Document:

Form of Indenture

 Exhibit 4.8 
 FORM OF INDENTURE TO BE ENTERED INTO BETWEEN THE COMPANY AND A 
 TRUSTEE TO BE NAMED 
  
  
 OREXIGEN THERAPEUTICS, INC. 
  
  
 INDENTURE 
 Dated as of _________, 20__ 
  
  
 [Name of Trustee] 
 Trustee 
  
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE
	  	2
	 Section 1.1.
	  	Definitions	  	2
	 Section 1.2.
	  	Other Definitions	  	7
	 Section 1.3.
	  	Incorporation by Reference of Trust Indenture Act	  	7
	 Section 1.4.
	  	Rules of Construction	  	8
	 ARTICLE II. THE SECURITIES
	  	8
	 Section 2.1.
	  	Issuable in Series	  	8
	 Section 2.2.
	  	Establishment of Terms of Series of Securities	  	9
	 Section 2.3.
	  	Execution and Authentication	  	11
	 Section 2.4.
	  	Registrar and Paying Agent	  	12
	 Section 2.5.
	  	Paying Agent to Hold Money in Trust	  	12
	 Section 2.6.
	  	Securityholder Lists	  	13
	 Section 2.7.
	  	Transfer and Exchange	  	13
	 Section 2.8.
	  	Mutilated, Destroyed, Lost and Stolen Securities	  	13
	 Section 2.9.
	  	Outstanding Securities	  	14
	 Section 2.10.
	  	Treasury Securities	  	15
	 Section 2.11.
	  	Temporary Securities	  	15
	 Section 2.12.
	  	Cancellation	  	15
	 Section 2.13.
	  	Defaulted Interest	  	15
	 Section 2.14.
	  	Global Securities	  	15
	 Section 2.15.
	  	CUSIP Numbers	  	17
	 ARTICLE III. REDEMPTION
	  	17
	 Section 3.1.
	  	Notice to Trustee	  	17
	 Section 3.2.
	  	Selection of Securities to be Redeemed	  	17
	 Section 3.3.
	  	Notice of Redemption	  	17
	 Section 3.4.
	  	Effect of Notice of Redemption	  	18
	 Section 3.5.
	  	Deposit of Redemption Price	  	18
	 Section 3.6.
	  	Securities Redeemed in Part	  	18
	 ARTICLE IV. COVENANTS
	  	19
	 Section 4.1.
	  	Payment of Principal and Interest	  	19
	 Section 4.2.
	  	SEC Reports	  	19
	 Section 4.3.
	  	Compliance Certificate	  	19
	 Section 4.4.
	  	Stay, Extension and Usury Laws	  	19
	 Section 4.5.
	  	Corporate Existence	  	20
	 ARTICLE V. SUCCESSORS
	  	20
	 Section 5.1.
	  	When Company May Merge, Etc.	  	20
	 Section 5.2.
	  	Successor Corporation Substituted	  	20
	 ARTICLE VI. DEFAULTS AND REMEDIES
	  	21
	 Section 6.1.
	  	Events of Default	  	21
	 Section 6.2.
	  	Acceleration of Maturity; Rescission and Annulment	  	22
	 Section 6.3.
	  	Collection of Indebtedness and Suits for Enforcement by Trustee	  	22
	 Section 6.4.
	  	Trustee May File Proofs of Claim	  	23
	 Section 6.5.
	  	Trustee May Enforce Claims Without Possession of Securities	  	24

  

 i 

					
	 Section 6.6.
	  	Application of Money Collected	  	24
	 Section 6.7.
	  	Limitation on Suits	  	24
	 Section 6.8.
	  	Unconditional Right of Holders to Receive Principal and Interest	  	25
	 Section 6.9.
	  	Restoration of Rights and Remedies	  	25
	 Section 6.10.
	  	Rights and Remedies Cumulative	  	25
	 Section 6.11.
	  	Delay or Omission Not Waiver	  	26
	 Section 6.12.
	  	Control by Holders	  	26
	 Section 6.13.
	  	Waiver of Past Defaults	  	26
	 Section 6.14.
	  	Undertaking for Costs	  	26
	 ARTICLE VII. TRUSTEE
	  	27
	 Section 7.1.
	  	Duties of Trustee	  	27
	 Section 7.2.
	  	Rights of Trustee	  	28
	 Section 7.3.
	  	Individual Rights of Trustee	  	29
	 Section 7.4.
	  	Trustee’s Disclaimer	  	29
	 Section 7.5.
	  	Notice of Defaults	  	29
	 Section 7.6.
	  	Reports by Trustee to Holders	  	29
	 Section 7.7.
	  	Compensation and Indemnity	  	30
	 Section 7.8.
	  	Replacement of Trustee	  	30
	 Section 7.9.
	  	Successor Trustee by Merger, Etc.	  	31
	 Section 7.10.
	  	Eligibility; Disqualification	  	31
	 Section 7.11.
	  	Preferential Collection of Claims Against Company	  	32
	 ARTICLE VIII. SATISFACTION AND DISCHARGE; DEFEASANCE
	  	32
	 Section 8.1.
	  	Satisfaction and Discharge of Indenture	  	32
	 Section 8.2.
	  	Application of Trust Funds; Indemnification	  	33
	 Section 8.3.
	  	Legal Defeasance of Securities of any Series	  	33
	 Section 8.4.
	  	Covenant Defeasance	  	35
	 Section 8.5.
	  	Repayment to Company	  	36
	 Section 8.6.
	  	Reinstatement	  	36
	 ARTICLE IX. AMENDMENTS AND WAIVERS
	  	37
	 Section 9.1.
	  	Without Consent of Holders	  	37
	 Section 9.2.
	  	With Consent of Holders	  	37
	 Section 9.3.
	  	Limitations	  	38
	 Section 9.4.
	  	Compliance with Trust Indenture Act	  	39
	 Section 9.5.
	  	Revocation and Effect of Consents	  	39
	 Section 9.6.
	  	Notation on or Exchange of Securities	  	39
	 Section 9.7.
	  	Trustee Protected	  	39
	 ARTICLE X. MISCELLANEOUS
	  	39
	 Section 10.1.
	  	Trust Indenture Act Controls	  	39
	 Section 10.2.
	  	Notices	  	39
	 Section 10.3.
	  	Communication by Holders with Other Holders	  	40
	 Section 10.4.
	  	Certificate and Opinion as to Conditions Precedent	  	40
	 Section 10.5.
	  	Statements Required in Certificate or Opinion	  	41
	 Section 10.6.
	  	Rules by Trustee and Agents	  	41
	 Section 10.7.
	  	Legal Holidays	  	41
	 Section 10.8.
	  	No Recourse Against Others	  	41
	 Section 10.9.
	  	Counterparts	  	41

  

 ii 

					
	 Section 10.10.
	  	Governing Laws	  	42
	 Section 10.11.
	  	No Adverse Interpretation of Other Agreements	  	42
	 Section 10.12.
	  	Successors	  	42
	 Section 10.13.
	  	Severability	  	42
	 Section 10.14.
	  	Table of Contents, Headings, Etc.	  	42
	 Section 10.15.
	  	Securities in a Foreign Currency or in ECU	  	42
	 Section 10.16.
	  	Judgment Currency	  	43
	 ARTICLE XI. SINKING FUNDS
	  	44
	 Section 11.1.
	  	Applicability of Article	  	44
	 Section 11.2.
	  	Satisfaction of Sinking Fund Payments with Securities	  	44
	 Section 11.3.
	  	Redemption of Securities for Sinking Fund	  	44

  

 iii 

 OREXIGEN THERAPEUTICS, INC. 
 Reconciliation and tie between Trust Indenture Act of 1939 and 
 Indenture, dated as of
_________, 20__ 
  

					
	 Section 310(a)(1)
	 		  	7.10
	 (a)(2)
	 		  	7.10
	 (a)(3)
	 		  	Not Applicable
	 (a)(4)
	 		  	Not Applicable
	 (a)(5)
	 		  	7.10
	 (b)
	 		  	7.10
	 Section 311(a)
	 		  	7.11
	 (b)
	 		  	7.11
	 (c)
	 		  	Not Applicable
	 Section 312(a)
	 		  	2.6
	 (b)
	 		  	10.3
	 (c)
	 		  	10.3
	 Section 313(a)
	 		  	7.6
	 (b)(1)
	 		  	7.6
	 (b)(2)
	 		  	7.6
	 (c)(1)
	 		  	7.6
	 (d)
	 		  	7.6
	 Section 314(a)
	 		  	4.2, 10.5
	 (b)
	 		  	Not Applicable
	 (c)(1)
	 		  	10.4
	 (c)(2)
	 		  	10.4
	 (c)(3)
	 		  	Not Applicable
	 (d)
	 		  	Not Applicable
	 (e)
	 		  	10.5
	 (f)
	 		  	Not Applicable
	 Section 315(a)
	 		  	7.1
	 (b)
	 		  	7.5
	 (c)
	 		  	7.1
	 (d)
	 		  	7.1
	 (e)
	 		  	6.14
	 Section 316(a)
	 		  	2.10
	 (a)(1)(A)
	 		  	6.12
	 (a)(1)(B)
	 		  	6.13
	 (b)
	 		  	6.8
	 Section 317(a)(1)
	 		  	6.3
	 (a)(2)
	 		  	6.4
	 (b)
	 		  	2.5
	 Section 318(a)
	 		  	10.1

  
 Note: This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture. 

 Indenture dated as of ___________, 20__ between Orexigen Therapeutics, Inc., a Delaware corporation
(“Company”), and [Name of Trustee], a ________________ (“Trustee”). 
 Each party agrees as follows for the benefit of
the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture. 
 ARTICLE I. 

DEFINITIONS AND INCORPORATION BY REFERENCE 
 Section 1.1. Definitions. 
 “Additional Amounts” means any additional amounts that are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified herein or therein and that are owing to such Holders. 
 “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any
person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise. 
 “Agent” means any Registrar, Paying Agent, Service Agent or authenticating agent. 
 “Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the
Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee. 
 “Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday
in The City of New York, New York or The City of San Francisco, California on which banking institutions are authorized or required by law, regulation or executive order to close. 
 “Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock.

  

 2 

 “Company” means the party named as such above until a successor replaces it and thereafter
means the successor. 
 “Company Order” means a written order signed in the name of the Company by two Officers, one of whom must
be the Company’s chief executive officer, chief financial officer or principal accounting officer. 
 “Company Request” means
a written request signed in the name of the Company by its Chairman of the Board, a President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee. 
 “Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally
administered. 
 “Default” means any event that is, or after notice or passage of time would be, an Event of Default. 

“Depositary” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global
Securities, the person designated as Depositary for such Series by the Company, which Depositary shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depositary” as used with
respect to the Securities of any Series shall mean the Depositary with respect to the Securities of such Series. 
 [INCLUDE THIS LANGUAGE
FOR SUBORDINATED SECURITIES... “Designated Senior Indebtedness” means any of our senior indebtedness that expressly provides that it is “designated senior indebtedness” for purposes of this Indenture (provided that the
instrument, agreement or other document creating or evidencing such Senior Indebtedness may place limitations and conditions on the right of such Senior Indebtedness to exercise the rights of Designated Senior Indebtedness).] 
 “Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2. 
 “Dollars” and “$” means the currency
of The United States of America. 
 “ECU” means the European Currency Unit as determined by the Commission of the European Union.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Foreign Currency” means any currency or currency unit issued by a government other than the government of The United States of America.

 “Foreign Government Obligations” means with respect to Securities of any Series that are denominated in a Foreign Currency,
(i) direct obligations of the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit 

  

 3 

 
is pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or instrumentality of such government the timely payment
of which is unconditionally guaranteed as a full faith and credit obligation by such government, which, in either case under clauses (i) or (ii), are not callable or redeemable at the option of the issuer thereof. 
 “GAAP” means accounting principles generally accepted in the United States of America set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in effect as of the date of determination. 
 “Global
Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depositary for such Series or
its nominee, and registered in the name of such Depositary or nominee. 
 “Holder” or “Securityholder” means a person in
whose name a Security is registered. 
 [INCLUDE THIS LANGUAGE FOR SUBORDINATED SECURITIES... “Indebtedness” means, with
respect to any person, and without duplication, (a) all indebtedness, obligations and other liabilities (contingent or otherwise) of such person for borrowed money (including obligations of the Company in respect of overdrafts, foreign exchange
contracts, currency exchange agreements, interest rate protection agreements, and any loans or advances from banks, whether or not evidenced by notes or similar instruments) or evidenced by bonds, debentures, notes or similar instruments (whether or
not the recourse of the lender is to the whole of the assets of such person or to only a portion thereof) (other than any account payable or other accrued current liability or obligation incurred in the ordinary course of business in connection with
the obtaining of materials or services), (b) all reimbursement obligations and other liabilities (contingent or otherwise) of such person with respect to letters of credit, bank guarantees or bankers’ acceptances, (c) all obligations
and liabilities (contingent or otherwise) in respect of leases of such person required, in conformity with generally accepted accounting principles, to be accounted for as capitalized lease obligations on the balance sheet of such person and all
obligations and other liabilities (contingent or otherwise) under any lease or related document (including a purchase agreement) in connection with the lease of real property which provides that such person is contractually obligated to purchase or
cause a third party to purchase the leased property and thereby guarantee a minimum residual value of the leased property to the lessor and the obligations of such person under such lease or related document to purchase or to cause a third party to
purchase such leased property, (d) all obligations of such person (contingent or otherwise) with respect to an interest rate or other swap, cap or collar agreement or other similar instrument or agreement or foreign currency hedge, exchange,
purchase or similar instrument or agreement, (e) all direct or indirect guaranties or similar agreements by such person in respect of, and obligations or liabilities (contingent or otherwise) of such person to purchase or otherwise acquire or
otherwise assure a creditor against loss in respect of indebtedness, obligations or liabilities of another person of the kind described in clauses (a) through (d), (f) any indebtedness or other obligations described in clauses
(a) through (e) secured 

  

 4 

 
by any mortgage, pledge, lien or other encumbrance existing on property which is owned or held by such person, regardless of whether the indebtedness or
other obligation secured thereby shall have been assumed by such person and (g) any and all refinancings, replacements, deferrals, renewals, extensions and refundings of, or amendments, modifications or supplements to, any indebtedness,
obligation or liability of the kind described in clauses (a) through (f).] 
 “Indenture” means this Indenture as amended or
supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder. 
 “interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity. 
 “Maturity,” when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as
therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption, notice of option to elect repayment or otherwise. 
 “Officer” means the Chairman of the Board, any President, any Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company. 
 “Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the Company’s principal executive officer,
principal financial officer or principal accounting officer. 
 “Opinion of Counsel” means a written opinion of legal counsel who
is acceptable to the Trustee. The counsel may be an employee of or counsel to the Company. 
 “person” means any individual,
corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in
respect of, the Security. 
 [INCLUDE THIS LANGUAGE FOR SUBORDINATED SECURITIES... “Representative” means the
(a) indenture trustee or other trustee, agent or representative for any Senior Indebtedness or (b) with respect to any Senior Indebtedness that does not have any such trustee, agent or other representative, (i) in the case of such
Senior Indebtedness issued pursuant to an agreement providing for voting arrangements as among the holders or owners of such Senior Indebtedness, any holder or owner of such Senior Indebtedness acting with the consent of the required persons
necessary to bind such holders or owners of such Senior Indebtedness and (ii) in the case of all other such Senior Indebtedness, the holder or owner of such Senior Indebtedness.] 
  

 5 

 “Responsible Officer” means any officer of the Trustee with direct responsibility for the
administration of the indenture and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

 “SEC” means the Securities and Exchange Commission. 
 “Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this
Indenture. 
 [INCLUDE THIS LANGUAGE FOR SUBORDINATED SECURITIES... “Senior Indebtedness” means the principal, premium,
if any, interest, including any interest accruing after bankruptcy, and rent or termination payment on or other amounts due on our current or future Indebtedness, whether created, incurred, assumed, guaranteed or in effect guaranteed by us,
including any deferrals, renewals, extensions, refundings, amendments, modifications or supplements to the above. However, Senior Indebtedness does not include: (i) Indebtedness that expressly provides that it shall not be senior in right of
payment to the Securities or expressly provides that it is on the same basis or junior to the Securities; (ii) our indebtedness to any of our majority-owned subsidiaries; and (iii) the Securities.] 
 “Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant
to Sections 2.1 and 2.2 hereof. 
 “Stated Maturity” when used with respect to any Security or any installment of principal thereof
or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable. 
 “Subsidiary” of any specified person means any corporation, association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such person or one or
more of the other Subsidiaries of that person or a combination thereof. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.
Code Sections 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such
amendment, the Trust Indenture Act as so amended. 
 “Trustee” means the person named as the “Trustee” in the first
paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each person who is then a Trustee hereunder, and if at
any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series. 
 “U.S. Government Obligations” means securities that are (i) direct obligations of The United States of America for the payment of which
its full faith and credit is pledged or (ii)

  

 6 

 
obligations of a person controlled or supervised by and acting as an agency or instrumentality of The United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by The United States of America, and which in the case of (i) and (ii) are not callable or redeemable at the option of the issuer thereof, and shall also include a depository
receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder
of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of
the U.S. Government Obligation evidenced by such depository receipt. 
 Section 1.2. Other Definitions. 
  

			
	 TERM
	  	DEFINED IN
SECTION
	 “Bankruptcy Law”
	  	6.1  
	 “Custodian”
	  	6.1  
	 “Event of Default”
	  	6.1  
	 “Journal”
	  	10.15
	 “Judgment Currency”
	  	10.16
	 “Legal Holiday”
	  	10.7  
	 “mandatory sinking fund payment”
	  	11.1  
	 “Market Exchange Rate”
	  	10.15
	 “New York Banking Day”
	  	10.16
	 “optional sinking fund payment”
	  	11.1  
	 “Paying Agent”
	  	2.4  
	 [INCLUDE THIS LANGUAGE FOR SUBORDINATED SECURITIES...
	  	
	 “Payment Blockage Notice”
	  	12.2] 
	 “Registrar”
	  	2.4  
	 “Required Currency”
	  	10.16
	 “Service Agent”
	  	2.4  
	 “successor person”
	  	5.1  

 Section 1.3. Incorporation by Reference of Trust Indenture Act. 
 Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings: 
 “Commission” means the SEC. 
 “indenture securities” means the Securities. 
 “indenture security holder” means a Securityholder. 
 “indenture to be qualified” means
this Indenture. 
  

 7 

 “indenture trustee” or “institutional trustee” means the Trustee. 
 “obligor” on the indenture securities means the Company and any successor obligor upon the Securities. 
 All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and
not otherwise defined herein are used herein as so defined. 
 Section 1.4. Rules of Construction. 
 Unless the context otherwise requires: 
 (a) a term has the meaning assigned to it; 
 (b) an accounting term not otherwise defined has
the meaning assigned to it in accordance with GAAP; 
 (c) “or” is not exclusive; 
 (d) words in the singular include the plural, and in the plural include the singular; and 
 (e) provisions apply to successive events and transactions. 
 ARTICLE II. 
 THE SECURITIES 
 Section 2.1. Issuable in Series. 
 The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of a Series shall be identical except as may be set forth or determined in the manner provided in a Board Resolution, a
supplemental indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board
Resolution, Officers’ Certificate or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity
date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the
Indenture [INCLUDE THIS LANGUAGE FOR SUBORDINATED SECURITIES... but all Securities issued hereunder shall be subordinate and junior in right of payment, to the extent and in the manner set forth in Article XII, to all Senior Indebtedness of
the Company.] 
  

 8 

 Section 2.2. Establishment of Terms of Series of Securities. 
 At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection
2.2.1 and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.23) by or pursuant to a Board Resolution, a supplemental indenture or an Officers’ Certificate pursuant to
authority granted under a Board Resolution: 
 2.2.1. the title of the Series (which shall distinguish the Securities of that particular
Series from the Securities of any other Series); 
 2.2.2. the price or prices (expressed as a percentage of the principal amount
thereof) at which the Securities of the Series will be issued; 
 2.2.3. any limit upon the aggregate principal amount of the Securities
of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to
Section 2.7, 2.8, 2.11, 3.6 or 9.6); 
 2.2.4. the date or dates on which the principal of the Securities of the Series is payable;

 2.2.5. the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates
(including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or
dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date; 
 2.2.6. the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be surrendered for registration of transfer or
exchange, where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served, and the method of payment, if by wire transfer, mail or other means; 
 2.2.7. if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the
Series may be redeemed, in whole or in part, at the option of the Company; 
 2.2.8. the obligation, if any, of the Company to redeem or
purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities
of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation; 
  

 9 

 2.2.9. the dates, if any, on which and the price or prices at which the Securities of the Series
will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations; 
 2.2.10. if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable; 
 2.2.11. the forms of the Securities of the Series and whether the Securities will be issuable as Global Securities; 
 2.2.12. if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to
Section 6.2; 
 2.2.13. the currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency,
including, but not limited to, the ECU, and if such currency of denomination is a composite currency other than the ECU, the agency or organization, if any, responsible for overseeing such composite currency; 
 2.2.14. the designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities
of the Series will be made; 
 2.2.15. if payments of principal of or interest, if any, on the Securities of the Series are to be made
in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to such payments will be determined; 
 2.2.16. the manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined, if such
amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity index, stock exchange index or financial index; 
 2.2.17. the provisions, if any, relating to any security provided for the Securities of the Series; 
 2.2.18. any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee
or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.2; 
 2.2.19. any addition to or change in the covenants set forth in Articles IV or V which applies to Securities of the Series; 
 2.2.20. any other terms of the Securities of the Series (which may supplement, modify or delete any provision of this Indenture insofar as it applies to such Series); 
 2.2.21. any depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such
Series if other than those appointed herein; 
  

 10 

 2.2.22. the provisions, if any, relating to conversion of any Securities of such Series, including
if applicable, the conversion price, the conversion period, provisions as to whether conversion will be mandatory, at the option of the Holders thereof or at the option of the Company, the events requiring an adjustment of the conversion price and
provisions affecting conversion if such Series of Securities are redeemed; and 
 2.2.23. whether the Securities of such Series will be
senior debt securities or subordinated debt securities and, if applicable, a description of the subordination terms thereof. 
 All
Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officers’
Certificate referred to above. 
 Section 2.3. Execution and Authentication. 
 Two Officers shall sign the Securities for the Company by manual or facsimile signature. 
 If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be
valid. 
 A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. The signature
shall be conclusive evidence that the Security has been authenticated under this Indenture. 
 The Trustee shall at any time, and from time
to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may
authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in writing. Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate. 
 The
aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate
delivered pursuant to Section 2.2, except as provided in Section 2.8. 
 Prior to the issuance of Securities of any Series, the
Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of that Series
or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with
Section 10.4. 
 The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the
Trustee, being advised by counsel, determines that such 

  

 11 

 
action may not lawfully be taken; or (b) if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of
directors and/or vice-presidents shall determine that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of Securities. 
 The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company. 
 Section 2.4. Registrar and Paying Agent. 
 The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or
surrendered for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities
of such Series and this Indenture may be served (“Service Agent”). The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written notice to the Trustee
of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish
the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands. 
 The Company may also from time to time designate one or more co-registrars, additional
paying agents or additional service agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a
Registrar, Paying Agent and Service Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of
any change in the name or address of any such co-registrar, additional paying agent or additional service agent. The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and
the term “Service Agent” includes any additional service agent. 
 The Company hereby appoints the Trustee the initial Registrar,
Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued. 
 Section 2.5. Paying Agent to Hold Money in Trust. 
 The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series 

  

 12 

 
of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify
the Trustee of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all
money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money. If the Company or a Subsidiary of the Company acts as
Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent. 
 Section 2.6. Securityholder Lists. 
 The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of
Securityholders of each Series of Securities. 
 Section 2.7. Transfer and Exchange. 
 Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer
tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6). 
 Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period
beginning at the opening of business 15 days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the
transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part. 
 Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities. 
 If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding. 
  

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 If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such
Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same
Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
 In case any such mutilated,
destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security. 
 Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen
Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder. 
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities. 
 Section 2.9. Outstanding Securities. 
 The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding. 
 If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced
Security is held by a bona fide purchaser. 
 If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of the
Company) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.

 A Security does not cease to be outstanding because the Company or an Affiliate holds the Security. 
  

 14 

 In determining whether the Holders of the requisite principal amount of outstanding Securities have given
any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2. 
 Section 2.10. Treasury Securities. 
 In determining whether the Holders of the required principal amount of Securities
of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company or any Affiliate of the Company shall be disregarded, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver only Securities of a Series that the Trustee knows are so owned shall be so disregarded. 
 Section 2.11. Temporary Securities. 
 Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary Securities shall be substantially in the form of definitive Securities but
may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon request shall authenticate definitive Securities of the same Series and date of maturity
in exchange for temporary Securities. Until so exchanged, temporary Securities shall have the same rights under this Indenture as the definitive Securities. 
 Section 2.12. Cancellation. 
 The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all Securities surrendered for transfer, exchange, payment,
replacement or cancellation and shall destroy such canceled Securities (subject to the record retention requirement of the Exchange Act) and deliver a certificate of such destruction to the Company, unless the Company otherwise directs. The Company
may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation. 
 Section
2.13. Defaulted Interest. 
 If the Company defaults in a payment of interest on a Series of Securities, it shall pay the
defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix the record date and payment
date. At least 10 days before the record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid. The Company may pay defaulted
interest in any other lawful manner. 
 Section 2.14. Global Securities. 
  

 15 

 2.14.1. Terms of Securities. A Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary for such Global Security or Securities. 
 2.14.2. Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in addition
thereto, any Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of Holders other than the Depositary for such Security or its nominee only if (i) such Depositary notifies
the Company that it is unwilling or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a
successor Depositary registered as a clearing agency under the Exchange Act within 90 days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so
exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms. 
 Except as provided in this Section 2.14.2, a Global Security may not be transferred except as a whole by the Depositary with respect to such Global
Security to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.

 2.14.3. Legend. Unless otherwise provided pursuant to Section 2.2, any Global Security issued hereunder shall bear a
legend in substantially the following form: 
 “This Security is a Global Security within the meaning of the Indenture hereinafter
referred to and is registered in the name of the Depositary or a nominee of the Depositary. This Security is exchangeable for Securities registered in the name of a person other than the Depositary or its nominee only in the limited circumstances
described in the Indenture, and may not be transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such a successor Depositary.” 
 2.14.4. Acts of Holders. The Depositary, as a
Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture. 
 2.14.5. Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2,
payment of the principal of, premium, if any, and interest, if any, on any Global Security shall be made to the Holder thereof. 
  

 16 

 2.14.6. Consents, Declaration and Directions. Except as provided in Section 2.14.5, the
Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depositary with respect to
such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture. 
 Section 2.15. CUSIP Numbers. 
 The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness
of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. 
 ARTICLE III. 
 REDEMPTION 
 Section 3.1. Notice to Trustee. 
 The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay
the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the
Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall give the
notice at least 30 days before the redemption date (or such shorter notice as may be acceptable to the Trustee). 
 Section
3.2. Selection of Securities to be Redeemed. 
 Unless otherwise indicated for a particular Series by a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and
appropriate. The Trustee shall make the selection from Securities of the Series outstanding not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations
larger than $1,000. Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.2.10, the
minimum principal denomination for each Series and integral multiples thereof. Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

 Section 3.3. Notice of Redemption. 
  

 17 

 Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture hereto
or an Officers’ Certificate, at least 15 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed. 
 The notice shall identify the Securities of the Series to be redeemed and shall state: 
 (a) the redemption date; 
 (b) the redemption price; 
 (c) the name and address of the Paying Agent;

 (d) that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the
redemption price; 
 (e) that interest on Securities of the Series called for redemption ceases to accrue on and after
the redemption date; and 
 (f) any other information as may be required by the terms of the particular Series or the
Securities of a Series being redeemed. 
 At the Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at its expense. 
 Section 3.4. Effect of Notice of Redemption. 
 Once notice of redemption is mailed as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption
date and at the redemption price. A notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date. 
 Section 3.5. Deposit of Redemption Price. 
 On the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date. 
 Section 3.6. Securities Redeemed in Part. 
 Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same Maturity equal in principal amount to the unredeemed portion of the
Security surrendered. 
  

 18 

 ARTICLE IV. 
 COVENANTS 
 Section 4.1. Payment of Principal and Interest. 
 The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and
interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture. 
 Section
4.2. SEC Reports. 
 The Company shall deliver to the Trustee within 15 days after it files them with the SEC copies of the annual
reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a). 
 Section
4.3. Compliance Certificate. 
 The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his/her knowledge the Company has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he may have knowledge). 
 The Company will, so long as any of the Securities are outstanding, deliver
to the Trustee, promptly upon becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 
 Section 4.4. Stay, Extension and Usury Laws. 
 The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law
wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities; and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been
enacted. 
  

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 Section 4.5. Corporate Existence. 
 Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence
and rights (charter and statutory); provided, however, that the Company shall not be required to preserve any such right if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders. 
 ARTICLE
V. 
 SUCCESSORS 
 Section
5.1. When Company May Merge, Etc. 
 The Company shall not consolidate with or merge with or into, or convey, transfer or lease
all or substantially all of its properties and assets to, any person (a “successor person”), unless: 
 (a) the
successor person (if any) is a corporation, partnership, trust or other entity organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the Securities and under this
Indenture; and 
 (b) immediately after giving effect to the transaction, no Default or Event of Default, shall have
occurred and be continuing. 
 The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an
Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with this Indenture. 
 Notwithstanding the above, any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties to the Company.
Neither an Officers’ Certificate nor an Opinion of Counsel shall be required to be delivered in connection therewith. 
 Section
5.2. Successor Corporation Substituted. 
 Upon any consolidation or merger, or any sale, lease, conveyance or other disposition
of all or substantially all of the assets of the Company in accordance with Section 5.1, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided,
however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture and the Securities. 
  

 20 

 ARTICLE VI. 
 DEFAULTS AND REMEDIES 
 Section 6.1. Events of Default. 
 “Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the
establishing Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default: 
 (a) default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such
default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the expiration of such period of 30 days); or 
 (b) default in the payment of the principal of any Security of that Series at its Maturity; or 
 (c) default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or
warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default continues uncured for a period of 90 days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” hereunder; or 
 (d) the Company pursuant to or within the meaning of
any Bankruptcy Law: 
 (i) commences a voluntary case, 
 (ii) consents to the entry of an order for relief against it in an involuntary case, 
 (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, 
 (iv) makes a general assignment for the benefit of its creditors, or 
 (v) generally is unable to pay its debts as the same become due; or 
 (e) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (i) is for relief against the Company in an involuntary case, 
 (ii) appoints a Custodian of the Company or for all or substantially all of its property, or 
  

 21 

 (iii) orders the liquidation of the Company, 
 and the order or decree remains unstayed and in effect for 60 days; or 
 (f) any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.2.18. 
 The term “Bankruptcy
Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 
 Section 6.2. Acceleration of Maturity; Rescission and Annulment. 
 If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred
to in Section 6.1(d) or (e)) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are
Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of Default
specified in Section 6.1(d) or (e) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder. 
 At any time after such a declaration of acceleration with respect
to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that
Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if
any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13. 
 No such rescission shall affect any subsequent Default or impair any right consequent thereon. 
 Section
6.3. Collection of Indebtedness and Suits for Enforcement by Trustee. 
 The Company covenants that if 
 (a) default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues
for a period of 30 days, or 
  

 22 

 (b) default is made in the payment of principal of any Security at the Maturity
thereof, or 
 (c) default is made in the deposit of any sinking fund payment when and as due by the terms of a Security,

 then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal or any overdue interest at the rate or rates prescribed therefor in such
Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys
adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated. 
 If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of
such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of
any power granted herein, or to enforce any other proper remedy. 
 Section 6.4. Trustee May File Proofs of Claim. 
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise, 
 (a) to file and prove a claim for the whole amount of principal and interest owing and unpaid
in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and 
  

 23 

 (b) to collect and receive any moneys or other property payable or deliverable on
any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.7. 
 Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding. 
 Section 6.5. Trustee May Enforce Claims Without Possession of Securities.

 All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 Section 6.6. Application of Money Collected. 
 Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or
interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
 First: To the payment of all amounts due the Trustee under Section 7.7; and 
 Second: To the payment of
the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and interest, respectively; and 
 Third: To the Company. 
 Section 6.7. Limitation on Suits. 
 No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

 (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to
the Securities of that Series; 
  

 24 

 (b) the Holders of not less than 25% in principal amount of the outstanding
Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
 (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request; 
 (d) the Trustee for 60 days after its receipt of such notice, request and
offer of indemnity has failed to institute any such proceeding; and 
 (e) no direction inconsistent with such written
request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series; 
 it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

 Section 6.8. Unconditional Right of Holders to Receive Principal and Interest. 
 Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such Holder. 
 Section 6.9. Restoration of Rights and
Remedies. 
 If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders
shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 
 Section 6.10. Rights and Remedies Cumulative. 
 Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to
the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or 

  

 25 

 
otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy. 
 Section 6.11. Delay or Omission Not Waiver. 
 No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be. 
 Section 6.12. Control by Holders. 
 The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that 
 (a) such direction shall not be in conflict with any rule of law or with this Indenture, 
 (b) the Trustee
may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and 
 (c) subject
to the provisions of Section 6.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the
Trustee in personal liability. 
 Section 6.13. Waiver of Past Defaults. 
 The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities
of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in
principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration). Upon any such waiver, such Default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 
 Section 6.14. Undertaking for Costs. 
 All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against 

  

 26 

 
the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed
in such Security (or, in the case of redemption, on the redemption date). 
 ARTICLE VII. 
 TRUSTEE 
 Section 7.1. Duties of
Trustee. 
 (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and
powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 
 (b) Except during the continuance of an Event of Default: 
 (i) The Trustee need perform only those duties that are specifically set forth in this Indenture and no others. 
 (ii) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon Officers’ Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officers’ Certificates or Opinions of
Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this
Indenture. 
 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct, except that: 
 (i) This paragraph does not limit the effect of paragraph (b) of
this Section. 
 (ii) The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it is proved that the Trustee was negligent in ascertaining the pertinent facts. 
 (iii) The Trustee shall not be
liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in 

  

 27 

 
good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the
time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series. 
 (d) Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of
this Section. 
 (e) The Trustee may refuse to perform any duty or exercise any right or power unless it receives
indemnity satisfactory to it against any loss, liability or expense. 
 (f) The Trustee shall not be liable for interest
on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
 (g) No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the
performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk is not reasonably assured to it. 

(h) The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections, immunities and standard of
care as are set forth in paragraphs (a), (b) and (c) of this Section with respect to the Trustee. 
 Section 7.2. Rights of
Trustee. 
 (a) The Trustee may rely on and shall be protected in acting or refraining from acting upon any document
believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 
 (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel. The
Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. 
 (c) The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. No Depositary shall be deemed an agent of the Trustee and the Trustee
shall not be responsible for any act or omission by any Depositary. 
 (d) The Trustee shall not be liable for any action
it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, provided that the Trustee’s conduct does not constitute negligence or bad faith. 
  

 28 

 (e) The Trustee may consult with counsel and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder without negligence and in good faith and in reliance thereon. 
 (f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders of Securities unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or
direction. 
 Section 7.3. Individual Rights of Trustee. 
 The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate
of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11. 
 Section 7.4. Trustee’s Disclaimer. 
 The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any
statement in the Securities other than its authentication. 
 Section 7.5. Notice of Defaults. 
 If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or
Event of Default. Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its
Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders of that Series. 
 Section
7.6. Reports by Trustee to Holders. 
 Within 60 days after May 15 in each year, the Trustee shall transmit by mail to all
Securityholders, as their names and addresses appear on the register kept by the Registrar a brief report dated as of such May 15, in accordance with, and to the extent required under, TIA Section 313. 
 A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange on which the
Securities of that Series are listed. The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange. 
  

 29 

 Section 7.7. Compensation and Indemnity. 
 The Company shall pay to the Trustee from time to time reasonable compensation for its services as the Company and the Trustee shall from time to time
agree upon in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it.
Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel. 
 The Company shall indemnify
the Trustee (including the cost of defending itself) against any loss, liability or expense incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify
the Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have one separate counsel and the Company shall pay the reasonable fees and
expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. This indemnification shall apply to officers, directors, employees, shareholders and agents of the
Trustee. 
 The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer,
director, employee, shareholder or agent of the Trustee through negligence or bad faith. 
 To secure the Company’s payment obligations
in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest on particular Securities of that Series.

 When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(d) or (e) occurs, the
expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law. 
 Section
7.8. Replacement of Trustee. 
 A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section. 
 The Trustee may resign with
respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with
respect to that Series by so notifying the Trustee and the Company. The Company may remove the Trustee with respect to Securities of one or more Series if: 
 (a) the Trustee fails to comply with Section 7.10; 
 (b) the Trustee is
adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; 
  

 30 

 (c) a Custodian or public officer takes charge of the Trustee or its property; or

 (d) the Trustee becomes incapable of acting. 
 If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 If a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor
Trustee. 
 If the Trustee with respect to the Securities of any one or more Series fails to comply with Section 7.10, any
Securityholder of the applicable Series may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to
the successor Trustee subject to the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect
to each Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series. Notwithstanding replacement of the Trustee pursuant to this
Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it prior to such replacement. 
 Section 7.9. Successor Trustee by Merger, Etc. 
 If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the
successor Trustee. 
 Section 7.10. Eligibility; Disqualification. 
 This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA Section 310(b). 
  

 31 

 Section 7.11. Preferential Collection of Claims Against Company. 
 The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated. 
 ARTICLE VIII. 
 SATISFACTION AND DISCHARGE; DEFEASANCE 
 Section 8.1. Satisfaction and Discharge of Indenture. 
 This Indenture shall upon Company Order cease to be of further
effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when 
 (a) either 
 (i) all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or 
 (ii) all such Securities not theretofore delivered to the Trustee for cancellation 
 (1) have become due and payable, or 
 (2) will become due and payable at their Stated Maturity within one year, or 
 (3) have been
called for redemption or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, or 
 (4) are deemed paid and discharged pursuant to Section 8.3, as applicable; 
 and the Company, in the case of (1), (2) or (3) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount
sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have
become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be; 
 (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and 
  

 32 

 (c) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with. 
 Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee pursuant to clause
(a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.2 and 8.5 shall survive. 
 Section 8.2. Application of Trust
Funds; Indemnification. 
 (a) Subject to the provisions of Section 8.5, all money deposited with the Trustee
pursuant to Section 8.1, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations
or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the
Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.3 or 8.4. 
 (b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Sections 8.3 or 8.4 or
the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders. 
 (c) The Trustee shall deliver or pay to the Company from time to time upon Company Request any U.S. Government Obligations or Foreign Government Obligations or money held by it as provided in Sections 8.3 or 8.4 which, in the opinion
of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the
purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received. This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations
held under this Indenture. 
 Section 8.3. Legal Defeasance of Securities of any Series. 
 Unless this Section 8.3 is otherwise specified pursuant to Section 2.2.20 to be inapplicable to Securities of any Series, the Company shall be
deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it relates
to such outstanding Securities of such Series, shall no longer be in effect 

  

 33 

 
(and the Trustee, at the expense of the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to: 
 (a) the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof,
(i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Stated Maturity of such principal or installment of principal or interest and (ii) the benefit of any
mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series; 
 (b) the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and 
 (c) the rights, powers, trust and immunities of the Trustee hereunder; 
 provided that, the following conditions shall have been satisfied: 
 (d) the Company
shall have deposited or caused to be deposited irrevocably with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such
Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case
of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their terms,
will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the
Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due; 
 (e) such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound; 
 (f) no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of
such deposit or during the period ending on the 91st day after such date; 
 (g) the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this
Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income,
gain 

  

 34 

 
or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount
and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred; 
 (h) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors
of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; 
 (i) such deposit shall not result in the trust arising from such deposit constituting an investment company (as defined in the Investment Company Act of 1940, as amended), or such trust shall be qualified under such Act or exempt from
regulation thereunder; and 
 (j) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with. 
 Section 8.4. Covenant Defeasance. 
 Unless this Section 8.4 is otherwise specified pursuant
to Section 2.2.20 to be inapplicable to Securities of any Series, the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5 and 5.1 as well as
any additional covenants specified in a supplemental indenture hereto for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2.20 (and the failure to comply with any such covenants
shall not constitute a Default or Event of Default with respect to such Series under Section 6.1) and the occurrence of any event described in clause (f) of Section 6.1 shall not constitute a Default or Event of Default hereunder,
with respect to the Securities of such Series, provided that the following conditions shall have been satisfied: 
 (a) with reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust, specifically pledged as security for,
and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in the United States)
and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and
principal in respect thereof, in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in
cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, to pay principal of and interest, if any, on and any mandatory
sinking fund payments in respect of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due; 
  

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 (b) such deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound; 
 (c) no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit; 
 (d) the Company shall have delivered to the Trustee an Opinion of Counsel confirming that Holders of the Securities of such Series
will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been
the case if such deposit and covenant defeasance had not occurred; 
 (e) the Company shall have delivered to the Trustee
an Officers’ Certificate stating the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or
defrauding any other creditors of the Company; and 
 (f) the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the covenant defeasance contemplated by this Section have been complied with. 
 Section 8.5. Repayment to Company. 
 The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for two years. After that, Securityholders entitled to the money must look to the
Company for payment as general creditors unless an applicable abandoned property law designates another person. 
 Section
8.6. Reinstatement. 
 If the Trustee or the Paying Agent is unable to apply any money deposited with respect to Securities of any
Series in accordance with Section 8.1 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the
Company under this Indenture with respect to the Securities of such Series and under the Securities of such Series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.1 until such time as the Trustee or the
Paying Agent is permitted to apply all such money in accordance with Section 8.1; provided, however, that if the Company has made any payment of principal of or interest on or any Additional Amounts with respect to any Securities
because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent. 
  

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 ARTICLE IX. 
 AMENDMENTS AND WAIVERS 
 Section 9.1. Without Consent of Holders. 
 The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:

 (a) to cure any ambiguity, defect or inconsistency; 
 (b) to provide for uncertificated Securities in addition to or in place of certificated Securities; 
 (c) to provide for the assumption of our obligations to holders of any debt security in the case of a merger or consolidation or sale
of all or substantially all of our assets; 
 (d) to make any change that would provide any additional rights or benefits
to the holders of securities or that does not adversely affect the legal rights under the Indenture of any such holder; 
 (e) to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 
 (f) to conform the text of the indentures to any provision of the Description of Debt Securities to the extent that such provision in the Description of Debt Securities was intended to be a verbatim recitation of
a provision of the indentures; 
 (g) to provide for the issuance of additional securities in accordance with the
limitations set forth in the indenture as of the date of the indenture; 
 (h) to allow any guarantor to execute a
supplemental indenture with respect to debt securities and to release guarantors in accordance with the terms of the indenture; or 
 (i) to add additional obligors under the indenture and the securities. 
 The consent of holders is not necessary under the
indentures to approve the particular form of any proposed amendment. It is sufficient if such consent approves the substance of the proposed amendment. 
 Section 9.2. With Consent of Holders. 
 The Company and the Trustee may enter into a supplemental
indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the 

  

 37 

 
provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series. Except as
provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such waiver by notice to the Trustee (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series. 
 It shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such
consent approves the substance thereof. After a supplemental indenture or waiver under this section becomes effective, the Company shall mail to the Holders of Securities affected thereby, a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver. 
 Section 9.3. Limitations. 
 Without the consent of each Securityholder affected, an amendment or waiver may not: 
 (a) reduce the principal
amount of Securities whose Holders must consent to an amendment, supplement or waiver; 
 (b) reduce the rate of or
extend the time for payment of interest (including default interest) on any Security; 
 (c) reduce the principal or
change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation; 
 (d) reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof; 
 (e) waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission
of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration); 
 (f) make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;

 (g) make any change in Sections 6.8, 6.13, 9.3 (this sentence), 10.15 or 10.16; or 
 (h) waive a redemption payment with respect to any Security or change any of the provisions with respect to the redemption of any
Securities. 
  

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 Section 9.4. Compliance with Trust Indenture Act. 
 Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA
as then in effect. 
 Section 9.5. Revocation and Effect of Consents. 
 Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as
to his Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective. 
 Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (g) of
Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s
Security. 
 Section 9.6. Notation on or Exchange of Securities. 
 The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company in exchange
for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver. 
 Section 9.7. Trustee Protected. 
 In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental indenture that
adversely affects its rights. 
 ARTICLE X. 
 MISCELLANEOUS 
 Section 10.1. Trust Indenture Act Controls. 
 If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by
the TIA, such required or deemed provision shall control. 
 Section 10.2. Notices. 
  

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 Any notice or communication by the Company or the Trustee to the other is duly given if in writing and
delivered in person or mailed by first-class mail: 
 if to the Company: 
 Orexigen Therapeutics, Inc. 
 3344 North Torrey Pines Court, Suite 200 
 La Jolla, CA 92037 
 Attention: Chief
Financial Officer 
 if to the Trustee: 
 [Name
of Trustee] 
 [Address] 
 __________________________ 
 __________________________ 
 Attention: __________________ 
 The Company
or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 
 Any notice
or communication to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar. Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its
sufficiency with respect to other Securityholders of that or any other Series. 
 If a notice or communication is mailed or published in the
manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it. 
 If the Company mails a
notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time. 
 Section
10.3. Communication by Holders with Other Holders. 
 Securityholders of any Series may communicate pursuant to TIA
Section 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA Section 312(c). 
 Section 10.4. Certificate and Opinion as to Conditions Precedent. 
 Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 (a) an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with; and 
  

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 (b) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with. 
 Section 10.5. Statements Required in Certificate or Opinion. 
 Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include: 
 (a) a statement that the person making such certificate or opinion has read such covenant or condition; 
 (b) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
 (c) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (d) a
statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 
 Section
10.6. Rules by Trustee and Agents. 
 The Trustee may make reasonable rules for action by or a meeting of Securityholders of one
or more Series. Any Agent may make reasonable rules and set reasonable requirements for its functions. 
 Section 10.7. Legal
Holidays. 
 Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular
Series, a “Legal Holiday” is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period. 
 Section 10.8. No Recourse Against Others. 
 A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities
or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Securityholder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration
for the issue of the Securities. 
 Section 10.9. Counterparts. 
  

 41 

 This Indenture may be executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 Section 10.10. Governing Laws. 
 THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF. 
 Section 10.11. No Adverse Interpretation of Other Agreements. 
 This Indenture may not be used to
interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
 Section 10.12. Successors. 
 All
agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor. 
 Section 10.13. Severability. 
 In case any provision in this Indenture or in the Securities shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 10.14. Table of Contents, Headings, Etc. 
 The Table of Contents, Cross Reference Table,
and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
 Section 10.15. Securities in a Foreign Currency or in ECU. 
 Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of
Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and,
at such time, there are outstanding Securities of any Series which are denominated in a coin or currency other than Dollars (including ECUs), then the principal amount of Securities of such Series which shall be deemed to be outstanding for the
purpose of taking such action shall be that amount of Dollars that could be obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section 10.15, “Market Exchange Rate” shall mean the noon Dollar
buying rate in New York City for cable transfers of that currency as published by the Federal Reserve Bank of New 

  

 42 

 
York; provided, however, in the case of ECUs, Market Exchange Rate shall mean the rate of exchange determined by the Commission of the European
Union (or any successor thereto) as published in the Official Journal of the European Union (such publication or any successor publication, the “Journal”). If such Market Exchange Rate is not available for any reason with respect to such
currency, the Trustee shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange as published in the Journal, as of the most recent
available date, or quotations or, in the case of ECUs, rates of exchange from one or more major banks in The City of New York or in the country of issue of the currency in question or, in the case of ECUs, in Luxembourg or such other quotations or,
in the case of ECUs, rates of exchange as the Trustee, upon consultation with the Company, shall deem appropriate. The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series
denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture. 
 All decisions and determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, to the
extent permitted by law, be conclusive for all purposes and irrevocably binding upon the Company and all Holders. 
 Section
10.16. Judgment Currency. 
 The Company agrees, to the fullest extent that it may effectively do so under applicable law, that
(a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in
which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with
the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then, the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments
in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the
extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional
cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by
judgment being obtained for any other sum due under this Indenture. For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are
authorized or required by law, regulation or executive order to close. 
  

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 ARTICLE XI. 
 SINKING FUNDS 
 Section 11.1. Applicability of Article. 
 The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this Indenture. 
 The minimum amount of any sinking fund payment provided
for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking
fund payment.” If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment shall be applied to the redemption of
Securities of any Series as provided for by the terms of the Securities of such Series. 
 Section 11.2. Satisfaction of Sinking Fund
Payments with Securities. 
 The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the
Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory
sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election of the Company pursuant to the terms
of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities
have not been previously so credited. Such Securities shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting
Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.
If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than
$100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding
sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying
Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company. 
 Section 11.3. Redemption of Securities for Sinking Fund. 
  

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 Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto
or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the
next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and
crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein
specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall
select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6. 
 [INCLUDE ARTICLE XII FOR SUBORDINATED SECURITIES... 
 ARTICLE XII. 
 SUBORDINATION OF SECURITIES 
 Section
12.1. Agreement of Subordination 
 The Company covenants and agrees, and each Holder of Securities issued hereunder by his
acceptance thereof likewise covenants and agrees, that all Securities shall be issued subject to the provisions of this Article XII; and each Person holding any Security, whether upon original issue or upon transfer, assignment or exchange thereof,
accepts and agrees to be bound by such provisions. 
 The payment of the principal of, premium, if any, and interest on all Securities
(including, but not limited to, the redemption price with respect to the Securities called for redemption in accordance with Article 3 as provided in the Indenture) issued hereunder shall, to the extent and in the manner hereinafter set forth, be
subordinated and subject in right of payment to the prior payment in full of all Senior Indebtedness, whether outstanding at the date of this Indenture or thereafter incurred. 
 No provision of this Article XII shall prevent the occurrence of any default or Event of Default hereunder. 
 Section 12.2. Payments to Holders 
 No payment
shall be made with respect to the principal of, or premium, if any, or interest on the Securities (including, but not limited to, the redemption price with respect to the Securities to be called for redemption in accordance with Article III as
provided in the Indenture), except payments and distributions made by the Trustee as permitted by the first or second paragraph of Section 12.5, if: 
  

 45 

 (a) a default in the payment of principal, premium, interest, rent or other
obligations due on any Senior Indebtedness occurs and is continuing (or, in the case of Senior Indebtedness for which there is a period of grace, in the event of such a default that continues beyond the period of grace, if any, specified in the
instrument or lease evidencing such Senior Indebtedness), unless and until such default shall have been cured or waived or shall have ceased to exist; or 
 (b) a default, other than a payment default, on a Designated Senior Indebtedness occurs and is continuing that then permits holders of such Designated Senior Indebtedness to accelerate its maturity and the
Trustee receives a notice of the default (a “Payment Blockage Notice”) from a Representative or the Company. 
 If the Trustee
receives any Payment Blockage Notice pursuant to clause (ii) above, no subsequent Payment Blockage Notice shall be effective for purposes of this Section unless and until (a) at least 365 days shall have elapsed since the initial
effectiveness of the immediately prior Payment Blockage Notice, and (b) all scheduled payments of principal, premium, if any, and interest on the Securities that have come due have been paid in full in cash. No nonpayment default that existed
or was continuing on the date of delivery of any Payment Blockage Notice to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage Notice. 
 The Company may and shall resume payments on and distributions in respect of the Securities upon the earlier of: 
 (a) the date upon which the default is cured or waived or ceases to exist, or 
 (b) in the case of a default referred to in clause (ii) above, 179 days pass after notice is received if the maturity of such Designated Senior Indebtedness has not been accelerated, unless this Article XII otherwise prohibits the
payment or distribution at the time of such payment or distribution. 
 Upon any payment by the Company, or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or winding-up or liquidation or reorganization of the Company, whether voluntary or involuntary or in bankruptcy, insolvency, receivership
or other proceedings, all amounts due or to become due upon all Senior Indebtedness shall first be paid in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, or payment thereof in accordance with its terms
provided for in cash or other payment satisfactory to the holders of such Senior Indebtedness, before any payment is made on account of the principal of, premium, if any, or interest on the Securities (except payments made pursuant to Article VI
from monies deposited with the Trustee pursuant thereto prior to commencement of proceedings for such dissolution, winding-up, liquidation or reorganization); and upon any such dissolution or winding-up or liquidation or reorganization of the
Company or bankruptcy, insolvency, receivership or other proceeding, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or
the Trustee would be entitled, except for the provision of this Article XII, shall (except as aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such 

  

 46 

 
payment or distribution, or by the Holders of the Securities or by the Trustee under this Indenture if received by them or it, directly to the holders of
Senior Indebtedness (pro rata to such holders on the basis of the respective amounts of Senior Indebtedness held by such holders, or as otherwise required by law or a court order) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their respective interests may appear, to the extent necessary to pay all Senior Indebtedness in full, in cash or other
payment satisfactory to the holders of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness, before any payment or distribution or provision therefor is made to the
Holders of the Securities or to the Trustee. 
 For purposes of this Article XII, the words, “cash, property or securities” shall
not be deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to
the extent provided in this Article XII with respect to the Securities to the payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) the Senior Indebtedness is assumed by the new corporation, if any,
resulting from any reorganization or readjustment, and (ii) the rights of the holders of Senior Indebtedness (other than leases which are not assumed by the Company or the new corporation, as the case may be) are not, without the consent of
such holders, altered by such reorganization or readjustment. The consolidation of the Company with, or the merger of the Company into, another corporation or the liquidation or dissolution of the Company following the conveyance or transfer of its
property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided for in Article V shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 12.2 if such other corporation shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in Article V. 
 In the event of the acceleration of the Securities because of an Event of Default, no payment or distribution shall be made to the Trustee or any Holder of Securities in respect of the principal of, premium, if any,
or interest on the Securities (including, but not limited to, the redemption price with respect to the Securities called for redemption in accordance with Article 3 as provided in the Indenture), except payments and distributions made by the Trustee
as permitted by the first or second paragraph of Section 12.5, until all Senior Indebtedness has been paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness or such acceleration is rescinded in accordance with
the terms of this Indenture. If payment of the Securities is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Indebtedness of the acceleration at the address set forth in the notice from the Agent (or
successor agent) to the Trustee as being the address to which the Trustee should send its notice pursuant to this Section 12.2, unless there are no payment obligations of the Company thereunder and all obligations thereunder to extend credit
have been terminated or expired. 
 In the event that, notwithstanding the foregoing provisions, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities (including, without limitation, by way of setoff or otherwise), prohibited by the foregoing, shall be received by the Trustee or the Holders of the Securities before all
Senior Indebtedness is paid in full in cash or other payment satisfactory to the holders of such Senior 

  

 47 

 
Indebtedness, or provision is made for such payment thereof in accordance with its terms in cash or other payment satisfactory to the holders of such Senior
Indebtedness, such payment or distribution shall be held in trust for the benefit of and shall be paid over or delivered to the holders of Senior Indebtedness or their representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any Senior Indebtedness may have been issued, as their respective interests may appear, as calculated by the Company, for application to the payment of all Senior Indebtedness remaining unpaid
to the extent necessary to pay all Senior Indebtedness in full in cash or other payment satisfactory to the holders of such Senior Indebtedness, after giving effect to any concurrent payment or distribution to or for the holders of such Senior
Indebtedness. 
 Nothing in this Section 12.2 shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 7.7. This Section 12.2 shall be subject to the further provisions of Section 12.5. 
 Section
12.3. Subrogation of Securities 
 Subject to the payment in full of all Senior Indebtedness, the rights of the Holders of the
Securities shall be subrogated to the extent of the payments or distributions made to the holders of such Senior Indebtedness pursuant to the provisions of this Article XII (equally and ratably with the holders of all indebtedness of the Company
which by its express terms is subordinated to other indebtedness of the Company to substantially the same extent as the Securities are subordinated and is entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to
receive payments or distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until the principal, premium, if any, and interest on the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of the Senior Indebtedness of any cash, property or securities to which the Holders of the Securities or the Trustee would be entitled except for the provisions of this Article XII, and no
payment over pursuant to the provisions of this Article XII, to or for the benefit of the holders of Senior Indebtedness by Holders of the Securities or the Trustee, shall, as between the Company, its creditors other than holders of Senior
Indebtedness, and the Holders of the Securities, be deemed to be a payment by the Company to or on account of the Senior Indebtedness; and no payments or distributions of cash, property or securities to or for the benefit of the Holders of the
Securities pursuant to the subrogation provisions of this Article XII, which would otherwise have been paid to the holders of Senior Indebtedness shall be deemed to be a payment by the Company to or for the account of the Securities. It is
understood that the provisions of this Article XII are and are intended solely for the purposes of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand.

 Nothing contained in this Article XII or elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the
Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the Securities the principal of (and premium, if
any) and interest on the Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of the Securities and creditors of the Company other than the
holders of the Senior 

  

 48 

 
Indebtedness, nor shall anything herein or therein prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any, under this Article XII of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy.

 Upon any payment or distribution of assets of the Company referred to in this Article XII, the Trustee, subject to the provisions of
Section 7.1, and the Holders of the Securities shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other person making such payment or distribution, delivered to the Trustee or to the Holders of the Securities, for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon and all other facts pertinent thereto or to this Article XII. 
 Section 12.4. Authorization to Effect Subordination 
 Each Holder of a Security by the holder’s acceptance thereof authorizes and directs the Trustee on the holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination
as provided in this Article XII and appoints the Trustee to act as the holder’s attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of debt in the form required in any proceeding
referred to in Section 6.3 hereof at least 30 days before the expiration of the time to file such claim, the holders of any Senior Indebtedness or their representatives are hereby authorized to file an appropriate claim for and on behalf of the
Holders of the Securities. 
 Section 12.5. Notice to Trustee 
 The Company shall give prompt written notice in the form of an Officers’ Certificate to a Responsible Officer of the Trustee and to any paying agent
of any fact known to the Company which would prohibit the making of any payment of monies to or by the Trustee or any paying agent in respect of the Securities pursuant to the provisions of this Article XII. Notwithstanding the provisions of this
Article XII or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any payment of monies to or by the Trustee in respect of the Securities pursuant
to the provisions of this Article XII, unless and until a Responsible Officer of the Trustee shall have received written notice thereof at the Corporate Trust Office from the Company (in the form of an Officers’ Certificate) or a Representative
or a holder or holders of Senior Indebtedness or from any trustee thereof; and before the receipt of any such written notice, the Trustee, subject to the provisions of Section 7.1, shall be entitled in all respects to assume that no such facts
exist; provided that if on a date not fewer than two Business Days prior to the date upon which by the terms hereof any such monies may become payable for any purpose (including, without limitation, the payment of the principal of, or premium, if
any, or interest on any Security) the Trustee shall not have received, with respect to such monies, the notice provided for in this Section 12.5, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power
and authority to receive such monies and to apply the same to the purpose for 

  

 49 

 
which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such prior date. 
 Notwithstanding anything in this Article XII to the contrary, nothing shall prevent any payment by the Trustee to the Holders of monies deposited with it
pursuant to Section 8.1, and any such payment shall not be subject to the provisions of Section 12.1 or 12.2. 
 The Trustee,
subject to the provisions of Section 7.1, shall be entitled to rely on the delivery to it of a written notice by a Representative or a person representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to
establish that such notice has been given by a Representative or a holder of Senior Indebtedness or a trustee on behalf of any such holder or holders. In the event that the Trustee determines in good faith that further evidence is required with
respect to the right of any person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article XII, the Trustee may request such person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Indebtedness held by such person, the extent to which such person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such person under this Article XII, and if such
evidence is not furnished the Trustee may defer any payment to such person pending judicial determination as to the right of such person to receive such payment. 
 Section 12.6. Trustee’s Relation to Senior Indebtedness 
 The Trustee in its individual
capacity shall be entitled to all the rights set forth in this Article XII in respect of any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in Section 7.11 or elsewhere in
this Indenture shall deprive the Trustee of any of its rights as such holder. 
 With respect to the holders of Senior Indebtedness, the
Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article XII, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into
this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions of Section 7.1, the Trustee shall not be liable to any holder of Senior
Indebtedness if it shall pay over or deliver to Holders of Securities, the Company or any other person money or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article XII or otherwise. 
 Section 12.7. No Impairment of Subordination 
 No right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or
otherwise be charged with. 
 Section 12.8. Article Applicable to Paying Agents 
  

 50 

 If at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be
then acting hereunder, the term “Trustee” as used in this Article shall (unless the context otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if
such Paying Agent were named in this Article in addition to or in place of the Trustee; provided, however, that the first paragraph of Section 12.5 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate acts as
Paying Agent. 
 Section 12.9. Senior Indebtedness Entitled to Rely 
 The holders of Senior Indebtedness (including, without limitation, Designated Senior Indebtedness) shall have the right to rely upon this Article XII, and
no amendment or modification of the provisions contained herein shall diminish the rights of such holders unless such holders shall have agreed in writing thereto. 
 ...END ARTICLE XII, INCLUDED FOR SUBORDINATED SECURITIES.] 
  

 51 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and
year first above written. 
  

			
	OREXIGEN THERAPEUTICS, INC.
		
	By:	 	 
		 	Name:
		 	Its:
	
	[Name of Trustee]
		
	By:	 	 
		 	Name:
		 	Its:Loan Agreement with the Royal Bank of Scotland dated February 18, 2005

 Exhibit 10.1 
 Dated as of 18 February 2005 
 DIANA SHIPPING INC. 
 as Borrower 
 -and- 
 THE ROYAL BANK OF SCOTLAND PLC 
 as
Lender 
  
  
 LOAN AGREEMENT 
  
 relating to a revolving credit
facility of up to USD$300,000,000 
 WATSON, FARLEY & WILLIAMS LLP 
 London 

					
	
	 INDEX

	 Clause
	  	 	  	Page
	 1
	  	INTERPRETATION	  	1
			
	 2
	  	FACILITY	  	15
			
	 3
	  	DRAWDOWN	  	15
			
	 4
	  	INTEREST	  	16
			
	 5
	  	INTEREST PERIODS	  	17
			
	 6
	  	DEFAULT INTEREST	  	17
			
	 7
	  	REPAYMENT, PREPAYMENT AND CANCELLATION	  	18
			
	 8
	  	MISMATCH BETWEEN FACILITY AND TRANSACTIONS	  	19
			
	 9
	  	CONDITIONS PRECEDENT	  	20
			
	 10
	  	REPRESENTATIONS AND WARRANTIES	  	21
			
	 11
	  	GENERAL UNDERTAKINGS	  	23
			
	 12
	  	CORPORATE UNDERTAKINGS AND FINANCIAL COVENANTS	  	27
			
	 13
	  	INSURANCE	  	28
			
	 14
	  	SHIP COVENANTS	  	32
			
	 15
	  	SECURITY COVER	  	35
			
	 16
	  	PAYMENTS AND CALCULATIONS	  	37
			
	 17
	  	APPLICATION OF RECEIPTS	  	37
			
	 18
	  	APPLICATION OF EARNINGS	  	38
			
	 19
	  	EVENTS OF DEFAULT	  	38
			
	 20
	  	FEES AND EXPENSES	  	43
			
	 21
	  	INDEMNITIES	  	44
			
	 22
	  	NO SET-OFF OR TAX DEDUCTION	  	45
			
	 23
	  	ILLEGALITY, ETC	  	46
			
	 24
	  	INCREASED COSTS	  	47
			
	 25
	  	SET-OFF	  	48
			
	 26
	  	ASSIGNMENTS, TRANSFERS AND CHANGES IN LENDING OFFICE	  	49
			
	 27
	  	VARIATIONS AND WAIVERS	  	49

					
	 28
	  	NOTICES	  	50
			
	 29
	  	SUPPLEMENTAL	  	51
			
	 30
	  	GOVERNING LAW AND JURISDICTION	  	52

					
			
	SCHEDULE 1	  	DRAWDOWN NOTICE	  	53
			
	SCHEDULE 2	  	CONDITION PRECEDENT DOCUMENTS	  	54
			
	SCHEDULE 3	  	THE EXISTING SHIPS	  	61
			
	SCHEDULE 4	  	MANDATORY COST FORMULA	  	62
			
	SCHEDULE 5	  	LENDER COMMITMENT	  	63
			
	SCHEDULE 6	  	FORM OF COMPLIANCE CERTIFICATE	  	64
		
	EXECUTION PAGE	  	65

 THIS LOAN AGREEMENT is dated as of 18 February 2005 
 BETWEEN: 
  

	(1)	DIANA SHIPPING INC., a company incorporated in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Island, P O Box 1405, Majuro,
Marshall Islands MH96960 (the “Borrower”); and 

  

	(2)	THE ROYAL BANK OF SCOTLAND PLC, acting through the Shipping Business Centre at 5-10 Great Tower Street, London EC3P 3HX (the “Lender”).

 BACKGROUND 
 The Lender
has agreed to make available to the Borrower a revolving credit facility of up to $300,000,000 as follows: 
  

	(A)	to enable the Borrower or other members of the Group to finance the acquisition of New Ships and the shares of New Companies; 

  

	(B)	to provide the Borrower with working capital in an amount of up to US$50,000,000 out of which an amount of up to $20,000,000 may be used for the acquisition of the Approved Manager;

 in each case, subject to the limitations, reductions and other terms and conditions contained in this Agreement. 

IT IS AGREED as follows: 
  

	1	INTERPRETATION 

  

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

 “Account Charge” means the deed in respect of the Operating Account executed or to be executed by the Borrower in favour of the Lender substantially in the form set out in Appendix C (or in such other form as the Lender may
approve or require); 
 “Accounting Information” means the quarterly financial statements and/or the annual audited financial
statements to be provided by the Borrower to the Lender in accordance with Clause 11.7; 
 “Accounting Period” means each
consecutive period of approximately three months falling during the Security Period (ending on the last day in March, June, September and December of each year) for which quarterly Accounting Information is required to be delivered pursuant to
Clause 11.7; 
 “Adjusted Net Worth” means, in respect of an Accounting Period, the amount of Total Assets less Consolidated
Debt; 
 “Advance” means each of the New Ship Advances and the Working Capital Advances and, in the plural, means all of
them; 
 “Approved Broker” means H. Clarkson & Company, Galbraiths Limited, Braemar Seascope, Arrow Shipbrokers or
such other firm of independent sale and purchase shipbrokers as shall be approved by the Lender (in substitution for any of the foregoing), in its sole and absolute discretion, from time to time for the purposes of this Agreement; 

 “Approved Flag” means any of the Greek or Bahamas or any other flag as the Lender may,
in its sole and absolute discretion approve as the flag on which a Ship may be registered; 
 “Approved Flag State” means any
of Greece or the Commonwealth of the Bahamas or any other country in which the Lender, may in its sole and absolute discretion, approve that a Ship may be registered; 
 “Approved Manager” means, for the time being, Diana Shipping Services S.A., a company incorporated under the laws of the Republic of Panama and whose registered office is at Edificio “Centro
Magna Corp”, Ave. Manuel MA, De y Caza y Calle 51, Panama, Republic of Panama or any other company which the Lender may, in its sole and absolute discretion, approve from time to time as the manager of the Ships; 
 “Availability Date” means the date on which all the conditions referred to in Schedule 2 Parts A and B have been satisfied (in the
opinion of the Lender) in full and shall be no later than 2 May 2006 unless the Lender otherwise agrees in its sole and absolute discretion; 
 “Availability Period” means the period commencing on the date of this Agreement and ending on: 
  

	 	(a)	the Termination Date (or such later date as the Lender may agree with the Borrower); or 

  

	 	(b)	if earlier, the date on which the Commitment is fully cancelled or terminated, 

 save that in the case of each Working Capital Advance, such period shall end on the date the Lender notifies the Borrower that the Commitment shall be reduced in accordance with the proviso in Clause 7.1; 

“Available Commitment” means, at any time, the Commitment less the amount of the Facility at that time; 
 “Business Day” means a day (other than a Saturday or Sunday) on which banks and financial markets in London are open for business and, in
respect of a day on which a payment is required to be made under a Finance Document, also a day on which banks and financial markets are open for business in New York City; 
 “Calculation Period” means the period commencing on the date on which the last payment or delivery has been made under section 2(d)(i) of
the Master Agreement with respect to a Transaction (or in the case of the first such period the date the relevant Transaction has been entered into) and ending on the next date upon which such a payment on delivery is to be made; 
 “Collateral Ship” means any New Ship which is registered under an Approved Flag, is the subject of a Mortgage and which the Borrower
nominates as a “Collateral Ship” for the purposes of this Agreement and, in the plural, means all of them; 
 “Commitment” means the maximum amount of the Facility at any given time to be determined in accordance with the commitment schedule set out in Schedule 5 as that amount may be limited, reduced, cancelled or terminated in
accordance with this Agreement; 
 “Confirmation” has the meaning given to that expression in section 14 of the Master
Agreement; 
  

 2 

 “Consolidated Debt” means, in respect of an Accounting Period, the aggregate amount of
Debt due by the members of the Group (other than any such Debt owing by any member of the Group to another member of the Group) as stated in the then most recent Accounting Information; 
 “Consolidated Financial Indebtedness” means, in respect of each Accounting Period, the aggregate amount of Financial Indebtedness
(including current maturities) due by the members of the Group (other than any such Financial Indebtedness owing by any member of the Group to another member of the Group) as stated in the then most recent Accounting Information; 
 “Contractual Currency” has the meaning given in Clause 21.5; 
 “Credit Support Document” has the meaning given to that expression in section 14 of the Master Agreement; 
 “Credit Support Provider” has the meaning given to that expression in section 14 of the Master Agreement; 
 “Current Assets” means, in respect of each Accounting Period, the aggregate of the cash and marketable securities, trade and other
receivables from persons other than a member of the Group’ realisable within one year, inventories and prepaid expenses which are to be charged to income within one year less any doubtful debts and any discounts or allowances given as
stated in the then most recent Accounting Information; 
 “Debt” means in relation to any member of the Group (the
“debtor”), Financial Indebtedness of the debtor; 
 “Dollars” and “$” means the lawful
currency for the time being of the United States of America; 
 “Drawdown Date” means, in relation to an Advance, the date
requested by the Borrower for the Advance to be made pursuant to Clause 3, or (as the context requires) the date on which the Advance is actually made; 
 “Drawdown Notice” means a notice in the form set out in Schedule 1 (or in any other form which the Lender approves or reasonably requires); 
 “Early Termination Date” has the meaning given to that expression in section 14 of the Master Agreement; 
 “Earnings” means, in relation to each Ship, all moneys whatsoever which are now, or later become, payable (actually or contingently) to
the Owner of that Ship and which arise out of the use or operation of that Ship, including (but not limited to): 
  

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

  

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

  

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

  

 3 

 “Environmental Claim” means 
  

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

  

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

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

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

  

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

  

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

 “Environmental Law” means any law relating to pollution or protection of the environment, to the carriage of Environmentally Sensitive
Material or to actual or threatened releases of Environmentally Sensitive Material; 
 “Environmentally Sensitive Material”
means oil, oil products and any other substance (including any chemical, gas or other hazardous or noxious substance) which is (or is capable of being or becoming) polluting, toxic or hazardous; 
 “Event of Default” means any of the events or circumstances described in Clause 19.1; 
 “Existing Ships” means any of the ships more particularly described in Schedule 3 and, in the singular, means any one of them;

 “Facility” means the principal amount of the borrowing by the Borrower which has been advanced and is for the time being
outstanding under this Agreement; 
 “Finance Documents” means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	the Master Agreement; 

  

	 	(c)	the Master Agreement Security Deed; 

  

	 	(d)	each Guarantee; 

  

 4 

	 	(e)	each General Assignment; 

  

	 	(f)	each Mortgage; 

  

	 	(g)	the Account Charge; 

  

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

 “Financial Indebtedness” means, in relation to any member of the Group (the “debtor”), a liability of the debtor
resulting from: 
  

	 	(a)	money borrowed from all sources; 

  

	 	(b)	any bonds, notes, loan stock, debentures or similar instruments; 

  

	 	(c)	acceptance credits, bills of exchange or documentary credits; 

  

	 	(d)	share issues on the basis that they are, or may become, redeemable (at redemption value); 

  

	 	(e)	gross obligations under finance leases; 

  

	 	(f)	factoring of debts; 

  

	 	(g)	amounts raised or obligations incurred in respect of any other transaction, which has the commercial effect of borrowing as determined in accordance with GAAP,

 provided that no amount shall be taken into account more than once in calculating Financial Indebtedness. 
 “GAAP” means accounting principles, concepts, bases and policies generally adopted and accepted in the United States of America
consistently applied; 
 “General Assignment” means, in relation to each Ship, a general assignment of the Earnings, the
Insurances and any Requisition Compensation of that Ship executed or to be executed by the Owner of that Ship in favour of the Lender substantially in the form set out in Appendix B (or such other form as the Lender may approve or require);

 “Group” means the Borrower and its subsidiaries (whether direct or indirect) from time to time during the Security Period
and “member of the Group” shall be construed accordingly; 
 “Guarantee” means, in relation to each Owner,
the guarantee by that Owner of the Borrower’s liabilities under this Agreement, the Master Agreement and the Finance Documents executed or to be executed by the relevant Owner in favour of the Lender substantially in the form set out in
Appendix D (or such other form as the Lender may approve or require); 
 “Insurances” means, in relation to each Ship:

  

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

  

 5 

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

 “Interest Expenses” means, in respect of an Accounting Period, the aggregate on a consolidated basis of all interest incurred by any
member of the Group (excluding any amounts owing by one member of the Group to another member of the Group) and any net amounts payable under interest rate hedge agreements; 
 “Interest Period” means a period determined in accordance with Clause 5; 
 “IPO” means, the sale of an underwritten initial public offering registered under the U.S. Securities Act of 1933, as amended, of shares
of common stock of the Borrower; 
 “ISM Code” means, in relation to its application to each Owner, the Approved Manager,
each Ship and its operation, the International Safety Management Code (including the guidelines on its implementation), adopted by the International Maritime Organisation Assembly as Resolution MSC 104 (73) (amending Resolution A.741
(18)) and Resolution A.913 (22) (superceding Resolution A.788 (19)), as the same may be amended, supplemented or superceded from time to time (and the terms “safety management system”, “Safety Management
Certificate” and “Document of Compliance” have the same meanings as are given to them in the ISM Code); 
 “ISPS
Code” means, in relation to its application to each Owner, the Approved Manager, each Ship and its operation, the International Ship and Port Facility Security Code constituted pursuant to Resolution A.924 (22) of the International
Maritime Organisation (“IMO”) adopted by a Diplomatic Conference of the IMO on Maritime Security on 13 December 2002 and now set out in Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS) 1974 (as amended); 

“Lender” means The Royal Bank of Scotland pic, a company incorporated in Scotland having its registered office at 36 St. Andrew
Square, Edinburgh EH2 2YB, Scotland acting through the Shipping Business Centre at 5-10 Great Tower Street, London EC3P 3HX, England or through any other branch notified to the Borrower from time to time pursuant to Clause 26.3 and includes all
persons directly or indirectly deriving title under it (whether by permitted assignment, amalgamation, operation of law or otherwise); 
 “Liquid Funds” means, in respect of an Accounting Period: 
  

	 	(a)	cash in hand or held with banks or other financial institutions of the Borrower and/or any other member of the Group in Dollars or another currency freely convertible into Dollars,
which is free of any Security Interest (other than a Permitted Security Interest and other than ordinary bankers’ liens which have not been enforced or become capable of being enforced); 

  

	 	(b)	any other short-term financial investment which is free of any Security Interest (other than a Permitted Security Interest) as stated in the then most recent Accounting Information;
and 

  

	 	(c)	any amounts in respect of the Available Commitment immediately available for drawing as working capital pursuant to Recital (C) of this Agreement; 

 “Major Casualty” means any casualty to the Ship in respect of which the claim or the aggregate of the claims against all insurers, before
adjustment for any relevant franchise or deductible, exceeds $1,000,000 or the equivalent in any other currency; 
 “Mandatory Cost
Rate” means the percentage rate which represents the cost to the Lender, relative to the Facility, of compliance with the requirements of the Bank of England, the Financial Services Authority or any other regulatory authority, as determined
by the Lender in accordance with the formula detailed in Schedule 4; 
  

 6 

 “Margin” means: 
  

	 	(a)	where the Relevant Percentage is less than sixty per cent (60%), 0.75 per cent per annum; 

  

	 	(b)	where the Relevant Percentage is between sixty per cent (60%) and seventy per cent (70%) inclusive, 0.80 per cent per annum; and 

  

	 	(c)	where the Relevant Percentage is greater than seventy per cent (70%), 0.85 per cent per annum; 

 “Margin Set Date” shall have the meaning given to such term in Clause 5.4; 
 “Master Agreement” means the Master Agreement (on the 1992 ISDA (Multicurrency -Crossborder) form as modified) entered into by the Lender
and the Borrower dated the date of this Agreement, and includes all transactions from time to time entered into and confirmations from time to time exchanged under the Master Agreement and any amending, supplementing or replacement agreements made
from time to time; 
 “Master Agreement Liabilities” means, at any relevant time, all liabilities actual or contingent,
present or future, of the Borrower to the Lender under the Master Agreement; 
 “Master Agreement Security Deed” means the
deed containing, inter alia, a charge in respect of the Master Agreement executed or to be executed by the Borrower in favour of the Lender substantially in the form set out in Appendix F (or such other form as the Lender may approve or require);

 “Mortgage” means, in relation to each Ship, the first priority or preferred ship mortgage on that Ship and, if required by
the Approved Flag State, a collateral deed of covenants, executed or to be executed by the Owner of such Ship in favour of the Lender substantially in the form of Appendix A or such other form as the Lender may approve or require and modified as
necessary to conform with the laws of the Approved Flag State; 
 “New Company” means any company which: 
  

	 	(a)	has as its principal business the ownership, chartering or operation of vessels; 

  

	 	(b)	the Borrower notifies to the Lender pursuant to Clause 3.4 as a company the Borrower wishes to acquire (either directly or through a subsidiary) with the assistance of a New Ship
Advance; and 

  

	 	(c)	the Lender, in its sole and absolute discretion, shall notify to the Borrower as being acceptable to the Lender, in accordance with Clause 3.4; and 

  

	 	(d)	is the subject of a Drawdown Notice, 

 and in the plural,
means all such companies; 
 “New Ship” means any dry bulk carrier or cellular container ship (which is not an Existing Ship)
which: 
  

	 	(a)	the Borrower notifies to the Lender pursuant to Clause 3.4 as a vessel which the Borrower wishes to purchase (either directly or through a subsidiary) with the assistance of a New
Ship Advance; 

  

 7 

	 	(b)	will be no greater than 10 years old at the date of the proposed purchase; 

  

	 	(c)	shall be registered on an Approved Flag on and from the date of its purchase by a member of the Group; 

  

	 	(d)	the Lender shall notify to the Borrower as being acceptable in accordance with Clause 3.4; and 

  

	 	(e)	is the subject of a Drawdown Notice, 

 and, in the plural,
means all such ships; 
 “New Ship Advance” means each advance requested by the Borrower or, as the context requires, made or
to be made by the Lender pursuant to Clause 3.2(c) to assist the Borrower directly or indirectly in its acquisition of New Ships and the shares of New Companies and, in the plural, means all such advances; 
 “Operating Account” means, for the time being, an account opened or to be opened in the name of the Borrower with the Lender designated
“Diana Shipping—Operating Account”, or any other account or sub-account (with that or another office of the Lender or with a bank or financial institution other than the Lender) which is designed by the Lender as the Operating Account
for the purposes of this Agreement; 
 “Owner” means any member of the Group who owns a Ship which is the subject of a
Mortgage and, in the plural, means all of them; 
 “Payment Currency” has the meaning given in Clause 21.5; 
 “Permitted Security Interests” means: 
  

	 	(a)	Security Interests created by the Finance Documents; 

  

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

  

	 	(c)	liens for salvage; 

  

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

 

	 	(e)	liens for master’s disbursements incurred in the ordinary course of trading and any other lien arising by operation of law or otherwise in the ordinary course of the operation,
repair or maintenance of a Ship, provided such liens do not secure amounts more than 30 days overdue (unless the overdue amount is being contested by the Borrower in good faith by appropriate steps) and subject, in the case of liens for repair or
maintenance, to Clause 14.12(f); 

  

	 	(f)	any Security Interest created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses where the Borrower is actively prosecuting
or defending such proceedings or arbitration in good faith by appropriate steps; and 

  

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

  

 8 

 “Pertinent Document” means: 
  

	 	(a)	any Finance Document; 

  

	 	(b)	any policy or contract of insurance contemplated by or referred to in Clause 13 or any other provision of this Agreement or another Finance Document; 

  

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

  

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

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

	 	(a)	England and Wales; 

  

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

  

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

  

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

  

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

  

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

 “Pertinent Matter” means: 
  

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

  

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

 and covers any such transaction, matter or statement, whether entered into, arising or made at any time before the signing of this Agreement or on or at
any time after that signing; 
 “Potential Event of Default” means an event or circumstance which, with the giving of any
notice, the lapse of time, a determination of the Lender and/or the satisfaction of any other condition, would constitute an Event of Default; 
 “RBS LIBOR” means, for an Interest Period, the rate per annum at which deposits in Dollars in an amount approximately equal to the Facility (or any part thereof) are (or would have been) offered by the Lender to leading
banks in the London Interbank Market at or about 11.00 a.m. (London time) on the second Business Day prior to commencement of such Interest Period for that Interest Period for a period equal to that Interest Period and for delivery on the first
Business Day of it; 
  

 9 

 “Receiving Bank” means American Express Bank Limited, 3 World Financial Centre, 23rd
Floor, New York, NY 10285-2300, USA or such other bank as may from time to time be notified by the Lender to the Borrower; 
 “Relevant Interest Rate” means RBS LIBOR or, in the case where a Transaction is to be, or has been, entered into under the Master Agreement and the Borrower has not made an election pursuant to Clause 4.3, TELERATE;

 “Relevant Percentage” means, at the relevant time, the principal amount of the Advances outstanding as a percentage of the
aggregate market value of the Ships which are the subject of a Mortgage (as determined in accordance with Clauses 15.5 and 15.6 where the Relevant Percentage shall be calculated on each Margin Set Date as per Clause 5.4; 
 “Relevant Person” has the meaning given in Clause 19.7; 
 “Repayment Date” means, a date on which the Commitment is reduced in accordance with the commitment schedule set out in Schedule 5 and on which the Borrower shall repay any sums necessary to ensure
that the Facility does not exceed the then current Commitment; 
 “Requisition Compensation” includes all compensation or
other moneys payable by reason of any act or event such as is referred to in paragraph (b) of the definition of “Total Loss”; 
 “Secured Liabilities” means all liabilities which the Borrower, the Security Parties or any of them have, at the date of this Agreement or at any later time or times, under or in connection with any Finance Document or any
judgment relating to any Finance Document; and for this purpose, there shall be disregarded any total or partial discharge of these liabilities, or variation of their terms, which is effected by, or in connection with, any bankruptcy, liquidation,
arrangement or other procedure under the insolvency laws of any country; 
 “Security Interest” means: 
  

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

  

	 	(b)	the security rights of a plaintiff under an action in rem;and 

  

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

 “Security Party” means the Owners, the Unencumbered Owners and any other person (except the Lender) who, as
a surety or mortgagor, as a party to any subordination or priorities arrangement, or in any similar capacity, executes a document falling within the last paragraph of the definition of “Finance Documents”; 
 “Security Period” means the period commencing on the date of this Agreement and ending on the date on which the Lender notifies the
Borrower and the Security Parties that: 
  

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

  

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

  

 10 

	 	(c)	neither the Borrower nor any Security Party has any future or contingent liability under Clause 20, 21 or 22 or any other provision of this Agreement or another Finance Document;
and 

  

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

 “Ships” means, together, the Existing Ships and the Collateral Ships and, in the singular, means
any one of them; 
 “Tangible Fixed Assets” means, in respect of an Accounting Period, the value (less depreciation computed
in accordance with GAAP) on a consolidated basis of all the assets of the Group which would, in accordance with GAAP, be classified as tangible fixed assets, namely items held for ongoing use to the business of the Group including, without
limitation, any land, plant, machinery and vessels as such value is stated in the then most recent Accounting Information; Provided that, for the purposes of determining compliance with the covenants set forth in Clause 15.2, the value of
such tangible fixed assets attributable to the Ships shall be equal to the aggregate value of such Ships (as determined by one or more of the Approved Brokers in the manner provided for in Clauses 15.5 and 15.6) rather than the value of such Ships
as stated in the then most recent Accounting Information; 
 “Taxes” includes all present and future income, corporation 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 with respect thereto, if any, and charges, fees or other amounts made on or in
respect thereof (and references to “Taxation” shall be construed accordingly); 
 “TELERATE” means, for an
Interest Period: 
  

	 	(a)	the rate per annum equal to the offered quotation for deposits in Dollars for a period equal to, or as near as possible equal to, that Interest Period or other relevant period which
appears on REUTERS BBA Page LIBOR 01 at or about 11.00 a.m. (London time) on the second Business Day prior to the commencement of that Interest Period or other period (and, for the purposes of this Agreement, “REUTERS BBA Page LIBOR 01”
means the display designated as “REUTERS BBA Page LIBOR 01” on the Reuters Money News Service or such other page as may replace REUTERS BBA Page LIBOR 01 on that service for the purpose of displaying rates comparable to that rate or on
such other service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying British Bankers’ Association Interest Settlement Rates for Dollars); or 

  

	 	(b)	if no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum determined by the Lender to be the rate per annum which leading banks in the London Interbank Market offer for
deposits in Dollars in the London Interbank Market at or about 11.00 a.m. (London time) on the second Business Day prior to the commencement of that Interest Period or other period for a period equal to that Interest Period or other period and for
delivery on the first Business Day of it; 

 “Termination Date” means the date falling 10 years after the
Availability Date; 
 “Total Assets” means, in respect of an Accounting Period, the aggregate of Current Assets and Tangible
Fixed Assets”; 
  

 11 

 “Total Loss” means: 
  

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

  

	 	(b)	any expropriation, confiscation, requisition or acquisition of the Ship, whether for full consideration, a consideration less than its proper value, a nominal consideration or
without any consideration, which is effected by any government or official authority or by any person or persons claiming to be or to represent a government or official authority (excluding a requisition for hire for a fixed period not exceeding 1
year without any right to an extension) unless it is within 1 month redelivered to the Borrower’s full control; 

  

	 	(c)	any arrest, capture, seizure or detention of the Ship (including any hijacking or theft) unless it is within 1 month redelivered to the Borrower’s full control;

 “Total Loss Date” means: 
  

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

  

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

  

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

  

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

  

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

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

 “Unencumbered Owners” means any owner of a New Ship which is not a Collateral Ship; and 
 “Working Capital Advance” means each advance requested by the Borrower or, as the context requires, made or to be made by the Lender
pursuant to Clause 3.2(e) to provide the Group with working capital and, in the plural, means all such advances. 
  

	1.2	Construction of certain terms. In this Agreement: 

 “administration notice” means a notice appointing an administrator, a notice of intended appointment and any other notice which is required by law (generally or in the case concerned) to be filed with the court or given to
a person before, or in connection with, the appointment of an administrator; 
 “approved” means, for the purposes of Clause
13, approved in writing by the Lender; 
 “asset” includes every kind of property, asset, interest or right, including any
present, future or contingent right to any revenues or other payment; 
 “company” includes any partnership, joint venture
and unincorporated association; 
 “consent” includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration, notarisation and legalisation; 
  

 12 

 “contingent liability” means a liability which is not certain to arise and/or the amount
of which remains unascertained; 
 “document” includes a deed; also a letter, fax or telex; 
 “excess risks” means the proportion of claims for general average, salvage and salvage charges not recoverable under the hull and
machinery policies in respect of the Ship in consequence of its insured value being less than the value at which the Ship is assessed for the purpose of such claims; 
 “expense” means any kind of cost, charge or expense (including all legal costs, charges and expenses) and any applicable value added or other tax; 
 “law” includes any order or decree, any form of delegated legislation, any treaty or international convention and any regulation or
resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council; 
 “legal or
administrative action” means any legal proceeding or arbitration and any administrative or regulatory action or investigation; 
 “liability” includes every kind of debt or liability (present or future, certain or contingent), whether incurred as principal or surety or otherwise; 
 “months” shall be construed in accordance with Clause 1.3; 
 “obligatory insurances” means all insurances effected, or which the Borrower is obliged to effect, under Clause 13 or any other provision of this Agreement or another Finance Document; 
 “parent company” has the meaning given in Clause 1.4; 
 “person” includes any company; any state, political sub-division of a state and local or municipal authority; and any international organisation; 
 “policy”, in relation to any insurance, includes a slip, cover note, certificate of entry or other document evidencing the contract of
insurance or its terms; 
 “protection and indemnity risks” means the usual risks covered by a protection and indemnity
association managed in London, including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies by reason of the
incorporation in them of clause 6 of the International Hull Clauses (01/11/02 or 01/11/03) or clause 8 of the Institute Time Clauses (Hulls)(l/l 1/1995) or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision;

 “regulation” includes any regulation, rule, official directive, request or guideline whether or not having the force of
law of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 
 “subsidiary” has the meaning given in Clause 1.4; 
 “tax” includes any
present or future tax, duty, impost, levy or charge of any kind which is imposed by any state, any political sub-division of a state or any local or municipal authority (including any such imposed in connection with exchange controls), and any
connected penalty, interest or fine; and 
  

 13 

 “war risks” includes the risk of mines and all risks excluded by clause 23 of the
Institute Time Clauses (Hulls)(l/10/83) or clause 24 of the Institute Time Clauses Hulls) (1/11/1995). 
  

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

  

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

  

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

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

  

	1.4	Meaning of “subsidiary”. A company (S) is a subsidiary of another company (P) if: 

  

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

  

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

  

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

  

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

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

	1.5	General Interpretation. In this Agreement: 

  

	(a)	references in Clause 1.1 to a Finance Document or any other document being in the form of a particular appendix include references to that form with any modifications to that form
which the Lender approves or reasonably requires; 

  

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

  

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

  

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

  

	(e)	Clauses 1.1 to 1.5 apply unless the contrary intention appears. 

  

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

  

 14 

	2	FACILITY 

  

	2.1	Amount of facility. Subject to the other provisions of this Agreement (including, without limitation, Clauses 3.2, 3.3 and 9.1(f)) and in reliance (inter alia) on the
representations and warranties of the Borrower and the Security Parties set out in the Finance Documents, the Lender shall make a revolving credit facility not exceeding $300,000,000 available to the Borrower. 

  

	2.2	Purpose of Advances. The Borrower undertakes with the Lender to use each Advance only for the purposes stated in the preamble to this Agreement. 

  

	3	DRAWDOWN 

  

	3.1	Request for Advance. Subject to the following conditions, the Borrower may request an Advance to be made by ensuring that the Lender receives a completed Drawdown Notice not
later than 11.00 a.m. (London time) 2 Business Days prior to the intended Drawdown Date. 

  

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

  

	(a)	the first Drawdown Date must be on or after the Availability Date unless the Lender otherwise agrees in its sole and absolute discretion; 

  

	(b)	a Drawdown Date must be a Business Day during the Availability Period; 

  

	(c)	subject to Clauses 3.3 and 3.4 the amount of a New Ship Advance: 

  

	 	(i)	shall not be less than $1,000,000; 

  

	 	(ii)	shall be a multiple of $ 1,000,000; 

  

	 	(iii)	shall not exceed the Available Commitment; and 

  

	 	(iv)	shall not exceed 100 per cent, of the cost of the New Ship or the shares of the New Company which, as the case may be, is the subject of such New Ship Advance;

  

	(d)	the aggregate amount of the Working Capital Advances shall not exceed $50,000,000, out of which up to $20,000,000 may be used for the acquisition of the Approved Manager and any
balance may be used as working capital and, each Working Capital Advance shall not be less than $1,000,000 and shall be a multiple of $1,000,000; 

  

	(e)	the aggregate amount of the Advances shall not exceed the Commitment; and 

  

	(f)	the aggregate amount of the Advances shall not exceed 75% of the aggregate market value of the Ships the subject of a Mortgage (calculated in accordance with the provisions of
Clauses 15.5 and 15.6). 

  

	3.3	Initial Commitment. Prior to the date of delivery of m.v.s “CALIPSO”, “CLIO” and “PANTELIS SP.” (more particularly described in Schedule 3) to
the relevant members of the Group, the Commitment shall be limited to the greater of: 

  

	(a)	$168,000,000; and 

  

	(b)	60 per cent, of the aggregate market value (as determined by one or more Approved Brokers in the manner provided for in Clauses 15.5 and 15.6) of the Ships which are the
subject of a Mortgage subject to a maximum amount of $230,000,000. 

  

 15 

	3.4	Availability of New Ship Advances. Where the Borrower wishes to borrow a New Ship Advance to assist the Borrower in funding the acquisition cost of a New Ship or a New
Company, the Borrower shall notify the Lender of the following: 

  

	(a)	in the case of the proposed acquisition of a New Ship, the proposed flag, general description, deadweight tonnage and purchase price of the vessel nominated by the Borrower and
whether the nominated vessel shall be a Collateral Ship subject to a Mortgage for the purposes of this Agreement; and 

  

	(b)	in the case of the proposed acquisition of a New Company, the name, place of incorporation and financial statements (if any) of the company nominated by the Borrower and the
acquisition price of the snares of the nominated company, 

 together with such further information as the Lender may reasonably
require. 
 Upon receipt of such information from the Borrower, the Lender shall, as soon as reasonably practical, notify the Borrower of its
acceptance or rejection of such nominated vessel or company for the purposes of a New Ship Advance (which acceptance or rejection shall be in accordance with the proviso below) and if the Lender rejects such vessel or company, the Lender shall be
under no obligation to make any such New Ship Advance in relation thereto, provided that: 
  

	 	(i)	the Lender’s acceptance of a nominated vessel shall be automatic if such vessel is a drybulk carrier or a cellular container ship (minimum 1,500 TEU) no older than ten
(10) years of age and classed to the highest applicable notation with a classification society acceptable to the Lender; and 

  

	 	(ii)	the Lender’s acceptance or rejection of any other nominated vessel (not falling within the criteria in (i) above) shall not be unreasonably withheld; and

  

	 	(iii)	the Lender’s acceptance or rejection of a nominated company shall be in the sole and absolute discretion of the Lender. 

  

	3.5	Drawdown Notice irrevocable. A Drawdown Notice must be signed by a director or other duly authorised representative of the Borrower; and once served, a Drawdown Notice cannot
be revoked without the prior consent of the Lender. 

  

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

  

	4	INTEREST 

  

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

  

	4.2	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest on an Advance in respect of the Interest Period applicable to it shall be the
aggregate of (a) the Margin, (b) the Relevant Interest Rate for that Interest Period and (c) the Mandatory Cost Rate, if any. 

  

	4.3	 Interest rate when Transactions under Master Agreement. If a Transaction is to be entered into under the Master Agreement, the Relevant Interest Rate for
each Interest Period applicable to that part of the Facility the subject of the Transaction (commencing with the first Interest Period relating to such Transaction) shall be TELERATE unless the Borrower, by giving written notice (which shall be
irrevocable) to the Lender not later 

  

 16 

	 	 
than 11.00 a.m. (London time) 2 Business Days before the commencement of such first Interest Period, elects that the Relevant Interest Rate shall be RBS
LIBOR rather than TELERATE. 

  

	4.4	Payment of accrued interest. In the case of an Interest Period longer than 6 months, accrued interest shall be paid every 6 months during that Interest Period and on the last
day of that Interest Period. 

  

	4.5	Notification of market disruption. The Lender shall promptly notify the Borrower if for any reason the Lender is unable to obtain Dollars in the London Interbank Market in
order to fund an Advance (or any part of it) during the Interest Period applicable to it, stating the circumstances which have caused such notice to be given and the Lender’s obligation to make the Advance shall be suspended while the
circumstances referred to in the Lender’s notice continue. 

  

	5	INTEREST PERIODS 

  

	5.1	Duration of normal Interest Periods. There shall be a single Interest Period for each Advance which shall be notified by the Borrower to the Lender in the Drawdown Notice for
that Advance and, subject to Clauses 5.2 and 5.3, that Interest Period shall be: 

  

	(a)	1, 3, 6 or 12 months as notified by the Borrower to the Lender in the Drawdown Notice for that Advance; or 

  

	(b)	3 months, if the Borrower fails to notify the Lender in the Drawdown Notice for that Advance; or 

  

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

 Provided that any Interest Period selected by the Borrower under this Clause is subject to availability as determined by the Lender in its sole and absolute discretion and when implementing a scheduled reduction in the Lender’s
Commitment as set out in Schedule 5, the selection of Interest Periods under this Clause 5.1 shall be made in such manner as to ensure that the expiry of an Interest Period in respect of an amount of the Facility equal to such scheduled reduction
amount shall coincide with such reduction date. 
  

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

  

	5.3	No Interest Period to extend beyond Termination Date. No Interest Period shall end after the Termination Date and any Interest Period which would otherwise extend beyond the
Termination Date shall instead end on the Termination Date. 

  

	5.4	Calculation of Margin. On each of the Availability Date, 30 June 2006 and quarterly thereafter (each such date being a “Margin Set Date”) the Lender
shall calculate the Margin applicable for the period from that Margin Set Date to the next Margin Set Date. 

  

	6	DEFAULT INTEREST 

  

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

  

	(a)	on or within 2 Business Days of the date on which the Finance Documents provide that such amount is due for payment; or 

  

 17 

	(b)	if a Finance Document provides that such amount is payable on demand, within 3 Business Days of the date on which such demand is served; or 

  

	(c)	if such amount has become immediately due and payable under Clause 19.4, the date on which it became immediately due and payable. 

  

	6.2	Default rate of interest. Interest shall accrue on an overdue amount from (and including) the relevant date until the date of actual payment (as well after as before
judgment) at the rate per annum determined by the Lender to be 1 per cent, above: 

  

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

  

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

  

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

  

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

  

	(b)	the Margin together with the Mandatory Cost Rate plus, in respect of successive periods of any duration (including at call) up to 3 months which the Lender may select from time to
time: 

  

	 	(i)	RBS LIBOR; or 

  

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

  

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

 

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

  

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

  

	7	REPAYMENT, PREPAYMENT AND CANCELLATION 

  

	7.1	Repayment of the Facility. The Borrower shall repay those sums (if any) necessary on each Repayment Date to ensure that the Facility does not exceed the Commitment as
determined on that Repayment Date by reference to Schedule 5 (as such Schedule may be amended from time to time in accordance with the provisions of this Agreement). 

 The Lender shall be entitled to debit the Operating Account without prior notice on the Repayment Dates in order to discharge any amount payable to it
under this Clause 7.1. 
  

 18 

	7.2	Additional payments on Termination Date. On the final Termination Date, the Borrower shall additionally pay to the Lender all other sums then accrued or owing under any
Finance Document. 

  

	7.3	Voluntary prepayment. Subject to the following conditions, the Borrower may prepay the whole or any part of an Advance. 

  

	7.4	Conditions for voluntary prepayment. The conditions referred to in Clause 7.3 are that: 

  

	(a)	the Lender has received from the Borrower at least 14 days’ prior written notice of its intention to make such a prepayment and specifying the amount and date on which the
prepayment is to be made; 

  

	(b)	the amount of any such partial prepayment shall be not less than $1,000,000 (or a higher integral multiple thereof); and 

  

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

  

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

  

	7.6	Amounts payable on prepayment. A prepayment shall be made together with accrued interest (and any other amount payable under Clause 20.2 below or otherwise) in respect of the
amount prepaid and, if the prepayment is not made on the last day of an Interest Period together with any sums payable under Clause 21.1(b) but without premium or penalty. 

  

	7.7	Reborrowing permitted. Subject to the terms of this Agreement, any amount repaid or prepaid may be reborrowed unless at the time of such repayment or prepayment, the
Borrower permanently cancels the whole or part of the Commitment in accordance with Clauses 7.8, 7.9 and 7.10. 

  

	7.8	Voluntary cancellation of Commitment. Subject to the following conditions, the Borrower may cancel the whole or any part of the Commitment. 

  

	7.9	Conditions for cancellation of the Commitment. Those conditions are: 

  

	(a)	that a partial cancellation shall be $1,000,000 or a multiple of $1,000,000; and 

  

	(b)	that the Lender has received from the Borrower at least 14 days’ prior written notice specifying the amount of the Commitment to be cancelled and the date on which the
cancellation is to take effect. 

  

	7.10	Effect of notice of cancellation. The service of a cancellation notice under Clause 7.9(b) shall cause the amount of the Commitment specified in the notice to be permanently
cancelled and the Commitment figures set out in Schedule 5 shall be reduced by an amount corresponding to the amount of such cancellation. 

  

	8	MISMATCH BETWEEN FACILITY AND TRANSACTIONS 

  

	8.1	Hedging position following repayment, prepayment or reduction of the Commitment. On or prior to any repayment or prepayment of all or part of the Facility or a reduction of
the Commitment (whether scheduled or not) under this Agreement then, subject to Clause 8.2, the Lender shall be entitled but not obliged: 

  

	(a)	to amend, supplement, cancel, net out, terminate, liquidate, transfer or assign all or such part of the rights, benefits and obligations created by the Master Agreement which equate
or relate to the part of the Facility so repaid or prepaid or the part of the Commitment so reduced; and/or 

  

 19 

	(b)	to obtain or re-establish any hedge or related trading position in any manner and with any person the Lender in its absolute discretion decides, 

 and, in the case of a repayment or prepayment of part of the Facility or a reduction of the part of the Commitment and the Lender exercising any part of
that entitlement, the Borrower’s continuing obligations under the Master Agreement shall, unless agreed otherwise by the Lender, be calculated so far as the Lender considers practicable by reference to the amended commitment reduction schedule
taking account of the fact that less than the full amount of the Commitment remains outstanding. 
  

	8.2	Obligation to provide additional security. If: 

  

	(a)	at any time, the Borrower maintains Transactions which are in amounts not wholly matched with or linked to, all or part of the Facility; and 

  

	(b)	following a written request from the Borrower, the Lender in its absolute discretion agrees that the Borrower may be permitted to maintain all or part of such Transactions,

 the Borrower shall, within 15 days of being notified by the Lender of such requirement, provide the Lender with, or procure
the provision to the Lender of, such additional security as shall, in the opinion of the Lender, be adequate to secure the performance of any relevant Transaction in excess of the Commitment. 
  

	8.3	Form of additional security. The additional security referred to in Clause 8.2 shall take such form, be constituted by such documentation and be entered into by such parties,
as the Lender may, in its absolute discretion, approve or require, and each document comprising such additional security shall constitute a Credit Support Document. 

  

	8.4	Indemnity. The Borrower shall, on the first written demand of the Lender, indemnify the Lender in respect of all expenses (including the fees of legal advisers) incurred or
sustained by the Lender as a consequence of, or in relation to, the effecting of any matters or transactions referred to in Clauses 8.1, 8.2, and 8.3. 

  

	8.5	Consequences of Transactions being terminated. Without prejudice to or limitation of the obligations of the Borrower under Clause 8.5, if the Lender exercises any of its
rights under Clause 8.1 and such exercise results in all or part of a Transaction being terminated, such termination shall be treated under the Master Agreement in the same manner as if it were a Terminated Transaction (as defined in section 14 of
the Master Agreement) effected by the Lender after an Event of Default by the Borrower, and, accordingly, the Lender shall be permitted to recover from the Borrower a payment for early termination calculated in accordance with the provisions of
section 6(e)(i) of the Master Agreement. 

  

	9	CONDITIONS PRECEDENT 

  

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

  

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

  

 20 

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

  

	(c)	that, on or before the Drawdown Date of each New Ship Advance but prior to the making of such New Ship Advance, the Lender receives the documents described in Part C of Schedule 2
in form and substance satisfactory to it and its lawyers; 

  

	(d)	that, on the date of this Agreement, the Lender has received the fee referred to in Clause 20.1(a) and has received payment of the expenses referred to in Clause 20.2; and

  

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

  

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

  

	 	(ii)	the representations and warranties in Clause 10.1 and those of the Borrower or any Security Party which are set out in the other Finance Documents would be true and not misleading
if repeated on each of those dates with reference to the circumstances then existing; and 

  

	 	(iii)	none of the circumstances contemplated by Clause 4.5 has occurred and is continuing; and 

  

	(f)	that, if the ratio set out in Clause 15.2 were applied immediately following the making of any Advance, the Borrower would not be obliged to provide additional security or prepay
part of the Facility under that Clause; 

  

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

  

	9.2	Waivers of conditions precedent. If the Lender, at its discretion, permits an Advance to be borrowed before certain of the conditions referred to in Clause 9.1 are satisfied,
the Borrower shall ensure that those conditions are satisfied within 5 Business days after the Drawdown Date (or such longer period as the Lender may specify). 

  

	10	REPRESENTATIONS AND WARRANTIES 

  

	10.1	General. The Borrower represents and warrants to the Lender as follows. 

  

	10.2	Status. The Borrower was duly incorporated under the laws of the Republic of Liberia, was duly domesticated under the laws of the Republic of The Marshall Islands and is
validly existing and in good standing under the laws of the Republic of The Marshall Islands. 

  

	10.3	Share capital and ownership. The Borrower is authorised to issue: 

  

	(a)	100,000,000 registered shares of common stock each with a par value of $0.01; and 

  

	(b)	25,000,000 registered preferred shares each with a par value of $0.01. 

  

	10.4	Corporate power. The Borrower (or, in the case of paragraph (a), each Owner) has the corporate capacity, and has taken all corporate action and obtained all consents
necessary for it: 

  

	(a)	to own and register the Ship owned by it in its name under the Approved Flag; 

  

 21 

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

  

	(c)	to borrow under this Agreement and to make all the payments contemplated by, and to comply with, those Finance Documents. 

  

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

  

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

  

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

  

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

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

	10.7	No third party Security Interests. Without limiting the generality of Clause 10.6, at the time of the execution and delivery of each Finance Document:

  

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

  

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

  

	10.8	No conflicts. The execution by the Borrower of each Finance Document, and the borrowing by the Borrower of the Facility, and its compliance with each Finance Document will
not involve or lead to a contravention of: 

  

	(a)	any law or regulation; or 

  

	(b)	the constitutional documents of the Borrower; or 

  

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

  

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

  

	10.10	No default. No Event of Default or Potential Event of Default has occurred and is continuing. 

  

	10.11	Information. All information which has been provided in writing by or on behalf of the Borrower or any Security Party to the Lender in connection with any Finance Document
satisfied the requirements of Clause 11.6; all audited and unaudited accounts which have been so provided satisfied the requirements of Clause 11.8; and there has been no material adverse change in the financial position or state of affairs of the
Borrower from that disclosed in the latest of those accounts. 

  

	10.12	No litigation. No legal or administrative action involving the Borrower has been commenced which would be likely to have a material adverse effect on the Borrower’s
business or condition (financial or otherwise). 

  

 22 

	10.13	Compliance with certain undertakings. At the date of this Agreement, the Borrower is in compliance with Clauses 11.2,11.3,11.10 and 11.11. 

  

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

  

	10.15	Registration. Save for such registrations and filings as are referred to in this Agreement and the other Finance Documents, it is not necessary for the legality, validity,
enforceability or admissibility in evidence of this Agreement, the Master Agreement and the other Finance Documents that any of them or any document relating thereto be registered, filed, recorded or enrolled with any court or authority in any
relevant jurisdiction or that any stamp, registration or similar Taxes be paid on or in relation to this Agreement, the Master Agreement or any of the other Finance Documents. 

  

	10.16	ISM and ISPS Code compliance. All requirements of the ISM Code and the ISPS Code as they relate to the Owners, the Approved Manager and the Ships have been complied with and,
without limiting the foregoing, each Owner has complied with all other statutory and other requirements relative to its business and in particular has obtained and maintains (or has ensured that the Approved Manager has obtained and maintained) a
valid Safety Management Certificate for the Ship owned by it and Document of Compliance. 

  

	10.17	No money laundering. The Borrower is acting for its own account and the borrowing of the Facility and the performance and discharge of the Borrower’s obligations and
liabilities under this Agreement, the Master Agreement and the other Finance Documents to which it is a party and other arrangements effected or contemplated by this Agreement will not involve or lead to contravention of any law, official,
requirement or other regulatory measure or procedure implemented to combat “money laundering” as defined in Article 1 of the Directive (91/308/EEC) of the Council of the European Community or any Pertinent Jurisdiction.

  

	10.18	Time when representations made. The representations and warranties in this Clause 10 are made on the date of this Agreement, shall survive the execution of this Agreement and
the advance of the Facility and, in addition, shall be deemed to be repeated on the date on which each Drawdown Notice is given and (other than those in Clauses 10.9 and 10.12) at the commencement of each Interest Period, with respect to the facts
and circumstances existing at each such time, as if made at each such time. 

  

	11	GENERAL UNDERTAKINGS 

  

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

  

	11.2	Title; negative pledge. The Borrower will: 

  

	(a)	hold the legal title to, and own either directly or indirectly the entire beneficial interest in each Owner and each Unencumbered Owner free from all Security Interests and other
interests and rights of every kind, except for those created by the Finance Documents; and 

  

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

  

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

  

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

  

 23 

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

 Provided that the provisions of this Clause 11.3 shall not prevent: 
  

	 	(i)	any disposal by a subsidiary of the Borrower to the Borrower or by the Borrower to a subsidiary of the Borrower or by a subsidiary of the Borrower to another subsidiary of the
Borrower; 

  

	 	(ii)	the sale of property or assets for its or their full value in cash to the extent that the net sale proceeds (after taking into account any taxation arising as a consequence of such
sale) are applied within 3 months after such sale in the acquisition of assets of a similar nature and approximately equal value to be used in a business for the time being carried on by the Borrower or the relevant subsidiary of the Borrower;

  

	 	(iii)	any distribution of the surplus assets of a subsidiary of the Borrower as part of a solvent winding up of such subsidiary; 

  

	 	(iv)	any exchange of assets for other assets of a substantially similar nature and approximately equal value; 

  

	 	(v)	the application of cash in the acquisition of assets or services in the ordinary course of trading of the Borrower; 

  

	 	(vi)	the sale, transfer, loan or disposal in the ordinary course of trading of obsolete plant and machinery; or 

  

	 	(vii)	the repayment of any principal or interest in respect of any moneys borrowed by members of the Group and the payment of any dividend or distribution permitted under this Agreement,

 which, in each case, does not result in the reduction of the Adjusted Net Worth or otherwise result in a material adverse
change in the Group’s financial position 
  

	11.4	No other liabilities or obligations to be incurred. The Borrower will not, and will procure that none of its subsidiaries will, incur any liability or obligation except
liabilities and obligations under the Finance Documents to which each is a party and liabilities or obligations reasonably incurred in the ordinary course of acquiring, financing, owning operating and chartering vessels. 

  

	11.5	Compliance with ISM and ISPS Code. The Borrower shall procure that each Owner and each Unencumbered Owner shall comply with the ISM Code and the ISPS Code and notify the
Lender in writing in the event that either the Document of Compliance and Safety Management Certificate is withdrawn, cancelled or suspended. 

  

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

  

	11.7	Provision of financial statements. The Borrower will send to the Lender: 

  

	(a)	as soon as possible, but in no event later than 6 months after the end of each financial year of the Borrower, the audited consolidated accounts of the Group and audited individual
accounts of the Borrower; 

  

 24 

	(b)	as soon as possible, but in no event later than 3 months after the end of each quarter in each financial year of the Borrower unaudited consolidated accounts of the Group and
unaudited individual accounts of the Borrower and which are certified as to their correctness by the chief financial officer of the Borrower; 

  

	(c)	on the date of this Agreement, on or before service of the first Drawdown Notice and thereafter, simultaneously with each of the annual audited accounts, the unaudited accounts and
the management accounts, to be sent to the Lender under paragraphs (i) and (ii), a compliance certificate signed by the chief financial officer of the Borrower in the form set out in Schedule 6, duly completed and supported by calculations
setting out in reasonable detail the materials underling the statements made in such compliance certificate. 

  

	11.8	Form of financial statements. All accounts (audited and unaudited) delivered under Clause 11.7 will: 

  

	(a)	be prepared in accordance with all applicable laws, the requirements of the United States Securities and Exchange Commission and GAAP; 

  

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

  

	(c)	fully disclose or provide for all significant liabilities of the Borrower and its subsidiaries. 

  

	11.9	Shareholder, creditor and other notices. The Borrower will send the Lender, at the same time as they are despatched, copies of all communications which are despatched to the
Borrower’s shareholders or creditors or any class of them and any documents filed with the United States Securities and Exchange Commission. 

  

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

  

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

  

	(b)	for the validity or enforceability of any Finance Document; 

  

	(c)	for each Owner to continue to own and operate the Ship owned by it; 

 and the Borrower will comply (or procure compliance) with the terms of all such consents. 
  

	11.11	Business. The Borrower shall not make any material change to its business from that being conducted at the date of this Agreement and shall procure that each Owner shall not
conduct any business or activity other than the ownership, chartering and operation of vessels. 

  

	11.12	Approved Manager. Each Ship shall be managed by the Approved Manager and the Borrower shall procure that no Owner shall employ a manager of any Ship other than the Approved
Manager, nor change the terms and conditions of the management of any Ship other than upon such terms and conditions as the Lender shall approve. 

  

	11.13	Maintenance of Security Interests. The Borrower will: 

  

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

  

 25 

	(b)	without limiting the generality of paragraph (a), at its own cost, promptly register, file, record or enroll any Finance Document with any court or authority in all Pertinent
Jurisdictions (including, without limitation, any Approved Flag State if at the relevant time a Ship is registered under the laws of such Approved Flag State), pay any stamp, registration or similar tax in all Pertinent Jurisdictions in respect of
any Finance Document, give any notice or take any other step which may be or become necessary or desirable for any Finance Document to be valid, enforceable or admissible in evidence or to ensure or protect the priority of any Security Interest
which it creates. 

  

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

  

	11.15	Principal place of business. The Borrower will maintain its place of business, and keep its corporate documents and records, at the address stated at the commencement of this
Agreement; and the Borrower will not establish, or do anything as a result of which it would be deemed to have, a place of business in any country other than the Marshall Islands and in the case of the Borrower’s principal executive offices,
Pendelis 16, 175 64 Palaio Faliro, Athens, Greece. 

  

	11.16	Acquisition of further tonnage. The Borrower shall not and shall procure that none of its subsidiaries shall acquire any further tonnage other than the Ships or New Ships
without the prior written consent of the Lender (such consent not to be unreasonably withheld) and the Borrower shall keep the Lender fully informed from time to time of any proposed purchases of tonnage by the Borrower or any of its subsidiaries.

  

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

  

	(a)	states that no Event of Default has occurred and is continuing unremedied and unwaived; or 

  

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

  

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

  

	(a)	the occurrence of an Event of Default; or 

  

	(b)	any matter which indicates that an Event of Default may have occurred; 

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

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

  

	(a)	to the Borrower, the Ships, the Earnings or the Insurances; or 

  

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

 which may be requested by the Lender at any time. 
  

 26 

	12	CORPORATE UNDERTAKINGS AND FINANCIAL COVENANTS 

  

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

  

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

  

	12.3	Negative undertakings. The Borrower will not: 

  

	(a)	pay any dividend or make any other form of distribution or effect any form of redemption, purchase or return of share capital which would result in a breach of the financial
covenants set out in Clause 12.4 or if an Event of Default has occurred and is continuing unremedied and unwaived; 

  

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

  

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

  

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

 or enter into any transaction with or involving such a person or company on terms which are, in any respect, less favourable to the Borrower than those
which it could obtain in a bargain made at arms’ length Provided that this shall not prevent or restrict the Borrower from on-lending Advances to members of the Group for the purposes permitted in accordance with the terms of this
Agreement; 
  

	(c)	reduce its issued share capital or issue, allot or grant any person a right to any shares in its capital or repurchase or reduce its issued share capital other than pursuant to the
IPO; 

  

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

  

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

  

	(f)	without the prior written consent of the Lender, permit a majority of the seats (other than vacant seats) on the board of directors of the Borrower to be held by persons other than
persons who are either: 

  

	 	(i)	nominated by the Borrower’s then current board of directors; or 

  

	 	(ii)	appointed by persons as so nominated in accordance with (i) above; or 

  

	(g)	save as permitted in paragraph (h) of this Clause 12.3, permit and shall procure that its shareholders shall not permit any one person (or associated (in the sole opinion of
the Lender) persons) to hold more than 20 per cent of the Borrower’s issued share capital at any one time; 

  

	(h)	permit and shall procure that its shareholders shall not permit less than 20 per cent of the Borrower’s issued share capital to vest in the ownership of members of the
Palios and Margaronis families. 

  

	12.4	Financial Covenants. The Borrower shall ensure that at all times: 

  

	(a)	Adjusted Net Worth is not less than $150,000,000; 

  

 27 

	(b)	Adjusted Net Worth exceeds 25 per cent, of Total Assets; and 

  

	(c)	Liquid Funds shall not be less than $400,000 for each of the Ships and the New Ships. 

  

	12.5	Maintenance of Liquid Funds. The Borrower shall procure that Liquid Funds of not less than $400,000 for each of the Ships the subject of a Mortgage are maintained in accounts
with the Lender. 

  

	13	INSURANCE 

  

	13.1	General. The Borrower also undertakes with the Lender to procure that each Owner will comply with the following provisions of this Clause 13 at all times during the Security
Period except as the Lender may otherwise permit. 

  

	13.2	Maintenance of obligatory insurances. The Borrower shall procure that each Owner keep the Ship owned by it insured at the expense of the Owner against:

  

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

  

	(b)	war risks; 

  

	(c)	protection and indemnity risks (without any exclusion for any Environmental Incident); 

  

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

  

	13.3	Terms of obligatory insurances. The Borrower shall procure that each Owner shall effect such insurances: 

  

	(a)	in Dollars; 

  

	(b)	in the case of fire and usual marine risks and war risks, in an amount on an agreed value basis at least the greater of (i) the market value of the Ship owned by it and
(ii) together with the other Ships then subject to a Mortgage, 120% of the Commitment; and 

  

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

  

	(d)	in relation to protection and indemnity risks in respect of the full tonnage of the Ship owned by it. 

  

	(e)	on approved terms; 

  

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

  

	(g)	if so required by the Lender (but without, as between the Owner and the Lender, liability on the part of the Lender for premiums or calls) with the Lender named as co-assured.

  

	13.4	Further protections for the Lender. In addition to the terms set out in Clause 13.3, the Borrower shall procure that the obligatory insurances shall:

  

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

  

 28 

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

  

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

  

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

  

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

  

	13.5	Renewal of obligatory insurances. The Borrower shall procure that each Owner shall: 

  

	(a)	at least 14 days before the expiry of any obligatory insurance or contract for such insurance: 

  

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

  

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

  

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

  

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

  

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

  

	(a)	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a notice of assignment complying with the provisions of Clause 13.4;

  

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

  

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

  

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

  

 29 

	(e)	they will not set off against any sum recoverable in respect of a claim relating to the Ship owned by that Owner under such obligatory insurances any premiums or other amounts due
to them or any other person whether in respect of that Ship or otherwise, they waive any lien on the policies, or any sums received under them, which they might have in respect of such premiums or other amounts, and they will not cancel such
obligatory insurances by reason of non-payment of such premiums or other amounts, and will arrange for a separate policy to be issued in respect of that Ship forthwith upon being so requested by the Lender. 

  

	13.7	Copies of certificates of entry. The Borrower shall procure that each Owner shall ensure that any protection and indemnity and/or war risks associations in which the Ship
owned by it is entered provides the Lender with: 

  

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

  

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

  

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

  

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

  

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

  

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

  

	13.11	Compliance with terms of insurances. The Borrower shall procure that no Owner shall do nor omit to do (nor permit to be done or not to be done) any act or thing which would
or might render any obligatory insurance invalid, void, voidable or unenforceable or render any sum payable under an obligatory insurance repayable in whole or in part; and, in particular: 

  

	(a)	each Owner shall take all necessary action and comply with all requirements which may from time to time be applicable to the obligatory insurances, and (without limiting the
obligation contained in Clause 13.7(c)) ensure that the obligatory insurances are not made subject to any exclusions or qualifications to which the Lender has not given its prior approval; 

  

	(b)	no Owner shall make any changes relating to the classification or classification society or manager or operator of the Ship owned by it unless approved by the underwriters of the
obligatory insurances; 

  

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

  

	(d)	no Owner shall employ the Ship owned by it, nor allow it to be employed, otherwise than in conformity with the terms and conditions of the obligatory insurances, without first
obtaining the consent of the insurers and complying with any requirements (as to extra premium or otherwise) which the insurers specify. 

  

 30 

	13.12	Alteration to terms of insurances. The Borrower shall procure that no Owner shall make or agree to any alteration to the terms of any obligatory insurance nor waive any right
relating to any obligatory insurance. 

  

	13.13	Settlement of claims. The Borrower shall procure that no Owner shall settle, compromise or abandon any claim under any obligatory insurance for Total Loss or for a Major
Casualty, and shall do all things necessary and provide all documents, evidence and information to enable the Lender to collect or recover any moneys which at any time become payable in respect of the obligatory insurances. 

 

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

  

	(a)	the approved brokers; and 

  

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

  

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

  

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

  

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

  

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

  

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

  

	(b)	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.16 or dealing with or considering any matters relating to any such insurances;

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

	13.16	Mortgagee’s interest insurance. The Lender shall be entitled from time to time to effect, maintain and renew a mortgagee’s interest insurance policy on any Ship in
such amounts which the Lender may from time to time consider appropriate (such amount to be equal to or greater than 120 per cent, of the Facility) such policy to be on such terms, through such insurers and generally in such manner as the
Lender may from time to time consider appropriate. The Borrower shall upon demand fully indemnify the Lender in respect of all premiums and other expenses which are incurred in connection with or with a view to effecting, maintaining or renewing any
such insurance or dealing with, or considering, any matter arising out of any such insurance. 

  

 31 

	13.17	Endorsement of mortgagee’s interest. Without prejudice to Clauses 13.3 and 13.4, the Borrower shall procure that the interest to the Lender shall be duly endorsed upon
all slips, cover notes, policies, certificates of entry or other instruments of insurance issued or to be issued in connection with the obligatory or other insurances by means of a loss payable clause and a notice of assignment signed by the Owner
of each Ship, each in such form as shall from time to time be approved in writing by the Lender. 

  

	13.18	Application of insurance proceeds. The Borrower shall procure that each Owner shall apply all such sums receivable in respect of the obligatory or other insurances as are
paid to the Lender in accordance with the General Assignment for the purpose of making good the loss and fully repairing all damage in respect of which the insurance moneys shall have been received. 

  

	13.19	Changing requirements. The Lender shall be entitled to review the requirements of this Clause 13 from time to time and notify the Borrower in writing of any modifications to
the provisions of this Clause 13 which the Lender may reasonably specify in order to take account of changes in circumstances after the date of this Agreement (such changes in circumstances to include, without limitation, changes in each Ship’s
trading patterns, changes in applicable law and changes in the price and availability of insurance coverage) and such notification shall be binding on the Borrower and the relevant Owner. 

  

	14	SHIP COVENANTS 

  

	14.1	General. The Borrower also undertakes with the Lender to procure that each Owner shall comply with the following provisions of this Clause 14 at all times during the Security
Period except as the Lender may otherwise permit. 

  

	14.2	Ship’s name and registration. Each Owner shall keep the Ship owned by it registered in its name as a ship registered under an Approved Flag and shall not do or allow to
be done anything as a result of which such registration might be cancelled or imperilled; and shall not change the name or port of registry of that Ship. 

  

	14.3	Repair and classification. Each Owner shall keep the Ship owned by it in a good and safe condition and state of repair: 

  

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

  

	(b)	so as to maintain the highest class with a classification society which is a member of the International Association of Classification Societies free of overdue recommendations and
conditions affecting class; and 

  

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

  

	14.4	Modification. The Borrower shall procure that each Owner shall not make any modification or repairs to, or replacement of, the Ship owned by it or equipment installed on her
which would or might materially alter the structure, type or performance characteristics of that Ship or materially reduce her value. 

  

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

  

 32 

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

  

	14.7	Inspection. The Borrower shall procure that each Owner shall permit the Lender (by surveyors or other persons appointed by it for that purpose) to board the Ship owned by it
at all reasonable times to inspect its condition or to satisfy themselves about proposed or executed repairs and shall afford all proper facilities for such inspections. 

  

	14.8	Prevention of and release from arrest. The Borrower shall procure that each Owner shall promptly discharge: 

  

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

  

	(b)	all Taxes, dues and other amounts charged in respect of the Ship owned by it, her Earnings or the Insurances; and 

  

	(c)	all other outgoings whatsoever in respect of the Ship owned by it, her Earnings or the Insurances; 

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

	14.9	Compliance with laws etc. The Borrower shall procure that each Owner and the Approved Manager shall: 

  

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

  

	(b)	not employ the Ship owned by it nor allow her employment in any manner contrary to any law or regulation in any relevant jurisdiction including but not limited to the ISM Code, the
ISPS Code or in carrying illicit or prohibited goods or in any manner whatsoever which may render her liable to condemnation in Prize Court or to destruction, seizure or confiscation; and 

  

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

  

	14.10	Provision of information. The Borrower shall procure that each Owner shall promptly provide the Lender with any information which it requests regarding:

  

	(a)	the Ship owned by it, her employment, position, engagements and Insurances; 

  

	(b)	the Earnings and payments and amounts due to the master and crew of the Ship owned by it; 

  

 33 

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

  

	(d)	any towages and salvages; 

  

	(e)	the Owner’s compliance, the Approved Manager’s compliance or the compliance of the Ship owned by it, with the ISM Code and the ISPS Code; 

 and, upon the Lender’s request, the Borrower shall procure that each Owner shall provide copies of any current charter relating to the Ship owned by
it, of any current charter guarantee and of that Ship’s Safety Management Certificate and the Document of Compliance. 
  

	14.11	Notification of certain events. The Borrower shall immediately notify the Lender by fax, confirmed forthwith, by letter of: 

  

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

  

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

  

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

  

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

  

	(e)	any intended dry docking of the Ship owned by it; 

  

	(f)	any Environmental Claim made against that Owner or in connection with the Ship owned by it, or any Environmental Incident; 

  

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

  

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

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

	14.12	Restrictions on chartering, appointment of managers etc. The Borrower shall procure that no Owner shall in relation to any Ship owned by it: 

  

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

  

	(b)	enter into any time or consecutive voyage charter in respect of the Ship owned by it for a term which exceeds, or which by virtue of any optional extensions may exceed, 13 months;

  

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

  

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

  

 34 

	(e)	de-activate or lay up the Ship owned by it; or 

  

	(f)	put the Ship owned by it into the possession of any person for the purpose of work being done upon her in an amount exceeding or likely to exceed $1,000,000 (or the equivalent in
any other currency) unless that person has first given to the Lender and in terms satisfactory to it a written undertaking not to exercise any lien on the Ship or her Earnings for the cost of such work or for any other reason.

  

	14.13	Creation of Mortgage. The Borrower shall procure that each of m.v.s “CALIPSO”, “CLIO” and “PANTELIS SP.” (as more particularly described in
Schedule 3) shall become the subject of a Mortgage immediately upon its delivery to the relevant member of the Group and that all the other documents and evidence listed in Schedule 2, Part B as they relate to m.v.s “CALIPSO”,
“CLIO” and “PANTELIS SP.” shall be provided to the Lender on or prior to the date on which the relevant members of the Group take delivery of m.v.s “CALIPSO”, “CLIO” and “PANTELIS SP.”, as the case
may be. 

  

	14.14	Notice of Mortgage. The Borrower shall procure that each Owner shall keep the Mortgage registered against the Ship owned by it as a valid first priority mortgage, carry on
board that Ship a certified copy of the relevant Mortgage and place and maintain in a conspicuous place in the navigation room and the Master’s cabin of that Ship a framed printed notice stating that the Ship is mortgaged by that Owner to the
Lender. 

  

	14.15	Sharing of Earnings. .The Borrower shall procure that the Owner shall not enter into any agreement or arrangement for the sharing of any Earnings. 

 

	14.16	Books of account. The Borrower shall procure that each Owner shall keep proper books of account in respect of the Ship owned by it and her Earnings and, as and when the
Lender so requires, the Borrower shall make or shall procure that each Owner makes such books available for inspection on behalf of the Lender. 

  

	15	SECURITY COVER 

  

	15.1	General. The Borrower shall comply with the following provisions of this Clause 15 at all times during the Security Period except as the Lender may otherwise permit.

  

	15.2	Minimum required Security Cover. If, and so often as, the aggregate market value of the Ships which are the subject of a Mortgage (as determined in accordance with Clauses
15.5 and 15.6) plus the market value of any additional security for the time being actually provided to the Lender pursuant to Clause 15.3 falls below 120 per cent, of: 

  

	(a)	the Facility; and 

  

	(b)	such amount (the “Termination Amount”) as determined by the Lender in its absolute discretion as the amount due from the Borrower on terminating any Transaction
under the Master Agreement in the same manner as if it were a Terminated Transaction (as defined in Section 14 of the Master Agreement) effected by the Lender after an Event of Default, 

 the Borrower shall, within 15 days of being notified by the Lender of such requirement (which notification shall be conclusive and binding on the
Borrower), comply with Clause 15.3 or 15.4. 
  

	15.3	Provision of additional security. Subject to Clause 15.4, on receipt of the notification referred to in Clause 15.2, the Borrower shall, within 15 days of receipt of the
notification, provide the Lender with, or procure the provision to the Lender of, such additional security as shall, in the opinion of the Lender, be adequate to make up such deficiency, which additional security shall take such form, be constituted
by such documentation and be entered into by such parties as the Lender in its absolute discretion may approve or require. 

  

 35 

	15.4	Prepayment of Facility. If the Borrower does not make proposals satisfactory to the Lender in relation to the additional security referred to in Clause 15.3 within 10 days of
the date of the receipt by the Borrower of the Lender’s notification referred to in Clause 15.2, the Borrower shall make an offer to prepay (subject to, and in accordance with, Clause 7.4), such part of the Facility as will ensure that the
aggregate market value (as determined in accordance with Clauses 15.5 and 15.6) of the Ships plus the market value of any additional security for the time being actually provided to the Lender pursuant to Clause 15.3 is, after such prepayment, at
least 120 per cent, of (a) the Facility and (b) the Termination Amount. 

  

	15.5	Market value of the Ship. For the purposes of Clauses 15.3 and 15.4, the market value of a Ship shall be determined (at the expense of the Borrower) at any time as the Lender
may request by means of a valuation made by an Approved Broker appointed by the Lender (the “First Valuation”). 

  

	15.6	Procedure for valuation. For the purposes of ascertaining the market value referred to in Clause 15.5, the First Valuation shall be made with or without physical inspection
of the relevant Ship (as the Lender may require), on the basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms as between a willing seller and a willing buyer, free of any existing charter or other contract of
employment. The Borrower may either: 

  

	 	(i)	accept the valuation set out in the First Valuation as conclusive evidence of the market value of the relevant Ship at the date of such valuation; or 

  

	 	(ii)	within 10 days of receipt of the First Valuation from the Lender, appoint a second Approved Broker (at the Borrower’s expense) to provide a second valuation (the
“Second Valuation”) addressed to the Lender and given on the same basis as the First Valuation. 

 In the event
the Borrower obtains a Second Valuation as aforesaid, the average of the First Valuation and the Second Valuation shall be taken to establish the market value of the relevant Ship and such average shall be conclusive evidence of the market value of
the relevant Ship. 
  

	15.7	Provision of information. The Borrower shall supply to the Lender and to any Approved Broker such information concerning the relevant Ship being valued and her condition as
such Approved Broker may require for the purpose of making a valuation. 

  

	15.8	Market value of additional security. For the purpose of this Clause 15, the market value of any additional security provided or to be provided to the Lender shall be
determined by the Lender in its absolute discretion without any necessity for the Lender to assign any reason therefore Provided that: 

  

	(a)	if such additional security provided to the Lender is in the form of cash in a currency other than Dollars, then the market value of such cash will be equal to an equivalent amount
in Dollars calculated at the exchange rate determined by the Lender in its absolute discretion; and 

  

	(b)	if such additional security provided to the Lender is a vessel, then the market value of such vessel shall be determined in accordance with the provisions of Clauses 15.5 and 15.6.

  

	15.9	Additional documentation. In connection with any additional security provided in accordance with this Clause 15, the Lender shall be entitled to receive certified copies of
such documents of the kind referred to in paragraphs 2, 3, 4, 5, 6 and 15 of Part A of Schedule 2 and such favourable legal opinions as the Lender shall, in its absolute discretion, require. 

  

 36 

	15.10	Payment of valuation expenses. Without prejudice to the generality of the Borrower’s obligations under Clauses 20.2, 20.3 and 20.4, the Borrower shall, on demand, pay
the Lender the amount of the fees and expenses of any Approved Broker instructed by the Lender under this Clause and all legal and other expenses properly incurred by the Lender in connection with any matter arising out of this Clause.

  

	16	PAYMENTS AND CALCULATIONS 

  

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

  

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

  

	(b)	in same day Dollar funds settled through the New York Clearing House Interbank Payments System (or in such other Dollar funds and/or settled in such other manner as the Lender shall
specify as being customary at the time for the settlement of international transactions of the type contemplated by this Agreement); and 

  

	(c)	to the account of the Lender at the Receiving Bank (Account No 00261123), or to such other account with such other bank as the Lender may from time to time notify to the Borrower.

  

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

 

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

  

	(b)	if the next succeeding Business Day falls in the next calendar month, the due date shall be brought forward to the immediately preceding Business Day; and interest shall be payable
during any extension under paragraph (a) at the rate payable on the original due date. 

  

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

  

	16.4	Lender accounts. The Lender shall maintain an account showing the amounts advanced by the Lender and all other sums owing to the Lender from the Borrower and each Security
Party under the Finance Documents and all payments in respect of those amounts made by the Borrower and any Security Party. 

  

	16.5	Accounts prima facie evidence. If the account maintained under Clauses 16.4 shows an amount to be owing by the Borrower or a Security Party to the Lender, that account shall
be prima facie evidence that that amount is owing to the Lender. 

  

	17	APPLICATION OF RECEIPTS 

  

	17.1	Application. All moneys received by the Lender under the Finance Documents and expressed to be applied in accordance with this Clause 17.1 shall (unless the Lender otherwise
requires) be applied by the Lender in the following manner: 

 FIRST: in or towards satisfaction of any amounts as are then
accrued due and payable under this Agreement, the Master Agreement and the other Finance Documents (or any of them) or are then due and payable by virtue of payment demanded under this Agreement, the Master Agreement or the other Finance Documents
in such order of application as the Lender shall think fit; 
  

 37 

 SECONDLY: in retention of an amount equal to any amounts which are not then due and payable under this
Agreement, the Master Agreement or any other Finance Document but which (in the sole and absolute opinion of the Lender) will or may become due and payable in the future and, upon their becoming due and payable, in or towards satisfaction thereof in
accordance with the foregoing provisions of this Clause 17.1; and 
 THIRDLY: the surplus (if any) shall be paid to the Borrower or to
whomsoever else may be entitled thereto. 
  

	17.2	Notice of variation of order of application. The Lender may, by notice to the Borrower and the Security Parties, provide for a different order of application from that set
out in Clause 17.1 either as regards a specified sum or sums or as regards sums in a specified category or categories. 

  

	17.3	Effect of variation notice. The Lender may give notices under Clause 17.2 from time to time; and such a notice may be stated to apply not only to sums which may be received
or recovered in the future, but also to any sum which has been received or recovered on or after the third Business Day before the date on which the notice is served. 

  

	17.4	Appropriation rights overridden. This Clause 17 and any notice which the Lender gives under Clause 17.2 shall override any right of appropriation possessed, and any
appropriation made, by the Borrower or any Security Party. 

  

	18	APPLICATION OF EARNINGS 

  

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

  

	18.2	Location of accounts. The Borrower shall promptly: 

  

	(a)	comply with any requirement of the Lender as to the location or re-location of the Operating Account; 

  

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

  

	18.3	Debits for expenses etc. The Lender shall be entitled (but not obliged) from time to time to debit the Operating Account without prior notice in order to discharge any amount
due and payable to it under Clause 20 or payment of which it has become entitled to demand under Clause 20. 

  

	18.4	Release of Earnings. Any amounts standing to the credit of the Operating Account shall be available to the Borrower to meet the operating expenses of each Ship and for any
other purpose permitted by this Agreement Provided that no Event of Default or Potential Event of Default has occurred. 

  

	19	EVENTS OF DEFAULT 

  

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

  

	(a)	the Borrower or any Security Party fails to pay within 2 Business Days of the due date or, if payable on demand, within 3 days of the Lender’s demand any sum payable under a
Finance Document or under any document relating to a Finance Document; or 

  

 38 

	(b)	

  

	 	(i)	any breach occurs of Clause 8.3, 9.2, 11.2, 11.3, 11.16, 12.2, 12.3, 14.2, 14.14 or 18.1,; or 

  

	 	(ii)	the Borrower fails to provide additional security or make a prepayment of part of the Facility in the circumstances referred to in Clauses 9.1(f), 15.2, 15.3 and 15.4 within the
time limit prescribed; or 

  

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

  

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

  

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

  

	(f)	any of the following occurs in relation to any Financial Indebtedness of a Relevant Person in an amount exceeding $500,000 or its equivalent in other currencies (singly or in
aggregate): 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(ii)	any assets of a Relevant Person are subject to any form of execution, attachment, arrest, sequestration or distress, or any form of freezing order, in respect of a sum of, or sums
aggregating, $500,000 or more or the equivalent in another currency and such execution, attachment, arrest, sequestration, distress or other form of freezing order is not dismissed, discharged, stayed or restrained, in each case, within 14 days of
the institution or presentation thereof; or 

  

 39 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(x)	 any meeting of the members or directors, or of any committee of the board or senior management, of a Relevant Person is held or summoned for the purpose of 

  

 40 

	 	 
considering a resolution or proposal to authorise or take any action of a type described in paragraphs (iv) to (ix) or a step preparatory to such
action, or (with or without such a meeting) the members, directors or such a committee resolve or agree that such an action or step should be taken or should be taken if certain conditions materialise or fail to materialise; or

  

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

  

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

  

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

  

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

  

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

  

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

  

	(k)	without the Lender’s prior consent, a change occurs after the date of this Agreement in the ultimate beneficial ownership of any of the shares in the Borrower or any of its
subsidiaries so that persons other than: 

  

	 	(i)	members of the Palios and Margaronis family; 

  

	 	(ii)	beneficiaries of any employee stock ownership plan or other employee benefit plan of the Borrower and/or its subsidiaries; or 

  

	 	(iii)	one or more underwriters temporarily holding shares of the Borrower pursuant to an offering of such shares, 

 have acquired or shall acquire direct or indirect legal or beneficial ownership of more than 20 per cent, of the issued and outstanding share capital
of the Borrower; or 
  

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

  

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

  

	(n)	the Lender gives notice of an Early Termination Date under Section 6(a) of the Master Agreement; or 

  

	(o)	a person entitled to do so gives notice of an Early Termination Date under Section 6(b)(iv) of the Master Agreement; or 

  

 41 

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

  

	(q)	the Master Agreement is terminated, cancelled, suspended, rescinded or revoked or otherwise ceases to remain in full force and effect for any reason other than because of any action
by the Lender; or 

  

	(r)	any of the financial covenants set out in Clause 12.4 are contravened; 

  

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

  

	 	(i)	a change in the financial position, state of affairs or prospects of the Borrower or any Owner; or 

  

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

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

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

  

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

  

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

  

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

  

	19.3	Termination of obligations. On the service of a notice under Clause 19.2(a), all the obligations of the Lender to the Borrower under this Agreement shall terminate.

  

	19.4	Acceleration of Facility. On the service of a notice under Clause 19.2(b), the Facility, all accrued interest and all other amounts accrued or owing from the Borrower or any
Security Party under this Agreement and every other Finance Document shall become immediately due and payable or, as the case may be, payable on demand. 

  

	19.5	Multiple notices; action without notice. The Lender may serve notices under Clauses 19.2(a) and (b) simultaneously or on different dates and it may take any action
referred to in Clause 19.2 if no such notice is served or simultaneously with or at any time after the service of both or either of such notices. 

  

	19.6	Exclusion of Lender liability. Neither the Lender nor any receiver or manager appointed by the Lender, shall have any liability to the Borrower or a Security Party:

  

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

  

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

  

 42 

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

  

	19.7	Relevant Persons. In this Clause 19 a “Relevant Person” means the Borrower, a Security Party, and any company which is a subsidiary of the Borrower or a
Security Party or of which the Borrower or a Security Party is a subsidiary; but excluding any company which is dormant and the value of whose gross assets is $50,000 or less. 

  

	19.8	Interpretation. In Clause 19.1(f) references to an event of default or a termination event include any event, howsoever described, which is similar to an event of default in
a facility agreement or a termination event in a finance lease; and in Clause 19.1(g) “petition” includes an application. 

  

	20	FEES AND EXPENSES 

  

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

  

	(a)	on the date of this Agreement, a fee of $1,200,000; and 

  

	(b)	quarterly in arrears during the period from (and including) the Availability Date to the last day of the Availability Period, a commitment fee at the rate of 0.25 per cent, per
annum on the amount of the Available Commitment. 

  

	20.2	Costs of negotiation, preparation etc. The Borrower shall reimburse to the Lender on demand all costs, fees and expenses (including, but not limited to, legal fees and
expenses) and Taxes thereon properly incurred by the Lender in connection with: 

  

	(a)	the negotiation, preparation and execution of this Agreement, the Master Agreement and the Finance Documents the insurance consultant’s report referred to in paragraph 4 of
Part B of Schedule 2 and paragraph 12 of Part C of Schedule 2 and the foreign lawyer opinions referred to in paragraph 5 of Part B of Schedule 2 and paragraphs 13 and 9 of Part C of Schedule 2; and/or 

  

	(b)	the preserving or enforcing of, or attempting to preserve or enforce, any of its rights under this Agreement, the Master Agreement and the other Finance Documents.

  

	20.3	Costs of variations, enforcement etc. The Borrower shall reimburse to the Lender on demand all costs, fees and expenses (including, but not limited to, legal fees and
expenses) and Taxes thereon properly incurred by the Lender in connection with: 

  

	(a)	any variation of, or supplement to, this Agreement, the Master Agreement and the other Finance Documents (or any of them); and/or 

  

	(b)	any consent or waiver required from the Lender in relation to this Agreement, the Master Agreement and any other Finance Document, and in each case, regardless of whether the same
is actually implemented, completed or granted. 

  

	20.4	Stamp and other duties. The Borrower shall pay promptly all stamp, documentary and other like duties and Taxes to which this Agreement, the Master Agreement and the other
Finance Documents may be subject or give rise and shall indemnify the Lender on demand against any and all liabilities with respect to, or resulting from, any delay or omission on the part of the Borrower to pay any such duties or Taxes.

  

 43 

	21	INDEMNITIES 

  

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

  

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

  

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

 

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

  

	(d)	the occurrence and/or continuance of an Event of Default and/or the acceleration of repayment of the Facility under Clause 19; 

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

	21.2	Breakage costs. Without limiting its generality, Clause 21.1 covers any claim, expense, liability or loss, including a loss of a prospective profit, or an amount equal to the
Margin in the circumstances envisaged in Clause 21.1(b), incurred or suffered by the Lender: 

  

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

  

	(b)	in terminating, or otherwise in connection with, the Master Agreement and any interest and/or currency swap or any other transaction entered into (whether with another legal entity
or with another office or department of the Lender) to hedge any exposure arising under this Agreement or a number of transactions of which this Agreement is one Provided that the Lender shall take all reasonable steps to minimise losses
arising under this paragraph (b). 

  

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

  

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

  

	(b)	any other Pertinent Matter; 

 other than claims, expenses,
liabilities and losses which are shown to have been directly and mainly caused by the dishonesty or wilful misconduct of the officers or employees of the Lender. 
  

	21.4	ISM Code and indemnity. Without prejudice to the generality of Clause 21.3, the indemnities referred to in Clause 21.3 cover any claims, expenses, liabilities and losses
which arise, or are asserted, under or in connection with any law relating to safety at sea or the ISM Code. 

  

 44 

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

  

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

 

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

  

	(c)	enforcing any such order or judgment; 

 the Borrower shall
indemnify the Lender against the loss arising when the amount of the payment actually received by the Lender is converted at the available rate of exchange into the Contractual Currency. 
 In this Clause 21.5, the “available rate of exchange” means the rate at which the Lender is able at the opening of business (London time)
on the Business Day after it receives the sum concerned to purchase the Contractual Currency with the Payment Currency. 
 This Clause 21.5
creates a separate liability of the Borrower which is distinct from its other liabilities under the Finance Documents and which shall not be merged in any judgment or order relating to those other liabilities. 
  

	21.6	Environmental indemnity. The Borrower shall indemnify the Lender on demand against all costs, expenses, liabilities and losses sustained or incurred as a result of or in
connection with, Environmental Claims being made against the Lender or otherwise howsoever arising out of any Environmental Incident 

  

	21.7	Receiving Bank. The Borrower shall indemnify the Lender on demand against all costs and expenses paid or incurred by the Lender arising out of the role of any Receiving Bank
in relation to the Facility. 

  

	21.8	Certification of amounts. A notice which is signed by 2 officers of the Lender, which states that a specified amount, or aggregate amount, is due to the Lender under this
Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the matters in respect of which the amount, or aggregate amount, is due shall be prima facie evidence that the amount, or aggregate amount, is due.

  

	22	NO SET-OFF OR TAX DEDUCTION 

  

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

  

	(a)	without any form of set-off, cross-claim or condition (including but not limited to, any set-off, compensation, cross claim or condition arising under, or in relation to, or in
connection with, the Master Agreement); and 

  

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

  

	22.2	Grossing-up for Taxes. If the Borrower is required by law to make a Tax deduction from any payment: 

  

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

  

 45 

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

  

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

  

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

  

	22.4	Exclusion of Tax on overall net income. In this Clause 21.6 “Tax deduction” means any deduction or withholding for or on account of any present or future tax
except tax on the Lender’s overall net income. 

  

	22.5	Tax credit. If the Lender receives for its own account a repayment or credit in respect of tax on account of which the Borrower has made an increased payment under Clause
22.2, the Lender shall pay to the Borrower a sum equal to the repayment or credit received, Provided always that: 

  

	(a)	the Lender shall not be obliged to allocate to this transaction any part of a tax repayment or credit which is referable to a class or number of transactions;

  

	(b)	nothing in this Clause 22.5 shall oblige the Lender to arrange its tax affairs in any particular manner to claim any type of relief, credit, allowance or deduction instead of, or in
priority to, another or to make any such claim within a particular time; 

  

	(c)	nothing in this Clause 22.5 shall oblige the Lender to make a payment which would leave it in a worse position than it would have been in if the Borrower had not been required to
make a tax deduction from a payment; and 

  

	(d)	any allocation or determination made by the Lender under or in connection with this Clause 22.5 shall be conclusive and binding on the Borrower. 

  

	23	ILLEGALITY, ETC 

  

	23.1	Illegality. This Clause 23 applies if the Lender notifies the Borrower that it has become, or will with effect from a specified date, become: 

  

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

  

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

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

	23.2	Notification and effect of illegality. On the Lender notifying the Borrower under Clause 23.1, the Commitment shall terminate; and thereupon or, if later, on the date
specified in the Lender’s notice under Clause 23.1 as the date on which the notified event would become effective the Borrower shall prepay the Facility in full in accordance with Clause 7. 

  

 46 

	23.3	Mitigation. If circumstances arise which would result in a notification under Clause 23.1 then, without in any way limiting the rights of the Lender under Clause 23.1, the
Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement and the Finance Documents to another office or financial institution not affected by the circumstances but the Lender shall not be under
any obligation to take any such action if, in its opinion, to do would or might: 

  

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

  

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

  

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

  

	24	INCREASED COSTS 

  

	24.1	Increased costs. This Clause 24 applies if the Lender notifies the Borrower that it considers that as a result of: 

  

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

  

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

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

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

  

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

  

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

  

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

  

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

 but not: 
  

	 	(i)	an item attributable to a change in the rate of Tax on the overall net income of the Lender (or a parent company of it); or 

  

	 	(ii)	an item covered by the Mandatory Cost Rate; or 

  

	 	(iii)	 an item covered by the indemnity for Tax in Clause 21.1; or 

  

 47 

	 	(iv)	an item covered by the grossing-up provisions in Clause 22.2; or 

  

	 	(v)	an item arising directly out of the implementation by the applicable authorities having jurisdiction over the Lender of matters set out in the statement of the Basle Committee on
Banking Regulations and Supervisory Practices dated July, 1988 and entitled “International Convergence of Capital Measurement and Capital Standards” to the extent and according to the timetable provided for in the statement.

 For the purposes of this Clause 24.2, the Lender may in good faith allocate or spread costs and/or losses among its assets
and liabilities (or any class of its assets and liabilities) on such basis as it considers appropriate. 
  

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

  

	24.4	Notice of prepayment. If the Borrower is not willing to continue to compensate the Lender for the increased cost under Clause 24.3, the Borrower may give the Lender not less
than 14 days’ notice of its intention to prepay the Facility at the end of an Interest Period. 

  

	24.5	Prepayment; termination of Commitment. A notice under Clause 24.4 shall be irrevocable; and on the date specified in its notice of intended prepayment, the Commitment shall
terminate and the Borrower shall prepay (without premium or penalty) the Facility, together with accrued interest thereon at the applicable rate plus the Mandatory Cost Rate plus the Margin. 

  

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

  

	25	SET-OFF 

  

	25.1	Application of credit balances. The Lender may without prior notice: 

  

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

  

	(b)	for that purpose: 

  

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

  

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

  

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

  

	25.2	Set-off between this Agreement and the Master Agreement. If the Borrower is the defaulting party under the Master Agreement, the Lender, as the non-defaulting party, may
(without prejudice to or limitation of its right of set-off under section 6(e) of the Master Agreement and its rights under Clause 25.1) at the same time as, or at any time after, the Borrower’s default, set-off any amount due from the Borrower
to the Lender under this Agreement against any amount due from the Lender to the Borrower under the Master Agreement and apply the first amount in discharging the second amount. The effect of any set-off under this Clause 25.2 shall be effective to
extinguish or, as the case may require, reduce the liabilities of the Lender under the Master Agreement. 

  

 48 

	25.3	Existing rights unaffected. The Lender shall not be obliged to exercise any of its rights under Clause 25.1; and those rights shall be without prejudice and in addition to
any right of set-off, combination of accounts, charge, lien or other right or remedy to which the Lender is entitled (whether under the general law or any document). 

  

	25.4	No Security Interest. This Clause 25 gives the Lender a contractual right of set-off only, and does not create any equitable charge or other Security Interest over any
credit balance of the Borrower. 

  

	26	ASSIGNMENTS, TRANSFERS AND CHANGES IN LENDING OFFICE 

  

	26.1	Successors etc. This Agreement shall be binding upon and inure to the benefit of the Lender and the Borrower and their respective successors and permitted assigns.

  

	26.2	Transfer by Borrower. The Borrower may not, without the consent of the Lender, transfer any of its rights, liabilities or obligations under any Finance Document.

  

	26.3	Assignment etc. by Lender. The Lender may, with the prior consent of the Borrower, such consent not be unreasonably withheld, assign or transfer all or any of the rights
and/or obligations and interests which it has under, or by virtue of, the Finance Documents or change its lending office. The Lender shall notify the Borrower promptly following any such assignment, transfer or change in lending office.

  

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

  

	26.5	Sub-participation; subrogation assignment. The Lender may, with the prior consent of the Borrower, such consent not to be unreasonably withheld, sub-participate all or any
part of its rights and/or obligations under, or in connection with, the Finance Documents; and the Lender may assign, in any manner and on terms agreed by it, all or any part of those rights to an insurer or surety which has become subrogated to
them. 

  

	26.6	Disclosure of information. The Lender may not disclose to a potential assignee, transferee or sub-participant or any other person who may otherwise enter into contractual
relations with the Lender in relation to this Agreement or any other Finance Document any information which the Lender has received in relation to the Borrower and its related entities or their respective affairs without the consent of the Borrower,
such consent not to be unreasonably withheld or delayed Provided that no such consent shall be required if an Event of Default has occurred. 

  

	27	VARIATIONS AND WAIVERS 

  

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

  

	27.2	Exclusion of other or implied variations. Except for a document which satisfies the requirements of Clauses 27.1, no document, and no act, course of conduct, failure or
neglect to act, delay or acquiescence on the part of the Lender (or any person acting on its behalf) shall result in the Lender (or any person acting on its behalf) being taken to have varied, waived, suspended or limited, or being precluded
(permanently or temporarily) from enforcing, relying on or exercising: 

  

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

  

 49 

	 	(b)	an Event of Default; or 

  

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

  

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

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

	28	NOTICES 

  

	28.1	General. Unless otherwise specifically provided, any notice under or in connection with any Finance Document shall be given by letter, fax or, subject to that set out below,
telex; and references in the Finance Documents to written notices, notices in writing and notices signed by particular persons shall be construed accordingly, provided that the Borrower may not send notices or other communications by telex to the
Lender but the Lender reserves right to send notices or other communications by telex to the Borrower. 

  

	28.2	Addresses for communications. A notice shall be sent: 

  

							
	(a)	 	to the Borrower:	  	Pendelis 16
		 		  	175 64 Palaio Faliro
		 		  	Athens
		 		  	Greece
				
		 		  	Telex No:	  	214605 BELL GR
		 		  	Fax No:	  	+302 10 942 4975
		 		  	Attention:	  	Mr S P Palios
			
	(b)	 	to the Lender:	  	Shipping Business Centre
		 		  	5-10 Great Tower Street
		 		  	London EC3P 3HX
				
		 		  	Fax No:	  	+44 20 7615 0119

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

	28.3	Effective date of notices. Subject to Clauses 28.4 and 28.5: 

  

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

  

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

  

	28.4	Service outside business hours. However, if under Clause 28.3 a notice would be deemed to be served: 

  

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

  

	(b)	on such a business day, but after 5 p.m. local time; the notice shall (subject to Clause 28.5) be deemed to be served, and shall take effect, at 9 a.m. on the next day which
is such a business day. 

  

 50 

	28.5	Illegible notices. Clauses 28.3 and 28.4 do not apply if the recipient of a notice notifies the sender within 1 hour after the time at which the notice would otherwise be
deemed to be served that the notice has been received in a form which is illegible in a material respect. 

  

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

  

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

  

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

  

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

  

	28.8	Meaning of “notice”. In this Clause 28, “notice” includes any demand, consent, authorisation, approval, instruction, waiver or other communication.

  

	29	SUPPLEMENTAL 

  

	29.1	Time. Time shall be of the essence in this Agreement as regards compliance by the Borrower of its obligations under this Agreement. 

  

	29.2	Delay. No delay or omission on the part of the Lender in exercising any right, power or remedy under this Agreement shall impair such right, power or remedy or be construed
as a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy. 

  

	29.3	Rights cumulative, non-exclusive. The rights, powers and remedies herein provided are cumulative and not exclusive of any rights, powers and remedies provided by law and may
be exercised from time to time and as often as the Lender deems expedient. 

  

	29.4	Waiver. Any waiver by the Lender of any provision of this Agreement or any consent or approval given by the Lender under this Agreement shall only be effective if given in
writing and then only for the purpose and upon the terms for which it is given. 

  

	29.5	Partial invalidity. If at any time any one or more of the provisions of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law or
regulation, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be in any way affected or impaired thereby. 

  

	29.6	Duration of obligations. The obligations of the Borrower under this Agreement shall remain in full force and effect until the Lender shall have received all amounts due or to
become due to it under this Agreement and under the other Finance Documents in accordance with this Agreement and of the other Finance Documents. Without prejudice to the foregoing, the obligations of the Borrower under Clauses 6, 22, 24 and 25
shall survive the repayment of the Facility. 

  

 51 

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

  

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

  

	29.9	Certificates. A certificate or determination of the Lender as to any matter provided for in this Agreement or any other Finance Document shall, in the absence of manifest
error, be conclusive and binding on the Borrower. 

  

	30	GOVERNING LAW AND JURISDICTION 

  

	30.1	English law. This Agreement shall be governed by, and construed in accordance with, English law. 

  

	30.2	Exclusive English jurisdiction. Subject to Clause 30.3, the courts of England shall have exclusive jurisdiction to settle any disputes which may arise out of or in connection
with this Agreement. 

  

	30.3	Choice of forum for the exclusive benefit of the Lender. Clause 30.2 is for the exclusive benefit of the Lender, which reserves the rights: 

  

	(a)	to commence proceedings in relation to any matter which arises out of or in connection with this Agreement in the courts of any country other than England and which have or claim
jurisdiction to that matter; and 

  

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

 The Borrower shall not commence any proceedings in any country other than England in relation to a matter which arises out of
or in connection with this Agreement. 
  

	30.4	Process agent. The Borrower irrevocably appoints C&C Legal Services Limited at its registered office for the time being, presently at 20 Upper Ground, Sea Containers
House, Blackfriars Bridge, London SE1 9QT, to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with this Agreement. 

  

	30.5	Lender’s rights unaffected. Nothing in this Clause 30 shall exclude or limit any right which the Lender may have (whether under the law of any country, an international
convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction. 

  

	30.6	Meaning of “proceedings”. In this Clause 30, “proceedings” means proceedings of any kind, including an application for a provisional or protective
measure. 

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

 52 

 SCHEDULE 1 
 DRAWDOWN NOTICE 
  

	To:	The Royal Bank of Scotland plc 

 5-10 Great Tower Street

 London 
 EC3P 3HX 

Attention: The Shipping Business Centre 
 [—] 
 DRAWDOWN NOTICE 
  

	1	We refer to the facility agreement (the “Facility Agreement”) dated as of 18 February 2005 and made between ourselves, as Borrower, and yourselves, as Lender,
in connection with a revolving credit facility of up to US$300,000,000. Terms defined in the Facility Agreement have their defined meanings when used in this Drawdown Notice. 

  

	2	We request to borrow [a Working Capital], [the Approved Manager], [a New Ship] Advance as follows:- 

  

	(a)	Amount: US$[—]; 

  

	(b)	Drawdown Date: [—]; 

  

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

  

	(d)	Payment instructions: account in our name and numbered [—] with [—] of [—
]. 

  

	3	We represent and warrant that: 

  

	(a)	the representations and warranties in Clause 10 of the Facility Agreement would remain true and not misleading if repeated on the date of this notice with reference to the
circumstances now existing; 

  

	(b)	no Event of Default or Potential Event of Default has occurred or will result from the borrowing of the Facility. 

  

	4	This notice cannot be revoked without the prior consent of the Lender. 

  

 
 Director 
 for and on behalf of 
 DIANA SHIPPING INC.

  

 53 

 SCHEDULE 2 
 CONDITION PRECEDENT DOCUMENTS 
 PART A 
 The following are the documents referred to in Clause 9.1 (a) required before service of the first Drawdown Notice. 
  

	1	A duly executed original of this Agreement, the Master Agreement and all the Finance Documents (other than the Mortgages and the General Assignments and of each document
required to be delivered by each such Finance Document). 

  

	2	Copies of the certificate of incorporation and constitutional documents (or equivalent documents) and all amendments thereto of the Borrower and each Security Party and any
other documents required to be filed or registered or issued under the laws of the country of its incorporation to establish its incorporation and/or good standing. 

  

	3	Copies of resolutions passed at a meeting of the board of directors and shareholders of the Borrower and each Security Party authorising the execution of each of the Finance
Documents to which the Borrower or that Security Party is a party and, in the case of the Borrower, authorising named officers or attorneys to give the Drawdown Notice and other notices under this Agreement or other evidence of such approvals and
authorisations as shall be acceptable to the Lender. 

  

	4	The original of any power of attorney under which any Finance Document is executed on behalf of the Borrower or a Security Party. 

  

	5	A list specifying the directors and officers of the Borrower and each Security Party (together with specimen signatures) and specifying the authorised and issued share
capital of the Borrower and each Security Party. 

  

	6	Copies of all consents which the Borrower or any Security Party requires to enter into, perform or make any payment under, any Finance Document. 

  

	7	The originals of any mandates or other documents required by the Lender in connection with the opening or operation of the Operating Account. 

  

	8	A valuation of each of the Existing Ships, including m.v.s “CALIPSO”, “CLIO” and “PANTELIS SP” (more particularly described in Schedule 3),
addressed to the Lender, stated to be for the purposes of this Agreement and dated not earlier than 30 days before the first Drawdown Date. 

  

	9	Evidence satisfactory to the Lender, in its sole and absolute opinion, that the Borrower has successfully completed the IPO and that: 

  

	(a)	such IPO has generated net proceeds (excluding costs and expenses) of not less than $110,000,000; and 

  

	(b)	the new equity raised pursuant to the IPO is non-convertible (unless the Lender has otherwise consented in writing). 

  

	10	Evidence satisfactory to the Lender, in its sole and absolute opinion, that after completion of the IPO referred to in paragraph 9 above, at least 20 per cent, of the
issued share capital of the Borrower is vested in the ownership of members of the Palios and Margaronis families and, other than in the case of ownership of members of the Palios and Margaronis families as aforesaid, no one person (or associated (in
the sole opinion of the Lender) persons) holds more than 20 per cent of the Borrower’s issued share capital. 

  

 54 

	11	A duly signed compliance certificate in the form set out in Schedule 6 confirming that the Borrower is in compliance with the financial covenants set out in Clause 12.4.

  

	12	If so required by the Lender, a survey report addressed to the Lender, stated to be for the purposes of this Agreement and dated not earlier than 30 days before the first
Drawdown Date from an independent marine surveyor selected by the Lender in respect of the physical condition of each Existing Ship. 

  

	13	Documentary evidence that the agent for service of process named in Clause 29.1 has accepted its appointment. 

  

	14	Such documents and evidence as the Lender shall require, based on applicable law and regulations and the Lender’s own internal guidelines, relating to the Lender’s
knowledge of its customers. 

  

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

  

 55 

 PART B 
 The following are the documents referred to in Clause 9.1(b) required on or before the first Drawdown Date. 
 In Part B of Schedule 3, the
following definitions shall have the following meanings: 
 “Relevant Owner” means the member of the Group which is the
registered owner of the Relevant Ship; and 
 “Relevant Ship” means each and every Existing Ship which is owned by the
Relevant Owner as at the first Drawdown Date. 
  

	1	A duly executed original of the Guarantee, the Mortgage and the General Assignment relative to the Relevant Ship and of each document to be delivered pursuant to each such
Finance Document. 

  

	2	Documentary evidence that: 

  

	(a)	the Relevant Ship is registered in the ownership of the Relevant Owner under an Approved Flag; 

  

	(b)	the Relevant Ship is in the absolute and unencumbered ownership of the Relevant Owner save as contemplated by the Finance Documents relative thereto; 

  

	(c)	the Relevant Ship maintains the highest classification available to ships of the same type, specification and age of such Ship with a classification society which is a member of the
International Association of Classification Societies free of all overdue recommendations and conditions of such Classification Society affecting class; 

  

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

  

	(e)	the Mortgage relating to the Relevant Ship has been duly registered or recorded against the Relevant Ship as a valid first priority or preferred ship mortgage in accordance with the
laws of the relevant Approved Flag State. 

  

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

  

	(a)	a letter of undertaking executed by the Approved Manager in favour of the Lender in the terms required by the Lender agreeing certain matters in relation to the management of the
Relevant Ship and subordinating the rights of the Approved Manager against the Relevant Ship and the Relevant Owner to the rights of the Lender under the Finance Documents; and 

  

	(b)	copies of the Document of Compliance and Safety Management Certificate issued pursuant to the ISM Code in respect of the Relevant Ship. 

  

	4	At the cost of the Borrower a favourable opinion from an independent insurance consultant acceptable to the Lender on such matters relating to the insurances for the Relevant Ship
as the Lender may require. 

  

	5	Favourable legal opinions from lawyers appointed by the Lender on such matters concerning the laws of the Marshall Islands, any relevant Approved Flag State relating to the Relevant
Ship such other relevant jurisdictions as the Lender may required. 

  

 56 

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

  

 57 

 PART C 
 The following are the documents referred to in Clause 9.1(c) required before the Drawdown Date of each New Ship Advance. 
 In this Part C of
Schedule 3, the following definitions shall have the following meanings: 
 “Relevant Advance” means, in relation to each New
Ship or New Company, the New Ship Advance which shall be used to part-finance the acquisition of such New Ship or New Company; 
 “Relevant Owner” means the member of the Group or New Company which is the buyer of the Relevant Ship; and 
 “Relevant Ship” means, in relation to each New Ship Advance, the New Ship which is to be financed by such New Ship Advance or any vessel to be acquired as part of the purchase of a New Company. 
 The following documents apply where the Borrower nominates the New Ship as a Collateral Ship for the purposes of this Agreement pursuant to Clause 3.4(b): 
  

	1	Copies of resolutions of the shareholders and directors of the Relevant Owner authorising the execution of each of the Finance Documents to which such Relevant Owner is a party
(unless already supplied to the Lender under this Agreement). 

  

	2	The original of any power of attorney under which any Finance Document is executed on behalf of the Relevant Owner. 

  

	3	Copies of all consents which the Relevant Owner requires to enter into, or make any payment under, any Finance Document to which it is a party. 

  

	4	The written confirmation of the Lender that the Relevant Ship and/or the New Company, as the case may be, has been approved by the Lender as a Collateral Ship for the
purposes of this Agreement. 

  

	5	A duly executed original of the Guarantee of the Relevant Owner and of the Mortgage and the General Assignment relative to the Relevant Ship and of each document to be delivered
pursuant to each such Finance Document. 

  

	6	Documentary evidence that: 

  

	(a)	the Relevant Ship has been unconditionally delivered to, and accepted by, the Relevant Owner and the full purchase price payable the seller of the Relevant Ship (in addition to the
part to be financed by the Relevant Advance) has been duly paid; 

  

	(b)	the part of the purchase price of the Relevant Ship which has not been funded out of the proceeds of the Relevant Advance and which has been borrowed by the Relevant Owner or the
Borrower is subordinated to the obligations of the Relevant Owner or Borrower to the Lender under the Finance Documents in terms satisfactory to the Lender in its absolute discretion. 

  

	(c)	the Relevant Ship is registered in the ownership of the Relevant Owner under an Approved Flag; 

  

	(d)	the Relevant Ship is in the absolute and unencumbered ownership of the Relevant Owner save as contemplated by the Finance Documents; 

  

 58 

	(e)	the Relevant Ship maintains the highest classification available for ships of the same type, specification and age as such Ship with a classification society which is a member of
the International Association of Classification Societies free of all overdue recommendations and conditions of such classification society affecting class; 

  

	(f)	the Mortgage relating to the Relevant Ship has been duly registered or recorded against the Relevant Ship as a valid first priority ship mortgage in accordance with the laws of the
relevant Approved Flag State; and 

  

	(g)	the Relevant Ship is insured in accordance with the provisions of this Agreement and all requirements therein in respect of Insurances have been complied with.

  

	7	Documents establishing that the Relevant Ship will, as from the Drawdown Date relative to the Relevant Advance, be managed by the Approved Manager on terms acceptable to the
Lenders, together with: 

  

	(a)	a letter of undertaking executed by the Approved Manager in favour of the Lender in the terms required by the Lender agreeing certain matters in relation to the management of the
Relevant Ship and subordinating the rights of the Approved Manager against the Relevant Ship and the Relevant Owner to the rights of the Lender under the Finance Documents; and 

  

	(b)	copies of the document of compliance (DOC) and safety management certificate (SMC) issued pursuant to the ISM Code in respect of the Relevant Ship. 

  

	8	A valuation (at the expense of the Borrower) of each Ship which is the subject of a Mortgage (including, for these purposes, the Relevant Ship), addressed to the Lender, stated to
be for the purposes of this Agreement and dated not earlier than 14 days before the Drawdown Date relative to the Relevant Advance, from one or more Approved Brokers and determined in the manner set out in Clauses 15.5 and 15.6 which shows an
aggregate market value of the Ships which are the subject of a Mortgage in an amount which does not breach the ratio set out in Clause 15.2. 

  

	9	If required by the Lender, a satisfactory (in the absolute opinion of the Lenders) survey report (at the cost of the Borrower) in respect of the Relevant Ship, addressed to the
Lender, stated to be for the purposes of this Agreement and dated not earlier than 30 days before the Drawdown Date relative to the Relevant Advance, from an independent marine surveyor selected by the Lender who shall have conducted a physical
inspection of the Relevant Ship. 

  

	10	Such documents and evidence as the Lender shall require in relation to each Relevant Owner based on applicable laws and regulations and the Lender’s own internal
guidelines, relating to the Lender’s knowledge of its customer. 

  

	11	Documentary evidence that any agent for service of process covered in the Guarantee given by the Relevant Owner, the Mortgage and General Assignment in respect of the Relevant Ship
has accepted its appointment for the purpose of the relevant Finance Document. 

  

	12	At the cost of the Borrower, a favourable opinion from an independent insurance consultant acceptable to the Lender on such matters relating to the insurances for the
Relevant Ship as the Lender may require. 

  

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

  

 59 

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

 The following documents apply where the Borrower does not nominate the New Ship as a Collateral Ship for the purposes of this Agreement
pursuant to Clause 3.4(b): 
  

	15	Written confirmation of the Lender that the Relevant Ship and/or New Company, as the case may be, which is the subject of the Relevant Advance has been approved by the Lender as a
New Ship or a New Company for the purposes of this Agreement. 

  

	16	A satisfactory, in the opinion of the Lender, valuation (at the expense of the Borrower) of the Ships, addressed to the Lender, stated to be for the purposes of this Agreement and
dated not earlier than 30 days before the Drawdown Date relative to the Relevant Advance, from an Approved Broker. 

  

	17	Such documents and evidence as the Lender shall require in relation to each Unencumbered Owner based on applicable laws and regulations and the Lender’s own internal
guidelines, relating to the Lender’s knowledge of its customer. 

  

 60 

 SCHEDULE 3 
 THE EXISTING SHIPS 
  

											
	 Vessel Name
	  	 Owner
	  	 Vessel Type
	  	 Flag
	  	 Dead Weight Tonnage
	  	 Year Built

	“OCEANIS”	  	 Panama
 Compania Armadora
 S.A.
	  	Bulk carrier	  	Bahamas	  	75,211	  	2001
						
	“ALCYON”	  	 Buenos Aires
 Compania Armadora
 S.A.
	  	Bulk carrier	  	Bahamas	  	75,247	  	2001
						
	“NIREFS”	  	 Skyvan
 Shipping Company S.A.
	  	Bulk carrier	  	Bahamas	  	75,311	  	2001
						
	“TRITON”	  	 Husky
 Trading S.A.
	  	Bulk carrier	  	Bahamas	  	75,336	  	2001
						
	“DIONE”	  	 Chorrera
 Compania Armadora
 S.A.
	  	Bulk carrier	  	Greece	  	75,172	  	2001
						
	“DANAE”	  	 Eaton Marine
 S.A.
	  	Bulk carrier	  	Greece	  	75,106	  	2001
						
	“PROTEFS”	  	 Cypres
 Enterprises Corp.
	  	Bulk carrier	  	Bahamas	  	73,700	  	2004
						
	“CALIPSO”	  	 Darien
 Compania Armadora
 S.A.
	  	Bulk carrier	  	Bahamas	  	73,700	  	2005
						
	“CLIO”	  	 Texford
 Maritime S.A.
	  	Bulk carrier	  	Bahamas	  	73,700	  	2005
						
	“PANTELIS
SP”	  	 Cerada
 International S.A.
	  	Bulk carrier	  	Bahamas	  	169,883	  	1999
						
	“ERATO”	  	 Urbina Bay
 Trading S.A.
	  	Bulk Carrier	  	Bahamas	  	74,444	  	2004
						
	“THETIS”	  	 Changame Compania Armadora
 S.A.
	  	Bulk Carrier	  	Bahamas	  	73,583	  	2004

  

 61 

 SCHEDULE 4 
 MANDATORY COST FORMULA 
 The Mandatory Cost Rate will be calculated in accordance with the following formula:

  

					
		 	 F x 0.01
	  	
		 	 300
	  	

 where on the day(s) of application of the formula: 
  

	F.	is the rate of charge payable by the Lender to the Financial Services Authority pursuant to paragraph 2 of the Fees Regulations (but where for this purpose, the figure at paragraph
2.02b/2.03b shall be deemed to be zero) and expressed in pounds per £1 million of the Fee Base of the Lender. 

 For the purposes of
this Schedule: 
 Fee Base has the meaning ascribed to it for the purposes of, and all be calculated in accordance with, the Fees Regulations. 
 Fees Regulations means, as appropriate, either the Banking Supervision (Fees) Regulations 2000 or such regulations as from time to time may be in force, relating to the
payment of fees for banking supervision in respect of periods subsequent to 31 March 2001. 
 Any reference to a provision of any statute, directive,
order or regulation herein is a reference to that provision as amended or re-enacted from time to time. 
 If alternative or additional financial
requirements are imposed which in the Lender’s opinion make the formula set out above no longer appropriate, the Lender shall be entitled to stipulate such other formula as shall be suitable to apply in substitution for the formula set out
above. 
  

 62 

 SCHEDULE 5 
 LENDER COMMITMENT 
  

					
	 REPAYMENT DATE
 (Number of months after the Availability Date)
	  	COMMITMENT
REDUCTION
(US$)	  	COMMITMENT
(US$)
	 0
	  		  	300,000,000
	 72
	  	15,000,000	  	285,000,000
	 78
	  	15,000,000	  	270,000,000
	 84
	  	15,000,000	  	255,000,000
	 90
	  	15,000,000	  	240,000,000
	 96
	  	15,000,000	  	225,000,000
	 102
	  	15,000,000	  	210,000,000
	 108
	  	15,000,000	  	195,000,000
	 114
	  	15,000,000	  	180,000,000
	 120
	  	180,000,000	  	0

  

 63 

 SCHEDULE 6 
 FORM OF COMPLIANCE CERTIFICATE 
  

	To:	The Royal Bank of Scotland plc 

 Shipping Business Centre

 5-10 Great Tower Street 
 London 
 EC3P 3HX 
 [—] 
 Dear Sirs 
 Facility Agreement dated as of 18 February 2005 (the “Facility Agreement”) made between (i) Diana Shipping Inc. as borrower (the “Borrower”) and (ii) The Royal Bank of Scotland
plc as lender (the “Lender”) in connection with a revolving credit facility of up to US$300,000,000. 
 We refer to the Facility Agreement.
Terms defined in the Facility Agreement have their defined meanings when used in this Compliance Certificate. 
 We also refer to the financial covenants set
out in clause 12 of the Facility Agreement. 
 We confirm that, as at the date of this Compliance Certificate, we are in compliance with the following
covenants: 
  

	(a)	Clause 12.4(a); Adjusted Net Worth is not less than US$150,000,000; and 

  

	(b)	Clause 12.4(b); Adjusted Net Worth exceeds 25 per cent, of Total Assets; 

  

	(c)	Clause 12.4(c); Liquid Funds are not less than US$400,000 for each of the Existing Ships and each of the New Ships; and 

  

	(d)	Clause 12.3(a); no dividends have been declared or paid since [the date of the previous Compliance Certificate] [the date of the Facility Agreement] which would result in the breach
of any of the above financial covenants [save as expressly agreed by the Lender in writing]. 

 To evidence such compliance, we attach a copy
of the latest [annual audited][quarterly unaudited] accounts of the Borrower together with calculations setting out in reasonable detail the data and calculations resulting therefrom which we have used to support the confirmations made above.

 No Event of Default or Potential Event of Default has occurred in relation to the Borrower or the Owner. 
  

	
	 Signed

	
	  

	 Chief Financial Officer
 for and on behalf
of

	DIANA SHIPPING INC.

  

 64 

 EXECUTION PAGE 
  

					
	BORROWER	  		  	
			
	 SIGNED by
	  	)	  	

	

	  	)	  
	 for and on behalf of
	  	)	  
	DIANA SHIPPING INC.	  	)	  
	 in the presence of:
	  	)	  
		  	

			
	LENDER	  		  	
			
	 SIGNED by
	  	)	  	

	

	  	)	  
	 for and on behalf of
	  	)	  
	THE ROYAL BANK OF	  	)	  
	SCOTLAND PLC	  	)	  
	 in the presence of:
	  	)	  
		  	

  

 65

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