Document:

exv10w1

Exhibit 10.1

Private and Confidential

DATED 19 August 2011

SOLANGE SHIPPING LTD. (1)

EMPORIKI BANK OF GREECE S.A. (2)

 

FACILITY AGREEMENT No. 242

in respect of

a loan of up to USD23,000,000

 

INCE & CO

PIRAEUS

 

 

Index

	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 
	1 Purpose and definitions
	 	 	3	 
	2 The Bank’s commitment, advance and use of proceeds
	 	 	13	 
	3 Interest and interest periods
	 	 	14	 
	4 Repayment and prepayment
	 	 	16	 
	5 Commitment commission, fees and expenses
	 	 	18	 
	6 Payments and taxes; accounts and calculations
	 	 	19	 
	7 Representations and warranties
	 	 	21	 
	8 Undertakings
	 	 	25	 
	9 Conditions
	 	 	32	 
	10 Events of default
	 	 	33	 
	11 Indemnities
	 	 	37	 
	12 Unlawfulness and increased costs mitigation
	 	 	37	 
	13 Security, set-off and miscellaneous
	 	 	39	 
	14 Accounts
	 	 	41	 
	15 Assignment, transfer and lending office
	 	 	42	 
	16 Notices
	 	 	43	 
	17 Governing law
	 	 	44	 
	18 Jurisdiction
	 	 	44	 
	Schedule 1 Form of Drawdown Notice
	 	 	 	 
	Schedule 2 Conditions precedent
	 	 	 	 
	Schedule 3 Indenture excerpt
	 	 	 	 
	Schedule 4 Vessel details
	 	 	 	 

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THIS AGREEMENT is dated 19 August 2011 and made BETWEEN:

	(1)	 	SOLANGE SHIPPING LTD. as Borrower; and
	 
	(2)	 	EMPORIKI BANK OF GREECE S.A. as Bank.

IT IS AGREED as follows:

	1	 	PURPOSE AND DEFINITIONS
	 
	1.1	 	Purpose
	 
	 	 	This Agreement sets out the terms and conditions upon which the Bank agrees to make
available to the Borrower a facility of up to USD23,000,000 (to be drawn in up to 4
Advances), for the purpose of part-financing the purchase and construction price of one
kamsarmax bulk carrier which is to be constructed by the Builder for, and purchased by, the
Borrower.
	 
	1.2	 	Definitions
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	 	 	“Advance” means the principal amount of each drawing in respect of the Loan to be
made pursuant to Clause 2.3;
	 
	 	 	“Approved Broker” means each of (i) H Clarkson & Co. Ltd. of St Magnus House, 3 Lower
Thames Street, London EC3R 6HE, England, (ii) Arrow Research Ltd. of Harbour House,
Chelsea Harbour, London SW10 0XE, England and (iii) Fearnleys AS of Grev Wedels Plass 9,
P.O.Box 1158 Sentrum, Oslo N-0107 Norway or such other reputable, independent and first
class firm of shipbrokers specialising in the valuation of vessels of the relevant type
appointed by the Bank and agreed with the Borrower;
	 
	 	 	“Assignee” is defined in clause 15.3;
	 
	 	 	“Bank” means Emporiki Bank of Greece S.A. acting through its branch at 1, Korai Street,
105 64 Athens, Greece (or of such other address as may last have been notified to the
Borrower pursuant to clause 16.2.3);
	 
	 	 	“Banking Day” means a day on which dealings in deposits in USD are carried on in the
London Interbank Eurocurrency Market and a day (other than Saturday or Sunday) on which
banks are open for general business in London, Piraeus and New York City and, in relation to
any payment to be made into or out of China, China (or any other relevant place of payment
under clause 6);
	 
	 	 	“Borrower” means Solange Shipping Ltd., a corporation incorporated in the Marshall Islands
with its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands, MH96960;
	 
	 	 	“Borrower’s Security Documents” means, at any relevant time, such of the Security
Documents as shall have been executed by the Borrower;
	 
	 	 	“Break Costs” means the aggregate amount of all losses, premiums, penalties, costs and
expenses whatsoever certified by the Bank at any time and from time to time as having been

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	 	 	incurred by it in maintaining or funding the Loan or in liquidating or re employing fixed
deposits acquired to maintain the same as a result of either:

	 	(a)	 	any repayment or prepayment of the Loan or any part thereof otherwise than
in accordance with, respectively, clause 4.1 or clause 4.3 whether on a voluntary or
involuntary basis or otherwise howsoever or
	 
	 	(b)	 	of the Borrower failing or being incapable of drawing the Loan after a
Drawdown Notice has been given;

	 	 	“Casualty Amount” means five hundred thousand Dollars (USD500,000) (or the equivalent
in any other currency);
	 
	 	 	“Certified Copy” means in relation to any document delivered or issued by or on behalf of
any company, a copy of such document certified as a true, complete and up to date copy of
the original by any of the directors or officers for the time being of such company or by
such company’s attorneys or solicitors;
	 
	 	 	“Charter Assignment” means a specific assignment of any Extended Employment Contract
required to be executed hereunder by the Borrower in favour of the Bank (including any
notices and/or acknowledgements and/or undertakings associated therewith) in such form as
the Bank may require in its sole discretion;
	 
	 	 	“Charter Insurance Assignment” means a first priority assignment of the Charter Insurances
executed or to be executed by such named insured as the Bank may require in favour of the
Bank, in such form as the Bank may in its sole discretion require;
	 
	 	 	“Charter Insurances” means all policies and contracts of insurance which are from time to
time during the Facility Period in place or taken out or entered into by or for the
benefit of the Borrower in respect of loss of charter earnings and all benefits thereof
(including claims of whatsoever nature and return of premiums);
	 
	 	 	“Classification” means, in relation to each Vessel, the highest class available for a
vessel of her type with the relevant Classification Society;
	 
	 	 	“Classification Society” means, in relation to each Vessel, any IACS classification
society which the Bank shall, at the request of the Borrower, have agreed in writing shall
be treated as the classification society in relation to such Vessel for the purposes of
the relevant Ship Security Documents;
	 
	 	 	“Commitment” means, in relation to the Loan, the maximum amount which the Bank has
agreed to lend to the Borrower under clause 2.1 as reduced by any relevant term of this
Agreement;
	 
	 	 	“Compulsory Acquisition” means, in respect of the Vessel, requisition for title or other
compulsory acquisition including, if the Vessel is not released therefrom within the
Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or
confiscation howsoever for any reason (but excluding requisition for use or hire) by or on
behalf of any Government Entity or other competent authority or by pirates, hijackers,
terrorists or similar persons; “Relevant Period” means for the purposes of this definition
of Compulsory Acquisition either (i) ninety (90) days or, (ii) if relevant underwriters
confirm in writing (in terms satisfactory to the Bank) prior to the end of such ninety
(90) day period that such

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	 	 	capture, seizure, detention or confiscation will be fully covered by the Borrower’s war
risks insurance if continuing for a further period exceeding ten (10) calendar months, the
shorter of twelve (12) months and such period at the end of which cover is confirmed to
attach;
	 
	 	 	“Corporate Guarantee” means the guarantee required to be executed hereunder by the
Corporate Guarantor in such form as the Bank may agree or require ;
	 
	 	 	“Corporate Guarantor” means Navios Maritime Holdings Inc., a company incorporated in the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands, MH96960;
	 
	 	 	“Default” means any Event of Default or any event or circumstance which with the giving of
notice or lapse of time or the satisfaction of any other condition (or any combination
thereof) would constitute an Event of Default;
	 
	 	 	“Delivery Date” means the date on which title to and possession of the Vessel is
transferred from the Builder to the Borrower, which is expected to be 31 May 2012;
	 
	 	 	“Dollars” and “USD” mean the lawful currency of the USA and in respect of all payments to
be made under any of the Security Documents means funds which are for same day settlement
in the New York Clearing House Interbank Payments System (or such other US dollar funds as
may at the relevant time be customary for the settlement of international banking
transactions denominated in US dollars);
	 
	 	 	“Drawdown Date” means, in relation to each Advance, any date being a Banking Day falling
during the relevant Drawdown Period, on which the relevant Advance is, or is to be, made
available;
	 
	 	 	“Drawdown Notice” means, in relation to each Advance, a notice substantially in the form
of schedule 1;
	 
	 	 	“Drawdown Period” means the period commencing on the Execution Date and ending on the
earlier of (i) 31 May 2011 and (ii) any date on which the Commitment is finally cancelled
or fully drawn under the terms of this Agreement;
	 
	 	 	“Earnings Account” means an interest bearing USD Account required to be opened hereunder
with the Bank in the name of the Borrower designated “Solange Shipping Ltd. — Earnings
Account” and includes any other account designated in writing by the Bank to be the
Earnings Account for the purposes of this Agreement;
	 
	 	 	“Earnings Account Pledge” means the pledge required to be executed hereunder by the
Borrower over the Earnings Account in such form as the Bank may agree or require;
	 
	 	 	“Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, assignment, title
retention, preferential right, option, trust arrangement or security interest or any other
encumbrance, security or arrangement conferring howsoever a priority of payment in respect
of any obligation of any person;
	 
	 	 	“Environmental Affiliate” means any agent or employee of the Borrower, the Manager, or any
other Group Member or any other person having a contractual relationship with the
Borrower, the Manager or any other Group Member in connection with any Relevant Vessel or
its operation or the carriage of cargo and/or passengers thereon and/or the provision of
goods and/or services on or from any Relevant Vessel;

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	 	 	“Environmental Approval” means any consent, authorisation, licence or approval of any
governmental or public body or authorities or courts applicable to any Relevant Vessel or
its operation or the carriage of cargo and/or passengers thereon and/or the provision of
goods and/or services on or from any Relevant Vessel required under any Environmental Law;
	 
	 	 	“Environmental Claim” means (i) any claim by, or directive from, any applicable
Government Entity alleging breach of, or non-compliance with, any Environmental Laws or
Environmental Approvals or otherwise howsoever relating to or arising out of an
Environmental Incident or (ii) any claim by any other third party howsoever relating to or
arising out of an Environmental Incident (and, in each such case, “claim” shall include a
claim for damages and/or direction for and/or enforcement relating to clean-up costs,
removal, compliance, remedial action or otherwise) or (iii) any Proceedings arising from
any of the foregoing;
	 
	 	 	“Environmental Incident” means, regardless of cause, (i) any actual or threatened
discharge or release of Environmentally Sensitive Material from any Relevant Vessel; (ii)
any incident in which Environmentally Sensitive Material is discharged or released from a
vessel other than a Relevant Vessel which involves collision between a Relevant Vessel and
such other vessel or some other incident of navigation or operation, in either case, where
the Relevant Vessel, the Manager and/or the Borrower and/or the relevant Group Member
and/or the relevant Operator are actually, contingently or allegedly at fault or otherwise
howsoever liable (in whole or in part) or (iii) any incident in which Environmentally
Sensitive Material is discharged or released from a vessel other than a Relevant Vessel
and where such Relevant Vessel is actually or potentially liable to be arrested as a
result and/or where the Manager and/or the Borrower and/or other Group Member and/or the
relevant Operator are actually, contingently or allegedly at fault or otherwise howsoever
liable;
	 
	 	 	“Environmental Laws” means all laws, regulations, conventions and agreements whatsoever
relating to pollution, human or wildlife well-being or protection of the environment
(including, without limitation, the United States Oil Pollution Act of 1990 and any
comparable laws of the individual States of the USA);
	 
	 	 	“Environmentally Sensitive Material” means oil, oil products or any other products or
substance which are polluting, toxic or hazardous or any substance the release of which
into the environment is howsoever regulated, prohibited or penalised by or pursuant to any
Environmental Law;
	 
	 	 	“Event of Default” means any of the events or circumstances listed in clause 10.1;
	 
	 	 	“Execution Date” means the date on which this Agreement has been executed by all the
parties hereto;
	 
	 	 	“Extended Employment Contract” means any time charterparty, contract of affreightment or
other contract of employment of the Vessel (including the entry of the Vessel in any pool)
which has a tenor of not less than twelve (12) months (including any options to renew or
extend such tenor);
	 
	 	 	“Facility Period” means the period starting on the first Drawdown Date and ending on
such date as all obligations whatsoever of all of the Security Parties under or pursuant
to the Security Documents whensoever arising, actual or contingent, have been irrevocably
paid, performed and/or complied with;

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	 	 	“Flag State” means the Republic of Panama or such other state or territory agreed by the
Bank, at the request of the Borrower, as the “Flag State” of the Vessel for the purposes
of the Security Documents;
	 
	 	 	“General Assignment” means, in respect of the Vessel, the deed of assignment of its
earnings, insurances and requisition compensation executed or to be executed by the
Borrower in favour of the Bank in such form as the Bank may require in its sole
discretion;
	 
	 	 	“Government Entity” means any national or local government body, tribunal, court or
regulatory or other agency and any organisation of which such body, tribunal, court or
agency is a part or to which it is subject;
	 
	 	 	“Group” means the Corporate Guarantor and its subsidiaries but excluding any company which
is publicly listed;
	 
	 	 	“Group Member” means any member of the Group;
	 
	 	 	“IACS” means the International Association of Classification Societies;
	 
	 	 	“Indebtedness” means any obligation howsoever arising (whether present or future, actual
or contingent, secured or unsecured as principal, surety or otherwise) for the payment or
repayment of money;
	 
	 	 	“Indenture” means the Indenture dated as of 28 January 2011 issued by the Corporate
Guarantor, Navios Maritime Finance II (US) Inc. and the guarantors party thereto
(including the Borrower) for 8 1/8% Senior Notes due on 15 February 2019;
	 
	 	 	“Indenture Excerpt” means the excerpt from the Indenture set out in Schedule 3;
	 
	 	 	“Interest Payment Date” means the last day of an Interest Period and, if an Interest
Period is longer than 6 months, the date falling at the end of each successive period of 6
months during such Interest Period starting from its commencement;
	 
	 	 	“Interest Period” means each period for the calculation of interest in respect of the Loan
ascertained in accordance with the provisions of clause 3;
	 
	 	 	“ISM Code” means in relation to its application to the Borrower, the Vessel and its
operation:

	 	(a)	 	‘The International Management Code for the Safe Operation of Ships and for
Pollution Prevention’, currently known or referred to as the ‘ISM Code’, adopted by
the Assembly of the International Maritime Organisation by Resolution A.741(18) on 4
December 1993 and incorporated on 19 May 1994 into Chapter IX of the International
Convention for Safety of Life at Sea 1974 (SOLAS 1974); and
	 
	 	(b)	 	all further resolutions, circulars, codes, guidelines, regulations and
recommendations which are now or in the future issued by or on behalf of the
International Maritime Organisation or any other entity with responsibility for
implementing the ISM Code, including, without limitation, the ‘Guidelines on
implementation or administering of the International Safety Management (ISM) Code by
Administrations’ produced by the International Maritime Organisation pursuant to
Resolution A.788(19) adopted on 25 December 1995,

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

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	 	 	“ISM Code Documentation” means, in relation to each Vessel, the document of compliance
(DOC) and safety management certificate (SMC) issued by a Classification Society pursuant
to the ISM Code in relation to such Vessel within the periods specified by the ISM Code;
	 
	 	 	“ISM SMS” means the safety management system which is required to be developed,
implemented and maintained under the ISM Code;
	 
	 	 	“ISPS Code” means the International Ship and Port Security Code of the International
Maritime Organisation and includes any amendments or extensions thereto and any
regulations issued pursuant thereto;
	 
	 	 	“ISSC” means an International Ship Security Certificate issued in respect of a Vessel
pursuant to the ISPS Code;
	 
	 	 	“LIBOR” means, for a particular period, the rate equal to the offered quotation for
deposits in USD in an amount comparable with the amount in relation to which LIBOR is to
be determined for a period equal to, or as near as possible equal to, the relevant period
which appears on Reuters Screen LIBOR01 at or about 11 a.m. on the second Banking Day
before the first day of such period (and, for the purposes of this Agreement, “Reuters
Screen LIBOR01” means the display designated as “LIBOR01” on the Reuters Service or such
other page as may replace LIBOR01 on that service for the purpose of displaying rates
comparable to that rate or on such other service as may be nominated by the British
Bankers’ Association as the information vendor for the purpose of displaying the British
Bankers’ Association Interest Settlement Rates for USD)) or (if the Bank is for any reason
unable to ascertain the rate) the rate determined by the Bank to be that at which deposits
in USD and in an amount comparable with the amount in relation to which LIBOR is to be
determined and for a period equal to the relevant period were being offered by the Bank to
prime banks in the London Interbank Market at or about 11 a.m. on the second Banking Day
before the first day of such period
	 
	 	 	“Loan” means the principal amount borrowed by the Borrower under this Agreement or
(as the context may require) the principal amount owing to the Bank under this Agreement
at any relevant time;
	 
	 	 	“MII & MAP Policy” means a mortgagee’s interest and (if required by the Bank) pollution
risks insurance policy (including additional perils (pollution) cover) in respect of the
Vessel to be effected by the Bank to cover the Vessel as the same may be renewed or
replaced annually thereafter and maintained throughout the Facility Period through such
brokers, with such underwriters and containing such coverage as may be acceptable to the
Bank in its sole discretion, insuring a sum of at least one hundred and twenty per cent
(120%) of the Loan;
	 
	 	 	“Management Agreement” means, in respect of the Vessel, the agreement between the Borrower
and the Manager, in a form previously approved in writing by the Bank;
	 
	 	 	“Manager” means Navios ShipManagement Inc., a company incorporated in the Marshall Islands
and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands, MH96960 or any other person appointed by the Borrower, with the
prior written consent of the Bank, as the manager of the Vessel;

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	 	 	“Manager’s Undertakings” means the undertaking and assignment required to be executed
respectively hereunder by the Manager in favour of the Bank in respect of the Vessel, in
such form as the Bank may require in its sole discretion;
	 
	 	 	“Margin” means 2.75 per cent per annum;
	 
	 	 	“month” means a period beginning in one calendar month and ending in the next
calendar month on the day numerically corresponding to the day of the calendar month on
which it started, provided that (i) if the period started on the last Banking Day in a
calendar month or if there is no such numerically corresponding day, it shall end on the
last Banking Day in the such next calendar month and (ii) if such numerically
corresponding day is not a Banking Day, the period shall end on the next following Banking
Day in the same calendar month but if there is no such Banking Day it shall end on the
preceding Banking Day and “months” and “monthly” shall be construed accordingly;
	 
	 	 	“Mortgage” means the first preferred mortgage of the Vessel required to be executed
hereunder by the Borrower in such form as the Bank may agree or require;
	 
	 	 	“Operator” means any person who is from time to time during the Facility Period concerned
in the operation of a Relevant Vessel and falls within the definition of “Company” set out
in rule 1.1.2 of the ISM Code;
	 
	 	 	“Permitted Encumbrance” means any Encumbrance created pursuant to or expressly permitted
by the Security Documents and Permitted Liens or otherwise permitted by the Bank;
	 
	 	 	“Permitted Liens” means any lien on the Vessel for master’s, officer’s or crew’s wages
outstanding in the ordinary course of trading, any lien for salvage and any ship
repairer’s or outfitter’s possessory lien for a sum not (except with the prior written
consent of the Bank) exceeding the Casualty Amount (as defined in the relevant Mortgage);
	 
	 	 	“Pertinent Jurisdiction” means any jurisdiction in which or where any Security Party is
incorporated, resident, domiciled, has a permanent establishment or assets, carries on, or
has a place of business or is otherwise howsoever effectively connected;
	 
	 	 	“Predelivery Security Assignment” means, in respect of the Vessel, a deed of assignment
of the Shipbuilding Contract and of the Refund Guarantee in respect thereof in such form
as the Bank may agree or require;
	 
	 	 	“Proceedings” means any litigation, arbitration, legal action or complaint or judicial,
quasi-judicial or administrative proceedings whatsoever arising or instigated by anyone in
any court, tribunal, public office or other forum whatsoever and wheresoever (including,
without limitation, any action for provisional or permanent attachment of any thing or for
injunctive remedies or interim relief and any action instigated on an ex parte basis);
	 
	 	 	“Receiving Bank” means Wachovia Bank of New York, USA or such other bank as may from time
to time be notified by the Bank to the Borrower;
	 
	 	 	“Registry” means, in relation to each Vessel, the office of the registrar, commissioner or
representative of the Flag State, who is duly empowered to register such Vessel, the
Borrower’s title thereto and the relevant Mortgage under the laws and flag of the Flag
State;

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	 	 	“Relevant Vessel” means the Vessel and any other ship from time to time (whether before or
after the date of this Agreement) owned, managed or crewed by, or chartered to, any Group
Member;
	 
	 	 	“Repayment Dates” means, subject to clause 6.3, each of the dates falling at six monthly
intervals after the Drawdown Date in respect of the Advance referred to in Clause 2.3.1
(d), up to and including the date falling 120 months after such Drawdown Date;
	 
	 	 	“Required Authorisation” means any authorisation, consent, declaration, licence, permit,
exemption, approval or other document, whether imposed by or arising in connection with
any law, regulation, custom, contract, security or otherwise howsoever which must be
obtained at any time from any person, Government Entity or central bank or other
self-regulating or supra-national authority in order to enable the Borrower lawfully to
draw the Loan and/or to enable any Security Party lawfully and continuously to continue
its corporate existence and/or perform all its obligations whatsoever whensoever arising
and/or grant security under the relevant Security Documents and/or to ensure the
continuous validity and enforceability thereof;
	 
	 	 	“Required Security Amount” means the amount in USD (as certified by the Bank) which is at
any relevant time (i) for five years following the Delivery Date, 115% of the Loan and
(ii) thereafter 125% of the Loan;
	 
	 	 	“Retention Account” means, an interest bearing USD account in the name of the Borrower
opened or (as the context may require) to be opened by the Borrower with the Bank and
includes any sub-accounts thereof and any other account designated in writing by the Bank
to be the Retention Account for the purposes of this Agreement;
	 
	 	 	“Retention Account Pledge” means the pledge required to be executed hereunder by the
Borrower over the Retention Account in such form as the Bank may agree or require;
	 
	 	 	“Retention Amount” means, in relation to any Retention Date, such sum as shall be the
aggregate of:

	 	(c)	 	one-sixth (1/6th) of the repayment instalment falling due for payment
pursuant to clause 4.1 (as the same may have been reduced by any prepayment) on the
next Repayment Date after the relevant Retention Date; and
	 
	 	(d)	 	the applicable fraction (as hereinafter defined) of the aggregate amount of
interest falling due for payment during and at the end of each Interest Period in
respect thereof current at the relevant Retention Date and, for this purpose, the
expression “applicable fraction” in relation to each Interest Period shall mean a
fraction having a numerator of one and a denominator equal to the number of Retention
Dates falling within the relevant Interest Period;

	 	 	“Retention Dates” means the date falling thirty (30) days after the Delivery Date and each
of the dates falling at monthly intervals after such date and prior to the final Repayment
Date;
	 
	 	 	“Security Documents” means this Agreement, the Predelivery Security Assignment, the
Mortgage, the General Assignment, the Charter Assignment, the Charter Insurance
Assignment, the Earnings Account Pledge, the Retention Account Pledge, the Corporate
Guarantee, the Managers Undertaking and any other documents as may have been or shall from
time to time after the date of this Agreement be executed in favour of the Bank to

10

 

	 	 	guarantee and/or to govern and/or to secure payment of all or any part of the Loan,
interest thereon and other moneys from time to time owing by the Borrower pursuant to this
Agreement (whether or not any such document also guarantees and/or secures moneys from
time to time owing pursuant to any other document or agreement);
	 
	 	 	“Security Party” means the Borrower, the Corporate Guarantor, the Manager or any other
person who may at any time be a party to any of the Security Documents (other than the
Bank);
	 
	 	 	“Security Value” means the amount in USD (as certified by the Bank) which, at any relevant
time, is the aggregate of (i) the Valuation Amount of the Vessel as most recently
determined in clause 8.2.2 and (ii) the market value of any additional security (or, in
the case of cash Dollars, its face value) the at that time held by the Bank and provided
under clause 8.2.1 or otherwise;
	 
	 	 	“Shareholder” means, Anemos Maritime Holdings Inc., a company incorporated in the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands, MH96960;
	 
	 	 	“Ship Security Documents” means in relation to each Vessel, the Mortgage, the General
Assignment and the Manager’s Undertaking in respect of such Vessel;
	 
	 	 	“Taxes” includes all present and future income, corporation, capital or value-added taxes
and all stamp and other taxes and levies, imposts, deductions, duties, charges and
withholdings whatsoever together with interest thereon and penalties in respect thereto,
if any, and charges, fees or other amounts made on or in respect thereof (and “Taxation”
shall be construed accordingly);
	 
	 	 	“Total Loss” means, in respect of the Vessel:

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

	 	 	“Transferee” is defined in clause 15.4; and
	 
	 	 	“U.S.” means the United States of America;
	 
	 	 	“Unlawfulness” means any event or circumstance which either is or, as the case may be,
might in the reasonable opinion of the Bank become the subject of a notification by the
Bank to the Borrower under clause 12.1; and
	 
	 	 	“Underlying Documents” means, together, the Purchase Agreement, the Shipbuilding Contract,
the Refund Guarantee, any Extended Employment Contracts and the Management Agreement;

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	 	 	“Valuation Amount” means the value of the Vessel as most recently determined under clause
8.2.2; and
	 
	 	 	“Valuation (charter-free) Amount” means the value of the Vessel as most recently
determined under clause 8.2.2, but without taking into account any charterparty to which
the Vessel is subject.
	 
	 	 	Words and expressions defined in Schedule 4 (Vessel Details) shall have the meanings given
to them therein as if the same were set out in full in this clause 1.2.
	 
	1.3	 	Construction
	 
	 	 	In this Agreement, unless the context otherwise requires:
	 
	1.3.1	 	clause headings and the index are inserted for convenience of reference only and shall be
ignored in the construction of this Agreement;
	 
	1.3.2	 	references to clauses and schedules are to be construed as references to clauses of, and
schedules to, this Agreement and references to this Agreement include its schedules;
	 
	1.3.3	 	references to (or to any specified provision of) this Agreement or any other document shall
be construed as references to this Agreement, that provision or that document as in force for
the time being and as duly amended and/or supplemented and/or novated;
	 
	1.3.4	 	references to a “regulation” include any present or future regulation, rule, directive,
requirement, request or guideline (whether or not having the force of law) of any Government
Entity, central bank or any self-regulatory or other supra-national authority;
	 
	1.3.5	 	references to any person in or party to this Agreement shall include reference to such
person’s lawful successors and assigns and references to the Bank shall also include a
Transferee;
	 
	1.3.6	 	words importing the plural shall include the singular and vice versa;
	 
	1.3.7	 	references to a time of day are, unless otherwise stated, to London time;
	 
	1.3.8	 	references to a person shall be construed as references to an individual, firm, company,
corporation or unincorporated body of persons or any Government Entity;
	 
	1.3.9	 	references to a “guarantee” include references to an indemnity or any other kind of
assurance whatsoever (including, without limitation, any kind of negotiable instrument, bill
or note) against financial loss or other liability including, without limitation, an
obligation to purchase assets or services as a consequence of a default by any other person to
pay any Indebtedness and “guaranteed” shall be construed accordingly;
	 
	1.3.10	 	references to any statute or other legislative provision are to be construed as references
to any such statute or other legislative provision as the same may be re enacted or modified
or substituted by any subsequent statute or legislative provision (whether before or after the
date hereof) and shall include any regulations, orders, instruments or other subordinate
legislation issued or made under such statute or legislative provision;
	 
	1.3.11	 	a certificate by the Bank as to any amount due or calculation made or any matter whatsoever
determined in connection with this Agreement shall be conclusive and binding on the Borrower
except for manifest error;

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	1.3.12	 	if any document, term or other matter or thing is required to be approved, agreed or
consented to by the Bank such approval, agreement or consent must be obtained in writing
unless the contrary is stated;
	 
	1.3.13	 	time shall be of the essence in respect of all obligations whatsoever of the Borrower under
this Agreement, howsoever and whensoever arising; and
	 
	1.3.14	 	the words “other” and “otherwise” shall not be construed eiusdem generis with any foregoing
words where a wider construction is possible.
	 
	1.4	 	Accounting Terms and references to currencies
	 
	 	 	All accounting terms not otherwise defined in this Agreement shall have the meanings
assigned to them in accordance with generally accepted international accounting principles
(or such other accounting principles as the Bank deems appropriate).
	 
	1.5	 	Contracts (Rights of Third Parties Act) 1999
	 
	 	 	Except for clause 18.6.4 no part of this Agreement shall be enforceable under the
Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this
Agreement.
	 
	2	 	THE BANK’S COMMITMENT, ADVANCE AND USE OF PROCEEDS
	 
	2.1	 	The Commitment
	 
	 	 	In reliance upon each of the representations and warranties in clause 7, the Bank agrees
to pay to the Builder by way of loan to the Borrower on the terms of this Agreement the
principal sum of up to USD23,000,000 in up to four Advances.
	 
	2.2	 	Advance
	 
	 	 	On the terms and subject to the conditions of this Agreement, the Loan shall be advanced
in up to four (4) Advances on the relevant Drawdown Dates following receipt by the Bank
from the Borrower of Drawdown Notices not later than 10 a.m. on the second Banking Day
before each proposed Drawdown Date. A Drawdown Notice shall be effective on actual
receipt by the Bank and, once given, shall, subject as provided in clause 3.6.1, be
irrevocable.
	 
	2.3	 	Amount
	 
	2.3.1	 	The principal amount specified in each Drawdown Notice for borrowing on the Drawdown Dates
shall, subject to the terms of this Agreement, not exceed:

	 	(a)	 	USD11,380,000 in respect of the instalment payable by the Borrower to the
Builder under the Shipbuilding Contract after the Refund Guarantee has been issued;
	 
	 	(b)	 	USD4,752,000 in respect of the steel cutting instalment payable by the
Borrower to the Builder under the Shipbuilding Contract;
	 
	 	(c)	 	USD4,752,000 in respect of the keel laying instalment payable by the
Borrower to the Builder under the Shipbuilding Contract;

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	 	(d)	 	the lesser of (i) USD2,116,000 and (ii) such amount as when added to the
already drawn Advances will be 65% of the Valuation (charter-free) Amount of the
Vessel as at her Delivery Date.

	2.4	 	Availability
	 
	 	 	Upon receipt of a Drawdown Notice complying with the terms of this Agreement the Bank
shall, subject to the provisions of clause 9, make each Advance available to the Borrower
on the relevant Drawdown Date in accordance with clause 2.2. The Borrower acknowledges
that payment of each Advance to the Builder in accordance with clause 2.2 shall satisfy
the obligation of the Bank to lend that part of the Commitment to the Borrower under this
Agreement.
	 
	2.5	 	Cancellation
	 
	 	 	If any part of the Loan is not drawn down by the end of the Drawdown Period, the
Commitment shall thereupon be automatically cancelled and the Bank shall have no further
obligation under this Agreement.
	 
	2.6	 	Use of Proceeds
	 
	 	 	Without prejudice to the Borrower’s obligations under clause 8.1.4, the Bank shall have no
responsibility for the Borrower’s use of the proceeds of the Loan.
	 
	3	 	INTEREST AND INTEREST PERIODS
	 
	3.1	 	Normal interest rate
	 
	 	 	The Borrower agrees to pay interest on the Loan in respect of each Interest Period
relating thereto on each Interest Payment Date (or, in the case of Interest Periods of
more than six (6) months, by instalments, the first six (6) months from the commencement
of the Interest Period and the subsequent instalments at intervals of six (6) months) at
the rate per annum determined by the Bank to be the aggregate of (a) the Margin and (b)
LIBOR for such period.
	 
	3.2	 	Selection of Interest Periods
	 
	 	 	The Borrower may by notice received by the Bank not later than 10 a.m. on the second
Banking Day before the start of each Interest Period request that such Interest Period
shall have a length of three (3), six (6) or twelve (12) months or such other longer
period as the Borrower may select and the Bank may, subject to the same being available in
the London Interbank Market, agree.
	 
	3.3	 	Determination of Interest Periods
	 
	 	 	The length of each Interest Period shall be as requested by the Borrower under clause 3.2
but so that:
	 
	3.3.1	 	the first Interest Period shall start on the Drawdown Date in respect of the first Advance
and each subsequent Interest Period shall start on the last day of the previous Interest
Period;
	 
	3.3.2	 	the first Interest Period in respect of each subsequent Advance shall commence on its
Drawdown Date and terminate simultaneously with the Interest Period which is then current;

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

	 	(a)	 	that adequate and fair means do not exist for determining LIBOR during such
Interest Period; or
	 
	 	(b)	 	that deposits in USD are not available to the Bank in the London Interbank
Market in its ordinary course of business in sufficient amounts to fund the Loan for
such Interest Period;

15

 

	 	 	the Bank shall promptly give notice (a “Determination Notice”) thereof to the Borrower. A
Determination Notice shall give brief details of the circumstances giving rise to its
issue. After the giving of any Determination Notice any undrawn amount of the Commitment
may not be borrowed until notice to the contrary is given to the Borrower by the Bank;
	 
	3.6.2	 	upon a Determination Notice being given, the Borrower and the Bank shall discuss the same in
order to agree an alternative basis for maintaining the Loan, but if they are unable to agree
an alternative basis within 30 days of the date of the Determination Notice, then 40 after the
Determination Notice being given, the Bank shall certify an alternative (such basis, or if
agreed, the basis agreed by the Bank and the Borrower, the “Substitute Basis”) for maintaining
the Loan. The Substitute Basis may include alternative interest periods, alternative
currencies or alternative rates of interest but must include a margin above the cost of funds
to the Bank equivalent to the Margin. Each Substitute Basis certified to the Borrower or
agreed shall take effect in accordance with its terms from the date specified in the
Determination Notice until such time as the Bank notifies the Borrower that none of the
circumstances specified in clause 3.6.1 continues to exist whereupon the normal interest rate
fixing provisions of this Agreement shall again apply. If the Borrower does not agree with
any Substitute Basis certified by the Bank if there is no agreement between the parties, then
the Borrower may prepay the Loan or the relevant part thereof, and the terms of Clause 4.5 and
4.6 shall apply to any such prepayment
	 
	4	 	REPAYMENT AND PREPAYMENT
	 
	4.1	 	Repayment
	 
	 	 	Subject as otherwise provided in this Agreement, the Borrower must repay the Loan by 20
instalments, one such instalment to be repaid on each of the Repayment Dates and the
balloon instalment referred to hereafter will also be repaid on the relevant final
Repayment Date. Subject to the provisions of this Agreement, the amount of:

	 	(i)	 	the first 20 instalments will be USD750,000 each; and
	 
	 	(ii)	 	the balloon instalment will be USD8,000,000.

	 	 	If the Commitment is not drawn in full, the amount of each repayment instalment (including
the balloon instalment) shall be reduced proportionately.
	 
	4.2	 	Voluntary prepayment
	 
	 	 	The Borrower may prepay the Loan in whole or part (being USD500,000 or any larger sum
which is a whole multiple of USD500,000) on any Interest Payment Date relating to the part
of the Loan to be repaid without premium or penalty.
	 
	4.3	 	Mandatory Prepayment on Total Loss
	 
	 	 	On the date falling ninety (90) days after that on which the Vessel became a Total Loss
or, if earlier, on the date upon which the relevant insurance proceeds are, or Requisition
Compensation (as defined in the Mortgage for such Vessel) is, received by the Borrower (or
the Bank pursuant to the Security Documents), the Borrower must prepay the Loan.
	 
	4.3.1	 	Interpretation
	 
	 	 	For the purpose of this Agreement, a Total Loss shall be deemed to have occurred:

16

 

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

	4.4	 	Mandatory prepayment on sale of the Vessel
	 
	 	 	On the date of completion of the sale of the Vessel the Borrower must prepay the Loan.
	 
	4.5	 	Amounts payable on prepayment
	 
	 	 	Any prepayment of all or part of the Loan under this Agreement shall be made together with:
	 
	4.5.1	 	accrued interest on the amount to be prepaid to the date of such prepayment;
	 
	4.5.2	 	any additional amount payable under clauses 6.6 or 11.2; and
	 
	4.5.3	 	all other sums payable by the Borrower to the Bank under this Agreement or any of the other
Security Documents including, without limitation, any accrued commitment commission payable
under clause 5.1 and any Break Costs.
	 
	4.6	 	Notice of prepayment; reduction of repayment instalments
	 
	4.6.1	 	No prepayment may be effected under clause 4.2 unless the Borrower shall have given the Bank
at least fifteen (15) days’ prior written notice of their intention to make such prepayment.
Every notice of prepayment shall be effective only on actual receipt by the Bank,

17

 

	 	 	shall be irrevocable, shall specify the amount to be prepaid and shall oblige the Borrower
to make such prepayment on the date specified.
	 
	4.6.2	 	Any amounts prepaid pursuant to clause 4.2 shall be applied against the Loan in reducing the
Balloon Instalment and thereafter the repayment instalments in inverse order of their
maturity.
	 
	4.6.3	 	The Borrower may not prepay any part of the Loan except as expressly provided in this Agreement.
	 
	4.6.4	 	No amount prepaid may be reborrowed.
	 
	5	 	COMMITMENT COMMISSION, FEES AND EXPENSES
	 
	5.1	 	Fees
	 
	 	 	The Borrower agrees to pay to the Bank:
	 
	5.1.1	 	on the date of this Agreement, a non-refundable arrangement fee of USD200,000; and
	 
	5.1.2	 	on the date of this Agreement and on each of the dates falling at three (3) monthly
intervals commencing on the date falling three (3) months after the date of this Agreement
until the end of the Drawdown Period, commitment commission computed from 18 August 2011 (in
the case of the first payment of commission) and from the date of the preceding payment of
commission (in the case of each subsequent payment) at the rate of one per cent. (1%) per
annum on the daily undrawn maximum available Commitment.
	 
	 	 	The fee referred to in clause 5.1.1 and the commitment commission referred to in clause
5.1.2 must be paid by the Borrower to the Bank regardless of whether any part of the
Commitment is ever advanced.
	 
	5.2	 	Expenses
	 
	 	 	The Borrower agrees to reimburse the Bank on a full indemnity basis on demand for all
expenses and/or disbursements whatsoever certified by the Bank as having been incurred by
it from time to time and at any time:
	 
	5.2.1	 	in connection howsoever with the negotiation, preparation, execution and, where relevant,
registration of the Security Documents and of any contemplated or actual amendment, indulgence
or the granting of any waiver or consent howsoever in connection with any of the Security
Documents; and
	 
	5.2.2	 	in contemplation or furtherance of, or otherwise howsoever in connection with, the exercise
or enforcement of, or preservation of any rights, powers, remedies or discretion under any of
the Security Documents or any amendment thereto or consideration of the Bank’s rights
thereunder or any action proposed or taken with interest at the rate referred to in clause 3.4
from the date on which such expenses and/or disbursements were incurred to the date of payment
(as well after as before judgment).
	 
	5.3	 	Value Added Tax
	 
	 	 	All fees and expenses payable under to this clause 5 must be paid with value added tax or
any similar tax (if any) properly chargeable thereon. Any value added tax chargeable in
respect of

18

 

	 	 	any services supplied by the Bank under this Agreement must, on delivery of the value
added tax invoice, be paid in addition to any sum agreed to be paid hereunder.
	 
	5.4	 	Stamp and other duties
	 
	 	 	The Borrower must pay all stamp, documentary, registration or other like duties or taxes
(including any duties or taxes payable by the Bank) imposed on or in connection with any
of the Shipbuilding Contract, the Management Agreement, the Security Documents or the Loan
and agree to indemnify the Bank against any liability arising by reason of any delay or
omission by the Borrower to pay such duties or taxes.
	 
	6	 	PAYMENTS AND TAXES; ACCOUNTS AND CALCULATIONS
	 
	6.1	 	No set-off or counterclaim
	 
	 	 	All payments to be made by the Borrower under any of the Security Documents must be made
in full, without any set-off or counterclaim whatsoever and, subject to clause 6.6, free
and clear of any deductions or withholdings, in USD not later than 11 a.m. London time on
the due date to the account of the Bank at the Receiving Bank or to such other account at
such other bank in such place as the Bank may from time to time notify to the Borrower.
	 
	6.2	 	Payment by the Bank
	 
	 	 	The proceeds of the Loan to be advanced by the Bank to the Borrower under this Agreement
must be remitted in USD on the relevant Drawdown Date to the account or accounts specified
in the relevant Drawdown Notice.
	 
	6.3	 	Non-Banking Days
	 
	 	 	When any payment under any of the Security Documents would otherwise be due on a day which
is not a Banking Day, the due date for payment shall be extended to the next following
Banking Day unless such Banking Day falls in the next calendar month in which case payment
shall be made on the immediately preceding Banking Day.
	 
	6.4	 	Calculations
	 
	 	 	All interest and other payments of an annual nature under any of the Security Documents
shall accrue from day to day and be calculated on the basis of actual days elapsed and a
360 day year.
	 
	6.5	 	Currency of account
	 
	 	 	If any sum due from the Borrower under any of the Security Documents, or under any order
or judgment given or made in relation thereto or for any other reason whatsoever, must be
converted from the currency (“the first currency”) in which the same is payable thereunder
into another currency (“the second currency”) for the purpose of (i) making or filing a
claim or proof against the Borrower, (ii) obtaining an order or judgment in any court or
other tribunal or (iii) enforcing any order or judgment given or made in relation thereto,
the Borrower undertakes to indemnify and hold harmless the Bank from and against any loss
suffered as a result of any discrepancy between (a) the rate of exchange used for such
purpose to covert the sum in question from the first currency into the second currency and
(b) the rate or rates of exchange at which the Bank may in the ordinary course of business
purchase the first currency with the second currency upon receipt of a sum paid to it in
satisfaction, in

19

 

	 	 	whole or in part, of any such order, judgment, claim or proof. Any amount due from the
Borrower under this clause 6.5 shall be due as a separate debt and shall not be affected
by judgment being obtained for any other sums due under or in respect of any of the
Security Documents and the term “rate of exchange” includes any premium and costs of
exchange payable in connection with the purchase of the first currency with the second
currency.
	 
	6.6	 	Grossing-up for Taxes
	 
	 	 	If at any time the Borrower must make any deduction or withholding in respect
of Taxes from any payment due under any of the Security Documents, the sum due from
the Borrower in respect of such payment must then be increased to the extent
necessary to ensure that, after the making of such deduction or withholding, the Bank
receives on the due date for such payment (and retains, free from any liability in
respect of such deduction or withholding), a net sum equal to the sum which it would
have received had no such deduction or withholding been made and the Borrower agrees
to indemnify the Bank on demand against any losses or costs certified by the Bank to
have been incurred by it by reason of any failure of the Borrower to make any such
deduction or withholding or by reason of any increased payment not being made on the
due date for such payment. The Borrower must promptly deliver to the Bank any
receipts, certificates or other proof evidencing the amounts (if any) paid or payable
in respect of any deduction or withholding as aforesaid.
	 
	6.7	 	Loan account
	 
	 	 	The Bank agrees to maintain a control account showing the Loan and other sums owing by the
Borrower under the Security Documents and all payments in respect thereof being made from
time to time. The control account shall, in the absence of manifest error, be conclusive
as to the amount from time to time owing by the Borrower under the Security Documents.
	 
	6.8	 	Bank may assume receipt
	 
	 	 	Where any sum is to be paid under the Security Documents to the Bank, the Bank may assume
that the payment will be made when due and the Bank may (but shall not be obliged to) make
such sum available to the person so entitled. If it proves to be the case that such
payment was not made to the Bank, then the person to whom such sum was so made available
must on request refund such sum to the Bank together with interest thereon sufficient to
compensate the Bank for the cost of making available such sum up to the date of such
repayment and the person by whom such sum was payable must indemnify the Bank for any and
all loss or expense which the Bank may sustain or incur as a consequence of such sum not
having been paid on its due date.
	 
	6.9	 	Partial payments
	 
	 	 	If, on any date on which a payment is due to be made by the Borrower under any of the
Security Documents, the amount received by the Bank from the Borrower falls short of the
total amount of the payment due to be made by the Borrower on such date then, without
prejudice to any rights or remedies available to the Bank under any of the Security
Documents, the Bank must apply the amount actually received from the Borrower in or
towards discharge of the obligations of the Borrower under the Security Documents in the
following order, notwithstanding any appropriation made, or purported to be made, by the
Borrower:

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	6.9.1	 	first, in or towards payment, on a pro-rata basis, of any unpaid costs and expenses of the
Bank under any of the Security Documents;
	 
	6.9.2	 	secondly, in or towards payment of any fees payable to the Bank under, or in relation to,
the Security Documents which remain unpaid;
	 
	6.9.3	 	thirdly, in or towards payment to the Bank of any accrued interest owing in respect of the
Loan which shall have become due under any of the Security Documents but remains unpaid;
	 
	6.9.4	 	fourthly, in or towards payment to the Bank of any principal in respect of the Loan which
shall have become due but remains unpaid;
	 
	6.9.5	 	fifthly, in or towards payment to the Bank for any loss suffered by reason of any such
payment in respect of principal not being effected on an Interest Payment Date relating to the
part of the Loan repaid and which amounts are so payable under this Agreement; and
	 
	6.9.6	 	sixthly, in or towards payment to the relevant person of any other sum which shall have
become due under any of the Security Documents but remains unpaid (and, if more than one such
sum so remains unpaid, on a pro rata basis).
	 
	 	 	The order of application set out in clauses 6.9.1 to 6.9.6 may be varied by the Bank
without any reference to, or consent or approval from, the Borrower..
	 
	7	 	REPRESENTATIONS AND WARRANTIES

7.1 Continuing representations and warranties
	 
	 	 	The Borrower represents and warrants to the Bank that:
7.1.1 Due incorporation
	 
	 	 	each of the Security Parties is duly incorporated and validly existing in good standing,
under the laws of its respective country of incorporation, in each case, as a corporation
and has power to carry on its respective businesses as it is now being conducted and to
own their respective property and other assets to which it has unencumbered legal and
beneficial title except as disclosed to the Bank in writing;
	 
	7.1.2	 	Corporate power
	 
	 	 	each of the Security Parties has power to execute, deliver and perform its obligations
and, as the case may be, to exercise its rights under the Underlying Documents and the
Security Documents to which it is a party; all necessary corporate, shareholder and other
action has been taken to authorise the execution, delivery and on the execution of the
Security Documents performance of the same and no limitation on the powers of the Borrower
to borrow or any other Security Party to howsoever incur liability and/or to provide or
grant security will be exceeded as a result of borrowing any part of the Loan;
	 
	7.1.3	 	Binding obligations
	 
	 	 	the Underlying Documents and the Security Documents, when executed, will constitute valid
and legally binding obligations of the relevant Security Parties enforceable in accordance
with their respective terms;

21

 

	7.1.4	 	No conflict with other obligations
	 
	 	 	the execution and delivery of, the performance of their obligations under, and compliance
with the provisions of, the Underlying Documents and the Security Documents by the
relevant Security Parties will not (i) contravene any existing applicable law, statute,
rule or regulation or any judgment, decree or permit to which any Security Party or other
member of the Group is subject, (ii) conflict with, or result in any breach of any of the
terms of, or constitute a default under, any agreement or other instrument to which any
Security Party or any other member of the Group is a party or is subject or by which it or
any of its property is bound, (iii) contravene or conflict with any provision of the
constitutional documents of any Security Party or (iv) result in the creation or
imposition of, or oblige any of the Security Parties to create, any Encumbrance (other
than a Permitted Encumbrance) on any of the undertakings, assets, rights or revenues of
any of the Security Parties;
	 
	7.1.5	 	No default
	 
	 	 	no Default has occurred;
	 
	7.1.6	 	No litigation or judgments
	 
	 	 	no Proceedings are current, pending or, to the knowledge of the officers of the Borrower,
threatened against any of the Security Parties or any other Group Members or their assets
which could have a material adverse effect and there exist no judgments, orders,
injunctions which would materially affect the obligations of the Security Parties under
the Security Documents;
	 
	7.1.7	 	No filings required
	 
	 	 	except for the registration of the Mortgages in the relevant register under the laws of
the relevant Flag State through the relevant Registry, it is not necessary to ensure the
legality, validity, enforceability or admissibility in evidence of any of the Underlying
Documents or any of the Security Documents that they or any other instrument be notarised,
filed, recorded, registered or enrolled in any court, public office or elsewhere in any
Pertinent Jurisdiction or that any stamp, registration or similar tax or charge be paid in
any Pertinent Jurisdiction on or in relation to any of the Underlying Documents or the
Security Documents and each of the Underlying Documents and the Security Documents is in
proper form for its enforcement in the courts of each Pertinent Jurisdiction;
	 
	7.1.8	 	Required Authorisations and legal compliance
	 
	 	 	all Required Authorisations have been obtained or effected and are in full force and
effect and no Security Party has in any way contravened any applicable law, statute, rule
or regulation (including all such as relate to money laundering);
	 
	7.1.9	 	Choice of law
	 
	 	 	the choice of English law to govern the Underlying Documents and the Security Documents
(other than the Mortgages, the Earnings Account Pledge and the Retention Account Pledge),
the choice of the law of the Flag State to govern the Mortgages, the choice of Greek law
to govern the Earnings Account Pledge and the Retention Account Pledge and the submissions
by the Security Parties to the jurisdiction of the English courts and the obligations of
such Security Parties associated therewith, are valid and binding;

22

 

	7.1.10	 	No immunity
	 
	 	 	no Security Party nor any of their assets is entitled to immunity on the grounds of
sovereignty or otherwise from any Proceedings whatsoever;
	 
	7.1.11	 	Financial statements correct and complete
	 
	 	 	the latest audited and unaudited consolidated financial statements of the Corporate
Guarantor in respect of the relevant financial year as delivered to the Bank and present
or will present fairly and accurately the financial position of the Corporate Guarantor
and the consolidated financial position of the Group as at the date thereof and the
results of the operations of the Corporate Guarantor and the consolidated results of the
operations of the Group for the financial year ended on such date and, as at such date,
neither the Corporate Guarantor nor any of its subsidiaries (excluding any publicly listed
subsidiaries) had any significant liabilities (contingent or otherwise) or any unrealised
or anticipated losses which are not disclosed by, or reserved against or provided for in,
such financial statements;
	 
	7.1.12	 	Pari passu
	 
	 	 	the obligations of the Borrower under this Agreement are direct, general and unconditional
obligations of the Borrower and rank at least pari passu with all other present and future
unsecured and unsubordinated Indebtedness of the Borrower except for obligations which are
mandatorily preferred by operation of law and not by contract;
	 
	7.1.13	 	Information
	 
	 	 	all information, whatsoever provided by any Security Party to the Bank in connection with
the negotiation and preparation of the Security Documents or otherwise provided hereafter
in relation to, or pursuant to this Agreement is, or will be, true and accurate in all
material respects and not misleading, does or will not omit material facts and all
reasonable enquiries have been, or shall have been, made to verify the facts and
statements contained therein; there are, or will be, no other facts the omission of which
would make any fact or statement therein misleading;
	 
	7.1.14	 	No withholding Taxes
	 
	 	 	no Taxes anywhere are imposed whatsoever by withholding or otherwise on any payment to be
made by any Security Party under the Underlying Documents or the Security Documents to
which such Security Party is or is to be a party or are imposed on or by virtue of the
execution or delivery by the Security Parties of the Underlying Documents or the Security
Documents or any other document or instrument to be executed or delivered under any of the
Security Documents;
	 
	7.1.15	 	Indenture
	 
	 	 	The entry by the Borrower into this Agreement, and their borrowing of the Loan
hereunder , and the execution by the Corporate Guarantor of the Corporate Guarantee do not
breach Section 4.10 or any other provision of the Indenture;.
	 
	7.1.16	 	Use of proceeds
	 
	 	 	the Borrower shall apply the Loan only for the purposes specified in clause 2.1;

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	7.1.17	 	The Vessel
	 
	 	 	throughout the Facility Period, the Vessel will, following its Delivery date, be :

	 	(a)	 	in the absolute sole, legal and beneficial ownership of the Borrower;
	 
	 	(b)	 	registered through the offices of the relevant Registry as a ship under the
laws and flag of the relevant Flag State;
	 
	 	(c)	 	in compliance with the ISM Code and the ISPS Code and operationally
seaworthy and in every way fit for service;
	 
	 	(d)	 	in good and sea-worthy and cargo-worthy condition; and
	 
	 	(e)	 	classed with the relevant Classification free of all outstanding
requirements and recommendations of the relevant Classification Society.

	7.1.18	 	Vessel’s employment
	 
	 	 	except with the prior written consent of the Bank, there will not be any agreement or
arrangement whereby the Earnings (as defined in the relevant Ship Security Documents) of
the Vessel may be shared or pooled howsoever with any other person;
	 
	7.1.19	 	Freedom from Encumbrances
	 
	 	 	neither the Vessel nor its Earnings, Insurances or Requisition Compensation (each as
defined in the relevant Ship Security Documents) nor the Earnings Account or the Retention
Account nor any Extended Employment Contract in respect of the Vessel nor any other
properties or rights which are, or are to be, the subject of any of the Security Documents
nor any part thereof will be subject to any Encumbrance except Permitted Encumbrances;
	 
	7.1.20	 	Environmental Matters
	 
	 	 	except as may already have been disclosed by the Borrower in writing to, and acknowledged
and accepted in writing by, the Bank:

	 	(a)	 	the Borrower and, to the best of the Borrower’s knowledge and belief
(having made due enquiry), their respective Environmental Affiliates, have complied
with the provisions of all Environmental Laws;
	 
	 	(b)	 	the Borrower and, to the best of the Borrower’s knowledge and belief
(having made due enquiry), their respective Environmental Affiliates have obtained
all Environmental Approvals and are in compliance with all such Environmental
Approvals;
	 
	 	(c)	 	no Environmental Claim has been made or threatened or pending against the
Borrower, or, to the best of the Borrower’s knowledge and belief (having made due
enquiry), any of their respective Environmental Affiliates; and
	 
	 	(d)	 	there has been no Environmental Incident;

24

 

	7.1.21	 	ISM and ISPS Code
	 
	 	 	each of the Borrower has complied with and continues to comply with and has procured that
the Manager has complied with and continues to comply with the ISM Code, the ISPS Code and
all other statutory and other requirements relative to its business and in particular the
Borrower or the Manager has obtained and maintains a valid DOC and SMC for the Vessel and
that it and the Manager has implemented and continues to implement an ISM SMS;
	 
	7.1.22	 	Copies true and complete
	 
	 	 	the Certified Copies or originals of the Underlying Documents delivered or to be delivered
to the Bank pursuant to clause 8.1 are, or will when delivered be, true and complete
copies or, as the case may be, originals of such documents; and such documents constitute
valid and binding obligations of the parties thereto enforceable in accordance with their
respective terms and there have been no amendments or variations thereof or defaults
thereunder;
	 
	7.1.23	 	the Borrower are the ultimate beneficiaries of the Loan;
	 
	7.1.24	 	no Security Party has incurred any Indebtedness save under the Indenture, this Agreement or
as otherwise disclosed by the Corporate Guarantor in its filings to the SEC from time to time;
	 
	7.1.25	 	the Corporate Guarantor and the Borrower have filed all tax and other fiscal returns
required to be filed by any tax authority to which they are subject;
	 
	7.1.26	 	the Borrower does not have an office in England.
	 
	7.2	 	Repetition of representations and warranties
	 
	 	 	On each day throughout the Facility Period the Borrower shall be deemed to repeat the
representations and warranties in clause 7 updated mutatis mutandis as if made with
reference to the facts and circumstances existing on such day.
	 
	8	 	UNDERTAKINGS
	 
	8.1	 	General
	 
	 	 	The Borrower undertakes with the Bank that, from the Execution Date until the end of the
Facility Period, they will:
	 
	8.1.1	 	Notice of Default and Proceedings
	 
	 	 	promptly inform the Bank of (a) any Default (including the occurrence of any Event of
Default under (and as defined in) the Indenture, in which case the Borrower shall also
provide to the Bank copies of all demands or notices made in connection therewith) and of
any other circumstances or occurrence which might adversely affect the ability of any
Security Party to perform its obligations under any of the Security Documents and (b) as
soon as the same is instituted or threatened, details of any Proceedings involving any
Security Party which could have a material adverse effect on that Security Party and/or
the operation of the Vessel (including, but not limited to any Total Loss of the Vessel or
the occurrence of any Environmental Incident) and will from time to time, if so requested
by the Bank, confirm to the Bank in writing that, save as otherwise stated in such
confirmation, no Default has occurred and is continuing and no such Proceedings are on
foot or threatened;

25

 

	8.1.2	 	Authorisation
	 
	 	 	obtain or cause to be obtained, maintain in full force and effect and comply fully with
all Required Authorisations, provide the Bank with Certified Copies of the same and do, or
cause to be done, all other acts and things which may from time to time be necessary or
desirable under any applicable law (whether or not in the Pertinent Jurisdiction) for the
continued due performance of all the obligations of the Security Parties under each of the
Security Documents;
	 
	8.1.3	 	Corporate Existence
	 
	 	 	ensure that each Security Party maintains its corporate existence as a body corporate duly
organised and validly existing and in good standing under the laws of the Pertinent
Jurisdiction;
	 
	8.1.4	 	Use of proceeds
	 
	 	 	use the Advances exclusively for the purposes specified in clauses 1.1 and 2.1;
	 
	8.1.5	 	Pari passu
	 
	 	 	ensure that their obligations under this Agreement shall at all times rank at least pari
passu with all their other present and future unsecured and unsubordinated Indebtedness
with the exception of any obligations which are mandatorily preferred by law and not by
contract;
	 
	8.1.6	 	Financial statements
	 
	 	 	provide to the Bank:

	 	(a)	 	within 75 days after the end of each of the first three fiscal quarters in
each fiscal year, quarterly reports on US Form 6-K (or any successor form) in respect
of the Corporate Guarantor containing unaudited financial statements (including a
balance sheet and statement of income, changes in stockholders’ equity and cash flow)
and a management’s discussion and analysis of financial condition and results of
operations (or equivalent disclosure) for and as of the end of such fiscal quarter
(with comparable financial statements for the corresponding fiscal quarter of the
immediately preceding fiscal year);
	 
	 	(b)	 	within 150 days after the end of each fiscal year of the Corporate
Guarantor, an annual report on US Form 20-F (or any successor form) in respect of the
Corporate Guarantor containing the information required to be contained therein for
such fiscal year (starting with the financial year ending on 31 December 2011); and
	 
	 	(c)	 	at or prior to such times as would be required to be filed or furnished to
the SEC (as defined in the Indenture) (hereinafter, the “SEC”) if the Corporate
Guarantor was then a ‘‘foreign private issuer’’ subject to Section 13(a) or 15(d) of
the US Exchange Act, all such other reports and information that the Corporate
Guarantor would have been required to file pursuant thereto
	 
	 	(d)	 	a copy of all such information and reports referred to in clauses (1) to
(3) (inclusive) of Section 4.17(a) of the Indenture within the time periods specified
therein (unless the SEC shall not accept such a filing) and, upon the Bank’s request,
the
information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act

26

 

	 	 	Provided that, in relation to (a), (b) and (c) above, to the extent that the Corporate
Guarantor ceases to qualify as a ‘‘foreign private issuer’’ within the meaning of the US
Exchange Act, whether or not the Corporate Guarantor is then subject to Section 13(a) or
15(d) of the US Exchange Act, the Borrower shall furnish to the Bank, so long as any Notes
(as defined in the Indenture) are outstanding, within 30 days of the respective dates on
which the Corporate Guarantor would be required to file such documents with the SEC if it
was required to file such documents under the US Exchange Act, all reports and other
information that would be required to be filed with (or furnished to) the SEC pursuant to
Section 13(a) or 15(d) of the US Exchange Act.
	 
	8.1.7	 	Reimbursement of MII & MAP Policy premiums
	 
	 	 	Whether or not any amount is borrowed under this Agreement, reimburse the Bank on the
Bank’s written demand the amount of the premium payable by the Bank for the inception or,
as the case may be, extension and/or continuance of the MII & MAP Policy (including any
insurance tax thereon);
	 
	8.1.8	 	Compliance Certificates
	 
	 	 	deliver to the Bank simultaneously with delivering the same under the Indenture, a copy of
the compliance certificate to be issued and delivered in accordance with Section 4.06 of
the Indenture;
	 
	8.1.9	 	Provision of further information
	 
	 	 	provide the Bank, and procure that the Corporate Guarantor and the Manager shall provide
the Bank, with such financial or other information concerning the Borrower, the Corporate
Guarantor and their respective affairs, activities, financial standing, Indebtedness and
operations and the performance of the Vessel and any other ship owned by any Group Member
as the Bank may from time to time require and, without the need for any request therefor
provide to the Bank information of any significant nature in respect of the Borrower
and/or the Corporate Guarantor and/or any other Group Member including, but not limited
to, details of any loans borrowed or repaid by any of them, the purchase or sale of any
substantial assets (including ships) by any of them and/or the restructuring of any loan
of which any of them is a borrower;
	 
	8.1.10	 	Obligations under Security Documents
	 
	 	 	duly and punctually perform each of the obligations expressed to be imposed or assumed by
them under the Security Documents and Underlying Documents and will procure that each of
the other Security Parties will, duly and punctually perform each of the obligations
expressed to be assumed by it under the Security Documents and the Underlying Documents to
which it is a party;
	 
	8.1.11	 	Compliance with ISM Code
	 
	 	 	comply with, and will procure that any Operator will comply with, and ensure that the
Vessel and any Operator comply with the requirements of the ISM Code, including (but not
limited

27

 

	 	 	to) the maintenance and renewal of valid certificates pursuant thereto throughout the
Security Period (as defined in the Mortgages);
	 
	8.1.12	 	Withdrawal of DOC and SMC
	 
	 	 	immediately inform the Bank if there is any actual withdrawal of their or any Operator’s
DOC or the SMC of the Vessel;
	 
	8.1.13	 	Issuance of DOC and SMC
	 
	 	 	and will procure that any Operator will promptly inform the Bank of the receipt by the
Borrower or any Operator of notification that its application for a DOC or any application
for an SMC for the Vessel has been refused;
	 
	8.1.14	 	ISPS Code Compliance
	 
	 	 	and will procure that the Manager or any Operator will:

	 	(a)	 	maintain at all times a valid and current ISSC in respect of the Vessel;
	 
	 	(b)	 	immediately notify the Bank in writing of any actual or threatened
withdrawal, suspension, cancellation or modification of the ISSC in respect of the
Vessel; and
	 
	 	(c)	 	procure that the Vessel will comply at all times with the ISPS Code;

	8.1.15	 	Compliance with Laws and payment of taxes
	 
	 	 	and will comply with all relevant Environmental Laws, laws, statutes and regulations
(including, but not limited to, laws relating to any trading prohibition imposed by the
Flag State, the country of incorporation of the Borrower or the country of nationality of
any crew member of the Vessel by which the Borrower is bound) and pay all taxes for which
it is liable as they fall due;
	 
	8.1.16	 	Charters etc.
	 
	 	 	(i) deliver to the Bank a Certified Copy of each Extended Employment Contract upon its
execution, (ii) forthwith on the Bank’s request execute (a) a Charter Assignment in
respect thereof and (b) any notice of assignment required in connection therewith and use
reasonable efforts to procure the acknowledgement of any such notice of assignment by the
relevant charterer (provided that any failure to procure the same shall not constitute an
Event of Default) and (iii) pay all legal and other costs incurred by the Bank in
connection with any such Charter Assignments, forthwith following the Bank’s demand.
	 
	8.1.17	 	Indenture
	 
	 	 	comply with all of the obligations undertaken by the Corporate Guarantor under the
Indenture which are set out in the Indenture Excerpt and the Borrower further agree:
	 
	 	 	(a) any terms defined in the Indenture shall have those meanings when used in the
Indenture Excerpt;

28

 

	 	 	(b) no waiver or variation of any term of the Indenture by any person shall waive or vary
the Borrower’s obligations hereunder to comply with the obligations in the Indenture
Excerpt, except with the consent of the Bank;
	 
	 	 	(c) the Borrower shall continue to be bound by their, or as the case may be, the Corporate
Guarantor’s obligations as set out in the Indenture Excerpt following a Covenant
Defeasance (as defined in the Indenture) or a Legal Defeasance (as defined in the
Indenture) or other termination or cancellation of the Indenture;
	 
	 	 	(d) the Borrower will not, and will procure that the Corporate Guarantor will not, vary
any term of the Indenture without the prior written consent of the Bank.
	 
	8.1.18	 	Dividends
	 
	 	 	The Corporate Guarantor may not declare or pay dividends except in accordance with the
terms of the Indenture and then only as long as no Event of Default has occurred which is
continuing.
	 
	8.1.19	 	Indebtedness
	 
	 	 	The Borrower shall not incur any Indebtedness other than (i) in the ordinary course of
trading the Vessel or (ii) with the prior written consent of the Bank;
	 
	8.1.20	 	Trading
	 
	 	 	The Borrower shall not permit the Vessel to trade in any area prohibited by the government
of the Flag State.
	 
	8.2	 	Security value maintenance
	 
	8.2.1	 	Security shortfall
	 
	 	 	If, at any time after the Delivery Date, the Security Value shall be less than the
Required Security Amount, the Bank shall give notice to the Borrower requiring that such
deficiency be remedied and then the Borrower must either:

	 	(a)	 	prepay within a period of thirty (30) days of the date of receipt by the
Borrower of the Bank’s said notice such part of the Loan as will result in the
Security Value after such prepayment (taking into account any other repayment of the
Loan made between the date of the notice and the date of such prepayment) being equal
to or higher than the Required Security Amount; or
	 
	 	(b)	 	within thirty (30) days of the date of receipt by the Borrower of the
Bank’s said notice constitute to the satisfaction of the Bank a first preferred ship
mortgage over a ship as security for the Loan as shall be acceptable to the Bank
having a value for security purposes (as determined in accordance with Clause 8.2.2)
at the date upon which such mortgage is provided which, when added to the Security
Value, shall not be less than the Required Security Amount as at such date; or
	 
	 	(c)	 	within thirty (30) days of the date of receipt by the Borrower of the
Bank’s said notice constitute to the satisfaction of the Bank such further security
for the Loan as shall be

29

 

	 	 	 	acceptable to the Bank having a value for security purposes (as determined by the
Bank in its reasonable discretion) at the date upon which such further security
shall be constituted which, when added to the Security Value, shall not be less
than the Required Security Amount as at such date.

	 	 	The provisions of clauses 4.5 and 4.6 shall apply to prepayments under clause 8.2.1(a)
provided that the Bank shall apply such prepayments in pro rata reduction of the
repayment instalments under clause 4.1 and the amounts of the Loan prepaid hereunder shall
not be available to be re-borrowed.
	 
	8.2.2	 	Valuation of the Vessel
	 
	 	 	The Vessel shall, for the purposes of this Agreement, be valued (at the Borrower’s
expense) in USD by any Approved Broker, such valuations to be made without physical
inspection, and on the basis of a sale for prompt delivery for cash at arms’ length, on
normal commercial terms, as between a willing buyer and a willing seller, taking into
account the benefit or burden of any charterparty or other engagement concerning the
Vessel and such valuations to be no older than 3 months on the date on which it is
provided to the Bank, and to be provided to the Bank at such times as the Bank shall
require at the cost of the Borrower,
	 
	 	 	Provided that if the Bank or the Borrower do not agree with any valuation produced as
hereinbefore referred to then each of the Bank and the Borrower shall nominate an Approved
Broker, and the Valuation Amount for the Vessel shall be the average of the valuations
produced by those two Approved Brokers in accordance with the terms of this Clause.
	 
	 	 	The Approved Broker’s valuations for the Vessel on each such occasion shall constitute the
Valuation Amount of the Vessel for the purposes of this Agreement until superseded by the
next such valuation.
	 
	 	 	The Bank may request valuations of the Vessel at any time in its discretion.
	 
	8.2.3	 	Information
	 
	 	 	The Borrower undertake with the Bank to supply to the Bank and to the Approved Broker such
information concerning the Vessel and its condition as such shipbrokers may require for
the purpose of determining any Valuation Amount.
	 
	8.2.4	 	Costs
	 
	 	 	All costs in connection with the obtaining and any determining of any Valuation Amount
pursuant to Clause 8.2.2 and any valuation either of any additional security for the
purposes of ascertaining the Security Value at any time or necessitated by the Borrower
electing to constitute additional security pursuant to clause 8.2.1(b), must be paid by
the Borrower, provided that prior to the occurrence of an Event of Default which is
continuing the Borrower shall not pay for more than one valuation every three months.
	 
	8.2.5	 	Valuation of additional security
	 
	 	 	For the purposes of this clause 8.2, the market value (i) of any additional security over
a ship (other than the Vessel) shall be determined in accordance with clause 8.2.2 and
(ii) of any other additional security provided or to be provided to the Bank shall be
determined by the Bank in its reasonable discretion.

30

 

	8.2.6	 	Documents and evidence
	 
	 	 	In connection with any additional security provided in accordance with this clause 8.2,
the Bank shall be entitled to receive (at the Borrower’s expense) such evidence and
documents of the kind referred to in schedule 2 as may in the Bank’s opinion be
appropriate and such favourable legal opinions as the Bank shall in its absolute
discretion require..
	 
	8.3	 	Indenture.
	 
	 	 	Notwithstanding anything in this Agreement:
	 
	 	 	(i) any terms, transactions or events permitted by the Indenture Excerpt and
	 
	 	 	(ii) save as otherwise expressly provided in this Agreement, any other terms or
transactions or events permitted by the Indenture
	 
	 	 	shall be deemed to be permitted by this Agreement.
	 
	8.4	 	 Financial Covenants
	 
	 	 	The Borrower shall procure the Net Total Debt divided by the Total Assets (adjusted for
market values of vessels calculated in accordance with Clause 8.2.2) shall be less than
the Relevant Leverage Percentage,
	 
	 	 	where:
	 
	 	 	“Latest Accounts” means, in respect of any financial quarter or year of the Group, the
latest unaudited (in respect of each financial quarter) or audited (in respect of each
financial year) financial statements required to be prepared pursuant to clause 8.1.6;
	 
	 	 	“Total Assets” and “Net Total Debt” mean, respectively, the total assets (adjusted (i) for
market values of vessels calculated in accordance with Clause 8.2.2 of this Agreement and
(ii) by deducting Unencumbered Cash) and total debt (less Unencumbered Cash) of the Group
as evidenced at any relevant time by the Latest Accounts, in which they shall have been
calculated by reference to the meanings assigned to them in accordance with US GAAP
provided that the value of any ship shall be the value thereof calculated in accordance
with Clause 8.2.2 and not as set out in the Latest Accounts; and
	 
	 	 	“Relevant Leverage Percentage” means, for the period of up to the fifth anniversary of the
Delivery Date, 80%, and thereafter 70%.
	 
	 	 	“Unencumbered Cash” means:

	 	(a)	 	cash in hand legally and beneficially owned by any Group Member; and
	 
	 	(b)	 	cash deposits legally and beneficially owned by any Group Member and which
is deposited with any bank or financial institution

	 	 	which in each case is free from any Encumbrance and is otherwise at the free and
unrestricted disposal of the relevant Group Member by which it is owned.

31

 

	9	 	CONDITIONS
	 
	9.1	 	Documents and evidence
	 
	 	 	The Bank’s obligation to make available the Advances is subject to the following conditions
precedent:
	 
	9.1.1	 	that, on or before the service of the first Drawdown Notice hereunder, the Bank has received
the documents described in Part A of Schedule 2 in form and substance satisfactory to the Bank
and its lawyers;
	 
	9.1.2	 	that, on or before drawdown of the Advance relating to the instalment payable under the
Shipbuilding Contract after the Refund Guarantee has been issued, the Bank has received the
documents described in Part B of Schedule 2 in respect of the Vessel in form and substance
satisfactory to the Bank and its lawyers;
	 
	9.1.3	 	that, on or before drawdown of the Advance relating to the steel cutting instalment payable
under the Shipbuilding Contract, the Bank has received the documents described in Part C of
Schedule 2 in respect of the Vessel in form and substance satisfactory to the Bank and its
lawyers;
	 
	9.1.4	 	that, on or before drawdown of the Advance relating to the keel laying instalment payable
under the Shipbuilding Contract, the Bank has received the documents described in Part D of
Schedule 2 in respect of the Vessel in form and substance satisfactory to the Bank and its
lawyers;
	 
	9.1.5	 	that on or before the service of the Drawdown Notice in respect of the Advance relating to
the delivery instalment payable under either Shipbuilding Contract, the Bank has received the
documents described in Part E of Schedule 2 in respect of the Vessel in form and substance
satisfactory to the Bank and its lawyers;
	 
	9.1.6	 	the representations and warranties contained in clause 7 and clauses 4.1 and 4.2 of the
Corporate Guarantee being then true and correct as if each was made with respect to the facts
and circumstances existing at such time; and
	 
	9.1.7	 	no Default having occurred and being continuing and there being no Default which would
result from the making of the Loan.
	 
	9.2	 	Waiver of conditions precedent
	 
	 	 	The conditions specified in this clause 9 are inserted solely for the benefit of the Bank
and may be waived by the Bank in whole or in part and with or without conditions.
	 
	9.3	 	Further conditions precedent
	 
	 	 	Not later than five (5) Banking Days prior to the Drawdown Date and not later than five
(5) Banking Days prior to each Interest Payment Date, the Bank may reasonably request and
the Borrower must, not later than two (2) Banking Days prior to such date, deliver to the
Bank (at the Borrower’s expense) on such request further favourable certificates and/or
opinions as to any or all of the matters which are the subject of clauses 7, 8, 9 and 10
and clauses 4 and 5 of the Corporate Guarantee.

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	9.4	 	English language 
	 
	 	 	All documents required to be delivered under and/or supplied in connection with any of the
Security Documents must either be in the English language or accompanied by an English
translation certified by a notary, lawyer or consulate acceptable to the Bank.
	 
	10	 	EVENTS OF DEFAULT
	 
	10.1	 	Events
	 
	 	 	Each of the following events shall constitute an Event of Default (whether such event
shall occur voluntarily or involuntarily or by operation of law or regulation or in
connection with any judgment, decree or order of any court or other authority or
otherwise, howsoever):
	 
	10.1.1	 	Non-payment: any Security Party fails to pay any sum payable by it under any of the Security
Documents at the time, in the currency and in the manner stipulated in the Security Documents
or the Underlying Documents (and so that, for this purpose, sums payable (i) under clauses 3.1
and 4.1 shall be treated as having been paid at the stipulated time if (aa) received by the
Bank within two (2) days of the dates therein referred to and (bb) such delay in receipt is
caused by administrative or other delays or errors within the banking system and (ii) on
demand shall be treated as having been paid at the stipulated time if paid within two (2)
Banking Days of demand); or
	 
	10.1.2	 	Breach of Insurance and certain other obligations: the Borrower or, as the context may
require, the Manager or any other person fails to obtain and/or maintain the Insurances (as
defined in, and in accordance with the requirements of, the Ship Security Documents) for the
Vessel or if any insurer in respect of such Insurances cancels the Insurances or disclaims
liability by reason, in either case, of mis-statement in any proposal for the Insurances or
for any other failure or default on the part of the Borrower or any other person or the
Borrower commits any breach of or omits to observe any of the obligations or undertakings
expressed to be assumed by them under clause 8; or
	 
	10.1.3	 	Breach of other obligations: any Security Party commits any breach of or omits to observe
any of its obligations or undertakings expressed to be assumed by it under any of the Security
Documents (other than those referred to in clauses 10.1.1 and 10.1.2 above) unless such breach
or omission, in the opinion of the Bank is capable of remedy, in which case the same shall
constitute an Event of Default if it has not been remedied within fifteen (15) days of the
occurrence thereof; or
	 
	10.1.4	 	Misrepresentation: any representation or warranty made or deemed to be made or repeated by
or in respect of any Security Party in or pursuant to any of the Security Documents or in any
notice, certificate or statement referred to in or delivered under any of the Security
Documents is or proves to have been incorrect or misleading in any material respect; or
	 
	10.1.5	 	Cross-default: There shall occur a default (howsoever therein described) under the Indenture
or any Indebtedness of any Security Party is not paid when due (subject to applicable grace
periods) or any Indebtedness of any Security Party becomes (whether by declaration or
automatically in accordance with the relevant agreement or instrument constituting the same)
due and payable prior to the date when it would otherwise have become due (unless as a result
of the exercise by the relevant Security Party of a voluntary right of prepayment), or any
creditor of any Security Party becomes entitled to declare any such Indebtedness due and
payable or any facility or commitment available to any Security Party relating to Indebtedness
is withdrawn, suspended or cancelled by reason of any default (however described) of the
person concerned; or

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	10.1.6	 	Execution: any uninsured judgment or order made against any Security Party is not stayed,
appealed against or complied with within fifteen (15) days or a creditor attaches or takes
possession of, or a distress, execution, sequestration or other process is levied or enforced
upon or sued out against, any of the undertakings, assets, rights or revenues of any Security
Party and is not discharged within thirty (30) days; or
	 
	10.1.7	 	Insolvency: any Security Party is unable or admits inability to pay its debts as they fall
due; suspends making payments on any of its debts or announces an intention to do so; becomes
insolvent; or has negative net worth (taking into account contingent liabilities); or suffers
the declaration of a moratorium in respect of any of its Indebtedness; or
	 
	10.1.8	 	Reduction or loss of capital: a meeting is convened by any Security Party (other than the
Guarantor) without the Bank’s prior written consent, for the purpose of passing any resolution
to purchase, reduce or redeem any of its share capital without the Bank’s prior written
consent; or
	 
	10.1.9	 	Dissolution: any corporate action, Proceedings or other steps are taken to dissolve or
wind-up any Security Party or an order is made or resolution passed for the dissolution or
winding up of any Security Party or a notice is issued convening a meeting for such purpose;
or
	 
	10.1.10	 	Administration: any petition is presented, notice given or other steps are taken anywhere
to appoint an administrator of any Security Party or the Bank believes that any such petition
or other step is imminent or an administration order is made in relation to any Security
Party; or
	 
	10.1.11	 	Appointment of receivers and managers: any administrative or other receiver is appointed
anywhere of any Security Party or any part of its assets and/or undertaking or any other steps
are taken to enforce any Encumbrance over all or any part of the assets of any Security Party;
or
	 
	10.1.12	 	Compositions: any corporate action, legal proceedings or other procedures or steps are
taken, or negotiations commenced, by any Security Party or by any of its creditors with a view
to the general readjustment or rescheduling of all or part of its Indebtedness or to proposing
any kind of composition, compromise or arrangement involving such company and any of its
creditors; or
	 
	10.1.13	 	Analogous proceedings: there occurs, in relation to any Security Party, in any country or
territory in which any of them carries on business or to the jurisdiction of whose courts any
part of their assets is subject, any event which, in the reasonable opinion of the Bank,
appears in that country or territory to correspond with, or have an effect equivalent or
similar to, any of those mentioned in clauses 10.1.6 to 10.1.12 (inclusive) or any Security
Party otherwise becomes subject, in any such country or territory, to the operation of any law
relating to insolvency, bankruptcy or liquidation; or
	 
	10.1.14	 	Cessation of business: any Security Party suspends or ceases or threatens to suspend or
cease to carry on its business without the prior written consent of the Bank, such consent not
to be unreasonably withheld; or

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	10.1.15	 	Seizure: all or a material part of the undertaking, assets, rights or revenues of, or shares or other ownership interests in, any Security Party are seized, nationalised,
expropriated or compulsorily acquired by or under the authority of any Government Entity; or
	 
	10.1.16	 	Invalidity: any of the Security Documents and the Underlying Documents shall at any time
and for any reason become invalid or unenforceable or otherwise cease to remain in full force
and effect, or if the validity or enforceability of any of the Security Documents and the
Underlying Documents shall at any time and for any reason be contested by any Security Party
which is a party thereto, or if any such Security Party shall deny that it has any, or any
further, liability thereunder; or
	 
	10.1.17	 	Unlawfulness: any Unlawfulness occurs or it becomes impossible or unlawful at any time for
any Security Party, to fulfil any of the covenants and obligations expressed to be assumed by
it in any of the Security Documents or for a Bank to exercise the rights or any of them vested
in it under any of the Security Documents or otherwise; or
	 
	10.1.18	 	Repudiation: any Security Party repudiates any of the Security Documents or does or causes
or permits to be done any act or thing evidencing an intention to repudiate any of the
Security Documents; or
	 
	10.1.19	 	Encumbrances enforceable: any Encumbrance (other than Permitted Liens) in respect of any of
the property (or part thereof) which is the subject of any of the Security Documents becomes
enforceable; or
	 
	10.1.20	 	Arrest: the Vessel is arrested, confiscated, seized, taken in execution, impounded,
forfeited, detained in exercise or purported exercise of any possessory lien or other claim or
otherwise taken from the possession of the Borrower and the Borrower shall fail to procure the
release of the Vessel within a period of fifteen (15) days thereafter (this clause does not
include capture of the Vessel by pirates for up to 12 months (but does apply if such capture
exceeds 12 months) if relevant underwriters confirm in writing (in customary terms) within
ninety (90) day of capture, that such capture will be covered by the Borrower’s war risks
insurance); or
	 
	10.1.21	 	Registration: the registration of the Vessel under the laws and flag of the relevant Flag
State is cancelled or terminated without the prior written consent of the Bank; or
	 
	10.1.22	 	Unrest: the Flag State or the country in which any Security Party is incorporated or
domiciled becomes involved in hostilities or civil war or there is a seizure of power in the
Flag State by unconstitutional means unless the Borrower shall have transferred the Vessel
onto a new flag acceptable to the Bank within sixty (60) days of the start of such hostilities
or civil war or seizure of power; or
	 
	10.1.23	 	Environmental Incidents: an Environmental Incident occurs which gives rise, or may give
rise, to an Environmental Claim which could, in the opinion of the Bank be expected to have a
material adverse effect (i) on the business, assets or financial condition of any Security
Party or the Group taken as a whole or (ii) on the security constituted by any of the Security
Documents or the enforceability of that security in accordance with its terms; or
	 
	10.1.24	 	P&I: the Borrower or the Manager or any other person fails or omits to comply with any
requirements of the protection and indemnity association or other insurer with which the
Vessel is entered for insurance or insured against protection and indemnity risks (including
oil pollution risks) to the effect that any cover (including, without limitation, any cover in

35

 

	 	 	respect of liability for Environmental Claims arising in jurisdictions where the Vessel
operates or trades) is or may be liable to cancellation, qualification or exclusion at any
time; or
	 
	10.1.25	 	Material events: any other event occurs or circumstance arises which, in the opinion of the
Bank, is likely materially and adversely to affect either (i) the ability of any Security
Party to perform all or any of its obligations under or otherwise to comply with the terms of
any of the Security Documents or (ii) the security created by any of the Security Documents;
or
	 
	10.1.26	 	Required Authorisations: any Required Authorisation is revoked or withheld or modified or
is otherwise not granted or fails to remain in full force and effect or if any exchange
control or other law or regulation shall exist which would make any transaction under the
Security Documents or the continuation thereof, unlawful or would prevent the performance by
any Security Party of any term of any of the Security Documents;
	 
	10.1.27	 	Ownership/management: there is any change in the ownership of the Borrower or the Vessel or
change of Manager of the Vessel without the prior written consent of the Bank; or
	 
	11.1.29	 	Shipbuilding Contract/Refund Guarantee: either Shipbuilding Contract or Refund Guarantee is
terminated, cancelled, revoked, suspended, rescinded, transferred, novated or otherwise ceases
to remain in full force and effect for any reason except with the consent of the Bank; or
	 
	10.1.28	 	Money Laundering: any Security Party is in breach of or fails to observe any law,
requirement, measure or procedure implemented to combat “money laundering” as defined in
Article 1 of the Directive (91/308 EEC) of the Council of the European Communities; or
	 
	10.1.29	 	Change of Control. There shall occur a “Change of Control” (as defined in the Indenture)
or the “Permitted Holder” (as defined in the Indenture) owns less than 20% of the issued share
capital of the Corporate Guarantor.
	 
	10.2	 	Acceleration
	 
	 	 	The Bank may, without prejudice to any other rights of the Bank, at any time after the
happening of an Event of Default so long as the same is continuing by notice to the
Borrower declare that:
	 
	10.2.1	 	the obligation of the Bank to make the Commitment available shall be terminated, whereupon
the Commitment shall immediately be cancelled; and/or
	 
	10.2.2	 	the Loan and all interest and commitment commission accrued and all other sums payable
whensoever under the Security Documents have become due and payable, whereupon the same shall,
immediately or in otherwise accordance with the terms of such notice, become due and payable.
	 
	10.3	 	Demand basis
	 
	 	 	If, under clause 10.2.2, the Bank has declared the Loan to be due and payable on demand,
at any time thereafter the Bank may by further notice to the Borrower demand repayment of
the Loan on such date as may be specified whereupon the Loan shall become due and payable
accordingly with all interest and commitment commission accrued and all other sums payable
under this Agreement.

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	11	 	INDEMNITIES
	 
	11.1	 	General indemnity
	 
	 	 	The Borrower agrees to indemnify the Bank on demand, without prejudice to any of the
Bank’s other rights under any of the Security Documents, against any loss (including loss
of Margin) or expense (including, without limitation, any Break Costs) which the Bank
shall certify as sustained at any time by it in connection with this Agreement.
	 
	11.2	 	Environmental indemnity
	 
	 	 	The Borrowesr shall indemnify the Bank on demand and hold it harmless from and against all
costs, claims, expenses, payments, charges, losses, demands, liabilities, actions,
Proceedings, penalties, fines, damages, judgements, orders, sanctions or other outgoings
of whatever nature which may be incurred or made or asserted whensoever against the Bank
at any time, whether before or after the repayment in full of principal and interest under
this Agreement, arising howsoever out of an Environmental Claim made or asserted against
the Bank which would not have been, or been capable of being, made or asserted against the
Bank had it not entered into any of the Security Documents or been involved in any of the
resulting or associated transactions.
	 
	11.3	 	Capital adequacy and reserve requirements indemnity
	 
	 	 	The Borrower shall promptly indemnify the Bank on demand against any cost incurred or loss
suffered by the Bank as a result of its complying with (i) the minimum reserve
requirements from time to time of the European Central Bank (ii) any capital adequacy
directive of the European Union and/or (iii) any revised framework for international
convergence of capital measurements and capital standards and/or any regulation imposed by
any Government Entity in connection therewith, and/or in connection with maintaining
required reserves with a relevant national central bank to the extent that such compliance
or maintenance relates to the Commitment or deposits obtained by it to fund the whole or
part thereof and to the extent such cost or loss is not recoverable by the Bank under
clause 11.2..
	 
	12	 	UNLAWFULNESS AND INCREASED COSTS MITIGATION
	 
	12.1	 	Unlawfulness
	 
	 	 	Regardless of any other provision of this Agreement, in the event that the Bank notifies
the Borrower that by reason of:

	 	(a)	 	the introduction of or any change in any applicable law or regulation or
any change in the interpretation or application thereof; or
	 
	 	(b)	 	compliance by the Bank with any directive, request or requirement (whether
or not having the force of law) of any central bank or Government Entity

	 	 	it becomes unlawful or it is prohibited by or contrary to such directive request or
requirement for the Bank to maintain or give effect to any of its obligations in
connection howsoever with this Agreement then (i) the Commitment shall be reduced to zero
and (ii) the Borrower shall be obliged to prepay the Loan either immediately or on a
future date (specified in the Bank’s notice) not being earlier than the latest date
permitted by the relevant law, regulation, directive, request or requirement with interest
and commitment commission accrued to the

37

 

	 	 	date of prepayment and all other sums payable whensoever by the Borrower under this Agreement.

	 
	 	 
	12.2 	 	Increased costs
	 
	 	 	If the Bank certifies to the Borrower that at any time the effect of any applicable law,
regulation or regulatory requirements or the interpretation or application thereof or any
change therein (including the imposition upon whomsoever of Taxes on payments hereunder or
otherwise howsoever in connection with this Agreement other than taxes on the overall net
income of the Bank) or the effect of complying with any applicable directive, request or
requirement (whether or not having the force of law) of any central bank or Government
Entity (including, but not limited to, 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) and including any kind of liquidity, stock or capital adequacy controls or
other banking or monetary controls or requirements which affect the manner in which the
Bank or its holding company allocates capital resources to the Bank’s obligations
hereunder) is to:
	 
	12.2.1	 	subject the Bank to Taxes or change the basis of Taxation of the Bank relating to any
payment under any of the Security Documents (other than Taxes or Taxation on the overall net
income of the Bank imposed in the jurisdiction in which its principal or lending office under
this Agreement is located); and/or
	 
	12.2.2	 	increase the cost to, or impose an additional cost on, the Bank or its holding company in
making or keeping the Commitment available or maintaining or funding all or part of the Loan;
and/or
	 
	12.2.3	 	reduce the amount payable or the effective return to the Bank under any of the Security
Documents; and/or
	 
	12.2.4	 	reduce the Bank’s or its holding company’s rate of return on its overall capital by reason
of a change in the manner in which it is required to allocate capital resources to the Bank’s
obligations under any of the Security Documents; and/or
	 
	12.2.5	 	require the Bank or its holding company to make a payment or forgo a return on or calculated
by reference to any amount received or receivable by the Bank under any of the Security
Documents; and/or
	 
	12.2.6	 	require the Bank or its holding company to incur or sustain a loss (including a loss of
future potential profits) by reason of being obliged to deduct all or part of the Commitment
or the Loan from its capital for regulatory purposes,
	 
	 	 	then and in each such case (subject to clause 12.3) the Borrower must on demand either:

	 	(a)	 	pay to the Bank the amount which the Bank certifies (in a certificate
setting forth the basis of the computation of such amount but not including any
matters which the Bank or its holding company regards as confidential) is required to
compensate the Bank and/or (as the case may be) its holding company for such
liability to Taxes, cost, reduction, payment, forgone return or loss; or
	 
	 	(b)	 	prepay the Loan, in respect of which prepayment the terms of clause 4.5
shall apply.

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	 	 	For the purposes of this clause 12.2 and clause 12.4 “holding company” means the company
or entity (if any) within the consolidated supervision of which the Bank is included.
	 
	12.3	 	Exception
	 
	 	 	Nothing in clause 12.2 shall entitle the Bank to receive any amount relating to
compensation for any such liability to Taxes, increased or additional cost, reduction,
payment, foregone return or loss to the extent that the same is the subject of an
additional payment under clause 6.6.
	 
	13	 	SECURITY, SET-OFF AND MISCELLANEOUS
	 
	13.1	 	Application of moneys
	 
	 	 	All moneys received by the Bank under or pursuant to any of the Security Documents and
expressed to be applicable in accordance with the provisions of this clause 13.1 shall be
applied by the Bank as follows, or in such other order as the Bank may require in its
absolute discretion:
	 
	13.1.1	 	first in or toward payment of all unpaid fees, commissions, sums which have been demanded by
way of indemnity and expenses which may be owing to the Bank under any of the Security
Documents;
	 
	13.1.2	 	secondly in or towards payment of any arrears of interest owing in respect of the Loan or
any part thereof;
	 
	13.1.3	 	thirdly in or towards repayment of the Loan (whether the same is due and payable or not);
	 
	13.1.4	 	fourthly in or towards payment to the Bank for any loss which the Bank certifies it has
suffered by reason of any such payment in respect of principal not being effected on an
Interest Payment Date relating to the part of the Loan repaid;
	 
	13.1.5	 	fifthly in or towards payment to the Bank of any other sums which the Bank certifies are
owing to it under any of the Security Documents; and
	 
	13.1.6	 	sixthly the surplus (if any) shall be paid to the Borrower or to whomsoever else may appear
to the Bank to be entitled to receive such surplus.
	 
	13.2	 	Set-off
	 
	13.2.1	 	The Borrower authorises the Bank (without prejudice to any of the Bank’s rights at law, in
equity or otherwise), at any time and without notice to the Borrower, to apply any credit
balance to which the Borrower is then entitled standing upon any account of the Borrower with
any branch of the Bank in or towards satisfaction of any sum due and payable from the Borrower
to the Bank under any of the Security Documents. For this purpose, the Bank is authorised to
purchase with the moneys standing to the credit of such account such other currencies as may
be necessary to effect such application.
	 
	13.2.2	 	The Bank shall not be obliged to exercise any right given to it by this clause 13.2. The
Bank shall notify the Borrower prior to or upon the exercise or purported exercise of any
right of set-off.
	 
	13.2.3	 	Nothing in this clause 13.2 shall be effective to create a charge or other security
interest.

39

 

	13.3	 	Further assurance
	 
	 	 	The Borrower undertakes with the Bank to ensure that, throughout the Facility Period, the
Security Documents shall be valid and binding obligations of the respective parties
thereto and rights of the Bank enforceable in accordance with their respective terms and
that they will, at their expense, execute, sign, perfect and do, and will procure the
execution, signing, perfecting and doing by each of the other Security Parties of, any and
every such further assurance, document, act or thing as in the reasonable opinion of the
Bank may be necessary or desirable for perfecting the security contemplated or constituted
by the Security Documents.
	 
	13.4	 	Conflicts
	 
	 	 	In the event of any conflict between this Agreement and any of the other Borrower’s
Security Documents, the provisions of this Agreement shall prevail.
	 
	13.5	 	No implied waivers, remedies cumulative
	 
	 	 	No failure or delay on the part of the Bank to exercise any power, right or remedy under
any of the Security Documents shall operate as a waiver thereof, nor shall any single or
partial exercise by the Bank of any power, right or remedy preclude any other or further
exercise thereof or the exercise of any other power, right or remedy. The remedies
provided in the Security Documents are cumulative and are not exclusive of any remedies
provided by law. No waiver by the Bank shall be effective unless it is in writing.
	 
	13.6	 	Severability
	 
	 	 	If any provision of this Agreement is prohibited, invalid, illegal or unenforceable in any
jurisdiction, such prohibition, invalidity, illegality or unenforceability shall not
affect or impair howsoever the remaining provisions thereof or affect the validity,
legality or enforceability of such provision in any other jurisdiction.
	 
	13.7	 	Force Majeure
	 
	 	 	Regardless of any other provision of this Agreement the Bank shall not be liable for any
failure to perform the whole or any part of this Agreement resulting directly or
indirectly from (i) the action or inaction or purported action of any governmental or
local authority (ii) any strike, lockout, boycott or blockade (including any strike,
lockout, boycott or blockade effected by or upon the Bank or any of its representatives or
employees) (iii) any act of God (iv) any act of war (whether declared or not) or terrorism
(v) any failure of any information technology or other operational systems or equipment
affecting the Bank or (vi) any other circumstances whatsoever outside the Bank’s control.
	 
	13.8	 	Amendments
	 
	 	 	This Agreement may be amended or varied only by an instrument in writing executed by both
parties hereto who irrevocably agree that the provisions of this clause 13.8 may not be
waived or modified except by an instrument in writing to that effect signed by both of
them.
	 
	13.9	 	Counterparts

40

 

	 	 	This Agreement may be executed in any number of counterparts and all such counterparts
taken together shall be deemed to constitute one and the same agreement which may be
sufficiently evidenced by one counterpart.
	 
	13.10	 	English language
	 
	 	 	All documents required to be delivered under and/or supplied whensoever in connection
howsoever with any of the Security Documents and all notices, communications, information
and other written material whatsoever given or provided in connection howsoever therewith
must either be in the English language or accompanied by an English translation certified
by a notary, lawyer or consulate acceptable to the Bank.
	 
	14	 	ACCOUNTS
	 
	14.1	 	General
	 
	 	 	The Borrower undertakes with the Bank that they will ensure that:

	 
	14.1.1	 	the Borrower will on or before the Delivery Date, open the Earnings Account in its name; and
	 
	14.1.2	 	all moneys payable to the Borrower in respect of the Earnings (as defined in the relevant
Mortgage) of the Vessel shall, unless and until the Bank directs to the contrary pursuant to
the provisions of the relevant Mortgage, be paid to the Earnings Account, Provided however
that if any of the moneys paid to the Earnings Account are payable in a currency other than
USD, they shall be paid to a sub-account of the Earnings Account denominated in such currency
(except that if the Borrower fails to open such a sub-account, the Bank shall then convert
such moneys into USD at the Bank’s spot rate of exchange at the relevant time for the purchase
of USD with such currency and the term “spot rate of exchange” shall include any premium and
costs of exchange payable in connection with the purchase of USD with such currency).
	 
	14.2	 	Earnings Account: withdrawals
	 
	 	 	Any sums standing to the credit of the Earnings Account may be applied from time to time
(i) firstly to make the payments required under this Agreement, (ii) secondly, subject to
there being no breach of Clause 14.3 and to no Event of Default having occurred, in the
operation of the Vessel and (iii) subject to there being at any time sufficient funds to
pay amounts due under (i) and (ii) above as they fall due, thirdly for the general
corporate purposes of the Borrower.
	 
	14.3	 	Retention Account: credits and withdrawals
	 
	14.3.1	 	The Borrower undertakes with the Bank that, throughout the Facility Period, it will procure
that, on each Retention Date there is paid (whether from the Earnings Account or elsewhere) to
the Retention Account, the Retention Amount for such date.
	 
	14.3.2	 	Unless and until there shall occur an Event of Default (whereupon the provisions of clause
14.5 shall apply), all Retention Amounts credited to the Retention Account together with
interest from time to time accruing or at any time accrued thereon must be applied by the Bank
(and the Borrower hereby irrevocably authorises the Bank so to apply the same) upon each
Repayment Date and/or on each day that interest is payable on the Loan pursuant to clause 3.1,
in or towards payment to the Bank of the instalment then falling due for repayment or, as the
case may be, the amount of interest then due. Each such application by the Bank shall
constitute a payment in or towards satisfaction of the Borrower’s corresponding

41

 

	 	 	payment obligations under this Agreement but shall be strictly without prejudice to the
obligations of the Borrower to make any such payment to the extent that the aforesaid
application by the Bank is insufficient to meet the same.
	 
	 	 	Unless the Bank otherwise agrees in writing and subject to this clause 14.3.2, the
Borrower shall not be entitled to withdraw any moneys from the Retention Account at any
time during the Facility Period.
	 
	14.4	 	Application of accounts
	 
	 	 	At any time after the occurrence of an Event of Default, the Bank may, without notice to
the Borrower, apply all moneys then standing to the credit of the Earnings Account and/or
the Retention Account (together with interest from time to time accruing or accrued
thereon) in or towards satisfaction of any sums due to the Bank under the Security
Documents in the manner specified in clause 13.1.
	 
	14.5	 	Charging of accounts
	 
	 	 	The Earnings Account and the Retention Account and all amounts from time to time
respectively standing to the credit thereof shall be subject to the security constituted
and the rights conferred by, respectively, the Earnings Account Pledge and the Retention
Account Pledge.
	 
	14.6	 	Average balance
	 
	 	 	As of the date falling 3 months after the Delivery Date, the Borrower
shall ensure that there is at all times credited to deposit accounts
at the Bank in the names of the Borrower and/or the Corporate
Guarantor and the Earnings Account and the Retention Account, an
average balance of $2,000,000 per month.
	 
	15	 	ASSIGNMENT, TRANSFER AND LENDING OFFICE
	 
	15.1	 	Benefit and burden
	 
	 	 	This Agreement shall be binding upon, and ensure for the benefit of, the Bank and the
Borrower and their respective successors.
	 
	15.2	 	No assignment by Borrower
	 
	 	 	The Borrower may not assign or transfer any of their respective rights or obligations
under this Agreement.
	 
	15.3	 	Assignment by Bank
	 
	 	 	The Bank may assign all or any part of its rights under any of the Security Documents to
any other bank or financial institution (an “Assignee”) without the consent of the
Borrower, but after consultation with it.
	 
	15.4	 	Transfer by Bank
	 
	 	 	The Bank may transfer all or any part of its rights, benefits and/or obligations under
this Agreement and/or any of the other Security Documents to any one or more banks or
other financial institutions (a “Transferee”) without the consent of the Borrower, but
after

42

 

	 	 	consultation with it, provided always that any such Transferee, by delivery of such
undertaking as the Bank may approve, becomes bound by the terms of this Agreement and
agrees to perform all or, as the case may be, relevant part of the Bank’s obligations
under this Agreement.
	 
	15.5	 	Documentation
	 
	 	 	If the Bank assigns all or any part of its rights or transfers all or any part of its
rights, benefits and/or obligations as provided in clause 15.3 or 15.4 the Borrower
undertakes, immediately on being requested to do so by the Bank , to enter into, and
procure that the other Security Parties shall enter into, such documents as may be
necessary or desirable to transfer to the Assignee or Transferee all or the relevant part
of the Bank’s interest in the Security Documents. Thereafter, all relevant references in
this Agreement to the Bank shall be construed as a reference to the Bank and/or its
Assignee or Transferee (as the case may be) to the extent of their respective interests.
	 
	15.6	 	Lending office
	 
	 	 	The Bank shall lend through its office at the address specified above or through any other
office of the Bank selected from time to time by it through which the Bank wishes to lend
for the purposes of this Agreement.
	 
	15.7	 	Disclosure of information
	 
	 	 	The Bank may disclose to a prospective Assignee, Transferee or to any other person who may
propose entering into contractual relations with the Bank in relation to this Agreement
such information about or in connection with any of the Security Parties and the Security
Documents as the Bank considers appropriate.
	 
	15.8	 	No additional costs
	 
	 	 	If at the time of, or immediately after, any assignment and/or transfer by the Bank of all
or any part of its rights and/or benefits and/or obligations under this Agreement, or any
change in the office through which the Bank lends for the purposes of this Agreement, the
Borrower would be obliged to pay to the Assignee or Transferee or (in the case of a change
of lending office) the Bank under clause 6.6 or 12.2 any sum exceeding the sum (if any)
which it would have been obliged to pay to the Bank under the relevant clause had no such
assignment, transfer or change taken place, the Borrower shall not be obliged to pay such
excess.
	 
	16	 	NOTICES
	 
	16.1	 	General
	 
	16.1.1	 	unless otherwise specifically provided herein, every notice under or in connection with this
Agreement shall be given in English by letter delivered personally and/or sent by post and/or
transmitted by fax;
	 
	16.1.2	 	in this clause “notice” includes any demand, consent, authorisation, approval, instruction,
certificate, request, waiver or other communication.
	 
	16.2	 	Addresses for communications, effective date of notices

43

 

	16.2.1	 	subject to clause 16.2.2 and clause 16.2.4 notices to the Borrower shall be deemed to have
been given and shall take effect when received in full legible form by the Borrower at the
address and/or the fax number appearing below (or at such other address or fax number as the
Borrower may hereafter specify for such purpose to the Bank by notice in writing);

	 	 	 	 	 

	 

	 	Address
	 	c/o Navios ShipManagement Inc.
	 

	 	 	 	85 Akti Miaouli
	 

	 	 	 	Piraeus
	 

	 	 	 	Greece
	 
	 	 	 	 
	 

	 	Fax no:
	 	+ 30 210 453 2070

	16.2.2	 	notwithstanding the provisions of clause 16.2.1 or clause 16.2.4, a notice of Default and/or
a notice given pursuant to clause 10.2 or clause 10.3 shall be deemed to have been given and
shall take effect when delivered, sent or transmitted by the Bank to the Borrower to the
address or fax number referred to in clause 16.2.1;
	 
	16.2.3	 	subject to clause 16.2.4, notices to the Bank shall be deemed to be given, and shall take
effect, when received in full legible form by the Bank at the address and/or the fax number
appearing below (or at any such other address or fax number as the Bank may hereafter specify
for such purpose to the Borrower by notice in writing);

	 	 	 	 	 

	 

	 	Address
	 	1, Korai Street
	 

	 	 	 	105 64 Athens
	 

	 	 	 	Greece
	 
	 	 	 	 
	 

	 	Fax no: +
	 	+30 210 328 2307

	16.2.4	 	if under clause 16.2.1 or clause 16.2.3 a notice would be deemed to have been given and
effective on a day which is not a working day in the place of receipt or is outside the normal
business hours in the place of receipt, the notice shall be deemed to have been given and to
have taken effect at the opening of business on the next working day in such place.
	 
	17	 	GOVERNING LAW
	 
	17.1	 	Law
	 
	 	 	This Agreement and any non-contractual obligations arising out of or in connection with it
is governed by and shall be construed in accordance with English law.
	 
	18	 	JURISDICTION
	 
	18.1	 	Exclusive jurisdiction
	 
	 	 	For the benefit of the Bank, and subject to clause 18.4 below, the Borrower hereby
irrevocably agrees that the courts of England shall have exclusive jurisdiction:
	 
	18.1.1	 	to settle any disputes or other matters whatsoever arising under or in connection with this
Agreement (or any non-contractual obligation arising out of or in connection with this
Agreement) and any disputes or other such matters arising in connection with the negotiation,
validity or enforceability of this Agreement or any part thereof, whether the alleged
liability shall arise under the laws of England or under the laws of some other country

44

 

	 	 	and regardless of whether a particular cause of action may successfully be brought in the English courts; and
	 
	18.1.2	 	to grant interim remedies or other provisional or protective relief.
	 
	18.2	 	Submission and service of process

	 	 	The Borrower accordingly irrevocably and unconditionally submits to the jurisdiction of
the English courts. Without prejudice to any other mode of service the Borrower:
	 
	18.2.1	 	irrevocably empowers and appoints HFW Nominees Ltd at present of Friary Court, 65 Crutched
Friars, London EC3N 2AE, England as its agent to receive and accept on its behalf any process
or other document relating to any proceedings before the English courts in connection with
this Agreement;
	 
	18.2.2	 	agrees to maintain such an agent for service of process in England from the date hereof
until the end of the Facility Period;
	 
	18.2.3	 	agrees that failure by a process agent to notify the Borrower of service of process will not
invalidate the proceedings concerned;
	 
	18.2.4	 	without prejudice to the effectiveness of service of process on its agent under clause
18.2.1 above but as an alternative method, consents to the service of process relating to any
such proceedings by mailing or delivering a copy of the process to its address for the time
being applying under clause 16.2;
	 
	18.2.5	 	agrees that if the appointment of any person mentioned in clause 18.2.1 ceases to be
effective, the Borrower shall immediately appoint a further person in England to accept
service of process on its behalf in England and, failing such appointment with in seven (7)
days the Bank shall thereupon be entitled and is hereby irrevocably authorised by the Borrower
in those circumstances to appoint such person by notice to the Borrower.
	 
	18.3	 	Forum non conveniens and enforcement abroad
	 
	 	 	The Borrower:
	 
	18.3.1	 	waives any right and agrees not to apply to the English court or other court in any
jurisdiction whatsoever to stay or strike out any proceedings commenced in England on the
ground that England is an inappropriate forum and/or that proceedings have been or will be
started in any other jurisdiction in connection with any dispute or related matter falling
within clause 18.1; and
	 
	18.3.2	 	agrees that a judgment or order of an English court in a dispute or other matter falling
within clause 18.1 shall be conclusive and binding on the Borrower and may be enforced against
it in the courts of any other jurisdiction.
	 
	18.4	 	Right of Bank, but not Borrower, to bring proceedings in any other jurisdiction
	 
	18.4.1	 	nothing in this clause 18 limits the right of the Bank to bring proceedings, including third
party proceedings, against the Borrower, or to apply for interim remedies, in connection with
this Agreement in any other court and/or concurrently in more than one jurisdiction;

45

 

	18.4.2	 	the obtaining by the Bank of judgment in one jurisdiction shall not prevent the Bank from
bringing or continuing proceedings in any other jurisdiction, whether or not these shall be
founded on the same cause of action.
	 
	18.5	 	Enforceability despite invalidity of Agreement
	 
	 	 	The jurisdiction agreement contained in this clause 18 shall be severable from the rest of
this Agreement and shall remain valid, binding and in full force and shall continue to
apply notwithstanding this Agreement or any part thereof being held to be avoided,
rescinded, terminated, discharged, frustrated, invalid, unenforceable, illegal and/or
otherwise of no effect for any reason.
	 
	18.6	 	Effect in relation to claims by and against non-parties
	 
	18.6.1	 	for the purpose of this clause “Foreign Proceedings” shall mean any Proceedings except
proceedings brought or pursued in England arising out of or in connection with or in any way
related to any of the Security Documents or any assets subject thereto or any action of any
kind whatsoever taken by the Bank pursuant thereto or which would, if brought by the Borrower
against the Bank, have been required to be brought in the English courts;
	 
	18.6.2	 	the Borrower shall not bring or pursue any Foreign Proceedings against the Bank and the
Borrower shall use its best endeavours to prevent persons not party to this Agreement from
bringing or pursuing any Foreign Proceedings against the Bank;
	 
	18.6.3	 	If, for any reason whatsoever, any Security Party and/or any third party brings or pursues
against the Bank any Foreign Proceedings, the Borrower shall indemnify the Bank on demand in
respect of any and all claims, losses, damages, demands, causes of action, liabilities, costs
and expenses (including, but not limited to, legal costs) of whatsoever nature howsoever
arising from or in connection with such Foreign Proceedings which the Bank certifies as having
been incurred by it;
	 
	18.6.4	 	the Bank and the Borrower hereby agree and declare that the benefit of this clause 18 shall
extend to and may be enforced by any officer, employee, agent or business associate of the
Bank against whom the Borrower brings a claim in connection howsoever with (i) any of the
Security Documents or any assets subject thereto or (ii) any action of any kind whatsoever
taken by, or on behalf of or for the purported benefit of the Bank pursuant thereto, or which,
if it were brought against the Bank, would fall within the material scope of clause 18.1. In
those circumstances this clause 18 shall be read and construed as if references to the Bank
were references to such officer, employee, agent or business associate, as the case may be.

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

46

 

	 	 	 	 	 	 	 	 	 	 	 	 	 

	Execution page
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SIGNED by Alexandros Laios

	 	 	)	 	 	 	 	 	 	 	 	 
	attorney-in-fact for and on behalf of

	 	 	)	 	 	 	 	 	 	 	 	 
	SOLANGE SHIPPING LTD.

	 	 	)	 	 	 	 	 	 	 	 	 
	pursuant to a Power of Attorney

	 	 	)	 	 	/s/ Alexandros Laios
 

	 	 	 	 	 	 
	dated 18 August 2011
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SIGNED by Christina Margelou

	 	 	)	 	 	 	 	 	 	 	 	 
	and by Evangelia Makri

	 	 	)	 	 	 	 	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 	 	 	 	 
	EMPORIKI BANK OF GREECE S.A.

	 	 	)	 	 	/s/ Christina Margelou
 

Authorised signatories
	 	 
	 	/s/ Evangelia Makri
 

	 	 

47exv4w1

Exhibit 4.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

dated as of August 19, 2011

among

MCDERMOTT INTERNATIONAL, INC.

as the Borrower

and

THE LENDERS AND ISSUERS PARTY HERETO

and

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK

as Administrative Agent, Collateral Agent, Joint Lead Arranger and Joint Bookrunner

and

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

and

WELLS FARGO SECURITIES, LLC

as Joint Lead Arrangers and Joint Bookrunners

and

BNP PARIBAS

as Syndication Agent

and

WELLS FARGO BANK, N.A.

and

BANK OF AMERICA, N.A.

and

DNB NOR BANK ASA

and

BBVA COMPASS

as Co-Documentation Agents

 

 

AMENDMENT NO. 1 AND CONSENT

     This AMENDMENT NO. 1 AND CONSENT (the “Amendment”) dated August 19, 2011 (the
“Amendment No. 1 Effective Date”), is among MCDERMOTT INTERNATIONAL, INC., a Panamanian
corporation (“Borrower”), the Lenders and Issuers listed on the signature pages hereto, the
Guarantors party hereto, and CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as administrative agent
(in such capacity, the “Administrative Agent”) and as collateral agent (in such capacity,
the “Collateral Agent”). Reference is made to the Credit Agreement (the “Credit
Agreement”) dated May 3, 2010 among the Borrower, the Administrative Agent, and the Lenders and
Issuers party thereto.

     The parties hereto hereby agree as follows:

     Section 1. Defined Terms; Other Definitional Provisions. As used in this Amendment,
each of the terms defined herein shall have the meanings assigned to such terms herein. Each term
defined in the Credit Agreement and used herein without definition shall have the meaning assigned
to such term in the Credit Agreement, unless expressly provided to the contrary. The words
“hereof”, “herein”, and “hereunder” and words of similar import when used in this Amendment shall
refer to this Amendment as a whole and not to any particular provision of this Amendment.
Paragraph headings have been inserted in this Amendment as a matter of convenience for reference
only and it is agreed that such paragraph headings are not a part of this Amendment and shall not
be used in the interpretation of any provision of this Amendment.

     Section 2. Amendments to Credit Agreement.

     (a) Section 1.1 of the Credit Agreement is hereby amended by:

     (i) adding the following definitions in the appropriate alphabetical order:

     “Alternate Program” means any program providing for the
sale or other disposition of trade or other receivables entered into
by the Borrower or a Subsidiary of the Borrower on terms customary
for such financing transactions, the terms of which arrangement do
not impose any recourse or repurchase obligations upon the Borrower
or any Restricted Subsidiary except for reasonably customary
representations, warranties, covenants and indemnities by the
Borrower or a Restricted Subsidiary in connection therewith.

     “Alternate Program Indebtedness” means, at any time, the
liabilities of the Borrower or a Subsidiary of the Borrower under an
Alternate Program that would be outstanding at such time thereunder
if the same were structured as a secured lending arrangement rather
than a purchase and sale arrangement.

     “Amendment No. 1 Effective Date” means August 19, 2011.

     “Net Financing Proceeds” means, with respect to the incurrence
by any Person of any Indebtedness to any other Person, an amount
equal to (a) the gross cash proceeds received by such Person from
such incurrence or issuance less (b) all underwriting
commissions, legal, investment banking, brokerage and

2

 

accounting and other professional fees, sales commissions and other disbursements
actually incurred in connection with such sale or issuance.

     “Non-cash Consideration” means the Fair Market Value of
non-cash consideration received by the Borrower or a Restricted
Subsidiary in connection with an Asset Sale less the amount of cash
or Cash Equivalents received in connection with a subsequent sale of
or collection on such Non-cash Consideration.

     “Specified Vessel Sale” means, so long as no Default or Event
of Default is continuing or would result therefrom, the sale for
Fair Market Value of any or all of the following marine vessels:
McDermott Derrick Barge No. 26, Acadian Sea, Burin Sea, Hebron Sea,
Mariner Sea, Panuke Sea, Trinity Sea, Venture Sea, Ryan Leet,
Intrepid Sea, and Sable Sea, together with the assets related to
such vessels.

          (ii) amending the definition of “Capital Lease” by adding the following sentence to the
end:

Notwithstanding the foregoing, any lease that would have been
accounted for as an operating lease on a balance sheet of such
Person prepared in conformity with GAAP as in effect on the
Amendment No. 1 Effective Date shall be deemed not to be a Capital
Lease.

          (iii) amending the definition of “Cobia Entities” in its entirety as follows:

“Cobia Entities” means, collectively, Cobia AcquisitionCo,
North Ocean II KS, a limited partnership organized and existing
under the laws of Norway, North Ocean II AS, a private limited
liability company organized and existing under the laws of Norway,
North Ocean V AS, a private limited liability company organized and
existing under the laws of Norway, and North Ocean 105 AS, a private
limited liability company organized and existing under the laws of
Norway. “Cobia Entity” means any of the Cobia Entities.

          (iv) amending the definition of “Co-Documentation Agents” in its entirety as follows:

“Co-Documentation Agents” means Wells Fargo Bank, N.A., Bank of
America, N.A., DnB NOR Bank ASA, and BBVA Compass, each in their
capacity as co-documentation agent.

          (v) amending the definition of “Fair Market Value” by replacing “an Asset Sale to be
made pursuant to Section 8.4(h) or (i)” with “an Asset Sale to be made pursuant to Section 8.4(h),
(i), (o), (p), or (q) (Sale of Assets)”;

          (vi) amending the definition of “Financial Covenant Debt” by replacing “specified in clauses
(a), (b), (c), (d), (e), (f), (g) and (h) of the definition of “Indebtedness”

3

 

determined on a consolidated basis” with “specified in clauses (a), (b), (c), (d), (e), (f), (g), (h) and (k) of
the definition of “Indebtedness” determined on a consolidated basis”;

          (vii) amending the definition of “Indebtedness” by (A) deleting the “and” at the end of
clause (j), (B) changing clause (k) to be a new clause (l), and (C) adding a new clause (k) to
read as follows:

          (k) all Alternate Program Indebtedness of such Person; and

          (viii) amending the definition of “Interest Expense” by adding the following sentence to
the end:

Notwithstanding the foregoing, the interest component of all
payments associated with any lease that would have been accounted
for as an operating lease on a balance sheet of such Person prepared
in conformity with GAAP as in effect on the Amendment No. 1
Effective Date shall be excluded from Interest Expense.

          (ix) amending the definition of “Joint Venture” in its entirety as follows:

     “Joint Venture” means any Person (a) in which the Borrower
or a Subsidiary of the Borrower, directly or indirectly, owns at
least 25% of the Stock or Stock Equivalents of such Person and (b)
that is not a Subsidiary of the Borrower. As of the Amendment No. 1
Effective Date, the Persons listed on Schedule 1.1 are Joint
Ventures.

          (x) amending the definition of “Net Cash Proceeds” by adding “or (h)” immediately
following “referenced in Section 8.4(i)”;

          (xi) amending clause (e) of the definition of “Permitted Acquisition” by adding “or (m)
(Indebtedness)” immediately following “Section 8.1(d)”; and

          (xii) amending clause (a) of the definition of “Revolving Facility Termination Date” in its
entirety to read “(a) the fifth anniversary of the Amendment No. 1 Effective Date,”.

     (b) Section 2.9(b) of the Credit Agreement is hereby amended by (i) replacing “Upon receipt”
with “Within 12 months after the receipt thereof,” (ii) adding “or (h)” immediately following
“pursuant to Section 8.4(i)” and (iii) adding “remaining after application of such Net Cash
Proceeds as otherwise permitted in such Section” immediately following “such amounts”.

     (c) Section 2.12(b)(i) of the Credit Agreement is hereby amended by replacing “an issuance fee
of 0.250% per annum” with “an issuance fee of 0.150% per annum”;

     (d) Section 5.1 of the Credit Agreement is hereby amended by replacing “2.50:1.00” with
“3.00:1.00”.

     (e) Section 7.11(a) of the Credit Agreement is hereby amended by:

          (i) adding “or (m)” immediately following “Section 8.1(d)” in clause (iv); and

4

 

          (ii) adding “or (m)” immediately following “Section 8.1(d)” in clause (v).

     (f) Section 7.12 of the Credit agreement is hereby amended by replacing “(other than any such
Real Property acquired with Indebtedness permitted by Section 8.1(d) or (g) (Indebtedness))” with
"(other than any such Real Property acquired with Indebtedness permitted by Section 8.1(d), (g) or
(m) (Indebtedness))”

     (g) Section 8.1 of the Credit Agreement is hereby amended by:

          (i) amending clause (d) in its entirety as follows:

     (d) secured Indebtedness of the Borrower or any Restricted
Subsidiary including Capital Lease Obligations and purchase money
Indebtedness incurred by the Borrower or a Restricted Subsidiary of
the Borrower to finance (concurrently with or within 90 days after)
the acquisition of tangible property (including marine vessels) and
Indebtedness in respect of sale and leaseback transactions, but
excluding Indebtedness incurred or assumed in connection with an
Acquisition, in an aggregate outstanding principal amount not to
exceed $250,000,000.00 at any time;

          (ii) amending clause (g) in its entirety as follows:

     (g) unsecured Indebtedness of the Borrower and its
Restricted Subsidiaries so long as immediately after giving effect
to the issuance, incurrence or assumption of any such unsecured
Indebtedness, the Leverage Ratio for the most recent four-quarter
period for which financial statements are available calculated on a
pro forma basis does not exceed 2.75:1.00;

          (iii) deleting “and” from the end of clause (k);

          (iv) replacing the period at the end of clause (l) with a semicolon;

          (v) adding the following new clauses (m), (n) and (o):

     (m) Indebtedness incurred or assumed in connection with an
Acquisition permitted under Section 8.3 (Acquisitions);

     (n) Indebtedness in respect of matured or drawn Performance
Guarantees, provided that such Indebtedness is reimbursed or
extinguished within 5 Business Days of being matured or drawn; and

     (o) Alternate Program Indebtedness.

     (h) Section 8.2 of the Credit Agreement is hereby amended by:

          (i) amending clause (d) by adding “or (m)” immediately following “Indebtedness permitted
under Section 8.1(d)”;

5

 

               (ii) amending clause (l) by replacing “shall not exceed $10,000,000.00 at any time” with
“shall not exceed $30,000,000.00 at any time”.

               (iii) deleting “and” from the end of clause (m);

               (iv) replacing the period at the end of clause (n) with “; and”;

               (v) adding the following new clause (o):

          (o) Liens created by any Alternate Program permitted under
Section 8.4(n) (Sale of Assets) (or any document executed by the
Borrower or any Subsidiary of the Borrower in connection therewith).

     (i) Section 8.3 of the Credit Agreement is hereby amended by replacing “Permitted Cobia
Acquisition” with “Cobia Permitted Acquisition”.

     (j) Section 8.4 of the Credit Agreement is hereby amended by:

               (i) amending clause (h) in its entirety as follows:

          (h) as long as no Default or Event of Default is
continuing or would result therefrom, (i) any other Asset Sale
(other than an Asset Sale in respect of a Mortgaged Vessel or Stock in a Mortgaged Vessel
Owning Subsidiary) for Fair Market Value, at least 75% of which is
payable in cash or Cash Equivalents upon such sale; and (ii) any
other Asset Sale for Fair Market Value so long as the Non-cash
Consideration from such Asset Sale and all other Asset Sales made in
reliance upon this clause (h)(ii) after the Amendment No. 1
Effective Date does not exceed $30,000,000.00; provided that, in
either case, the Revolving Commitments shall be permanently reduced
as set forth in Section 2.5(b) (Reduction and Termination of the
Revolving Commitments) by an amount equal to 100% of the Net Cash
Proceeds from such Asset Sale minus the amounts that are applied by
the Borrower and its Restricted Subsidiaries within 12 months from
the later of the date of such Asset Sale or the receipt of such Net
Cash Proceeds to (A) acquire other assets in an Eligible Line of
Business, which assets shall concurrently with their acquisition
become Collateral if and to the extent required by Section 7.11
(Additional Collateral and Guaranties; Collateral Fall-away) or (B)
make capital expenditures to improve or repair existing assets of
the Borrower or its Restricted Subsidiaries;

               (ii) deleting “and” from clause (l);

               (iii) replacing the period at the end of clause (m) with a semicolon;

               (iv) adding the following new clauses (n) through (q):

          (n) dispositions of any receivables and related rights
pursuant to any Alternate Program so long as immediately after
giving effect to such disposition the Borrower will be in pro forma
compliance with Section 5.1 (Maximum

6

 

Leverage Ratio) for the most recent four-quarter period for which financial statements are
available;

     (o) any Specified Vessel Sale;

     (p) the sale of the fabrication yard owned by J. Ray McDermott,
Inc. located at 118 Highway 361, Port Aransas, Texas 78373 for Fair
Market Value so long as no Default or Event of Default is continuing
or would result therefrom; and

     (q) the sale of up to 50% of the Stock of Barmada McDermott (L)
Limited and up to 45% of the Stock of Barmada McDermott Sdn. Bhd.,
for Fair Market Value in either case so long as no Default or Event
of Default is continuing or would result therefrom.

          (v) adding the following sentence to the end of Section 8.4:

Notwithstanding the foregoing, no Asset Sale shall be permitted hereunder if the assets being
disposed of in such transaction or any series of related transactions would, in the aggregate,
constitute a material portion of the business of the Borrower and its Restricted Subsidiaries taken
as a whole.

     (k) Section 8.5 of the Credit Agreement is hereby amended by:

          (i) amending clause (e) in its entirety as follows:

(e) so long as no Default or Event of Default has occurred and
is continuing, or would result therefrom, Restricted Payments (other
than guarantees and indemnities for the benefit of Babcock & Wilcox
Investment Company or any of its Subsidiaries) in an aggregate amount not to
exceed (i) $100,000,000.00 during any Fiscal Year plus (ii)
beginning in Fiscal Year 2011, the lesser of (A) the aggregate
amount of Restricted Payments permitted to be made pursuant to this
clause (e) in the prior Fiscal Year and not made in such prior
Fiscal Year and (B) $50,000,000.00;

          (ii) amending clause (q) in its entirety as follows:

     (q) (i) contributions to Joint Ventures and Subsidiaries
that are not Guarantors of assets not constituting Collateral and
not required to be Collateral (other than assets that are not
Collateral or required to be Collateral under clause (i) of the
definition of “Excluded Asset” in the Pledge and Security Agreement)
and (ii) Hedging Contracts (and payments thereunder) that are not
speculative in nature entered into on behalf of Joint Ventures and
Subsidiaries, so long as any payment by the Borrower or any
Restricted Subsidiary under any such Hedging Contract is reimbursed
by the applicable Joint Venture or Subsidiary in the ordinary course
of business;

     (iii) deleting the “and” at the end of clause (p); and

7

 

     (iv) adding a new clause (r) to read as follows:

(r) other than those disclosed on Schedule 8.5 (Existing
Investments), direct or indirect Investments, including Letters of
Credit and other credit support obligations, in Subsidiaries that
are not Guarantors or Joint Ventures that are not Guarantors, but in
each case are engaged in an Eligible Line of Business, in an
aggregate amount not to exceed the Net Financing Proceeds received
by the Borrower and its Restricted Subsidiaries of Indebtedness
permitted to be incurred hereunder (other than the Loans).

     (l) Section 8.9 of the Credit Agreement is hereby amended by replacing “Section 8.1(b),
(d) or (e)” with “Section 8.1(b), (d), (e) or (m)”.

     (m) Section 8.13 of the Credit Agreement is hereby amended by replacing “$100,000,000.00” with
“$200,000,000.00”.

     (n) Section 8.14 of the Credit Agreement is hereby amended by replacing “$400,000,000.00” with
“$600,000,000.00”.

     (o) Section 9.1 of the Credit Agreement is hereby amended by:

     (i) replacing “$10,000,000.00” with “$50,000,000.00” in clause (e)(i);

     (ii) replacing “$10,000,000.00” with “$50,000,000.00” in clause (g); and

     (iii) replacing “$20,000,000.00” with “$50,000,000.00” in clause (h)(i).

     (p) Schedule I to the Credit Agreement is hereby amended and restated in its entirety with
Schedule I attached hereto.

     (q) Schedule II to the Credit Agreement is hereby amended and restated in its entirety with
Schedule II attached hereto.

     (r) Schedule IV to the Credit Agreement is hereby amended and restated in its entirety with
Schedule IV attached hereto.

     (s) Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety with
Schedule 1.1 attached hereto.

     (t) Schedule 4.7 to the Credit Agreement is hereby amended and restated in its entirety with
Schedule 4.7 attached hereto.

     Section 3. Amendments to Pledge and Security Agreement.

     (a) Section 5.10(e) of the Pledge and Security Agreement is hereby amended in its entirety as
follows:

(e) Upon request of the Collateral Agent, each Grantor shall
execute and deliver, and have recorded in the United States Patent and Trademark Office or

8

 

the United States Copyright Office, as
applicable, any and all agreements, instruments, documents, and
papers as the Collateral Agent may request to evidence the
Collateral Agent’s security interest in any Copyright, Patent,
Trademark or other Intellectual Property of such Grantor.

     (b) Section 5.10(i) of the Pledge and Security Agreement is hereby amended in its
entirety as follows:

(i) Such Grantor agrees that, should it obtain an ownership
interest in any item of intellectual property which is not, as of
the Effective Date, a part of the Intellectual Property Collateral
(the “After-Acquired Intellectual Property”), (i) the
provisions of Section 3 shall automatically apply thereto and (ii)
any such After-Acquired Intellectual Property, and in the case of
trademarks, the goodwill of the business connected therewith or
symbolized thereby, shall automatically become part of the
Collateral.

(c) Section 5.10(j) of the Pledge and Security Agreement is hereby deleted.

(d) Section 5.10(k) of the Pledge and Security Agreement is hereby deleted.

(e) Section 5.10(l) of the Pledge and Security Agreement is hereby re-numbered as Section
5.10(j).

     Section 4. Consent. The Lenders hereby consent to the release and termination of the
Collateral Agent’s lien on and security interest in each of McDermott Derrick Barge No. 26, Acadian
Sea, Burin Sea, Hebron Sea, Mariner Sea, Panuke Sea, Trinity Sea, Venture Sea and the fabrication
yard owned by J. Ray McDermott, Inc. located at 118 Highway 361, Port Aransas, Texas 78373.

     Section 5. Release of Guarantor.

     (a) From and after the Amendment No. 1 Effective Date, (i) the obligations of Barmada
McDermott (L) Limited (the “Released Guarantor”) under the Pledge and Security Agreement
and each other Loan Document are hereby released, terminated and no longer of any force and effect
(except for those obligations that expressly survive the termination of the Pledge and Security
Agreement and release of the lien created thereby) and (ii) the lien on and security
interest in the Collateral granted by the Released Guarantor pursuant to the Pledge and
Security Agreement and any other Loan Document are hereby released, terminated and no longer of any
force and effect.

     (b) The Collateral Agent shall, upon the reasonable request of the Released Guarantor and at
the sole cost and expense of the Released Guarantor, execute and deliver such UCC-3 termination
statements, releases of security interests and other instruments, in each case in proper form for
recording, as the Released Guarantor shall reasonably request to evidence the release expressly
contemplated herein.

     Section 6. Borrower Representations and Warranties. The Borrower represents and
warrants that:

9

 

     (a) both before and after giving effect to this Amendment and any Loan or Issuance on the
Amendment No. 1 Effective Date, the representations and warranties set forth in Article IV of the
Credit Agreement and in the other Loan Documents that have no materiality or Material Adverse
Effect qualification are true and correct in all material respects and the representations and
warranties set forth in Article IV of the Credit Agreement and in the other Loan Documents that
have a materiality or Material Adverse Effect qualification are true and correct in all respects,
in each case with the same effect as though made on and as of the Amendment No. 1 Effective Date
or, to the extent such representations and warranties expressly relate to an earlier date, as of
such earlier date;

     (b) both before and after giving effect to this Amendment and any Loan or Issuance on the
Amendment No. 1 Effective Date, no Default or Event of Default has occurred and is continuing;

     (c) the execution, delivery and performance of this Amendment are within the corporate or
other organizational power and authority of the Borrower and each Guarantor and have been duly
authorized by appropriate organizational and governing action and proceedings;

     (d) the execution and delivery by the Borrower and each Guarantor of this Amendment does not
and will not (i) violate (A) any provision of any law, statute, rule or regulation, or of the
certificate or articles of incorporation or partnership agreement, other constitutive documents or
by-laws of the Borrower or any such Guarantor or (B) any applicable order of any court or any rule,
regulation or order of any Governmental Authority, (ii) be in conflict with, result in a breach of
or constitute (alone or with notice or lapse of time or both) a default under any Contractual
Obligation of the Borrower or any Guarantor, where any such conflict, violation, breach or default
referred to in clause (i) or (ii) of this clause (d), individually or in the aggregate could
reasonably be expected to have a Material Adverse Effect, (iii) except as permitted under the
Credit Agreement (as amended by this Amendment), result in or require the creation or imposition of
any Lien upon any of the properties or assets of the Borrower or any such Guarantor (other than any
Liens created under any of the Loan Documents in favor of the Collateral Agent on behalf of the
Secured Parties), or (iv) require any approval of stockholders or partners or any approval or
consent of any Person under any Contractual Obligation of the Borrower or any Guarantor except for
such approvals or consents which have been obtained and except for any such approvals or consents
the failure of which to obtain will not have a Material Adverse Effect;

     (e) the person who is executing this Amendment on behalf of the Borrower and each Guarantor
has the full power, authority and legal right to do so, and this Amendment has been duly executed
by such person and delivered to the Administrative Agent;

     (f) as of the Amendment No. 1 Effective Date, no litigation not listed on Schedule 4.7
hereto has been commenced against the Borrower or any of its Restricted Subsidiaries that could
reasonably be expected to have a Material Adverse Effect; and

     (g) this Amendment constitutes the legal, valid, and binding obligation of the Borrower
enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the rights of creditors generally

10

 

and general principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

     Section 7. Changes in Lenders and Commitments. On the Amendment No. 1 Effective Date:

     (a) Each Person listed on Schedule I hereto shall be a Lender with a Revolving
Commitment in the applicable amount set forth for such Lender in Schedule I.

     (b) Each Lender which is not a Lender (as defined in the Credit Agreement) (a “New
Lender”) shall purchase Loans from other Lenders (as defined in the Credit Agreement) party to
the Credit Agreement in an amount such that, after giving effect thereto, the aggregate amount of
such Loans shall bear the same relationship to the Revolving Commitment of such New Lender as the
outstanding Loans of other Lenders bear to their Revolving Commitments.

     (c) The participations of the Lenders in Letters of Credit and the Swing Loans shall be
redetermined on the basis of their respective Commitments set forth in Schedule I, all
pursuant to the terms of the Credit Agreement as amended by this Amendment (the “Amended Credit
Agreement”).

     (d) Any Lender (as defined in the Credit Agreement) party to the Credit Agreement but not
listed in Schedule I (each, a “Departing Lender”) shall cease to be a Lender party
to the Amended Credit Agreement, shall cease to have a Revolving Commitment thereunder or any
participation in outstanding Letters of Credit or Swing Loans, and all Loans made by such Departing
Lender shall be paid to such Departing Lender on the Amendment No. 1 Effective Date in accordance
with this Section 7 by the Lenders (as defined in the Amended Credit Agreement).

     (e) Any Lender which is not a New Lender, but whose Ratable Portion (as defined in the Amended
Credit Agreement) is greater than its Ratable Portion (as defined in the Credit Agreement)
previously in effect shall be deemed a New Lender for purposes hereof to the extent of such
increase, and any such Lender whose Ratable Portion (as defined in the Amended Credit Agreement) is
less than its Ratable Portion (as defined in the Credit Agreement) previously in effect shall be
deemed a Departing Lender for purposes hereof to the extent of such decrease.

     (f) The Lenders which are parties to the Credit Agreement, comprising the “Requisite Lenders”
as defined therein, hereby waive any requirement of notice of prepayment of Loans to the extent
necessary to give effect to Section 8(k) and this Section 7.

     Section 8. Conditions to Effectiveness. This Amendment shall become effective on the
Amendment No. 1 Effective Date and enforceable against the Borrower, the Lenders, the
Administrative Agent and the Issuers upon:

     (a) receipt by the Administrative Agent of this Amendment executed by the Borrower, each
Guarantor other than the Released Guarantor, the Administrative Agent, each Issuer listed on
Schedule IV and each Lender listed on Schedule I;

11

 

     (b) receipt by the Administrative Agent of favorable written opinions of (i) Baker Botts,
L.L.P., counsel to the Loan Parties, (ii) Liane K. Hinrichs, General Counsel of the Borrower, (iii)
Arias, Fábrega & Fábrega, special Panamanian counsel to certain of the Loan Parties, and (iv) each
other special and local counsel to the Loan Parties as the Administrative Agent may reasonably
request, in each case dated as of the Amendment No. 1 Effective Date and addressed to the
Administrative Agent, the Collateral Agent, the Syndication Agent, the Co-Documentation Agents, the
Lenders and the Issuers and addressing such matters as any Lender through the Administrative Agent
may reasonably request;

     (c) receipt by the Administrative Agent of amendments to each Mortgage granting a Lien on a
Mortgaged Vessel flagged in Panama (other than McDermott Derrick Barge No. 26);

     (d) receipt by the Administrative Agent of financial projections of the Borrower and its
Subsidiaries covering the Fiscal Years ending in 2011 through 2015, inclusive;

     (e) receipt by the Administrative Agent of certificates as to the good standing of each Loan
Party organized in the United States or Panama dated as of a recent date from the appropriate
governmental authority of the jurisdiction of its organization;

     (f) receipt by the Administrative Agent of (i) a certificate of an Authorized Officer, the
Secretary of the Assistant Secretary of each Loan Party dated the Amendment No. 1 Effective Date
and certifying (A) (I) that attached thereto is a true and complete copy of the by-laws or similar
document of such Loan Party as in effect on the Amendment No. 1 Effective Date and at all times
since a date prior to the date of the resolutions described in clause (B) below or (II) that the
by-laws or similar document of such Loan Party previously certified to the Administrative Agent has
not been modified, rescinded or amended and are in full force and effect on the Amendment No. 1
Effective Date and at all times since a date prior to the date of the resolutions described in (B)
below; (B) that attached thereto is a true and complete copy of resolutions duly adopted by the
board of directors (or similar governing body) of such Loan Party authorizing the execution,
delivery and performance of the Amendment and that such resolutions have not been modified,
rescinded or amended and are in full force and effect; (C) (I) that the certificate or articles of
incorporation or other formation documents of such Loan Party have not been amended since the date
of the last certification of such documents to the Administrative Agent or (II) that attached
thereto is a copy of the certificate or articles of incorporation or other formation documents of
such Loan Party; and (D) as to the incumbency and specimen signature of each officer executing the
Amendment or any other document
delivered in connection herewith on behalf of such Loan Party; and (ii) a certificate of
another officer as to the incumbency and specimen signature of the Authorized Officer executing the
certificate pursuant to clause (i) above;

     (g) to the extent requested, receipt by the Agents and the Lenders of all documentation and
other information required by bank regulatory authorities under applicable “know your customer” and
anti-money laundering rules and regulations, including, without limitation, the USA Patriot Act;

     (h) receipt by the Administrative Agent, for the account of the Administrative Agent and the
Lenders, as applicable, and to CA CIB, for its own account, all fees and expenses (including
reasonable fees and expenses of counsel to the Administrative Agent to the extent the

12

 

Borrower receives invoices therefor at least one Business day prior to the Amendment No. 1 Effective Date)
due and payable on or before the Amendment No. 1 Effective Date;

     (i) receipt by the Administrative Agent of such other approvals, opinions or documents as the
Administrative Agent may reasonably request;

     (j) all accrued interest on the Loans and all accrued fees payable under the Credit Agreement
as in effect immediately prior to the effectiveness of the Amendment shall have been paid (or shall
be paid substantially simultaneously with the closing hereunder) by the Borrower; and

     (k) all Loans owing to Departing Lenders shall have been paid in accordance with Section 7 of
this Amendment by the Lenders (as defined in the Amended Credit Agreement).

     Section 9. Post-Closing Covenant. Within 5 Business Days after the Amendment No. 1
Effective Date (or such longer period as the Administrative Agent may determine in its sole
discretion), the Borrower agrees to deliver to the Administrative Agent legal opinions in form and
substances reasonably satisfactory to the Administrative Agent from Borrower’s special Cayman
Islands counsel with respect to J. Ray McDermott International Vessels, Ltd.

     Section 10. Reaffirmation of Credit Support.

     (a) Each of the Borrower and each Guarantor (collectively, the “Credit Support
Parties”) has read this Amendment and consents to the terms hereof and further hereby confirms
and agrees that, notwithstanding the effectiveness of this Amendment, the obligations of such
Credit Support Party under, and the Liens granted by such Credit Support Party as collateral
security for the Indebtedness, obligations and liabilities evidenced by the Credit Agreement and
the other Loan Documents pursuant to, each of the Loan Documents to which such Credit Support Party
is a party shall not be impaired and each of the Loan Documents to which such Credit Support Party
is a party is, and shall continue to be, in full force and effect and are hereby confirmed and
ratified in all respects.

     (b) Each Credit Support Party (other than the Borrower) acknowledges and agrees that (i)
notwithstanding the conditions to effectiveness set forth in this Amendment, such Credit Support
Party is not required by the terms of the Credit Agreement or any other Loan Document to consent to
the amendments to the Credit Agreement effected pursuant to this Amendment and
(ii) nothing in the Credit Agreement, this Amendment or any other Loan Document shall be
deemed to require the consent of such Credit Support Party to any future amendments to the Credit
Agreement.

     Section 11. Acknowledgments and Agreements.

     (a) The Borrower acknowledges that on and as of the Amendment No. 1 Effective Date all
Obligations are payable without defense, offset, counterclaim or recoupment. Each of the Borrower,
the Administrative Agent, each Issuer party hereto and each Lender party hereto does hereby adopt,
ratify, and confirm the Credit Agreement, as amended hereby, and acknowledges and agrees that the
Credit Agreement, as amended hereby, is and remains in full force and effect, and the Borrower
acknowledges and agrees that its liabilities and obligations

13

 

under the Credit Agreement, as amended
hereby, are not impaired in any respect by this Amendment.

     (b) From and after the Amendment No. 1 Effective Date, all references to the Credit Agreement
shall mean the Credit Agreement as amended hereby. This Amendment is a Loan Document for the
purposes of the provisions of the other Loan Documents. Without limiting the foregoing, any breach
of representations, warranties, and covenants under this Amendment shall be a Default or Event of
Default, as applicable, under the Credit Agreement.

     Section 12. Miscellaneous.

     (a) Except as specifically modified by this Amendment, the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and confirmed.

     (b) Except as specifically provided by this Amendment, the execution, delivery and performance
of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any
right, power or remedy of any Agent, Lender or Issuer under, the Credit Agreement or any of the
other Loan Documents.

     (c) The Borrower, the Lenders and the Issuers acknowledge the issuance prior to the Amendment
No. 1 Effective Date of each Letter of Credit listed on Schedule 1 hereto (the “Issued
Letters of Credit”), which Schedule indicates whether each such Issued Letter of Credit is a
Financial Letter of Credit or a Performance Letter of Credit.

     Section 13. Counterparts. This Amendment may be signed in any number of counterparts,
each of which shall be an original and all of which, taken together, constitute a single
instrument. This Amendment may be executed by facsimile or other electronic signature and all such
signatures shall be effective as originals.

     Section 14. Successors and Assigns. This Amendment shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns permitted pursuant to
the Credit Agreement.

     Section 15. Governing Law. This Amendment and the rights and obligations of the
parties hereto shall be governed by, and construed and interpreted in accordance with, the law of
the State of New York, without regard to its conflicts of laws provisions.

     Section 16. Entire Agreement. THIS AMENDMENT AND THE CREDIT AGREEMENT AS AMENDED
HEREBY, TOGETHER WITH ALL OF THE OTHER LOAN DOCUMENTS AND ALL CERTIFICATES AND DOCUMENTS DELIVERED
HEREUNDER OR THEREUNDER, EMBODY THE ENTIRE AGREEMENT OF THE PARTIES AND SUPERSEDES ALL PRIOR
AGREEMENTS AND UNDERSTANDINGS RELATING TO THE SUBJECT MATTER HEREOF. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.

[Signature pages follow.]

14

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

MCDERMOTT INTERNATIONAL, INC.

 	 
	 	By:  	
/s/ John E. Roueche, III
 	 
	 	 	Name:  	John E. Roueche, III 	 
	 	 	Title:  	Vice President,
Treasurer and Investor Relations 	 
	 

	 	 	 	 	 
	 	GUARANTORS:

ELDRIDGE PTE. LTD.

INTERNATIONAL VESSELS LTD.

J. RAY MCDERMOTT (LUXEMBOURG), S.AR.L.

J. RAY MCDERMOTT (NIGERIA) LIMITED

J. RAY MCDERMOTT INVESTMENTS B.V.

MCDERMOTT HOLDINGS (U.K.) LIMITED

MCDERMOTT INTERNATIONAL B.V.

MCDERMOTT INTERNATIONAL MARINE INVESTMENTS N.V.

MCDERMOTT KFT.

MC DERMOTT OVERSEAS INVESTMENT CO. N.V.

MCDERMOTT SERVICOS OFFSHORE DO BRASIL LTDA.

PT. BAJA WAHANA INDONESIA

SINGAPORE HUANGDAO PTE. LTD.

VARSY INTERNATIONAL N.V.

 	 
	 	By:  	/s/ John E. Roueche, III
 	 
	 	 	Name:  	John E. Roueche, III 	 
	 	 	Title:  	Authorized Representative 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	CHARTERING COMPANY (SINGAPORE) PTE. LTD.

EASTERN MARINE SERVICES, INC.

GLOBAL ENERGY — MCDERMOTT LIMITED

HYDRO MARINE SERVICES, INC.

J. RAY HOLDINGS, INC.

J. RAY MCDERMOTT (AUST.) HOLDING PTY. LIMITED

J. RAY MCDERMOTT (CASPIAN), INC.

J. RAY MCDERMOTT (QINGDAO) PTE. LTD.

J. RAY MCDERMOTT CANADA HOLDING, LTD.

J. RAY MCDERMOTT CANADA, LTD.

J. RAY MCDERMOTT CONTRACTORS, INC.

J. RAY MCDERMOTT DE MEXICO, S.A. DE C.V.

J. RAY MCDERMOTT ENGINEERING SERVICES PRIVATE LIMITED

J. RAY MCDERMOTT FAR EAST INC.

J. RAY MCDERMOTT INTERNATIONAL VESSELS, LTD.

J. RAY MCDERMOTT INTERNATIONAL, INC.

J. RAY MCDERMOTT KAZAKHSTAN LIMITED LIABILITY PARTNERSHIP

J. RAY MCDERMOTT LOGISTIC SERVICES PVT. LIMITED

J. RAY MCDERMOTT SOLUTIONS, INC.

J. RAY MCDERMOTT TECHNOLOGY, INC.

J. RAY MCDERMOTT UNDERWATER SERVICES, INC.

J. RAY MCDERMOTT WEST AFRICA HOLDINGS, INC.

 	 
	 	By:  	/s/ John E. Roueche, III
 	 
	 	 	Name:  	John E. Roueche, III 	 
	 	 	Title:  	Treasurer 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	J. RAY MCDERMOTT WEST AFRICA, INC.

MALMAC SDN. BHD.

MCDERMOTT ASIA PACIFIC PTE. LTD.

MCDERMOTT AUSTRALIA PTY. LTD.

MCDERMOTT CASPIAN CONTRACTORS, INC.

MCDERMOTT EASTERN HEMISPHERE, LTD.

MCDERMOTT ENGINEERING, LLC

MCDERMOTT FAR EAST, INC.

MCDERMOTT GULF OPERATING COMPANY, INC.

MCDERMOTT INTERNATIONAL INVESTMENTS CO., INC.

MCDERMOTT INTERNATIONAL TRADING CO., INC.

MCDERMOTT INTERNATIONAL VESSELS, INC.

MCDERMOTT MARINE CONSTRUCTION LIMITED 

MCDERMOTT MARINE MEXICO, S.A. DE C.V.

MCDERMOTT MIDDLE EAST, INC.

MCDERMOTT OFFSHORE SERVICES COMPANY, INC.

MCDERMOTT OLD JV OFFICE, INC.

MCDERMOTT OVERSEAS, INC.

MCDERMOTT SUBSEA ENGINEERING, INC.

MCDERMOTT TRADE CORPORATION

NORTH ATLANTIC VESSEL, INC.

OFFSHORE PIPELINES INTERNATIONAL, LTD.

OPI VESSELS, INC.

OPMI, LTD.

SABINE RIVER REALTY, INC.

SERVICIOS DE FABRICACION DE ALTAMIRA, S.A. DE C.V.

SERVICIOS PROFESIONALES DE ALTAMIRA, S.A. DE C.V.

SPARTEC, INC.

 	 
	 	By:  	/s/ John E. Roueche, III
 	 
	 	 	Name:  	John E. Roueche, III 	 
	 	 	Title:  	Treasurer 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	J. RAY MCDERMOTT HOLDINGS, LLC

J. RAY MCDERMOTT, S.A.

MCDERMOTT CAYMAN LTD.

MCDERMOTT, INC.

 	 
	 	By:  	/s/ John E. Roueche, III
 	 
	 	 	Name:  	John E. Roueche, III 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	MCDERMOTT INVESTMENTS, LLC

 	 
	 	By:  	/s/ John E. Roueche, III
 	 
	 	 	Name:  	John E. Roueche, III 	 
	 	 	Title:  	Vice President, Finance, Investor 

Relations and Treasury 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	CREDIT AGRICOLE CORPORATE AND

INVESTMENT BANK,

as Administrative Agent,

Collateral Agent, Lender and

Issuer

 	 
	 	By:  	/s/ Page Dillehunt
 	 
	 	 	Name:  	Page Dillehunt 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Michael D. Willis
 	 
	 	 	Name:  	Michael D. Willis 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Lender and Issuer

 	 
	 	By:  	/s/ G. Scott Lambert
 	 
	 	 	Name:  	G. Scott Lambert 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as Lender and Issuer

 	 
	 	By:  	/s/ Robert Corder
 	 
	 	 	Name:  	Robert Corder 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	BNP PARIBAS,

as Lender and Issuer

 	 
	 	By:  	/s/ Jamie Dillon
 	 
	 	 	Name:  	Jamie Dillon 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Joseph Mack
 	 
	 	 	Name:  	Joseph Mack 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	COMPASS BANK,

as Lender and Issuer

 	 
	 	By:  	/s/ Payton K. Swope
 	 
	 	 	Name:  	Payton K. Swope 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Lender and Issuer

 	 
	 	By:  	/s/ Stephanie Balette
 	 
	 	 	Name:  	Stephanie Balette 	 
	 	 	Title:  	Authorized Officer 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	CITIBANK, N.A.,

as Lender and Issuer

 	 
	 	By:  	/s/ John Miller
 	 
	 	 	Name:  	John Miller 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA,

as Lender

 	 
	 	By:  	/s/ J. Frazell
 	 
	 	 	Name:  	J. Frazell 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	NATIXIS,

as Lender

 	 
	 	By:  	/s/ Carlos Quinteros
 	 
	 	 	Name:  	Carlos Quinteros 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Timothy L. Polvado
 	 
	 	 	Name:  	Timothy L. Polvado 	 
	 	 	Title:  	Senior Managing Director 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	DNB NOR BANK ASA,

as Lender

 	 
	 	By:  	/s/ Sanjiv Nayar
 	 
	 	 	Name:  	Sanjiv Nayar 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Nikolai A. Nachamkin
 	 
	 	 	Name:  	Nikolai A. Nachamkin 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	ABN AMRO BANK N.V.,

as Lender

 	 
	 	By:  	/s/ M.N. Hooseveen
 	 
	 	 	Name:  	M. N. Hooseveen 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	/s/ M. M. Menr
 	 
	 	 	Name:  	M. M. Menr 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	HSBC BANK USA, N.A.,

as Lender

 	 
	 	By:  	/s/ Dale Wilson
 	 
	 	 	Name:  	Dale Wilson 	 
	 	 	Title:  	Senior Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Koby West
 	 
	 	 	Name:  	Koby West 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	STANDARD CHARTERED BANK,

as Lender

 	 
	 	By:  	/s/ James P. Hughes
 	 
	 	 	Name:  	James P. Hughes A2386 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Andrew K. Lueder
 	 
	 	 	Name:  	Andrew K. Lueder 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Lender

 	 
	 	By:  	/s/ Patrick Engel
 	 
	 	 	Name:  	Patrick Engel  	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	WHITNEY BANK,

as Lender

 	 
	 	By:  	/s/ Douglas M. Webster
 	 
	 	 	Name:  	Douglas M. Webster 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	AMEGY BANK NATIONAL
ASSOCIATION, as Lender

 	 
	 	By:  	/s/ Kenyatta Gibbs
 	 
	 	 	Name:  	Kenyatta Gibbs 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	CAPITAL ONE, N.A.,

as Lender

 	 
	 	By:  	/s/ Michael R. Quiray
 	 
	 	 	Name:  	Michael R. Quiray 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED,

as Lender

 	 
	 	By:  	/s/ John W. Wade
 	 
	 	 	Name:  	John W. Wade 	 
	 	 	Title:  	Deputy General Manager, Head of Operations and Infrastructure 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	UBS AG, STAMFORD BRANCH,

as Lender

 	 
	 	By:  	/s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director 	 
	 

	 	 	 	 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 

Signature Page to Amendment No. 1

 

 

Schedule I

REVOLVING COMMITMENTS

	 	 	 	 	 
	Lender	 	Revolving Commitment	 
	Crédit Agricole Corporate and Investment Bank
	 	$	80,000,000.00	 
	Bank of America, N.A.
	 	$	75,000,000.00	 
	DnB NOR Bank ASA
	 	$	75,000,000.00	 
	BNP Paribas
	 	$	75,000,000.00	 
	Wells Fargo Bank, N.A.
	 	$	75,000,000.00	 
	Compass Bank
	 	$	70,000,000.00	 
	Citibank, N.A.
	 	$	50,000,000.00	 
	JPMorgan Chase Bank, N.A.
	 	$	50,000,000.00	 
	Natixis
	 	$	50,000,000.00	 
	U.S. Bank National Association
	 	$	50,000,000.00	 
	UBS AG, Stamford Branch
	 	$	50,000,000.00	 
	ABN AMRO Bank N.V.
	 	$	35,000,000.00	 
	The Bank of Nova Scotia
	 	$	35,000,000.00	 
	HSBC Bank USA, N.A.
	 	$	35,000,000.00	 
	Standard Chartered Bank
	 	$	35,000,000.00	 
	Whitney Bank
	 	$	35,000,000.00	 
	Amegy Bank National Association
	 	$	25,000,000.00	 
	Australia and New Zealand Banking Group Limited
	 	$	25,000,000.00	 
	Capital One, N.A.
	 	$	25,000,000.00	 
	 
	 	 	 
	Total
	 	$	950,000,000.00	 
	 
	 	 	 

 

 

Schedule II

APPLICABLE COMMITMENT FEE RATE AND APPLICABLE MARGIN

“Applicable Commitment Fee Rate” means the applicable percentage set forth below, determined by
reference to the credit ratings of the Loans by each of S&P and Moody’s, respectively, in effect
from time to time; provided that (a) if the credit ratings of the Loans issued by S&P and Moody’s
differ by one tier (as set forth below) (the “Tier”), then the Tier for the higher of such credit
ratings shall apply (with the credit rating for Tier 1 being the highest and the credit rating for
Tier 5 being the lowest); (b) if the credit ratings of the Loans issued by S&P and Moody’s differ
by more than one Tier, then the Tier that is one Tier lower than the Tier of the higher credit
rating shall apply; (c) if the Loans have only one credit rating (other than as a result of S&P or
Moody’s ceasing to exist), then the Tier that is one Tier lower than that of such credit rating
shall apply and (d) if the Loans do not have a credit rating from S&P or Moody’s, then Tier 5 shall
apply. Notwithstanding the foregoing, from the Amendment No. 1 Effective Date through the date
that is six months after the Amendment No. 1 Effective Date, Tier 1 and Tier 2 will be unavailable.

	 	 	 	 	 	 	 	 	 
	Tier	 	 	Credit Rating	 	Commitment Fee	 
	 	1	 	 	≥BBB/Baa2
	 	 	0.200	%
	 	2	 	 	≥BBB-/Baa3
	 	 	0.250	%
	 	3	 	 	≥BB+/Ba1
	 	 	0.300	%
	 	4	 	 	≥BB/Ba2
	 	 	0.375	%
	 	5	 	 	≤BB-/Ba3
	 	 	0.450	%

“Applicable Margin” means, with respect to (a) Eurodollar Rate Loans, the applicable percentage set
forth below, per annum, determined by reference to the credit ratings of the Loans by each of S&P
and Moody’s, respectively, in effect from time to time, subject to the proviso set forth in the
definition of “Applicable Commitment Fee Rate” and (b) Base Rate Loans, an amount equal to the
Applicable Margin for Eurodollar Rate Loans determined in accordance with clause (a) above
minus 1.00% per annum. Notwithstanding the foregoing, from the Amendment No. 1 Effective
Date through the date that is six months after the Amendment No. 1 Effective Date, Tier 1 and Tier
2 will be unavailable.

 

 

	 	 	 	 	 	 	 	 	 
	Tier	 	 	Credit Rating	 	Applicable Margin for Eurodollar Rate Loans	 
	 	1	 	 	≥BBB/Baa2
	 	 	1.500	%
	 	2	 	 	≥BBB-/Baa3
	 	 	1.750	%
	 	3	 	 	≥BB+/Ba1
	 	 	2.000	%
	 	4	 	 	≥BB/Ba2
	 	 	2.250	%
	 	5	 	 	≤BB-/Ba3
	 	 	2.500	%

 

 

Schedule IV

LETTER OF CREDIT ISSUER COMMITMENTS

	 	 	 	 	 
	Issuer	 	Commitment	 
	Crédit Agricole Corporate and Investment Bank
	 	$	500,000,000.00	 
	Wells Fargo Bank, N.A.
	 	$	300,000,000.00	 
	BNP Paribas
	 	$	200,000,000.00	 
	Bank of America, N.A.
	 	$	150,000,000.00	 
	Compass Bank
	 	$	150,000,000.00	 
	Citibank, N.A.
	 	$	110,000,000.00	 
	JPMorgan Chase Bank, N.A.
	 	$	100,000,000.00	 

 

 

Schedule 1

EXISTING LETTERS OF CREDIT

Attached.

 

 

Schedule 1

McDermott International, Inc.

Existing Letters of Credit

As of August 19, 2011

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Financial/
	Letter of Credit Ho.	 	Issuing Bank	 	Beneficiary Customer	 	Mll Entity Hame	 	Next Expiry Date	 	Face Value	 	 	Performance
	Credit Agricole $900 million Credit Facility	 	 	 	 	 	 	 	 	 	 	 	 
	A30691T
	 	BBVA Compass	 	Petrobras N.B.V	 	J Ray McDermott SA	 	05/11/2012	 	$	15,00,000	 	 	P
	91902887
	 	BNP     Paribas San Francisco	 	RasGas Company Limited	 	McDermott Eastern Hemisphere Limited	 	04/30/2012	 	$	3,455,394	 	 	P
	91906975
	 	BNP     Paribas San Francisco	 	Qatar Liquefied Gas	 	McDermott Eastern Hemisphere Limited	 	05/25/2012	 	$	8,529,658	 	 	P
	91908595
	 	BNP Paribas San Francisco	 	Jebel Ali Free Zone Auth	 	McDermott Middle East Inc	 	05/25/2012	 	$	2,724,796	 	 	F
	04104840
	 	BNP Paribas San Francisco	 	Sarawak Shell Berhad	 	Barmada McDermott Sdn Bhd	 	06/24/2012	 	$	1,348,390	 	 	P
	04102143
	 	BNP Paribas San Francisco	 	Kebabangan	 	Barmada McDermott Sdn Bhd	 	10/16/2013	 	$	2,528,232	 	 	P
	021137008
	 	Credit Agricole CIB	 	Butler de Mexico	 	J Ray McDermott de Mexico	 	09/3O/2011	 	$	105,560	 	 	F
	016537014
	 	Credit Agricole CIB	 	Dolphin Energy	 	McDermott Middle East Inc	 	10/17/2011	 	$	7,000,000	 	 	P
	006437018
	 	Credit Agricole CIB	 	PTSC	 	J Ray McDermott Far East Inc	 	10/30/2011	 	$	4,313,493	 	 	P
	013737009
	 	Credit Agricole CIB	 	Chevron Australia Pty Ltd	 	P T McDermott Indonesia	 	10/31/2011	 	$	17,598,238	 	 	P
	529136002
	 	Credit Agricole CIB	 	Ministry of Economy	 	McDermott Middle East Inc	 	11/24/2011	 	$	13,624	 	 	F
	835437005
	 	Credit Agricole CIB	 	Qatar Shell	 	McDermott Eastern Hemisphere Limited	 	11/30/2011	 	$	6,906,220	 	 	P
	120137013
	 	Credit Agricole CIB	 	AGOC/KGOC	 	McDermott Middle East Inc	 	12/30/2011	 	$	2,000,000	 	 	P
	114737001
	 	Credit Agricole CIB	 	BG     E&P India Ltd.	 	McDermott Middle East Inc	 	01/10/2012	 	$	100,000	 	 	P
	834637009
	 	Credit Agricole CIB	 	RasGas Company Limited	 	McDermott Eastern Hemisphere Limited	 	01/31/2012	 	$	2,921,700	 	 	P
	536036005
	 	Credit Agricole CIB	 	U.S. Dept. Labor	 	McDermott Inc.	 	03/08/2012	 	$	3,500,000	 	 	F
	104737041
	 	Credit Agricole CIB	 	President India	 	McDermott Eastern Hemisphere Limited	 	03/28/2012	 	$	126,334	 	 	P
	409136023
	 	Credit Agricole CIB	 	American Casualty	 	McDermott Inc.	 	03/31/2012	 	$	100,000	 	 	F
	117837023
	 	Credit Agricole CIB	 	PTSC	 	McDermott Asia Pacific Pte. Ltd.	 	04/04/2012	 	$	1,000,000	 	 	P
	107537009
	 	Credit Agricole CIB	 	Min. of Labour Abu Dhabi	 	McDermott Middle East Inc	 	04/16/2012	 	$	272,480	 	 	F
	029937011
	 	Credit Agricole CIB	 	Esso     Australia	 	McDermott Australia Pty Ltd	 	04/17/2012	 	$	22,500,000	 	 	P
	328936003
	 	Credit Agricole CIB	 	LA Workforce Commission	 	J. Ray McDermott Holdings LLC	 	04/20/2012	 	$	1,900,000	 	 	F
	123137013
	 	Credit Agricole CIB	 	BG Exploration & Production	 	McDermott Middle East Inc	 	04/24/2012	 	$	20.000	 	 	P
	014637022
	 	Credit Agricole CIB	 	Metalshipis & Docks S.A.U	 	J Ray McDermott SA	 	05/26/2012	 	$	22,453,994	 	 	F
	617836016
	 	Credit Agricole CIB	 	ExxonMobil Middle East	 	McDermott Eastern Hemisphere Limited	 	05/31/2012	 	$	29,714,900	 	 	P
	015337016
	 	Credit Agricole CIB	 	ACE American Insurance	 	McDermott International Inc	 	06/01/2012	 	$	637,236	 	 	F
	015337013
	 	Credit Agricole CIB	 	ACE American Insurance	 	McDermott International Inc	 	06/01/2012	 	$	6,074,640	 	 	F
	122837005
	 	Credit Agricole CIB	 	BG     Trinidad & Tobago Ltd	 	McDermott, Inc	 	06/10/2012	 	$	6,019,433	 	 	F
	617836017
	 	Credit Agricole CIB	 	ExxonMobil Middle East	 	McDermott Eastern Hemisphere Limited	 	06/21/2012	 	$	383,200	 	 	P
	819137014
	 	Credit Agricole CIB	 	Ministry Labor	 	McDermott International Inc	 	07/09/2012	 	$	224,796	 	 	F
	621436020
	 	Credit Agricole CIB	 	Qatar Shell	 	McDermott Eastern Hemisphere Limited	 	08/01/2012	 	$	14,652,854	 	 	P
	623736029
	 	Credit Agricole CIB	 	Citibank Dubai	 	McDermott Middle East Inc	 	08/20/2012	 	$	72,600	 	 	F
	625536002
	 	Credit Agricole CIB	 	Adn Portuaria Int	 	J Ray McDermott de Mexico	 	09/16/2012	 	$	256,635	 	 	F
	013237036
	 	Credit Agricole CIB	 	PTSC	 	J Ray McDermott Far East Inc	 	09/28/2012	 	$	1,632,983	 	 	P
	016737014
	 	Credit Agricole CIB	 	Reliance Ind.	 	McDermott Eastern Hemisphere Limited	 	10/24/2012	 	$	2,310,000	 	 	P
	031637013
	 	Credit Agricole CIB	 	Min. of Labour Abu Dhabi	 	McDermott Middle East Inc	 	11/12/2012	 	$	272,480	 	 	F
	118637035
	 	Credit Agricole CIB	 	BHP     Billiton	 	McDermott Australia Pty Ltd	 	04/01/2013	 	$	18,659,392	 	 	P
	632636009
	 	Credit Agricole CIB	 	Qatar Shell	 	McDermott Eastern Hemisphere Limited	 	04/22/2013	 	$	23,683,515	 	 	P
	101237029
	 	Credit Agricole CIB	 	Comm. of Central Excise	 	J. Ray McDermott Engineering
Services Private Limited	 	      11/22/2013	 	$	6,790	 	 	P
	028537036
	 	Credit Agricole CIB	 	Aramco Gulf Operations	 	McDermott Arabia Company Limited	 	01/26/2014	 	$	21,925,000	 	 	P
	109137012
	 	Credit Agricole CIB	 	PTSC	 	J Ray McDermott Far East Inc	 	01/30/2014	 	$	2,441,319	 	 	P
	118637033
	 	Credit Agricole CIB	 	BHP Billiton	 	McDermott Australia Pty Ltd	 	04/01/2014	 	$	18,659,392	 	 	P
	116137034
	 	Credit Agricole CIB	 	Nobel Energy EG Ltd.	 	McDermott, Inc.	 	04/25/2014	 	$	1,800,215	 	 	P
	101237044
	 	Credit Agricole CIB	 	Nobel Energy EG Ltd.	 	McDermott, Inc.	 	07/31/2014	 	$	10,000,000	 	 	P
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 	 	$	285,895,491	 	 	 

 

Schedule 1.1

JOINT VENTURES

1. Deep Oil Technology, Inc.

2. Deepwater Marine Technology, L. L. C.

3. FloaTEC, LLC

4. FloaTEC Singapore Pte. Ltd.

5. FloaTEC de México, S.A. de C.V.

6. FloaTEC Brasil Servicos de Construcao Ltda.1

7. McDermott Abu Dhabi Offshore Construction Company

8. Qingdao McDermott Wuchuan Offshore Engineering Co. Ltd.

9. Spars International, Inc.

10. WD 140 Platform LLC

11. CMO S.A.2

 

			
	1	 	In process of being formed.
	 
	2	 	In process of being formed.

 

 

Schedule 4.7

LITIGATION

	1.	 	Certain Underwriters at Lloyd’s London, et al. v. J. Ray McDermott, Inc., et al.
	 
	2.	 	Boudreaux, et al. v. McDermott, Inc., et al.
	 
	3.	 	Antoine, et al. v. McDermott, Inc., et al.
	 
	4.	 	Oceanografia S.A. de C.V. v. McDermott Gulf Operating Company, Inc. and Secunda Marine
Services, Inc. and McDermott Gulf Operating Company, et al. v. Con-Dive, LLC et al.

For further description on the above-referenced and other matters, reference is hereby made to the
Borrower’s annual report on Form 10-K for the year ended December 31, 2010, the quarterly report on
Form 10-Q for the quarter ended March 31, 2011, and the quarterly report on Form 10-Q for the
quarter ended June 30, 2011.

7

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