Document:

Loan Agreement dated May 17, 2011

 Exhibit 4.24 
 Date 17 May 2011 
 ARAL SEA SHIPPING S.A. 

as Borrower 
 -
and - 
 UNICREDIT BANK AG 
 as Lender 
  

 
 LOAN
AGREEMENT 
  
  

relating to a secured term loan facility 
 of up to US$32,800,000 to finance part of 
 the acquisition cost of “MSC
SIENA” 
 a 2006-built 4,425 TEU container vessel 
 WATSON, FARLEY & WILLIAMS 
 Piraeus 

 INDEX 

 

							
	Clause	  	Page	 
			
	 1
	  	INTERPRETATION	  	 	1	  
			
	 2
	  	FACILITY	  	 	14	  
			
	 3
	  	DRAWDOWN	  	 	14	  
			
	 4
	  	INTEREST	  	 	15	  
			
	 5
	  	INTEREST PERIODS	  	 	16	  
			
	 6
	  	DEFAULT INTEREST	  	 	16	  
			
	 7
	  	REPAYMENT AND PREPAYMENT	  	 	17	  
			
	 8
	  	CONDITIONS PRECEDENT	  	 	19	  
			
	 9
	  	REPRESENTATIONS AND WARRANTIES	  	 	20	  
			
	 10
	  	GENERAL UNDERTAKINGS	  	 	22	  
			
	 11
	  	CORPORATE UNDERTAKINGS	  	 	26	  
			
	 12
	  	INSURANCE	  	 	26	  
			
	 13
	  	SHIP COVENANTS	  	 	32	  
			
	 14
	  	SECURITY COVER	  	 	36	  
			
	 15
	  	PAYMENTS AND CALCULATIONS	  	 	37	  
			
	 16
	  	APPLICATION OF RECEIPTS	  	 	37	  
			
	 17
	  	APPLICATION OF EARNINGS	  	 	38	  
			
	 18
	  	EVENTS OF DEFAULT	  	 	39	  
			
	 19
	  	FEES AND EXPENSES	  	 	43	  
			
	 20
	  	INDEMNITIES	  	 	44	  
			
	 21
	  	NO SET-OFF OR TAX DEDUCTION	  	 	46	  
			
	 22
	  	ILLEGALITY, ETC	  	 	47	  
			
	 23
	  	INCREASED COSTS	  	 	47	  
			
	 24
	  	SET-OFF	  	 	49	  
			
	 25
	  	TRANSFERS AND CHANGES IN LENDING OFFICE	  	 	49	  
			
	 26
	  	VARIATIONS AND WAIVERS	  	 	50	  

  

							
			
	 27
	  	NOTICES	  	 	51	  
			
	 28
	  	SUPPLEMENTAL	  	 	52	  
			
	 29
	  	LAW AND JURISDICTION	  	 	52	  
		
	 SCHEDULE 1 DRAWDOWN NOTICE
	  	 	54	  
		
	 SCHEDULE 2 CONDITION PRECEDENT DOCUMENTS
	  	 	55	  

 THIS AGREEMENT is made on 17 May 2011 
 BETWEEN 
  

	(1)	ARAL SEA SHIPPING S.A., a corporation incorporated in the Republic of Liberia whose registered office is at 80 Broad Street, Monrovia, Republic of Liberia (the
“Borrower”); and 

  

	(2)	UNICREDIT BANK AG, acting through its office at 7 Heraklitou Street, 106 73 Athens, Greece (as “Lender”). 

BACKGROUND 
 The Lender
has agreed to make available to the Borrower a secured term loan facility of up to the lesser of (a) $32,800,000 and (b) 55 per cent. (if the Borrower exercises Option A) or 51 per cent. (if the Borrower exercises Option B) of
the lesser of (i) the acquisition cost of m.v “MSC SIENA” pursuant to the MOA and (ii) the Initial Market Value of the Ship in one advance for the purpose of financing part of the acquisition cost of m.v. “MSC SIENA”.

 IT IS AGREED as follows: 
  

	1	INTERPRETATION 

  

	1.1	Definitions. Subject to Clause 1.5, in this Agreement: 

 “Accounts Pledge” means a deed creating security in respect of the Earnings Account and the Retention Account in the Agreed Form; 

“Agreed Form” means in relation to any document, that document in the form approved in writing by the Lender or as
otherwise approved in accordance with any other approved procedure specified in any relevant provision of any Finance Document; 

“Approved Broker” means any of Arrow Valuations Ltd., Fearnleys AS, Barry Rogliano Salles, H. Clarkson & Co.
Ltd., Galbraiths Ltd., Platou Shipbrokers AS, Simpson Spence & Young and E.A. Gibson Brokers, or any other reputable sale and purchase broker approved by the Lender, and in the plural means all of them; 

“Approved Charter” means the time charterparty dated 2 April 2004 (as amended and supplemented from time to time)
and made between the Borrower and the Approved Charterer for a term of at least eight years at a net daily charter hire rate of $27,300 and on such other terms approved by the Lender prior to the date of this Agreement; 

“Approved Charterer” means AP Moller Maersk, a corporation incorporated in Denmark whose registered office is at 50
Esplanaden, DK-1098 K, Copenhagen, Denmark; 
 “Approved Charter Assignment” means a specific deed of assignment
of the rights of the Borrower in respect of the Approved Charter, in the Agreed Form; 
 “Approved Flag” means
the Liberian flag or any other flag the Lender may, in its sole and absolute discretion, approve as the flag on which the Ship may be registered; 
 “Approved Flag State” means the Republic of Liberia or any other country in which the Lender may, in its sole and absolute discretion, following a request from the Borrower, approve that
the Ship may be registered; 

 “Approved Manager” means Allseas Marine S.A., a corporation organised and
existing under the laws of the Republic of Liberia having its registered office at 80 Broad Street, Monrovia, Liberia and maintaining a shipmanagement office at 15 Karamanli Street, 166 73 Voula, Greece or any other company which the Lender may, at
the request of the Borrower, approve from time to time as the technical and/or commercial manager of the Ship; 

“Approved Manager’s Undertaking” means a letter of undertaking executed or to be executed by the Approved Manager in
favour of the Lender, agreeing certain matters in relation to the Approved Manager and subordinating its rights against the Ship and the Borrower to the rights of the Lender under the Finance Documents, in the Agreed Form; 

“Asset Cover Ratio” means at any time the ratio of: 

 

	 	(a)	the aggregate of (i) the Market Value of the Ship and (ii) the net realisable value of any additional security provided at that time pursuant to Clause 14.1

 expressed as a percentage of 
  

	 	(b)	the aggregate of (i) the Loan and (ii) the Swap Exposure; 

 “Availability Period” means the period commencing on the date of this Agreement and ending on: 
  

	 	(a)	24 June 2011 (or such later date as the Lender may agree with the Borrower); or 

 

	 	(b)	if earlier, the Drawdown Date or the date on which the Lender’s obligation to make the Loan is cancelled or terminated; 

“Borrower” means Aral Sea Shipping S.A., a corporation incorporated in Republic of Liberia whose registered office is at
80 Broad Street, Monrovia, Republic of Liberia; 
 “Business Day” means a day on which banks are open in London,
Athens, Munich and, in respect of a day on which a payment is required to be made under a Finance Document, also in New York City; 
 “Charter” means any charterparty or other contract of employment in respect of the Ship (other than the Approved Charter) for a term of more than 11 months entered or to be entered into
by the Borrower; 
 “Charterparty Assignment” means an assignment of a Charter executed or to be executed by the
Borrower in favour of the Lender in the Agreed Form; 
 “CISADA” means the United States Comprehensive Iran
Sanctions, Accountability and Divestment Act of 2010 as it applies to non-US persons; 
 “Commitment” means, if
Option A is exercised, $32,800,000 or, if Option B is exercised, $30,000,000, in each case as the relevant amount may be reduced, cancelled or terminated in accordance with this Agreement; 

“Confirmation” and “Early Termination Date” in relation to any continuing Transaction have the meanings
given in the Master Agreement; 
 “Consolidated Debt” means the aggregate amount of any moneys borrowed by the
Group including, without limitation, undrawn bank commitments (other than any loans by any member of the Group to another member of the Group) outstanding on the date of the IPO; 

  
 2 

 “Contract Price” means $59,590,000, being the purchase price of the Ship
payable by the Borrower to the Seller pursuant to the MOA; 
 “Contractual Currency” has the meaning given in
Clause 20.5; 
 “Delivery Date” means the date on which title and possession of the Ship is transferred to the
Borrower pursuant to the MOA; 
 “Dividend Declaration Date” means, in respect of each quarterly period during
each Financial Year, a date (being a Business Day) falling no later than 10 days prior to any intended declaration by the Borrower to its shareholders of any dividend; 
 “Dollars” and “$” means the lawful currency for the time being of the United States of America; 
 “Drawdown Date” means the date requested by the Borrower for the Loan to be made, or (as the context requires) the date on which the Loan is actually made; 

“Drawdown Notice” means a notice in the form set out in Schedule 1 (or in any other form which the Lender approves or
reasonably requires); 
 “Earnings” means all moneys whatsoever which are now, or later become, payable
(actually or contingently) to the Borrower or the Lender and which arise out of the use or operation of the Ship, including (but not limited to): 
  

	 	(a)	all freight, hire and passage moneys, compensation payable to the Borrower or the Lender in the event of requisition of the Ship for hire, remuneration for salvage and
towage services, demurrage and detention moneys and damages for breach (or payments for variation or termination) of any charterparty or other contract for the employment of the Ship; 

 

	 	(b)	all moneys which are at any time payable under any Insurances in respect of loss of hire; and 

 

	 	(c)	if and whenever the Ship is employed on terms whereby any moneys falling within paragraphs (a) or (b) are pooled or shared with any other person, that
proportion of the net receipts of the relevant pooling or sharing arrangement which is attributable to the Ship; 

“Earnings Account” means an account in the name of the Borrower with the Lender in Athens, or any other account (with
that or another office of the Lender or with a bank or financial institution other than the Lender) which is designated by the Lender as the Earnings Account for the purposes of this Agreement; 

“Environmental Claim” means: 
  

	 	(a)	any claim by any governmental, judicial or regulatory authority which arises out of an Environmental Incident or an alleged Environmental Incident or which relates to
any Environmental Law; or 

  

	 	(b)	any claim by any other person which relates to an Environmental Incident or to an alleged Environmental Incident, 

and “claim” means a claim for damages, compensation, fines, penalties or any other payment of any kind, whether or not
similar to the foregoing; an order or direction to take, or not to take, certain action or to desist from or suspend certain action; and any form of enforcement or regulatory action, including the arrest or attachment of any asset; 

  
 3 

 “Environmental Incident” means: 

 

	 	(a)	any release of Environmentally Sensitive Material from the Ship; or 

  

	 	(b)	any incident in which Environmentally Sensitive Material is released from a vessel other than the Ship and which involves a collision between the Ship and such other
vessel or some other incident of navigation or operation, in either case, in connection with which the Ship is actually or potentially liable to be arrested, attached, detained or injuncted and/or the Ship and/or the Borrower and/or any operator or
manager of the Ship is at fault or allegedly at fault or otherwise liable to any legal or administrative action; or 

  

	 	(c)	any other incident in which Environmentally Sensitive Material is released otherwise than from the Ship and in connection with which the Ship is actually or potentially
liable to be arrested and/or where the Borrower and/or any operator or manager of the Ship is at fault or allegedly at fault or otherwise liable to any legal or administrative action; 

“Environmental Law” means any law relating to pollution or protection of the environment, to the carriage of
Environmentally Sensitive Material or to actual or threatened releases of Environmentally Sensitive Material; 

“Environmentally Sensitive Material” means oil, oil products and any other substance (including any chemical, gas or
other hazardous or noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous; 

“Event of Default” means any of the events or circumstances described in Clause 18.1; 

“Finance Documents” means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	the Guarantee; 

  

	 	(c)	the Master Agreement Assignment; 

  

	 	(d)	the General Assignment; 

  

	 	(e)	the Approved Charter Assignment; 

  

	 	(f)	any Charter Assignment; 

  

	 	(g)	the Mortgage; 

  

	 	(h)	the Accounts Pledge; 

  

	 	(i)	the Approved Manager’s Undertaking; and 

  

	 	(j)	any other document (whether creating a Security Interest or not) which is executed at any time by the Borrower or any other person as security for, or to establish any
form of subordination or priorities arrangement in relation to, any amount payable to the Lender under this Agreement or any of the other documents referred to in this definition; 

  
 4 

 “Financial Indebtedness” means, in relation to a person (the
“debtor”), a liability of the debtor: 
  

	 	(a)	for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the debtor; 

 

	 	(b)	under any loan stock, bond, note or other security issued by the debtor; 

  

	 	(c)	under any acceptance credit, guarantee or letter of credit facility made available to the debtor; 

 

	 	(d)	under a financial lease, a deferred purchase consideration arrangement or any other agreement having the commercial effect of a borrowing or raising of money by the
debtor; 

  

	 	(e)	under any interest or currency swap or any other kind of derivative transaction entered into by the debtor or, if the agreement under which any such transaction is
entered into requires netting of mutual liabilities, the liability of the debtor for the net amount; or 

  

	 	(f)	under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability of another person which would fall within ((a)) to ((e)) if the
references to the debtor referred to the other person; 

 “Financial Year” means, in relation to
the Group, each period of 1 year commencing on 1 January in respect of which its consolidated accounts are or ought to be prepared; 
 “Fleet Vessels” means all of the vessels (including, but not limited to, the Ship) from time to time wholly owned by members of the Group (each a “Fleet Vessel”);

 “GAAP” means generally accepted accounting principles as from time to time in effect in the United States of
America; 
 “General Assignment” means a first priority general assignment of the Earnings, the Insurances and
any Requisition Compensation in the Agreed Form; 
 “Group” means the Guarantor and its subsidiaries (including
but not limited to the Borrower) from time to time during the Security Period and “member of the Group” shall be construed accordingly; 
 “Guarantee” means a guarantee of the obligations of the Borrower under this Agreement, the Master Agreement and the other Finance Documents to which the Borrower is a party to be executed
by the Guarantor in the Agreed Form; 
 “Guarantor” means Box Ships Inc., a corporation incorporated in the
Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960; 
 “IACS” means the International Association of Classification Societies; 
 “Initial Market Value” means the Market Value of the Ship calculated in accordance with the valuation referred to in paragraph 4 of Schedule 2, Part B; 

  
 5 

 “Insurances” means: 

 

	 	(a)	all policies and contracts of insurance, including entries of the Ship in any protection and indemnity or war risks association, effected in respect of the Ship, the
Earnings or otherwise in relation to the Ship; and 

  

	 	(b)	all rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium; 

“Interest Period” means a period determined in accordance with Clause 5; 

“IPO” means the initial public offering of the shares of the Guarantor on the New York Stock Exchange
which was effected on 14th April, 2011; 

“ISM Code” means the International Safety Management Code (including the guidelines on its implementation), adopted by
the International Maritime Organisation as the same may be amended, supplemented or superseded from time to time (and the terms “safety management system”, “Safety Management Certificate” and “Document of
Compliance” have the same meanings as are given to them in the ISM Code); 
 “ISM Code Documentation”
includes: 
  

	 	(a)	the document of compliance (DOC) and safety management certificate (SMC) issued pursuant to the ISM Code in relation to the Ship within the periods specified by the ISM
Code; and 

  

	 	(b)	all other documents and data which are relevant to the ISM SMS and its implementation and verification which the Lender may require; and 

 

	 	(c)	any other documents which are prepared or which are otherwise relevant to establish and maintain the Ship’s or the Borrower’s compliance with the ISM Code
which the Lender may require; 

 “ISM SMS” means the safety management system for the Ship which
is required to be developed, implemented and maintained under the ISM Code; 
 “ISPS Code” means the
International Ship and Port Facility Security Code adopted by the International Maritime Organisation as the same may be amended, supplemented or superseded from time to time; 
 “ISPS Code Documentation” includes: 
  

	 	(a)	the International Ship Security Certificate issued pursuant to the ISPS Code in relation to the Ship within the period specified in the ISPS Code; and

  

	 	(b)	all other documents and data which are relevant to the ISPS Code and its implementation and verification which the Lender may require; 

“ISSC” means a valid and current International Ship Security Certificate issued under the ISPS Code; 

“Lender” means UniCredit Bank AG, acting through its office at 7 Heraklitou Street, 106 73 Athens, Greece (or through
another branch notified to the Borrower under Clause 25.6) or its successor or assignee; 
 “LIBOR” means, for
an Interest Period, the rate per annum determined by the Lender to be the rate at which deposits in Dollars are offered to the Lender by leading banks in the London Interbank Market at the Lender’s request at or about 11.00 am (London time) on
the Quotation Date for that Interest Period for a period equal to that Interest Period and for delivery on the first Business Day of it; 

  
 6 

 “Loan” means the principal amount for the time being outstanding under this
Agreement; 
 “Major Casualty” means any casualty to the Ship in respect of which the claim or the aggregate of
the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds $500,000 or the equivalent in any other currency; 
 “Margin” means, subject to Clause 4.12,: 
  

	 	(a)	subject to the Asset Cover Ratio being at least 130 per cent.: 

  

	 	(i)	at any time the Ship is operating under the Approved Charter, 2.80 per cent. per annum; and 

 

	 	(ii)	at all other times, 3 per cent. per annum; or 

  

	 	(b)	at any time the Asset Cover Ratio is lower than 130 per cent., 4.5 per cent. per annum; 

“Margin Calculation Date” has the meaning given to it in Clause 4.12; 

“Market Value” means, in relation to the Ship (and each other Fleet Vessel), the market value thereof determined in
accordance with Clause 14.3; 
 “Master Agreement” means the master agreement (on the 2002 ISDA (Multi-currency
Crossborder) form made or to be made between the Borrower and the Lender in the Agreed Form and includes all Transactions from time to time entered into and Confirmations from time to time exchanged thereunder; 

“Master Agreement Assignment” means the assignment of the Borrower’s rights under the Master Agreement in the Agreed
Form; 
 “MOA” means the Memorandum of Agreement dated 24 February 2011 and entered into between the Seller
and the Borrower; 
 “Mortgage” means the first priority or, as the case may be, preferred ship mortgage on the
Ship under the applicable Approved Flag together with any deed of covenant collateral thereto (if applicable) in the Agreed Form; 
 “Negotiation Period” has the meaning given in Clause 4.6; 

“Option A” has the meaning given in Clause 2.1(a); 

“Option B” has the meaning given in Clause 2.1(b); 

“Payment Currency” has the meaning given in Clause 20.4; 

“Permitted Security Interests” means: 
  

	 	(a)	Security Interests created by the Finance Documents; 

  

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

 

	 	(c)	liens for salvage; 

  
 7 

	 	(d)	liens arising by operation of law for not more than 2 months’ prepaid hire under any charter in relation to the Ship not prohibited by this Agreement;

  

	 	(e)	liens for master’s disbursements incurred in the ordinary course of trading and any other lien arising by operation of law or otherwise in the ordinary course of
the trading, chartering, operation, repair or maintenance of the Ship, provided such liens do not secure amounts more than 30 days overdue (unless the overdue amount is being contested by the Borrower in good faith by appropriate steps) and subject,
in the case of liens for repair or maintenance, to Clause 13.13(e); 

  

	 	(f)	any Security Interest created in favour of a plaintiff or defendant in any action of the court or tribunal before whom such action is brought as security for costs and
expenses where the Borrower is prosecuting or defending such action in good faith by appropriate steps; and 

  

	 	(g)	Security Interests arising by operation of law in respect of taxes which are not overdue for payment other than taxes being contested in good faith by appropriate steps
and in respect of which appropriate reserves have been made; 

 “Pertinent Document” means:

  

	 	(a)	any Finance Document; 

  

	 	(b)	any policy or contract of insurance contemplated by or referred to in Clause 12 or any other provision of this Agreement or another Finance Document;

  

	 	(c)	any other document contemplated by or referred to in any Finance Document; and 

 

	 	(d)	any document which has been or is at any time sent by or to the Lender in contemplation of or in connection with any Finance Document or any policy, contract or
document falling within paragraphs (b) or (c); 

 “Pertinent Jurisdiction”, in relation to a
company, means: 
  

	 	(a)	England and Wales; 

  

	 	(b)	the country under the laws of which the company is incorporated or formed; 

 

	 	(c)	a country in which the company has the centre of its main interests or in which the company’s central management and control is or has recently been exercised;

  

	 	(d)	a country in which the overall net income of the company is subject to corporation tax, income tax or any similar tax; 

 

	 	(e)	a country in which assets of the company (other than securities issued by, or loans to, related companies) having a substantial value are situated, in which the company
maintains a branch or a permanent place of business, or in which a Security Interest created by the company must or should be registered in order to ensure its validity or priority; and 

 

	 	(f)	a country the courts of which have jurisdiction to make a winding up, administration or similar order in relation to the company, whether as main or territorial or
ancillary proceedings, or which would have such jurisdiction if their assistance were requested by the courts of a country referred to in paragraphs (b) or (c); 

  
 8 

 “Pertinent Matter” means: 

 

	 	(a)	any transaction or matter contemplated by, arising out of, or in connection with a Pertinent Document; or 

 

	 	(b)	any statement relating to a Pertinent Document or to a transaction or matter falling within paragraph (a), 

and covers any such transaction, matter or statement, whether entered into, arising or made at any time before the signing of this
Agreement or on or at any time after that signing; 
 “Potential Event of Default” means an event or
circumstance which, with the giving of any notice, the lapse of time, a determination of the Lender and/or the satisfaction of any other condition, would constitute an Event of Default; 

“Prohibited Person” means any person (whether designated by name or by reason of being included in a class of persons)
against whom Sanctions are directed; 
 “Quotation Date” means, in relation to any Interest Period (or any other
period for which an interest rate is to be determined under any provision of a Finance Document), the day on which quotations would ordinarily be given by leading banks in the London Interbank Market for deposits in the currency in relation to which
such rate is to be determined for delivery on the first day of that Interest Period or other period; 
 “Relevant
Person” has the meaning given in Clause 18.7; 
 “Repayment Date” means a date on which a repayment is
required to be made under Clause 7; 
 “Requisition Compensation” includes all compensation or other moneys
payable by reason of any act or event such as is referred to in paragraph (b) of the definition of “Total Loss”; 

“Retention Account” means an account in the name of the Borrower with the Lender in Athens or any other account (with
that or another office of the Lender) which is designated by the Lender as the Retention Account for the purposes of this Agreement; 
 “Sanctions” means any sanctions, embargoes, freezing provisions, prohibitions or other restrictions relating to trading, doing business, investment, exporting, financing or making assets
available (or other activities similar to or connected with any of the foregoing): 
  

	 	(a)	imposed by law or regulation of the United Kingdom, the Council of the European Union, the United Nations or its Security Council; 

 

	 	(b)	imposed by CISADA; or 

  

	 	(c)	otherwise imposed by any law or regulation by which the Borrower or the Guarantor is bound or, as regards a regulation, compliance with which is reasonable in the
ordinary course of business of the Borrower or the Guarantor and for which a waiver or suspension has not been obtained; 

 “Secured Liabilities” means all liabilities which the Borrower, the Security Parties or any of them have, at the date of this Agreement or at any later time or times, under or by virtue
of the Finance Documents or any judgment relating to any Finance Document; and for this purpose, there shall be disregarded any total or partial discharge of these liabilities, or variation of their terms, which is effected by, or in connection
with, any bankruptcy, liquidation, arrangement or other procedure under the insolvency laws of any country; 

  
 9 

 “Security Interest” means: 

 

	 	(a)	a mortgage, charge (whether fixed or floating) or pledge, any maritime or other lien or any other security interest of any kind; 

 

	 	(b)	the rights of the plaintiff under an action in rem in which the vessel concerned has been arrested or a writ has been issued or similar step taken; and

  

	 	(c)	any arrangement entered into by a person (A) the effect of which is to place another person (B) in a position which is similar, in economic terms, to the
position in which B would have been had he held a security interest over an asset of A; but (c) does not apply to a right of set off or combination of accounts conferred by the standard terms of business of a bank or financial institution;

 “Security Party” means the Guarantor, the Approved Manager and any other person (except the
Lender) who, as a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes a document falling within the final paragraph of the definition of “Finance Documents”; 

“Security Period” means the period commencing on the date of this Agreement and ending on the date on which the Lender
notifies the Borrower and the Security Parties that: 
  

	 	(a)	all amounts which have become due for payment by the Borrower or any Security Party under the Finance Documents have been paid; 

 

	 	(b)	no amount is owing or has accrued (without yet having become due for payment) under any Finance Document; 

 

	 	(c)	neither the Borrower nor any Security Party has any future or contingent liability under Clause 19, 20 or 21 or any other provision of this Agreement or another Finance
Document; and 

  

	 	(d)	the Lender does not consider that there is a significant risk that any payment or transaction under a Finance Document would be set aside, or would have to be reversed
or adjusted, in any present or possible future bankruptcy of the Borrower or a Security Party or in any present or possible future proceeding relating to a Finance Document or any asset covered (or previously covered) by a Security Interest created
by a Finance Document; 

 “Seller” means CW Schiffahrtsgesellschaft mbH & Co. KG, a
company incorporated in Germany whose registered office is at Fritz-Lau-Platz 1, 25348 Gluckstadt, Germany; 

“Ship” means the 2006-built container vessel of 4,425 TEU currently named “MSC SIENA” and registered in the
name of the Seller under German flag which is to be purchased by the Borrower and upon delivery to be registered in its ownership under an Approved Flag with the same name; 
 “Swap Exposure” means, as at any relevant date the amount certified by the Lender to be the aggregate net amount in Dollars which would be payable by the Borrower to the Lender under (and
calculated in accordance with) section 6(e) (Payments on Early Termination) of the Master Agreement if an Early Termination Date had occurred on the relevant date in relation to all continuing Transactions entered into between the Borrower and the
Lender; 

  
 10 

 “Total Loss” means: 

 

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

 

	 	(b)	any expropriation, confiscation, requisition or acquisition of the Ship, whether for full consideration, a consideration less than her proper value, a nominal
consideration or without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period
not exceeding I year without any right to an extension); 

  

	 	(c)	any arrest, capture, seizure or detention of the Ship (including any hijacking or theft) unless she is within 30 days redelivered to the Borrower’s full control;

 “Total Loss Date” means: 

 

	 	(a)	in the case of an actual loss of the Ship, the date on which it occurred or, if that is unknown, the date when the Ship was last heard of; 

 

	 	(b)	in the case of a constructive, compromised, agreed or arranged total loss of the Ship, the earliest of: 

 

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

  

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

  

	 	(c)	in the case of any other type of total loss, on the date (or the most likely date) on which it appears to the Lender that the event constituting the total loss
occurred; and 

 “Transaction” has the meaning given in the Master Agreement. 

 

	1.2	Construction of certain terms. In this Agreement: 

 “administration notice” means a notice appointing an administrator, a notice of intended appointment and any other notice which is required by law (generally or in the case concerned) to
be filed with the court or given to a person prior to, or in connection with, the appointment of an administrator; 

“approved” means, for the purposes of Clause 12, approved in writing by the Lender; 

“asset” includes every kind of property, asset, interest or right, including any present, future or contingent right to
any revenues or other payment; 
 “company” includes any partnership, joint venture and unincorporated
association; 
 “consent” includes an authorisation, consent, approval, resolution, licence, exemption, filing,
registration, notarisation and legalisation; 
 “contingent liability” means a liability which is not certain to
arise and/or the amount of which remains unascertained; 

  
 11 

 “document” includes a deed; also a letter, fax or telex; 

“excess risks” means the proportion of claims for general average, salvage and salvage charges not recoverable under the
hull and machinery policies in respect of the Ship in consequence of her insured value being less than the value at which the Ship is assessed for the purpose of such claims; 
 “expense” means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable value added or other tax; 

“law” includes any form of delegated legislation, any order or decree, any treaty or international convention and any
regulation or resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council; 
 “legal or administrative action” means any legal proceeding or arbitration and any administrative or regulatory action or investigation; 

“liability” includes every kind of debt or liability (present or future, certain or contingent), whether incurred as
principal or surety or otherwise; 
 “months” shall be construed in accordance with Clause 1.3; 

“obligatory insurances” means all insurances effected, or which the Borrower is obliged to effect, under Clause 12 or any
other provision of this Agreement or another Finance Document; 
 “parent company” has the meaning given in
Clause 1.4; 
 “person” includes any company; any state, political sub-division of a state and local or
municipal authority; and any international organisation; 
 “policy”, in relation to any insurance, includes a
slip, cover note, certificate of entry or other document evidencing the contract of insurance or its terms; 

“protection and indemnity risks” means the usual risks covered by a protection and indemnity association managed in
London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the incorporation in them of clause 6
of the International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the Institute Time Clauses (Hulls) (1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10783) or the Institute Amended Running Down Clause (1/10/71) or any
equivalent provision; 
 “regulation” includes any regulation, rule, official directive, request or guideline
(either having the force of law or compliance with which is reasonable in the ordinary course of business of the party concerned) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or
other authority or organisation; 
 “subsidiary” has the meaning given in Clause 1.4; 

“successor” includes any person who is entitled (by assignment, novation, merger or otherwise) to any other person’s
rights under this Agreement or any other Finance Document (or any interest in those rights) or who, as administrator, liquidator or otherwise, is entitled to exercise those rights; and in particular references to a successor include a person to whom
those rights (or any interest in those rights) are transferred or pass as a result of a merger, division, reconstruction or other reorganisation of it or any other person; 

  
 12 

 “tax” includes any present or future tax, duty, impost, levy or charge of
any kind which is imposed by any state, any political sub-division of a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any connected penalty, interest or fine; and 

“war risks” includes the risk of mines and all risks excluded by clause 29 of the International Hull Clauses (1/11/02 or
1/11/03), clause 24 of the Institute Time Clauses (Hulls) (1/11/95) or clause 23 of the Institute Time Clauses (Hulls) (1/10/83). 
  

	1.3	Meaning of “month”. A period of one or more “months” ends on the day in the relevant calendar month numerically corresponding to the
day of the calendar month on which the period started (“the numerically corresponding day”), but: 

  

	(a)	on the Business Day following the numerically corresponding day if the numerically corresponding day is not a Business Day or, if there is no later Business Day in the
same calendar month, on the Business Day preceding the numerically corresponding day; or 

  

	(b)	on the last Business Day in the relevant calendar month, if the period started on the last Business Day in a calendar month or if the last calendar month of the period
has no numerically corresponding day, 

 and “month” and “monthly” shall be
construed accordingly. 
  

	1.4	Meaning of “subsidiary”. 

 A company (S) is a subsidiary of another company (P) if: 
  

	(a)	a majority of the issued shares in S (or a majority of the issued shares in S which carry unlimited rights to capital and income distributions) are directly owned by P
or are indirectly attributable to P; or 

  

	(b)	P has direct or indirect control over a majority of the voting rights attached to the issued shares of S; or 

 

	(c)	P has the direct or indirect power to appoint or remove a majority of the directors of S; or 

 

	(d)	P otherwise has the direct or indirect power to ensure that the affairs of S are conducted in accordance with the wishes of P, 

and any company of which S is a subsidiary is a parent company of S. 

 

	1.5	General Interpretation. In this Agreement: 

  

	(a)	references to, or to a provision of, a Finance Document or any other document are references to it as amended or supplemented, whether before the date of this Agreement
or otherwise; 

  

	(b)	references to, or to a provision of, any law include any amendment, extension, re-enactment or replacement, whether made before the date of this Agreement or otherwise;

  

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

 

	(d)	Clauses 1.1 to 1.4 and paragraph (a) of this Clause 1.5 apply unless the contrary intention appears. 

  
 13 

	1.6	Headings. In interpreting a Finance Document or any provision of a Finance Document, all clause, sub-clause and other headings in that and any other Finance
Document shall be entirely disregarded. 

  

	2	FACILITY 

  

	2.1	Amount of facility. Subject to the other provisions of this Agreement, the Lender shall make available to the Borrower (in one advance) a loan facility of up to
the lesser of: 

  

	(a)	(i) $32,800,000 and (ii) 55 per cent. of the lesser of (A) the Contract Price of the Ship payable pursuant to the MOA and (B) the Initial
Market Value of the Ship (“Option A”); or 

  

	(b)	(i) $30,000,000 and (ii) 51 per cent. of the lesser of (A) the Contract Price of the Ship payable pursuant to the MOA and (B) the Initial
Market Value of the Ship (“Option B”). 

 The Borrower shall, in the Drawdown Notice specify which
of Option A or Option B shall apply. 
  

	2.2	Purpose of Loan. The Borrower undertakes with the Lender to use the Loan only for the purpose of financing part of the Contract Price of the Ship payable
pursuant to the MOA. 

  

	3	DRAWDOWN 

  

	3.1	Request for advance of Loan. Subject to the following conditions, the Borrower may request the Loan to be advanced by ensuring that the Lender receives a
completed Drawdown Notice not later than 11.00 a.m. (London time) 3 Business Days prior to the intended Drawdown Date. 

  

	3.2	Availability. The conditions referred to in Clause 3.1 are that: 

  

	(a)	the Drawdown Date has to be a Business Day during the Availability Period; and 

 

	(b)	the Loan shall not exceed, if the Borrower exercises Option A, $32,800,000 and, if the Borrower exercises Option B, $30,000,000 and shall be made available in a single
amount in order to finance the relevant percentage of the lesser of (i) the Contract Price of the Ship and (ii) the Initial Market Value of the Ship and any amount of the Loan which is not drawn at the Drawdown Date shall be cancelled and
may not be borrowed by the Borrower at a later date. 

 In this Clause 3.2, “relevant percentage”
means: 
  

	 	(i)	if Option A is exercised, 55 per cent.; and 

  

	 	(ii)	if Option B is exercised, 51 per cent. 

  

	3.3	Drawdown Notice irrevocable. A Drawdown Notice must be signed by a duly authorised signatory of the Borrower; and once served, a Drawdown Notice cannot be
revoked without the prior consent of the Lender. 

  

	3.4	Disbursement of Loan. Subject to the provisions of this Agreement, the Lender shall on the Drawdown Date make the Loan available to the Borrower; and payment to
the Borrower shall be made to the account which the Borrower specifies in the Drawdown Notice. 

  
 14 

	3.5	Disbursement of Loan to third party. The payment by the Lender under Clause 3.4 to the Seller shall constitute the making of the Loan and the Borrower shall
thereupon become indebted, as principal and direct obligor, to the Lender in an amount equal to the Loan. 

  

	4	INTEREST 

  

	4.1	Payment of normal interest. Subject to the provisions of this Agreement, interest on the Loan in respect of each Interest Period shall be paid by the Borrower on
the last day of that Interest Period. 

  

	4.2	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest on the Loan shall be the aggregate of (i) the applicable Margin
and (ii) LIBOR for that Interest Period. 

  

	4.3	Payment of accrued interest. In the case of an Interest Period longer than 3 months, accrued interest shall be paid every 3 months during that Interest Period
and on the last day of that Interest Period. 

  

	4.4	Notification of market disruption. The Lender shall promptly notify the Borrower if for any reason the Lender is unable to obtain Dollars in the London Interbank
Market in order to fund the Loan (or any part of it) during any Interest Period, stating the circumstances which have caused such notice to be given. 

  

	4.5	Suspension of drawdown. If the Lender’s notice under Clause 4.4 is served before the Loan is made, the Lender’s obligation to make the Loan shall be
suspended while the circumstances referred to in the Lender’s notice continue. 

  

	4.6	Negotiation of alternative rate of interest. If the Lender’s notice under Clause 4.4 is served after the Loan is made, the Borrower and the Lender shall use
reasonable endeavours to agree, within 25 Business Days after the date on which the Lender serves its notice under Clause 4.4 (the “Negotiation Period”), an alternative interest rate or (as the case may be) an alternative basis for
the Lender to fund or continue to fund the Loan during the Interest Period concerned. 

  

	4.7	Application of agreed alternative rate of interest. Any alternative interest rate or an alternative basis for funding which is agreed during the Negotiation
Period shall take effect in accordance with the terms agreed. 

  

	4.8	Alternative rate of interest in absence of agreement. If an alternative interest rate or alternative basis is not agreed within the Negotiation Period, and the
relevant circumstances are continuing at the end of the Negotiation Period, then the Lender shall set an interest period and interest rate representing the cost of funding of the Lender in Dollars or in any available currency of the Loan plus the
applicable Margin; and the procedure provided for by this Clause 4.8 shall be repeated if the relevant circumstances are continuing at the end of the interest period so set by the Lender. 

 

	4.9	Notice of prepayment. If the Borrower does not agree with an interest rate set by the Lender under Clause 4.8, the Borrower may give the Lender not less than 15
Business Days’ notice of its intention to prepay at the end of the interest period set by the Lender. 

  

	4.10	Prepayment. A notice under Clause 4.9 shall be irrevocable; and on the last Business Day of the interest period set by the Lender, the Borrower shall prepay
(without premium or penalty) the Loan, together with accrued interest thereon at the applicable rate plus the applicable Margin and, if the prepayment or repayment is not made on the last day of the interest period set by the Lender, any sums
payable under Clause 20.1(b). 

  
 15 

	4.11	Application of prepayment. The provisions of Clause 7 shall apply in relation to the prepayment. 

 

	4.12	Determination of Margin. The Lender shall calculate the Asset Cover Ratio on the Drawdown Date and on the date falling every 3 months thereafter (each a
“Margin Calculation Date”) for the purposes of calculating the applicable Margin and shall advise the Borrower in writing, within 5 Business Days of each Margin Calculation Date, of the applicable Margin which will apply for the
3-month period commencing on the relevant Margin Calculation Date Provided that in respect of each Margin Calculation Date other than the first Margin Calculation Date, the Lender shall only be obliged to advise the Borrower of the Margin
which will apply for the 3-month period commencing on the relevant Margin Calculation Date if that Margin will be different to the Margin which applied immediately prior to the relevant Margin Calculation Date. For the purposes of calculating the
Asset Cover Ratio pursuant to this Clause 4.12, the Market Value of the Ship shall be determined in accordance with Clause 14.3. 

  

	5	INTEREST PERIODS 

  

	5.1	Commencement of Interest Periods. The first Interest Period shall commence on the Drawdown Date and each subsequent Interest Period shall commence on the expiry
of the preceding Interest Period. 

  

	5.2	Duration of normal Interest Periods. Subject to Clauses 5.3 and 5.4, each Interest Period shall be: 

 

	(a)	3, 6, 9 or 12 months as notified by the Borrower to the Lender not later than 11.00 a.m. (Athens time) 3 Business Days before the commencement of the Interest Period;
or 

  

	(b)	3 months, if the Borrower fails to notify the Lender by the time specified in paragraph (a); or 

 

	(c)	such other period as the Lender may agree with the Borrower. 

  

	5.3	Duration of Interest Periods for repayment instalments. In respect of an amount due to be repaid under Clause 7 on a particular Repayment Date, an Interest
Period shall end on that Repayment Date. 

  

	5.4	Non-availability of matching deposits for Interest Period selected. If, after the Borrower has selected an Interest Period longer than 6 months, the Lender
notifies the Borrower by 11.00 a.m. (Athens time) on the second Business Day before the commencement of the Interest Period that it is not satisfied that deposits in Dollars for a period equal to the Interest Period will be available to it in the
London Interbank Market when the Interest Period commences, the Interest Period shall be of 6 months. 

  

	6	DEFAULT INTEREST 

  

	6.1	Payment of default interest on overdue amounts. The Borrower shall pay interest in accordance with the following provisions of this Clause 6 on any amount
payable by the Borrower under any Finance Document which the Lender does not receive on or before the relevant date, that is: 

  

	(a)	the date on which the Finance Documents provide that such amount is due for payment; or 

 

	(b)	if a Finance Document provides that such amount is payable on demand, the date on which the demand is served; or 

  
 16 

	(c)	if such amount has become immediately due and payable under Clause 18.4, the date on which it became immediately due and payable. 

 

	6.2	Default rate of interest. Interest shall accrue on an overdue amount from (and including) the relevant date until the date of actual payment (as well after as
before judgment) at the rate per annum determined by the Lender to be 2 per cent. above: 

  

	(a)	in the case of an overdue amount of principal, the higher of the rates set out at Clauses 6.3(a) and (b); or 

 

	(b)	in the case of any other overdue amount, the rate set out at Clause 6.3(b). 

 

	6.3	Calculation of default rate of interest. The rates referred to in Clause 6.2 are: 

 

	(a)	the rate applicable to the overdue principal amount immediately prior to the relevant date (but only for any unexpired part of any then current Interest Period);

  

	(b)	the Margin applicable to the overdue amount plus, in respect of successive periods of any duration (including at call) up to 6 months which the Lender may select from
time to time: 

  

	 	(i)	LIBOR; or 

  

	 	(ii)	if the Lender determines that Dollar deposits for any such period are not being made available to it by leading banks in the London Interbank Market in the ordinary
course of business, a rate from time to time determined by the Lender by reference to the cost of funds to it from such other sources as the Lender may from time to time reasonably determine. 

 

	6.4	Notification of interest periods and default rates. The Lender shall promptly notify the Borrower of each interest rate determined by it under Clause 6.3 and of
each period selected by it for the purposes of paragraph (b) of that Clause; but this shall not be taken to imply that the Borrower is liable to pay such interest only with effect from the date of the Lender’s notification.

  

	6.5	Payment of accrued default interest. Subject to the other provisions of this Agreement, any interest due under this Clause shall be paid on the last day of the
period by reference to which it was determined. 

  

	6.6	Compounding of default interest. Any such interest which is not paid at the end of the period by reference to which it was determined shall thereupon be
compounded. 

  

	6.7	Application to Master Agreement. For the avoidance of doubt, this Clause 6 does not apply to any amount payable under the Master Agreement in respect of any
continuing Transaction as to which section 2(e) (Default Interest, Other Amounts) of the Master Agreement shall apply. 

  

	7	REPAYMENT AND PREPAYMENT 

  

	7.1	Amount of repayment instalments. The Borrower shall repay the Loan by: 

 

	(a)	if Option A is exercised: 

  

	 	(i)	24 consecutive three-monthly instalments in the amount of: 

  

	 	(A)	in the case of the first to tenth (inclusive) instalments, $1,030,000 each; and 

  
 17 

	 	(B)	in the case of the eleventh to twenty-fourth (inclusive) instalments, $750,000 each; and 

 

	 	(ii)	a balloon instalment in the amount of $12,000,000; or 

  

	(b)	if Option B is exercised: 

  

	 	(i)	24 equal consecutive three-monthly instalments in the amount of $750,000 each; and 

 

	 	(ii)	a balloon instalment in the amount of $12,000,000, 

 Provided that if the amount of the Loan drawn down is less than $32,800,000 (if Option A is exercised) or $30,000,000 (if Option B is exercised), each applicable repayment instalment and the
applicable balloon instalment will be reduced pro rata by an amount in aggregate equal to such shortfall. 
  

	7.2	Repayment Dates. The first repayment instalment shall be repaid on the date falling 3 months after the Drawdown Date and the last repayment instalment, together
with the applicable balloon instalment, on the earlier of (i) the date falling on the sixth anniversary of the Drawdown Date and (ii) 24 June 2017. 

 

	7.3	Final Repayment Date. On the final Repayment Date, the Borrower shall additionally pay to the Lender all other sums then accrued or owing under any Finance
Document. 

  

	7.4	Voluntary prepayment. Subject to the following conditions, the Borrower may prepay the whole or any part of the Loan on the last day of an Interest Period.

  

	7.5	Conditions for voluntary prepayment. The conditions referred to in Clause 7.4 are that: 

 

	(a)	a partial prepayment shall be $750,000 or a higher integral multiple thereof $750,000; 

 

	(b)	the Lender has received from the Borrower at least 10 days’ prior written notice specifying the amount to be prepaid and the date on which the prepayment is to be
made(such date shall be the last day of an Interest Period); and 

  

	(c)	the Borrower has provided evidence satisfactory to the Lender that any consent required by the Borrower in connection with the prepayment has been obtained and remains
in force, and that any requirement relevant to this Agreement which affects the Borrower or any Security Party has been complied with. 

  

	7.6	Effect of notice of prepayment. A prepayment notice may not be withdrawn or amended without the consent of the Lender and the amount specified in the prepayment
notice shall become due and payable by the Borrower on the date for prepayment specified in the prepayment notice. 

  

	7.7	Mandatory prepayment. The Borrower shall be obliged to prepay the whole of the Loan if the Ship is sold or becomes a Total Loss: 

 

	(a)	in the case of a sale, on or before the date on which the sale is completed by delivery of the Ship to the buyer; or 

 

	(b)	in the case of a Total Loss, on the earlier of the date falling 120 days after the Total Loss Date and the date of receipt by the Lender of the proceeds of insurance
relating to such Total Loss. 

  
 18 

	7.8	Amounts payable on prepayment. A prepayment shall be made together with accrued interest (and any other amount payable under Clause 20 or otherwise) in respect
of the amount prepaid and, if the prepayment is not made on the last day of an Interest Period together with any sums payable under Clause 20.1(b) but without premium or penalty. 

 

	7.9	Application of partial prepayment. Each partial prepayment shall, unless otherwise agreed by the Lender, be applied first against the balloon instalment
specified in Clause 7.1(a)(ii) or, as the case may be, 7.1(b)(ii) and thereafter against the then outstanding repayment instalments specified in Clauses 7.1(a)(i) or, as the case may be, 7.1(b)(i), in inverse order of maturity.

  

	7.10	No reborrowing. No amount prepaid may be reborrowed. 

  

	7.11	Unwinding of Transactions. On or prior to any repayment or prepayment under this Clause 7 or any other provision of this Agreement, the Borrower shall wholly or
partially reverse, offset, unwind or otherwise terminate one or more of the continuing Transactions so that the notional principal amount of the continuing Transactions thereafter remaining does not and will not in the future (taking into account
the scheduled amortisation) exceed the amount of the Loan as reducing from time to time thereafter pursuant to Clause 7.1. 

  

	8	CONDITIONS PRECEDENT 

  

	8.1	Documents, fees and no default. The Lender’s obligation to make the Loan is subject to the following conditions precedent: 

 

	(a)	that on or before the date of this Agreement, the Lender receives: 

  

	 	(i)	the documents described in Part A of Schedule 2 in form and substance satisfactory to it and its lawyers; and 

 

	 	(ii)	the arrangement fee referred to in Clause 19.1; 

  

	(b)	that, on or before the service of the Drawdown Notice, the Lender receives the documents described in Part B of Schedule 2 in form and substance satisfactory to it and
its lawyers; 

  

	(c)	that, on or before the Drawdown Date, the Lender receives all accrued commitment fee payable pursuant to Clause 19.1(b); 

 

	(d)	that both at the date of the Drawdown Notice and at the Drawdown Date: 

  

	 	(i)	no Event of Default or Potential Event of Default has occurred and is continuing or would result from the borrowing of the Loan; 

 

	 	(ii)	the representations and warranties in Clause 9.1 and those of the Borrower or any other Security Party which are set out in the other Finance Documents would be true
and not misleading if repeated on each of those dates with reference to the circumstances then existing; and 

  

	 	(iii)	none of the circumstances contemplated by Clause 4.4 has occurred and is continuing; and 

 

	 	(iv)	there has been no material adverse change in the financial position, state of affairs or prospects of the Borrower or the Guarantor in the light of which the Lender
considers that there is a significant risk that the Borrower or the Guarantor will later become, unable to discharge its liabilities under the Finance Documents to which it is a party as they fall due; and 

  
 19 

	(e)	that, if the ratio set out in Clause 14.1 were applied immediately following the making of the Loan, the Borrower would not be obliged to provide additional security or
prepay part of the Loan under that Clause; 

  

	(f)	that the Lender has received, and found to be acceptable to it, any further opinions, consents, agreements and documents in connection with the Finance Documents which
the Lender may reasonably request by notice to the Borrower prior to the Drawdown Date. 

  

	8.2	Waiver of conditions precedent. If the Lender, at its discretion, permits the Loan to be borrowed before certain of the conditions referred to in Clause 8.1 are
satisfied, the Borrower shall ensure that those conditions are satisfied within 5 Business Days after the Drawdown Date (or such longer period as the Lender may specify). 

 

	9	REPRESENTATIONS AND WARRANTIES 

  

	9.1	General. The Borrower represents and warrants (which representations and warranties shall survive the execution of this Agreement and shall be deemed repeated
throughout the Security Period on the last day of each Interest Period with respect to the facts and circumstances then existing) to the Lender as follows. 

 

	9.2	Status. The Borrower is duly incorporated and validly existing and in good standing under the laws of the Republic of Liberia. 

 

	9.3	Share capital and ownership. The Borrower has an authorised share capital divided into 500 bearer and/or registered shares of $0.001 each, all of which shares
have been issued in registered form fully paid up and the legal title and beneficial ownership of all those shares is held, free of any Security Interest or other claim by the Guarantor. 

 

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

  

	(a)	to enter into the MOA, to purchase and pay for the Ship under the MOA and register the Ship in its name under an Approved Flag; 

 

	(b)	to execute the Finance Documents to which the Borrower is a party and the Master Agreement; and 

 

	(c)	to borrow under this Agreement, to enter into Transactions under the Master Agreement and to make all the payments contemplated by, and to comply with, those Finance
Documents to which it is a party and the Master Agreement. 

  

	9.5	Consents in force. All the consents referred to in Clause 9.4 remain in force and nothing has occurred which makes any of them liable to revocation.

  

	9.6	Legal validity; effective Security Interests. The Finance Documents to which the Borrower is a party and the Master Agreement, do now or, as the case may be,
will, upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents): 

  

	(a)	constitute the Borrower’s legal, valid and binding obligations enforceable against the Borrower in accordance with their respective terms; and

  

	(b)	create legal, valid and binding Security Interests enforceable in accordance with their respective terms over all the assets to which they, by their terms, relate,

 subject to any relevant insolvency laws affecting creditors’ rights generally. 

  
 20 

	9.7	No third party Security Interests. Without limiting the generality of Clause 9.6, at the time of the execution and delivery of each Finance Document to which it
is a party and the Master Agreement: 

  

	(a)	the Borrower will have the right to create all the Security Interests which that Finance Document purports to create; and 

 

	(b)	no third party will have any Security Interest (except for Permitted Security Interests) or any other interest, right or claim over, in or in relation to any asset to
which any such Security Interest, by its terms, relates. 

  

	9.8	No conflicts. The execution by the Borrower of each Finance Document to which it is a party and the Master Agreement, and the borrowing by the Borrower of the
Loan, and its compliance with each Finance Document to which it is a party and the Master Agreement will not involve or lead to a contravention of: 

  

	(a)	any law or regulation; or 

  

	(b)	the constitutional documents of the Borrower; or 

  

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

 

	9.9	No withholding taxes. All payments which the Borrower is liable to make under the Finance Documents may be made without deduction or withholding for or on
account of any tax payable under any law of any Pertinent Jurisdiction. 

  

	9.10	No default. No Event of Default or Potential Event of Default has occurred. 

 

	9.11	Information. All information which has been provided in writing by or on behalf of the Borrower or any Security Party to the Lender in connection with any
Finance Document satisfied the requirements of Clause 10.5; all audited and unaudited accounts which have been so provided satisfied the requirements of Clause 10.7; and there has been no material adverse change in the financial position or state of
affairs of the Borrower from that disclosed in the latest of those accounts. 

  

	9.12	No litigation. No legal or administrative action involving the Borrower (including action relating to any alleged or actual breach of the ISM Code or the ISPS
Code) has been commenced or taken or, to the Borrower’s knowledge, is likely to be commenced or taken. 

  

	9.13	Validity and completeness of the MOA and Approved Charter. 

  

	(a)	the copies of the MOA and the Approved Charter delivered to the Lender before the date of this Agreement are true and complete copies; 

 

	(b)	each of the MOA and the Approved Charter constitute valid, binding and enforceable obligations of the Seller, the Approved Charterer and the Borrower in accordance with
their respective terms; and 

  

	(c)	other than those amendments or additions to the MOA and the Approved Charter disclosed to the Lender before the date of this Agreement, no amendments or additions to
the MOA and the Approved Charter have been agreed nor has the Borrower or the Approved Charterer or the Seller waived any of their respective rights under the MOA and the Approved Charter. 

  
 21 

	9.14	No rebates etc. There is no agreement or understanding to allow or pay any rebate, premium, commission, discount or other benefit or payment (howsoever
described) to the Borrower, the Seller or any third party in connection with the purchase by the Borrower of the Ship, other than as disclosed to the Lender in writing on or prior to the date of this Agreement. 

 

	9.15	Compliance with certain undertakings. At the date of this Agreement, the Borrower is in compliance with Clauses 10.2, 10.4, 10.9 and 10.13.

  

	9.16	Taxes paid. The Borrower has paid all taxes applicable to, or imposed on or in relation to the Borrower, its business or the Ship. 

 

	9.17	ISM Code and ISPS Code compliance. All requirements of the ISM Code and the ISPS Code as they relate to the Borrower, the Approved Manager and the Ship have been
complied with. 

  

	9.18	No money laundering. Without prejudice to the generality of Clause 2.2, in relation to the borrowing by the Borrower of the Loan, the performance and discharge
of its obligations and liabilities under the Finance Documents, and the transactions and other arrangements effected or contemplated by the Finance Documents to which the Borrower is a party, the Borrower confirms (i) that it is acting for its
own account, (ii) that it will use the proceeds of the Loan for its own benefit, under its full responsibility and exclusively for the purposes specified in this Agreement and (iii) that the foregoing will not involve or lead to
contravention of any law, official requirement or other regulatory measure or procedure implemented to combat “money laundering” (as defined in Article 1 of the Directive 2005/60/EC of the European Parliament and of the Council).

  

	9.19	Sanctions. As regards Sanctions: 

  

	(a)	the Borrower is not a Prohibited Person nor is owned or controlled by, or acting directly or indirectly on behalf of or for the benefit of, a Prohibited Person and the
Borrower does not own or control a Prohibited Person; and 

  

	(b)	no proceeds of the Loan shall be made available, directly or indirectly, to, or for the benefit of, a Prohibited Person or otherwise shall be, directly or indirectly,
applied in a manner or for a purpose prohibited by any Sanctions. 

  

	10	GENERAL UNDERTAKINGS 

  

	10.1	General. The Borrower undertakes with the Lender to comply with the following provisions of this Clause 10 at all times during the Security Period, except as the
Lender may otherwise permit. 

  

	10.2	Title and negative pledge. The Borrower will: 

  

	(a)	hold the legal title to, and own the entire beneficial interest in the Ship, the Insurances and Earnings, free from all Security Interests and other interests and
rights of every kind, except for those created by the Finance Documents and the effect of assignments contained in the Finance Documents and except for Permitted Security Interests; and 

 

	(b)	not create or permit to arise any Security Interest (except for Permitted Security Interests) over any other asset, present or future other than in the normal course of
its business of acquiring, financing and operating vessels. 

  

	10.3	No disposal of assets. The Borrower will not transfer, lease or otherwise dispose of: 

 

	(a)	all or a substantial part of its assets, whether by one transaction or a number of transactions, whether related or not; or 

  
 22 

	(b)	any debt payable to it or any other right (present, future or contingent right) to receive a payment, including any right to damages or compensation.

  

	10.4	No other liabilities or obligations to be incurred. The Borrower will not incur any liability or obligation except liabilities and obligations:

  

	(a)	under the MOA and the Finance Documents to which it is a party; 

  

	(b)	under the Master Agreement (but in such case, only in connection with Transactions); and 

 

	(c)	incurred in the normal course of its business of trading, chartering, operating, maintaining and repairing the Ship. 

 

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

  

	10.6	Provision of financial statements. The Borrower will send or, procure there is sent, to the Lender: 

 

	(a)	as soon as possible, but in no event later than 60 days after the end of each 3-month period ending on 31 March, 30 June, 30 September and
31 December in each Financial Year of the Guarantor (but not later than a Dividend Declaration Date) the quarterly unaudited consolidated accounts of the Group for the preceding 3-month period certified as to their correctness by the chief
financial officer of the Guarantor (commencing with the 3-month period ending 30 September 2011); 

  

	(b)	as soon as possible, but in no event later than 90 days after the end of each Financial Year of the Guarantor, the audited consolidated accounts of the Group for that
Financial Year (commencing with the Financial Year ending 31 December 2011); and 

  

	(c)	as soon as possible, but in no event later than 90 days after the end of each Financial Year of the Borrower, the unaudited annual accounts of the Borrower for that
Financial Year certified as to their correctness by a director or officer of the Borrower (commencing with the Financial Year ending 31 December 2011). 

 

	10.7	Form of financial statements. All accounts (audited and unaudited) delivered under Clause 10.6 will: 

 

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

 

	(b)	give a true and fair view of the state of affairs of the Borrower or, as the case may be, the Group at the date of those accounts and of its profit for the period to
which those accounts relate; and 

  

	(c)	fully disclose or provide for all significant liabilities of the Borrower or, as the case may be, the Group. 

 

	10.8	Shareholder and creditor notices. The Borrower will send the Lender, at the same time as they are despatched, copies of all communications which are despatched
to the Borrower’s shareholders or creditors or any class of them. 

  
 23 

	10.9	Consents. The Borrower will maintain in force and promptly obtain or renew, and will promptly send certified copies to the Lender of, all consents required:

  

	(a)	for the Borrower to perform its obligations under any Finance Document to which it is a party and the Master Agreement; 

 

	(b)	for the validity or enforceability of any Finance Document to which it is a party and the Master Agreement; and 

 

	(c)	for the Borrower to continue to own and operate the Ship, 

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

	10.10	Maintenance of Security Interests. The Borrower will: 

  

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

  

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

  

	10.11	Notification of litigation. The Borrower will provide the Lender with details of any legal or administrative action involving the Borrower, the Guarantor, the
Approved Manager or the Ship, the Earnings or the Insurances as soon as such action is instituted or it becomes apparent to the Borrower that it is likely to be instituted, unless it is clear that the legal or administrative action cannot be
considered material in the context of any Finance Document. 

  

	10.12	No amendment to MOA. The Borrower will not agree to any amendment or supplement to, or waive or fail to enforce, the MOA or any of its provisions.

  

	10.13	Principal place of business. The Borrower will maintain its place of business, and keep its corporate documents and records, at the address stated at Clause
27.2(a); and the Borrower will not establish, nor do anything as a result of which it would be deemed to have, a place of business in any country other than the Marshall Islands and Greece. 

 

	10.14	Confirmation of no default. The Borrower will, within 2 Business Days after service by the Lender of a written request, serve on the Lender a notice which is
signed by a director of the Borrower and which: 

  

	(a)	states that no Event of Default or Potential Event of Default has occurred; or 

 

	(b)	states that no Event of Default or Potential Event of Default has occurred, except for a specified event or matter, of which all material details are given.

 The Lender may serve requests under this Clause 10.14 from time to time; this Clause 10.14 does not affect the
Borrower’s obligations under Clause 10.15. 
  

	10.15	Notification of default. The Borrower will notify the Lender as soon as the Borrower becomes aware of: 

 

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

  
 24 

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

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

 

	10.16	Provision of further information. The Borrower will, as soon as practicable after receiving the request, provide the Lender with any additional financial or
other information relating: 

  

	(a)	to the Borrower, the Group, the Ship, the other Fleet Vessels, their Insurances or their Earnings (including, but not limited to, any sales or purchases of any Fleet
Vessels, the incurrence of Financial Indebtedness by members of the Group, the refinancing or restructuring of any loan or credit facilities to which any members of the Group are a party and details of the employment of the Fleet Vessels) as the
Lender may reasonably require; or 

  

	(b)	to any other matter relevant to, or to any provision of, a Finance Document, 

 

	  	which may be requested by the Lender at any time. 

  

	10.17	“Know your customer” checks. If: 

  

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

  

	(b)	any change in the status of the Borrower, the Guarantor or the Approved Manager after the date of this Agreement; or 

 

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

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

	10.18	Provision of copies and translation of documents. If the Lender so requires, the Borrower will supply the Lender with a certified English translation in respect
of any of those documents referred to above, such translation to be prepared by a translator approved by the Lender. 

  

	10.19	Hedging of interest rate risks - right of first refusal. The Borrower hereby grants to the Lender a right of first refusal for the purpose of hedging any part of
the interest rate risk under this Agreement throughout the Security Period by means of Transactions to be entered into pursuant to the Master Agreement. 

  

	10.20	No subordination. The Borrower shall ensure at all times that the Loan shall not be subordinated in priority to any present or future indebtedness of the
Borrower. 

  
 25 

	11	CORPORATE UNDERTAKINGS 

  

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

  

	11.2	Maintenance of status. The Borrower will maintain its separate corporate existence and remain in good standing under the laws of the Republic of Liberia.

  

	11.3	Negative undertakings. The Borrower will not: 

  

	(a)	change the nature of its business; or 

  

	(b)	provide any form of credit or financial assistance to: 

  

	 	(i)	a person who is directly or indirectly interested in the Borrower’s share or loan capital; or 

 

	 	(ii)	any company in or with which such a person is directly or indirectly interested or connected, 

or enter into any transaction with or involving such a person or company on terms which are, in any respect, less favourable to the
Borrower than those which it could obtain in a bargain made at arms’ length; 
  

	(c)	open or maintain any account with any bank or financial institution except accounts with the Lender for the purposes of the Finance Documents; 

 

	(d)	issue, allot or grant any person a right to any shares in its capital or repurchase or reduce its issued share capital; 

 

	(e)	acquire any shares or other securities other than US or UK Treasury bills and certificates of deposit issued by major North American or European banks, or enter into
any transaction in a derivative other than Transactions; or 

  

	(f)	enter into any form of amalgamation, merger or de-merger or any form of reconstruction or reorganisation; or 

 

	(g)	the shares of the Guarantor cease to be listed on the New York Stock Exchange; or 

 

	(h)	acquire any vessel other than the Ship. 

  

	12	INSURANCE 

  

	12.1	General. The Borrower undertakes with the Lender to comply with the following provisions of this Clause 12 at all times during the Security Period (following the
Delivery Date) except as the Lender may otherwise permit. 

  

	12.2	Maintenance of obligatory insurances. The Borrower shall keep the Ship insured at the expense of the Borrower against: 

 

	(a)	fire and usual marine risks (including hull and machinery and excess risks); 

 

	(b)	war risks; 

  

	(c)	protection and indemnity risks; and 

  
 26 

	(d)	any other risks against which the Lender considers, having regard to practices and other circumstances prevailing at the relevant time, it would in the opinion of the
Lender be reasonable for the Borrower to insure and which are specified by the Lender by notice to the Borrower. 

  

	12.3	Terms of obligatory insurances. The Borrower shall effect such insurances: 

 

	(a)	in Dollars; 

  

	(b)	in the case of fire and usual marine risks and war risks, in such amounts as shall from time to time be approved by the Lender but in any event in an amount not less
than the greater of (i) 130 per cent. of the aggregate of the Loan and the Swap Exposure and (ii) the Market Value of the Ship; and 

  

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

 

	(d)	in relation to protection and indemnity risks in respect of the Ship’s full value and tonnage; 

 

	(e)	on such terms as shall from time to time be approved in writing by the Lender (including, without limitation, a blocking and trapping clause); and

  

	(f)	through approved brokers and with approved insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in approved war
risks and protection and indemnity risks associations. 

  

	12.4	Further protections for the Lender. In addition to the terms set out in Clause 12.3, the Borrower shall procure that the obligatory insurances shall:

  

	(a)	subject always to paragraph (b), and with the exception of the Approved Manager, name the Borrower as the sole named assured unless the interest of every other named
assured is limited: 

  

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

 

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

 

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

  

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

 and every other named assured has undertaken in
writing to the Lender (in such form as it requires) that any deductible shall be apportioned between the Borrower and every other named assured in proportion to the gross claims made or paid by each of them and that it shall do all things necessary
and provide all documents, evidence and information to enable the Lender to collect or recover any moneys which at any time become payable in respect of the obligatory insurances; 

  
 27 

	(b)	in the case of any obligatory insurances against any risks other than protection and indemnity risks, and whenever the Lender requires, name (or be amended to name) the
Lender as additional named assured for its rights and interests, warranted no operational interest and with full waiver of rights of subrogation against the Lender, but without the Lender thereby being liable to pay (but having the right to pay)
premiums, calls or other assessments in respect of such insurance; 

  

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

 

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

  

	(e)	provide that such obligatory insurances shall be primary without right of contribution from other insurances which may be carried by the Lender; and

  

	(f)	provide that the Lender may make proof of loss if the Borrower fails to do so. 

 

	12.5	Renewal of obligatory insurances. The Borrower shall: 

  

	(a)	at least 7 days before the expiry of any obligatory insurance: 

  

	 	(i)	notify the Lender of the brokers (or other insurers) and any protection and indemnity or war risks association through or with whom the Borrower proposes to renew that
insurance and of the proposed terms of renewal; and 

  

	 	(ii)	obtain the Lender’s approval to the matters referred to in paragraph (i); 

 

	(b)	at least 7 days before the expiry of any obligatory insurance, renew that obligatory insurance in accordance with the Lender’s approval pursuant to paragraph (a);
and 

  

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

  

	12.6	Copies of policies; letters of undertaking. The Borrower shall ensure that all approved brokers provide the Lender with copies of all policies relating to the
obligatory insurances which they effect or renew and of a letter or letters of undertaking in a form required by the Lender and including undertakings by the approved brokers that: 

 

	(a)	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment complying with the provisions of Clause 12.4;

  

	(b)	they will hold such policies, and the benefit of such insurances, to the order of the Lender in accordance with the said loss payable clause; 

 

	(c)	they will advise the Lender immediately of any material change to the terms of the obligatory insurances; 

 

	(d)	they will notify the Lender, not less than 7 days before the expiry of the obligatory insurances, in the event of their not having received notice of renewal
instructions from the Borrower and, in the event of their receiving instructions to renew, they will promptly notify the Lender of the terms of the instructions; and 

 

	(e)	 they will not set off against any sum recoverable in respect of a claim relating to the Ship under such obligatory insurances any premiums or other
amounts due to them or any 

  
 28 

	 	
other person whether in respect of the Ship or otherwise, they waive any lien on the policies, or any sums received under them, which they might have in respect of such premiums or other amounts,
and they will not cancel such obligatory insurances by reason of non-payment of such premiums or other amounts, and will arrange for a separate policy to be issued in respect of the Ship forthwith upon being so requested by the Lender.

  

	12.7	Copies of certificates of entry. The Borrower shall ensure that any protection and indemnity and/or war risks associations in which the Ship is entered provides
the Lender with: 

  

	(a)	a certified copy of the certificate of entry for the Ship; 

  

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

 

	(c)	where required to be issued under the terms of insurance/indemnity provided by the Borrower’s protection and indemnity association, a certified copy of each United
States of America voyage quarterly declaration (or other similar document or documents) made by the Borrower in relation to the Ship in accordance with the requirements of such protection and indemnity association; and 

 

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

  

	12.8	Deposit of original policies. The Borrower shall ensure that all policies relating to obligatory insurances are deposited with the approved brokers through which
the insurances are effected or renewed. 

  

	12.9	Payment of premiums. The Borrower shall punctually pay all premiums or other sums payable in respect of the obligatory insurances and produce all relevant
receipts when so required by the Lender. 

  

	12.10	Guarantees. The Borrower shall ensure that any guarantees required by a protection and indemnity or war risks association are promptly issued and remain in full
force and effect. 

  

	12.11	Restrictions on employment. The Borrower shall not employ the Ship, nor permit her to be employed, outside the cover provided by any obligatory insurance.

  

	12.12	Compliance with terms of insurances. The Borrower shall neither do nor omit to do (nor permit to be done or not to be done) any act or thing which would or might
render any obligatory insurance invalid, void, voidable or unenforceable or render any sum payable thereunder repayable in whole or in part; and, in particular: 

 

	(a)	the Borrower shall take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without
limiting the obligation contained in Clause 12.6(c)) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Lender has not given its prior approval; 

 

	(b)	the Borrower shall not make any changes relating to the classification or classification society or manager or operator of the Ship approved by the underwriters of the
obligatory insurances; 

  

	(c)	the Borrower shall make all quarterly or other voyage declarations which may be required by the protection and indemnity risks association in which the Ship is entered
to maintain cover for trading to the United States of America and Exclusive Economic Zone (as defined in the United States Oil Pollution Act 1990 or any other applicable legislation); and 

  
 29 

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

  

	12.13	Alteration to terms of insurances. The Borrower shall neither make or agree to any alteration to the terms of any obligatory insurance nor waive any right
relating to any obligatory insurance without the prior written consent of the Lender, which consent is not to be unreasonably withheld. 

  

	12.14	Settlement of claims. The Borrower shall not settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for a Major Casualty, and
shall do all things necessary and provide all documents, evidence and information available to it to enable the Lender to collect or recover any moneys which at any time become payable in respect of the obligatory insurances.

  

	12.15	Provision of copies of communications. The Borrower shall provide the Lender, at the time of each such communication, copies of all written communications
between the Borrower and: 

  

	(a)	the approved brokers; and 

  

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

  

	(c)	the approved insurance companies and/or underwriters, which relate directly or indirectly to: 

 

	 	(i)	the Borrower’s obligations relating to the obligatory insurances including, without limitation, all requisite declarations and payments of additional premiums or
calls; and 

  

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

  

	12.16	Provision of information. In addition, the Borrower shall promptly provide the Lender (or any persons which it may designate) with any information which the
Lender (or any such designated person) requests for the purpose of: 

  

	(a)	obtaining or preparing any report from an independent marine insurance broker as to the adequacy of the obligatory insurances effected or proposed to be effected;
and/or 

  

	(b)	effecting, maintaining or renewing any such insurances as are referred to in Clause 12.17 below or dealing with or considering any matters relating to any such
insurances, 

 and the Borrower shall, forthwith upon demand, indemnify the Lender in respect of all fees and other
expenses incurred by or for the account of the Lender in connection with any such report as is referred to in paragraph (a). 

  
 30 

	12.17	Mortgagee’s interest and additional perils insurances. The Lender shall maintain and renew all or any of the following insurances on such terms, conditions,
through such insurers and generally in such manner as the Lender may from time to time consider appropriate: 

  

	(a)	a mortgagee’s interest marine insurance in an amount equal to at least 120 per cent. of the Loan providing for the indemnification of the Lender for any
losses under or in connection with any Finance Document which directly or indirectly result from loss of or damage to the Ship or a liability of the Ship or of the Borrower, being a loss or damage which is prima facie covered by an obligatory
insurance but in respect of which there is a non-payment (or reduced payment) by the underwriters by reason of, or on the basis of an allegation concerning: 

 

	 	(i)	any act or omission on the part of the Borrower, of any operator, charterer, manager or sub-manager of the Ship or of any officer, employee or agent of the Borrower or
of any such person, including any breach of warranty or condition or any non-disclosure relating to such obligatory insurance; 

  

	 	(ii)	any act or omission, whether deliberate, negligent or accidental, or any knowledge or privity of the Borrower, any other person referred to in paragraph (i) above,
or of any officer, employee or agent of the Borrower or of such a person, including the casting away or damaging of the Ship and/or the Ship being unseaworthy; and/or 

 

	 	(iii)	any other matter capable of being insured against under a mortgagee’s interest marine insurance policy whether or not similar to the foregoing; and

  

	(b)	a mortgagee’s interest additional perils policy in an amount equal to at least 110 per cent. of the Loan providing for the indemnification of the Lender
against, among other things, any possible losses or other consequences of any Environmental Claim, including the risk of expropriation, arrest or any form of detention of the Ship, or the imposition of any Security Interest over the Ship and/or any
other matter capable of being insured against under a mortgagee’s interest additional perils policy; 

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

	12.18	Review of insurance requirements. The Lender shall be entitled to review the requirements of this Clause 12 from time to time in order to take account of any
changes in circumstances after the date of this Agreement which are, in the opinion of the Lender, significant and capable of affecting the Borrower or the Ship and its or their insurance (including, without limitation, changes in the availability
or the cost of insurance coverage or the risks to which the Borrower may be subject), and may appoint insurance consultants in relation to this review at the cost of the Borrower. 

 

	12.19	Modification of insurance requirements. The Lender shall notify the Borrower of any proposed modification under Clause 12.18 to the requirements of this Clause
12 which the Lender reasonably consider appropriate in the circumstances, and such modification shall take effect on and from the date it is notified in writing to the Borrower as an amendment to this Clause 12 and shall bind the Borrower
accordingly. 

  

	12.20	Compliance with mortgagee’s instructions. The Lender shall be entitled (without prejudice to or limitation of any other rights which it may have or acquire
under any Finance Document) to require the Ship to remain at any safe port or to proceed to and remain at any safe port designated by the Lender until the Borrower implements any amendments to the terms of the obligatory insurances and any
operational changes required as a result of a notice served under Clause 12.19. 

  
 31 

	13	SHIP COVENANTS 

  

	13.1	General. The Borrower also undertakes with the Lender to comply with the following provisions of this Clause 13 at all times during the Security Period (after
the Delivery Date) except as the Lender may otherwise permit in writing. 

  

	13.2	Ship’s name and registration. The Borrower shall keep the Ship registered in its name under an Approved Flag; shall not do, omit to do or allow to be done
anything as a result of which such registration might be cancelled or imperilled; and shall not change the name or port of registry of the Ship without the consent of the Lender. 

 

	13.3	Repair and classification. The Borrower shall keep the Ship in a good and safe condition and state of repair: 

 

	(a)	consistent with first-class ship ownership and management practice; 

  

	(b)	so as to maintain the highest class free of overdue recommendations and conditions with a classification society which is a member of IACS and acceptable to the Lender;
and 

  

	(c)	so as to comply with all laws and regulations applicable to vessels registered at ports in the applicable Approved Flag State or to vessels trading to any jurisdiction
to which the Ship may trade from time to time, including but not limited to the ISM Code, the ISPS Code, the ISM Code Documentation, the ISPS Code and the ISPS Code Documentation. 

 

	13.4	Classification society undertaking. The Borrower shall instruct the classification society referred to in Clause 13.3 (and procure that the classification
society undertakes with the Lender): 

  

	(a)	to send to the Lender, following receipt of a written request from the Lender, certified true copies of all original class records and any other related records held by
the classification society in relation to the Ship; 

  

	(b)	to allow the Lender (or its agents), at any time and from time to time, to inspect the original class and related records of the Borrower and the Ship at the offices of
the classification society and to take copies of them; 

  

	(c)	to notify the Lender immediately in writing if the classification society: 

 

	 	(i)	receives notification from the Borrower or any other person that the Ship’s classification society is to be changed; or 

 

	 	(ii)	becomes aware of any facts or matters which may result in or have resulted in a change, suspension, discontinuance, withdrawal or expiry of the Ship’s class under
the rules or terms and conditions of the Borrower’s or the Ship’s membership of the classification society; and 

  

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

  

	 	(i)	to confirm that the Borrower is not in default of any of its contractual obligations or liabilities to the classification society and, without limiting the foregoing,
that it has paid in full all fees or other charges due and payable to the classification society; or 

  

	 	(ii)	if the Borrower is in default of any of its contractual obligations or liabilities to the classification society, to specify to the Lender in reasonable detail the
facts and circumstances of such default, the consequences thereof, and any remedy period agreed or allowed by the classification society. 

  
 32 

	13.5	Modification. The Borrower shall not make any modification or repairs to, or replacement of, the Ship or equipment installed on the Ship which would or might
materially alter the structure, type or performance characteristics of the Ship or materially reduce her value. 

  

	13.6	Removal of parts. The Borrower shall not remove any material part of the Ship, or any item of equipment installed on the Ship, unless the part or item so removed
is forthwith replaced by a suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest or any right in favour of any person other than the Lender and becomes on
installation on the Ship the property of the Borrower and subject to the security constituted by the Mortgage Provided that the Borrower may install equipment owned by a third party if the equipment can be removed without any risk of damage to the
Ship. 

  

	13.7	Surveys. The Borrower shall submit the Ship regularly to all periodical or other surveys which may be required for classification purposes and, if so required by
the Lender provide the Lender, with copies of all survey reports. 

  

	13.8	Inspection. The Borrower shall permit the Lender (by surveyors or other persons appointed by it for that purpose) to board the Ship at all reasonable times to
inspect her condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections. Provided that unless an Event of Default has occurred and is continuing, the Borrower will not have
to pay for more than one inspection of the Ship in each calendar year. 

  

	13.9	Prevention of and release from arrest. The Borrower shall as promptly as possible discharge: 

 

	(a)	all liabilities which give or may give rise to maritime or possessory liens on or claims enforceable against the Ship, the Earnings or the Insurances;

  

	(b)	all taxes, dues and other amounts charged in respect of the Ship, the Earnings or the Insurances; and 

 

	(c)	all other outgoings whatsoever in respect of the Ship, the Earnings or the Insurances, 

and, forthwith upon receiving notice of the arrest of the Ship, or of its detention in exercise or purported exercise of any lien or
claim, the Borrower shall procure its release by providing bail or otherwise as the circumstances may require. 
  

	13.10	Compliance with laws etc. The Borrower shall: 

  

	(a)	comply, or procure compliance with the ISM Code, the ISPS Code, all Environmental Laws and all other laws or regulations relating to the Ship, its ownership, operation
and management or to the business of the Borrower; 

  

	(b)	not employ the Ship nor allow her employment in any manner contrary to any law or regulation in any relevant jurisdiction including but not limited to the ISM Code and
the ISPS Code; and 

  

	(c)	in the event of hostilities in any part of the world (whether war is declared or not), not cause or permit the Ship to enter or trade to any zone which is declared a
war zone by any government or by the Ship’s war risks insurers unless the prior written consent of the Lender has been given and the Borrower has (at its expense) effected any special, additional or modified insurance cover which the Lender may
require. 

  
 33 

	13.11	Provision of information. The Borrower shall promptly provide the Lender with any information which it requests regarding: 

 

	(a)	the Ship, its employment, position and engagements; 

  

	(b)	the Earnings and payments and amounts due to the Ship’s master and crew; 

 

	(c)	any expenses incurred, or likely to be incurred, in connection with the trading, chartering, operation, maintenance or repair of the Ship and any payments made in
respect of the Ship; 

  

	(d)	any towages and salvages; and 

  

	(e)	the Borrower’s, the Approved Manager’s or the Ship’s compliance with the ISM Code and the ISPS Code, 

and, upon the Lender’s request, provide copies of any current charter relating to the Ship, of any current charter guarantee and
copies of the Borrower’s or the Approved Manager’s Document of Compliance. 
  

	13.12	Notification of certain events. The Borrower shall immediately notify the Lender by letter, of: 

 

	(a)	any casualty which is or is likely to be or to become a Major Casualty; 

  

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

 

	(c)	any requirement or recommendation made by any insurer or classification society or by any competent authority which is not immediately complied with;

  

	(d)	any arrest or detention of the Ship, any exercise or purported exercise of any lien on the Ship or her Earnings or any requisition of the Ship for hire;

  

	(e)	any intended dry docking of the Ship; 

  

	(f)	any Environmental Claim made against the Borrower or in connection with the Ship, or any Environmental Incident; 

 

	(g)	any claim for breach of the ISM Code or the ISPS Code being made against the Borrower, the Approved Manager or otherwise in connection with the Ship; or

  

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

 and the Borrower shall keep the Lender advised in writing on a regular basis and in such detail as the Lender
shall require of the Borrower’s, the Approved Manager’s or any other person’s response to any of those events or matters. 
  

	13.13	Restrictions on chartering, appointment of managers etc. The Borrower shall not: 

 

	(a)	let the Ship on demise charter for any period; 

  

	(b)	enter into any time or consecutive voyage charter in respect of the Ship for a term which exceeds, or which by virtue of any optional extensions may exceed, 12 months;

  
 34 

	(c)	enter into any charter in relation to the Ship under which more than 2 months’ hire (or the equivalent) is payable in advance; 

 

	(d)	charter the Ship otherwise than on bona fide arm’s length terms at the time when the Ship is fixed; 

 

	(e)	appoint a manager of the Ship other than the Approved Manager or agree to any material alteration to the terms of the Approved Manager’s appointment without the
prior written consent of the Lender, which consent shall not be reasonably withheld; 

  

	(f)	de-activate or lay up the Ship; or 

  

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

 

	13.14	Notice of Mortgage. The Borrower shall keep the Mortgage registered against the Ship as a valid first priority or preferred (as the case may be) mortgage, carry
on board the Ship a certified copy of the Mortgage and place and maintain in a conspicuous place in the navigation room and the Master’s cabin of the Ship a framed printed notice stating that the Ship is mortgaged by the Borrower to the Lender.

  

	13.15	Sharing of Earnings. The Borrower shall not: 

  

	(a)	enter into any agreement or arrangement for the sharing of any Earnings; and 

 

	(b)	enter into any agreement or arrangement for the postponement of any date on which any Earnings are due, the reduction of the amount of any Earnings or otherwise for the
release or adverse alteration of any right of the Borrower to the Earnings; or 

  

	(c)	enter into any agreement or arrangement for the release, or adverse alteration to, any guarantee or Security Interest relating to any Earnings.

  

	13.16	ISPS Code. The Borrower shall comply with the ISPS Code and in particular, without limitation, shall: 

 

	(a)	procure that the Ship and the company responsible for the Ship’s compliance with the ISPS Code comply with the ISPS Code; and 

 

	(b)	maintain for the Ship an ISSC; and 

  

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

 

	13.17	Charter Assignment. If the Borrower enters into a Charter (subject to obtaining the consent of the Lender in accordance with Clause 13.13(b)), the Borrower
shall, at the request of the Lender, execute in favour of the Lender a Charter Assignment and shall: 

  

	(a)	serve notice of the Charter Assignment on the charterer and procure that the charterer acknowledges such notice in such form as the Lender may approve or require; and

  

	(b)	deliver to the Lender such other documents equivalent to those referred to at paragraphs 3, 4 and 5 of Schedule 2, Part A as the Lender may require.

  
 35 

	14	SECURITY COVER 

  

	14.1	Minimum required security cover. Clause 14.2 applies if the Lender notifies the Borrower that: 

 

	(a)	the Market Value of the Ship; plus 

  

	(b)	the net realisable value of any additional security previously provided under this Clause 14, 

is below 120 per cent. of the aggregate of the Loan and the Swap Exposure. 

 

	14.2	Provision of additional security; prepayment. If the Lender serves a notice on the Borrower under Clause 14.1, the Borrower shall prepay such part (at least) of
the Loan as will eliminate the shortfall on or before the date falling 14 Business Days after the date on which the Lender’s notice is served under Clause 14.1 (the “Prepayment Date”) unless at least I Business Day before the
Prepayment Date it has provided, or ensured that a third party has provided, additional security which, in the opinion of the Lender, has a net realisable value at least equal to the shortfall and which has been documented in such terms as the
Lender may approve or require. 

  

	14.3	Valuation of Ship. The Market Value of the Ship at any date is that shown by taking the arithmetic mean of two valuations, each prepared:

  

	(a)	as at a date not more than 14 days previously; 

  

	(b)	by an Approved Broker, one selected by the Lender and the other selected by the Borrower, with both valuations being addressed to the Lender; 

 

	(c)	with or without physical inspection of the Ship (as the Lender may reasonably require); 

 

	(d)	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms as between a willing seller and a willing buyer, free of any existing
charter or other contract of employment; and 

  

	(e)	after deducting the estimated amount of the usual and reasonable expenses which would be incurred in connection with the sale, 

Provided that if one such valuation differs by more than 15 per cent. from the other valuation, then the Lender may select a
third Approved Broker to provide a valuation of the Ship in accordance with this Clause 14.3 and the Market Value of the Ship shall be the arithmetic average of all three such valuations. 

 

	14.4	Value of additional security. The net realisable value of any additional security which is provided under Clause 14.2 and which consists of a Security Interest
over a vessel shall be that shown by a valuation complying with the requirements of Clause 14.3. 

  

	14.5	Valuations binding. Any valuation under Clause 14.2, 14.3 or 14.4 shall be binding and conclusive as regards the Borrower, as shall be any valuation which the
Lender makes of any additional security which does not consist of or include a Security Interest. 

  

	14.6	Provision of information. The Borrower shall promptly provide the Lender and the Approved Broker(s) or expert(s) acting under Clause 14.5 or 14.6 with any
information which the Lender or the Approved Broker(s) or expert(s) may request for the purposes of the valuation; and, if the Borrower fails to provide the information by the date specified in the request, the valuation may be made on any basis and
assumptions which the Approved Broker(s) or the Lender (or the expert(s) appointed by it) consider(s) prudent. 

  
 36 

	14.7	Payment of valuation expenses. Without prejudice to the generality of the Borrower’s obligations under Clauses 19.2, 19.3 and 20.3, the Borrower shall, on
demand, pay the Lender the amount of the fees and expenses of the Approved Brokers or experts instructed by the Lender under this Clause and all legal and other expenses incurred by the Lender in connection with any matter arising out of this
Clause. 

  

	15	PAYMENTS AND CALCULATIONS 

  

	15.1	Currency and method of payments. All payments to be made by the Borrower to the Lender under a Finance Document shall be made: 

 

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

  

	(b)	in same day Dollar funds settled through the New York Clearing House Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the
Lender 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 Lender with a bank in New York as the Lender may from time to time notify to the Borrower. 

 

	15.2	Payment on non-Business Day. If any payment by the Borrower under a Finance Document would otherwise fall due on a day which is not a Business Day:

  

	(a)	the due date shall be extended to the next succeeding Business Day; or 

  

	(b)	if the next succeeding Business Day falls in the next calendar month, the due date shall be brought forward to the immediately preceding Business Day,

 and interest shall be payable during any extension under paragraph ((a)) at the rate payable on the original due
date. 
  

	15.3	Basis for calculation of periodic payments. All interest and commitment fee and any other payments under any Finance Document which are of an annual or periodic
nature shall accrue from day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year. 

  

	15.4	Lender accounts. The Lender shall maintain accounts showing the amounts owing to it from the Borrower and each Security Party under the Finance Documents and all
payments in respect of those amounts made by the Borrower and any Security Party. 

  

	15.5	Accounts prima facie evidence. If any accounts maintained under Clause 15.4 show an amount to be owing by the Borrower or a Security Party to the Lender, those
accounts shall, absent manifest error, be prima facie evidence that that amount is owing to the Lender. 

  

	16	APPLICATION OF RECEIPTS 

  

	16.1	Normal order of application. Except as any Finance Document may otherwise provide, any sums which are received or recovered by the Lender under or by virtue of
any Finance Document shall be applied: 

  

	(a)	FIRST: in or towards payment pro rata of any unpaid fees, costs and expenses of the Lender under the Finance Documents or the Master Agreement;

  

	(b)	SECONDLY: in or towards payment pro rata of any accrued interest or commission due but unpaid under this Agreement or the Master Agreement; 

  
 37 

	(c)	THIRDLY: in or towards payment pro rata of any principal due but unpaid under this Agreement and all amounts due under the Master Agreement in such order of application
and/or in such proportions as the Lender may specify by notice to the Borrower; 

  

	(d)	FOURTHLY: in or towards payment pro rata of any other amounts due but unpaid under any Finance Document or the Master Agreement; 

 

	(e)	FIFTHLY: in retention of an amount equal to any amount not then due and payable under any Finance Document or the Master Agreement but which the Lender, by notice to
the Borrower and the Security Parties, states in its opinion will or may become due and payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the provisions of Clause 16.1(a),
16.1(b), 16.1(c) and 16.1(d); and 

  

	(f)	SIXTHLY: any surplus shall be paid to the Borrower or to any other person appearing to be entitled to it. 

 

	16.2	Variation of order of application. The Lender may, by notice to the Borrower and the Security Parties, provide for a different manner of application from that
set out in Clause 16.1 either as regards a specified sum or sums or as regards sums in a specified category or categories. 

  

	16.3	Notice of variation of order of application. The Lender may give notices under Clause 16.2 from time to time; and such a notice may be stated to apply not only
to sums which may be received or recovered in the future, but also to any sum which has been received or recovered on or after the third Business Day before the date on which the notice is served. 

 

	16.4	Appropriation rights overridden. This Clause 16 and any notice which the Lender gives under Clause 16.2 shall override any right of appropriation possessed, and
any appropriation made, by the Borrower or any Security Party. 

  

	17	APPLICATION OF EARNINGS 

  

	17.1	Payment of Earnings. The Borrower undertakes with the Lender to ensure that, throughout the Security Period (subject only to the provisions of the General
Assignment), all the Earnings of the Ship are paid to the Earnings Account. 

  

	17.2	Monthly retentions. The Borrower undertakes with the Lender to ensure that, in each calendar month of the Security Period commencing on the date falling 1 month
after the Drawdown Date and thereafter on the same day of each subsequent month, there is transferred to the Retention Account out of the Earnings received in the Earnings Account during the preceding calendar month: 

 

	(a)	one-third of the amount of the repayment instalment falling due under Clause 7 on the next Repayment Date; and 

 

	(b)	the relevant fraction of the aggregate amount of interest on the Loan which is payable on the next due date for payment of interest under this Agreement.

 The “relevant fraction” is a fraction of which the numerator is 1 and the denominator the
number of months comprised in the then current Interest Period (or, if the period is shorter, the number of months from the later of the commencement of the current Interest Period or the last due date for payment of interest to the next due date
for payment of interest under this Agreement). 

  
 38 

	17.3	Shortfall in Earnings. If the aggregate Earnings received in the Earnings Accounts are insufficient in any month for the required amount to be transferred to the
Retention Account under Clause 17.2, the Borrower shall make up the amount of the insufficiency on demand from the Lender; but, without thereby prejudicing the Lender’s right to make such demand at any time, the Lender may permit the Borrower
to make up all or part of the insufficiency by increasing the amount of any transfer under Clause 17.2 from the Earnings received in the next or subsequent months. 

 

	17.4	Application of retentions. Until an Event of Default or a Potential Event of Default occurs, the Lender shall on each Repayment Date and on each due date for the
payment of interest under this Agreement apply in accordance with Clause 16.1 so much of the balance on the Retention Account as equals: 

  

	(a)	the Repayment Instalment due on that Repayment Date; or 

  

	(b)	the amount of interest payable on that interest payment date, 

 in discharge of the Borrower’s liability for that repayment instalment or that interest. 
  

	17.5	Location of accounts. The Borrower shall promptly: 

  

	(a)	comply with any requirement of the Lender as to the location or re-location of the Earnings Account and the Retention Account (or either of them); and

  

	(b)	execute any documents which the Lender specifies to create or maintain in favour of the Lender a Security Interest over (and/or rights of set-off, consolidation or
other rights in relation to) the Earnings Account and the Retention Account. 

  

	17.6	Debits for expenses etc. The Lender shall be entitled (but not obliged) from time to time to debit the Earnings Account with prior written notice to the Borrower
in order to discharge any amount due and payable to it under Clause 19 or 20 or payment of which it has become entitled to demand under Clause 19 or 20. 

  

	17.7	Borrower’s obligations unaffected. The provisions of this Clause 17 (as distinct from a distribution effected under Clause 17.4) do not affect:

  

	(a)	the liability of the Borrower to make payments of principal and interest on the due dates; or 

 

	(b)	any other liability or obligation of the Borrower or any Security Party under any Finance Document. 

 

	17.8	Banking Operations. The Borrower undertakes with the Lender to ensure that all payments in connection to the Ship shall be made through the Earnings Account.

  

	18	EVENTS OF DEFAULT 

  

	18.1	Events of Default. An Event of Default occurs if: 

  

	(a)	the Borrower or any Security Party fails to pay when due or (if so payable) on demand any sum payable under a Finance Document or under any document relating to a
Finance Document; or 

  

	(b)	any breach occurs of Clause 8.2, 10.2, 10.3, 10.19, 11.1, 11.3, 12.2, 12.3, 14.2 or 17.1 or clause 12.3 of the Guarantee; or 

  
 39 

	(c)	any breach by the Borrower or any Security Party occurs of any provision of a Finance Document (other than a breach covered by paragraphs (a) or (b)) if, in the
opinion of the Lender, such default is capable of remedy and such default continues unremedied 10 days after written notice from the Lender requesting action to remedy the same; or 

 

	(d)	(subject to any applicable grace period specified in the Finance Document) any breach by the Borrower or the Approved Manager occurs of any provision of a Finance
Document (other than a breach covered by paragraphs (a), (b) or (c) above); or 

  

	(e)	any representation, warranty or statement made by, or by an officer of, the Borrower or any Security Party in a Finance Document or in the Drawdown Notice or any other
notice or document relating to a Finance Document is untrue or misleading when it is made or repeated; or 

  

	(f)	any of the following occurs in relation to any Financial Indebtedness of a Relevant Person: 

 

	 	(i)	any Financial Indebtedness of a Relevant Person is not paid when due or, if so payable, on demand; or 

 

	 	(ii)	any Financial Indebtedness of a Relevant Person becomes due and payable or capable of being declared due and payable prior to its stated maturity date as a consequence
of any event of default; or 

  

	 	(iii)	a lease, hire purchase agreement or charter creating any Financial Indebtedness of a Relevant Person is terminated by the lessor or owner or becomes capable of being
terminated as a consequence of any termination event; or 

  

	 	(iv)	any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee, foreign exchange or other facility, or any swap or other derivative contract or
transaction, relating to any Financial Indebtedness of a Relevant Person ceases to be available or becomes capable of being terminated as a result of any event of default, or cash cover is required, or becomes capable of being required, in respect
of such a facility as a result of any event of default; or 

  

	 	(v)	any Security Interest securing any Financial Indebtedness of a Relevant Person becomes enforceable; or 

 

	(g)	any of the following occurs in relation to a Relevant Person: 

  

	 	(i)	a Relevant Person becomes, in the opinion of the Lender, unable to pay its debts as they fall due; or 

 

	 	(ii)	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress, or any form of freezing order, in respect of a sum
of, or sums aggregating, $ 100,000 or more or the equivalent in another currency; or 

  

	 	(iii)	any administrative or other receiver is appointed over any asset of a Relevant Person; or 

 

	 	(iv)	an administrator is appointed (whether by the court or otherwise) in respect of a Relevant Person; or 

 

	 	(v)	any formal declaration of bankruptcy or any formal statement to the effect that a Relevant Person is insolvent or likely to become insolvent is made by a Relevant
Person or by the directors of a Relevant Person or, in any proceedings, by a lawyer acting for a Relevant Person; or 

  
 40 

	 	(vi)	a provisional liquidator is appointed in respect of a Relevant Person, a winding up order is made in relation to a Relevant Person or a winding up resolution is passed
by a Relevant Person; or 

  

	 	(vii)	a resolution is passed, an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by (aa) a
Relevant Person, (bb) the members or directors of a Relevant Person, (cc) a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person, or (dd) a government minister or public or regulatory
authority of a Pertinent Jurisdiction for or with a view to the winding up of that or another Relevant Person or the appointment of a provisional liquidator or administrator in respect of that or another Relevant Person, or that or another Relevant
Person ceasing or suspending business operations or payments to creditors, save that this paragraph does not apply to a fully solvent winding up of a Relevant Person other than the Borrower or any Security Party which is, or is to be, effected for
the purposes of an amalgamation or reconstruction previously approved by the Lender and effected not later than 3 months after the commencement of the winding up; or 

 

	 	(viii)	an administration notice is given or filed, an application or petition to a court is made or presented or any other step is taken by a creditor of a Relevant Person
(other than a holder of Security Interests which together relate to all or substantially all of the assets of a Relevant Person) for the winding up of a Relevant Person or the appointment of a provisional liquidator or administrator in respect of a
Relevant Person in any Pertinent Jurisdiction, unless the proposed winding up, appointment of a provisional liquidator or administration is being contested in good faith, on substantial grounds and not with a view to some other insolvency law
procedure being implemented instead and either (aa) the application or petition is dismissed or withdrawn within 30 days of being made or presented, or (bb) within 30 days of the administration notice being given or filed, or the other relevant
steps being taken, other action is taken which will ensure that there will be no administration and (in both cases (aa) or (bb)) the Relevant Person will continue to carry on business in the ordinary way and without being the subject of any actual,
interim or pending insolvency law procedure; or 

  

	 	(ix)	a Relevant Person or its directors take any steps (whether by making or presenting an application or petition to a court, or submitting or presenting a document setting
out a proposal or proposed terms, or otherwise) with a view to obtaining, in relation to that or another Relevant Person, any form of moratorium, suspension or deferral of payments, reorganisation of debt (or certain debt) or arrangement with all or
a substantial proportion (by number or value) of creditors or of any class of them or any such moratorium, suspension or deferral of payments, reorganisation or arrangement is effected by court order, by the filing of documents with a court, by
means of a contract or in any other way at all; or 

  

	 	(x)	any meeting of the members or directors, or of any committee of the board or senior management, of a Relevant Person is held or summoned for the purpose of considering
a resolution or proposal to authorise or take any action of a type described in paragraphs (iv) to (ix) or a step preparatory to such action, or (with or without such a meeting) the members, directors or such a committee resolve or agree
that such an action or step should be taken or should be taken if certain conditions materialise or fail to materialise; or 

  

	 	(xi)	in a Pertinent Jurisdiction other than England, any event occurs, any proceedings are opened or commenced or any step is taken which, in the opinion of the Lender is
similar to any of the foregoing; or 

  
 41 

	(h)	the Borrower ceases or suspends carrying on its business or a part of its business which, in the opinion of the Lender, is material in the context of this Agreement; or

  

	(i)	it becomes unlawful in any Pertinent Jurisdiction or impossible: 

  

	 	(i)	for the Borrower or any Security Party to discharge any liability under a Finance Document or to comply with any other obligation which the Lender considers material
under a Finance Document; or 

  

	 	(ii)	for the Lender to exercise or enforce any right under, or to enforce any Security Interest created by, a Finance Document; or 

 

	(j)	any consent necessary to enable the Borrower to own, operate or charter the Ship or to enable the Borrower or any Security Party to comply with any provision which the
Lender considers material of a Finance Document or the MOA is not granted, expires without being renewed, is revoked or becomes liable to revocation or any condition of such a consent is not fulfilled; or 

 

	(k)	all the issued share capital of the Borrower ceases to be owned by the Guarantor; or 

 

	(1)	without the prior written consent of the Lender, Mr Michael Bodouroglou ceases to be the Chief Executive Officer of the Guarantor or at any time he owns either directly
or indirectly in aggregate less than 10 per cent. of the issued share capital of the Guarantor; 

  

	(m)	any provision which the Lender considers material of a Finance Document proves to have been or becomes invalid or unenforceable, or a Security Interest created by a
Finance Document proves to have been or becomes invalid or unenforceable or such a Security Interest proves to have ranked after, or loses its priority to, another Security Interest or any other third party claim or interest; or

  

	(n)	the Approved Charter is terminated or becomes invalid or unenforceable or otherwise ceases to be in full force and effect for any reason prior to its stated termination
date; or 

  

	(o)	the security constituted by a Finance Document is in any way imperilled or in jeopardy; or 

 

	(p)	an Event of Default as defined in Section 14 of the Master Agreement; or 

 

	(q)	the Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in full force and effect for any reason except with the
consent of the Lender; or 

  

	(r)	any other event occurs or any other circumstances arise or develop including, without limitation: 

 

	 	(i)	a change in the financial position or state of affairs of the Borrower; or 

 

	 	(ii)	any accident or other event involving the Ship or another vessel owned, chartered or operated by a Relevant Person, 

in the light of which the Lender reasonably considers that there is a significant risk that the Borrower is, or will later become, unable
to discharge its liabilities under the Finance Documents as they fall due. 
  

	18.2	Actions following an Event of Default. On, or at any time after, the occurrence of an Event of Default the Lender may: 

 

	(a)	serve on the Borrower a notice stating that all obligations of the Lender to the Borrower under this Agreement are terminated; and/or 

  
 42 

	(b)	serve on the Borrower a notice stating that the Loan, all accrued interest and all other amounts accrued or owing under this Agreement are immediately due and payable
or are due and payable on demand; and/or 

  

	(c)	take any other action which, as a result of the Event of Default or any notice served under paragraph (a) or (b), the Lender is entitled to take under any Finance
Document or any applicable law. 

  

	18.3	Termination of Commitment. On the service of a notice under paragraph (a) of Clause 18.2, the Commitment and all other obligations of the Lender to the
Borrower under this Agreement shall terminate. 

  

	18.4	Acceleration of Loan. On the service of a notice under paragraph (b) of Clause 18.2, the Loan, all accrued interest and all other amounts accrued or owing
from the Borrower or a Security Party under this Agreement and every other Finance Document shall become immediately due and payable or, as the case may be, payable on demand. 

 

	18.5	Multiple notices; action without notice. The Lender may serve notices under paragraphs (a) and (b) of Clause 18.2 simultaneously or on different dates
and if the Lender may take any action referred to in that Clause if no such notice is served or simultaneously with or at any time after the service of both or either of such notices. 

 

	18.6	Exclusion of Lender liability. Neither the Lender nor any receiver or manager appointed by the Lender, shall have any liability to the Borrower or the Approved
Manager: 

  

	(a)	for any loss caused by an exercise of rights under, or enforcement of a Security Interest created by, a Finance Document or by any failure or delay to exercise such a
right or to enforce such a Security Interest; or 

  

	(b)	as mortgagee in possession or otherwise, for any income or principal amount which might have been produced by or realised from any asset comprised in such a Security
Interest or for any reduction (however caused) in the value of such an asset, 

 except that this does not exempt
the Lender or a receiver or manager from liability for losses shown to have been caused by the gross negligence or the wilful misconduct of the Lender’s own officers and employees or ( as the case may be) such receiver’s or manager’s
own partners or employees. 
  

	18.7	Relevant Persons. In this Clause 18 a “Relevant Person” means the Borrower, a Security Party, and any other member of the Group.

  

	18.8	Interpretation. In Clause 18.1(f) references to an event of default or a termination event include any event, howsoever described, which is similar to an event
of default in a facility agreement or a termination event in a finance lease; and in Clause 18.1(g) “petition” includes an application. 

  

	19	FEES AND EXPENSES 

  

	19.1	Arrangement and commitment fees. The Borrower shall pay to the Lender: 

 

	(a)	a non-refundable front fee equal to 1.25 per cent. of the applicable Commitment (being an amount of $410,000 if Option A is exercised or, as the case may be,
$375,000 if Option B is exercised), 50 per cent. of which is payable on the date of this Agreement and the balance being payable on the earlier of the Drawdown Date and the last day of the Availability Period; and 

  
 43 

	(b)	quarterly in arrears during the period from (and including) 18 April 2011 (being the date on which the Borrower accepted the Lender’s commitment letter in
respect of the Loan) to the earlier of (i) the Drawdown Date and (ii) the last day of the Availability Period and on the last day of that period, a commitment fee at the rate of 1.25 per cent. per annum on the undrawn amount of the
applicable Commitment. 

  

	19.2	Costs of negotiation, preparation etc. The Borrower shall pay to the Lender on its demand the amount of all expenses incurred by the Lender in connection with
the negotiation, preparation, execution or registration of any Finance Document or any related document or with any transaction contemplated by a Finance Document or a related document. 

 

	19.3	Costs of variations, amendments, enforcement etc. The Borrower shall pay to the Lender, on the Lender’s demand, the amount of all expenses incurred by the
Lender in connection with: 

  

	(a)	any amendment or supplement to a Finance Document, or any proposal for such an amendment to be made; 

 

	(b)	any consent or waiver by the Lender under or in connection with a Finance Document, or any request for such a consent or waiver; 

 

	(c)	the valuation of any security provided or offered under Clause 14 or any other matter relating to such security; or 

where the Lender, in its absolute opinion, considers that there has been a material change to the insurances in respect of the Ship, the
review of the Insurances pursuant to Clause 12.18; and 
  

	(d)	any step taken by the Lender with a view to the protection, exercise or enforcement of any right or Security Interest created by a Finance Document or for any similar
purpose. 

 There shall be recoverable under paragraph (d) the full amount of all legal expenses, whether or
not such as would be allowed under rules of court or any taxation or other procedure carried out under such rules. 
  

	19.4	Documentary taxes. The Borrower shall promptly pay any tax payable on or by reference to any Finance Document, and shall, on the Lender’s demand, fully
indemnify the Lender against any liabilities and expenses resulting from any failure or delay by the Borrower to pay such a tax. 

  

	19.5	Certification of amounts. A notice which is duly signed by two officers of the Lender, which states that a specified amount, or aggregate amount, is due to the
Lender under this Clause 19 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

  

	20	INDEMNITIES 

  

	20.1	Indemnities regarding borrowing and repayment of Loan. The Borrower shall fully indemnify the Lender on the Lender’s demand in respect of all claims,
expenses, liabilities and losses which are incurred by the Lender, or which the Lender reasonably and with due diligence estimates that it will incur, as a result of or in connection with: 

 

	(a)	the Loan not being borrowed on the date specified in the Drawdown Notice for any reason other than a default by the Lender; 

  
 44 

	(b)	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on the last day of an Interest Period or other relevant period;

  

	(c)	any failure (for whatever reason) by the Borrower to make payment of any amount due under a Finance Document on the due date or, if so payable, on demand (after giving
credit for any default interest paid by the Borrower on the amount concerned under Clause 6); 

  

	(d)	the occurrence and/or continuance of an Event of Default or a Potential Event of Default and/or the acceleration of repayment of the Loan under Clause 18,

 and in respect of any tax (other than tax on its overall net income) for which the Lender is liable in
connection with any amount paid or payable to the Lender (whether for its own account or otherwise) under any Finance Document. 
  

	20.2	Breakage costs. Without limiting its generality, Clause 20.1 covers any liability, expense or loss, including a loss of a prospective profit, incurred by the
Lender: 

  

	(a)	in liquidating or employing deposits from third parties acquired or arranged to fund or maintain all or any part of the Loan and/or any overdue amount (or an aggregate
amount which includes the Loan or any overdue amount); and 

  

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

  

	20.3	Miscellaneous indemnities. The Borrower shall fully indemnify the Lender on its demand in respect of all claims, expenses, liabilities and losses which may be
made or brought against or incurred by the Lender, in any country, as a result of or in connection with: 

  

	(a)	any action taken, or omitted or neglected to be taken, under or in connection with any Finance Document by the Lender or by any receiver appointed under a Finance
Document; 

  

	(b)	any other Pertinent Matter; 

other than claims, expenses, liabilities and losses which are shown to have been directly and mainly caused by the dishonesty or wilful
misconduct of the officers or employees of the Lender. 
 Without prejudice to its generality, this Clause 20.3 covers any
claims, expenses, liabilities and losses which arise, or are asserted, under or in connection with any law relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law. 

 

	20.4	Environmental Indemnity. Without prejudice to its generality, Clause 20.3 covers any claims, demands, proceedings, liabilities, taxes, losses or expenses of
every kind which arise, or are asserted, under or in connection with any law relating to safety at sea, pollution or the protection of the environment, the ISM Code or the ISPS Code. 

  
 45 

	20.5	Currency indemnity. If any sum due from the Borrower or any Security Party to the Lender under a Finance Document or under any order or judgment relating to a
Finance Document has to be converted from the currency in which the Finance Document provided for the sum to be paid (the “Contractual Currency”) into another currency (the “Payment Currency”) for the purpose of:

  

	(a)	making or lodging any claim or proof against the Borrower or any Security Party, whether in its liquidation, any arrangement involving it or otherwise; or

  

	(b)	obtaining an order or judgment from any court or other tribunal; or 

  

	(c)	enforcing any such order or judgment; 

 the Borrower shall indemnify the Lender against the loss arising when the amount of the payment actually received by the Lender is converted at the available rate of exchange into the Contractual
Currency. 
 In this Clause 20.5, the “available rate of exchange” means the rate at which the Lender is able at
the opening of business (London time) on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the Payment Currency. 
 This Clause 20.5 creates a separate liability of the Borrower which is distinct from its other liabilities under the Finance Documents and which shall not be merged in any judgment or order relating to
those other liabilities. 
  

	20.6	Application of Master Agreement. For the avoidance of doubt, Clause 20.5 does not apply in respect of sums due from the Borrower to the Lender under or in
connection with the Master Agreement as to which sums the provisions of Section 8 (Contractual Currency) of the Master Agreement shall apply. 

  

	20.7	Certification of amounts. A notice which is signed by 2 officers of the Lender, which states that a specified amount, or aggregate amount, is due to the Lender
under this Clause 20 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

  

	21	NO SET-OFF OR TAX DEDUCTION 

  

	21.1	No deductions. All amounts due from the Borrower under a Finance Document shall be paid: 

 

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

  

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

 

	21.2	Grossing-up for taxes. If the Borrower is required by law to make a tax deduction from any payment: 

 

	(a)	the Borrower shall notify the Lender as soon as it becomes aware of the requirement; 

 

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

  

	(c)	the amount due in respect of the payment shall be increased by the amount necessary to ensure that the Lender receives and retains (free from any liability relating to
the tax deduction) a net amount which, after the tax deduction, is equal to the full amount which it would otherwise have received. 

  
 46 

	21.3	Evidence of payment of taxes. Within one month after making any tax deduction, the Borrower shall deliver to the Lender documentary evidence satisfactory
to the Lender that the tax had been paid to the appropriate taxation authority. 

  

	21.4	Exclusion of tax on overall net income. In this Clause 21 “tax deduction” means any deduction or withholding for or on account of any present or
future tax except tax on the Lender’s overall net income. 

  

	21.5	Application of Master Agreement. For the avoidance of doubt, Clause 21 does not apply in respect of sums due from the Borrower under or in connection with the
Master Agreement as to which sums the provisions of section 2(d) Deduction or Withholding for Tax of the Master Agreement shall apply. 

  

	22	ILLEGALITY, ETC 

  

	22.1	Illegality. This Clause 22 applies if the Lender notifies the Borrower that it has become, or will with effect from a specified date, become:

  

	(a)	unlawful or prohibited as a result of the introduction of a new law, an amendment to an existing law or a change in the manner in which an existing law is or will be
interpreted or applied; or 

  

	(b)	contrary to, or inconsistent with, any regulation, 

 for the Lender to maintain or give effect to any of its obligations under this Agreement in the manner contemplated by this Agreement. 

 

	22.2	Notification and effect of illegality. On the Lender notifying the Borrower under Clause 22.1, the Commitment shall terminate; and thereupon or, if later, on the
date specified in the Lender’s notice under Clause 22.1 as the date on which the notified event would become effective the Borrower shall prepay the Loan in full in accordance with Clause 7. 

 

	22.3	Mitigation. If circumstances arise which would result in a notification under Clause 22.1 then, without in any way limiting the rights of the Lender under Clause
22.3, the Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement and the Finance Documents to another office or financial institution not affected by the circumstances but the Lender shall not
be under any obligation to take any such action if, in its opinion, to do would or might: 

  

	(a)	have an adverse effect on its business, operations or financial condition; or 

 

	(b)	involve it in any activity which is unlawful or prohibited or any activity that is contrary to, or inconsistent with, any regulation; or 

 

	(c)	involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage. 

 

	23	INCREASED COSTS 

  

	23.1	Increased costs. This Clause 23 applies if the Lender notifies the Borrower that it considers that as a result of: 

 

	(a)	the introduction or alteration after the date of this Agreement of a law, or an alteration after the date of this Agreement in the manner in which a law is interpreted
or applied (disregarding any effect which relates to the application to payments under this Agreement of a tax on the Lender’s overall net income); or 

  
 47 

	(b)	the effect of complying with any law or regulation (including any which relates to capital adequacy or liquidity controls or which affects the manner in which the
Lender allocates capital resources to its obligations under this Agreement) which is introduced, or altered, or the interpretation or application of which is altered, after the date of this Agreement, 

the Lender (or a parent company of it) has incurred or will incur an “increased cost”. 

 

	23.2	Meaning of “increased costs”. In this Clause 23, “increased costs” means: 

 

	(a)	an additional or increased cost incurred as a result of, or in connection with, the Lender having entered into, or being a party to, this Agreement or having taken an
assignment of rights under this Agreement, of funding or maintaining the Loan or performing its obligations under this Agreement, or of having outstanding all or any part of the Loan or other unpaid sums; or 

 

	(b)	a reduction in the amount of any payment to the Lender under this Agreement or in the effective return which such a payment represents to the Lender or on its capital;

  

	(c)	an additional or increased cost of funding all or maintaining all or any of the advances comprised in a class of advances formed by or including the Loan or (as the
case may require) the proportion of that cost attributable to the Loan; or 

  

	(d)	a liability to make a payment, or a return foregone, which is calculated by reference to any amounts received or receivable by the Lender under this Agreement,

 but not (aa) an item attributable to a change in the rate of tax on the overall net income of the Lender (or a
parent company of it) or (bb) an item covered by the indemnity for tax in Clause 20.1 or by Clause 21 or (cc) an item arising directly out of compliance with the “International Convergence of Capital Standards, a Revised Framework”
published by the Basle Committee on Banking Supervision in June 2004 as implemented in the EU by the Capital Requirements Directive (2006/48/EC and 2006/49/EC) but only to the extent that the Lender determines it did or would have incurred the same
level of increased cost as at the date of this Agreement and by reference to the facts and circumstances prevailing at that time. 
 For the purposes of this Clause 23.2 the Lender may in good faith allocate or spread costs and/or losses among its assets and liabilities (or any class thereof) on such basis as it considers appropriate.

  

	23.3	Payment of increased costs. The Borrower shall pay to the Lender, on the Lender’s demand, the amounts which the Lender from time to time notifies the
Borrower that it has specified to be necessary to compensate it for the increased cost. 

  

	23.4	Notice of prepayment. If the Borrower is not willing to continue to compensate the Lender for the increased cost under Clause 22.3, the Borrower may give the
Lender not less than 15 days’ notice of its intention to prepay the Loan at the end of an Interest Period. 

  

	23.5	Prepayment; termination of Commitment. A notice under Clause 23.4 shall be irrevocable; and on the date specified in the Borrower’s notice of intended
prepayment, the Commitment shall be cancelled and the Borrower shall prepay (without premium or penalty but, in any event, including any increased costs) the Loan, together with accrued interest thereon at the applicable rate plus the applicable
Margin. 

  
 48 

	23.6	Application of prepayment. Clause 7 shall apply in relation to the prepayment. 

 

	24	SET-OFF 

  

	24.1	Application of credit balances. The Lender may following the occurrence of an Event of Default which is continuing and without prior notice:

  

	(a)	apply any balance (whether or not then due) which at any time stands to the credit of any account in the name of the Borrower at any office in any country of the Lender
in or towards satisfaction of any sum then due from the Borrower to the Lender under any of the Finance Documents; and 

  

	(b)	for that purpose: 

  

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

 

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

 

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

 

	24.2	Existing rights unaffected. The Lender shall not be obliged to exercise any of its rights under Clause 24.1; and those rights shall be without prejudice and in
addition to any right of set-off, combination of accounts, charge, lien or other right or remedy to which the Lender is entitled (whether under the general law or any document). 

 

	24.3	No Security Interest. This Clause 24 gives the Lender a contractual right of set-off only, and does not create any equitable charge or other Security Interest
over any credit balance of the Borrower. 

  

	25	TRANSFERS AND CHANGES IN LENDING OFFICE 

  

	25.1	Transfer by Borrower. The Borrower may not, without the prior written consent of the Lender: 

 

	(a)	transfer any of its rights or obligations under any Finance Document; or 

  

	(b)	enter into any merger, de-merger or other reorganisation, or carry out any other act, as a result of which any of, its rights or liabilities would vest in, or pass to,
another person. 

  

	25.2	Assignment by Lender. The Lender may assign all or any of the rights and interests which it has under or by virtue of the Finance Documents without the consent
of the Borrower. 

  

	25.3	Rights of assignee. In respect of any breach of a warranty, undertaking, condition or other provision of a Finance Document, or any misrepresentation made in or
in connection with a Finance Document, a direct or indirect assignee of any of the Lender’s rights or interests under or by virtue of the Finance Documents shall be entitled to recover damages by reference to the loss incurred by that assignee
as a result of the breach or misrepresentation irrespective of whether the Lender would have incurred a loss of that kind or amount. 

  

	25.4	Sub-participation; subrogation assignment. The Lender may sub-participate all or any part of its rights and/or obligations under or in connection with the
Finance Documents without the consent of, or any notice to. the Borrower or any Security Party; and the Lender may assign, all or any part of those rights to an insurer or surety who has become subrogated to them. 

  
 49 

	25.5	Disclosure of information. The Lender may disclose to a potential assignee or sub-participant any information which the Lender has received in relation to the
Borrower, any Security Party or their affairs under or in connection with any Finance Document, unless the information is clearly of a confidential nature. 

 

	25.6	Change of lending office. The Lender may change its lending office by giving notice to the Borrower and the change shall become effective on the later of:

  

	(a)	the date on which the Borrower receives the notice; and 

  

	(b)	the date, if any, specified in the notice as the date on which the change will come into effect, 

Provided that such change shall not prejudice or adversely affect the rights and obligations of the Borrower and the other Security
Parties arising in connection with this Agreement and the other Finance Documents. 
  

	25.7	Security over Lender’s rights. In addition to the other rights provided to the Lender under this Clause 25, the Lender may without consulting with or
obtaining consent from the Borrower or any Security Party, at any time charge, assign or otherwise create a Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure
obligations of the Lender including, without limitation: 

  

	(a)	any charge, assignment or other Security Interest to secure obligations to a federal reserve or central bank; and 

 

	(b)	if the Lender is a fund, any charge, assignment or other Security Interest granted to any holders (or trustee or representatives of holders) of obligations owed, or
securities issued, by the Lender as security for those obligations or securities; 

 except that no such charge,
assignment or Security Interest shall: 
  

	 	(i)	release the Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the
Lender as a party to any of the Finance Documents; or 

  

	 	(ii)	require any payments to be made by the Borrower or any Security Party or grant to any person any more extensive rights than those required to be made or granted to the
Lender under the Finance Documents. 

  

	26	VARIATIONS AND WAIVERS 

  

	26.1	Variations, waivers etc. by Lender. Subject to Clause 26.2 a document shall be effective to vary, waive, suspend or limit any provision of a Finance Document, or
the Lender’s rights or remedies under such a provision or the general law, only if the document is signed, or specifically agreed to by fax, by the Borrower and the Lender and, if the document relates to a Finance Document to which a Security
Party is party, by that Security Party. 

  
 50 

	26.2	Exclusion of other or implied variations. Except for a document which satisfies the requirements of Clause 26.1, no document, and no act, course of conduct,
failure or neglect to act, delay or acquiescence on the part of the Lender (or any person acting on its behalf) shall result in the Lender (or any person acting on its behalf) being taken to have varied, waived, suspended or limited, or being
precluded (permanently or temporarily) from enforcing, relying on or exercising: 

  

	(a)	a provision of this Agreement or another Finance Document; or 

  

	(b)	an Event of Default; or 

  

	(c)	a breach by the Borrower or a Security Party of an obligation under a Finance Document or the general law; or 

 

	(d)	any right or remedy conferred by any Finance Document or by the general law, 

 and there shall not be implied into any Finance Document any term or condition requiring any such provision to be enforced, or such right or remedy to be exercised, within a certain or reasonable time.

  

	27	NOTICES 

  

	27.1	General. Unless otherwise specifically provided, any notice under or in connection with any Finance Document shall be given by letter or fax; and references in
the Finance Documents to written notices, notices in writing and notices signed by particular persons shall be construed accordingly. 

  

	27.2	Addresses for communications. A notice shall be sent: 

  

					
	(a)	  	to the Borrower:	  	c/o Allseas Marine S.A.
		  		  	15 Karamanli Street
		  		  	166 73 Voula 35
		  		  	Greece
			
		  		  	Facsimile No: +30 210 899 5085
			
	(b)	  	to the Lender:	  	UniCredit Bank AG
		  		  	7 Heraklitou Street
		  		  	106 73 Athens
		  		  	Greece
			
		  		  	Fax No: +30 210 412 6597
		  		  	Attention: the Manager

 or to such other address as the relevant party may notify the other. 

 

	27.3	Effective date of notices. Subject to Clauses 27.4 and 27.5: 

  

	(a)	a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered; and 

 

	(b)	a notice which is sent by fax shall be deemed to be served, and shall take effect, 2 hours after its transmission is completed. 

 

	27.4	Service outside business hours. However, if under Clause 27.3 a notice would be deemed to be served: 

 

	(a)	on a day which is not a business day in the place of receipt; or 

  

	(b)	on such a business day, but after 5 p.m. local time, the notice shall (subject to Clause 27.5) be deemed to be served, and shall take effect, at 9 a.m. on the next day
which is such a business day. 

  
 51 

	27.5	Illegible notices. Clauses 27.3 and 27.4 do not apply if the recipient of a notice notifies the sender within 1 hour after the time at which the notice would
otherwise be deemed to be served that the notice has been received in a form which is illegible in a material respect. 

  

	27.6	Valid notices. A notice under or in connection with a Finance Document shall not be invalid by reason that its contents or the manner of serving it do not comply
with the requirements of this Agreement or, where appropriate, any other Finance Document under which it is served if: 

  

	(a)	the failure to serve it in accordance with the requirements of this Agreement or other Finance Document, as the case may be, has not caused any party to suffer any
significant loss or prejudice; or 

  

	(b)	in the case of incorrect and/or incomplete contents, it should have been reasonably clear to the party on which the notice was served what the correct or missing
particulars should have been. 

  

	27.7	English language. Any notice under or in connection with a Finance Document shall be in English. 

 

	27.8	Meaning of “notice”. In this Clause 27 “notice” includes any demand, consent, authorisation, approval, instruction, waiver or other
communication. 

  

	28	SUPPLEMENTAL 

  

	28.1	Rights cumulative, non-exclusive. The rights and remedies which the Finance Documents give to the Lender are: 

 

	(a)	cumulative; 

  

	(b)	may be exercised as often as appears expedient; and 

  

	(c)	shall not, unless a Finance Document explicitly and specifically states so, be taken to exclude or limit any right or remedy conferred by any law.

  

	28.2	Severability of provisions. If any provision of a Finance Document is or subsequently becomes void, unenforceable or illegal, that shall not affect the validity,
enforceability or legality of the other provisions of that Finance Document or of the provisions of any other Finance Document. 

  

	28.3	Counterparts. A Finance Document may be executed in any number of counterparts. 

 

	28.4	Third party rights. A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the
benefit of any term of this Agreement. 

  

	29	LAW AND JURISDICTION 

  

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

  

	29.2	Exclusive English jurisdiction. Subject to Clause 29.3, the courts of England shall have exclusive jurisdiction to settle any Dispute. 

  
 52 

	29.3	Choice of forum for the exclusive benefit of the Lender. Clause 29.2 is for the exclusive benefit of the Lender, which reserves the right:

  

	(a)	to commence proceedings in relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and

  

	(b)	to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings
in England. 

 The Borrower shall not commence any proceedings in any country other than England in relation to a
Dispute. 
  

	29.4	Process agent. The Borrower irrevocably appoints Hill Dickinson Services (London) Ltd. at its office for the time being presently at Duke’s Place, London
EC3A 7HS, England, to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with a Dispute. 

 

	29.5	Lender’s rights unaffected. Nothing in this Clause 29 shall exclude or limit any right which the Lender may have (whether under the law of any country, an
international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction. 

 

	29.6	Meaning of “proceedings” and “Dispute”. In this Clause 29, “proceedings” means proceedings of any kind, including an
application for a provisional or protective measure and a “Dispute” means any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement) or
any non-contractual obligation arising out of or in connection with this Agreement. 

 THIS AGREEMENT has been entered into
on the date stated at the beginning of this Agreement. 

  
 53 

 SCHEDULE 1 
 DRAWDOWN NOTICE 
  

	To:	UniCredit Bank AG 

 7 Heraklitou
Street 
 106 73 Athens 
 Greece 
 Fax No: +30 210 412 6597 

Attention: [Loans Administration] 

[—] 2011 
 DRAWDOWN NOTICE 
  

	1	We refer to the loan agreement (the “Loan Agreement”) dated [—] 2011 and made between ourselves, as
Borrower, and yourselves, as Lender, in connection with a facility of up to US$32,800,000. Terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice. 

 

	2	[We hereby notify you, pursuant to Clause 2.1 of the Loan Agreement, that we elect Option [A][B] to apply]. 

 

	3	We request to borrow the Loan as follows: 

  

	(a)	Amount: US$[32,800,000][30,000,000]; 

  

	(b)	Drawdown Date: [—] 2011; 

 

	(c)	[Duration of the first Interest Period shall be [—] months;] and 

 

	(d)	Payment instructions : account numbered [—] with [—] of [—]. 

  

	4	We represent and warrant that: 

  

	(a)	the representations and warranties in Clause 9 of the Loan Agreement would remain true and not misleading if repeated on the date of this notice with reference to the
circumstances now existing; 

  

	(b)	no Event of Default or Potential Event of Default has occurred or will result from the borrowing of the Loan; and 

 

	(c)	we will use the Loan only for the purpose stated in Clause 2.2 of the Loan Agreement. 

 

	5	This notice cannot be revoked without your prior consent. 

 [Name of Signatory] 
  

 
 Director

 for and on behalf of 
 ARAL SEA SHIPPING S.A. 

  
 54 

 SCHEDULE 2 
 CONDITION PRECEDENT DOCUMENTS 
 PART A 

The following are the documents referred to in Clause 8.1(a). 
  

	1	A duly executed original of this Agreement, the Master Agreement, the Master Agreement Assignment, the Guarantee and the Accounts Pledges (and of each document required
to be delivered by each Finance Document). 

  

	2	Copies of the certificate of incorporation and constitutional documents of the Borrower and each Security Party. 

 

	3	Copies of resolutions of the shareholders and directors of the Borrower and of the directors of the Guarantor authorising the execution of each of the Finance Documents
and, in the case of the resolutions of the Borrower, authorising named officers to give the Drawdown Notice and other notices under this Agreement and ratifying the execution of the MOA. 

 

	4	The original of any power of attorney under which any Finance Document is executed on behalf of the Borrower and the Guarantor. 

 

	5	Copies of all consents which the Borrower requires to enter into, or make any payment under, any Finance Document and the MOA. 

 

	6	The originals of any mandates or other documents required in connection with the opening or operation of the Earnings Account and the Retention Account.

  

	7	Copies of the MOA and all documents and supplements thereto and of all documents signed or issued by the Borrower and the Seller (or either of them) under or in
connection with it, each evidencing the Contract Price of the Ship. 

  

	8	Such documentary evidence as the Lender and its legal advisers may require in relation to the due authorisation and execution by the Seller and of all documents to be
executed by the Seller under the MOA. 

  

	9	Any documents required by the Lender in respect of the Borrower, the Guarantor and any other Security Party to satisfy the Lender’s “know your customer”
requirements. 

  

	10	Documentary evidence that the agent for service of process named in Clause 29 has accepted its appointment. 

 

	11	Evidence satisfactory to the Lender that the Guarantor has raised net proceeds equal to at least 100 per cent. of the Consolidated Debt from its IPO.

  

	12	Favourable legal opinions from lawyers appointed by the Lender on such matters concerning the laws of Liberia, Greece, Marshall Islands or such other relevant
jurisdiction as the Lender may require. 

  

	13	If the Lender so requires, in respect of any of the documents referred to above, a certified English translation prepared by a translator approved by the Lender.

  
 55 

 PART B 
 The following are the documents referred to in Clause 8.1(b). 
  

	1	A duly executed original of the Mortgage, the General Assignment and the Approved Charter Assignment (and of each document to be delivered by each of them),

  

	2	Documentary evidence that: 

  

	(a)	the Ship has been unconditionally delivered by the Seller to, and accepted by, the Borrower under the MOA, and the full purchase price payable under the MOA (in
addition to the part to be financed by the Loan) has been duly paid (together with a copy of each of the documents to be delivered by the Seller to the Borrower under the MOA (including but not limited to, the bill of sale, the commercial invoice
and the protocol of delivery and acceptance)); 

  

	(b)	the Ship is definitively and permanently registered in the name of the Borrower under an Approved Flag; 

 

	(c)	the Ship is in the absolute and unencumbered ownership of the Borrower save as contemplated by the Finance Documents; 

 

	(d)	the Ship maintains the highest available class with a first class classification society which is a member of IACS as the Lender may approve free of all recommendations
and conditions of such classification society; 

  

	(e)	the Mortgage has been duly registered against the Ship as a valid first preferred or, as the case may be, priority ship mortgage in accordance with the laws of the
applicable Approved Flag State; 

  

	(f)	the Ship is insured in accordance with the provisions of this Agreement and all requirements therein in respect of insurances have been complied with; and

  

	(g)	the Ship has been delivered to, and accepted by, the Approved Charterer pursuant to the Approved Charter for a term of at least two years and six months commencing from
the Delivery Date. 

  

	3	Documents establishing that the Ship will, as from the Delivery Date, be managed by the Approved Manager on terms acceptable to the Lender, together with:

  

	(a)	the Approved Manager’s Undertaking; 

  

	(b)	copies of the Approved Manager’s document of compliance (DOC) and the safety management certificate (SMC) referred to in paragraph (a) of the definition of
the ISM Code Documentation and of any other certificates in connection with the Ship certified as true and in effect by the Borrower and the Approved Manager; and 

 

	(c)	a copy of the International Ship Security Certificate for the Ship certified as true and in effect by the Borrower and the Approved Manager. 

 

	4	A copy of the Approved Charter duly executed by the Borrower and the Approved Charterer. 

 

	5	Two valuations of the Ship, each to be prepared by an Approved Broker selected by the Lender in accordance with Clause 14.3 and addressed to the Lender dated no earlier
than 14 days prior to the Delivery Date of the Ship showing a valuation of the Ship in an amount satisfactory to the Lender. 

  
 56 

	6	Favourable legal opinions from lawyers appointed by the Lender on such matters concerning the laws of the applicable Approved Flag State and such other relevant
jurisdictions as the Lender may require. 

 Each copy document delivered under this Schedule shall be certified as a true and up
to date copy by a director or the secretary (or equivalent officer) of the Borrower. 

  
 57 

 EXECUTION PAGE 

 

							
	BORROWER	 		 	
			
	SIGNED by Maria Stefanou	 	)	 	/s/ Maria Stefanou
		 	)	 	
	for and on behalf of	 	)	 	
	ARAL SEA SHIPPING S.A.	 	)	 	/s/ Pat Skala
	in the presence of:	 	)	 	
				
	LENDER	 	 /s/ Pat Skala
 Watson, Farley & Williams
 89 Akti Miaouli

Piraeus 185 38 – Greece
	 		 	
			
	SIGNED by Anastasia Kerpinioti and Pericles Lykoudis	 	)	 	/s/ Anastasia Kerpinioti 
		 	)	 	/s/ Pericles Lykoudis
	for and on behalf of	 	)	 	
	UNICREDIT BANK AG	 	)	 	
	in the presence of: Constance Dews	 	)	 	/s/ Constance Dews
				
		 	 /s/ Illegible
 Watson, Farley & Williams
 89 Akti Miaouli

Piraeus 185 38 – Greece
	 		 	

  
 58Supplemental Letter, dated October 27, 2011

 Exhibit 4.25 

 

	To:	Aral Sea Shipping S.A. 

 80 Broad
Street 
 Monrovia 
 Liberia 
 - and - 

Box Ships Inc. 

Trust Company Complex 
 Ajeltake Road 
 Ajeltake Island 

Majuro 
 MH 96960
The Marshall Islands 
  

	From:	UniCredit Bank AG 

 7 Heraklitou
Street 
 106 73 Athens 
 Greece 
 Dear Sirs 
 27 October 2011 
 Loan Agreement dated 17 May 2011 (the “Loan Agreement”)
made between Aral Sea Shipping S.A. as borrower and UniCredit Bank AG as lender (the “Lender”) in respect of a loan facility of up to Thirty two million eight hundred thousand Dollars ($32,800,000) 

We refer to the Loan Agreement. 
 We also refer
to the guarantee dated 17 May 2011 (the “Guarantee”) made between (i) Box Ships Inc. as guarantor and (ii) the Lender. 
 Words and expressions defined in the Loan Agreement and the Guarantee shall have the same meanings when used in this Letter. 
 Pursuant to discussions between us, we have agreed that the Loan Agreement and the Guarantee shall be amended as follows: 
  

	A.	Specific Amendments to Loan Agreement. 

  

	(a)	by deleting the figure “10” before the word “days” and replacing it with the figure “5” in the definition of “Dividend Declaration
Date” in Clause 1.1 thereof. 

  

	B.	Specific Amendments to the Guarantee. 

  

	(a)	by deleting the definition of “Six Months’ Debt Service” in Clause 1.2 thereof in its entirety; 

 

	(b)	by deleting the words “the Six Months’ Debt Service” and replacing them with the figure “$10,000,000” and by deleting the words “Earnings
Account and any other interest bearing accounts with the Lender” and replacing them with the words “Retention Account” in Clause 12.3 (a) thereof; 

	(c)	by deleting Clause 12.7(d) in its entirety; and 

  

	(d)	by deleting the word “and” at the end of Clause 12.7(c) thereof and by adding it at the end of Clause 12.7(b). 

Save for the above amendments and any consequential changes, all of the other provisions of the Loan Agreement and the Guarantee shall continue to remain
in full force and effect. 
 We further confirm that the Loan Agreement and the Finance Documents (as defined therein) shall be amended (with
effect from the date of this Letter) as follows: 
  

	(a)	by construing all references throughout the Loan Agreement to “this Agreement” and all references in the Finance Documents (other than the Loan Agreement) to
the “Loan Agreement” as references to the Loan Agreement as amended and supplemented by this Letter; and 

  

	(b)	by construing all references to the “Finance Documents” in the Loan Agreement and each of the other Finance Documents as references to the Finance Documents
as amended and supplemented by this Letter. 

 This Letter shall be governed by and construed in accordance with English law.

 Please confirm your acceptance to the foregoing terms by signing the acceptance at the foot of this Letter. 

Yours faithfully 
  

			
	 /s/ ANASTASIA KERPINIOTI        /s/ PERICLES
LYKOUDIS

	ANASTASIA KERPINIOTI	 	PERICLES LYKOUDIS
	 for and on behalf of

UNICREDIT BANK AG
	 	

  
 2 

 We hereby acknowledge receipt of the above letter and confirm our agreement and acceptance the terms
thereof. 
  

	
	 /s/ MARIA STEFANOU

	MARIA STEFANOU
	 Attorney-in-Fact
 for and on
behalf of
 ARAL SEA SHIPPING S.A.

	
	 Date: 27 October 2011

	
	 /s/ MARIA STEFANOU        /s/ ROBERT PERRI

	 MARIA STEFANOU            ROBERT PERRI

	 Attorneys-in-Fact
 for and on
behalf of
 BOX SHIPS INC.

	
	Date: 27 October 2011

  
 3

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