Document:

First Amendment and
  Restatement Agreement re Secured Loan Facility Agreement dated 27 June 2019

  
	
  Dated                         May
  2020 

  
	
  (1)       Kaben Shipping Company Inc.

               Taroa Shipping Company Inc.

                Gala Properties Inc.

               Tuvalu Shipping Company Inc.

               Jabat Shipping Company Inc.

               Bikini Shipping Company Inc.  

                (as borrowers)

  (2)         Diana Shipping Inc. 

                (as guarantor)

  (3)       
  ABN AMRO Bank N.V.

                (as lender)

  (4)         ABN AMRO Bank N.V.

                (as agent)

  (5)         ABN
  AMRO Bank N.V.

                (as swap
  provider)

  (6)        ABN AMRO
  Bank N.V.

  (as security agent)

   

  

 

 

 PIRAEUS\3125851.3 

 

Contents

Page

	
  1

  	
  Interpretation

  	
  1

  
	
  2

  	
  Conditions

  	
  2

  
	
  3

  	
  Representations

  	
  2

  
	
  4

  	
  Amendment and restatement of Loan Agreement
  and amendments to the Security Documents

  	
  3

  
	
  5

  	
  Confirmations and Undertakings

  	
  3

  
	
  6

  	
  Notices, Counterparts, Governing Law and
  Enforcement

  	
  4

  
	
  Schedule 1

  	
  The Lenders

  	
  5

  
	
  Schedule 2

  	
  Effective Date Confirmation

  	
  6

  
	
  Schedule 3

  	
  Conditions Precedent

  	
  7

  
	
  Schedule 4

  	
  Form of Amended and Restated Loan Agreement

  	
  9

  

 

 

 

 

 

 PIRAEUS\3125851.3 

 

 

 PIRAEUS\3125851.3 

 

Amendment and Restatement Agreement

Dated                     May 2020 

Between:

(1)       Kaben Shipping Company Inc., Taroa
Shipping Company Inc., and Gala Properties Inc. (the "Original
Borrowers") and Tuvalu Shipping Company Inc.,  Jabat Shipping
Company Inc. and Bikini Shipping Company Inc. (the "New
Borrowers"), each a company incorporated according to the law of the
Republic of the Marshall Islands with registered address at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (together,
the "Borrowers"); and

(2)       Diana Shipping Inc., a company
incorporated according to the law of the Republic of the Marshall Islands,
whose registered address is at Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro, Marshall Islands MH 96960 (the "Guarantor");
and

(3)       the banks listed in 0,
each acting through its office at the address indicated against its name in 0
(together the "Lenders" and each a "Lender");
and

(4)       ABN AMRO Bank N.V, acting as
agent through its office at Coolsingel 93, 3012 AE Rotterdam, The Netherlands (in
that capacity the "Agent"); and

(5)       ABN AMRO Bank N.V, acting as swap provider through its office at Coolsingel
93, 3012 AE Rotterdam, The Netherlands (in that capacity the "Swap
Provider"); and

(6)       ABN AMRO Bank N.V, acting as
security agent through its office at Coolsingel 93, 3012 AE Rotterdam, The
Netherlands (in that capacity the "Security Agent") .

Supplemental to a secured loan agreement dated 27 June 2019 (the "Loan
Agreement") made between the Original Borrowers, the Guarantor, the
Lenders, the Agent, the Swap Provider and the Security Agent on the terms and
subject to the conditions of which each of the Lenders agreed to advance to the
Original Borrowers its respective Commitment of an aggregate amount not
exceeding $25,000,000. 

Whereas  

The Original Borrowers have requested the Finance Parties
to amend and restate the Loan Agreement in the form attached to this Amendment
and Restatement Agreement at 0.

It is agreed that:

1            Interpretation

1.1       In this Amendment and Restatement
Agreement:

"Effective
Date" means the date on which the Agent confirms to the Borrowers and
the other Obligors in writing substantially in the form set out in 0
that all of the conditions referred to in Clause 0
have been satisfied, which confirmation the Agent shall be under 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 1 

 

no obligation to give if either (a) those conditions are
not satisfied prior to 30 June 2020 or (b) a Default shall have occurred.

"Finance Parties" means the
Agent, the Security Agent, the Swap Provider and the Lenders.

"Obligors" means all parties to
this Amendment and Restatement Agreement other than the Finance Parties and
"Obligor" means any one of them.

1.2       All words and expressions defined in
the Loan Agreement shall have the same meaning when used in this Amendment and
Restatement Agreement unless the context otherwise requires, and clause 1.2 of
the Loan Agreement shall apply to the interpretation of this Amendment and
Restatement Agreement as if it is set out in full.

1.3       The
Agent and the Borrowers hereby designate this Amendment and Restatement
Agreement as a Finance Document.

1.4       All obligations, representations,
warranties, covenants and undertakings of the Borrowers under or pursuant to this
Amendment and Restatement Agreement shall, unless otherwise expressly provided,
be entered into, made or given by them jointly and severally.

2            Conditions

2.1       As conditions for the agreement of the
Finance Parties to amend and restate the Loan Agreement in the form attached to
this Amendment and Restatement Agreement at 0, the
Borrowers shall deliver or cause to be delivered to or to the order of the
Agent all of the documents and other evidence listed in 0.

2.2       All documents and evidence delivered
to the Agent pursuant to Clause 0
shall:

2.2.1    be in form and substance acceptable to the Agent;

2.2.2    if required by the Agent, be certified, notarised,
legalised or attested in a manner acceptable to the Agent.

3            Representations

3.1       Each of the representations contained
in clause 20
of the Loan Agreement shall be deemed repeated by the Borrowers and the
Guarantor at the date of this Amendment and Restatement Agreement and at the
Effective Date, by reference to the facts and circumstances then pertaining, as
if references to the Finance Documents include this Amendment and Restatement
Agreement.

3.2       Any
representation made by an Obligor in any of the Security Documents to which it
is a party shall be deemed repeated by that Obligor at the date of this
Amendment and Restatement Agreement and at the Effective Date, by reference to
the facts and circumstances then pertaining.

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 2 

 

4            Amendment
and restatement of Loan Agreement
and amendments to the Security Documents  

With effect from the Effective Date:

4.1
      the Loan Agreement shall be read and construed as if its text is replaced
by the text of the amended and restated loan agreement attached to this
Amendment and Restatement Agreement as 0; and

4.2       each Security Document shall, to the extent
necessary, be modified to reflect the amendment and restatement of the Loan Agreement
made in this Amendment and Restatement Agreement.  

5            Confirmations and Undertakings

5.1       Each of the Obligors confirms that all
of its respective obligations under or pursuant to each of the Security
Documents to which it is a party remain in full force and effect, despite the
amendment and restatement of the Loan Agreement made in this Amendment and
Restatement Agreement, as if all references in any of the Security Documents to
the Loan Agreement are references to the Loan Agreement as amended and restated
in this Amendment and Restatement Agreement and that any security created under
such Security Documents shall be extended to secure all liabilities of the
Obligors under the Loan Agreement as amended by this Amendment and Restatement
Agreement

5.2       Each
of the Original Borrowers further acknowledges and confirms that all of its
respective obligations under or pursuant to the Account Security Deed dated 27
June 2019 (the "Account Security Deed"):  

5.2.1    shall
not be affected by the amendment of the Loan Agreement or by this Amendment and
Restatement Agreement;

5.2.2    shall
remain in full force and effect; 

5.2.3    shall
extend to, and shall secure, the liabilities and obligations of the each Original
Borrower under the Loan Agreement as amended by and in accordance with the terms
of this Amendment and Restatement Agreement; and 

5.2.4    that
the obligations secured under the Account Security Deed will be the obligations
defined in Account Security Deed as those obligations have been amended
pursuant to this Amendment and Restatement Agreement.

5.3       The
definition of any term defined in any of the Security Documents shall, to the
extent necessary, be modified to reflect the amendment and restatement of the
Loan Agreement made in this Amendment and Restatement Agreement.

5.4       Within 5 days after the Effective Date
the Borrowers shall deliver or cause to be delivered to or to the order of the
Agent such of the legal
opinions specified in Schedule 3 as have not already been provided to the
Agent. 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 3 

 

5.5       The provisions of Clause 0
shall apply to all the documents and evidence delivered to the Agent pursuant
to Clause 0. 

6            Notices, Counterparts, Governing Law and Enforcement

The
provisions of clauses 34, 41, 43 and 44 of the Loan Agreement shall apply to this
Amendment and Restatement Agreement as if they are set out in full and as if (a)
references to each Party are references to each party to this Amendment and
Restatement Agreement, (b) references to the Finance Documents include this
Amendment and Restatement Agreement and (c) references to a Borrower are references
to each Obligor other than the Guarantor.

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 4 

 

Schedule 1         

The
Lenders

Names

Name of Original Lender                   Address of
lending office

ABN
AMRO Bank N.V.                             Coolsingel 93, 3012 AE Rotterdam,
The Netherlands

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 5 

 

Schedule 2         

Effective
Date Confirmation

To:       Kaben Shipping Company Inc.

             Taroa Shipping Company Inc.

             Gala Properties Inc.

             Tuvalu Shipping Company Inc.

             Jabat Shipping Company Inc.

             Bikini Shipping Company Inc. 

              Diana
Shipping Inc.

Trust Company Complex

Ajeltake Road,
Ajeltake Island 

Majuro

Marshall Islands,
MH96960

 

 

 

We, ABN
AMRO Bank N.V., refer to the first amendment and restatement agreement dated                
May 2020 (the "Amendment and Restatement Agreement")
relating to a secured loan agreement dated 27 June 2019 (the "Loan
Agreement") made between the above named Kaben Shipping Company Inc., Taroa
Shipping Company Inc., Gala Properties Inc., Tuvalu Shipping Company Inc., Jabat
Shipping Company Inc. and Bikini Shipping Company Inc. as the Borrowers, Diana
Shipping Inc. as the Guarantor, the banks listed in it as the
Lenders, ourselves as the Agent, ourselves as the Swap Provider and ourselves as
the Security Agent in respect of a loan to the Borrowers from the Lenders of up
to $25,000,000.

We
hereby confirm that all conditions precedent referred to in Clause 0 of
the Amendment and Restatement Agreement have been satisfied.  In accordance
with Clauses 0
and 0 of
the Amendment and Restatement Agreement the Effective Date is the date of this
confirmation and the amendment and restatement of the Loan Agreement are now
effective.

 

Dated                  May
2020         

 

 

Signed:___________________________________

For and
on behalf of

ABN AMRO Bank N.V.

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 6 

 

Schedule 3         

Conditions
Precedent

1          Obligors 

(a)       Constitutional documents   Copies of the
constitutional documents of the New Borrowers together with such other evidence
as the Agent may reasonably require that the New Borrowers are duly
incorporated in their country of incorporation and remain in existence with
power to enter into, and perform their obligations under, this Amendment and
Restatement Agreement and any document to be executed by the New Borrowers pursuant
to this Amendment and Restatement Agreement.  

(b)       Certificates of good standing   A
certificate of good standing in respect of each Obligor and Diana Shipping (if
such a certificate can be obtained).

(c)       Board resolutions   A copy of a resolution
of the board of directors of each Obligor (other than the Guarantor) and Diana
Shipping and a copy of a resolution of the executive committee of the board of
directors of the Guarantor:

(i)        approving the terms of, and the transactions
contemplated by, this Amendment and Restatement Agreement and any document to
be executed by that Obligor and Diana Shipping pursuant to this Amendment and
Restatement Agreement and resolving that it execute this Amendment and
Restatement Agreement and any such document; and  

(ii)        authorising a specified person or persons to
execute this Amendment and Restatement Agreement and any such document
(including all documents and notices to be signed and/or dispatched under any
such document) on its behalf.

(d)       Copy passports  A copy of the passport of
each person authorised by the resolutions referred to in (c) and each
of the managing directors and officers of each Obligor.

(e)       Shareholder resolutions   A copy of a
resolution signed by all the holders of the issued shares in each Obligor (other
than the Guarantor) and Diana Shipping, approving the terms of, and the
transactions contemplated by, this Amendment and Restatement Agreement and any
document to be executed by that Obligor pursuant to this Amendment and
Restatement Agreement.

(f)        Officer's certificates   An original
certificate of a duly authorised officer of each Obligor and Diana Shipping:

(i)        certifying
that each copy document relating to it specified in this 0 is
correct, complete and in full force and effect;

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 7 

 

(ii)        setting out the names of (a) the
directors and officers of that Obligor and Diana Shipping and (b) the
shareholders of that Obligor (other than the Guarantor) and Diana Shipping and the
proportion of shares held by each shareholder; and 

(iii)       confirming
that none of the documents delivered to the Agent pursuant to clauses 4.1 and
4.3 of the Loan Agreement have been amended or modified in any way since the
date of their delivery to the Agent, or certifying copies, as true, complete,
accurate and neither amended nor revoked, of any which have been amended or
modified.

(g)       Powers of attorney   The original
notarially attested and legalised power of attorney of each of the Obligors and
Diana Shipping under which this Amendment and Restatement Agreement and any
document to be executed by that Obligor and Diana Shipping pursuant to this
Amendment and Restatement Agreement are to be executed by that Obligor and
Diana Shipping.  

2          Legal
opinions

The
following legal opinions, each addressed to the Agent, the Security Agent and
the Lenders and capable of being relied upon by any persons who become Lenders
pursuant to the primary syndication of the Loan:

(a)       a legal opinion of Stephenson Harwood LLP, legal
advisers to the Agent as to English law substantially in the form distributed
to the Lenders prior to signing this Amendment and Restatement Agreement;

(b)       a legal opinion of Ince & Co to the Agent as to Marshall
Islands law.

3          Other
documents and evidence

(a)       Process
agent   Evidence that any process agent appointed pursuant to Clause 0 has
accepted its appointment.

(b)       Other Authorisations   A copy of any other
Authorisation or other document, opinion or assurance which the Agent considers
to be necessary or desirable (if it has notified the Borrower accordingly) in
connection with the entry into and performance of the transactions contemplated
by this Amendment and Restatement Agreement or for the validity and enforceability
of this Amendment and Restatement Agreement and any document to be executed
pursuant to this Amendment and Restatement Agreement.

(c)       "Know
your customer" documents   Such documentation and other evidence as is
reasonably requested by the Agent in order for the Lenders to comply with all
necessary "know your customer" or similar identification procedures
in relation to the transactions contemplated in this Amendment and Restatement
Agreement.

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 8 

 

Schedule 4         

Form of Amended and
Restated Loan Agreement

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 9 

 

 

In witness
of which the parties to this Amendment and Restatement Agreement have executed this
Amendment and Restatement Agreement as a deed the day and year first before
written.

 

	
  Signed
  and delivered as

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  Kaben Shipping Company Inc.

  	
  )

  	 
	
  (as
  borrower)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the presence
  of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 
	
  Address:

  	 

 

 

 

 

 

 

 

	
  Signed
  and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  Taroa Shipping Company Inc.

  	
  )

  	 
	
  (as
  borrower)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 

 

 

 

 

 

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 10 

 

	
  Signed and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  Gala
  Properties Inc.

  	
  )

  	 
	
  (as
  borrower)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

 

 

	
  Signed
  and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  Tuvalu
  Shipping Company Inc.   

  	
  )

  	 
	
  (as
  borrower)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

 

 

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 11 

 

 

 

	
  Signed
  and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  Jabat Shipping Company Inc. 

  	
  )

  	 
	
  (as
  guarantor)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

	
  Signed
  and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  Bikini
  Shipping Company Inc. 

  	
  )

  	 
	
  (as
  guarantor)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address: 

  	 	 

  

 

 

 

 

 

 

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 12 

 

	
  Signed and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  Diana Shipping Inc. 

  	
  )

  	 
	
  (as
  guarantor)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the presence
  of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

 

	
  Signed
  and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  ABN
  AMRO Bank N.V

  	
  )

  	 
	
  (as a
  Lender)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the presence
  of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 13 

 

	
  Signed and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  ABN
  AMRO Bank N.V

  	
  )

  	 
	
  (as
  Agent)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

 

 

 

	
  Signed
  and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  ABN
  AMRO Bank N.V

  	
  )

  	 
	
  (as Swap
  Provider)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly
  authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:.........................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 14 

 

	
  Signed and delivered as 

  	
  )

  	 
	
  a Deed by 

  	
  )

  	 
	
  ABN
  AMRO Bank N.V

  	
  )

  	 
	
  (as
  Security Agent)

  	
  )

  	 
	
  acting by

  	
  )

  	 
	 	
  )

  	 
	
  its duly authorised

  	
  )

  	 
	 	
  )

  	 
	
  in the
  presence of:

  	
  )

  	 
	 	 	 
	
  Witness
  signature:................................................

  	 
	
  Name:

  	 	 
	
  Address:

  	 	 

 

 

 

 

 

 PIRAEUS\3125851.3                                                                                                                                                                               Page
 15 

 

	
  $52,885,000

  

  Secured Loan Agreement

  
	
  Dated 
  27 June 2019

  
	
  (1)         Kaben Shipping Company Inc.

               Taroa Shipping Company Inc.

                Gala Properties Inc. 

               Tuvalu Shipping Company Inc.

               Jabat Shipping Company Inc.

               Bikini Shipping Company Inc

              (as Borrowers)

   

  (2)         Diana Shipping Inc.

  (as Original Guarantor)

   

  (3)         The
  Financial Institutions

  listed in 0

  (as Original Lenders)

   

  (4)         ABN AMRO
  Bank N.V.

               (as  Lender)

  (5)        ABN AMRO Bank N.V.

  (as  Facility Agent)

  (5)         ABN AMRO Bank N.V.

  (as Swap Provider)

  (6)         ABN AMRO Bank N.V.

  (as Security Agent)

  

 PIRAEUS\3125851.2 

 

 

 

 

 PIRAEUS\3125851.2 

 

 

Contents

Page

	
  Section 1

  	
  Interpretation

  	
  2

  
	
  1

  	
  Definitions and Interpretation

  	
  2

  
	
  Section 2

  	
  The Loan

  	
  26

  
	
  2

  	
  The Loan

  	
  26

  
	
  3

  	
  Purpose

  	
  26

  
	
  4

  	
  Conditions of Utilisation

  	
  26

  
	
  Section 3

  	
  Utilisation

  	
  28

  
	
  5

  	
  Advance

  	
  28

  
	
  Section 4

  	
  Repayment, Prepayment and Cancellation

  	
  29

  
	
  6

  	
  Repayment

  	
  29

  
	
  7

  	
  Illegality, Prepayment and Cancellation

  	
  29

  
	
  Section 5

  	
  Costs of Utilisation

  	
  33

  
	
  8

  	
  Interest

  	
  33

  
	
  9

  	
  Interest Periods

  	
  33

  
	
  10

  	
  Changes to the Calculation of Interest

  	
  34

  
	
  11

  	
  Fees

  	
  35

  
	
  Section 6

  	
  Additional Payment Obligations

  	
  36

  
	
  12

  	
  Tax Gross Up and Indemnities

  	
  36

  
	
  13

  	
  Increased Costs

  	
  45

  
	
  14

  	
  Other Indemnities

  	
  47

  
	
  15

  	
  Mitigation by the Lenders

  	
  49

  
	
  16

  	
  Costs and Expenses

  	
  50

  
	
  Section 7

  	
  Accounts and Application of Earnings

  	
  52

  
	
  17

  	
  Accounts

  	
  52

  
	
  18

  	
  Additional Security

  	
  53

  
	
  19

  	
  Guarantee and Indemnity

  	
  55

  
	
  Section 8

  	
  Representations, Undertakings and Events of
  Default

  	
  58

  
	
  20

  	
  Representations

  	
  58

  
	
  21

  	
  Information Undertakings

  	
  64

  
	
  22

  	
  Financial Covenants

  	
  67

  
	
  23

  	
  General Undertakings

  	
  68

  
	
  24

  	
  Events of Default

  	
  76

  
	
  Section 9

  	
  Changes to Parties

  	
  83

  
	
  25

  	
  Changes to the Lenders

  	
  83

  
	
  26

  	
  Changes to the Obligors

  	
  89

  
	
  Section 10

  	
  The Finance Parties

  	
  91

  
	
  27

  	
  Role of the Agent, the Security Agent

  	
  91

  
	
  28

  	
  Parallel Debt (Covenant to pay the Security Agent)

  	
  103

  
	
  29

  	
  Application of Proceeds

  	
  104

  
	
  30

  	
  Conduct of Business by the Finance Parties

  	
  106

  
	
  31

  	
  Sharing among the Finance Parties

  	
  106

  
	
  Section 11

  	
  Administration

  	
  108

  
	
  32

  	
  Payment Mechanics

  	
  108

  
	
  33

  	
  Set-Off

  	
  111

  
	
  34

  	
  Notices

  	
  111

  
	
  35

  	
  Calculations and Certificates

  	
  114

  
	
  36

  	
  Partial Invalidity

  	
  115

  
	
  37

  	
  Remedies and Waivers

  	
  115

  
	
  38

  	
  Amendments and Waivers

  	
  115

  
	
  39

  	
  Confidentiality

  	
  122

  
	
  40

  	
  Disclosure of Lender Details by Agent

  	
  126

  
	
  41

  	
  Counterparts

  	
  127

  
	
  42

  	
  Joint and Several Liability

  	
  128

  
	
  Section 12

  	
  Governing Law and Enforcement

  	
  130

  
	
  43

  	
  Governing Law

  	
  130

  
	
  44

  	
  Enforcement

  	
  130

  
	
  Schedule 1

  	
  Part I The Original Lenders

  	
  131

  
	
  Schedule 2

  	
  Part I Utilisation Conditions Precedent

  	
  132

  
	
  Part II

  	 	
  137

  
	
  Conditions Subsequent

  	 	
  137

  
	
  Schedule 3

  	
  Utilisation Request

  	
  138

  
	
  Schedule 4

  	
  Form of Transfer Certificate

  	
  140

  
	
  Schedule 5

  	
  Form of Assignment Agreement

  	
  143

  
	
  Schedule 6

  	
  Form of Accession Deed

  	
  147

  
	
  Schedule 7

  	
  Form of
  Compliance Certificate

  	
  149

  

 PIRAEUS\3125851.2 

 

 

 

 

 PIRAEUS\3125851.2 

 

  

 

 PIRAEUS\3125851.2 

 

Loan
Agreement

Dated 27 June 2019 as amended and restated on           May
2020 

Between:

(1)       Kaben Shipping Company Inc.
("Kaben"), Taroa Shipping Company Inc. ("Taroa"),
Gala Properties Inc. ("Gala"), Tuvalu Shipping
Company Inc. ("Tuvalu"), Jabat Shipping Company Inc.
("Jabat"), and Bikini Shipping Company Inc. ("Bikini"),
each a company incorporated under the law of the Republic of the Marshall
Islands, with its registered address at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands MH 96960 (together, the "Borrowers"
and each a "Borrower") jointly and severally; and  

(2)       Diana Shipping Inc., a company
incorporated under the law of the Republic of the Marshall Islands, with its
registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH 96960 (the "Original Guarantor");
and

(3)       The Financial Institutions listed
in 0 (The
Parties), each acting through its Facility Office (together, the "Original
Lenders" and each an "Original Lender"); and

(4)       ABN AMRO Bank N.V., a banking
corporation duly incorporated under the laws of the Netherlands whose
registered office is at Gustav Mahlerlaan 10, 1082 PP Amsterdam, The
Netherlands, acting as agent through its office at Coolsingel 93, 3012 AE
Rotterdam, The Netherlands (in that capacity, the "Agent");
and

(5)       ABN AMRO Bank N.V., acting as swap
provider through its office at Coolsingel 93, 3012 AE Rotterdam, The
Netherlands (in that capacity, the "Swap Provider"); and

(6)       ABN AMRO Bank N.V., acting as
security agent through its office at Coolsingel 93, 3012 AE Rotterdam, The
Netherlands (in that capacity, the "Security Agent"). 

 

It is agreed
as follows:

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 1 

 

Section 1            Interpretation

1            Definitions
and Interpretation

1.1       Definitions   
In this Agreement:

 "Accession
Deed" means a document substantially in the form set out in 0 (Form
of Accession Deed). 

"Account
Holder" means ABN AMRO Bank N.V. a banking corporation duly
incorporated under the laws of the Netherlands whose registered office is at
Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands acting through its
branch at Coolsingel 93, 3012 AE Rotterdam, The Netherlands or any other bank or
financial institution which at any time, with the Security Agent's prior
written consent, holds the Earnings Accounts.  

"Account
Security Deed" means a first priority account security deed in respect
of all amounts from time to time standing to the credit of the Earnings
Accounts.

"Additional
Guarantor" means a company which becomes an additional guarantor in
accordance with Clause 0 (Changes
to the Obligors). 

"Administration"
has the meaning given to it in paragraph 1.1.3 of the ISM Code. 

"Affiliate"
means, in relation to any person, a Subsidiary of that person or a Holding
Company of that person or any other Subsidiary of that Holding Company.

“Amendment
and Restatement Agreement” means the first amendment and restatement
agreement to this Agreement made between the Borrowers, the Guarantor and the
Finance Parties.

"Annex
VI" means Annex VI (Regulations for the Prevention of Air Pollution
from Ships) to the International Convention for the Prevention of Pollution
from Ships 1973 (as modified in 1978 and 1997).

"Approved
Brokers" means H. Clarkson & Co Ltd, Arrow Sale and Purchase (UK)
Limited, Braemar Seascope Limited, Fearnleys, SSY Valuation Services Limited,
VesselsValue and any other ship broker acceptable to the Agent in its absolute
discretion.

"Assignments"
means first priority deeds of assignment of the Insurances, Earnings, Charters
and Requisition Compensation of the Vessels from the Borrowers; and first
priority assignments of the Insurances from the Managers contained in the
Managers' Undertakings.  

"Assignment
Agreement" means an agreement substantially in the form set out in 0 (Form
of Assignment Agreement) or any other form agreed between the relevant
assignor and assignee.

"Authorisation"
means an authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration.

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 2 

 

"Availability Period" means the
period from and including the date of this Agreement to and including (a) 31
July 2019 (in respect of Tranche A) or (b) 30 June 2020 (in respect of Tranche
B) or such later date as may be requested by the Borrowers and agreed by all Lenders.

"Balloon"
means the aggregate of Balloon A and Balloon B.

"Break
Costs" means the amount (if any) by which:

(a)       the interest which a Lender should have received
for the period from the date of receipt of all or any part of its participation
in the Loan or an Unpaid Sum to the last day of the current Interest Period in
respect of the Loan or Unpaid Sum, had the principal amount or Unpaid Sum
received been paid on the last day of that Interest Period;

exceeds:

(b)       the amount which that Lender would be able to
obtain by placing an amount equal to the principal amount or Unpaid Sum
received by it on deposit with a leading bank for a period starting on the
Business Day following receipt or recovery and ending on the last day of the
current Interest Period.

"Business
Day" means a day (other than a Saturday or Sunday) on which banks are
open for general business in London, Athens, New York, Amsterdam and Rotterdam.  

“Change
in Ultimate Beneficial Owner” means, in respect of an Obligor, any event by
which a private individual (i) acquires the legal and/or beneficial ownership
(directly or indirectly) of 25 per cent. or more of the issued share capital of
that Obligor or (ii) acquires the power (whether by way of ownership of shares,
proxy, contract, agency or otherwise) to (directly or indirectly) cast, or
control the casting of, 25 per cent. or more of the votes that might be cast at
a general meeting of that Obligor or (iii) gains effective control over that
Obligor (such private individual being referred to as the “Ultimate
Beneficial Owner”). 

"Charged
Property" means all of the assets of the Obligors which from time to
time are, or are expressed to be, the subject of the Security Documents.

"Charters"
means any time or bareboat charter or contract of employment in respect of a
Vessel with a duration exceeding (or capable of exceeding) 12 months and "Charter"
means any one of them.

"Charterer"
means any entity which has entered into or will enter into a Charter with a
Borrower in respect of a Vessel.

"Code"
means the US Internal Revenue Code of 1986.

"Commitment"
means:

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 3 

 

(a)       in
relation to an Original Lender, the amount set opposite its name under the
heading "Commitment" in Part I of 0 (The
Parties) and the amount of any other Commitment transferred to it under
this Agreement; and  

(b)       in relation to any other Lender, the amount of
any Commitment transferred to it under this Agreement,

to
the extent not cancelled, reduced or transferred by it under this Agreement.

"Compliance Certificate" means a certificate substantially
in the form set out in 0 (Form of Compliance Certificate). 

"Confidential
Information" means all information relating to any Obligor, any other
member of the Group, the Finance Documents or the Loan of which a Finance Party
becomes aware in its capacity as, or for the purpose of becoming, a Finance
Party or which is received by a Finance Party in relation to, or for the
purpose of becoming a Finance Party under, the Finance Documents or the Loan
from either:

(a)       any Obligor , any other member of the Group or
any of its advisers; or

(b)       another Finance Party, if the information was
obtained by that Finance Party directly or indirectly from any Obligor , any
other member of the Group or any of its advisers,

in
whatever form, and includes information given orally and any document, electronic
file or any other way of representing or recording information which contains
or is derived or copied from such information but excludes information that:

(i)        is or becomes public information other than as a
direct or indirect result of any breach by that Finance Party of Clause 0 (Confidentiality);
or

(ii)        is identified in writing at the time of
delivery as non-confidential by any Obligor, any other member of the Group or
any of its advisers; or

(iii)       is known by that Finance Party before the date
the information is disclosed to it in accordance with 0 or 0 or
is lawfully obtained by that Finance Party after that date, from a source which
is, as far as that Finance Party is aware, unconnected with any Obligor or any
other member of the Group and which, in either case, as far as that Finance
Party is aware, has not been obtained in breach of, and is not otherwise
subject to, any obligation of confidentiality.

"Confidentiality
Undertaking" means a confidentiality undertaking substantially in a
recommended form of the Loan Market Association at the relevant time.

"Confirmation"
means a Confirmation exchanged or deemed to be exchanged between the Swap
Provider and the Borrowers as contemplated by the Master Agreement.

"Credit
Support Document" means any document described as such in the Master
Agreement and any other document referred to in any such document which has the
effect of creating security in favour of any of the Finance Parties.

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 4 

 

"Credit Support Provider" means
any person (other than a Borrower) described as such in the Master Agreement.

"CTA"
means the Corporation Tax Act 2009.

"Default"
means an Event of Default or any event or circumstance which would (with the
expiry of a grace period, the giving of notice, the making of any determination
under the Finance Documents or any combination of any of the foregoing) be an
Event of Default.

"Defaulting
Lender" means any Lender:

(a)       which has failed to make its participation in the
Loan available (or has notified the Agent or the Borrowers (which have notified
the Agent) that it will not make its participation in the Loan available) by
the Utilisation Date of the Loan in accordance with Clause 0 (Lenders'
participation); or

(b)       which has otherwise rescinded or repudiated a
Finance Document; or

(c)       with
respect to which an Insolvency Event has occurred and is continuing,

unless,
in the case of 0:

(i)        its failure to pay is caused by:

(A)       administrative or technical error; or

(B)       a Disruption Event; and

payment is made within three Business Days of its due date;
or

(ii)        the Lender is disputing in good faith whether
it is contractually obliged to make the payment in question.

"Delegate"
means any delegate, agent, attorney or co-trustee appointed by the Security
Agent.

"Diana
Shipping" means Diana Shipping Services S.A., a company incorporated
under the laws of Panama with its office at Edificio Universal, Piso 12,
Avenida Federico Boyd, Panama, Republic of Panama, having its established
office in Greece at Pendelis 16, 175 64 Palaio Faliro, Athens, Greece pursuant
to the provisions of Greek Law 27/1975.

"Disruption
Event" means either or both of:

(a)       a material disruption to those payment or
communications systems or to those financial markets which are, in each case,
required to operate in order for payments to be made in connection with the
Loan (or otherwise in order for the transactions contemplated by the Finance
Documents to be carried out) which disruption is not caused by, and is beyond
the control of, any of the Parties; or

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 5 

 

(b)       the
occurrence of any other event which results in a disruption (of a technical or
systems-related nature) to the treasury or payments operations of a Party
preventing that, or any other Party:

(i)        from performing its payment obligations under
the Finance Documents; or

(ii)        from communicating with other Parties in
accordance with the terms of the Finance Documents,

and
which (in either such case) is not caused by, and is beyond the control of, the
Party whose operations are disrupted.

"DOC"
means, in relation to the ISM Company, a valid Document of Compliance issued
for the ISM Company by the Administration under paragraph 13.2 of the ISM Code.

"Earnings"
means all hires, freights, passage moneys, pool income and other sums payable
to or for the account of a Borrower and/or Charterer in respect of a Vessel
including (without limitation) all remuneration for salvage and towage
services, demurrage and detention moneys, contributions in general average,
compensation in respect of any requisition for hire, and damages and other
payments (whether awarded by any court or arbitral tribunal or by agreement or
otherwise) for breach, termination or variation of any contract for the
operation, employment or use of a Vessel.

"Earnings
Accounts" means the bank accounts maintained in the names of the
Borrowers with the Account Holder and designated "Kaben Shipping Company
Inc. – Earnings Account", "Taroa Shipping Company Inc. – Earnings
Account", "Gala Properties Inc. – Earnings Account",
"Tuvalu Shipping Company Inc. – Earnings Account", "Jabat
Shipping Company Inc. – Earnings Account", "Bikini Shipping Company
Inc. – Earnings Account".

"Encumbrance"
means a mortgage, charge, assignment, pledge, lien or other security interest
securing any obligation of any person or any other agreement or arrangement
having a similar effect.

"Environmental
Approval" means any present or future permit, ruling, variance or
other Authorisation required under Environmental Laws.

"Environmental
Claim" means any claim, proceeding, formal notice or investigation by
any governmental, judicial or regulatory authority or any other person which
arises out of an Environmental Incident or an alleged Environmental Incident or
which relates to any Environmental Law and, for this purpose, "claim"
includes a claim for damages, compensation, contribution, injury, fines, losses
and penalties or any other payment of any kind, including in relation to
clean-up and removal, whether or not similar to the foregoing; an order or
direction to take, or not to take, certain action or to desist from or suspend
certain action; and any form of enforcement or regulatory action, including the
arrest or attachment of any asset.

"Environmental
Incident" means:

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 6 

 

(a)       any
release, emission, spill or discharge into or upon the air, sea, land or soils
(including the seabed) or surface water of Environmentally Sensitive Material
within or from a Vessel; or

(b)       any incident in which Environmentally Sensitive
Material is released, emitted, spilled or discharged into or upon the air, sea,
land or soils (including the seabed) or surface water from a vessel other than
a Vessel and which involves a collision between a Vessel and such other vessel
or some other incident of navigation or operation, in either case, in
connection with which a Vessel is actually or potentially liable to be
arrested, attached, detained or injuncted and a Vessel, any Obligor, any
operator or manager of a Vessel or any combination of them is at fault or
allegedly at fault or otherwise liable to any legal or administrative action;
or

(c)       any other incident in which Environmentally
Sensitive Material is released, emitted, spilled or discharged into or upon the
air, sea, land or soils (including the seabed) or surface water otherwise than
from a Vessel and in connection with which a Vessel is actually or potentially
liable to be arrested, attached, detained or injuncted and/or where any
Obligor, any operator or manager of a Vessel or any combination of them is at
fault or allegedly at fault or otherwise liable to any legal or administrative
action, other than in accordance with an Environmental Approval.

"Environmental
Law" means any present or future law or regulation relating to
pollution or protection of human health or the environment, to conditions in
the workplace, to the carriage, generation, handling, storage, use, release or
spillage of Environmentally Sensitive Material or to actual or threatened
releases of Environmentally Sensitive Material.

"Environmentally
Sensitive Material" means all contaminants, oil, oil products, toxic
substances and any other substance (including any chemical, gas or other
hazardous or noxious substance) which is (or is capable of being or becoming)
polluting, toxic or hazardous.

"EU
Ship Recycling Regulation" means Regulation (EU) No 1257/2013 of the
European Parliament and of the Council of 20 November 2013 on ship recycling
and amending Regulation (EC) No 1013/2006 and Directive 2009/16/EC (Text with
EEA relevance). 

"Event
of Default" means any event or circumstance specified as such in
Clause 0 (Events
of Default). 

"Existing
Borrowers" means Kaben, Taroa and Gala. 

"Facility
Office" means:

(a)       in
respect of a Lender, the office or offices notified by that Lender to the Agent
in writing on or before the date it becomes a Lender (or, following that date,
by not less than five Business Days' written notice) as the office or offices
through which it will perform its obligations under this Agreement; or

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 7 

 

(b)       in respect
of any other Finance Party, the office in the jurisdiction in which it is
resident for tax purposes.

"Facility
Period" means the period beginning on the date of this Agreement and
ending on the date when the whole of the Indebtedness has been paid in full and
the Obligors have ceased to be under any further actual or contingent liability
to the Finance Parties under or in connection with the Finance Documents.

"FATCA"
means:

(a)       sections
1471 to 1474 of
the Code or any associated regulations;

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

(c)       any agreement pursuant to the implementation of
any treaty, law or regulation referred to in (a) or (b) with the US Internal
Revenue Service, the US government or any governmental or taxation authority in
any other jurisdiction.

"FATCA
Application Date" means:

(a)       in relation to a "withholdable payment"
described in section 1473(1)(A)(i) of the Code (which relates to payments of
interest and certain other payments from sources within the US), 1 July 2014; or

(b)       in
relation to a "passthru payment" described in section 1471(d)(7) of
the Code not falling within (a), the first date from which such payment may
become subject to a deduction or withholding required by FATCA.

"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.

"Fee
Letter" means any letter or letters dated on or about the date of this
Agreement between the Agent and the Borrowers or the Security Agent and the
Borrowers setting out any of the fees referred to in Clause 0 (Fees). 

"Finance
Documents" means this Agreement, the Master Agreement, the Security
Documents, any Accession Deed, any Compliance Certificate, the Utilisation
Request, the Fee Letter, the Amendment and Restatement Agreement, any document
which is executed for the purpose of establishing any priority or subordination
arrangement in relation to the Indebtedness and any other document designated
as such by the Agent and the Borrowers.

"Finance
Parties" means the Agent, the Security Agent, the Swap Provider and
the Lenders.

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 8 

 

"Financial Indebtedness" means
any indebtedness for or in respect of:

(a)       moneys borrowed and debit balances at banks or
other financial institutions;

(b)       any acceptance under any acceptance credit or
bill discounting facility (or dematerialised equivalent);  

(c)       any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument;  

(d)       the amount of any liability in respect of any lease
or hire purchase contract, a liability under which would, in accordance with
GAAP, be treated as a balance sheet liability;

(e)       receivables sold or discounted (other than any
receivables to the extent they are sold on a non-recourse basis);

(f)        any Treasury Transaction (and, when calculating
the value of that Treasury Transaction, only the marked to market value (or, if
any actual amount is due as a result of the termination or close-out of that
Treasury Transaction, that amount) shall be taken into account);

(g)       any counter-indemnity obligation in respect of a
guarantee, bond, standby or documentary letter of credit or any other
instrument issued by a bank or financial institution in respect of (i) an
underlying liability of an entity which is not an Obligor or a member of the Group
which liability would fall within one of the other sections of this definition or
(ii) any liabilities of any Obligor or any other member of the Group relating
to any post-retirement benefit scheme;

(h)       any amount raised by the issue of shares which
are redeemable (other than at the option of the issuer) before the end of the
Facility Period or are otherwise classified as borrowings under GAAP;

(i)        any amount of any liability under an advance or
deferred purchase agreement if (i) one of the primary reasons behind entering into
the agreement is to raise finance or to finance the acquisition or construction
of the asset or service in question or (ii) the agreement is in respect of the
supply of assets or services and payment is due more than 30 days after the
date of supply;

(j)        any amount raised under any other transaction
(including any forward sale or purchase, sale and sale back or sale and
leaseback agreement) having the commercial effect of a borrowing or otherwise
classified as borrowings under GAAP; and

(k)       the amount of any liability in respect of any
guarantee or indemnity for any of the items referred to in 0 to
(j).

"GAAP"
means generally accepted accounting principles in the US. 

"Group"
means the Original Guarantor and its Subsidiaries.

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 9 

 

"Guarantee" means a guarantee
and indemnity in respect of the obligations of each other Obligor granted by each
Guarantor and contained in Clause 0 (Guarantee
and Indemnity). 

"Guarantor"
means the Original Guarantor or any Additional Guarantor, unless it has ceased
to be a Guarantor in accordance with Clause 0 (Changes
to the Obligors). 

"Holding
Company" means, in relation to a person, any other person in respect
of which it is a Subsidiary.

"IAPPC"
means a valid international air pollution prevention certificate for a Vessel
issued under Annex VI.

"Indebtedness"
means the aggregate from time to time of: the amount of the Loan outstanding;
all accrued and unpaid interest on the Loan; and all other sums of any nature
(together with all accrued and unpaid interest on any of those sums) payable to
any of the Finance Parties under all or any of the Finance Documents.

"Initial
Aggregate Market Value" means the aggregate market value of all the Vessels
as evidenced by the arithmetic average of the aggregate sum of two sets of
valuations of each Vessel received by, and addressed to, the Agent under Clause
0 (Conditions precedent) within 35 days before the
Utilisation Date and prepared at the expense of the Borrowers by an Approved
Broker selected by the Borrowers on the basis of a charter-free sale for prompt
delivery for cash at arm's length on normal commercial terms as between a
willing seller and a willing buyer. If the aggregate sums of those two sets of
valuations differ by at least 10%, then a third set of valuations addressed to
the Agent for each Vessel shall be obtained at the expense of the Borrowers
from another Approved Broker selected by the Borrowers and the Initial
Aggregate Market Value shall be the arithmetic average of the aggregate sums of
the two sets of valuations with the lowest aggregate value.

"Insolvency
Event" in relation to an entity means that the entity:

(a)       is dissolved (other than pursuant to a consolidation,
amalgamation or merger);

(b)       becomes insolvent or is unable to pay its debts
or fails or admits in writing its inability generally to pay its debts as they
become due;

(c)       makes a general assignment, arrangement or
composition with or for the benefit of its creditors;

(d)       institutes or has instituted against it, by a
regulator, supervisor or any similar official with primary insolvency,
rehabilitative or regulatory jurisdiction over it in the jurisdiction of its
incorporation or organisation or the jurisdiction of its head or home office, a
proceeding seeking a judgment of insolvency or bankruptcy or any other relief
under any bankruptcy or insolvency law or other similar law affecting
creditors' rights, or a petition is presented for its winding-up or liquidation
by it or such regulator, supervisor or similar official;

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 10 

 

(e)       has
instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors' rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition is instituted
or presented by a person or entity not described in (d) and:

(i)        results in a judgment of insolvency or
bankruptcy or the entry of an order for relief or the making of an order for
its winding-up or liquidation; or

(ii)        is not dismissed, discharged, stayed or
restrained in each case within 30 days of the institution or presentation
thereof;

(f)        has a resolution passed for its winding-up,
official management or liquidation (other than pursuant to a consolidation,
amalgamation or merger);

(g)       seeks or becomes subject to the appointment of an
administrator, provisional liquidator, conservator, receiver, trustee,
custodian or other similar official for it or for all or substantially all its
assets (other than, for so long as it is required by law or regulation not to
be publicly disclosed, any such appointment which is to be made, or is made, by
a person or entity described in (d));

(h)       has a secured party take possession of all or
substantially all its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or against all
or substantially all its assets and such secured party maintains possession, or
any such process is not dismissed, discharged, stayed or restrained, in each
case within 30 days thereafter;

(i)        causes or is subject to any event with respect
to it which, under the applicable laws of any jurisdiction, has an analogous
effect to any of the events specified in 0 to
(i); or

(j)        takes
any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts.

"Insurances"
means all policies and contracts of insurance (including all entries in
protection and indemnity or war risks associations) which are from time to time
taken out or entered into in respect of or in connection with a Vessel or her
increased value or her Earnings and (where the context permits) all benefits
under such contracts and policies, including all claims of any nature and
returns of premium.

"Interest
Period" means each period determined in accordance with Clause 0 (Interest
Periods) and, in relation to an Unpaid Sum, each period determined in
accordance with Clause 0 (Default
interest). 

"Interpolated
Screen Rate" means, in relation to LIBOR, the rate which results from
interpolating on a linear basis between:

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(a)       the applicable Screen Rate for the
longest period (for which that Screen Rate is available) which is less than the
relevant Interest Period; and

(b)       the
applicable Screen Rate for the shortest period (for which that Screen Rate is
available) which exceeds the relevant Interest Period,

each
as of 11.00 a.m. on the Quotation Day for dollars.

"Inventory
of Hazardous Materials" means a statement of compliance issued by the
relevant classification society which includes a list of any and all materials
known to be potentially hazardous utilised in the construction of a Vessel also
referred to as List of Hazardous Materials. 

"ISM
Code" means the International Management Code for the Safe Operation
of Ships and for Pollution Prevention.

"ISM
Company" means, at any given time, the company responsible for a
Vessel's compliance with the ISM Code under paragraph 1.1.2 of the ISM Code.

"ISPS
Code" means the International Ship and Port Facility Security Code.

"ISSC"
means a valid international ship security certificate for a Vessel issued under
the ISPS Code.

"ITA"
means the Income Tax Act 2007.

"Joint
Venture" means any joint venture entity, whether a company,
unincorporated firm, undertaking, association, joint venture or partnership or
any other entity.

"Legal
Opinion" means any legal opinion delivered to the Agent under Clause 0 (Utilisation
conditions precedent) or Clause 0 (Conditions
subsequent). 

"Legal
Reservations" means:

(a)       the principle that equitable remedies may be
granted or refused at the discretion of a court and the limitation of
enforcement by laws relating to insolvency, reorganisation and other laws
generally affecting the rights of creditors;

(b)       the time barring of claims under the Limitation
Acts, the possibility that an undertaking to assume liability for or indemnify
a person against non-payment of UK stamp duty may be void and defences of
set-off or counterclaim;

(c)       similar principles, rights and defences under the
laws of any Relevant Jurisdiction; and

(d)       any
other matters which are set out as qualifications or reservations as to matters
of law of general application in the Legal Opinions.

"Lender"
means:

(a)       any Original Lender; and  

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 12 

 

(b)       any bank,
financial institution, trust, fund or other entity which has become a Party as
a Lender in accordance with Clause 0 (Changes
to the Lenders), 

which
in each case has not ceased to be a Party as such in accordance with the terms
of this Agreement.

"LIBOR"
means:

(a)       the
applicable Screen Rate; or 

(b)       (if
no Screen Rate is available for the relevant Interest Period) the Interpolated
Screen Rate; or

(c)       if
(i) no Screen Rate is available for the currency of the Loan or (ii) no Screen
Rate is available for the relevant Interest Period and it is not possible to
calculate the Interpolated Screen Rate) the Reference Bank Rate,

as
of 11.00 a.m. on the Quotation Day for dollars and for a period equal in length
to the relevant Interest Period and, if that rate is less than zero, LIBOR shall
be deemed to be zero.

"Limitation
Acts" means the Limitation Act 1980 and the Foreign Limitation Periods
Act 1984.

"Loan"
means the aggregate of the amount advanced (in respect of Tranche A) and the
amount to be advanced (in respect of Tranche B) by the Lenders to the Borrowers
under Clause 0 (The
Loan) or, where the context permits, the principal amount advanced and for
the time being outstanding.

"Majority
Lenders" means a Lender or Lenders whose Commitments aggregate more
than 662/3% of the Total Commitments (or, if the Total
Commitments have been reduced to zero, aggregated more than 662/3%
of the Total Commitments immediately prior to the reduction).

"Management
Agreements" means the agreements for the
technical and commercial management of the Vessels entered or to be entered
into between the Borrowers respectively and the Managers.

"Managers"
means Diana Shipping or Diana Wilhelmsen Management Limited a company
incorporated and existing under the laws of the Republic of Cyprus having its
registered office at 21 Vasili Michailidi Street, 3026 Limassol, Cyprus or any
other company which the Agent (acting on the instructions of the Majority
Lenders) may approve from time to time as the manager of a Vessel. 

"Managers'
Undertakings" means written undertakings of the Managers in form and
substance acceptable to the Agent.

"Mandatory Cost" means, in
respect of the Lenders, the cost to a Lender (as conclusively certified by it)
of complying with any requirements of any competent authority or agency
relating to monetary control and liquidity (including reserve asset and/or
special deposit 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 13 

 

or liquidity requirements or other
requirements having the same or a similar purpose whether or not having the
force of law but with which it is customary to comply) in relation to making
available the Loan.

"Margin"
means:

(a)       2.25
per cent per annum in respect of Tranche A; and

(b)       2.40
per cent per annum in respect of Tranche B. 

"Market
Value" means the value of each Vessel or any other vessel over which
additional security has been created or which is being offered as additional
security in accordance with Clause 0 (Additional
Security) conclusively determined by two Approved Brokers selected by the
Borrowers and appointed by, and reporting to, the Agent on the basis of a
charter-free sale for prompt delivery for cash at arm's length on normal
commercial terms as between a willing seller and a willing buyer and evidenced by
two valuations. The Market Value shall be calculated as the arithmetic average
of two valuations (in form and substance acceptable to the Agent) of a Vessel
or vessel and addressed to the Agent. 

"Master
Agreement" means any ISDA Master Agreement (or any other form of
master agreement relating to interest or currency exchange transactions)
entered into between the Swap Provider and the Borrowers before or during the
Facility Period, including each Schedule to any Master Agreement and each
Confirmation exchanged under any Master Agreement.

"Master
Agreement Proceeds" means any and all sums due and payable to the
Borrowers or any of them under the Master Agreement following an Early
Termination Date (subject always to all rights of netting and set-off contained
in the Master Agreement) and all rights to require and enforce the payment of
those sums.

"Master
Agreement Proceeds Charge" means a first priority deed of charge over
the Master Agreement Proceeds.

"Material
Adverse Effect"  means in the reasonable opinion of the Majority
Lenders a material adverse effect on:

(a)       the business, operations, property, condition
(financial or otherwise) or prospects of any Obligor or the Group taken as a
whole; or

(b)       the ability of any Obligor to perform its
obligations under any Finance Document; or

(c)       the validity or enforceability of, or the
effectiveness or ranking of any Encumbrance granted or purporting to be granted
pursuant to any of, the Finance Documents or the rights or remedies of any
Finance Party under any of the Finance Documents.

"Maximum
Loan Amount" means an amount equal to the lesser of:

(a)       $52,885,000;
and

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(b)       57% of the Initial Aggregate Market
Value.

"Minimum
Liquidity Amount" means in relation to each Borrower an amount of no
less than $400,000.

"Month"
means a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month, except that:

(a)       (subject
to (c) below) if the numerically corresponding day is not a Business Day, that
period shall end on the next Business Day in that calendar month in which that
period is to end if there is one, or if there is not, on the immediately
preceding Business Day;

(b)       If
there is no numerically corresponding day in the calendar month in which that
period is to end, that period shall end on the last Business Day in that
calendar month; and

(c)       If
an Interest Period begins on the last Business Day of a calendar month, that
Interest Period shall end on the last Business Day in the calendar month in
which that Interest Period is to end.

The
above rules will only apply to the last Month of any period.

"Mortgage
Addenda" means:

(a)       the
first addendum to the first preferred Marshall Islands Mortgage over          Vessel
A dated 28 June 2019; 

(b)       the
first addendum to the first preferred Marshall Islands Mortgage over          Vessel
B dated 28 June 2019; 

(c)       the
first addendum to the first preferred Marshall Islands Mortgage over          Vessel
C dated 28 June 2019; 

and
each a "Mortgage Addendum". 

"Mortgage"
means the first preferred mortgage over each Vessel including, if applicable
any Mortgage Addendum.  

"New
Borrowers" means Tuvalu, Jabat and Bikini. 

"New
Lender" has the meaning given to that term in Clause 0 (Assignments
and transfers by the Lenders). 

"New
Vessels" means Vessel D, Vessel E and Vessel F.

"Non-Consenting
Lender" has the meaning given to that term in Clause 0 (Replacement
of Lender). 

"Obligor"
means each Borrower and each Guarantor.

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"Original Financial Statements"
means the audited consolidated financial statements of the Original Guarantor
for the financial year ended 31 December 2018.

"Original
Jurisdiction" means, in relation to an Obligor, the jurisdiction under
whose laws that Obligor is incorporated as at the date of this Agreement or, in
the case of an Additional Guarantor, as at the date on which that Additional
Guarantor becomes Party as a Guarantor.

"Other
Facility" means a facility agreement dated 26 March 2015 (as amended
and supplemented from time to time) entered into between, among others, (1) the
New Borrowers (as joint and several borrowers), (2) certain banks (as lenders)
and (3) ABN AMRO Bank N.V. (as agent and security agent), in connection with a
term loan of up to $53,000,000.  

"Party"
means a party to this Agreement.

"Permitted Disposal" means any sale,
lease, licence, transfer or other disposal:

(a)       of
assets in exchange for other assets comparable or superior as to type, value
and quality (other than an exchange of a non-cash asset for cash);

(b)       of
obsolete or redundant equipment for cash;

(c)       arising
as a result of any Permitted Encumbrance; and

(d)       of
a Vessel made in accordance with this Agreement.

"Permitted
Encumbrance" means:

(a)       any Encumbrance which has the prior written
approval of the Agent;

(b)       any
Encumbrance created or expressed to be created under or pursuant to or
evidenced by the Security Documents;

(c)       any Encumbrance arising by operation of law and
in the ordinary course of trading and not as a result of any default or
omission by an Obligor;

(d)       any Quasi-Security arising as a result of a
disposal which is a Permitted Disposal; and

(e)       any
right of pledge and/or set off under and pursuant to the general banking
conditions (Algemene Bankvoorwaarden) of ABN AMRO Bank N.V.

"Prohibited
Person" means any person (whether designated by name or by reason of
being included in a class of persons) against whom Sanctions are directed.  

"Quasi-Security"
has the meaning given to that term in Clause 0 (Negative
pledge). 

"Quotation
Day" means, in relation to any period for which an interest rate is to be determined (for dollars) two Business
Days before the first day of that period, unless market practice differs in
the Relevant Market, in which case the Quotation Day will be 

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determined by the Agent in accordance with market
practice in the Relevant Market (and if quotations would normally be given by
leading banks in the Relevant Market on more than one day, the Quotation Day
will be the last of those days).

"Receiver"
means a receiver or receiver and manager or administrative receiver of the
whole or any part of the Charged Property.

"Reference
Bank Rate" means the arithmetic mean of the rates (rounded upwards to
four decimal places) as supplied to the Agent at its request by the Reference
Banks:

(a)       in relation to LIBOR as either:

(i)        if:

(A)       the Reference Bank is a contributor to
the applicable Screen Rate; and

(B)       it
consists of a single figure,

the
rate (applied to the relevant Reference Bank and the relevant currency and
period) which contributors to the applicable Screen Rate are asked to submit to
the relevant administrator; or

(ii)        in
any other case, the rate at which the relevant Reference Bank could fund itself
in the relevant currency for the relevant period with reference to the
unsecured wholesale funding market.

"Reference
Banks" means, in relation to LIBOR, the principal London offices of ABN
AMRO Bank N.V. or such other banks as may be appointed by the Agent.

"Related
Fund" in relation to a fund (the "first fund"), means
a fund which is managed or advised by the same investment manager or investment
adviser as the first fund or, if it is managed by a different investment
manager or investment adviser, a fund whose investment manager or investment
adviser is an Affiliate of the investment manager or investment adviser of the
first fund.

"Relevant
Documents" means the Finance Documents, the Management Agreements, any
Charter and each Borrower's constitutional documents.

"Relevant
Market" means the London interbank market. 

"Relevant Jurisdiction" means, in relation to an Obligor:

(a)       its Original Jurisdiction;

(b)       any jurisdiction where any asset subject to or
intended to be subject to a Security Document to be executed by it is situated;

(c)       any jurisdiction where it conducts its business;
and

 PIRAEUS\3125851.2                                                                                                                                                                               Page
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(d)       the jurisdiction whose laws govern the
perfection of any of the Security Documents entered into by it.

"Repayment
Date" means each date for payment of a Repayment Instalment in
accordance with Clause 0 (Repayment). 

"Repayment
Instalment" means any instalment of each Tranche to be repaid by the
Borrowers under Clause 0 (Repayment). 

"Repeating
Representations" means each of the representations set out in Clause 0 (Representations)
other than the representations contained in Clauses 20.1.12 (a) to (c), 0 (No
filing or stamp taxes),  0 (Deduction
of Tax) and 0
(Taxation). 

"Representative"
means any delegate, agent, manager, administrator, nominee, attorney, trustee
or custodian.

"Requisition
Compensation" means all compensation or other money which may from
time to time be payable to a Borrower as a result of a Vessel being
requisitioned for title or in any other way compulsorily acquired (other than
by way of requisition for hire).

"Restricted Party" means a person:

(a)       listed on or owned or controlled by a person
listed on any Sanctions List; or

(b)       located in, organised under the laws
of or owned or controlled by, or acting on behalf of, a person located in or
organised under the laws of a country or territory which is a subject of
country-wide or territory-wide Sanctions (including, without limitation, at the
date of this Agreement, Cuba, Iran, North Korea, Syria and Sudan); or

(c)       otherwise a subject of Sanctions.

"Sanctions" means any trade, economic or
financial sanctions laws, regulations, embargoes or restrictive measures
administered, enacted or enforced by a Sanctions Authority with which the
Borrowers (or Lenders) are legally bound to comply.

"Sanctions Authority" means:

(a)       the Security Council of the United Nations;

(b)       the United States;

(c)       the United Kingdom;

(d)       the European Union 

(e)       any member state of the European Union
(including, without limitation, The Netherlands); 

(f)        any country in which any Obligor is
registered or has material (financial or otherwise) interests or operations;
and 

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(g)       the
governments and official institutions or agencies of any of paragraphs (a) to
(f) above, including without limitation the U.S. Office of Foreign Asset
Control (“OFAC”), the U.S. Department of State, and Her Majesty's
Treasury (“HMT”). 

"Sanctions List" means the Specially
Designated Nationals and Blocked Persons list maintained by OFAC, the
Consolidated List of Financial Sanctions Targets maintained by HMT, or any
similar list maintained by, or public announcement of Sanctions designation
made by, a Sanctions Authority, each as amended, supplemented or substituted
from time to time.

"Screen
Rate" means in relation to LIBOR, the London interbank offered rate
administered by ICE Benchmark Administration Limited (or any other person which
takes over the administration of that rate) for the relevant currency and
period displayed on pages 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 the service
ceases to be available, the Agent may specify another page or service
displaying the relevant rate after consultation with the Borrowers.

"Secured
Parties" means each Finance Party from time to time party to this
Agreement and any Receiver or Delegate.

"Security
Documents" means the Mortgages, the Assignments, each Guarantee, the
Account Security Deed, the Share Securities, the Managers' Undertakings, the
Master Agreement Proceeds Charge, any Subordinated Debt Encumbrance and any
other Credit Support Documents or (where the context permits) any one or more
of them, and any other agreement or document which may at any time be executed
by any person as security for the payment of all or any part of the
Indebtedness.

"Share
Securities" means first priority pledges of all the issued shares of
the Borrowers.

"SMC"
means a valid safety management certificate issued for a Vessel by or on behalf
of the Administration under paragraph 13.7 of the ISM Code.

“Subordinated
Debt Encumbrance” means any Encumbrance in favour of the Security Agent
pursuant to Clause 23.17.2 (No borrowings). 

"Subsidiary"
means a subsidiary undertaking within the meaning of section 1162 of the
Companies Act 2006.

"Tax"
means any tax, levy, impost, duty or other charge or withholding of a similar
nature (including any penalty or interest payable in connection with any
failure to pay or any delay in paying any of the same).

"Termination
Date" means the date falling on the earlier of (a) four point two (4.2)
years from the Utilisation Date of Tranche B and (b) 30 June 2024. 

"Total
Commitments" means the aggregate of the Commitments.

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"Total Loss" means:

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

(b)       the
requisition for title or compulsory acquisition of a Vessel by any government
or other competent authority (other than by way of requisition for hire); or  

(c)       the capture, seizure, arrest, detention,
hijacking, theft, condemnation as prize, confiscation or forfeiture of a Vessel
(not falling within 0),
unless that Vessel is released and returned to the possession of the relevant
Borrower within 30 days after the capture, seizure, arrest, detention,
hijacking, theft, condemnation as prize, confiscation or forfeiture in
question.

"Tranches" means Tranche A and Tranche B
and "Tranche" means any one of them.

"Tranche A" means the part of the Loan originally
in the amount of up to USD25,000,000 which already advanced to the Existing Borrowers
in respect of Vessel A, Vessel B and Vessel C and of which USD 22,600,000 is
outstanding on the Effective Date (as defined in the Amendment and Restatement
Agreement).

"Tranche B" means the part of the Loan in an
amount of up to USD 30,285,000 to be advanced to the Borrowers in respect of the
New Vessels, for the purpose of refinancing the Financial Indebtedness under
the Other Facility.

"Transfer
Certificate" means a certificate substantially in the form set out in 0 (Form
of Transfer Certificate) or any other form agreed between the Agent and the
Borrowers.

"Transfer
Date" means, in relation to an assignment or a transfer, the later of:

(a)       the proposed Transfer Date specified in the
relevant Assignment Agreement or Transfer Certificate; and

(b)       the date on which the Agent executes the relevant
Assignment Agreement or Transfer Certificate.

"Treasury
Transactions" means any derivative transaction entered into in
connection with protection against or benefit from fluctuation in any rate or
price.

"Trust
Property" means:

(a)       all
benefits derived by the Security Agent from any Finance Document; and

(b)       all
benefits arising under (including, without limitation, all proceeds of the enforcement
of) each of the Security Documents,

excluding
any benefits arising solely for the benefit of the Security Agent.

"Unpaid
Sum" means any sum due and payable but unpaid by any Obligor under the
Finance Documents.

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"US" means the United States of
America.

"Utilisation
Date" means the date on which Tranche B is advanced under Clause 0 (Advance). 

"Utilisation
Request" means a notice substantially in the form set out in 0 (Utilisation
Request). 

"VAT"
means:

(a)       any tax imposed in compliance with the Council
Directive of 28 November 2006 on the common system of value added tax (EC
Directive 2006/112); and

(b)       any other tax of a similar nature, whether
imposed in a member state of the European Union in substitution for, or levied
in addition to, such tax referred to in 0,
or imposed elsewhere.

"Vessel A" means the m.v.
"SELINA" with IMO number 9473183 currently registered under the flag
of the Republic of the Marshall Islands in the ownership of Kaben and
everything now or in the future belonging to her on board and ashore.

"Vessel B" means the m.v.
"ISMENE" with IMO number 9493535 currently registered under the flag
of the Republic of the Marshall Islands in the ownership of Taroa and
everything now or in the future belonging to her on board and ashore.

"Vessel C" means the m.v.
"HOUSTON" with IMO number 9539602 currently registered under the flag
of the Republic of the Marshall Islands in the ownership of Gala and everything
now or in the future belonging to her on board and ashore. 

"Vessel D" means the m.v. "NEW
YORK" with IMO number 9405332 currently registered under the flag of the
Republic of the Marshall Islands in the ownership of Bikini and everything now
or in the future belonging to her on board and ashore. 

"Vessel E" means the m.v.
"MYRTO" with IMO number 9518086 currently registered under the flag
of the Republic of the Marshall Islands in the ownership of Tuvalu and everything
now or in the future belonging to her on board and ashore. 

"Vessel F" means the m.v. "MAIA"
with IMO number 9422938 currently registered under the flag of the Republic of
the Marshall Islands in the ownership of Jabat and everything now or in the
future belonging to her on board and ashore. 

"Vessels" means Vessel A, Vessel B, Vessel
C, Vessel D, Vessel E and Vessel F and each a "Vessel". 

1.2       Construction   Unless a contrary indication appears, any reference in
this Agreement to:  

1.2.1    any "Lender", any "Borrower",
any "Guarantor", the "Agent", the "Swap
Provider", any "Secured Party", the "Security
Agent", any "Finance Party" or any "Party"
shall be construed so as to include its successors in title, permitted 

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assignees and
permitted transferees to, or of, its rights and/or obligations under the
Finance Documents;

1.2.2    "assets" includes present and
future properties, revenues and rights of every description;  

1.2.3    a "Finance Document", a "Security
Document", a "Relevant Document" or any other
agreement or instrument is a reference to that Finance Document, Security
Document, Relevant Document or other agreement or instrument as amended,
novated, supplemented, extended or restated from time to time;

1.2.4    a "group of Lenders" includes all
the Lenders;

1.2.5    "guarantee"
means (other than in Clause 0 (Guarantee
and Indemnity)) 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;

1.2.6    "indebtedness" includes any
obligation (whether incurred as principal or as surety) for the payment or
repayment of money, whether present or future, actual or contingent;

1.2.7    a "person" includes any
individual, firm, company, corporation, government, state or agency of a state
or any association, trust, joint venture, consortium, partnership or other
entity (whether or not having separate legal personality);  

1.2.8    a "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 of any regulatory, self-regulatory or other authority or
organisation;  

1.2.9    a provision of law is a reference to that
provision as amended or re-enacted from time to time;

1.2.10   a time of day (unless otherwise specified) is a
reference to London time; and

1.2.11   the
determination of the extent to which a rate is "for a period equal in
length" to an Interest Period shall disregard any inconsistency
arising from the last day of that Interest Period being determined pursuant to
the terms of this Agreement.

1.3       Headings    Section, Clause and
Schedule headings are for ease of reference only.  

1.4       Defined terms   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.  

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1.5       Default   
A Default (other than an Event of Default) is "continuing" if it has
not been remedied or waived and an Event of Default is "continuing"
if it has not been waived.

1.6       Currency symbols and definitions  
"$", "USD"  and "dollars"
denote the lawful currency of the United States of America.

1.7       Third party rights

1.7.1    Unless
expressly provided to the contrary in a Finance Document a person who is not a
Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the
"Third Parties Act") to enforce or to enjoy the benefit of any
term of this Agreement.

1.7.2    Notwithstanding
any term of any Finance Document, the consent of any person who is not a Party is
not required to rescind or vary this Agreement at any time.

1.8       Offer letter   This Agreement
supersedes the terms and conditions contained in any correspondence relating to
the subject matter of this Agreement exchanged between any Finance Party and
the Borrowers or their representatives before the date of this Agreement.

1.9       Contractual
recognition of bail-in

1.9.1    In
this Clause 0:

"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.

"Bail-In
Action" means the exercise of any Write-down and Conversion Powers.

"Bail-In
Legislation" means:

(a)       in
relation to an EEA Member Country which has implemented, or which at any time
implements, Article 55 BRRD, 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 state other than such an EEA Member Country or (to the extent
that the United Kingdom is not such an EEA Member Country) the United Kingdom,
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.

"EEA
Member Country" means any member state of the European Union, Iceland,
Liechtenstein and Norway.

"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. 

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"Resolution Authority" means
any body which has authority to exercise any Write-down and Conversion Powers.

"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 I 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 institutions or
their affiliates (otherwise than through liquidation, administration or other
insolvency proceedings).

"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 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
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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.

1.9.2    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.

1.10      Sanctions

1.10.1   In
this Clause 0:

"Restricted
Lender" means a Lender that notifies the Agent to the effect that the
Sanctions Provisions will only apply for its benefit according to Clause 0.

"Sanctions
Provisions" means the representations and warranties given in Clause 0 (Sanctions)
and the undertakings given in Clause 0 (Sanctions). 

1.10.2   The Sanctions Provisions shall only be given to a
Lender the extent that the making, the receiving of the benefit of and/or,
where applicable, the repetition of these representations and warranties, and
the compliance with these undertakings do not result in a violation of or
conflict with:

(a)       any
provision of Council Regulation (EC) 2271/1996 of 22 November 1996 protecting
against the effects of the extra-territorial application of legislation adopted
by a third country, and actions based thereon or resulting therefrom;

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(b)       if applicable, section 7 of the German Foreign
Trade Regulation (Außenwirtschaftsverordnung) (in conjunction with section 4 paragraph 1 of No.3
foreign trade law (AWG) (Außenwirtschaftsgesetz)); or

(c)        any
similar applicable anti-boycott law or regulation.

1.10.3   In
connection with any amendment, waiver, determination or direction relating to
any part of a Sanctions Provision of which a Restricted Lender does not have
the benefit pursuant to this Clause 0,
the Commitments of that Restricted Lender will be excluded for the purpose of
determining whether the consent of the relevant Lenders has been obtained or
whether the determination or direction by the relevant Lenders has been made.

1.10.4   Any
amendment, waiver, determination or direction relating to any part of this
Clause 0 will be subject to the consent of each Restricted Lender.

 

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Section 2            The Loan

2            The
Loan

2.1       Amount    Subject to the terms
of this Agreement, the Lenders agree to make available to the Borrowers on a
joint and several basis a term loan in an aggregate amount not exceeding the
Maximum Loan Amount comprising
of Tranche A (which has already been advanced) and Tranche B.

2.2       Finance
Parties' rights and obligations

2.2.1    The obligations of each Finance Party under the
Finance Documents are several.  Failure by a Finance Party to perform its
obligations under the Finance Documents does not affect the obligations of any
other Party under the Finance Documents.  No Finance Party is responsible for
the obligations of any other Finance Party under the Finance Documents.

2.2.2    The
rights of each Finance Party under or in connection with the Finance Documents
are separate and independent rights and any debt arising under the Finance
Documents to a Finance Party from an Obligor is a separate and independent debt
in respect of which a Finance Party shall be entitled to enforce its rights in
accordance with Clause 0. 
The rights of each Finance Party include any debt owing to that Finance Party
under the Finance Documents and, for the avoidance of doubt, any part of the
Loan or any other amount owed by an Obligor which relates to a Finance Party's
participation in the Loan or its role under a Finance Document (including any
such amount payable to the Agent on its behalf) is a debt owing to that Finance
Party by that Obligor.

2.2.3    A Finance Party may, except as specifically
provided in the Finance Documents, separately enforce its rights under or in
connection with the Finance Documents.

3            Purpose

3.1       Purpose    The Borrowers shall
apply the proceeds of Tranche B for
the purpose of refinancing any Financial Indebtedness under the Other Facility.

3.2       Monitoring    No Finance Party
is bound to monitor or verify the application of any amount borrowed pursuant
to this Agreement.

4            Conditions of
Utilisation

4.1       Conditions
precedent

4.1.1    Utilisation conditions precedent The
Lenders will only be obliged to comply with Clause 0 (Lenders'
participation) in relation to the advance of  Tranche B if, on or before
the Utilisation Date, the Agent has received all of the documents and other
evidence listed in Part I of 0 (Conditions
Precedent) in form and substance satisfactory to the Agent, save that
references in Section 2 of that Part I to "the Vessel" or
"Vessels" or to any person or document relating to a Vessel 

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shall be deemed to relate solely to the New Vessels or to
any person or document relating to the New Vessels respectively.  The Agent
shall notify the Borrowers and the Lenders promptly upon being so satisfied.

4.1.2    Other than to the extent that the Majority Lenders
notify the Agent in writing to the contrary before the Agent gives the
notification described in Clause 0,
the Lenders authorise (but do not require) the Agent to give that
notification.  The Agent shall not be liable for any damages, costs or losses
whatsoever as a result of giving any such notification.

4.2       Further
conditions precedent

The Lenders will only
be obliged to advance a Tranche if on the date of the Utilisation Request and
on the Utilisation Date:

(a)         no
Default is continuing or would result from the advance of a Tranche; and

(b)         the
representations made by each Borrower and each Guarantor under Clause 0 (Representations)
are true.

(c)         no event or circumstance has
occurred since 29 April 2020 which the Lenders have determined that it has or
is reasonably likely to have a Material Adverse Effect;

4.3       Conditions subsequent   The
Borrowers undertake to deliver or to cause to be delivered to the Agent within
5 days after the Utilisation Date the additional documents and other evidence
listed in Part II of 0 (Conditions
Subsequent).   

4.4       No waiver   If the Lenders
agree to advance a Tranche to the Borrowers before all of the documents and
evidence required by Clause 0 (Conditions
precedent) have been delivered to or to the order of the Agent, the
Borrowers undertake to deliver all outstanding documents and evidence to or to
the order of the Agent no later than 30 days after the Utilisation Date or such
other date specified by the Agent (acting on the instructions of all the
Lenders).

The
advance of a Tranche under this Clause 0
shall not be taken as a waiver of the Lenders' right to require production of
all the documents and evidence required by Clause 0 (Conditions
precedent). 

4.5       Form and content   All
documents and evidence delivered to the Agent under this Clause shall:

4.5.1    be in form and substance acceptable to the Agent;
and

4.5.2    if required by the Agent, be certified, notarised,
legalised or attested in a manner acceptable to the Agent.

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Section 3            Utilisation

5            Advance

5.1       Delivery of a Utilisation Request  
The Borrowers may request a Tranche to be advanced by delivery to the Agent of
a duly completed Utilisation Request not more than ten Business Days before the
proposed Utilisation Date and not later than 11.00 am (London time) three
Business Days before the proposed Utilisation Date.  

5.2       Completion of a Utilisation Request  
A Utilisation Request is irrevocable and will not be regarded as having been
duly completed unless:

5.2.1    it is signed by an authorised signatory of each
Borrower;

5.2.2    the proposed Utilisation Date is a Business Day
within the relevant Availability Period; and

5.2.3    the proposed Interest Period complies with Clause 0 (Interest
Periods). 

5.3       Lenders'
participation

5.3.1    Subject to Clauses 0 (The
Loan), 3 (Purpose) and 0 (Conditions
of Utilisation), each Lender shall make its participation in any Tranche available
by the Utilisation Date through its Facility Office.

5.3.2    The amount of each Lender's participation in any Tranche
will be equal to the proportion borne by its Commitment to the Total
Commitments.

5.4       Cancellation of Commitment  
The Total Commitments shall be cancelled at the end of the Availability Period
to the extent that they are unutilised at that time.

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Section 4            Repayment, Prepayment and Cancellation

6            Repayment

6.1       Repayment of Loan    The Borrowers shall repay the Loan to the Agent,
as follows: 

6.1.1    Tranche
A, by 17 equal consecutive instalments, the first 16 such instalments each in
the sum of $800,000 and the 17th and final such instalment in the sum of
$9,800,000 (comprising an instalment of $800,000 and a balloon payment in the
sum of $9,000,000 ("Balloon A")) the first payment of Tranche A
shall be made on 30 June 2020 and the subsequent instalments shall fall due at
consecutive intervals of three Months thereafter and the 17th and final
instalment (including Balloon A) in respect of Tranche A shall fall due on the
Termination Date; and

6.1.2    Tranche
B, by 17 equal consecutive instalments, the first 16 such instalments each in
the sum of $993,750 and the 17th and final such instalment in the sum of
$14,385,000 (comprising an instalment of $993,750 and a balloon payment in the
sum of $13,391,250 ("Balloon B")), the first payment of
Tranche B shall be made on 30 June 2020 and the subsequent instalments shall
fall due at consecutive intervals of three Months thereafter and the 17th
and final instalment (including Balloon B) in respect of Tranche B shall fall
due on the Termination Date.

6.2       Reduction
of Repayment Instalments   If the facility amount advanced to the Borrowers
in respect of Tranche B is less than $30,285,000 the amount of each Repayment
Instalment in respect of Tranche B shall be reduced pro rata to the amount
actually advanced.

6.3       Reborrowing    The Borrowers may
not reborrow any part of the Loan which is repaid.

7            Illegality,
Prepayment and Cancellation

7.1       Illegality    If in any
applicable jurisdiction it becomes unlawful (other than by reason of Sanctions)
for a Lender to perform any of its obligations as contemplated by this
Agreement or to fund or maintain its participation in the Loan or it becomes
unlawful for any Affiliate of a Lender for that Lender to do so:

7.1.1    that Lender shall promptly notify the Agent upon
becoming aware of that event;  

7.1.2    upon the Agent notifying the Borrowers, the
Commitment of that Lender will be immediately cancelled; and  

7.1.3    to the extent that the Lender's participation has
not been transferred pursuant to Clause 0 (Replacement
of Lender), the Borrowers shall repay that Lender's participation in the
Loan on the last day of the current Interest Period or, if earlier, the date
specified by that Lender in the notice delivered to the Agent and notified by
the Agent to the Borrowers (being no earlier than the last day of any
applicable grace period permitted by law).

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7.2       Voluntary
cancellation   The Borrowers may, if they give the Agent not less than 10
Business Days' (or such shorter period as the Majority Lenders may agree) prior
notice, cancel the whole or any part (being a minimum amount of $500,000) of
the undrawn amount of the Loan.  Any cancellation under this Clause 0
shall reduce the Commitments of the Lenders rateably.  

7.3       Voluntary prepayment of Loan  
The Borrowers may prepay the whole or any part of the Loan (but, if in part,
being a minimum amount that reduces the Loan by an amount which is an integral
multiple of $500,000) subject as follows:

7.3.1    they give the Agent not less than ten Business
Days' (or such shorter period as the Majority Lenders may agree) prior notice;  

7.3.2    the Loan may only be prepaid after the last day of
the Availability Period; and

7.3.3    any
prepayment under this Clause 7.3 shall satisfy the obligations under Clause 6.1
(Repayment of Loan) in the manner selected by the Borrower and specified
in the notice set out in clause 7.3.1

7.4       Right of
cancellation and prepayment in relation to a single Lender

7.4.1    If:

(a)       any sum payable to any Lender by a Borrower or a
Guarantor is required to be increased under Clause 0 (Tax
gross-up);  or

(b)       any Lender claims indemnification from a Borrower
or a Guarantor under Clause 0 (Tax
indemnity) or Clause 0 (Increased
costs) ,

the
Borrowers may, while the circumstance giving rise to the requirement for that
increase or indemnification continues, give the Agent notice of cancellation of
the Commitment(s) of that Lender and their intention to procure the repayment
of that Lender's participation in the Loan.

7.4.2    On receipt of a notice referred to in Clause 0 in
relation to a Lender, the Commitment(s) of that Lender shall immediately be
reduced to zero.

7.4.3    On the last day of the Interest Period which ends
after the Borrowers have given notice under Clause 0 in
relation to a Lender (or, if earlier, the date specified by the Borrowers in
that notice), the Borrowers shall repay that Lender's participation in the Loan
together with all interest and other amounts accrued under the Finance
Documents.

7.5       Mandatory
prepayment on sale or Total Loss   If a Vessel is sold or becomes a Total
Loss, the Borrowers shall prepay the Loan in an amount equal to the Mandatory
Prepayment Amount, in the case of sale, on the date falling the earlier of (a) such
sale and (b) the receipt of the proceeds of such sale, and in the case of a Total
Loss, on the earlier of the date falling 180 days after any such Total
Loss and the date on which the proceeds of any such Total Loss are realised,. Any prepayment under this Clause shall 

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satisfy the obligations under Clause 6.1 (Repayment of
Loan) and the proceeds shall be applied on a pro rata basis between the two
Tranches and on a pro rata basis against the remaining Repayment Instalments
and Balloon for each Tranche. 

For the purpose of this clause:- 

"Mandatory Prepayment Amount" an amount being
the greater of:

(a)       any additional amount required to
ensure that the VTL Coverage (as defined in clause 0 (Additional
Security)) is fully complied with following such prepayment; and

(b)       any additional amount required to
ensure that the Relevant Percentage immediately following such sale or Total
Loss remains at least equal to the Relevant Percentage applicable immediately
prior to any such sale or Total Loss. 

"Relevant Percentage" means, at any
relevant time, the percentage of the aggregate of the Market Value of the
Vessels and the value of any additional security (such value to be determined
in accordance with Clause 0 (VTL
Coverage)) against the Loan outstanding and the amount certified by the
Swap Provider to be the amount which would be payable by the Borrowers to the
Swap Provider under the Master Agreement if an Early Termination Date were to
occur at that time.

7.6       Right of cancellation in relation
to a Defaulting Lender   If any Lender becomes a Defaulting Lender, the
Borrowers may, at any time while the Lender continues to be a Defaulting
Lender, give the Agent 30 Business Days' notice of cancellation of the
Commitment of that Lender.  On that notice becoming effective, the Commitment
of the Defaulting Lender shall immediately be reduced to zero.  The Agent shall
as soon as practicable after receipt of that notice notify all the Lenders.  

7.7       Mandatory
Prepayment - Change of Control

If
there is a Change of Control, then:

(i)        the Borrowers shall promptly notify
the Agent upon becoming aware of that event; and

(ii)        subject to:

(A)   any Lender so requiring (such a Lender, an
"Outgoing Lender"); and

(B)   the Agent giving no less than 60 Business
Days' notice to the Borrowers, 

the Commitment of that Outgoing Lender will be immediately
cancelled and, subject to Clause 7.8.2 below, the Borrowers shall repay
immediately that Outgoing Lender's participation in each Tranche.

For the purpose of this Agreement "Change
of Control" occurs if the Original Guarantor: 

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(a)       ceases to
hold directly or indirectly the legal ownership of l00% of                  the
issued share capital of any Borrower; or

(b)       loses the power (whether by way of
ownership of shares, proxy, contract,        agency or otherwise) to directly
or indirectly cast, or control the casting  of, 100% of the votes that might be
cast at a general meeting of any   Borrower; or

           (c)       loses
effective control of any Borrower.

7.8       Restrictions 

7.8.1    Any
notice of prepayment or cancellation given under this Clause 0
shall be irrevocable and, unless a contrary indication appears in this
Agreement, shall specify the date or dates upon which the relevant prepayment
or cancellation is to be made and the amount of that prepayment or
cancellation.

7.8.2    Any
prepayment under this Agreement shall be made together with accrued interest on
the amount prepaid and, subject to any Break Costs, without premium or penalty.

7.8.3    The
Borrowers shall not repay, prepay or cancel all or any part of the Loan except
at the times and in the manner expressly provided for in this Agreement.

7.8.4    No
amount of the Total Commitments cancelled under this Agreement may be
subsequently reinstated.

7.8.5    The
Borrowers may not reborrow any part of the Loan which is prepaid.

7.8.6    If
the Agent receives a notice under this Clause 0 it
shall promptly forward a copy of that notice to the Borrowers or the affected
Lender, as appropriate.

7.9       Unwinding of Transactions

On
or prior to any repayment or prepayment of the Loan under this Agreement, the Borrowers
shall, on a joint and several basis, wholly or partially reverse, offset,
unwind or otherwise terminate one or more of the continuing Transactions so
that the notional principal amount of the continuing Transactions thereafter
remaining does not and will not in the future (taking into account the scheduled
amortisation) exceed the amount of the Loan as reducing from time to time
thereafter pursuant to this.

 

 

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Section 5            Costs of Utilisation

8            Interest

8.1       Calculation of interest   The
rate of interest on the Loan for each Interest Period is the percentage rate
per annum which is the aggregate of the applicable:

8.1.1    Margin; and

8.1.2    LIBOR; and

8.1.3    Mandatory Cost, if any

8.2       Payment of interest   The
Borrowers shall pay accrued interest on the Loan on the last day of each
Interest Period (and, if the Interest Period is longer than three Months, on
the dates falling at intervals of three Months after the first day of the
Interest Period).

8.3       Default interest   If a
Borrower or a Guarantor  fails to pay any amount payable by it under
a Finance Document on its due date, interest shall accrue on the overdue amount
from the due date up to the date of actual payment (both before and after
judgment) at a rate which is two per cent per annum higher than the rate which
would have been payable if the overdue amount had, during the period of non-payment,
constituted the Loan in the currency of the overdue amount for successive
Interest Periods, each of a duration selected by the Agent (acting
reasonably).  Any interest accruing under this Clause 0
shall be immediately payable by the Borrowers or any Guarantor  on
demand by the Agent.

Default
interest (if unpaid) arising on an overdue amount will be compounded with the overdue
amount at the end of each Interest Period applicable to that overdue amount but
will remain immediately due and payable.

8.4       Notification of rates of interest  
The Agent shall promptly notify the Borrowers of the determination of a rate of
interest under this Agreement.

9            Interest
Periods

9.1       Selection of Interest Periods  
The Borrowers may select in a written notice to the Agent the duration of an
Interest Period for the Loan subject as follows:

9.1.1    each notice is irrevocable and must be delivered
to the Agent by the Borrowers not later than 11.00 a.m. on the Quotation Day;

9.1.2    if the Borrowers fail to give a notice in accordance
with Clause 0,
the relevant Interest Period will, subject to Clauses 9.2 (Interest Periods
to meet Repayment Dates) and 0 (Non-Business
Days), be three Months;  

9.1.3    subject to this Clause 0,
the Borrowers may select an Interest Period of three, six or nine Months or any
other period agreed between the Borrowers and the Agent (acting on the
instructions of all the Lenders);

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9.1.4    an Interest
Period shall not extend beyond the Termination Date; and

9.1.5    each Interest Period shall start on the Utilisation
Date and end on the date which numerically corresponds to the Utilisation Date
or the last day of the preceding Interest Period in the relevant Month.

9.2       Interest Periods to meet Repayment
Dates   If an Interest Period will expire after the next Repayment Date,
there shall be a separate Interest Period for a part of the Loan equal to the
Repayment Instalment due on that next Repayment Date and that separate Interest
Period shall expire on that next Repayment Date.

9.3       Non-Business Days   If an
Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period will instead end on the next Business Day in that calendar month
(if there is one) or the preceding Business Day (if there is not).

10          Changes to the Calculation of Interest

10.1      Calculation
of Reference Bank Rate

10.1.1   Subject
to Clause 0 (Market
disruption), if LIBOR is to be determined by reference to a Reference Bank
Rate but a Reference Bank does not supply a quotation by 11.00 am on the
Quotation Day, the Reference Bank Rate shall be calculated on the basis of the
quotations of the remaining Reference Banks.

10.1.2   If at or about noon on the Quotation Day for the
relevant Interest Period LIBOR is to be determined by reference to the
Reference Bank Rate and none or only one of the Reference Banks supplies a rate
to the Agent to determine LIBOR for dollars, Clause 0 (Cost
of funds) shall apply to the Loan for the relevant Interest Period.

10.2      Market disruption   If before
close of business in London on the Quotation Day for the relevant Interest
Period, the Agent receives notifications from a Lender or Lenders (whose
participations in the Loan exceed 30% of the Loan) that the cost to it of
funding its participation in the Loan from whatever source it may reasonably
select would be in excess of LIBOR then Clause 0 (Cost
of funds) shall apply to the Loan for the relevant Interest Period.  

10.3      Cost of
funds

10.3.1   If this Clause 0
applies for any Interest Period, then the rate of interest on each Lender's
share of the Loan for that Interest Period shall be the percentage rate per
annum which is the sum of:

(a)       the
Margin; and

(b)       the
rate notified to the Agent by that Lender as soon as practicable, and in any
event by close of business on the date falling three Business Days after the
Quotation Day (or, if earlier, on the date falling three Business Days prior to
the date on which interest is due to be paid in respect of 

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that
Interest Period), to be that which expresses as a percentage rate per annum the
cost to that Lender of funding its participation in the Loan from whatever
source it may reasonably select.

10.3.2   If this Clause 0
applies and the Agent or the Borrowers so require, the Agent and the Borrowers
shall enter into negotiations (for a period of not more than thirty days) with
a view to agreeing a substitute basis for determining the rate of interest.

10.3.3   Any
alternative basis agreed pursuant to Clause 0
shall, with the prior consent of all the Lenders and the Borrowers, be binding
on all Parties.

10.3.4   If
an alternative basis is not agreed pursuant to Clause 0,
the rate of interest shall continue to be determined in accordance with Clause 0.

10.4      Break Costs   The Borrowers
shall, within three Business Days of demand by a Finance Party, pay to that
Finance Party its Break Costs attributable to all or any part of the Loan or
Unpaid Sum being paid by the Borrowers on a day other than the last day of an
Interest Period for the Loan or Unpaid Sum.

Each
Lender shall, as soon as reasonably practicable after a demand by the Agent,
provide a certificate confirming the amount of its Break Costs for any Interest
Period in which they accrue.

11          Fees

11.1      Arrangement fee   The Borrowers
shall pay to the Agent an arrangement fee in the amount and at the times agreed
in the Fee Letter.

11.2      Agency
fee   If any bank, financial institution, trust, fund or other entity other
than the Original Lenders becomes a Party to this Agreement as a Lender, then the
Borrowers shall pay to the Agent (for its own account) an agency fee payable in
the amount and at the times to be agreed by the Agent and the Borrowers.

 

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Section 6            Additional Payment Obligations

12          Tax Gross Up and
Indemnities  

12.1      Definitions    In this
Agreement:

"Borrower
DTTP Filing" means an HM Revenue & Customs' Form DTTP2 duly
completed and filed by the relevant Borrower, which:

(a)       where it relates to a Treaty Lender that is an
Original Lender, contains the scheme reference number and jurisdiction of tax
residence stated opposite that Lender's name in 0 (The
Parties) and is filed with HM Revenue & Customs within 30 days of the
date of this Agreement; or

(b)       where it relates to a Treaty Lender that is not
an Original Lender, contains the scheme reference number and jurisdiction of
tax residence stated in respect of that Lender in the documentation which it
executes on becoming a Party as a Lender and is filed with HM Revenue &
Customs within 30 days of the relevant Transfer Date.

"Protected
Party" means a Finance Party which is or will be subject to any
liability or required to make any payment for or on account of Tax in relation
to a sum received or receivable (or any sum deemed for the purposes of Tax to
be received or receivable) under a Finance Document.

"Qualifying
Lender" means a Lender which is beneficially entitled to interest
payable to that Lender in respect of an advance under a Finance Document and is:

(a)       a Lender which is a bank (as defined for the
purpose of section 879 of the ITA) making an advance under a Finance
Document and is within the charge to United Kingdom corporation tax as respects
any payments of interest made in respect of that advance or would be within
such charge as respects such payments apart from section
18A of the CTA; or in respect of an
advance made under a Finance Document by a person that was a bank (as defined
for the purpose of section 879 of the ITA) at the time that that advance was
made and within the charge to United Kingdom corporation tax as respects any
payments of interest made in respect of that advance; or

(b)       a Lender which is:

(i)        a company resident in the United Kingdom for
United Kingdom tax purposes;

(ii)        a partnership each member of which is:

(A)       a company so resident in the United Kingdom;
or

(B)       a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account in computing
its 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 37 

 

chargeable profits (within the meaning of section 19 of the
CTA) the whole of any share of interest payable in respect of that advance that
falls to it by reason of Part 17 of the CTA; or

(iii)       a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account interest payable in respect of that
advance in computing the chargeable profits (within the meaning of section 19 of the
CTA) of that company; or

(c)       a Treaty Lender.

"Tax
Confirmation" means a confirmation by a Lender that the person
beneficially entitled to interest payable to that Lender in respect of an
advance under a Finance Document is either:

(a)       a company resident in the United Kingdom for
United Kingdom tax purposes;  

(b)       a partnership each member of which is:

(i)        a company so resident in the United Kingdom; or

(ii)        a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account in computing its chargeable profits
(within the meaning of section 19 of the CTA) the whole of any share of interest
payable in respect of that advance that falls to it by reason of Part 17 of the
CTA; or

(c)       a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account interest payable in respect of that
advance in computing the chargeable profits (within the meaning of section 19 of the
CTA) of that company.

"Tax
Credit" means a credit against, relief or remission for, or repayment
of any Tax.

"Tax
Deduction" means a deduction or withholding for or on account of Tax
from a payment under a Finance Document, other than a FATCA Deduction. 

"Tax
Payment" means either the increase in a payment made by an Obligor to
a Finance Party under Clause 0 (Tax
gross-up) or a payment under Clause 0 (Tax
indemnity). 

"Treaty
Lender" means a Lender which:

(a)       is treated as a resident of a Treaty State for
the purposes of the Treaty;  

(b)       does not carry on a business in the United
Kingdom through a permanent establishment with which that Lender's
participation in the Loan is effectively connected.

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"Treaty State" means a
jurisdiction having a double taxation agreement (a "Treaty")
with the United Kingdom which makes provision for full exemption from tax
imposed by the United Kingdom on interest.

"UK
Non-Bank Lender" means a Lender which is not an Original Lender and
which gives a Tax Confirmation in the documentation which it executes on
becoming a Party as a Lender.

Unless
a contrary indication appears, in this Clause 0 a
reference to "determines" or "determined" means a
determination made in the absolute discretion of the person making the
determination.

12.2      Tax
gross-up

12.2.1   Each
Borrower and each Guarantor shall (and shall procure that each other Obligor
will) make all payments to be made by it without any Tax Deduction, unless a
Tax Deduction is required by law.

12.2.2   The Borrowers shall promptly upon becoming aware
that an Obligor must make a Tax Deduction (or that there is any change in the
rate or the basis of a Tax Deduction) notify the Agent accordingly.  Similarly,
a Lender shall notify the Agent on becoming so aware in respect of a payment
payable to that Lender.  If the Agent receives such notification from a Lender
it shall notify the Borrowers and that Obligor.

12.2.3   (If a Tax Deduction is required by law to be made
by an Obligor, the amount of the payment due from that Obligor shall be
increased to an amount which (after making any Tax Deduction) leaves an amount
equal to the payment which would have been due if no Tax Deduction had been
required.

12.2.4   A payment shall not be increased under Clause 0 by
reason of a Tax Deduction on account of Tax imposed
by the United Kingdom, if on the date on which the payment falls due: 

(a)       the payment could have been made to the relevant
Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but
on that date that Lender is not or has ceased to be a Qualifying Lender other
than as a result of any change after the date it became a Lender under this
Agreement in (or in the interpretation, administration, or application of) any
law or Treaty or any published practice or published concession of any relevant
taxing authority; or

(b)       the relevant Lender is a Qualifying Lender solely
by virtue of 0 of
the definition of Qualifying Lender and:

(i)        an officer of H.M. Revenue & Customs has
given (and not revoked) a direction (a "Direction") under section 931 of the
ITA which relates to the payment and that Lender has received 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 39 

 

from the Obligor making the payment a certified copy of
that Direction; and

(ii)        the payment could have been made to the Lender
without any Tax Deduction if that Direction had not been made; or

(c)        the relevant Lender is a Qualifying Lender
solely by virtue of 0 of
the definition of Qualifying Lender and:

(i)        the relevant Lender has not given a Tax
Confirmation to the Borrowers; and

(ii)        the payment could have been made to the Lender
without any Tax Deduction if the Lender had given a Tax Confirmation to the
Borrowers, on the basis that the Tax Confirmation would have enabled the
Borrowers to have formed a reasonable belief that the payment was an
"excepted payment" for the purpose of section 930 of the
ITA; or

(d)       the relevant Lender is a Treaty Lender and the Obligor
making the payment is able to demonstrate that the payment could have been made
to that Lender without the Tax Deduction had that Lender complied with its
obligations under Clause 0 or
Clause 0
(as applicable).

12.2.5   If an Obligor is required to make a Tax Deduction,
the Borrowers and each Guarantor shall (and shall procure that such other Obligor
will) make that Tax Deduction and any payment required in connection with that
Tax Deduction within the time allowed and in the minimum amount required by law.

12.2.6   Within 30 days of making either a Tax Deduction or
any payment required in connection with that Tax Deduction, the Borrower or
Guarantor making that Tax Deduction shall (and shall procure that such other Obligor
will) deliver to the Agent for the Finance Party entitled to the payment a
statement under section 975 of the ITA or other evidence reasonably
satisfactory to that Finance Party that the Tax Deduction has been made or (as
applicable) any appropriate payment paid to the relevant taxing authority.

12.2.7   (a)       Subject
to 0, a
Treaty Lender and each Obligor which makes a payment to which that Treaty
Lender is entitled shall co-operate in completing any procedural formalities
necessary for that Obligor to obtain authorisation to make that payment without
a Tax Deduction.

(b)       (i)        A
Treaty Lender which is an Original Lender and that holds a passport under the
HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this
Agreement, shall confirm its scheme reference number and its jurisdiction of
tax residence opposite its name in 0 (The
Parties); and

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 40 

 

(ii)        a Treaty
Lender which is not an Original Lender and that holds a passport under the HMRC
DT Treaty Passport scheme, and which wishes that scheme to apply to this
Agreement, shall confirm its scheme reference number and its jurisdiction of
tax residence in the documentation which it executes on becoming a Party as a
Lender,

and,
having done so, that Lender shall be under no obligation pursuant to 0.

12.2.8   If a Lender has confirmed its scheme reference
number and its jurisdiction of tax residence in accordance with Clause 0
and:

(a)       a Borrower making a payment to that Lender has
not made a Borrower DTTP Filing in respect of that Lender; or

(b)       a Borrower making a payment to that Lender has
made a Borrower DTTP Filing in respect of that Lender but:

(i)        that Borrower DTTP Filing has been rejected by
HM Revenue & Customs; or

(ii)        HM Revenue & Customs has not given that
Borrower authority to make payments to that Lender without a Tax Deduction
within 60 days of the date of the Borrower DTTP Filing,

and
in each case, that Borrower has notified that Lender in writing, that Lender
and that Borrower shall co-operate in completing any additional procedural
formalities necessary for that Borrower to obtain authorisation to make that
payment without a Tax Deduction.

12.2.9   If a Lender has not confirmed its scheme reference
number and jurisdiction of tax residence in accordance with Clause 0, no
Borrower or Guarantor shall make a Borrower DTTP Filing or file any other form
relating to the HMRC DT Treaty Passport scheme in respect of that Lender's
Commitment(s) or its participation in the Loan unless the Lender otherwise
agrees.

12.2.10 A Borrower shall, promptly on making a Borrower
DTTP Filing, deliver a copy of that Borrower DTTP Filing to the Agent for
delivery to the relevant Lender.

12.2.11 A UK Non-Bank Lender shall promptly notify the
Borrowers and the Agent if there is any change in the position from that set
out in the Tax Confirmation.

12.3      Tax
indemnity

12.3.1   Each Borrower and each Guarantor shall (within
three Business Days of demand by the Agent) pay to a Protected Party an amount
equal to the loss, liability or cost which that Protected Party determines will
be or has been (directly or 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 41 

 

indirectly) suffered for or on account of Tax by
that Protected Party in respect of a Finance Document.

12.3.2   Clause 0
shall not apply:  

(a)       with respect to any Tax assessed on a Finance
Party:

(i)        under the law of the jurisdiction in which that
Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions)
in which that Finance Party is treated as resident for tax purposes; or  

(ii)        under the law of the jurisdiction in which that
Finance Party's Facility Office is located in respect of amounts received or
receivable in that jurisdiction,
 

if
that Tax is imposed on or calculated by reference to the net income received or
receivable (but not any sum deemed to be received or receivable) by that
Finance Party; or

(b)       to the extent a loss, liability or cost:

(i)        is compensated for by an increased payment under
Clause 0 (Tax
gross-up); 

(ii)        would have been compensated for by an increased
payment under Clause 0 (Tax
gross-up) but was not so compensated solely because one of the exclusions
in Clause 0 (Tax
gross-up) applied; or

(iii)       relates to a FATCA Deduction required to be
made by a Party.

12.3.3   A Protected Party making, or intending to make a
claim under Clause 0
shall promptly notify the Agent of the event which will give, or has given,
rise to the claim, following which the Agent shall notify the Borrowers.

12.3.4   A Protected Party shall, on receiving a payment from
a Borrower or a Guarantor under this Clause 0,
notify the Agent.

12.4      Tax Credit   If an Obligor
makes a Tax Payment and the relevant Finance Party determines that:  

12.4.1   a Tax Credit is attributable to an increased
payment of which that Tax Payment forms part, to that Tax Payment or to a Tax
Deduction in consequence of which that Tax Payment was required; and  

12.4.2   that Finance Party has obtained and utilised that
Tax Credit,  

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that Finance Party shall pay an amount to the Obligor
which that Finance Party determines will leave it (after that payment) in the
same after-Tax position as it would have been in had the Tax Payment not been
made by the Obligor.

12.5      Lender status confirmation   Each
Lender which is not an Original Lender shall indicate, in the documentation
which it executes on becoming a Party as a Lender, and for the benefit of the
Agent and without liability to any Obligor, which of the following categories
it falls in:

12.5.1   not a Qualifying Lender;

12.5.2   a Qualifying Lender (other than a Treaty Lender);
or

12.5.3   a Treaty Lender.

If
such a Lender fails to indicate its status in accordance with this Clause 0
then that Lender shall be treated for the purposes of this Agreement (including
by each Obligor) as if it is not a Qualifying Lender until such time as it
notifies the Agent which category applies (and the Agent, upon receipt of such
notification, shall inform the Borrowers).  For the avoidance of doubt, the
documentation which a Lender executes on becoming a Party as a Lender shall not
be invalidated by any failure of a Lender to comply with this Clause 0.

12.6      Stamp taxes   The Borrowers
shall pay and, within three Business Days of demand, indemnify each Finance
Party against any cost, loss or liability that Finance Party incurs in relation
to all stamp duty, registration and other similar Taxes payable in respect of
any Finance Document.

12.7      VAT 

12.7.1   All amounts expressed
to be payable under a Finance Document by any Party or any Obligor to a Finance
Party which (in whole or in part) constitute the consideration for any supply
for VAT purposes are deemed to be exclusive of any VAT which is chargeable on
that supply, and accordingly, subject to Clause 0,
if  VAT is or becomes chargeable on any supply made by any Finance Party to any
Party or any Obligor under a Finance Document and such Finance Party is
required to account to the relevant tax authority for the VAT, that Party or Obligor
must pay to such Finance Party (in addition to and at the same time as paying
any other consideration for such supply) an amount equal to the amount of the
VAT (and such Finance Party must promptly provide an
appropriate VAT invoice to the Borrowers).

12.7.2   If VAT is or
becomes chargeable on any supply made by any Finance
Party (the "Supplier") to any other Finance Party (the "Recipient")
under a Finance Document, and any Party other than the Recipient (the "Relevant Party") is required by the
terms of any Finance Document to pay an amount equal to the consideration for
that supply to the Supplier (rather than being required to reimburse or
indemnify the Recipient in respect of that consideration):

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(a)       (where the
Supplier is the person required to account to the relevant tax authority for
the VAT) the Relevant Party must also pay to the Supplier (at the same time as
paying that amount) an additional amount equal to the amount of the VAT.  The
Recipient must (where this Clause 0
applies) promptly pay to the Relevant Party an amount equal to any credit or
repayment the Recipient receives from the relevant tax authority which the
Recipient reasonably determines relates to the VAT chargeable on that supply;
and

(b)       (where the Recipient is the person required to
account to the relevant tax authority for the VAT) the Relevant Party must promptly,
following demand from the Recipient, pay to the Recipient an amount equal to
the VAT chargeable on that supply but only to the extent that the Recipient
reasonably determines that it is not entitled to credit or repayment from the
relevant tax authority in respect of that VAT.

12.7.3   Where a Finance Document
requires any Party to reimburse or indemnify a Finance Party for any
cost or expense, that Party shall reimburse or indemnify (as the case may be)
such Finance Party for the full amount of such cost or expense, including such
part thereof as represents VAT, save to the extent that such Finance Party
reasonably determines that it is entitled to credit or repayment in respect of
such VAT from the relevant tax authority.

12.7.4   Any reference in this Clause 0 to
any Party shall, at any time when such Party is treated as a member of a group
for VAT purposes, include (where appropriate and unless the context otherwise
requires) a reference to the representative member of such group at such time
(the term "representative member" to have the same meaning as in the
Value Added Tax Act 1994) or any equivalent person in any jurisdiction other
than the United Kingdom.

12.7.5   In relation to any supply made by a Finance Party
to any Party under a Finance Document, if reasonably requested by such Finance
Party, that Party must promptly provide such Finance Party with details of that
Party's VAT registration and such other information as is reasonably requested
in connection with such Finance Party's VAT reporting requirements in relation
to such supply.

12.8      FATCA
information

12.8.1   Subject to Clause 0,
each Party shall, within ten Business Days of a reasonable request by another
Party:

(a)       confirm to that other Party whether it is:

(i)        a FATCA Exempt Party; or

(ii)        not a FATCA Exempt Party;

(b)       supply to
that other Party such forms, documentation and other information relating to
its status under FATCA as that other Party 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
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reasonably requests for the purposes of that
other Party's compliance with FATCA;
and

(c)        supply to that other Party such forms,
documentation and other information relating to its status as that other Party
reasonably requests for the purposes of that other Party's compliance with any
other law, regulation, or exchange of information regime.

12.8.2   If
a Party confirms to another Party pursuant to Clause 0
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.

12.8.3   Clause 0
shall not oblige any Finance Party to do anything, and Clause 0
shall not oblige any other Party to do anything, which would or might in its
reasonable opinion constitute a breach of:

(a)       any law or regulation;

(b)       any fiduciary duty; or

(c)        any duty of confidentiality.

12.8.4   If a Party fails to confirm whether or not it is a
FATCA Exempt Party or to supply forms, documentation or other information
requested in accordance with Clause 0 or
0
(including, for the avoidance of doubt, where Clause 0
applies), then such Party shall be treated for the purposes of the Finance
Documents (and payments under them) as if it is not a FATCA Exempt Party until
such time as the Party in question provides the requested confirmation, forms,
documentation or other information.

12.8.5   If a Borrower is a US Tax Obligor or the Agent
reasonably believes that its obligations under FATCA or any other applicable
law or regulation require it, each Lender shall, within ten Business Days of:

(a)       where a Borrower is a US Tax Obligor and the
relevant Lender is an Original Lender, the date of this Agreement;

(b)       where a Borrower is a US Tax Obligor on a date on
which any other Lender becomes a Party as a Lender, that date; or

(c)        where a Borrower is not a US Tax Obligor, the
date of a request from the Agent,

supply
to the Agent:

(i)        a withholding certificate on Form W-8 or Form
W-9 or any other relevant form; or

 PIRAEUS\3125851.2                                                                                                                                                                               Page
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(ii)        any
withholding statement or other document, authorisation or waiver as the Agent
may require to certify or establish the status of such Lender under FATCA or
that other law or regulation.

12.8.6   The Agent shall provide any withholding
certificate, withholding statement, document, authorisation or waiver it
receives from a Lender pursuant to Clause 0 to
the Borrowers.

12.8.7   If any
withholding certificate, withholding statement, document, authorisation or
waiver provided to the Agent by a Lender pursuant to Clause 0 is
or becomes materially inaccurate or incomplete, that Lender shall promptly
update it and provide such updated withholding certificate, withholding
statement, document, authorisation or waiver to the Agent unless it is unlawful
for the Lender to do so (in which case the Lender shall promptly notify the
Agent).  The Agent shall provide any such updated withholding certificate,
withholding statement, document, authorisation or waiver to the Borrowers.

12.8.8   The Agent may rely on any withholding certificate,
withholding statement, document, authorisation or waiver it receives from a
Lender pursuant to Clause 0 or
0
without further verification.  The Agent shall not be liable for any action
taken by it under or in connection with Clause 0, 0 or 0.

12.9      FATCA
Deduction

12.9.1   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.

12.9.2   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 and, in addition, shall notify the Borrowers and the Agent and the Agent
shall notify the other Finance Parties.

13          Increased Costs

13.1      Increased costs   Subject to
Clause 0 (Exceptions)
the Borrowers shall, within three Business Days of a demand by the Agent, pay
to the Agent for the account of a Finance Party the amount of any Increased
Costs incurred by that Finance Party or any of its Affiliates as a result of
(i) the introduction of or any change in (or in the interpretation,
administration or application of) any law or regulation or (ii) compliance with
any law or regulation made after the date of this Agreement or (iii) the
implementation or application of or compliance with Basel III or CRD IV or any
other law or regulation which implements Basel III or CRD IV (whether such
implementation, application or compliance is by a government, regulator, that
Finance Party or any of that Finance Party's Affiliates).  

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In this Agreement:

(a)       "Basel
III" means:

(i)        the
agreements on capital requirements, a 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;

(ii)        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

(iii)       any
further guidance or standards published by the Basel Committee on Banking Supervision
relating to "Basel III".

(b)       "CRD
IV" means:

(i)        Directive
2013/36/EU of the European Parliament and of the Council of 26 June 2013 on
access to the activity of credit institutions and the prudential supervision of
credit institutions and investment firms, amending Directive 2002/87/EC and
repealing Directives 2006/48/EC and 2006/49/EC, as amended, supplemented or
restated;

(ii)        Regulation
EU No 575/2013 of the European Parliament and of the Council of 26 June 2013 on
prudential requirements for credit institutions and investment firms and
amending Regulation EU No 648/2012, as amended, supplemented or restated; and

(iii)       any
other law or regulation which implements Basel III.

(c)       "Increased
Costs" means:

(i)        a
reduction in the rate of return from the Loan or on a Finance Party's (or its
Affiliate's) overall capital;

(ii)        an
additional or increased cost; or

(iii)       a
reduction of any amount due and payable under any Finance Document,

which
is incurred or suffered by a Finance Party or any of its Affiliates to the
extent that it is attributable to that Finance Party having entered into any
Finance Document or funding or performing its obligations under any Finance
Document.

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13.2      Increased cost claims

13.2.1   A Finance Party intending to make a claim pursuant
to Clause 0 (Increased
costs) shall notify the Agent of the event giving rise to the claim,
following which the Agent shall promptly notify the Borrowers.

13.2.2   Each Finance Party shall, as soon as practicable
after a demand by the Agent, provide a certificate confirming the amount of its
Increased Costs.

13.3      Exceptions    Clause 0 (Increased
costs) does not apply to the extent any Increased Cost is:

13.3.1   attributable to a Tax Deduction required by law to
be made by a Borrower or a Guarantor;

13.3.2   attributable to a FATCA Deduction required to be
made by a Party;

13.3.3   compensated for by Clause 0 (Tax
indemnity)  (or would have been compensated for under Clause 0 but
was not so compensated solely because any of the exclusions in Clause 0
applied);

13.3.4   compensated
for by the payment of the Mandatory Cost;

13.3.5   attributable to the wilful breach by the relevant
Finance Party or its Affiliates of any law or regulation.

In this Clause 0, a
reference to a "Tax Deduction" has the same meaning given to
the term in Clause 0 (Definitions). 

14          Other Indemnities

14.1      Currency indemnity   If any sum
due from a Borrower or a Guarantor  under the Finance Documents (a
"Sum"), or any order, judgment or award given or made in
relation to a Sum, has to be converted from the currency (the "First
Currency") in which that Sum is payable into another currency (the
"Second Currency") for the purpose of:

14.1.1   making or filing a claim or proof against that
Borrower or that Guarantor (as the case may be); or  

14.1.2   obtaining or enforcing an order, judgment or award
in relation to any litigation or arbitration proceedings,

that
Borrower or that Guarantor (as the case may be) as an independent obligation, within
three Business Days of demand, indemnify each Secured Party to whom that Sum is
due against any cost, loss or liability arising out of or as a result of the
conversion including any discrepancy between (a) the rate of exchange used to
convert that Sum from the First Currency into the Second Currency and (b) the
rate or rates of exchange available to that Secured Party at the time of its
receipt of that Sum.

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Each Borrower and each Guarantor  waives
any right it may have in any jurisdiction to pay any amount under the Finance
Documents in a currency or currency unit other than that in which it is
expressed to be payable.

14.2      Other
indemnities

14.2.1   The Borrowers shall, within three Business Days of
demand, indemnify each Secured Party against any cost, loss or liability
incurred by that Secured Party as a result of:

(a)       the
occurrence of any Event of Default;

(b)       a
failure by an Obligor to pay any amount due under a Finance Document on its due
date, including without limitation, any cost, loss or liability arising as a
result of Clause 0 (Sharing
among the Finance Parties); 

(c)        funding,
or making arrangements to fund, its participation in the Loan requested by the
Borrowers in a Utilisation Request but not made by reason of the operation of
any one or more of the provisions of this Agreement (other than by reason of
default or negligence by that Finance Party alone); or

(d)       the
Loan (or part of the Loan) not being prepaid in accordance with a notice of
prepayment given by the Borrowers.

14.2.2   The Borrowers shall promptly indemnify each
Finance Party, each Affiliate of a Finance Party and each officer or employee
of a Finance Party or its Affiliate (each such person for the purposes of this
Clause 0 an
"Indemnified Person") against any cost, loss or liability
incurred by that Indemnified Person pursuant to or in connection with any
litigation, arbitration or administrative proceedings or regulatory enquiry, in
connection with or arising out of the entry into and the transactions
contemplated by the Finance Documents, having the benefit of any Encumbrance
constituted by the Finance Documents or which relates to the condition or
operation of, or any incident occurring in relation to, a Vessel, unless such
cost, loss or liability is caused by the gross negligence or wilful misconduct
of that Indemnified Person.  Any
Affiliate or any officer or employee of a Finance Party or its Affiliate may
rely on this Clause 0
subject to Clause 0 (Third
party rights) and the provisions of the Third Parties Act.

14.2.3   Subject to any limitations set out in Clause 0,
the indemnity in that Clause shall cover any cost, loss or liability incurred
by each Indemnified Person in any jurisdiction:

(a)       arising or asserted under or in connection with
any law relating to safety at sea, the ISM Code, any Environmental Law or any
Sanctions; or

(b)       in connection with any Environmental Claim.

14.3      Indemnity to the Agent   The
Borrowers shall promptly indemnify the Agent against:

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14.3.1   any cost,
loss or liability incurred by the Agent (acting reasonably) as a result of:

(a)       investigating any event which it reasonably
believes is a Default; or

(b)       acting or relying on any notice, request or
instruction which it reasonably believes to be genuine, correct and
appropriately authorised; or

(c)        instructing lawyers, accountants, tax advisers,
surveyors or other professional advisers or experts as permitted under this
Agreement; and

14.3.2   any cost, loss or liability (including, without
limitation, for negligence or any other category of liability whatsoever)
incurred by the Agent (otherwise than by reason of the Agent's gross negligence
or wilful misconduct) (or, in the case of any cost, loss or liability pursuant
to Clause 0 (Disruption
to payment systems etc.) notwithstanding the Agent's negligence, gross
negligence or any other category of liability whatsoever but not including any
claim based on the fraud of the Agent) in acting as Agent under the Finance
Documents.

14.4      Indemnity to the Security Agent  
Each Borrower and each Guarantor jointly and severally shall promptly indemnify
the Security Agent and every Receiver and Delegate against any cost, loss or
liability incurred by any of them as a result of:

14.4.1   any failure by the Borrowers to comply with their
obligations under Clause 0 (Costs
and Expenses); 

14.4.2   acting or relying on any notice, request or
instruction which it reasonably believes to be genuine, correct and
appropriately authorised;

14.4.3   the taking, holding, protection or enforcement of
the Security Documents;

14.4.4   the exercise of any of the rights, powers,
discretions, authorities and remedies vested in the Security Agent and each
Receiver and Delegate by the Finance Documents or by law;

14.4.5   any default by any Obligor in the performance of
any of the obligations expressed to be assumed by it in the Finance Documents;
or

14.4.6   acting as Security Agent, Receiver or Delegate
under the Finance Documents or which otherwise relates to any of the Charged
Property (otherwise, in each case, than by reason of the relevant Security
Agent's, Receiver's or Delegate's gross negligence or wilful misconduct).

14.5      Indemnity survival   The
indemnities contained in this Agreement shall survive repayment of the Loan.

15          Mitigation by the Lenders

15.1      Mitigation    Each Finance Party
shall, in consultation with the Borrowers, take all reasonable steps to
mitigate any circumstances which arise and which would result in all or any
part of the Loan ceasing to be available or any amount becoming payable under
or 

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pursuant
to any of Clause 0 (Illegality),
Clause 0 (Tax
Gross Up and Indemnities) or Clause 0 (Increased
Costs) including (but not limited to) transferring its rights and
obligations under the Finance Documents to another Affiliate or Facility
Office.  The above does not in any way limit the obligations of any Obligor
under the Finance Documents.

15.2      Limitation of liability   The
Borrowers shall promptly indemnify each Finance Party for all costs and
expenses reasonably incurred by that Finance Party as a result of steps taken
by it under Clause 0 (Mitigation). 
A Finance Party is not obliged to take any steps under Clause 0 if,
in its opinion (acting reasonably), to do so might be prejudicial to it.

16          Costs and Expenses

16.1      Transaction expenses   The
Borrowers shall promptly on demand pay the Agent, the Security Agent the amount
of all costs and expenses (including legal fees) reasonably incurred by any of
them (and, in the case of the Security Agent, by any Receiver or Delegate) in
connection with:

16.1.1   the negotiation, preparation, printing, execution,
syndication and perfection of this Agreement and any other documents referred
to in this Agreement;

16.1.2   the negotiation, preparation, printing, execution
and perfection of any other Finance Documents executed after the date of this
Agreement;  

16.1.3   any other document which may at any time be
required by a Finance Party to give effect to any Finance Document or which a
Finance Party is entitled to call for or obtain under any Finance Document; and

16.1.4   any discharge, release or reassignment of any of
the Security Documents.

16.2      Amendment costs   If 0 an
Obligor requests an amendment, waiver or consent or 0 an
amendment is required pursuant to Clause 0 (Change
of currency), the Borrowers shall, within three Business Days of demand,
reimburse each of the Agent and the Security Agent for the amount of all costs
and expenses (including legal fees) reasonably incurred by the Agent and the
Security Agent (and, in the case of the Security Agent, by any Receiver or
Delegate) in responding to, evaluating, negotiating or complying with that
request or requirement.

16.3      Agent and Security Agent's
management time and additional remuneration   Any amount payable to the
Agent under Clause 0 (Indemnity
to the Agent) or to the Security Agent under Clause 0 (Indemnity
to the Security Agent) or to either of them under this Clause 0 or
Clause 0 (Lenders'
indemnity to the Agent) shall include the cost of utilising the management
time or other resources of the Agent or the Security Agent (as the case may be)
and will be calculated on the basis of such reasonable daily or hourly rates as
the Agent or the Security Agent may notify to the Borrowers and the Lenders,
and is in addition to any other fee paid or payable to the Agent or the
Security Agent.

16.4      Enforcement and preservation costs  
The Borrowers shall, within three Business Days of demand, pay to each Finance
Party and each other Secured Party the amount of all costs and expenses
(including legal fees) incurred by that Finance Party in connection with 

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the enforcement of,
or the preservation of any rights under, any Finance Document and any
proceedings instituted by or against the Security Agent as a consequence of
taking or holding the Security Documents or enforcing those rights including
(without limitation) any losses, costs and expenses which that Finance Party or
other Secured Party may from time to time sustain, incur or become liable for
by reason of that Finance Party or other Secured Party being mortgagee of a
Vessel and/or a lender to a Borrower, or by reason of that Finance Party or
other Secured Party being deemed by any court or authority to be an operator or
controller, or in any way concerned in the operation or control, of a Vessel.   

16.5      Other costs   The Borrowers
shall, within three Business Days of demand, pay to each Finance Party and each
other Secured Party the amount of all sums which that Finance Party or other
Secured Party may pay or become actually or contingently liable for on account
of a Borrower in connection with a Vessel (whether alone or jointly or jointly
and severally with any other person) including (without limitation) all sums
which that Finance Party or other Secured Party may pay or guarantees which it
may give in respect of the Insurances, any expenses incurred by that Finance
Party or other Secured Party in connection with the maintenance or repair of a
Vessel or in discharging any lien, bond or other claim relating in any way to a
Vessel, and any sums which that Finance Party or other Secured Party may pay or
guarantees which it may give to procure the release of a Vessel from arrest or
detention.

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Section 7            Accounts and Application of Earnings

17          Accounts

17.1      Accounts 

17.1.1   The
Borrowers shall maintain the Earnings Accounts with the Account Holder for the
duration of the Facility Period free of Encumbrances and rights of set off
other than those created by or under the Finance Documents.

17.1.2   No
Borrower shall open any bank account with any bank or financial institution
other than the Account Holder.

17.2      Earnings    The Borrowers shall
procure that all Earnings, any and all proceeds of a sale of a Vessel and any
Requisition Compensation are credited to the Earnings Account.

17.3      Application of Earnings Accounts  
The Borrowers shall transfer or cause to be transferred from the Earnings
Accounts to the Agent for the account of the Lenders:

17.3.1   on each Repayment Date, the amount of the
Repayment Instalment then due for the relevant Tranche; and

17.3.2   on each Interest Payment Date, the amount of
interest then due for the
relevant Tranche,

and
the Borrowers irrevocably authorise the Security Agent to instruct the Account
Holder to make those transfers if the Borrowers fail to do so.

17.4      Borrowers' obligations not affected  
If for any reason the amount standing to the credit of the Earnings Accounts is
insufficient to pay any Repayment Instalment or to make any payment of interest
when due, the Borrowers' obligation to pay that Repayment Instalment or to make
that payment of interest shall not be affected.

17.5      Withdrawals    

17.5.1   During
the Facility Period, no sum may be withdrawn from the Earning Accounts without
the prior written consent of the Security Agent (other than in accordance with
this Clause 17), and any amounts standing to the credit of each Earnings
Account shall be applied as follows:

(a)       firstly,
for transfers to the Agent made in accordance with Clause        0 (Application
of Earnings Accounts); 

(b)       secondly
against any amount or costs due and payable pursuant to a Finance Document; and

any amount remaining to the credit of the
Earnings Accounts following the making of any transfer listed in paragraphs (a)
to (b),  shall (unless an Event of Default has occurred is continuing) be
released to the Borrowers.

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17.5.2   The Accounts shall not be overdrawn as
a result of a withdrawal made in accordance with this Clause 0.

17.6      Relocation of Accounts   On and
at any time after the occurrence of a Default which is continuing, the Security
Agent may without the consent of the Borrowers instruct the Account Holder to
relocate either or any of the Earnings Accounts to any other branch of the
Account Holder, without prejudice to the continued application of this Clause 0 and
the rights of the Finance Parties under the Finance Documents.

17.7      Access to information   The
Security Agent (and its nominees) may from time to time during the Facility
Period review the records held by the Account Holder (whether in written or
electronic form) in relation to the Earnings Accounts, and the Borrowers
irrevocably waive any right of confidentiality which may exist in relation to
those records.

17.8      Statements    Without prejudice
to the rights of the Security Agent under Clause 0 (Access
to information), the Borrowers shall procure that the Account Holder
provides to the Security Agent, no less frequently than each calendar month
during the Facility Period, statements of account (in written or electronic
form) showing all entries made to the credit and debit of each of the Earnings
Accounts during the immediately preceding calendar month.

17.9      Application after acceleration  
From and after the giving of notice to the Borrowers by the Agent under Clause 0 (Acceleration),
the Borrowers shall procure that all sums from time to time standing to the
credit of any of the Earnings Accounts are immediately transferred to the
Security Agent or any Receiver or Delegate for application in accordance with
Clause 0 (Application of Proceeds) and the Borrowers
irrevocably authorise the Security Agent to instruct the Account Holder to make
those transfers.

18          Additional Security

18.1      VTL Coverage

18.1.1   If at any time throughout the Facility Period the
aggregate of the Market Value of the Vessels and the value of any additional
security (such value to be the face amount of the deposit (in the case of
cash), determined conclusively by appropriate advisers appointed by the Agent
(in the case of other charged assets), and determined by the Agent (in all
other cases)) for the time being provided to the Security Agent under this
Clause 0 is
less than 125% of the aggregate of (i) the  amount of the Loan then
outstanding and (ii) the amount certified by the Swap Provider to be the amount
which would be payable by the Borrowers to the Swap Provider under the Master
Agreement if an Early Termination Date were to occur at that time  (the
"VTL Coverage"), the Borrowers shall, within 30 days of the
Agent's request, at the Borrowers' option:

(a)       pay to the Security Agent or to its nominee a
cash deposit in the amount of the shortfall to be secured in favour of the
Security Agent as additional security for the payment of the Indebtedness; or  

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(b)       give to
the Security Agent an additional security in amount and form acceptable to the
Security Agent for a value determined in accordance with the first part of this
Clause 0;
or

(c)        prepay the Loan in the amount equal to the
shortfall.  

18.1.2   Clauses 0 (Reborrowing),
 0 (Voluntary
prepayment of Loan) and 0 (Restrictions)
shall apply, mutatis mutandis, to any prepayment made under this Clause 0.

18.1.3   If,
at any time after the Borrowers have provided additional security in accordance
with the Agent's request under this Clause 0,
the Agent shall determine when testing compliance with the VTL Coverage that
all or any part of that additional security may be released without resulting
in a shortfall in the VTL Coverage, then, provided that no Default is
continuing, the Security Agent shall effect a release of all or any part of
that additional security in accordance with the Agent's instructions, but this
shall be without prejudice to the Agent's right to make a further request under
this Clause 0
should the value of the remaining security subsequently merit it.

18.2      Provision
of valuations

18.2.1   The
Borrowers shall provide the Agent with two sets of valuations each in evidence
of the Market Value of the Vessels for the purpose of Clause 0 (VTL
Coverage) twice per calendar year throughout the Facility Period.

18.2.2   Additionally, the Agent shall at the request of
the Lenders be entitled to obtain one set of valuations in evidence of the
Market Value of a Vessel for the purpose of Clause 0 (VTL
Coverage) at any time and such valuation obtained shall be at the expense
of the Lenders except where the Borrowers are by means of such valuation shown
to be in breach of that Clause.

18.2.3   The
Agent may at any time after a Default has occurred and is continuing or following
the occurrence of an event described in Clause 7.5 (Mandatory prepayment of
sale or Total Loss) or during the continuation of an Event of Default obtain
two sets of valuations in evidence of the Market Value of a Vessel or any other
vessel over which additional security has been created in accordance with
Clause 0 (VTL
Coverage). 

18.2.4   All
valuations referred to in this Clause 0,
except where specified in Clause 0,
and all valuations to be obtained pursuant to Clause 0 (Conditions
of Utilisation) shall be obtained at the cost and expense of the Borrowers
and the Borrowers shall within three Business Days of demand by the Agent pay
to the Agent the amount of all such costs and expenses.

19          Guarantee and
Indemnity

19.1      Guarantee and indemnity   Each
Guarantor irrevocably and unconditionally jointly and severally:

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19.1.1   guarantees
to each Finance Party punctual performance by each other Obligor of all that Obligor's
obligations under the Finance Documents;

19.1.2   undertakes with each Finance Party that whenever
another Obligor does not pay any amount when due under or in connection with
any Finance Document, that Guarantor shall immediately on demand pay that
amount as if it was the principal obligor; and

19.1.3   agrees with each Finance Party that if any
obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it
will, as an independent and primary obligation, indemnify that Finance Party
immediately on demand against any cost, loss or liability it incurs as a result
of an Obligor not paying any amount which would, but for such unenforceability,
invalidity or illegality, have been payable by it under any Finance Document on
the date when it would have been due.  The amount payable by a Guarantor under
this indemnity will not exceed the amount it would have had to pay under this
Clause 0 if
the amount claimed had been recoverable on the basis of a guarantee.

19.2      Continuing Guarantee   This
guarantee is a continuing guarantee and will extend to the ultimate balance of
sums payable by any Obligor under the Finance Documents, regardless of any
intermediate payment or discharge in whole or in part.

19.3      Reinstatement    If any
discharge, release or arrangement (whether in respect of the obligations of any
Obligor or any security for those obligations or otherwise) is made by a Finance
Party in whole or in part on the basis of any payment, security or other
disposition which is avoided or must be restored in insolvency, liquidation,
administration or otherwise, without limitation, then the liability of each
Guarantor under this Clause 0
will continue or be reinstated as if the discharge, release or arrangement had
not occurred.

19.4      Waiver of defences   The
obligations of each Guarantor under this Clause 0
will not be affected by an act, omission, matter or thing which, but for this
Clause 0,
would reduce, release or prejudice any of its obligations under this Clause 0
(without limitation and whether or not known to it or any Finance Party)
including:

19.4.1   any time, waiver or consent granted to, or
composition with, any Obligor or other person;

19.4.2   the release of any other Obligor or any other
person under the terms of any composition or arrangement with any creditor of
any Obligor or any other member of the Group;

19.4.3   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, any Obligor 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;

19.4.4   any incapacity or lack of power, authority or
legal personality of or dissolution or change in the members or status of an
Obligor or any other person;

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19.4.5   any
amendment, novation, supplement, extension restatement (however 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 increase in any facility or the addition of any new
facility under any Finance Document or other document or security;

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

19.4.7   any insolvency or similar proceedings.

19.5      Guarantor intent   Without
prejudice to the generality of Clause 0 (Waiver
of defences), each Guarantor expressly confirms that it intends that this
guarantee shall extend from time to time to any (however fundamental)
variation, increase, extension or addition of or to any of the Finance
Documents and/or any facility or amount made available under any of the Finance
Documents for the purposes of or in connection with any of the following: 
business acquisitions of any nature; increasing working capital; enabling
investor distributions to be made; carrying out restructurings; refinancing
existing facilities; refinancing any other indebtedness; making facilities
available to new borrowers; any other variation or extension of the purposes
for which any such facility or amount might be made available from time to
time; and any fees, costs and/or expenses associated with any of the foregoing.

19.6      Immediate recourse   Each
Guarantor waives any right it may have of first requiring any Finance Party (or
any trustee or agent on its behalf) to proceed against or enforce any other
rights or security or claim payment from any person before claiming from that
Guarantor under this Clause 0. 
This waiver applies irrespective of any law or any provision of a Finance
Document to the contrary.

19.7      Appropriations    Until all
amounts which may be or become payable by the Obligors under or in connection
with the Finance Documents have been irrevocably paid in full, each Finance
Party (or any trustee or agent on its behalf) may:

19.7.1   refrain from applying or enforcing any other
moneys, security or rights held or received by that Finance Party (or any
trustee or agent on its behalf) in respect of those amounts, or apply and
enforce the same in such manner and order as it sees fit (whether against those
amounts or otherwise) and no Guarantor shall be entitled to the benefit of the
same; and

19.7.2   hold in an interest-bearing suspense account any
moneys received from any Guarantor or on account of any Guarantor's liability
under this Clause 0.

19.8      Deferral of Guarantors' rights  
Until all amounts which may be or become payable by the Obligors under or in
connection with the Finance Documents have been irrevocably paid in full and
unless the Agent otherwise directs, no Guarantor shall exercise any rights
which it may have by reason of performance by it of its obligations under the
Finance 

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Documents or by reason of any amount being payable, or liability arising,
under this Clause 0:

19.8.1   to be indemnified by an Obligor;

19.8.2   to claim any contribution from any other guarantor
of any Obligor's obligations under the Finance Documents;

19.8.3   to take the benefit (in whole or in part and
whether by way of subrogation or otherwise) of any rights of the Finance
Parties under the Finance Documents or of any other guarantee or security taken
pursuant to, or in connection with, the Finance Documents by any Finance Party;

19.8.4   to bring legal or other proceedings for an order
requiring any Obligor to make any payment, or perform any obligation, in
respect of which any Guarantor has given a guarantee, undertaking or indemnity
under Clause 0 (Guarantee
and indemnity); 

19.8.5   to exercise any right of set-off against any Obligor;
and/or

19.8.6   to claim or prove as a creditor of any Obligor in
competition with any Finance Party.

If
a Guarantor receives any benefit, payment or distribution in relation to such
rights it shall hold that benefit, payment or distribution to the extent
necessary to enable all amounts which may be or become payable to the Finance
Parties by the Obligors under or in connection with the Finance Documents to be
repaid in full on trust for the Finance Parties and shall promptly pay or
transfer the same to the Agent or as the Agent may direct for application in
accordance with Clause 0 (Payment
mechanics). 

19.9      Additional security   This
guarantee is in addition to and is not in any way prejudiced by any other
guarantee or security now or subsequently held by any Finance Party.

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Section 8            Representations, Undertakings and Events of Default

20          Representations

20.1      Representations    Each Borrower
and each Guarantor  makes the representations and warranties set out
in this Clause 0 to
each Finance Party.

20.1.1   Status    Each of the Obligors:

(a)       is a limited liability corporation, duly
incorporated and validly existing under the law of its Original Jurisdiction;
and

(b)       has the power to own its assets and carry on its
business as it is being conducted.

20.1.2   Binding obligations   Subject to the Legal
Reservations:

(a)       the obligations expressed to be assumed by each
of the Obligors in each of the Relevant Documents to which it is a party are
legal, valid, binding and enforceable obligations; and

(b)       (without limiting the generality of Clause 0)
each Security Document to which it is a party creates the security interests
which that Security Document purports to create and those security interests
are valid and effective.

20.1.3   Non-conflict with other obligations   The
entry into and performance by each of the Obligors of, and the transactions
contemplated by, the Relevant Documents do not and will not conflict with:  

(a)       any law or regulation applicable to such Obligor;

(b)       the constitutional documents of such Obligor; or

(c)        any agreement or instrument binding upon such Obligor
or any of such Obligor's assets or constitute a default or termination event
(however described) under any such agreement or instrument.

20.1.4   Power and
authority

(a)       Each of the Obligors has the power to enter into,
perform and deliver, and has taken all necessary action to authorise its entry
into, performance and delivery of, the Relevant Documents to which it is or
will be a party and the transactions contemplated by those Relevant Documents.

(b)       No limit on the powers of any Obligor will be
exceeded as a result of the borrowing, grant of security or giving of
guarantees or indemnities contemplated by the Relevant Documents to which it is
a party.

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20.1.5   Validity
and admissibility in evidence   All Authorisations required or desirable:

(a)       to enable each of the Obligors lawfully to enter
into, exercise its rights and comply with its obligations in the Relevant
Documents to which it is a party or to enable each Finance Party to enforce and
exercise all its rights under the Relevant Documents; and

(b)       to make the Relevant Documents to which any Obligor
is a party admissible in evidence in its Relevant Jurisdictions,

have
been obtained or effected and are in full force and effect, with the exception
only of the registrations referred to in Part II of 0 (Conditions
Subsequent). 

20.1.6   Governing
law and enforcement

(a)       The choice of governing law of any Finance
Document will be recognised and enforced in the Relevant Jurisdictions of each
relevant Obligor.

(b)       Any judgment obtained in relation to any Finance
Document in the jurisdiction of the governing law of that Finance Document will
be recognised and enforced in the Relevant Jurisdictions of each relevant Obligor.

20.1.7   Insolvency    No corporate action, legal
proceeding or other procedure or step described in Clause 0 (Insolvency
proceedings) or creditors' process described in Clause 0 (Creditors'
process) has been taken or, to the knowledge of any Borrower or any
Guarantor, threatened in relation to an Obligor; and none of the circumstances
described in Clause 0 (Insolvency)
applies to an Obligor.

20.1.8   No filing
or stamp taxes   Under the laws of the Relevant Jurisdictions of each
relevant Obligor it is not necessary that the Finance Documents be filed,
recorded or enrolled with any court or other authority in any of those
jurisdictions or that any stamp, registration, notarial or similar Taxes or
fees be paid on or in relation to the Finance Documents or the transactions
contemplated by the Finance Documents except registration of each Mortgage at the Ships
Registry where title to the relevant Vessel is registered in the ownership of
the relevant Borrower and payment of associated fees, which registrations, filings, taxes and fees will be made
and paid promptly after the date of the relevant Finance Document.

20.1.9   Deduction of Tax   None of the Obligors is
required under the law of its jurisdiction of incorporation to make any
deduction for or on account of Tax from any payment it may make under any
Finance Document to a Lender which is:

(a)       a Qualifying Lender falling within 0 of
the definition of Qualifying Lender; or, except where a Direction has been
given under section 931 of the ITA in relation to the payment
concerned, a Qualifying Lender falling within 0 of
the definition of Qualifying Lender; or

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(b)       a Treaty
Lender and the payment is one specified in a direction given by the
Commissioners of Revenue & Customs under Regulation 2 of the Double
Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

20.1.10 No default

(a)       No Default and, on the date of this Agreement and
the Utilisation Date, no Default is continuing or is reasonably likely to
result from the advance of any Tranche or the entry into, the performance of,
or any transaction contemplated by, any of the Relevant Documents.

(b)       No other event or circumstance is outstanding
which constitutes (or, with the expiry of a grace period, the giving of notice,
the making of any determination or any combination of any of the foregoing,
would constitute) a default or termination event (however described) under any other
agreement or instrument which is binding on any of the Obligors or to which its
assets are subject which has or is reasonably likely to have a Material Adverse
Effect.

20.1.11 No misleading information   Save as disclosed in writing to the Agent
prior to the date of this Agreement:

(a)       all material information provided to a Finance
Party by or on behalf of any of the Obligors on or before the date of this
Agreement and not superseded before that date is accurate and not misleading in
any material respect and all projections provided to any Finance Party on or
before the date of this Agreement have been prepared in good faith on the basis
of assumptions which were reasonable at the time at which they were prepared
and supplied; and

(b)       all other written information provided by any of
the Obligors (including its advisers) to a Finance Party was true, complete and
accurate in all material respects as at the date it was provided and is not
misleading in any respect.

20.1.12 Financial
statements

(a)       The Original Financial Statements were prepared
in accordance with GAAP consistently applied.  

(b)       The unaudited Original Financial Statements
fairly represent the Group's financial condition and results of operations for
the relevant semester.  

(c)        The audited Original Financial Statements fairly
represent the Group's financial condition and results of operations during the
relevant financial year.

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(d)       There has
been no material adverse change in the assets, business or consolidated financial
condition of the Group since the date of the Original Financial Statements.

(e)       The Group's most recent financial statements
delivered pursuant to Clause 0 (Financial
statements): 

(i)        have been prepared in accordance with GAAP as
applied to the Original Financial Statements; and

(ii)        fairly represent its consolidated financial
condition as at the end of, and its consolidated results of operations for, the
period to which they relate.

(f)        Since the date of the most recent financial
statements delivered pursuant to Clause 0
(Financial statements) there has been no material adverse change in
the assets, business or financial condition of any of the Obligors or any other
member of the Group.

20.1.13 No proceedings

(a)       No
litigation, arbitration or administrative proceedings or investigation of or
before any court, arbitral body or agency which, if adversely determined, are
reasonably likely to have a Material Adverse Effect have (to the best of its
knowledge and belief (having made due and careful enquiry)) been started or
threatened against any of the Obligors.

(b)       No
judgment or order of a court, arbitral body or agency which is reasonably
likely to have a Material Adverse Effect has (to the best of its knowledge and
belief (having made due and careful enquiry)) been made against any of the Obligors.

20.1.14 No breach of laws   None of the Obligors has
breached any law or regulation which breach has or is reasonably likely to have
a Material Adverse Effect.

20.1.15 Environmental
laws

(a)       Each of the Obligors and each other member of the
Group is in compliance with Clause 0 (Environmental
compliance) and to the best of its knowledge and belief (having made due
and careful enquiry) no circumstances have occurred which would prevent such
compliance in a manner or to an extent which has or is reasonably likely to
have a Material Adverse Effect.

(b)       No Environmental Claim has been commenced or (to
the best of its knowledge and belief (having made due and careful enquiry)) is
threatened against any of the Obligors or any other member of the Group where
that claim has or is reasonably likely, if determined against 

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that Obligor or
other member of the Group, to have a Material Adverse Effect.

20.1.16 Taxation 

(a)       None of the Obligors is materially overdue in the
filing of any Tax returns or is overdue in the payment of any amount in respect
of Tax.

(b)       No claims or investigations are being, or are
reasonably likely to be, made or conducted against any of the Obligors with
respect to Taxes.

(c)        Each of the Obligors is resident for Tax
purposes only in its Original Jurisdiction.

20.1.17 Anti-corruption law   Each of the Obligors and
each other member of the Group and each Affiliate of any of them has conducted
its businesses in compliance with applicable anti-corruption laws and has
instituted and maintained policies and procedures designed to promote and
achieve compliance with such laws.

20.1.18 No
Encumbrance or Financial Indebtedness

(a)       No Encumbrance or Quasi-Security exists over all
or any of the present or future assets of any of the Obligors other than as
permitted by the Finance Documents.

(b)       None of the Obligors has any Financial
Indebtedness outstanding other than as permitted by this Agreement.

20.1.19 Pari passu ranking   The payment obligations
of each of the Obligors under the Finance Documents to which it is a party rank
at least pari passu with the claims of all its other unsecured and
unsubordinated creditors, except for obligations mandatorily preferred by law
applying to companies generally.

20.1.20 No adverse
consequences

(a)       It is not necessary under the laws of the
Relevant Jurisdictions of any of the Obligors:

(i)        in order to enable any Finance Party to enforce
its rights under any Finance Document; or

(ii)        by reason of the execution of any Finance
Document or the performance by it of its obligations under any Finance
Document,

that
any Finance Party should be licensed, qualified or otherwise entitled to carry
on business in any of the Relevant Jurisdictions of any of the Obligors.

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(b)       No Finance
Party is or will be deemed to be resident, domiciled or carrying on business in
any of the Relevant Jurisdictions of any of the Obligors by reason only of the
execution, performance and/or enforcement of any Finance Document.

20.1.21 Disclosure of material facts   No Borrower
is aware of any material facts or circumstances which have not been disclosed
to the Agent and which might, if disclosed, have changed the decision of a
person willing to make loan facilities of the nature contemplated by this
Agreement available to the Borrowers.

20.1.22 Completeness of Relevant Documents   The
copies of any Relevant Documents provided or to be provided by the Borrowers to
the Agent in accordance with Clause 0 (Conditions
of Utilisation) are, or will be, true and accurate copies of the originals
and represent, or will represent, the full agreement between the parties to
those Relevant Documents in relation to the subject matter of those Relevant
Documents and there are no commissions, rebates, premiums or other payments due
or to become due in connection with the subject matter of those Relevant
Documents other than in the ordinary course of business or as disclosed to, and
approved in writing by, the Agent.

20.1.23 No immunity   No Obligor or any of its
assets is immune to any legal action or proceeding.

20.1.24 Money laundering   Any borrowing by a
Borrower under this Agreement, and the performance of its obligations under
this Agreement and under the other Finance Documents, will be for its own
account and will not involve any breach by it of any law or regulatory measure
relating to "money laundering" as defined in Article 1 of the
Directive ((EU) 2015/849) of the European Parliament and of the Council of the
European Communities.

20.1.25 Sanctions 

(a)       None of the Obligors, any other member of the
Group or any Affiliate of any of them is a Restricted Party or is owned or
controlled by, or acting directly or indirectly on behalf of or for the benefit
of, a Restricted Party and none of such persons owns or controls a Restricted
Party.

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

(c)        Each of the Obligors, each other member of the
Group and each Affiliate of any of them is in compliance with all Sanctions.

20.1.26 Ownership
and control of Borrowers   Each Borrower is a wholly owned direct or
indirect subsidiary of the Original Guarantor and is controlled by the Original
Guarantor.

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20.1.27 Ranking Any Encumbrance created
or expressed to be created in favour of the Security Agent pursuant to the
Security Documents has or will have the ranking in priority which it is
expressed to have in the Security Documents and it is not subject to any prior
ranking or pari passu ranking of an Encumbrance.

20.1.28 Ownership
of assets With effect on and from the date of its creation or intended
creation, each Obligor will be the sole legal and beneficial owner of any asset
that is the subject of any Security Document created or intended to be created.

20.1.29 Centre
of main interests and establishments For the purposes of The Council of the
European Union Regulation No. 1346/2000 on Insolvency Proceedings (the
"Regulation"), each Obligor's centre of main interest (as that term
is used in Article 3(1) of the Regulation) is situated in its Original
Jurisdiction and it has no "establishment" (as that term is used in
Article 2(h) of the Regulation) in any other jurisdiction.

20.2      Repetition    Each Repeating
Representation is deemed to be made by each Borrower and each Guarantor  by
reference to the facts and circumstances then existing on the date of this
Agreement, the date of the Utilisation Request, on the Utilisation Date, on the
first day of each Interest Period and, in the case of those contained in
Clauses 0
and 0 (Financial
statements) and for so long as any amount is outstanding under the Finance
Documents or any Commitment is in force.

21          Information Undertakings

The
undertakings in this Clause 0
remain in force for the duration of the Facility Period.  

21.1      Financial statements  The
Original Guarantor shall supply to the Agent in sufficient copies for all of
the Lenders:

21.1.1   as soon as the same become available, but in any
event within 180 days after the end of each of its financial years its audited
consolidated financial statements for that financial year; 

21.1.2   as soon as the same become available, but in any
event within 120 days after the end of each half year during each of its  financial
years, the unaudited semi-annual financial statements for that half year.

21.2      Compliance
Certificate

21.2.1   The Original Guarantor shall
supply to the Agent, with each set of its annual financial statements delivered
pursuant to Clause 0 (Financial statements) and
each set of its semi-annual financial statements delivered pursuant to Clause 0 (Financial statements), a Compliance Certificate setting out (in detail) computations as to
compliance with Clause 0  (Financial
Covenants) and Clause 0 (VTL
Coverage) as at the date as at which those
financial statements were drawn up and any sets of valuations of the Vessels required
to calculate the Market Value in order to test compliance with Clause 0  (Financial
Covenants) and Clause 0 (VTL
Coverage).  

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21.2.2   Each
Compliance Certificate shall be signed by two
authorised signatories or the chief financial officer of the Original
Guarantor.

21.3      Requirements
as to financial statements

Each
set of financial statements delivered pursuant to Clause 0 (Financial statements): 

21.3.1   shall be certified by a director of the Original
Guarantor as fairly representing its financial condition and operations as at
the date as at which those financial statements were drawn up; 

21.3.2   shall be prepared using
GAAP, accounting practices and financial reference periods consistent with
those applied in the preparation of the Original Financial Statements unless,
in relation to any set of financial statements, it notifies the Agent that
there has been a change in GAAP, the accounting practices or reference periods
and its auditors deliver to the Agent:

(a)       a description of any
change necessary for those financial statements to reflect the GAAP, accounting
practices and reference periods upon which the Original Financial Statements
were prepared; and

(b)       sufficient information,
in form and substance as may be reasonably required by the Agent, to enable the
Agent to determine whether Clause 0  (Financial
Covenants) has been complied with and make an
accurate comparison between the financial position indicated in those financial
statements and the Original Financial Statements.

Any reference in this Agreement to those financial statements
shall be construed as a reference to those financial statements as adjusted to
reflect the basis upon which the Original Financial Statements were prepared.

21.4      Information: miscellaneous   Each
Borrower shall supply to the Agent (in sufficient copies for all the Lenders,
if the Agent so requests):

21.4.1   at the same time as they are dispatched, copies of
all documents dispatched by that Borrower to its shareholders generally (or any
class of them) or dispatched by that Borrower or any other Obligor to its
creditors generally (or any class of them);

21.4.2   promptly upon becoming aware of them, the details
of any litigation, arbitration or administrative proceedings which are current,
threatened or pending against any Obligor and which, if adversely determined,
are reasonably likely to have a Material Adverse Effect;

21.4.3   promptly
upon becoming aware of them, the details of any judgment or order of a court, arbitral
body or agency which is made against any Obligor and which is reasonably likely
to have a Material Adverse Effect;

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21.4.4   promptly,
such information and documents as the Security Agent may reasonably require
about the Charged Property and compliance of the Obligors with the terms of any
Security Documents (including without limitation cash flow analyses and details
of the operating costs of any Vessel); and

21.4.5   promptly on request, such further information
regarding the financial condition, assets and operations of any Obligor or any
other member of the Group (including any requested amplification or explanation
of any item in the financial statements, budgets or other material provided by
any Obligor under this Agreement, any changes to management of the Group and an
up to date copy of its shareholders' register (or equivalent in its Original
Jurisdiction)) as any Finance Party through the Agent may reasonably request.

21.5      Notification
of default

21.5.1   Each Borrower and each Guarantor  shall
notify the Agent of any Default (including, without limitation, any breach of
Clause 0 (Financial Covenants)) (and the steps,
if any, being taken to remedy it) promptly upon becoming aware of its
occurrence.

21.5.2   Promptly upon a request by the Agent, each
Borrower shall supply to the Agent a certificate signed by two of its directors
or senior officers on its behalf certifying that no Default is continuing (or
if a Default is continuing, specifying the Default and the steps, if any, being
taken to remedy it).

21.5.3   promptly upon becoming aware of any Change in Ultimate
Beneficial Owner, the name of the Ultimate Beneficial Owner and such
documentation and other evidence as is reasonably requested by the Agent, the
Security Agent or any Lender in order for the Agent, the Security Agent or such
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 in relation to the Ultimate Beneficial Owner. 

 

21.6      "Know
your customer" checks

21.6.1   If:

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

(b)       any change in the status of an Obligor (or of a
Holding Company of an Obligor) or the composition of the shareholders of an
Obligor (or of a Holding Company of an Obligor) after the date of this
Agreement; or

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

(d)       any
anti-money laundering or anti-terrorism financing laws and  regulations
applicable to the Agent or any Lender,

obliges the Agent or any Lender (or, in the case
of Clause 0,
any prospective new Lender) to comply with "know your customer" or
similar identification procedures in circumstances where the necessary
information is not already available to it, each Borrower shall promptly upon
the request of the Agent or any Lender supply, or procure the supply of, such
documentation and other evidence as is reasonably requested by the Agent (for
itself or on behalf of any Lender) or any Lender (for itself or, in the case of
the event described in Clause 0,
on behalf of any prospective new Lender) in order for the Agent, such Lender
or, in the case of the event described in Clause 0,
any prospective new Lender to carry out and be satisfied it has complied with
all necessary "know your customer" or other similar checks under all
applicable laws and regulations pursuant to the transactions contemplated in
the Finance Documents.

21.6.2   Each Lender shall promptly upon the request of the
Agent supply, or procure the supply of, such documentation and other evidence
as is reasonably requested by the Agent (for itself) in order for the Agent 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.

21.6.3   The Borrowers shall, by not less than ten Business
Days' prior written notice to the Agent, notify the Agent (which shall promptly
notify the Lenders) of the intention to request that any other member of the Group
becomes an Additional Guarantor pursuant to Clause 0  (Changes
to the Obligors). 

21.6.4   Following the giving of any notice pursuant to
Clause 0,
if the accession of such Additional Guarantor obliges the Agent or any Lender
to comply with "know your customer" or similar identification
procedures in circumstances where the necessary information is not already
available to it, the Borrowers shall promptly upon the request of the Agent or any
Lender supply, or procure the supply of, such documentation and other evidence
as is reasonably requested by the Agent (for itself or on behalf of any Lender)
or any Lender (for itself or on behalf of any prospective new Lender) in order
for the Agent or such Lender or any prospective new Lender to carry out and be
satisfied it has complied with all necessary "know your customer" or
other similar checks under all applicable laws and regulations pursuant to the
accession of such member of the Group to this Agreement as an Additional
Guarantor.

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22          Financial Covenants

22.1      The
Original Guarantor shall maintain throughout the Facility Period a Market Value
Adjusted Net Worth of not less than:-

22.1.1   25% of Market Value Adjusted Total Assets; and

22.1.2   $150,000,000.

The financial covenants contained in this Clause 22 shall
be tested for the first time on 30 June 2020, and thereafter semi-annually on
the basis of the annual financial statements and semi annual financial
statements (as applicable) to be provided under Clause 21.1 (Financial
statements) and shall be confirmed in the relevant Compliance Certificate. 

The expressions used in this Clause shall be construed in
accordance with GAAP, and for the purposes of this Agreement:-

"Fleet
Vessel" means any vessel (including, but not limited to, the Vessels)
from time to time wholly owned by a member of the Group (directly or
indirectly) including chartered-in vessels for which a member of the Group has
a purchase obligation but excluding, for the avoidance of doubt, any
newbuilding vessels not delivered to the relevant member of the Group at the
relevant time, and "Fleet Vessels" means more than one of them). 

"Market
Value Adjusted Net Worth" means the amount by which the Market Value
Adjusted Total Assets exceed the Total Liabilities;

"Market
Value Adjusted Total Assets" means, at any time, Total Assets adjusted
to reflect the difference between the book values of all Fleet Vessels and the
aggregate Market Value of all Fleet Vessels and any vessels from time to time
wholly owned by a member of the Group (directly or indirectly) which are
subject to lease transactions; 

"Total
Assets" means, as at the date of calculation or, as the case may be,
for any accounting period, the aggregate value of all assets of the Group
(including, without limitation, the Vessels) included in the annual or semi-annual
(as the case may be) financial statements provided under Clause 21.1 (Financial
statements) in accordance with GAAP, as at that date or for that period as
shown in the most recent financial statements provided by the Original
Guarantor pursuant to Clause 21.1 (Financial statements); and

"Total
Liabilities" means, as at the date of calculation or, as the case may
be, for any accounting period, the total liabilities of the Group as determined
in conformity with GAAP, as at that date or for that period as shown in the
most recent financial statements provided by the Original Guarantor pursuant to
Clause 21.1 (Financial statements). 

22.2      Each Borrower shall at all times during the
Facility Period maintain the Minimum Liquidity Amount in a bank account with
the Account Holder, in each case free of any Encumbrances other than in favour
of the Security Agent. 

23          General Undertakings

The
undertakings in this Clause 0
remain in force for the duration of the Facility Period.

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23.1      Authorisations    Each Borrower and each
Guarantor shall promptly:

23.1.1   obtain, comply with and do all that is necessary
to maintain in full force and effect; and

23.1.2   supply certified copies to the Agent of,  

any Authorisation required under any law or regulation of a
Relevant Jurisdiction to:

(a)       enable any Obligor to perform its obligations
under the Finance Documents to which it is a party;

(b)       ensure the legality, validity, enforceability or
admissibility in evidence of any Finance Document; and

(c)        enable any Obligor to carry on its business
where failure to do so has or is reasonably likely to have a Material Adverse
Effect.

23.2      Compliance
with laws

23.2.1   Each Borrower and each Guarantor shall comply (and
shall procure that each other Obligor, each other member of the Group and each
Affiliate of any of them will comply), in all respects with all laws to which
it may be subject, if (except as regards Sanctions, to which Clause 0
applies, and anti-corruption laws, to which Clause 0
applies) failure so to comply has or is reasonably likely to have a Material
Adverse Effect.

23.2.2   Each Borrower and each Guarantor shall comply (and
shall procure that each other Obligor, each other member of the Group and each
Affiliate of any of them will comply) in all respects with all Sanctions.

23.3      Environmental
compliance

Each
Borrower and each Guarantor shall:

23.3.1   comply with all Environmental Laws;

23.3.2   obtain, maintain and ensure compliance with all
requisite Environmental Approvals; and

23.3.3   implement procedures to monitor compliance with
and to prevent liability under any Environmental Law,

where
failure to do so has or is reasonably likely to have a Material Adverse Effect.

23.4      Environmental
Claims

Each
Borrower and each Guarantor shall promptly upon becoming aware of the same,
inform the Agent in writing of:

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23.4.1   any Environmental
Claim against any of the Obligors or any other member of the Group which is
current, pending or threatened; and

23.4.2   any facts or circumstances which are reasonably
likely to result in any Environmental Claim being commenced or threatened
against any of the Obligors or any other member of the Group,

where
the claim, if determined against that Obligor or other member of the Group, has
or is reasonably likely to have a Material Adverse Effect.

23.5      Anti-corruption
law

23.5.1   Each Borrower and each Guarantor shall not (and
shall procure that no other Obligor or other member of the Group will) directly
or indirectly use the proceeds of the Loan for any purpose which would breach
the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977
or other similar legislation in other jurisdictions.

23.5.2   Each Borrower and each Guarantor shall (and shall
procure that each other Obligor and each other member of the Group will):

(a)       conduct its businesses in compliance with
applicable anti-corruption laws; and

(b)       maintain policies and procedures designed to
promote and achieve compliance with such laws.

23.6      Taxation 

23.6.1   Each Borrower and each Guarantor shall (and shall
procure that each other Obligor and each other member of the Group will) pay
and discharge all Taxes imposed upon it or its assets within the time period
allowed without incurring penalties unless and only to the extent that:

(a)       such payment is being contested in good faith;

(b)       adequate reserves are being maintained for those
Taxes and the costs required to contest them which have been disclosed in its
latest financial statements delivered to the Agent under Clause 0 (Financial
statements); and

(c)        such payment can be lawfully withheld and
failure to pay those Taxes does not have or is not reasonably likely to have a
Material Adverse Effect.

23.6.2   Neither any Borrower nor any Guarantor may (and no
other Obligor or other member of the Group may) change its residence for Tax
purposes.

23.7      Evidence of good standing  
Each Borrower will from time to time, if applicable and if requested by the
Agent, provide the Agent with evidence in form and substance 

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satisfactory to the
Agent that each Obligor and each corporate shareholder of an Obligor (other
than the Original Guarantor) remains in good standing.

23.8      Pari passu ranking   Each
Borrower and each Guarantor shall ensure that at all times any unsecured and
unsubordinated claims of a Finance Party against it under the Finance Documents
rank at least pari passu with the claims of all its other unsecured and
unsubordinated creditors except those creditors whose claims are mandatorily
preferred by laws of general application to companies.

23.9      Negative
pledge

In
this Clause 0
"Quasi-Security" means an arrangement or transaction described
in Clause 0.

Except
as permitted under Clause 0:

23.9.1   The Borrowers shall not create nor permit to
subsist any Encumbrance over any of its assets.

23.9.2   The Borrowers shall not:

(a)       sell, transfer or otherwise dispose of any of its
assets on terms whereby they are or may be leased to or re-acquired by an
Obligor or any other member of the Group;

(b)       sell, transfer or otherwise dispose of any of its
receivables on recourse terms;

(c)        enter into any arrangement under which money or
the benefit of a bank or other account may be applied, set-off or made subject
to a combination of accounts; or

(d)       enter into any other preferential arrangement
having a similar effect,

in
circumstances where the arrangement or transaction is entered into primarily as
a method of raising Financial Indebtedness or of financing the acquisition of
an asset.

23.9.3   Clauses 0
and 0 do
not apply to any Encumbrance or (as the case may be) Quasi-Security, which is a
Permitted Encumbrance.

23.10    Disposals 

23.10.1 Except as permitted under Clause 0, the
Borrowers shall not enter into a single transaction or a series of transactions
(whether related or not) and whether voluntary or involuntary to sell, lease,
transfer or otherwise dispose of any asset.

23.10.2 Clause 0
does not apply to: (a) any sale, lease, transfer or other disposal which is a
Permitted Disposal and (b) (subject to the provisions of the Security
Documents) any charter of a Vessel with a duration not exceeding 24 months.

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23.11    Arm's length basis

23.11.1 Except as permitted under Clause 0, the
Borrowers shall not enter into any transaction with any person except on arm's
length terms and for full market value.

23.11.2 The following transactions shall not be a breach of
this Clause 0: fees, costs and
expenses payable under the Relevant Documents in the amounts set out in the
Relevant Documents delivered to the Agent under Clause 0 (Utilisation
conditions precedent) or agreed by the Agent.

23.12    Merger    The Borrowers shall not
enter into any amalgamation, demerger, merger, consolidation or corporate
reconstruction.

23.13    Change of business   The Borrowers
shall not make any substantial change to the general nature of its business
from that carried on at the date of this Agreement.

23.14    No other business   No Borrower
shall engage in any business other than the ownership, operation, chartering
and management of the relevant Vessel.

23.15    No
acquisitions   The Borrowers shall not acquire a company or any shares or
securities or a business or undertaking (or, in each case, any interest in any
of them) or incorporate a company.

23.16    No
Joint Ventures   No Borrower shall:

23.16.1 enter
into, invest in or acquire (or agree to acquire) any shares, stocks, securities
or other interest in any Joint Venture; or

23.16.2 transfer
any assets or lend to or guarantee or give an indemnity for or give security
for the obligations of a Joint Venture or maintain the solvency of or provide
working capital to any Joint Venture (or agree to do any of the foregoing).

23.17    No borrowings   No Borrower shall
incur or allow to remain outstanding any Financial Indebtedness (including
without limitation any loans from the Original Guarantor or any other member of
the Group) (except for the Loan), unless:

23.17.1 it
is subordinated to the Loan on terms acceptable to the Agent in its absolute
discretion including in respect of intragroup loans, without limitation
provisions prohibiting repayment if an Event of Default has occurred and is
continuing; and

23.17.2 the
relevant creditor has entered into an assignment or any other Encumbrance in
favour of the Security Agent and on terms acceptable to the Security Agent in
its absolute discretion and has provided to the Agent such constitutional
documents, corporate authorisations and other documents and matters as the
Agent may reasonably require, in form and substance satisfactory to the Agent,
to verify that the person's obligations are legally binding, valid and
enforceable and to satisfy any applicable legal and regulatory requirements. 

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23.18    No
substantial liabilities   Except in the ordinary course of business, no Borrower
shall incur any liability to any third party which is in the Agent's opinion of
a substantial nature.

23.19    No loans or credit   None of the
Borrowers shall be a creditor in respect of any Financial Indebtedness.

23.20    No guarantees or indemnities   None
of the Borrowers shall incur or allow to remain outstanding any guarantee in
respect of any obligation of any person other than guarantees issued in the ordinary course of the
Borrowers' business in connection with operation of the Vessels. 

23.21    No dividends    

23.21.1 If
an Event of Default has occurred or is continuing or would result from any of
the actions referred to under (a) – (e) below, the Borrowers shall not:

(a)       declare, make or pay any dividend, charge, fee or
other distribution (or interest on any unpaid dividend, charge, fee or other
distribution) (whether in cash or in kind) on or in respect of its share
capital (or any class of its share capital);

(b)       repay or distribute any dividend or share premium
reserve;

(c)        pay any management, advisory or other fee to or
to the order of any of the shareholders of the Guarantor;

(d)       redeem, repurchase, defease, retire or repay any
of its share capital or resolve to do so; or

(e)       issue
any new shares in its share capital or resolve to do so.

23.21.2 If
an Event of Default has occurred or is continuing or would result from any of
the actions referred to below in this Clause 23.21.2, the Original Guarantor
shall not declare, make, pay, repay or distribute any dividend (or interest on
any unpaid dividend) (whether in cash or in kind) on or in respect of its share
capital.  

23.22    People
with significant control regime   Each Borrower and each Guarantor  shall
(and shall procure that each other Obligor will):

23.22.1 within
the relevant timeframe, comply with any notice it receives pursuant to Part 21A
of the Companies Act 2006 from any company incorporated in the United Kingdom
whose shares are the subject of any Security Document; and

23.22.2 promptly provide the Security Agent with
a copy of that notice.

23.23    No change in Relevant Documents  
Neither any Borrower nor any Guarantor shall (and the Borrowers shall procure
that no other Obligor will) amend, vary, novate, supplement, supersede, waive
or terminate any term of, any of the Relevant Documents which are not Finance
Documents, or any other document delivered to the Agent pursuant 

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to Clause 0 (Utilisation
Conditions precedent) or Clause 0 (Further
conditions precedent) or Clause 0 (Conditions
subsequent). 

23.24    Further
assurance

23.24.1 Each Borrower and each Guarantor shall (and shall
procure that each other Obligor and each other member of the Group will) promptly
do all such acts or execute all such documents (including assignments,
transfers, mortgages, charges, notices and instructions) as the Security Agent
may reasonably specify (and in such form as the Security Agent may reasonably
require in favour of the Security Agent or its nominee(s)):

(a)       to perfect any Encumbrance created or intended to
be created under or evidenced by the Security Documents (which may include the
execution of a mortgage, charge, assignment or other Encumbrance over all or
any of the assets which are, or are intended to be, the subject of the Security
Documents) or for the exercise of any rights, powers and remedies of the
Security Agent or the Finance Parties provided by or pursuant to the Finance
Documents or by law;

(b)       to confer on the Security Agent or confer on the
Finance Parties an Encumbrance over any property and assets of that Borrower
(or that other Obligor or that other member of the Group as the case may be)
located in any jurisdiction equivalent or similar to the Encumbrance intended
to be conferred by or pursuant to the Security Documents; and/or

(c)        to facilitate the realisation of the assets
which are, or are intended to be, the subject of the Security Documents.

23.24.2 Each Borrower and each Guarantor shall (and shall
procure that each other Obligor and each other member of the Group will) take
all such action as is available to it (including making all filings and
registrations) as may be necessary for the purpose of the creation, perfection,
protection or maintenance of any Encumbrance conferred or intended to be
conferred on the Security Agent or the Finance Parties by or pursuant to the
Finance Documents.

23.25    Inventory of Hazardous Materials
Each Borrower shall ensure that each Vessel owned by it carries an IHM issued
by the relevant approved classification society on the date such IHM becomes
mandatory pursuant to any applicable law or regulation. Each Borrower shall
procure that such IHM is maintained during the Facility period.  

23.26    Recycling  
Each Borrower shall confirm that as long as it is in a lending relationship
with ABN AMRO Bank N.V., it will ensure that any ship controlled by it or sold
to an intermediary with the intention of being scrapped, is recycled at a
recycling yard which conducts its recycling business in a socially and
environmentally responsible manner, in accordance with the provisions of The
Hong Kong International Convention for the Safe and Environmentally Sound
Recycling of Ships, 2009 and/or EU Ship Recycling Regulation.  

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23.27    Sanctions     

23.27.1   Each Obligor shall (and each Borrower
shall procure that each member of the Group will) comply with all Sanctions.

23.27.2   None of the Borrowers or the
Guarantors shall (and the Borrowers shall procure that no Obligor and no member
of the Group will) become a Restricted Party or act on behalf of, or as an
agent of, a Restricted Party, to the extent this would lead to non-compliance
by it or any other Party with any applicable Sanctions.

23.27.3   None of the Borrowers or the
Guarantors shall (and the Borrowers shall procure that no Obligor and no member
of the Group will) use, lend, contribute or otherwise make available the
proceeds of any Loan or other transaction contemplated by this Agreement
directly or indirectly for the purpose of financing any trade, business or
other activities with any Restricted Party, to the extent, in each case, such
use, lending, contributing or otherwise making available the proceeds would
lead to non-compliance by it or any other Party with any applicable Sanctions.

23.27.4   None of the Borrowers or the
Guarantors shall (and the Borrowers shall procure that no Obligor and no member
of the Group will) use any revenue or benefit derived from any activity or
dealing with a Restricted Party in discharging any obligation due or owing to
the Finance Parties to the extent such use would lead to non-compliance by it
or any other Party with any applicable Sanctions.

23.27.5   The Borrowers and the Guarantor shall
(and each Borrower shall procure that each other Obligor or member of the Group
will) procure that no proceeds from any activity or dealing with a Restricted
Party are credited to any bank account held with any Finance Party or any
Affiliate of a Finance Party, to the extent crediting such bank account would
lead to non-compliance by it, any Finance Party or any Affiliate of a Finance
Party with any applicable Sanctions.

23.27.6   None of the Borrowers or the
Guarantors shall (and the Borrowers shall procure that no Obligor and no member
of the Group will) to the extent permitted by law and promptly upon becoming
aware of them, supply to the Agent details of any claim, action, suit,
proceedings or investigation against it with respect to Sanctions by any
Sanctions Authority.

23.28    Ownership
The Borrowers shall procure that there is no change in the ownership of any
Borrower without the prior written consent of the Agent (acting on the
instructions of all the Lenders).  

23.29    No dealings with Master Agreement   No Borrower shall assign, novate or encumber
or in any other way transfer any of its rights or obligations under the Master
Agreement, nor enter into any interest rate exchange or hedging agreement with
anyone other than the Swap Provider.

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23.30    Poseidon Principles  

23.30.1 In
this Clause 0:

"Poseidon
Principles" means the
financial industry framework for assessing and disclosing the climate alignment
of ship finance portfolios published on 18 June 2019 as the same may be amended
or replaced (to reflect changes in applicable law or regulation or the
introduction of, or changes to, mandatory requirements of the International
Maritime Organization) from time to time.

"Relevant
Lender" means a Lender if it has, at any time during the Facility
Period, become a signatory to the Poseidon Principles.

"Statement
of Compliance" means a statement of compliance related to fuel oil
consumption pursuant to regulations 6.6 and 6.7 of Annex VI.

23.30.2 Each
Borrower shall, upon the request of the Relevant Lender and at the cost of the
Borrowers, on or before 31 July in each calendar year, supply or procure the
supply to the Relevant Lender of all information necessary in order for the Relevant
Lender to comply with its obligations under the Poseidon Principles in respect
of the preceding calendar year, including, without limitation, all ship fuel
oil consumption data required to be collected and reported in accordance with
regulation 22A of Annex VI and any Statement of Compliance, in each case
relating to its Vessel for the preceding calendar year, provided that the Relevant
Lender shall not publicly disclose such information with the identity of the
relevant Vessel without the prior written consent of the relevant Borrower and,
for the avoidance of doubt, such information shall be "Confidential
lnformation" for the purposes of Clause 0 (Confidential
Information) but each Borrower acknowledges that, in accordance with the
Poseidon Principles, such information will form part of the information
published regarding the applicable Relevant Lender's portfolio climate
alignment.

24          Events of Default

24.1      Events of Default   Each of the
events or circumstances set out in this Clause 0 is
an Event of Default.

24.1.1   Non-payment    An Obligor does not pay on
the due date any amount payable by it under a Finance Document at the place at
and in the currency in which it is expressed to be payable unless:   

(a)       its failure to pay is caused by:

(i)        administrative or technical error; or

(ii)        a Disruption Event; and

(b)       payment is made within two Business Days of its
due date.

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24.1.2   Other specific obligations

(a)       Any requirement of Clause 21.2 (Compliance
Certificate), Clause 0 (Financial
Covenants) and 23.27 (Sanctions) is not satisfied.

(b)       An Obligor does not comply with any obligation in
a Finance Document relating to the Insurances or with Clauses 3.1 (Purpose),
 0 (No
waiver), 7.5 (Mandatory prepayment on sale or Total Loss), 7.8 (Prepayment
– Change of Control),  0 (Additional
security), 21.1 (Financial statements), 23.21 (No dividends),
 0 (Anti-corruption
law),  0 (Compliance
with laws),  0 (Anti-corruption
law),  0 (Pari
passu ranking). 

24.1.3   Other
obligations

(a)       An Obligor does not comply with any provision of
a Finance Document (other than those referred to in Clause 0 (Non-payment)
and Clause 0 (Other
specific obligations). 

(b)       No Event of Default under this Clause 0
will occur if the failure to comply is capable of remedy and is remedied within
ten Business Days of the earlier of (i) the Agent giving notice to the Borrowers and
(ii) the Borrowers becoming aware of the failure to comply.

24.1.4   Misrepresentation    Any representation or
statement made or deemed to be made by an Obligor in any Finance Document or
any other document delivered by or on behalf of an Obligor under or in
connection with any Finance Document is or proves to have been incorrect or
misleading when made or deemed to be made.

24.1.5   Cross
default

(a)       Any Financial Indebtedness of an Obligor or of
any other member of the Group is not paid when due nor within any originally
applicable grace period.

(b)       Any Financial Indebtedness of an Obligor or of
any other member of the Group is declared to be, or otherwise becomes, due and
payable prior to its specified maturity as a result of an event of default
(however described).

(c)        Any
commitment for any Financial Indebtedness of an Obligor or of any other member
of the Group is cancelled or suspended by a creditor of an Obligor or of any
other member of the Group as a result of an event of default (however
described).

(d)       Any
creditor of an Obligor or of any other member of the Group becomes entitled to
declare any Financial Indebtedness of an Obligor or of any other member of the
Group due and payable prior to its specified maturity as a result of an event
of default (however described).

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(e)       No Event of Default will occur under
this Clause 24.1.5 if the aggregate amount of Financial Indebtedness or
commitment for Financial Indebtedness falling within (a) to (d) is less than
$10,000,000 in aggregate in the case of each Guarantor or each other member of
the Group (other than a Borrower) and (ii) less than $500,000 in aggregate in
the case of a Borrower (or, in each case, its equivalent in any other currency
or currencies).

24.1.6   Insolvency 

(a)       An Obligor or any other member of the Group:

(i)        is
unable or admits inability to pay its debts as they fall due;

(ii)        is
deemed to, or is declared to, be unable to pay its debts under applicable law;

(iii)       suspends
or threatens to suspend making payments on any of its debts; or

(iv)       by
reason of actual or anticipated financial difficulties, commences negotiations
with one or more of its creditors with a view to rescheduling any of its
indebtedness.

(b)       The value of the assets of an Obligor or any
other member of the Group is less than its liabilities (taking into account
contingent and prospective liabilities).

(c)        A moratorium is declared in respect of any
indebtedness of an Obligor or any other member of the Group.  If a moratorium
occurs, the ending of the moratorium will not remedy any Event of Default
caused by that moratorium.

24.1.7   Insolvency proceedings   Any corporate
action, legal proceedings or other procedure or step is taken in relation to:

(a)       the suspension of payments, a moratorium of any
indebtedness, winding-up, dissolution, administration, bankruptcy or
reorganisation (by way of voluntary arrangement, scheme of arrangement or
otherwise) of an Obligor or any other member of the Group;  

(b)       a composition, compromise, assignment or
arrangement with any creditor of an Obligor or any other member of the Group;

(c)        the appointment of a liquidator, receiver, administrative
receiver, administrator, compulsory manager, trustee or other similar officer
in respect of an Obligor or any other member of the Group or any of its assets;
or

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(d)       enforcement
of any Encumbrance over any assets of an Obligor or any other member of the
Group,

or
any analogous procedure or step is taken in any jurisdiction.

This
Clause 0 shall
not apply to (i) any winding-up petition which is frivolous or vexatious and is
discharged, stayed or dismissed within 30 days of commencement or (ii) any
arrest or detention of a Vessel from which that Vessel is released within 60
days from the date of that arrest or detention.

24.1.8   Creditors' process   Any expropriation,
attachment, sequestration, distress or execution (or any analogous process in
any jurisdiction) affects any asset or assets of an Obligor or any other member
of the Group and is not discharged within 30 days.

24.1.9   Unlawfulness
and invalidity

(a)       It is or becomes unlawful for an Obligor to
perform any of its obligations under the Finance Documents or any Encumbrance
created or expressed to be created or evidenced by the Security Documents
ceases to be effective.

(b)       Any obligation or obligations of any Obligor
under any Finance Documents are not (subject to the Legal Reservations) or
cease to be legal, valid, binding or enforceable and the cessation individually
or cumulatively materially and adversely affects the interests of the Lenders
under the Finance Documents.

(c)        Any Finance Document ceases to be in full force
and effect or any Encumbrance created or expressed to be created or evidenced
by the Security Documents ceases to be legal, valid, binding, enforceable or
effective or is alleged by a party to it (other than a Finance Party) to be
ineffective.

24.1.10 Cessation of business   An Obligor or any
other member of the Group ceases, or threatens to cease, to carry on all or a
substantial part of its business except as a result of a Permitted Disposal.

24.1.11 Change in ownership or control of a Borrower There
is any change in the ownership of a Borrower.

24.1.12 Expropriation    The authority or ability of an
Obligor or any other member of the Group to conduct its business is limited or
wholly or substantially curtailed by any seizure, expropriation,
nationalisation, intervention, restriction or other action by or on behalf of
any governmental, regulatory or other authority or other person in relation to an
Obligor or any member of the Group or any of its assets.

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24.1.13 Repudiation and rescission of agreements

(a)       An Obligor rescinds or purports to rescind or
repudiates or purports to repudiate a Finance Document or evidences an
intention to rescind or repudiate a Finance Document.

(b)       Subject to Clause 0,
any party to any of the Relevant Documents that is not a Finance Document
rescinds or purports to rescind or repudiates or purports to repudiate that
Relevant Document in whole or in part where to do so has or is, in the
reasonable opinion of the Majority Lenders, likely to have a material adverse
effect on the interests of the Lenders under the Finance Documents.

(c)        Any of the Management Agreements is terminated,
cancelled or otherwise ceases to remain in full force and effect at any time
prior to its contractual expiry date and is not immediately replaced by a
similar agreement in form and substance satisfactory to the Majority Lenders.

24.1.14 Conditions subsequent   Any of the
conditions referred to in Clause 0 (Conditions
subsequent) is not satisfied within the time reasonably required by the
Agent.

24.1.15 Revocation or modification of Authorisation  
Any Authorisation of any governmental, judicial or other public body or
authority which is now, or which at any time during the Facility Period becomes,
necessary to enable any of the Obligors or any other person (except a Finance
Party) to comply with any of their obligations under any Relevant Document is
not obtained, is revoked, suspended, withdrawn or withheld, or is modified in a
manner which the Agent considers is, or may be, prejudicial to the interests of
any Finance Party, or ceases to remain in full force and effect.

24.1.16 Reduction of capital   A Borrower reduces
its authorised or issued or subscribed capital.

24.1.17 Loss of Vessel   A Vessel suffers a Total
Loss or is otherwise destroyed or abandoned, or a similar event occurs in
relation to any other vessel which may from time to time be mortgaged to the
Security Agent as security for the payment of all or any part of the
Indebtedness, except that a Total Loss (which term shall for the purposes of
the remainder of this Clause 0
include an event similar to a Total Loss in relation to any other vessel) shall
not be an Event of Default if:

(a)       that Vessel
or other vessel is insured in accordance with the Security Documents and a
claim for Total Loss is available under the terms of the relevant insurances;
and

(b)       no insurer
has refused to meet or has disputed the claim for Total Loss and it is not
apparent to the Agent in its discretion that any such refusal or dispute is
likely to occur; and

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(c)        payment of all insurance proceeds in respect of
the Total Loss is made in full to the Security Agent within 180 days of the
occurrence of the casualty giving rise to the Total Loss in question (save
that, in relation to a Total Loss under part (c) of the definition of Total
Loss, an Event of Default shall not occur if payment of all insurance proceeds
in respect of that Total Loss is made in full to the Security Agent within 180
 days after that Total Loss has occurred) or (in each such case) such
longer period as the Agent may in its discretion agree.

24.1.18 Challenge to registration   The registration
of a Vessel or a Mortgage is contested or becomes void or voidable or liable to
cancellation or termination, or the validity or priority of a Mortgage is
contested, and in respect of
the registration of a Vessel only, it is not renewed within 90 days of
termination.

24.1.19 War    The country of registration of a
Vessel or of another Relevant Jurisdiction becomes involved in war (whether or
not declared) or civil war or is occupied by any other power or a seizure of
power takes place by unconstitutional means and the Agent considers that, as a
result, either (a) the security conferred by any of the Security Documents is
materially prejudiced or (b) any
such event is reasonably likely to have a Material Adverse Effect and the
Borrowers do not take the actions required by the Agent in its absolute
discretion to ensure that such event will not have such a Material Adverse
Effect within 14 days from the Agent’s notice to take such actions.

24.1.20 Master Agreement termination   A notice is
given by the Swap Provider under section 6(a) of the
Master Agreement, or by any person under section
6(b)(iv) of the Master Agreement, in
either case designating an Early Termination Date for the purpose of the Master
Agreement, or the Master Agreement is for any other reason terminated,
cancelled, suspended, rescinded, revoked or otherwise ceases to remain in full
force and effect.

24.1.21 Notice of determination   A Guarantor gives
notice to the Security Agent to determine any obligations under the relevant
Guarantee.

24.1.22 Litigation    Any litigation, arbitration or
administrative proceedings or investigations of, or before, any court, arbitral
body or agency are started or threatened, or any judgment or order of a court, arbitral
body or agency is made, in relation to the Relevant Documents or the
transactions contemplated in the Relevant Documents or against an Obligor or
any other member of the Group or its assets which have, or has, or are, or is,
reasonably likely to have a Material Adverse Effect.

24.1.23 Material adverse change   Any event or
circumstance occurs which the Majority Lenders reasonably believe has or is reasonably
likely to have a Material Adverse Effect.

24.1.24 Listing
of Original Guarantor The shares (or any part thereof) of the Original
Guarantor cease to be listed on the New York Stock Exchange or Nasdaq Global 

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Select Market, Nasdaq Global Market, Nasdaq Capital
Market and any successor thereof or any other internationally recognised stock
exchange acceptable to the Agent. 

24.2      Acceleration    On and at any
time after the occurrence of an Event of Default which is continuing the Agent
may, and shall if so directed by the Majority Lenders:

24.2.1   by notice to
the Borrowers:

(a)       cancel
the Total Commitments, at which time they shall immediately be cancelled;

(b)       declare that all or part of the Loan, together
with accrued interest, and all other amounts accrued or outstanding under the
Finance Documents be immediately due and payable, at which time they shall
become immediately due and payable; and/or

(c)        declare that all or part of the Loan be payable
on demand, at which time it shall immediately become payable on demand by the
Agent on the instructions of the Majority Lenders; and/or

24.2.2   exercise or direct the Security Agent to exercise
any or all of its rights, remedies, powers or discretions under the Finance
Documents.

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Section 9            Changes
to Parties

25          Changes to the Lenders

25.1      Assignments and transfers by the
Lenders   Subject to this Clause 0, a
Lender (the "Existing Lender") may:  

25.1.1   assign any of its rights; or

25.1.2   transfer by novation any of its rights and
obligations,

under
any Finance Document to another bank or financial institution or to a trust,
fund or other entity which is regularly engaged in or established for the
purpose of making, purchasing or investing in loans, securities or other financial
assets (the "New Lender"). 

25.2      Conditions
of assignment or transfer

25.2.1   An Existing Lender must obtain the prior written
consent of the Borrowers before it may make an assignment or transfer in
accordance with Clause 0 (Assignments
and transfers by the Lenders) unless the assignment or transfer is:  

(a)       to another Lender or an Affiliate of any Lender;

(b)       to a fund which is a Related Fund of that
Existing Lender; or

(c)        made at a time when an Event of Default is
continuing.

25.2.2   The consent of the Borrowers to an assignment or
transfer must not be unreasonably withheld or delayed.  The Borrowers will be
deemed to have given their consent five Business Days after the Lender has
requested it unless consent is expressly refused by the Borrowers within that
time.

25.2.3   An
assignment will only be effective on:

(a)       receipt by the Agent (whether in the Assignment
Agreement or otherwise) of written confirmation from the New Lender (in form
and substance satisfactory to the Agent) that the New Lender will assume the
same obligations to the other Finance Parties and the other Secured Parties as
it would have been under if it had been an Original Lender; and

(b)       performance by the Agent of all necessary
"know your customer" or other similar checks under all applicable
laws and regulations in relation to such assignment to a New Lender, the
completion of which the Agent shall promptly notify to the Existing Lender and
the New Lender.

25.2.4   A transfer will only be effective if the procedure
set out in Clause 0 (Procedure
for transfer) is complied with.

25.2.5   If:

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(a)       a Lender
assigns or transfers any of its rights or obligations under the Finance
Documents or changes its Facility Office; and

(b)       as a result of circumstances existing at the date
the assignment, transfer or change occurs, a Borrower or a Guarantor would be
obliged to make a payment to the New Lender or Lender acting through its new
Facility Office under Clause 0 (Tax
Gross Up and Indemnities) or Clause 0 (Increased
Costs), 

then
the New Lender or Lender acting through its new Facility Office is only
entitled to receive payment under those Clauses to the same extent as the
Existing Lender or Lender acting through its previous Facility Office would
have been if the assignment, transfer or change had not occurred.  This Clause 0
shall not apply:

(c)        in respect of an assignment or transfer made in
the ordinary course of the primary syndication of the Loan; or

(d)       in relation to Clause 0 (Tax
gross-up), to a Treaty Lender that has included a confirmation of its
scheme reference number and its jurisdiction of tax residence in accordance
with Clause 0 (Tax
gross-up) if the Borrower making the payment has not made a Borrower DTTP
Filing in respect of that Treaty Lender.

25.2.6   Each New Lender, by executing the relevant
Transfer Certificate or Assignment Agreement, confirms, for the avoidance of
doubt, that the Agent has authority to execute on its behalf any amendment or
waiver that has been approved by or on behalf of the requisite Lender or
Lenders in accordance with this Agreement on or prior to the date on which the
transfer or assignment becomes effective in accordance with this Agreement and
that it is bound by that decision to the same extent as the Existing Lender
would have been had it remained a Lender.

25.3      Assignment or transfer fee

25.3.1   Subject to Clause 0,
the New Lender shall, on the date upon which an assignment or transfer takes
effect, pay to the Agent (for its own account) a fee of $3,000.  

25.3.2   No fee is payable pursuant to Clause 0 if:

(a)       the
Agent agrees that no fee is payable; or

(b)       the assignment or transfer is made by
an Existing Lender:

(i)        to an Affiliate of that Existing
Lender;

(ii)        to a fund which is a Related Fund of
that Existing Lender; or

(iii)       in connection with primary
syndication of the Loan.

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25.4      Limitation of responsibility of Existing Lenders

25.4.1   Unless expressly agreed to the contrary, an
Existing Lender makes no representation or warranty and assumes no
responsibility to a New Lender for:

(a)       the legality, validity, effectiveness, adequacy
or enforceability of the Relevant Documents or any other documents;

(b)       the financial condition of any Obligor;

(c)        the performance and observance by any Obligor or
any other member of the Group of its obligations under the Relevant Documents
or any other documents; or

(d)       the accuracy of any statements (whether written
or oral) made in or in connection with any of the Relevant Documents or any
other document,

and
any representations or warranties implied by law are excluded.

25.4.2   Each New Lender confirms to the Existing Lender
and the other Finance Parties that it:  

(a)       has made (and shall continue to make) its own
independent investigation and assessment of the financial condition and affairs
of each Obligor and each other member of the Group and its related entities in
connection with its participation in this Agreement and has not relied
exclusively on any information provided to it by the Existing Lender in
connection with any of the Relevant Documents; and

(b)       will continue to make its own independent
appraisal of the creditworthiness of each Obligor and each other member of the
Group and its related entities while any amount is or may be outstanding under
the Finance Documents or any Commitment is in force.

25.4.3   Nothing in any Finance Document obliges an
Existing Lender to:

(a)       accept a re-transfer or re-assignment from a New
Lender of any of the rights and obligations assigned or transferred under this
Clause 0;
or  

(b)       support any losses directly or indirectly
incurred by the New Lender by reason of the non-performance by any Obligor of
its obligations under the Relevant Documents or otherwise.

25.5      Procedure
for transfer

25.5.1   Subject to the conditions set out in Clause 0 (Conditions
of assignment or transfer) a transfer is effected in accordance with Clause
0
when the Agent executes an otherwise duly completed Transfer Certificate
delivered to it by the Existing Lender and the New Lender.  The Agent shall,
subject to Clause 0,
as soon as reasonably practicable after receipt by it of a duly completed
Transfer 

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Certificate appearing on its face to comply
with the terms of this Agreement and delivered in accordance with the terms of
this Agreement, execute that Transfer Certificate.

25.5.2   The Agent shall only be obliged to execute a
Transfer Certificate delivered to it by the Existing Lender and the New Lender
once it is satisfied it has complied with all necessary "know your
customer" or other similar checks under all applicable laws and
regulations in relation to the transfer to such New Lender.

25.5.3   Subject to Clause 0 (Pro
rata interest settlement), on the Transfer Date:

(a)       to the extent that in the Transfer Certificate
the Existing Lender seeks to transfer by novation its rights and obligations
under the Finance Documents each Borrower and each Guarantor and the Existing
Lender shall be released from further obligations towards one another under the
Finance Documents and their respective rights against one another shall be
cancelled (being the "Discharged Rights and Obligations"); 

(b)       each Borrower and each Guarantor  and
the New Lender shall assume obligations towards one another and/or acquire
rights against one another which differ from the Discharged Rights and
Obligations only insofar as that Borrower and that Guarantor  and the
New Lender have assumed and/or acquired the same in place of that Borrower and
that Guarantor  and the Existing Lender;

(c)        the Agent, the Security Agent, the New Lender
and other Lenders shall acquire the same rights and assume the same obligations
between themselves as they would have acquired and assumed had the New Lender
been an Original Lender with the rights and/or obligations acquired or assumed
by it as a result of the transfer and to that extent the Agent, the Security
Agent and the Existing Lender shall each be released from further obligations to
each other under the Finance Documents; and

(d)       the New Lender shall become a Party as a
"Lender".

25.6      Procedure
for assignment

25.6.1   Subject to the conditions set out in Clause 0 (Conditions
of assignment or transfer) an assignment may be effected in accordance with
Clause 0
when the Agent executes an otherwise duly completed Assignment Agreement
delivered to it by the Existing Lender and the New Lender.  The Agent shall,
subject to Clause 0,
as soon as reasonably practicable after receipt by it of a duly completed
Assignment Agreement appearing on its face to comply with the terms of this
Agreement and delivered in accordance with the terms of this Agreement, execute
that Assignment Agreement.

25.6.2   The Agent shall only be obliged to execute an
Assignment Agreement delivered to it by the Existing Lender and the New Lender
once it is satisfied it has complied 

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with all necessary "know your
customer" or other similar checks under all applicable laws and
regulations in relation to the assignment to such New Lender.

25.6.3   Subject to Clause 0 (Pro
rata interest settlement), on the Transfer Date:

(a)       the Existing Lender will assign absolutely to the
New Lender its rights under the Finance Documents and in respect of any
Encumbrance created or expressed to be created or evidenced by the Security
Documents and expressed to be the subject of the assignment in the Assignment
Agreement;

(b)       the Existing Lender will be released from the
obligations (the "Relevant Obligations") expressed to be the
subject of the release in the Assignment Agreement (and any corresponding
obligations by which it is bound in respect of any Encumbrance created or
expressed to be created or evidenced by the Security Documents); and

(c)        the New Lender shall become a Party as a
"Lender" and will be bound by obligations equivalent to the Relevant
Obligations.

25.6.4   Lenders may utilise procedures other than those
set out in this Clause 0 to
assign their rights under the Finance Documents (but not, without the consent
of the relevant Obligor or unless in accordance with Clause 0 (Procedure
for transfer), to obtain a release by that Obligor from the obligations
owed to that Obligor by the Lenders nor the assumption of equivalent
obligations by a New Lender) provided that they comply with the
conditions set out in Clause 0 (Conditions
of assignment or transfer). 

25.7      Copy of Transfer Certificate or
Assignment Agreement to Borrowers   The Agent shall, as soon as reasonably
practicable after it has executed a Transfer Certificate or an Assignment Agreement,
send to the Borrowers a copy of that Transfer Certificate or Assignment
Agreement.

25.8      Security over Lenders' rights  
In addition to the other rights provided to Lenders under this Clause 0,
each Lender may without consulting with or obtaining consent from any Obligor,
at any time charge, assign or otherwise create Encumbrances in or over (whether
by way of collateral or otherwise) all or any of its rights under any Finance
Document to secure obligations of that Lender including, without limitation:

25.8.1   any charge, assignment or other Encumbrance to
secure obligations to a federal reserve or central bank; and

25.8.2   any charge, assignment or other Encumbrance
granted to any holders (or trustee or representatives of holders) of
obligations owed, or securities issued, by that Lender as security for those
obligations or securities,

except
that no such charge, assignment or Encumbrance shall:

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

(b)       require any payments to be made by an Obligor
other than or in excess of, or grant to any person any more extensive rights
than, those required to be made or granted to the relevant Lender under the
Finance Documents.

25.9      Pro rata
interest settlement

25.9.1   If the Agent has notified the Lenders that it is
able to distribute interest payments on a "pro rata basis" to
Existing Lenders and New Lenders then (in respect of any transfer pursuant to
Clause 0 (Procedure
for transfer) or any assignment pursuant to Clause 0 (Procedure
for assignment) the Transfer Date of which, in each case, is after the date
of such notification and is not on the last day of an Interest Period):

(a)       any interest or fees in respect of the relevant participation
which are expressed to accrue by reference to the lapse of time shall continue
to accrue in favour of the Existing Lender up to but excluding the Transfer
Date ("Accrued Amounts") and shall become due and payable to
the Existing Lender (without further interest accruing on them) on the last day
of the current Interest Period (or, if the Interest Period is longer than six Months,
on the next of the dates which falls at intervals of six Months after the first
day of that Interest Period); and

(b)       the rights assigned or transferred by the
Existing Lender will not include the right to the Accrued Amounts, so that, for
the avoidance of doubt:

(i)        when the Accrued Amounts become payable, those
Accrued Amounts will be payable for the account of the Existing Lender; and

(ii)        the amount payable to the New Lender on that
date will be the amount which would, but for the application of this Clause 0,
have been payable to it on that date, but after deduction of the Accrued
Amounts.

25.9.2   In this Clause 0
references to "Interest Period" shall be construed to include a
reference to any other period for accrual of fees.

25.9.3   An Existing Lender which retains the right to the
Accrued Amounts pursuant to this Clause 0
but which does not have a Commitment shall be deemed not to be a Lender for the
purposes of ascertaining whether the agreement of any specified group of
Lenders has been obtained to approve any request for a consent, waiver,
amendment or other vote of Lenders under the Finance Documents.

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26          Changes to the Obligors

26.1      No assignment or transfer by Obligors  
No Obligor may assign any of its rights or transfer any of its rights or
obligations under the Finance Documents.

26.2      Additional
Guarantors

26.2.1   Subject to compliance with the provisions of
Clauses 0
("Know your customer" checks), the Borrowers may request that
any member of the Group become a Guarantor.

26.2.2   A member of the Group shall become an Additional
Guarantor if:

(a)       the Borrowers and the proposed Additional
Guarantor deliver to the Agent a duly completed and executed Accession Deed;
and

(b)       the Agent has received all of the documents and
other evidence listed in Part I of 0 (Utilisation
Conditions precedent) and, if applicable, Part II of 0 (Conditions
Subsequent) in relation to that Additional Guarantor, each in form and
substance satisfactory to the Agent.

26.2.3   The Agent shall notify the Borrowers and the
Lenders promptly upon being satisfied that it has received (in form and
substance satisfactory to it) all the documents and other evidence listed in
Part I of 0 (Utilisation
Conditions precedent) and, if applicable, Part II of 0 (Conditions
Subsequent). 

26.2.4   Other than to the extent that the Majority Lenders
notify the Agent in writing to the contrary before the Agent gives the
notification described in Clause 0,
the Lenders authorise (but do not require) the Agent to give that
notification.  The Agent shall not be liable for any damages, costs or losses
whatsoever as a result of giving any such notification.

26.3      Resignation
of a Guarantor

26.3.1   The Borrowers may request that a Guarantor ceases
to be a Guarantor by delivering to the Agent a Resignation Letter if all the
Lenders have consented to the resignation of that Guarantor.

26.3.2   The Agent shall accept a Resignation Letter and
notify the Borrowers and the Lenders of its acceptance if:

(a)       the Borrowers have confirmed that no Default is
continuing or would result from the acceptance of the Resignation Letter; and

(b)       no payment is due from any Guarantor under Clause
0 (Guarantee
and Indemnity). 

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26.4      Repetition of Representations

Delivery
of an Accession Deed constitutes confirmation by the relevant member of the
Group that the Repeating Representations are true and correct in relation to it
as at the date of delivery as if made by reference to the facts and
circumstances then existing.

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Section 10          The Finance Parties

27          Role of the Agent, the Security Agent  

27.1      Appointment
of the Agent

27.1.1   Each of the Lenders appoints the Agent to act as
its agent under and in connection with the Finance Documents and each of the
Lenders and the Agent appoints the Security Agent to act as its security agent
for the purpose of the Security Documents.

27.1.2   Each of the Lenders authorises the Agent and each
of the Lenders and the Agent authorises the Security Agent to perform the
duties, obligations and responsibilities and to exercise the rights, powers,
authorities and discretions specifically given to the Agent or the Security
Agent (as the case may be) under or in connection with the Finance Documents
together with any other incidental rights, powers, authorities and discretions.

27.1.3   The Swap Provider appoints the Security Agent to
act as its security agent for the purpose of the Security Documents and
authorises the Security Agent to exercise the rights, powers, authorities and
discretions specifically given to the Security Agent under or in connection
with the Security Documents together with any other incidental rights, powers,
authorities and discretions.

27.1.4   Except in Clause 0 (Replacement
of the Agent) or where the context otherwise requires, references in this
Clause 0 to
the "Agent" shall mean the Agent and the Security Agent
individually and collectively and references in this Clause 0 to
the "Finance Documents" or to any "Finance Document"
shall not include the Master Agreement.

27.2      Instructions 

27.2.1   The Agent shall:

(a)       unless a contrary indication appears in a Finance
Document, exercise or refrain from exercising any right, power, authority or
discretion vested in it as Agent in accordance with any instructions given to
it by:

(i)        all Lenders if the relevant Finance Document
stipulates the matter is an all Lender decision; and

(ii)        in all other cases, the Majority Lenders; and

(b)       not be liable for any act (or omission) if it
acts (or refrains from acting) in accordance with Clause 0.

27.2.2   The Agent shall be entitled to request
instructions, or clarification of any instruction, from the Majority Lenders
(or, if the relevant Finance Document stipulates the matter is a decision for
any other Lender or group of Lenders, from that Lender or group of Lenders) as
to whether, and in what manner, it should 

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exercise or refrain from exercising any right,
power, authority or discretion and the Agent may refrain from acting unless and
until it receives any such instructions or clarification that it has requested.

27.2.3   Save in the case of decisions stipulated to be a
matter for any other Lender or group of Lenders under the relevant Finance
Document and unless a contrary indication appears in a Finance Document, any
instructions given to the Agent by the Majority Lenders shall override any
conflicting instructions given by any other Parties and will be binding on all
Finance Parties.

27.2.4   The Agent may refrain from acting in accordance
with any instructions of any Lender or group of Lenders until it has received
any indemnification and/or security that it may in its discretion require
(which may be greater in extent than that contained in the Finance Documents
and which may include payment in advance) for any cost, loss or liability which
it may incur in complying with those instructions.

27.2.5   In the absence of instructions, the Agent may act
(or refrain from acting) as it considers to be in the best interest of the
Lenders.

27.2.6   The Agent is not authorised to act on behalf of a
Lender (without first obtaining that Lender's consent) in any legal or
arbitration proceedings relating to any Finance Document.  This Clause 0
shall not apply to any legal or arbitration proceeding relating to the
perfection, preservation or protection of rights under the Finance Documents or
the enforcement of the Finance Documents.

27.3      Duties
of the Agent

27.3.1   The Agent's duties under the Finance Documents are
solely mechanical and administrative in nature.

27.3.2   Subject to Clause 0,
the Agent shall promptly forward to a Party the original or a copy of any
document which is delivered to the Agent for that Party by any other Party.

27.3.3   Without prejudice to Clause 0 (Copy
of Transfer Certificate or Assignment Agreement to Borrowers), Clause 0
shall not apply to any Transfer Certificate or any Assignment Agreement.

27.3.4   Except where a Finance Document specifically
provides otherwise, the Agent is not obliged to review or check the adequacy,
accuracy or completeness of any document it forwards to another Party.

27.3.5   If the Agent receives notice from a Party
referring to this Agreement, describing a Default and stating that the
circumstance described is a Default, it shall promptly notify the Finance
Parties.

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27.3.6   If the
Agent is aware of the non-payment of any principal, interest, commitment fee or
other fee payable to a Finance Party (other than the Agent or the Security
Agent) under this Agreement it shall promptly notify the other Finance Parties.

27.3.7   The Agent shall have only those duties,
obligations and responsibilities expressly specified in the Finance Documents
to which it is expressed to be a party (and no others shall be implied).

27.4      No
fiduciary duties

27.4.1   Subject to Clause 0 (Trust)
which relates to the Security Agent only, nothing in any Finance Document
constitutes the Agent as a trustee or fiduciary of any other person.

27.4.2   Neither the Agent shall be bound to account to any
Lender for any sum or the profit element of any sum received by it for its own
account.

27.5      Business with Obligors and the
Group   The Agent may accept deposits from, lend money to and generally
engage in any kind of banking or other business with any Borrower, any other Obligor
or its Affiliate and any other member of the Group.

27.6      Rights
and discretions of the Agent

27.6.1   The Agent may:

(a)       rely on any representation, communication, notice
or document believed by it to be genuine, correct and appropriately authorised;

(b)       assume that:

(i)        any instructions received by it from the
Majority Lenders, any Lenders or any group of Lenders are duly given in
accordance with the terms of the Finance Documents; and

(ii)        unless it has received notice of revocation,
that those instructions have not been revoked; and

(iii)       rely on a certificate from any person:

(A)       as to any matter of fact or
circumstance which might reasonably be expected to be within the knowledge of
that person; or

(B)       to the effect that such person
approves of any particular dealing, transaction, step, action or thing,

as
sufficient evidence that that is the case and, in the case of (A), may assume
the truth and accuracy of that certificate.

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27.6.2   The Agent
may assume (unless it has received notice to the contrary in its capacity as
agent for the Lenders or security agent for the Finance Parties (as the case
may be)) that:

(a)       no Default has occurred (unless it has actual
knowledge of a Default arising under Clause 0 (Events
of Default)); 

(b)       any right, power, authority or discretion vested
in any Party or the Majority Lenders has not been exercised; and

(c)        any notice or request made by the Borrowers
(other than a Utilisation Request) is made on behalf of and with the consent
and knowledge of all the Obligors.

27.6.3   The Agent may engage and pay for the advice or
services of any lawyers, accountants, surveyors or other experts.

27.6.4   Without prejudice to the generality of Clause 0 or
Clause 0,
the Agent may at any time engage and pay for the services of any lawyers to act
as independent counsel to the Agent (and so separate from any lawyers
instructed by the Lenders) if the Agent in its reasonable opinion deems this to
be desirable.

27.6.5   The Agent may rely on the advice or services of
any lawyers, accountants, tax advisers, surveyors or other professional
advisers or experts (whether obtained by the Agent or by any other Party) and
shall not be liable for any damages, costs or losses to any person, any
diminution in value or any liability whatsoever arising as a result of its so
relying.

27.6.6   The Agent may act in relation to the Finance
Documents through its officers, employees and agents and the Agent shall not:

(a)       be liable for any error of judgment made by any
such person; or

(b)       be bound to supervise, or be in any way
responsible for any loss incurred by reason of misconduct, omission or default
on the part, of any such person,

unless
such error or such loss was directly caused by the Agent's gross negligence or
wilful misconduct.

27.6.7   Unless a Finance Document expressly provides
otherwise the Agent may disclose to any other Party any information it
reasonably believes it has received as agent under this Agreement.

27.6.8   Without prejudice to the generality of Clause 0,
the Agent:

(a)       may disclose; and

(b)       on the written request of the Borrowers or the
Majority Lenders shall, as soon as reasonably practicable, disclose,

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the identity of a Defaulting Lender to the
Borrowers and to the other Finance Parties.

27.6.9   Notwithstanding any other provision of any Finance
Document to the contrary, neither the Agent is obliged to do or omit to do
anything if it would or might in its reasonable opinion constitute a breach of
any law or regulation or a breach of a fiduciary duty or duty of
confidentiality.

27.6.10 The Agent is not obliged to disclose to any Finance
Party any details of the rate notified to the Agent by any Lender or the
identity of any such Lender for the purpose of Clause 0 (Market
Disruption). 

27.6.11 Notwithstanding any provision of any Finance
Document to the contrary, the Agent is not obliged to expend or risk its own
funds or otherwise incur any financial liability in the performance of its
duties, obligations or responsibilities or the exercise of any right, power,
authority or discretion if it has grounds for believing the repayment of such funds
or adequate indemnity against, or security for, such risk or liability is not
reasonably assured to it.

27.7      Responsibility for documentation  
The Agent is not responsible or liable for:

27.7.1   the adequacy, accuracy and/or completeness of any
information (whether oral or written) supplied by the Agent, an Obligor or any
other person given in or in connection with any Relevant Document or the
transactions contemplated in the Finance Documents; 

27.7.2   the legality, validity, effectiveness, adequacy or
enforceability of any Relevant Document or any other agreement, arrangement or
document entered into, made or executed in anticipation of or in connection
with any Relevant Document; or

27.7.3   any determination as to whether any information
provided or to be provided to any Finance Party is non-public information the
use of which may be regulated or prohibited by applicable law or regulation
relating to insider dealing or otherwise.

27.8      No duty to monitor   The Agent
shall not be bound to enquire:

27.8.1   whether or not any Default has occurred;

27.8.2   as to the performance, default or any breach by
any Party of its obligations under any Finance Document; or

27.8.3   whether any other event specified in any Finance
Document has occurred.

27.9      Exclusion
of liability

27.9.1   Without limiting Clause 0
(and without prejudice to any other provision of any Finance Document excluding
or limiting the liability of the Agent) the Agent shall not be liable (including,
without limitation, for negligence or any other category of liability
whatsoever) for:

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(a)       any
damages, costs or losses to any person, any diminution in value, or any
liability whatsoever arising as a result of taking or not taking any action
under or in connection with any Finance Document or any Encumbrance created or
expressed to be created or evidenced by the Security Documents, unless directly
caused by its gross negligence or wilful misconduct;

(b)       exercising, or not exercising, any right, power,
authority or discretion given to it by, or in connection with, any Finance
Document, any Encumbrance created or expressed to be created or evidenced by
the Security Documents or any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with, any
Finance Document or any Encumbrance created or expressed to be created or
evidenced by the Security Documents;

(c)        any shortfall which arises on the enforcement or
realisation of the Trust Property; or

(d)       without prejudice to the generality of Clauses 0, 0 and
0,
any damages, costs or losses to any person, any diminution in value or any
liability whatsoever arising as a result of:

(i)        any act, event or circumstance not reasonably
within its control; or

(ii)        the general risks of investment in, or the
holding of assets in, any jurisdiction,

including
(in each case and without limitation) such damages, costs, losses, diminution
in value or liability arising as a result of: nationalisation, expropriation or
other governmental actions; any regulation, currency restriction, devaluation
or fluctuation; market conditions affecting the execution or settlement of
transactions or the value of assets (including any Disruption Event);
breakdown, failure or malfunction of any third party transport, telecommunications,
computer services or systems; natural disasters or acts of God; war, terrorism,
insurrection or revolution; or strikes or industrial action.

27.9.2   No Party (other than the Agent) may take any
proceedings against any officer, employee or agent of the Agent in respect of
any claim it might have against the Agent or in respect of any act or omission
of any kind by that officer, employee or agent in relation to any Relevant
Document and any officer, employee or agent of the Agent may rely on this
Clause subject to Clause 0 (Third
Party Rights) and the provisions of the Third Parties Act.

27.9.3   The Agent will not be liable for any delay (or any
related consequences) in crediting an account with an amount required under the
Finance Documents to be paid by the Agent if the Agent has taken all necessary
steps as soon as 

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reasonably practicable to comply with the regulations or
operating procedures of any recognised clearing or settlement system used by
the Agent for that purpose.

27.9.4   Nothing in this Agreement shall oblige the Agent
to carry out:

(a)       any "know your customer" or other
checks in relation to any person;

(b)       any check on the extent to which any transaction
contemplated by this Agreement might be unlawful for any Lender or for any
Affiliate of any Lender,

on
behalf of any Lender and each Lender confirms to the Agent that it is solely
responsible for any such checks it is required to carry out and that it may not
rely on any statement in relation to such checks made by the Agent.

27.9.5   Without prejudice to any provision of any Finance
Document excluding or limiting the Agent's liability, any liability of the
Agent arising under or in connection with any Finance Document or any
Encumbrance created or expressed to be created or evidenced by the Security
Documents shall be limited to the amount of actual loss which has been finally
judicially determined to have been suffered (as determined by reference to the
date of default of the Agent or, if later, the date on which the loss arises as
a result of such default) but without reference to any special conditions or
circumstances known to the Agent at any time which increase the amount of that
loss.  In no event shall the Agent be liable for any loss of profits, goodwill,
reputation, business opportunity or anticipated saving, or for special,
punitive, indirect or consequential damages, whether or not the Agent has been
advised of the possibility of such loss or damages.

27.10    Lenders'
indemnity to the Agent

27.10.1 Each Lender shall (in proportion to its share of
the Total Commitments or, if the Total Commitments are then zero, to its share
of the Total Commitments immediately prior to their reduction to zero)
indemnify the Agent and every Receiver and Delegate, within three Business Days
of demand, against any cost, loss or liability (including, without limitation,
for negligence or any other category of liability whatsoever) incurred by any
of them (otherwise than by reason of the relevant Agent's, Receiver's or
Delegate's gross negligence or wilful misconduct) (or, in the case of any cost,
loss or liability pursuant to Clause 0 (Disruption
to payment systems etc.)  notwithstanding the Agent's negligence,
gross negligence or any other category of liability whatsoever but not
including any claim based on the fraud of the Agent) in acting as Agent,
Receiver or Delegate under, or exercising any authority conferred under, the
Finance Documents (unless the relevant Agent, Receiver or Delegate has been
reimbursed by an Obligor pursuant to a Finance Document).

27.10.2 Subject to Clause 0,
the Borrowers shall immediately on demand reimburse any Lender for any payment
that Lender makes to the Agent pursuant to Clause 0

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27.10.3 Clause 0
shall not apply to the extent that the indemnity payment in respect of which
the Lender claims reimbursement relates to a liability of the Agent to an
Obligor.

27.11    Trust    The Security Agent
agrees and declares, and each of the other Finance Parties acknowledges, that,
subject to the terms and conditions of this Clause 0,
the Security Agent holds the Trust Property on trust for the Finance Parties
absolutely.  Each of the other Finance Parties agrees that the obligations,
rights and benefits vested in the Security Agent shall be performed and
exercised in accordance with this Clause 0. 
The Security Agent shall have the benefit of all of the provisions of this
Agreement benefiting it in its capacity as security agent for the Finance
Parties, and all the powers and discretions conferred on trustees by the
Trustee Act 1925 (to the extent not inconsistent with this Agreement).  In
addition:

27.11.1 the Security Agent and any Delegate may indemnify
itself or himself out of the Trust Property against all liabilities, costs,
fees, damages, charges, losses and expenses sustained or incurred by it or him
in relation to the taking or holding of any of the Trust Property or in
connection with the exercise or purported exercise of the rights, trusts,
powers and discretions vested in the Security Agent or any Delegate by or
pursuant to the Security Documents or in respect of anything else done or
omitted to be done in any way relating to the Security Documents;

27.11.2 the other Finance Parties acknowledge that the
Security Agent shall be under no obligation to insure any property nor to
require any other person to insure any property and shall not be responsible
for any loss which may be suffered by any person as a result of the lack or
insufficiency of any insurance;

27.11.3 the Finance Parties agree that the perpetuity
period applicable to the trusts declared by this Agreement shall be the period
of 125 years from the date of this Agreement;

27.11.4 the Security Agent shall not be liable for any
failure, omission, or defect in perfecting the security constituted or created
by any Finance Document including, without limitation, any failure to register
the same in accordance with the provisions of any of the documents of title of
any Obligor to any of the assets thereby charged or effect or procure registration
of or otherwise protect the security created by any Security Document under any
registration laws in any jurisdiction and may accept without enquiry such title
as any Obligor may have to any asset;

27.11.5 the Security Agent shall not be under any
obligation to hold any title deed, Finance Document or any other documents in
connection with the Finance Documents or any other documents in connection with
the property charged by any Finance Document or any other such security in its
own possession or to take any steps to protect or preserve the same, and may
permit any Obligor to retain all such title deeds, Finance Documents and other
documents in its possession; and

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27.11.6 save as
otherwise provided in the Finance Documents, all moneys which under the trusts
therein contained are received by the Security Agent may be placed on deposit
in the name of or under the control of the Security Agent at such bank or
institution (including the Security Agent) and upon such terms as the Security
Agent may think fit pending application of those moneys in accordance with
Clause 0 (Application of Proceeds). 

The
provisions of Part I
of the Trustee Act 2000 shall not apply to the Security Agent or the Trust
Property.

27.12    Resignation
of the Agent

27.12.1 The Agent may resign and appoint one of its Affiliates
acting through an office as successor by giving notice to the other Finance
Parties and the Borrowers.  

27.12.2 Alternatively the Agent may resign by giving 30
days' notice to the other Finance Parties and the Borrowers, in which case the
Majority Lenders (after consultation with the Borrowers) may appoint a
successor Agent.

27.12.3 If the Majority Lenders have not appointed a
successor Agent in accordance with Clause 0
within 20 days after notice of resignation was given, the retiring Agent (after
consultation with the Borrowers) may appoint a successor Agent.

27.12.4 If the Agent wishes to resign because (acting
reasonably) it has concluded that it is no longer appropriate for it to remain
as agent and the Agent is entitled to appoint a successor Agent under Clause 0,
the Agent may (if it concludes (acting reasonably) that it is necessary to do
so in order to persuade the proposed successor Agent to become a party to this
Agreement as Agent) agree with the proposed successor Agent amendments to this
Clause 0 and
any other term of this Agreement dealing with the rights or obligations of the
Agent consistent with then current market practice for the appointment and
protection of corporate trustees together with any reasonable amendments to the
agency fee payable under this Agreement which are consistent with the successor
Agent's normal fee rates and those amendments will bind the Parties.

27.12.5 The retiring Agent shall, make available to the
successor Agent such documents and records and provide such assistance as the
successor Agent may reasonably request for the purposes of performing its
functions as Agent under the Finance Documents.  The Borrowers shall, within
three Business Days of demand, reimburse the retiring Agent for the amount of
all costs and expenses (including legal fees) properly incurred by it in making
available such documents and records and providing such assistance.

27.12.6 The Agent's resignation notice shall only take
effect upon the appointment of a successor and (in the case of the Security
Agent) the transfer of all the Trust Property to that successor.

27.12.7 Upon the appointment of a successor, the retiring
Agent shall be discharged from any further obligation in respect of the Finance
Documents (other than its 

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obligations under Clause 0)
but shall remain entitled to the benefit of Clause 0 (Indemnity
to the Agent) and this Clause 0
(and any agency fees for the account of the retiring Agent shall cease to
accrue from (and shall be payable on) that date).  Any successor and each of
the other Parties shall have the same rights and obligations amongst themselves
as they would have had if such successor had been an original Party.

27.12.8 The Agent shall resign in accordance with Clause 0
(and, to the extent applicable, shall use reasonable endeavours to appoint a
successor Agent pursuant to Clause 0)
if on or after the date which is three months before the earliest FATCA
Application Date relating to any payment to the Agent under the Finance
Documents, either:

(a)       the Agent fails to respond to a request under
Clause 0 (FATCA
information) and a Borrower or a Lender reasonably believes that the Agent
will not be (or will have ceased to be) a FATCA Exempt Party on or after that
FATCA Application Date;

(b)       the information supplied by the Agent pursuant to
Clause 0 (FATCA
information) indicates that the Agent will not be (or will have ceased to
be) a FATCA Exempt Party on or after that FATCA Application Date; or

(c)        the Agent notifies the Borrowers and the Lenders
that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on
or after that FATCA Application Date;

and
(in each case) a Borrower or a Lender reasonably believes that a Party will be
required to make a FATCA Deduction that would not be required if the Agent were
a FATCA Exempt Party, and that Borrower or that Lender, by notice to the Agent,
requires it to resign.

27.13    Replacement
of the Agent

27.13.1 After consultation with the Borrowers, the Majority
Lenders may, by giving 30 days' notice to the Agent replace the Agent by
appointing a successor Agent.

27.13.2 The retiring Agent shall (at the expense of the
Lenders) make available to the successor Agent such documents and records and
provide such assistance as the successor Agent may reasonably request for the
purposes of performing its function as Agent under the Finance Documents.

27.13.3 The appointment of the successor Agent shall take
effect on the date specified in the notice from the Majority Lenders to the
retiring Agent.  As from this date, the retiring Agent shall be discharged from
any further obligation in respect of the Finance Documents (other than its
obligations under Clause 0
but shall remain entitled to the benefit of Clause 0 (Indemnity
to the Agent) and this Clause 0
(and any agency fees for the account of the retiring Agent shall cease to
accrue from (and shall be payable on) that date).

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27.13.4 Any
successor Agent and each of the other Parties shall have the same rights and
obligations amongst themselves as they would have had if such successor had
been an original Party.

27.14    Confidentiality 

27.14.1 In acting as agent for the Finance Parties, the
Agent shall be regarded as acting through its agency division which shall be
treated as a separate entity from any other of its divisions or departments.

27.14.2 If information is received by another division or
department of the Agent, it may be treated as confidential to that division or
department and the Agent shall not be deemed to have notice of it.

27.15    Relationship
with the Lenders

27.15.1 Subject to Clause 0 (Pro
rata interest settlement), the Agent may treat the person shown in its
records as Lender at the opening of business (in the place of the Agent's
principal office as notified to the Finance Parties from time to time) as the
Lender acting through its Facility Office:

(a)       entitled to or liable for any payment due under
any Finance Document on that day; and

(b)       entitled to receive and act upon any notice,
request, document or communication or make any decision or determination under
any Finance Document made or delivered on that day,

unless
it has received not less than five Business Days' prior notice from that Lender
to the contrary in accordance with the terms of this Agreement.

27.15.2 Any Lender may by notice to the Agent appoint a
person to receive on its behalf all notices, communications, information and
documents to be made or dispatched to that Lender under the Finance Documents. 
Such notice shall contain the address, fax number and (where communication by
electronic mail or other electronic means is permitted under Clause 0 (Electronic
communication)) electronic mail address and/or any other information
required to enable the transmission of information by that means (and, in each
case, the department or officer, if any, for whose attention communication is
to be made) and be treated as a notification of a substitute address, fax
number, electronic mail address, department and officer by that Lender for the
purposes of Clause 0 (Addresses)
and Clause 0 (Electronic
communication) and the Agent shall be entitled to treat such person as the
person entitled to receive all such notices, communications, information and
documents as though that person were that Lender.

27.16    Credit appraisal by the Lenders  
Without affecting the responsibility of any Obligor for information supplied by
it or on its behalf in connection with any Relevant Document, each Lender
confirms to the Agent that it has been, and will continue to be, solely
responsible 

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for making its own independent appraisal and investigation
of all risks arising under or in connection with any Relevant Document
including but not limited to:

27.16.1 the financial condition, status and nature of each Obligor
and each other member of the Group;

27.16.2 the legality, validity, effectiveness, adequacy or
enforceability of any Relevant Document and any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in
connection with any Relevant Document;

27.16.3 whether that Lender has recourse, and the nature
and extent of that recourse, against any Party or any of its respective assets
under or in connection with any Relevant Document, the transactions
contemplated by the Relevant Documents or any other agreement, arrangement or
document entered into, made or executed in anticipation of under or in
connection with any Relevant Document; and

27.16.4 the right or title of any person in or to, or the
value or sufficiency of any part of the Charged Property, the priority of any
Encumbrance created or expressed to be created or evidenced by the Security
Documents or the existence of any Encumbrance affecting the Charged Property.

27.17    Reference Banks   If a Reference
Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Agent shall (in consultation with the
Borrowers) appoint another Lender or an Affiliate of a Lender to replace that
Reference Bank.

27.18    Agent's management time  Any
amount payable to the Agent under Clause 0 (Indemnity
to the Agent), Clause 0 (Indemnity
to the Security Agent), Clause 0 (Costs
and expenses) and Clause 0 (Lenders'
indemnity to the Agent) shall include the cost of utilising the Agent's
management time or other resources and will be calculated on the basis of such
reasonable daily or hourly rates as the Agent may notify to the Borrowers and
the Lenders, and is in addition to any fee paid or payable to the Agent under
Clause 0 (Fees). 

27.19    Deduction from amounts payable by
the Agent   If any Party owes an amount to the Agent under the Finance
Documents the Agent may, after giving notice to that Party, deduct an amount
not exceeding that amount from any payment to that Party which the Agent would
otherwise be obliged to make under the Finance Documents and apply the amount
deducted in or towards satisfaction of the amount owed.  For the purposes of
the Finance Documents that Party shall be regarded as having received any
amount so deducted.

27.20    Period
without role for Agent

(a)      In this Clause 27.20, a
"Non-Agent Period" means the period in which the Agent has no
role pursuant to paragraph 27.20(b) below.

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(b)      The
Agent shall not have a role under this Agreement, other than entering into the
Finance Documents in its capacity as Agent, and the other provisions of this
Clause 27.20 shall not apply to the extent that they relate to the Agent until
one of the following conditions is satisfied:

(i)       the Agent receives notice
from the relevant Lender (with a copy to the Borrowers) that the Lenders are
not only the Original Lenders; or

(ii)      the Agent receives notice
from the Original Guarantor (with a copy to the Original Lenders) requesting
the Agent to commence acting in its role as agent.

The Agent shall commence acting in
its role as agent at the date of receipt of the relevant notice.

(c)      During a Non-Agent Period:

(i)       subject to paragraph 27.20
(c) (iii) below, all references to "the Agent" (other than in this
Clause 27.20) and all references to "the Agent", or "a
Party" in any Finance Document shall, where it relates to the Agent, be
construed as references to "the Original Lenders";

(ii)      all payments which are
expressed to be made to, received by or made available to or by the Agent (as
applicable), must be made to, received by or made available to or by the
Original Lenders;

(iii)     the reference to the
"Agent" in

(A)     Clause 27.7 (Responsibility
for documentation) to and including Clause 27.9 (Exclusion of liability); 

(B)     Clause 14 (Other
indemnities); and

(C)     Clause 16 (Costs and
Expenses), 

must at all times be construed to include the
Original Lenders in respect of actions taken during the Non-Agent Period
pursuant to paragraph 27.20 (c) (i) above.

(d)       Until the date the Agent
commences acting in its role as agent, no agency fee or other fees will be
payable to the Agent.  

(e)        ABN AMRO Bank N.V. will be under no
obligation to commence acting in its role as agent under this Agreement prior
to having agreed with the Original Guarantor the agency fees payable to it in
its capacity as  Agent.

(f)        Upon the Agent commencing to act as
Agent pursuant to clause 27.20 (b), the Security Agent shall carry out its role
through its separate and independent 

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division at Gustav
Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands, PAC HQ9037.

(g)       Following the change of office
referred to in clause 27.20 (f), the Borrowers shall, upon the request of the
Security Agent, enter into and execute such documentation as the Security Agent
may request in writing in order to reflect the change of office and to preserve
the rights of the Security Agent under, and security provided by, each of the
Finance Documents pursuant thereto.

28          Parallel Debt
(Covenant to pay the Security Agent)

28.1      Notwithstanding
any other provision of this Agreement, each Obligor hereby irrevocably and unconditionally
undertakes to pay to the Security Agent (such undertakings together, the "Parallel
Debt"), as creditor in its own right and not as representative of the
other Finance Parties, sums equal to and in the currency of each amount payable
by such Obligor to Finance Parties under each of the Finance Documents as and
when that amount falls due for payment under the relevant Finance Document or
would have fallen due but for any discharge resulting from failure of another
Finance Party to take appropriate steps, in insolvency proceedings affecting
that Obligor, to preserve its entitlement to be paid that amount.

28.2      The
Security Agent shall have its own independent right to demand payment of the
amounts payable by each Obligor under the Parallel Debt, irrespective of any
discharge of such Obligor’s
obligation to pay those amounts to the other Finance Parties resulting from
failure by them to take appropriate steps, in insolvency proceedings affecting
that Obligor, to preserve their entitlement to be paid those amounts.

28.3      Any
amount due and payable by a Obligor under the Parallel Debt shall be decreased
to the extent that the other Finance Parties have received (and are able to
retain) payment in full of the corresponding amount under the other provisions
of the Finance Documents and any amount due and payable by an Obligor to the
other Finance Parties under those provisions shall be decreased to the extent
that the Security Agent has received (and is able to retain) payment in full of
the corresponding amount under the Parallel Debt.

28.4      The
rights of the Finance Parties (other than the Security Agent) to receive
payment of amounts payable by each Obligor under the Finance Documents are
several and are separate and independent from, and without prejudice to, the
rights of the Security Agent to receive payment under this Clause 28 (Parallel
Debt (Covenant to pay the Security Agent)). 

29          Application of
Proceeds

29.1      Order of application   Subject
to Clause 0
(Prospective liabilities), all amounts from time to time received or recovered
by the Security Agent pursuant to the terms of any Finance Document or in
connection with the realisation or enforcement of all or any Encumbrance
created or expressed to be created under the Security Documents (for the
purposes of this Clause 0,
the "Recoveries") shall be held by the Security Agent on trust
to apply 

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them at any time as the Security Agent (in
its discretion) sees fit, to the extent permitted by applicable law (and
subject to the provisions of this Clause 0),
in the following order:

29.1.1   in discharging any sums owing to the Security
Agent, any Receiver or any Delegate;

29.1.2   in payment of all costs and expenses incurred by
the Agent or any Secured Party in connection with any realisation or enforcement
of any Encumbrance created or expressed to be created under the Security
Documents taken in accordance with the terms of this Agreement; and

29.1.3   in payment to the Agent for application in accordance with Clause 0 (Partial
payments).

29.2      Prospective
liabilities   Following enforcement
of any Encumbrance created or expressed to be created under the Security
Documents the Security Agent may, in its discretion, hold any amount of the
Recoveries in an interest bearing suspense or impersonal account(s) in the name
of the Security Agent with such financial institution (including itself) and
for so long as the Security Agent shall think fit (the interest being credited
to the relevant account) for later application under Clause 0 (Order
of application) in respect of:

29.2.1   any
sum to the Security Agent, any Receiver or any Delegate; and

29.2.2   any
part of the Indebtedness, 

that
the Security Agent reasonably considers, in each case, might become due or
owing at any time in the future.

29.3      Investment of proceeds   Prior to the application of the proceeds of
the Recoveries in accordance with Clause 0 (Order
of application) the Security Agent may, in its discretion, hold all or part
of those proceeds in an interest bearing suspense or impersonal account(s) in
the name of the Security Agent with such financial institution (including
itself) and for so long as the Security Agent shall think fit (the interest
being credited to the relevant account) pending the application from time to
time of those moneys in the Security Agent's discretion in accordance with the
provisions of this Clause 0.

29.4      Currency conversion

29.4.1   For the purpose of, or pending the discharge of,
any part of the Indebtedness the Security Agent may convert any moneys received
or recovered by the Security Agent from one currency to another, at a market rate of exchange.

29.4.2   The obligations of any Obligor to pay in the due
currency shall only be satisfied to the extent of the amount of the due
currency purchased after deducting the costs of conversion.

29.5      Permitted deductions   The Security Agent shall be entitled, in its
discretion: 

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29.5.1   to set aside by way of reserve amounts
required to meet, and to make and pay, any deductions and withholdings (on
account of taxes or otherwise) which it is or may be required by any applicable
law to make from any distribution or payment made by it under this Agreement;
and

29.5.2   to
pay all Taxes which may be assessed against it in respect of any of the Trust
Property, or as a consequence of performing its duties, or by virtue of its
capacity as Security Agent under any of the Finance Documents or otherwise
(other than in connection with its remuneration for performing its duties under
this Agreement).

29.6      Good discharge

29.6.1   Any payment
to be made in respect of the Indebtedness by the Security Agent may be made to the Agent on behalf of the
Finance Parties and any payment made in that way shall be a good discharge, to
the extent of that payment, by the Security Agent.

29.6.2   The Security Agent is under no obligation to make
the payments to the Agent under Clause 0 in
the same currency as that in which the obligations and liabilities owing to the
relevant Finance Party are denominated.

30          Conduct of Business by the Finance Parties

No
provision of this Agreement will:

30.1      interfere with the right of any
Finance Party to arrange its affairs (tax or otherwise) in whatever manner it
thinks fit;

30.2      oblige any Finance Party to
investigate or claim any credit, relief, remission or repayment available to it
or the extent, order and manner of any claim; or

30.3      oblige any Finance Party to disclose
any information relating to its affairs (tax or otherwise) or any computations
in respect of Tax.

31          Sharing among the Finance Parties

31.1      Payments to Finance Parties  
If a Finance Party (a "Recovering Finance Party") receives or
recovers any amount from an Obligor other than in accordance with Clause 0 (Payment
Mechanics) (a "Recovered Amount") and applies that amount
to a payment due under the Finance Documents then:

31.1.1   the Recovering Finance Party shall, within three
Business Days, notify details of the receipt or recovery, to the Agent;

31.1.2   the Agent shall determine whether the receipt or
recovery is in excess of the amount the Recovering Finance Party would have
been paid had the receipt or recovery been received or made by the Agent and
distributed in accordance with Clause 0 (Payment
Mechanics), without taking account of any Tax which would be imposed on the
Agent in relation to the receipt, recovery or distribution; and

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31.1.3   the
Recovering Finance Party shall, within three Business Days of demand by the
Agent, pay to the Agent an amount (the "Sharing Payment")
equal to such receipt or recovery less any amount which the Agent determines
may be retained by the Recovering Finance Party as its share of any payment to
be made, in accordance with Clause 0 (Partial
payments). 

31.2      Redistribution of payments  
The Agent shall treat the Sharing Payment as if it had been paid by the
relevant Obligor and distribute it between the Finance Parties (other than the
Recovering Finance Party) (the "Sharing Finance Parties") in
accordance with Clause 0 (Partial
payments) towards the obligations of that Obligor to the Sharing Finance
Parties.

31.3      Recovering Finance Party's rights  
On a distribution by the Agent under Clause 0 (Redistribution of payments) of a payment received
by a Recovering Finance Party from an Obligor, as between the relevant Obligor
and the Recovering Finance Party, an amount of the Recovered Amount equal to
the Sharing Payment will be treated as not having been paid by that Obligor.

31.4      Reversal of redistribution   If
any part of the Sharing Payment received or recovered by a Recovering Finance
Party becomes repayable and is repaid by that Recovering Finance Party, then:

31.4.1   each Sharing
Finance Party shall, upon request of the Agent, pay to the Agent for the
account of that Recovering Finance Party an amount equal to the appropriate
part of its share of the Sharing Payment (together with an amount as is
necessary to reimburse that Recovering Finance Party for its proportion of any
interest on the Sharing Payment which that Recovering Finance Party is required
to pay) (the "Redistributed Amount"); and

31.4.2   as between the relevant Obligor and each relevant
Sharing Finance Party, an amount equal to the relevant Redistributed Amount
will be treated as not having been paid by that Obligor.

31.5      Exceptions 

31.5.1   This Clause 0
shall not apply to the extent that the Recovering Finance Party would not,
after making any payment pursuant to this Clause, have a valid and enforceable
claim against the relevant Obligor.

31.5.2   A Recovering Finance Party is not obliged to share
with any other Finance Party any amount which the Recovering Finance Party has
received or recovered as a result of taking legal or arbitration proceedings,
if:

(a)       it notified that other Finance Party of the legal
or arbitration proceedings; and

(b)       that other Finance Party had an opportunity to participate
in those legal or arbitration proceedings but did not do so as soon as
reasonably 

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practicable having received notice and did not take
separate legal or arbitration proceedings.

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Section 11          Administration

32          Payment Mechanics

32.1      Payments to the Agent   On each
date on which an Obligor or a Lender is required to make a payment under a
Finance Document (other than the Master Agreement), that Obligor or that Lender
shall make the same available to the Agent (unless a contrary indication
appears in a Finance Document) for value on the due date at the time and in
such funds specified by the Agent as being customary at the time for settlement
of transactions in the relevant currency in the place of payment.

Payment
shall be made to such account in the principal financial centre of the country
of that currency with such bank as the Agent specifies.

32.2      Distributions by the Agent  
Each payment received by the Agent under the Finance Documents for another
Party shall, subject to Clause 0 (Distributions
to an Obligor) and Clause 0 (Clawback
and pre-funding) be made available by the Agent as soon as practicable
after receipt to the Party entitled to receive payment in accordance with this
Agreement (in the case of a Lender, for the account of its Facility Office), to
such account as that Party may notify to the Agent by not less than five
Business Days' notice with a bank specified by that Party in the principal
financial centre of the country of that currency.

32.3      Distributions to an Obligor  
The Agent may (with the consent of an Obligor or in accordance with Clause 0 (Set-Off))
apply any amount received by it for that Obligor in or towards payment (on the
date and in the currency and funds of receipt) of any amount due from that Obligor
under the Finance Documents or in or towards purchase of any amount of any currency
to be so applied.

32.4      Clawback
and pre-funding

32.4.1   Where a sum is to be paid to the Agent under the
Finance Documents for another Party, the Agent is not obliged to pay that sum
to that other Party (or to enter into or perform any related exchange contract)
until it has been able to establish to its satisfaction that it has actually
received that sum.   

32.4.2   Unless Clause 0
applies, if the Agent pays an amount to another Party and it proves to be the
case that the Agent had not actually received that amount, then the Party to
whom that amount (or the proceeds of any related exchange contract) was paid by
the Agent shall on demand refund the same to the Agent together with interest
on that amount from the date of payment to the date of receipt by the Agent,
calculated by the Agent to reflect its cost of funds.

32.4.3   If the Agent is willing to make available amounts
for the account of a Borrower before receiving funds from the Lenders then if
and to the extent that the Agent does so but it proves to be the case that it
does not then receive funds from a Lender in respect of a sum which it paid to
a Borrower:

(a)       the Borrower to whom that sum was made available
shall on demand refund it to the Agent; and

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(b)       the Lender
by whom those funds should have been made available or, if that Lender fails to
do so, the Borrower to whom that sum was made available, shall on demand pay to
the Agent the amount (as certified by the Agent) which will indemnify the Agent
against any funding cost incurred by it as a result of paying out that sum
before receiving those funds from that Lender.

32.5      Partial
payments

32.5.1   If the Agent or the Security Agent (as applicable)
receives a payment that is insufficient to discharge all the amounts then due
and payable by an Obligor under the Finance Documents (other than the Master
Agreement), the Agent or the Security Agent (as applicable) shall apply that
payment towards the obligations of that Obligor under the Finance Documents (other
than the Master Agreement)  in the following order:

(a)       in or towards payment pro rata of any unpaid
fees, costs and expenses of the Agent, the Security Agent, any Receiver or any
Delegate under the Finance Documents;

(b)       in or towards payment pro rata of any accrued
interest, fee or commission due but unpaid under this Agreement;

(c)        in or towards payment pro rata of any principal
due but unpaid under this Agreement; and

(d)       in or towards payment pro rata of any other sum
due but unpaid under the Finance Documents.

provided that any part of the Indebtedness
arising out of the Master Agreement shall be satisfied on a pari passu basis
with any repayment of the principal of the Loan.

32.5.2   The Agent shall, if so directed by the Majority
Lenders and the Swap Provider, vary the order set out in Clauses 0 to 0.

32.5.3   Clauses 0
and 0
will override any appropriation made by an Obligor.

32.6      No set-off by Obligors   All
payments to be made by an Obligor under the Finance Documents shall be
calculated and be made without (and free and clear of any deduction for)
set-off or counterclaim.

32.7      Business Days   Any payment
under the Finance Documents which is due to be made on a day that is not a
Business Day shall be made on the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not).

During
any extension of the due date for payment of any principal or Unpaid Sum under
this Agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date.

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32.8      Currency of account

32.8.1   Subject to Clauses 0 to
0,
dollars is the currency of account and payment for any sum due from an Obligor
under any Finance Document.

32.8.2   A repayment or payment of all or part of the Loan
or an Unpaid Sum shall be made in the currency in which the Loan or Unpaid Sum
is denominated, pursuant to this Agreement, on its due date.

32.8.3   Each payment of interest shall be made in the
currency in which the sum in respect of which the interest is payable was
denominated, pursuant to this Agreement, when that interest accrued.

32.8.4   Each payment in respect of costs, expenses or
Taxes shall be made in the currency in which the costs, expenses or Taxes are
incurred.

32.8.5   Any amount expressed to be payable in a currency
other than dollars shall be paid in that other currency.

32.9      Control account   The Agent
shall open and maintain on its books a control account in the names of the
Borrowers showing the advance of the Loan and the computation and payment of
interest and all other sums due under this Agreement.  The Borrowers'
obligations to repay the Loan and to pay interest and all other sums due under
this Agreement shall be evidenced by the entries from time to time made in the
control account opened and maintained under this Clause 0 and
those entries will, in the absence of manifest error, be conclusive and
binding.

32.10    Change of
currency

32.10.1 Unless otherwise prohibited by law, if more than
one currency or currency unit are at the same time recognised by the central
bank of any country as the lawful currency of that country, then:

(a)       any reference in the Finance Documents to, and
any obligations arising under the Finance Documents in, the currency of that
country shall be translated into, or paid in, the currency or currency unit of
that country designated by the Agent (after consultation with the Borrowers);
and

(b)       any translation from one currency or currency
unit to another shall be at the official rate of exchange recognised by the
central bank for the conversion of that currency or currency unit into the
other, rounded up or down by the Agent (acting reasonably).

32.10.2 If a change in any currency of a country occurs,
this Agreement will, to the extent the Agent (acting reasonably and after
consultation with the Borrowers) specifies to be necessary, be amended to
comply with any generally accepted conventions and market practice in the Relevant
Market and otherwise to reflect the change in currency.

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32.11    Disruption
to payment systems etc.   If either the Agent determines that a Disruption
Event has occurred or the Agent is notified by the Borrowers that a Disruption
Event has occurred:

32.11.1 the Agent may, and shall if requested to do so by
the Borrowers, consult with the Borrowers with a view to agreeing with the
Borrowers such changes to the operation or administration of the Loan as the
Agent may deem necessary in the circumstances;

32.11.2 the Agent shall not be obliged to consult with the
Borrowers in relation to any changes mentioned in Clause 0 if,
in its opinion, it is not practicable to do so in the circumstances and, in any
event, shall have no obligation to agree to any such changes;

32.11.3 the Agent may consult with the Finance Parties in
relation to any changes mentioned in Clause 0
but shall not be obliged to do so if, in its opinion, it is not practicable to
do so in the circumstances;

32.11.4 any such changes agreed upon by the Agent and the
Borrowers shall (whether or not it is finally determined that a Disruption
Event has occurred) be binding upon the Parties as an amendment to (or, as the
case may be, waiver of) the terms of the Finance Documents notwithstanding the
provisions of Clause 0 (Amendments
and Waivers); 

32.11.5 the Agent shall not be liable for any damages,
costs or losses to any person, any diminution in value or any liability
whatsoever (including, without limitation, for negligence, gross negligence or
any other category of liability whatsoever but not including any claim based on
the fraud of the Agent) arising as a result of its taking, or failing to take,
any actions pursuant to or in connection with this Clause 0;
and

32.11.6 the Agent shall notify the Finance Parties of all
changes agreed pursuant to Clause 0.

33          Set-Off

33.1      Set-off    A Finance Party may
set off any matured obligation due from an Obligor under the Finance Documents
(to the extent beneficially owned by that Finance Party) against any matured
obligation owed by that Finance Party to that Obligor, regardless of the place
of payment, booking branch or currency of either obligation.  If the
obligations are in different currencies, the Finance Party may convert either
obligation at a market rate of exchange in its usual course of business for the
purpose of the set-off.

33.2      Master Agreement rights   The
rights conferred on the Swap Provider by this Clause 0
shall be in addition to, and without prejudice to or limitation of, the rights
of netting and set off conferred on the Swap Provider by the Master Agreement.

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34          Notices

34.1      Communications in writing   Any
communication to be made under or in connection with the Finance Documents
shall be made in writing and, unless otherwise stated, may be made by fax or
letter.  

34.2      Addresses    The address and fax
number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to
be made or delivered under or in connection with the Finance Documents is:

34.2.1   in
the case of each Borrower, that identified with its name below;

34.2.2   in
the case of each Guarantor, that identified with its name below;

34.2.3   in
the case of each Lender, that notified in writing to the Agent on or prior to
the date on which it becomes a Party; and

34.2.4   in
the case of the Swap Provider, that identified with its name below; and

34.2.5   in
the case of the Agent or the Security Agent, that identified with its name
below, 

or
any substitute address, fax number, or department or officer as the Party may
notify to the Agent (or the Agent may notify to the other Parties, if a change
is made by the Agent) by not less than five Business Days' notice.

34.3      Delivery    Any communication or
document made or delivered by one person to another under or in connection with
the Finance Documents will only be effective:

34.3.1   if by way of fax, when received in legible form;
or

34.3.2   if by way of letter, when it has been left at the
relevant address or five Business Days after being deposited in the post
postage prepaid in an envelope addressed to it at that address;  

and,
if a particular department or officer is specified as part of its address
details provided under Clause 0 (Addresses),
if addressed to that department or officer.

Any
communication or document to be made or delivered to the Agent or the Security
Agent will be effective only when actually received by the Agent or the
Security Agent and then only if it is expressly marked for the attention of the
department or officer identified with the Agent's or the Security Agent's
signature below (or any substitute department or officer as the Agent or the
Security Agent shall specify for this purpose).

All
notices from or to an Obligor (save in respect of the Master Agreement) shall
be sent through the Agent.

Any
communication or document which becomes effective, in accordance with this
Clause 0,
after 5.00 p.m. in the place of receipt shall be deemed only to become
effective on the following day.

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34.4      Notification
of address and fax number   Promptly upon changing its address or fax
number, the Agent shall notify the other Parties.

34.5      Electronic communication

34.5.1   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:

(a)       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

(b)       notify
each other of any change to their address or any other such information
supplied by them by not less than five Business Days' notice.

34.5.2   Any
such electronic communication to be made between an Obligor and a Finance Party
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.

34.5.3   Any such electronic communication 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 Agent or the Security Agent only if it is addressed in such a
manner as the Agent or the Security Agent shall specify for this purpose.

34.5.4   Any
electronic communication which becomes effective, in accordance with Clause 0,
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 day.

34.5.5   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 0.

34.6      Use of
websites

34.6.1   Each Borrower may satisfy its obligations under
this Agreement to deliver any information in relation to those Lenders (the
"Website Lenders") who accept this method of communication by
posting this information onto an electronic website designated by the Borrowers
and the Agent (the "Designated Website") if:

(a)       the Agent expressly agrees (after consultation
with each of the Lenders) that it will accept communication of the information
by this method;

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(b)       both the
Borrowers and the Agent are aware of the address of and any relevant password
specifications for the Designated Website; and

(c)        the information is in a format previously agreed
between the Borrowers and the Agent.

If
any Lender (a "Paper Form Lender") does not agree to the
delivery of information electronically then the Agent shall notify the
Borrowers accordingly and each Borrower shall at its own cost supply the
information to the Agent (in sufficient copies for each Paper Form Lender) in
paper form.  In any event each Borrower shall at its own cost supply the Agent
with at least one copy in paper form of any information required to be provided
by it.

34.6.2   The Agent shall supply each Website Lender with
the address of and any relevant password specifications for the Designated
Website following designation of that website by the Borrowers and the Agent.

34.6.3   Each Borrower shall promptly upon becoming aware
of its occurrence notify the Agent if:

(a)       the Designated Website cannot be accessed due to
technical failure;

(b)       the password specifications for the Designated
Website change;  

(c)        any new information which is required to be
provided under this Agreement is posted onto the Designated Website;  

(d)       any existing information which has been provided
under this Agreement and posted onto the Designated Website is amended; or

(e)       that Borrower becomes aware that the Designated
Website or any information posted onto the Designated Website is or has been
infected by any electronic virus or similar software.   

If
a Borrower notifies the Agent under Clause 0 or
Clause 0,
all information to be provided by a Borrower under this Agreement after the
date of that notice shall be supplied in paper form unless and until the Agent
and each Website Lender is satisfied that the circumstances giving rise to the
notification are no longer continuing.

34.6.4   Any Website Lender may request, through the Agent,
one paper copy of any information required to be provided under this Agreement
which is posted onto the Designated Website.  Each Borrower shall at its own
cost comply with any such request within ten Business Days.

34.7      English language   Any notice
given under or in connection with any Finance Document must be in English.  All
other documents provided under or in connection with any Finance Document must
be:

34.7.1   in English; or

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34.7.2   if not in
English, and if so required by the Agent, accompanied by a certified English
translation and, in this case, the English translation will prevail unless the
document is a constitutional, statutory or other official document.

35          Calculations and Certificates

35.1      Accounts    In any litigation or
arbitration proceedings arising out of or in connection with a Finance
Document, the entries made in the accounts maintained by the Agent pursuant to
Clause 0 (Control
account) are prima facie evidence of the matters to which they
relate.

35.2      Certificates and determinations  
Any certification or determination by the Agent of a rate or amount under any
Finance Document is, in the absence of manifest error, conclusive evidence of
the matters to which it relates.

35.3      Day count convention   Any
interest, commission or fee accruing under a Finance Document will accrue from
day to day and is calculated on the basis of the actual number of days elapsed
and a year of 360 days or, in any case where the practice in the Relevant
Market differs, in accordance with that market practice.

36          Partial Invalidity

If,
at any time, any provision of a Finance Document is or becomes illegal, invalid
or unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

37          Remedies and Waivers

No
failure to exercise, nor any delay in exercising, on the part of any Finance
Party or Secured Party, any right or remedy under a Finance Document shall
operate as a waiver of any such right or remedy or constitute an election to
affirm any Finance Document.  No election to affirm any Finance Document on the
part of any Finance Party or Secured Party shall be effective unless it is in
writing.  No single or partial exercise of any right or remedy shall prevent
any further or other exercise or the exercise of any other right or remedy. 
The rights and remedies provided in each Finance Document are cumulative and
not exclusive of any rights or remedies provided by law.

38          Amendments and
Waivers

38.1      Required
consents

38.1.1   Subject to Clause 0 (Exceptions)
any term of the Finance Documents (other than the Master Agreement) may be
amended or waived only with the consent of the Majority Lenders and the
Borrowers and any such amendment or waiver will be binding on all Parties.

38.1.2   The Agent may effect, on behalf of any Finance
Party, any amendment or waiver permitted by this Clause 0.

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38.1.3   Without
prejudice to the generality of Clauses 0, 0 and
0 (Rights
and discretions of the Agent), the Agent may engage, pay for and rely on
the services of lawyers in determining the consent level required for and
effecting any amendment, waiver or consent under this Agreement.

38.1.4   Clause
0 (Pro
rata interest settlement) shall apply to this Clause 0.

38.2      Exceptions 

38.2.1   Subject to Clause 0 (Replacement
of Screen Rate), an amendment, waiver or (in the case of a Security
Document) a consent of, or in relation to, any term of any Finance Document
that has the effect of changing or which relates to:

(a)       the definition of "Majority Lenders"
in Clause 0 (Definitions); 

(b)       an extension to the date of payment of any amount
under the Finance Documents;

(c)        a reduction in the Margin or a reduction in the
amount of any payment of principal, interest, fees or commission payable;

(d)       an increase in any Commitment, an extension of
the Availability Period or any requirement that a cancellation of Commitments
reduces the Commitments of the Lenders rateably;

(e)       a change to a Borrower or a change to a Guarantor
other than in accordance with Clause 0 (Changes
to the Obligors); 

(f)        any provision which expressly requires the
consent of all the Lenders;  

(g)       Clause 0 (Finance
Parties' rights and obligations), Clause 0 (Delivery
of a Utilisation Request), Clause 0 (Illegality),
Clause 7.5 (Mandatory prepayment on sale or Total Loss), Clause 0 (Changes
to the Lenders), Clause 0 (Changes
to the Obligors), this Clause 0,
Clause 0 (Governing
Law) or Clause 0 (Jurisdiction
of English courts); 

(h)       (other than as expressly permitted by the
provisions of any Finance Document) the nature or scope of:

(i)        any Guarantee;

(ii)        the Charged Property; or

(iii)       the manner in which the proceeds of enforcement
of the Security Documents are distributed; or

(i)        the release of any Guarantee or of any
Encumbrance created or expressed to be created or evidenced by the Security
Documents unless permitted under this Agreement or any other Finance Document
or relating to a sale or disposal of an asset which is the subject of any 

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Encumbrance created
or expressed to be created or evidenced by the Security Documents where such
sale or disposal is expressly permitted under this Agreement or any other
Finance Document;

(j)        Clause
0 (Sanctions)
or anyone or more of the definitions of "Restricted Party",
"Sanctions", "Sanctions Authority" and "Sanctions
List"; 

shall
not be made, or given, without the prior consent of all the Lenders.

38.2.2   An amendment or waiver
which relates to the rights or obligations of the Agent, the Security Agent may
not be effected without the consent of the Agent or the Security Agent. 

38.3      Replacement of Screen Rate

38.3.1   In
this Clause 0:

"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.

"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 (i) and (ii), the "Replacement Benchmark"
will be the replacement under (ii); 

(b)       in
the opinion of the Majority Lenders and the Borrowers, generally accepted in
the international or any relevant domestic syndicated loan markets as the
appropriate successor to that Screen Rate; or

(c)        in
the opinion of the Majority Lenders and the Borrowers, an appropriate successor
to a Screen Rate.

"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 Majority Lenders, and the Borrowers materially changed;

(b)

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(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, of 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

(c)       in the opinion of the Majority Lenders
and the Borrowers, that Screen Rate is otherwise no longer appropriate for the
purposes of calculating interest under this Agreement.

38.3.2   Subject
to Clause 0 (Exceptions),
if a Screen Rate Replacement Event has occurred in relation to a Screen Rate
for a currency which can be selected for a Loan any amendment or waiver which
relates to:

(a)       providing for the use of a Replacement
Benchmark; and

(b)       

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

(ii)        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);

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

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

(v)       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
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 Agent (acting on the instructions of the Majority
Lenders) and the Borrowers.

38.4      Excluded
Commitments

If:

38.4.1   any Defaulting Lender fails to respond to a
request for a consent, waiver, amendment of or in relation to any term of any
Finance Document or any other vote of Lenders under the terms of this Agreement
within five Business Days of that request being made; or  

38.4.2   any Lender which is not a Defaulting Lender fails
to respond to such a request,

(unless,
in either case, the Borrowers and the Agent agree to a longer time period in
relation to any request):

(a)       its Commitment(s) shall not be included for the
purpose of calculating the Total Commitments when ascertaining whether any
relevant percentage (including, for the avoidance of doubt, unanimity) of Total
Commitments has been obtained to approve that request; and

(b)       its status as a Lender shall be disregarded for
the purpose of ascertaining whether the agreement of any specified group of
Lenders has been obtained to approve that request.

38.5      Replacement
of Lender

38.5.1   If:

(a)       any Lender becomes a Non-Consenting Lender (as
defined in Clause 0);
or

(b)       a Borrower or any other Obligor becomes obliged
to repay any amount in accordance with Clause 0 (Illegality)
or to pay additional amounts pursuant to Clause 0 (Tax
gross-up), Clause 0 (Tax
Indemnity) or Clause 0 (Increased
costs) to any Lender,

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then the Borrowers may, on ten Business Days'
prior written notice to the Agent and such Lender, replace such Lender by
requiring such Lender to (and, to the extent permitted by law, such Lender
shall) transfer pursuant to Clause 0 (Changes
to the Lenders) all (and not part only) of its rights and obligations under
this Agreement to a Lender or other bank, financial institution, trust, fund or
other entity selected by the Borrowers (a "Replacement Lender"),
which confirms its willingness to assume and does assume all the obligations of
the transferring Lender in accordance with Clause 0 (Changes
to the Lenders) for a purchase price in cash payable at the time of
transfer in an amount equal to the outstanding principal amount of such
Lender's participation in the outstanding Loan and all accrued interest (to the
extent that the Agent has not given a notification under Clause 0 (Pro
rata interest settlement)), Break Costs and other amounts payable in
relation thereto under the Finance Documents.

38.5.2   The replacement of a Lender pursuant to this
Clause 0
shall be subject to the following conditions:

(a)       the Borrowers shall have no right to replace the
Agent or Security Agent;

(b)       neither the Agent nor the Lender shall have any
obligation to the Borrowers to find a Replacement Lender;

(c)        in the event of a replacement of a
Non-Consenting Lender such replacement must take place no later than 15 after
the date on which that Lender is deemed a Non-Consenting Lender;  

(d)       in no event shall the Lender replaced under this
Clause 0 be
required to pay or surrender to such Replacement Lender any of the fees
received by such Lender pursuant to the Finance Documents; and

(e)       the Lender shall only be obliged to transfer its
rights and obligations pursuant to Clause 0
once it is satisfied that it has complied with all necessary "know your
customer" or other similar checks under all applicable laws and
regulations in relation to that transfer.

38.5.3   A Lender shall perform the checks described in
Clause 0 as
soon as reasonably practicable following delivery of a notice referred to in
Clause 0
and shall notify the Agent and the Borrowers when it is satisfied that it has
complied with those checks.

38.5.4   In the event that:

(a)       the Borrowers or the Agent (at the request of the
Borrowers) have requested the Lenders to give a consent in relation to, or to
agree to a waiver or amendment of, any provisions of the Finance Documents;

(b)       the consent, waiver or amendment in question
requires the approval of all the Lenders; and

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(c)        Lenders
whose Commitments aggregate more than 51 per cent of the Total Commitments (or,
if the Total Commitments have been reduced to zero, aggregated more than 51 per
cent of the Total Commitments prior to that reduction) have consented or agreed
to such waiver or amendment,   

then
any Lender who does not and continues not to consent or agree to such waiver or
amendment shall be deemed a "Non-Consenting Lender". 

38.6      Disenfranchisement
of Defaulting Lenders

38.6.1   For so long as a Defaulting Lender has any
Commitment, in ascertaining:

(a)       the Majority Lenders; or

(b)       whether:

(i)        any given percentage (including, for the
avoidance of doubt, unanimity) of the Total Commitments; or

(ii)        the agreement of any specified group of
Lenders,

has
been obtained to approve any request for a consent, waiver, amendment or other
vote of Lenders under the Finance Documents, that Defaulting Lender's
Commitment will be reduced by the amount of its participation in the Loan it
has failed to make available and, to the extent that that reduction results in
that Defaulting Lender's Commitment being zero, that Defaulting Lender shall be
deemed not to be a Lender for the purposes of (i) and (ii).

38.6.2   For the purposes of this Clause 0,
the Agent may assume that the following Lenders are Defaulting Lenders:

(a)       any Lender which has notified the Agent that it
has become a Defaulting Lender;

(b)       any Lender in relation to which it is aware that
any of the events or circumstances referred to in 0, 0 or (c) of the
definition of "Defaulting Lender" has occurred,

unless
it has received notice to the contrary from the Lender concerned (together with
any supporting evidence reasonably requested by the Agent) or the Agent is
otherwise aware that the Lender has ceased to be a Defaulting Lender.

38.7      Replacement
of a Defaulting Lender

38.7.1   The Borrowers may, at any time a Lender has become
and continues to be a Defaulting Lender, by giving ten Business Days' prior
written notice to the Agent and such Lender, replace such Lender by requiring
such Lender to (and, to the extent permitted by law, such Lender shall)
transfer pursuant to Clause 0 (Changes
to the Lenders) all (and not part only) of its rights and obligations under

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this Agreement to a Lender or other bank, financial
institution, trust, fund or other entity selected by the Borrowers (a "Replacement
Lender") which confirms its willingness to assume and does assume all
the obligations, or all the relevant obligations, of the transferring Lender in
accordance with Clause 0 (Changes
to the Lenders) for a purchase price in cash payable at the time of
transfer which is either:

(a)       in an amount equal to the outstanding principal
amount of such Lender's participation in the outstanding Loan and all accrued
interest (to the extent that the Agent has not given a notification under
Clause 0 (Pro
rata interest settlement), Break Costs and other amounts payable in
relation thereto under the Finance Documents; or

(b)       in an amount agreed between that Defaulting
Lender, the Replacement Lender and the Borrowers and which does not exceed the
amount described in 0.

38.7.2   Any transfer of rights and obligations of a
Defaulting Lender pursuant to this Clause 0
shall be subject to the following conditions:

(a)       the Borrowers shall have no right to replace the
Agent or Security Agent;

(b)       neither the Agent nor the Defaulting Lender shall
have any obligation to the Borrowers to find a Replacement Lender;

(c)        the transfer must take place no later than 15
days after the notice referred to in Clause 0;

(d)       in no event shall the Defaulting Lender be
required to pay or surrender to the Replacement Lender any of the fees received
by the Defaulting Lender pursuant to the Finance Documents; and

(e)       the Defaulting Lender shall only be obliged to
transfer its rights and obligations pursuant to 0
once it is satisfied that it has complied with all necessary "know your
customer" or other similar checks under all applicable laws and regulations
in relation to that transfer to the Replacement Lender.

38.7.3   The Defaulting Lender shall perform the checks
described in Clause 0 as
soon as reasonably practicable following delivery of a notice referred to in
Clause 0
and shall notify the Agent and the Borrowers when it is satisfied that it has
complied with those checks.

39          Confidentiality

39.1      Confidential Information   Each
Finance Party agrees to keep all Confidential Information confidential and not
to disclose it to anyone, save to the extent permitted by Clause 0 (Disclosure
of Confidential Information) and Clause 0 (Disclosure
to numbering service providers), and to ensure that all Confidential
Information is protected with 

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security measures and a
degree of care that would apply to its own confidential information.

39.2      Disclosure of Confidential
Information   Any Finance Party may disclose:

39.2.1   to any of its Affiliates and Related Funds and any
of its or their officers, directors, employees, professional advisers,
auditors, partners, insurance and reinsurance providers and Representatives
such Confidential Information as that Finance Party shall consider appropriate
if any person to whom the Confidential Information is to be given pursuant to
this Clause 0 is
informed in writing of its confidential nature and that some or all of such
Confidential Information may be price-sensitive information except that there
shall be no such requirement to so inform if the recipient is subject to
professional obligations to maintain the confidentiality of the information or
is otherwise bound by requirements of confidentiality in relation to the
Confidential Information;

39.2.2   to any person:

(a)       to (or through) whom it assigns or transfers (or
may potentially assign or transfer) all or any of its rights and/or obligations
under one or more Finance Documents or which succeeds (or which may potentially
succeed) it as Agent or Security Agent and, in each case, to any of that
person's Affiliates, Related Funds, Representatives and professional advisers;

(b)       with (or through) whom it enters into (or may
potentially enter into), whether directly or indirectly, any sub-participation
in relation to, or any other transaction under which payments are to be made or
may be made by reference to, one or more Finance Documents and/or one or more Obligors
and to any of that person's Affiliates, Related Funds, Representatives and
professional advisers;

(c)        appointed by any Finance Party or by a person to
whom Clause 0 or
0
applies to receive communications, notices, information or documents delivered
pursuant to the Finance Documents on its behalf (including, without limitation,
any person appointed under Clause 0 (Relationship
with the Lenders)); 

(d)       who invests in or otherwise finances (or may
potentially invest in or otherwise finance), directly or indirectly, any
transaction referred to in Clause 0 or
0;

(e)       to whom information is required or requested to
be disclosed by any court of competent jurisdiction or any governmental,
banking, taxation or other regulatory authority or similar body, the rules of
any relevant stock exchange or pursuant to any applicable law or regulation;

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(f)        to whom information
is required to be disclosed in connection with, and for the purposes of, any
litigation, arbitration, administrative or other investigations, proceedings or
disputes;

(g)       to whom or for whose benefit that Finance Party
charges, assigns or otherwise creates Security (or may do so) pursuant to
Clause 0 (Security
over Lenders' rights); 

(h)       who is a Party; or

(i)        with the consent of the Borrowers;

in
each case, such Confidential Information as that Finance Party shall consider
appropriate if:

(i)        in relation to Clauses 0, 0 and
0,
the person to whom the Confidential Information is to be given has entered into
a Confidentiality Undertaking except that there shall be no requirement for a
Confidentiality Undertaking if the recipient is a professional adviser and is
subject to professional obligations to maintain the confidentiality of the
Confidential Information;

(ii)        in relation to Clause 0,
the person to whom the Confidential Information is to be given has entered into
a Confidentiality Undertaking or is otherwise bound by requirements of
confidentiality in relation to the Confidential Information they receive and is
informed that some or all of such Confidential Information may be
price-sensitive information;

(iii)       in relation to Clauses 0, 0 and
0,
the person to whom the Confidential Information is to be given is informed of
its confidential nature and that some or all of such Confidential Information
may be price-sensitive information except that there shall be no requirement to
so inform if, in the opinion of that Finance Party, it is not practicable so to
do in the circumstances; 

39.2.3   to any person appointed by that Finance Party or
by a person to whom Clause 0 or
0
applies to provide administration or settlement services in respect of one or
more of the Finance Documents including without limitation, in relation to the
trading of participations in respect of the Finance Documents, such
Confidential Information as may be required to be disclosed to enable such
service provider to provide any of the services referred to in this Clause 0 if
the service provider to whom the Confidential Information is to be given has
entered into a Confidentiality Undertaking; 

39.2.4   to any rating agency (including its professional
advisers) such Confidential Information as may be required to be disclosed to
enable such rating agency to 

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carry out its normal rating activities in
relation to the Finance Documents and/or the Obligors and/or the Group.

39.3      Disclosure
to numbering service providers

39.3.1   Any Finance Party may disclose to any national or
international numbering service provider appointed by that Finance Party to
provide identification numbering services in respect of this Agreement, the
Loan and/or one or more Obligors the following information:

(a)       names of Obligors;

(b)       country of domicile of Obligors;

(c)        place of incorporation of Obligors;

(d)       date of this Agreement;

(e)       Clause 0 (Governing
law); 

(f)        the names of the Agent;

(g)       date of each amendment and restatement of this
Agreement;

(h)       amount of Total Commitments;

(i)        currencies of the Loan;

(j)        type of Loan;

(k)       ranking of the Loan;

(l)        Termination Date;

(m)      changes to any of the information previously
supplied pursuant to 0 to
(l); and

(n)       such other information agreed between such
Finance Party and that Obligor,

to
enable such numbering service provider to provide its usual syndicated loan
numbering identification services.

39.3.2   The Parties acknowledge and agree that each
identification number assigned to this Agreement, the Loan and/or one or more Obligors
by a numbering service provider and the information associated with each such
number may be disclosed to users of its services in accordance with the
standard terms and conditions of that numbering service provider.

39.3.3   Each Borrower represents that none of the
information set out in Clauses 0 to
0
is, nor will at any time be, unpublished price-sensitive information.

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39.3.4   The Agent
shall notify the Borrowers and the other Finance Parties of:

(a)       the name of any numbering service provider
appointed by the Agent in respect of this Agreement, the Loan and/or one or
more Obligors; and

(b)       the number or, as the case may be, numbers
assigned to this Agreement, the Loan and/or one or more Obligors by such
numbering service provider.

39.4      Entire agreement   This Clause 0
constitutes the entire agreement between the Parties in relation to the
obligations of the Finance Parties under the Finance Documents regarding
Confidential Information and supersedes any previous agreement, whether express
or implied, regarding Confidential Information.

39.5      Inside information   Each of
the Finance Parties acknowledges that some or all of the Confidential
Information is or may be price-sensitive information and that the use of such
information may be regulated or prohibited by applicable legislation including
securities law relating to insider dealing and market abuse and each of the
Finance Parties undertakes not to use any Confidential Information for any
unlawful purpose.

39.6      Notification of disclosure  
Each of the Finance Parties agrees (to the extent permitted by law and
regulation) to inform the Borrowers:

39.6.1   of the circumstances of any disclosure of
Confidential Information made pursuant to Clause 0 (Disclosure
of Confidential Information) except where such disclosure is made to any of
the persons referred to in that Clause during the ordinary course of its
supervisory or regulatory function; and

39.6.2   upon becoming aware that Confidential Information
has been disclosed in breach of this Clause 0.

39.7      Continuing obligations   The
obligations in this Clause 0
are continuing and, in particular, shall survive and remain binding on each
Finance Party for a period of 12 months from the earlier of:

39.7.1   the date on which all amounts payable by the Obligors
under or in connection with the Finance Documents have been paid in full and all
Commitments have been cancelled or otherwise cease to be available; and

39.7.2   the date on which such Finance Party otherwise
ceases to be a Finance Party.

40          Disclosure of Lender Details by Agent

40.1      Supply of Lender details to
Borrowers   The Agent shall provide to the Borrowers within seven Business
Days of a request by the Borrowers (but no more frequently than once per
calendar month) a list (which may be in electronic form) setting out the names
of the Lenders as at that Business Day, their respective Commitments, the
address and fax number (and the department or officer, if any, for whose
attention any communication is to be made) of each Lender for any communication
to be made or document to be 

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delivered under or in connection with the
Finance Documents, the electronic mail address and/or any other information
required to enable the transmission of information by electronic mail or other
electronic means to and by each Lender to whom any communication under or in
connection with the Finance Documents may be made by that means and the account
details of each Lender for any payment to be distributed by the Agent to that
Lender under the Finance Documents.

40.2      Supply
of Lender details at Borrowers' direction

40.2.1   The Agent shall, at the request of the Borrowers,
disclose the identity of the Lenders and the details of the Lenders'
Commitments to any:

(a)       other Party or any other person if that
disclosure is made to facilitate, in each case, a refinancing of the Financial
Indebtedness arising under the Finance Documents or a material waiver or
amendment of any term of any Finance Document; and

(b)       Obligor.

40.2.2   Subject to Clause 0,
the Borrowers shall procure that the recipient of information disclosed
pursuant to Clause 0
shall keep such information confidential and shall not disclose it to anyone
and shall ensure that all such information is protected with security measures
and a degree of care that would apply to the recipient's own confidential
information.

40.2.3   The recipient may disclose such information to any
of its officers, directors, employees, professional advisers, auditors and
partners as it shall consider appropriate if any such person is informed in
writing of its confidential nature, except that there shall be no such
requirement to so inform if that person is subject to professional obligations
to maintain the confidentiality of the information or is otherwise bound by
duties of confidentiality in relation to the information.

40.3      Supply
of Lender details to other Lenders

40.3.1   If a Lender (a "Disclosing Lender")
indicates to the Agent that the Agent may do so, the Agent shall disclose that
Lender's name and Commitment to any other Lender that is, or becomes, a
Disclosing Lender.

40.3.2   The Agent shall, if so directed by the Requisite
Lenders, request each Lender to indicate to it whether it is a Disclosing
Lender.

40.4      Lender enquiry   If any Lender
believes that any entity is, or may be, a Lender and:

40.4.1   that entity ceases to have an Investment Grade
Rating; or

40.4.2   an Insolvency Event occurs in relation to that
entity,

the
Agent shall, at the request of that Lender, indicate to that Lender the extent
to which that entity has a Commitment.

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40.5      Lender
details definitions   In this Clause 0:

"Investment
Grade Rating" means, in relation to an entity, a rating for its
long-term unsecured and non-credit-enhanced debt obligations of BBB- or higher
by Standard & Poor's Rating Services or Fitch Ratings Ltd or Baa3 or higher
by Moody's Investors Service Limited or a comparable rating from an
internationally recognised credit rating agency.

"Requisite
Lenders" means a Lender or Lenders whose Commitments aggregate 15 per
cent (or more) of the Total Commitments (or if the Total Commitments have been
reduced to zero, aggregated 15 per cent (or more) of the Total Commitments
immediately prior to that reduction).

41          Counterparts

Each
Finance Document may be executed in any number of counterparts, and this has
the same effect as if the signatures on the counterparts were on a single copy
of the Finance Document.

42          Joint and Several Liability

42.1      Nature of
liability   The representations, warranties, covenants, obligations and
undertakings of the Borrowers contained in this Agreement shall be joint and
several so that each Borrower shall be jointly and severally liable with all
the Borrowers for all of the same and such liability shall not in any way be
discharged, impaired or otherwise affected by:

42.1.1   any forbearance
(whether as to payment or otherwise) or any time or other indulgence granted to
any other Borrower or any other Obligor under or in connection with any Finance
Document;

42.1.2   any
amendment, variation, novation or replacement of any other Finance Document;

42.1.3   any failure of any Finance Document to be legal
valid binding and enforceable in relation to any other Borrower or any other Obligor
for any reason;

42.1.4   the winding-up or dissolution of any other
Borrower or any other Obligor;

42.1.5   the release (whether in whole or in part) of, or
the entering into of any compromise or composition with, any other Borrower or
any other Obligor; or

42.1.6   any other act, omission, thing or circumstance
which would or might, but for this provision, operate to discharge, impair or
otherwise affect such liability.

42.2      No rights
as surety   Until the Indebtedness has been unconditionally and irrevocably
paid and discharged in full, each Borrower agrees that it shall not, by virtue
of any payment made under this Agreement on account of the Indebtedness or by
virtue of any enforcement by a Finance Party of its rights under this Agreement
or by virtue of any relationship between, or transaction involving, the
relevant Borrower and any other Borrower or any other Obligor:

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42.2.1   exercise
any rights of subrogation in relation to any rights, security or moneys held or
received or receivable by a Finance Party or any other person; or

42.2.2   exercise any right of
contribution from any other Borrower or any other Obligor under any Finance
Document; or

42.2.3   exercise any right of
set-off or counterclaim against any other Borrower or any other Obligor; or

42.2.4   receive, claim or have
the benefit of any payment, distribution, security or indemnity from any other
Borrower or any other Obligor; or

42.2.5   unless so directed by
the Agent (when the relevant Borrower will prove in accordance with such
directions), claim as a creditor of any other Borrower or any other Obligor in
competition with any Finance Party

and each Borrower shall hold in trust for the
Finance Parties and forthwith pay or transfer (as appropriate) to the Agent any
such payment (including an amount equal to any such set-off), distribution or
benefit of such security, indemnity or claim in fact received by it.

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Section 12          Governing Law and Enforcement

43          Governing Law

This
Agreement and any non-contractual obligations arising out of or in connection
with it are governed by English law.

44          Enforcement

44.1      Jurisdiction of English courts

44.1.1   The courts of England have exclusive jurisdiction
to settle any dispute arising out of or in connection with this Agreement
(including a dispute relating to the existence, validity or termination of this
Agreement or any non-contractual obligation arising out of or in connection with
this Agreement) (a "Dispute").  Each Party agrees that the
courts of England are the most appropriate and convenient courts to settle
Disputes and accordingly no Party will argue to the contrary.

44.1.2   Notwithstanding
Clause 0,
no Finance Party shall be prevented from taking proceedings relating to a
Dispute in any other courts with jurisdiction.  To the extent allowed by law,
any Finance Party may take concurrent proceedings in any number of jurisdictions.

44.2      Service
of process

44.2.1   Without prejudice to any other mode of service
allowed under any relevant law, each Borrower and each Guarantor:

(a)       irrevocably appoints Ince Process Agents Limited
of Aldgate Tower, 2 Leman Street, London E18QN, England as its agent for
service of process in relation to any proceedings before the English courts in
connection with any Finance Document; and  

(b)       agrees that failure by a process agent to notify
that Borrower or that Guarantor (as the case may be) of the process will not
invalidate the proceedings concerned.

44.2.2   If any person appointed as an agent for service of
process is unable for any reason to act as agent for service of process or
terminates its appointment as agent for service of process, the relevant
Borrower or relevant Guarantor (as the case may be) must immediately (and in
any event within five days of such event taking place) appoint another agent on
terms acceptable to the Agent.  Failing this, the Agent may appoint another
agent for this purpose.

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

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Schedule 1         

Part I The Original Lenders

	
  Name
  of Original Lender

  	
  Commitment

  	
  Treaty
  Passport scheme reference number and jurisdiction of residence (if
  applicable)  

  
	
  ABN
  AMRO Bank N.V.

  	
  Coolsingel
  93, 3012 AE Rotterdam, The Netherlands

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

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Schedule 2         

Part I

Conditions Precedent

1          Obligors 

(a)       Constitutional documents  
Copies of the constitutional documents of each Obligor together with such other
evidence as the Agent may reasonably require that each Obligor is duly
incorporated in its country of incorporation and remains in existence with
power to enter into, and perform its obligations under, the Relevant Documents
to which it is or is to become a party.

(b)       Certificates of good standing  
A certificate of good standing in respect of each Obligor (if such a
certificate can be obtained).

(c)       Board resolutions   A copy of a
resolution of the board of directors of each Obligor (other than the Original
Guarantor) and a copy of a resolution of the executive committee of the board
of directors of the Original Guarantor:

(i)        approving the terms of, and the
transactions contemplated by, the Relevant Documents to which it is a party and
resolving that it execute those Relevant Documents; and  

(ii)        authorising a specified person or
persons to execute those Relevant Documents (and all documents and notices to
be signed and/or dispatched under those documents) on its behalf.

(d)       Copy passports   A copy of the
passport of each person actually executing any of the Relevant Documents
pursuant to the resolutions referred to in (c) and of the director and officers
of each Obligor.

(e)       Shareholder resolutions   A
copy of a resolution signed by all the holders of the issued shares in each Obligor
(other than the Original Guarantor), approving the terms of, and the
transactions contemplated by, the Relevant Documents to which that Obligor is a
party.

(f)        Officer's certificates   An original
certificate of a duly authorised officer of each Obligor:

(i)        certifying
that each copy document relating to it specified in this Part I of 0 is
correct, complete and in full force and effect;

(ii)        setting
out the names of (a) the directors and officers of that Obligor and (b) the
shareholders of that Obligor (other than the Original Guarantor) and the
proportion of shares held by each shareholder; and

(iii)       confirming
that borrowing or guaranteeing or securing, as appropriate, the Loan would not
cause any borrowing, guarantee, security or similar limit binding on that Obligor
to be exceeded.

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(g)       Evidence
of registration   Where such registration is required or permitted under
the laws of the relevant jurisdiction, evidence that the names of the
directors, officers and shareholders of each Obligor are duly registered in the
companies registry or other registry in the country of incorporation of that Obligor.

(h)       Powers of attorney   The
original notarially attested and legalised power of attorney of each of the Obligors
under which the Relevant Documents to which it is or is to become a party are
to be executed or transactions undertaken by that Obligor.

2          Security and related documents

(a)       Vessel documents   Photocopies, certified
as true, accurate and complete by a director or the secretary or the legal
advisers of the Borrowers, of:

(i)        any
charterparty or other contract of employment of each Vessel which will be in
force on the Utilisation Date including, without limitation, the Charter;

(ii)        the confirmation (by email from the master of the Vessel)
for the delivery of the Vessel pursuant to the Charter (if the Charter is a
time charter) or the protocol of delivery and acceptance evidencing the
unconditional physical delivery of each Vessel by the relevant Borrower to the
Charterer pursuant to the Charter (if the Charter is a bareboat charter);

(iii)       the
Management Agreements; 

(iv)       each
Vessel's current Safety Construction, Safety Equipment, Safety Radio and Load
Line Certificates;

(v)       evidence
of each Vessel's current Certificate of Financial Responsibility issued
pursuant to the United States Oil Pollution Act 1990;

(vi)       each
Vessel's current SMC;

(vii)      each
ISM Company's current DOC;

(viii)      each
Vessel's current ISSC;

(ix)       each
Vessel's current IAPPC;

(x)       each
Vessel's current Tonnage Certificate;

in each case together with all addenda, amendments or
supplements

(b)       Security
Documents   The Guarantee, the Account Security Deeds, the Share Securities,
The Mortgages, the Mortgage Addenda, the Assignments in respect of the Vessels and
any other Credit Support Documents, together with all other 

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documents required by any of them, including, without
limitation, (i) all notices of assignment and/or charge and evidence that those
notices will be duly acknowledged by the recipients and (ii) (pursuant to the Share
Securities) all share certificates, certified copy share registers or registers
of members, transfer forms, proxy forms letters of resignation and letters of
undertaking.

(c)       Evidence of Borrower's title   

(i)        Evidence that on the Utilisation Date
(A) each Vessel will be permanently registered under the relevant flag in the
ownership of the relevant Borrower, (B) the Mortgages will be capable of being
registered against the Vessels  with first priority.

(ii)        A Certificate of ownership and
encumbrance (or equivalent) issued by the Registrar of Ships (or equivalent
official) of the relevant flag confirming that (a) each of Vessel A, Vessel B
and Vessel C is permanently registered under that flag in the ownership of the relevant
Borrower, (b) the Mortgage Addenda have been registered and (c) there are no
further Encumbrances registered against each Vessel other than the relevant
Mortgages.

(d)       Confirmation
of class   A Class Certificate for hull and machinery confirming that each
relevant Vessel is classed with the highest class applicable to vessels of her
type with Lloyd's Register or such other classification society which is a
member of the International Association of Classification Societies as may be
acceptable to the Agent free of overdue recommendations affecting class.

(e)       Evidence
of insurance   Evidence that the relevant Vessels are insured in the manner
required by the Security Documents and that letters of undertaking will be
issued in the manner required by the Security Documents, together with (if
required by the Agent) the written approval of the Insurances by an insurance adviser
appointed by the Agent.

(f)        Valuation   
Two or three (as the case may be) valuations evidencing the Initial Aggregate
Market Value.

(g)       Managers'
Undertakings   The Managers' Undertakings together with notices of any
assignments contained in the same and evidence that those notices will be duly
acknowledged by the recipients.

(h)       Mandates   
Such duly signed forms of mandate, and/or other evidence of the opening of the Earnings
Accounts, as the Security Agent may require.

(i)        No disputes   The written confirmation of
the Borrowers that there is no dispute under any of the Relevant Documents as
between the parties to any such document.

(j)        Account Holder's confirmation   The
written confirmation of the Account Holder that the Earnings Accounts have been
opened with the Account Holder 

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and to its actual knowledge are free from
Encumbrances other than as created by or pursuant to the Security Documents and
rights of set off in favour of the Account Holder as account holder.

(k)       Master
Agreement   The Master Agreement.

(l)        Other Relevant Documents   Copies of each
of the Relevant Documents not otherwise comprised in the documents listed in
this Part I of 0.

3          Legal opinions

The
following legal opinions, each addressed to the Agent, or confirmation
satisfactory to the Agent that such opinions will be given:

(a)       a legal opinion of Stephenson Harwood
LLP, legal advisers to the Agent as to English law substantially in the form
distributed to the Lenders prior to signing this Agreement;

(b)       a legal opinion of the following legal
advisers to the Agent:

(i)        Ince&Co as to Marshall Islands
law; 

(ii)        Patton,
Moreno & Asvat as to Panamanian law and

(iii)       NautaDutilh N.V. as to Dutch law.  

4          Other documents and evidence

(a)       Utilisation Request   A duly completed
Utilisation Request.

(b)       Process
agent   Evidence that any process agent referred to in Clause 0 (Service
of process) and any process agent appointed under any other Finance
Document has accepted its appointment.

(c)       Other Authorisations   A copy
of any other Authorisation or other document, opinion or assurance which the
Agent considers to be necessary or desirable (if it has notified the Borrowers
accordingly) in connection with the entry into and performance of the
transactions contemplated by any Relevant Document or for the validity and
enforceability of any Relevant Document.

(d)       Financial statements    A copy of each of
the Original Financial Statements.

(e)       Fees    The Fee Letter and evidence that
the fees, costs and expenses then due from the Borrowers under Clause 0 (Fees)
and Clause 0 (Costs
and Expenses) have been paid or will be paid by the Utilisation Date.

(f)        "Know your customer"
documents   Such documentation and other evidence as is reasonably
requested by the Agent in order for the Lenders to comply with all necessary
"know your customer" or similar identification procedures in relation
to the transactions contemplated in the Finance Documents.

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(g)       "Know your customer"
procedure Satisfactory conclusion of the Lenders' internal "know your
customer" procedures.

(h)       Existing
indebtedness  Evidence that any Financial Indebtedness under the Other Facility
has been repaid in full.

 

 

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Part II

Conditions Subsequent

1          Evidence
of Borrower's title   Certificate of ownership and encumbrance (or
equivalent) issued by the Registrar of Ships (or equivalent official) of the relevant
flag confirming that 0 each
of Vessel D, Vessel E and Vessel F is permanently registered under that flag in
the ownership of each Borrower, 0
the Mortgages have been registered with first priority against Vessel D, Vessel
E and Vessel F and (c)
there are no further Encumbrances registered against each such Vessel.

2          Letters
of undertaking   Letters of undertaking in respect of the Insurances as
required by the Security Documents together with copies of the relevant
policies or cover notes or entry certificates duly endorsed with the interest
of the Finance Parties.

3          Acknowledgements
of notices   Acknowledgements of all notices of assignment and/or charge
given pursuant to any Security Documents received by the Agent pursuant to Part
I of this 0.

4          Legal
opinions   Such of the legal opinions specified in Part I of this 0 as
have not already been provided to the Agent.

5          Companies
Act registrations   Evidence that the prescribed particulars of any
Security Documents received by the Agent pursuant to Part I of this 0
have been delivered to the relevant Registry of Companies/Corporations within
the statutory time limit.

6          Master's
receipt   The master's receipt for the Mortgages.

7          Shares
Security documents   Any original documents pursuant to the Shares
Security, which have not already been provided to the Agent.

 

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Schedule 3         

Utilisation Request

From:   Kaben Shipping
Company Inc.

             Taroa Shipping Company Inc.

             Gala Properties Inc.

             Tuvalu Shipping Company
Inc.

             Jabat Shipping Company Inc.

             Bikini Shipping Company
Inc.  

 

To:     ABN AMRO Bank N.V.

Dated:

Dear Sirs

Kaben Shipping Company Inc., Taroa Shipping Company Inc.,
Gala Properties Inc., Tuvalu Shipping
Company Inc., Jabat Shipping Company Inc. and Bikini Shipping Company Inc. –
$52,885,000 Loan Agreement dated 27 June 2019 (the "Agreement")

1          We refer
to the Agreement.  This is a Utilisation Request. Terms defined in the
Agreement have the same meaning in this Utilisation Request unless given a
different meaning in this Utilisation Request.

2          We wish to
make Tranche B on the following terms:

Proposed Utilisation Date:                   [              ]
(or, if that is not a Business Day, the next Business Day)

Currency
of Tranche:                         dollars

Amount:                                         [              ]

Interest
Period:                                [              ]

Vessel:                                           [              ]

3          We confirm
that each condition specified in Clause 0 (Further
conditions precedent) is satisfied on the date of this Utilisation Request.

4          The proceeds of the Tranche should be paid as follows:

5          This Utilisation Request is irrevocable.

Yours faithfully

 

.......................................

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 140 

 

authorised signatory for

Kaben Shipping Company Inc.

Taroa Shipping Company Inc. 

Gala Properties Inc.

Tuvalu Shipping Company Inc.

Jabat Shipping Company Inc.

Bikini Shipping Company Inc.

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Schedule 4         

Form of Transfer Certificate

To:       ABN AMRO Bank N.V., as Agent 

From:   [The Existing Lender] (the "Existing
Lender") and [The New Lender] (the "New Lender") 

Dated:

Kaben Shipping Company Inc., Taroa Shipping Company Inc.,
Gala Properties Inc., Tuvalu Shipping
Company Inc., Jabat Shipping Company Inc. and Bikini Shipping Company Inc. –
$52,885,000 Loan Agreement dated 27 June 2019 (the "Agreement")

We refer to the Loan Agreement.  This agreement (the "Agreement")
shall take effect as a Transfer Certificate for the purposes of the Loan Agreement. 
Terms defined in the Loan Agreement have the same meaning in this Agreement
unless given a different meaning in this Agreement.

1          We refer
to Clause 0 (Procedure
for transfer) of the Loan Agreement:

(a)       The Existing Lender and the New Lender agree to
the Existing Lender transferring to the New Lender by novation and in
accordance with Clause 0 (Procedure
for transfer) all of the Existing Lender's rights and obligations under the
Loan Agreement and the other Finance Documents which relate to that portion of
the Existing Lender's Commitment(s) and participations in the Loan under the
Loan Agreement as specified in the Schedule.

(b)       The proposed Transfer Date is [                            ].

(c)       The Facility Office and address, fax number and
attention details for notices of the New Lender for the purposes of Clause 0 (Addresses)
of the Loan Agreement are set out in the Schedule.

2          The New
Lender expressly acknowledges the limitations on the Existing Lender's
obligations set out in Clause 0 (Limitation
of responsibility of Existing Lenders) of the Loan Agreement.

3          The New
Lender confirms, for the benefit of the Agent and without liability to any Obligor,
that it is:

(a)       [a Qualifying Lender other than a Treaty Lender;]

(b)       [a Treaty Lender;]

(c)       [not a Qualifying Lender].

[5]       [The New Lender confirms that the
person beneficially entitled to interest payable to that Lender in respect of
an advance under a Finance Document is either:

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 142 

 

(a)       a company
resident in the United Kingdom for United Kingdom tax purposes;

(b)       a partnership each member of which is:

(i)        a company so resident in the United Kingdom; or

(ii)        a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account in computing its chargeable profits
(within the meaning of section 19 of the CTA) the whole of any share of interest
payable in respect of that advance that falls to it by reason of Part 17 of the
CTA; or

(c)       a company not so resident in the United Kingdom
which carries on a trade in the United Kingdom through a permanent
establishment and which brings into account interest payable in respect of that
advance in computing the chargeable profits
(within the meaning of section 19 of the CTA) of that company.

[5]       [The New Lender confirms that it holds
a passport under the HMRC DT Treaty Passport scheme (reference number
[                   ]) and is tax resident in
[                   ],
so that interest payable to it by borrowers is generally subject to full
exemption from UK withholding tax, and requests that the Agent notify the
Borrowers that it wishes that scheme to apply to the Agreement.]

[6/7]     This Agreement
may be executed in any number of
counterparts and this has the same effect as if the signatures on the
counterparts were on a single copy of this Agreement.

[7/8]     This Agreement
and any non-contractual obligations
arising out of or in connection with it are governed by English law.

[8/9]     This Agreement has been entered into on the date stated at the beginning
of this Agreement.

Note:  The execution of this Transfer Certificate may not
transfer a proportionate share of the Existing Lender's interest in any Encumbrance created or expressed to be
created or evidenced by the Security Documents in all jurisdictions.  It is the responsibility of the
New Lender to ascertain whether any other documents or other formalities are
required to perfect a transfer of such a share in any jurisdiction and, if so,
to arrange for execution of those documents and completion of those
formalities.

 

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 143 

 

The Schedule

Commitment/rights
and obligations to be transferred

[insert
relevant details] 

[Facility
Office address, fax number and attention details for notices and account
details for payments,] 

[Existing Lender]                                              [New
Lender]

By:                                                               By:

This Agreement
is accepted as a Transfer
Certificate for the purposes of the Loan Agreement by the Agent and the
Transfer Date is confirmed as [                  
      ].

ABN AMRO Bank N.V.

By:                                                    

 

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 144 

 

Schedule 5         

Form of Assignment Agreement

To:       ABN AMRO Bank N.V. as Agent and as Security Agent and Kaben
Shipping Company Inc., Taroa Shipping Company Inc., Gala
Properties Inc.,   Tuvalu Shipping Company Inc., Jabat Shipping Company
Inc. and Bikini Shipping Company Inc. as Borrowers, for and on
behalf of each Obligor

From:   [the
Existing Lender] (the "Existing Lender") and [the New
Lender] (the "New Lender") 

Dated:

Kaben Shipping Company Inc., Taroa Shipping Company Inc.,
Gala Properties Inc., Tuvalu Shipping
Company Inc., Jabat Shipping Company Inc. and Bikini Shipping Company Inc. –
$52,885,000 Loan Agreement dated 27 June 2019 (the "Agreement")

We refer to the Loan Agreement.  This is an Assignment
Agreement.  This agreement (the "Agreement") shall take effect
as an Assignment Agreement for the purpose of the Loan Agreement.  Terms
defined in the Loan Agreement have the same meaning in this Agreement unless
given a different meaning in this Agreement.

1            We refer to Clause 0 (Procedure
for assignment) of the Loan Agreement:

(a)     The Existing
Lender assigns absolutely to the New Lender all the rights of the Existing
Lender under the Loan Agreement, the other Finance Documents and in respect of
any Encumbrance created or expressed to be created or evidenced by the Security
Documents which correspond to that portion of the Existing Lender's
Commitment(s) and participations in the Loan under the Loan Agreement as
specified in the Schedule.

(b)     The Existing
Lender is released from all the obligations of the Existing Lender which
correspond to that portion of the Existing Lender's Commitment(s) and
participations in the Loan under the Loan Agreement specified in the Schedule.

(c)      The New
Lender becomes a Party as a Lender and is bound by obligations equivalent to
those from which the Existing Lender is released under paragraph 0.

2            The proposed Transfer Date is [      ].

3            On the Transfer Date the New Lender becomes Party to the
relevant Finance Documents as a Lender.

4            The Facility Office and address, fax number
and attention details for notices of the New Lender for the purposes of Clause 0 (Addresses)
of the Loan Agreement are set out in the Schedule.

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 145 

 

5            The New Lender expressly
acknowledges the limitations on the Existing Lender's obligations set out in Clause
0 (Limitation
of responsibility of Existing Lenders) of the Loan Agreement.

6            The New Lender confirms, for the benefit of
the Agent and without liability to any Obligor, that it is:

(a)     [a Qualifying
Lender (other than a Treaty Lender);]

(b)     [a Treaty
Lender;]

(c)      [not a
Qualifying Lender].  

7            [The New Lender confirms that the person
beneficially entitled to interest payable to that Lender in respect of an
advance under a Finance Document is either:

(a)     a company
resident in the United Kingdom for United Kingdom tax purposes;  

(b)     a partnership
each member of which is:

(i)       a company
so resident in the United Kingdom; or

(ii)      a company
not so resident in the United Kingdom which carries on a trade in the United
Kingdom through a permanent establishment and which brings into account in
computing its chargeable profits (within the meaning of section 19 of the
CTA) the whole of any share of interest payable in respect of that advance that
falls to it by reason of Part 17 of the CTA; or

(c)      a company
not so resident in the United Kingdom which carries on a trade in the United
Kingdom through a permanent establishment and which brings into account
interest payable in respect of that advance in computing the chargeable profits
(within the meaning of section 19 of the CTA) of that company.]

8            [The New Lender confirms that it holds a
passport under the HMRC DT Treaty Passport scheme (reference number [  ]) and
is tax resident in [   ], so that interest payable to it by borrowers is
generally subject to full exemption from UK withholding tax and hereby notifies
the Borrowers that it wishes that scheme to apply to the Loan Agreement.]

 [9/10]    This
Agreement acts as notice to the Agent (on behalf of each Finance Party) and,
upon delivery in accordance with Clause 0 (Copy of Transfer Certificate or
Assignment Agreement to Borrowers), to the Borrowers (on behalf of each Obligor)
of the assignment referred to in this Agreement.

[10/11]   This
Agreement may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this
Agreement.

[11/12]   This
Agreement [and any non-contractual obligations arising out of or in connection
with it] [is/are] governed by English law.

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 146 

 

[12/13]   This Agreement has been entered into on the date
stated at the beginning of this Agreement.

Note:       The
execution of this Assignment Agreement may not transfer a proportionate share
of the Existing Lender's interest in any Encumbrance created or expressed to be
created or evidenced by the Security Documents in all jurisdictions.  It is the
responsibility of the New Lender to ascertain whether any other documents or
other formalities are required to perfect a transfer of such a share in any
jurisdiction and, if so, to arrange for execution of those documents and
completion of those formalities.

 

 

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 147 

 

The Schedule

Commitment/rights
and obligations to be transferred by assignment, release and accession

[insert
relevant details] 

[Facility
office address, fax number and attention details for notices and account
details for payments]

[Existing Lender]                                              [New
Lender]

By:                                                               By:

This Agreement is accepted as an
Assignment Agreement for the purposes of the Loan Agreement by the Agent and
the Transfer Date is confirmed as
[                    ].

Signature of this Agreement by the Agent
constitutes confirmation by the Agent of receipt of notice of the assignment
referred to in this Agreement, which notice the Agent receives on behalf of
each Finance Party.

ABN AMRO Bank N.V.

By:

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 148 

 

Schedule 6         

Form of Accession Deed

To:       ABN
AMRO Bank N.V. as Agent and as Security Agent for itself and each of the
other Finance Parties

From:   [Affiliate of a Borrower][Member
of the Group] and [Borrowers] 

Dated:

Dear Sirs

Kaben Shipping
Company Inc., Taroa Shipping Company Inc., Gala Properties Inc., Tuvalu Shipping Company Inc., Jabat Shipping
Company Inc. and Bikini Shipping Company Inc. – $52,885,000 Loan
Agreement dated 27 June 2019 (the "Agreement")

We refer to the Agreement.  This deed (the "Accession
Deed") shall take effect as an Accession Deed for the purposes of the
Agreement.  Terms defined in the Agreement have the same meaning in paragraphs
1-3 of this Accession Deed unless given a different meaning in this Accession
Deed.

1          [Affiliate
of a Borrower] agrees to become an Additional Guarantor and to be bound by
the terms of the Agreement and the other Finance Documents as an Additional
Guarantor pursuant to Clause 0 (Additional
Guarantors)] of the Agreement.  [Affiliate of a Borrower] is a
company duly incorporated under the laws of [name of relevant jurisdiction]
and is a limited liability company and registered number
[                   ].

2          [Affiliate
of a Borrower's] administrative details for the purposes of the Agreement
are as follows:

Address:

Fax
No.:

Attention:

This Accession Deed and any non-contractual
obligations arising out of or in connection with it are governed by English
law.

This Accession Deed has been signed on behalf of
the [Borrowers] and executed as a deed by [Affiliate of a Borrower] and
is delivered on the date stated above.

 

 

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 149 

 

[Affiliate of a Borrower]

[Executed as a Deed                           )

By: [Affiliate of a Borrower]                 )

 

_____________________________________ Director

 

_____________________________________ Director/Secretary]

 

 

or

 

 

	
  [Executed as a Deed

   

  By: [Affiliate of a Borrower] 

  	
   

  
	
   

  _____________________________

   

  	
  Signature of Director

   

  
	
  _____________________________

  in the presence of

  	
  Name of Director

   

  
	
  _____________________________

   

  	
  Signature of witness

   

  
	
  _____________________________

   

  	
  Name of witness

   

  
	
  _____________________________

   

  	
  Address of witness

   

  
	
  _____________________________

   

  	
   

  
	
  _____________________________

   

  	
   

  
	
  _____________________________

   

  	
   

  
	
  _____________________________

   

  	
  Occupation of witness]

  

 

 

The [Borrowers]

	
   

  _____________________________

   

  	
  [Borrowers] 

   

  

 

By:                                                    

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 150 

 

Schedule 7         

Form of Compliance Certificate 

To:       ABN
AMRO Bank N.V.

From:   Diana
Shipping Inc.

Dated:

Dear
Sirs

Kaben
Shipping Company Inc., Taroa Shipping Company Inc., Gala Properties Inc., Tuvalu Shipping Company Inc., Jabat Shipping
Company Inc. and Bikini Shipping Company Inc. – $52,885,000 Loan
Agreement dated 27 June 2019 (the "Agreement")

1          We refer
to the Agreement.  This is a Compliance Certificate.  Terms defined in the
Agreement have the same meaning when used in this Compliance Certificate unless
given a different meaning in this Compliance Certificate.

2          We confirm
that on [●]:  

Total Assets:

Market Value Adjusted Total Assets: [                    ]

Total Liabilities: [                    ]

Market Value Adjusted Net Worth: [                    ]

Market Value Adjusted Net Worth: [   ]% of Market Value
Adjusted Total Assets

Minimum Liquidity Amount: [                    ]

3          [We
confirm that no Default is continuing.]

 

	
  Signed:

  	
  ......................................................

  	
   

  
	
   

  	
  Chief
  Finance Officer

  	
   

  
	
   

  	
  of

  	
   

  
	
   

  	
  Diana
  Shipping Inc.

   

  	
   

  

 

 

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 151 

 

 

 

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 152 

 

Signatures

The Borrowers

Kaben Shipping Company Inc.                         )

                                                                    )

By:                                                               )

                                                                    )

Address: c/o Diana Shipping Services S.A.             )

              Pendelis 16, 175 64 Palaio Faliro,
Athens,  )

              Greece                                              )

Fax no.: +30 210 9470101                                 )

Department/Officer: Mr Andreas Michalopoulos        )

 

 

Taroa Shipping Company Inc.                          )

                                                                    )

By:                                                               )

                                                                    )

Address: c/o Diana Shipping Services S.A.             )

              Pendelis 16, 175 64 Palaio Faliro,
Athens,  )

              Greece                                              )

Fax no.: +30 210 9470101                                 )

Department/Officer: Mr Andreas Michalopoulos        )

 

 

Gala Properties Inc.                                       )

                                                                    )

By:                                                               )

                                                                    )

Address: c/o Diana Shipping Services S.A.             )

              Pendelis 16, 175 64 Palaio Faliro,
Athens,  )

              Greece                                              )

Fax no.: +30 210 9470101                                 )

Department/Officer: Mr Andreas Michalopoulos        )

 

 

Tuvalu Shipping Company
Inc.                         )

                                                                    )

By:                                                               )

                                                                    )

Address: c/o Diana Shipping Services S.A.             )

              Pendelis 16, 175 64 Palaio Faliro,
Athens,  )

              Greece                                              )

Fax no.: +30 210 9470101                                 )

Department/Officer: Mr Andreas Michalopoulos        )

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 153 

 

 

 

 

Jabat Shipping Company Inc.                           )

                                                                    )

By:                                                               )

                                                                    )

Address: c/o Diana Shipping Services S.A.             )

              Pendelis 16, 175 64 Palaio Faliro,
Athens,  )

              Greece                                              )

Fax no.: +30 210 9470101                                 )

Department/Officer: Mr Andreas Michalopoulos        )

 

 

Bikini Shipping Company Inc.                          )

                                                                    )

By:                                                               )

                                                                    )

Address: c/o Diana Shipping Services S.A.             )

              Pendelis 16, 175 64 Palaio Faliro,
Athens,  )

              Greece                                              )

Fax no.: +30 210 9470101                                 )

Department/Officer: Mr Andreas Michalopoulos        )

 

 

The Original Guarantor

Diana Shipping Inc.                                        )

                                                                    )

By:                                                               )

                                                                    )

Address: c/o Diana Shipping Services S.A.             )

              Pendelis 16, 175 64 Palaio Faliro,
Athens,  )

              Greece                                              )

Fax no.: +30 210 9470101                                 )

Department/Officer: Mr Andreas Michalopoulos        )

 

 

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 154 

 

The Agent

ABN AMRO Bank N.V.                          )

                                                         )

By:                                                    )

                                                         )

Address: Gustav Mahlerlaan 10,                )

1082 PP Amsterdam, The Netherlands        )

Fax no.: +31 (0) 10 401 53 23                 )

Department/Officer: Global
Transportation      ) 

and
Logistics                                         )

 

 

The Security Agent

ABN AMRO Bank N.V.                          )

                                                         )

By:                                                    )

                                                         )

Address: Gustav Mahlerlaan 10,                )

1082 PP Amsterdam, The Netherlands        )

Fax no.: +31 (0) 10 401 53 23                 )

Department/Officer: Global
Transportation      ) 

and
Logistics                                         )

 

The Original Lenders

ABN AMRO Bank N.V.                          )

                                                         )

By:                                                    )

                                                         )

Address: Gustav Mahlerlaan 10,                )

1082 PP Amsterdam, The Netherlands        )

Fax no.: +31 (0) 10 401 53 23                 )

Department/Officer: Global
Transportation      ) 

and
Logistics                                         )

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 155 

 

The Swap
Provider

ABN AMRO Bank N.V.                          )

                                                         )

By:                                                    )

                                                         )

Address: Gustav Mahlerlaan 10,                )

1082 PP Amsterdam, The Netherlands        )

Fax no.: +31 (0) 10 401 53 23                 )

Department/Officer: Global
Transportation      ) 

and
Logistics                                         )

 

 

 PIRAEUS\3125851.2                                                                                                                                                                               Page
 156Dated         May 2020

 

KNOX SHIPPING
COMPANY INC.

BOKAK SHIPPING
COMPANY INC.

JEMO SHIPPING
COMPANY INC.

GUAM SHIPING
COMPANY INC.

PALAU SHIPPING
COMPANY INC.

MAKUR SHIPPING
COMPANY INC.

MANDARINGINA
INC. and

VESTA COMMERCIAL, S.A.

as joint and several Borrowers

and

THE BANKS AND
FINANCIAL INSTITUIONS

listed in Schedule 1

as Lenders

and

NORDEA BANK ABP

as Swap Bank

and

Nordea Bank Abp, filial i Norge

as Agent, Security Trustee and Lead Arranger

 

Loan Agreement

relating to a
term loan facility of up to US$55,848,000

to re-finance existing indebtedness

 

 

    

Index

Clause                                                                                                                                                                                  Page

1               Interpretation.................................................................................................................... 3

2               Facility............................................................................................................................. 25

3               Position of the Lenders, the Swap and the
Majority Lenders............................................... 26

4               Drawdown....................................................................................................................... 27

5               Interest........................................................................................................................... 29

6               Interest Periods............................................................................................................... 31

7               Default Interest................................................................................................................ 32

8               Repayment and Prepayment............................................................................................ 33

9               Conditions Precedent....................................................................................................... 37

10            Representations and Warranties....................................................................................... 38

11            General Undertakings....................................................................................................... 42

12            Corporate Undertakings................................................................................................... 47

13            Insurance......................................................................................................................... 48

14            Ship Covenants................................................................................................................ 54

15            Security Cover.................................................................................................................. 60

16            Payments and Calculations............................................................................................... 62

17            Application of Receipts..................................................................................................... 64

18            Application of Earnings..................................................................................................... 65

19            Events of Default.............................................................................................................. 66

20            Fees and Expenses........................................................................................................... 72

21            Indemnities..................................................................................................................... 74

22            No Set-off or Tax Deduction.............................................................................................. 76

23            Illegality, etc.................................................................................................................... 79

24            Increased Costs................................................................................................................ 80

25            Set off............................................................................................................................. 82

26            Transfers and Changes in Facility Offices........................................................................... 83

27            Variations and waivers..................................................................................................... 87

28            Notices............................................................................................................................ 89

29            Joint and Several Liability................................................................................................. 91

30            Supplemental.................................................................................................................. 92

31            Bail-In.............................................................................................................................. 93

32            Law and Jurisdiction......................................................................................................... 93

 

Schedules

 

Schedule 1 Lenders
and Commitments.......................................................................................... 95

Schedule
2 Drawdown Notice....................................................................................................... 96

Schedule
3 Condition Precedent Documents................................................................................. 98

Part
A.................................................................................................................................... 98

Part
B.................................................................................................................................. 100

Schedule
4 Transfer Certificate.................................................................................................... 102

Schedule
5 Designation Notice.................................................................................................... 106

 

Execution

 

 

Execution Pages......................................................................................................................... 108

 

 

THIS AGREEMENT is made on         May 2020

Parties

(1)              
 KNOX SHIPPING
COMPANY INC., BOKAK
SHIPPING COMPANY INC., JEMO SHIPPING COMPANY INC., GUAM SHIPPING
COMPANY INC., PALAU SHIPPING COMPANY INC., MAKUR SHIPPING COMPANY
INC., MANDARINGINA INC. and VESTA COMMERCIAL, S.A., as joint
and several borrowers (together, the "Borrowers") 

(2)              
 THE BANKS AND
FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders

(3)              
 NORDEA BANK
ABP, as Swap Bank

(4)              
 NORDEA BANK ABP,
FILIAL I NORGE, as
Agent

(5)              
 NORDEA BANK
ABP, FILIAL I NORGE, as Lead Arranger

(6)              
 NORDEA BANK
ABP, FILIAL I NORGE, as Security Trustee

Background

(A)             
 The Lenders have
agreed to make available to the Borrowers a term loan facility of up to the
lesser of (i) US$55,848,000, (ii) the Existing Indebtedness and (ii) 65 per
cent. of the aggregate Initial Market Value of the Ships for the purpose of
re-financing the Existing Indebtedness (as defined below).

(B)             
 The Swap Bank
has agreed to enter into interest rate swap transactions with the Borrowers
from time to time to hedge the Borrowers' exposure under this Agreement to
interest rate fluctuations.

(C)             
 The Lenders and
the Swap Bank have agreed to share pari passu in the security to be granted to
the Security Trustee pursuant to this Agreement.

Operative
Provisions

1                  
 Interpretation  

1.1            
 Definitions

Subject to Clause 1.5, in this Agreement:

"Account
Pledges" means, together, the Earnings Account Pledges in the
Agreed Form and, in the singular, means any of them.

"Affected
Lender" has the meaning given in Clause 5.7.  

 3                                 EUROPE/66436786v5  

 

"Agency and Trust Deed" means the agency and
trust deed dated the same date as this Agreement and made between the same
parties.

"Agent"
means Nordea Bank Abp, filial i Norge, acting in such capacity through its
office at Essendrops gate 7, Postboks, 1166 Sentrum, 0107 Oslo, 920058817 MVA,
Norway, or any successor of it appointed under clause 4.7 of the Agency and
Trust Deed.

"Agreed
Form" means in relation to any document, that document in the form
approved in writing by the Agent (acting on the instructions of all the
Lenders) or as otherwise approved in accordance with any other approval
procedure specified in any relevant provision of any Finance Document.

"Annex
VI" means Annex VI of the Protocol of 1997 to amend the
International Convention for the Prevention of Pollution from Ships 1973
(Marpol), as modified by the Protocol of 1978 relating thereto.

"Approved
Broker" means Arrow Sale & Purchase (UK) Limited, Breamar
Seascope Limited, H. Clarkson & Company Limited, Fearnleys AS, Maersk
Brokers K.S., Simpson Spence & Young (London) Ltd. and VesselsValue.Com or
any other any reputable sale and purchase broker approved and appointed by the
Agent subject to the prior written consent of the Borrowers.

"Approved
Flag" means the Marshall Islands flag or any other flag that the
Agent may approve that the Ship is registered (such approval not to be
unreasonably withheld or delayed).  

"Approved
Flag State" means the Republic of the Marshall Islands or any other
state in which the Agent may, at the request of the Borrowers, approve that a
Ship is registered (such approval not to be unreasonably withheld or delayed).

"Approved
Manager" means, in relation to each Ship: 

(a)              
 Diana
Shipping Services S.A., a company incorporated and existing under the laws of
Panama having its registered office at Edificio Universal, Piso 12, Avenida
Federico Boyd, Panama, Republic of Panama and maintaining an office at 16
Pendelis Street, 175 64, Palaio Faliro, Greece; or

(b)              
 in relation
to any Ship in respect of which the relevant Borrower exercises its rights
under Clause 14.22, Diana Wilhelmsen Management Limited, a
company incorporated and existing under the laws of the Republic of Cyprus
having its registered office at 21 Vasili Michailidi Street, 3026 Limassol,
Cyprus; or

(c)               
 any other
company which the Agent may, with the authorisation of the Lenders, approve
from time to time as the technical and/or commercial manager of each Ship (such
approval not to be unreasonably withheld or delayed).

"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.

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

 4                                 EUROPE/66436786v5  

 

(a)              
 31 May 2020 (or such later date as the Agent
may, with the authorisation of the Lenders, agree with the Borrowers); or

(b)              
 if earlier, the
date on which the Total Commitments are fully borrowed, cancelled or terminated.

"Bail-In
Action" means the exercise of any Write-down and Conversion Powers.

"Bail-In
Legislation" means:

(a)              
 in relation to
an EEA Member Country which has implemented, or which at any time implements,
Article 55 BRRD, 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 state other than such an EEA Member Country or (to the extent that the
United Kingdom is not such an EEA Member Country) the United Kingdom, 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"
means any balloon instalment referred to in Clause 8.1.

"Basel
III" means, together:

(a)              
 the agreements
on capital requirements, a 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".

"Bokak"
means Bokak Shipping Company Inc., a corporation incorporated in the Republic
of the Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands.

"Borrower"
means each of Knox, Bokak, Jemo, Guam, Palau, Makur, Mandaringina and Vesta,
and in the plural means, all of them.

"Business
Day" means a day on which banks are open in London, Athens, Oslo
and, in respect of a day on which a payment is required to be made under a
Finance Document, also in New York City.

 5                                 EUROPE/66436786v5  

 

"Charter" means, in relation to each Ship, any
time charter or other contract of employment in respect of that Ship with a
duration exceeding (or capable of exceeding) 18 months or any bareboat charter
in respect of such Ship and, in the plural, means all of them.

"Charterer"
means any entity which has entered into, or will enter into, a Charter with a
Borrower in respect of the Ship owned by it.

"Charterparty
Assignment" means, in relation to each Charter, a specific deed of
assignment of the rights of the Borrower who is a party to that Charter
executed or to be executed by that Borrower in favour of the Security Trustee
in the Agreed Form and, in the plural, means all of them.

"Code"
means the US Internal Revenue Code of 1986.

"Commitment"
means, in relation to a Lender, the amount set opposite its name in Schedule 1, or, as the case may require, the amount
specified in the relevant Transfer Certificate, as that amount may be reduced,
cancelled or terminated in accordance with this Agreement (and "Total
Commitments" means the aggregate of the Commitments of all the
Lenders).

"Confirmation"
and "Early Termination Date", in
relation to any continuing Designated Transaction, have the meanings given in
the Master Agreement.

"Contractual
Currency" has the meaning given in Clause 21.5.

"Contribution"
means, in relation to a Lender, the part of the Loan which is owing to that
Lender.

"Corporate
Guarantee" means a corporate guarantee of the obligations of the
Borrowers under this Agreement, the Master Agreement and the other Finance
Documents.

"Corporate
Guarantor" mean Diana Shipping Inc., a corporation domesticated in
the Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands.

"CRD
IV" means:

(a)              
 Regulation (EU)
No 575/2013 of the European Parliament and of the Council of 26 June 2013 on
prudential requirements for credit institutions and investment firms and
amending regulation (EU) No. 648/2012, as amended by
Regulation (EU) 2019/876;

(b)              
 Directive
2013/36/EU of the European Parliament and of the Council of 26 June 2013 on
access to the activity of credit institutions and the prudential supervision of
credit institutions and investment firms, amending Directive 2002/87/EC and
repealing Directives 2006/48/EC and 2006/49/EC, as amended by Directive (EU) 2019/878;
and

(c)               
 any other law or
regulation which implements Basel III.

"Creditor Party"
means the Agent, the Lead Arranger, the Security Trustee, the Swap Bank or any
Lender, whether as at the date of this Agreement or at any later time.

"Cut-Off Date" has
the meaning given in Clause 8.3.

 6                                 EUROPE/66436786v5  

"Designated
Transaction" means a Transaction which fulfils the following
requirements:

(a)              
 it is entered
into by the Borrowers pursuant to the Master Agreement with the Swap Bank;

(b)              
 its purpose is
the hedging of all or part of the Borrowers' exposure to fluctuations in LIBOR
under this Agreement for a period expiring no later than the Final Maturity
Date; and

(c)               
 it is designated
by the Borrowers, by delivery by the Borrowers to the Agent of a notice of
designation in the form set out in Schedule 5, as a Designated Transaction for the purposes
of the Finance Documents.

"Dollars"
and "$" means the lawful currency
for the time being of the United States of America.

"Drawdown
Date" means, in relation to the Loan, the date requested by the
Borrowers for the Loan to be advanced, or (as the context requires) the date on
which the Loan is actually advanced.

"Drawdown
Notice" means a notice in the form set out in Schedule 2 (or in any other form which the Agent approves
or reasonably requires).

"Earnings"
means, in relation to a Ship, all moneys whatsoever which are now, or later
become, payable (actually or contingently) to the relevant Borrower owning that
Ship or the Security Trustee and which arise out of the use or operation of
that Ship, including (but not limited to):

(a)              
 except to the
extent that they fall within paragraph (b);

(i)                
 all freight,
hire and passage moneys;

(ii)              
 compensation
payable to a Borrower or the Security Trustee in the event of requisition of a
Ship for hire;

(iii)             
 remuneration for
salvage and towage services;

(iv)             
 demurrage and
detention moneys;

(v)              
 damages for
breach (or payments for variation or termination) of any charterparty or other
contract for the employment of a Ship; and

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

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

"Earnings
Account" means an account in the name of each Borrower with the
Agent designated "[name of the Borrower] - Earnings Account",
or any other account which is designated by the Agent as an Earnings Account
for the purposes of this Agreement.

 

"Earnings Account Pledge" means, in respect of
each Earnings Account, a deed creating security in the Agreed Form.  

"EEA
Member Country" means any member state of the European Union,
Iceland, Liechtenstein and Norway.

"Environmental
Claim" means:

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

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

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

"Environmental
Incident" means:

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

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

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

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

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

"EU
Bail-In Legislation Schedule" means the document described as such
and published by the Loan Market Association (or any successor organisation)
from time to time.

 8                                 EUROPE/66436786v5  

 

"EU Ship Recycling
Regulation" means Regulation (EU) No 1257/2013 of the European
Parliament and of the Council of 20 November 2013 on ship recycling and
amending Regulation (EC) No 1013/2006 and Directive 2009/16/EC. 

"Event of
Default" means any of the events or circumstances described in Clause
19.1.

"Executive
Order"   means an order issued by
the president of the United States of America.

"Existing
Indebtedness" means, at any date, the outstanding Financial
Indebtedness of the Borrowers under a loan agreement dated 17
March 2015 and made between (i) the Borrowers as joint and several borrowers,
(ii) the banks and financial institutions listed as lenders therein, (iii)
Nordea Bank Finland plc as swap bank and (iv) Nordea Bank AB, London Branch as
agent, lead arranger and security trustee in respect of a loan facility of
(originally) up to $110,000,000 (as such loan agreement may have been further
amended, supplemented, novated and/or restated from time to time "Previous
Loan Agreement") .

"Existing
Indebtedness Grace Period" means the period commencing on the date
of this Agreement and ending on the Drawdown Date.  

"Extended Maturity
Date" means the date falling on the third anniversary of the
Drawdown Date.

"Extension
Request" means an Initial Extension Request or a Subsequent
Extension Request.

"Facility
Office" means the office or offices notified by a Lender to the
Agent in writing on or before the date it becomes a Lender (or, following that
date, by not less than 5 Business Days' written notice) as the office or
offices through which it will perform its obligations under this Agreement.

"FATCA"
means:

(a)              
 sections 1471 to
1474 of the Code or any associated regulations;

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

(c)               
 any agreement
pursuant to the implementation of any treaty, law or regulation referred to in
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: 

(a)              
 if no Initial
Extension Request has been served within the time frame set out in paragraph (a) of Clause 8.3 or an Initial Extension Request has been
served but has been refused by all Lenders, the Initial Maturity Date; or

 9                                 EUROPE/66436786v5  

 

(b)              
 if an Initial
Extension Request has been served under paragraph (a) of Clause 8.3 and has been accepted by the Lenders (or any
of them), the Extended Maturity Date; or

(c)               
 if a Subsequent
Extension Request has been served under paragraph (b) of Clause 8.3 and has been accepted by the Lenders (or any
of them), the date falling on the fourth anniversary of the Drawdown Date.

"Finance
Documents" means:  

(a)              
 this Agreement;

(b)              
 the Agency and
Trust Deed;

(c)               
 the Master
Agreement;

(d)              
 the Master
Agreement Assignment;

(e)              
 the Corporate
Guarantee;

(f)                
 the General
Assignments;

(g)              
 the Mortgages;

(h)              
 the Accounts
Pledges;

(i)                
 the Shares
Pledges;

(j)                
 the Initial
Charter Assignment;

(k)              
 the Manager's
Undertakings;  

(l)                
 any Charterparty
Assignment; and

(m)            
 any other
document (whether creating a Security Interest or not) which is executed at any
time by any Borrower, the Corporate Guarantor, the Approved Manager or any
other person as security for, or to establish any form of subordination or
priorities arrangement in relation to, any amount payable to the Lenders and/or
the Swap Bank under this Agreement or any of the other documents referred to in
this definition.

"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 or dematerialised
equivalent made available to the debtor;  

 10                                 EUROPE/66436786v5  

 

(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
foreign exchange transaction, 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 paragraphs (a) to (e) if the references to the debtor referred to
the other person.

"Financial
Year" means, in relation to the Corporate Guarantor, each period of
1 year commencing on 1 January in respect of which its annual audited accounts
are or ought to be prepared.

"Fleet
Vessels" means all of the vessels (including, but not limited to,
the Ships) from time to time wholly owned by members of the Group (each a
"Fleet Vessel"). 

"GAAP"
means, at any time, the most recent and updated generally accepted accounting
principles in the United States of America.

"General
Assignment" means, in relation to each Ship, a first priority
general assignment of the Earnings, the Insurances and any Requisition
Compensation in the Agreed Form and, in the plural, means all of them.

"Group"
means the Corporate Guarantor and all its subsidiaries (including, but not
limited to, the Borrowers) from time to time during the Security Period and
"member of the Group" shall be construed accordingly.  

"Guam"
means Guam Shipping Company Inc., a corporation incorporated in the Republic of
the Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands.

"Hong Kong
Convention" means the International Maritime Organization's
convention for the Safe and Environmentally Sound Recycling of Ships, 2009
together with the guidelines to be issued by the International Maritime Organization
in connection with such convention.

"IACS"
means the International Association of Classification Societies.  

"Initial Charter" means the time
charterparty dated 22 May 2019 and made between Bokak as owner and the Initial
Charterer as charter in respect of Ship B and for a period of at least 19
months and at a minimum daily charter hire rate of $15,000.

"Initial
Charter Assignment" means an assignment of the rights of Bokak
under the Initial Charter in favour of the Security Trustee in the Agreed Form.

"Initial
Charterer" means Koch Shipping Pte. Ltd., a corporation incorporated in Singapore
with registered office at 112 Robinson road, Singapore, 068902, Singapore.

 11                                 EUROPE/66436786v5  

 

"Initial
Extension Request" has the meaning
given in Clause 8.3.

"Initial Market
Value" means, in respect of a Ship, the Market Value as determined
by the valuations referred to in Schedule 3, Part B, paragraph 6.

"Initial Maturity
Date" means the date falling on the second anniversary of the
Drawdown Date.

"Insurances"
means, in relation to a Ship:

(a)              
 all policies and
contracts of insurance, including entries of the Ship in any protection and
indemnity or war risks association, effected in respect of the Ship, its
Earnings or otherwise in relation to the Ship whether before, on or after the
date of this Agreement; and  

(b)              
 all rights and
other assets relating to, or derived from, any of the foregoing, including any
rights to a return of a premium and any rights in respect of any claim whether
or not the relevant policy, contract of insurance or entry has expired on or
before the date of this Agreement.

"Interest
Period" means a period determined in accordance with Clause 6.

"Inventory of Hazardous
Material" means, in relation to each Ship, an inventory certificate or
statement of compliance (as applicable) issued by the Ship's classification
society which is supplemented by a list of any and all materials known to be
potentially hazardous utilised in the construction of such Ship pursuant to the
requirements of the EU Ship Recycling Regulation. 

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

"ISPS
Code" means the International Ship and Port Facility Security Code
as adopted by the International Maritime Organisation, as the same may be
amended or supplemented from time to time.

"ISSC"
means a valid and current International Ship Security Certificate issued under
the ISPS Code.  

"Jemo"
means Jemo Shipping Company Inc., a corporation incorporated in the Republic of
the Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands.

"Knox"
means Knox Shipping Company Inc., a corporation incorporated in the Republic of
the Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands.

"Lead
Arranger" means Nordea Bank Abp, filial i Norge, acting in such
capacity through its office at Essendrops gate 7, Postboks, 1166 Sentrum, 0107
Oslo, 920058817 MVA, Norway. 

 12                                 EUROPE/66436786v5  

 

"Lender"
means a bank or financial institution listed in Schedule 1 and acting through its branch indicated in Schedule 1 (or through another branch notified to the
Agent under Clause 26.14) or its transferee, successor or assign and,
in the plural, means all of them.

"LIBOR"
means, in relation to any period for which an interest rate is to be determined
under any provision of a Finance Document:

(a)              
 the applicable
Screen Rate; or

(b)              
 if no Screen
Rate is available for that period, the rate per annum determined by the Agent
to be the arithmetic mean of the rates, as supplied to the Agent at its
request, quoted by the Reference Bank to leading banks in the London Interbank
Market,

as of 11 a.m. (London time) on the Quotation Date for that period
for the offering of deposits in the relevant currency and for a period
comparable to that period.

"Loan"
means the principal amount for the time being outstanding under this Agreement.

"Major
Casualty" means, in relation to a Ship, any casualty to that Ship
in respect of which the claim or the aggregate of the claims against all
insurers, before adjustment for any relevant franchise or deductible, exceeds
$1,000,000 or the equivalent in any other currency.  

"Majority
Lenders" means:  

(a)              
 before the Loan
has been advanced, Lenders whose Commitments total 66.67 per cent. of the Total Commitments; and  

(b)              
 after the Loan
has been advanced, Lenders whose Contributions total 66.67 per cent. of the Loan.

"Makur"
means Makur Shipping Company Inc., a corporation incorporated in the Republic
of the Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands.

"Management
Agreement" means, in relation to each Ship, an agreement made or to
be made between the Borrower who is the owner of such Ship and the Approved
Manager in respect of the commercial and technical management of such Ship in
the Agreed Form and, in the plural, means all of them.

"Manager's
Undertaking" means, in relation to each Ship, a letter of
undertaking executed or to be executed by the Approved Manager in favour of the
Security Trustee in the Agreed Form agreeing certain matters in relation to the
management of that Ship and subordinating the rights of the  Approved Manager
against that Ship and the Borrower which is the owner thereof to the rights of
the Security Trustee under the Finance Documents and, in the plural, means all
of them.

"Mandaringina" means Mandarigina Inc., a
corporation incorporated in the Republic of the Marshall Islands whose
registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro MH96960, The Marshall Islands.

 13                                 EUROPE/66436786v5  

 

"Margin" means 2.25 per cent. per annum.

"Market
Value" means, in relation to each Ship (and each other Fleet
Vessel), the market value thereof determined in accordance with Clause 15.3.

"Master
Agreement" means the master agreement (on the 2002 ISDA Master
Agreement form) in the Agreed Form made or to be made between (i) the Borrowers
and (ii) the Swap Bank and includes all Designated Transactions from time to
time entered into, and all Confirmations of such Designated Transactions from
time to time exchanged, under such master agreement.

"Master
Agreement Assignment" means the assignment of the Master Agreement
in the Agreed Form.

"Mortgage"
means, in relation to a Ship, the first preferred Marshall Islands ship
mortgage on that Ship in the Agreed Form and, in the plural, means all of them.

"Negotiation
Period" has the meaning given in Clause 5.10.

"Notifying
Lender" has the meaning given in Clause 23.1 or Clause 24.1 as the context requires.

"Palau"
means Palau Shipping Company Inc., a corporation incorporated in the Republic
of the Marshall Islands whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro MH96960, The Marshall Islands.

"Participating 
Member  State"
means any member state of the European Union that has the euro as its lawful
currency in accordance with legislation of the European Union relating to
Economic and Monetary Union.

"Party" 
means a party to this Agreement.

"Payment
Currency" has the meaning given in Clause 21.5.

"Permitted
Security Interests" means:

(a)              
 Security
Interests created by the Finance Documents;

(b)              
 for the duration
of the Existing Indebtedness Grace Period only, Security Interests created in
respect of the Existing Indebtedness;

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

(d)              
 liens for
salvage;

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

(f)                
 liens for master's
disbursements incurred in the ordinary course of trading and any other lien
arising by operation of law or otherwise in the ordinary course of the
operation, repair or maintenance of a Ship, provided such liens do not secure
amounts more than 30 days 

 14                                 EUROPE/66436786v5  

overdue (unless the overdue amount is being
contested by the relevant Borrower in good faith by appropriate steps) and
subject, in the case of liens for repair or maintenance, to Clause 14.13(g);

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

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

"Pertinent
Document" means:

(a)              
 any Finance
Document;

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

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

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

"Pertinent
Jurisdiction", in relation to a company, means:

(a)              
 England and
Wales;

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

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

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

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

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

"Pertinent
Matter" means:

 

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

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

and covers any such transaction, matter or statement, whether
entered into, arising or made at any time before the signing of this Agreement
or on or at any time after that signing.

"Poseidon
Principles" means the financial industry framework for assessing
and disclosing the climate alignment of ship finance portfolios published in
June 2019 as the same may be amended or replaced from time to time.

"Potential
Event of Default" means an event or circumstance which, with the
giving of any notice, the lapse of time, a determination of the Lenders and/or
the satisfaction of any other condition, would constitute an Event of Default.

"Quotation
Date" means, in relation to any period for which an interest rate
is to be determined under any provision of a Finance Document, the day which is
2 Business Days before the first day of that period, unless market practice
differs in the London Interbank Market for a currency, in which case the
Quotation Date will be determined by the Agent in accordance with market
practice in the London Interbank Market (and if quotations would normally be
given by leading banks in the London Interbank Market on more than one day, the
Quotation Date will be the last of those days).

"Reference
Bank" means, subject to Clause 26.16, the London branch of Nordea Bank Abp, filial i
Norge and any of its successors.  

"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
Person" has the meaning given in Clause 19.9.

"Repayment 
Date" means a date on which a repayment is required to be made
under Clause 8.

"Repayment Instalment"
means any repayment instalment referred to in Clause 8.1.

"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; or

(ii)              
 any Relevant
Nominating Body,

 16                                 EUROPE/66436786v5  

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 Majority Lenders and the Borrowers, generally accepted in the
international or any relevant domestic syndicated loan markets as the
appropriate successor to a Screen Rate; or

(c)               
 in the opinion
of the Majority Lenders and the Borrowers, 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 and Conversion Powers.

"Restricted Party" means a person:

(a)              
 that is listed
on any Sanctions List (whether designated by name or by reason of being
included in a class of person);

(b)              
 that is
domiciled, registered as located or having its main place of business in, or is
incorporated under the laws of, a country which is subject to Sanctions Laws
which attach legal effect to being domiciled, registered as located or having
its main place of business in such country; or

(c)               
  that is directly or indirectly
owned or controlled by a person referred to in (a) and/or
(b) above ; or 

(d)              
 with which any
Lender is prohibited from dealing or otherwise engaging in a transaction with
by any Sanctions Laws.

"Sanctions
Authority" means the Norwegian State, the United Nations,
the European Union, the member states of the European Union, the United
Kingdom, the United States of America and any authority, official institution or agency acting on behalf of any of them in connection
with Sanctions Laws.  

"Sanctions Laws" means the economic or financial
sanctions laws and/or regulations, trade embargoes, prohibitions, restrictive
measures, decisions, Executive Orders or notices from regulators implemented,
adapted, imposed, administered, enacted and/or enforced by any Sanctions
Authority.

"Sanctions
List" means any list
of persons or entities published in connection with Sanctions Laws by or on
behalf of any Sanctions Authority.

"Screen
Rate" means, in relation to LIBOR, ICE Benchmark Administration
Limited Interest Settlement Rate for Dollars for the relevant period displayed
on the appropriate page of the 

 

Telerate or Reuters screen.  If the
agreed page is replaced or service ceases to be available, the Agent may
specify another page or service displaying the appropriate rate after
consultation with the Borrowers and the Lenders and, for the purpose of this
definition, references to ICE Benchmark Administration Limited shall be
construed to include any other person who takes over the administration of the
London interbank offered rate.

"Screen Rate Contingency
Period" means 10 Business Days.

"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 Majority Lenders 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

(c)               
 the
administrator of that Screen Rate determines that that Screen Rate should be
calculated in accordance with its reduced submissions or other contingency or
fallback policies or arrangements and either:

(i)                
 the circumstance(s)
or event(s) leading to such determination are not (in the opinion of the
Majority Lenders and the Borrowers) temporary; or

(ii)              
 that Screen Rate
is calculated in accordance with any such policy or arrangement for a period no
less than the Screen Rate Contingency Period; or

 182                                 EUROPE/66436786v5    

 

(d)              
 in the opinion
of the Majority Lenders and the Borrowers, that Screen Rate is otherwise no
longer appropriate for the purposes of calculating interest under this
Agreement.

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

"Security
Interest" means:  

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

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

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

"Security
Party" means the Corporate Guarantor, the Approved Manager and any
other person (except a Creditor Party) who, as a surety or mortgagor, as a
party to any subordination or priorities arrangement, or in any similar
capacity, executes a document falling within the last paragraph of the
definition of "Finance Documents". 

"Security
Period" means the period commencing on the date of this Agreement
and ending on the date on which the Agent notifies the Borrowers, the Security
Parties and the other Creditor Parties that:  

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

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

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

(d)              
 the Agent, the
Security Trustee and the Majority Lenders do not consider that there is a
significant risk that any payment or transaction under a Finance Document would
be set aside, or would have to be reversed or adjusted, in any present or
possible future bankruptcy of the Borrowers or a Security Party or in any
present or possible future proceeding relating to a Finance Document or any
asset covered (or previously covered) by a Security Interest created by a
Finance Document.

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"Security Trustee" means Nordea Bank Abp,
filial i Norge, acting in such capacity through its office at Essendrops gate
7, Postboks, 1166 Sentrum, 0107 Oslo, 920058817 MVA, Norway, or any successor
of it appointed under clause 5 of the Agency and Trust Deed.

"Servicing
Bank" means the Agent or the Security Trustee.

"Shares
Pledge" means, in relation to each Borrower, a deed executed by the Corporate Guarantor, creating security over the share
capital of that Borrower in the Agreed Form and, in the plural, means all of
them.

"Ship
A" means the 2005-built Capesize bulk carrier vessel of 180,235
deadweight tonnage registered in the ownership of Knox under the Marshall
Islands flag under IMO No. 9324992 with the name of "ALIKI".

"Ship
B" means the 2005-built Capesize bulk carrier vessel of 177,243
deadweight tonnage currently registered in the ownership of Bokak under the
Marshall Islands flag under IMO No. 9331464 with the name of
"BALTIMORE".

"Ship
C" means the 2010-built Panamax bulk carrier vessel of 81,297
deadweight tonnage registered in the ownership of Jemo under the Marshall
Islands flag under IMO No. 9397731 with the name of "LETO".

"Ship
D" means the 2012-built Post-Panamax bulk carrier vessel of 98,697
deadweight tonnage registered in the ownership of Guam under the Marshall
Islands flag under IMO No. 9599157 with the name of "AMPHITRITE".

"Ship
E" means the 2012-built Post-Panamax bulk carrier vessel of 98,704
deadweight tonnage registered in the ownership of Palau under the Marshall
Islands flag under IMO No. 9598660 with the name of "POLYMNIA".

"Ship
F" means the 2010-built bulk carrier vessel of 82,117 deadweight
tonnage registered in the ownership of Makur under the Marshall Islands flag
under IMO No. 9422940 with the name of "MYRSINI".

"Ship
G" means the 2005-built bulk carrier vessel of 76,225 deadweight
tonnage currently registered in the ownership of Mandaringina under the
Marshall Islands flag under IMO No. 9286968 with the name of "MELIA".

"Ship
H" means the 2006-built bulk carrier vessel of 74,381 deadweight
tonnage currently registered in the ownership of Vesta under the Marshall
Islands flag under IMO No. 9299616 with the name of "CORONIS".

"Ships"
means, together, Ship A, Ship B, Ship C, Ship D, Ship E, Ship F, Ship G and
Ship H and, in the singular, means any of them.

"Statement
of Compliance" means a Statement of Compliance related to fuel oil
consumption pursuant to regulations 6.6 and 6.7 of Annex VI.

 202                                 EUROPE/66436786v5    

 

"Subsequent Extension Request" has the meaning given
in Clause 8.3.

"Swap Bank"
means Nordea Bank Abp.

"Swap
Exposure" means, as at any relevant date, the amount certified by
the Swap Bank to the Agent to be the aggregate net amount in Dollars which
would be payable by the Borrowers to the Swap Bank under (and calculated in
accordance with) section 6(e) (Payments on Early Termination) of the
Master Agreement if an Early Termination Date had occurred on the relevant date
in relation to all outstanding Designated Transactions.

"Total
Loss" means, in relation to a Ship:

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

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

(c)               
 any condemnation
of the Ship by any tribunal or by any person or person claiming to be a
tribunal; and

(d)              
 any arrest,
capture, seizure or detention of the Ship (including any hijacking or theft)
unless it is within 1 month redelivered to the full control of the Borrower
owning the Ship.

"Total
Loss Date" means, in relation to a Ship:

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

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

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

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

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

"Transaction"
has the meaning given in the Master Agreement.

"Transfer
Certificate" has the meaning given in Clause 26.2.  

 212                                 EUROPE/66436786v5    

"Trust Property" has the meaning given in
clause 3.1 of the Agency and Trust Deed.  

"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 person which
is resident for tax purposes in the US; or

(b)              
 a person some or
all of whose payments under the Finance Documents are from sources within the
US for US federal income tax purposes.

"Vesta"
means Vesta Commercial, S.A., a company incorporated in the Republic of Panama
whose registered address is at Edificio
P.H. Bonanza Plaza, Calle 41 Bella Vista, Panama, Republic of Panama.

"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;

(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.

1.2            
 Construction of certain
terms

In this Agreement:

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

"approved"
means, for the purposes of Clause 13, approved in writing by the Agent.

"asset"
includes every kind of property, asset, interest or right, including any
present, future or contingent right to any revenues or other payment.

"company"
includes any partnership, joint venture and unincorporated association.

"consent" includes an
authorisation, consent, approval, resolution, licence, exemption, filing,
registration, notarisation and legalisation.

"contingent liability"
means a liability which is not certain to arise and/or the amount of which
remains unascertained.

"document" includes a
deed; also a letter or fax.

"excess risks" means,
in relation to a Ship, the proportion of claims for general average, salvage
and salvage charges not recoverable under the hull and machinery policies in
respect of the Ship in consequence of its insured value being less than the
value at which the Ship is assessed for the purpose of such claims.

"expense" means any
kind of cost, charge or expense (including all legal costs, charges and
expenses) and any applicable value added or other tax.

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

"legal or administrative action"
means any legal proceeding or arbitration and any administrative or regulatory
action or investigation.

 232                                 EUROPE/66436786v5    

 

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

"months" shall be
construed in accordance with Clause 1.3.

"obligatory insurances"
means, in relation to a Ship, all insurances effected, or which the Borrower
owning the Ship is obliged to effect, under Clause 13 or any other provision of this Agreement or
another Finance Document.

"parent company" has
the meaning given in Clause 1.4.

"person" includes any
company; any state, political sub-division of a state and local or municipal
authority; and any international organisation.

"policy", in relation
to any insurance, includes a slip, cover note, certificate of entry or other
document evidencing the contract of insurance or its terms.

"protection and indemnity risks"
means the usual risks covered by a protection and indemnity association managed
in London, including pollution risks and the proportion (if any) of any sums
payable to any other person or persons in case of collision which are not
recoverable under the hull and machinery policies by reason of the
incorporation in them of clause 6 of the International Hull Clauses (1/11/02 or
1/11/03), clause 8 of the Institute Time Clauses (Hulls) (1/11/95) or clause 8 of
the Institute Time Clauses (Hulls) (1/10/83) or the Institute Amended Running
Down Clause (1/10/71) or any equivalent provision.

"regulation" includes
any regulation, rule, official directive, request or guideline (either having
the force of law or compliance with which is reasonable in the ordinary course
of business of the party concerned) whether or not having the force of law of
any governmental, intergovernmental or supranational body, agency, department
or regulatory, self-regulatory or other authority or organisation.

"subsidiary" has the
meaning given in Clause 1.4. 

"successor" includes
any person who is entitled (by assignment, novation, merger or otherwise) to
any 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.  

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

"war risks" includes
the risk of mines and all risks excluded by clauses 29, 30 or 31 of the
International Hull Clauses (1/11/02), clauses 29 or 30 of the International
Hull Clauses (1/11/03), clauses 24, 25 or 26 of the Institute Time Clauses
(Hulls) (1/11/95) or clauses 23, 24 or 25 of the Institute Time Clauses (Hulls)
(1/10/83) or any equivalent provision.

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1.3            
 Meaning of "month"

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

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

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

and "month" and "monthly" shall
be construed accordingly.

1.4            
 Meaning of "subsidiary"

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

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

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

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

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

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

1.5            
 General
Interpretation

In this Agreement:

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

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

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

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

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1.6            
 Headings

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

2                  
 Facility  

2.1            
 Amount of
facility

Subject to the other provisions of this Agreement, the Lenders
shall make available to the Borrowers, in one advance, a term loan facility of
up to the lesser of (i) $55,848,000, (ii) the Existing Indebtedness and (iii)
65 per cent. of the aggregate Initial Market Value of the Ships for the purpose
of re-financing the Existing Indebtedness.  

2.2            
 Lenders'
participations in the Loan

Subject to the other provisions of this Agreement, each Lender
shall participate in the Loan in the proportion which, as at the Drawdown Date,
its Commitment bears to the Total Commitments.

2.3            
 Purpose of the
Loan

The Borrowers undertake with each Creditor Party to use the Loan
only for the purpose stated in the preamble to this Agreement.

3                  
 Position of the
Lenders, the Swap and the Majority Lenders

3.1            
 Interests of
Lenders and Swap Bank several

The rights of the Lenders and the Swap Bank under this Agreement
and the Master Agreement are several; accordingly:

(a)              
 each Lender
shall be entitled to sue for any amount which has become due and payable by the
Borrowers to it under this Agreement; and

(b)             
 the Swap Bank
shall be entitled to sue for any amount which has become due and payable by the
Borrowers to it under the Master Agreement,

without joining the Agent, the Security Trustee, any other Lender
and the Swap Bank as additional parties in the proceedings.

3.2            
 Proceedings by
individual Lender or Swap Bank

However, without the prior consent of the Majority Lenders, no
Lender nor the Swap Bank may bring proceedings in respect of:

(a)              
 any other
liability or obligation of any Borrower or a Security Party under or connected
with a Finance Document; or

 2652                                 EUROPE/66436786v5    

 

(b)             
 any
misrepresentation or breach of warranty by any Borrower or a Security Party in
or connected with a Finance Document.

3.3            
 Obligations
several

The obligations of the Lenders and the Swap Bank under this
Agreement and of the Swap Bank under the Master Agreement are several; and a
failure of a Lender or the Swap Bank to perform its obligations under this Agreement
or of the Swap Bank to perform its obligations under the Master Agreement shall
not result in:

(a)              
 the obligations
of the other Lenders or (as the case may be) the Swap Bank being increased; nor

(b)             
 any Borrower,
any Security Party or any other Creditor Party being discharged (in whole or in
part) from its obligations under any Finance Document,

and in no circumstances shall a Lender or the Swap Bank have any
responsibility for a failure of another Lender or the Swap Bank to perform its
obligations under this Agreement or the Master Agreement.

3.4            
 Parties bound by
certain actions of Majority Lenders

Every Lender, the Swap Bank, each Borrower and each Security Party
shall be bound by:

(a)              
 any
determination made, or action taken, by the Majority Lenders under any
provision of a Finance Document;

(b)             
 any instruction
or authorisation given by the Majority Lenders to the Agent or the Security
Trustee under or in connection with any Finance Document (subject always to
Clause 27.2);

(c)              
 any action taken
(or in good faith purportedly taken) by the Agent or the Security Trustee in
accordance with such an instruction or authorisation.

3.5            
 Reliance on
action of Agent

However, each Borrower and each Security Party:

(a)              
 shall be
entitled to assume that the Majority Lenders have duly given any instruction or
authorisation which, under any provision of a Finance Document, is required in
relation to any action which the Agent has taken or is about to take; and

(b)             
 shall not be
entitled to require any evidence that such an instruction or authorisation has
been given.

3.6            
 Construction

In Clauses 3.4 and 3.5 references to action taken include (without
limitation) the granting of any waiver or consent, an approval of any document
and an agreement to any matter.

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4                  
 Drawdown  

4.1            
 Request for the
Loan

Subject to the following conditions, the Borrowers may request the
Loan to be made by ensuring that the Agent receives a completed Drawdown Notice
not later than 11.00 a.m. (Oslo time) 3 Business Days (or such shorter period
as the Agent may, in its absolute discretion, agree) prior to the intended
Drawdown Date.

4.2            
 Availability

The conditions referred to in Clause 4.1 are that:

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

(b)             
 the amount of
the Loan shall not exceed an amount of up to the lesser of (i) US$55,848,000,
(ii) the Existing Indebtedness and (ii) 65 per cent. of the aggregate Initial
Market Value of the Ships; and

(c)              
 the Loan shall
be made available in one advance and shall be applied in
re-financing the Existing Indebtedness.

4.3            
 Notification to
Lenders of receipt of a Drawdown Notice

The Agent shall promptly notify the Lenders that it has received a
Drawdown Notice and shall inform each Lender of:

(a)              
 the amount of
the Loan and the Drawdown Date;

(b)             
 the amount of
that Lender's participation in the Loan; and

(c)              
 the duration of
the first Interest Period.

4.4            
 Drawdown Notice
irrevocable

A Drawdown Notice must be signed by a director or an authorised
representative of each Borrower; and once served, a Drawdown Notice cannot be
revoked without the prior consent of the Agent, acting on the authority of the
Majority Lenders.

4.5            
 Lenders to make
available Contributions

Subject to the provisions of this Agreement, each Lender shall, on
and with value on the Drawdown Date, make available to the Agent for the
account of the Borrowers the amount due from that Lender on the Drawdown Date
under Clause 2.2.

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4.6            
 Disbursement of
the Loan

Subject to the provisions of this Agreement, the Agent shall on
the Drawdown Date pay to the Borrowers the amounts which the Agent receives from
the Lenders under Clause 4.5; and that payment to the Borrowers shall be
made:

(a)              
 to the account
which the Borrowers specify in the Drawdown Notice; and

(b)             
 in the like
funds as the Agent received the payments from the Lenders.

4.7            
 Disbursement of
the Loan to third party

The payment by the Agent under Clause 4.6 shall constitute the making of the Loan and
the Borrowers shall at that time become indebted, as principal and direct
obligors, to each Lender in an amount equal to that Lender's Contribution.

4.8            
 Designated
Transactions under the Master Agreement

(a)              
 The Borrowers
may at any time conclude Designated Transactions with the Swap Bank pursuant to
the Master Agreement for the purpose of swapping their interest payment
obligations and managing their exposure to fluctuation in LIBOR under this
Agreement.  The Borrowers agree that signature of the Master Agreement does not
commit the Swap Bank to conclude Designated Transactions, or even to offer
terms for doing so, but does provide a contractual framework within which
Designated Transactions may be concluded and secured, assuming that mutually
acceptable terms can be agreed at the relevant time.

(b)             
 The Lenders
agree that, to enable the Borrowers to secure their obligations to the Swap
Bank under the Master Agreement, the security of the other Finance Documents
shall be held by the Security Trustee not only to secure the Borrowers'
obligations under this Agreement but also the Borrowers' obligations under the
Master Agreement on the terms set out in Clause 17.

5                  
 Interest  

5.1            
 Payment of
normal interest

Subject to the provisions of this Agreement, interest on the Loan
in respect of each Interest Period applicable thereto shall be paid by the
Borrowers on the last day of that Interest Period.

5.2            
 Normal rate of
interest

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

5.3            
 Payment of
accrued interest

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

 

5.4            
 Notification of
Interest Periods and rates of normal interest

The Agent shall notify the Borrowers and each Lender of:

(a)              
 each rate of
interest; and  

(b)             
 the duration of
each Interest Period

as soon as reasonably practicable after each is determined. 

5.5            
 Obligation of
Reference Bank to quote

The Reference Bank shall use all reasonable efforts to supply the
quotation required of it for the purposes of fixing a rate of interest under
this Agreement unless the Reference Bank ceases to be a Lender pursuant to
Clause 26.16.

5.6            
 Absence of
quotations by Reference Bank

If the Reference Bank fails to supply a quotation, the relevant
rate of interest shall be set in accordance with the following provisions of
this Clause 5.

5.7            
 Market
disruption

The following provisions of this Clause 5 apply if:

(a)              
 no Screen Rate
is available for an Interest Period and the Reference Bank does not, before
1.00 p.m. (London time) on the Quotation Date, provide quotations to the Agent
in order to fix LIBOR; or

(b)             
 at least 1
Business Day before the start of an Interest Period, a Lender with Contribution
amounting to more than 33.3 per cent. of the Loan, may notify
the Agent that LIBOR fixed by the Agent would not accurately reflect the cost
to those Lenders of funding its respective Contribution (or any part of it)
during the Interest Period in the London Interbank Market at or about 11.00
a.m. (London time) on the Quotation Date for the Interest Period; or

(c)              
 at least 1
Business Day before the start of an Interest Period, the Agent is notified by a
Lender (the "Affected Lender") that for any reason it is
unable to obtain Dollars in the London Interbank Market in order to fund its
Contribution (or any part of it) during the Interest Period.

5.8            
 Notification of
market disruption

The Agent shall promptly notify the Borrowers and each of the
Lenders stating the circumstances falling within Clause 5.7 which have caused its notice to be given. 

5.9            
 Suspension of
drawdown

If the Agent's notice under Clause 5.8 is served before the Loan is made:

(a)              
 in a case
falling within Clauses 5.7(a) or 5.7(b), the Lenders' obligations to make the Loan;
and

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(b)             
 in a case
falling within Clause 5.7, the Affected Lender's obligation to
participate in the Loan,

shall be suspended while the circumstances referred to in the
Agent's notice continue.

5.10         
 Negotiation of
alternative rate of interest

If the Agent's notice under Clause 5.5 is served after the Loan is made, then subject to Clause 27.4,  the Borrowers, the Agent, the Lenders or (as
the case may be) the Affected Lender shall use reasonable endeavours to agree,
within 30 days after the date on which the Agent serves its notice under Clause
5.5 (the "Negotiation Period"),
an alternative interest rate or (as the case may be) an alternative basis for
the Lenders or (as the case may be) the Affected Lender to fund or continue to
fund their or its Contribution during the Interest Period concerned.

5.11         
 Application of
agreed alternative rate of interest

Subject to Clause
27.4, any alternative interest rate or an
alternative basis which is agreed during the Negotiation Period shall take
effect in accordance with the terms agreed. 

5.12         
 Alternative rate
of interest in absence of agreement

If an alternative interest rate or alternative basis is not agreed
within the Negotiation Period, and the relevant  circumstances are continuing
at the end of the Negotiation Period, then the Agent shall, with the agreement
of each Lender or (as the case may be) the Affected Lender, set an interest
period and interest rate representing the cost of funding of the Lenders or (as
the case may be) the Affected Lender in Dollars or in any available currency of
their or its Contribution plus the Margin; and the procedure provided for by
this Clause 5.12 shall be repeated if the relevant circumstances
are continuing at the end of the interest period so set by the Agent.

5.13         
 Notice of
prepayment

If the Borrowers do not agree with an interest rate set by the
Agent under Clause 5.12, the Borrowers may give the Agent not less
than 15 Business Days' notice of their intention to prepay the Loan at the end
of the interest period set by the Agent.

5.14         
 Prepayment;
termination of Commitments

A notice under Clause 5.13 shall be irrevocable; the Agent shall promptly
notify the Lenders or (as the case may require) the Affected Lender of the
Borrowers' notice of intended prepayment; and:

(a)              
 on the date on
which the Agent serves that notice, the Total Commitments or (as the case may
require) the Commitment of the Affected Lender shall be cancelled; and

(b)             
 on the last
Business Day of the interest period set by the Agent, the Borrowers shall
prepay (without premium or penalty) the Loan or, as the case may be, the
Affected Lender's Contribution, together with accrued interest thereon at the
applicable rate plus the Margin.

5.15         
 Application of
prepayment

The provisions of Clause 8 shall apply in relation to the prepayment.

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6                  
 Interest Periods  

6.1            
 Commencement of
Interest Periods

The first Interest Period applicable to the Loan shall commence on
the Drawdown Date and each subsequent Interest Period shall commence on the
expiry of the preceding Interest Period.

6.2            
 Duration of
normal Interest Periods

Subject to Clauses 6.3 and 6.4, each Interest Period shall be: 

(a)              
 1 or 3 months as
notified by the Borrowers to the Agent not later than 11.00 a.m. (Oslo time) 5
Business Days (or such longer period as the Agent and the Borrowers may agree)
before the commencement of the Interest Period; or  

(b)             
 3 months, if the
Borrowers fail to notify the Agent by the time specified in paragraph (a); or  

(c)              
 such other
period as the Agent may, with the authorisation of the Majority Lenders, agree
with the Borrowers.

6.3            
 Duration of
Interest Periods for repayment instalments

In respect of an amount due to be repaid under Clause 8 on a particular Repayment Date, an Interest
Period shall end on that Repayment Date.

6.4            
 Non-availability
of matching deposits for Interest Period selected

If, after the Borrowers have selected and the Lenders have agreed
an Interest Period longer than 3 months, any Lender notifies the Agent by 11.00
a.m. (London time) on the third Business Day before the commencement of the
Interest Period that it is not satisfied that deposits in Dollars for a period
equal to the Interest Period will be available to it in the London Interbank
Market when the Interest Period commences, the Interest Period shall be of 3
months.

7                  
 Default Interest  

7.1            
 Payment of
default interest on overdue amounts

The Borrowers shall pay interest in accordance with the following
provisions of this Clause 7 on any amount payable by the Borrowers under
any Finance Document which the Agent, the Security Trustee or the other
designated payee does not receive on or before the relevant date, that is:

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

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

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

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7.2            
 Default rate of
interest

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

(a)              
 in the case of
an overdue amount of principal, the higher of the rates set out at Clauses 7.3(a) and (b); or

(b)             
 in the case of
any other overdue amount, the rate set out at Clause 7.3(b).

7.3            
 Calculation of
default rate of interest

The rates referred to in Clause 7.2 are:

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

(b)             
 the aggregate of
the Margin plus, in respect of successive periods of any duration (including at
call) up to 3 months which the Agent may select from time to time:

(i)                
 LIBOR; or

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

7.4            
 Notification of
interest periods and default rates

The Agent shall promptly notify the Lenders and the Borrowers of
each interest rate determined by the Agent under Clause 7.3 and of each period selected by the Agent for
the purposes of paragraph (b) of that Clause; but this shall not be taken to
imply that the Borrowers are liable to pay such interest only with effect from
the date of the Agent's notification.

7.5            
 Payment of
accrued default interest

Subject to the other provisions of this Agreement, any interest
due under this Clause shall be paid on the last day of the period by reference
to which it was determined; and the payment shall be made to the Agent for the
account of the Creditor Party to which the overdue amount is due.

7.6            
 Compounding of
default interest

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

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7.7            
 Application to
Master Agreement

For the avoidance of doubt, this Clause 7 does not apply to any amount payable under the
Master Agreement in respect of any continuing Designated Transaction as to
which section 2(e) (Default Interest; Other Amounts) of the Master
Agreement shall apply.

8                  
 Repayment and
Prepayment  

8.1            
 Amount of
repayment instalments

(a)              
 The Borrowers
shall repay the Loan as follows:

(i)                
 if no Initial
Extension Request has been served within the time frame set out in paragraph (a) of Clause 8.3 or an Initial Extension Request has been
served but has been refused by all Lenders, the Loan shall be repaid by:

(A)             
 8 equal consecutive
three-monthly instalments each in an amount equal to $1,861,600; and

(B)             
 a balloon
instalment in an amount equal to $40,955,200; or

(ii)              
 if an Initial
Extension Request has been served under paragraph (a) of Clause 8.3 and has been accepted by the Lenders (or any
of them), the Loan shall be repaid by:

(A)             
 12 equal consecutive
three-monthly instalments each in an amount equal to $1,861,600; and

(B)             
 a balloon
instalment in an amount equal to $33,508,800; or

(iii)             
 if a Subsequent
Extension Request has been served under paragraph (b) of Clause 8.3 and has been accepted by the Lenders (or any
of them), the Loan shall be repaid by:

(A)             
 16 equal consecutive
three-monthly instalments each in an amount equal to $1,861,600; and

(B)             
 a balloon
instalment in an amount equal to $26,062,400.

(b)             
 If any Lender or
Lenders refuse, or are deemed to have refused, an Extension Request and their
respective Contributions are repaid in accordance with Clause 8.3(g) prior to the full repayment of the Loan, then
the Repayment Instalments and the Balloon Instalment for each Repayment Date falling
after the repayment of such Contributions will be reduced pro rata by the
amount of the Loan repaid.

8.2            
 Repayment Dates

The first Repayment Instalment for the Loan shall be repaid on 19
June 2020, each subsequent Repayment Instalment shall be repaid at
three-monthly intervals thereafter and the last Repayment Instalment together
with the Balloon Instalment shall be repaid on the Final Maturity Date.

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8.3            
 Extension of
Final Maturity Date

(a)              
 The Borrowers
may, by delivering a request to the Agent (an "Initial  Extension
Request") not earlier than the date falling 5 months prior to the
Initial Maturity Date but not later than the date falling 2 months prior to
such date, request an extension of the Initial Maturity Date by 1 year.

(b)             
 Subject to the Initial
Maturity Date having been extended pursuant to paragraph (a) of this Clause, the Borrowers may, by
delivering an additional Extension Request (a "Subsequent Extension
Request"), not earlier than the date falling 5 months prior to the
Extended Maturity Date but not later than the date falling 2 months prior to
such date, request an additional extension of the Extended Maturity Date by 1
year.

(c)              
 The Final
Maturity Date shall in no event extend beyond the date falling on the fourth
anniversary of the Drawdown Date.

(d)             
 Each Extension
Request delivered pursuant to paragraphs (a) and (b) of this Clause must specify whether, as at the
date of that Extension Request, an Event of Default has occurred and is
continuing or, in the Lenders' opinion (acting reasonably), might result from
the extension requested in that Extension Request.

(e)              
 The Agent shall
promptly notify the Lenders of the receipt of an Extension Request.

(f)               
 Each Lender may
(in its absolute discretion) accept an Extension Request by giving written
notice to the Agent by no later than the date falling 30 days after the date on
which the relevant Extension Request was delivered to the Agent by the
Borrowers (a "Cut-Off Date"). The Final Maturity Date in
respect of the Contributions of each Lender that has accepted an Extension
Request will be extended in accordance with that Extension Request upon payment
of the fee payable pursuant to Clause 20.2 in respect of that extension.

(g)              
 If a Lender notifies
the Agent by the relevant Cut-Off Date that it refuses the Extension Request, then
the Final Maturity Date in relation to the Contributions of that Lender and any
interest accrued thereon shall remain unchanged and such amounts shall remain
due and payable on such date.

(h)             
 If a Lender
fails to reply to the Agent with respect to an Extension Request by the relevant
Cut-Off Date, it will be deemed to have refused the Extension Request.

(i)                
 By no later than
the date falling 3 Business Days after a Cut-Off Date, the Agent shall inform
the Borrowers and the Lenders of:

(i)                
 the identity of
the Lenders which have accepted and the identity of the Lenders which have
refused, or are deemed to have refused, the Extension Request; and

(ii)              
 the amount of
the Contributions which are to be extended.

(j)                
 Any Extension Request
delivered under this Clause is irrevocable.

 

8.4            
 Final Maturity
Date

On the Final Maturity Date, the Borrowers shall additionally pay
to the Agent for the account of the Creditor Parties all other sums then
accrued or owing under any Finance Document.

8.5            
 Voluntary
prepayment

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

8.6            
 Conditions for
voluntary prepayment

The conditions referred to in Clause 8.5 are that:

(a)              
 a partial
prepayment shall be $500,000 or a higher integral multiple of $500,000;

(b)             
 the Agent has
received from the Borrowers at least 3 days' prior written notice specifying
the amount to be prepaid and the date on which the prepayment is to be made;  

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

(d)             
 the Borrowers
have complied with Clause 8.13 on or prior to the date of prepayment.

8.7            
 Effect of notice
of prepayment

A prepayment notice may not be withdrawn or amended without the
consent of the Agent, given with the authorisation of the Majority Lenders, and
the amount specified in the prepayment notice shall become due and payable by
the Borrowers on the date for prepayment specified in the prepayment notice.

8.8            
 Notification of
notice of prepayment

The Agent shall notify the Lenders promptly upon receiving a
prepayment notice, and shall provide any Lender which so requests with a copy
of any document delivered by the Borrowers under Clause 8.6(c).

8.9            
 Mandatory
prepayment

The Borrowers shall be obliged to prepay the whole of the Relevant
Amount if a Ship is sold or becomes a Total Loss:

(a)              
 in the case of a
sale, on or before the date on which the Mortgage on that Ship is released; or

(b)             
 in the case of a
Total Loss, on the earlier of the date falling 180 days after the Total Loss
Date and the date of receipt by the Security Trustee of the proceeds of
insurance relating to such Total Loss.

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In this Clause 8.9 "Relevant Amount" means an
amount achieved by dividing the Market Value of the Ship which has been sold or
become Total Loss by the aggregate of the Market Value of all Ships (including
the Ship that has become sold or Total Loss) and multiplying it by the Loan on
the date that the relevant Ship is sold or becomes a Total Loss. 

8.10         
 Amounts payable
on prepayment

A prepayment shall be made together with accrued interest (and any
other amount payable under Clause 21 or otherwise) in respect of the amount prepaid
and, if the prepayment is not made on the last day of an Interest Period
together with any sums payable under Clause 21.1(b) but without premium or penalty. 

8.11         
 Application of
partial prepayment

Each partial prepayment made pursuant to Clauses 8.5 and 8.9 shall be applied pro rata against the then
outstanding Repayment Instalments and the Balloon Instalment. 

8.12         
 No re-borrowing

No amount prepaid may be re-borrowed.

8.13         
 Unwinding of
Designated Transactions

On or prior to any repayment or prepayment of the Loan under this
Clause 8 or any other provision of this Agreement, each
Borrower shall wholly or partially reverse, offset, unwind or otherwise
terminate one or more of the continuing Designated Transactions so that the
notional principal amount of the continuing Designated Transactions thereafter
remaining does not and will not in the future (taking into account the scheduled amortisation)
exceed the amount of the Loan as reducing from time to time thereafter pursuant
to Clause 8.1.

9                  
 Conditions Precedent  

9.1            
 Documents, fees
and no default

Each Lender's obligation to contribute to the Loan is subject to
the following conditions precedent: 

(a)              
 that, on or
before the service of the Drawdown Notice, the Agent receives:

(i)                
 the documents
described in Part A of Schedule 3 in form and substance satisfactory to the
Agent and its lawyers;
and

(ii)              
 the arrangement
fee referred to in Clause 20.1;

(b)             
 that, on the
Drawdown Date but prior to the making of the Loan, the Agent receives or is
satisfied that it will receive on the making of the Loan the documents
described in Part B of Schedule 3 in form and substance satisfactory to it and
its lawyers;

(c)              
 that, on or
before the service of the Drawdown Date, the Agent receives payment of any
expenses payable pursuant to Clause 20.3 which is due and payable on the Drawdown Date;

 372                                 EUROPE/66436786v5    

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

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

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

(iii)             
 none of the
circumstances contemplated by Clause 5.7 has occurred and is continuing; and

(iv)             
 there has been
no material adverse change in the financial condition, state of affairs or
prospects of the Borrowers (or any of them), the Corporate Guarantor or any other
Security Party since 31 October 2019 in the light of which the Agent considers that there is a
significant risk that the Borrowers, the Corporate Guarantor or any other
Security Party is, or will later become, unable to discharge its liabilities
under the Finance Documents to which it is a party as they fall due;

(e)              
 that, if the
ratio set out in Clause 15.1 were applied immediately following the making
of the Loan, the Borrowers would not be obliged to provide additional security
or prepay part of the Loan under that Clause; and

(f)               
 that the Agent
has received, and found to be acceptable to it, any further opinions, consents,
agreements and documents in connection with the Finance Documents which the
Agent may, with the authorisation of the Majority Lenders, request by notice to
the Borrowers prior to the Drawdown Date.

9.2            
 Waiver of
conditions precedent

(a)              
 Subject to
paragraph (b) below, if the Majority Lenders, at their
discretion, permit the Loan to be borrowed before certain of the conditions
referred to in Clause 9.1 are satisfied, the Borrowers shall ensure that
those conditions are satisfied within 5 Business Days after the Drawdown Date
(or such longer period as the Agent may, with the authorisation of the Majority
Lenders, specify).

(b)             
 The Majority
Lenders hereby agree to permit the Loan to be borrowed prior to the Borrowers
providing the letters of undertaking and the letters of resignation which are
to be signed under each Shares Pledge by Mr Symeon Palios in his capacity as
director and/or officer of each Borrower, on the condition that the Borrowers
shall ensure that they will provide these letters duly signed by Mr Symeon
Palios (or his replacement director or, as the case may be, officer) within 3
months after the Drawdown Date (or such longer period as the Agent may, with
the authorisation of the Majority Lenders, specify).

10              
 Representations
and Warranties

10.1         
 General

Each Borrower represents and warrants to each Creditor Party as follows.

 

10.2         
 Status

(a)              
 Each Borrower,
save for Vesta, is duly incorporated and validly existing and in good standing
under the laws of the Marshall Islands.

(b)             
 Vesta is duly
incorporated and validly existing and in good standing under the laws of Panama.

10.3         
 Shares and
ownership

(a)              
 Each Borrower
(other than Vesta) is authorised to issue Five hundred (500) registered shares
with par value of $0,01 each.

(b)             
 Vesta has an
authorised share capital of One hundred (100) registered shares.

(c)              
 The legal title
and beneficial ownership of all those shares is held, free of any Security
Interest or other claim, by the Corporate Guarantor.

10.4         
 Corporate power

Each Borrower has the corporate capacity, and has taken all
corporate action and obtained all consents necessary for it:

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

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

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

10.5         
 Consents in
force

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

10.6         
 Legal validity;
effective Security Interests

The Finance Documents to which each Borrower is a party, do now
or, as the case may be, will, upon execution and delivery (and, where applicable,
registration as provided for in the Finance Documents): 

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

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

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

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10.7         
 No third party
Security Interests

Without limiting the generality of Clause 10.6, at the time of the execution and delivery of
each Finance Document to which a Borrower is a party: 

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

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

10.8         
 No conflicts

The execution by each Borrower of each Finance Document to which
it is a party, and the borrowing by that Borrower of the Loan, and its
compliance with each Finance Document to which it is a party will not involve
or lead to a contravention of:

(a)              
 any law or
regulation; or

(b)             
 the
constitutional documents of that Borrower; or

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

10.9         
 No withholding
taxes

All payments which each Borrower is liable to make under the
Finance Documents to which it is a party may be made without deduction or
withholding for or on account of any tax payable under any law of any Pertinent
Jurisdiction.

10.10     
 No default

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

10.11     
 Information

All information which has been provided in writing by or on behalf
of the Borrowers or any Security Party to any Creditor Party in connection with
any Finance Document satisfied the requirements of Clause 11.5; all audited and unaudited accounts which have
been so provided satisfied the requirements of Clause 11.7; and there has been no material adverse change
in the financial position or state of affairs of any Borrower from that
disclosed in the latest of those accounts.

10.12     
 No litigation

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

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10.13       Validity and completeness of the
Initial Charter

(a)              
 The Initial
Charter constitutes valid, binding and enforceable obligations of the Initial
Charterer and Bokak in accordance with its terms.

(b)             
 The copy of the
Initial Charter delivered to the Agent before the date of this Agreement is a
true and complete copy.

(c)              
 Other than those
amendments and additions to the Initial Charter disclosed to the Agent before
the date of this Agreement, no amendments or additions to the Initial Charter
have been agreed nor has Bokak or the Initial Charterer waived any of their
respective rights under the Initial Charter.

10.14     
 Compliance with
certain undertakings

At the date of this Agreement, the Borrowers are in compliance
with Clauses 11.2, 11.4, 11.9 and 11.13.

10.15     
 Taxes paid

Each Borrower has paid all taxes applicable to, or imposed on or
in relation to that Borrower, its business or the Ship owned by it.

10.16     
 ISM Code and
ISPS Code compliance

All requirements of the ISM Code and the ISPS Code as they relate
to the Borrowers, the Approved Manager and the Ships have been complied with.

10.17     
 No money
laundering

Without prejudice to the generality of Clause 2.3, in relation to the borrowing by the Borrowers
of the Loan, the performance and discharge of their obligations and liabilities
under the Finance Documents, and the transactions and other arrangements
affected or contemplated by the Finance Documents to which a Borrower is a
party, the Borrowers confirm (i) that they are acting for their own account;
(ii) that they will use the proceeds of the Loan for their own benefit, under
their full responsibility and exclusively for the purposes specified in this
Agreement; (iii) that no Borrower and no Security Party nor any of their
respective subsidiaries, directors, or officers, or, to the best of the
Borrowers' knowledge, any affiliate, agent or employee thereof has engaged in
any activity or conduct which would violate any applicable anti-bribery,
anti-corruption or anti-money laundering laws or regulations in any applicable
jurisdiction and each Borrower and each Security Party has instituted and
maintains policies and procedures designated to prevent violation of such laws
regulations and rules and (iv) that the foregoing will not involve or lead to a
contravention of any law, official requirement or other regulatory measure or
procedure implemented to combat "money laundering" (as defined in
Article 1 of Directive 2005/60/EC of the European Parliament and of the
Council). 

 

10.18       No immunity

No Borrower, nor any of their 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).

10.19       Sanctions Laws

(a)              
 Each Borrower,
Security Party and member of the Group and their respective subsidiaries, directors,
officers, employees, and to the best of each Borrower's knowledge, their
respective agents or representatives has been and is in compliance with Sanctions Laws. 

(b)             
 No Borrower,
Security Party or member of the Group, none of their subsidiaries and none of their
respective directors, officers, employees, and to the best of each Borrower's
knowledge, none of their respective agents or representatives:  

(i)                
 is a Restricted
Party, or is involved in any transaction through which it is likely to become a
Restricted Party; or  

(ii)              
 is subject to or
involved in any inquiry, claim, action, suit, proceeding or investigation
against it with respect to Sanctions Laws by any Sanctions Authority.

10.20     
 Compliance with
applicable laws

Each Borrower is at all times in compliance with all applicable
laws or regulations, including but not limited to all Environmental Laws.

11              
 General
Undertakings  

11.1         
 General

Each Borrower undertakes with each Creditor Party to comply with
the following provisions of this Clause 11 at all times during the Security Period except
as the Agent may, with the authorisation of the Majority Lenders, otherwise
permit.

11.2         
 Title; negative
pledge

Each Borrower will:

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

(b)             
 not create or
permit to arise any Security Interest (except for Permitted Security Interests)
over any other asset, present or future (including, but not limited to, that
Borrower's rights against the Swap Bank under the Master Agreement or all or
any part of that Borrower's interest in any amount payable to that Borrower by
the Swap Bank under the Master Agreement).

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11.3         
 No disposal of
assets

No Borrower will transfer, lease or otherwise dispose of:

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

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

but paragraph (a) does not apply to any charter of a Ship as to
which Clause 14.13 applies.

11.4         
 No other
liabilities or obligations to be incurred

No Borrower will incur any liability or obligation except:

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

(b)             
 liabilities or
obligations reasonably incurred in the ordinary course of owning, operating and
chartering the Ship;

(c)              
 in respect of
the Designated Transactions; and

(d)             
 for the duration
Existing Indebtedness Grace Period only, liabilities incurred under the
Previous Loan Agreement.

11.5         
 Information
provided to be accurate

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

11.6         
 Provision of
financial statements

Each Borrower will send or procure that are to be sent to the
Agent:

(a)              
 as soon as
possible, but in no event later than 180 days after the end of each Financial
Year of the Corporate Guarantor the audited annual consolidated financial
statements of the Corporate Guarantor for that Financial Year of the Corporate
Guarantor (commencing with the financial statements for the year that ended on
31 December 2019);  

(b)             
 as soon as
possible, but in no event later than 90 days after the end of each Financial
Year of the Corporate Guarantor the unaudited annual consolidated financial
statements of the Corporate Guarantor for that Financial Year of the Corporate
Guarantor (commencing with the financial statements for the year that ended on
31 December 2019);

(c)              
 as soon as
possible, but in no event later than 90 days after 30 June in each Financial
Year of the Corporate Guarantor the unaudited semi-annual consolidated
financial statements of the Corporate Guarantor for the first six-month period
of such Financial Year and in the form published 

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in
the relevant press release  (commencing with the financial statements for the
6-month period ending 30 June 2020) certified as to their correctness by the
chief financial officer of the Corporate Guarantor; and

(d)             
 promptly after a
request by the Agent, such further financial or other information in respect of
the Borrowers, the Ships, the Corporate Guarantor, the other Security Parties,
the Fleet Vessels and the Group (including, but not limited to, charter
arrangements, Financial Indebtedness, operating expenses) as the Agent may
reasonably require.

11.7         
 Form of
financial statements

All accounts delivered under Clause 11.6 will:

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

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

(c)              
 fully disclose
or provide for all significant liabilities of the Group.

11.8         
 Shareholder and
creditor notices

Each Borrower will send the Agent, at the same time as they are
despatched, copies of all communications which are despatched to that Borrower's
shareholders or creditors or any class of them.

11.9         
 Consents

Each Borrower will maintain in force and promptly obtain or renew,
and will promptly send certified copies to the Agent of, all consents required:

(a)              
 for that
Borrower to perform its obligations under any Finance  Document to which it is
a party;  

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

(c)              
 for that
Borrower to continue to own and operate the Ship owned by it,

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

11.10     
 Maintenance of
Security Interests

Each Borrower will:

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

(b)             
 without limiting
the generality of paragraph (a), at its own cost, promptly register, file,
record or enrol any Finance Document with any court or authority in all
Pertinent Jurisdictions, pay any stamp, registration or similar tax in all
Pertinent Jurisdictions in respect of any Finance Document, 

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give
any notice or take any other step which, in the opinion of the Majority
Lenders, is 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.  

11.11     
 Notification of
litigation

Each Borrower will provide the Agent with details of any legal or
administrative action involving that Borrower, any Security Party, the Approved
Manager or the Ship owned by it, the Earnings or the Insurances 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. 

11.12     
 No amendment to
Master Agreement

No Borrower will agree to any amendment or supplement to, or waive
or fail to enforce, the Master Agreement or any of its provisions.

11.13     
 Principal place
of business

No Borrower will establish, or do anything as a result of which it
would be deemed to have, a place of business in any country other than Greece.

11.14     
 Confirmation of
no default

Each Borrower will, within 2 Business Days after service by the
Agent of a written request, serve on the Agent a notice which is signed by 2
directors of that Borrower and which:

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

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

The Agent may serve requests under this Clause 11.14 from time to time but only if asked to do so by
a Lender or Lenders having Contributions exceeding 10 per cent. of the Loan or
(if the Loan hasn't been drawn) Commitments exceeding 10 per cent of the Total
Commitments; and this Clause 11.14 does not affect the Borrowers' obligations
under Clause 11.15.

11.15     
 Notification of
default

Each Borrower will notify the Agent as soon as that Borrower
becomes aware of:

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

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

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

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11.16       Provision of further information

Each Borrower will, as soon as practicable after receiving the
request, provide the Agent with any additional financial or other information
relating:

(a)              
 to the
Borrowers, the Group, the Corporate Guarantor, the Ships, the other Fleet
Vessels, their Insurances or their Earnings (including, but not limited to, any
sales or purchases of any Fleet Vessels, the incurrence of Financial
Indebtedness by members of the Group, details of the employment of the Fleet
Vessels) as the Agent may require; or

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

which may be requested by the Agent, the Security Trustee, the
Swap Bank or any Lender at any time.

11.17     
 Provision of
copies and translation of documents

Each Borrower will supply the Agent with a sufficient number of
copies of the documents referred to above to provide 1 copy for each Creditor
Party; and if the Agent so requires in respect of any of those documents, the
Borrowers will provide a certified English translation prepared by a translator
approved by the Agent.

11.18     
 Know your
customer

Promptly upon the Agent's request each Borrower will supply, or
procure the supply of, such documentation and other evidence as is reasonably
requested by the Agent in order for each Creditor Party to carry out and be
satisfied with the results of all necessary "know your client" or
other checks which it is required to carry out in relation to the transactions
contemplated by the Finance Documents and to the identity of any parties to the
Finance Documents (other than Creditor Parties) and their directors and
officers.

11.19     
 No amendment to
the Initial Charter

Bokak will ensure that the parties to the Initial Charter will not
agree to any amendment or supplement to, or waive or fail to enforce, the
Initial Charter or any of its provisions.

11.20     
 Payment of taxes

Each Borrower shall pay when due all taxes applicable to, or
imposed on, its business or the Ship owned by it.

11.21     
 Bribery and
anti-corruption laws

(a)              
 No Borrower
shall use the proceeds of the Loan for any purpose which would breach the Bribery
Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other
similar legislation in other jurisdictions.

(b)             
 Each Borrower
shall (and shall procure that each other Security Party and each other member
of the Group shall):

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(i)                
 conduct its
businesses in compliance with applicable anti-corruption laws; and

(ii)              
 maintain
policies and procedures designed to promote and achieve compliance with such
laws.

11.22     
 Sanctions Laws

(a)              
 Each Borrower
shall ensure that none of them or the Security Parties nor any of their
respective subsidiaries or any member of the Group, their respective directors,
officers, employees, agents or representatives or any other persons acting on
any of their behalf, is or will become a Restricted Party.

(b)             
 Each Borrower
shall supply to the Agent, promptly upon becoming aware of them, the details of
any inquiry, claim, action, suit, proceeding or investigation pursuant to
Sanctions Laws by any Sanctions Authority against a Borrower, any Security
Party, any of their respective direct or indirect owners, their respective
subsidiaries or any member of the Group, any of their joint ventures or any of
their respective directors, officers, employees, agents or representatives, as
well as information on what steps are being taken with regards to answer or
oppose such.

(c)              
 Each Borrower
shall (and shall procure that the other members of the Group will) implement
and maintain in effect policies and procedures designed to promote and ensure
compliance by them and their respective directors, officers and employees
acting on their behalf with Sanctions Laws and anti-corruption laws and
regulations.

11.23     
 Use of proceeds

(a)              
 No proceeds of
the Loan shall be made available, directly or indirectly, to or for the benefit
of a Restricted Party nor shall they be otherwise directly or indirectly,
applied in a manner or for a purpose prohibited by Sanctions Laws.

(b)             
 The Borrowers
shall not repay or prepay the Loan or any part thereof or fund all or any part
of any payment under this Agreement (i) out of proceeds from funds or assets
that (A) constitute property of, or that are beneficially owned directly or
indirectly by, any Restricted Party or (B) are obtained or derived from
transactions with or relating to any Restricted Party or transactions in
violation of Sanctions Laws or (ii) in any manner that would cause any Lender
to be in violation of Sanctions Laws.

12              
 Corporate
Undertakings  

12.1         
 General

Each Borrower also undertakes with each Creditor Party to comply
with the following provisions of this Clause 12 at all times during the Security Period except
as the Agent may, with the authorisation of the Majority Lenders, otherwise
permit.

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12.2         
 Maintenance of
status

(a)              
 Each Borrower
(other than Vesta) will maintain its separate corporate existence and remain in
good standing under the laws of the Marshall Islands.

(b)             
 Vesta will
maintain its separate corporate existence and remain in good standing under the
laws of Panama.

12.3         
 Negative
undertakings

No Borrower will:

(a)              
 carry on any
business other than the ownership, chartering and operation of the Ship owned
by that Borrower; or
 

(b)             
 pay any dividend
or make any other form of distribution or effect any form of redemption,
purchase or return of share capital (the "Distribution") if an
Event of Default has occurred at any relevant time which is continuing or an
Event of Default will result from the Distribution; or

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

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

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

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

(d)             
 open or maintain
any account with any bank or financial institution except accounts with the
Agent and the Security Trustee for the purposes of the Finance Documents; or

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

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

(g)              
 enter into any
form of amalgamation, merger or de-merger or any form of reconstruction or
reorganisation.

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13              
 Insurance  

13.1         
 General

Each Borrower also undertakes with each Creditor Party to comply
with the following provisions of this Clause 13 at all times during the Security Period except
as the Agent may, with the authorisation of the Majority Lenders, otherwise
permit.

13.2         
 Maintenance of
obligatory insurances

Each Borrower shall keep the Ship owned by it insured at the
expense of that Borrower against:

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

(b)             
 war risks
(including terrorism, piracy and confiscation);

(c)              
 protection and
indemnity risks (other than loss of hire or political risks); and

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

13.3         
 Terms of
obligatory insurances

Each Borrower shall effect such insurances:

(a)              
 in Dollars;

(b)             
 in the case of
fire and usual marine risks and war risks, (including hull interest and freight
interest) in such amount as shall from time to time be approved by the Security
Trustee but in any event in an amount not less than the greater of (i) an
amount which when aggregated with the insured value of the other Ships then
subject to a Mortgage, 120 per cent of the aggregate of the Loan and (ii) the
Market Value of the Ship owned by it;  

(c)              
 in the case of
hull and machinery policy at an agreed insured value (excluding hull interest
and freight interest) in an amount of not less than an amount which when
aggregated with the agreed insured values under all the other hull and
machinery policies for the other Ships then subject to a Mortgage is not less
than the principal amount of the Loan Provided that the Borrowers are in
compliance with their obligations under paragraph (b) above at all times;  

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

(e)              
 in relation to
protection and indemnity risks in respect of the full tonnage of the Ship;

(f)               
 on approved
terms; and

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

13.4         
 Further
protections for the Creditor Parties

In addition to the terms set out in Clause 13.3, each Borrower shall procure that the
obligatory insurances effected by it shall:

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

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

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

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

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

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

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

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

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

(e)              
 provide that
such obligatory insurances shall be primary without right of contribution from
other insurances which may be carried by the Security Trustee or any other
Creditor Party; and

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

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13.5         
 Renewal of
obligatory insurances

Each Borrower shall:

(a)              
 at least 21 days
before the expiry of any obligatory insurance effected by it:

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

(ii)              
 obtain the
Security Trustee's approval to the matters referred to in paragraph (i);

(b)             
 at least 14 days
before the expiry of any obligatory insurance, renew that obligatory insurance
in accordance with the Security Trustee's approval pursuant to paragraph (a); and

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

13.6         
 Copies of
policies; letters of undertaking

Each Borrower shall ensure that all approved brokers provide the
Security Trustee with pro forma copies of all policies relating to the
obligatory insurances which they are to effect or renew and of a letter or
letters of undertaking in a form required by the Security Trustee and including
undertakings by the approved brokers that:

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

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

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

(d)             
 they will notify
the Security Trustee, not less than 14 days before the expiry of the obligatory
insurances, in the event of their not having received notice of renewal
instructions from that Borrower or its agents and, in the event of their
receiving instructions to renew, they will promptly notify the Security Trustee
of the terms of the instructions; and

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

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13.7         
 Copies of
certificates of entry

Each Borrower shall ensure that any protection and indemnity
and/or war risks associations in which the Ship owned by it is entered provides
the Security Trustee with:

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

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

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

13.8         
 Deposit of
original policies

Each Borrower shall ensure that all policies relating to
obligatory insurances effected by it are deposited with the approved brokers
through which the insurances are effected or renewed.

13.9         
 Payment of
premiums

Each Borrower shall punctually pay all premiums or other sums
payable in respect of the obligatory insurances effected by it and produce all
relevant receipts when so required by the Security Trustee.

13.10     
 Guarantees

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

13.11     
 Restrictions on
employment

No Borrower shall employ its Ship, nor shall permit it to be
employed, outside the cover provided by any obligatory insurances.

13.12     
 Compliance with
terms of insurances

No Borrower shall do nor omit to do (nor permit to be done or not
to be done) any act or thing which would or might render any obligatory
insurance invalid, void, voidable or unenforceable or render any sum payable
under an obligatory insurance repayable in whole or in part; and, in
particular:

(a)              
 each Borrower
shall take all necessary action and comply with all requirements which may from
time to time be applicable to the obligatory insurances, and (without limiting
the obligation contained in Clause 13.6(c)) ensure that the obligatory insurances are not
made subject to any exclusions or qualifications to which the Security Trustee
has not given its prior approval;

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

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

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

13.13     
 Alteration to
terms of insurances

(a)              
 No Borrower
shall make nor agree to any alteration to the terms of any obligatory insurance
nor waive any right relating to any obligatory insurance.  

(b)             
 Without limiting
the generality of the foregoing, no Borrower shall either make or agree to any
alteration to the terms of any war risks and allied perils coverage (including
piracy coverage) whereby trading to conditional (excluded) areas not declared
on the annual policy would be altered without the consent of the Agent.

13.14     
 Settlement of
claims

No Borrower shall settle, compromise or abandon any claim under
any obligatory insurance for Total Loss or for a Major Casualty, and shall do
all things necessary and provide all documents, evidence and information to
enable the Security Trustee to collect or recover any moneys which at any time
become payable in respect of the obligatory insurances.

13.15     
 Provision of
copies of communications

Each Borrower shall provide the Security Trustee, at the time of
each such communication, copies of all written communications between a
Borrower and:

(a)              
 the approved
brokers;  

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

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

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

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

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13.16       Provision of information

In addition, each Borrower shall promptly provide the Security
Trustee (or any persons which it may designate) with any information which the
Security Trustee (or any such designated person) requests for the purpose of:

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

(b)             
 effecting,
maintaining or renewing any such insurances as are referred to in Clause 13.17 below or dealing with or considering any
matters relating to any such insurances,

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

13.17     
 Mortgagee's
interest insurances

The Security Trustee shall be entitled from time to time to
effect, maintain and renew a mortgagee's interest marine insurance policy in
such amounts, on such terms, through such insurers and generally in such manner
as the Security Trustee may from time to time consider appropriate and each
Borrower shall upon demand fully indemnify the Creditor Parties in respect of
all premiums and other expenses which are incurred in connection with or with a
view to effecting, maintaining or renewing any such insurance or dealing with,
or considering, any matter arising out of any such insurance. 

13.18     
 Review of
insurance requirements

The Agent shall be entitled to review the requirements of this
Clause 13 from time to time in order to take account of
any changes in circumstances after the date of this Agreement which the Agent
reasonably considers significant and capable of affecting the Borrowers, the
Ships and their Insurances (including, without limitation, changes in the availability
or the cost of insurance coverage or the risks to which each Borrower may be
subject), and may appoint insurance consultants in relation to this review at
the cost of that Borrower.

13.19     
 Modification of
insurance requirements

The Agent shall notify the Borrowers of any proposed modification
under Clause 13.18 to the requirements of this Clause 13 which the Agent reasonably considers
appropriate in the circumstances, and such modification shall take effect on
and from the date it is notified in writing to the relevant Borrower as an
amendment to this Clause 13 and shall bind that Borrower accordingly.

13.20     
 Compliance with
mortgagee's instructions

The Agent shall be entitled (without prejudice to or limitation of
any other rights which it may have or acquire under any Finance Document) to
require a Ship to remain at any safe port or to proceed to and remain at any
safe port designated by the Agent until the Borrower owning that Ship 

 542                                 EUROPE/66436786v5    

 

implements any amendments to the terms of the obligatory
insurances and any operational changes required as a result of a notice served
under Clause 13.19.

14              
 Ship Covenants  

14.1         
 General

Each Borrower also undertakes with each Creditor Party to comply
with the following provisions of this Clause 14 at all times during the Security Period except
as the Agent, with the authorisation of the Majority Lenders, may otherwise
permit (and in the case of Clauses 14.2 and 14.13(e), such permission not to be unreasonably
withheld).

14.2         
 Ship's name and
registration

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

14.3         
 Repair and
classification

Each Borrower shall keep the Ship owned by it in a good and safe
condition and state of repair:

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

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

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

14.4         
 Classification
society undertaking

Each Borrower shall instruct the classification society referred
to in Clause 14.3:

(a)              
 to send to the
Security Trustee, following receipt of a written request from the Security
Trustee, certified true copies of all original class records held by the
classification society in relation to its Ship;

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

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

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

 552                                 EUROPE/66436786v5    

 

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

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

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

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

14.5         
 Modification

No Borrower shall make any modification or repairs to, or
replacement of, any Ship or equipment installed on it which would or might
materially alter the structure, type or performance characteristics of that
Ship or materially reduce its value.

14.6         
 Removal of parts

No Borrower shall remove any material part of any Ship, or any
item of equipment installed on, any Ship unless the part or item so removed is
forthwith replaced by a suitable part or item which is in the same condition as
or better condition than the part or item removed, is free from any Security
Interest or any right in favour of any person other than the Security Trustee
and becomes on installation on the relevant Ship the property of the relevant
Borrower and subject to the security constituted by the relevant Mortgage Provided
that a Borrower may install equipment owned by a third party if the
equipment can be removed without any risk of damage to the Ship owned by it.

14.7         
 Surveys

Each Borrower shall submit the Ship owned by it regularly to all
periodical or other surveys which may be required for classification purposes
and, if so required by the Security Trustee provide the Security Trustee, with
copies of all survey reports.

14.8         
 Inspection

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

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14.9         
 Prevention of
and release from arrest

Each Borrower shall promptly discharge:

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

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

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

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

14.10     
 Compliance with
laws etc.

Each Borrower shall:

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

(b)             
 not employ the
Ship owned by it nor allow its employment in any manner contrary to any law or
regulation in any relevant jurisdiction including but not limited to the ISM
Code, the ISPS Code and Sanctions Laws; and

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

14.11     
 Provision of
information

Each Borrower shall promptly provide the Security Trustee with any
information which it requests regarding:

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

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

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

(d)             
 any towages and
salvages; and

 572                                 EUROPE/66436786v5    

 

(e)              
 its compliance,
the Approved Manager's compliance and the compliance of the Ship owned by it
with the ISM Code, the ISPS Code and Sanctions Laws,

and, upon the Security Trustee's request, provide copies of any
current charter relating to the Ship owned by it , of any current charter
guarantee and copies of the Borrower's or the Approved Manager's  Document of
Compliance.

14.12     
 Notification of
certain events

Each Borrower shall immediately notify the Security Trustee by
fax, confirmed forthwith, by letter of:

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

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

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

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

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

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

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

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

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

14.13     
 Restrictions on
chartering, appointment of managers etc.

No Borrower shall, in relation to the Ship owned by it:

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

(b)             
 other than the Initial
Charter, enter into any time or consecutive voyage charter in respect of that
Ship for a term which exceeds, or which by virtue of any optional extensions
may exceed, 18 months;

 582                                 EUROPE/66436786v5    

 

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

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

(e)              
 appoint a
manager of that Ship other than the Approved Manager or agree to any alteration
to the terms of the Approved Manager's appointment;

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

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

14.14     
 Notice of
Mortgage

Each Borrower shall keep the relevant Mortgage registered against
the Ship owned by it as a valid first priority or preferred mortgage, carry on
board that Ship a certified copy of the relevant Mortgage and place and
maintain in a conspicuous place in the navigation room and the Master's cabin
of that Ship a framed printed notice stating that that Ship is mortgaged by
that Borrower to the Security Trustee.

14.15     
 Sharing of
Earnings

No Borrower shall:

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

(b)             
 enter into any
agreement or arrangement for the postponement of any date on which any Earnings
are due; and

(c)              
 the reduction of
the amount of any Earnings or otherwise for the release or adverse alteration
of any right of a Borrower to any Earnings.  

14.16     
 ISPS Code

Each Borrower shall comply with the ISPS Code and in particular,
without limitation, shall:

(a)              
 procure that the
Ship owned by that Borrower and the company responsible for that Ship's
compliance with the ISPS Code comply with the ISPS Code;  

(b)             
 maintain for
that Ship an ISSC; and

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

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14.17       Charterparty Assignment

If a Borrower enters into any Charter (subject to obtaining the
consent of the Agent in accordance with Clause 14.13(b)), that Borrower shall at the request of the
Agent execute in favour of the Security Trustee (and register, if applicable) a
Charterparty Assignment and shall:

(a)              
 serve notices of
the Charterparty Assignment on the Charterer and procure that the Charterer
acknowledges such notice in such form as the Agent may approve or require; and  

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

14.18       Poseidon Principles

Each Borrower shall, upon the request by a Lender and at the cost
of the Borrowers, on or before 31st July in each calendar year, supply or
procure the supply by the relevant classification society to the Agent of all information
necessary in order for such Lender to comply with its obligations under the
Poseidon Principles in respect of the preceding year, including, without
limitation, all ship fuel oil consumption data required to be collected and
reported in accordance with Regulation 22A of Annex VI and any Statement of
Compliance, in each case relating to the Ship owned by it for the preceding
calendar year provided always that, for the avoidance of doubt, such information
shall be confidential information but the Borrower acknowledges that, in
accordance with the Poseidon Principles, such information will form part of the
information published regarding the relevant Lender's portfolio climate
alignment and that a Lender may disclose such information: (i) either to any
classification society or other entity which a Lender has engaged to make the calculations necessary to enable
that Lender to comply with its reporting obligations under the Poseidon
Principles (such
calculations to be made at the cost of the relevant Lender) or (ii) as otherwise permitted under
the terms of this Agreement.

14.19     
 Inventory of
Hazardous Material

Each Borrower shall procure that, on the date falling 18 months
after the date of this Agreement, its Ship has obtained an Inventory of
Hazardous Material, which shall be maintained until the end of the Security
Period. 

14.20     
 Sustainable and
socially responsible dismantling of ships

Each Borrower shall (and shall procure that
each other member of the Group shall) procure that for the duration of the
Security Period:

(a)              
 the Ship owned
by it or any other Fleet Vessel shall be recycled at a recycling yard which
conducts its recycling business in a socially and environmentally responsible
manner, in accordance with the provisions of the Hong Kong Convention (in the
event that the Approved Flag State is not an EEA Member Country) or the EU Ship
Recycling Regulation (in the event that the Approved Flag State is an EEA
Member Country); or

(b)             
 where the Ship
owned by it or any other Fleet Vessel is sold to an intermediary (whether or
not with the intention of being recycled), it shall provide the intermediary
with any ship-relevant 

 602                                 EUROPE/66436786v5    

 

information in its possession
which it considers necessary for the development of a ship recycling plan in
accordance with the EU Ship Recycling Regulation.

14.21     
 Sanctions
Provisions

(a)              
 Each Borrower
shall, and shall procure that the Ship owned by it and each Security Party
shall, and, in respect of any charterer, shall use all reasonable endeavours to
procure that the Initial Charterer and any other charterer in respect of its
Ship shall, comply in all respects with all laws to which it may be subject,
including, without limitation, all national and international laws, directives,
regulations, decrees, rulings and such analogous rules, including, but not
limited to, rules relating to Sanctions Laws.

(b)             
 Each Borrower
undertakes to make the Initial Charterer and all other charterers and operators
of the Ship owned by it aware of the requirements of this Clause and of Clause 10.19 and shall procure that they act in accordance
with these requirements.

14.22     
 Change of
Approved Manager

Each Borrower may, at its sole
discretion, at any time during the Security Period, change the Approved Manager
of its Ship from Diana Shipping Services SA to Diana Wilhelmsen Management
Limited, provided that the Borrowers shall give the Agent 5 Business'
Days prior written notice and shall provide the Agent no later than the date of
the change with:

(a)              
 documents of the
kind specified in paragraphs 2, 3, 5, and 11 of Part A of Schedule 3 in respect of Diana Wilhelmsen Management
Limited;

(b)             
 the documents
referred to in paragraph 3 of Part B of Schedule 3; and

(c)              
 any other
documents that the Agent may reasonably require.

15              
 Security Cover  

15.1         
 Minimum required
security cover

Clause 15.2 applies if, at any relevant time during the
Security Period, the Agent notifies the Borrowers that:

(a)              
 the aggregate of
the Market Value of the Ships; plus

(b)             
 the net
realisable value of any additional security previously provided under this
Clause 15,

is below 125 per cent of the Loan.

15.2         
 Provision of
additional security; prepayment

If the Agent serves a notice on the Borrowers under Clause 15.1, the Borrowers shall prepay such part at least
of the Loan as will eliminate the shortfall on or before the date falling 1
month after the date on which the Agent's notice is served under Clause 15.1 (the "Prepayment Date")
unless at least 1 Business Day before the Prepayment Date the Borrowers have
provided additional 

 612                                 EUROPE/66436786v5    

 

security which, in the opinion of
the Majority Lenders, has a net realisable value at least equal to the
shortfall and is documented in such terms as the Agent may, with the
authorisation of the Majority Lenders, approve or require. 

15.3         
 Valuation of
Ships

The Market Value of a Ship (or any
other Fleet Vessel) at any date during the Security Period is that shown by a
valuation to be prepared:

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

(b)              
 an Approved
Broker (selected by the Borrowers and appointed by the Agent);

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

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

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

Provided that if the Agent reasonably determines
that the Market Value of the Ship shown by a valuation prepared in accordance
with this Clause 15.3 does not accurately reflect the value of that
Ship, it shall have the right to appoint (at the Borrowers' expense) a second
Approved Broker to provide a valuation of that Ship addressed to the Agent and
prepared in accordance with the terms of this Agreement and the Market Value of
that Ship shall be the arithmetic average of the two valuations.

15.4         
 Value of
additional security

The net realisable value of any additional security which is
provided under Clause 15.2 shall be determined as follows:

(a)              
 if it consists
of a Security Interest over a vessel shall be that shown by a valuation
complying with the requirements of Clause 15.3; and

(b)             
 if it consists
of cash, the US Dollar amount thereof.

15.5         
 Valuations
binding

Any valuation under Clauses 15.2, 15.3 or 15.4 shall be binding and conclusive as regards the
Borrowers, as shall be any valuation which the Majority Lenders make of any
additional security which does not consist of or include a Security Interest.

15.6         
 Provision of
information

The Borrowers shall promptly provide the Agent and the Approved
Broker acting under Clauses 15.3 or 15.4 with any information which the Agent or the
Approved Broker may request for the 

 622                                 EUROPE/66436786v5    

 

purposes of the
valuation; and, if the Borrowers fail to provide the information by the date
specified in the request, the valuation may be made on any basis and
assumptions which the Approved Broker or the Majority Lenders (or the expert
appointed by them) consider prudent.

15.7         
 Payment of
valuation expenses

Without prejudice to the generality of the Borrowers' obligations
under Clauses 20.3, 20.4 and 21.3, the Borrowers shall, on demand, pay the Agent
the amount of the fees and expenses of the Approved Broker instructed by the
Agent under this Clause and all legal and other expenses incurred by any
Creditor Party in connection with any matter arising out of this Clause (provided
that no more than one valuation per Ship subject to a Mortgage per year and, if
required by the Agent pursuant to Clause 15.3, one additional valuation per such Ship per
year shall be payable by the Borrowers, save for if an Event of Default has
occurred which is continuing in which case the Borrowers shall be liable to pay
for all valuations that take place during the period such Event of Default is
continuing) and all legal and other expenses incurred by any Creditor Party in
connection with any matter arising out of this Clause.

15.8         
 Application of
prepayment

Clause 8.11 shall apply in relation to any prepayment
pursuant to Clause 15.1.

16              
 Payments and
Calculations  

16.1         
 Currency and
method of payments

All payments to be made by the Lenders or by any Borrower under a Finance
Document shall be made to the Agent or to the Security Trustee, in the case of
an amount payable to it:

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

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

(c)              
 in the case of
an amount payable by a Lender to the Agent or by a Borrower to the Agent or any
Lender, to such account as the Agent may from time to time notify to the
Borrowers and the other Creditor Parties; and  

(d)             
 in the case of
an amount payable to the Security Trustee, to such account as it may from time
to time notify to the Borrowers and the other Creditor Parties.

16.2         
 Payment on
non-Business Day

If any payment by any Borrower under a Finance Document would
otherwise fall due on a day which is not a Business Day:

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

 632                                 EUROPE/66436786v5    

 

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

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

16.3         
 Basis for
calculation of periodic payments

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

16.4         
 Distribution of
payments to Creditor Parties

Subject to Clauses 16.5, 16.6 and 16.7:

(a)              
 any amount
received by the Agent under a Finance Document for distribution or remittance
to a Lender, the Swap Bank or the Security Trustee shall be made available by
the Agent to that Lender, the Swap Bank or, as the case may be, the Security
Trustee by payment, with funds having the same value as the funds received, to
such account as the Lender, the Swap Bank or the Security Trustee may have
notified to the Agent not less than 5 Business Days previously; and

(b)             
 amounts to be
applied in satisfying amounts of a particular category which are due to the
Lenders and/or the Swap Bank generally shall be distributed by the Agent to
each Lender and the Swap Bank pro rata to the amount in that category which is
due to it.

16.5         
 Permitted
deductions by Agent

Notwithstanding any other provision of this Agreement or any other
Finance Document, the Agent may, before making an amount available to a Lender
or the Swap Bank, deduct and withhold from that amount any sum which is then
due and payable to the Agent from that Lender or the Swap Bank under any
Finance Document or any sum which the Agent is then entitled under any Finance
Document to require that Lender or the Swap Bank to pay on demand.

16.6         
 Agent only
obliged to pay when monies received

Notwithstanding any other provision of this Agreement or any other
Finance Document, the Agent shall not be obliged to make available to any
Borrower or any Lender or the Swap Bank any sum which the Agent is expecting to
receive for remittance or distribution to that Borrower or that Lender or the
Swap Bank until the Agent has satisfied itself that it has received that sum.

16.7         
 Refund to Agent
of monies not received

If and to the extent that the Agent makes available a sum to a
Borrower or a Lender or the Swap Bank, without first having received that sum,
that Borrower or (as the case may be) the Lender or the Swap Bank concerned
shall, on demand:

(a)              
 refund the sum
in full to the Agent; and  

 642                                 EUROPE/66436786v5    

 

(b)             
 pay to the Agent
the amount (as certified by the Agent) which will indemnify the Agent against
any funding or other loss, liability or expense incurred by the Agent as a
result of making the sum available before receiving it.  

16.8         
 Agent may assume
receipt

Clause 16.7 shall not affect any claim which the Agent has
under the law of restitution, and applies irrespective of whether the Agent had
any form of notice that it had not received the sum which it made available.

16.9         
 Creditor Party
accounts

Each Creditor Party shall maintain accounts showing the amounts
owing to it by the Borrowers and each Security Party under the Finance
Documents and all payments in respect of those amounts made by the Borrowers
and any Security Party.

16.10     
 Agent's
memorandum account

The Agent shall maintain a memorandum account showing the amounts
advanced by the Lenders and all other sums owing to the Agent, the Security
Trustee and each Lender from the Borrowers and each Security Party under the
Finance Documents and all payments in respect of those amounts made by the
Borrowers and any Security Party.

16.11     
 Accounts prima
facie evidence

If any accounts maintained under Clauses 16.9 and 16.10 show an amount to be owing by a Borrower or a
Security Party to a Creditor Party, those accounts shall be prima facie
evidence that that amount is owing to that Creditor Party.

17              
 Application of
Receipts  

17.1         
 Normal order of
application

Except as any Finance Document may otherwise provide, any sums
which are received or recovered by any Creditor Party under or by virtue of any
Finance Document shall be applied:

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

(i)                
 first, in or
towards satisfaction pro rata of all amounts then due and payable to the
Creditor Parties under the Finance Documents other than those amounts referred
to at paragraphs (ii) and (iii) (including, but without limitation, all
amounts payable by any Borrower under Clauses 20, 21 and 22 of this Agreement or by any Borrower or any
Security Party under any corresponding or similar provision in any other
Finance Document);

(ii)              
 secondly, in or
towards satisfaction pro rata of any and all amounts of interest or default
interest payable to the Creditor Parties under the Finance Documents (and, for
this purpose, the expression "interest" shall include any net
amount which a Borrower shall have become liable to pay or deliver under
section 2(e) (Obligations) of the Master 

 652                                 EUROPE/66436786v5    

 

Agreement but shall have failed to
pay or deliver to the Swap Bank at the time of application or distribution
under this Clause 17); and

(iii)             
 thirdly, in or
towards satisfaction pro rata of the Loan and the Swap Exposure (in the case of
the latter, calculated as at the actual Early Termination Date applying to each
particular Designated Transaction, or if no such Early Termination Date shall
have occurred, calculated as if an Early Termination Date occurred on the date
of application or distribution hereunder);

(b)             
 SECONDLY: in
retention of an amount equal to any amount not then due and payable under any
Finance Document but which the Agent, by notice to the Borrowers, the Security
Parties and the other Creditor 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 17.1(a); and

(c)              
 THIRDLY: any
surplus shall be paid to the Borrowers or to any other person appearing to be
entitled to it.

17.2         
 Variation of
order of application

The Agent may, with the authorisation of the Majority Lenders and
the Swap Bank, by notice to the Borrowers, the Security Parties and the other
Creditor Parties provide for a different manner of application from that set
out in Clause 17.1 either as regards a specified sum or sums or
as regards sums in a specified category or categories.

17.3         
 Notice of variation
of order of application

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

17.4         
 Appropriation
rights overridden

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

18              
 Application of
Earnings

18.1         
 Payment of
Earnings  

Each Borrower undertakes with each Creditor Party to ensure that,
throughout the Security Period (and subject only to the provisions of the
General Assignments) all Earnings of the Ship owned by it (including but not
limited to any sale and/or insurance proceeds) are paid to the Earnings Account
for that Ship.

18.2         
 Location of
accounts

Each Borrower shall promptly:

 662                                 EUROPE/66436786v5    

 

(a)              
 comply with any
requirement of the Agent as to the location or re location of its Earnings
Account; and

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

18.3         
 Debits for
expenses etc.

The Agent shall be entitled (but not obliged) from time to time to
debit any Earnings Account without prior notice in order to discharge any
amount due and payable under Clause 20 or 21 to a Creditor Party or payment of which any
Creditor Party has become entitled to demand under Clause 20 or 21.

18.4         
 Borrowers'
obligations unaffected

The provisions of this Clause 18 do not affect:

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

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

18.5         
 Earnings
Accounts balances

Subject to the other terms of this Agreement (including, without
limitation, the terms of this Clause 18), the monies on the Earnings Account shall be
freely available to the Borrowers to be used in accordance with and in
compliance with the terms and conditions of this Agreement subject to no Event
of Default having occurred which is continuing and the Agent having given
notice to the Borrowers that such monies shall not be freely available as a
result of such Event of Default.

19              
 Events of Default  

19.1         
 Events of
Default

An Event of Default occurs if:

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

(b)             
 any breach
occurs of Clauses 9.2, 10.18, 10.19, 11.2, 11.3, 11.9, 11.18, 11.19, 11.21,
11.22, 11.23, 12.2, 12.3, 13.2, 13.3, 15.1, 15.2 and 12.4 of the Corporate Guarantee; or

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

 672                                 EUROPE/66436786v5    

 

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

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

(f)               
 any of the
following occurs in relation to any Financial Indebtedness of a Relevant Person
(in the case of all Relevant Persons (taken as a whole) exceeding in aggregate
$10,000,000 (or the equivalent in any other currency) at any relevant time Provided
that in the case of each Borrower, individually, any Financial Indebtedness
exceeding $500,000 (or the equivalent in any other currency)):

(i)                
 any Financial
Indebtedness of a Relevant Person is not paid when due; or

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

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

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

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

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

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

(ii)              
 any assets of a
Relevant Person are subject to any form of execution, attachment, arrest,
sequestration or distress in respect of a sum of, or sums exceeding, in aggregate,
in the case of all Relevant Persons (taken as a whole) $10,000,000 (or the
equivalent in any other currency) at any relevant time  Provided that in
the case of each Borrower, individually, any sum of, or sums exceeding, in
aggregate $500,000 (or the equivalent in any other currency);

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

 682                                 EUROPE/66436786v5    

 

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

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

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

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

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

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

 692                                 EUROPE/66436786v5    

 

order,
by the filing of documents with a court, by means of a contract or in any other
way at all; or

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

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

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

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

(i)                
 for any Borrower,
the Corporate Guarantor or any Security Party to discharge any liability under
a Finance Document or to comply with any other obligation which the Majority
Lenders consider material under a Finance Document;

(ii)              
 for the Agent,
the Security Trustee, the Lenders or the Swap Bank to exercise or enforce any
right under, or to enforce any Security Interest created by, a Finance
Document; or

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

(k)              
 it appears to the
Majority Lenders that, without their prior consent, a change has occurred or
probably has occurred after the date of this Agreement in the ownership of any
of the shares in a Borrower or the Approved Manager; or

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

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

(n)             
 without the
prior consent of the Lenders, the shares of the Corporate Guarantor cease to be
listed on the New York Stock Exchange; or

 702                                 EUROPE/66436786v5    

 

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

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

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

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

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

in the light of which the Majority Lenders consider that there is
a significant risk that any  Borrower or Corporate Guarantor is, or will later
become, unable to discharge its liabilities under the Finance Documents as they
fall due.

19.2         
 Actions
following an Event of Default

On, or at any time after, the occurrence of an Event of Default:

(a)              
 the Agent may,
and if so instructed by the Majority Lenders, the Agent shall:

(i)                
 serve on the
Borrowers a notice stating that all or part of the Commitments and of the other
obligations of each Lender to the Borrowers under this Agreement are cancelled;
and/or

(ii)              
 serve on the
Borrowers a notice stating that all or part of the Loan together with accrued
interest and all other amounts accrued or owing under this Agreement are
immediately due and payable or are due and payable on demand; and/or

(iii)             
 take any other
action which, as a result of the Event of Default or any notice served under
paragraph (i) or (ii), the Agent and/or the Lenders are entitled to
take under any Finance Document or any applicable law; and/or

(b)             
 the Security
Trustee may, and if so instructed by the Agent, acting with the authorisation
of the Majority Lenders, the Security Trustee shall take any action which, as a
result of the Event of Default or any notice served under paragraph (a)(i) or (ii), the Security Trustee, the Agent and/or the
Lenders and/or the Swap Bank are entitled to take under any Finance Document or
any applicable law.

19.3         
 Termination of
Commitments

On the service of a notice under Clause 19.2(a)(i), the Commitments and all other obligations of
each Lender to the Borrowers under this Agreement shall be cancelled.

 712                                 EUROPE/66436786v5    

 

19.4         
 Acceleration of
Loan

On the service of a notice under Clause 19.2(a)(ii), all or, as the case may be, the part of the
Loan specified in the notice together with accrued interest and all other
amounts accrued or owing from the Borrowers or any Security Party under this
Agreement and every other Finance Document shall become immediately due and
payable or, as the case may be, payable on demand.

19.5         
 Multiple
notices; action without notice

The Agent may serve notices under Clauses 19.2(a)(i) and (ii) simultaneously or on different dates and it
and/or the Security Trustee may take any action referred to in Clause 19.2 if no such notice is served or simultaneously
with or at any time after the service of both or either of such notices.

19.6         
 Notification of
Creditor Parties and Security Parties

The Agent shall send to each Lender, the Swap Bank, the Security
Trustee and each Security Party a copy or the text of any notice which the
Agent serves on the Borrowers under Clause 19.2; but the notice shall become effective when it
is served on the Borrowers, and no failure or delay by the Agent to send a copy
or the text of the notice to any other person shall invalidate the notice or
provide any Borrower or any Security Party with any form of claim or defence.

19.7         
 Creditor Party's
rights unimpaired

Nothing in this Clause shall be taken to impair or restrict the
exercise of any right given to individual Lenders or the Swap Bank under a
Finance Document or the general law; and, in particular, this Clause is without
prejudice to Clause 3.1. 

19.8         
 Exclusion of
Creditor Party liability

No Creditor Party, and no receiver or manager appointed by the
Security Trustee, shall have any liability to a Borrower or a Security Party:

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

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

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

19.9         
 Relevant Persons

In this Clause 19, a "Relevant Person" means a
Borrower, the Corporate Guarantor or a Security Party, and any company which is
a subsidiary of the Corporate Guarantor or a Security Party and 

 722                                 EUROPE/66436786v5    

any other member of the Group but excluding any company
which is dormant and the value of whose gross assets is $50,000 or less.

19.10     
 Interpretation

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

19.11     
 Position of Swap
Bank

Neither the Agent nor the Security Trustee shall be obliged, in
connection with any action taken or proposed to be taken under or pursuant to
the foregoing provisions of this Clause 19, to have any regard to the requirements of the
Swap Bank except to the extent that the Swap Bank is also a Lender.

20              
 Fees and
Expenses  

20.1         
 Arrangement fee

The Borrowers shall pay to the Agent, on the date of this
Agreement, a non-refundable arrangement fee computed at the rate of 0.30 per cent. of
the Total Commitments for distribution among the Lenders pro rata to their
Commitments. 

20.2         
 Extension fee

(a)              
 The Borrowers
shall pay to the Agent, for the account of each Lender that accepts an
Extension Request in accordance with Clause 8.3(f), a non-refundable extension fee computed at
the rate of 0.15 per cent. of that Lender's Commitments.

(b)             
 Any extension
fee is payable on the date falling 5 Business Days after the relevant Cut-Off
Date (irrespective
of whether the Final
Maturity Date may have not yet been extended in accordance with Clause 8.3(f)).

20.3         
 Costs of
negotiation, preparation etc.

The Borrowers shall pay to the Agent on its demand the amount of
all expenses incurred by the Agent or the Security Trustee in connection with
the negotiation, preparation, execution or registration of any Finance Document
or any related document or with any transaction contemplated by a Finance
Document or a related document.

20.4         
 Costs of
variations, amendments, enforcement etc.

The Borrowers shall pay to the Agent, on the Agent's demand, for
the account of the Creditor Party concerned, the amount of all expenses
incurred by a Creditor Party in connection with: 

(a)              
 any amendment or
supplement to a Finance Document (required for the continuation of the
availability of the Loan or as contemplated under Clause 27.4), or any proposal for such an amendment to be
made;  

 

(b)             
 any consent or
waiver by the Lenders, the Swap Bank, the Majority Lenders or the Creditor
Party concerned under or in connection with a Finance Document, or any request
for such a consent or waiver;

(c)              
 the valuation of
any security provided or offered under Clause 15 or any other matter relating to such security;
or

(d)             
 where the
Security Trustee, in its absolute opinion, considers that there has been a
material change to the insurances in respect of a Ship, the review of the
insurances of that Ship pursuant to Clause 13.18; and

(e)              
 any step taken
by the Creditor party concerned or the Swap Bank with a view to the protection,
exercise or enforcement of any right or Security Interest created by a Finance
Document or for any similar purpose.

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

20.5         
 Extraordinary
management time

The Borrowers shall pay to the Agent on its demand compensation in
respect of the reasonable and documented amount of time which the management of
either Servicing Bank has spent in connection with a matter covered by Clause 20.4 and which exceeds the amount of time which
would ordinarily be spent in the performance of the relevant Servicing Bank's
routine functions.  Any such compensation shall be based on such reasonable
daily or hourly rates as the Agent may notify to the Borrowers and is in
addition to any fee paid or payable to the relevant Servicing Bank.

20.6         
 Documentary
taxes

The Borrowers shall promptly pay any tax payable on or by
reference to any Finance Document, and shall, on the Agent's demand, fully
indemnify each Creditor Party against any claims, expenses, liabilities and
losses resulting from any failure or delay by the Borrowers to pay such a tax.

20.7         
 Financial
Services Authority fees

The Borrowers shall pay to the Agent, on the Agent's demand, for
the account of the Lender concerned the amounts which the Agent from time to
time notifies the Borrowers that a Lender has notified the Agent to be
necessary to compensate it for the cost attributable to its Contribution resulting
from the imposition from time to time under or pursuant to the Bank of England
Act 1998 and/or by the Bank of England and/or by the Financial Services
Authority (or other United Kingdom governmental authorities or agencies) of a
requirement to pay fees to the Financial Services Authority calculated by
reference to liabilities used to fund its Contribution.

20.8         
 Certification of
amounts

A notice which is signed by 2 officers of a Creditor Party, which
states that a specified amount, or aggregate amount, is due to that Creditor
Party under this Clause 20 and which indicates (without 

 742                                 EUROPE/66436786v5     

 

necessarily specifying a detailed breakdown) the matters
in respect of which the amount, or aggregate amount, is due shall be prima
facie evidence that the amount, or aggregate amount, is due.

21              
 Indemnities  

21.1         
 Indemnities
regarding borrowing and repayment of Loan

The Borrowers shall fully indemnify the Agent and each Lender on
the Agent's demand and the Security Trustee on its demand in respect of all
claims, expenses, liabilities and losses which are made or brought against or
incurred by that Creditor Party, or which that Creditor Party reasonably and
with due diligence estimates that it will incur, as a result of or in
connection with:

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

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

(c)              
 any failure (for
whatever reason) by the Borrowers to make payment of any amount due under a
Finance Document on the due date or, if so payable, on demand (after giving
credit for any default interest paid by the Borrowers on the amount concerned
under Clause 7); and

(d)             
 the occurrence
of an Event of Default or a Potential Event of Default and/or the acceleration
of repayment of the Loan under Clause 19,

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

21.2         
 Breakage costs

Without limiting its generality, Clause 21.1 covers any claim, expense, liability or loss,
including a loss of a prospective profit, incurred by a Lender:

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

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

 752                                 EUROPE/66436786v5     

 

21.3         
 Miscellaneous
indemnities

The Borrowers shall fully indemnify each Creditor Party severally
on their respective demands in respect of all claims, expenses, liabilities and
losses which may be made or brought against or incurred by a Creditor Party, in
any country, as a result of or in connection with:

(a)              
 any action
taken, or omitted or neglected to be taken, under or in connection with any
Finance Document by the Agent, the Security Trustee or any other Creditor Party
or by any receiver appointed under a Finance Document; or

(b)             
 any civil
penalty or fine against, and all reasonable costs and expenses (including
reasonable fees of counsel and disbursements) incurred in connection with or
the defence thereof by, the Agent or any other Creditor Party as a result of
conduct of any Borrower or any of their partners, directors, officers,
employees, agents or advisors, that violates any Sanctions Laws; or

(c)              
 any other
Pertinent Matter,

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

Without prejudice to its generality, this Clause 21.3 covers any claims, expenses, liabilities and
losses which arise, or are asserted, under or in connection with any law
relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law
or any Sanctions Laws.

21.4         
 Environmental
Indemnity

Without prejudice to its generality, Clause 21.3 covers any claims, demands, proceedings,
liabilities, taxes, losses or expenses of every kind which arise, or are
asserted, under or in connection with any law relating to safety at sea,
pollution or the protection of the environment, the ISM Code or the ISPS Code.

21.5         
 Currency
indemnity

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

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

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

(c)              
 enforcing any
such order or judgment,

the Borrowers shall indemnify the Creditor Party concerned against
the loss arising when the amount of the payment actually received by that
Creditor Party is converted at the available rate of exchange into the
Contractual Currency.

 762                                 EUROPE/66436786v5     

 

In this
Clause 21.5, the "available rate of exchange"
means the rate at which the Creditor Party concerned is able at the opening of
business (London time) on the Business Day after it receives the sum concerned
to purchase the Contractual Currency with the Payment Currency.

This Clause 21.5 creates a separate liability of the Borrowers
which is distinct from their other liabilities under the Finance Documents and
which shall not be merged in any judgment or order relating to those other
liabilities.

21.6         
 Application to
Master Agreement

For the avoidance of doubt, Clause 21.5 does not apply in respect of sums due from the
Borrowers to the Swap Bank under or in connection with the Master Agreement as
to which sums the provisions of section 8 (Contractual Currency) of the
Master Agreement shall apply.

21.7         
 Mandatory Cost

Each Borrower shall, on demand by the Agent, pay to the Agent for
the account of the relevant Lender, such amount which any Lender certifies in a
notice to the Agent to be its good faith determination of the amount necessary
to compensate it for complying with:

(a)              
 in the case of a
Lender lending from a Facility Office in a Participating Member State, the
minimum reserve requirements (or other requirements having the same or similar
purpose) of the European Central Bank (or any other authority or agency which
replaces all or any of its functions) in respect of loans made from that
Facility Office; and

(b)             
 in the case of
any Lender lending from a Facility Office in the United Kingdom, any reserve
asset, special deposit or liquidity requirements (or other requirements having
the same or similar purpose) of the Bank of England (or any other governmental
authority or agency) and/or paying any fees to the Financial Conduct Authority
and/or the Prudential Regulation Authority (or any other governmental authority
or agency which replaces all or any of their functions),

which, in each case, is referable to that Lender's participation
in the Loan.

21.8         
 Certification of
amounts

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

21.9         
 Sums deemed due
to a Lender

For the purposes of this Clause 21, a sum payable by the Borrowers to the Agent
or the Security Trustee for distribution to a Lender shall be treated as a sum
due to that Lender.

 772                                 EUROPE/66436786v5     

 

22              
 No Set-off or
Tax Deduction  

22.1         
 No deductions

All amounts due from the Borrowers under a Finance Document shall
be paid:

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

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

22.2         
 Grossing-up for
taxes

If a Borrower is required by law to make a tax deduction from any
payment:

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

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

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

22.3         
 Evidence of
payment of taxes

Within 1 month after making any tax deduction, the Borrower
concerned shall deliver to the Agent documentary evidence satisfactory to the
Agent that the tax had been paid to the appropriate taxation authority.

22.4         
 Exclusion of tax
on overall net income

In this Clause 22 "tax deduction" means any
deduction or withholding for or on account of any present or future tax except
tax on a Creditor Party's overall net income, other than a FATCA Deduction.

22.5         
 Application to
Master Agreement

For the avoidance of doubt, Clause 22 does not apply in respect of sums due from the
Borrowers to the Swap Bank under or in connection with the Master Agreement as
to which sums the provisions of section 2(d) (Deduction or Withholding for
Tax) of the Master Agreement shall apply.

22.6         
 FATCA
Information

(a)              
 Subject to
paragraph (c) below, each Party shall, within ten Business
Days of a reasonable request by another Party:

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

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(A)             
 a FATCA Exempt
Party; or

(B)             
 not a FATCA
Exempt Party; and

(ii)              
 supply to that
other Party such forms, documentation and other information relating to its
status under FATCA as that other Party reasonably requests for the purposes of
that other Party's compliance with FATCA; and

(iii)             
 supply to that
other Party such forms, documentation and other information relating to its
status as that other Party reasonably requests for the purposes of that other
Party's compliance with any other law, regulation or exchange of information
regime.

(b)             
 If a Party
confirms to another Party pursuant to sub-paragraph (i) of paragraph (a) 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)              
 Paragraph (a) above shall not oblige any Creditor Party to
do anything and sub-paragraph (iii) of paragraph (a) above shall not oblige any other Party to do
anything which would or might in its reasonable opinion constitute a breach of:

(i)                
 any law or
regulation;

(ii)              
 any fiduciary
duty; or

(iii)             
 any duty of
confidentiality.

(d)             
 If a Party fails
to confirm whether or not it is a FATCA Exempt Party or to supply forms,
documentation or other information requested in accordance with sub-paragraphs (i) or (ii) of paragraph (a) above (including, for the avoidance of doubt,
where paragraph (c) above applies), then such Party shall be
treated for the purposes of the Finance Documents (and payments under them) as
if it is not a FATCA Exempt Party until such time as the Party in question
provides the requested confirmation, forms, documentation or other information.

(e)              
 If a Borrower is
a US Tax Obligor, or the Agent reasonably believes that its obligations under
FATCA or any other applicable law or regulation require it, each Lender shall,
within ten Business Days of:

(i)                
 where a Borrower
is a US Tax Obligor and the relevant Lender is a Lender as of the date of this
Agreement, the date of this Agreement;

(ii)              
 where a Borrower
is a US Tax Obligor on a date where a transfer is effected under Clause 26.2 and the relevant Lender is a Transferee
Lender, the relevant date on which such transfer is effected under Clause 26.2; or

(iii)             
 where a Borrower
is not a US Tax Obligor, the date of a request from the Agent,

supply to the Agent:

(i)                
 a withholding
certificate on Form W-8, Form W-9 or any other relevant form; or

 792                                 EUROPE/66436786v5     

 

(ii)              
 any withholding
statement or other document, authorisation or waiver as the Agent may require
to certify or establish the status of such Lender under FATCA or that other law
or regulation.

(f)               
 The Agent shall
provide any withholding certificate, withholding statement, document,
authorisation or waiver it receives from a Lender pursuant to paragraph (e) above to the Borrowers.

(g)              
 If any
withholding certificate, withholding statement, document, authorisation or
waiver provided to the Agent by a Lender pursuant to paragraph (e) above is or becomes materially inaccurate or
incomplete, that Lender shall promptly update it and provide such updated
withholding certificate, withholding statement, document, authorisation or
waiver to the Agent unless it is unlawful for the Lender to do so (in which
case the Lender shall promptly notify the Agent).  The Agent shall provide any
such updated withholding certificate, withholding statement, document,
authorisation or waiver to the Borrowers.

(h)             
 The Agent may rely
on any withholding certificate, withholding statement, document, authorisation
or waiver it receives from a Lender pursuant to paragraph (e) or (g) above without further verification.  The Agent
shall not be liable for any action taken by it under or in connection with
paragraphs (e), (f) or (g) above.

22.7         
 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 and, in addition, shall notify each Borrower
and the Agent and the Agent shall notify the other Creditor Parties.

23              
 Illegality, etc.

23.1         
 Illegality

This Clause 23 applies if a Lender (the "Notifying
Lender") notifies the Agent that it has become, or will with effect
from a specified date, become:

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

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

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

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23.2         
 Notification of
illegality

The Agent shall promptly notify the Borrowers, the Security
Parties, the Security Trustee and the other Lenders of the notice under Clause 23.1 which the Agent receives from the Notifying
Lender.

23.3         
 Prepayment;
termination of Commitment

On the Agent notifying the Borrowers under Clause 23.2, the Notifying Lender's Commitment shall
terminate; and thereupon or, if later, on the date specified in the Notifying
Lender's notice under Clause 23.1 as the date on which the notified event would
become effective the Borrowers shall prepay the Notifying Lender's Contribution
in accordance with Clause 8.

23.4         
 Mitigation

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

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

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

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

24              
 Increased Costs  

24.1         
 Increased costs

This Clause 24 applies if a Lender (the "Notifying
Lender") notifies the Agent that the Notifying Lender considers that
as a result of:

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

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

(c)              
 complying with
any regulation (including 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 and any other regulation which relates to capital
adequacy or liquidity controls or which affects the manner in 

 812                                 EUROPE/66436786v5     

 

which
the Notifying Lender allocates capital resources to its obligations under this
Agreement) which is introduced, or altered, or the interpretation or
application of which is altered, after the date of this Agreement; or

(d)             
 the
introduction, implementation, application, administration or compliance with
Basel III or CRD IV, or any law or regulation which implements or applies Basel
III or CRD IV (regardless of the date on which it is enacted, adopted or issued
and regardless of whether any such implementation, application or compliance is
by a government, regulator, the Creditor Party or any of its affiliates) after
the date of this Agreement,

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

24.2         
 Meaning of "increased
costs"

In this Clause 24, "increased costs" means, in
relation to a Notifying Lender:

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

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

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

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

but not an item attributable to a change in the rate of tax on the
overall net income of the Notifying Lender (or a parent company of it) or an
item compensated for by any payment made pursuant to Clause 21.7 or an item covered by the indemnity for tax in
Clause 21.1 or by Clause 22 or a FATCA Deduction.

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

24.3         
 Notification to
Borrowers of claim for increased costs

The Agent shall promptly notify the Borrowers and the Security
Parties of the notice which the Agent received from the Notifying Lender under
Clause 24.1.

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24.4         
 Payment of
increased costs

The Borrowers shall pay to the Agent, on the Agent's demand, for
the account of the Notifying Lender the amounts which the Agent from time to
time notifies the Borrowers that the Notifying Lender has specified to be
necessary to compensate the Notifying Lender for the increased cost.

24.5         
 Notice of
prepayment

If the Borrowers are not willing to continue to compensate the
Notifying Lender for the increased cost under Clause 24.4, the Borrowers may give the Agent not less
than 14 days' notice of its intention to prepay the Notifying Lender's
Contribution at the end of an Interest Period.

24.6         
 Prepayment; termination
of Commitment

A notice under Clause 24.5 shall be irrevocable; the Agent shall promptly
notify the Notifying Lender of the Borrowers' notice of intended prepayment;
and:

(a)              
 on the date on
which the Agent serves that notice, the Commitment of the Notifying Lender
shall be cancelled; and

(b)             
 on the date
specified in its notice of intended prepayment, the Borrowers shall prepay
(without premium or penalty) the Notifying Lender's Contribution, together with
accrued interest thereon at the applicable rate plus the Margin and the
Mandatory Cost (if any).

24.7         
 Application of
prepayment

Clause 8 shall apply in relation to the prepayment.

25              
 Set off

25.1         
 Application of
credit balances

Each Creditor Party may without prior notice:

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

(b)             
 for that
purpose:

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

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

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

 832                                 EUROPE/66436786v5     

 

25.2         
 Existing rights
unaffected

No Creditor Party shall be obliged to exercise any of its rights
under Clause 25.1; and those rights shall be without prejudice
and in addition to any right of set off, combination of accounts, charge, lien
or other right or remedy to which a Creditor Party is entitled (whether under
the general law or any document).

25.3         
 Sums deemed due
to a Lender

For the purposes of this Clause 25, a sum payable by the Borrowers to the Agent
or the Security Trustee for distribution to, or for the account of, a Lender
shall be treated as a sum due to that Lender; and each Lender's proportion of a
sum so payable for distribution to, or for the account of, the Lenders shall be
treated as a sum due to such Lender.

25.4         
 No Security
Interest

This Clause 25 gives the Creditor Parties
a contractual right of set-off only,
and does not create any equitable charge or other Security Interest over any
credit balance of any Borrower. 

26              
 Transfers and
Changes in Facility Offices

26.1         
 Transfer by
Borrowers

No Borrower may, without the consent of the Agent, given on the
instructions of all the Lenders transfer any of its rights, liabilities or
obligations under any Finance Document.

26.2         
 Transfer by a
Lender

Subject to Clause 26.4, a Lender (the "Transferor Lender")
may at any time cause: 

(a)              
 its rights in
respect of all or part of its Contribution; or

(b)             
 its obligations
in respect of all or part of its Commitment; or

(c)              
 a combination of
(a) and (b),

to be (in the case of its rights) transferred to, or (in the case
of its obligations) assumed by, another bank or financial institution or a
trust, fund or other entity which is regularly engaged in or established for
the purpose of making, purchasing or investing in loans, securities or other
financial assets (a "Transferee Lender") by delivering to the
Agent a completed certificate in the form set out in Schedule 4 with any modifications approved or required by
the Agent (a "Transfer Certificate") executed by the
Transferor Lender and the Transferee Lender. 

However any rights and obligations of the Transferor Lender in its
capacity as Agent or Security Trustee will have to be dealt with separately in
accordance with the Agency and Trust Deed.

A transfer pursuant to this Clause 26.2 shall be effected:

(i)                
 without the
consent of the Borrowers:

 842                                 EUROPE/66436786v5     

 

(A)             
 following the
occurrence of an Event of Default which is continuing; and/or

(B)             
 if such transfer
is to another Lender or an affiliate of a Lender;

(ii)              
 in all other
circumstances with the consent of the Borrowers (such consent not to be
unreasonably withheld or delayed) and the Borrowers will be deemed to have
given their consent 5 Business Days following the request of the Transferor
Lender, unless the consent is expressly refused by the Borrowers within that
time.

26.3         
 Transfer
Certificate, delivery and notification

As soon as reasonably practicable after a Transfer Certificate is
delivered to the Agent, it shall (unless it has reason to believe that the
Transfer Certificate may be defective):

(a)              
 sign the
Transfer Certificate on behalf of itself, the Borrowers, the Security Parties,
the Security Trustee, each of the other Lenders and the Swap Bank;

(b)             
 on behalf of the
Transferee Lender, send to each Borrower and each Security Party letters or
faxes notifying them of the Transfer Certificate and attaching a copy of it;
and

(c)              
 send to the
Transferee Lender copies of the letters or faxes sent under paragraph (b) above,

but the Agent shall only be obliged to execute a Transfer
Certificate delivered to it by the Transferor Lender and the Transferee Lender
once it is satisfied it has complied with all necessary "know your
customer" or other similar checks under all applicable laws and
regulations in relation to the transfer to that Transferee Lender.

26.4         
 Effective Date
of Transfer Certificate

A Transfer Certificate becomes effective on the date, if any,
specified in the Transfer Certificate as its effective date,  Provided that
it is signed by the Agent under Clause 26.3 on or before that date.

26.5         
 No transfer
without Transfer Certificate

Except as provided in Clause 26.17, no assignment or transfer of any right or
obligation of a Lender under any Finance Document is binding on, or effective
in relation to, any Borrower, any Security Party, the Agent or the Security
Trustee unless it is effected, evidenced or perfected by a Transfer
Certificate. 

26.6         
 Lender
re-organisation; waiver of Transfer Certificate

However, if a Lender enters into any merger, de-merger or other
reorganisation as a result of which all its rights or obligations vest in
another person (the "successor"), the Agent may, if it sees
fit, by notice to the successor and the Borrowers and the Security Trustee
waive the need for the execution and delivery of a Transfer Certificate; and,
upon service of the Agent's notice, the successor shall become a Lender with
the same Commitment and Contribution as were held by the predecessor Lender.

 852                                 EUROPE/66436786v5     

 

26.7         
 Effect of
Transfer Certificate

A Transfer Certificate takes effect in accordance with English law
as follows:

(a)              
 to the extent
specified in the Transfer Certificate, all rights and interests (present,
future or contingent) which the Transferor Lender has under or by virtue of the
Finance Documents are assigned to the Transferee Lender absolutely, free of any
defects in the Transferor Lender's title and of any rights or equities which
any Borrower or any Security Party had against the Transferor Lender;

(b)             
 the Transferor
Lender's Commitment is discharged to the extent specified in the Transfer
Certificate;

(c)              
 the Transferee
Lender becomes a Lender with the Contribution previously held by the Transferor
Lender and a Commitment of an amount specified in the Transfer Certificate;

(d)             
 the Transferee
Lender becomes bound by all the provisions of the Finance Documents which are
applicable to the Lenders generally, including those about pro rata sharing and
the exclusion of liability on the part of, and the indemnification of, the
Agent and the Security Trustee and, to the extent that the Transferee Lender
becomes bound by those provisions (other than those relating to exclusion of
liability), the Transferor Lender ceases to be bound by them;

(e)              
 any part of the
Loan which the Transferee Lender advances after the Transfer Certificate's effective
date ranks in point of priority and security in the same way as it would have
ranked had it been advanced by the transferor, assuming that any defects in the
transferor's title and any rights or equities of any Borrower or any Security
Party against the Transferor Lender had not existed;

(f)               
 the Transferee
Lender becomes entitled to all the rights under the Finance Documents which are
applicable to the Lenders generally, including but not limited to those
relating to the Majority Lenders and those under Clause 5.7 and Clause 20, and to the extent that the Transferee Lender
becomes entitled to such rights, the Transferor Lender ceases to be entitled to
them; and

(g)              
 in respect of
any breach of a warranty, undertaking, condition or other provision of a
Finance Document or any misrepresentation made in or in connection with a
Finance Document, the Transferee Lender shall be entitled to recover damages by
reference to the loss incurred by it as a result of the breach or
misrepresentation, irrespective of whether the original Lender would have incurred
a loss of that kind or amount.

The rights and equities of any Borrower or any Security Party
referred to above include, but are not limited to, any right of set off and any
other kind of cross claim.

26.8         
 Maintenance of
register of Lenders

During the Security Period the Agent shall maintain a register in
which it shall record the name, Commitment, Contribution and administrative
details (including the Facility Office) from time to time of each Lender
holding a Transfer Certificate and the effective date (in accordance with
Clause 26.4) of the Transfer Certificate; and the Agent
shall make the register available for inspection by 

 862                                 EUROPE/66436786v5     

 

any
Lender, the Security Trustee and the Borrowers during normal banking hours,
subject to receiving at least 3 Business Days' prior notice.

26.9         
 Reliance on
register of Lenders

The entries on that register shall, in the absence of manifest
error, be conclusive in determining the identities of the Lenders and the
amounts of their Commitments and Contributions and the effective dates of
Transfer Certificates and may be relied upon by the Agent and the other parties
to the Finance Documents for all purposes relating to the Finance Documents.

26.10     
 Authorisation of
Agent to sign Transfer Certificates

Each Borrower, the Security Trustee, each Lender and the Swap Bank
irrevocably authorise the Agent to sign Transfer Certificates on its behalf.

26.11     
 Registration fee

In respect of any Transfer Certificate, the Agent shall be
entitled to recover a registration fee of $3,000 from the Transferor Lender or
(at the Agent's option) the Transferee Lender.

26.12     
 Sub-participation;
subrogation assignment

A Lender may sub participate all or any part of its rights and/or
obligations under or in connection with the Finance Documents without the
consent of, or any notice to, any Borrower, any Security Party, the Agent or
the Security Trustee or any other Creditor Party; and the Lenders may assign,
in any manner and terms agreed by the Majority Lenders, the Agent and the
Security Trustee, all or any part of those rights to an insurer or surety who
has become subrogated to them.

26.13     
 Disclosure of
information

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

26.14     
 Change of Facility Office

A Lender may change its Facility Office by giving notice to the
Agent and the change shall become effective on the later of:

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

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

26.15     
 Notification

On receiving such a notice, the Agent shall notify the Borrowers
and the Security Trustee; and, until the Agent receives such a notice, it shall
be entitled to assume that a Lender is acting through the Facility Office of
which the Agent last had notice.

 872                                 EUROPE/66436786v5     

 

26.16       Replacement of the Reference Bank

If the Reference Bank ceases to be a Lender or is unable on a
continuing basis to supply quotations for the purposes of Clause 5 then, unless the Borrowers, the Agent and the
Majority Lenders otherwise agree, the Agent, acting on the instructions of the
Majority Lenders, and after consulting the Borrowers, shall appoint another
bank (whether or not a Lender) to be a replacement Reference Bank; and, when
that appointment comes into effect, the first mentioned Reference Bank's
appointment shall cease to be effective.

26.17     
 Security over
Lenders' rights

In addition to the other rights provided to Lenders under this
Clause 26, each Lender may without consulting with or
obtaining consent from any Borrower or any Security Party, at any time charge,
assign or otherwise create a Security Interest in or over (whether by way of
collateral or otherwise) all or any of its rights under any Finance Document to
secure obligations of that Lender including, without limitation:

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

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

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

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

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

27              
 Variations and
waivers  

27.1         
 Variations,
waivers etc. by Majority Lenders

Subject to Clause 27.2, a document shall be effective to vary, waive,
suspend or limit any provision of a Finance Document, or any Creditor Party's
rights or remedies under such a provision or the general law, only if the
document is signed, or specifically agreed to by fax, by the Borrowers, by the
Agent on behalf of the Majority Lenders, by the Agent and the Security Trustee
in their own rights, and, if the document relates to a Finance Document to
which a Security Party is party, by that Security Party.

 882                                 EUROPE/66436786v5     

 

27.2         
 Variations,
waivers etc. requiring agreement of all Lenders.

However, as regards the following, Clause 27.1 applies as if the words "by the Agent on
behalf of the Majority Lenders" were replaced by the words "by or on
behalf of every Lender and the Swap Bank":

(a)              
 a reduction in
the Margin;

(b)             
 a postponement
to the date for, or a reduction in the amount of, any payment of principal,
interest, fees or other sum payable under this Agreement;

(c)              
 an increase in
any Lender's Commitment;

(d)             
 a change to the
definition of "Majority Lenders"; 

(e)              
 a change to
Clause 3 or this Clause 27;

(f)               
 any release of,
or material variation to, a Security Interest, guarantee, indemnity or
subordination arrangement set out in a Finance Document; and

(g)              
 any other change
or matter as regards which this Agreement or another Finance Document expressly
provides that each Lender's consent is required.

27.3         
 Exclusion of
other or implied variations

Except for a document which satisfies the requirements of Clauses 27.1, 27.2  and  27.4, no document, and no act, course of conduct,
failure or neglect to act, delay or acquiescence on the part of the Creditor
Parties or any of them (or any person acting on behalf of any of them) shall
result in the Creditor Parties or any of them (or any person acting on behalf
of any of them) being taken to have varied, waived, suspended or limited, or
being precluded (permanently or temporarily) from enforcing, relying on or
exercising:

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

(b)             
 an Event of
Default; or  

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

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

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

27.4         
 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:

 892                                 EUROPE/66436786v5     

 

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

(ii)              
  

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

(B)             
 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);

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

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

(E)              
 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
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 Agent (acting on the
instructions of the Majority Lenders) and the Borrowers.

(b)             
 If any Lender
fails to respond to a request for an amendment or waiver described in paragraph
(a) above within 5 Business Days (or such longer
time period in relation to any request which the Borrowers and the Agent may
agree) of that request being made:

(i)                
 its Commitment
or its participation in the Loan (as the case may be) shall not be included for
the purpose of calculating the Total Commitments or the amount of the Loan (as
applicable) when ascertaining whether any relevant percentage of Total
Commitments or the aggregate of participations in the Loan (as applicable) has
been obtained to approve that request; and

(ii)              
 its status as a
Lender shall be disregarded for the purpose of ascertaining whether the agreement
of any specified group of Lenders has been obtained to approve that request.

28              
 Notices  

28.1         
 General

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

 902                                 EUROPE/66436786v5     

 

28.2         
 Addresses for
communications

A notice by letter or fax shall be sent:

(a)              
 to the
Borrowers:                                             c/o Approved Manager

16
Pendelis Street

175
64 Paleo Faliro

Athens

Greece

Fax No: +30 210 9470101

(b)              
 to a Lender:                                                        at
the address below its name in Schedule 1 or (as the case may require) in the relevant
Transfer Certificate.

(c)               
 to the Swap
Bank:                                            c/o 

Nordea Danmark, Filial af Nordea Bank Abp, Finland

7288 Derivatives Services

PO box 850 DK-0900 Copenhagen K, Denmark

Telephone number: +45
55 47 51 71

E-mail: otc@nordea.com

(d)             
 to the Lead
Arranger, Agent 

or the Security
Trustee:                                 Essendropsgate 7

0368 Oslo

Norway

Loan administration matters:

Fax No: +47 24013444

Attn: Structured Loan
& Collateral Services NO

or to such other address as the relevant party may notify the
Agent or, if the relevant party is the Agent or the Security Trustee, the
Borrowers, the Lenders, the Swap Bank and the Security Parties.

28.3         
 Effective date
of notices

Subject to Clauses 28.4 and 28.5:

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

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

28.4         
 Service outside
business hours

However, if under Clause 28.3 a notice would be deemed to be served:

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

 912                                 EUROPE/66436786v5     

 

(b)             
 on such a
business day, but after 5 p.m. local time,

the notice shall (subject to Clause 28.5) be deemed to be served, and shall take
effect, at 9 a.m. on the next day which is such a business day.

28.5         
 Illegible
notices

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

28.6         
 Valid notices

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

(a)              
 the failure to
serve it in accordance with the requirements of this Agreement or 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.

28.7         
 Electronic
communication

Any communication to be made between
the Agent and a Lender or Swap Bank under or in connection with the Finance
Documents may be made by electronic mail or other electronic means, if the
Agent and the relevant Creditor Party:

(a)              
 agree that,
unless and until notified to the contrary, this is to be an accepted form of
communication;

(b)              
 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

(c)               
 notify each
other of any change to their respective addresses or any other such information
supplied to them.

Any electronic communication made between the Agent and a Lender
or the Swap Bank will be effective only when actually received in readable form
and, in the case of any electronic communication made by a Creditor Party to
the Agent, only if it is addressed in such a manner as the Agent shall specify
for this purpose.

28.8         
 English language

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

 922                                 EUROPE/66436786v5     

 

28.9         
 Meaning of "notice"

In this Clause 28, "notice" includes any
demand, consent, authorisation, approval, instruction, waiver or other
communication. 

29              
 Joint and
Several Liability  

29.1         
 General

All liabilities and obligations of the Borrowers under this
Agreement shall, whether expressed to be so or not, be several and, if and to
the extent consistent with Clause 29.2, joint.

29.2         
 No impairment of
Borrower's 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 any other
Borrower;

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

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

(d)             
 any combination
of the foregoing.

29.3         
 Principal
debtors

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 no Borrower shall in any circumstances
be construed to be a surety for the obligations of any other Borrower under
this Agreement.

29.4         
 Subordination

Subject to Clause 29.5, during the Security Period, no Borrower
shall:

(a)              
 claim any amount
which may be due to it from any 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 any 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 any other Borrower; or

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

 932                                 EUROPE/66436786v5     

 

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

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

29.5         
 Borrower's
required action

If during the Security Period, the Agent, by notice to a Borrower,
requires it to take any action referred to in paragraphs (a) to (d) of Clause 29.4, in relation to any other Borrower, that
Borrower shall take that action as soon as practicable after receiving the
Agent's notice.

30              
 Supplemental

30.1         
 Rights
cumulative, non-exclusive

The rights and remedies which the Finance Documents give to each
Creditor Party are:

(a)              
 cumulative;

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

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

30.2         
 Severability of
provisions

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

30.3         
 Counterparts

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

30.4         
 Third Party
rights

A person who is not a Party 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.

31              
 Bail-In

Notwithstanding any other term of any Finance Document or any
other agreement, arrangement or understanding between the parties to a Finance
Document, each Party acknowledges and accepts that any liability of any party
to a Finance Document 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):

 942                                 EUROPE/66436786v5     

 

(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.

32              
 Law and
Jurisdiction  

32.1         
 English law

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

32.2         
 Exclusive
English jurisdiction

Subject to Clause 32.3, the courts of England shall have exclusive
jurisdiction to settle any Dispute.

32.3         
 Choice of forum
for the exclusive benefit of Creditor Parties

Clause 32.2 is for the exclusive benefit of the Creditor
Parties, each of which reserves the rights:

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

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

No Borrower shall commence any proceedings in any country other
than England in relation to a Dispute.

32.4         
 Process agent

Each Borrower irrevocably appoints Ince Process Agents Limited at its
registered office for the time being at International House, 1 St. Katharine’s
Way, London E1W 1AY, England, to act as its agent to receive and accept on its behalf any
process or other document relating to any proceedings in the English courts
which are connected with a Dispute.

32.5         
 Creditor Party
rights unaffected

Nothing in this Clause 32 shall exclude or limit any right which any
Creditor Party may have (whether under the law of any country, an international
convention or otherwise) with regard to the bringing of proceedings, the
service of process, the recognition or enforcement of a judgment or any similar
or related matter in any jurisdiction.

 952                                 EUROPE/66436786v5     

 

32.6         
 Meaning of "proceedings"
and "Dispute"

In this Clause 32, "proceedings" means
proceedings of any kind, including an application for a provisional or
protective measure and a "Dispute" means any dispute arising
out of or in connection with this Agreement (including a dispute relating to
the existence, validity or termination of this Agreement) or any
non-contractual obligation arising out of or in connection with this Agreement.

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

 962                                 EUROPE/66436786v5     

 

Schedule
1

Lenders and Commitments 

	
  Lender

  	
  Facility Office

  	
  Commitment

  (US Dollars)

  
	
  Nordea Bank Abp, filial i Norge

  	
  Essendrops gate 7, Postboks 1166
  Sentrum, 0107 Oslo 920058817 MVA

  Norway

  	
  $55,848,000

  

 

 

 

 972                                 EUROPE/66436786v5     

 

Schedule
2

Drawdown Notice

To:                Nordea Bank Abp, filial i
Norge

Essendrops gate 7, Postboks 

1166 Sentrum, 0107 Oslo 

920058817 MVA, Norway

Attention: [Loans Administration]                                                                                                                      [●] 2020

DRAWDOWN NOTICE

1                  
 We refer to the
loan agreement (the "Loan Agreement") dated [●] 2020 and made between ourselves, as
joint and several Borrowers, the Lenders referred to therein, and yourselves as
Agent, as Security Trustee, as Lead Arranger and as Swap Bank in connection
with a facility of up to US$55,848,000. Terms defined in the Loan Agreement
have their defined meanings when used in this Drawdown Notice.

2                  
 We request to
borrow as follows:

(a)              
 Amount of Loan:
US$55,848,000;

(b)             
 Drawdown Date: [●] 2020;

(c)              
 [Duration of the
first Interest Period shall be [1][3] months;] and

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

3                  
 We represent and
warrant that:

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

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

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

[Name of
Signatory]

Director

for and on behalf of

KNOX SHIPPING COMPANY INC.

BOKAK SHIPPING
COMPANY INC.

JEMO SHIPPING COMPANY
INC.

GUAM SHIPING COMPANY
INC.

PALAU SHIPPING
COMPANY INC.

MAKUR SHIPPING COMPANY INC.

 982                                 EUROPE/66436786v5     

 

MANDARINGINA
INC. and

VESTA COMMERCIAL, S.A.

 

 

 

 992                                 EUROPE/66436786v5     

 

Schedule 3

Condition
Precedent Documents
 

Part A 

The following are the documents referred to in
Clause 9.1(a).

1                  
 A duly executed
original of:

(a)              
 this Agreement;

(b)             
 the Corporate
Guarantee;

(c)              
 the Agency and
Trust Deed;

(d)             
 the Master
Agreement;

(e)              
 the Shares
Pledges;

(f)               
 the Master
Agreement Assignment; and

(g)              
 the Accounts
Pledges.

2                  
 Copies of the
certificate of incorporation and constitutional documents of each Borrower, the
Corporate Guarantor and any other Security Party.

3                  
 Copies of
resolutions of the shareholders and directors of each Borrower and each
Security Party (other than the Corporate Guarantor) authorising the execution
of each of the Finance Documents to which that Borrower or that Security Party
is a party and, in the case of a Borrower, authorising named officers to give
the Drawdown Notice.

4                  
 Copies of
resolutions of the executive committee of the Corporate Guarantor authorising
the execution of each of the Finance Documents to which it is a party.

5                  
 The original of
any power of attorney under which any Finance Document is executed on behalf of
a Borrower, the Corporate Guarantor or any other Security Party.

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

7                  
 The originals of
any mandates or other documents required in connection with the opening or
operation of the Earnings Accounts.

8                  
 Such documents
as the Agent may require for its "Know your customer" and other
customary money laundering and sanctions and counter-terrorist financing
checks.

9                  
 Copy of the
Initial Charter and of all documents signed or issued by Bokak or the Initial
Charterer (or any of them) under or in connection with it.

10              
 Documentary
evidence that the agent for service of process named in Clause 30 has accepted its appointment.

 1002                                 EUROPE/66436786v5     

 

11              
 Favourable legal
opinions from lawyers appointed by the Agent on such matters concerning the
laws of Marshall Islands, Panama and such other relevant jurisdictions as the
Agent may require.

12              
 If the Agent so
requires, in respect of any of the documents referred to above, a certified
English translation prepared by a translator approved by the Agent.

 

 

 1012                                 EUROPE/66436786v5     

 

Part B 

The following are the documents referred to in Clause 9.1(b) required before the Drawdown Date. In Part B of this Schedule 3, the following definitions have the following
meanings:

(a)              
 "Relevant
Borrower" means the Borrower which is the owner of the Relevant Ship;
and

(b)             
 "Relevant
Ship" means the Ship which is to be financed by using the proceeds of
the Loan being drawn on the Drawdown Date.

1                  
 A
duly executed original of the Mortgage and the General Assignment relating to
the Relevant Ship and the Initial Charter Assignment.

2                  
 Documentary
evidence that:

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

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

(c)              
 the Relevant
Ship maintains the class specified in Clause 14.3(b);

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

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

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

(a)              
 a copy of the
Management Agreement and the Manager's Undertaking duly signed by the Approved
Manager; and

(b)             
 copies of the
Approved Manager's Document of Compliance and of the Relevant Ship's Safety
Management Certificate (together with any other details of the applicable
safety management system which the Agent requires) and ISSC.

4                  
 Favourable legal
opinions from lawyers appointed by the Agent on such matters concerning the
laws of Marshall Islands, the Approved Flag State and such other relevant
jurisdictions as the Agent may require.  

5                  
 At the cost of
the Borrowers a favourable opinion from an independent insurance consultant
acceptable to the Agent on such matters relating to the insurances for the Ship as the Agent may require.

 1022                                 EUROPE/66436786v5     

 

6                  
 Two valuations
of each Ship addressed to the Agent and dated not earlier than 40 days before
the Drawdown Date and prepared in accordance with Clause 15.3 by two Approved Brokers (each selected by the
Borrowers and approved by the Agent) which evidences compliance with Clause 15.1 immediately after the Drawdown Date.

7                  
 Evidence
satisfactory to the Agent that the Existing Indebtedness is repaid in full and
each of the Borrowers is released from all its obligations and liabilities
under the Previous Loan Agreement.  

8                  
 If the Agent so
requires, in respect of any of the documents referred to above, a certified
English translation prepared by a translator approved by the Agent.

Each of the documents specified in paragraphs 2, 3, 5 and 9 of Part A and every other copy document delivered under
this Schedule shall be certified as a true and up to date copy by a director or
the secretary (or equivalent officer) of each Borrower or a qualified lawyer.

 

 

 

 1032                                 EUROPE/66436786v5     

 

Schedule
4

Transfer Certificate 

The Transferor and the Transferee accept exclusive responsibility
for ensuring that this Certificate and the transaction to which it relates
comply with all legal and regulatory requirements applicable to them
respectively.

To:          Nordea Bank Abp, filial
i Norge for itself and for and on behalf of the Borrower, [each Security
Party], the Security Trustee, each Lender and the Swap Bank, as defined in the
Loan Agreement referred to below.

[●]

1                  
 This Certificate
relates to a Loan Agreement (the "Agreement") dated [●] 2020 and made between (1) Knox
Shipping Company Inc., Bokak Shipping Company Inc., Jemo Shipping Company Inc.,
Guam Shipping Company Inc., Palau Shipping Company Inc., Makur Shipping Company
Inc., Mandaringina Inc. and Vest Commercial S.A. as joint and several borrowers
(the "Borrowers"), (2) the banks and financial institutions
named therein, (3) Nordea Bank Abp, filial i Norge as Agent, (4) Nordea Bank
Abp, filial i Norge as Security Trustee, (5) Nordea Bank Abp, filial i Norge as
Lead Arranger and (6) Nordea
Bank Abp as Swap Bank
for a loan facility of up to US$55,848,000.

2                  
 In this
Certificate, terms defined in the Agreement shall, unless the contrary
intention appears, have the same meanings when used in this Certificate and:

"Relevant Parties" means the Agent, the Borrower,
[each Security Party], the Security Trustee, each Lender and the Swap Bank;

"Transferor" means [full name] of [facility
office]; and

"Transferee" means [full name] of [facility
office].

3                  
 The effective
date of this Certificate is [●],
Provided that this Certificate shall not come into effect unless it is
signed by the Agent on or before that date.

4                  
 [The Transferor
assigns to the Transferee absolutely all rights and interests (present, future
or contingent) which the Transferor has as Lender under or by virtue of the
Agreement and every other Finance Document in relation to [●] per cent. of its Contribution,
which percentage represents $[●].]

5                  
 [By virtue of
this Transfer Certificate and Clause 26 of the Loan Agreement, the Transferor is
discharged [entirely from its Commitment which amounts to $[●] [from [●] per cent. of its Commitment, which percentage
represents $[●]] and the Transferee acquires a
Commitment of $[●].]

6                  
 The Transferee
undertakes with the Transferor and each of the Relevant Parties that the
Transferee will observe and perform all the obligations under the Finance
Documents which Clause 26 of the Loan Agreement provides will become
binding on it upon this Certificate taking effect.

 1042                                 EUROPE/66436786v5     

 

7                  
 The Agent, at
the request of the Transferee (which request is hereby made) accepts, for the
Agent itself and for and on behalf of every other Relevant Party, this
Certificate as a Transfer Certificate taking effect in accordance with Clause 26 of the Agreement.

8                  
 The Transferor:

(a)              
 warrants to the
Transferee and each Relevant Party that:

(i)                
 the Transferor
has full capacity to enter into this transaction and has taken all corporate
action and obtained all consents which are required in connection with this
transaction; and

(ii)              
 this Certificate
is valid and binding as regards the Transferor;

(b)             
 warrants to the
Transferee that the Transferor is absolutely entitled, free of encumbrances, to
all the rights and interests covered by the assignment in paragraph 4; and

(c)              
 undertakes with
the Transferee that the Transferor will, at its own expense, execute any
documents which the Transferee reasonably requests for perfecting in any
relevant jurisdiction the Transferee's title under this Certificate or for a
similar purpose.

9                  
 The Transferee:

(a)              
 confirms that it
has received a copy of the Agreement and each of the other Finance Documents;

(b)             
 agrees that it
will have no rights of recourse on any ground against either the Transferor,
the Agent, the Security Trustee, any Lender or the Swap Bank in the event that:

(i)                
 any of the
Finance Documents prove to be invalid or ineffective;

(ii)              
 any Borrower or
any Security Party fails to observe or perform its obligations, or to discharge
its liabilities, under any of the Finance Documents; and

(iii)             
 it proves
impossible to realise any asset covered by a Security Interest created by a
Finance Document, or the proceeds of such assets are insufficient to discharge
the liabilities of the Borrowers or any Security Party under any of the Finance
Documents;  

(c)              
 agrees that it
will have no rights of recourse on any ground against the Agent, the Security
Trustee, any Lender or the Swap Bank in the event that this Certificate proves
to be invalid or ineffective;  

(d)             
 warrants to the
Transferor and each Relevant Party that:

(i)                
 it has full
capacity to enter into this transaction and has taken all corporate action and
obtained all consents which it needs to take or obtain in connection with this
transaction; and

(ii)              
 this Certificate
is valid and binding as regards the Transferee; and

(e)              
 confirms the
accuracy of the administrative details set out below regarding the Transferee.

 1052                                 EUROPE/66436786v5     

 

10              
 The Transferor
and the Transferee each undertake with the Agent and the Security Trustee
severally, on demand, fully to indemnify the Agent and/or the Security Trustee
in respect of any claim, proceeding, liability or expense (including all legal
expenses) which they or either of them may incur in connection with this
Certificate or any matter arising out of it, except such as are shown to have
been mainly and directly caused by the gross and culpable negligence or
dishonesty of the Agent's or the Security Trustee's own officers or employees.

11              
 The Transferee
shall repay to the Transferor on demand so much of any sum paid by the
Transferor under paragraph 9 as exceeds one-half of the amount demanded by the
Agent or the Security Trustee  in respect of a claim, proceeding, liability or
expense which was not reasonably foreseeable at the date of this Certificate;
but nothing in this paragraph shall affect the liability of each of the
Transferor and the Transferee to the Agent or the Security Trustee for the full
amount demanded by it.

[Name of Transferor]                                                                     [Name
of Transferee]

By:                                                                                                          By:

Date:                                                                                                     Date:

Agent

Signed for itself and for and on behalf of
itself

as Agent and for every other Relevant Party

[Name of Agent]

By:

Date:

 

 

 

 1062                                 EUROPE/66436786v5     

 

Administrative Details of Transferee

Name of Transferee:                                      

Facility Office:                                                   

Contact Person

(Loan Administration Department):         

Telephone:                                                         

Fax:                                                                        

Contact Person

(Credit Administration Department):      

Telephone:                                                         

Fax:                                                                        

Account for payments:                                  

Note:    This Transfer Certificate alone may not be
sufficient to transfer a proportionate share of the Transferor's interest in
the security constituted by the Finance Documents in the Transferor's or
Transferee's jurisdiction.  It is the responsibility of each Lender to
ascertain whether any other documents are required for this purpose.

 

 

 

 1072                                 EUROPE/66436786v5     

 

Schedule
5

Designation Notice 

Nordea Bank Abp, filial i Norge

Essendrops gate 7, Postboks 

1166 Sentrum, 0107 Oslo

920058817 MVA, Norway

 

 [●] 

Dear Sirs

Loan Agreement dated [●] 2020 made between (i) Knox Shipping Company
Inc., Bokak Shipping Company Inc., Jemo Shipping Company Inc., Guam Shipping
Company Inc., Palau Shipping Company Inc., Makur Shipping Company Inc.,
Mandaringina Inc. and Vest Commercial S.A. as joint and several Borrowers, (ii)
the Lenders, (iii) yourselves as Agent, Security Trustee and Lead Arranger and
(iv) Nordea Bank
Abp as Swap Bank
(the "Loan Agreement"). 

We refer to:

1                  
 The Loan
Agreement;

2                  
 the Master
Agreement dated [●] 2020
made between ourselves and the Swap Bank; and

3                  
 a Confirmation
delivered pursuant to the said Master Agreement dated [●] and addressed by [●] to us.

In accordance with the terms of the Loan Agreement, we hereby give
you notice of the said Confirmation and hereby confirm that the Transaction
evidenced by it will be designated as a "Designated Transaction" for
the purposes of the Loan Agreement and the Finance Documents.

Yours faithfully,

 

 

 

 

 

.................................................

for and on behalf
of

KNOX SHIPING COMPANY INC.

BOKAK SHIPPING COMPANY INC.

JEMO SHIPPING COMPANY INC.

GUAM SHIPING COMPANY INC.

PALAU SHIPPING COMPANY INC.

MAKUR SHIPPING COMPANY INC.

MANDARINGINA INC. and 

 1082                                 EUROPE/66436786v5     

 

VESTA
COMMERCIAL, S.A.

 

 

 

 1092                                 EUROPE/66436786v5     

 

Execution Pages

THE BORROWERS

 

SIGNED by                                                          )

                                                                                )

for and on behalf of                                        )

KNOX SHIPING COMPANY INC.                  )

in the presence of:                                          )

 

 

 

 

 

SIGNED by                                                          )

                                                                                )

for and on behalf of                                        )

BOKAK SHIPPING COMPANY INC.            )

in the presence of:                                          )

 

 

 

 

 

SIGNED by                                                          )

                                                                                )

for and on behalf of                                        )

JEMO SHIPPING COMPANY INC.               )

in the presence of:                                          )

 

 

 

 

 

SIGNED by                                                          )

                                                                                )

for and on behalf of                                        )

GUAM SHIPING COMPANY INC.                )

in the presence of:                                          )

 

 

 

 

 

SIGNED by                                                          )

                                                                                )

for and on behalf of                                        )

PALAU SHIPPING COMPANY INC.             )

in the presence of:                                          )

 

 

 

 1102                                 EUROPE/66436786v5     

 

 

 

SIGNED by                                                          )

                                                                                )

for and on
behalf of                                        )

MAKUR SHIPPING
COMPANY INC.           )

in the presence of:                                          )

 

 

 

 

 

SIGNED by                                                          )

                                                                                )

for and on behalf of                                        )

MANDARINGINA INC.                                    )

in the presence of:                                          )

 

 

 

 

 

SIGNED by                                                          )

                                                                                )

for and on behalf of                                        )

VESTA COMMERCIAL, S.A.                           )

in the presence of:                                          )

 

 

 

 

 

THE LENDERS

 

SIGNED by                                                          )

Georgia Theologidou                                      )

for and on behalf of                                        )

NORDEA BANK ABP, FILIAL I NORGE       )

in the presence of:                                          )

 

 

 

 

 

THE SWAP BANK 

 

SIGNED by                                                          )

Georgia Theologidou                                      )

for and on behalf of                                        )

NORDEA BANK ABP                                         )

in the presence of:                                          )

 

 

 1112                                 EUROPE/66436786v5     

 

 

 

 

THE AGENT

 

SIGNED by                                                          )

Georgia
Theologidou                                      )

for and on behalf of                                        )

NORDEA BANK ABP, FILIAL I NORGE       )

in the presence of:                                          )

 

 

 

 

 

THE SECURITY TRUSTEE

 

SIGNED by                                                          )

Georgia Theologidou                                      )

for and on behalf of                                        )

NORDEA BANK ABP, FILIAL I NORGE       )

in the presence of:                                          )

 

 

 

 

 

THE LEAD ARRANGER 

 

SIGNED by                                                          )

Georgia Theologidou                                      )

for and on behalf of                                        )

NORDEA BANK ABP, FILIAL I NORGE       )

in the presence of:                                          )

 

 

 1122                                 EUROPE/66436786v5

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