the relevant
loan or loans shall be made on an unsecured basis and shall be fully
subordinated towards any moneys owing to the Bank, whether actually or
contingently, under this Agreement and the other Security Documents; and

 

(ii)                       neither the
relevant loan or loans nor any part thereof nor any interest accrued or
accruing thereon shall be repaid or paid to the Borrowers unless any and all
moneys owing to the Bank, whether actually or contingently, under this
Agreement and the other Security Documents (including the Aggregate
Liabilities) have been repaid in full;

 

8.1.5                        Financial
statements

 

prepare
or cause to be prepared consolidated financial statements of the Group in
accordance with the Applicable Accounting Principles consistently applied in
respect of each financial year and cause the same to be reported on by the
Group’s auditors and prepare or cause to be prepared consolidated financial
statements of the Group in respect of each financial half-year on the same
basis as the annual financial statements, and deliver to the Bank as many
copies of the same as the Bank may reasonably require as soon as practicable
but not later than ninety (90) days (in the case of annual financial
statements) and thirty (30) days (in the case of semi-annual financial
statements) after the end of the financial period to which they relate;

 

8.1.6                        Delivery of
reports

 

deliver
to the Bank as many copies as the Bank may reasonably require of every report,
circular, notice or like document issued by the Borrowers, the Corporate
Guarantor, each Owner, any other member of the Group or any of their respective
Related Companies to their shareholders or creditors generally, in each case at
the time of issue thereof;

 

8.1.7                        Provision of
further information

 

provide
the Bank with such financial and other information concerning the Group, the
Borrowers, the other Security Parties, the other Relevant Parties and their
respective affairs, at the earliest possible opportunity and in any event at
regular intervals of not more than three (3) months and at all other times as
the Bank may from time to time require, including, without limitation, any
management information, information relating to the Builders and the
construction of the Newbuildings, information relating to the position, trading
and/or employment of the Ships and any actual or proposed purchase of vessels
by any member of the Group, copies of all documents required of the AMPNI
Borrower to file with the Securities and Exchange 

 

51

 

Commission
of the U.S.A. or pursuant to the Sarbanes-Oxley Act of the U.S.A. and any other
documents or information as may be reasonably required by the Bank;

 

8.1.8                        Obligations
under Security Documents

 

and
will procure that each of the other Security Parties will, duly and punctually
perform each of the obligations expressed to be assumed by it under the
Security Documents and the Underlying Documents;

 

8.1.9                        Compliance
with Code

 

and
will procure that any Operator will, comply with, and ensure that each Ship and
any Operator at all times complies with, the requirements of the Code,
including (but not limited to) the maintenance and renewal of valid
certificates pursuant thereto throughout the Security Period;

 

8.1.10                  Withdrawal of DOC
and SMC

 

and
will procure that any Operator will, immediately inform the Bank if there is
any threatened or actual withdrawal of such Operator’s DOC or the SMC in
respect of any Ship;

 

8.1.11                  Issuance of DOC and
SMC

 

and
will procure that any Operator will, promptly inform the Bank upon the issuance
to any Operator of a DOC and to each Ship of an SMC or the receipt by any of
the Owners or any Operator of notification that its application for the same
has been refused;

 

8.1.12                  ISPS Code compliance

 

and
will procure that the relevant Manager or any Operator will:

 

(a)          from the Drawdown Date of
the Delivery Advance for a Newbuilding and at all times thereafter, maintain a
valid and current ISSC in respect of that Newbuilding;

 

(b)         from the Additional Mortgage
Date for an Additional Ship and at all times thereafter, maintain at all times
a valid and current ISSC respect of that Additional Ship;

 

(c)          from the first Drawdown Date
under this Agreement and at all times thereafter, maintain a valid and current
ISSC in respect of each Ship (other than the Newbuildings and the Additional Ships);

 

(d)         immediately notify the Bank
in writing of any actual or threatened withdrawal, suspension, cancellation or
modification of the ISSC in respect of any Ship;

 

(e)          procure that, from the
Drawdown Date of the Delivery Advance for a Newbuilding and at all times
thereafter, that Newbuilding will comply at all times with the ISPS Code;

 

(f)            procure that, from the
Additional Mortgage Date for an Additional Ship, that Additional Ship will
comply at all times with the ISPS Code; and

 

(g)         procure that each Ship (other
than the Newbuildings and the Additional Ships) will comply at all times with
the ISPS Code;

 

8.1.13                  “KYC” requirements

 

deliver to the Bank such
documents and evidence as the Bank shall from time to time require, based on
applicable law and regulations and the Bank’s own internal guidelines from time
to time, in each case, relating to the verification of identity and knowledge
of the Bank’s customers and to the opening of bank accounts by any Security
Party (including the Accounts);

 

52

 

8.1.14                  Minimum liquidity

 

(a)          maintain at all times in the
AMPNI Operating Account cash balances of no less than the Required Amount
(excluding any amounts then standing to the credit of the AMPNI Operating
Account and which are taken into account for the purposes of testing the
Borrowers’ compliance with clause 8.6.1(c); and

 

(b)         for the purposes of this
clause 8.1.14, “Required Amount” means $22,000,000
as such amount may be reduced from time to time pursuant to clause 14.2.1(c);
and

 

8.1.15                  Conditions
subsequent - additional security

 

(a)          within seven (7) days
following a relevant request by the Bank to the Borrowers and the relevant
Collateral Owner(s) in writing in respect of one or more Collateral Ships,
deliver to the Bank, and/or procure that the relevant Collateral Owner(s) (as
the case may be) execute(s) and deliver(s) to the Bank, the documents and
evidence set out in schedule 10, Part 1 in respect of such Collateral Ship(s),
in form and substance satisfactory to the Bank and at the cost and expense of
the Borrowers; and

 

(b)         on or prior to the time of a
withdrawal of funds from the AMPNI Operating Account in accordance with clause
14.2.1(b) in connection with the acquisition of an Additional Ship by the relevant
Additional Owner, deliver to the Bank, and/or procure that the relevant
Additional Owner executes and delivers to the Bank, the documents and evidence
set out in schedule 10, Part 2 in respect of that Additional Ship, in form and
substance satisfactory to the Bank and at the cost and expense of the
Borrowers.

 

8.2                               Security value maintenance

 

8.2.1                        Security
shortfall

 

If at
any time the Security Value shall be less than the Security Requirement, the
Bank may give notice to the Borrowers requiring that such deficiency be
remedied and then the Borrowers shall at their discretion either:

 

(a)          prepay within a period of
fourteen (14) days of the date of receipt by the Borrowers of the Bank’s said
notice such sum of the Term Loan or the Overdraft in Dollars as will result in
the Security Requirement after such prepayment (taking into account any other
repayment made in accordance with clause 4.1 between the date of the notice and
the date of such prepayment) being at least equal to the Security Value; or

 

(b)         within fourteen (14) days of
the date of receipt by the Borrowers of the Bank’s said notice constitute to
the satisfaction of the Bank such further security for the Aggregate
Liabilities as shall be acceptable to the Bank having a value for security purposes
(as determined by the Bank in its discretion) at the date upon which such
further security shall be constituted which, when added to the Security Value,
shall not be less than the Security Requirement as at such date.

 

The
provisions of clauses 4.4 and 4.5 shall apply to prepayments made under
clause 8.2.1(a).

 

8.2.2                        Valuation of
Mortgaged Ships

 

(a)          Each Mortgaged Ship shall,
for the purposes of this clause 8.2, be valued in Dollars at the end of
every financial quarter and at any other times as and when the Bank shall
require.  Subject to paragraph (b) below,
each such valuation shall be made by an independent firm of shipbrokers
nominated by the Borrowers and approved by the Bank in its sole discretion or,
failing such nomination or approval, appointed by the Bank in its sole
discretion.  Each such valuation of a
Mortgaged Ship shall be addressed to the Bank and made without, unless required
by the Bank, physical inspection and on the basis of a sale for prompt delivery
for cash at arm’s length on normal commercial terms, as between a willing buyer
and a willing seller and without taking into account the benefit of any
charterparty or other engagement concerning the relevant Mortgaged Ship.  Such valuation shall constitute the value of
such Mortgaged Ship for the purposes of this

 

53

 

clause 8.2
unless the Bank objects to the valuation of the relevant Mortgaged Ship
provided by the shipbroker nominated by the Borrowers within seven (7) days of
receipt of such valuation, in which event the value of such Mortgaged Ship
shall be the arithmetic mean of the value specified in such valuation and the
value specified in a further valuation issued by an independent firm of
shipbrokers appointed by the Bank and made on the same basis as specified above.

 

(b)         In the case of a Ship which
is a single hull vessel, its market value for the purposes of this clause 8.2
shall be the then prevailing scrap value of such Ship as determined by the Bank
in its sole discretion.

 

(c)          The value of each Mortgaged
Ship determined in accordance with the provisions of this clause 8.2.2
shall be binding upon the parties hereto until such further date when the
market value of such Mortgaged Ship is determined by the Bank pursuant to this
clause 8.2.2.

 

8.2.3                        Information

 

The
Borrowers jointly and severally undertake to the Bank to supply to the Bank and
to any such shipbrokers such information concerning each Mortgaged Ship and its
condition as such shipbrokers may reasonably require for the purpose of making
any such valuation.

 

8.2.4                        Costs

 

All
costs in connection with the Bank obtaining any valuation of each of the
Mortgaged Ships referred to in clause 8.2.2 and in schedule 2, Part 5,
paragraph 19, and any valuation either of any additional security for the
purposes of ascertaining the Security Value at any time or necessitated by the
Borrowers electing to constitute additional security pursuant to
clause 8.2.1(b), shall be borne by the Borrowers.

 

8.2.5                        Valuation of
additional security

 

For the
purposes of this clause 8.2, the market value of any additional security
provided or to be provided to the Bank shall be determined by the Bank in its
absolute discretion without any necessity for the Bank assigning any reason
thereto.

 

8.2.6                        Documents and
evidence

 

In
connection with any additional security provided in accordance with this
clause 8.2, the Bank shall be entitled to receive such evidence and
documents of the kind referred to in schedule 2 as may in the Bank’s
opinion be appropriate and such favourable legal opinions as the Bank shall in
its absolute discretion require.

 

8.2.7                        Excess Actual
Exposure - security value maintenance

 

(a)          Without prejudice to clause
8.2.1 and the test contained therein, if at any time (1) the Actual Exposure is
in excess of $100,000,000 and (2) the relevant excess is higher than the
aggregate of:

 

(i)             eighty per cent (80%) of
the face value of the aggregate of all Qualifying Receivables; and

 

(ii)          the sum then standing to the
credit of the Cash Collateral Account,

 

then the Bank may give notice to the Borrowers requiring that such
deficiency be remedied and then the Borrowers shall, within two (2) days of the
date of receipt by the Borrowers of the Bank’s said notice, at their discretion
either:

 

(A)                      prepay a part of
the Loan; and/or

 

54

 

(B)                        provide
further Receivables which are Qualifying Receivables by delivering to the Bank
a Schedule of Receivables with such further Receivables together with copies of
documents, receipts and invoices of the type specified in clause 2.12 and
relating to such Receivables; and/or

 

(C)                        place further
funds to the credit of the Cash Collateral Account.

 

(b)         The Borrowers shall provide
the Bank with such information, including without limitation Schedules of
Receivables, as the Bank shall from time to time require for the purposes of
giving effect to this clause 8.2.7.

 

(c)          The Bank shall test the
Borrowers’ compliance with this clause 8.2.7 at the end of every financial
quarter and at any other times as and when the Bank shall require (but not more
frequently than once per week) and, in any event, on each Reset Date.

 

8.3                               Negative undertakings

 

The
Borrowers jointly and severally undertake with the Bank that, from the date of
this Agreement and so long as any moneys are owing under the Security
Documents, whether actually or contingently, and while all or any part of the
Commitment remains outstanding or the Overdraft Facility or the Guarantee
Facility Commitment remain available, without the prior written consent of the
Bank:

 

8.3.1                        Negative
pledge

 

the
Borrowers will not permit any Encumbrance (other than a Permitted Encumbrance)
to subsist, arise or be created or extended over all or any part of their
respective present or future undertakings, assets, rights or revenues
(including, but not limited to, the Borrowers’ rights against the Bank under
any Transactions and/or the Master Swap Agreement or all or any part of the
Borrowers’ interest in any amount payable to the Borrowers by the Bank under
any Transactions and/or the Master Swap Agreement)  in order to secure or prefer any present or
future Indebtedness or other liability or obligation of the Borrowers or either
of them or any Security Party or any other person;

 

8.3.2                        No merger

 

the
Borrowers will not merge or consolidate with any other person or enter into any
demerger, amalgamation, corporate reconstruction or redomiciliation of any
type;

 

8.3.3                        Disposals

 

the
Borrowers will not sell, transfer, abandon, lend or otherwise dispose of or
cease to exercise direct control over any part (being either alone or when
aggregated with all other disposals falling to be taken into account pursuant
to this clause 8.3.3 material in the opinion of the Bank in relation to
the undertaking, assets, rights and revenues of the relevant Borrower taken as
a whole) of their respective present or future undertaking, assets, rights or
revenues (otherwise than by transfers, sales or disposals for full
consideration in the ordinary course of trading) whether by one or a series of
transactions related or not;

 

8.3.4                        Other business

 

neither
the Borrowers nor the Group as a whole will undertake any business other than
the business carried out by them on the date of this Agreement;

 

8.3.5                        Acquisitions

 

the
AMPSA Borrower will not acquire any further assets other than in the ordinary
course of its business or contracts for the sale of oil bunkers and lubricants;

 

55

 

8.3.6                        Other
obligations

 

the
AMPSA Borrower will not incur any obligations except for obligations arising
under the Underlying Documents or the Security Documents or contracts entered
into in the ordinary course of its business or contracts for the sale of oil
bunkers and lubricants;

 

8.3.7                        No borrowing

 

the
AMPSA Borrower will not incur any Borrowed Money except for Borrowed Money
pursuant to the Security Documents;

 

8.3.8                        Repayment of
borrowings

 

the
AMPSA Borrower will not repay the principal of, or pay interest on or any other
sum in connection with any of its Borrowed Money except for Borrowed Money
pursuant to the Security Documents;

 

8.3.9                        Loans

 

the
AMPSA Borrower will not make any loans or grant any credit (save for normal
trade credit in the ordinary course of business) to any person or agree to do so;

 

8.3.10                  Sureties

 

the
AMPSA Borrower will not permit any of its Indebtedness to any person (other
than the Bank) to be guaranteed by any person save in the ordinary course of
its business or by the Bank by way of L/Cs;

 

8.3.11                  Share capital and
distribution

 

the
AMPNI Borrower will not:

 

(a)          purchase or otherwise
acquire for value any shares of its capital or distribute any of its other
present or future assets, undertaking, rights or revenues to any of its
shareholders; or

 

(b)         declare or pay any dividends
to any of its shareholders if an Event of Default has occurred or will or, in
the opinion of the Bank, is likely to occur as a result of, or following, the
declaration or payment of dividends;

 

8.3.12                  Subsidiaries

 

the
AMPSA Borrower will not form or acquire any Subsidiaries save in the ordianry
course of its business;

 

8.3.13                  Manager

 

the
Borrowers will not permit the appointment of any manager of any of the Ships
other than the relevant Manager or the termination or amendment of the terms of
any of the Management Agreements; or

 

8.3.14                  Shareholdings

 

the
Borrowers will not:

 

(a)          prior to the Listing,
change, cause or permit any change in, the legal and/or ultimate beneficial
ownership of any of the shares in either of the Borrowers or the Corporate Guarantor
or any of the Owners from that existing on the date of this Agreement as
specified in clause 7.1.10; or

 

(b)         after the Listing, change,
cause or permit any change in, the legal and/or ultimate beneficial ownership
of any of the shares in the AMPNI Borrower which would result in Mr Dimitrios
Melissanidis being the ultimate beneficial owner of less than 35% of the total
issued voting share capital of the AMPNI Borrower; or

 

56

 

(c)          after the Listing, change,
cause or permit any change in, the legal and/or beneficial ownership of any of
the shares in the AMPSA Borrower or any Owner or the Corporate Guarantor which
would result in any such Security Party ceasing to be a wholly-owned direct or
indirect Subsidiary of the AMPNI Borrower.

 

8.4                               Pre-delivery positive undertakings

 

The
Borrowers hereby jointly and severally undertake and agree with the Bank that
they will:

 

8.4.1                        Conveyance on
default

 

procure
that, where any Newbuilding is (or is to be) sold in exercise of any power
contained in the relevant Pre-delivery Security Assignment or otherwise
conferred on the Bank, the relevant Newbuilding Owner will execute, forthwith
upon request by the Bank, such form of conveyance of such Newbuilding as the
Bank may require;

 

8.4.2                        Flag State

 

procure
that, not later than thirty (30) days prior to the Delivery Date of each
Newbuilding, the Borrowers and the relevant Newbuilding Owner obtain the Bank’s
written approval of the Flag State for such Newbuilding; and

 

8.4.3                        Mortgage

 

immediately
upon Delivery of each Newbuilding procure that the relevant Newbuilding Owner
shall execute, and procure the registration of, the Mortgage over such
Newbuilding under the laws and flag of the relevant Flag State and execute and
provide all other documents and evidence as specified in Part 5 of
schedule 2 in respect of such Newbuilding.

 

8.5                               Pre-delivery negative undertaking

 

The
Borrowers hereby jointly and severally further undertake and agree with the
Bank that they will procure that no Newbuilding Owner will, without the prior
written consent of the Bank (and then only subject to such conditions as the
Bank may impose), let or agree to let its Newbuilding:

 

8.5.1                        on demise
charter for any period; or

 

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

 

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

 

8.5.4                        below the
market rate prevailing at the time when the relevant Newbuilding is fixed.

 

8.6                               Financial undertakings

 

8.6.1                        The Borrowers
jointly and severally undertake with the Bank that, from the date of this
Agreement and so long as any moneys are owing under the Security Documents and
while all or any part of the Commitment, the Overdraft Facility or the
Guarantee Facility Commitment remains available, they will ensure that:

 

(a)          Consolidated Book Net Worth

 

the Consolidated Book Net Worth shall not be less than One hundred and
fifty million Dollars ($150,000,000) at the end of any Accounting Period;

 

(b)         Consolidated Leverage Ratio

 

the Consolidated Leverage Ratio shall not be higher than 0.65:1.0 at
the end of any Accounting Period; and

 

57

 

(c)          Liquidity

 

the AMPNI Borrower maintains on a consolidated basis:

 

(i)                          Consolidated
Liquid Funds of no less than $25,000,000 at the end of each calendar month [and
at the end of each Accounting Period]; and

 

(ii)                       Consolidated
Liquid Funds of no less than $10,000,000 on an average daily basis.

 

8.6.2                        All the terms
defined in clause 1.2 and used in this clause 8.6, and other
accounting terms used in this clause 8.6, are to be determined by the Bank
on a consolidated basis and (except as items are expressly included or excluded
in the relevant definition or provision) are used and shall be construed in
accordance with the Applicable Accounting Principles consistently applied and
as determined from any relevant Accounting Information and, in the case of the
undertaking set out in clause 8.6.1(c), also by reference to any other
information available to the Bank at any relevant time.

 

8.6.3                        The compliance
of the AMPNI Borrower with the undertakings set out in clause 8.6.1 shall
be determined by the Bank in its sole discretion on the basis of calculations
made by the Bank:

 

(a)          in the case of each such
undertaking (except that of clause
8.6.1(c)(ii)), at the end of each Accounting Period at the time when the
relevant Accounting Information has been delivered to the Bank pursuant to
clause 8.1.5; and

 

(b)         in the case of the
undertaking of clause 8.6.1(c)(i), also on the
last Banking Day of each calendar month; and

 

(c)          in the case of the
undertaking of clause 8.6.1(c)(ii), on each Friday of each week.

 

8.6.4                        Without
prejudice to the other terms of this clause 8.6 and, in particular, the
time when compliance with the financial undertakings of clause 8.6.1 is to
be measured by the Bank pursuant to clause 8.6.3, the Borrowers hereby jointly
and severally undertake that the financial undertakings of clause 8.6.1
will be complied with at all times during the whole term of each Accounting
Period.

 

8.6.5                        For the
purposes of this clause 8.6: (i) no item shall be deducted or credited
more than once in any calculation; and (ii) any amount expressed in a currency
other than Dollars shall be converted into Dollars in accordance with the
Applicable Accounting Principles consistently applied.

 

8.7                               Cash collateralisation of L/Cs

 

Without prejudice to clauses 2.29 and 9.3, forthwith
upon, or at any time following:

 

8.7.1                        the occurrence
of an Event of Default; or

 

8.7.2                        the service of
a notice under clause 12.1,

 

the Bank shall be entitled (but not obliged) to demand
payment by the Borrowers of, and the Borrowers forthwith upon such demand shall
pay to the Bank for credit to the Cash Collateral Account, such amount as shall
be the aggregate of the said Outstanding Amounts for all L/Cs.  Such payment shall be made in Dollars, except
in the case of any part of the said Outstanding Amounts which is a Settlement
Amount outstanding in an Optional Currency and unpaid, which shall be made in
the relevant Optional Currency.

 

8.8                               Right of first refusal

 

8.8.1                        If any member
of the Group (excluding the Security Parties) acquires a vessel (other than the
Ships and excluding, for the avoidance of doubt, any Additional Ships), the
AMPNI Borrower and the relevant member of the Group shall be entitled to
arrange for the financing of the acquisition 

 

58

 

of such
vessel by bank debt and to agree that such vessel shall be mortgaged in favour
of the relevant lender or lenders, subject to no Event of Default having
occurred and be continuing at such time and the Borrowers and the other
Security Parties being in compliance with all of their undertakings and
obligations under this Agreement and the other Security Documents.

 

8.8.2                        In any such
case, the Borrowers hereby grant the Bank a right of first refusal in
connection with the potential financing of each such vessel by way of (inter
alios) (a) increasing the Commitment hereunder and (b) obtaining such security
over each such vessel and its earnings and insurances as the Bank may in its
sole discretion require, and otherwise on such terms and conditions as the Bank
may propose to the Borrowers. In view of the above, the Borrowers hereby
undertake with the Bank to approach the Bank prior to any other potential
lender thereof, with a view to discussing with the Bank any such financing
proposal for any such vessel and to allow the Bank reasonable time to consider
a financing arrangement on the conditions set out above, before reaching an
agreement with any other lender.

 

8.8.3                        No term of
this clause 8.8 is or shall be interpreted as a commitment or agreement on the
part of the Bank to finance any such vessel.

 

9                                         Conditions

 

9.1                               Documents and evidence

 

9.1.1                        Commitment,
Overdraft Facility and L/Cs

 

(a)          The obligation of the Bank
to make the Commitment, the Overdraft Facility and the Guarantee Facility
available and to issue any L/C, shall be subject to the condition that the Bank
or its duly authorised representative shall have received, not later than two
(2) Banking Days before the date when the first Drawdown Notice is sent to the
Bank under this Agreement, the documents and evidence specified in Part 1 of
schedule 2, in form and substance satisfactory to the Bank.

 

(b)         The obligations of the Bank
to issue any L/C, shall be further subject to the condition that the Bank or
its duly authorised representative shall have received, on the Reset Date
immediately preceding the Issue Request for that L/C, a Schedule of Receivables
together with all other documentation required to be provided under clause 2.12
complying in all respects with clause 2.12.

 

(c)          For the avoidance of doubt,
the Bank shall not make the Overdraft Facility nor the Guarantee Facility
available, unless one or more Advances have been drawn down under this
Agreement.

 

9.1.2                        First Advances

 

The
obligation of the Bank to make available the First Advance in respect of any
Newbuilding shall be subject to the condition that the Bank or its duly
authorised representative shall have received, on or prior to the drawdown of
the relevant First Advance, the documents and evidence specified in Part 2 of
schedule 2 in respect of such Newbuilding, in form and substance
satisfactory to the Bank.

 

9.1.3                        Second
Advances

 

The
obligation of the Bank to make available the Second Advance in respect of any
Newbuilding shall be subject to the condition that the Bank or its duly
authorised representative shall have received, on or prior to the drawdown of
the relevant Second Advance, the relevant documents and evidence specified in
Part 3 of schedule 2 in respect of such Newbuilding, in form and substance
satisfactory to the Bank.

 

59

 

9.1.4                        Third Advances

 

The
obligation of the Bank to make available the Third Advance in respect of any
Newbuilding shall be subject to the condition that the Bank or its duly
authorised representative shall have received, on or prior to the drawdown of
the relevant Third Advance, the relevant documents and evidence specified in
Part 4 of schedule 2 in respect of such Newbuilding, in form and substance
satisfactory to the Bank.

 

9.1.5                        Delivery
Advances

 

The obligation of the Bank to make available the
Delivery Advance in respect of any Newbuilding shall be subject to the
condition that the Bank or its duly authorised representative shall have
received, on or prior to the drawdown of the relevant Delivery Advance, the
documents and evidence specified in Part 5 of schedule 2 in respect of
such Newbuilding, in form and substance satisfactory to the Bank.

 

9.2                               General conditions precedent

 

The obligation of the Bank to make any Advance or the
Overdraft available or to issue any L/C (as the case may be) shall be subject
to the further conditions that, at the time of the giving of the Drawdown
Notice in respect of the relevant Advance or the relevant drawing request under
the Overdraft Facility or the relevant Issue Request in respect of the relevant
L/C (as the case may be) and at the time of the making of the relevant Advance
or of the relevant drawing under the Overdraft Facility or on the Issue Date of
the relevant L/C (as the case may be):

 

9.2.1                        the
representations and warranties contained in (i) clauses 7.1, 7.2 and
7.3(b), (ii) clause 4 of the Corporate Guarantee and (iii) clause 4
of each Owner’s Guarantee, are true and correct on and as of each such time as
if each was made with respect to the facts and circumstances existing at such
time; and

 

9.2.2                        no Default
shall have occurred and be continuing or would result from the making of such
Advance or the relevant drawing or the issuing of the relevant L/C (as the case
may be).

 

9.3                               Waiver of conditions precedent

 

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

 

9.4                               Further conditions precedent

 

Not later than five (5) Banking Days prior to each
Drawdown Date or each Issue Date and not later than five (5) Banking Days prior
to each Interest Payment Date in respect of the Term Loan or each Reset Date,
the Bank may request and the Borrowers shall, not later than two (2) Banking
Days prior to such date, deliver to the Bank on such request further favourable
certificates and/or opinions as to any or all of the matters which are the
subject of clauses 7, 8, 9 and 10 of this Agreement.

 

10                                  Events of Default

 

10.1                        Events

 

There shall be an Event of Default if:

 

10.1.1                  Non-payment: any Security Party fails to pay any sum payable by it under any of
the Security Documents or the Underlying Documents at the time, in the currency
and in the manner stipulated in the Security Documents or the Underlying
Documents (and so that, for this purpose, sums payable on demand shall be
treated as having been paid at the stipulated time if paid within three (3)
Banking Days of demand); or

 

10.1.2                  Master Swap
Agreement: 
(i) an Event of Default or Potential Event of Default (in each case as
defined in the Master Swap Agreement) has occurred and is continuing under the
Master Swap Agreement or (ii) an Early Termination Date (as defined in the
Master Swap Agreement)

 

60

 

has
occurred or been effectively designated under the Master Swap Agreement or
(iii) a person entitled to do so gives notice of an Early Termination Date (as
defined in the Master Swap Agreement) under section 6(b)(iv) of the Master
Swap Agreement or (iv) the Master Swap Agreement is terminated, cancelled,
suspended, rescinded or revoked or otherwise ceases to remain in full force and
effect for any reason; or

 

10.1.3                  Breach of
Insurances and certain other obligations: any of the
Owners or the relevant Manager fails to obtain and/or maintain the Insurances
(in accordance with the requirements of the Security Documents) for any of the
Mortgaged Ships or if any insurer in respect of such Insurances cancels any of
such Insurances or disclaims liability by reason, in either case, of
mis-statement in any proposal for any of such Insurances or for any other
failure or default on the part of the Owners or any of them or any other person
or the Borrowers or the Corporate Guarantor or any of the Owners commit any
breach of or omit to observe any of the obligations or undertakings expressed
to be assumed by them under clauses 8.1.3, 8.1.14, 8.1.15, 8.2, 8.3, 8.4, 8.5,
8.6, 8.7 or 8.8 of this Agreement or clause 5.2 of the Corporate Guarantee or
clause 5 of any Owner’s Guarantee, respectively; or

 

10.1.4                  Breach of other
obligations: any Security Party commits any breach
of or omits to observe any of its obligations or undertakings expressed to be
assumed by it under any of the Security Documents or any of the Underlying
Documents (other than those referred to elsewhere in this clause 10.1)
and, in respect of any such breach or omission which in the opinion of the Bank
is capable of remedy, such action as the Bank may require shall not have been
taken within fourteen (14) days of the Bank notifying the relevant Security
Party of such default and of such required action; or

 

10.1.5                  Misrepresentation: any representation or warranty made or deemed to be made or
repeated by or in respect of any Security Party in or pursuant to any of the
Security Documents or in any notice, certificate or statement referred to in or
delivered under any of the Security Documents or any of the Underlying
Documents is or proves to have been incorrect or misleading in any material
respect; or

 

10.1.6                  Cross-default: any Indebtedness of any Relevant Party is not paid when due or any
Indebtedness of any Relevant Party becomes (whether by declaration or
automatically in accordance with the relevant agreement or instrument constituting
the same) due and payable prior to the date when it would otherwise have become
due (unless as a result of the exercise by the relevant Relevant Party of a
voluntary right of prepayment) or any creditor of any Relevant Party becomes
entitled to declare any such Indebtedness due and payable or any facility or
commitment available to any Relevant Party relating to Indebtedness is
withdrawn, suspended or cancelled by reason of any default (howsoever
described) of the person concerned unless the relevant Relevant Party shall
have satisfied the Bank that such withdrawal, suspension or cancellation will
not affect or prejudice in any way the relevant Relevant Party’s ability to pay
its debts as they fall due and fund its commitments, or any guarantee given by
any Relevant Party in respect of Indebtedness is not honoured when due and
called upon; or

 

10.1.7                  Legal process: any judgment or order made against any Relevant Party is not
stayed or complied with within seven (7) days or a creditor attaches or takes
possession of, or a distress, execution, sequestration or other process is
levied or enforced upon or sued out against, any of the undertakings, assets,
rights or revenues of any Relevant Party and is not discharged within seven (7)
days; or

 

10.1.8                  Insolvency: any Relevant Party is unable or admits inability to pay its debts
as they fall due; suspends making payments on any of its debts or announces an
intention to do so; becomes insolvent; has assets the value of which is less
than the value of its liabilities (taking into account contingent and
prospective liabilities); or suffers the declaration of a moratorium in respect
of any of its Indebtedness; or

 

10.1.9                  Reduction or
loss of capital: a meeting is convened by any
Relevant Party for the purpose of passing any resolution to purchase or reduce
its share capital or to redeem any of its shares; or

 

61

 

10.1.10            Winding up: any corporate action, legal proceedings or other procedure or step
is taken for the purpose of winding up any Relevant Party or an order is made
or resolution passed for the winding up of any Relevant Party or a notice is
issued convening a meeting for the purpose of passing any such resolution; or

 

10.1.11            Administration: any petition is presented, notice given or step is taken for the
purpose of the appointment of an administrator of any Relevant Party or the
Bank believes that any such petition or other step is imminent or an
administration order is made in relation to any Relevant Party; or

 

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

 

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

 

10.1.14            Analogous
proceedings: there occurs, in relation to any
Relevant Party, in any country or territory in which any of them carries on
business or to the jurisdiction of whose courts any part of their assets is
subject, any event which, in the reasonable opinion of the Bank, appears in
that country or territory to correspond with, or have an effect equivalent or
similar to, any of those mentioned in clauses 10.1.7 to 10.1.13
(inclusive) or any Relevant Party otherwise becomes subject, in any such
country or territory, to the operation of any law relating to insolvency,
bankruptcy or liquidation; or

 

10.1.15            Cessation of
business: any Relevant Party suspends or ceases or
threatens to suspend or cease to carry on its business; or

 

10.1.16            Seizure: all or a material part of the undertaking, assets, rights or
revenues of, or shares or other ownership interests in, any Relevant Party are
seized, nationalised, expropriated or compulsorily acquired by or under the
authority of any government; or

 

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

 

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

 

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

 

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

 

10.1.21            Material
adverse change: there occurs, in the reasonable
opinion of the Bank, a material adverse change in the financial condition of
any Security Party by reference to the financial position of that Security
Party as described by or on behalf of the Borrowers or any Security Party to
the Bank in the negotiation of this Agreement; or

 

10.1.22            Arrest: any Mortgaged Ship is arrested, confiscated, seized, taken in
execution, impounded, forfeited, detained in exercise or purported exercise of
any possessory lien or other claim or

 

62

 

otherwise
taken from the possession of the relevant Owner and such Owner shall fail to
procure the release of such Mortgaged Ship within a period of two (2) days
thereafter; or

 

10.1.23            Registration: the registration of any Mortgaged Ship under the laws and flag of
the relevant Flag State is cancelled or terminated without the prior written
consent of the Bank or if such registration of any Mortgaged Ship is not
renewed at least forty five (45) days prior to the expiry of such registration;
or

 

10.1.24            Unrest: the Flag State in respect of
a Mortgaged Ship becomes involved in hostilities or civil war or there is a
seizure of power in any Flag State in respect of a Mortgaged Ship by
unconstitutional means if, in any such case, such event could in the opinion of
the Bank reasonably be expected to have a material adverse effect on the
security constituted by any of the Security Documents; or

 

10.1.25            Environment: either of the Borrowers and/or any other Relevant Party and/or any
of their respective Environmental Affiliates fails to comply with any
Environmental Law or any Environmental Approval or either of the Borrowers
and/or any other Relevant Party and/or any of their respective Environmental
Affiliates or any Ship or any other Relevant Ship is involved in any incident
which gives rise or may give rise to an Environmental Claim if, in any such
case, such non-compliance or incident or the consequences thereof could, in the
opinion of the Bank reasonably be expected to have a material adverse effect on
the business, assets, operations, property or financial condition of either of
the Borrowers or the Corporate Guarantor or any other Security Party or on the
security constituted by any of the Security Documents; or

 

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

 

10.1.27            Shareholdings:

 

(a)          prior to the Listing, there
is any change in the legal and/or ultimate beneficial ownership of any of the
shares in either of the Borrowers or any Owner or the Corporate Guarantor from
that existing on the date of this Agreement as specified in clause 7.1.10; or

 

(b)         after the Listing, there is
any change in the legal and/or ultimate beneficial ownership of any of the
shares in the AMPNI Borrower which results in Mr Dimitrios Melissanidis being
the ultimate beneficial owner of less than 35% of the total issued voting share
capital of the AMPNI Borrower; or

 

(c)          after the Listing, there is
any change in the legal and/or beneficial ownership of any of the shares in the
AMPSA Borrower or any Owner or the Corporate Guarantor which results in any
such Security Party ceasing to be a wholly-owned direct or indirect Subsidiary
of the AMPNI Borrower; or

 

10.1.28            Termination or
variation of, or dispute under, Contracts and Supervision Contracts:  any Contract or Supervision
Contract is terminated or rescinded for any reason whatsoever; or any Contract
or Supervision Contract is frustrated; or any Contract or Supervision Contract
is varied in any manner not permitted by or pursuant to the relevant
Pre-delivery Security Assignment or this Agreement; or there is any dispute or
litigation or any other proceedings between the relevant parties under or in
respect of any Contract or any Supervision Contract; or

 

10.1.29            Termination of
Refund Guarantees: 
any Refund Guarantee expires or is repudiated, cancelled, rescinded or
otherwise terminated (other than by the return of such Refund Guarantee by the
relevant Newbuilding Owner to the Builders or either of them and/or the
relevant Refund Guarantor following the Delivery of the Newbuilding to which
such Refund Guarantee relates); or

 

63

 

10.1.30            Non-delivery of
Newbuildings: 
any Newbuilding is not delivered to, and accepted by, the relevant
Newbuilding Owner under the relevant Contract or the Delivery Advance for any
Newbuilding is not drawn down, in either case, on or before the end of the
Drawdown Period for the Delivery Advance relevant to such Newbuilding; or

 

10.1.31            Accounts: moneys are withdrawn from any of the Accounts other than in
accordance with clause 14; or

 

10.1.32            Listing: following the Listing Date, the shares of the AMPNI Borrower are
de-listed or suspended from, or cease to trade (whether temporarily or
permanently) on, the New York Stock Exchange; or

 

10.1.33            Licenses, etc:  any license, authorisation,
consent or approval at any time necessary to enable any Security Party to
comply with its obligations under the Security Documents or the Underlying
Documents is revoked or withheld or modified or is otherwise not granted or
fails to remain in full force and effect or if any exchange control or other
law or regulation shall exist which would make any transaction under the
Security Documents or the Underlying Documents or the continuation thereof,
unlawful or would prevent the performance by any Security Party of any term of
any of the Security Documents or the Underlying Documents; or

 

10.1.34            Material events: any other event occurs or circumstance arises which, in the
reasonable opinion of the Bank, is likely materially and adversely to affect
either (i) the ability of any Security Party to perform all or any of its
obligations under or otherwise to comply with the terms of any of the Security
Documents or (ii) the security created by any of the Security Documents.

 

10.2                        Acceleration

 

The Bank may, without prejudice to any other rights of
the Bank, at any time after the happening of an Event of Default by notice to
the Borrowers declare that:

 

10.2.1                  the obligation of
the Bank to make the Commitment, the Overdraft Facility and the Guarantee
Facility available shall be terminated, whereupon the Commitment, the Overdraft
Facility Limit and the Guarantee Facility Commitment shall each be reduced to
zero forthwith; and/or

 

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

 

10.2.3                  make a demand on the
Borrowers pursuant to clause 8.7 for payment of cash collateral to the Bank for
credit to the Cash Collateral Account forthwith and/or at any other time
specified by the Bank, whereupon any such amount shall become due and payable
immediately or in accordance with each such notice (it being understood that
the Bank shall be entitled to give multiple such notices for further payment of
moneys by the Borrowers to the Cash Collateral Account, at any time and from
time to time following an Event of Default, notwithstanding that the Borrowers
may have complied with one or more earlier notices).

 

10.3                        Demand basis

 

If, pursuant to clause 10.2.2, the Bank declares
the Loan to be due and payable on demand, the Bank may by written notice to the
Borrowers (a) call for repayment of the Loan on such date as may be
specified whereupon the Loan shall become due and payable on the date so
specified together with all interest and commissions accrued and all other sums
payable under this Agreement or (b) withdraw such declaration with effect
from the date specified in such notice.

 

10.4                        Negotiation with Beneficiaries after Event of Default

 

Each Borrower:

 

64

 

10.4.1                  irrevocably
authorises the Bank to negotiate with any Beneficiary at any time after the
occurrence of any Default with a view to arranging for the prepayment by the
Bank, for the account of the Borrowers, of any moneys outstanding under any
L/C; and

 

10.4.2                  agrees that at any
time after the occurrence of any Default the Bank shall be entitled (but not,
so far as the Borrowers are concerned, bound) to pay to a Beneficiary, in such
manner and upon such terms as the Bank and the Beneficiary shall agree, any
moneys outstanding under any L/C.

 

11                                  Indemnities

 

11.1                        Miscellaneous indemnities

 

The Borrowers shall on demand indemnify the Bank,
without prejudice to any of the Bank’s other rights under any of the Security
Documents, against any loss (including loss of Margin) or expense which the
Bank shall certify as sustained or incurred by it as a consequence of:

 

11.1.1                  any default in
payment by the Borrowers of any sum under any of the Security Documents when
due;

 

11.1.2                  the occurrence of
any other Event of Default;

 

11.1.3                  any prepayment or
repayment of a Tranche or part thereof being made under clauses 4.3, 8.2.1,
8.2.7 or 12.1 or any other repayment or prepayment of a Tranche or part thereof
being made otherwise than on an Interest Payment Date relating to the part of
the Tranche prepaid or repaid;

 

11.1.4                  any Advance not
being made for any reason (excluding any default by the Bank) after the
Drawdown Notice in relation thereto has been given; or

 

11.1.5                  any L/C not being
issued for any reason (excluding any default by the Bank) after the Issue
Request in relation thereto has been given,

 

including, in any such case, but not limited to, any
loss or expense sustained or incurred in maintaining or funding a Tranche or
the Overdraft or any loans advanced by the Bank pursuant to clause 2.23.3 (or
any part thereof) or in liquidating or re-employing deposits from third
parties acquired to effect or maintain a Tranche or the Overdraft or any loans
advanced by the Bank pursuant to clause 2.23.3 (or any part thereof).

 

11.2                        Currency indemnity

 

If any sum due from the Borrowers under any of the
Security Documents or any order or judgment given or made in relation thereto
has to be converted from the currency (the “first
currency”) in which the same is payable under the relevant Security
Document or under such order or judgment into another currency (the “second currency”) for the purpose of (a) making or
filing a claim or proof against the Borrowers or either of them,
(b) obtaining an order or judgment in any court or other tribunal or
(c) enforcing any order or judgment given or made in relation to any of
the Security Documents, the Borrowers shall indemnify and hold harmless the
Bank from and against any loss suffered as a result of any difference between
(i) the rate of exchange used for such purpose to convert the sum in
question from the first currency into the second currency and (ii) 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 11.2 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.

 

11.3                        Environmental indemnity

 

The Borrowers shall indemnify the Bank on demand and
hold the Bank harmless from and against all costs, expenses, payments, charges,
losses, demands, liabilities, actions,

 

65

 

proceedings (whether civil or criminal), penalties,
fines, damages, judgements, orders, sanctions or other outgoings of whatever
nature which may be suffered, incurred or paid by, or made or asserted against
the Bank at any time, whether before or after the repayment in full of
principal and interest under this Agreement, relating to, or arising directly
or indirectly in any manner or for any cause or reason whatsoever out of an
Environmental Claim made or asserted against the Bank if such Environmental
Claim would not have been, or been capable of being, made or asserted against
the Bank if it had not entered into any of the Security Documents and/or
exercised any of its rights, powers and discretions thereby conferred and/or
performed any of its obligations thereunder and/or been involved in any of the
transactions contemplated by the Security Documents.

 

12                                  Unlawfulness and increased
costs

 

12.1                        Unlawfulness

 

If it is or becomes contrary to any law or regulation
for the Bank to make any Advance or to maintain the Commitment, the Overdraft
Facility or the Guarantee Facility Commitment or to fund the Term Loan or the
Overdraft or the Outstandings or to issue any L/Cs, the Bank shall promptly
give notice to the Borrowers whereupon (a) the Commitment, the Overdraft
Facility Limit and the Guarantee Facility Commitment shall each be reduced to
zero and (b) the Borrowers shall be obliged to prepay the Loan either
(i) forthwith or (ii) on a future specified date not being earlier
than the latest date permitted by the relevant law or regulation together with
interest and commitment commission accrued to the date of prepayment and all
other sums payable by the Borrowers under this Agreement and/or the Master Swap
Agreement.

 

12.2                        Increased costs

 

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

 

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

 

12.2.2                  increase the cost
to, or impose an additional cost on, the Bank or its holding company in making
or keeping the Commitment, the Overdraft Facility or the Guarantee Facility
Commitment available or maintaining or funding all or part of the Loan or the
Outstandings or issuing any L/C; and/or

 

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

 

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

 

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

 

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

 

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

 

66

 

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

 

(b)         the Borrowers shall on demand
pay to the Bank the amount which the Bank specifies (in a certificate and
supporting documents setting forth and evidencing the basis of the computation
of such amount but not including any matters which the Bank or its holding
company regards as confidential) is required to compensate the Bank and/or (as
the case may be) its holding company for such liability to Taxes, cost,
reduction, payment, foregone return or loss.

 

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

 

12.3                        Exception

 

Nothing in clause 12.2 shall entitle the Bank to
receive any amount in respect of compensation for any such liability to Taxes,
increased or additional cost, reduction, payment, foregone return or loss (a)
to the extent that the same is taken into account in calculating the Additional
Cost or (b) to the extent that the same is the subject of an additional payment
under clause 6.6.

 

13                                  Security and set-off

 

13.1                        Application of moneys

 

All moneys received by the Bank under or pursuant to
any of the Security Documents and expressed to be applicable in accordance with
the provisions of this clause 13.1 shall be applied by the Bank in the
following manner:

 

13.1.1                  first, in or towards
payment of all unpaid costs, expenses, fees and commissions which may be owing
to the Bank under any of the Security Documents;

 

13.1.2                  secondly, in or
towards payment of any arrears of interest owing in respect of the Loan or any
part thereof;

 

13.1.3                  thirdly, in or
towards repayment of the Loan or any loan outstanding under clause 2.23.3 or
any part thereof (whether the same is due and payable or not);

 

13.1.4                  fourthly, in or
towards payment to the credit of the Cash Collateral Account of any moneys
payable thereto pursuant to clauses 2.29 and/or 4.3 and/or 8.2.7 and/or 8.7
and/or 10.2.3 and/or any other term of this Agreement;

 

13.1.5                  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 Term Loan repaid;

 

13.1.6                  sixthly, in or
towards payment to the Bank of any sum owing under the Master Swap Agreement;

 

13.1.7                  seventhly, in or
towards payment to the Bank of any other sums owing to it under any of the
Security Documents; and

 

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

 

13.2                        Set-off

 

13.2.1                  The Borrowers
authorise the Bank (without prejudice to any of the Bank’s rights at law, in
equity or otherwise), at any time and without notice to the Borrowers, to apply
any credit balance to which the Borrowers or either of them is then entitled
standing upon any account of the Borrowers or either of them with any branch of
the Bank in or towards satisfaction of any sum due and payable from the
Borrowers or either of them to the Bank under any of the Security

 

67

 

Documents.  For this purpose, the Bank is authorised to
purchase with the moneys standing to the credit of such account such other
currencies as may be necessary to effect such application.

 

13.2.2                  Without prejudice to
its rights hereunder and/or under the Master Swap Agreement, the Bank may at
the same time as, or at any time after, any Default under this Agreement or the
Borrowers’ default under the Master Swap Agreement, set-off any amount
due now or in the future from the Borrowers or either of them to the Bank under
this Agreement against any amount due from the Bank to the Borrowers or either
of them under the Master Swap Agreement and apply the first amount in
discharging the second amount.  The
effect of any set-off under this sub-clause 13.2.2 shall be
effective to extinguish or, as the case may require, reduce the liabilities of
the Bank under the Master Swap Agreement.

 

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

 

13.3                        Further assurance

 

The Borrowers jointly and severally undertake with the
Bank that the Security Documents shall both at the date of execution and
delivery thereof and so long as any moneys are owing under any of the Security
Documents be valid and binding obligations of the respective parties thereto
and rights of the Bank enforceable in accordance with their respective terms
and that it will, at its expense, execute, sign, perfect and do, and will
procure the execution, signing, perfecting and doing by each of the other
Security Parties of, any and every such further assurance, document, act or
thing as in the reasonable opinion of the Bank may be necessary or desirable
for perfecting the security contemplated or constituted by the Security
Documents.

 

13.4                        Conflicts

 

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

 

14                                  Accounts

 

14.1                        General

 

The Borrowers jointly and severally undertake with the
Bank that:

 

14.1.1                  on or before the
date of this Agreement, the AMPNI Borrower will open the AMPNI Operating
Account;

 

14.1.2                  on or before the
date of this Agreement, the AMPSA Borrower will open the AMPSA Operating Account,
the Overdraft Account and the Cash Collateral Account;

 

14.1.3                  on or before the
first Drawdown Date under this Agreement:

 

(a)          the Corporate Guarantor will
open the Manager’s Operating Account;

 

(b)         the Owner of the m.v. Aegean Hellas will open the Aegean Hellas Operating Account;
and

 

(c)          the Owner of the m.v. Fos will open the Fos Operating Account;

 

14.1.4                  they will procure
that all moneys payable to each Owner in respect of the Earnings of such
Owner’s Ship shall, unless and until the Bank directs to the contrary pursuant
to the provisions of the relevant Deed of Covenant, be paid at all times to the
Account relating to such Ship;

 

14.1.5                  they will procure
that all moneys payable to the Borrowers under the Master Swap Agreement shall
be paid at all times to the AMPNI Operating Account;

 

68

 

14.1.6                  they will procure
that all Receivables shall be paid at all times to the AMPSA Operating Account;
and

 

14.1.7                  they will procure
that there are sufficient funds standing to the credit of the Cash Collateral
Account at all times to ensure that the Borrowers are in compliance with each
of the following clauses:

 

(a)          clause 2.29; and

 

(b)         clause 4.3; and

 

(c)          clauses 8.2.1 and 8.2.7,

 

it being agreed, for the avoidance of doubt, that, for
the purpose of testing the Borrowers’ compliance with each of the clauses
referred to in paragraphs (a), (b) and (c), funds standing to the credit of the
Cash Collateral Account and taken into account for the purpose of testing compliance
with one of the clauses referred to in paragraph (a) or paragraph (b) or
paragraph (c) above, shall not be taken into account for the purpose of testing
compliance with any other clause referred to in any of the other two
paragraphs.  The AMPSA Borrower shall not
be entitled to withdraw any funds from the Cash Collateral Account following a
notice given by the Bank pursuant to clause 12.1.

 

14.2                        Borrowers’ Accounts: withdrawals

 

Neither Borrower shall be entitled to
withdraw moneys from any of their own Accounts provided however that, unless
and until a Default shall occur and the Bank shall direct to the contrary:

 

14.2.1                  the AMPNI Borrower
may withdraw moneys from the AMPNI Operating Account to make any payment not
expressly prohibited by the terms of this Agreement or any other Security
Document Provided always that:

 

(a)          subject to paragraphs (b),
(c) and (d) below, there are and, following any such withdrawal, there will be
sufficient funds standing to the credit of the AMPNI Operating Account to ensure
that the Borrowers are in compliance with clause 8.1.14 at all times; and

 

(b)         if the Borrowers advise the
Bank in writing that an Additional Owner is to purchase an Additional Ship, in
cash and without any debt or other financing, the AMPNI Borrower shall be
entitled to withdraw funds from the AMPNI Operating Account for the purpose of
on-lending such funds to the relevant Additional Owner to assist such Owner in
paying to the relevant Additional Ship Seller the purchase price for the
relevant Additional Ship pursuant to the relevant Additional Contract, subject
always to clause 8.1.15(b); and

 

(c)          in the event that the AMPNI
Borrower makes any such withdrawal in accordance with paragraph (b) above, the
amount required to be held by the Borrowers to the credit of the AMPNI
Operating Account for the purposes of clause 8.1.14 shall, from the date of
such withdrawal, be reduced by the amount of such withdrawal; and

 

(d)         the AMPNI Borrower shall be
entitled to make withdrawals from the AMPNI Operating Account pursuant to
paragraph (b) above for the purpose of assisting in the payment of the purchase
price of no more than three (3) vessels (being Additional Ships), one by each
Additional Owner, however, only one such withdrawal may be made in relation to
each Additional Ship and the amount of each withdrawal in relation to an
Additional Ship can be up to (but it may not exceed) the full amount of the
purchase price for that Additional Ship under the relevant Additional Contract.

 

14.2.2                  the AMPSA Borrower
may withdraw moneys from the Overdraft Account for the purposes specified in
clause 1.1.2 subject always to clause 8.1.3(b);

 

69

 

14.2.3                  the AMPSA Borrower
may, subject to clause 14.1.7, withdraw moneys from the Cash Collateral Account
for any purpose not expressly prohibited by the terms of this Agreement or any
other Security Document provided that there are and, following any such
withdrawal, there will be sufficient funds in the Cash Collateral Account to ensure
that the Borrowers are in compliance with clause 14.1.7; and

 

14.2.4                  the AMPSA Borrower
may withdraw moneys from the AMPSA Operating Account only for the following
purposes:

 

(a)          to make payments to the
credit of the Cash Collateral Account; and

 

(b)         provided that there are and,
following any such withdrawal there will be, sufficient funds in the Cash
Collateral Account to ensure that the Borrowers are in compliance with clause
14.1.7, for any other purpose not expressly prohibited by the terms of this Agreement
or the other Security Documents.

 

14.3                        Interest

 

Amounts standing to the credit of each Account of a
Borrower (other than the Overdraft Account) shall bear interest at the rate
(unless otherwise agreed between the Bank and the relevant Borrower) which is
certified by the Bank to that Borrower to be the rate quoted by the Bank to its
customers for deposits in Dollars for such period as the Bank may determine and
in an amount comparable with the amount for the time being standing to the
credit of that Account, such interest to be credited to such Account at the
expiry of each such period of deposit and to accrue from day to day and to be
calculated on the basis of a three hundred and sixty (360) day year and the
actual number of days elapsed Provided however that
the Overdraft Account shall be a non-interest bearing account.

 

14.4                        Set-off

 

Without in any way affecting the rights of the Bank
under clause 13.2, upon the occurrence of a Default or at any time thereafter
the Bank shall be entitled to set-off and apply all sums standing to the credit
of any Account of a Borrower and accrued interest (if any) thereon without
notice to the Borrowers in the manner specified in clause 13.1.

 

14.5                        Deductions

 

The Bank shall be entitled (but not obliged) at any time
to deduct from the balance for the time being standing to the credit of any
Account of a Borrower all other moneys which may fall due to be paid to the
Bank under the terms of this Agreement and the other Security Documents or
otherwise howsoever in connection with the Aggregate Liabilities and/or the
Master Swap Agreement.

 

14.6                        Charging of Borrowers’ Accounts

 

Each Borrower with full title guarantee hereby charges
and agrees to charge, by way of first fixed charge and releases and agrees to
release to the Bank, as a continuing security for the payment of the Aggregate
Liabilities, interest thereon and all other moneys from time to time owing,
whether actually or contingently, under this Agreement, the Master Swap
Agreement and the other Security Documents (for the purposes of this clause
14.6, the “Outstanding Indebtedness”), such
Borrower’s Accounts (being, for the avoidance of doubt, the AMPNI Operating
Account in the case of the AMPNI Borrower, and the Overdraft Account, the Cash
Collateral Account and the AMPSA Operating Account in the case of the AMPSA
Borrower) and all moneys from time to time standing to the credit of each such
Borrower’s Account, including any interest from time to time accrued and
accruing thereon (whether or not credited thereto) and neither Borrower shall
be entitled to withdraw any such monies from any of such Accounts otherwise
than in accordance with this clause 14 until such time as the Outstanding
Indebtedness has been conclusively certified by the Bank to have been repaid in
full.

 

70

 

14.7                        Representations and warranties

 

14.7.1                  The AMPNI Borrower
hereby represents and warrants to the Bank that:

 

(a)          it is the sole, absolute,
legal and beneficial owner of, and has good right and title to the AMPNI
Operating Account; and

 

(b)         neither the AMPNI Operating
Account nor any part thereof is subject to any Encumbrance save as constituted
by this Agreement.

 

14.7.2                  The AMPSA Borrower
hereby represents and warrants to the Bank that:

 

(a)          it is the sole, absolute,
legal and beneficial owner of, and has good right and title to each of the
AMPSA Operating Account, the Overdraft Account and the Cash Collateral Account;
and

 

(b)         neither the AMPSA Operating
Account nor the Overdraft Account nor the Cash Collateral Account nor any part
thereof is subject to any Encumbrance save as constituted by this Agreement.

 

15                                  Assignment,
transfer and lending office

 

15.1                        Benefit and burden

 

This
Agreement shall be binding upon, and enure for the benefit of, the Bank and the
Borrowers and their respective successors in title.

 

15.2                        No assignment by Borrowers

 

Neither
of the Borrowers may assign or transfer any of its rights or obligations under
this Agreement.

 

15.3                        Assignment by Bank

 

The Bank may assign all or any part of its rights
under this Agreement, the Master Swap Agreement (notwithstanding the terms of
Section 7 of the Master Swap Agreement) or under any of the other Security
Documents to any other bank or financial institution (an “Assignee”)
without the consent of the Borrowers (the Borrowers consenting to any such
assignment by their execution of this Agreement).

 

15.4                        Transfer

 

The Bank may transfer all or any part of its rights,
benefits and/or obligations under this Agreement and/or any of the other
Security Documents to any one or more banks or other financial institutions (a
“Transferee”) without the consent of the
Borrowers (the Borrowers consenting to any such transfer by their execution of
this Agreement) if the Transferee, by delivery of such undertaking as the Bank
may approve, becomes bound by the terms of this Agreement and agrees to perform
all or, as the case may be, part of the Bank’s obligations under this
Agreement.

 

15.5                        Documenting assignments and transfers

 

If the Bank assigns all or any part of its rights or
transfers all or any part of its rights, benefits and/or obligations as
provided in clauses 15.3 or 15.4, the Borrowers jointly and severally
undertake, immediately on being requested to do so by the Bank and at the cost
of the Bank, to enter into, and procure that the other Security Parties shall
enter into, such documents as may be necessary or desirable to transfer to the
Assignee or Transferee all or the relevant part of the Bank’s interest in the
Security Documents and all relevant references in this Agreement to the 

 

71

 

Bank shall thereafter be construed as a reference to
the Bank and/or its Assignee or Transferee (as the case may be) to the extent
of their respective interests.

 

15.6                        Lending office

 

The Bank shall lend through its office at the address
specified in the definition of “Bank” in clause
1.2 of this Agreement or through any other office of the Bank selected from
time to time by it through which the Bank wishes to lend for the purposes of
this Agreement.  If the office through
which the Bank is lending is changed pursuant to this clause 15.6, the
Bank shall notify the Borrowers promptly of such change.

 

15.7                        Disclosure of information

 

The Bank may disclose to a prospective assignee,
transferee or to any other person who may propose entering into contractual
relations with the Bank in relation to this Agreement such information about
the Borrowers as the Bank shall consider appropriate.

 

16                                  Notices and other matters

 

16.1                        Notices

 

Every notice, request, demand or other communication
under this Agreement or (unless otherwise provided therein) under any of the
other Security Documents shall:

 

16.1.1                  be in writing
delivered personally or by first-class prepaid letter (airmail if
available) or facsimile transmission or other means of telecommunication in
permanent written form;

 

16.1.2                  be deemed to have
been received, subject as otherwise provided in the relevant Security Document,
in the case of a letter, when delivered personally or three (3) days after it
has been put in the post and, in the case of a facsimile transmission or other
means of telecommunication in permanent written form, upon receipt of
confirmation that the facsimile transmission has been received (provided that
if the date receipt is not a business day in the country of the addressee or if
the time of receipt is after the close of business in the country of the
addressee it shall be deemed to have been received at the opening of business
on the next such business day); and

 

16.1.3                  be sent:

 

(a)          if to the Borrowers or
either of them at:

 

c/o Aegean Bunkering Services Inc.

42 Hatzikiriakou Street

185 38 Piraeus

Greece

 

Fax no:          +30 210 458 6242

Attention:                                         [•]

 

(b)         if to the Bank at:

 

The Royal Bank of Scotland plc

Piraeus Branch

45 Akti Miaouli

185 36 Piraeus

Greece

 

Fax No:                                +30
210 459 6600

Attention:                 Shipping Department

 

or to such other address and/or numbers as is notified
by one party to the other party under this Agreement.

 

72

 

16.2                        No implied waivers, remedies cumulative

 

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

 

16.3                        English language

 

All certificates, instruments and other documents to
be delivered under or supplied in connection with any of the Security Documents
shall be in the English language or shall be accompanied by a certified English
translation upon which the Bank shall be entitled to rely.

 

16.4                        Borrowers’ obligations

 

16.4.1                  Joint and several

 

Notwithstanding anything to the contrary contained in
any of the Security Documents, the agreements, obligations and liabilities of
the Borrowers herein contained are joint and several and shall be construed
accordingly.  Each of the Borrowers
agrees and consents to be bound by the Security Documents to which it is, or is
to be, a party notwithstanding that the other Borrower which is intended to sign
or to be bound may not do so or be effectually bound and notwithstanding that
any of the Security Documents may be invalid or unenforceable against the other
Borrower, whether or not the deficiency is known to the Bank.

 

16.4.2                  Borrowers as
principal debtors

 

Each Borrower acknowledges and confirms that it is a
principal and original debtor in respect of all amounts which may become
payable by the Borrowers in accordance with the terms of this Agreement or the
Master Swap Agreement or any of the other Security Documents and agrees that
the Bank may also continue to treat it as such, whether or not the Bank is or
becomes aware that such Borrower is or has become a surety for the other
Borrower.

 

16.4.3                  Indemnity

 

The Borrowers hereby agree jointly and severally to
keep the Bank fully indemnified on demand against all damages, losses, costs
and expenses (provided that, in the case of such costs and expenses, they are
reasonable and documented)  arising from
any failure of either Borrower to perform or discharge any purported obligation
or liability of the other Borrower which would have been the subject of this
Agreement or the Master Swap Agreement or any other Security Document had it
been valid and enforceable and which is not or ceases to be valid and enforceable
against a Borrower on any ground whatsoever, whether or not known to the Bank
(including, without limitation, any irregular exercise or absence of any
corporate power or lack of authority of, or breach of duty by, any person
purporting to act on behalf of a Borrower (or any legal or other limitation,
whether under the Limitation Acts or otherwise or any disability or death,
bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution, winding
up, administration, receivership, amalgamation, reconstruction or any other
incapacity of any person whatsoever (including, in the case of a partnership, a
termination or change in the composition of the partnership) or any change of
name or style or constitution of any Security Party)).

 

16.4.4                  Liability
unconditional

 

None of the obligations or liabilities of a Borrower
under this Agreement or the Master Swap Agreement or any other Security
Document shall be discharged or reduced by reason of:

 

(a)          the
death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution,
winding-up, administration, receivership, amalgamation, reconstruction or other
incapacity of any person whatsoever (including, in the case of a partnership, a

 

73

 

termination or change in the composition of the partnership) or any
change of name or style or constitution of the other Borrowers or either of
them or any other person liable;

 

(b)         the Bank granting any time,
indulgence or concession to, or compounding with, discharging, releasing or
varying the liability of, the other Borrower or any other person liable or
renewing, determining, varying or increasing any accommodation, facility or
transaction or otherwise dealing with the same in any manner whatsoever or
concurring in, accepting, varying any compromise, arrangement or settlement or
omitting to claim or enforce payment from the other Borrower or any other
person liable; or

 

(c)          anything done or omitted
which but for this provision might operate to exonerate the Borrowers or either
of them.

 

16.4.5                  Recourse to other
security

 

The Bank shall not be obliged to make any claim or
demand or to resort to any Security Document or other means of payment now or
hereafter held by or available to it for enforcing this Agreement or the Master
Swap Agreement or any of the Security Documents against a Borrower or any other
person liable and no action taken or omitted by the Bank in connection with any
such Security Document or other means of payment will discharge, reduce,
prejudice or affect the liability of the Borrowers under this Agreement, the
Master Swap Agreement and the Security Documents to which any of them is, or is
to be, a party.

 

16.4.6          Waiver of Borrowers’ rights

 

Each Borrower agrees with the Bank that, from the date
of this Agreement and so long as any moneys are owing under any of the Security
Documents and/or the Master Swap Agreement and while all or any part of the
Commitment remains outstanding, it will not, without the prior written consent
of the Bank:

 

(a)          exercise any right of
subrogation, reimbursement and indemnity against the other Borrower or any
other person liable under the Security Documents;

 

(b)         demand or accept repayment in
whole or in part of any Indebtedness now or hereafter due to such Borrower from
the other Borrower or from any other person liable or demand or accept any
guarantee, indemnity or other assurance against financial loss or any document
or instrument created or evidencing an Encumbrance in respect of the same or
dispose of the same;

 

(c)          take any steps to enforce
any right against the other Borrower or any other person liable in respect of
any such moneys; or

 

(d)         claim any set-off or
counterclaim against the other Borrower or any other person liable or claiming
or proving in competition with the Bank in the liquidation of the other
Borrower or any other person liable or have the benefit of, or share in, any
payment from or composition with, the other Borrower or any other person liable
or any other Security Document now or hereafter held by the Bank for any moneys
owing under this Agreement and/or the Master Swap Agreement or for the
obligations or liabilities of any other person liable but so that, if so
directed by the Bank, it will prove for the whole or any part of its claim in
the liquidation of the other Borrower or other person liable on terms that the
benefit of such proof and all money received by it in respect thereof shall be
held on trust for the Bank and applied in or towards discharge of any moneys
owing under this Agreement and/or the Master Swap Agreement in such manner as
the Bank shall deem appropriate.

 

16.5                        Maximum liability

 

16.5.1                  Each Borrower shall
be entitled to rights of contribution as against the other Borrower, however,
such rights of contribution shall (a) not in any way (except as otherwise
expressly set forth in clause 16.5.2 below) condition or lessen the liability
of each Borrower as a joint and several

 

74

 

borrower
for the whole of the obligations owed to the Bank hereunder, and under the
Security Documents and (b) shall be fully subject and subordinate to the rights
of the Bank against the Borrowers hereunder, and under the Security Documents.

 

16.5.2                  Notwithstanding
anything to the contrary contained in this Agreement, or any of the Security
Documents, in the event that any court or other judicial body of competent
jurisdiction determines that legal principles of fraudulent conveyances,
fraudulent transfers or similar concepts are applicable in evaluating the enforceability
against any particular Borrower or its assets of this Agreement or any Security
Document granted by such Borrower as security for its obligations hereunder and
that under such principles, this Agreement or such other Security Documents
would not be enforceable against such Borrower or its asset unless the
following provisions of this clause 16.5.2 had effect, then, the maximum
liability of such Borrower hereunder (the “Maximum Liability Amount”)
shall be limited such that in no event shall such amount exceed the lesser of
(i) the obligations of such Borrower hereunder (in the principal amount of up
to $183,400,000, plus interest, expenses, fees and any amounts owing under the
Master Swap Agreement), and (ii) an amount equal to the aggregate, without
double counting, of (a) ninety-five percent (95%) of such Borrower’s Adjusted
Net Worth (as hereinafter defined) on the date hereof, on the date of
commencement of a case under the Bankruptcy Code of the United States of
America, as amended (11 U.S.C. ss 101-1330) (the “Bankruptcy
Code”) or any similar legislation in any other jurisdiction, in
which such Borrower is a debtor, or on the date enforcement of this Agreement
is sought (the “Determination Date”), whichever is
greater, (b) the aggregate fair value of such Borrower’s Subrogation and
Contribution Rights (as hereinafter defined) and (c) the amount of any Valuable
Transfer (as hereinafter defined) to such Borrower; provided that each
Borrower’s liability under this Agreement shall further be limited to the
extent, if any, required so that the obligations of each Borrower under this
Agreement shall not be subject to avoidance under Section 548 of the Bankruptcy
Code or any similar provision under the legislation of any other relevant
jurisdiction, or to being set aside or annulled under any applicable law
relating to fraudulent transfers or fraudulent conveyances.  In determining the limitations, if any, on
the amount of either Borrower’s obligations hereunder pursuant to the preceding
sentence, any rights of subrogation or contribution (collectively the “Subrogation and Contribution Rights”) which such Borrower
may have on the Determination Date with respect to the Funding Borrower (as
hereinafter defined) under applicable law shall be taken into account.

 

16.5.3                  As used herein “Adjusted Net Worth” of each Borrower shall mean, as of any
date of determination thereof, an amount equal to the lesser of (a) an amount
equal to the excess of (i) the amount of the present fair saleable value of the
assets of such Borrower over (ii) the amount that will be required to pay such
Borrower’s probable liability on its then existing debts, including contingent
liabilities, as they become absolute and matured, and (b) an amount equal to
the excess of (i) the sum of such Borrower’s property at a fair valuation over
(ii) the amount of all liabilities of such Borrower, contingent or otherwise,
as such terms are construed in accordance with applicable federal and state
laws in the United States of America, or the laws of other applicable
jurisdictions, governing determinations of the insolvency of debtors.

 

16.5.4                  In determining the
Adjusted Net Worth of each Borrower for purposes of calculating the Maximum
Liability Amount for such Borrower, the liabilities of such Borrower to be used
in such determination pursuant to each section (ii) of clause 17.6.3 shall in
any event exclude (a) the liabilities of such Borrower under this Agreement,
(b) any liabilities of such Borrower subordinated in right of payment to this
Agreement and (c) any liabilities of such Borrower for Subrogation and
Contribution Rights to the other Borrower.

 

16.5.5                  As used herein “Valuable Transfer” shall mean, in respect of each Borrower,
(a) all loans, advances or capital contributions made to such Borrower with
proceeds of the Loan made under this Agreement, (b) all debt securities or
other obligations of such Borrower acquired from such Borrower or retired by
such Borrower with proceeds of the Loan made under this Agreement and
transferred, absolutely and not as collateral, to such Borrower (c) the fair
market value of all property acquired with proceeds of the Loan made under this
Agreement and transferred, absolutely and not as collateral, to such Borrower,
(d) all equity securities of such Borrower acquired from such Borrower with
proceeds of the Loan made under this Agreement and (e) the value of any other
economic benefits in accordance with applicable federal and state laws, or the

 

75

 

laws of
other applicable jurisdictions, governing determinations of the insolvency of
debtors, in each case accruing to such Borrower as a result of the Loan made
available under this Agreement.

 

16.5.6                  Without in any way
modifying or affecting the obligations of either of the Borrowers hereunder, in
the event either of the Borrowers shall make any payment or payments to the
Bank under this Agreement in an aggregate amount in excess of such Borrower’s
Percentage (such Borrower hereinafter called the “Funding
Borrower” and the other Borrower hereinafter called the “Other Borrower”), the Other Borrower shall contribute to the
Funding Borrower an amount equal to the Other Borrower’s Percentage of such
payment or payments made by the Funding Borrower.  For the purposes hereof, a Funding Borrower’s
or the Other Borrower’s Percentage shall be determined as of the date on which
such payment was made by reference to the ratio of (a) such Funding Borrower’s
or such Other Borrowers’ Adjusted Net Worth as of such date to (b) the aggregate
Adjusted Net Worth of the Borrowers (including the Funding Borrower) as of such
date.  Nothing in this paragraph shall
affect each Borrowers’ several liability to the Bank for the entire amount of
the obligations of the Borrowers under this Agreement (up to the limitations
set forth in the preceding paragraph) or in any other manner impair any right
or remedy of the Bank hereunder.  The
limitations provided above are intended solely to preserve the rights of the Bank
under this Agreement to the maximum extent permitted by applicable law and
neither of the Borrowers nor any other person shall have any right hereunder
that it would not otherwise have under applicable law.

 

17                                  Governing law and jurisdiction

 

17.1                        Law

 

This Agreement is governed by, and shall be construed
in accordance with, English law.

 

17.2                        Submission to jurisdiction

 

Each Borrower agrees, for the benefit of the Bank,
that any legal action or proceedings arising out of or in connection with this
Agreement against the Borrowers or either of them or any of their respective
assets may be brought in the English courts. 
Each Borrower irrevocably and unconditionally submits to the
jurisdiction of such courts and irrevocably designates, appoints and empowers
Riches Consulting at present of Old Jarretts Farmhouse, Brantridge Lane,
Balcombe, West Sussex RH17 6JR, England to receive for it and on its behalf,
service of process issued out of the English courts in any such legal action or
proceedings.  The submission to such
jurisdiction shall not (and shall not be construed so as to) limit the right of
the Bank to take proceedings against the Borrowers or either of them in the
courts of any other competent jurisdiction nor shall the taking of proceedings
in any one or more jurisdictions preclude the taking of proceedings in any
other jurisdiction, whether concurrently or not.

 

The parties further agree that only the Courts of
England and not those of any other State shall have jurisdiction to determine
any claim which the Borrowers or either of them may have against the Bank
arising out of or in connection with this Agreement.

 

17.3                        Contracts (Rights of Third Parties) Act 1999

 

No term of this Agreement is enforceable under the
provisions of the Contracts (Rights of Third Parties) Act 1999 by a person who
is not a party to this Agreement.

 

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

 

76

 

	
  EXECUTED as a DEED

  	
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  AEGEAN MARINE PETROLEUM NETWORK INC.

  	
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  for and on behalf of

  	
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  THE ROYAL BANK OF SCOTLAND PLC

  	
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Exhibit 10.52  

EXECUTION COPY  

 
 

UNIT PURCHASE AGREEMENT    
    

        This Unit Purchase Agreement ("Agreement") is entered into to be effective as of December 5, 2006 by and between Diamond Shamrock Refining and Marketing
Company, a Delaware corporation ("Seller"), and William E. Greehey, an individual residing in Bexar County, Texas ("Buyer"). 

 
 

Recitals:    
    

        WHEREAS, Seller owns 21,926,636 units representing limited liability company interests (the "Units") in Valero GP
Holdings, LLC, a Delaware limited liability company (the "Company"). Subject to the simultaneous closing of and at the per unit price to the public in
the Registered Offering (as defined below), Seller desires to sell to Buyer and Buyer desires to purchase from Seller 4,700,000 of the Units (the "Unregistered
Units") and to assign certain registration rights of Seller ("Registration Rights") pursuant to Section 7.12(f) of the
Second Amended and Restated Limited Liability Company Agreement of the Company (the "LLC Agreement") for the consideration and on the terms and
conditions contained in this Agreement. 

 
 

Agreement:    
    

        NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements herein contained, it is agreed by the parties hereto as follows: 

        1.     Transfer of the Unregistered Units

        Pursuant
to the terms and subject to the conditions set forth in this Agreement, at the Closing (defined in Section 3), Seller will
sell and assign the Unregistered Units to Buyer and deliver to Buyer a stock power duly endorsed by Seller so that the Unregistered Units may be duly registered in Buyer's name, as consideration for
receipt of payment of the Cash Consideration (defined in Section 2). 

        2.     Delivery of Purchase Price and Unregistered Units

        The
purchase price ("Purchase Price") for the Unregistered Units being sold and the other rights granted in this Agreement shall be the
sum of the number of Unregistered Units (4,700,000) multiplied by the per unit price at which the public purchases Units from the underwriters in the public offering of Units (the
"Registered Offering") registered pursuant to the registration statement filed with the Securities and Exchange Commission by the Company on
Form S-1 (File No. 333-138810). At the Closing, Buyer shall deliver the Purchase Price to Seller in immediately available funds. At the Closing, Seller shall
deliver a certificate of the transfer agent evidencing that the Unregistered Units are duly registered on the books of the Company in the name of Buyer. 

        3.     Closing

        The
closing ("Closing") of the transactions contemplated hereby shall be held at the offices of Andrews Kurth LLP, 600 Travis, Suite 4200,
Houston, Texas 77002 concurrently with 

EXECUTION COPY  

the
closing of the Registered Offering. The Closing is conditioned upon the simultaneous closing of the Registered Offering occurring no later than April 1, 2007. 

        4.     Assignment and Assumption of Registration Rights

        4.1   Assignment. Seller does hereby assign, pursuant to Section 7.12(f) of the LLC Agreement, its rights to cause the
Company to register the Units pursuant to Section 7.12 of the LLC Agreement to the Buyer. 

        4.2   Assumption. In accordance with the provisions of Section 7.12 of the LLC Agreement, Buyer hereby agrees to be
bound by and subject to the terms set forth in Section 7.12 of the LLC Agreement. 

        5.     Buyer's Representations

        Buyer
hereby represents and warrants to Seller that: 

        5.1   Investment Purposes. The Unregistered Units are being acquired solely for the account of the Buyer and not with a view
to, or for resale in connection with, a distribution of all or any party thereof. Buyer has such knowledge and experience in financial and business matters as to be capable of evaluating the merits
and risks of an investment in the Unregistered Units. Buyer has not made any commitment to sell, transfer or assign, and has no presently arranged plan or intention to sell, transfer or assign, any of
the Unregistered Units. Buyer acknowledges that the Unregistered Units have not been registered under the Securities Act of 1933, as amended (the
"Act"), and agrees to the placement of the following legend on the certificates representing the Unregistered Units: 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW
TO DISTRIBUTION OR RESALE AND MAY NOT BE PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF WITHOUT AN EFFECTIVE REGISTRATION OF SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL (WHICH MAY BE COUNSEL
FOR THE COMPANY) IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT WITH RESPECT TO SUCH PLEDGE, TRANSFER OR OTHER
DISPOSITION. 

        5.2   Authority and Approval. Buyer has all requisite power, authority and capacity to execute and deliver this Agreement, to
consummate the transactions contemplated hereby and to perform all the terms and conditions hereof to be performed by him. This Agreement constitutes the valid and binding obligation of Buyer
enforceable against Buyer in accordance with its terms. 

        5.3   Accuracy of Representations. All representations, warranties and covenants of Buyer contained in this Agreement shall be
true and correct in every material respect as of the date of Closing with the same effect as if they had been made at and as of the date of Closing. 

EXECUTION COPY  

        5.4   Broker. Buyer and his representatives have incurred no obligation or liability, contingent or otherwise, for brokerage or
finders' fees or agents' commissions or other similar payment in connection with this Agreement and will indemnify and hold Seller and the Company harmless from any such payment alleged to be due by
or through Buyer as a result of the action of Buyer or his representatives. 

        6.     Seller's Representations

        Seller
hereby represents and warrants to Buyer that: 

        6.1   Ownership of the Unregistered Units. Seller owns all of the ownership interests in and to the Unregistered Units. The
Unregistered Units are owned beneficially and of record by Seller, free and clear of all security interests, claims, liens, charges, encumbrances and rights of others (collectively,
"Liens"). Except for the transactions contemplated by this Agreement, there are no outstanding subscriptions, options, convertible securities, warrants,
calls or rights of any kind (issued or granted by, or binding upon, Seller) to purchase or otherwise acquire any of the Unregistered Units. Seller has full legal right to sell, assign and transfer its
ownership interests to Buyer and will, upon delivery of the ownership interests to Buyer pursuant to the terms hereof, transfer to Buyer good and valid title to the ownership interests free and clear
of all Liens, rights, options to purchase, voting trusts or other voting agreements and calls and commitments of every kind created by or known to Seller and affecting the Unregistered Units, other
than those that may be imposed by Buyer. 

        6.2   Authority and Approval. Seller has all requisite power, authority and capacity to execute and deliver this Agreement, to
consummate the transactions contemplated hereby and to perform all the terms and conditions hereof to be performed by them. This Agreement constitutes the valid and binding obligation of Seller
enforceable against Seller in accordance with its terms. 

        6.3   Accuracy of Representations. All representations, warranties and covenants of Seller contained in this Agreement shall be
true and correct in every material respect as of the date of Closing with the same effect as if they had been made at and as of the date of Closing. 

        6.4   No Brokers. Seller and their representatives have incurred no obligation or liability, contingent or otherwise, for
brokerage or finders' fees or agents' commissions or other similar payment in connection with this Agreement and will indemnify and hold Buyer harmless from any such payment alleged to be due by or
through Seller as a result of the action of Seller or its representatives. 

        7.     Other Agreements

        7.1   Survival of Representations; Additional Limitations. (a) The respective representations and warranties of the
parties hereto set forth in Sections 5.2, 5.4, 6.1,  6.2 and
6.4shall survive the Closing of this transaction. Except as provided for in the preceding
sentence, no party will have any liability (for indemnification or otherwise) with respect to any representation or warranty unless on or before eighteen (18) months after Closing, such party
receives notice from another party of a claim specifying the factual basis of that claim in reasonable detail to the extent then known by the party giving such notice. 

EXECUTION COPY  

        (b)   This  Section 7.1 will not apply to any intentional breach. The maximum amount of all payments in respect of
claims
for indemnification against Seller hereunder shall not exceed an aggregate amount equal to the Purchase Price received by the Seller. 

        7.2   Disputes. Should any disagreement between Buyer and Seller relating to the performance of this Agreement occur, the
parties shall attempt to settle such disagreement by agreement between the parties as follows. The party asserting such disagreement shall provide written notice of all facts and supporting
documentation concerning the disagreement to the other party. The other party shall review these materials and shall within ten (10) business days of receipt of such notice, either meet in
person or by conference telephone call with the party asserting such disagreement to discuss a resolution or provide a written notice of such party's position on the disputed issues and the reason(s)
therefor. 

        Any
disagreement between Buyer and Seller relating to the performance of this Agreement that cannot be settled by agreement between the parties shall be a dispute. Any dispute arising
under this Agreement shall be submitted to non-binding mediation. The parties agree to use any mediator as shall be mutually agreed upon by the parties, to provide mediation as described
in Section 154.023 of the Texas Civil Practice and Remedies Code. Unless the parties are satisfied with the result of the mediation, the mediation will not constitute a final binding resolution
of the dispute. All communications within the scope of the mediation shall remain confidential as described in Section 154.073 of the Texas Civil Practice and Remedies Code, unless the parties
agree in writing to waive the confidentiality. 

        In
addition to mediation, the parties may agree to other forms of alternative dispute resolution, including, but not limited to informal settlement negotiations and formal settlement
negotiations. 

        If
the parties enter into alternative dispute resolution procedures, the cost of such procedures will be borne equally by the parties. All dispute resolution proceedings shall take place
in San Antonio, Texas, unless the parties agree otherwise. 

        The
parties expressly acknowledge and agree that no finding or outcomes of any negotiation or mediation process shall be binding on a party without its written agreement, nor shall it
prevent either party from engaging in any litigation it deems necessary, or seeking any other remedies available to it. 

        8.     Conditions to the Obligations of Buyer

        The
obligations of Buyer to proceed with the Closing contemplated hereby are subject to the satisfaction on or prior to the Closing of all of the following conditions, any one or more of
which may be waived, in whole or in part, by Buyer: 

        (a)   The
Registered Offering shall close simultaneously with the Closing. 

        (b)   Seller
shall have complied in all material respects with each of his covenants and agreements contained herein and each of his representations and warranties contained
in this Agreement shall be deemed to have been made again at and as of the Closing and shall then be true and correct in all material respects. 

EXECUTION COPY  

        (c)   No
order to restrain, enjoin or otherwise prevent the consummation of this Agreement or the transactions in connection herewith shall have been entered restraining or
prohibiting consummation of the transactions contemplated hereby. 

        9.     Conditions to the Obligations of Seller

        The
obligations of Seller to proceed with the Closing contemplated hereby are subject to the satisfaction on or prior to the Closing of all of the following conditions, any one or more
of which may be waived, in whole or in part, by Seller: 

        (a)   The
Registered Offering shall have priced and be set to close simultaneously with the Closing. 

        (b)   Buyer
shall have complied in all material respects with his covenants and agreements contained herein and each of his representations and warranties contained in this
Agreement shall be deemed to have been made again at and as of the Closing and shall then be true in all material respects. 

        (c)   No
order to restrain, enjoin or otherwise prevent the consummation of this Agreement or the transactions in connection herewith shall have been entered restraining or
prohibiting consummation of the transactions contemplated hereby. 

        10.   Termination

        This
Agreement may be terminated by either party if any condition precedent to the obligations of such party to consummate the transactions contemplated by the Agreement has not been
fulfilled by the time fixed for the Closing or if prior to such time, any such condition has become incapable of fulfillment, and the fulfillment of such condition has not been waived by such party;
or at any time, by mutual agreement of the parties; provided, however, that the right to terminate this
Agreement under this Section 10 shall not be available to any party whose failure to fulfill any obligation under this Agreement has to any extent been the cause of, or resulted in, the failure
of Closing to occur on or before such date. 

        11.   Provisions of General Application

        11.1 Expenses. Regardless of whether the transactions contemplated hereby are consummated, each party hereto shall pay its
own expenses incident to this Agreement and all action taken in preparation for carrying this Agreement into effect. 

        11.2 Notices. Any notice, request, instruction, correspondence, or other document to be given hereunder by either party to
the other shall be in writing and delivered personally or mailed by certified mail, postage prepaid and return receipt requested, or by facsimile, as follows: 

EXECUTION COPY  

If
to Buyer, addressed to: 

William
E. Greehey

One Valero Way

San Antonio, Texas 78249

Telephone: (210) 345-2000

Fax: (210) 345-2493 

with
a copy to: 

Bradley
C. Barron

One Valero Way

San Antonio, Texas 78249

Telephone: (210) 345-2000

Fax: (210) 370-5000 

If
to Seller, addressed to: 

Diamond
Shamrock Refining and Marketing Company

One Valero Way

San Antonio, Texas 78249

Telephone: (210) 345-2000 

with
a copy to: 

Gregory
C. King

One Valero Way

San Antonio, Texas 78249

Telephone: (210) 345-2000

Fax: (210) 345-3214 

If
to the Company, addressed to: 

Valero
GP Holdings, LLC

One Valero Way

San Antonio, Texas 78249

Telephone: (210) 345-2000 

Any
address or name specified above may be changed by a notice given by the addressee to the other party in accordance with this Section 10.2.
Any notice, demand or other communication shall be deemed given and effective as of the date of delivery in person or upon receipt as set forth on the return receipt. The inability to deliver because
of changed address of which no notice was given, or the rejection or other refusal to accept any notice, demand or other communication, shall be deemed to be
there receipt of the notice, demand or other communication as of the date of such inability to deliver or the rejection or refusal to accept. 

EXECUTION COPY  

        11.3 Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Texas. 

        11.4 Entire Agreement; Amendments and Waivers. This Agreement constitutes the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties, and there are no warranties,
representations or other agreements among the parties in connection with the subject matter hereof except as set forth specifically herein or contemplated hereby. No supplement, modification or waiver
of this Agreement shall be binding unless executed in writing by each party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing waiver unless otherwise expressly provided. 

        11.5 Binding Effect and Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective permitted successors and assigns; but except as otherwise specifically provided in this Agreement, neither this Agreement nor any of the rights, benefits or obligations hereunder
shall be assigned, by operation of law or otherwise, by any party hereto without the prior written consent of the other parties; provided,  however, that
Buyer may transfer this Agreement and any of the rights, benefits or obligations hereunder including any or all of the Unregistered Units
(a "Permitted Transfer") to any corporation, company, voluntary association, partnership, limited liability company, trust, or unincorporated
organization, controlled by or established at the direction of Buyer (each being a "Permitted Transferee") in compliance with the transfer restrictions
set forth in Section 5.1. Any such Permitted Transfer shall be effective upon the related Permitted Transferee(s) having agreed, in writing, to
be bound by and subject to the terms set forth in this Agreement and in Section 7.12 of the LLC Agreement and having provided the Company and the Seller with notice of such Permitted Transfer
and agreement. 

        11.6 Severability. If any one or more of the provisions contained in this Agreement or in any other documents delivered
pursuant hereto shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this
Agreement or any other such document. 

        11.7 Multiple Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. Delivery of a copy of this Agreement bearing an original signature by facsimile transmission or by electronic mail in
"portable document format" form shall have the same effect as physical delivery of the paper document bearing the original signature. 

        11.8 Further Assurances. Each party to this Agreement shall make, execute, acknowledge and deliver such other instruments and
documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the transactions contemplated hereby. 

        11.9 Survival of Covenants and Agreements. All covenants and agreements contained in this Agreement shall survive the Closing
in accordance with their respective terms. 

EXECUTION COPY  

        EXECUTED
to be effective as of the date first written above. 

	 	 	SELLER:
	

 	
 	

Diamond Shamrock Refining and Marketing Company
	

 	
 	

By:	

/s/ Gregory C. King
 Gregory C. King, President	
 	

 
	

 	
 	

BUYER:
	

 	
 	

 	

/s/ William E. Greehey
 William E. Greehey	
 	

 

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UNIT PURCHASE AGREEMENT

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