Document:

Exhibit 4.9

  

   

    

  
    Private & confidential

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Dated: 22nd November, 2019

    ALPHA BANK A.E.

    (as lender)

    - and -

    PIKACHU SHIPPING CO. and

    SPETSES SHIPPING CO.

    (as joint and several borrowers)

    	 
	
             

            

            LOAN AGREEMENT

            for a secured floating interest rate loan facility of up to US$11,000,000

             

            

          

    

    

    

    

    

    

    

    

    

    

    

    Theo V. Sioufas & Co.

    Law Offices

    Piraeus

    

    

    
      
        

    

    TABLE OF CONTENTS

    	
            CLAUSE

          	
            HEADINGS

          	
            PAGE

          
	 	 	 
	
            1.

          	
            PURPOSE, DEFINITIONS AND INTERPRETATION

          	
            1

          
	 	 	 
	
            2.

          	
            THE LOAN

          	
            22

          
	 	 	 
	
            3.

          	
            INTEREST

          	
            23

          
	 	 	 
	
            4.

          	
            REPAYMENT - PREPAYMENT

          	
            28

          
	 	 	 
	
            5.

          	
            PAYMENTS, TAXES AND COMPUTATION

          	
            31

          
	 	 	 
	
            6.

          	
            REPRESENTATIONS AND WARRANTIES

          	
            33

          
	 	 	 
	
            7.

          	
            CONDITIONS PRECEDENT

          	
            39

          
	 	 	 
	
            8.

          	
            COVENANTS

          	
            44

          
	 	 	 
	
            9.

          	
            EVENTS OF DEFAULT

          	
            56

          
	 	 	 
	
            10.

          	
            INDEMNITIES - EXPENSES - FEES

          	
            61

          
	 	 	 
	
            11.

          	
            SECURITY, APPLICATION, SET-OFF

          	
            67

          
	 	 	 
	
            12.

          	
            UNLAWFULNESS, INCREASED COST, BAIL-IN

          	
            70

          
	 	 	 
	
            13.

          	
            OPERATING ACCOUNTS

          	
            72

          
	 	 	 
	
            14.

          	
            ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE

          	
            74

          
	 	 	 
	
            15.

          	
            MISCELLANEOUS

          	
            77

          
	 	 	 
	
            16.

          	
            JOINT AND SEVERAL LIABILITY OF THE BORROWERS

          	
            80

          
	 	 	 
	
            17.

          	
            NOTICES AND COMMUNICATIONS

          	
            82

          
	 	 	 
	
            18.

          	
            LAW AND JURISDICTION

          	
            84

          
	 	 	 

    

    

    SCHEDULES

    
      
        	1.	
                Form of Drawdown Notice

              

      

    

    
      
        	2.	
                Form of Insurance Letter

              

      

    

    

    

    
      
        

    

    
    THIS AGREEMENT is dated the 22nd day of November, 2019 and made BETWEEN:

    	
            (1)

          	
            ALPHA BANK A.E., a banking société anonyme incorporated in and pursuant to the laws of the Hellenic Republic with its head office at 40 Stadiou Street, Athens, Greece,
              acting, except as otherwise herein provided, through its office at 93 Akti Miaouli, Piraeus, Greece, as lender (hereinafter called the “Lender”, which

              expression shall include its successors and assigns); and

             

          
	
            (2)

          	
            (a)

          	
            PIKACHU SHIPPING CO., a company duly incorporated in the Republic of the Marshall Islands having its
              registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (and includes its successors) (the “Pikachu Borrower”); and

             

          
	 	
            (b)

          	
            SPETSES SHIPPING CO., a company duly incorporated in the Republic of the Marshall Islands having its registered office at Trust
              Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (and includes its successors) (the “Spetses Borrower” and together with the Pikachu Borrower hereinafter called the “Borrowers”)

          

    

    

    AND IT IS HEREBY AGREED as follows:

    
      
        
          	1.	
                  PURPOSE, DEFINITIONS AND INTERPRETATION

                

          
            

        

      

    

    
      
        	1.1	
                Amount and Purpose

              

      

    

    
      
        	

              	(a)	
                Amount: This Agreement sets out the terms and conditions upon and subject to which it is agreed that the Lender will make available to the Borrowers, on a joint and several basis, by one (1) Advance a secured term loan facility
                  in the amount of up to the lesser of:

              

      

    

    
      
        
          	

                	(i)	
                  Dollars Eleven million ($11,000,000); and

                

        

      

    

    
      
        	

              	(ii)	
                55% of the aggregate Market Value of the Vessels as determined in accordance with Clause 8.5(b) (Valuation of Vessels) by valuation obtained maximum twenty (20) days prior to the Drawdown Date;

              

      

    

    
      
        	

              	(b)	
                Purpose: The Loan proceeds shall be used for the purpose of re-financing part of the acquisition cost of the Vessels.

              

      

    

    
      
        	1.2	
                Definitions

              

      

    

    Subject to Clause 1.3 (Interpretation) and
      Clause 1.4 (Construction of certain terms), in this Agreement (unless otherwise defined in the relevant Finance
      Document and unless the context otherwise requires) and the other Finance Documents each term or expression defined in the recital of the parties and in this Clause shall have the meaning given to it in the recital of the parties and in this Clause:

    “Accounts Pledge Agreement” means an agreement to be entered into between the
      Borrowers and the Lender for the creation of a pledge over the Operating Accounts in favour of the Lender, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

    “Advance” means each borrowing of a portion of the Commitment by the Borrowers or (as the context may require) the
      principal amount of such borrowing;

    
      1

      
        

    

    “Affiliate” means, in relation to any person, a subsidiary of that person or a parent company of that person or any
      other subsidiary of that parent company;

    “Alternative Rate” means a rate agreed between the Lender and the Borrowers on the basis of which (instead of LIBOR)
      the interest rate is determined pursuant to Clause 3.6 (Market disruption – Non Availability);

    “Approved Manager” means for the time being PAVIMAR S.A., a corporation lawfully incorporated and validly existing under the laws of the Republic of the Marshall Islands, and having an office established in Greece pursuant to the Greek laws 378/68, 27/75, 2234/94,
      3752/09 and 4150/13 (as amended and in force at the date hereof) at 25 F0inikos Street, Kifissia 145 64, Greece or any other person appointed by the Owner of the relevant Vessel with the consent of the Lender (such consent not to be unreasonably
      withheld), as the commercial manager and/or the technical manager of such Vessel, and includes its successors in title;

    “Approved Manager’s Undertaking” means a letter of undertaking and subordination to be executed by the Approved
      Manager, as manager of the relevant Vessel, in favour of the Lender, the Approved Manager’s Undertaking to be in form and substance as the Lender may approve or require, as the same may from time to time be
      amended and/or supplemented;

    “Approved Shipbrokers” means any of Clarksons (Hellas), Braemar, Golden Destiny and Allied Shipbroking or any other
      first class independent firm of internationally known shipbrokers, appointed by the Lender at its discretion and agreed by the Borrower, and includes their respective successors in title and “Approved

        Shipbroker” means any of them;

    “Article 55 BRRD” means Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of
      credit institutions and investment firms;

    “Assignable Charterparty” means in relation to a Vessel, any time or bareboat charterparty (irrespective of the
      duration of such bareboat charterparty), consecutive voyage charter or contract of affreightment or related document in respect of the employment of that Vessel having a duration (or capable of exceeding a duration) of more than 12 months and any
      guarantee of the obligations of the charterer under such charter in respect of that Vessel, whether now existing or hereinafter entered or to be entered into by the Owner thereof or any person, firm or company on its behalf and a charterer at a daily
      rate and on terms and conditions acceptable to the Lender (and shall include any addenda thereto);

    “Assignee” has the meaning ascribed thereto in Clause 14.3 (Assignment by Lenders);

    “Availability Period” means the period starting on the date hereof and ending on:

    
      
        	

              	(a)	
                the 20th day of February, 2020 or until such later date as the Lender may agree in writing; or

              

      

    

    
      
        	

              	(b)	
                such earlier date (if any): (i) on which the whole Commitment has been advanced by the Lender to the Borrowers, or (ii) on which the Commitment is reduced to zero pursuant to Clauses 3.6 (Market disruption – Non Availability), 9.2 (Consequences of Default –
                      Acceleration), 12.1 (Unlawfulness) or any other
                  Clause of this Agreement;

              

      

    

    “Bail-In Action” means the exercise of any Write-down and Conversion Powers;

    
      2

      
        

    

    “Bail-In Legislation” means:

    
      
        	

              	(a)	
                in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, the
                  relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

              

      

    

    
      
        	

              	(b)	
                in relation to any other state, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation;

              

      

    

    “Balloon Instalment” has the meaning given in Clause 4.1 (Repayment);

    “Banking Day” means any day on which banks and foreign exchange markets in New York, London, Athens and Piraeus and in
      each country or place in or at which an act is required to be done under this Agreement in accordance with the usual practice of the Lender, are open for the transaction of business of the nature contemplated in this Agreement;

    “Basel II Accord” means the ”International Convergence of Capital Measurement and
        Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement;

    “Basel II Approach” means either the Standardised Approach or the relevant Internal Ratings Based Approach (each as
      defined in the Basel II Accord) adopted by the Lender (or its holding company) for the purposes of implementing or complying with the Basel II Accord;

    “Basel II Regulation” means (a) any law or regulation implementing the Basel II Accord or (b) any Basel II Approach
      adopted by the Lender;

    “Basel III Accord” means:

    
      
        	

              	(a)	
                the agreements on capital requirements, leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical
                    capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;

              

      

    

    
      
        	

              	(b)	
                the rules for global systemically important banks contained in "Global systemically important banks: assessment methodology and the additional loss absorbency requirement – Rules text"
                  published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and

              

      

    

    
      
        
          	

                	(c)	
                  any further guidance or standards published by the Basel Committee on Banking Supervision relating to Basel III;

                

        

      

    

    “Basel III Regulation” means any law or regulation implementing the Basel III Accord save and to the extent that it
      re-enacts a Basel II Regulation;

    “Beneficial Shareholder(s)” means in respect of each of the Borrowers, the person or persons disclosed to the Lender
      as being the ultimate legal and beneficial owner or owners (either directly and/or through companies beneficially owned by such person or persons and/or trusts or foundations of which such person or persons are legal and beneficial

    
      3

      
        

    

    owners) of 100% of the shares in each of the Borrowers, and in the case of the Corporate Guarantor being the largest single ultimate beneficial shareholder and having at least a
      controlling interest of the Corporate Guarantor and the voting rights attaching to those shares and the legal ownership of those shares in each of the Borrowers and the Corporate Guarantor;

    “Borrowed Money” means Financial Indebtedness incurred in respect of (i) money borrowed or raised, (ii) any bond,
      note, loan stock, debenture or similar instrument, (iii) acceptance of documentary credit facilities, (iv) deferred payments for assets or services acquired, (v) rental payments under leases (whether in respect of land, machinery, equipment or
      otherwise) entered into primarily as a method of raising finance or of financing the acquisition of the asset leased, (vi) guarantees, bonds, stand-by letters of credit or other instruments issued in connection with the performance of contracts and
      (vii) guarantees or other assurances against financial loss in respect of Financial Indebtedness of any person falling within any of sub-paragraphs (i) to (vi) above;

    “Borrowers” means jointly and severally the Pikachu Borrower and the Spetses Borrower as specified at the beginning of
      this Agreement and “Borrower” means either of them as the context may require;

    “Break Costs” means all costs, losses, premiums or penalties incurred by the Lender in the circumstances contemplated
      by Clause 10.1 (Miscellaneous indemnities), or as a result of it receiving any prepayment of all or any part of the
      Loan (whether pursuant to Clause 4 (Repayment-Prepayment) or otherwise), or any other payment under or in relation to
      the Security Documents on a day other than the due date for payment of the sum in question, and includes (without limitation) any losses or costs incurred in liquidating or re-employing deposits from third parties acquired to effect or maintain the
      Loan;

    “Charterparty Assignment” means, in relation to a Vessel, an assignment of the rights of its Owner under any
      Assignable Charterparty and any guarantee of such Assignable Charterparty executed or to be executed by its Owner in favour of the Lender and the acknowledgement of notice of the assignment in respect of such Assignable Charterparty to be obtained
      (on best effort basis by its Owner) in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented and, “Charterparty Assignments”
      means all of them;

    “Classification” in relation to a Vessel means the classification referred to
      in the Mortgage registered thereon with the Classification Society or such other classification society as the Lender shall, at the request of the Borrowers, have agreed in writing, shall be treated as the Classification Society for the purposes of
      the Finance Documents;

    “Classification Society” means such classification society which is a member
      of IACS (other than the China Classification Society and the Russian Maritime Registry of Shipping) and which the Lender shall, at the request of the Borrowers, have agreed in writing  to be treated as the Classification Society for the purposes of
      the Finance Documents;

    “Commitment” means the amount which the Lender agreed to lend to the Borrowers under Clause 2.1 (Commitment to Lend) as reduced by any relevant term of this Agreement;

    “Commitment Letter” means the Commitment Letter dated 23rd October,
      2019 addressed by the Lender to the Borrowers and accepted by it on the same date, and shall include any amendments or addenda thereto;

    “Corporate Guarantee” means an irrevocable and unconditional guarantee given or, as the context may require, to be
      given by the Corporate Guarantor in form and substance

    
      4

      
        

    

    satisfactory to the Lender as security for the Outstanding Indebtedness and any and all other obligations of the Borrowers under this Agreement and the Security Documents, as the
      same may from time to time be amended and/or supplemented;

    “Corporate Guarantor” means Castor Maritime Inc., a corporation lawfully incorporated and validly existing under the laws of the Republic of the Marshall Islands, and/or any other person nominated by the Borrowers and acceptable to the Lender which may give a
      Corporate Guarantee, and includes its successors in title;

    “Default” means any Event of Default or any event which with the giving of notice or lapse of time or the satisfaction
      of any other condition (or any combination thereof) would constitute an Event of Default;

    “Default Rate” means that rate of interest per annum which is determined in accordance with the provisions of Clause
      3.4 (Default Interest);

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

    “Dollars” (and the sign “$”) means the lawful currency for the time being of
      the United States of America;

    “Drawdown Date” means the date, being a Banking Day, requested by the Borrowers for the Loan to be made available, or
      (as the context requires) the date on which the Loan is actually made available;

    “Drawdown Notice” means a notice substantially in the terms of Schedule 1 (Form
          of Drawdown Notice) (or in any other form which the Lender approves);

    “Earnings” in relation to a Vessel means all moneys whatsoever which are now, or later become, payable (actually or
      contingently) to the Owner thereof and which arise out of the use or operation of that Vessel, including (but not limited to) all freight, hire and passage moneys, compensation payable to the Owner thereof in the event of requisition of that Vessel
      for hire, remuneration for salvage and towage services, demurrage and detention moneys, contributions of any nature whatsoever in respect of general average, damages for breach (or payments for variation or termination) of any charterparty or other
      contract for the employment of that Vessel and any other earnings whatsoever due or to become due to the Owner thereof in respect of that Vessel and all sums recoverable under the Insurances in respect of loss of Earnings and includes, if and
      whenever that Vessel is employed on terms whereby any and all such moneys as aforesaid are pooled or shared with any other person, that proportion of the net receipts of the relevant pooling or sharing agreement which is attributable to that Vessel;

    “EEA Member Country” means any member state of the European Union, Iceland, Liechtenstein and Norway;

    “Environmental Affiliate” means any agent or employee of any of the Borrowers or any other Relevant Party or any
      person having a contractual relationship with any of the Borrowers or any other Relevant Party in connection with any Relevant Ship or her operation or the carriage of cargo thereon;

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

    
      5

      
        

    

    “Environmental Claim” means:

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    and “claim” means (i) a claim for
      damages, compensation, fines, penalties or any other payment of any kind which exceeds $400000 (or the equivalent in any other currency) per Vessel per incident or (ii) one or more claims for damages, compensation, fines, penalties or any other
      payment of any kind, the subject matter of which exceeds $400,000 (or the equivalent in any other currency) in aggregate, whether such claim or claims are in relation to one or more Vessels and whether resulting from one incident or a series of
      incidents;

    “Environmental Incident” means (i) any release of Material of Environmental Concern from a Vessel, (ii) any incident
      in which Material of Environmental Concern is released from a vessel other than the Vessels and which involves collision between a Vessel and such other vessel or some other incident of navigation or operation, in either case, where a Vessel, the
      Borrowers (or any of them) or the Approved Manager are actually or allegedly at fault or otherwise liable (in whole or in part) or (iii) any incident in which Material of Environmental Concern is released from a vessel other than the Vessels and
      where a Vessel is actually or potentially liable to be arrested as a result and/or where the Borrowers (or any of them) or the Approved Manager are actually or allegedly at fault or otherwise liable;

    “Environmental Laws” means all national, international and state laws, rules, regulations, treaties and conventions
      applicable to any Relevant Ship pertaining to the pollution or protection of human health or the environment including, without limitation, the carriage of Materials of Environmental Concern and actual or threatened emissions, spills, releases or
      discharges of Materials of Environmental Concern and actual or threatened emissions, spills, releases or discharges of Materials of Environmental Concern from any Relevant Ship  (including, without limitation, the United States Oil Pollution Act of
      1990 and any comparable laws of the individual States of the United States of America);

    “EU Bail-In Legislation Schedule” means the document described as such and published by the Loan Market Association
      (or any successor person) from time to time;

    “Event of Default” means any event or circumstance set out in Clause 9.1 (Events) or described as such in any other of the Finance Documents;

    “Expenses” means the aggregate at any relevant time (to the extent that the same have not been received or recovered
      by the Lender) of:

    
      
        	

              	(a)	
                all losses, liabilities, costs, charges, expenses, damages and outgoings of whatever nature, (including, without limitation, Taxes, repair costs, registration fees and insurance premiums, crew wages, repatriation expenses and seamen’s
                  pension fund dues) suffered, incurred, charged to or paid or committed to be paid by the Lender in connection with the exercise of the powers referred to in or granted by any of the Finance Documents or otherwise payable by the Borrowers
                  or any of them in accordance with the terms of any of the Finance Documents;

              

      

    

    
      
        	

              	(b)	
                the expenses referred to in Clause 10.2 (Expenses); and

              

      

    

    
      
        	

              	(c)	
                interest on all such losses, liabilities, costs, charges, expenses, damages and outgoings from, in the case of Expenses referred to in sub-paragraph (b) above, the date on which such Expenses were demanded by the Lender from the
                  Borrowers

              

      

    

    
      6

      
        

    

    and in all other cases, the date on which the same were suffered, incurred or paid by the Lender until the date of receipt or recovery thereof (whether before or after judgement)
      at the Default Rate (as conclusively certified by the Lender);

    “FATCA” means:

    
      
        	

              	(a)	
                sections 1471 to 1474 of the US Internal Revenue Code of 1986 (the “Code”) or any associated regulations or other associated official guidance;

              

      

    

    
      
        	

              	(b)	
                any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of
                  paragraph (a) above; or

              

      

    

    
      
        	

              	(c)	
                any agreement pursuant to the implementation of paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction;

              

      

    

    “FATCA Deduction” means a deduction or withholding from a payment under a Finance Document required by FATCA;

    “FATCA Exempt Party” means a party that is entitled to receive payments free from any FATCA Deduction;

    “Final Maturity Date” means the date falling on the fifth (5th) anniversary of the Drawdown Date;

    “Finance Documents” means, together, this Agreement, the Security Documents, the Insurance Letters and any other
      document designated as such by the Lender and the Borrowers;

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

    

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      7

      
        

    

    “Financial Year” means, in relation to the Borrowers, each period of one (1)
      year commencing on 1st January thereof in respect of which financial statements referred to in Clause 8.1(f) (Financial statements) are or ought to be prepared;

    “Flag State” means in relation to each Vessel, the Republic of the Marshall Islands or such other state or territory
      designated in writing by the Lender, at the request of an Owner, as being the “Flag State” of such Vessel for the purposes of the Security Documents;

    “General Assignment” means, in relation to each Vessel, the first priority assignment of the Earnings, Insurances and
      Requisition Compensation collateral to the Mortgage relative to such Vessel, executed or (as the context may require) to be executed by the Owner thereof in favour of the Lender, in form and substance as the Lender may approve or require, as the same
      may from time to time be amended and/or supplemented (together, the “General Assignments”);

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

    “Governmental Withholdings” means withholdings and any restrictions or conditions resulting in any charge whatsoever
      imposed, either now or hereafter, by any sovereign state or by any political sub-division or taxing authority of any sovereign state;

    “Group” means the Borrowers, the Corporate Guarantor and their direct or indirect Subsidiaries and all other shipping
      companies now or in the future substantially directly or indirectly owned and/or controlled by same beneficial interests as the Borrowers from time to time during the Security Period and “member of the Group” means any member of the Group;

    “Insurance Letter” in relation to a Vessel means a letter from the Owner thereof in the form of Schedule 2 (Form of Insurance Letter);

    “Insurances” in relation to a Vessel means all policies and contracts of insurance (including, without limitation, all
      entries of such Vessel in a protection and indemnity, hull and machinery, war risks or other mutual insurance association) which are from time to time in place or taken out or entered into by or for the benefit of its Owner (whether in the sole name
      of its Owner or in the joint names of its Owner and the Lender) in respect of such Vessel and its earnings or otherwise howsoever in connection with such Vessel and all benefits of such policies and/or contracts (including all claims of whatsoever
      nature and return of premiums);

    “Interest Payment Date” means in respect of the Loan or any part thereof in respect of which a separate Interest
      Period is fixed the last day of the relevant Interest Period and in case of any Interest Period longer than three (3) months the date(s) falling at successive three (3) monthly intervals during such longer Interest Period and the last day of such
      Interest Period, provided, however, that if any of the aforesaid dates falls on a day which is not a Banking Day the Borrowers shall pay the accrued interest on the first Banking Day thereafter unless the result of such extension would be to
      carry such Interest Payment Date over into another calendar month in which event such Interest Payment Date shall be the immediately preceding Banking Day;

    
      8

      
        

    

    “Interest Period” means in relation to the Loan or any part thereof, each period for the calculation of interest in
      respect of the Loan or such part ascertained in accordance with Clauses 3.2 (Selection of Interest Period) and 3.3 (Determination of Interest Periods);

    “ISM Code” means in relation to its application to the Borrowers, the Vessels and their operation:

    
      
        	

              	(a)	
                “The International Management Code for the Safe Operation of Ships and for Pollution Prevention”, currently known or referred to as the “ISM Code”,
                  adopted by the Assembly of the International Maritime Organisation by Resolution A. 741(18) on 4th November, 1993 and incorporated on 19th May, 1994 into chapter IX of the International Convention for the Safety of
                  Life at Sea 1974 (SOLAS 1974); and

              

      

    

    
      
        	

              	(b)	
                all further resolutions, circulars, codes, guidelines, regulations and recommendations which are now or in the future issued by or on behalf of the International Maritime Organisation or any other entity with responsibility for
                  implementing the ISM Code, including without limitation, the “Guidelines on implementation or administering of the International Safety Management (ISM) Code by Administrations” produced by the
                  International Maritime Organisation pursuant to Resolution A. 788(19) adopted on 25th November, 1995;

              

      

    

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

    “ISM Code Documentation” includes:

    
      
        	

              	(a)	
                the DOC and SMC issued by a classification society in all respects acceptable to the Lender in its absolute discretion pursuant to the ISM Code in relation to the Vessels within the period specified by the ISM Code;

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(c)	
                any other documents which are prepared or which are otherwise relevant to establish and maintain each Vessel’s or each Owner’s compliance with the ISM Code which the Lender may require by request;

              

      

    

    “ISM SMS” means the safety management system which is required to be developed, implemented and maintained under the
      ISM Code;

    “ISPS Code” means the International Ship and Port Security Code of the International Maritime Organization and
      includes any amendments or extensions thereto and any regulation issued pursuant thereto;

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

    “Lender” means the Lender as specified in the beginning of this Agreement, and includes its successors in title and
      transferees;

    “Lending Office” means the office of the Lender appearing at the beginning of this Agreement or any other office of
      the Lender designated by the Lender as the Lending Office by notice to the Borrowers;

    
      9

      
        

    

    “LIBOR” means, in relation to the Loan or any part of the Loan:

    
      
        	

              	(a)	
                the applicable Screen Rate at or about 11.45 a.m. (London time) on  the Quotation Day for Dollars and for a period equal in length to the Interest Period then applicable to the Loan or that part of the Loan; or

              

      

    

    
      
        	

              	(b)	
                as otherwise determined pursuant to Clause3.6(d) (Negotiation of alternative rate of interest),

              

      

    

    and if, in either case, that rate is less than zero, LIBOR shall be deemed to be zero;

    “Loan” means the aggregate principal amount borrowed by the Borrowers in respect of the Commitment or (as the context
      may require) the principal amount owing to the Lender under this Agreement at any time;

    “Major Casualty” in relation to a Vessel means any casualty to such Vessel in
      respect whereof the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds the Major Casualty Amount;

    “Major Casualty Amount” means Four hundred thousand Dollars ($400,000) or the
      equivalent in any other currency;

    “Management Agreement” in relation to a Vessel means the agreement made
      between the Owner thereof and the Approved Manager providing (inter alia) for the Approved Manager to manage such Vessel, as amended and/or supplemented from time to time (together, the “Management Agreements”);

    “Margin” means three point five zero per centum (3.50%) per annum;

    “Market Value” in relation to a Vessel means the market value of such Vessel as determined in accordance with Clause
      8.5(b) (Valuation of Vessels);

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

    “Material Adverse Change” means any event or series of events which, in the opinion of the Lender, is likely to have a
      Material Adverse Effect;

    “Material Adverse Effect” means a material, in the reasonable opinion of the Lender, adverse effect on:

    
      
        	

              	(a)	
                the business, property, assets, liabilities, operations or condition (financial or otherwise) of the Borrower and/or any Security Party taken as a whole;

              

      

    

    
      
        	

              	(b)	
                the ability of the Borrower and/or any Security Party to (i) comply with or perform any of its obligations or (ii) discharge any of its liabilities, under any Finance Document as they fall due; or

              

      

    

    
      
        	

              	(c)	
                the validity, legality or enforceability of any Finance Document or the rights and remedies of the Lender under any Finance Document;

              

      

    

     “MII” has the meaning given in Clause 10.9 (MII costs);

    
      10

      
        

    

    “month” means a period beginning in one calendar month and ending in the next calendar month on the day numerically
      corresponding to the day of the calendar month on which it started, provided that (i) if the period started on the last Banking Day in a calendar month or if there is no such numerically corresponding day, it shall end on the last Banking Day
      in such next calendar month and (ii) if such numerically corresponding day is not a Banking Day, the period shall end on the next following Banking Day in the same calendar month but if there is no such Banking Day it shall end on the preceding
      Banking Day and “months” and “monthly” shall be construed accordingly;

    “Mortgage” in relation to a Vessel means

      the first preferred ship mortgage or, as the case may be, first priority ship mortgage and the deed of covenant supplemental thereto on such Vessel to be executed by the Owner thereof in favour of the Lender in form and substance as the Lender may
      approve or require, as the same may from time to time be amended and/or supplemented (together, the “Mortgages”);

    “Mortgaged Vessel(s)” means the Vessel(s) which remain mortgaged in favour of the Lender pursuant to this Agreement at
      any relevant time hereunder;

    “Operating Account” means the account to be opened and maintained in the name of each Owner with the Lending Office or
      with any other branch of the Lender or any other office of the Lender or with such other bank as may be required by and at the discretion of the Lender pursuant to Clause 13.7 (Relocation of Operating Accounts) and shall include any sub-accounts or call accounts (whether in Dollars or any other currency) opened under the same designation or any revised
      designation or number from time to time notified by the Lender to the Borrowers, to which (inter alia) all Earnings of the relevant Vessel and/or any other moneys are to be paid in accordance with the provisions of this Agreement and/or the relevant
      General Assignment and/or any of the other Finance Documents (together, the “Operating Accounts”);

    “Operating Expenses” means the voyage and operating expenses of the Vessels, including, but not limited to, the
      expenses for operating, crewing, victualing, insuring, maintaining, repairing and generally trading the Vessels (and if applicable, voyage expenses), the expenses for spares, administration and management of the Vessels (inclusive of the management
      fees, survey expenses, legal fees, commissions, bunkering expenses, ballast water treatment installation costs and corporate administration fees and taxes) as well as the reserves that the Borrowers, acting reasonably, consider necessary for the
      commercial operation of the Vessels and the costs of intermediate and special surveys and dry docking of the Vessels;

    “Operator” means any person who is from time to time during the Security Period concerned in the operation of the
      Vessels (or any of them) and falls within the definition of “Company” set out in rule 1.1.2. of the ISM Code;

    “Outstanding Indebtedness” means the aggregate of (a) the Loan and interest accrued and accruing thereon, (b) the
      Expenses, and (c) all other sums of any nature (together with all interest on any of those sums) which from time to time may be payable by the Borrowers to the Lender pursuant to the Finance Documents, whether actually or contingently and (d) any
      damages payable as a result of any breach by the Borrowers of any of the Finance Documents and (e) any damages or other sums payable as a result of any of the obligations of the Borrowers under or pursuant to any of the Finance Documents being
      disclaimed by a liquidator or any other person, or, where the context permits, the amount thereof for the time being outstanding;

    
      11

      
        

    

    “Owner” in relation to a Vessel means the owner of such Vessel as specified in the definition of the Vessels in this
      Clause 1.2 (together, the “Owners”);

    “Party” means a party to this Agreement;

    “Permitted Security Interest” means:

    
      
        	

              	(a)	
                Security Interests created by the Finance Documents;

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(c)	
                liens for salvage;

              

      

    

    
      
        	

              	(d)	
                liens arising by operation of law for not more than 2 months’ prepaid hire under any charter in relation to such Vessel 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 Vessel, provided such liens do
                  not secure amounts more than 60 days overdue (unless the overdue amount is being contested in good faith by appropriate steps) and, in the case of liens for repair or maintenance, in such Vessel is put in the possession of any person for
                  the purpose of work being done upon her in an amount exceeding or likely to exceed the Major Casualty Amount provided that (i) either that person has first given to the Lender and in terms satisfactory to it a written undertaking
                  not to exercise any lien on such Vessel or her earnings for the cost of such work or (ii) the previous consent of the Lender shall have been obtained (which consent shall not be unreasonably withheld);

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    “Pledged Deposit” has the meaning ascribed thereto in Clause 8.1(k) (Pledged Deposit);

    “Pledgor” means the Corporate Guarantor or any other person(s) acceptable to the Lender who has/have executed or (as
      the context may require) shall execute the Shares Pledge Agreement (together, the “Pledgors”);

     “Quotation Day” means, in respect of any period in respect of which LIBOR
      falls to be determined under this Agreement, the second Banking Day before the first day of such period;

    “Registry” in relation to a Vessel means the offices of such registrar, commissioner or representative of the relevant
      Flag State who is duly authorised to register such Vessel, its Owner’s title thereto and the relevant Mortgage over such Vessel under the laws and flag of the relevant Flag State;

    
      12

      
        

    

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

    “Related Company” means any shipping company which is under the ultimate
      control, direct or indirect, of any individual(s) who has/have ultimate control of the Borrowers (or either of them) or other entity of which such company is a Subsidiary and any Subsidiary of any such company or entity;

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

    “Relevant Nominating Body” means any applicable central bank, regulator or other supervisory authority or a group of
      them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board;

    “Relevant Party” means the Borrower, the Borrower's Related Companies and the
      other corporate Security Parties and their respective Related Companies;

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

    “Repayment Date” means each of the dates specified in Clause 4.1 (Repayment) on which the Repayment Instalments shall be payable by the Borrowers to the Lender;

    “Repayment Instalments” means each of the instalments of the Loan which becomes due for repayment by the Borrowers to
      the Lender on a Repayment Date pursuant to Clause 4.1 (Repayment);

    “Replacement Benchmark” means a benchmark rate which is:

    
      
        	

              	(a)	
                formally designated, nominated or recommended as the replacement for a Screen Rate by:

              

      

    

    
      
        	

              	(i)	
                the administrator of that Screen Rate (provided that the market or economic reality that such benchmark rate measures is the same as that measured by that Screen Rate); or

              

      

    

    
      
        	

              	(ii)	
                any Relevant Nominating Body,

              

      

    

    and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the "Replacement

        Benchmark" will be the replacement under paragraph (ii) above;

    
      
        	

              	(b)	
                in the opinion of the Lender and the Borrower, generally accepted in the international loan markets as the appropriate successor to a Screen Rate; or

              

      

    

    
      
        
          	

                	(c)	
                  in the opinion of the Lender and the Borrower, an appropriate successor to a Screen Rate;

                

        

      

    

    “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”;

    “Resolution Authority” means any body which has authority to exercise any Write-down

    
      13

      
        

    

    and Conversion Powers;

    “Sanctions” means any economic, financial or trade
      sanctions laws, regulations, embargoes or other restrictive measures adopted, administered, enacted or enforced by any Sanctions Authority, or otherwise imposed by any law or regulation, compliance with which is reasonable in the ordinary course of
      business of the Borrowers (or any of them), any other Security Party and the Lender or to which the Borrowers, any other Security Party and the Lender are subject (which shall include without limitation, any extra-territorial sanctions imposed by law
      or regulation of the United States of America);

    “Sanctions Authority” means:

    
      
        	

              	(a)	
                the government of the United States of America;

              

      

    

    
      
        	

              	(b)	
                the United Nations;

              

      

    

    
      
        	

              	(c)	
                the European Union (or the governments of any of its member states);

              

      

    

    
      
        	

              	(d)	
                the United Kingdom;

              

      

    

    
      
        	

              	(e)	
                the Flag State; or

              

      

    

    
      
        	

              	(f)	
                the respective governmental institutions and agencies of any of the foregoing including the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”),
                  the United States Department of State, the United States Department of Commerce and Her Majesty’s Treasury;

              

      

    

    “Sanctions Restricted Jurisdiction” means any country or territory which is the target of country-wide or territory-wide Sanctions, including as at the date of this Agreement, Iran, Sudan, Syria, Crimea, North Korea and Cuba;

    “Sanctions Restricted Person” means a person or vessel:

    
      
        	

              	(a)	
                that is, or is directly or indirectly, owned or controlled (as such terms are defined by the relevant Sanctions Authority) by, or acting on behalf of, one or more persons or entities on any list (each as amended, supplemented or
                  substituted from time to time) of restricted entities, persons or organisations (or equivalent) published by a Sanctions Authority;

              

      

    

    
      
        	

              	(b)	
                that is located or resident in or incorporated under the laws of, or owned or controlled by, a person located or resident in or incorporated under the laws of a Sanctions Restricted Jurisdiction; or

              

      

    

    
      
        	

              	(c)	
                that is otherwise the target or subject of Sanctions;

              

      

    

    “Screen Rate”
      means the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for Dollars for the relevant period displayed (before any correction, recalculation or
      republication by the administrator) on page LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate
      from time to time in place of Thomson Reuters. If such page or service ceases to be available, the Lender may specify another page or service displaying the relevant rate after consultation with the Borrowers;

    
      14

      
        

    

    “Screen Rate Replacement Event” means, in relation to a Screen Rate:

    
      
        	

              	(a)	
                the methodology, formula or other means of determining that Screen Rate has, in the opinion of the Lender and the Borrowers, materially changed;

              

      

    

    
      
        	

              	(b)	
                (i)

              

      

    

    
      
        	

              	(A)	
                the administrator of that Screen Rate or its supervisor publicly announces that such administrator is insolvent; or

              

      

    

    
      
        	

              	(B)	
                information is published in any order, decree, notice, petition or filing, however described, or filed with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory or judicial body which reasonably
                  confirms that the administrator of that Screen Rate is insolvent,

              

      

    

    provided that, in each case, at that time, there is no successor administrator to continue to provide that Screen Rate;

    
      
        	

              	(ii)	
                the administrator of that Screen Rate publicly announces that it has ceased or will cease, to provide that Screen Rate permanently or indefinitely and, at that time, there is no successor administrator to continue to provide that
                  Screen Rate;

              

      

    

    
      
        	

              	(iii)	
                the supervisor of the administrator of that Screen Rate publicly announces that such Screen Rate has been or will be permanently or indefinitely discontinued; or

              

      

    

    
      
        	

              	(iv)	
                the administrator of that Screen Rate or its supervisor announces that that Screen Rate may no longer be used; or

              

      

    

    
      
        	

              	(v)	
                in the opinion of the Lender and the Borrowers, that Screen Rate is otherwise no longer appropriate for the purposes of calculating interest under this Agreement;

              

      

    

    “Security Documents” means:

    
      
        	

              	(a)	
                the Accounts Pledge Agreement;

              

      

    

    
      
        	

              	(b)	
                the Approved Manager’s Undertaking;

              

      

    

    
      
        	

              	(c)	
                the General Assignments;

              

      

    

    
      
        	

              	(d)	
                the Mortgages;

              

      

    

    
      
        	

              	(e)	
                any Charterparty Assignment;

              

      

    

    
      
        	

              	(f)	
                the Corporate Guarantee;

              

      

    

    
      
        	

              	(g)	
                the Shares Pledge Agreement; and

              

      

    

    
      
        	

              	(h)	
                any other agreement or document (whether creating a Security Interest or not) that may have been or shall from time to time after the date of this Agreement be executed to guarantee and/or secure all or any part of the Outstanding
                  Indebtedness and/or any and all other obligations of the Borrowers to the Lender pursuant to this Agreement and any other moneys from time to time owing or payable by the Borrowers under or in connection with this Agreement and/or any of
                  the other documents referred to in this definition, as each such document may from

              

      

    

    
      15

      
        

    

    time to time be amended and/or supplemented, and “Security Document” means any of them as the context may require;

    “Security Interest” means any mortgage, charge (whether fixed or floating),
      pledge, lien, hypothecation, assignment, trust arrangement or security interest or other encumbrance of any kind securing any obligation of any person or any type of preferential arrangement (including without limitation title transfer and/or
      retention arrest, seizure, garnishee order (whether nisi or absolute) or any other order or judgement arrangements having a similar effect) or other encumbrance of any kind or the security rights of a plaintiff under an action in rem or any right conferring a priority of payment in respect of any obligation of any person;

     “Security Party” means each Borrower, the Corporate Guarantor, the Pledgor, the Approved Manager and any other person
      (other than the Lender and any charterer) 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”, and “Security Parties” means any or all of them, as the context may require;

    “Security Period” means the period commencing on and including the date hereof and terminating on and including the
      date upon which Outstanding Indebtedness has been paid in full to the Lender;

    “Security Requirement” means the amount in Dollars (as certified by the Lender
      whose certificate shall, in the absence of manifest error, be conclusively binding on the Borrowers) which is at any relevant time not less than one hundred and twenty five percent (125%) of the Loan;

    “Security Value” means the amount in Dollars (as certified by the Lender whose
      certificate shall, in the absence of manifest error, be conclusive and binding on the Borrowers) which, at any relevant time is the aggregate of (i) the aggregate Market Value of the Mortgaged Vessels as most recently determined in accordance with
      Clause 8.5(b) (Valuation of Vessels), (ii) the market value of any additional
      security provided under Clause 8.5(a) (Security shortfall-Additional Security) and accepted by the Lender (if any) and
      (iii) the Pledged Deposit;

    “Shares” means the five hundred (500) registered shares in the issued share
      capital of the Borrower owned by the Pledgor;

    “Shares Pledge Agreement” means the pledge agreement to be executed by the Pledgor(s) in favour of the Lender, whereby
      the Pledgor shall pledge all Shares, in form and substance as the Lender may approve or require, as the same may from time to time be amended and/or supplemented;

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

    “Subsidiary” of a person means any company or entity directly or indirectly controlled by such person;

    “Taxes” includes all present and future taxes, levies, imposts, duties, fees or charges of whatever nature together
      with interest thereon and penalties in respect thereof (except taxes concerning the Lender and imposed on the net income of the Lender) and “Taxation” shall be construed accordingly;

    
      16

      
        

    

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

    
      
        
          	

                	(a)	
                  actual, constructive, compromised or arranged total loss of that Vessel; or

                

        

      

    

    
      
        	

              	(b)	
                any expropriation, confiscation, appropriation, expropriation, deprivation, forfeiture, requisition or acquisition of that Vessel, whether for full or part consideration, a consideration less than its proper value, a nominal
                  consideration or without any consideration, which is effected by any Government Entity or by any person or persons claiming to be or to represent a Government Entity whether de jure or de facto, unless it is within thirty (30) days from
                  the date of such occurrence redelivered to the full control of the Owner thereof; or

              

      

    

    
      
        	

              	(c)	
                any condemnation of that Vessel by any tribunal or by any person or persons claiming to be a tribunal,

              

      

    

    
      
        	

              	(d)	
                any arrest, capture, seizure, confiscation or detention of that Vessel (including any hijacking or theft or piracy or related incident) unless it is within ninety (90) days from the date of such occurrence redelivered to the full
                  control of the Owner thereof;

              

      

    

    
      
        	

              	
                “Total Loss Date” means, in relation to a Vessel:

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                in the case of a constructive, compromised, agreed or arranged total loss of that Vessel, 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 Owner of that Vessel with that Vessel's insurers in which the insurers agree to treat that Vessel as a total loss;

              

      

    

    “Transferee” has the meaning ascribed thereto in Clause 14.3 (Assignment by the Lender);

    “UK Bail-In Legislation” means (to the extent that the United Kingdom is not an EEA Member Country which has
      implemented, or implements, Article 55 BRRD) Part 1 of the United Kingdom Banking Act 2009 and any other law or regulation applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial
      institutes or their Affiliates (otherwise than through liquidation, administration or other insolvency proceedings);

    “US” means the United States of America;

    “US Tax Obligor” means:

    
      
        	

              	(a)	
                a Borrower which is resident for tax purposes in the US; or

              

      

    

    
      
        	

              	(b)	
                a Borrower or a Security Party some or all whose payments under the Finance Documents are from sources within the US for US federal income tax purposes;

              

      

    

    “Vessels” means:

    
      
        	

              	(a)	
                the motor vessel “MAGIC MOON“, of about 39,727 gt and 25,754 nt, built in 2005 in

              

      

    

    
      17

      
        

    

    Japan by Imabari Shipbuilding Co. Ltd., having IMO No. 9336036, registered under the laws and flag of the Republic of the Marshall Islands at the Ships Registry of the port of
      Monrovia in the ownership of the Pikachu Borrower with Official No. 7474 (the “Vessel A”); and

    
      
        	

              	(b)	
                the motor vessel “MAGIC P” of approximately 39,964 gt and 25,889 nt, built in 2004 in Japan by Tsuneishi Corporation and having IMO No. 9288447, registered
                  under the laws and flag of the Republic of the Marshall Islands in the ownership of the Spetses Borrower with Official No. 7351 (the “Vessel B”),

              

      

    

    in each case, together with all her boats, engines, machinery tackle outfit spare gear fuel consumable and other stores belongings and appurtenances whether on board or ashore
      and whether now owned or hereafter acquired and all the additions, improvements and replacements in or on the above described vessel,

    (the Vessel A and the Vessel B hereinafter together called the “Vessels”, and “Vessel” means any of them, as the context may require);

    “Write-down and Conversion Powers” means:

    
      
        	

              	(a)	
                in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule; and

              

      

    

    
      
        	

              	(b)	
                in relation to any other applicable Bail-In Legislation:

              

      

    

    
      
        	

              	(i)	
                any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution,
                  to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person
                  or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation
                  that are related to or ancillary to any of those powers; and

              

      

    

    
      
        	

              	(ii)	
                any similar or analogous powers under that Bail-In Legislation; and

              

      

    

    
      
        	

              	(c)	
                in relation to any UK Bail-In Legislation:

              

      

    

    
      
        	

              	(i)	
                any powers under that UK Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or Affiliate of a bank, investment firm or other financial
                  institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of
                  that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that UK
                  Bail-In Legislation that are related to or ancillary to any of those powers; and

              

      

    

    
      
        
          	

                	(ii)	
                  any similar or analogous powers under that UK Bail-In Legislation.

                

        

      

    

    
      18

      
        

    

    

    

    
      
        	1.3	
                Interpretation

              

      

    

    In this Agreement:

    
      
        	

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

              

      

    

    
      
        	

              	(d)	
                subject to any specific provision of this Agreement or of any assignment and/or participation or syndication agreement of any nature whatsoever, reference to each of the parties hereto and to the other Finance Documents shall be deemed
                  to be reference to and/or to include, as appropriate, their respective successors and permitted assigns;

              

      

    

    
      
        	

              	(e)	
                where the context so admits, words in the singular include the plural and vice versa;

              

      

    

    
      
        	

              	(f)	
                the words “including” and “in particular” shall not be construed as limiting the generality of any foregoing words;

              

      

    

    
      
        	

              	(g)	
                references to (or to any specified provisions of) a Finance Document or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as it may from time to time be amended, restated,
                  novated or replaced, however fundamentally, whether before the date of this Agreement or otherwise;

              

      

    

    
      
        	

              	(h)	
                references to Clauses and Schedules are to be construed as references to the Clauses of, and the Schedules to, the relevant Finance Document and references to a Finance Document include all the terms of that Finance Document and any
                  Schedules, Annexes or Appendices thereto, which form an integral part of same;

              

      

    

    
      
        	

              	(i)	
                references to the opinion of the Lender or a determination or acceptance by the Lender or to documents, acts, or persons acceptable or satisfactory to the Lender or the like shall be construed as reference to opinion, determination,
                  acceptance or satisfaction of the Lender at the sole discretion of the Lender, and such opinion, determination, acceptance or satisfaction of the Lender shall be conclusive and binding on the Borrowers;

              

      

    

    
      
        	

              	(j)	
                references to a “regulation” include any present or future regulation, rule, directive,
                  requirement, request or guideline (whether or not having the force of law) of any governmental or intergovernmental body, agency, authority, central bank or government department or any self regulatory or other national or supra-national
                  authority or organisation and includes (without limitation) any Basel II Regulation or Basel III Regulation;

              

      

    

    
      
        	

              	(k)	
                references to any person include such person’s assignees and successors in title; and

              

      

    

    
      
        	

              	(l)	
                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;

              

      

    

    
      
        	1.4	
                Construction of certain terms

              

      

    

    In this Agreement:

    “asset” includes every kind of
      property, asset, interest or right, including any present, future or contingent right to any revenues or other payment;

    
      19

      
        

    

    “company” includes any partnership,
      joint venture and unincorporated association;

    “consent” includes an
      authorisation, consent, approval, resolution, licence, exemption, filing, registration, notarisation and legalisation;

    “contingent liability” means a
      liability which is not certain to arise and/or the amount of which remains unascertained;

    "continuing", in relation to any
      Default or any Event of Default, means that the Default or the Event of Default has not been remedied or waived;

    “control” of an entity means:

    
      
        	

              	(a)	
                the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

              

      

    

    
      
        	

              	(i)	
                cast, or control the casting of, more than 50 per cent of the maximum number of votes that might be cast at a general meeting of that entity; or

              

      

    

    
      
        	

              	(ii)	
                appoint or remove all, or the majority, of the directors or other equivalent officers of that entity; or

              

      

    

    
      
        	

              	(iii)	
                give directions with respect to the operating and financial policies of that entity with which the directors or other equivalent officers of that entity are obliged to comply; and/or

              

      

    

    
      
        	

              	(b)	
                the holding beneficially of more than 50 per cent of the issued share capital of that entity (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either
                  profits or capital) (and, for this purpose, any Security Interest over the share capital shall be disregarded in determining the beneficial ownership of such share capital);

              

      

    

    and “controlled” shall be construed
      accordingly;

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

    “guarantee” means any guarantee,
      letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase
      assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness and “guaranteed” shall be construed accordingly;

    “law” includes any form of
      delegated legislation, any order or decree, any treaty or international convention and any regulation or resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council;

    “liability” includes every kind of
      debt or liability (present or future, certain or contingent), whether incurred as principal or surety or otherwise;

    “person” includes any individual,
      firm, company, corporation, unincorporated body of persons or any state, political sub-division or any agency thereof 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

    
      20

      
        

    

    document evidencing the contract of insurance or its terms;

    “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;

    “right” means any right, privilege,
      power or remedy, any proprietary interest in any asset and any other interest or remedy of any kind, whether actual or contingent, present or future, arising under contract or law, or in equity;

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

    “liquidation”, “winding up”, “dissolution”, or “administration” of person or a “receiver” or “administrative receiver” or “administrator” in the context of insolvency proceedings or security enforcement actions in respect of a person
      shall be construed so as to include any equivalent or analogous proceedings or any equivalent and analogous person or appointee (respectively) under the law of the jurisdiction in which such person is established or incorporated or any jurisdiction
      in which such person carries on business including (in respect of proceedings) the seeking or occurrences of liquidation, winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief of debtors.

    
      
        	1.5	
                Same meaning

              

      

    

    Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in
      that Finance Document or notice as in this Agreement.

    
      
        	1.6	
                Inconsistency

              

      

    

    Unless a contrary indication appears, in the event of any inconsistency between the terms of this Agreement and the terms of any other Finance Document when dealing with the same
      or similar subject matter (other than as relates to the creation and/or perfection of security) are subject to the terms of this Agreement and, in the event of any conflict between any provision of this Agreement and any provision of any Finance
      Document (other than in relation to the creation and/or perfection of security) the provisions of this Agreement shall prevail.

    
      
        	1.7	
                Finance Documents

              

      

    

    Where any other Finance Document provides that Clause 1.3 (Interpretation) and Clause 1.4 (Construction of certain terms), shall apply to that Finance
      Document, any other provision of this Agreement which, by its terms, purports to apply to all or any of the Finance Documents and/or any Security Party shall apply to that Finance Document as if set out in it but with all necessary changes.

    
      21

      
        

    

    
      
        
          	2.	
                  THE LOAN

                

          
            

        

      

    

    
      
        	2.1	
                Commitment to lend

              

      

    

    The Lender, relying upon (inter alia) each of the representations and warranties set forth in Clause 6 (Representations and warranties) and in each of the Security Documents, agrees to lend to the Borrowers in (1) Advance and upon and subject to the terms of this Agreement, the amount
      specified in Clause 1.1 (Amount and Purpose) and the Borrowers shall apply all amounts borrowed under the Commitment
      in accordance with Clause 1.1 (Amount and Purpose).

    
      
        	2.2	
                Drawdown Notice irrevocable

              

      

    

    A Drawdown Notice must be signed by a director or a duly authorised attorney-in-fact of the Borrowers and shall be effective on actual receipt thereof by the Lender and, once
      served, it, subject as provided in Clause 3.6 (Market disruption – Non Availability), cannot be revoked without the
      prior consent of the Lender.

    
      
        	2.3	
                Drawdown Notice and commitment to borrow

              

      

    

    Subject to the terms and conditions of this Agreement, the Commitment shall be advanced to the Borrowers following receipt by the Lender from the Borrowers of a Drawdown Notice
      not later than 10:00 a.m. (London time) on the third Banking Day before the date on which the drawdown is intended to be made.

    
      
        	2.4	
                Number of advances agreed

              

      

    

    The Commitment shall be advanced to the Borrowers by one (1) Advance and any amount undrawn under the Commitment shall be cancelled and may not be borrowed by the Borrowers at a
      later date.

    
      
        	2.5	
                Disbursement

              

      

    

    Upon receipt of the relevant Drawdown Notice complying with the terms of this Agreement the Lender shall, subject to the provisions of Clause 7 (Conditions precedent), on the date specified in the relevant Drawdown Notice, make the Commitment available to the Borrowers, and payment to the Borrowers shall be
      made to the account which the Borrowers specify in the relevant Drawdown Notice.

    
      
        	2.6	
                Application of proceeds

              

      

    

    Without prejudice to the Borrowers’ obligations under Clause 8.1(d) (Use of Loan proceeds), the Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement and shall have no responsibility for the application of the proceeds of the Loan (or any part
      thereof) by the Borrowers.

    
      
        	2.7	
                Termination date of the Commitment

              

      

    

    Any part of the Commitment undrawn and uncancelled at the end of the Availability Period shall thereupon be automatically cancelled.

    
      
        	2.8	
                Evidence

              

      

    

    It is hereby expressly agreed and admitted by the Borrowers that abstracts or photocopies of the books of the Lender as well as statements of accounts or a certificate signed by
      an

    
      22

      
        

    

    authorised officer of the Lender shall be conclusive binding and full evidence, save for manifest error, on the Borrowers as to the existence and/or the amount of the at any time
      Outstanding Indebtedness, of any amount due under this Agreement, of the applicable interest rate or Default Rate or any other rate provided for or referred to in this Agreement, the Interest Period, the value of additional securities under Clause
      8.5(a) (Security shortfall Additional Security), the payment or non payment of any amount.  Nevertheless, enforcement
      procedures or any other court or out-of-court procedure can be commenced by the Lender on the basis of the above mentioned means of evidence including written statements or certificates of the Lender.

    
      
        	2.9	
                Cancellation

              

      

    

    The Borrowers shall be entitled to cancel any undrawn part of the Commitment under this Agreement upon giving the Lender not less than five (5) Banking Days’ notice in writing to
      that effect, provided that no Drawdown Notice has been given to the Lender under Clause 2.3 (Drawdown Notice and commitment to borrow) for the full amount of the Commitment or in respect of the portion thereof in respect of which cancellation is required by the Borrowers.  Any such notice of cancellation, once given, shall be irrevocable.  Any amount cancelled
      may not be drawn. Notwithstanding any such cancellation pursuant to this Clause 2.9 the Borrowers shall continue to be liable for any and all amounts due to the Lender under this Agreement including without limitation any amounts due to the Lender
      under Clause 10 (Indemnities - Expenses – Fees).

    
      
        	2.10	
                No security or lien from other person

              

      

    

    Neither of the Borrowers has taken or received, and each of the Borrowers undertakes that until all moneys, obligations and liabilities due, owing or incurred by the Borrowers
      under this Agreement and the Security Documents have been paid in full, none of the Borrowers will take or receive, any security or lien from any other person liable or for any liability whatsoever.

    
      
        	2.11	
                Interest to co-borrow

              

      

    

    The Borrowers have an interest in borrowing jointly and severally in that they are companies which have close financial co-operation and mutual assistance and in that the
      Commitment would not have been available to each one of the Borrowers separately.

    
      
        
          	3.	
                  INTEREST

                

        

      

      

      

    

    
      
        	3.1	
                Normal Interest Rate

              

      

    

    The Borrowers shall pay interest on the Loan (or as the case may be, each portion thereof to which a different Interest Period relates) in respect of each Interest Period (or
      part thereof) on each Interest Payment Date. The interest rate for the calculation of interest shall be the rate per annum determined by the Lender to be the aggregate of (i) the Margin and (ii) LIBOR for that Interest Period, unless there is an
      Alternative Rate in which case the interest rate for the calculation of interest shall be the rate per annum determined by the Lender to be the aggregate of (i) the Margin and (ii) the Alternative Rate.

    
      
        	3.2	
                Selection of Interest Period

              

      

    

    
      
        	

              	(a)	
                Notice:  The Borrowers may by notice received by the Lender not later than 10:00 a.m. (London time) on the second Banking Day before the beginning of each Interest Period specify (subject to Clause 3.3 (Determination of Interest Periods) below) whether such Interest Period shall have a duration of one (1) or two (2) or

              

      

    

    
      23

      
        

    

    three (3) months (or such other period as may be requested by the Borrowers and as the Lender, in its sole discretion, may agree to).

    
      
        	

              	(b)	
                Non-availability of matching deposits for Interest Period selected:  If, after the Borrowers by notice to the Lender  have selected an Interest Period, the Lender notifies the Borrowers on the same Banking Day before the
                  commencement of that Interest Period that it is not satisfied that deposits in Dollars for a period equal to that Interest Period will be available to it in the London Interbank Market when that Interest Period commences, that Interest
                  Period shall be of such duration as the Lender may advise the Borrowers in writing.

              

      

    

    
      
        	3.3	
                Determination of Interest Periods

              

      

    

    Every Interest Period shall, subject to market availability to be conclusively determined by the Lender, be of the duration specified by the Borrowers pursuant to Clause 3.2 (Selection of Interest Periods) but so that:

    
      
        	

              	(a)	
                Initial Interest Period: the initial Interest Period in respect of the Loan will commence on the date on which the Commitment is advanced and each subsequent Interest Period will commence forthwith upon the expiry of the
                  preceding Interest Period;

              

      

    

    
      
        	

              	(b)	
                Interest tranches: if any Interest Period would otherwise overrun one or more Repayment Dates, then, in the case of the last Repayment Date, such Interest Period shall end on such Repayment Date, and in the case of any other
                  Repayment Date or Dates the Loan shall be divided into parts so that there is one part equal to the amount(s) of the Repayment Instalment(s) due on each Repayment Date falling during that Interest Period and having an Interest Period
                  ending on the relevant Repayment Date and another part equal to the amount of the balance of the Loan having an Interest Period determined in accordance with Clause 3.2 (Selection of Interest Period) and the other provisions of this Clause 3.3 and the other provisions of this Clause 3.3 and the expression “Interest Period in respect of the Loan” when used in this Agreement refers to the Interest Period in respect of the balance of the Loan;

              

      

    

    
      
        	

              	(c)	
                Failure to notify: if the Borrowers fail to specify the duration of an Interest Period in accordance with the provisions of Clause 3.2 (Selection of
                      Interest Period) and this Clause 3.3, such Interest Period shall have a duration of three (3) months unless another period shall be determined by the Lender at its sole discretion provided,

                    always, that such period (whether of three (3) months or of different duration) shall comply with this Clause 3.3,

              

      

    

    provided, always, that:

    
      
        	

              	(i)	
                any Interest Period which commences on the last day of a calendar month, and any Interest Period which commences on the day on which there is no numerically corresponding day in the calendar month during which such Interest Period is
                  due to end, shall end on the last Banking Day of the calendar month during which such Interest Period is due to end; and

              

      

    

    
      
        	

              	(ii)	
                if the last day of an Interest Period is not a Banking Day the Interest Period shall be extended until the next following Banking Day unless such next following Banking Day falls in the next calendar month in which case such Interest
                  Period shall be shortened to expire on the preceding Banking Day.

              

      

    

    
      24

      
        

    

    

    

    
      
        	3.4	
                Default Interest

              

      

    

    
      
        	

              	(a)	
                Default interest: If the Borrowers fail to pay any sum (including, without limitation, any sum payable pursuant to this Clause 3.4) on its due date for payment under any of the Finance Documents, the Borrowers shall pay interest
                  on such sum from the due date up to the date of actual payment (as well after as before judgement) at the rate determined by the Lender pursuant to this Clause 3.4. The period beginning on such due date and ending on such date of payment
                  shall be divided into successive periods as selected by the Lender each of which (other than the first, which shall commence on such due date) shall commence on the last day of the preceding such period.  The rate of interest applicable
                  to each such period shall be the aggregate (as determined by the Lender) of (i) two per cent (2%) per annum, (ii) the Margin and (iii) LIBOR. Such interest shall be due and payable on the last day of each such period as determined by the
                  Lender and each such day shall, for the purposes of this Agreement, be treated as an Interest Payment Date, provided that if such unpaid sum is of principal which became due and payable by reason of a declaration by the Lender
                  under Clause 9.2 (Consequences of Default – Acceleration) or a prepayment pursuant to Clauses 4.2 (Voluntary Prepayment), 4.3 (Compulsory

                      Prepayment in case of Total Loss or sale of a Vessel), 8.5(a)(i), 12.1 (Unlawfulness) and 12.2 (Increased Cost) on a date other than an Interest Payment Date relating thereto, the first such
                  period selected by the Lender shall be of a duration equal to the period between the due date of such principal sum and such Interest Payment Date and interest shall be payable on such principal sum during such period at a rate two per
                  cent (2%) above the rate applicable thereto immediately before it fell due. If for the reasons specified in Clause 3.6 (Market disruption – Non Availability), the Lender is unable to determine a rate in accordance with the foregoing provisions of this Clause 3.4, interest on any sum not paid on its due date for payment shall be calculated at a rate
                  determined by the Lender to be two per cent (2%) per annum above the aggregate of (i) the Margin and (ii) the Alternative Rate.

              

      

    

    
      
        	

              	(b)	
                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 be compounded every 6 months and shall be payable on demand.

              

      

    

    
      
        	3.5	
                Notification of Interest and interest rate

              

      

    

    The Lender shall notify the Borrowers promptly of the duration of each Interest Period and of each rate of interest determined by it under this Clause 3 without
      prejudice to the right of the Lender to make determinations at its sole discretion. In case that the Lender fails to notify the Borrowers as above, such failure will not affect the validity of the determination of the Interest Period and Interest
      Rate made pursuant to this Clause 3 and neither constitute nor will be interpreted as if to constitute a breach of obligation of the Lender except in case of wilful misconduct.

    
      
        	3.6	
                 Market disruption – Non Availability

              

      

    

    
      
        
          	

                	(a)	
                  Market Disruption Event - Notification: If and whenever, at any time prior to the commencement of any Interest Period, the Lender (in its discretion) shall have determined (which determination shall be conclusive in the
                    absence of manifest error) that a Market Disruption Event has occurred in relation to the Loan for any such Interest Period, then the Lender shall forthwith give notice thereof (a “Determination

                      Notice”) to the Borrowers stating the circumstances falling within Clause 3.6(c) (Meaning of “Market Disruption Event”) which have caused its notice to

                

        

      

    

    
      25

      
        

    

    be given and the rate of interest on the Loan (or the relevant part thereof) for that Interest Period shall be the percentage rate per annum which is the sum of:

    
      
        
          	

                	(i)	
                  the Margin; and

                

        

      

    

    
      
        	

              	(ii)	
                the rate which expresses as a percentage rate per annum the cost to the Lender of funding the Loan (or the relevant part thereof) from whatever source it may select.

              

      

    

    
      
        	

              	(b)	
                Suspension of drawdown: If the Determination Notice is given before the Commitment (or a part thereof) is advanced, the Lender's obligation to make the Commitment (or a part thereof) available shall be suspended while the
                  circumstances referred to in the Determination notice continue.

              

      

    

    
      
        	

              	(c)	
                Meaning of “Market Disruption Event”: In this Agreement “Market Disruption Event” means:

              

      

    

    
      
        	

              	(i)	
                at or about noon on the Quotation Day for the relevant Interest Period no Screen Rate is available for LIBOR for Dollars; and/or

              

      

    

    
      
        	

              	(ii)	
                before close of business in London on the Quotation Day for the relevant Interest Period, the Lender determines (in its sole discretion) that the cost to it of obtaining matching deposits in the London Interbank Market to fund the Loan
                  (or the relevant part thereof) for such Interest Period would be in excess of the Screen Rate for such Interest Period; and

              

      

    

    
      
        	

              	(iii)	
                before close of business in London on the Quotation Day for the relevant Interest Period, deposits in Dollars are not available to the Lender in the London Interbank Market in the ordinary course of business in sufficient amounts to
                  fund the Loan (or the relevant part thereof) for such Interest Period.

              

      

    

    
      
        	

              	(d)	
                Negotiation of alternative rate of interest:  If the Determination Notice is served after the Loan is borrowed, the Borrower and the Lender shall enter into negotiations (for a period of not more than 15 days after the date on
                  which the Lender serves the Determination Notice (the “Negotiation Period”) and shall use reasonable endeavours to agree, an alternative interest rate or (as the case may be) an
                  alternative basis for the Lender to fund or continue to fund the Loan during the Interest Period concerned. During the Negotiation Period the Lender shall set an Interest Period and interest rate representing the Cost of Funding of the
                  Lender in Dollars, in each case as determined by the Lender, of the Loan plus the Margin.

              

      

    

    
      
        	

              	(e)	
                Application of agreed alternative rate of interest: Any alternative interest rate or an alternative basis which is agreed during the Negotiation Period shall be binding on the Lender and
                  all Security Parties and shall take effect in accordance with the terms agreed.

              

      

    

    
      
        	

              	(e)	
                Alternative basis of interest in absence of agreement: If the Lender and the Borrowers will not enter into negotiations as provided in Clause 3.6(d)(i) or if an alternative interest rate or alternative basis is not agreed within
                  the Negotiation Period, and the relevant circumstances are continuing at the end of the Negotiation Period, then the Lender shall set the following Interest Period and an interest rate representing the cost of funding of the Lender in
                  Dollars of the Loan (or the relevant part thereof) plus the Margin for such Interest Period; if the relevant circumstances

              

      

    

    
      26

      
        

    

    are continuing at the end of the Interest Period so set by the Lender and the Borrowers and the Lender are unable to agree a suitable alternative basis, the Lender shall continue
      to set the following Interest Period and an interest rate representing its cost of funding in Dollars of the Loan (or the relevant part thereof) plus the Margin for such Interest Period until such time as the circumstances specified in Sub-Clause
      3.6(a) (Market Disruption Event) shall no longer exist, whereupon the normal rate of interest shall apply.

    
      
        	

              	(f)	
                Notice of prepayment: If the Borrowers do not agree with an interest rate set by the Lender under Clause 3.6(e) (Alternative basis of interest in
                      absence of agreement), the Borrowers may give the Lender not less than 5 Banking Days’ notice of its intention to prepay the Loan at the end of the interest period set by the Lender.

              

      

    

    
      
        	

              	(g)	
                Prepayment; termination of Commitment: A notice under Clause 3.6(f) (Notice of prepayment) shall
                  be irrevocable; and on the last Banking Day of the interest period set by the Lender, the Borrowers, if the Commitment has already been advanced, shall prepay (without premium or penalty) the Loan, together with accrued interest thereon
                  at the applicable rate plus the Margin and the balance of the Outstanding Indebtedness or, if the Commitment has not been advanced, the Commitment shall be reduced to zero and no Advance shall be made to the Borrowers under this Agreement
                  thereafter.

              

      

    

    
      
        	

              	(h)	
                Application of prepayment: The provisions of Clause 4 (Repayment-Prepayment) shall apply in
                  relation to the prepayment made hereunder.

              

      

    

    3.7          Replacement of Screen Rate

    
      
        	

              	(a)	
                If a Screen Rate Replacement Event has occurred in relation to the Screen Rate for dollars, any amendment or waiver which relates to:

              

      

    

    
      
        	

              	(i)	
                providing for the use of a Replacement Benchmark in relation to that currency in place of that Screen Rate ; and

              

      

    

    (ii)

    
      
        	

              	(1)	
                aligning any provision of any Finance Document to the use of that Replacement Benchmark;

              

      

    

    
      
        	

              	(2)	
                enabling that Replacement Benchmark to be used for the calculation of interest under this Agreement (including, without limitation, any consequential changes required to enable that Replacement Benchmark to be used for the purposes of
                  this Agreement);

              

      

    

    
      
        	

              	(3)	
                implementing market conventions applicable to that Replacement Benchmark;

              

      

    

    
      
        	

              	(4)	
                providing for appropriate fallback (and market disruption) provisions for that Replacement Benchmark; or

              

      

    

    
      
        	

              	(5)	
                adjusting the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of economic value from one Party to another as a result of the application of that Replacement Benchmark (and if any adjustment or method
                  for calculating any adjustment has been formally designated, nominated or

              

      

    

    
      27

      
        

    

    recommended by the Relevant Nominating Body, the adjustment shall be determined on the basis of that designation, nomination or recommendation),

    may be made with the consent of the Lender and the Borrowers.

    
      
        
          	4.	
                  REPAYMENT - PREPAYMENT

                

          
            

        

      

    

    
      
        	4.1	
                Repayment

              

      

    

    The Borrowers shall and it is expressly undertaken by the Borrowers to repay the Loan jointly and severally by (a) twenty (20) quarterly equal repayment instalments (the “Repayment Instalments”), the first of which to be repaid on the date falling three (3) months after the Drawdown Date, and each of the subsequent ones consecutively falling due for payment on
      each of the dates falling three (3) months after the immediately preceding Repayment Date with the last (the 20th) of such Repayment Instalments falling due for payment on the Final Maturity Date and (b) a balloon installment in the amount
      of Dollars Three million ($3,000,000) (the “Balloon Installment”), such Balloon Installment to be repaid together with the last (the 20th) Repayment Installment on the Final
      Maturity Date; subject to the provisions of this Agreement, each of the Repayment Instalments shall be in the amount of Dollars Four hundred thousand ($400,000);

    provided that (a) if the last Repayment Date would otherwise fall after the Final Maturity Date, the last Repayment Date shall be the Final Maturity Date, (b) there shall
      be no Repayment Dates after the Final Maturity Date, (c) on the Final Maturity Date the Borrowers shall also pay to the Lender any and all other monies then due and payable under this Agreement and the other Finance Documents, (d) if any part of the
      Commitment is not advanced to the Borrowers the amounts of the Repayment Instalments and the Balloon Instalment shall be reduced pro-rata, and (e) if any of the Repayment Instalments shall become due on a day which is not a Banking Day, the due date
      therefor shall be extended to the next succeeding Banking Day unless such Banking Day falls in the next calendar month, in which event such due date shall be the immediately preceding Banking Day.

    
      
        	4.2	
                Voluntary Prepayment

              

      

    

    The Borrowers shall have the right, to prepay, part or all of the Loan in each case together with all unpaid interest accrued thereon and all other sums of money whatsoever due
      and owing from the Borrowers to the Lender hereunder or pursuant to the other Finance Documents and all interest accrued thereon, provided that:

    
      
        	

              	(a)	
                the Lender shall have received from the Borrowers not less than five (5) days’ prior notice in writing (which shall be irrevocable) of their intention to make such prepayment and specify the account and the date on which such
                  prepayment is to be made;

              

      

    

    
      
        	

              	(b)	
                such prepayment may take place only on the last day of an Interest Period relating to the whole of the Loan;

              

      

    

    
      
        	

              	(c)	
                each such prepayment shall be equal to One hundred thousand Dollars ($100,000) or a whole multiple thereof or the balance of the Loan;

              

      

    

    
      
        	

              	(d)	
                any prepayment of less than the whole of the Loan will be applied in or towards pro-rata satisfaction of the outstanding Repayment Installments and the Balloon Installment;

              

      

    

    
      28

      
        

    

    
      
        	

              	(e)	
                every notice of prepayment shall be effective only on actual receipt by the Lender, shall be irrevocable and shall oblige the Borrowers to make such prepayment on the date specified;

              

      

    

    
      
        	

              	(f)	
                the Borrowers have provided evidence satisfactory to the Lender that any consent required by the Borrowers (or any of them) 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 Borrowers (or any of them) or any Security Party has been complied with;

              

      

    

    
      
        	

              	(g)	
                no amount prepaid may be re-borrowed; and

              

      

    

    
      
        	

              	(h)	
                the Borrowers may not prepay the Loan or any part thereof save as expressly provided in this Agreement;

              

      

    

    Provided always that if the Borrowers shall, subject always to Clause 4.2(a), make a prepayment on a Banking Day other than the
      last day of an Interest Period in respect of the whole of the Loan, it shall, in addition to the amount prepaid and accrued interest, pay to the Lender any amount which the Lender may certify is necessary to compensate the Lender for any Break Costs
      incurred by the Lender as a result of the making of the prepayment in question.

    
      
        	4.3	
                Compulsory Prepayment in case of Total Loss or sale of a Vessel

              

      

    

    
      
        	

              	(a)	
                Total Loss of a Vessel: On a Vessel becoming a Total Loss:

              

      

    

    
      
        	

              	(i)	
                prior to the advancing of the Commitment, the obligation of the Lender to make available the Commitment shall immediately cease and the Commitment shall be reduced to zero; or

              

      

    

    
      
        	

              	(ii)	
                in case the Commitment or, as the case may be, any part thereof has been already advanced, the amount of the Loan shall, on on the earlier of the date falling one hundred and twenty (120) days after the Total Loss Date and the date of
                  receipt by the Lender of the insurance proceeds relating to such Total Loss, be reduced by an amount equal to the Relevant Percentage (as hereinafter defined) of the Loan and the Borrowers shall thereupon be obliged to make such
                  repayment of the Relevant Percentage of the Loan.

              

      

    

    
      
        	

              	(b)	
                Sale or refinancing of a Mortgaged Vessel:  In the event of a sale or other disposal of any Mortgaged Vessel or in case of refinancing of a Mortgaged Vessel by another bank or financial institution or if the Borrowers request
                  the Lender’s consent for the discharge of the Mortgage registered on a Mortgaged Vessel the amount of the Loan shall be reduced by an amount equal to the Relevant Percentage (as hereinafter defined) and the Borrowers shall
                  thereupon be obliged to make such repayment of the Relevant Percentage of the Loan;

              

      

    

    AND for the purpose of this Clause 4.3 “Relevant Percentage” in relation to
      any Mortgaged Vessel, means an amount equal to the higher of:

    
      
        	

              	(i)	
                an amount equal to the proportion which the Market Value of such Mortgaged Vessel bears to the aggregate of the Market Values of both Mortgaged Vessels based on the valuations of such Vessels carried out under Clause 8.5(b) (Valuation of Vessels) immediately before the Total Loss occurred or the sale or other disposal of the relevant
                  Mortgaged Vessel, as the case may be occurs; and

              

      

    

    
      29

      
        

    

    

    

    
      
        	

              	(ii)	
                the amount which is required to be repaid to the Lender so that, after the payment to the Lender of the amount referred to in paragraph (i), the aggregate of (1) the Market Value of the Vessel remaining mortgaged to the Lender
                  determined in accordance with Clause 8.5(b) (Valuation of Vessels) immediately after the Total Loss or the
                  sale or other disposal of the relevant Vessel, as the case may be, and (2) the Pledged Deposit is at least equal to 125% of the amount of the Loan;

              

      

    

    provided, however, that if the relevant Mortgaged Vessel so lost or sold or otherwise disposed of is the last Mortgaged Vessel, then the full amount of the insurance or,
      as the case may be, the sale proceeds shall apply against repayment of the Outstanding Indebtedness and additionally the Borrowers shall pay to the Lender the balance (if any) of the Outstanding Indebtedness.

    
      
        	4.4	
                Application by the Lender in case of compulsory prepayment

              

      

    

    Any amount prepaid in accordance with Clause 4.3(a) (Total Loss of a Mortgaged Vessel), and Clause 4.3(b) (Sale of a Mortgaged Vessel) which is less than the whole
      of the Outstanding Indebtedness will be applied by the Lender in or towards pro rata satisfaction of the outstanding Repayment Instalments and the Balloon Instalment.

    
      
        	4.5	
                Amounts payable on prepayment

              

      

    

    Any prepayment of all or part of the Loan under this Agreement shall be made together with:

    
      
        	

              	(a)	
                accrued interest on the amount of the Loan to the date of such prepayment (calculated, in the case of a prepayment pursuant to Clause 3.6 (Market disruption
                      – Non Availability) at a rate equal to the aggregate of the Margin and the cost to the Lender of funding the Loan);

              

      

    

    
      
        	

              	(b)	
                any additional amount payable under Clause 5.3 (Gross Up);

              

      

    

    
      
        	

              	(c)	
                all other sums payable by the Borrowers to the Lender under this Agreement or any of the other Finance Documents including, without limitation, any amounts payable under Clause 10 (Indemnities - Expenses – Fees); and

              

      

    

    
      
        	

              	(d)	
                in relation to any prepayment made on a date other than an Interest Payment Date in respect of the whole of the Loan, it shall, in addition to the amount prepaid and accrued interest, pay to the Lender any amount which the Lender may
                  certify is necessary to compensate the Lender for any Break Costs incurred by the Lender as a result of the making of the prepayment in question.

              

      

    

    
      30

      
        

    

    
      
        
          	5.	
                  PAYMENTS, TAXES AND COMPUTATION

                

          
            

        

      

    

    
      
        	5.1	
                Payment - No set-off or Counterclaims

              

      

    

    
      
        	

              	(a)	
                The Borrowers hereby jointly and severally acknowledge that in performing their respective obligations under this Agreement, the Lender will be incurring liabilities to third parties in relation to the funding of amounts to the
                  Borrowers, such liabilities matching the liabilities of the Borrowers to the Lender and that it is reasonable for the Lender to be entitled to receive payments from the Borrowers gross on the due date in order that the Lender is put in a
                  position to perform its matching obligations to the relevant third parties.  Accordingly, all payments to be made by the Borrowers under this Agreement and/or any of the other Finance Documents shall be made in full, without any set-off
                  or counterclaim whatsoever and, subject as provided in Clause 5.3 (Gross Up), free and clear of any
                  deductions or withholdings or Governmental Withholdings whatsoever, as follows:

              

      

    

    
      
        	

              	(i)	
                in Dollars (except for charges or expenses which shall be paid in the currency in which they are incurred), not later than 10:00 a.m. (London time) on the Banking Day (in Piraeus, Athens, London and New York City) on which the relevant
                  payment is due under the terms of this Agreement; and

              

      

    

    
      
        	

              	(ii)	
                to such account and at such bank as the Lender may from time to time specify for this purpose by written notice to the Borrowers, reference: “Pikachu Shipping Co./Spetses Shipping Co./Loan Agreement dated: 22nd November, 2019” provided, however, that the Lender shall have the right to change the
                  place of account for payment, upon three (3) Banking Days’ prior written notice to the Borrowers.

              

      

    

    
      
        	

              	(b)	
                If at any time it shall become unlawful or impracticable for the Borrowers (or any of them) to make payment under this Agreement to the relevant account or bank referred to in Clause 5.1(a), the Borrowers may request and the Lender may
                  agree to alternative arrangements for the payment of the amounts due by the Borrowers to the Lender under this Agreement or the other Finance Documents.

              

      

    

    
      
        	5.2	
                Payments on Banking Days

              

      

    

    All payments due shall be made on a Banking Day.  If the due date for payment falls on a day which is not a Banking Day, that payment due shall be made on the immediately
      following Banking Day unless such Banking Day falls in the next calendar month, in which case payments shall fall due and be made on the immediately proceeding Banking Day.

    
      
        	5.3	
                Gross Up

              

      

    

    If at any time any law, regulation, regulatory requirement or requirement of any governmental authority, monetary agency, central bank or the like compels the Borrowers to make
      payment subject to Governmental Withholdings, the Borrowers shall pay to the Lender such additional amounts as may be necessary to ensure that there will be received by the Lender a net amount equal to the full amount which would have been received
      had payment not been made subject to such Governmental Withholdings. The Borrowers shall indemnify the Lender against any losses or costs incurred by the Lender by reason of any failure of the Borrowers to make any such deduction or withholding or by
      reason of any increased payment not being made on the due date for such payment. The Borrowers shall, not later than thirty (30) days after each deduction, withholding or payment of any Governmental Withholdings, forward to the Lender official
      receipts and any other documentary receipts and any other documentary evidence reasonably required by the

    
      31

      
        

    

    Lender in respect of the payment made or to be made of any deduction or withholding or Governmental Withholding. The obligations of the Borrowers under this provision shall,
      subject to applicable law, remain in force notwithstanding the repayment of the Loan and the payment of all interest due thereon pursuant to the provisions of this Agreement.

    
      
        	5.4	
                Mitigation

              

      

    

    If circumstances arise which would result in an increased amount being payable by the Borrower under this Clause then, without in any way limiting the rights of the Lender under
      this Clause, the Lender shall use reasonable endeavours to transfer the obligations, liabilities and rights under this Agreement and the Security Documents to another office or financial institution not affected by the circumstances, but the Lender
      shall be under no obligation to take any such action if in its opinion, to do so would or might:

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	5.5	
                Claw-back of Tax benefit

              

      

    

    If, following any such deduction or withholding as is referred to in Clause 5.3 (Gross-up) from any payment by the Borrower, the Lender shall receive or be granted a credit against or remission for any Taxes payable by it, the Lender shall, subject to the Borrower having made any increased payment in
      accordance with Clause 5.3 (Gross-up) and to the extent that the Lender can do so without prejudicing its retention of
      the amount of such credit or remission and without prejudice to the right of the Lender to obtain any other relief or allowance which may be available to it, reimburse the Borrower with such amount as the Lender shall in its absolute discretion
      certify to be the proportion of such credit or remission as will leave the Lender (after such reimbursement) in no worse position than it would have been in had there been no such deduction or withholding from the payment by the Borrower. Such
      reimbursement shall be made forthwith upon the Lender certifying that the amount of the credit or remission has been received by it, provided, always, that:

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                nothing in this Clause shall oblige the Lender to rearrange 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
                  any particular time or to disclose any information regarding its tax affairs and computations;

              

      

    

    
      
        	

              	(c)	
                nothing in this Clause shall oblige the Lender to make a payment which exceeds any repayment or credit in respect of tax on account of which the Borrower has made an increased payment under this Clause;

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(e)	
                without prejudice to the generality of the foregoing, the Borrower shall not, by virtue of this Clause 5.5, be entitled to enquire about the Lender’s tax affairs.

              

      

    

    
      32

      
        

    

    
      
        	5.6	
                Loan Account

              

      

    

    All sums advanced by the Lender to the Borrowers under this Agreement and all interest accrued thereon and all other amounts due under this Agreement from time to time and all
      repayments and/or payments thereof shall be debited and credited respectively to a separate loan account maintained by the Lender in accordance with its usual practices in the name of the Borrowers. The Lender may, however, in accordance with its
      usual practices or for its accounting needs, maintain more than one account, consolidate or separate them but all such accounts shall be considered parts of one single loan account maintained under this Agreement.  In case that a ship mortgage in the
      form of Account Current is granted as security under this Agreement, the account(s) referred to in this Clause shall be the Account Current referred to in such mortgage.

    
      
        	5.7	
                Computation

              

      

    

    All interest and other payments payable by reference to a rate per annum under this Agreement shall accrue from day to day and be calculated on the basis of actual days elapsed
      and a 360 day year.

    
      
        
          	6.	
                  REPRESENTATIONS AND WARRANTIES

                

          
            

        

      

    

    
      
        	6.1	
                Continuing representations and warranties

              

      

    

    The Borrowers jointly and severally represent and warrant to the Lender that;

    
      
        	

              	(a)	
                Due Incorporation/Valid Existence:  Each of the Borrowers and the other corporate Security Parties is duly incorporated and validly existing and in good standing under the laws of their respective countries of incorporation, and
                  have power to own their respective property and assets, to carry on their respective business as the same are now being lawfully conducted and to purchase, own, finance and operate vessels, or, as the case may be, manage vessels, as well
                  as to undertake the obligations which such Security Party has undertaken or shall undertake pursuant to the Finance Documents and does not have a place of business in the United Kingdom or the United States of America;

              

      

    

    
      
        	

              	(b)	
                Due Corporate Authority:  Each of the Borrowers has power to execute, deliver and perform its obligations under the Finance Documents to which is or is to be a party and to borrow the Commitment and each of the other Security
                  Parties has power to execute and deliver and perform its/his obligations under the Finance Documents to which it/he is or is to be a party; all necessary corporate, shareholder and other action has been taken to authorise the execution,
                  delivery and performance of the same and no limitation on the powers of the Borrowers (or any of them) to borrow will be exceeded as a result of borrowing the Loan;

              

      

    

    
      
        	

              	(c)	
                Litigation: no litigation or arbitration, tax claim or administrative proceeding (including action relating to any alleged or actual breach of the ISM Code and the ISPS Code) involving a potential liability of the Borrowers (or
                  any of them) or any other Security Party is current or pending or (to its or its officers’ knowledge) threatened against the Borrowers (or any of them) or any other Security Party, which, if adversely determined, would have a Material
                  Adverse Effect of any of them;

              

      

    

    
      
        	

              	(d)	
                No conflict with other obligations:  the execution and delivery of, the performance of its obligations under, and compliance with the provisions of, the Finance Documents by the relevant Security Parties will not (i) contravene
                  any existing

              

      

    

    
      33

      
        

    

    
    applicable law, statute, rule or regulation or any judgment, decree or permit to which the Borrowers (or any of them) or any other Security Party is subject, (ii) conflict with,
      or result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which the Borrowers (or any of them) or any other Security Party is a party or is subject to or by which it or any of its property is
      bound, (iii) contravene or conflict with any provision of the memorandum and articles of association/articles of incorporation/by-laws/statutes or other constitutional documents of the Borrowers (or any of them) or any other Security Party or
      (iv) result in the creation or imposition of or oblige the Borrowers (or any of them) or any other Security Party to create any Security Interest (other than a Permitted Security Interest) on any of the undertakings, assets, rights or revenues of the
      Borrowers (or any of them) or any other Security Party;

    
      
        	

              	(e)	
                Financial Condition:  the financial condition of the Borrowers (or any of them) and of the other Security Parties (other than the Approved Manager) has not suffered any material deterioration since that condition was last
                  disclosed to the Lender;

              

      

    

    
      
        	

              	(f)	
                No Immunity:  neither the Borrowers nor any other Security Party nor any of their respective assets are entitled to immunity on the grounds of sovereignty or otherwise from any legal action or proceeding (which shall include,
                  without limitation, suit, attachment prior to judgement, execution or other enforcement);

              

      

    

    
      
        	

              	(g)	
                Shipping Company:  each of the Borrowers and the Approved Manager is a shipping company involved in the owning or, as the case may be, managing of ships engaged in international voyages and earning profits in free foreign
                  currency;

              

      

    

    
      
        	

              	(h)	
                Licences/Authorisation:  every consent, authorisation, license or approval of, or registration with or declaration to, governmental or public bodies or authorities or courts required by any Security Party to authorise, or
                  required by any Security Party in connection with, the execution, delivery, validity, enforceability or admissibility in evidence of each of the Finance Documents or the performance by each Security Party of its obligations under the
                  Finance Documents to which such Security Party is or is to be a party has been obtained or made and is in full force and effect and there has been no default in the observance of any of the conditions or restrictions (if any) imposed in,
                  or in connection with, any of the same so far as the Borrowers are aware;

              

      

    

    
      
        	

              	(i)	
                Perfected Securities: the Finance Documents do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration as provided for in the Finance Documents):

              

      

    

    
      
        	

              	(i)	
                constitute the relevant Security Party's legal, valid and binding obligations enforceable against that Security Party in accordance with their respective terms (having the requisite corporate benefit which is legally and economically
                  sufficient); and

              

      

    

    
      
        	

              	(ii)	
                create legal, valid and binding Security Interests (having the priority specified in the relevant Finance Document) enforceable in accordance with their respective terms over all the assets and revenues intended to be covered to which
                  they, by their terms, relate, subject to any relevant insolvency laws affecting creditors' rights generally;

              

      

    

    
      
        	

              	(m)	
                No third party Security Interests: without limiting the generality of Clause 6.1(i) (Perfected Securities), at the time of the execution and delivery of each Finance Document to which each Borrower is a party:

              

      

    

    
      34

      
        

    

    
      
        	

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

              

      

    

    
      
        	

              	(ii)	
                no third party will have any Security Interests (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;

              

      

    

    
      
        	

              	(j)	
                No Notarisation/Filing/Recording:  save for the registration of any Mortgage in the appropriate shipping Registry, it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of this
                  Agreement or any of the other Finance Documents that it or they or any other instrument be notarised, filed, recorded, registered or enrolled in any court, public office or elsewhere or that any stamp, registration or similar tax or
                  charge be paid on or in relation to this Agreement or the other Finance Documents;

              

      

    

    
      
        	

              	(k)	
                Taxes paid: each Borrower has paid all taxes applicable to, or imposed on or in relation to that Borrower, its business or its Vessel; and

              

      

    

    
      
        	

              	(l)	
                Valid Choice of Law:  the choice of law agreed to govern this Agreement and/or any other Finance Document and the submission to the jurisdiction of the courts agreed in each of the Finance Documents are or will be, on execution
                  of the respective Finance Documents, valid and binding on each of the Borrowers and any other Security Party which is or is to be a party thereto.

              

      

    

    
      
        	6.2	
                Initial representations and warranties

              

      

    

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

    
      
        	

              	(a)	
                Direct obligations - Pari Passu: the obligations of the Borrowers under this Agreement are direct, general and unconditional obligations of the Borrowers and rank at least pari passu with all other present and future unsecured
                  and unsubordinated Financial Indebtedness of the Borrowers with the exception of any obligations which are mandatorily preferred by law;

              

      

    

    
      
        	

              	(b)	
                Information:  all information, accounts, statements of financial position, exhibits and reports furnished by or on behalf of any Security Party to the Lender in connection with the negotiation and preparation of this Agreement
                  and each of the other Finance Documents are true and accurate in all material respects and not misleading, do not omit material facts and all reasonable enquiries have been made to verify the facts and statements contained therein; there
                  are no other facts the omission of which would make any fact or statement therein misleading and, in the case of accounts and statements of financial position, they have been prepared in accordance with generally accepted international
                  accounting principles, standards and practices which have been consistently applied;

              

      

    

    
      
        	

              	(c)	
                No Default:  no Default has occurred and is continuing;

              

      

    

    
      
        	

              	(d)	
                No Taxes:  no Taxes are imposed by deduction, withholding or otherwise on any payment to be made by any Security Party under this Agreement and/or any other of the Finance Documents or are imposed on or by virtue of the
                  execution or delivery of this Agreement and/or any other of the Finance Documents or any document or instrument to be executed or delivered hereunder or thereunder.  In case that any Tax exists now or will be imposed in the future, it
                  will be borne by the Borrowers;

              

      

    

    
      35

      
        

    

    
      
        	

              	(e)	
                No Default under other Financial Indebtedness:  neither of the Borrowers nor any other Security Party (other than the Approved Manager) is in Default under any agreement relating to Financial Indebtedness to which it is a party
                  or by which it is or may be bound;

              

      

    

    
      
        	

              	(f)	
                Ownership/Flag/Seaworthiness/Class/Insurance of the Vessels: each Vessel on the Drawdown Date will be:

              

      

    

    
      
        	

              	(i)	
                in the absolute and free from Security Interests (other than in favour of the Lender) ownership of the Owner thereof who is and will on and after the Drawdown Date be the sole legal and beneficial owner of that Vessel;

              

      

    

    
      
        	

              	(ii)	
                registered in the name of the Owner thereof through the relevant Registry of the port of registry of the Flag State under the laws and flag of the Flag State;

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(iv)	
                classed with a Classification Society member of IACS, which has been approved by the Lender in writing and such classification is and will be free of all requirements and recommendations of such Classification Society;

              

      

    

    
      
        	

              	(v)	
                insured in accordance with the provisions of this Agreement and the relevant Mortgage;

              

      

    

    
      
        	

              	(vi)	
                managed by the Approved Manager; and

              

      

    

    
      
        	

              	(vii)	
                in full compliance with the ISM and the ISPS Code;

              

      

    

    
      
        	

              	(g)	
                No Charter: unless otherwise permitted in writing by the Lender, none of the Vessels will on or before the Drawdown Date or be subject to any charter or contract nor to any agreement to enter into any charter or contract which,
                  if entered into after the Drawdown Date would have required the consent of the Lender under any of the Finance Documents and there will not on or before the Drawdown Date be any agreement or arrangement whereby the Earnings of the
                  relevant Vessel may be shared with any other person;

              

      

    

    
      
        	

              	(h)	
                No Security Interests: neither the Vessel, nor its Earnings, Requisition Compensation or Insurances nor any other properties or rights which are, or are to be, the subject of any of the Security Documents nor any part thereof
                  will, on the Drawdown Date, be subject to any Security Interests other than Permitted Security Interests or otherwise permitted by the Finance Documents;

              

      

    

    
      
        	

              	(i)	
                Compliance with Environmental Laws and Approvals: eexcept as may already have been disclosed by the Borrowers in writing to, and acknowledged in writing by, the Lender:

              

      

    

    
      
        	

              	(i)	
                each Borrower and its Related Companies have complied with the provisions of all Environmental Laws;

              

      

    

    
      
        	

              	(ii)	
                each Borrower and its Related Companies have obtained all Environmental Approvals and are in compliance with all such Environmental Approvals; and

              

      

    

    
      36

      
        

    

    
      
        	

              	(iii)	
                neither the Borrowers nor any of their respective Related Companies have received notice of any Environmental Claim that the Borrowers or any of their respective Related Companies are not in compliance with any Environmental Law or any
                  Environmental Approval;

              

      

    

    
      
        	

              	(j)	
                No Environmental Claims: except as may already have been disclosed by the Borrowers in writing to, and acknowledged in writing by, the Lender:

              

      

    

    
      
        	

              	(i)	
                there is no Environmental Claim pending or, to the best of the Borrowers’ knowledge and belief, threatened against either Borrower or its Vessel or that Borrower’s Related Companies or any other Relevant Ship; and

              

      

    

    
      
        	

              	(ii)	
                there has been no emission, spill, release or discharge of a Material of Environmental Concern from the Vessels or any other Relevant Ship or any vessel owned by, managed or crewed by or chartered to either Borrower which could give
                  rise to an Environmental Claim;

              

      

    

    
      
        	

              	(k)	
                Copies true and complete: the copies of the Management Agreements delivered or to be delivered to the Lender pursuant to Clause 7.1 (Conditions
                      precedent to the execution of this Agreement) are, or will when delivered be, true and complete copies of such documents; such documents will when delivered constitute valid and
                  binding obligations of the parties thereto enforceable in accordance with their respective terms and there will have been no amendments or variations thereof or defaults thereunder;

              

      

    

    
      
        	

              	(l)	
                DOC and SMC: in relation to each Vessel the DOC applicable to the Approved Manager and the SMC applicable to that Vessel are presently in full effect;

              

      

    

    
      
        	

              	(m)	
                Compliance with ISM Code: each Vessel will comply on the Drawdown Date and the Operator complies with the requirements of the ISM Code and the SMC which has been or, as the case may be, shall be issued in respect of each
                  relevant Vessel shall remain valid on the Drawdown Date and thereafter throughout the Security Period;

              

      

    

    
      
        	

              	(n)	
                Compliance with ISPS Code:  each Borrower has a valid and current ISSC in respect of its Vessel  and it is and will be in full compliance with the ISPS Code; and the Operator complies with the requirements of the ISPS Code and
                  the ISSC in respect of each Vessel shall remain valid throughout the Security Period;

              

      

    

    
      
        	

              	(o)	
                Shareholdings:

              

      

    

    
      
        	

              	(i)	
                each Borrower is a fully owned Subsidiary of the Corporate Guarantor and  the shares in the Corporate Guarantor are legally and beneficially owned as disclosed to the Lender before signing of this Agreement; and

              

      

    

    
      
        	

              	(ii)	
                no change of control has been made directly or indirectly in the ownership, beneficial ownership, or management of each of the Borrowers and the Corporate Guarantor or any share therein or of the Vessel and  the voting rights in each
                  of the Borrowers and the Corporate Guarantor, but, so far as the Corporate Guarantor is concerned, the result of such change is that either  the controlling interest in the Corporate Guarantor ceases to remain in the Beneficial
                  Shareholder(s) disclosed to the Lender before signing of this Agreement and/or such Beneficial Shareholder(s) cease(s) to remain the largest single ultimate beneficial shareholder, unless otherwise permitted by the Lender; and

              

      

    

    
      37

      
        

    

    
      
        	

              	(p)	
                No US Tax Obligor: none of the Security Parties is a US Tax Obligor;

              

      

    

    
      
        	

              	(q)	
                Sanctions: neither any Security Party nor any other member of the Group:

              

      

    

    
      
        	

              	(i)	
                is a Sanctions Restricted Person;

              

      

    

    
      
        	

              	(ii)	
                owns or controls directly or indirectly a Sanctions Restricted Person; or

              

      

    

    
      
        	

              	(iii)	
                has a Sanctions Restricted Person serving as a director, officer or, to the best of its knowledge, employee; and

              

      

    

    
      
        	

              	(iv)	
                no proceeds of the Loan shall be made available, directly or to the knowledge of the Borrowers, or any of them (after reasonable enquiry) indirectly, to or for the benefit of a Sanctions Restricted Person contrary to Sanctions or for
                  transactions in a Sanctions Restricted Jurisdiction nor shall they be otherwise directly or indirectly, applied in a manner or for a purpose prohibited by Sanctions. EDW

              

      

    

    
      
        	6.3	
                Money laundering - acting for own account

              

      

    

    Each of the Borrowers further jointly and severally represents and warrants and confirms to the Lender that it is the beneficiary for each part of the Loan made or to be made
      available to it and it will promptly inform the Lender by written notice if it is not, or ceases to be, the beneficiary and notify the Lender in writing of the name and the address of the new beneficiary/beneficiaries; each of the Borrowers is aware
      that under applicable money laundering provisions, it has an obligation to state for whose account the Loan is obtained; each of the Borrowers confirms that, by entering into this Agreement and the other Finance Documents, it is acting on its own
      behalf and for its own account and it is obtaining the Loan for its own account. In relation to the borrowing by the Borrowers of the Loan, the performance and discharge of its obligations and liabilities under this Agreement or any of the other
      Finance Documents and the transactions and other arrangements effected or contemplated by this Agreement or any of the Documents to which each of the Borrowers is a party, it is acting for its own account and that the foregoing will not involve or
      lead to a contravention of any law, official requirement or other regulatory measure or procedure which has been implemented to combat “money laundering” (as defined in Article 1 of the Directive (91/308/EEC)
      of the Council of the European Community).

    
      
        	6.4	
                Representations Correct

              

      

    

    At the time of entering into this Agreement all above representations and warranties or any other information given by the Borrowers and/or the Approved Manager to the Lender are
      true and accurate.

    
      
        	6.5	
                Repetition of Representations and Warranties

              

      

    

    The representations and warranties in this Clause 6 (except in relation to the representations and warranties in Clause 6.2 (Initial representations and warranties)) shall be deemed to be repeated by the Borrower:

    
      
        	

              	(a)	
                on the date of service of the Drawdown Notice;

              

      

    

    
      
        	

              	(b)	
                on the Drawdown Date; and

              

      

    

    
      
        	

              	(c)	
                on each Interest Payment Date throughout the Security Period,

              

      

    

    
      38

      
        

    

    as if made with reference to the facts and circumstances existing on each such day.

    
      
        
          	7.	
                  CONDITIONS PRECEDENT

                

          
            

        

      

    

    
      
        	7.1	
                Conditions precedent to the execution of this Agreement

              

      

    

    The obligation of the Lender to make the Commitment or any part thereof available shall be subject to the condition that the Lender, shall have received, not later than two (2)
      Banking Days before the day on which the Drawdown Notice in respect of the Commitment or such part thereof is given, the following documents and evidence in form and substance satisfactory to the Lender:

    
      
        	

              	(a)	
                Constitutional Documents: a duly certified true copy of the Articles of Incorporation and By-Laws or the Memorandum and Articles of Association, or of any other constitutional documents, as the case may be, of each corporate
                  Security Party;

              

      

    

    
      
        	

              	(b)	
                Certificates of incumbency: a recent certificate of incumbency of each corporate Security Party issued by the appropriate authority and/or at the discretion of the Lender signed by the secretary or a director of each of them
                  respectively, stating the corporate body which binds every one of them, the officers and/or the directors of each of them and containing specimens of their signatures;

              

      

    

    
      
        	

              	(c)	
                Shareholding: a statement to the Lender confirming the identity of the Beneficial Shareholder(s) of each of the Borrowers and the Corporate Guarantor in line with “know your customer”
                  procedures of the Lender for opening account purposes, who should be acceptable in all respects to the Lender; in the event that the Lender agrees (at its sole discretion) that a Security Party may have a corporate shareholder, the
                  conditions set out in Sub-clauses (a) (Constitutional Documents), (b) (Certificates of incumbency), (d) (Resolutions) and (e) (Powers of Attorney) of this Clause 7.1 shall apply
                  (mutatis mutandis) to such corporate shareholder;

              

      

    

    
      
        	

              	(d)	
                Resolutions: minutes of separate meetings of the directors and (if required) shareholders of each of the Borrowers and the Corporate Guarantor at which there was approved (inter alia) the entry into, execution, delivery and
                  performance of this Agreement, the other Finance Documents and any other documents executed or to be executed pursuant hereto or thereto to which the relevant Security Party is or is to be a party;

              

      

    

    
      
        	

              	(e)	
                Powers of Attorney: the original of any power(s) of attorney and any further evidence of the due authority of any person signing this Agreement, the other Finance Documents, and any other documents executed or to be executed
                  pursuant hereto or thereto on behalf of any corporate person;

              

      

    

    
      
        	

              	(f)	
                Consents: evidence that all necessary licences, consents, permits and authorisations (including exchange control ones) have been obtained by any Security Party for the execution, delivery, validity, enforceability, admissibility
                  in evidence and the due performance of the respective obligations under or pursuant to this Agreement and the other Finance Documents;

              

      

    

    
      
        	

              	(g)	
                Fees:  evidence that the fees referred to in Clause 10.14 (Arrangement Fee) have been paid in
                  full;

              

      

    

    
      
        	

              	(h)	
                DOC:  a copy of the DOC applicable to the Approved Manager certified as true and in effect;

              

      

    

    
      39

      
        

    

    
      
        	

              	(i)	
                Other documents: any other documents or recent certificates or other evidence which would be required by the Lender in relation to each Security Party evidencing that the relevant Security Party has been properly established,
                  continues to exist validly and is in good standing;

              

      

    

    
      
        	

              	(j)	
                Management Agreements – Assignable Charterparty: a copy of each of the following documents certified as true and complete by the legal counsel of the Borrowers:

              

      

    

    
      
        	

              	(i)	
                each Management Agreement evidencing that the relevant Vessel is managed by the Approved Manager on terms acceptable to the Lender; and

              

      

    

    
      
        	

              	(ii)	
                any Assignable Charterparty; and

              

      

    

    
      
        	

              	(k)	
                Operating Accounts: evidence that the Operating Accounts have been duly opened and all mandate forms and other legal documents required for the opening of an account under any applicable law, as well as signature cards and
                  properly adopted authorizations have been duly delivered to and have been accepted by the compliance department of the Lender.

              

      

    

    
      
        	7.2	
                Conditions precedent to the making of the Commitment

              

      

    

    The obligation of the Lender to advance the Commitment (or any part thereof) is subject to the further condition that the Lender shall have received prior to
      the drawdown or, where this is not possible, simultaneously with the drawdown of the Commitment or the relevant part thereof or the Drawdown Date:

    
      
        	

              	(a)	
                Conditions precedent: evidence that the conditions precedent set out in Clause 7.1 (Conditions precedent to the execution of this Agreement) remain fully satisfied;

              

      

    

    
      
        	

              	(b)	
                Drawdown Notice: the Drawdown Notice duly executed, issued and delivered to the Lender as provided in Clause 2.2 (Drawdown Notice and commitment to
                      borrow);

              

      

    

    
      
        	

              	(c)	
                Security Documents:  each of the Security Documents duly executed and where appropriate duly registered with the Registry or any other competent authority (as required);

              

      

    

    
      
        	

              	(d)	
                Title and no Security Interests:  evidence that, prior to or simultaneously with the drawdown, each Vessel will be duly registered in the ownership of the Owner thereof with the Registry
                  and under the laws and flag of the Flag State free from any Security Interests save for those in favour of the Lender and otherwise as contemplated herein;

              

      

    

    
      
        	

              	(e)	
                Insurances:  evidence in form and substance satisfactory to the Lender that each Vessel has been insured in accordance with the insurance requirements provided for in this Agreement and the Security Documents, to be followed by
                  full copies of cover notes, policies, certificates of entry or other contracts of insurance and irrevocable authority is hereby given to the Lender at any time at its discretion to obtain copies of the policies, certificates of entry or
                  other contracts of insurance from the insurers and/or obtain any information in relation to the Insurances relating to that Vessel;

              

      

    

    
      
        	

              	(f)	
                Insurers’ confirmations: evidence in form and substance satisfactory to the Lender that each Vessel has been insured in accordance with the insurance requirements provided for in this Agreement and the other Security Documents,
                  including a MII,

              

      

    

    
      40

      
        

    

    together with an opinion from insurance consultants (appointed by the Lender at the Borrowers’ expense) as to the adequacy of the insurances effected or to be effected in respect
      of each Vessel, to be followed by full copies of cover notes, policies, certificates of entry or other contracts of insurance and irrevocable authority is hereby given to the Lender at any time at its discretion to obtain copies of the policies,
      certificates of entry or other contracts of insurance from the insurers and/or obtain any information in relation to the Insurances relating to each Vessel;

    
      
        	

              	(g)	
                MII: the MII shall have been effected by the Lender, but at the expense of the Borrowers as provided in Clause 10.9 (MII costs);

              

      

    

    
      
        	

              	(h)	
                Access to class records: due authorisation from the Drawdown Date in form and substance satisfactory to the Lender authorising the Lender to have access and/or obtain any copies of class records or other information at its
                  discretion from the Classification Society of the relevant Vessel, provided however, that the Lender shall not exercise such right unless and until an Event of Default has occurred and is continuing;

              

      

    

    
      
        	

              	(i)	
                Notices of assignment:  duly executed notices of assignment in the form prescribed by the Security Documents;

              

      

    

    
      
        	

              	(j)	
                Mortgage registration; evidence that each Mortgage on or before the Drawdown Date will be registered against the relevant Vessel through the Registry under the laws and flag of the Flag
                  State;

              

      

    

    
      
        	

              	(k)	
                Trading certificates: upon issuance, copies of the trading certificates of each Vessel certified as true and complete by the legal counsel of the Borrowers evidencing the same to be valid and in force;

              

      

    

    
      
        	

              	(l)	
                Class confirmation:  evidence from the Classification Society that on the Drawdown Date each Vessel is classed with the class notation (referred to in the Mortgage relative thereto), with
                  the Classification Society or to a similar standard with another classification society of like standing to be specifically approved by the Lender and remains free from any overdue requirements or recommendations affecting her class;

              

      

    

    
      
        	

              	(m)	
                Trim and stability booklet:  if so requested by the Lender, an extract of the trim and stability booklet certifying the lightweight of each Vessel, certified as true and complete by the legal counsel of the Borrowers;

              

      

    

    
      
        	

              	(n)	
                DOC and SMC: (i) a certified copy of the DOC issued to the Operator of each Vessel and (ii) a certified copy of the SMC for each Vessel;

              

      

    

    
      
        	

              	(o)	
                ISM Code Documentation: copies of such applications for ISM Code Documentation as the Lender may by written notice to the Borrowers have requested not later than two (2) days before the Drawdown Date certified as true and
                  complete in all material respects by the Borrowers and the Approved Manager;

              

      

    

    
      
        	

              	(p)	
                ISPS Code compliance:

              

      

    

    
      
        	

              	(i)	
                evidence satisfactory to the Lender that each Vessel is subject to a ship security plan which complies with the ISPS Code (such as proof that a security plan has been submitted to the recognized organisation for approval); and

              

      

    

    
      
        	

              	(ii)	
                a copy, certified as a true and complete copy of the ISSC for each Vessel

              

      

    

    
      41

      
        

    

    delivered to the Lender on the Drawdown Date;

    
      
        	

              	(r)	
                Valuation:  charter free valuation of each Vessel satisfactory to the Lender, to be obtained by the Lender, at the Borrowers’ expense, not earlier than twenty (20) days prior to the expected Drawdown Date, made on the basis and
                  in the manner specified in Clause 8.5(b) (Valuation of Vessels);

              

      

    

    (s)          Insurance Letters:  the Insurance Letters duly executed;

    
      
        	

              	(t)	
                Confirmations from process agents: confirmation from any agents nominated in this Agreement and elsewhere in the other Finance Documents for the acceptance of any notice or service of process, that they consent to such
                  nomination;

              

      

    

    
      
        	

              	(u)	
                Acknowledgement of Receipt: a receipt in writing in form and substance satisfactory to the Lender including an acknowledgement and admission of the Borrowers and the Corporate Guarantor to the effect that the Commitment or
                  relevant part thereof (as the case may be) was drawn by the Borrowers and a declaration by the Borrowers and the Corporate Guarantor that all conditions precedent have been fulfilled, that there is no Event of Default and that all the
                  representations and warranties are true and correct;

              

      

    

    
      
        	

              	(v)	
                Legal opinions: draft opinion from lawyers appointed by the Lender as to all the matters referred to in Clause 6.1(a) (Due Incorporation/Valid
                      Existence) and Clause 6.1(b) (Due Corporate Authority) and

                  all such aspects of law as the Lender shall deem relevant to this Agreement and the other Finance Documents and any other documents executed pursuant hereto or thereto and any further legal or other expert opinion as the Lender at its
                  sole discretion may require;

              

      

    

    
      
        	

              	(w)	
                Flag State opinion:  draft opinion of legal advisers to the Lender on matters of the laws of the Flag State of the relevant Vessel;

              

      

    

    
      
        	

              	(x)	
                Condition survey report: if the Lender so requires, a satisfactory to the Lender physical condition survey report on each Vessel together with a comprehensive record inspection from a surveyor appointed by the Lender, at the
                  Borrowers’ expense.

              

      

    

    
      
        	7.3	
                No change of circumstances

              

      

    

    The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that at the time of the giving of a Drawdown Notice and on
      advancing the Commitment:

    
      
        	

              	(a)	
                Representations and warranties: the representations and warranties set out in Clause 6 (Representations and warranties) and in each of the other Finance Documents are true and correct on and as of each such time as if each was made with respect to the facts and circumstances existing at such time;

              

      

    

    
      
        	

              	(b)	
                No Event of Default:  no Event of Default shall have occurred and be continuing or would result from the drawdown;

              

      

    

    
      
        	

              	(c)	
                No change:  the Lender shall be satisfied that (i) there has been no change in the control of any of the Borrowers and the Corporate Guarantor from that disclosed to the Lender at the negotiation of this Agreement and no change
                  directly or indirectly in the ownership, beneficial ownership, or management of the Borrowers (or either of them), each of which is a fully owned Subsidiary of the Corporate Guarantor, or

              

      

    

    
      42

      
        

    

    any share therein or of the Vessels (or either of them), but, so far as the Corporate Guarantor is concerned, the result of such change is that either the control in the
      Corporate Guarantor ceases to remain in the Beneficial Shareholder(s) disclosed to the Lender before signing of this Agreement and/or such Beneficial Shareholder(s) cease(s) to remain the largest single ultimate beneficial shareholder of the
      Corporate Guarantor and (ii)  there has been no Material Adverse Change in the financial condition of any Security Party which (change) might, in the sole opinion of the Lender, be detrimental to the interests of the Lender, provided, however,
        that such ‘control’ (as defined in Clause 1.4 (Construction of certain terms) of the Loan Agreement) of each of the Borrowers and
      Guarantor will remain with such Beneficial Shareholder(s) throughout the remainder of the Security Period; and

    
      
        	

              	(d)	
                No Market Disruption Event:  none of the circumstances contemplated by Clause 3.6 (Market disruption – Non Availability) has occurred and is continuing.

              

      

    

    
      
        	7.4	
                Know your customer and money laundering compliance

              

      

    

    The obligation of the Lender to advance the Commitment or any part thereof is subject to the further condition that the Lender, prior to or simultaneously with the drawdown,
      shall have received, to the extent required by any change in applicable law and regulation or any changes in the Lender’s own internal guidelines since the date on which the applicable documents and evidence were delivered to the Lender pursuant to
      Clause 8.9 (Know your customer and money laundering compliance), such further documents and evidence as the Lender
      shall require to identify the Borrowers and the other Security Parties and any other persons involved or affected by the transaction(s) contemplated by this Agreement.

    
      
        	7.5	
                Further documents

              

      

    

    Without prejudice to the provisions of this Clause 7 each of the Borrowers hereby undertakes with the Lender to make or procure to be made such amendments and/or additions to any
      of the documents delivered to the Lender in accordance with this Clause 7 and to execute and/or deliver to the Lender or procure to be executed and/or delivered to the Lender such further documents as the Lender and its legal advisors may reasonably
      require to satisfy themselves that all the terms and requirements of this Agreement have been complied with.

    
      
        	7.6	
                Waiver of conditions precedent

              

      

    

    The conditions specified in this Clause 7 are inserted solely for the benefit of the Lender and may be waived by the Lender in whole or in part and with or without conditions.
      Without prejudice to any of the other provisions of this Agreement, in the event that the Lender, in its sole and absolute discretion, makes the Commitment available to the Borrowers prior to the satisfaction of all or any of the conditions referred
      to in Clauses 7.1 (Conditions precedent to the execution of this Agreement), 7.2 (Conditions precedent to the making of the Commitment) and 7.3 (No change of circumstances), each of the Borrowers hereby covenants and undertakes to satisfy or procure the satisfaction of such condition or conditions by no later than fourteen (14) days after the Drawdown Date or within such longer
      period as the Lender may, in its sole and absolute discretion, agree to or specify.

    
      43

      
        

    

    
      
        
          	8.	
                  COVENANTS

                

          
            

        

      

    

    
      
        	8.1	
                General

              

      

    

    Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and
      discharge of the Outstanding Indebtedness, it will:

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                Notification of litigation:

              

      

    

    
      
        	

              	(i)	
                provide the Lender with details of any legal or administrative action involving that Borrower, the Vessel owned by it, any bareboat charterer, any bareboat guarantor, the Earnings or the Insurances in respect of that Vessel, any
                  Security Party or the Approved Manager, as soon as such action is instituted or it becomes apparent to that Borrower that it is likely to be instituted, unless it is clear that the legal or administrative action cannot be considered
                  material in the context of any Finance Document, and each Borrower shall procure that all reasonable measures are taken to defend any such legal or administrative action; and

              

      

    

    
      
        	

              	(ii)	
                and shall procure that any bareboat charterer shall supply to the Lender promptly, to the extent permitted by law, details of any claim, action, suit, proceedings or investigation against it with respect to Sanctions by any Sanctions
                  Authority;

              

      

    

    
      
        	

              	(c)	
                Consents and licenses: without prejudice to Clauses 6 (Representations and warranties) and 7 (Conditions precedent), obtain or cause to be obtained, maintain in full force and effect and comply in all
                  material respects with the conditions and restrictions (if any) imposed in, or in connection with, every consent, authorisation, license or approval of governmental or public bodies or authorities or courts and do or cause to be done, all
                  other acts and things which may from time to time be necessary or desirable under applicable law for the continued due performance of all the obligations of the Security Parties under each of the Finance Documents;

              

      

    

    
      
        	

              	(d)	
                Use of Loan proceeds: use the Loan exclusively for the purposes specified in Clause 1.1 (Amount and Purpose);

              

      

    

    
      
        	

              	(e)	
                Pari passu: ensure that its obligations under this Agreement shall, without prejudice to the provisions of this Clause 8.1, at all times rank at least pari passu with all its other present and future unsecured and unsubordinated
                  Financial Indebtedness with the exception of any obligations which are mandatorily preferred by law and not by contract;

              

      

    

    
      
        	

              	(f)	
                Financial statements: furnish the Lender with (i) audited annual consolidated financial statements of the Corporate Guarantor audited by the auditors acceptable to the Lender and (ii)  management prepared accounts of the
                  Borrowers attested by its financial officer, in each case prepared in accordance with internationally

              

      

    

    
      44

      
        

    

    accepted accounting principles and practices consistently applied in respect of each Financial Year as soon as practicable but not later than 180 days after the end of the
      Financial Year to which they relate, commencing with Financial Year ending on 31st December, 2019;

    
      
        	

              	(g)	
                Provision of further information: promptly, when requested, provide the Lender with such financial and other information and accounts relating to the business, undertaking, assets, liabilities, revenues, financial condition
                  commitments, operations or affairs of the Borrowers and the Corporate Guarantor and such other further general information relating to each Security Party as the Lender from time to time may reasonably require;

              

      

    

    
      
        	

              	(h)	
                Financial Information: provide the Lender from time to time as the Lender may reasonably request with information on the financial conditions, cash flow position, commitments and operations of the Borrowers and the Corporate
                  Guarantor  including cash flow analysis and voyage accounts of each Vessel with a breakdown of income and running expenses showing net trading profit, trade payables and trade receivables, such financial details to be certified by an
                  authorized signatory of the Borrowers as to their correctness;

              

      

    

    
      
        	

              	(i)	
                Information on the employment of the Vessels:  provide the Lender from time to time as the Lender may request with information on the employment of each Vessel, as well as on the terms and conditions of any charterparty,
                  contract of affreightment, agreement or related document in respect of the employment of each Vessel, such information to be certified by one of the directors of the Borrowers as to their correctness;

              

      

    

    
      
        	

              	(j)	
                Pledged Deposit: procure that upon drawdown and at all times during the Security Period, the Borrowers shall maintain in interest bearing accounts with the Lender an amount of Dollars Five hundred thousand ($500,000) ($250,000
                  per Vessel) (which for the purpose of this Agreement shall be called herein the “Pledged Deposit”), which amount will remain pledged in favour of the Lender throughout the
                  Security Period; provided however that in case of sale or refinancing of either Vessel the amount of the Pledged Deposit will be reduced to $250,000;

              

      

    

    
      
        	

              	(k)	
                Banking operations: ensure that all banking operations in connection with the Vessels are carried out through the Lending Office of the Lender;

              

      

    

    
      
        	

              	(l)	
                Subordination: ensure that all Financial Indebtedness of the Borrowers to their respective shareholders is fully subordinated to the rights of the Lender under the Finance Documents, all
                  in a form acceptable to the Lender, and to subordinate to the rights of the Lender under the Finance Documents any Financial Indebtedness issued to it by its shareholders, all in a form acceptable to the Lender;

              

      

    

    
      
        	

              	(m)	
                Obligations under Finance Documents:  duly and punctually perform each of the obligations expressed to be assumed by it under the Finance Documents;

              

      

    

    
      
        	

              	(n)	
                Payment on demand: pay to the Lender on demand any sum of money which is payable by the Borrowers to the Lender under this Agreement but in respect of which it is not specified in any other Clause when it is due and payable;

              

      

    

    
      
        	

              	(o)	
                Compliance with Laws and Regulations: comply, or procure compliance with all laws or regulations relating to it and/or its Vessel, its ownership, operation and management or to the business of such Borrower and cause this
                  Agreement and the other Finance Documents to comply with and satisfy all the requirements and

              

      

    

    
      45

      
        

    

    formalities established by the applicable laws to perfect this Agreement and the other Finance Documents as valid and enforceable Finance Documents;

    
      
        	

              	(p)	
                Maintenance of Security Interests:

              

      

    

    
      
        	

              	(i)	
                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

              

      

    

    
      
        	

              	(ii)	
                without limiting the generality of paragraph (p) above, at its own cost, promptly register, file, record or enrol any Finance Document with any court or authority in all Relevant Jurisdictions, pay any stamp, registration or similar
                  tax in all Relevant Jurisdictions in respect of any Finance Document, give any notice or take any other step which may be or has 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;

              

      

    

    
      
        	

              	(q)	
                Registered Office: maintain its registered office at the address referred to in the Recitals; and will not establish, or do anything as a result of which it would be deemed to have, a place of business in the United Kingdom or
                  the United States of America;

              

      

    

    
      
        	

              	(r)	
                Compliance with Covenants: duly and punctually perform all obligations under this Agreement and the other Finance Documents; and

              

      

    

    
      
        	

              	(s)	
                No US Tax Obligor: procure that, unless otherwise agreed by the Lender, no Security Party shall become a US Tax Obligor.

              

      

    

    
      
        	8.2	
                Negative undertakings

              

      

    

    Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and
      discharge of the Outstanding Indebtedness, without the prior written consent of the Lender, it will:

    
      
        	

              	(a)	
                Negative pledge:

              

      

    

    
      
        	

              	(i)	
                not permit any Security Interest (other than a Permitted Security Interest) to subsist, arise or be created or extended over all or any part of its present or future undertakings, assets, rights or revenues to secure or prefer any
                  present or future Financial Indebtedness or other liability or obligation of the Borrowers (or any of them) or any other person other than in the normal course of its business of owning, financing and operating vessels and owning or
                  acquiring ship-owning companies; and

              

      

    

    
      
        	

              	(ii)	
                not cease to hold the legal title to, and own the entire beneficial interest in its Vessel, its Insurances and Earnings, free from all Security Interests and other interests and rights of every kind, except for those created by the
                  Finance Documents and the effect of the assignments contained in the relevant General Assignment and any other Finance Documents;

              

      

    

    
      
        	

              	(b)	
                No further Financial Indebtedness: not incur any further Financial Indebtedness nor authorise or accept any capital commitments (other than that normally associated with the day to day operations and trading of the Borrowers and
                  any Financial

              

      

    

    
      46

      
        

    

    Indebtedness that is subordinated (in writing with the Lender’s prior written consent, at its discretion,  and pursuant to a subordination agreement acceptable to the Lender) to
      all Financial Indebtedness incurred under the Finance Documents) nor enter into any agreement for payment on deferred terms or hire agreement;

    
      
        	

              	(c)	
                No merger:  not merge or consolidate with any other person;

              

      

    

    
      
        	

              	(d)	
                No disposals:

              

      

    

    
      
        	

              	(i)	
                not sell, transfer, abandon, lend, lease or otherwise dispose of or cease to exercise direct control over any part (being either alone or when aggregated with all other disposals falling to be taken into account pursuant to this Clause
                  8.2(d) material in the opinion of the Lender in relation to the undertakings, assets, rights and revenues of the Borrowers) of its present or future undertaking, assets, rights or revenues (otherwise than by transfers, sales or disposals
                  for full consideration in the ordinary course of operations and trading) whether by one or a series of transactions related or not; and

              

      

    

    
      
        	

              	(ii)	
                not transfer, lease or otherwise dispose of 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;

              

      

    

    
      
        	

              	(e)	
                No acquisitions: not acquire any further assets other than its Vessel and rights arising under contracts entered into by or on behalf of that Borrower other than in the ordinary course of its business of owning, operating and
                  chartering its Vessel;

              

      

    

    
      
        	

              	(f)	
                No other business: not undertake any type of business other than its current business of owning, financing and operating vessels and owning or acquiring ship-owning companies;

              

      

    

    
      
        	

              	(g)	
                No investments: not make any investments in any person, asset, firm, corporation, joint venture or other entity;

              

      

    

    
      
        	

              	(h)	
                No other obligations: not incur any liability or obligations except liabilities and obligations arising under the Finance Documents or contracts entered into in the ordinary course of its business of owning, operating,
                  maintaining, repairing and chartering its Vessel (and for the purposes of this Clause 8.2(h) fees to be paid pursuant to the Management Agreement in respect of its Vessel shall be considered as permitted obligations under the Finance
                  Documents);

              

      

    

    
      
        	

              	(i)	
                No borrowing: not incur any Borrowed Money except for Borrowed Money pursuant to the Finance Documents;

              

      

    

    
      
        	

              	(j)	
                No repayment of borrowings: not repay the principal of, or pay interest on or any other sum in connection with, any of its Borrowed Money except for Borrowed Money pursuant to the Finance Documents;

              

      

    

    
      
        	

              	(k)	
                No Payments: unless otherwise provided in this Agreement and the other Finance Documents (and then only to the extent expressly permitted by the same) not pay out any funds (whether out of the Earnings or out of moneys collected
                  under the relevant General Assignment and/or the other Finance Documents or not) to any person except in connection with the administration of such Borrower and the operation and/or maintenance and/or repair and/or trading of its Vessel;

              

      

    

    
      
        	

              	(l)	
                No guarantees: not issue any guarantees or indemnities or otherwise become

              

      

    

    
      47

      
        

    

    directly or contingently liable for the obligations of any person, firm, or corporation except pursuant to the Finance Documents and except for, in the case of such Borrowers,
      guarantees or indemnities from time to time required in the ordinary course of its business or by any protection and indemnity or war risks association with which its Vessel is entered, guarantees required to procure the release of its Vessel from
      any arrest, detention, attachment or levy or guarantees or undertakings required for the salvage of its Vessel;

    
      
        	

              	(m)	
                No loans:  not make any loans or advances to, or any investments in any person, firm, corporation, joint venture or other entity including (without limitation) any loan or advance or grant any credit (save for normal trade
                  credit in the ordinary course of business) to any officer, director, stockholder or employee or any other company managed by the Approved Manager directly or through the Approved Managers of the Vessels or agree to do so, provided,
                    always, that any loans of its shareholders to either Borrower shall be fully subordinated to that Borrower's obligations under this Agreement and the other Finance Documents;

              

      

    

    
      
        	

              	(n)	
                No securities:  not permit any Financial Indebtedness of the Borrowers (or any of them) to any person (other than the Lender) to be guaranteed by any person (save, in the case of either Borrower, for guarantees or indemnities
                  from time to time required in the ordinary course of business or by any protection and indemnity or war risks association with which its Vessel is entered, guarantees required to procure the release of its Vessel from any arrest,
                  detention, attachment or levy or guarantees or undertakings required for the salvage of its Vessel);

              

      

    

    
      
        	

              	(o)	
                No dividends or distribution: not declare or pay any dividends or other distribution under any name or description upon any of the issued shares or otherwise dispose of any of its present or future assets, undertakings, rights
                  or revenues (which are all assigned to the Lender) to any of the shareholders of either Borrower without the prior written consent of the Lender, provided that, subject to (i) no Event of Default having occurred and being
                  continuing and (ii) no Event of Default resulting from the payment of such dividends or the making of any other form of distribution, a Borrower shall be entitled to declare or make payments of any dividends without the prior written
                  approval of the Lender;

              

      

    

    
      
        	

              	(p)	
                No Subsidiaries: not form or acquire any Subsidiaries;

              

      

    

    
      
        	

              	(q)	
                No change of business structure: not change the nature, organisation and conduct of its business or carry on any business other than the business carried on at the date of this Agreement;

              

      

    

    
      
        	

              	(r)	
                No change of legal structure: (such consent not be unreasonably withheld) ensure that none of the documents defining the constitution of such Borrower shall be materially (in the Lender’s opinion) altered in any manner
                  whatsoever;

              

      

    

    
      
        	

              	(s)	
                No Security Interest on assets: other than Permitted Security Interests, not allow any part of its undertaking, property, assets or rights, whether present or future, to be mortgaged, charged, pledged, used as a lien or
                  otherwise encumbered without the prior written consent of the Lender;

              

      

    

    
      
        	

              	(t)	
                No change of control: ensure that no change shall be made directly or indirectly in the ownership, beneficial ownership, control or management of any of the Borrowers and the Corporate Guarantor or any share therein, or any of
                  the Vessels, as a result of which the ultimate legal and beneficial ownership of the Beneficial

              

      

    

    
      48

      
        

    

    Shareholder(s) disclosed to the Lender at the negotiation of this Agreement and confirmed in writing on or before the date hereof is materially changed, but so far as the
      Corporate Guarantor is concerned the result of such change is that either the control in the Corporate Guarantor ceases to remain in the Beneficial Shareholder(s) disclosed to the Lender before signing of this Agreement and/or such Beneficial
      Shareholder(s) cease(s) to remain the largest single ultimate beneficial shareholder of the Corporate Guarantor, provided, however, that such ‘control’ (as defined in Clause 1.4 (Construction of certain terms) of the Loan Agreement) of each of the Borrowers and Guarantor will remain with such Beneficial Shareholder(s) throughout the remainder of the Security Period; and

    
      
        	

              	(u)	
                No Master Agreement Derivatives:  not enter into any transaction in a derivative of any description whatsoever.

              

      

    

    
      
        	8.3	
                Undertakings concerning the Vessels

              

      

    

    Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and
      discharge of the Outstanding Indebtedness, it will:

    
      
        	

              	(a)	
                Conveyance on default: where a Vessel is (or is to be) sold in exercise of any power conferred on the Lender, execute, forthwith upon request by the Lender, such form of conveyance of that Vessel as the Lender may require;

              

      

    

    
      
        	

              	(b)	
                Mortgage: execute, and procure the registration of the relevant Mortgage over each Vessel under the laws and flag of the Flag State immediately upon the drawdown of the Loan on the Drawdown Date;

              

      

    

    
      
        	

              	(c)	
                Chartering: not let or agree its Vessel to be let:

              

      

    

    
      
        	

              	(i)	
                on demise charter for any period; or

              

      

    

    
      
        	

              	(ii)	
                without the prior written consent of the Lender (such consent not to be unreasonably withheld) by any Assignable Charterparty; or

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(iv)	
                otherwise than on bona fide arm’s length terms at the time when its Vessel is fixed; or

              

      

    

    
      
        	

              	(v)	
                under any pooling or sharing agreement in respect thereof on terms whereby any and all the Earnings of either Vessel are pooled or shared with any other person;

              

      

    

    
      
        	

              	(d)	
                Laid-up: not de-activate or lay up its Vessel;

              

      

    

    
      
        	

              	(e)	
                No amendment to Assignable Charterparty: not waive or fail to enforce, any Assignable Charterparty to which it is a party or any of its provisions, and will promptly notify the Lender of
                  any material amendment or supplement to any Assignable Charterparty;

              

      

    

    
      
        	

              	(f)	
                Approved Manager:  not without the prior written consent of the Lender (such consent not to be unreasonably withheld) agree or appoint a manager of either Vessel other than the Approved Manager;

              

      

    

    
      49

      
        

    

    
      
        	

              	(g)	
                Ownership/Management/Control:  ensure that each Vessel will be registered on the Drawdown Date in the ownership of the Owner thereof under the laws of the Flag State and thereafter ensure that each Vessel will maintain her
                  registration, ownership, management, control and beneficial ownership;

              

      

    

    
      
        	

              	(h)	
                Class: ensure that each Vessel will remain in class free of overdue recommendations or average damage affecting class or permitted by the Classification Society and provide the Lender on demand with copies of all class and
                  trading certificates of each Vessel;

              

      

    

    
      
        	

              	(i)	
                Insurances: ensure that all Insurances (as defined in the relevant Mortgage/General Assignment) of each Vessel is maintained and comply with all insurance requirements specified in this Agreement and in the relevant Mortgage and
                  in case of failure to maintain either Vessel so insured, authorise the Lender (and such authorisation is hereby expressly given to the Lender) to have the right but not the obligation to effect such Insurances on behalf of the Owner (and
                  in case that either Vessel remains in port for an extended period) to effect port risks insurances at the cost of the Borrowers which, if paid by the Lender, shall be Expenses; the Lender shall be entitled to obtain once per year at
                  Borrowers’ expense an opinion from insurance consultants (appointed by the Lender at the Borrowers’ expense) as to the adequacy of the insurances effected or to be effected in respect of each Vessel, Provided that (i) if an Event
                  of Default has occurred and is continuing or (ii) if there has been any change in the insurance placement within such year or (iii) if there has been a Material Adverse Change of the financial condition of any of the insurers of any of
                  the Vessels at the Lender’s sole opinion, the Lender shall be entitled to obtain at Borrowers’ expense such opinion from such insurance consultants at any time it deems necessary;

              

      

    

    
      
        	

              	(j)	
                Transfer/Security Interests:  not without the prior written consent of the Lender agrees either Vessel or any share therein to be sold or otherwise disposed of or create or agree to create or permit to subsist any Security
                  Interest over the Vessels (or either of them) (or any share or interest therein) other than Permitted Security Interests;

              

      

    

    
      
        	

              	(k)	
                Not imperil Flag, Ownership, Insurances: ensure that each Vessel is maintained and trades in conformity with the laws of the Flag State, of its owning company or of the nationality of the officers, the requirements of the
                  Insurances and nothing is done or permitted to be done which could endanger the flag of such Vessel or its unencumbered (other than Security Interests in favour of the Lender and Security Interests permitted by this Agreement) ownership
                  or its Insurances;

              

      

    

    
      
        	

              	(l)	
                Mortgage Covenants: ensure that each Owner always comply with all the covenants provided for in the Mortgage registered over its Vessel;

              

      

    

    
      
        	

              	(m)	
                No assignment of Earnings:  ensure that neither of the Owners will assign or agree to assign otherwise than to the Lender the Earnings or any part thereof;

              

      

    

    
      
        	

              	(n)	
                No sharing of Earnings: ensure that neither of the Owners:

              

      

    

    
      
        	

              	(i)	
                will enter into any agreement or arrangement for the sharing of any Earnings; and/or

              

      

    

    
      
        	

              	(ii)	
                will enter into any agreement or arrangement for the postponement of any date on which any Earnings are due or the reduction of the amount of any Earnings or otherwise for the release or adverse alteration of any right of

              

      

    

    
      50

      
        

    

    such Owner to any Earnings; and/or

    
      
        	

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

              

      

    

    
      
        	

              	(o)	
                Assignable Charterparty:  ensure and procure that in the event of its Vessel being employed under an Assignable Charterparty:

              

      

    

    
      
        	

              	(i)	
                execute and deliver to the Lender within fifteen (15) days of signing thereof a specific assignment of all its rights, title and interest in and to such charter and any charter guarantee in the form of a Charterparty Assignment and a
                  notice of such assignment addressed to the relevant charterer;

              

      

    

    
      
        	

              	(ii)	
                ensure (on a best effort basis) that the relevant charterer and any charter guarantor agree to acknowledge to the Lender the specific assignment of such charter and charter guarantee by executing an acknowledgement substantially in the
                  form included in the relevant Charterparty Assignment;

              

      

    

    
      
        	

              	(iii)	
                in the case where such charter is a demise charter, the relevant charterer to undertake to the Lender (1) to comply with all of that Borrower's undertakings with regard to the employment, insurances, operation, repairs and maintenance
                  of its Vessel contained in this Agreement, the relevant Mortgage and the relevant General Assignment and (2) to provide (inter alia) an assignment of its interest in the insurances of its Vessel
                  in the form of a tripartite agreement in form and substance acceptable to the Lender, to be made between the Lender, that Borrower and such charterer;

              

      

    

    
      
        	

              	(p)	
                No freight derivatives: not enter into or agree to enter into any freight derivatives or any other instruments which have the effect of hedging forward exposures to freight derivatives without the Lender’s consent;

              

      

    

    
      
        	

              	(q)	
                Vessels’ inspection: permit the Lender (i) by surveyors or other persons appointed by it on its behalf to board its Vessel (and, subject to no Event of Default having occurred and being
                  continuing, no more than once a year (but in any event without interfering with the ordinary trading of its Vessel) for the purpose of inspecting her condition or for the purpose of satisfying
                  itself with regard to proposed or executed repairs and to afford all proper facilities for such inspections and (ii) at any time by financial or insurance advisors or other persons appointed by the Lender to review the operating and
                  insurance records of its Vessel and the Owner thereof and the costs (as supported by vouchers) of any and all such valuations shall be borne by the Borrowers;

              

      

    

    
      
        	

              	(r)	
                Trading: use its Vessel only for civil merchant trading;

              

      

    

    
      
        	

              	(s)	
                Compliance with ISM Code:  procure that the Approved Manager and any Operator will:

              

      

    

    
      
        	

              	(i)	
                comply with and ensure that the Vessels and any Operator by no later than the Drawdown Date complies with the requirements of the ISM Code, including (but not limited to) the maintenance and renewal of valid certificates pursuant
                  thereto throughout the Security Period;

              

      

    

    
      
        	

              	(ii)	
                immediately inform the Lender if there is any threatened or actual withdrawal of either Owner, the Approved Manager’s or an Operator’s DOC or the SMC in respect of either Vessel; and

              

      

    

    
      51

      
        

    

    
      
        	

              	(iii)	
                promptly inform the Lender upon the issue to the relevant Owner, the Approved Manager or any Operator of a DOC and to a Vessel of an SMC or the receipt by either Owner, the Approved Manager or any Operator of notification that its
                  application for the same has been realised;

              

      

    

    
      
        	

              	(t)	
                Compliance with ISPS Code:  procure that the Approved Manager or any Operator will:

              

      

    

    
      
        	

              	(i)	
                maintain at all times a valid and current ISSC in respect of the relevant Vessel;

              

      

    

    
      
        	

              	(ii)	
                immediately notify the Lender in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC in respect of the relevant Vessel; and

              

      

    

    
      
        	

              	(iii)	
                procure that the relevant Vessel will comply at all times with the ISPS Code;

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(v)	
                Compliance with Environmental Laws: comply with, and procure that all Environmental Affiliates  of any Relevant Party comply with, all Environmental Laws including without limitation, requirements relating to manning and
                  establishment of financial responsibility and to obtain and comply with, and procure that all Environmental Affiliates such Relevant Party obtain and comply with, all Environmental Approvals and to notify the Lender forthwith:

              

      

    

    
      
        	

              	(i)	
                of any Environmental Claim made against any of the Vessels (or any of them), any Relevant Ship and/or their respective Owners; and

              

      

    

    
      
        	

              	(ii)	
                upon becoming aware of any incident which may give rise to an Environmental Claim and to keep the Lender advised in writing of the relevant Owner’s response to such Environmental Claim on such regular basis and in such detail as the
                  Lender shall require.

              

      

    

    
      
        	

              	(w)	
                War Risk Insurance cover: in the event of hostilities in any part of the world (whether war is declared or not), it will not cause or permit its Vessel to enter or trade to any zone which
                  is declared a war zone by any government or by its Vessel's war risks insurers unless the prior written consent of the Lender has been given and the relevant Owner has (at its expense) effected any special, additional or modified
                  insurance cover which the Lender may approve or require.

              

      

    

    
      
        	8.4	
                Validity of Securities - Earnings - Taxes etc.

              

      

    

    Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and
      discharge of the Outstanding Indebtedness, it will:

    
      
        	

              	(a)	
                Validity: ensure and procure that all governmental or other consents required by law and/or any other steps required for the validity, enforceability and legality of this Agreement and the other Finance Documents are maintained
                  in full force and effect and/or appropriately taken;

              

      

    

    
      52

      
        

    

    
      
        	

              	(b)	
                Earnings: ensure and procure that, unless and until directed by the Lender otherwise (i) all the Earnings of its Vessel shall be paid to its Operating Account and (ii) the persons from whom the Earnings are from time to time due
                  are irrevocably instructed to pay them to the said Operating Account or to such account in the name of such Borrower as shall be from time to time determined by the Lender in accordance with the provisions hereof and of the relevant
                  Security Documents;

              

      

    

    
      
        	

              	(c)	
                Taxes:  pay all Taxes, assessments and other governmental charges imposed on the Borrowers (or any of them) when the same fall due, except to the extent that the same are being contested in good faith by appropriate proceedings
                  and adequate reserves have been set aside for their payment if such proceedings fail;

              

      

    

    
      
        	

              	(d)	
                Additional Documents: from time to time and within fifteen (15) days after the request of the Lender, execute and deliver to the Lender or procure the execution and delivery to the Lender of all such documents as shall be deemed
                  desirable at the reasonable discretion of the Lender for giving full effect to this Agreement, and for perfecting, protecting the value of or enforcing any rights or securities granted to the Lender under any one or more of this
                  Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto and in case that any conditions precedent (with the Lender’s consent) have not been fulfilled prior to the Drawdown Date, such conditions
                  shall be complied with within fifteen (15) Banking Days after the Lender’s written request (unless the Lender agrees otherwise in writing) and failure to comply with this covenant shall be an Event of Default.

              

      

    

    
      
        	8.5	
                Secured Value to Security Requirement ratio - Valuation of the Vessels

              

      

    

    
      
        	

              	(a)	
                Security shortfall - Additional Security: If at any time during the Security Period, the Security Value shall be less than the Security Requirement, the Lender may give notice to the Borrowers requiring that such deficiency be
                  remedied and then the Borrowers shall (unless the sole cause of such deficiency is the Total Loss of the relevant Vessel and the Owner thereof in full compliance with its obligations in relation to such Total Loss) either:

              

      

    

    
      
        	

              	(i)	
                prepay (in accordance with Clause 4.2 (Voluntary prepayment) (but without regard to the requirement for
                  ten (10) days’ notice) within a period of thirty (30) days of the date of receipt by the Borrowers of the Lender’s said notice such sum in Dollars as will result in the Security Requirement after such prepayment (taking into account any
                  other repayment of the Loan made between the date of the notice and the date of such prepayment) being at least equal to the Security Value; or

              

      

    

    
      
        	

              	(ii)	
                within thirty (30) days of the date of receipt by the Borrowers of the Lender’s said notice constitute to the satisfaction of the Lender such further security for the Loan as shall be acceptable to the Lender having a value for
                  security purposes (as determined by the Lender in its absolute discretion) at the date upon which such further security shall be constituted which, when added to the Security Value, shall not be less than the Security Requirement as at
                  such date. Such additional security shall be constituted by:

              

      

    

    
      
        	

              	aa)	
                additional pledged cash deposits in favor of the Lender in an amount equal to such shortfall with the Lender and in an account and manner to be determined by the Lender; and/or

              

      

    

    
      53

      
        

    

    
      
        	

              	bb)	
                any other security acceptable to the Lender at its absolute discretion to be provided in a manner determined by the Lender.

              

      

    

    The provisions of Clauses 4.3 (Compulsory Prepayment in case of Total Loss or sale of a Vessel) and 4.5 (Amounts payable on prepayment) shall apply to prepayments under Clause 8.5(a)(i).

    
      
        	

              	(b)	
                Valuation of Vessels: Each of the Vessels shall, for the purposes of this Clause 8.5, be valued in Dollars at least once a year and at any time that the Lender may reasonably require by one (1) Approved Shipbroker appointed by
                  the Lender, (such valuation to be addressed to the Lender and made without, unless required by the Lender, physical inspection, and on the basis of a sale for prompt delivery for cash at arm’s length on normal commercial terms as between
                  a willing buyer and a willing seller, without taking into account the benefit of any Assignable Charterparty or other engagement concerning the relevant Vessel, as may be applicable. The Lender and the Borrowers agree to accept the
                  valuation made by the Approved Shipbroker appointed as aforesaid as conclusive evidence of the Market Value of the relevant Vessel at the date of such valuation and that such valuation shall constitute the Market Value of the relevant
                  Vessel for the purposes of this Clause 8.5.

              

      

    

    The value of the relevant Vessel determined in accordance with the provisions of this Clause 8.5 shall be binding upon the Borrowers and the Lender until such time as any further
      such valuations shall be obtained.

    
      
        	

              	(c)	
                Information: The Borrowers undertake to the Lender to provide the Lender and any such Approved Shipbrokers such information concerning the relevant Vessel and its condition as such Approved Shipbrokers may reasonably require for
                  the purpose of making any such valuation.

              

      

    

    
      
        	

              	(d)	
                Costs: All costs in connection with the Lender obtaining any valuation of each of the Vessels referred to in Clause 8.5(b) (Valuation of Vessels), and any valuation of any additional security for the purposes of ascertaining the Security Value at any time or necessitated by the Borrowers electing to constitute additional security pursuant to
                  Clause 8.5(a)(ii) and all legal and other expenses incurred by the Lender in connection with any matter arising out of this Clause 8.5 shall be borne by the Borrowers.

              

      

    

    
      
        	

              	(e)	
                Valuation of additional security: For the purpose of this Clause 8.5, 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 assigning any reason thereto and if such security consists of a vessel shall be that shown by a valuation complying with the requirements of Clause 8.5(b) (Valuation of Vessels) (whereas the costs shall be borne by the Borrowers in accordance with Clause 8.5(d) (Costs)) or if the additional security is in the form of a cash deposit full credit shall be given for such cash deposit on a Dollar for Dollar basis.

              

      

    

    
      
        	

              	(f)	
                Documents and evidence: In connection with any additional security provided in accordance with this Clause 8.5, the Lender shall be entitled to receive such evidence and documents of the kind referred to in Clause 7.1 (Conditions precedent to the execution of this Agreement) as may in the Lender’s opinion be appropriate and such
                  favourable legal opinions as the Lender shall in its absolute discretion require.

              

      

    

    
      54

      
        

    

    
      
        	8.6	
                Sanctions

              

      

    

    
      
        	

              	(a)	
                Without limiting Clause 8.7 (Compliance with laws etc.), each of the Borrowers hereby undertakes with
                  the Lender that, from the date of this Agreement and until the date that the Outstanding Indebtedness is paid in full, it shall ensure that none of the Vessels:

              

      

    

    
      
        	

              	(i)	
                will be used by or for the benefit of a Sanctions Restricted Person contrary to Sanctions; and/or

              

      

    

    
      
        	

              	(ii)	
                will be used in trading in any Sanctions Restricted Jurisdiction or in any manner contrary to Sanctions; and/or

              

      

    

    
      
        	

              	(iii)	
                will be traded in any manner which would trigger the operation of any sanctions limitation or exclusion clause (or similar) in the Insurances.

              

      

    

    
      
        	

              	(b)	
                Each Borrower shall:

              

      

    

    
      
        	

              	(i)	
                not directly or to its knowledge (after reasonable enquiry) indirectly use or permit to be used all or any part of the proceeds of the Loan, or lend, contribute or otherwise make available such proceeds directly or to its knowledge
                  (after reasonable enquiry) indirectly, to any person or entity (i) to finance or facilitate any activity or transaction of or with any Sanctions Restricted Person contrary to Sanctions or in any Sanctions Restricted Jurisdiction, or (ii)
                  in any other manner that would result in a violation of any Sanctions by any Party;

              

      

    

    
      
        	

              	(ii)	
                shall not fund all or part of any payment under the Loan out of proceeds derived directly or to its knowledge (after reasonable enquiry) indirectly from any activity or transaction with a Sanctions Restricted Person contrary to
                  Sanctions or in a Sanctions Restricted Jurisdiction or which would otherwise cause any party to be in breach of any Sanctions; and

              

      

    

    
      
        	

              	(iii)	
                procure that no proceeds to its knowledge (after reasonable enquiry) from activities or business with a Sanctions Restricted Person contrary to Sanctions or in a Sanctions Restricted Jurisdiction are credited to any of the Accounts.

              

      

    

    
      
        	8.7	
                Compliance with laws etc.

              

      

    

    Each of the Borrowers shall:

    
      
        	

              	(a)	
                comply, or procure compliance with all laws or regulations by the relevant Security Party:

              

      

    

    
      
        	

              	(i)	
                relating to its respective business generally; and

              

      

    

    
      
        	

              	(ii)	
                relating to its Vessel, its ownership, employment, operation, management and registration including, but not limited to, the ISM Code, the ISPS Code, all Environmental Laws and the laws of the Flag State; and

              

      

    

    
      
        	

              	(iii)	
                all Sanctions;

              

      

    

    
      
        	

              	(b)	
                obtain, comply with and do all that is necessary to maintain in full force and effect any Environmental Approvals; and

              

      

    

    
      55

      
        

    

    
      
        	

              	(c)	
                without limiting paragraph (a) above, not employ its Vessel nor allow its employment, operation or management in any manner contrary to any law or regulation including, but not limited to, the ISM Code, the ISPS Code and all
                  Environmental Laws which has or is likely to have a Material Adverse Effect on any of the Security Parties.

              

      

    

    
      
        	8.8	
                Covenants for the Securities Parties

              

      

    

    Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and
      discharge of the Outstanding Indebtedness, it will ensure and procure that all other Security Parties and each of them duly and punctually comply, with the covenants in Clauses 8.1 (General), 8.3 (Undertakings concerning the Vessels), 8.4 (Validity of Securities - Earnings - Taxes etc.), 8.5 (Secured Value to Security Requirement ratio - Valuation of the Vessels), 8.6 (Sanctions) and 8.7 (Compliance with laws etc.) which are applicable to them mutatis mutandis.

    
      
        	8.9	
                Know your customer and money laundering compliance

              

      

    

    Each of the Borrowers, jointly and severally with the other Borrower, undertakes with the Lender that, from the date of this Agreement and until the full and complete payment and
      discharge of the Outstanding Indebtedness, it will provide the Lender, or procure the provision of, such documentation and other evidence as the Lender shall from time to time require, based on applicable law and regulations from time to time and the
      Lender’s own internal guidelines from time to time to identify the each of the Borrowers and the other Security Parties, including the disclosure in writing of the ultimate legal and beneficial owner or owners of such entities, and any other persons
      involved or affected by the transaction(s) contemplated by this Agreement in order for the Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks
      under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

    
      
        
          	9.	
                  EVENTS OF DEFAULT

                

          
            

        

      

    

    
      
        	9.1	
                Events

              

      

    

    There shall be an Event of Default if:

    
      
        	

              	(a)	
                Non‐payment: any Security Party fails to pay any sum payable by it under any of the Finance Documents at the time, in the currency and in the manner stipulated in the Finance Documents (and so that, for this purpose, sums
                  payable on demand shall be treated as having been paid at the stipulated time if paid within five (5) Banking Days of demand and other sums due shall be treated as having been paid at the stipulated time if paid within two (2) Banking
                  Days of its falling due); or

              

      

    

    
      
        	

              	(b)	
                Breach of Insurance and certain other obligations: any of the Borrowers fails to obtain and/or maintain the Insurances (as defined in, and in accordance with the requirements of, the Finance Documents) or if any insurer in
                  respect of such Insurances cancels the Insurances or disclaims liability by reason, in either case, of mis‐statement in any proposal for the Insurances or for any other failure or default on the part of the Borrowers or any other person
                  or the Borrowers commit any breach of or omit to observe any of the obligations or undertakings expressed to be assumed by them under Clause 8 (Covenants); or

              

      

    

    
      
        	

              	(c)	
                Breach of other obligations: any Security Party commits any breach of or omits to

              

      

    

    
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    observe any of its obligations or undertakings expressed to be assumed by it under any of the Finance Documents (other than those referred to in Clauses 9.1(a) (Non‐payment) and 9.1(b) (Breach of
          Insurance and certain other obligations) above) and, in respect of any such breach or omission which in the opinion of the Lender is capable of remedy, such action as the Lender may require
      shall not have been taken within fifteen (15) days of the Lender notifying in writing the relevant Security Party of such default and of such required action; or

    
      
        	

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

              

      

    

    
      
        	

              	(e)	
                Cross‐default: any Financial Indebtedness (other than under the Finance Documents) of any of the Borrowers and the Corporate Guarantor (in each case related to an amount exceeding the
                  amount of Five hundred thousand Dollars ($500,000) is not paid when due (unless contested in good faith) or any Financial Indebtedness (other than under the Finance Documents) of any of the Borrowers and the Corporate Guarantor becomes (whether by declaration or automatically in accordance with the relevant agreement or instrument constituting the same) due and payable prior to the date when it would otherwise have become due
                  (unless as a result of the exercise by that Borrower or the Corporate Guarantor of a voluntary right of prepayment), or the Lender becomes entitled to declare any such Financial Indebtedness due and
                  payable or any facility or commitment available to any of the Borrowers and the Corporate Guarantor relating to such Financial Indebtedness is withdrawn, suspended or cancelled by reason of any
                  default (however described) of the person concerned, unless the relevant Security Party shall have satisfied the Lender that such withdrawal, suspension or cancellation will not affect or prejudice in any way the relevant Security Party’s
                  ability to pay its debts as they fall due, or any guarantee given by any of the Borrowers and the Corporate Guarantor in respect of such Financial Indebtedness is not honoured when due and called
                  upon; or

              

      

    

    
      
        	

              	(f)	
                Legal process: any judgment or order made or commenced in good faith by a person against any of the Borrowers and the Corporate Guarantor is not stayed or complied with within thirty (30)
                  days or a good faith creditor attaches or takes possession of, or a distress, execution, sequestration or other bonafide process is levied or enforced upon or sued out against, any of the
                  undertakings, assets, rights or revenues of any of the Borrowers and the Corporate Guarantor and is not discharged, or bail is lodged in respect thereof, within thirty (30) days within ; or

              

      

    

    
      
        	

              	(g)	
                Insolvency: any Security Party becomes insolvent or stops or suspends making payments (whether of principal or interest) with respect to all or any class of its debts or announces an intention to do so; or

              

      

    

    
      
        	

              	(h)	
                Reduction or loss of capital: a meeting is convened by any of the Borrowers and the Corporate Guarantor for the purpose of passing any resolution to purchase, reduce or redeem any of its share capital; or

              

      

    

    
      
        	

              	(i)	
                Winding up: any petition is presented or other step is taken for the purpose of winding up any Security Party or an order is made or resolution passed for the winding up of any Security Party or a notice is issued convening a
                  meeting for the purpose of passing any such resolution; or

              

      

    

    
      57

      
        

    

    
      
        	

              	(j)	
                Administration: any bonafide petition is presented or other step is taken for the purpose of the appointment of an administrator of any Security Party or the Lender believes that any
                  such petition or other step is imminent or an administration order is made in relation to any Security Party; or

              

      

    

    
      
        	

              	(k)	
                Appointment of receivers and managers: any administrative or other receiver is appointed of any Security Party or any part of its assets and/or undertaking or any other steps are taken to enforce any Security Interest over all
                  or any part of the assets of any such Security Party; or

              

      

    

    
      
        	

              	(l)	
                Compositions: any steps are taken, or negotiations commenced, by any Security Party or by any of its creditors with a view to the general readjustment or rescheduling of all or part of its indebtedness or to proposing any kind
                  of composition, compromise or arrangement involving such company and any of its creditors provided, however, that if the Borrowers are able to provide such evidence as is satisfactory in all respects to the Lender that such
                  rescheduling will not relate to any payment default or anticipated default the same shall not constitute an Event of Default; or

              

      

    

    
      
        	

              	(m)	
                Analogous proceedings: there occurs, in relation to any Security Party, in any country or territory in which any of them carries on business or to the jurisdiction of whose courts any part of their assets is subject, any event
                  which, in the opinion of the Lender, appears in that country or territory to correspond with, or have an effect equivalent or similar to, any of those mentioned in Clauses 9.1(f) (Legal process) to (l) (Compositions) (inclusive) or any Security Party otherwise becomes subject, in any such country or territory, to the operation of any law relating to insolvency, bankruptcy or liquidation; or

              

      

    

    
      
        	

              	(n)	
                Cessation of business: any Security Party suspends or ceases or threatens to suspend or cease to carry on its business; or

              

      

    

    
      
        	

              	(o)	
                Seizure: all or a material part of the undertaking, assets, rights or revenues of, or shares or other ownership interests in, any Security Party are seized, nationalised, expropriated or compulsorily acquired by or under the
                  authority of any government; and the respective Security Party fails to procure for its release within a period of  thirty (30) days; or

              

      

    

    
      
        	

              	(p)	
                Consents:  any consent, authorisation, licence or approval of, or registration with or declaration to, governmental or public bodies or authorities or courts required by any Security Party to authorise or otherwise in connection
                  with, the execution, delivery, validity, enforceability or admissibility in evidence of this Agreement and/or any of the other Security Documents or the performance by the Security Parties of their respective obligations under this
                  Agreement and/or any of the other Finance Documents is modified in a manner unacceptable to the Mortgagee or is not granted or is revoked or terminated or expires and is not renewed or otherwise ceases to be in full force and effect; or

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(r)	
                Unlawfulness: it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the covenants and obligations expressed to be assumed by it in any

              

      

    

    
      58

      
        

    

    of the Finance Documents or for the Lender to exercise the rights or any of them vested in it under any of the Finance Documents or otherwise; or

    
      
        	

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

              

      

    

    
      
        	

              	(t)	
                Security Interests enforceable: any Security Interest (other than Permitted Security Interest) in respect of any of the property (or part thereof) which is the subject of any of the Finance Documents becomes enforceable; or

              

      

    

    
      
        	

              	(u)	
                Arrest: any of the Vessels is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained in exercise or purported exercise of any possessory lien or other claim or otherwise taken from the possession of
                  its Owner and such Owner shall fail to procure the release of such Vessel within a period of thirty (30) days thereafter; or

              

      

    

    
      
        	

              	(v)	
                Registration:  the registration of any of the Vessels under the laws and flag of the relevant Flag State is cancelled or terminated without the prior written consent of the Lender; if the
                  Vessel is only provisionally registered on the Drawdown Date and is not permanently registered under the laws and flag of the Flag State at least fifteen (15) days prior to the deadline for completing such permanent registration; or

              

      

    

    
      
        	

              	(w)	
                Unrest: the Flag State of a Vessel becomes involved in hostilities or civil war or there is a seizure of power in such Flag State by unconstitutional means if, in any such case, (a) such event could in the opinion of the Lender
                  reasonably be expected to have a Material Adverse Effect on the security constituted by any of the Finance Documents and (b) the relevant Owner has failed within thirty (30) days from receiving notice from the Lender to this effect (which
                  notice shall have been sent following consultation with the Borrowers) to (i) delete the relevant Vessel from its Flag State and (ii) re-register the relevant Vessel under another Flag State approved by the Lender in its sole discretion
                  through a relevant Registry, in each case, at the Borrowers’ cost and expense; or

              

      

    

    
      
        	

              	(x)	
                Environment: any Relevant Party and/or any of their respective Environmental Affiliates fails to comply with any Environmental Law or any Environmental Approval or any of the Vessels or any Relevant Ship is involved in any
                  incident which gives rise or which may give rise to any Environmental Claim, if in any such case, such non compliance or incident or the consequences thereof could (in the reasonable opinion of the Lender) be expected to have a
                  material adverse change as described hereinbelow under paragraph (u); or

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(z)	
                Beneficial Ownership:  there has been a change of control directly or indirectly in the Borrowers (or either of them) or any share therein or of either Vessel or of the Corporate Guarantor as a result of which any of the
                  Borrowers and the Corporate Guarantor ceases to remain in the control of the Beneficial Shareholders disclosed to the Lender prior to the date of this Agreement or either Vessel ceases to remain

              

      

    

    
      59

      
        

    

    100% owned by the Owner thereof; or

    
      
        	

              	(aa)	
                Change of Management: either Vessel ceases to be managed by the Approved Manager (for any reason other than the reason of a Total Loss or sale of such Vessel) without the approval of the Lender and the Owner thereof fails to
                  appoint another Approved Manager prior to the termination of the mandate with the previous Approved Manager; or

              

      

    

    
      
        	

              	(bb)	
                Deviation of Earnings: any Earnings of any of the Vessels are not paid to the relevant Operating Account for any reason whatsoever (other than with the Lender’s prior written consent); or

              

      

    

    
      
        	

              	(cc)	
                ISM Code and ISPS Code: (without prejudice to the generality of Clause 9.1(c) (Breach of other obligations)) for any reason whatsoever the provisions of Clause 8.3(t) (Compliance with ISM Code) and

                  Clause 8.3(u) (Compliance with ISPS Code) are not complied with and the relevant Vessel ceases to comply
                  with the ISM Code or, as the case may be, the ISPS Code; or

              

      

    

    
      
        	

              	(dd)	
                Operating Account: any moneys are withdrawn from the Operating Accounts (or any of them) other than in accordance with Clauses 8.4(b) (Earnings) and 13 (Operating Accounts); or

              

      

    

    
      
        	

              	(n)	
                Material events: any other event or events (whether related or not) occurs or circumstance arises which constitutes a Material Adverse Change, from the position applicable as at the date of this Agreement, in the business,
                  affairs or condition (financial or otherwise) of any Security Party) (including any such material adverse change resulting from an Environmental Incident) the effect of which is likely, in the opinion of the Lender, to impair, delay or
                  prevent the due fulfilment by any Security Party of any of its respective obligations or undertakings contained in this Loan Agreement or any of the other Finance Documents and/or materially and adversely to affect the security created by
                  any of the Finance Documents; or

              

      

    

    
      
        	

              	(ee)	
                Finance Documents: any other event of default (as howsoever described or defined therein) occurs under the Finance Documents (or any of them).

              

      

    

    
      
        	9.2	
                Consequences of Default – Acceleration

              

      

    

    The Lender may without prejudice to any other rights of the Lender (which will continue to be in force concurrently with the following), at any time after the happening of an
      Event of Default:

    
      
        	

              	(a)	
                by notice to the Borrowers declare that the obligation of the Lender to make the Commitment (or any part thereof) available shall be terminated, whereupon the Commitment shall be reduced to zero forthwith; and/or

              

      

    

    
      
        	

              	(b)	
                by notice to the Borrowers declare that the Loan and all interest accrued and all other sums payable under the Finance Documents have become due and payable, whereupon the same shall, immediately or in accordance with the terms of such
                  notice, become due and payable without any further diligence, presentment, demand of payment, protest or notice or any other procedure from the Lender which are expressly waived by the Borrowers; and/or

              

      

    

    
      
        	

              	(c)	
                put into force and exercise all or any of the rights, powers and remedies possessed by the Lender under this Agreement and/or under any other Finance Document and/or as mortgagee of each of the Vessels, mortgagee, chargee or assignee
                  or as the beneficiary of any other property right or any other security (as the case may be) of the assets charged or assigned to it under the Finance Documents or

              

      

    

    
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    otherwise (whether at law, by virtue of any of the Finance Documents or otherwise);

    
      
        	9.3	
                Multiple notices; action without notice

              

      

    

    The Lender may serve notices under sub-Clauses (a) and (b) of Clause 9.2 (Consequences of Default – Acceleration) simultaneously or on different dates and it may take any action referred to in that Clause if no such notice is served or
      simultaneously with or at any time after service of both or either of such notices, it being understood and agreed that the non-service of a notice in respect of an Event of Default hereunder, or under any of the Finance Documents (whether known to
      the Lender or not), shall not be construed to mean that the Event of Default shall cease to exist and bring about its lawful consequences.

    
      
        	9.4	
                Demand basis

              

      

    

    If, pursuant to Clause 9.2(b), the Lender declares the Loan to be due and payable on demand, the Lender may by written notice to the Borrowers (a) call for repayment of the Loan
      on such date as may be specified whereupon the Loan shall become due and payable on the date so specified together with all interest accrued and all other sums payable under this Agreement or (b) withdraw such declaration with effect from the date
      specified in such notice.

    
      
        	9.5	
                Proof of Default

              

      

    

    It is agreed that (i) the non-payment of any sum of money in time will be proved conclusively by mere passage of time and (ii) the occurrence of this (non payment) shall be
      proved conclusively by a mere written statement of the Lender (save for manifest error and in absence of willful misconduct).

    
      
        	9.6	
                Exclusion of Lender’s liability

              

      

    

    Neither the Lender nor any receiver or manager appointed by the Lender, shall have any liability to the Borrowers or a Security Party:

    
      
        	

              	(a)	
                for any loss caused by an exercise of rights under, or enforcement of an Security Interest created by, a Finance Document or by any failure or delay to exercise such a right or to enforce such an 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 an Security Interest or for any reduction (however caused) in the value of such
                  an asset,

              

      

    

    except that this does not exempt the Lender or a receiver or manager from liability for losses shown to have been caused by the 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.

    
      
        
          	10.	
                  INDEMNITIES - EXPENSES – FEES

                

          
            

        

      

    

    
      
        	10.1	
                Miscellaneous indemnities

              

      

    

    The Borrowers shall on demand (and it is hereby expressly undertaken by the Borrowers to) indemnify the Lender, without prejudice to any of the other rights of the Lender under
      any of the Finance Documents, against any loss (including loss of the applicable Margin and any Break Costs) or expense which the Lender shall certify as sustained or incurred as a consequence of:

    
      
        	

              	(a)	
                any default in payment by any of the Security Parties of any sum under any of the Finance Documents when due;

              

      

    

    
      61

      
        

    

    
      
        	

              	(b)	
                the occurrence of any Event of Default which is continuing;

              

      

    

    
      
        	

              	(c)	
                any prepayment of the Loan or part thereof being made under Clauses 4.2 (Voluntary Prepayment) and 4.3 (Compulsory Prepayment in case of Total Loss or sale of a Vessel), 8.5(a) (Security shortfall-Additional Security), Clause 12.1 (Unlawfulness) or Clause 12.4 (Option to prepay) or any other repayment of the Loan or part thereof being made otherwise than on an Interest Payment Date relating to the part of the Loan prepaid or repaid; or

              

      

    

    
      
        	

              	(d)	
                the Commitment not being advanced for any reason (excluding any default by the Lender and any reason specified in Clauses 3.6 (Market disruption – Non
                      Availability), 4.3(a) (Total Loss of a Mortgaged Vessel) or

                  12.1 (Unlawfulness) after the Drawdown Notice has been given, including, in any such case, but not limited
                  to, any loss or expense sustained or incurred in maintaining or funding the Loan or any part thereof or in liquidating or re-employing deposits from third parties acquired to effect or maintain the Loan or any part thereof.

              

      

    

    
      
        	

              	(e)	
                The Borrowers shall fully indemnify the Lender on its demand, without prejudice to any of its other rights under any of the Finance Documents, in respect of all claims, liabilities, losses or other Expenses which may be made or brought
                  against or sustained or incurred by the Lender, in any country, as a result of or in connection with:

              

      

    

    
      
        	

              	(i)	
                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;

              

      

    

    
      
        	

              	(ii)	
                investigating any event which the Lender reasonably believes constitutes an Event of Default; or

              

      

    

    
      
        	

              	(iii)	
                acting or relying on any notice, request or instruction which the Lender reasonably believes to be genuine, correct and appropriately authorised,

              

      

    

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

    Without prejudice to its generality, this Clause 10.1 covers any claims, expenses, liabilities and losses which arise, or are asserted, under or in connection with any law
      relating to safety at sea, the ISM Code, the ISPS Code, any Environmental Law and any Sanctions.

    
      
        	10.2	
                Expenses

              

      

    

    The Borrowers shall (and it is hereby expressly undertaken by the Borrowers to) pay to the Lender on demand:

    
      
        	

              	(a)	
                Initial and Amendment expenses:  all expenses (including reasonable legal, printing and out-of-pocket expenses) reasonably incurred by the Lender in connection with the negotiation, preparation and execution of this Agreement
                  and the other Finance Documents and of any amendment or extension of or the granting of any waiver or consent under this Agreement and/or any of the Finance Documents and/or in connection with any proposal by the Borrowers to constitute
                  additional security pursuant to Clause 8.5(a) (Security shortfall - Additional Security), whether any such security shall in fact be constituted or not;

              

      

    

    
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              	(b)	
                Enforcement expenses:  all expenses (including reasonable legal and out-of-pocket expenses) incurred by the Lender in contemplation of, or otherwise in connection with, the enforcement of, or preservation of any rights under,
                  this Agreement and/or any of the other Finance Documents, or otherwise in respect of the moneys owing under this Agreement and/or any of the other Finance Documents or the contemplation or preparation of the above, whether they have been
                  effected or not;

              

      

    

    
      
        	

              	(c)	
                Legal costs:  the legal costs of the Lender’s appointed lawyers, in respect of the preparation of this Agreement and the other Finance Documents as well as the legal costs of the foreign lawyers (if these are available) in
                  respect of the registration of the Finance Documents or any search or opinion given to the Lender in respect of the Security Parties or the Vessels or the Finance Documents. The said legal costs shall be due and payable on the Drawdown
                  Date; and

              

      

    

    
      
        	

              	(d)	
                Other expenses:  any and all other Expenses.

              

      

    

    
      
        	10.3	
                Value Added Tax

              

      

    

    All fees and expenses payable pursuant to this Clause 10 shall be paid together with value added tax or any similar tax (if any) properly chargeable thereon. Any value added tax
      chargeable in respect of any services supplied by the Lender under this Agreement shall, on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid hereunder.

    
      
        	10.4	
                Stamp duty etc.

              

      

    

    The Borrowers shall pay any and all stamp, registration and similar taxes or charges (including those payable by the Lender) imposed by governmental authorities in relation to
      this Agreement and any of the other Finance Documents, and shall indemnify the Lender against any and all liabilities with respect to, or resulting from delay or omission on the part of the Borrowers to pay such stamp taxes or charges.

    
      
        	10.5	
                Environmental Indemnity

              

      

    

    The Borrowers shall indemnify the Lender on demand and hold the Lender harmless from and against all costs, expenses, payments, charges, losses, demands, liabilities, actions,
      proceedings (whether civil or criminal) penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be suffered, incurred or paid by, or made or asserted against the Lender at any time, whether before or
      after the repayment in full of principal and interest under this Agreement, relating to, or arising directly or indirectly in any manner or for any cause or reason out of an Environmental Claim made or asserted against the Lender if such
      Environmental Claim would not have been, or been capable of being, made or asserted against the Lender if it had not entered into any of the Finance Documents and/or exercised any of its rights, powers and discretions thereby conferred and/or
      performed any of its obligations thereunder and/or been involved in any of the transactions contemplated by the Finance Documents.

    
      
        	10.6	
                Currency Indemnity

              

      

    

    If any sum due from the Borrowers under any of the Finance Documents or any order or judgement given or made in relation hereto has to be converted from the currency (the “first currency”) in which the same is payable under the relevant Finance Document or under such order or
      judgement into another currency (the “second currency”) for the purpose of (i) making or filing a claim or
      proof against the Borrowers or any other Security

    
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    Party, as the case may be or (ii) obtaining an order or judgement in any court or other tribunal or (iii) enforcing any order or judgement given or made in relation to any of the
      Finance Documents, the Borrowers shall (and it is hereby expressly undertaken by the Borrowers to) indemnify and hold harmless the Lender from and against any loss suffered as a result of any difference between (a) the rate of exchange used for such
      purpose to convert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Lender may in the ordinary course of business purchase the first currency with the second currency upon receipt
      of a sum paid to it in satisfaction, in whole or in part, of any such order, judgement, claim or proof. The term “rate of exchange” includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency.

    
      
        	10.7	
                Central Bank or European Central Bank reserve requirements indemnity

              

      

    

    The Borrowers shall on demand promptly indemnify the Lender against any cost incurred or loss suffered by the Lender as a result of its complying with the minimum reserve
      requirements of the European Central Bank and/or with respect to maintaining required reserves with the relevant national Central Bank to the extent that such compliance relates to the Commitment or deposits obtained by it to fund the whole or part
      of the Loan and to the extent such cost or loss is not recoverable by such Lender under Clause 12.2 (Increased cost).

    
      
        	10.8	
                Maintenance of the Indemnities

              

      

    

    The indemnities contained in this Clause 10 shall apply irrespective of any indulgence granted to the Borrowers or any other party from time to time and shall continue to be in
      full force and effect notwithstanding any payment in favour of the Lender and any sum due from the Borrowers under this Clause 10 will be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under any
      one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto.

    
      
        	10.9	
                MII costs

              

      

    

    The Borrowers shall reimburse the Lender on demand for any and all costs incurred by the Lender (as conclusively certified by the Lender) in effecting and keeping effected a
      Mortgagee’s Interest Insurance (herein “MII”), which the Lender may at any time effect for an amount equal to 120% of the Loan and on such terms and
      with such insurers as shall from time to time be determined by the Lender, provided, however, that the Lender shall in its absolute discretion appoint and instruct in respect of any such MII policy the insurance brokers in respect of such
      Insurance and provided, further, that in the event that the Lender effects any such Insurance on the basis of any mortgagee’s open cover, the Borrowers shall pay on demand to the Lender its proportion of premium due in respect of the
      Vessel(s) for which such insurance cover has been effected by the Lender, and any certificate of the Lender in respect of any such premium due by the Borrowers shall (save for manifest error) be conclusive and binding upon the Borrowers.

    
      
        	10.10	
                Communications Indemnity

              

      

    

    It is hereby agreed in connection with communications that:

    
      
        	

              	(a)	
                Express authority is hereby given by the Borrowers to the Lender to accept all tested or untested communications given by facsimile, or electronic mail or otherwise, regarding any or all of the notices, requests, instructions or other
                  communications under this Agreement, subject to any restrictions imposed by the

              

      

    

    
      64

      
        

    

    Lender relating to such communications including, without limitation (if so required by the Lender), the obligation to confirm such communications by letter.

    
      
        	

              	(b)	
                The Borrowers shall recognise any and all of the said notices, requests, instructions or other communications as legal, valid and binding, when these notices, requests, instructions or communications come from the fax number or
                  electronic address mentioned in Clause 17.1 (Notices) or any other fax or electronic address usually used
                  by it or its managing company and are duly signed or in case of emails are duly sent by the person appearing to be sending such notice, request, instruction or other communication.

              

      

    

    
      
        	

              	(c)	
                The Borrowers hereby assume full responsibility for the execution of the said notices, requests, instructions or communications and promise and recognise that the Lender shall not be held responsible for any loss, liability or expense
                  that may result from such notices, requests, instructions or other communications.  It is hereby undertaken by the Borrowers to indemnify in full the Lender from and against all actions, proceedings, damages, costs, claims, demands,
                  expenses and any and all direct and/or indirect losses which the Lender may suffer, incur or sustain by reason of the Lender following such notices, requests, instructions or communications.

              

      

    

    
      
        	

              	(d)	
                With regard to notices, requests, instructions or communications issued by electronic and/or mechanical processes (e.g. by facsimile or electronic mail), the risk of equipment malfunction, including, without limitation, paper shortage,
                  transmission errors, omissions and distortions is assumed fully and accepted by the Borrowers, save in case of Lender’s gross misconduct.

              

      

    

    
      
        	

              	(e)	
                The risks of misunderstandings and errors resulting from notices, requests, instructions or communications being given as mentioned above, are for the Borrowers and the Lender will be indemnified in full pursuant to this Clause save in
                  case of Lender’s gross misconduct.

              

      

    

    
      
        	

              	(f)	
                The Lender shall have the right to ask the Borrowers to furnish any information the Lender may require to establish the authority of any person purporting to act on behalf of the Borrowers for these notices, requests, instructions or
                  communications but it is expressly agreed that there is no obligation for the Lender to do so.  The Lender shall be fully protected in, and the Lender shall incur no liability to the Borrowers for acting upon the said notices, requests,
                  instructions or communications which were believed by the Lender in good faith to have been given by the Borrowers or by any of its authorised representative(s).

              

      

    

    
      
        	

              	(g)	
                It is undertaken by the Borrowers to use its best endeavours to safeguard the function and the security of the electronic and mechanical appliance(s) such as fax(es) etc., as well as the code word list, if any, and to take adequate
                  precautions to protect such code word list from loss and to prevent its terms becoming known to any persons not directly concerned with its use.  The Borrowers shall hold the Lender harmless and indemnified from all claims, losses,
                  damages and expenses which the Lender may incur by reason of the failure of the Borrowers to comply with the obligations under this Clause 10.10.

              

      

    

    
      
        	10.11	
                Electronic communication

              

      

    

    Any communication from the Lender made by electronic means will be sent unsecured and without electronic signature, however, the Borrowers may request the Lender at any time in

    
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    writing to change the method of electronic communication from unsecured to secured electronic mail communication.

    
      
        	

              	(a)	
                The Borrowers hereby acknowledge and accept the risks associated with the use of unsecured electronic mail communication including, without limitation, risk of delay, loss of data, confidentiality breach, forgery, falsification and
                  malicious software.  The Lender shall not be liable in any way for any loss or damage or any other disadvantage suffered by the Borrowers resulting from such unsecured electronic mail communication.

              

      

    

    
      
        	

              	(b)	
                If the Borrowers (or any of them) or any other Security Party wish to cease all electronic communication, they shall give written notice to the Lender accordingly after receipt of which notice the Parties shall cease all electronic
                  communication.

              

      

    

    
      
        	

              	(c)	
                For as long as electronic communication is an accepted form of communication, the Parties shall:

              

      

    

    
      
        	

              	(i)	
                notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

              

      

    

    
      
        	

              	(ii)	
                notify each other of any change to their respective addresses or any other such information supplied to them; and

              

      

    

    in case electronic communication is sent to recipients with the domain <@pavimarship.com>, the parties shall without undue delay
      inform each other if there are changes to the said domain or if electronic communication shall thereafter be sent to individual e-mail addresses.

    
      
        	10.12	
                FATCA Deduction

              

      

    

    
      
        	

              	(a)	
                Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA
                  Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

              

      

    

    
      
        	

              	(b)	
                Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment.

              

      

    

    
      
        	10.13	
                FATCA status

              

      

    

    
      
        	

              	(a)	
                Subject to Clause 10.13(c) below, each party shall, within ten Banking Days of a reasonable request by another party:

              

      

    

    
      
        	

              	(i)	
                confirm to that other party whether it is:

              

      

    

    
      
        	

              	(aa)	
                a FATCA Exempt Party; or

              

      

    

    
      
        	

              	(bb)	
                not a FATCA Exempt Party; and

              

      

    

    
      
        	

              	(ii)	
                supply to that other party such forms, documentation and other information relating to its status under FATCA (including its applicable passthru percentage or other information required under the Treasury Regulations or other official
                  guidance including intergovernmental

              

      

    

    
      66

      
        

    

    agreements) as that other party reasonably requests for the purposes of that other party's compliance with FATCA.

    
      
        	

              	(b)	
                If a party confirms to another party pursuant to Clause 10.13(a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that party shall notify that other
                  party reasonably promptly.

              

      

    

    
      
        	

              	(c)	
                Clause 10.13(a)(i) above shall not oblige the Lenders or the Lender to do anything which would or might in its reasonable opinion constitute a breach of:

              

      

    

    
      
        	

              	(i)	
                any law or regulation;

              

      

    

    
      
        	

              	(ii)	
                any policy of the relevant Lender;

              

      

    

    
      
        	

              	(iii)	
                any fiduciary duty; or

              

      

    

    
      
        	

              	(iv)	
                any duty of confidentiality.

              

      

    

    
      
        	

              	(d)	
                If a party fails to confirm its status or to supply forms, documentation or other information requested in accordance with Clause10.13(a) above (including, for the avoidance of doubt, where Clause 10.13(c) above applies), then:

              

      

    

    
      
        	

              	(i)	
                if that party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such party shall be treated for the purposes of the Finance Documents as if it is not a FATCA Exempt Party; and

              

      

    

    
      
        	

              	(ii)	
                if that party failed to confirm its applicable passthru percentage then such party shall be treated for the purposes of the Finance Documents (and payments made thereunder) as if its applicable passthru percentage is 100%,

              

      

    

    until (in each case) such time as the party in question provides the requested confirmation, forms, documentation or other information.

    
      
        	10.14	
                Arrangement fee

              

      

    

    
      
        	

              	(a)	
                Arrangement fee: The Borrowers shall pay to the Lender an arrangement fee in an amount equal to one per cent (1.00%) of the amount of the Loan as at the Drawdown Date payable on the date
                  hereof.

              

      

    

    
      
        	

              	(b)	
                Non-refundable: The Arrangement Fee shall be payable by the Borrowers to the Lender irrespective of utilisation/cancellation in part or in whole of the Commitment and shall be non-refundable.

              

      

    

    
      
        
          	11.	
                  SECURITY, APPLICATION, SET-OFF

                

          
            

        

      

    

    
      
        	11.1	
                Securities

              

      

    

    As security for the due and punctual repayment of the Loan and payment of interest thereon as provided in this Agreement and of all other Outstanding Indebtedness, the Borrowers shall ensure and procure that the Security Documents are duly executed and, where required, registered in favour of the Lender in form and substance satisfactory to the Lender at the time specified herein or
      otherwise as required by the Lender and ensure that such security consists, on the Drawdown Date in respect of the Loan, of the Security Documents.

    
      67

      
        

    

    
      
        	11.2	
                Maintenance of Securities

              

      

    

    It is hereby undertaken by the Borrowers that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing and/or due under
      this Agreement and/or under the other Finance Documents be valid and binding obligations of the respective Security Parties thereto and rights of the Lender enforceable in accordance with their respective terms and that they will, at the expense of
      the Borrowers, execute, sign, perfect and do any and every such further assurance, document, act, omission or thing as in the opinion of the Lender may be necessary or desirable for perfecting the security contemplated or constituted by the Finance
      Documents.

    
      
        	11.3	
                Application of funds

              

      

    

    
      
        	

              	(a)	
                Order of application:  Except as any Finance Document may otherwise provide, any sums which are received or recovered by the Lender under or pursuant to or by virtue of any of the Finance
                  Documents and expressed to be applicable in accordance with this Clause 11.3 shall be applied by the Lender in the following manner:

              

      

    

    
      
        	

              	(i)	
                FIRST: in or towards satisfaction of any amounts then due and payable under the Finance Documents in the following order and proportions:

              

      

    

    
      
        	

              	aa)	
                Firstly, in or towards satisfaction of all amounts then due and payable to the Lender under the Finance Documents other than those amounts referred to at paragraphs b) and c) below (including, but without limitation, all amounts
                  payable by the Borrower under Clauses 11 (Indemnities- Expenses-Fees), 5.1 (Payments – No set-off or counterclaims) or 5.3 (Gross

                      Up) of this Agreement or by the Borrower or any Security Party under any corresponding or similar provision in any other Finance Document);

              

      

    

    
      
        	

              	a)	
                Secondly, in or towards payment of any default interest then due and payable to the Lender;

              

      

    

    
      
        	

              	bb)	
                Thirdly, in or towards payment of any arrears of interest (other than default interest) due and payable in respect of the Loan or any part thereof payable to the Lender under the Finance Documents;

              

      

    

    
      
        	

              	cc)	
                Fourthly, in or towards satisfaction of the Loan then due and payable;

              

      

    

    
      
        	

              	(ii)	
                SECOND: in retention of an amount equal to any amount not then due and payable under any Finance Document but which the Lender, by notice to the Borrower and the Security Parties, states in its opinion will either or may become due and
                  payable in the future and, upon those amounts becoming due and payable, in or towards satisfaction of them in accordance with the provisions of Clause 11.3(a); and

              

      

    

    
      
        	

              	(iii)	
                THIRD: the surplus (if any), after the full and complete payment of the Outstanding Indebtedness, shall be paid to the Borrower or to any other person appearing to be entitled to it.

              

      

    

    
      
        	

              	(b)	
                Notice of variation of order of application:  The Lender may, by notice to the Borrower and the Security Parties, provide, at its sole discretion, for a different order of application from that set out in Clause 11.3(a) (Order of application) either

              

      

    

    
      68

      
        

    

    as regards a specified sum or sums or as regards sums in a specified category or categories, without affecting the obligations of the Borrower to the Lender.

    
      
        	

              	(c)	
                Effect of variation notice:  The Lender may give notices under Clause 11.3(b) (Notice of variation of order of application) 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 Banking Day before the date on which the
                  notice is served.

              

      

    

    
      
        	

              	(d)	
                Insufficient balance: For the avoidance of doubt, in the event that such balance is insufficient to pay in full the whole of the Outstanding Indebtedness, the Lender shall be entitled to collect the shortfall from the Borrower
                  or any other person liable therefor.

              

      

    

    
      
        	

              	(e)	
                Appropriation rights overridden:  This Clause 11.3 and any notice which the Lender gives under Clause 11.3(b) (Notice of variation of order of
                      application) shall override any right of appropriation possessed, and any appropriation made, by the Borrower or any other Security Party.

              

      

    

    
      
        	11.4	
                Set off

              

      

    

    
      
        	

              	(a)	
                Application of credit balances: Express authority is hereby given by each Borrower to the Lender without prejudice to any of the rights of the Lender at law, contractually or otherwise, at any time after an Event of Default has
                  occurred and is continuing, and without prior notice to the Borrowers:

              

      

    

    
      
        	

              	(i)	
                to apply any credit balance standing upon any account of each Borrower with any branch of the Lender (including, without limitation, the Operating Account and in whatever currency in or towards satisfaction of any sum due to the Lender
                  from the Borrowers under this Agreement, the General Assignments and/or any of the other Finance Documents;

              

      

    

    
      
        	

              	(ii)	
                in the name of each of the Borrowers and/or the Lender to do all such acts and execute all such documents as may be necessary or expedient to effect such application; and

              

      

    

    
      
        	

              	(iii)	
                to combine and/or consolidate all or any accounts in the name of each Borrower with the Lender; and

              

      

    

    for that purpose:

    
      
        	

              	aa)	
                to break, or alter the maturity of, all or any part of a deposit of the Borrowers (or either of them);

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                Existing rights unaffected: The Lender shall not be obliged to exercise any right given by this Clause; 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). For all or any of the above purposes authority is hereby given to the Lender to

              

      

    

    
      69

      
        

    

    purchase with the moneys standing to the credit of any such account or accounts such other currencies as may be necessary to effect such application. The Lender shall notify the
      Borrowers forthwith upon the exercise of any right of set‐off giving full details in relation thereto.

    
      
        
          	12.	
                  UNLAWFULNESS, INCREASED COST, BAIL-IN

                

          
            

        

      

    

    
      
        	12.1	
                Unlawfulness

              

      

    

    If any change in, or introduction of, any law, regulation or regulatory requirement or any request of any central bank, monetary, regulatory or other authority or any order of
      any court renders it unlawful or contrary to any such regulation, requirement, request or order for the Lender to advance the Commitment or the relevant part thereof (as the case may be) or to maintain or fund the Loan, notice shall be given promptly
      by the Lender to the Borrowers whereupon the Commitment shall be reduced to zero and the Borrowers shall be obliged to prepay the Loan either (i) forthwith or (ii) on a future specified date not being earlier than the latest date permitted by the
      relevant law or regulation, together with accrued interest thereon to the date of prepayment and all other sums payable by the Borrowers under this Agreement.

    
      
        	12.2	
                Increased Cost

              

      

    

    If the result of any change in, or in the interpretation, implementation or application of, or the introduction of, any law or any regulation (whether or not having the force of
      law, but, if not having the force of law, with which the Lender or, as the case may be, its holding company habitually complies), including (without limitation) those relating to Taxation, capital adequacy, liquidity, reserve assets, cash ratio
      deposits and special deposits or other banking or monetary controls or requirements which affect the manner in which the Lender allocates capital resources to its obligations hereunder (including, without limitation, those resulting from the
      implementation or application of or compliance with the Basel II Accord or the Basel III Accord or any Basel II Regulation or the Basel III Accord or any Basel III Regulation or any subsequent accord, approach or regulation thereto) (collectively, “Capital Adequacy Law”) or compliance by the Lender with any such Capital Adequacy Law or , is to:

    
      
        	

              	(a)	
                increase the cost to, or impose an additional cost on, the Lender or its holding company in making or keeping the Commitment available or maintaining or funding all or part of the Loan; and/or

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(c)	
                reduce the amount payable or the effective return to the Lender under any of the Finance Documents; and/or

              

      

    

    
      
        	

              	(d)	
                reduce the Lender’s or its holding company rate of return on its overall capital by reason of a change in the manner in which it is required to allocate capital resources to the Lender’s
                  obligations under any of the Finance Document; and/or

              

      

    

    
      
        	

              	(e)	
                require the Lender or its holding company to make a payment or forgo a return on or calculated by references to any amount received or receivable by it under any of the Finance Documents is
                  required; and/or

              

      

    

    
      70

      
        

    

    
      
        	

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

              

      

    

    then and in each case (subject to Clause 12.5 (Exception)):

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    For the purposes of this Clause 12 “holding company” means the company or entity (if any) within the consolidated supervision of which the Lender is included.

    
      
        	12.3	
                Mitigation

              

      

    

    If circumstances arise which would result in a notification under Clause 12.1 (Unlawfulness) or Clause 12.2 (Increased Cost), then, without in any way limiting the rights of the Lender under this Clause, the Lender shall use reasonable endeavours to transfer all
      the Lender’s 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 so 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 involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage.

    
      
        	12.4	
                Claim for increased cost

              

      

    

    The Lender will promptly notify the Borrowers of any intention to claim indemnification pursuant to Clause 12.2 (Increased Cost) and such notification will be a conclusive and full evidence binding on the Borrowers as to the amount of any increased cost or reduction and the
      method of calculating the same and the Borrowers shall be allowed to rebut such evidence by any means of evidence save for witness.  A claim under Clause 12.2 (Increased
          Cost) may be made at any time and must be discharged by the Borrowers within seven (7) days of demand.  It shall not be a defence to a claim by the Lender under this Clause 12.3 that any
      increased cost or reduction could have been avoided by the Lender.  Any amount due from the Borrowers under Clause 12.2 (Increased Cost) shall be due as a separate debt and shall not be affected by judgement being obtained for any other sums due under or in respect of this Agreement.

    
      
        	12.5	
                Option to prepay

              

      

    

    If any additional amounts are required to be paid by the Borrowers to the Lender by virtue of Clause 12.2 (Increased Cost), the Borrowers shall be entitled, on giving the Lender not less than fourteen (14) days prior notice in writing, to prepay (without premium or penalty) the Loan and
      accrued interest thereon, together with all other Outstanding Indebtedness, on the next Repayment Date. Any such notice, once given, shall be irrevocable.

    
      71

      
        

    

    
      
        	12.6	
                Exception

              

      

    

    Nothing in Clause 12.2 (Increased Cost) shall
      entitle the Lender to receive any amount in respect of compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss to the extent that the same is subject of an additional payment under
      Clause 5.3 (Gross Up).

    
      
        	12.7	
                Contractual recognition of bail-in

              

      

    

    Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any
      liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:

    
      
        	

              	(a)	
                any Bail-In Action in relation to any such liability, including (without limitation):

              

      

    

    
      
        	

              	(i)	
                a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability;

              

      

    

    
      
        	

              	(ii)	
                a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

              

      

    

    
      
        	

              	(iii)	
                a cancellation of any such liability; and

              

      

    

    
      
        	

              	(b)	
                a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.

              

      

    

    
      
        
          	13.	
                  OPERATING ACCOUNTS

                

          
            

        

      

    

    
      
        	13.1	
                General

              

      

    

    Each of the Borrowers undertakes with the Lender that it will:

    
      
        	

              	(a)	
                on or before the Drawdown Date open its Operating Account; and

              

      

    

    
      
        	

              	(b)	
                procure that all moneys payable to such Borrower in respect of the Earnings of its Vessel shall, unless and until the Lender directs to the contrary pursuant to the relevant General Assignment, be paid to its Operating Account, free
                  from Security Interests and rights of set off other than those created by or under the Finance Documents and, shall be held there on trust for the Lender and shall be applied as provided in Clause 13.2 (Application of Earnings).

              

      

    

    
      
        	13.2	
                Application of Earnings

              

      

    

    
      
        	

              	(a)	
                Subject to the terms and conditions of the Accounts Pledge Agreement no monies shall be withdrawn from the Operating Accounts save as hereinafter provided. Subject to no Event of Default having occurred and being continuing, all monies
                  paid to the Operating Accounts (whether being Earnings or not) after discharging the costs (if any) incurred by the Lender, in collecting such monies, shall be applied by the Lender as follows:

              

      

    

    
      
        	

              	(i)	
                First: in payment of any arrears of interest and principal of the Loan due and payable and any and all other sums whatsoever which from time to time

              

      

    

    
      72

      
        

    

    become due and payable to the Lender hereunder (such sums to be paid in such order as the Lender may in its sole discretion elect);

    provided, however, that the Lender shall be entitled to withdraw the required amounts from the Operating Accounts or any time deposit substitute account under the same or
      different designation by breaking such time deposit in order to effect payment of any amount due under “First” above;

    
      
        	

              	(ii)	
                Second: in payment of the Operating Expenses; and

              

      

    

    
      
        	

              	(iii)	
                Third: any credit balance shall be, subject to the provisions of this Agreement (including dividends restriction) and the Accounts Pledge Agreement,  available to the Borrowers to be used
                  (unless the Lender otherwise direct at its discretion) for any purpose not inconsistent with the Borrowers’ other obligations under this Agreement;

              

      

    

    
      
        	13.3	
                Interest

              

      

    

    Any amounts for the time being standing to the credit of the Operating Account shall bear interest at the rate from time to time offered by the Lender to its customers for Dollar
      deposits of similar amounts and for periods similar to those for which such amounts are likely to remain standing to the credit of the Operating Account. Such interest shall, provided that (a) the foregoing provisions of this Clause 13 shall
      have been complied with and (b) no Event of Default (or event which, with the giving of notice and/or lapse of time or other applicable condition, might constitute an Event of Default) shall have occurred and is continuing, be released to the
      Borrowers.

    
      
        	13.4	
                Drawings from Operating Accounts

              

      

    

    Save as provided in Clause 13.2 (Application of Earnings), none of the Borrowers shall be entitled to draw from its Operating Account if an Event of Default has occurred and is continuing.

    
      
        	13.5	
                Authorisation

              

      

    

    For the avoidance of doubt, the Lender shall be entitled (but not obliged) at any time, and to this respect the Lender is hereby
      authorised by each of the Borrowers from time to time to debit the Operating Accounts, without notice to the Borrowers, in order to discharge any amount due and payable to the Lender under the terms of this Agreement and the Security Documents or
      otherwise howsoever in connection with the Loan, including, without limitation, any payment of which the Lender has become entitled to demand under Clause 9.2 (Consequences

          of Default – Acceleration).

    
      
        	13.6	
                Obligations unaffected

              

      

    

    Nothing herein contained shall be deemed to affect:

    
      
        	

              	(a)	
                the liability and absolute obligation of the Borrowers to pay interest on and to repay the Loan as provided in Clauses 3 (Interest) and 4 (Repayment-Prepayment) nor

                  shall they constitute or be construed as constituting a manner of postponement thereof; or

              

      

    

    
      
        	

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

              

      

    

    
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        	13.7	
                Relocation of Operating Accounts

              

      

    

    Each of the Borrowers, at its own costs and expenses, undertakes with the Lender to comply with or cause to be complied with any written
      requirement of the Lender from time to time as to the location or re-location of its Operating Account and will from time to time enter into such documentation as the Lender may require in order to create or maintain a security interest in such
      Operating Account.

    
      
        	13.8	
                Application on Event of Default

              

      

    

    Upon the occurrence of an Event of Default or at any time thereafter (whether or not notice of default has been given to the Borrowers) when an Event of Default continues the
      Lender shall be entitled to set off and apply all sums standing to the credit of the Operating Accounts (or any of them) and accrued interest (if any) without notice to the Borrowers in the manner specified in Clause 11.3 (Application of funds) (and express and irrevocable authority is hereby given by each of the Borrowers to the Lender so to set off by debiting
      the Operating Accounts accordingly by the same.

    
      
        	13.9	
                No Security Interests

              

      

    

    The Borrowers hereby jointly and severally covenant with the Lender that the Operating Accounts and any moneys therein shall not be charged, assigned, transferred or pledged nor
      shall there be granted by the Borrowers or suffered to arise any third party rights over or against the whole or any part of the Operating Accounts (or any of them) other than in favour of the Lender as promised herein and in the General Assignments.

    
      
        	13.10	
                Operation of Operating Accounts

              

      

    

    Each Operating Account shall be operated by the relevant Borrower to the degree permitted by this Agreement and the relevant General Assignment in accordance with the Lender’s
      usual terms and conditions (full knowledge of which the Borrowers hereby acknowledges) and subject to the Lender’s usual charges levied on such accounts and/or transactions conducted on such accounts (as from time to time notified by the Lender to
      the Borrowers).

    
      
        	13.11	
                Release

              

      

    

    Upon payment in full of all principal, interest and all other amounts due to the Lender under the terms of this Agreement and the other Finance Documents, any balance then
      standing to the credit of any of the Operating Accounts shall be released and paid to the relevant Borrower or to whomsoever else may be entitled to receive such balance.

    
      
        
          	14.	
                  ASSIGNMENT, TRANSFER, PARTICIPATION, LENDING OFFICE

                

          
            

        

      

    

    
      
        	14.1	
                Binding Effect

              

      

    

    This Agreement shall be binding upon and inure to the benefit of the Lender and the Borrowers and their respective successors and assigns.

    
      
        	14.2	
                No Assignment by the Borrowers and other Security Parties

              

      

    

    Neither the Borrowers nor any other Security Parties may assign or transfer any of its rights and/or obligations under this Agreement or any of the other Finance Documents or any
      documents executed pursuant to this Agreement and/or the other Finance Documents.

    
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        	14.3	
                Assignment by the Lender

              

      

    

    The Lender may at any time without the consent of, or consultation with, the Borrowers and the other Security Parties, cause all or any part of its rights, benefits and/or
      obligations under this Agreement and the other Finance Documents to be assigned or transferred to (i) another branch, any Subsidiary or Affiliate of, or company controlled by, the Lender, (ii) a member of the European Central Bank System, a credit
      institution, a financial services institution, a financial institution, an insurance company, a social security fund, a pension fund, an investment company/trust or a special purpose company established for the purposes of securitization, (iii) a
      capital investment company, hedge fund, financial intermediary or special purpose vehicle associated to any of them or (iii) a trust corporation, fund or other person which regularly engaged in or established for the purpose of making, purchasing or
      investing in loans, securities or other financial assets of which are managed or serviced by the Lender (in each case an “Assignee” or a “Transferee”), provided that the Assignee or
      Transferee, shall deliver to the Lender such undertaking as the Lender may approve, whereby it becomes bound by the terms of this Agreement and agrees to perform all or, as the case may be, part of the Lender’s obligations under this Agreement and provided

        further that the liabilities of the Borrowers under this Agreement and any other Finance Document shall not be increased as a result of any such assignment or transfer and that in the event that the Borrowers’ liabilities (actual or contingent)
      are increased, the Borrowers shall not be liable for any such excess.

    
      
        	14.4	
                Participation

              

      

    

    The Lender may at any time without the consent of, or consultation with, or notice to the Borrowers sub-participate all or any part of its rights, benefits and/or obligations
      under this Agreement and the other Finance Documents without the consent of, or consultation with or notice to the Borrowers and the other Security Parties, provided that the liabilities of the Borrowers under this Agreement and any other
      Finance Document shall not be increased as a result of any such sub-participation and that in the event that the Borrowers’ liabilities (actual or contingent) are increased, the Borrowers shall not be liable for any such excess.

    
      
        	14.5	
                Cost

              

      

    

    Any cost of such assignment or transfer or granting sub-participation shall be for the account of the Lender and/or the Assignee, Transferee or sub-participant unless any such
      assignment, transfer or sub-participation is undertaken at the request of the Borrowers, in which case any cost arising therefrom shall be for the account of the Borrowers.

    
      
        	14.6	
                Documenting assignments and transfers

              

      

    

    If the Lender assigns, transfers or in any other manner grants participation in respect of all or any part of its rights or benefits or transfers all or any of its obligations as
      provided in this Clause 14.6 the Borrowers undertake, immediately on being requested to do so by the Lender, to enter at the expense of the Lender into and procure that each Security Party enters into such documents as may be necessary or desirable
      to transfer to the Assignee, Transferee or participant all or the relevant part of the interest of the Lender in the Finance Documents and all relevant references in this Agreement to the Lender shall thereafter be construed as a reference to the
      Lender and/or assignee, transferee or participant of the Lender to the extent of their respective interests and, in the case of a transfer of all or part of the obligations of the Lender, the Borrowers shall thereafter look only to the Assignee,
      Transferee or participant in respect of that proportion of the obligations of the Lender under this Agreement assumed by such assignee, transferee or participant. Subject to the provisions of Clause 14.3 (Assignment by the Lender), each of the Borrowers hereby expressly consents to any
      subsequent transfer of the rights and obligations of the Lender and undertakes that it shall join in and execute such supplemental or substitute agreements

    
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    as may be necessary to enable the Lender to assign and/or transfer and/or grant participation in respect of its rights and obligations to another branch or to one or more banks
      or financial institutions in a syndicate or otherwise. The cost of any such assignment shall be borne by the Lender and/or the relevant Assignee or Transferee.

    
      
        	14.7	
                Disclosure of information

              

      

    

    The Lender may disclose to a prospective assignee, substitute or transferee or to any other person who may propose entering into contractual relations with the Lender in relation
      to this Agreement such information about the Borrowers as the Lender shall consider appropriate if the Lender first procures that the relevant prospective assignee, substitute or transferee or other person (such person together with any prospective
      assignee, substitute or transferee being hereinafter described as the “Prospective Assignee”) shall
      undertake to the Lender to keep secret and confidential and shall not, without the consent of the Borrowers, disclose to any third party any of the information, reports or documents supplied by the Lender provided, however, that the
      Prospective Assignee shall be entitled to disclose such information, reports or documents in the following situations:

    
      
        	

              	(a)	
                in relation to any proceedings arising out of this Agreement or the other Finance Documents to the extent considered necessary by the Prospective Assignee to protect its interest; or

              

      

    

    
      
        	

              	(b)	
                pursuant to a court order relating to discovery or otherwise; or

              

      

    

    
      
        	

              	(c)	
                pursuant to any law or regulation or to any fiscal, monetary, tax, governmental or other competent authority; or

              

      

    

    
      
        	

              	(d)	
                to its auditors, legal or other professional advisers.

              

      

    

    In addition the Prospective Assignee shall be entitled to disclose or use any such information, reports or documents if the information contained therein shall have emanated in
      conditions free from confidentiality, bona fide from some person other than the Lender or the Borrowers.

    
      
        	14.8	
                Changes in constitution or reorganisation of the Lender

              

      

    

    For the avoidance of doubt and without prejudice to the provisions of Clause 14.1 (Binding Effect), this Agreement shall remain binding on the Borrowers and the other Security Parties notwithstanding any change in the constitution of the Lender or its absorption in, or amalgamation with, or the acquisition of
      all or part of its undertaking or assets by, any other person, or any reconstruction or reorganisation of any kind, to the intent that this Agreement shall remain valid and effective in all respects in favour of any Assignee, Transferee or other
      successor in title of the Lender in the same manner as if such Assignee, Transferee or other successor in title had been named in this Agreement as a party instead of, or in addition to, the Lender.

    
      
        	14.9	
                Securitisation

              

      

    

    The Lender may include all or any part of the Loan in a securitisation (or similar transaction) pursuant to Law 3156/2003, or any other relevant legislation introduced or enacted
      after the date of this Agreement, without the consent of, or consultation with, but after giving 15-days notice to the Borrowers. The Borrowers will assist the Lender as necessary to achieve a successful securitisation (or similar transaction) provided

        that the Borrowers shall not be required to bear any third party costs related to any such securitisation (or similar transaction) and that such securitisation (or similar transaction) shall not result in an increase of the Borrowers’
      obligations under this Agreement and the other Security Documents and need only provide any such information which any third parties may

    
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    reasonably require.

    
      
        	14.10	
                Lending Office

              

      

    

    The Lender shall lend through its office at the address specified in the preamble of this Agreement or through any other office of the Lender selected from time to time by it
      through which the Lender wishes to lend for the purposes of this Agreement.  If the office through which the Lender is lending is changed pursuant to this Clause 14.10, the Lender shall notify the Borrowers promptly of such change and upon
      notification of any such transfer, the word “Lender” in this Agreement and in the other Finance Documents shall mean the Lender, acting through such branch or branches and the terms and provisions of this
      Agreement and of the other Finance Documents shall be construed accordingly.

    
      
        
          	15.	
                  MISCELLANEOUS

                

          
            

        

      

    

    
      
        	15.1	
                Time of essence

              

      

    

    Time is of the essence as regards every obligation of the Borrowers under this Agreement.

    
      
        	15.2	
                Cumulative Remedies

              

      

    

    The rights and remedies of the Lender contained in this Agreement and the other Finance Documents are cumulative and neither exclusive of each other nor of any other rights or
      remedies conferred by law.

    
      
        	15.3	
                No implied waivers

              

      

    

    No failure, delay or omission by the Lender to exercise any right, remedy or power vested in the Lender under this Agreement and/or the other Finance Documents or by law shall
      impair such right or power, or be construed as a waiver of, or as an acquiescence in any default by the Borrowers, nor shall any single or partial exercise by the Lender of any power, right or remedy preclude any other or further exercise thereof or
      the exercise of any other power, right or remedy.  In the event of the Lender on any occasion agreeing to waive any such right, remedy or power, or consenting to any departure from the strict application of the provisions of this Agreement or of any
      other Finance Document, such waiver shall not in any way prejudice or affect the powers conferred upon the Lender under this Agreement and the other Finance Documents or the right of the Lender thereafter to act strictly in accordance with the terms
      of this Agreement and the other Finance Documents.  No modification or waiver by the Lender of any provision of this Agreement or of any of the other Finance Documents nor any consent by the Lender to any departure therefrom by any Security Party
      shall be effective unless the same shall be in writing and then shall only be effective in the specific case and for the specific purpose for which given.  No notice to or demand on any such party in any such case shall entitle such party to any
      other or further notice or demand in similar or other circumstances.

    
      
        	15.4	
                Recourse to other security

              

      

    

    The Lender shall not be obliged to make any claim or demand or to resort to any Finance Document or other means of payment now or hereafter held by or available to it for
      enforcing this Agreement or any of the other Finance Documents against the Security Parties (or any of them) or any other person liable and no action taken or omitted by the Lender in connection with any such Finance Document or other means of
      payment will discharge, reduce, prejudice or affect the liability of any Security Party under this Agreement and the other Finance Documents to which it is, or is to be, a party.

    
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        	15.5	
                Integration of Terms

              

      

    

    This Agreement contains the entire agreement of the parties and its provisions supersede the provisions of the Commitment Letter (save for the provisions thereof which relate to
      fees) and any and all other prior correspondence and oral negotiation by the parties in respect of the matters regulated by this Agreement.

    
      
        	15.6	
                Amendments

              

      

    

    This Agreement and any other Finance Documents shall not be amended or varied in their respective terms by any oral agreement or representation or in any other manner other than
      by an instrument in writing of even date herewith or subsequent hereto executed by or on behalf of the parties hereto or thereto.

    
      
        	15.7	
                Invalidity of Terms

              

      

    

    In the event of any provision contained in one or more of this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto being invalid,
      illegal or unenforceable in any respect under any applicable law in any jurisdiction whatsoever, such provision shall be ineffective as to that jurisdiction only without affecting the remaining provisions hereof or thereof.  If, however, this event
      becomes known to the Lender prior to the drawdown of the Commitment or of any part thereof the Lender shall be entitled to refuse drawdown until this discrepancy is remedied. In case that the invalidity of a part results in the invalidity of the
      whole Agreement, it is hereby agreed that there will exist a separate obligation of the Borrowers for the prompt payment to the Lender of all the Outstanding Indebtedness. Where, however, the provisions of any such applicable law may be waived, they
      are hereby waived by the parties hereto to the full extent permitted by the law to the intent that this Agreement, the other Finance Documents and any other documents executed pursuant hereto or thereto shall be deemed to be valid binding and
      enforceable in accordance with their respective terms.

    
      
        	15.8	
                Language and genuineness of documents

              

      

    

    
      
        	

              	(a)	
                Language:  All certificates, instruments and other documents to be delivered under or supplied in connection with this Agreement or any of the other Finance Documents shall be in the Greek or the English language (or such other
                  language as the Lender shall agree) or shall be accompanied by a certified Greek translation upon which the Lender shall be entitled to rely.

              

      

    

    
      
        	

              	(b)	
                Certification of documents:  Any copies of documents delivered to the Lender shall be duly certified as true, complete and accurate copies by appropriate authorities or legal counsel practicing in Greece or otherwise as will be
                  acceptable to the Lender at the sole discretion of the Lender.

              

      

    

    
      
        	

              	(c)	
                Certification of signature:  Signatures on Board or shareholder resolutions, Secretary’s certificates and any other documents are, at the discretion of the Lender, to be verified for their genuineness by appropriate Consul or
                  other competent authority.

              

      

    

    
      
        	15.9	
                Further assurances

              

      

    

    Each of the Borrowers undertakes that the Finance Documents shall both at the date of execution and delivery thereof and so long as any moneys are owing under any of the Finance
      Documents be valid and binding obligations of the respective parties thereto and enforceable in accordance with their respective terms and that it will, at its expense,

    
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    execute, sign, perfect and do, and will procure the execution, signing, perfecting and doing by each of the other Security Parties of, any and every such further assurance,
      document, act or thing as in the reasonable opinion of the Lender may be necessary or desirable for perfecting the security contemplated or constituted by the Finance Documents.

    
      
        	15.10	
                Inconsistency of Terms

              

      

    

    In the event of any inconsistency or conflict between the provisions of this Agreement and the provisions of any other Finance Document the provisions of this Agreement shall
      prevail.

    
      
        	15.11	
                Counterparts

              

      

    

    This Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute but one and the same instrument.

    
      
        	15.12	
                Confidentiality

              

      

    

    
      
        	

              	(a)	
                Each of the parties hereto agree and undertake to keep confidential any documentation and any confidential information concerning the business, affairs, directors or employees of the other which comes into its possession in connection
                  with this Agreement and not to use any such documentation, information for any purpose other than for which it was provided.

              

      

    

    
      
        	

              	(b)	
                The Borrowers acknowledge and accept that the Lender may be required by law or that it may be appropriate for the Lender to disclose information and deliver documentation relating to the Borrowers and the transactions and matters in
                  relation to this Agreement and/or the other Finance Documents to governmental or regulatory agencies and authorities.

              

      

    

    
      
        	

              	(c)	
                The Borrowers acknowledge and accept that in case of occurrence of any of the Events of Default the Lender may disclose information and deliver documentation relating to the Borrowers and the transactions and matters in relation to
                  this Agreement and/or the other Finance Documents to third parties to the extent that this is necessary for the enforcement or the contemplation of enforcement of the Lender’s rights or for any other purpose for which in the opinion of
                  the Lender, such disclosure would be useful or appropriate for the interests of the Lender or otherwise and the Borrowers expressly authorise any such disclosure and delivery.

              

      

    

    
      
        	

              	(d)	
                The Borrowers acknowledge and accept that the Lender may be prohibited or it may be inappropriate for the Lender to disclose information to the Borrowers by reason of law or duties of confidentiality owed or to be owed to other
                  persons.

              

      

    

    
      
        	

              	(e)	
                This Clause 15.12 shall be: (i) in addition to all other duties of confidentiality imposed on the Lender and its professional advisers under applicable law; and (ii) subject to any other applicable provisions contained in this
                  Agreement and the other Finance Documents.

              

      

    

    
      
        	15.13	
                Process of personal data

              

      

    

    
      
        	

              	(a)	
                Process of personal data: The Borrower hereby confirms that it has been informed that its personal data and/or the personal data of its director(s), officer(s) and legal representative(s) (together the “personal data”) contained in this Agreement (and any supplemental or amendatory agreement thereof) and the other Finance

              

      

    

    
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    Documents or the personal data that have been or will be lawfully received or obtained by the Lender in relation to this Agreement and the other Finance Documents or the
      enforcement of all of the rights, powers and remedies possessed by the Lender under this Agreement (and any supplemental or amendatory agreement thereof) and/or under any other Finance Document will be included at the personal data database
      maintained by the Lender as processing agent (Υπεύθυνη Επεξεργασίας) and will be processed by the Lender or by third parties for the purpose of maintaining the security created by this Agreement (and any supplemental or amendatory agreement thereof) and the other Finance
      Documents and preserving of all of the rights, powers and remedies possessed by the Lender thereunder and properly serving, supporting and monitoring their current business relationship as provided in the information brochure “Information for the Processing of Personal Data” (Ενημέρωση για την επεξεργασία δεδομένων προσωπικού χαρακτήρα) which forms an integral
      part of this Agreement and the Borrower hereby confirms that a copy of such information brochure has been received by the Borrower, its director(s), officer(s) and legal representative(s) and has been perused, duly understood and fully agreed by each
      of them.

    
      
        	

              	(b)	
                Duration of the process: The personal data process shall survive the termination of this Agreement for such period as it is required by the applicable law.

              

      

    

    
      
        
          	16.	
                  JOINT AND SEVERAL LIABILITY OF THE BORROWERS

                

          
            

        

      

    

    
      
        	16.1	
                Joint and several liability

              

      

    

    All liabilities and obligations of the Borrowers under this Agreement shall, whether expressed to be so or not, be joint and several.

    
      
        	16.2	
                No impairment of Borrowers’ obligations

              

      

    

    The liabilities and obligations of a Borrower shall not be impaired by:

    
      
        	

              	(a)	
                this Agreement being or later becoming void, unenforceable or illegal as regards the other Borrower;

              

      

    

    
      
        	

              	(b)	
                the Lender entering into any rescheduling, refinancing or other arrangement of any kind with the other Borrower;

              

      

    

    
      
        	

              	(c)	
                the Lender releasing the other Borrower or any Security Interest created by a Finance Document; or

              

      

    

    
      
        	

              	(d)	
                any time, waiver or consent granted to, or composition with the other Borrower or other person;

              

      

    

    
      
        	

              	(e)	
                the release of the other Borrower or any other person under the terms of any composition or arrangement with any creditor thereof;

              

      

    

    
      
        	

              	(f)	
                the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, the other Borrower or other person or any non-presentation or
                  non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

              

      

    

    
      
        	

              	(g)	
                any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of the other Borrower or any other person;

              

      

    

    
      
        	

              	(h)	
                any amendment, novation, supplement, extension, restatement (however

              

      

    

    
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    fundamental, and whether or not more onerous) or replacement of a Finance Document or any other document or security including, without limitation, any change in the purpose of,
      any extension of or any increase in any facility or the addition of any new facility under any Finance Document or other document or security;

    
      
        	

              	(i)	
                any unenforceability, illegality or invalidity of any obligation or any person under any Finance Document or any other document or security;

              

      

    

    
      
        	

              	(j)	
                any insolvency or similar proceedings; or

              

      

    

    
      
        	

              	(k)	
                any combination of the foregoing.

              

      

    

    
      
        	16.3	
                Principal debtor

              

      

    

    Each Borrower declares that it is and will, throughout the Security Period, remain a principal debtor for all amounts owing under this Agreement and the Finance Documents and
      none of the Borrowers shall in any circumstances be construed to be a surety for the obligations of the other Borrower under this Agreement.

    
      
        	16.4	
                Subordination

              

      

    

    Subject to Clause 16.5 (Borrowers’ required action),
      during the Security Period, none of the Borrowers shall:

    
      
        	

              	(a)	
                claim any amount which may be due to it from the other Borrower whether in respect of a payment made, or matter arising out of, this Agreement or any Finance Document, or any matter unconnected with this Agreement or any Finance
                  Document; or

              

      

    

    
      
        	

              	(b)	
                take or enforce any form of security from the other Borrower for such an amount, or in any other way seek to have recourse in respect of such an amount against any asset of the other Borrower; or

              

      

    

    
      
        	

              	(c)	
                set off such an amount against any sum due from it to the other Borrower; or

              

      

    

    
      
        	

              	(d)	
                prove or claim for such an amount in any liquidation, administration, arrangement or similar procedure involving the other Borrower or other Security Party; or

              

      

    

    
      
        	

              	(e)	
                exercise or assert any combination of the foregoing.

              

      

    

    
      
        	16.5	
                Borrowers’ required action

              

      

    

    If during the Security Period, the Lender, by notice to the Borrowers, requires it to take any action referred to in paragraphs (a) to (d) of Clause 16.4 (Subordination), in relation to the other Borrower, that Borrower shall take that action as soon as practicable after
      receiving the Lender's notice.

    
      
        	16.6	
                Deferral of Borrowers' rights

              

      

    

    Until all amounts which may be or become payable by the Borrowers under or in connection with the Finance Documents have been irrevocably paid in full and unless the Lender
      otherwise directs, no Borrower will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents:

    
      81

      
        

    

    
      
        	

              	(a)	
                to be indemnified by the other Borrower; or

              

      

    

    
      
        	

              	(b)	
                to claim any contribution from the other Borrower in relation to any payment made by it under the Finance Documents.

              

      

    

    
      
        
          	17.	
                  NOTICES AND COMMUNICATIONS

                

          
            

        

      

    

    
      
        	17.1	
                Notices

              

      

    

    Every notice, request, demand or other communication under the Agreement or, unless otherwise provided therein, any of the other Finance Documents shall:

    
      
        	

              	(a)	
                be in writing delivered personally or by first-class prepaid letter (airmail if available), or shall be served through a process server or subject to Clause 10.10 (Communications Indemnity) and Clause 10.11 (Electronic Communication) by fax or electronic mail;

              

      

    

    
      
        	

              	(b)	
                be deemed to have been received, subject as otherwise provided in this Agreement or the relevant Finance Document, in the case of fax or electronic mail, at the time of dispatch as per transmission report (provided, in either case,
                    that if the date of despatch is not a business day in the country of the addressee it shall be deemed to have been received at the opening of business on the next such business day), and in the case of a letter when delivered or
                  served personally or five (5) days after it has been put into the post; and

              

      

    

    
      
        	

              	(c)	
                be sent:

              

      

    

    
      
        	

              	(i)	
                if to be sent to any Security Party, to:

              

      

    

    c/o PAVIMAR S.A..

    17 km National Road Athens-Lamia & 25 Foinikos Street,

    Nea Kifissia 145 64, Greece

    Facsimile No: +30 211 888 0299     

    Attention: Mrs. Viktoria Poziopoulou

    E-mail: v.poziopoulou@pavimarship.com

    and

    
      
        	

              	(ii)	
                if to be sent to the Lender, to

              

      

    

    Alpha Bank A.E.

    93 Akti Miaouli

    185 38 Piraeus, Greece

    Fax No.: +30210 42 90 268

    Attention: The Manager

    E-mail: shipdivision@alpha.gr

    or to such other person, address fax number or electronic address as is notified by the relevant Security Party or the Lender (as the case
      may be) to the other parties to this Agreement and, in the case of any such change of address, or fax number or electronic address notified to the Lender, the same shall not become effective until notice of
      such change is actually received by the Lender and a copy of the notice of such change is signed by the Lender.

    
      82

      
        

    

    
      
        	17.2	
                Effective date of notices

              

      

    

    Subject to Clauses 17.3 (Service outside business hours)
      and 17.4 (Illegible notices):

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    

      
        
          	17.3	
                  Service outside business hours

                

        

      

    

    However, if under Clause 17.2 (Effective date of notices) a notice would be deemed to be served:

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                on such a Banking Day, but after 5 p.m. local time,

              

      

    

    the notice shall (subject to Clause 17.4 (Illegible notices)) be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a Banking Day.

    
      
        	17.4	
                Illegible notices

              

      

    

    Clauses 17.2 (Effective date of notices) and

      17.3 (Service outside business hours) do not apply if the recipient of a notice notifies the sender within one 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.

    
      
        
          	17.5	
                  Valid notices

                

        

      

    

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

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        
          	17.6	
                  Effect of electronic communication

                

        

      

      

    
      
        	

              	(a)	
                Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means (including, without limitation, by way of posting to a secure website) if
                  those two Parties:

              

      

    

    
      
        	

              	(i)	
                notify each other in writing of their electronic mail address and/or any other information required to enable the transmission of information by that means; and

              

      

    

    
      
        	

              	(ii)	
                notify each other of any change to their address or any other such information supplied by them by not less than five Banking Days' notice.

              

      

    

    
      83

      
        

    

    
      
        	

              	(b)	
                Any such electronic communication as specified in paragraph 0(a) above to be made between a Security Party and the Lender may only be made in that way to the extent that those two Parties agree that, unless and until notified to the
                  contrary, this is to be an accepted form of communication.

              

      

    

    
      
        	

              	(c)	
                Any such electronic communication as specified in paragraph 0(a) above made between any two Parties will be effective only when actually received (or made available) in readable form and in the case of any electronic communication made
                  by a Party to the Lender only if it is addressed in such a manner as the Lender shall specify for this purpose.

              

      

    

    
      
        	

              	(d)	
                Any electronic communication which becomes effective, in accordance with paragraph (c) above, after 5.00 p.m. in the place in which the Party to whom the relevant communication is sent or made available has its address for the purpose
                  of this Agreement shall be deemed only to become effective on the following Banking Day.

              

      

    

    
      
        	

              	(e)	
                Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 17.6.

              

      

    

    
      
        
          	18.	
                  LAW AND JURISDICTION

                

          
            

        

      

    

    
      
        	18.1	
                Governing Law

              

      

    

    
      
        	

              	(a)	
                This Agreement and any non-contractual obligations connected with it shall be governed by and construed in accordance with English Law.

              

      

    

    
      
        	

              	(b)	
                For the purposes of enforcement in Greece, it is hereby expressly agreed that English law as the governing law of this Agreement will be proved by an affidavit of a solicitor from an English law firm to be appointed by the Lender and
                  the said affidavit shall constitute full and conclusive evidence binding on the Borrowers but the Borrowers shall be allowed to rebut such evidence save for witness.

              

      

    

    
      
        	18.2	
                Jurisdiction

              

      

    

    
      
        	

              	(a)	
                The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement or any non-contractual obligations connected with it (including a dispute regarding the existence, validity or
                  termination of this Agreement and including claims arising out of tort or delict) (a “Dispute”).

                  Each of the Borrowers irrevocably and unconditionally submits to the jurisdiction of such courts.

              

      

    

    
      
        	

              	(b)	
                The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary and waives any objections to the inconvenience of England as a forum.

              

      

    

    
      
        	

              	(c)	
                This Clause 18.2 is for the benefit of the Lender only.  As a result, the Lender shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Lender may
                  take concurrent proceedings in any number of jurisdictions.

              

      

    

    
      84

      
        

    

    
      
        	18.3	
                Process Agent for English Proceedings

              

      

    

    Without prejudice to any other mode of service allowed under any relevant law each of the Borrowers irrevocably designates, appoints and empowers Messrs. Hill Dickinson Services (London) Limited, at present of The Broadgate Tower, 20 Primrose Street, London EC2A 2EW, England (Mr. Anthony Paizes, Email:
      Anthony.Paizes@hilldickinson.com), (hereinafter called the “Process Agent for English Proceedings”), to receive for it and on its behalf, service of process issued out of the English courts
      in relation to any proceedings before the English courts in connection with any Finance Document, provided, however, that:

    
      
        	

              	(a)	
                each of the Borrowers hereby agrees and undertakes to maintain a Process Agent for English Proceedings throughout the Security Period and hereby agrees that in the event that if any Process Agent for English Proceedings is unable for
                  any reason to act as agent for service of process, such Borrower must immediately (and in any event within ten (10) days of such event taking place) appoint another agent on terms acceptable to the Lender. Failing this, the Lender may
                  appoint for this purpose a substitute Process Agent for English Proceedings and the Lender is hereby irrevocably authorised to effect such appointment on Borrowers’ behalf. The appointment of such Process Agent for English Proceedings
                  shall be valid and binding from the date notice of such appointment is given by the Lender to the Borrowers in accordance with Clause 17.1 (Notices); and

              

      

    

    
      
        	

              	(b)	
                each of the Borrowers hereby agrees that failure by a Process Agent for English Proceedings to notify the Borrowers of the process will not invalidate the proceedings concerned.

              

      

    

    
      
        	18.4	
                Proceedings in any other country

              

      

    

    If it is decided by the Lender that any such proceedings should be commenced in any other country, then any objections as to the jurisdiction or any claim as to the inconvenience
      of the forum is hereby waived by each of the Borrowers and it is agreed and undertaken by each of the Borrowers to instruct lawyers in that country to accept service of legal process and not to contest the validity of such proceedings as far as the
      jurisdiction of the court or courts involved is concerned and each of the Borrowers agrees that any judgment or order obtained in an English court shall be conclusive and binding on the Borrowers and shall be enforceable without review in the courts
      of any other jurisdiction.

    
      
        	18.5	
                Process Agent (antiklitos) in Greece

              

      

    

    Mr. Vicky Poziopoulou, an Attorney-at-Law, presently of c/o Pavimar S.A., currently of 25 F0inikos Street, Kifissia 145 64, Greece (hereinafter called the “Process Agent for Greek Proceedings”) is hereby appointed by each of the
      Borrowers as agent to accept service, upon whom any judicial process in respect of proceedings in Greece may be served and any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial
      announcement of claim, notice, request, demand or other communication under this Agreement or any of the Finance Documents. In the event that the Process Agent for Greek Proceedings (or any substitute process agent notified to the Lender in
      accordance with the foregoing) cannot be found at the address specified above (or, as the case may be, notified to the Lender), which will be conclusively proved by a deed of a process server to the effect that the Process Agent  for Greek
      Proceedings was not found at such address, any process notice, judicial or extra-judicial request, demand for payment, payment order, foreclosure proceedings, notarial announcement of claim or

    
      85

      
        

    

    other communication to be sent to any Security Party may be validly served/notified in accordance with the relevant provisions of the Hellenic Code on Civil Procedure.

    
      
        	18.6	
                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.

    
      
        	18.7	
                Meaning of “proceedings”

              

      

    

    In this Clause 18 “proceedings” means proceedings of any kind, including an application for a provisional or
      protective measure.

    

    

    

    

    

    

    [Remainder of page intentionally left blank]

    
      86

      
        

    

    SCHEDULE 1

    Form of Drawdown Notice

    (referred to in Clause 2.2)

    To:         ALPHA BANK A.E.

    93 Akti Miaouli

    185 38 Piraeus, Greece

     [●] November, 2019

    	
            Re:        US$11,000,000 Loan Agreement (the “Loan Agreement”) dated [●] November, 2019 made between (1) the
              Lender, as lender and (2) (a) Pikachu Shipping Co. of the Marshall Islands and Spetses Shipping Co., of the
              Marshall Islands (the “Borrowers”), as joint and several borrowers.

          

    
      
        	1.	
                We refer to the Loan Agreement (terms defined in the Loan Agreement have their defined meanings when used in this Drawdown Notice) and hereby give you notice that we wish to draw the Commitment as follows:

              

      

    

    
      
        	

              	(i)	
                Loan: the full amount of the Commitment in the amount of [US$11,000,000 (Dollars Eleven million)];

              

      

    

    
      
        	

              	(ii)	
                Drawdown Date: [●] November, 2019;

              

      

    

    
      
        	

              	(iii)	
                duration of first Interest Period: duration of the first Interest Period in respect of the Loan shall be [●] months; and

              

      

    

    
      
        	

              	(iv)	
                Payment instructions: [in payment to the Operating Accounts as per our instructions under separate cover for the purposes set out in Clause 1.1 (Amount

                      and purpose) of the Loan Agreement].

              

      

    

    
      
        
          	2.	
                  We confirm, represent and warrant that:

                

        

      

    

    
      
        	

              	(i)	
                no event or circumstance has occurred and is continuing which constitutes a Default or will result from the borrowing of the Loan;

              

      

    

    
      
        	

              	(ii)	
                the representations and warranties contained in Clause 6 (Representations and warranties) of the Loan
                  Agreement and the representations and warranties contained in each of the other Finance Documents are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such date;

              

      

    

    
      
        	

              	(iii)	
                the borrowing to be effected by the drawing of the Loan will be within our corporate powers, has been validly authorised by appropriate corporate action and will not cause any limit on our borrowings (whether imposed by statute,
                  regulation, agreement or otherwise) to be exceeded;

              

      

    

    
      
        	

              	(iv)	
                we will not use the Loan proceeds or any part thereof for the purpose of acquiring shares in the share capital of the Lender or other banks and/or financial institutions or acquiring hybrid capital debentures (τίτλους υβριδικών κεφαλαίων) of the Lender or other
                  banks and/or financial institutions; and

              

      

    

    
      
        	

              	(v)	
                there has been no change in the ownership, management, operations and no Material Adverse Change in our financial position or in the consolidated financial position of ourselves and the other Security Parties from that described by us
                  to the Lender in the negotiation of the Loan Agreement.

              

         

        

        
          87

          
            

        

        
          
            
              
                	3.	
                        This Drawdown Notice cannot be revoked without the prior consent of the Lender.

                      

              

            

          

          	
                  SIGNED by

                	
                  )

                	 	 
	
                  Mr.

                	
                  )

                	 	 
	
                  for and on behalf of

                	
                  )

                	 	 
	
                  PIKACHU SHIPPING CO.

                	
                  )

                	 	 
	
                  of the Marshall Islands,

                  

                	
                  )

                	 	 
	in the presence of: 

                	) 

                	                           Attorney-in-fact

                	 
	 	 	 	 

        

         

        

        
          	
                  Witness:

                	
                  

                  

                	 
	
                  Name:

                	
                           [●]

                	 
	
                  Title:

                	
                           Attorney-at-Law

                	 
	
                  Address:

                	
                           [●],

                	 
	 	
                           Piraeus, Greece

                	 

        

        
          
             

            

            	
                    SIGNED by

                  	
                    )

                  	 	 
	
                    Mr.

                  	
                    )

                  	 	 
	
                    for and on behalf of

                  	
                    )

                  	 	 
	
                    SPETSES SHIPPING CO.

                  	
                    )

                  	 	 
	
                    of the Marshall Islands,

                    

                  	
                    )

                  	 	 
	in the presence of: 

                  	) 

                  	                           Attorney-in-fact

                  	 
	 	 	 	 

          

           

          

           

          

           

          

          
            	
                    Witness:

                  	
                    

                    

                  	 
	
                    Name:

                  	
                             [●]

                  	 
	
                    Title:

                  	
                             Attorney-at-Law

                  	 
	
                    Address:

                  	
                             [●],

                  	 
	 	
                             Piraeus, Greece

                  	 

          

        

         

        

        
          88

          
            

        

        
          Schedule 2

        

        
          

          

          Form of Insurance Letter

          

            	
                    To:

                  	
                    [P&I Club]

                  
	 	
                    [●]

                  
	 	
                    [●]

                  
	 	 
	
                    From:

                  	
                    [●]

                  
	 	
                    [●],

                  
	 	
                    [●]

                  

          

          

          [●] 20[●]

          Dear Sirs

          m.v. “[●]” (the “Vessel”)

          We are obtaining loan finance from Alpha Bank A.E. (the “Lender”) secured (inter alia) by a first ship mortgage over the Vessel.  The Vessel's insurances will also
            be assigned to the Lender.

          You are hereby authorised to send a copy of the Certificate of Entry for the Vessel to the Lender, c/o their lawyers, namely, Theo

              V. Sioufas & Co. Law Offices, of 13 Defteras Merarchias Street, 185 35 Piraeus, Greece.  Further, you are also irrevocably authorised to provide the Lender from time to time with any other information whatsoever which they may
            require relating to the entry of the Vessel in the association.

          This letter is governed by, and shall be construed in accordance with, English law.

          

          

          

          

          

          

          _____________________________

          

          

          For and on behalf of

          [●]

           

          

           

          

          
            89

            
              

          

          
            EXECUTION PAGE

            

            

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

            
              
                	
                        SIGNED by

                      	
                        )

                      	 	 
	
                        Mrs. Viktoria Poziopoulou

                      	
                        )

                      	 	 
	
                        for and on behalf of

                      	
                        )

                      	 	 
	
                        PIKACHU SHIPPING CO.,

                      	
                        )

                      	/s/ Viktoria Poziopoulou	 
	
                        of the Marshall Islands, in the presence of:

                      	
                        )

                      	                           Attorney-in-fact	 
	 	 	 	 

              

               

              

              
                	
                        Witness:

                      	
                        /s/ Charalampos Sioufas 

                      	 
	
                        Name:

                      	
                        Charalampos Sioufas

                      	 
	
                        Address:

                      	
                        
                          13 Defteras Merarchias

                          
                            Piraeus, Greece

                          

                        

                      	 
	
                        Occupation:

                      	
                        
                          Attorney-at-Law 

                          

                        

                      	 
	 	
                        

                        

                      	 

              

              
                
                   

                  

                  	
                          SIGNED by

                        	
                          )

                        	 	 
	
                          
                            Mrs. Victoria Poziopoulou

                          

                        	
                          )

                        	 	 
	
                          for and on behalf of

                        	
                          )

                        	 	 
	
                          SPETSES SHIPPING CO.,

                        	
                          )

                        	/s/ Victoria Poziopoulou	 
	
                          of the Marshall Islands, in the presence of: 

                        	
                          )

                        	                           Attorney-in-fact 

                        	 
	 	 	 	 

                

                 

                

                 

                

                
                  	
                          Witness:

                        	
                          
                            /s/ Charalampos Sioufas 

                          

                        	 
	
                          Name:

                        	
                          Charalampos Sioufas

                        	 
	
                          Address:

                        	
                          
                            13 Defteras Merarchias

                            
                              Piraeus, Greece

                            

                          

                        	 
	
                          Occupation:

                        	
                          
                            Attorney-at-Law 

                            

                          

                        	 
	 	
                          

                          

                        	 

                

                 

                

                
                  	
                          SIGNED by

                        	
                          )

                        	 	 
	
                          
                            
                              Mrs. Aikaterini Damianidou and

                            

                          

                        	
                          )

                        	/s/ Aikaterini Damianidou	 
	
                          Mrs. Chrysanthi Papathanasopoulou

                        	)

                        	                           Attorney-in-fact 

                        	 
	
                          for and on behalf of

                        	
                          )

                        	 	 
	
                          
                            ALPHA BANK A.E.,

                          

                        	
                          )

                        	 	 
	
                          of Greece,  

                        	
                          )

                        	 

                        	 
	in the presence of: 

                        	) 

                        	/s/ Chrysanthi Papathanasopoulou                   	 
	 

                        	 	                           Attorney-in-fact 

                        	 

                

                 

                

                 

                

                
                  	
                          Witness:

                        	
                          
                            
                              /s/ Charalampos Sioufas 

                            

                          

                        	 
	
                          Name:

                        	
                          Charalampos Sioufas

                        	 
	
                          Address:

                        	
                          
                            13 Defteras Merarchias

                            
                              Piraeus, Greece

                            

                          

                        	 
	
                          Occupation:

                        	
                          
                            Attorney-at-Law 

                            

                          

                        	 
	 	
                          

                          

                        	 

                

                 

                

                 

                

              

            

          

        

      

    

  

  90December 13, 2019

New Jersey Resources Corporation
1415 Wyckoff Rd.
Wall Township, NJ 07719
Attention: Roberto Bel, Treasurer

	Re:	     	4-Month $150,000,000 Revolving Line of Credit Facility from PNC Bank, National Association to New Jersey Resources Corporation

Dear Mr. Bel:

We are pleased to inform you that PNC Bank, National Association (the “Bank”), has approved your request for a loan as described in Section 1 below (the “Loan”) to New Jersey Resources Corporation (the “Borrower”), subject to the terms and conditions and in reliance upon the representations and warranties of the Borrower set forth in this letter. We look forward to this opportunity to help you meet the financing needs of your business. All the details regarding your Loan are outlined in the following sections of this letter.

1. Loan and Use of Proceeds. The Loan governed by this letter is a committed revolving line of credit under which the Borrower may request and the Bank, subject to the terms and conditions of this Agreement, will make advances to the Borrower from time to time until the Expiration Date, in an aggregate amount outstanding at any time not to exceed $150,000,000 (the “Line of Credit”). The “Expiration Date” shall have the meaning set forth in the Note (defined below). The Borrower acknowledges and agrees that in no event will the Bank be under any obligation to extend or renew the Line of Credit beyond the Expiration Date. In no event shall the aggregate unpaid principal amount of advances under the Line of Credit exceed the face amount of the Line of Credit. Establishment of the Line of Credit is for the purpose of providing additional short-term liquidity for the Borrower and advances under the Line of Credit will be used for working capital or other general business purposes of the Borrower.

2. Note. The advances under the Loan will be evidenced by a single promissory note, dated of even date herewith, in the principal face amount of $150,000,000, executed by the Borrower in favor of the Bank (together with all renewals, extensions, amendments and restatements thereof, collectively, the “Note”), which sets forth the interest rate, repayment and other provisions of the respective Loan. This letter (the “Letter Agreement”), the Note and the other agreements and documents executed and/or delivered pursuant hereto, as each may be amended, modified, extended or renewed from time to time, will constitute the “Loan Documents.” Capitalized terms not defined herein shall have the meaning ascribed to them in the Note.

New Jersey Resources Corporation
December 13, 2019
Page 2

3. Interest Rate. Interest on the unpaid balance of advances under the Loan will be charged at the rates, and be payable on the dates and times, set forth in the Note.

4. Representations and Warranties. To induce the Bank to extend the Loan and upon the making of each advance to the Borrower under the Line of Credit, the Borrower represents and warrants as follows:

(a) The Borrower is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. The Borrower has the lawful power to own or lease its properties and to engage in the business it presently conducts or proposes to conduct. The Borrower is duly licensed or qualified and in good standing in each jurisdiction where the failure to be so licensed or qualified could reasonably be expected to result in a Material Adverse Change.

(b) This Letter Agreement and the Note have been duly and validly executed and delivered by the Borrower. This Letter Agreement and the Note constitute legal, valid and binding obligations the Borrower, enforceable against the Borrower in accordance with its terms, except to the extent that enforceability of any of the Loan Documents may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforceability of creditors' rights generally or limiting the right of specific performance.

(c) Neither the execution and delivery of this Letter Agreement and the Note, nor the consummation of the transactions herein or therein contemplated or compliance with the terms and provisions hereof or thereof by the Borrower will conflict with, constitute a default under or result in any breach of (i) the terms and conditions of the certificate of incorporation, bylaws or other organizational documents of the Borrower, or (ii) any Law or any material agreement or instrument or order, writ, judgment, injunction or decree to which the Borrower is a party or by which it is bound or to which it is subject, or result in the creation or enforcement of any Lien, charge or encumbrance whatsoever upon any property (now or hereafter acquired) of the Borrower (other than any Liens that may be granted in favor of the Bank).

(d) No event has occurred and is continuing and no condition exists or will exist after giving effect to the borrowings or other extensions of credit to be made under or pursuant to this Letter Agreement and the Note which constitutes an Event of Default or Potential Default.

(e) The Borrower is not in violation of (i) any term of its certificate of incorporation, bylaws or other organizational documents or (ii) any material agreement or instrument to which it is a party or by which it or any of its properties may be subject or bound where such violation could reasonably be expected to result in a Material Adverse Change.

New Jersey Resources Corporation
December 13, 2019
Page 3

5. Conditions to Advances. The Bank’s obligation to make any advance under any Loan is subject to the conditions that as of the date of the advance (a) no Event of Default or Potential Default shall have occurred and be continuing, (b) the representations and warranties of the Borrower under the Loan Documents shall be true on and as of the date of such advance with the same effect as though such representations and warranties had been made on and as of such date (except representations and warranties which expressly relate solely to an earlier date or time, which representations and warranties shall be true and correct on and as of the specific dates or times referred to therein), (c) the making of the advance shall not contravene any Law applicable to the Borrower, and (d) the Borrower shall have made a proper and timely request for such advance as set forth herein and in the Note. In addition, the Bank’s commitment to fund the initial advance on or after the date hereof under the Line of Credit is subject to the satisfaction of the following conditions prior to or as of the date hereof:

5.1 Authorization Documents. The Bank shall have received certified copies of resolutions of the board of directors of the Borrower authorizing, to the satisfaction of the Bank, this Letter Agreement and the Note, together with a current incumbency certificate and a current good standing certificate from the Borrower’s jurisdiction of organization with respect to the Borrower.

5.2 Receipt of Loan Documents. The Bank shall have received this Letter Agreement, the Note and such other instruments and documents which the Bank may have reasonably requested prior to the date hereof in connection with the transactions provided for in this Letter Agreement and the Note, which shall include an opinion of counsel in form and substance reasonably satisfactory to the Bank.

6. Covenants. Unless compliance is waived in writing by the Bank, until termination of the commitment for the Line of Credit and payment in full of the Loan:

(a) The Borrower will promptly submit to the Bank the financial statements and certifications set forth on Exhibit A attached hereto.

(b) The Borrower will notify the Bank in writing of the occurrence of any Event of Default or Potential Default, and of any other event or occurrence as to which the Borrower is required to provide notice to the administrative agent and/or lenders party to the Credit Agreement.

(c) The Borrower shall pay to the Bank the commitment fees set forth on Exhibit A attached hereto.

(d) If the Credit Agreement is terminated and repaid in full prior to the Expiration Date, the Borrower shall, if so required by the Bank in its discretion, also repay in full all obligations outstanding under this Letter Agreement and the Note, and the Bank may, in its discretion, cancel the Line of Credit and have no further obligation to lend or extend credit hereunder and under the Note.

7. Fees; Expenses. The Bank agrees to pay its counsel fees incurred in connection with the documentation and closing of the Loan through the date hereof. Thereafter, the Borrower agrees to reimburse the Bank, on demand, for all costs and expenses incurred by the Bank in connection with the preparation, negotiation and delivery of this Letter Agreement and the other Loan Documents after the date hereof, and any modifications or amendments thereto or renewals thereof, and the collection of all of the obligations evidenced by the Note (collectively, the “Obligations”), including, but not limited to, enforcement actions, relating to the Loan, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions or proceedings arising out of or relating to this Letter Agreement, including (i) reasonable fees and expenses of counsel (which may include costs of in-house counsel); and (ii) all costs related to conducting UCC, title and other public record searches. The Borrower hereby authorizes and directs the Bank to charge Borrower's deposit account(s) with the Bank for any and all such costs and expenses, as well as any fees due hereunder.

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December 13, 2019
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8. [Intentionally Omitted]

9. Miscellaneous.

9.1 Notices. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (“Notices”) must be in writing (except as may be agreed otherwise above with respect to borrowing requests) or as otherwise provided in this Letter Agreement) and will be effective upon receipt. Notices may be given in any manner to which the parties may agree. Without limiting the foregoing, first-class mail, postage-prepaid, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices. In addition, the parties agree that Notices may be sent electronically to any electronic address provided by a party from time to time. Notices may be sent to the Borrower’s address as set forth above and to the Bank at 155 East Broad Street, Columbus, OH 43215, Attention: Thomas E. Redmond, Managing Director, or to such other address as any party may give to the other for such purpose in accordance with this section.

9.2 Preservation of Rights. No delay or omission on the Bank’s part to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right or power. The Bank’s rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which the Bank may have under other agreements, at law or in equity.

9.3 Illegality. If any provision contained in this Letter Agreement should be invalid, illegal or unenforceable in any respect, it shall not affect or impair the validity, legality and enforceability of the remaining provisions of this Letter Agreement.

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9.4 Changes in Writing. No modification, amendment or waiver of, or consent to any departure by the Borrower from, any provision of this Letter Agreement will be effective unless made in a writing signed by the party to be charged, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Notwithstanding the foregoing, the Bank may modify this Letter Agreement or any of the other Loan Documents for the purposes of completing missing content or correcting erroneous content, without the need for a written amendment, provided that the Bank shall send a copy of any such modification to the Borrower (which notice may be given by electronic mail). No notice to or demand on the Borrower will entitle the Borrower to any other or further notice or demand in the same, similar or other circumstance.

9.5 Entire Agreement. This Letter Agreement, the Note and the other Loan Documents constitute the entire agreement and supersede all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

9.6 Counterparts. This Letter Agreement may be signed in any number of counterpart copies and by the parties hereto on separate counterparts, but all such copies shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Letter Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart. Any party so executing this Letter Agreement by facsimile transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile transmission.

9.7 Successors and Assigns. This Letter Agreement will be binding upon and inure to the benefit of the Borrower and the Bank and their respective heirs, executors, administrators, successors and assigns; provided, however, that the Borrower may not assign this Letter Agreement in whole or in part without the Bank’s prior written consent and the Bank at any time may assign this Letter Agreement in whole or in part.

9.8 Interpretation. In this Letter Agreement, unless the Bank and the Borrower otherwise agree in writing, the singular includes the plural and the plural the singular; words importing any gender include the other genders; references to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute referred to; the word “or” shall be deemed to include “and/or”, the words “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”; references to articles, sections (or subdivisions of sections) or exhibits are to those of this Letter Agreement; and references to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications to such instruments, but only to the extent such amendments and other modifications are not prohibited by the terms of this Letter Agreement. Section headings in this Letter Agreement are included for convenience of reference only and shall not constitute a part of this Letter Agreement for any other purpose. Unless otherwise specified in this Letter Agreement, all accounting terms shall be interpreted and all accounting determinations shall be made in accordance with GAAP and consistent with the Credit Agreement. If this Letter Agreement is executed by more than one party as Borrower, the obligations of such persons or entities will be joint and several.

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9.9 No Consequential Damages, Etc. The Bank will not be responsible for any damages, consequential, incidental, special, punitive or otherwise, that may be incurred or alleged by any person or entity, including the Borrower, as a result of this Letter Agreement, the other Loan Documents, the transactions contemplated hereby or thereby, or the use of the proceeds of the Loan.

9.10 Assignments and Participations. At any time, without any notice to the Borrower, the Bank may grant participations in, or, if there then exists an Event of Default or if the Bank receives the Borrower’s prior written consent (which consent will not be unreasonably withheld), sell, assign, transfer, negotiate, or otherwise dispose of, all or any part of the Bank’s interest in the Loan. The Borrower hereby authorizes the Bank to provide, without any notice to the Borrower, any information concerning the Borrower, including information pertaining to the Borrower’s financial condition, business operations or general creditworthiness, to any assignee of or participant in or any prospective assignee of or participant in all or any part of the Bank’s interest in the Loan.

9.11 USA PATRIOT Act Notice. The Bank hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act, the Bank is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Bank to identify the Borrower in accordance with the USA PATRIOT Act.

9.12 Important Information about Phone Calls. By providing telephone number(s) to the Bank, now or at any later time, the Borrower hereby authorizes the Bank and its affiliates and designees to contact the Borrower regarding the Borrower’s account(s) with the Bank or its affiliates, whether such accounts are Borrower’s individual accounts or business accounts for which Borrower is a contact, at such numbers using any means, including, but not limited to, placing calls using an automated dialing system to cell, VoIP or other wireless phone number, or by leaving prerecorded messages or sending text messages, even if charges may be incurred for the calls or text messages. Borrower hereby consents that any phone call with the Bank may be monitored or recorded by the Bank.

9.13 Confidentiality. In connection with the Obligations, this Letter Agreement and the other Loan Documents, the Bank and the Borrower will be providing to each other, whether orally, in writing or in electronic format, nonpublic, confidential or proprietary information (collectively, “Confidential Information”). Each of the Borrower and the Bank agrees (i) to hold the Confidential Information of the other in confidence; and (ii) not to disclose or permit any other person or entity access to the Confidential Information of the other party, except for disclosure or access to (a) a party’s affiliates and its or their employees, officers, directors, agents, representatives, (b) other third parties that provide or may provide ancillary support relating to the Obligations, this Letter Agreement and/or the other Loan Documents, or (c) to its external or internal auditors or regulatory authorities. It is understood and agreed that the obligation to protect such Confidential Information shall be satisfied if the party receiving such Confidential Information utilizes the same control (but no less than reasonable) as it does to avoid disclosure of its own confidential and valuable information. It is also understood and agreed that no information shall be within the protection of this Letter Agreement where such information: (w) is or becomes publicly available through no fault of the party to whom such Confidential Information has been disclosed; (x) is released by the originating party to anyone without restriction; (y) is rightly obtained from third parties who are not, to such receiving party's knowledge, under an obligation of confidentiality; or (z) is required to be disclosed by subpoena or similar process of applicable law or regulations.

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For the purposes of this Letter Agreement, Confidential Information of a party shall include, without limitation, any financial information, scientific or technical information, design, process, procedure or improvement and all concepts, documentation, reports, data, data formats, specifications, computer software, source code, object code, user manuals, financial models, screen displays and formats, software, databases, inventions, knowhow, showhow and trade secrets, whether or not patentable or copyrightable, whether owned by a party or any third party, together with all memoranda, analyses, compilations, studies, notes, records, drawings, manuals or other documents or materials which contain or otherwise reflect any of the foregoing information.

Each of the Borrower and the Bank agrees to return to the other or destroy all Confidential Information of the other upon the termination of this Letter Agreement; provided, however, each party may retain such limited information for customary archival and audit purposes only for reference with respect to prior dealings between the parties subject at all times to the continuing terms of this Section.

Each of the Borrower and the Bank agrees not to use the other's name or logo in any marketing, advertising or related materials, without the prior written consent of the other party (except in the case of mandatory public filings).

9.14 Sharing Information with Affiliates of the Bank. The Borrower acknowledges that from time to time other financial and banking services may be offered or provided to the Borrower or one or more of its subsidiaries and/or affiliates (in connection with this Letter Agreement or otherwise) by the Bank or by one or more subsidiaries or affiliates of the Bank or of The PNC Financial Services Group, Inc., and the Borrower hereby authorizes the Bank to share any information delivered to the Bank by the Borrower and/or its subsidiaries and/or affiliates pursuant to this Letter Agreement or any of the Loan Documents to any subsidiary or affiliate of the Bank and/or The PNC Financial Services Group, Inc., subject to any provisions of confidentiality in this Letter Agreement or any other Loan Documents.

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9.15 Electronic Signatures and Records. Notwithstanding any other provision herein, the Borrower agrees that this Agreement, the Loan Documents, any amendments thereto, and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”) may, at the Bank’s option, be in the form of an electronic record. Any Communication may, at the Bank’s option, be signed or executed using electronic signatures. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Bank of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format) for transmission, delivery and/or retention.

9.16 Governing Law and Jurisdiction. This Letter Agreement has been delivered to and accepted by the Bank and will be deemed to be made in the State of New Jersey. This Letter Agreement will be interpreted and the rights and liabilities of the Bank and the Borrower determined in accordance with the laws of the state of New Jersey, excluding its conflict of laws rules, including without limitation the Electronic Transactions Act (or equivalent) in effect in the state of New Jersey or, to the extent controlling, the laws of the United States Of America, including without limitation the Electronic Signatures in Global and National Commerce Act). The Borrower hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district in New Jersey; provided that nothing contained in this Letter Agreement will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security or against any property of the Borrower within any other county, state or other foreign or domestic jurisdiction. The Bank and the Borrower agree that the venue provided above is the most convenient forum for both the Bank and the Borrower. The Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Letter Agreement.

9.17 WAIVER OF JURY TRIAL. EACH OF THE BORROWER AND THE BANK IRREVOCABLY WAIVES ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS LETTER AGREEMENT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS LETTER AGREEMENT OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE BORROWER AND THE BANK ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

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To accept these terms, please sign the enclosed copy of this Letter Agreement below and return it to the Bank, along with the Note and other documents and certificates required under Section 5 of this Letter Agreement, prior to December 31, 2019, or this Letter Agreement and the Note may be terminated at the Bank’s option without liability or further obligation of the Bank.

Thank you for giving PNC Bank this opportunity to work with your business. We look forward to other ways in which we may be of service.

Very truly yours,

	PNC BANK, NATIONAL ASSOCIATION
	 
	 
	By: 	/s/ Alex Rolfe                                
	Name: Alex Rolfe
	Title: Vice President

ACCEPTANCE

With the intent to be legally bound hereby, the above terms and conditions are hereby agreed to and accepted as of this 13th day of December, 2019.

	BORROWER:
	 
	NEW JERSEY RESOURCES
CORPORATION
	 
	 
	By: 	/s/ Roberto Bel         
	 
	Print Name: Roberto Bel
	Title: Treasurer

EXHIBIT A
TO LETTER AGREEMENT
DATED DECEMBER 13, 2019

A. FINANCIAL REPORTING COVENANTS: The Borrower shall deliver or shall cause to be delivered to the Bank, the following:

(a) As soon as available and in any event within forty-five (45) calendar days after the end of each of the first three fiscal quarters in each fiscal year (or such earlier or later date, from time to time established by the United States Securities and Exchange Commission (“SEC”) in accordance with the Securities Exchange Act of 1934, as amended, or within fifty (50) days in the event the Borrower shall file its Form 10-Q within the extension period pursuant to Rule 12b-25 of the Securities Exchange Act of 1934, as amended), financial statements of the Borrower, consisting of a consolidated and consolidating balance sheet as of the end of such fiscal quarter and related consolidated (and, if delivered pursuant to the NJR Note Agreements, consolidating) statements of income, stockholders' equity and cash flows for the fiscal quarter then ended and the fiscal year through that date, all in reasonable detail and certified (subject to normal year-end audit adjustments) by the Chief Executive Officer, President or Chief Financial Officer of the Borrower as having been prepared in accordance with GAAP, consistently applied, and setting forth in comparative form the respective financial statements for the corresponding date and period in the previous fiscal year. The Borrower will be deemed to have complied with the delivery requirements of this Section if within forty-five (45) days after the end of their fiscal quarter (or such earlier or later date, from time to time established by the SEC in accordance with the Securities Exchange Act of 1934, as amended, or within fifty (50) days in the event the Borrower shall file its Form 10-Q within the extension period pursuant to Rule 12b¬25 of the Securities Exchange Act of 1934, as amended), the Borrower files a copy of its Form 10-Q with the SEC on its Electronic Data Gathering, Analysis and Retrieval system (or the SEC’s successor electronic system) (collectively, "EDGAR") and the financial statements and the financial statements contained therein meets the requirements described in this Section. The Borrower is not required to deliver duplicate copies of the above financial statements.

(b) As soon as available and in any event within ninety (90) days after the end of each fiscal year of the Borrower (or such earlier or later date, from time to time established by the SEC in accordance with the Securities Exchange Act of 1934, as amended, or within one hundred five (105) days in the event the Borrower shall file its Annual Report on Form 10-K within the extension period pursuant to Rule 12b-25 of the Securities Exchange Act of 1934, as amended), financial statements of the Borrower consisting of a consolidated balance sheet as of the end of such fiscal year, and related consolidated statements of income, stockholders' equity and cash flows for the fiscal year then ended, all in reasonable detail and setting forth in comparative form the financial statements as of the end of and for the preceding fiscal year, and certified by independent certified public accountants of nationally recognized standing satisfactory to the Bank. The certificate or report of accountants shall be free of any going concern qualification. The Borrower will be deemed to have complied with the delivery requirements of this Section if within ninety (90) days (or one hundred five (105) days, if applicable) after the end of their fiscal year (or such earlier or later date, from time to time established by the SEC in accordance with the Securities Exchange Act of 1934, as amended), the Borrower files a copy of its Annual Report on Form 10-K as filed with the SEC on EDGAR and the financial statements and certification of public accountants contained therein meets the requirements described in this Section. The Borrower is not required to deliver duplicate copies of the above financial statements.

(c) Concurrently with the financial statements of the Borrower furnished to the Bank as stated above, a certificate (each a "Compliance Certificate") of the Borrower signed by the Chief Executive Officer, Chief Financial Officer or Treasurer of the Borrower in the form of (and without duplication of) Exhibit 8.3.3 to the Credit Agreement. Such Compliance Certificate shall be deemed to have been delivered hereunder upon the delivery of the compliance certificate required under the Credit Agreement to the Administrative Agent under the Credit Agreement.

B. UNUSED COMMITMENT FEE:

Accruing from the date hereof until the Expiration Date, the Borrower agrees to pay to the Bank, as consideration for its commitment hereunder, a nonrefundable commitment fee (the “Commitment Fee”) equal to the Applicable Commitment Fee Rate (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) multiplied by the average daily difference between (i) the maximum principal amount of the Line of Credit, and (ii) the aggregate amount of outstanding advances under the Loan. All Commitment Fees shall be payable quarterly in arrears on the first day of each calendar quarter occurring after the date hereof and prior to the Expiration Date, and on the Expiration Date or upon acceleration of the Loan.

For purposes hereof, the “Applicable Commitment Fee Rate” shall mean 0.075% per annum.

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