Document:

Exhibit 4.18

  

   

  

  
    Private and Confidential

    DATED 29th  July 2019

    DIAMANTIS SHIPOWNERS LTD (1)

    - and -

    PIRAEUS BANK S.A. (2)

     

    

    
      

    FACILITY AGREEMENT

      in respect of a loan of

      up to USD4,000,000

    
      
 

     

    

    INCE

    PIRAEUS

    
      
        

    

    
    

    

    Index

    	
            Clause

          	
            Page

          
	 	 
	
            1

          	
            Purpose, definitions and construction

          	
            3

          
	
            2

          	
            The Commitment and cancellation

          	
            17

          
	
            3

          	
            Interest and Interest Periods

          	
            18

          
	
            4

          	
            Repayment and prepayment

          	
            21

          
	
            5

          	
            Fees and expenses

          	
            23

          
	
            6

          	
            Payments and taxes; accounts and calculations

          	
            24

          
	
            7

          	
            Representations and warranties

          	
            26

          
	
            8

          	
            Undertakings

          	
            31

          
	
            9

          	
            Conditions

          	
            42

          
	
            10

          	
            Events of Default

          	
            43

          
	
            11

          	
            Indemnities

          	
            47

          
	
            12

          	
            Unlawfulness, increased costs and bail-in

          	
            48

          
	
            13

          	
            Application of moneys, set off, pro-rata payments and miscellaneous

          	
            50

          
	
            14

          	
            Accounts

          	
            52

          
	
            15

          	
            Assignment, transfer and lending office

          	
            53

          
	
            16

          	
            Notices and other matters

          	
            54

          
	
            17

          	
            Governing law

          	
            56

          
	
            18

          	
            Jurisdiction

          	
            56

          
	
            Schedule 1 Form of Drawdown Notice

          	
            59

          
	
            Schedule 2 Conditions precedent

          	
            60

          
	
            Schedule 3 Form of Compliance Certificate

          	
            65

          
	
            Execution Page

          	
            66

          

    

    

    
      2

      
        

    

    THIS AGREEMENT dated 29th July 2019 is made BY and BETWEEN:

    
      
        	(1)	
                DIAMANTIS SHIPOWNERS LTD as Borrower; and

              

      

    

    
      
        	(2)	
                PIRAEUS BANK S.A. as Lender.

              

      

    

    NOW IT IS HEREBY AGREED AS FOLLOWS:

    
      
        	1	
                PURPOSE, DEFINITIONS AND CONSTRUCTION

              

      

    

    
      
        	1.1	
                Purpose

              

      

    

    This Agreement sets out the terms and conditions upon which the Lender agrees to make available to the Borrower a loan facility of up to four million Dollars
      (USD4,000,000) in a single advance for the purposes of enabling the Borrower to partially finance the purchase of the Vessel.

    

      	1.2	
              Definitions

            

    

    In this Agreement, unless the context otherwise requires:

    “Approved Broker” means such second-hand ship sale and purchase broker as the Lender may agree is an Approved Broker for the purposes of this
      Agreement;

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

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

    “Balloon Instalment” has the meaning given to it in clause 4.1.1, as the same may reduce from time to time;

    “Banking Day” means a day on which dealings in deposits in USD are carried on in the London Interbank Eurocurrency Market
      and (other than Saturday or Sunday) on which banks are open for business in London, Athens, Piraeus and New York City (or any other relevant place of payment under clause 6);

    “Borrowed Money” means Indebtedness in respect of (i) money borrowed or raised and debit balances at banks, (ii) any
      bond, note, loan stock, debenture or similar debt instrument, (iii) acceptance or documentary credit facilities, (iv) receivables sold or discounted (otherwise than on a non-recourse basis), (v) deferred payments for assets or services acquired, (vi)
      finance leases and hire purchase contracts, (vii) swaps, forward exchange contracts, futures and other derivatives, (viii) any other transaction (including without limitation forward sale or purchase agreements) having the commercial effect of a
      borrowing or raising of money or of any of (ii) to (vii) above and (ix) guarantees in respect of Indebtedness of any person falling within any of (i) to (viii) above;

    
      3

      
        

    

    “Borrower” means Diamantis Shipowners Ltd, a corporation incorporated in Liberia and having its registered office at 80
      Broad Street, Monrovia, Liberia;

    “Break Costs” means the aggregate amount of all losses, premiums, penalties, costs and expenses whatsoever certified by
      the Lender at any time and from time to time as having been incurred by the Lender in maintaining or funding the Loan or in liquidating or re-employing fixed deposits acquired to maintain the same as a result of either:

    
      
        	

              	(a)	
                any repayment or prepayment of the Loan or any part thereof otherwise than (i) in accordance with clause 4.1, or (ii) on an Interest Payment Date whether on a voluntary or involuntary basis or otherwise
                  howsoever; or

              

      

    

    
      
        	

              	(b)	
                the Borrower failing or being incapable of drawing the Loan after the Drawdown Notice has been given;

              

      

    

    “Casualty Amount” means three hundred thousand Dollars (USD300,000) (or the equivalent in any other currency);

    “Certified Copy” means in relation to any document delivered or issued by or on behalf of any company, a copy of such
      document certified as a true, complete and up to date copy of the original by any of the directors or officers for the time being of such company or by such company’s attorneys or solicitors;

    “Charter Assignment” means a specific assignment of any Extended Employment Contract required to be executed hereunder by
      the Borrower in favour of the Lender (including any notices and/or acknowledgements and/or undertakings associated therewith) in such form as the Lender may require in its sole discretion;

    “Classification” means, in relation to the Vessel, the highest class available for a vessel of her type with the
      Classification Society;

    “Classification Society” means any classification society which is a member of the International Association of
      Classification Societies which the Lender shall, at the request of the Borrower, have agreed in writing shall be treated as the classification society in relation to the Vessel for the purposes of the relevant Ship Security Documents;

    “Code” means the US Internal Revenue Code of 1986, as amended, and the regulations promulgated and rulings issued
      thereunder;

    “Commitment” means four million Dollars (USD4,000,000) which the Lender is obliged to lend to the Borrower under this
      Agreement, as such amount may be reduced and/or cancelled under this Agreement;

    “Compliance Certificate” means a certificate substantially in the form set out in schedule 3 signed by the chief
      financial officer of the Corporate Guarantor;

    “Compulsory Acquisition” means, in respect of the Vessel, requisition for title or other compulsory acquisition
      including, if the Vessel is not released therefrom within the Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or confiscation howsoever for any reason (but excluding requisition for use or hire) by or on behalf of
      any Government Entity or other competent authority or by pirates,

    
      4

      
        

    

    hijackers, terrorists or similar persons; “Relevant Period” means for the purposes of this definition
      of Compulsory Acquisition either (i) one (1) calendar month or, (ii) in respect of pirates, hijackers, terrorists or similar persons, if relevant underwriters confirm in writing (in terms satisfactory to the Lender) prior to the end of such one (1)
      month period that such capture, appropriation, forfeiture, seizure, detention, deprivation or confiscation will be fully covered by the Borrower’s relevant insurances, the shorter of twelve (12) months after the date upon which the relevant incident
      occurred and such period at the end of which the relevant cover expires;

    “Corporate Guarantee” means the unconditional, irrevocable and on demand guarantee of the obligations of the Borrower
      under this Agreement required to be executed by the Corporate Guarantor in favour of the Lender in such form as the Lender may require;

    “Corporate Guarantor” means Euroseas Ltd., a corporation listed on NASDAQ and incorporated in the Marshall Islands with
      its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;

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

    “Dollars” and “USD” mean the lawful currency of the USA and in respect of all
      payments to be made under any of the Security Documents means funds which are for same day settlement in the New York Clearing House Interbank Payments System (or such other US dollar funds as may at the relevant time be customary for the settlement
      of international banking transactions denominated in US dollars);

    “Drawdown Date” means any date being a Banking Day falling during the Drawdown Period on which the Loan is, or is to be,
      made available;

    “Drawdown Notice” means a notice substantially in the form of schedule 1;

    “Drawdown Period” means the period commencing on the Execution Date and ending on the earliest, of (i) 31 July 2019, (ii)
      such later date as the Lender may agree in its sole discretion and (iii) any date on which the Commitment is finally cancelled or fully drawn under the terms of this Agreement;

    “Earnings” means all moneys whatsoever from time to time due or payable to the Borrower during the Facility Period
      arising out of the use or operation of the Vessel including (but without limiting the generality of the foregoing) all freight, hire and passage moneys, income arising under pooling arrangements, compensation payable to the Borrower in event of
      requisition of the Vessel for hire, remuneration for salvage and towage services, demurrage and detention moneys, and damages for breach (or payments for variation or termination) of any charterparty or other contract (including any contract of
      affreightment) for the employment of the Vessel (including any proceeds under any loss of hire insurance, if applicable);

    “Earnings Account” means an interest bearing USD current account opened or (as the context may require) to be opened by
      the Borrower with the Lender and includes any sub-accounts thereof and any other account designated in writing by the Lender to be the Earnings Account for the purposes of this Agreement;

    
      5

      
        

    

    “Earnings Account Pledge” means a first priority pledge required to be executed hereunder between the Borrower and the
      Lender in respect of the Earnings Account in such form as the Lender may require;

    “EIAPP Certificate” means the Engine International Air Pollution Prevention Certificate issued or to be issued pursuant
      to Annex VI of the International Convention for the Prevention of Pollution from Ships, MARPOL 73/78 (Regulations for the Prevention of Air Pollution from Ships) in relation to the Vessel;

    “Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, assignment, title retention having a similar
      effect, preferential right, option, trust arrangement or security interest or other encumbrance, security or arrangement conferring howsoever a priority of payment in respect of any obligation of any person (excluding preferential payment rights
      granted by preferred shares);

    “Environmental Affiliate” means any agent or employee of the Borrower, the Manager or any other Group Member or any other
      person having a contractual relationship with the Borrower, the Manager or any other Group Member in connection with the Vessel or its operation or the carriage of cargo and/or passengers thereon and/or the provision of goods and/or services on or
      from the Vessel;

    “Environmental Approvals” means all authorisations, consents, licences, permits, exemptions or other approvals required
      under applicable Environmental Laws;

    “Environmental Claim” means (i) any claim by, or directive from, any applicable Government Entity alleging breach of, or
      non-compliance with, any Environmental Laws or Environmental Approvals or otherwise howsoever relating to or arising out of an Environmental Incident or (ii) any claim by any other third party howsoever relating to or arising out of an Environmental
      Incident (and, in each such case, “claim” shall include a claim for damages and/or direction for and/or enforcement relating to clean-up costs, removal, compliance, remedial action or otherwise) or (iii) any Proceedings arising from any of the
      foregoing;

    “Environmental Incident” means, regardless of cause, (i) any discharge or release of Environmentally Sensitive Material
      from any Relevant Ship; (ii) any incident in which Environmentally Sensitive Material is discharged or released from a vessel other than a Relevant Ship which involves collision between a Relevant Ship and such other vessel or some other incident of
      navigation or operation, in either case, where the Relevant Ship, the Manager and/or the Borrower and/or the relevant Group Member and/or the relevant Operator are actually, contingently or allegedly at fault or otherwise howsoever liable (in whole
      or in part) or (iii) any incident in which Environmentally Sensitive Material is discharged or released from a vessel other than a Relevant Ship and where such Relevant Ship is actually or potentially liable to be arrested as a resull and/or where
      the Manager and/or the Borrower and/or other Group Member and/or the relevant Operator are actually, contingently or allegedly at fault or otherwise howsoever liable;

    “Environmental Laws” means all laws, regulations, conventions and agreements whatsoever relating to pollution, human or
      wildlife well-being or protection of the environment (including, without limitation, the United States Oil Pollution Act of 1990 and any comparable laws of the individual States of the USA);

    
      6

      
        

    

    “Environmentally Sensitive Material” means oil, oil products or any other products or substance which are polluting,
      toxic or hazardous or any substance the release of which into the environment is howsoever regulated, prohibited or penalised by or pursuant to any Environmental Law;

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

    “Event of Default” means any of the events or circumstances listed in clause 10.1;

    “Execution Date” means the date on which this Agreement has been executed by all the parties hereto;

    “Extended Employment Contract” means, in respect of the Vessel and at any relevant time, any bareboat charterparty
      (irrespective of the duration of such charterparty) or any time charterparty or other contract of employment of such ship (including the entry of the Vessel in any pool) which has a remaining tenor exceeding twelve (12) months (including any options
      to renew or extend such tenor) at such time;

    “Facility Period” means the period starting on the date of this Agreement and ending on such date as all obligations
      whatsoever of all of the Security Parties under or pursuant to the Security Documents whensoever arising, actual or contingent, have been irrevocably paid, performed and/or complied with;

    “FATCA” means:

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    “FATCA Application Date” means:

    
      
        	

              	(i)	
                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

              

      

    

    
      
        	

              	(ii)	
                in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraph (a) above, 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 Security Document required by FATCA;

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

    
      7

      
        

    

    “FATCA FFI” means a foreign financial institution as defined in section 1471(d)(4) of the Code which, if the Bank is not
      a FATCA Exempt Party, could be required to make a FATCA Deduction;

    “Flag State” means the country, which is acceptable to the Lender, on whose flag the Vessel is or is to be registered in
      the ownership of the Borrower;

    “General Assignment” means, in respect of the Vessel, the deed of assignment of its earnings, insurances and requisition
      compensation executed or to be executed by the Borrower in favour of the Lender in such form as the Lender may require;

    “Government Entity” means any national or local government body, tribunal, court or regulatory or other agency and any
      organisation of which such body, tribunal, court or agency is a part or to which it is subject;

    “Group” means, at any relevant time, the Corporate Guarantor and its Subsidiaries (including the Borrower);

    “Group Member” means any member of the Group;

    “IAPP Certificate” means the International Air Pollution Prevention Certificate issued or to be issued pursuant to Annex
      VI of the International Convention for the Prevention of Pollution from Ships, MARPOL 73/78 (Regulations for the Prevention of Air Pollution from Ships) in relation to the Vessel;

    “Indebtedness” means any obligation howsoever arising (whether present or future, actual or contingent, secured or
      unsecured as principal, surety or otherwise) for the payment or repayment of money;

    “Insurances” means all policies and contracts of insurance (which expression includes all entries of the Vessel in a
      protection and indemnity or war risks association) which are from time to time during the Facility Period in place or taken out or entered into by or for the benefit of the Borrower (whether in the sole name of the Borrower, or in the joint names of
      the Borrower and the Mortgagee or otherwise) in respect of the Vessel or otherwise howsoever in connection with the Vessel and all benefits thereof (including claims of whatsoever nature and return of premiums);

    “Interest Payment Date” means the last day of an Interest Period and, if an Interest Period is longer than three (3)
      months, the date falling at the end of each successive period of three (3) months from the start of such Interest Period;

    “Interest Period” means each period for the calculation of interest in respect of the Loan ascertained in accordance with
      clauses 3.2 and 3.3;

    “Interest Rate Determination Date” means, in relation to any period for which an interest rate is to be determined, the
      date falling two (2) Banking Days before the first day of that period unless market practice differs in the London interbank market, in which case the Interest Rate Determination Date will be determined by the Lender 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 Interest Rate Determination Date will be the last of those days);

    
      8

      
        

    

    “ISM Code” means in relation to its application to the Borrower, the Vessel and its operation:

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

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

    “ISM Code Documentation” means, in relation to the Vessel, the document of compliance (DOC) and safety management
      certificate (SMC) issued by a Classification Society pursuant to the ISM Code in relation to the Vessel within the periods specified by the ISM Code;

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

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

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

    “Latest Accounts” means, in respect of any fiscal year of the Corporate Guarantor, the latest annual audited consolidated
      accounts of the Corporate Guarantor required to be prepared pursuant to clause 8.1.6;

    “Lender” means Piraeus Bank S.A. having its registered office at 4 Amerikis Street, 105 64 Athens, Greece, acting through
      its branch at 170 Alexandras Ave., 115 21 Athens, Greece (fax no. +30 210 373 9783);

    “LIBOR” means for an Interest Period in relation to the Loan or any part thereof:

    
      
        	

              	(a)	
                the London interbank offered rate administered by ICE Benchmark Administration Limited (“ICE”) (or any other person which takes over the administration of that rate) for
                  deposits in Dollars for a period equal to, or as near as possible equal to, the relevant Interest Period which appears on page LIBOR 1 of the REUTERS screen at or about 11.45 a.m. (London time) on the Interest Rate Determination Date for
                  that Interest Period (and, for the purposes of this Agreement, “REUTERS LIBOR page 01” means the display designated as

              

      

    

    
      9

      
        

    

    the “REUTERS LIBOR 01” on the Reuters Money News Service or such other page as may replace REUTERS LIBOR page 01 on that service for the purpose of displaying
      rates comparable to that rate or on such other service as may be nominated by ICE as the information vendor for the purpose of displaying ICE Interest Settlement Rates for Dollars); or

    
      
        	

              	(b)	
                if on such date no rate is quoted on REUTERS LIBOR page 01, LIBOR for such period shall be the rate per annum (rounded upward if necessary to five decimal place) at which the Lender is able in accordance with
                  its usual practices to obtain deposits in Dollars in an amount approximately equal to the amount in relation to which LIBOR is to be determined for a period equivalent to such period in the London Interbank Market at or about 11:45 a.m.
                  (London time) on the Interest Rate Determination Date for that Interest Period for a period equal to that Interest Period and for delivery on the first Banking Day of it,

              

      

    

    Provided, however, that in case LIBOR is below zero, LIBOR shall be deemed to be zero;

    “Lightweight” means the lightweight tonnage of the Ship as provided in (i) the Ship’s capacity plan or (ii) at the
      Lender’s discretion the Ship’s trim and stability booklet;

    “Loan” means the aggregate principal amount in respect of the Loan Facility owing to the Lender under this Agreement at
      any relevant time;

    “Loan Facility” means the loan facility provided by the Lender on the terms and subject to the conditions of this
      Agreement in an amount not exceeding the lesser of (i) four million Dollars (USD4,000,000) and (ii) 90% of the Scrap Value of the Vessel (to be determined immediately prior to the Drawdown Date);

    “Management Agreement” means, in respect of the Vessel, the agreement between the Borrower and the Manager, in a form
      approved by the Lender;

    “Manager” means Eurobulk Ltd., a corporation incorporated in Liberia with its registered office at 80 Broad Street,
      Monrovia, Liberia and having its place of business at 4 Messogiou & Evropis Street, 151 24 Maroussi, Greece, or any other commercial and/or technical manager appointed by the Borrower, with the prior written
        consent of the Lender, as the manager of the Vessel;

    “Manager’s Undertaking” means, in respect of the Vessel, the undertaking and assignment of insurances required to be
      executed hereunder by the Manager in favour of the Lender in such form as the Lender may require;

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

    “Material Adverse Effect” means a material adverse effect on (i) the Lender’s rights under, or the security provided by,
      any Security Document, (ii) the ability of any Security Party to perform or comply with any of its obligations under any Security Document to which it is a party or (iii) the value or nature of the financial condition of any Security Party (other than the Manager);

    “Maturity Date” means the date falling 3 years after the Drawdown Date;

    
      10

      
        

    

    “MII & MAP Policy” means a mortgagee’s interest and (if required by the Lender) pollution risks insurance policy
      (including, but not limited to, additional perils (pollution) cover) in respect of the Vessel to be effected by the Lender on or before the Drawdown Date to cover the Vessel as the same may be renewed or replaced annually thereafter and maintained
      throughout the Facility Period through such brokers, with such underwriters and containing such coverage as may be acceptable to the Lender in its sole discretion, insuring a sum of at least one hundred and ten per cent (110%) of the Loan in respect
      of mortgagee’s interest insurance and one hundred and ten per cent (110%) of the Loan in respect of additional perils (pollution) cover;

    “MOA” means the memorandum of agreement dated 31st May 2019 (as amended by Addendum No.1 dated 5 July 2019, Addendum No.2
      dated 8 July 2019 and addendum No.3 dated 17 July 2019 and as the same may be further amended and/or supplemented from time to time) in respect of the Vessel made between the Seller as seller and the Borrower as buyer of the Vessel;

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

    “Mortgage” means the first preferred Liberia ship mortgage of the Vessel required to be executed hereunder by the
      Borrower, to be in such form as the Lender may require in its sole discretion;

    “NASDAQ” means the stock exchange run by the US National Association of Securities Dealers with the main exchange located
      in the United States of America, originally an acronym for the National Association of Securities Dealers Automatic Quotations;

    “Net Worth” means by reference to the Latest Accounts, the Total Assets less Total Liabilities of the Group;

    “Operator” means any person who is from time to time during the Facility Period concerned in the operation of a Relevant
      Ship and falls within the definition of “Company” set out in rule 1.1.2 of the ISM Code;

    “Permitted Encumbrance” means any Encumbrance in favour of the Lender created pursuant to the Security Documents any
      Encumbrance created in favour of a plaintiff or defendant in any proceedings or arbitration as security for costs and expenses while the Borrower is actively prosecuting or defending such proceedings or arbitration in good faith; Encumbrances 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 and Permitted Liens;

    “Permitted Liens” means any lien on the Vessel for master’s, officer’s or crew’s wages outstanding in the ordinary course
      of trading, any lien for salvage and any ship

    
      11

      
        

    

    repairer’s or outfitter’s possessory lien for a sum not (except with the prior written consent of the Lender) exceeding the Casualty Amount any lien arising in the ordinary course of
      trading by statute or by operation of law in respect of obligations which are not overdue (and while such obligations are not overdue) or which are being contested in good faith by bona fide and appropriate proceedings (and for the payment of which
      adequate, freely-available reserves have been provided) unless such proceedings or the continued existence of such lien makes likely the sale, forfeiture or loss of, or of any interest in, the Vessel, and liens securing liabilities for Taxes against
      which adequate, freely-available reserves have been provided;

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

    “Proceedings” means any litigation, arbitration, legal action or complaint or judicial, quasi-judicial or administrative
      proceedings whatsoever arising or instigated by anyone (private or governmental) in any court, tribunal, public office or other forum whatsoever and wheresoever (including, without limitation, any action for provisional or permanent attachment of any
      thing or for injunctive remedies or interim relief and any action instigated on an ex parte basis);

    “Registry” means the office of the registrar, commissioner or representative of the Flag State, who is duly empowered to
      register the Vessel, the Borrower’s title thereto and the Mortgage under the laws and flag of the Flag State;

    “Relevant Ship” means the Vessel and any other ship from time to time (whether before or after the date of this
      Agreement) owned by any Group Member;

    “Repayment Date” means the date on which any instalment of the Loan is repayable under the provisions of clause 4.1.1;

    “Repayment Instalment” means in respect of the Loan, each of the repayment instalments falling due under and in
      accordance with clause 4.1.1, as the same may be reduced in accordance with this Agreement;

    “Required Authorisation” means any authorisation, consent, declaration, licence, permit, exemption, approval or other
      document, whether imposed by or arising in connection with any law, regulation, custom, contract, security or otherwise howsoever which must be obtained at any time from any person, Government Entity, central bank or other self-regulating or
      supra-national authority in order to enable the Borrower lawfully to borrow the Loan and/or to enable any Security Party lawfully and continuously to continue its corporate existence and/or perform all its obligations whatsoever whensoever arising
      and/or grant security under the relevant Security Documents and/or to ensure the continuous validity and enforceability thereof;

    “Required Security Amount” means the amount in USD (as certified by the Lender) which is, until the first anniversary of
      the Drawdown Date, one hundred and ten per cent (110%) and, at all time thereafter, one hundred and twenty per cent (120%), of the Loan;

    
      12

      
        

    

    “Requisition Compensation” means all moneys or other compensation from time to time payable during the Facility Period by
      reason of Compulsory Acquisition of the Vessel;

    “Resolution Authority” means any body which has authority to exercise any Write-down and Conversion Powers;

    “Restricted Person” means a person that is:

    
      
        	

              	(i)	
                listed on, or directly or indirectly owned or controlled (as such terms are defined by the relevant Sanctions Authority) by a person listed on, any Sanctions List;

              

      

    

    
      
        	

              	(ii)	
                located in, incorporated 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 that is the target of country or
                  territory-wide Sanctions (“Sanctions Restricted Jurisdiction”); or

              

      

    

    
      
        	

              	(iii)	
                otherwise a target of Sanctions;

              

      

    

    “Sanctions” means any economic, financial or trade sanctions laws, regulations, embargoes or restrictive measures
      administered, enacted or enforced by:

    
      
        	

              	(i)	
                the United States government;

              

      

    

    
      
        	

              	(ii)	
                the United Nations;

              

      

    

    
      
        	

              	(iii)	
                the European Union or any of its Member States;

              

      

    

    
      
        	

              	(iv)	
                the United Kingdom;

              

      

    

    
      
        	

              	(v)	
                any country to which any Security Party or any other member of the Group or any affiliate of any of them is bound; or

              

      

    

    
      
        	

              	(vi)	
                the respective governmental institutions and agencies of any of the foregoing, including without limitation, the Office of Foreign Assets Control of the US Department of Treasury (“OFAC”), the United States Department of State, and Her Majesty’s Treasury (“HMT”) (together “Sanctions Authorities” and each, “Sanctions Authority”);

              

      

    

    “Sanctions List” means the “Specially Designated Nationals and Blocked Persons” list issued by OFAC, the “Consolidated
      List of Financial Sanctions Targets in the UK” issued by HMT, or any similar list issued or maintained or made public by any of the Sanctions Authorities;

    “Scrap Price” means, in relation to a the Vessel, the Dollars price per ton for a vessel of the Vessel’s type quoted by
      scrap-yards in the Indian subcontinent as such price is reported at any relevant time in the most recent Clarksons Weekly Report or any other report acceptable to the Lender;

    “Scrap Value” means, in relation to a the Ship, a sum in Dollars (as certified by the Lender whose certificate shall, in
      the absence of manifest error, be conclusive and binding on the Borrower) which is equal to the Lightweight of the Vessel multiplied by the Scrap Price of the Vessel, as such sum may be adjusted by the Lender in accordance with clause 8.2.2;

    
      13

      
        

    

    “Security Documents” means this Agreement, the Mortgage, the Corporate Guarantee, the General Assignment, any Charter
      Assignment, the Earnings Account Pledge, the Shares Pledge, the Manager’s Undertaking, any Tripartite Deed and any other documents as may have been or shall from time to time after the date of this Agreement be executed to guarantee and/or to govern
      and/or secure all or any part of the Loan, interest thereon and other moneys from time to time owing by the Borrower pursuant to this Agreement (whether or not any such document also secures moneys from time to time owing pursuant to any other
      document or agreement);

    “Security Party” means the Borrower, the Corporate Guarantor, the Shareholder, the Manager or any other person who may
      at any time be a party to any of the Security Documents (other than the Lender);

    “Security Value” means the amount in USD (as certified by the Lender) which is, at any relevant time, the aggregate of
      (a) the Scrap Value of the Vessel and (b) the net realizable market value of any additional security for the time being actually provided to the Lender pursuant to clause 8.2.1(b), it being agreed however that in case of additional security in the
      form of cash in Dollars, the same will be valued on a Dollar for Dollar basis;

    “Seller” means Diamantis Shipping Ltd of Liberia;

    “Shareholder” means Eurocon Ltd., a corporation incorporated in the Marshall Islands with its registered office at
      Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960;

    “Shares Pledge” means the pledge of the shares of and in the Borrower to be executed by the Shareholder in favour of
      the Lender, to be in such form as the Lender may require in its sole discretion;

    “Ship Security Documents” means the Mortgage, the General Assignment, any Charter Assignment, any Tripartite Deed and
      the Manager’s Undertaking;

    “Subsidiary” of a person means any company or entity directly or indirectly controlled by such person, and for this
      purpose “control” means either the ownership of more than fifty per cent (50%) of the voting share capital (or equivalent rights of ownership) of such company or entity or the power to direct its policies and management, whether by contract or
      otherwise;

    “Taxes” includes all present and future income, corporation, capital or value-added taxes and all stamp and other taxes
      and levies, imposts, deductions, duties, charges and withholdings whatsoever together with interest thereon and penalties in respect thereto, if any, and charges, fees or other amounts made on or in respect thereof (and “Taxation” shall be construed
      accordingly);

    “Total Assets” and “Total Liabilities” mean, respectively, the total assets
      and total liabilities of the Group as evidenced at any relevant time by the Latest Accounts, in which they shall have been calculated by reference to the meanings assigned to them in accordance with
      International Financial Reporting Standards or US GAAP provided that the value of any ship shall be the market value thereof calculated in accordance with clause 8.2.5(i) and not as set out in the Latest Accounts;

    
      14

      
        

    

    “Total Commitment” means, at any relevant time, the aggregate of the Commitments of the Lender at such time;

    “Total Loss” means, in relation to the Vessel: the actual, constructive, compromised or arranged total loss of the Vessel; or

    
      
        	

              	(ii)	
                Compulsory Acquisition; or

              

      

    

    
      
        	

              	(iii)	
                any hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of the Vessel not falling within the definition of Compulsory Acquisition, unless the Vessel be released and restored to
                  the Borrower within sixty (60) days after such incident;

              

      

    

    “Tripartite Deed” means, if the Vessel is subject to a bareboat charter, a deed containing (inter alia) an assignment of
      the relevant charterer’s interest in the insurances of the Vessel, required to be executed by the Borrower and the relevant charterer in favour of the Lender in such form as the Lender may require in its sole
      discretion and the relevant charterer may agree;

    “Underlying Documents” means, together, the MOA, any Extended Employment Contracts and the Management Agreements;

    “Unlawfulness” means any event or circumstance which is the subject of a notification by the Lender to the Borrower under
      clause 12.1;

    “USA” means the United States of America;

    “US Tax Obligor” means:

    
      
        	

              	(a)	
                the Borrower if it is resident for tax purposes in the USA; or

              

      

    

    
      
        	

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

              

      

    

    “Vessel” means the 1998-built container vessel of 2,078 TEU and 10,602 lwt named “DIAMANTIS

        P.” registered in the name of the Seller under the Liberia flag and which is to be acquired by the Borrower pursuant to the MOA and to be registered in the name of the Borrower under the Liberia flag with the name “DIAMANTIS P.”;

    “Write-down and Conversion Powers” means, 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.

    
      
        	1.3	
                Construction

              

      

    

    In this Agreement, unless the context otherwise requires:

    
      
        	1.3.1	
                clause headings and the index are inserted for convenience of reference only and shall be ignored in the construction of this Agreement;

              

      

    

    
      15

      
        

    

    
      
        	1.3.2	
                references to clauses and schedules are to be construed as references to clauses of, and schedules to, this Agreement and references to this Agreement include its schedules and any supplemental agreements
                  executed pursuant hereto;

              

      

    

    
      
        	1.3.3	
                references to (or to any specified provision of) this Agreement or any other document shall be construed as references to this Agreement, that provision or that document as in force for the time being and as
                  duly amended and/or supplemented and/or novated;

              

      

    

    
      
        	1.3.4	
                references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any Government Entity, central bank or any
                  self-regulatory or other supra-national authority;

              

      

    

    
      
        	1.3.5	
                references to any person in or party to this Agreement shall include reference to such person’s lawful successors and assigns and references to the Lender shall also include a Transferee Lender;

              

      

    

    
      
        	1.3.6	
                words importing the plural shall include the singular and vice versa;

              

      

    

    
      
        	1.3.7	
                references to a time of day are, unless otherwise stated, to Athens time;

              

      

    

    
      
        	1.3.8	
                references to a person shall be construed as references to an individual, firm, company, corporation or unincorporated body of persons or any Government Entity;

              

      

    

    
      
        	1.3.9	
                references to a “guarantee” include references to an indemnity or any other kind of assurance whatsoever (including, without limitation, any kind of negotiable instrument, bill or note) against financial loss or
                  other liability including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and “guaranteed” shall be construed accordingly;

              

      

    

    
      
        	1.3.10	
                references to any statute or other legislative provision are to be construed as references to any such statute or other legislative provision as the same may be re enacted or modified or substituted by any
                  subsequent statute or legislative provision (whether before or after the date hereof) and shall include any regulations, orders, instruments or other subordinate legislation issued or made under such statute or legislative provision;

              

      

    

    
      
        	1.3.11	
                a certificate by the Lender as to any amount due or calculation made or any matter whatsoever determined in connection with this Agreement shall be conclusive and binding on the Borrower except for manifest
                  error;

              

      

    

    
      
        	1.3.12	
                if any document, term or other matter or thing is required to be approved, agreed or consented to by the Lender such approval, agreement or consent must be obtained in writing unless the contrary is stated;

              

      

    

    
      
        	1.3.13	
                time shall be of the essence in respect of all obligations whatsoever of the Borrower under this Agreement, howsoever and whensoever arising;

              

      

    

    
      
        	1.3.14	
                and the words “other” and “otherwise” shall not be construed eiusdem generis with any foregoing words where a wider construction is possible.

              

      

    

    
      
        	1.4	
                References to currencies

              

      

    

    
      16

      
        

    

    Currencies are referred to in this Agreement by the three letter currency codes (ISO 4217) allocated to them by the International Organisation for
      Standardisation.

    
      
        	1.5	
                Contracts (Rights of Third Parties Act) 1999

              

      

    

    Except for clause 18, no part of this Agreement shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this
      Agreement.

    
      
        	2	
                THE COMMITMENT AND CANCELLATION

              

      

    

    
      
        	2.1	
                Agreement to lend

              

      

    

    The Lender, relying upon each of the representations and warranties in clause 7, agrees to make available to the Borrower upon and subject to the terms of this
      Agreement, the Loan Facility in a single advance for the purposes of enabling the Borrower to partially finance the purchase of the Vessel by the Borrower.

    
      
        	2.2	
                Drawdown

              

      

    

    
      
        	2.2.1	
                Subject to the terms and conditions of this Agreement, the Loan shall be made available to the Borrower following receipt by the Lender from the Borrower of a Drawdown Notice not later than 10:00 a.m. on the
                  third Banking Day before the date, which shall be a Banking Day falling within the Drawdown Period, on which the Borrower proposes the Loan is made available.

              

      

    

    
      
        	2.2.2	
                The Drawdown Notice shall be effective on actual receipt by the Lender and, once given, shall, subject as provided in clause 3.5, be irrevocable.

              

      

    

    
      
        	2.3	
                Limitation and application of the Loan

              

      

    

    
      
        	2.3.1	
                The amount of the Loan shall not exceed the amount of the Loan Facility.

              

      

    

    
      
        	2.3.2	
                The principal amount specified in the Drawdown Notice for borrowing on the Drawdown Date shall, subject to the terms of this Agreement, not exceed the lesser of (i) four million Dollars (USD4,000,000) and (ii)
                  90% of the Scrap Value of the Vessel (to be determined immediately prior to the Drawdown Date), to be applied in or towards financing the purchase of the Vessel by the Borrower.

              

      

    

    
      
        	2.3.3	
                The Loan shall be paid forthwith upon drawdown to such account as the Borrower shall stipulate in the Drawdown Notice.

              

      

    

    
      
        	2.4	
                Availability

              

      

    

    
      
        	2.4.1	
                The Borrower acknowledges that payment of the Loan referred to in clause 2.3.2 to the account or accounts specified in the Drawdown Notice shall satisfy the obligation of the Lender to lend the Loan to the
                  Borrower under this Agreement.

              

      

    

    
      
        	2.5	
                Cancellation in changed circumstances

              

      

    

    
      
        	2.5.1	
                The Borrower may at any time during the Facility Period by notice to the Lender (effective only on actual receipt) cancel with effect from a date not less than ten (10) Banking Days after receipt by the Lender
                  of such notice, all or part of the undrawn Total Commitment.

              

      

    

    
      17

      
        

    

    
      
        	2.5.2	
                The Borrower may also at any time during the Facility Period by notice to the Lender (effective only on actual receipt) prepay and/or cancel with effect from a date not less than ten (10) Banking Days after
                  receipt by the Lender of such notice, the whole but not part only, but without prejudice to the Borrower’s obligations under clauses 3.5, 6.6 and 12, of the Commitment (if any). Upon any notice of such prepayment and cancellation being
                  given, the Commitment shall be reduced to zero, the Borrower shall be obliged to prepay the Loan and the Lender’s related costs (including but not limited to Break Costs, if any) on such date, but always without any premium or penalty if
                  such prepayment is effected on the next Interest Payment Date, and the Lender shall be under no obligation to make available the Loan.

              

      

    

    
      
        	2.6	
                Use of proceeds

              

      

    

    
      
        	2.6.1	
                Without prejudice to the Borrower’s obligations under clause 8.1.4, the Lender shall not have any responsibility for the application of the proceeds of the Loan or any part thereof by the Borrower.

              

      

    

    
      
        	2.6.2	
                The Borrower shall not, and shall procure that each Security Party and each other Group Member and any Subsidiary of any of them shall not, permit or authorise any other person to, directly or indirectly, use,
                  lend, make payments of, contribute or otherwise make available, all or any part of the proceeds of the Loan or other transactions contemplated by this Agreement to fund or facilitate trade, business or other activities: (i) involving or
                  for the benefit of any Restricted Person; or (ii) in any other manner that could result in the Borrower or any other Security Party being in breach of any Sanctions or becoming a Restricted Person.

              

      

    

    
      
        	2.6.3	
                It is prohibited to use any part of the proceeds of the Loan for the purposes of acquiring shares in the share capital of the Lender or other banks and/or financial institutions or acquiring hybrid capital
                  debentures (T12Aoug u(3gibticdiv Kupculaicov) of the Lender or other banks and/or financial institutions.

              

      

    

    
      
        	3	
                INTEREST AND INTEREST PERIODS

              

      

    

    
      
        	3.1	
                Normal interest rate

              

      

    

    The Borrower must pay interest on the Loan in respect of each Interest Period relating thereto on each Interest Payment Date at the rate per
      annum determined by the Lender to be the aggregate of (a) the Margin in respect thereof and (b) LIBOR for such period.

    
      
        	3.2	
                Selection of Interest Periods

              

      

    

    Subject to clause 3.3, the Borrower may by notice received by the Lender not later than 10:00 a.m. on the second Banking Day before the beginning of each Interest Period specify
      whether such Interest Period shall have a duration of one (1), three (3) or six (6) months or such other period as the Borrower may select and the Lender may agree.

    
      
        	3.3	
                Determination of Interest Periods

              

      

    

    Subject to clause 3.3.1 every Interest Period shall be of the duration specified by the Borrower pursuant to clause 3.2 but so that:

    
      18

      
        

    

    

    

    
      
        	3.3.1	
                the first Interest Period in respect of the Loan shall start on the date the Loan is drawn and each subsequent Interest Period shall start on the last day of the previous Interest Period;

              

      

    

    
      
        	3.3.2	
                if any Interest Period would otherwise overrun a Repayment Date, then, in the case of the last Interest Period, such Interest Period shall end on the Maturity Date, and in the case of any other Interest Period,
                  the Loan shall be divided into parts so that there is one part in the amount of the Repayment Instalment due on such Repayment Date and having an Interest Period ending on the relevant Repayment Date and another part in the amount of the
                  balance of the Loan having an Interest Period ascertained in accordance with clause 3.2 and the other provisions of this clause 3.3; and

              

      

    

    
      
        	3.3.3	
                if the Borrower fails to specify the duration of an Interest Period in accordance with the provisions of clause 3.2 and this clause 3.3, such Interest Period shall have a duration of three (3) months or such
                  other period as shall comply with this clause 3.3.

              

      

    

    
      
        	3.4	
                Default interest

              

      

    

    If the Borrower fails to pay any sum (including, without limitation, any sum payable pursuant to this clause 3.4) on its due date for payment under any of the
      Security Documents, the Borrower must pay interest on such sum on demand from the due date up to the date of actual payment (as well after as before judgment) at a rate determined by the Lender pursuant to this clause 3.4. The period starting on such
      due date and ending on such date of payment shall be divided into successive periods selected by the Lender each of which (other than the first, which shall start on such due date) shall start on the last day of the preceding such period. The rate of
      interest applicable to each such period shall be the aggregate (as determined by the Lender) of (a) two per cent (2%) per annum, (b) the Margin and (c) LIBOR for such periods. Such interest shall be due and payable on demand, or, if no demand is
      made, then on the last day of each such period as determined by the Lender and on the day on which all amounts in respect of which interest is being paid under this clause are paid, and each such day shall, for the purposes of this Agreement, be
      treated as an Interest Payment Date, provided that if such unpaid sum is an amount of principal which became due and payable by reason of a declaration by the Lender under clause 10.2.2 or a prepayment pursuant to clauses 4.3, 4.4, 8.2.1(a) or 12.1,
      on a date other than an Interest Payment Date relating thereto, the first such period selected by the Lender shall be of a duration equal to the period between the due date of such principal sum and such Interest Payment Date and interest shall be
      payable on such principal sum during such period at a rate of two per cent (2%) above the rate applicable thereto immediately before it shall have become so due and payable. If, for the reasons specified in clause 3.5.1, the Lender is unable to
      determine a rate in accordance with the foregoing provisions of this clause 3.4, interest on any sum not paid on its due date for payment shall be calculated at a rate determined by the Lender to be two per cent (2%) per annum above the aggregate of
      the Margin and the cost of funds to the Lender compounded at such intervals as the Lender selects.

    
      
        	3.5	
                Market disruption; non-availability

              

      

    

    
      
        	3.5.1	
                If at any time prior to the commencement of any Interest Period:

              

      

    

    
      19

      
        

    

    
      
        	

              	(a)	
                the Lender for any reason is unable to obtain Dollars in the London Interbank Market in order to fund the Loan (or any part of it) during that Interest Period; or

              

      

    

    
      
        	

              	(b)	
                the Lender considers that LIBOR would not accurately reflect the cost to it of funding the Loan (or any part of them) during that Interest Period 

              

         

        

        then the Lender must promptly give notice (a “Determination Notice”) thereof to the Borrower. A Determination Notice shall contain particulars of the relevant
          circumstances giving rise to its issue. After the giving of any Determination Notice, regardless of any other provision of this Agreement, no Commitment shall be borrowed until notice to the contrary is given to the Borrower by the Lender. 

      

    

    
      
        	3.5.2	
                Within ten (10) Banking Days of any Determination Notice being given by the Lender under clause 3.5.1, the Lender must certify an alternative basis in place of LIBOR (the “Alternative

                    Basis”) for maintaining the Loan. The Alternative Basis may at the Lender’s sole discretion include (without limitation) alternative interest periods, alternative currencies or alternative rates of interest but shall include the
                  relevant Margin above the cost of funds to the Lender.

              

      

    

    Once the Alternative Basis has been received by the Borrower, the Borrower and the Lender shall negotiate in good faith for a period of
      thirty (30) Banking Days in order to arrive at a mutually acceptable substitute basis for the Lender to continue to make available the Loan and, if within such thirty (30) Banking Day period the Borrower and the Lender shall agree in writing upon
      such an alternative basis (the “Substitute Basis”) the Substitute Basis should be retroactive to and effective from the first day of the relevant Interest Period.

    The Substitute Basis so certified shall be binding upon the Borrower, and shall take effect in accordance with its terms from the date
      specified in the Determination Notice until such time as the Lender notifies the Borrower that none of the circumstances specified in clause 3.5.1 continues to exist whereupon the normal interest rate fixing provisions of this Agreement shall again
      apply and, subject to the other provisions of this Agreement, the Commitment may again be borrowed.

    If the Borrower does not agree the Substitute Basis, then the Borrower shall have the right to repay the Loan without any premium or penalty
      on the next Interest Payment Date after receiving notice of the Substitute Basis, together with accrued interest thereon payable to the Lender at the rate certified by the Lender and notified to the Borrower as being a reasonable interest reflecting
      the cost to the Lender of funding the Loan during the period ending on the date of such prepayment, plus the Margin.

    So long as any Substitute Basis is in force, the Lender shall from time to time (but at least monthly) review whether or not the
      circumstances are such that such Substitute Basis is no longer necessary and, if the Lender so determines it shall notify the Borrower that the Substitute Basis shall cease to be effective from such date as the Lender shall reasonably specify.

    
      
        	3.5.3	
                Interest Rate Swaps

              

      

    

    
      20

      
        

    

    The Borrower may not enter into any interest hedging arrangements without the prior written consent of the Lender.

    
      
        	4	
                REPAYMENT AND PREPAYMENT

              

      

    

    
      
        	4.1	
                Repayment

              

      

    

    
      
        	4.1.1	
                Subject to any obligation to pay earlier under this Agreement, the Borrower must repay the Loan by:

              

      

    

    
      
        	

              	(a)	
                twelve (12) equal quarterly instalments of USD175,000 each; and

              

      

    

    
      
        	

              	(b)	
                an instalment (the “Balloon Instalment”) of USD1,900,000, the first repayment instalment falling due 3 months after the Drawdown Date and subsequent instalments falling
                  due at quarterly intervals thereafter, with the final instalment falling due on the Maturity Date and the Balloon Instalment being repayable together with the final such instalment.

              

      

    

    
      
        	4.1.2	
                If less than the full amount of the Loan is drawn down, then each of the said repayment instalments and the Balloon Instalment shall be reduced pro rata by the amount of, in aggregate, such undrawn amount.

              

      

    

    
      
        	4.1.3	
                The Borrower shall on the Maturity Date also pay to the Lender all other amounts in respect of interest or otherwise then due and payable under this Agreement and the Security Documents.

              

      

    

    
      
        	4.2	
                Voluntary prepayment

              

      

    

    Subject to clauses 4.3, 4.4, 4.5 and 4.6, the Borrower may, subject to having given 15 days’ prior written notice thereof to the Lender, prepay any specified
      amount (such part being in an amount of one hundred thousand Dollars (USD 100,000) or any larger sum which is an integral multiple of such amount) of the Loan on any relevant Interest Payment Date without premium or penalty.

    
      
        	4.3	
                Mandatory Prepayment on Total Loss

              

      

    

    On the date falling one hundred and eighty (180) days after that on which the Vessel became a Total Loss or, if earlier, on the date upon which the relevant
      insurance proceeds are, or Requisition Compensation is, received by the Borrower (or the Lender pursuant to the Security Documents) the Borrower must prepay the Loan in full.

    
      
        	4.3.1	
                Interpretation

              

      

    

    For the purpose of this Agreement, a Total Loss shall be deemed to have occurred:

    
      
        	

              	(a)	
                in the case of an actual total loss of the Vessel, on the actual date and at the time the Vessel was lost or, if such date is not known, on the date on which the Vessel was last reported;

              

      

    

    
      
        	

              	(b)	
                in the case of a constructive total loss of the Vessel, upon the date and at the time notice of abandonment of the Vessel is given to the then insurers of the Vessel (provided a claim for total loss is admitted
                  by such insurers) or, if such

              

      

    

    
      21

      
        

    

    insurers do not immediately admit such a claim, at the date and at the time at which either a total loss is subsequently admitted by such insurers or a total loss
      is subsequently adjudged by a competent court of law or arbitration tribunal to have occurred;

    
      
        	

              	(c)	
                in the case of a compromised or arranged total loss of the Vessel, on the date upon which a binding agreement as to such compromised or arranged total loss has been entered into by the then insurers of the
                  Vessel;

              

      

    

    
      
        	

              	(d)	
                in the case of Compulsory Acquisition, on the date upon which the relevant requisition of title or other compulsory acquisition occurs; and

              

      

    

    
      
        	

              	(e)	
                in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of the Vessel (other than within the definition of Compulsory Acquisition) by any Government Entity, or by
                  persons allegedly acting or purporting to act on behalf of any Government Entity, which deprives the Borrower of the use of the Vessel for more than sixty (60) days, upon the expiry of the period of sixty (60) days after the date upon
                  which the relevant incident occurred.

              

      

    

    
      
        	4.4	
                Mandatory prepayment on sale of the Vessel

              

      

    

    On the date of completion of the sale of the Vessel, the Borrower must prepay the Loan in full.

    
      
        	4.5	
                Amounts payable on prepayment

              

      

    

    
      
        	4.5.1	
                Any prepayment of all or part of the Loan under this Agreement shall be made together with:

              

      

    

    
      
        	

              	(a)	
                accrued interest on the amount to be prepaid to the date of such prepayment;

              

      

    

    
      
        	

              	(b)	
                any additional amount payable under clauses 3.5, 6.6 or 12.2; and

              

      

    

    
      
        	

              	(c)	
                all other sums payable by the Borrower to the Lender under this Agreement or any of the other Security Documents including, without limitation any Break Costs.

              

      

    

    
      	4.6	
              Notice of prepayment; reduction of Repayment Instalments

            

    

    
      
        	4.6.1	
                Every notice of prepayment shall be effective only on actual receipt by the Lender, shall be irrevocable, shall specify the amount to be prepaid and shall oblige the Borrower to make such prepayment on the date
                  specified.

              

      

    

    
      
        	4.6.2	
                Any amount prepaid pursuant to clause 4.2 shall be applied pro rata against the remaining Repayment Instalments (including the Balloon Instalment) specified in clause 4.1.1.

              

      

    

    
      
        	4.6.3	
                The Borrower may not prepay the Loan or any part thereof except as expressly provided in this Agreement.

              

      

    

    
      
        	4.6.4	
                No amount repaid or prepaid may be re-borrowed.

              

      

    

    
      22

      
        

    

    

    

    
      
        	5	
                FEES AND EXPENSES

              

      

    

    
      
        	5.1	
                Arrangement fee

              

      

    

    The Borrower agrees to pay to the Lender on the Drawdown Date a non-refundable arrangement fee equal to zero point nine per cent (0.9%) of the amount of the Loan
      which is made available on the Drawdown Date.

    
      
        	5.2	
                Expenses

              

      

    

    The Borrower agrees to reimburse the Lender on a full indemnity basis within ten (10) days of demand all reasonable expenses and/or disbursements whatsoever
      (including without limitation legal, printing and out of pocket expenses) certified by the Lender as having been incurred by them from time to time:

    
      
        	5.2.1	
                in connection with the negotiation, preparation, execution and, where relevant, registration of the Security Documents and of any contemplated or actual amendment, or indulgence or the granting of any waiver or
                  consent howsoever in connection with, any of the Security Documents (including legal fees) (but excluding any such expense incurred in connection with the transfer, assignment or sub-participation of any of the rights and/or obligations
                  of the Lender under the Security Documents);

              

      

    

    
      
        	5.2.2	
                in contemplation or furtherance of, or otherwise howsoever in connection with, the exercise or enforcement of, or preservation of any rights, powers, remedies or discretions under any of the Security Documents,
                  or in consideration of the Lender’s rights thereunder or any action proposed or taken following the occurrence of a Default or otherwise in respect of the moneys owing under any of the Security Documents; and

              

      

    

    
      
        	5.2.3	
                in connection with obtaining a written report from a maritime insurance consultant or broker acceptable to the Lender in relation to the Insurances of the Vessel (which the Lender may obtain not more than once a
                  year, and at any time when there has been a change of insurer or terms of cover for the Vessel, other than in respect of the insured value of the Vessel), 

                

              

         

        

         together with interest at the rate referred to in clause 3.4 from the date on which reimbursement of such expenses and/or disbursements were due following demand to the date of payment (as well after as
          before judgment).

      

    

    
      
        	5.3	
                Value added tax

              

      

    

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

    
      
        	5.4	
                Stamp and other duties

              

      

    

    The Borrower must pay all stamp, documentary, registration or other like duties or taxes, but excluding any FATCA Deduction (except for any such Taxes incurred in
      connection with any transfer, assignment or sub-participation of any of the rights and/or obligations of the Lender under any of the Security Documents) (including any duties or taxes payable by the Lender) imposed on or in connection with any of the

    
      23

      
        

    

    

    

    Underlying Documents, the Security Documents or the Loan and agree to indemnify the Lender against any liability arising by reason of any
      delay or omission by the Borrower to pay such duties or taxes.

    
      
        	6	
                PAYMENTS AND TAXES; ACCOUNTS AND CALCULATIONS

              

      

    

    
      
        	6.1	
                No set-off or counterclaim

              

      

    

    All payments to be made by the Borrower under any of the Security Documents must be made in full, without any set off or counterclaim
      whatsoever and, subject as provided in clause 6.6, free and clear of any deductions or withholdings, in USD on or before 11:00 am (London time) on the due date in freely available funds to such account at the Lender and in such place as the Lender
      may from time to time specify for this purpose.

    
      
        	6.2	
                Payment by the Lender

              

      

    

    All sums to be advanced by the Lender to the Borrower under this Agreement shall be remitted in USD on the Drawdown Date to the account
      specified in the Drawdown Notice.

    
      
        	6.3	
                Non-Banking Days

              

      

    

    When any payment under any of the Security Documents would otherwise be due on a day which is not a Banking Day, the due date for payment
      shall be extended to the next following Banking Day unless the Banking Day falls in the next calendar month in which case payment shall be made on the immediately preceding Banking Day.

    
      
        	6.4	
                Calculations

              

      

    

    All interest and other payments of an annual nature under any of the Security Documents shall accrue from day to day and be calculated on the
      basis of actual days elapsed and a three hundred and sixty (360) day year.

    
      
        	6.5	
                Currency of account

              

      

    

    If any sum due from the Borrower under any of the Security Documents, or under any order or judgment given or made in relation thereto, must
      be converted from the currency (“the first currency”) in which the same is payable thereunder into another currency (“the second currency”) for the purpose of (i) making or filing a claim or proof against the Borrower, (ii) obtaining an order or
      judgment in any court or other tribunal or (iii) enforcing any order or judgment given or made in relation thereto, the Borrower undertakes to indemnify and hold harmless the Lender from and against any loss suffered as a result of any discrepancy
      between (a) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Lender may in the ordinary course of business purchase the first
      currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof. Any amount due from the Borrower under this clause 6.5 shall be due as a separate debt and shall not
      be affected by judgment being obtained for any other sums due under or in respect of any of the Security Documents and the term “rate of

    
      24

      
        

    

    

    

    exchange” includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency.

    
      
        	6.6	
                Grossing-up for Taxes - by the Borrower

              

      

    

    If at any time the Borrower must make any deduction or withholding in respect of Taxes (other than a FATCA Deduction) or otherwise from any payment due under any
      of the Security Documents for the account of the Lender or withholding in respect of Taxes from any payment due under any of the Security Documents, the sum due from the Borrower in respect of such payment must be increased to the extent necessary to
      ensure that, after the making of such deduction or withholding, the Lender receives on the due date for such payment (and retains, free from any liability in respect of such deduction or withholding), a net sum equal to the sum which it would have
      received had no such deduction or withholding been required to be made and the Borrower must indemnify the Lender against any losses or costs incurred by it by reason of any failure of the Borrower to make any such deduction or withholding or by
      reason of any increased payment not being made on the due date for such payment. The Borrower must promptly deliver to the Lender any receipts, certificates or other proof evidencing the amounts (if any) paid or payable in respect of any deduction or
      withholding as aforesaid.

    
      
        	6.7	
                Claw back of Tax benefit

              

      

    

    If, following any such deduction or withholding as is referred to in clause 6.6 from any payment by the Borrower, the Lender shall receive or be granted a credit
      against or remission for any Taxes payable by it, the Lender shall, and to the extent that it can do so without prejudicing the retention of the amount of such credit or remission and without prejudice to the right of the Lender to obtain any other
      relief or allowance which may be available to it, reimburse the Borrower with such amount as Lender shall in its absolute discretion certify to be the proportion of such credit or remission as will leave the Lender (after such reimbursement) in no
      worse position than it would have been in had there been no such deduction or withholding from the payment by the Borrower as aforesaid. Such reimbursement shall be made forthwith upon the Lender certifying that the amount of such credit or remission
      has been received by it. Nothing contained in this Agreement shall oblige the Lender to rearrange its tax affairs or to disclose any information regarding its tax affairs and computations. Without prejudice to the generality of the foregoing, the
      Borrower shall not, by virtue of this clause 6.7, be entitled to enquire about the Lender’s tax affairs.

    
      
        	6.8	
                Loan account

              

      

    

    The Lender shall maintain, in accordance with its usual practice, an account evidencing the amounts from time to time lent by, owing to and paid to it under the
      Security Documents. The Lender shall maintain a control account or accounts (as the Lender may deem necessary) showing the Loan and other sums owing by the Borrower under the Security Documents and all payments in respect thereof being made from time
      to time. The control account shall, in the absence of manifest error, be prima facie evidence of the amount from time to time owing by the Borrower under ate Securily Documents.

    
      
        	6.9	
                Partial payments

              

      

    

    
      25

      
        

    

    

    

    If, on any date on which a payment is due to be made by the Borrower under any of the Security Documents, the amount received by the Lender
      from the Borrower falls short of the total amount of the payment due to be made by the Borrower on such date then, without prejudice to any rights or remedies available to the Lender under any of the Security Documents, the Lender must apply the
      amount actually received from the Borrower in or towards discharge of the obligations of the Borrower under the Security Documents in the following order, notwithstanding any appropriation made, or purported to be made, by the Borrower:

    
      
        	6.9.1	
                first, in or towards payment, in such order as the Lender may decide, of any unpaid costs and expenses of the Lender under any of the Security Documents;

              

      

    

    
      
        	6.9.2	
                secondly, in or towards payment of any fees payable to the Lender under, or in relation to, the Security Documents which remain unpaid;

              

      

    

    
      
        	6.9.3	
                thirdly, in or towards payment to the Lender of any accrued default interest owing pursuant to clause 3.4 but remains unpaid;

              

      

    

    
      
        	6.9.4	
                fourthly, in or towards payment to the Lender of any accrued interest owing in respect of the Loan which shall have become due under any of the Security Documents but remains unpaid;

              

      

    

    
      
        	6.9.5	
                fifthly, in or towards payment to the Lender of any due but unpaid Repayment Instalments; and

              

      

    

    
      
        	6.9.6	
                sixthly, in or towards payment to the Lender, on a pro rata basis, for any loss suffered by reason of any such payment in respect of principal not being effected on an Interest Payment Date relating to the part
                  of the Loan repaid and which amounts are so payable under this Agreement and any other sum relating to the Loan which shall have become due under any of the Security Documents but remains unpaid.

              

      

    

    The order of application set out in clauses 6.9.1 to 6.9.6 may be varied by the Lender without any reference to, or consent or approval from,
      the Borrower.

    
      
        	7	
                REPRESENTATIONS AND WARRANTIES

              

      

    

    
      
        	7.1	
                Continuing representations and warranties

              

      

    

    The Borrower represents and warrants to the Lender that:

    
      
        	7.1.1	
                Due incorporation

              

      

    

    each of the corporate Security Parties is duly incorporated, validly existing and in good standing under the laws of its respective country
      of incorporation, in each case, as a corporation and has power to carry on its respective businesses as it is now being conducted and to own its respective property and other assets, to which it has unencumbered legal and beneficial title except as
      disclosed to the Lender, and the shares of the Borrower are in registered form;

    
      
        	7.1.2	
                Corporate power

              

      

    

    each of the Security Parties has power to execute, deliver and perform its obligations and, as the case may be, to exercise its rights under
      the Underlying Documents and the

    
      26

      
        

    

    

    

    Security Documents to which it is a party; all necessary corporate, shareholder (if applicable) and other action has been taken to authorise the execution,
      delivery and on the execution of the Security Documents performance of the same and no limitation on the powers of the Borrower to borrow or any other Security Party to howsoever incur liability and/or to provide or grant security will be exceeded as
      a result of borrowing any part of the Loan;

    
      
        	7.1.3	
                Binding obligations

              

      

    

    the Underlying Documents and the Security Documents, when executed, will constitute valid and legally binding obligations of the relevant Security Parties
      enforceable in accordance with their respective terms;

    
      
        	7.1.4	
                No conflict with other obligations

              

      

    

    the execution and delivery of, the performance of their obligations under, and compliance with the provisions of, the Underlying Documents and the Security
      Documents by the relevant Security Parties will not (i) contravene any existing applicable law, statute, rule or regulation or any judgment, decree or permit to which any Security Party or other member of the Group is subject, (ii) conflict with, or
      result in any breach of any of the terms of, or constitute a default under, any agreement or other instrument to which any Security Party or other member of the Group is a party or is subject or by which it or any of its property is bound, (iii)
      contravene or conflict with any provision of the constitutional documents of any Security Party or (iv) result in the creation or imposition of, or oblige any of the Security Parties to create, any Encumbrance (other than a Permitted Encumbrance) on
      any of the undertakings, assets, rights or revenues of any of the Security Parties;

    
      
        	7.1.5	
                No default

              

      

    

    no Event of Default has occurred;

    
      
        	7.1.6	
                No litigation or judgments

              

      

    

    no Proceedings are current, pending or threatened against any of the Security Parties or their assets which could have a Material Adverse Effect and there exist
      no judgments, orders, injunctions which would materially affect the obligations of the Security Parties under the Security Documents to which they are a party;

    
      
        	7.1.7	
                No filings required

              

      

    

    except for the registration of the Mortgage in the relevant register under the laws of the Flag State through the Registry, it is not necessary to ensure the
      legality, validity, enforceability or admissibility in evidence of any of the Underlying Documents or any of the Security Documents that they or any other instrument be notarised, filed, recorded, registered or enrolled in any court, public office or
      elsewhere in any Pertinent Jurisdiction or that any stamp, registration or similar tax or charge be paid in any Pertinent Jurisdiction on or in relation to any of the Underlying Documents or the Security Documents and each of the Underlying Documents
      and the Security Documents is in proper form for its enforcement in the courts of each Pertinent Jurisdiction;

    
      27

      
        

    

    

    

    
      
        	7.1.8	
                Required Authorisations and legal compliance

              

      

    

    all Required Authorisations have been obtained or effected or waived by the person requiring the same and, to the extent no such waiver exists, are in full force
      and effect and no Security Party has in any way contravened any applicable law, statute, rule or regulation (including all such as relate to money laundering) to which such Security Party is subject;

    
      
        	7.1.9	
                Choice of law

              

      

    

    the choice of English law to govern the Underlying Documents and the Security Documents (other than the Mortgage and the Earnings Account Pledge), the choice of
      the law of the Flag State to govern the Mortgage, the choice of Greek law to govern the Earnings Account Pledge and the submissions by the Security Parties to the jurisdiction of the English courts and the obligations of such Security Parties
      associated therewith, are valid and binding;

    
      
        	7.1.10	
                No immunity

              

      

    

    no Security Party nor any of their assets is entitled to immunity on the grounds of sovereignty or otherwise from any Proceedings whatsoever;

    
      
        	7.1.11	
                Financial statements correct and complete

              

      

    

    the latest audited consolidated accounts of the Corporate Guarantor in respect of the relevant financial year as delivered to the Lender present or will present
      fairly and accurately the consolidated financial position of the Corporate Guarantor as at the date thereof and the results of the operations of the Corporate Guarantor and, as at such date, the Corporate Guarantor does not have any significant
      liabilities (contingent or otherwise) or any unrealised or anticipated losses which are not disclosed by, or reserved against or provided for in, such financial statements;

    
      
        	7.1.12	
                Pari passu

              

      

    

    the obligations of the Borrower under this Agreement are direct, general and unconditional obligations of the Borrower and rank at least pari passu with all other
      present and future unsecured and unsubordinated Indebtedness of the Borrower except for obligations which are rnandatorily preferred by operation of law and not by contract;

    
      
        	7.1.13	
                Information

              

      

    

    all information, whatsoever provided by any Security Party to the Lender in connection with the negotiation and preparation of the Security Documents or otherwise
      provided hereafter in relation to, or pursuant to this Agreement is, or will be, true and accurate in all material respects and not misleading, does or will not omit material facts and all reasonable enquiries have been, or shall have been, made to
      verify the facts and statements contained therein; there are, or will be, no other facts the omission of which would make any fact or statement therein misleading in any (in the reasonable opinion of the Lender) material respect;

    
      
        	7.1.14	
                No withholding Taxes

              

      

    

    
      28

      
        

    

    

    

    no Taxes anywhere are imposed whatsoever by withholding or otherwise on any payment to be made by any Security Party under the Underlying Documents or the
      Security Documents to which such Security Party is or is to be a party or are imposed on or by virtue of the execution or delivery by the Security Parties of the Underlying Documents or the Security Documents or any other document or instrument to be
      executed or delivered under any of the Security Documents;

    
      
        	7.1.15	
                No Default under Underlying Documents

              

      

    

    except as disclosed in writing by the Borrower to the Lender, no Security Party is in material default of any of its obligations under any relevant Underlying Document;

    
      
        	7.1.16	
                Use of proceeds

              

      

    

    the Borrower shall apply the Loan only for the purposes specified in clause 2.1;

    
      
        	7.1.17	
                Copies true and complete

              

      

    

    the Certified Copies of the Underlying Documents delivered or to be delivered to the Lender pursuant to clause 9.1 are, or will when delivered be, true and complete copies or, as the
      case may be, originals of such documents; and such documents constitute valid and binding obligations of the parties thereto enforceable in accordance with their respective terms and there have been no amendments or variations thereof or defaults
      thereunder;

    
      
        	7.1.18	
                Ownership of Borrower

              

      

    

    all the shares in the Borrower are legally owned by the Shareholder and ultimately owned and controlled by the Corporate Guarantor and are not held on trust for any third party;

    
      
        	7.1.19	
                No Indebtedness

              

      

    

    the Borrower has not incurred any Borrowed Moneys save as envisaged by this Agreement or as otherwise disclosed to the Lender or incurred in the ordinary course of its business of
      owning, operating and chartering the Vessel;

    
      
        	7.1.20	
                Tax returns

              

      

    

    the Borrower and the Corporate Guarantor have filed all tax and other fiscal returns (if any) which may be required to be filed by any tax authority to which they are subject;

    
      
        	7.1.21	
                Freedom from Encumbrances

              

      

    

    neither the Vessel nor its Earnings, Insurances or Requisition Compensation (each as defined in the relevant Ship Security Documents) nor the Earnings Account nor any Extended
      Employment Contract in respect of the Vessel nor any other properties or rights which are, or are to be, the subject of any of the Security Documents nor any part thereof will be subject to any Encumbrance except Permitted Encumbrances;

    
      
        	7.1.22	
                Environmental Matters

              

      

    

    
      29

      
        

    

    

    

    except as may already have been disclosed by the Borrower in writing to, and acknowledged in writing by, the Lender:

    
      
        	

              	(a)	
                the Borrower, the Manager and the other Group Members and, to the best of the Borrower’s knowledge and belief (having made due enquiry), their respective Environmental Affiliates have complied with the
                  provisions of all Environmental Laws;

              

      

    

    
      
        	

              	(b)	
                the Borrower, the Manager and the other Group Members and, to the best of the Borrower’s knowledge and belief (having made due enquiry), their respective Environmental Affiliates have obtained all Environmental
                  Approvals and are in compliance with all such Environmental Approvals;

              

      

    

    
      
        	

              	(c)	
                no Environmental Claim has been made or threatened or pending against any of the Borrower, the Manager, any other Group Member or, to the best of the Borrower’s knowledge and belief (having made due enquiry),
                  any of their respective Environmental Affiliates; and

              

      

    

    
      
        	

              	(d)	
                there has been no Environmental Incident;

              

      

    

    
      
        	7.1.23	
                ISM and ISPS Code

              

      

    

    the Borrower has complied with and continue to comply with and have procured that the Manager of the Vessel has complied with and continues to comply with the ISM
      Code, the ISPS Code and all other statutory and other requirements relative to their business and in particular they or the Manager have obtained and maintains a valid DOC, IAPP Certificate, EIAPP Certificate (if applicable) and SMC for the Vessel
      and that they and the Manager have implemented and continue to implement an ISM SMS;

    
      
        	7.1.24	
                Accounting reference date

              

      

    

    the Borrower’s and the Corporate Guarantor’s accounting reference date is 31 December.

    
      
        	7.1.25	
                Office

              

      

    

    the Borrower does not have an office in England or the United States of America;

    
      
        	7.1.26	
                Restricted Persons, unlawful activity

              

      

    

    
      
        	

              	(a)	
                none of the shares in the Borrower, in (to the best of its knowledge) the Corporate Guarantor, or in any other Security Party or the Vessel are or will be at any time during the Facility Period legally or
                  beneficially owned or controlled by a Restricted Person;

              

      

    

    
      
        	

              	(b)	
                no Restricted Person has or will have at any time during the Facility Period any legal or beneficial interest of any nature whatsoever in any of the shares of the Borrower, (to the best of its knowledge) the
                  Corporate Guarantor, or any other Security Party or the Vessel;

              

      

    

    
      
        	7.1.27	
                Sanctions

              

      

    

    
      30

      
        

    

    

    

    (to the best of its knowledge only in respect of an agent) no Security Party nor any director, officer, agent, employee of any Security Party or any person acting
      on behalf of any Security Party, is a Restricted Person nor acts directly or indirectly on behalf of a Restricted Person; and

    
      
        	7.1.28	
                FATCA 

                

              

         

        

         none of the Security Parties is a FATCA FFI or a US Tax Obligor.

      

    

    
      
        	7.2	
                Repetition of representations and warranties

              

      

    

    On each day throughout the Facility Period, the Borrower shall be deemed to repeat the representations and warranties in clause 7 updated mutatis mutandis as if
      made with reference to the facts and circumstances existing on such day and in clause 7.1.11 as if made with reference to the Latest Account at any relevant time.

    
      
        	8	
                UNDERTAKINGS

              

      

    

    
      
        	8.1	
                General

              

      

    

    The Borrower undertakes with the Lender that, from the Execution Date until the end of the Facility Period, it will:

    
      
        	8.1.1	
                Notice of Event of Default and Proceedings

              

      

    

    promptly inform the Lender of (a) any Event of Default and of any other circumstances or occurrence which might adversely affect the ability of any Security Party
      to perform its obligations under any of the Security Documents to which it is a party and (b) as soon as the same is commenced or threatened, details of any Proceedings involving any Security Party which could have a Material Adverse Effect on that
      Security Party and/or the operation of the Vessel (including, but not limited to any Total Loss of the Vessel or the occurrence of any Environmental Incident) and will from time to time, if so requested by the Lender, confirm to the Lender in writing
      that, save as otherwise stated in such confirmation, no Event of Default has occurred and is continuing unremedied and unwaived and no such Proceedings have been commenced or threatened;

    
      
        	8.1.2	
                Authorisation

              

      

    

    to the extent a waiver has not been obtained, obtain or cause to be obtained, maintain in full force and effect and comply fully with all Required Authorisations,
      provide the Lender with Certified Copies of the same and do, or cause to be done, all other acts and things which may from time to time be necessary or desirable under any applicable law (whether or not in the Pertinent Jurisdiction) for the
      continued due performance of all the obligations of the Security Parties under each of the Security Documents;

    
      
        	8.1.3	
                Corporate Existence

              

      

    

    ensure that each Security Party maintains its corporate existence as a body corporate duly organised and validly existing and in good standing under the laws of
      the Pertinent Jurisdiction;

    
      
        	8.1.4	
                Use of proceeds

              

      

    

    
      31

      
        

    

    

    

    use the Loan exclusively for the purposes specified in clauses 1.1 and 2.1;

    
      
        	8.1.5	
                Pari passu

              

      

    

    ensure that its obligations under this Agreement shall, without prejudice to the provisions of clause 8.3, at all times rank at least pari passu with all its
      other present and future unsecured and unsubordinated Indebtedness with the exception of any obligations which are mandatorily preferred by law and not by contract;

    
      
        	8.1.6	
                Financial statements

              

      

    

    as soon as possible, but in no event later than 180 days after the end of each of its financial years, annual audited (prepared in accordance with US GAAP by a
      first class international firm of accountants) consolidated financial statements of the Corporate Guarantor (commencing with the financial year ending 31 December 2018), together with updated details (in a form acceptable to the Lender) of all
      off-balance sheet and time-charter hire commitments of the Vessel; and the first audited accounts of the Corporate Guarantor shall evidence that all amounts payable under the MOA (in addition to the part to be financed by the Loan) have been funded
      by the Borrower through equity contribution and/or common shares contribution provided exclusively by the Corporate Guarantor;

    
      
        	8.1.7	
                Compliance Certificates

              

      

    

    deliver to the Lender on the date on which the audited consolidated accounts are delivered under clause 8.1.6 a Compliance Certificate together with such
      supporting information as the Lender may reasonably require;

    
      
        	8.1.8	
                Financial Covenants

              

      

    

    procure that

    
      
        	

              	(a)	
                the Net Worth of the Group will at all times exceed USD15,000,000; and

              

      

    

    
      
        	

              	(b)	
                the Total Liabilities divided by the Total Assets (each net of cash balance) shall at all times be no more than 75%;

              

      

    

    
      
        	8.1.9	
                Reimbursement of MII & MAP Policy premiums

              

      

    

    reimburse the Lender on the Lender’s written demand the amount of the premium payable by the Lender for the inception or, as the case may be, extension and/or
      continuance of the MII & MAP Policy (including any insurance tax thereon);

    
      
        	8.1.10	
                Provision of further information

              

      

    

    provide the Lender, and procure that the Corporate Guarantor (including its Subsidiaries), shall provide the Lender, with such financial or other information
      (including, but not limited to, financial standing, Indebtedness, balance sheet, off-balance sheet commitments, repayment schedules, operating expenses, charter arrangements concerning the Borrower, the Corporate Guarantor (including its
      Subsidiaries), the Group and their respective affairs, activities, financial standing, Indebtedness and operations and the performance of the Vessel as the Lender may from time to time reasonably require save for any information which is confidential
      in

    
      32

      
        

    

    

    

    relation to arms-length third parties or is not disclosable by law, convention or regulatory requirements;

    
      
        	8.1.11	
                Obligations under Security Documents, etc.

              

      

    

    duly and punctually perform each of the obligations expressed to be imposed or assumed by them under the Security Documents and any Extended Employment Contact
      and will procure that each of the other Security Parties will, duly and punctually perform each of the obligations expressed to be assumed by it under the Security Documents and any Extended Employment Contract to which it is a party;

    
      
        	8.1.12	
                Compliance with ISM Code

              

      

    

    and will procure that any Operator will, comply with and ensure that the Vessel and any Operator complies with the requirements of the ISM Code, including (but
      not limited to) the maintenance and renewal of valid certificates pursuant thereto throughout the Security Period (as defined in the relevant Ship Security Documents);

    
      
        	8.1.13	
                Withdrawal of DOC and SMC

              

      

    

    immediately inform the Lender if there is any actual withdrawal of its or any Operator’s DOC, IAPP Certificate, EIAPP Certificate or the SMC of the Vessel;

    
      
        	8.1.14	
                Issuance of DOC and SMC

              

      

    

    and will procure that any Operator will promptly inform the Lender of the receipt by the Borrower or any Operator of notification that its application for a DOC
      or any application for an SMC or IAPP Certificate or EIAPP Certificate for the Vessel has been refused;

    
      
        	8.1.15	
                ISPS Code Compliance

              

      

    

    and will procure that the Manager or any Operator will:

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	8.1.16	
                Compliance with Laws and payment of taxes

              

      

    

    
      
        	

              	(a)	
                comply with all relevant Environmental Laws, laws, statutes and regulations applicable to it and pay all taxes for which it is liable as they fall due; and

              

      

    

    
      
        	

              	(b)	
                comply in all respects with, and will procure that each Security Party and each other Group Member will comply in all respects with, all Sanctions;

              

      

    

    
      
        	8.1.17	
                Inspection

              

      

    

    
      33

      
        

    

    

    

    ensure that the Lender, by independent marine surveyors or other persons appointed by it for such purpose (who shall be appointed by the Lender at the Borrower’s
      expense), may board the Vessel, once per calendar year or whenever the Lender deems necessary after the occurrence of an Event of Default which is continuing, provided in each case that the Lender shall use reasonable endeavours to ensure that such
      inspections or surveys shall not interfere with the operation of the Vessel, for the purpose of inspecting or surveying her and will afford all proper facilities for such inspections or survey and for this purpose will give the Lender reasonable
      advance notice of any intended drydocking of the Vessel (whether for the purpose of classification, survey or otherwise) and will pay the costs in respect of each such inspection or survey and will provide the Lender with or ensure that the Lender
      receives on request all reports of such inspections, to be in such form as the Lender may approve, and, if the Vessel shall not be in a condition and state which complies with the requirements of this Agreement and the other Security Documents, will
      effect such repairs as in the opinion of the Lender be desirable to ensure such compliance;

    
      
        	8.1.18	
                The Vessel

              

      

    

    ensure that throughout the Facility Period the Vessel will at all times after her delivery (except as the Lender may otherwise permit) be:

    
      
        	

              	(i)	
                in the absolute sole, legal and beneficial ownership of the Borrower and not held on trust for any third party;

              

      

    

    
      
        	

              	(ii)	
                registered through the offices of the Registry as a ship under the laws and flag of the Flag State;

              

      

    

    
      
        	

              	(iii)	
                in compliance with the ISM Code and the ISPS Code and operationally seaworthy and in every way fit for service;

              

      

    

    
      
        	

              	(iv)	
                classed with the Classification free of all overdue requirements and recommendations of the Classification Society affecting the Classification;

              

      

    

    
      
        	

              	(v)	
                insured in accordance with the Ship Security Documents; and

              

      

    

    
      
        	

              	(vi)	
                managed by the Manager in accordance with the terms of the Management Agreement, which shall be acceptable to the Lender.

              

      

    

    
      
        	8.1.19	
                Charters

              

      

    

    deliver to the Lender, a Certified Copy of each Extended Employment Contract upon its execution, forthwith on the Lender’s request execute (a) a Charter
      Assignment in respect thereof and (b) any notice of assignment required in connection therewith and use reasonable efforts to procure the acknowledgement of any such notice of assignment by the relevant charterer (provided that any failure to procure
      the acknowledgement shall not constitute an Event of Default) and (c) (if the Vessel is subject to a bareboat charter) procure execution by the Borrower and the charterer of a Tripartite Deed, together with all notices required to be determined
      thereunder and will provide evidence acceptable to the Lender that such notice has been given to the relevant charterer and the Borrower shall pay all legal and other costs incurred by the Lender in connection with any such Charter Assignment and
      Tripartite Deed, forthwith following the Lender’s demand;

    
      34

      
        

    

    

    

    
      
        	8.1.20	
                Chartering

              

      

    

    not without the prior written consent of the Lender and, if such consent is given, only subject to such conditions as the Lender may impose (and in the case of
      (b) only, such consent not to be unreasonably withheld), to let the Vessel:

    
      
        	

              	(a)	
                on demise charter for any period; or

              

      

    

    
      
        	

              	(b)	
                by any time or consecutive voyage charter for a term which exceeds or which by virtue of any optional extensions therein contained might exceed twelve (12) months’ duration; or

              

      

    

    
      
        	

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

              

      

    

    
      
        	8.1.21	
                Sanctions

              

      

    

    
      
        	

              	(a)	
                (to the best of its knowledge only in respect of an agent) not be, and shall procure that any Security Party and other Group Member, or any director, officer, agent, employee or person acting on behalf of the
                  foregoing is not, a Restricted Person and does not act directly or indirectly on behalf of a Restricted Person;

              

      

    

    
      
        	

              	(b)	
                and shall procure that each Security Party and each other Group Member shall, not use any revenue or benefit derived from any activity or dealing with a Restricted Person in discharging any obligation due or
                  owing to the Lender;

              

      

    

    
      
        	

              	(c)	
                procure that no proceeds from any activity or dealing with a Restricted Person are credited to any bank account held with the Lender in its name or in the name of any other member of the Group;

              

      

    

    
      
        	

              	(d)	
                take, and shall procure that each Security Party and each other Group Member has taken, reasonable measures to ensure compliance with Sanctions;

              

      

    

    
      
        	

              	(e)	
                and shall procure that each Security Party and each other Group Member shall, to the extent permitted by law promptly upon becoming aware of them, supply to the Lender details of any claim, action, suit,
                  proceedings or investigation against it with respect to Sanctions by any Sanctions Authority; and

              

      

    

    
      
        	

              	(f)	
                not accept, obtain or receive any goods or services from any Restricted Person, except (without limiting clause 8.1.21(b)), to the extent relating to any warranties and/or guarantees given and/or liabilities
                  incurred in respect of an activity or dealing with a Restricted Person by the Borrower, any other Security Party or any other Group Member in accordance with this Agreement;

              

      

    

    
      
        	8.1.22	
                Ownership

              

      

    

    ensure that all the shares in the Borrower are legally owned by the Shareholder and ultimately owned and controlled by the Corporate Guarantor and are not held on
      trust for any third party;

    
      35

      
        

    

    

    

    
      
        	8.1.23	
                Unencumbered liquidity

              

      

    

    procure that at all times during the Facility Period, the Corporate Guarantor shall maintain in an account or accounts with the Lender free deposit cash which is
      (other than the Earnings Account Pledge) free of any Encumbrance in an average aggregate amount of not less than USD250,000 for the preceding six-months period, to be tested first on the date falling six months after the Drawdown date and
      semi-annually thereafter;

    
      
        	8.1.24	
                Listing

              

      

    

    procure that the Corporate Guarantor shall maintain its listing as a public limited company on NASDAQ or any other stock exchange acceptable to the Lender and
      comply with all of the listing rules, laws and regulations applicable to public companies listed on NASDAQ or such other acceptable stock exchange and shall take no steps to de-list without the prior consent of the Lender (such consent not to be
      unreasonably withheld);

    
      
        	8.1.25	
                Shipping activities

              

      

    

    procure that the Corporate Guarantor shall at all times remain the ultimate holding company of shipowning companies engaged in shipping activities acceptable to
      the Lender;

    
      
        	8.1.26	
                Executive management

              

      

    

    procure that at all times throughout the Facility Period:

    
      
        	

              	(a)	
                Mr Aristeidis Pittas shall be the Chief Executive Officer or Chairman of the Corporate Guarantor; and

              

      

    

    
      
        	

              	(b)	
                the manager shall be managed and/or controlled by Mr Aristeidis Pittas or any other person acceptable to the Lender;

              

      

    

    
      
        	8.1.27	
                FATCA Information

              

      

    

    
      
        	

              	(a)	
                subject to paragraph (c) below each party to any Security Document shall, within 10 Banking Days of a reasonable request by the other party to that Security Documents:

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(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;

              

      

    

    
      
        	

              	(iii)	
                supply to that other party such forms, documentation and other information relating to its status as that other party reasonably requests for

              

      

    

    
      36

      
        

    

    

    

    the purposes of that other party’s compliance with any other law, regulation, or exchange of information regime;

    
      
        	

              	(b)	
                if a party to any Security Document confirms to another party pursuant to paragraph (a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA
                  Exempt Party, that party shall notify the other party reasonably promptly;

              

      

    

    
      
        	

              	(c)	
                paragraph (a) above shall not oblige the Lender to do anything, and paragraph (a)(iii) above shall not oblige any other party to any Security Document to do anything, which would or might in its reasonable
                  opinion constitute a breach of:

              

      

    

    
      
        	

              	(i)	
                any law or regulation;

              

      

    

    
      
        	

              	(ii)	
                any policy of the Lender;

              

      

    

    
      
        	

              	(iii)	
                any fiduciary duty; or

              

      

    

    
      
        	

              	(iv)	
                any duty of confidentiality;

              

      

    

    
      
        	

              	(d)	
                paragraph (a) above shall not oblige the Lender to do anything, and paragraph (a)(iii) above shall not oblige any other party to any Security Document to do anything, which would or might in its reasonable
                  opinion cause it to disclose any confidential information (including, without limitation, its tax returns and calculations); provided, however, that information required (or equivalent to the information so required) by United States
                  Internal Revenue Service Forms W-8 or W-9 (or any successor forms) shall not be treated as confidential information of such Lender for purposes of this paragraph (d);

              

      

    

    
      
        	

              	(e)	
                if a party to any Security Document fails to confirm whether or not it is a FATCA Exempt Party, or to supply forms, documentation or other information requested in accordance with paragraph (a) (i) or (ii) above
                  (including, for the avoidance of doubt, where paragraph (c) above applies), then such party shall be treated for the purposes of the Security Documents (and payments under them) as if it is not a FATCA Exempt Party until (in each case)
                  such time as that party provides the requested confirmation, forms, documentation or other information.

              

      

    

    
      
        	8.1.28	
                FATCA Deduction

              

      

    

    
      
        	

              	(a)	
                A party to any Security Document 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 to any Security Document 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)	
                A party to any Security Document 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 Borrower and the Lender.

              

      

    

    
      37

      
        

    

    

    

    
      
        	8.1.29	
                Equal treatment of lenders

              

      

    

    If the Corporate Guarantor enters into an agreement or instrument with any of its banks, financiers or any other financial institution pursuant to which the
      Corporate Guarantor grants to such banks, financiers or other financial institutions any financial covenant, or amends any financial covenant given to such banks, financiers or other financial institutions, measured by reference to the financial
      statements of the Corporate Guarantor, the Borrower must give immediate notice of those new or amended financial covenants to the Lender, and if the Lender (acting reasonably) considers those covenants (taken as a whole) to be more favourable to
      those banks, financiers or other financial institutions than those contained in clause 8.1.8 of this Agreement (also taken as a whole) then the Borrower and/or the Corporate Guarantor shall enter into such documentation as the Lender shall reasonably
      require so that additional or amended financial covenants (taken as a whole) are given also to the Lender until the end of (i) the Facility Period or (ii) the period during which the additional or amended financial covenants will apply in favour of
      such banks, financiers or other financial institutions (whichever is the earlier) (PROVIDED THAT, for the avoidance of doubt, for the purpose of this clause any covenant regarding the provision of cash collateral or restricted cash of any sort
      granted to other banks, financiers or other financial institutions shall not constitute a financial covenant under this clause requiring the Borrower and/or the Corporate Guarantor to extend the same to the Lender as well).

    
      
        	8.2	
                Security value maintenance

              

      

    

    
      
        	8.2.1	
                Security shortfall

              

      

    

    If at any time throughout the Facility Period the Security Value shall be less than the Required Security Amount, the Lender shall give notice to the Borrower
      requiring that such deficiency be remedied and then the Borrower must within 30 days of receipt of the Lender’s said notice, either:

    
      
        	

              	(a)	
                prepay such part of the Loan as will result in the Security Value after such prepayment (taking into account any other repayment of the Loan made between the date of the notice and the date of such prepayment)
                  being equal to or higher than the Required Security Amount; or

              

      

    

    
      
        	

              	(b)	
                constitute to the satisfaction of the Lender such further security for the Loan as shall be acceptable to the Lender having a value for security purposes (as determined by the Lender in accordance with clause
                  8.2.5) at the date upon which such further security shall be constituted which, when added to the Security Value, shall not be less than the Required Security Amount as at such date.

              

      

    

    The provisions of clauses 4.5 and 4.6 shall apply to prepayments under clause 8.2.1(a) provided that the Lender shall apply such prepayments pro rata against the
      Loan and the amount of the Loan prepaid hereunder shall not be available to be re-borrowed.

    
      
        	8.2.2	
                Valuation of the Vessel

              

      

    

    The Lender shall calculate the Scrap Value of the Vessel as and when the Lender shall require in its sole discretion.

    
      38

      
        

    

    

    

    The calculation of the Scrap Value of the Vessel made in accordance with the provisions of this clause 8.2.2 shall be binding upon the parties hereto (absent
      manifest error) until such time as any such further calculation shall be made by the Lender.

    
      
        	8.2.3	
                Information

              

      

    

    The Borrower undertakes with the Lender to supply to the Lender such information concerning the Vessel and its condition as the Lender may require for the purpose
      of determining the Scrap Value.

    
      
        	8.2.4	
                Costs

              

      

    

    The Borrower shall pay all costs in connection with any determination of the Scrap Value (which the Lender may determine at any time).

    
      
        	8.2.5	
                Valuation of additional security

              

      

    

    For the purposes of this clause 8.2, the market value (i) of any additional security over a ship (other than the Vessel) shall be determined (at the Borrower’s
      expense) in USD by an Approved Broker appointed by, and reporting to, the Lender, such valuation to be made without physical inspection, and on the basis of a sale for prompt delivery for cash at arms’ length, on normal commercial terms, as between a
      willing buyer and a willing seller, without taking into account the benefit or burden of any charterparty or other engagement concerning the Vessel and (ii) of any other additional security provided or to be provided to the Lender shall be determined
      by the Lender in its absolute discretion, Provided that additional security in the form of cash in Dollars will be valued on a Dollar for Dollar basis.

    
      
        	8.2.6	
                Documents and evidence

              

      

    

    In connection with any additional security provided in accordance with this clause 8.2, the Lender shall be entitled to receive (at the Borrower’s expense) such
      evidence and documents of the kind referred to in schedule 2 as may in the Lender’s opinion be appropriate and such favourable legal opinions as the Lender shall in its absolute discretion require.

    
      
        	8.2.7	
                Release of Security

              

      

    

    If the Security Value shall at any time exceeds the Required Security Amount, and the Borrower shall previously have provided further security to the Lender
      pursuant to clause 8.2.1, the Lender shall, as soon as reasonably practicable after notice from the Borrower to do so and subject to being indemnified to its reasonable satisfaction against the cost of doing so, release any such further security
      specified by the Borrower provided that the Lender is satisfied that, immediately following such release, the Security Value will equal or exceed the Required Security Amount.

    
      
        	8.3	
                Negative undertakings relating to the Borrower

              

      

    

    The Borrower undertakes with the Lender that, from the Execution Date until the end of the Facility Period, it will procure that, except with the prior written
      consent of the Lender (and such consent in respect of any change of name of the Vessel not to be unreasonably withheld), it will not:

    
      39

      
        

    

    

    

    
      
        	8.3.1	
                Negative pledge

              

      

    

    permit any Encumbrance (other than a Permitted Encumbrance) to subsist, arise or be created or extended over all or any part of its present or future
      undertakings, assets, rights or revenues to secure or prefer any present or future Indebtedness or other liability or obligation of any Group Member or any other person;

    
      
        	8.3.2	
                No merger or transfer

              

      

    

    merge or consolidate with any other person or permit any change to the legal or beneficial ownership of its shares from that existing at the Execution Date (and
      for the avoidance of doubt any change in the ownership of shares of and in the Corporate Guarantor occurring in the normal course of business shall not constitute a breach of this clause);

    
      
        	8.3.3	
                Disposals

              

      

    

    sell, transfer, assign, create security or option over, pledge, pool, abandon, lend or otherwise dispose of or cease to exercise direct control over any part of
      their present or future undertaking, assets, rights or revenues (otherwise than by transfers, sales or disposals for full consideration in the ordinary course of trading) whether by one or a series of transactions related or not;

    
      
        	8.3.4	
                Other business or manager

              

      

    

    undertake any type of business other than the ownership and operation of the Vessel or (without the prior consent of the Lender) employ anyone other than the
      Manager as commercial and technical manager of the Vessel;

    
      
        	8.3.5	
                Acquisitions

              

      

    

    acquire, any assets other than the Vessel and rights arising under contracts entered into by or on behalf of the Borrower in the ordinary course of its business
      of owning, operating and chartering the Vessel;

    
      
        	8.3.6	
                Other obligations

              

      

    

    incur, any obligations except for obligations arising under the Underlying Documents or the Security Documents or contracts entered into in the ordinary course of
      its business of owning, operating and chartering the Vessel;

    
      
        	8.3.7	
                No borrowing

              

      

    

    incur any Borrowed Money except for Borrowed Money pursuant to the Security Documents or incurred in the ordinary course of its business of owning, operating and
      chartering the Vessel;

    
      
        	8.3.8	
                Repayment of borrowings

              

      

    

    repay or prepay the principal of, or pay interest on or any other sum in connection with any of their Borrowed Money except for Borrowed Money pursuant to the
      Security Documents;

    
      40

      
        

    

    

    

    
      
        	8.3.9	
                Guarantees

              

      

    

    issue any guarantees or otherwise become directly or contingently liable for the obligations of any person, firm, or corporation except pursuant to the Security
      Documents and except for guarantees from time to time required in the ordinary course by any protection and indemnity or war risks association with which the Vessel is entered, guarantees required to procure the release of the Vessel from any arrest,
      detention, attachment or levy or guarantees required for the salvage of the Vessel;

    
      
        	8.3.10	
                Loans

              

      

    

    make any loans or grant any credit (save for normal trade credit in the ordinary course of business) to any person or agree to do so;

    
      
        	8.3.11	
                Sureties

              

      

    

    permit any Indebtedness of the Borrower to any person (other than to the Lender pursuant to the Security Documents) to be guaranteed by any person (except for
      guarantees from time to time required in the ordinary course by any protection and indemnity or war risks association with which the Vessel is entered, guarantees required to procure the release of the Vessel from any arrest, detention, attachment or
      levy or guarantees or undertakings required for the salvage of the Vessel); or

    
      
        	8.3.12	
                Flag, Class etc.

              

      

    

    permit:

    
      
        	

              	(a)	
                any change in the name or flag of the Vessel;

              

      

    

    
      
        	

              	(b)	
                any change of Classification or Classification Society in respect of the Vessel;

              

      

    

    
      
        	

              	(c)	
                any change of Manager in respect of the Vessel; or

              

      

    

    
      
        	

              	(d)	
                any change in the ownership (including ultimate beneficial ownership) or control of the Borrower from that existing as at the date hereof and shall procure that there is no change in the ownership (including
                  ultimate beneficial ownership) or control of the Manager (if other than the Corporate Guarantor) from that existing as at the date hereof (and for the avoidance of doubt any change in the ownership of shares of and in the Corporate
                  Guarantor occurring in the normal course of business shall not constitute a breach of this clause);

              

      

    

    
      
        	8.3.13	
                Underlying Documents

              

      

    

    terminate or materially amend or vary an Extended Employment Contract or a Management Agreement (and for the avoidance of doubt, material amendments include, but
      are not limited to, reductions of rate of hire, increase of management fees not already provided for in the Management Agreement and termination rights); or

    
      
        	8.3.14	
                Lay-up

              

      

    

    de-activate or lay up the Vessel; or

    
      41

      
        

    

    

    

    
      
        	8.3.15	
                Place of business

              

      

    

    own or operate and will procure that no Security Party shall own or operate a place of business situate in England or the United States of America (save that the
      Lender acknowledges and agrees that the Corporate Guarantor is listed as a public limited company on NASDAQ); or

    
      
        	8.3.16	
                Share capital and distribution

              

      

    

    declare or pay any dividends if an Event of Default has occurred and is continuing or would occur as a result of such declaration or payment or distribute any of
      its present or future assets, undertakings, rights or revenue;

    
      
        	8.3.17	
                Sharing of Earnings

              

      

    

    permit there to be any agreement or arrangement whereby the Earnings (as defined in the relevant Ship Security Documents) of the Vessel may be shared or pooled
      howsoever with any other person except for customary profit sharing arrangements under a charterparty;

    
      
        	8.3.18	
                Lawful use 

                

              

         

        

        permit the Vessel to be employed: 

      

    

    
      
        	

              	(i)	
                in any way or in any activity with a Restricted Person or in any Sanctions Restricted Jurisdiction or which is (i) unlawful under international law or the domestic laws of any relevant country or (ii) contrary
                  to any Sanctions;

              

      

    

    
      
        	

              	(ii)	
                to the best of its knowledge, in carrying illicit or prohibited goods;

              

      

    

    
      
        	

              	(iii)	
                in a way which may make the Vessel liable to be condemned by a prize court or destroyed, seized or confiscated;

              

      

    

    
      
        	

              	(iv)	
                in any part of the world where there are hostilities (whether war has been declared or not), unless such employment has been notified to, and approved by, the relevant insurers of the Vessel; or

              

      

    

    
      
        	

              	(v)	
                to the best of its knowledge, in carrying contraband goods,

              

      

    

    and the Borrower shall procure that the persons responsible for the operation of the Vessel shall take all necessary and proper precautions
      to ensure that this does not happen, including participation in industry or other voluntary schemes available to the Vessel and in which leading operators of ships operating under the same flag or engaged in similar trades generally participate at
      the relevant time;

    
      
        	8.3.19	
                FATCA

              

      

    

    become a FATCA FFI or a US Tax Obligor and shall procure that no Security Party shall do so.

    
      
        	9	
                CONDITIONS

              

      

    

    
      
        	9.1	
                Availability of the Loan

              

      

    

    
      42

      
        

    

    

    

    The obligation of the Lender to make available the Loan is conditional upon:

    
      
        	9.1.1	
                the Lender, or its authorised representative, having received, not later than two (2) Banking Days before the day on which the Drawdown Notice is given, the documents and evidence specified in Part 1 of schedule
                  2 in form and substance satisfactory to the Lender; and

              

      

    

    
      
        	9.1.2	
                the representations and warranties contained in clause 7 being then true and correct as if each was made with respect to the facts and circumstances existing at such time and the same being unaffected by the
                  drawdown of the Loan; and

              

      

    

    
      
        	9.1.3	
                no Default having occurred and being continuing and there being no Default which would result from the lending of the Loan.

              

      

    

    
      
        	9.2	
                Advance of the Loan

              

      

    

    The obligation of the Lender to make available the Loan is conditional upon the Lender, or its authorised representative, having received, on or prior to the
      Drawdown Date, the documents and evidence specified in Part 2 of schedule 2 in form and substance satisfactory to the Lender.

    
      
        	9.3	
                Waiver of conditions precedent

              

      

    

    The conditions specified in this clause 9 are inserted solely for the benefit of the Lender and may be waived by the Lender in whole or in part and with or
      without conditions.

    
      
        	9.4	
                Further conditions precedent

              

      

    

    Not later than five (5) Banking Days prior to the Drawdown Date the Lender may request and the Borrower must, not later than two (2) Banking Days prior to such
      date, deliver to the Lender (at the Borrower’s expense) on such request further favourable certificates and/or opinions as to any or all of the matters which are the subject of clauses 7, 8, 9 and 10.

    
      
        	10	
                EVENTS OF DEFAULT

              

      

    

    
      
        	10.1	
                Events

              

      

    

    Each of the following events shall constitute an Event of Default (whether such event shall occur voluntarily or involuntarily or by operation of law or
      regulation or in connection with any judgment, decree or order of any court or other authority or otherwise, howsoever):

    
      
        	10.1.1	
                Non-payment: any Security Party fails to pay any sum payable by it under any of the Security Documents to which it is a party at the time, in the currency and in the
                  manner stipulated in the Security Documents (and so that, for this purpose, sums payable (i) under clauses 3.1 and 4.1 shall be treated as having been paid at the stipulated time if (aa) received by the Lender within three (3) Banking
                  Days of the dates therein referred to and (bb) such delay in receipt is caused by administrative or other delays or errors within the banking system and (ii) on demand shall be treated as having been paid at the stipulated time if paid
                  within three (3) Banking Days of demand); or

              

      

    

    
      43

      
        

    

    

    

    
      
        	10.1.2	
                Breach of Insurance and certain other obligations: the Borrower or, as the context may require, the Manager or any other person fails to obtain and/or maintain the
                  Insurances (as defined in, and in accordance with the requirements of, the Ship Security Documents) for the Vessel or if any insurer in respect of such Insurances cancels the Insurances or disclaims liability by reason, in either case, of
                  mis-statement in any proposal for the Insurances or for any other failure or default on the part of the Borrower or any other person or the Borrower commits any breach of or omits to observe any of the obligations or undertakings
                  expressed to be assumed by it under clause 8 or clause 14; or

              

      

    

    
      
        	10.1.3	
                Breach of other obligations: any Security Party commits any breach of or omits to observe Documents (other than those referred to in clauses 10.1.1 and 10.1.2 above)
                  unless such breach or omission, in the opinion of the Lender is capable of remedy, in which case the same shall constitute an Event of Default if it has not been remedied within fifteen (15) days of the occurrence thereof; or

              

      

    

    
      
        	10.1.4	
                Misrepresentation: any representation or warranty made or deemed to be made or repeated by or in respect of any Security Party in or pursuant to any of the Security
                  Documents or in any notice, certificate or statement referred to in or delivered under any of the Security Documents is or proves to have been incorrect or misleading in any material respect; or

              

      

    

    
      
        	10.1.5	
                Cross-default: any Indebtedness of the Borrower or any Indebtedness of the Corporate Guarantor exceeding USD1,000,000 is not paid when due (subject to applicable grace
                  periods) or any Indebtedness of the Borrower or any Indebtedness of the Corporate Guarantor exceeding USD1,000,000 becomes (whether by declaration or automatically in accordance with the relevant agreement or instrument constituting the
                  same) due and payable prior to the date when it would otherwise have become due (unless as a result of the exercise by the Borrower or the Corporate Guarantor of a voluntary right of prepayment), or any creditor of the Borrower or the
                  Corporate Guarantor becomes entitled to declare any such Indebtedness due and payable or any facility or commitment available to the Borrower or the Corporate Guarantor relating to Indebtedness is withdrawn, suspended or cancelled by
                  reason of any default (however described) of the person concerned, and such Indebtedness of the Borrower or the Corporate Guarantor (as the case may be) is not paid within fourteen (14) Banking Days from the due date for payment; or

              

      

    

    
      
        	10.1.6	
                Execution: any uninsured judgment or order made against any Security Party is not stayed, appealed against or complied with within fifteen (15) days or a creditor
                  attaches or takes possession of, or a distress, execution, sequestration or other process is levied or enforced upon or sued out against, any of the undertakings, assets, rights or revenues of any Security Party and is not discharged
                  within twenty (20) days; or

              

      

    

    
      
        	10.1.7	
                Insolvency: any Security Party is unable or admits inability to pay its debts as they fall due; suspends making payments on any of its debts or announces an intention to
                  do so; becomes insolvent; or has negative net worth (taking into account contingent liabilities); or suffers the declaration of a moratorium in respect of any of its Indebtedness; or

              

      

    

    
      
        	10.1.8	
                Dissolution: any corporate action, Proceedings or other steps are taken to dissolve or wind-up any Security Party unless the Borrower can demonstrate to the satisfaction
                  of the Lender, by providing an opinion of leading counsel that such corporate action,

              

      

    

    
      44

      
        

    

    

    

    Proceedings or other steps are frivolous, vexatious or an abuse of the process of the court or an order is made or resolution passed for the
      dissolution or winding up of any Security Party or a notice is issued convening a meeting for such purpose; or

    
      
        	10.1.9	
                Administration: any petition is presented, notice given or other steps are taken anywhere to appoint an administrator of any Security Party or an administration order is
                  made in relation to any Security Party; or

              

      

    

    
      
        	10.1.10	
                Appointment of receivers and managers: any administrative or other receiver is appointed anywhere of any Security Party or any material part of its assets and/or
                  undertaking or any other steps are taken to enforce any Encumbrance over all or any substantial part of the assets of any Security Party; or

              

      

    

    
      	10.1.11	
              Compositions: any corporate action, legal proceedings or other procedures or steps are taken or negotiations commenced, by any Security Party or by any of its creditors
                with a view to the general readjustment or rescheduling of all or a substantial part of its Indebtedness or to proposing any kind of composition, compromise or arrangement involving such company and any of its creditors (excluding always
                negotiations with holders of preferred shares); or

            

    

    
      
        	10.1.12	
                Analogous proceedings: there occurs, in relation to any Security Party, in any country or territory in which any of them carries on business or to the jurisdiction of
                  whose courts any part of their assets is subject, any event which, in the reasonable opinion of the Lender, appears in that country or territory to correspond with, or have an effect equivalent or similar to, any of those mentioned in
                  clauses 10.1.6 to 10.1.11 (inclusive) or any Security Party otherwise becomes subject, in any such country or territory, to the operation of any law relating to insolvency, bankruptcy or liquidation; or

              

      

    

    
      
        	10.1.13	
                Cessation of business: any Security Party suspends or ceases or threatens to suspend or cease to carry on its business without the prior consent of the Tender; or

              

      

    

    
      
        	10.1.14	
                Seizure: all or a material part of the undertaking, assets, rights or revenues of, or shares or other ownership interests in, any Security Party are seized, nationalised,
                  expropriated or compulsorily acquired by or under the authority of any Government Entity and the same are not returned to the relevant Security Party within 45 days of such seizure, nationalisation, expropriation or compulsory
                  acquisition; or

              

      

    

    
      
        	10.1.15	
                Invalidity: any of the Security Documents shall at any time and for any reason become invalid or unenforceable or otherwise cease to remain in full force and effect, or
                  if the validity or enforceability of any of the Security Documents shall at any time and for any reason be contested by any Security Party which is a party thereto, or if any such Security Party shall deny that it has any, or any further,
                  liability thereunder; or

              

      

    

    
      
        	10.1.16	
                Unlawfulness: any Unlawfulness occurs or it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the covenants and obligations expressed to
                  be assumed by it in any of the Security Documents or for the Lender to exercise the rights or any of them vested in it under any of the Security Documents or otherwise; or

              

      

    

    
      
        	10.1.17	
                Repudiation: any Security Party repudiates any of the Security Documents or does or causes or permits to be done any act or thing evidencing an intention to repudiate any
                  of the Security Documents; or

              

      

    

    
      45

      
        

    

    
      
        	10.1.18	
                Encumbrances enforceable: any Encumbrance (other than Permitted Encumbrances) in respect of any of the property (or part thereof) which is the subject of any of the
                  Security Documents becomes enforceable; or

              

      

    

    
      
        	10.1.19	
                Arrest: the Vessel is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained in exercise or purported exercise of any possessory lien or other
                  claim or otherwise taken from the possession of the Borrower and the Borrower shall fail to procure the release of the Vessel within a period of fifteen (15) days thereafter; or

              

      

    

    
      
        	10.1.20	
                Registration: the registration of the Vessel under the laws and flag of the Flag State is cancelled or terminated without the prior written consent of the Lender; or

              

      

    

    
      
        	10.1.21	
                Unrest: the Flag State of the Vessel becomes involved in hostilities or civil war or there is a seizure of power in the Flag State by unconstitutional means unless the
                  Borrower shall have transferred the Vessel onto a new flag acceptable to the Lender within thirty (30) days of the Lender’s written request to the Borrower to effect such transfer; or

              

      

    

    
      
        	10.1.22	
                Environmental Incidents: an Environmental Incident occurs which gives rise, or may give rise, to an Environmental Claim which could, in the opinion of the Lender be
                  expected to have a Material Adverse Effect (i) on the financial condition of any Security Party or the Group taken as a whole or (ii) on the security constituted by any of the Security Documents or the enforceability of that security in
                  accordance with its terms; or

              

      

    

    
      
        	10.1.23	
                P&I: the Borrower or the Manager or any other person fails or omits to comply with any requirements of the protection and indemnity association or other insurer with
                  which the Vessel is entered for insurance or insured against protection and indemnity risks (including oil pollution risks) to the effect that any cover (including, without limitation, any cover in respect of liability for Environmental
                  Claims arising in jurisdictions where the Vessel operates or trades) is or may be liable to cancellation, qualification or exclusion at any time; or

              

      

    

    
      
        	10.1.24	
                Material events: any other event occurs or circumstance arises which, in the reasonable opinion of the Lender, is likely materially and adversely to affect either (i) the
                  ability of any Security Party to perform all or any of its obligations under or otherwise to comply with the terms of any of the Security Documents to which it is a party or (ii) the security created by any of the Security Documents or
                  (iii) the value or nature of the financial condition of any Security Party (other than the Manager); or

              

      

    

    
      
        	10.1.25	
                Required Authorisations: to the extent it has not been waived, any Required Authorisation is revoked or withheld or modified or is otherwise not granted or fails to
                  remain in full force and effect; or

              

      

    

    
      
        	10.1.26	
                Money Laundering: any Security Party is in breach of or fails to observe any law, requirement, measure or procedure implemented to combat “money laundering” as defined in
                  Article 1 of the Directive (91/308 EEC) of the Council of the European Communities; or

              

      

    

    
      
        	10.1.27	
                Management Agreement: a Management Agreement is terminated, revoked, suspended, rescinded, transferred, novated or otherwise ceases to remain in full force and effect for
                  any reason except with the prior consent of the Lender; or

              

      

    

    
      46

      
        

    

    
      
        	10.1.28	
                Change of Ownership: there is any change in the immediate and/or ultimate legal and/or beneficial ownership or control of any of the shares of the Borrower or the
                  Shareholder from that existing on the Execution Date (and for the avoidance of doubt any change in the ownership of shares of and in the Corporate Guarantor occurring in the normal course of business shall not constitute a breach of this
                  clause); or

              

      

    

    
      
        	10.1.29	
                Sanctions: A Security Party fails to comply with clauses 7.1.25 (Restricted Persons, unlawful activity), 7.1.26 (Sanctions) or 8.1.21 (Sanctions) of this Agreement.

              

      

    

    
      
        	10.2	
                Acceleration

              

      

    

    The Lender may at any time after the occurrence of an Event of Default, and only while the same is continuing and has not been remedied or
      waived, by notice to the Borrower declare that:

    
      
        	10.2.1	
                the obligation of the Lender to make its Commitment available shall be terminated, whereupon the Total Commitment shall be reduced to zero forthwith; and/or

              

      

    

    
      
        	10.2.2	
                the Loan and all interest accrued and all other sums payable whatsoever under the Security Documents have become due and payable, whereupon the same shall, immediately or in accordance with the terms of such
                  notice, become due and payable.

              

      

    

    
      
        	10.3	
                Demand Basis

              

      

    

    If, under clause 10.2.2, the Lender has declared the Loan to be due and payable on demand, at any
      time thereafter the Lender shall by written notice to the Borrower (a) demand repayment of the Loan on such date as may be specified whereupon, regardless of any other provision of this Agreement, the Loan shall become due and payable on the date so
      specified together with all interest accrued and all other sums payable under this Agreement or (b) withdraw such declaration with effect from the date specified in such notice.

    
      
        	11	
                INDEMNITIES

              

      

    

    
      
        	11.1	
                General indemnity

              

      

    

    The Borrower agrees to indemnify the Lender on demand, without prejudice to any of the Lender’s other rights under any of the Security
      Documents, against any loss (including loss of Margin) or expense (including, without limitation, Break Costs) which the Lender shall certify as sustained by it as a consequence of any Default, any prepayment of the Loan being made under clauses 4.3,
      4.4, 8.2.1(a) or 12.1 or any other repayment or prepayment of the Loan being made otherwise than on an Interest Payment Date relating to the part of the Loan prepaid or repaid; and/or the Loan not being made for any reason (excluding any default by
      the Lender) after the Drawdown Notice has been given.

    
      
        	11.2	
                Environmental indemnity

              

      

    

    The Borrower shall indemnify the Lender on demand and hold it harmless from and against all costs, claims, expenses, payments, charges,
      losses, demands, liabilities, actions, Proceedings, penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be incurred or made or asserted whensoever against the Lender at any time, whether before or
      after the repayment in full of

    
      47

      
        

    

    principal and interest under this Agreement, arising howsoever out of an Environmental Claim made or asserted against the Lender which would
      not have been, or been capable of being, made or asserted against the Lender had it not entered into any of the Security Documents or been involved in any of the resulting or associated transactions.

    
      
        	11.3	
                Capital adequacy and reserve requirements indemnity

              

      

    

    The Borrower shall promptly indemnify the Lender on demand against any cost incurred or loss suffered by the Lender as a result of its
      complying with (i) the minimum reserve requirements from time to time of the European Central Bank (ii) any capital adequacy directive of the European Union and/or (iii) any revised framework for international convergence of capital measurements and
      capital standards and/or any regulation imposed by any Government Entity in connection therewith, and/or in connection with maintaining required reserves with a relevant national central bank to the extent that such compliance or maintenance relates
      to the Commitment and/or the Loan or deposits obtained by it to fund the whole or part thereof and to the extent such cost or loss is not recoverable by the Lender under clause 12.2.

    
      
        	12	
                UNLAWFULNESS, INCREASED COSTS AND BAIL-IN

              

      

    

    
      
        	12.1	
                Unlawfulness

              

      

    

    If it is or becomes contrary to any law, directive or regulation for the Lender to contribute to the Loan or to maintain its Commitment or
      fund the Loan, the Lender shall promptly give notice to the Borrower whereupon (a) the Loan and Commitment shall be reduced to zero and (b) the Borrower shall be obliged to prepay the Loan either (i) forthwith or (ii) on a future specified date not
      being earlier than the latest date permitted by the relevant law, directive or regulation together with interest accrued to the date of prepayment and all other sums payable by the Borrower under this Agreement.

    Provided that if circumstances arise which would result in a notification under this clause 12.1 then, prior to giving such notice, the
      Lender shall use reasonable endeavours to transfer its obligations, liabilities and rights under this Agreement and the Security Documents to another office of the Lender not affected by the circumstances but the Lender shall not be under any
      obligation to take any such action if, in its opinion, to do would or might:

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	12.2	
                Increased costs

              

      

    

    If the result of any change in, or in the interpretation or application of, or the introduction of, any law or any regulation, request or
      requirement (whether or not having the force of law, but, if not having the force of law, with which the Lender or, as

    
      48

      
        

    

    the case may be, its holding company habitually complies), including (without limitation) those relating to Taxation, capital adequacy, liquidity, reserve assets, cash ratio deposits
      and special deposits, is to:

    
      
        	12.2.1	
                subject the Lender to Taxes or change the basis of Taxation of the Lender with respect to any payment under any of the Security Documents (other than Taxes or Taxation on the overall net income, profits or gains
                  of the Lender imposed in the jurisdiction in which its principal or lending office under this Agreement is located); and/or

              

      

    

    
      
        	12.2.2	
                increase the cost to, or impose an additional cost on, the Lender or its holding company in making or keeping the Commitment available or maintaining or funding all or part of the Loan; and/or

              

      

    

    
      
        	12.2.3	
                reduce the amount payable or the effective return to the Lender under any of the Security Documents; and/or

              

      

    

    
      
        	12.2.4	
                reduce the Lender’s or its holding company’s rate of return on its overall capital by reason of a change in the manner in which it is required to allocate capital resources to its obligations under any of the
                  Security Documents; and/or

              

      

    

    
      
        	12.2.5	
                require the Lender or its holding company to make a payment or forgo a return on or calculated by reference to any amount received or receivable by it under any of the Security Documents; and/or

              

      

    

    
      
        	12.2.6	
                require the Lender or its holding company to incur or sustain a loss (including a loss of future potential profits) by reason of being obliged to deduct all or part of the Commitment or the Loan from its capital
                  for regulatory purposes, then and in each such case (subject to clause 12.3);

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                the Borrower shall on demand made at any time whether or not the Loan has been repaid, pay to the Lender the amount which the Lender specifies (in a certificate setting forth the basis of the computation of such
                  amount but not including any matters which the Lender or its holding company regards as confidential) is required to compensate the Lender and/or (as the case may be) its holding company for such liability to Taxes, cost, reduction,
                  payment, forgone return or loss.

              

      

    

    For the purposes of this clause 12.2 “holding company” means the company or entity (if any) within the consolidated supervision of which the
      Lender is included.

    
      
        	12.3	
                Exception

              

      

    

    Nothing in clause 12. shall entitle the Lender to receive any amount in respect of compensation for any such liability to Taxes, increased or
      additional cost, reduction, payment, foregone return or loss to the extent that the same is the subject of an additional payment under clause 6.6.

    
      
        	12.4	
                Contractual recognition of bail-in

              

      

    

    
      49

      
        

    

    Notwithstanding any other term of any Security Document or any other agreement, arrangement or understanding between the parties to this
      Agreement, each such party acknowledges and accepts that any liability of any party to this Agreement to any other party to this Agreement under or in connection with the Security 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 Security Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability

              

      

    

    
      
        	13	
                APPLICATION OF MONEYS, SET OFF, PRO-RATA PAYMENTS AND MISCELLANEOUS

              

      

    

    
      
        	13.1	
                Application of moneys

              

      

    

    All moneys received by the Lender under or pursuant to any of the Security Documents and expressed to be applicable in accordance with the
      provisions of this clause 13.1 or in a manner determined in the Lender’s discretion, shall be applied in the following manner:

    
      
        	13.1.1	
                first, in or towards payment, in such order as the Lender may decide, of any unpaid costs and expenses of the Lender and the Lender under any of the Security Documents;

              

      

    

    
      
        	13.1.2	
                secondly, in or towards payment of any fees payable to the Lender under, or in relation to, the Security Documents which remain unpaid;

              

      

    

    
      
        	13.1.3	
                thirdly, in or towards payment to the Lender of any accrued default interest owing pursuant to clause 3.4 but remains unpaid;

              

      

    

    
      
        	13.1.4	
                fourthly, in or towards payment to the Lender of any accrued interest owing in respect of the Loan which shall have become due under any of the Security Documents but remains unpaid;

              

      

    

    
      
        	13.1.5	
                fifthly, in or towards payment to the Lender of any due but unpaid Repayment Instalments;

              

      

    

    
      
        	13.1.6	
                sixthly, in or towards payment to the Lender in application in repayment of the Loan in accordance with clause 4.6.2;

              

      

    

    
      
        	13.1.7	
                seventhly, in or towards payment for any loss suffered by reason of any such payment in respect of principal not being effected on an Interest Payment Date relating to the

              

      

    

    
      50

      
        

    

    part of the Loan repaid and which amounts are so payable under this Agreement and any other sum relating to the Loan which shall have become due under any of the Security Documents
      but remains unpaid; and

    
      
        	13.1.8	
                eighthly, the surplus (if any) shall be paid to the Borrower or to whomsoever else may then be entitled to receive such surplus.

              

      

    

    The order of application set out in clauses 13.1.1 to 13.1.8 may be varied by the Lender without any reference to, or consent or approval
      from, the Borrower.

    
      
        	13.2	
                Set-off

              

      

    

    
      
        	13.2.1	
                The Borrower irrevocably authorises the Lender (without prejudice to any of the Lender’s rights at law, in equity or otherwise), following the occurrence of an Event of Default which is continuing and without
                  notice to the Borrower, to apply any credit balance to which the Borrower is then entitled standing upon any account of the Borrower with any branch of the Lender in or towards satisfaction of any sum due and payable from the Borrower to
                  the Lender under any of the Security Documents. For this purpose, the Lender is authorised to purchase with the moneys standing to the credit of such account such other currencies as may be necessary to effect such application.

              

      

    

    
      
        	13.2.2	
                The Lender shall not be obliged to exercise any right given to it by this clause 13.2. The Lender shall notify the Borrower forthwith upon the exercise or purported exercise of any right of set off giving full
                  details in relation thereto.

              

      

    

    
      
        	13.2.3	
                Nothing in this clause 13.2 shall be effective to create a charge or other security interest.

              

      

    

    
      
        	13.3	
                Further assurance

              

      

    

    The Borrower undertakes with the Lender that the Security Documents shall both at the date of execution and delivery thereof and throughout
      the Facility Period be valid and binding obligations of the respective parties thereto which, with the rights of the Lender thereunder, are enforceable in accordance with their respective terms and that it will, at its expense, execute, sign,
      perfect. and do, and will procure the execution, signing, perfecting and doing by each of the other Security Parties of, any and every such further assurance, document, act or thing as in the reasonable opinion of the Lender may be necessary for
      perfecting the security contemplated or constituted by the Security Documents.

    
      
        	13.4	
                Conflicts

              

      

    

    In the event of any conflict between this Agreement and any of the other Security Documents, the provisions of this Agreement shall prevail.

    
      
        	13.5	
                No implied waivers, remedies cumulative

              

      

    

    No failure or delay on the part of the Lender to exercise any power, right or remedy under any of the Security Documents shall operate as a
      waiver thereof, nor shall any single or partial exercise by the Lender of any power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. The remedies provided in the Security Documents
      are cumulative and are not exclusive

    
      51

      
        

    

    of any remedies provided by law. No waiver by the Lender shall be effective unless it is in writing.

    
      
        	13.6	
                Severability

              

      

    

    If any provision of this Agreement is prohibited, invalid, illegal or unenforceable in any jurisdiction, such prohibition, invalidity,
      illegality or unenforceability shall not affect or impair howsoever the remaining provisions thereof or affect the validity, legality or enforceability of such provision in any other jurisdiction.

    
      
        	13.7	
                Force Majeure

              

      

    

    Regardless of any other provision of this Agreement, the Lender shall not be liable for any failure to perform the whole or any part of this
      Agreement resulting directly or indirectly from (i) the action or inaction or purported action of any governmental or local authority (ii) any strike, lockout, boycott or blockade (including any strike, lockout, boycott or blockade effected by or
      upon the Lender or any of its representatives or employees) (iii) any act of God (iv) any act of war (whether declared or not) or terrorism or (v) any other circumstances whatsoever outside the Lender’s control.

    
      
        	13.8	
                Amendments

              

      

    

    This Agreement may be amended or varied only by an instrument in writing executed by all parties hereto who irrevocably agree that the
      provisions of this clause 13.8 may not be waived or modified except by an instrument in writing to that effect signed by all of them.

    
      
        	13.9	
                Counterparts

              

      

    

    This Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute one and
      the same agreement which may be sufficiently evidenced by one counterpart.

    
      
        	13.10	
                English language

              

      

    

    All documents required to be delivered under and/or supplied whensoever in connection howsoever with any of the Security Documents and all
      notices, communications, information and other written material whatsoever given or provided in connection howsoever therewith must either be in the English language or accompanied, at the Lender’s request, by an English translation certified by a
      notary, lawyer or consulate acceptable to the Lender.

    
      
        	14	
                ACCOUNTS

              

      

    

    
      
        	14.1	
                General

              

      

    

    The Borrower undertakes with the Lender that it will ensure that:

    
      
        	14.1.1	
                it will on or before the Drawdown Date, open the Earnings Account in its name; and

              

      

    

    
      
        	14.1.2	
                all moneys payable to the Borrower in respect of the Earnings of the Vessel shall, unless and until the Lender directs to the contrary pursuant to the provisions of the Mortgage, be paid to the Earnings Account,
                  Provided however that if any of the moneys paid to

              

      

    

    
      52

      
        

    

    such Earnings Account are payable in a currency other than USD, they shall be paid to a sub-account of that Earnings Account denominated in such currency (except
      that if the Borrower fails to open such a sub-account, the Lender shall then convert such moneys into USD at the Lender’s spot rate of exchange at the relevant time for the purchase of USD with such currency and the term “spot rate of exchange” shall
      include any premium and costs of exchange payable in connection with the purchase of USD with such currency).

    
      
        	14.2	
                Earnings Account: withdrawals

              

      

    

    Any sums standing to the credit of the Earnings Account may be applied by the Borrower from time to time, subject to no Event of Default
      having occurred which is continuing unremedied and unwaived, in (i) making the payments required under this Agreement (ii) the supply, crewing, management, maintenance, repair, insurance, operation and trading of the Vessel and (iii) payment of
      dividends to their shareholders annually.

    
      
        	14.3	
                Application of accounts

              

      

    

    At any time after the occurrence of an Event of Default and while the same is continuing unwaived and unremedied, the Lender may, without
      prior notice to the Borrower apply all moneys then standing to the credit of the Earnings Account (together with interest from time to time accruing or accrued thereon) in or towards satisfaction of any sums due to Lender under the Security Documents
      at the time of such applications in the manner specified in clause 13.1. Following such application, the Lender shall give notice thereof to the Borrower.

    
      
        	15	
                ASSIGNMENT, TRANSFER AND LENDING OFFICE

              

      

    

    
      
        	15.1	
                Benefit and burden

              

      

    

    This Agreement shall be binding upon, and ensure for the benefit of, the Lender and the Borrower and their respective successors in title.

    
      
        	15.2	
                No assignment by Borrower

              

      

    

    The Borrower may not assign or transfer any of its rights or obligations under this Agreement.

    
      
        	15.3	
                Transfer by Lender

              

      

    

    The Lender may at any time (i) change its office through which the Loan is made available or (ii) cause all or any part of its rights,
      benefits and/or obligations under this Agreement and the other Security Documents to be transferred or assigned without the consent of the Borrower to a wholly-owned banking subsidiary or associated company of the Lender or to any third party (in
      either case a “Transferee Lender”) provided always that any such Transferee Lender, by delivery of such undertaking as the Lender may approve, becomes bound by the terms of this Agreement and agrees to
      perform all or, as the case may be, relevant part of the Lender’s obligations under this Agreement the rights and equities of the Borrower or of any other Security Party referred to above include, but are not
      limited to, any right of set-off and any other kind of cross-claim.

    
      
        	15.4	
                Documenting transfers

              

      

    

    
      53

      
        

    

    If the Lender assigns all or any part of its rights or transfers all or any part of its rights, benefits and/or obligations as provided in
      clause 15.3, the Borrower undertakes, immediately on being requested to do so by the Lender and at the cost of the Transferee Lender, to enter into, and procure that the other Security Parties shall (at the cost of the Transferee Lender) enter into,
      such documents as may be necessary or desirable to transfer to the Transferee Lender all or the relevant part of the Lender’s interest in the Security Documents and all relevant references in this Agreement to the Lender shall thereafter be construed
      as a reference to the Lender and/or its Transferee Lender (as the case may be) to the extent of their respective interests. For the avoidance of doubt there will be no expense for the Borrower in connection with an assignment or transfer, as provided
      in clauses 15.3 and 15.5.

    
      
        	15.5	
                Sub-Participation

              

      

    

    The Lender may sub-participate all or any part of its rights and/or obligations under the Security Documents at its own expense without the
      consent of, or notice to, the Borrower. Any such sub-participation shall have no effect on the Lender’s rights under the Security Documents and shall not affect the Borrower at all.

    
      
        	15.6	
                Disclosure of information

              

      

    

    The Lender may disclose to a prospective assignee, transferee or to any other person (a “Prospective
        Assignee”) who may propose entering into contractual relations with the Lender in relation to this Agreement such information about the Borrower and/or the other Security Parties as the Lender shall consider appropriate, but only if the
      Prospective assignee has first undertaken to the Borrower to keep secret and confidential and, not without the prior written consent of the Borrower, disclose to any third party, any of the information, reports or documents to be supplied by the
      Lender.

    
      
        	15.7	
                No additional costs

              

      

    

    If at the time of, or immediately after, any assignment or transfer by the Lender of all or any part of its rights or benefits or obligations
      under this Agreement, or any change in the office through which it lends for the purposes of this Agreement, the Borrower would be obliged to pay to the Lender or, as the case may be, the Transferee Lender under clause 3.5, 6.6 or clause 12.2 any sum
      in excess of the sum (if any) which it would have been obliged to pay to the Lender or the Transferor Lender, as the case may be, under the relevant clause in the absence of such assignment, transfer or change, the Borrower shall not be obliged to
      pay that excess.

    
      
        	16	
                NOTICES AND OTHER MATTERS

              

      

    

    
      
        	16.1	
                Notices

              

      

    

    
      
        	16.1.1	
                unless otherwise specifically provided herein, every notice under or in connection with this Agreement shall be given in English by letter delivered personally and/or sent by post and/or transmitted by fax
                  and/or electronically;

              

      

    

    
      
        	16.1.2	
                in this clause “notice” includes any demand, consent, authorisation, approval, instruction, certificate, request, waiver or other communication.

              

      

    

    
      
        	16.2	
                Addresses for communications, effective date of notices

              

      

    

    
      54

      
        

    

    

    

    
      
        	16.2.1	
                Subject to clause 16.2.2 and clause 16.2.5 notices to the Borrower shall be deemed to have been given and shall take effect when received in full legible form by the Borrower at the address and/or the fax number
                  appearing below (or at such other address or fax number as the Borrower may hereafter specify for such purpose to the Lender by notice in writing);

              

      

    

    
      
        	

              	Address:	
                c/o Euroseas Ltd.

              

      

    

    4 Messogiou & Evropis Street

      151 24 Maroussi

      Greece

    
      
        	

              	Fax:	
                +30 211 1804097

              

      

    

    
      
        	

              	Attn:	
                Anastasios Aslidis / George Kavalis

              

      

    

    
      
        	

              	Email:	
                aha@euroseas.gr / gik@euroseas.gr

              

      

    

    
      
        	16.2.2	
                notwithstanding the provisions of clause 16.2.1 or clause 16.2.5, a notice of Default and/or a notice given pursuant to clause 10.2 or clause 10.3 to the Borrower shall be deemed to have been given and shall
                  take effect when delivered, sent or transmitted by the Lender to the Borrower to the address or fax number referred to in clause 16.2.1;

              

      

    

    
      
        	16.2.3	
                subject to clause 16.2.5, notices to the Lender shall be deemed to be given, and shall take effect, when received in full legible form by the Lender at the address and/or the fax number appearing below (or at
                  any such other address or fax number as the Lender may hereafter specify for such purpose to the Borrower in writing);

              

      

    

    
      
        	

              	Address:	
                170 Alexandras Ave.

              

      

    

    11521 Athens

      Greece

    
      
        	

              	Fax No.	
                +30 210 3739783

              

      

    

    
      
        	

              	Attention:	
                Thanassis Doudoulas / Olga Voutsa

              

      

    

    
      
        	

              	Email:	
                DoudouiasA@piraeusbank.gr / VoutsaOlOpiraeusbank.gr

              

      

    

    
      
        	16.2.4	
                subject to clause 16.2.5, notices to the Lender shall be deemed to be given and shall take effect when received in full legible form by the Lender at its address and/or fax number specified in the definition of
                  “Lender” (or at any other address or fax number as the Lender may hereafter specify for such purpose); and

              

      

    

    
      
        	16.2.5	
                if under clause 16.2.1 or clause 16.2.3 a notice would be deemed to have been given and effective on a day which is not a working day in the place of receipt or is outside the normal business hours in the place
                  of receipt, the notice shall be deemed to have been given and to have taken effect at the opening of business on the next working day in such place.

              

      

    

    
      
        	16.3	
                Electronic Communication

              

      

    

    
      
        	16.3.1	
                Any communication to be made by and/or between the Lender and the Security Parties or any of them under or in connection with the Security Documents or any of them may be made by electronic mail or other
                  electronic means, if and provided that all such parties:

              

      

    

    
      55

      
        

    

    

    

    
      
        	

              	(a)	
                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

              

      

    

    
      
        	

              	(b)	
                notify each other of any change to their electronic mail address or any other such information supplied by them.

              

      

    

    
      
        	16.3.2	
                Any electronic communication made by and/or between the Lender and the Security Parties or any of them will be effective only when actually received in readable form.

              

      

    

    
      
        	17	
                GOVERNING LAW

              

      

    

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

    
      
        	18	
                JURISDICTION

              

      

    

    
      
        	18.1	
                Exclusive Jurisdiction

              

      

    

    For the benefit of the Lender, and subject to clause 18.4 below, the Borrower hereby irrevocably agrees that the courts of England shall have exclusive
      jurisdiction:

    
      
        	18.1.1	
                to settle any disputes or other matters whatsoever arising under or in connection with this Agreement or any non-contractual obligation arising out of or in connection with this Agreement and any disputes or
                  other such matters arising in connection with the negotiation, validity or enforceability of this Agreement or any part thereof, whether the alleged liability shall arise under the laws of England or under the laws of some other country
                  and regardless of whether a particular cause of action may successfully be brought in the English courts; and

              

      

    

    
      
        	18.1.2	
                to grant interim remedies or other provisional or protective relief.

              

      

    

    
      
        	18.2	
                Submission and service of process

              

      

    

    The Borrower accordingly irrevocably and unconditionally submits to the jurisdiction of the English courts. Without prejudice to any other mode of service the
      Borrower:

    
      
        	18.2.1	
                irrevocably empowers and appoints Messrs Hill Dickinson Services (London) Ltd at present of The Broadgate Tower, 20 Primrose Street, London EC2A 2EW, England, as its agent to receive and accept on its behalf any
                  process or other document relating to any proceedings before the English courts in connection with this Agreement;

              

      

    

    
      
        	18.2.2	
                agrees to maintain such an agent for service of process in England from the date hereof until the end of the Facility Period;

              

      

    

    
      
        	18.2.3	
                agrees that failure by a process agent to notify the Borrower of service of process will not invalidate the proceedings concerned;

              

      

    

    
      
        	18.2.4	
                without prejudice to the effectiveness of service of process on its agent under clause 18.2.1 above but as an alternative method, consents to the service of process relating to any such proceedings by mailing or
                  delivering a copy of the process to its address for the time being applying under clause 16.2; and

              

      

    

    
      56

      
        

    

    

    

    
      
        	18.2.5	
                agrees that if the appointment of any person mentioned in clause 18.2.1 ceases to be effective, the Borrower shall immediately appoint a further person in England to accept service of process on its behalf in
                  England and, failing such appointment within seven (7) days the Lender shall thereupon be entitled and is hereby irrevocably authorised by the Borrower in those circumstances to appoint such person by notice to the Borrower.

              

      

    

    
      
        	18.3	
                Forum non conveniens and enforcement abroad

              

      

    

    The Borrower:

    
      
        	18.3.1	
                waives any right and agrees not to apply to the English court or other court in any jurisdiction whatsoever to stay or strike out any proceedings commenced in England on the ground that England is an
                  inappropriate forum and/or that Proceedings have been or will be started in any other jurisdiction in connection with any dispute or related matter falling within clause 18.1; and

              

      

    

    
      
        	18.3.2	
                agrees that a judgment or order of an English court in a dispute or other matter falling within clause 18.1 shall be conclusive and binding on the Borrower and may be enforced against it in the courts of any
                  other jurisdiction.

              

      

    

    
      
        	18.4	
                Right of Lender, but not Borrower, to bring proceedings in any other jurisdiction

              

      

    

    
      
        	18.4.1	
                Nothing in this clause 18 limits the right of the Lender to bring Proceedings, including third party proceedings, against the Borrower, or to apply for interim remedies, in connection with this Agreement in any
                  other court and/or concurrently in more than one jurisdiction;

              

      

    

    
      
        	18.4.2	
                the obtaining by the Lender of judgment in one jurisdiction shall not prevent the Lender from bringing or continuing proceedings in any other jurisdiction, whether or not these shall be founded on the same cause
                  of action.

              

      

    

    
      
        	18.5	
                Enforceability despite invalidity of Agreement

              

      

    

    Without prejudice to the generality of clause 13.6, the jurisdiction agreement contained in this clause 18 shall be severable from the rest
      of this Agreement and shall remain valid, binding and in full force and shall continue to apply notwithstanding this Agreement or any part thereof being held to be avoided, rescinded, terminated, discharged, frustrated, invalid, unenforceable,
      illegal and/or otherwise of no effect for any reason.

    
      
        	18.6	
                Effect in relation to claims by and against non-parties

              

      

    

    
      
        	18.6.1	
                For the purpose of this clause “Foreign Proceedings” shall mean any Proceedings except proceedings brought or pursued in England arising out of or in connection with (i) or in any way related to any of the
                  Security Documents or any assets subject thereto or (ii) any action of any kind whatsoever taken by the Lender pursuant thereto or which would, if brought by the Borrower against the Lender, have been required to be brought in the English
                  courts;

              

      

    

    
      
        	18.6.2	
                the Borrower shall not bring or pursue any Foreign Proceedings against the Lender and the Borrower shall use its best endeavours to prevent persons not party to this Agreement from bringing or pursuing any
                  Foreign Proceedings against the Lender;

              

      

    

    
      57

      
        

    

    
      
        	18.6.3	
                If, for any reason whatsoever, any Security Party and/or any person connected howsoever with any Security Party (including but not limited to any shareholder of the Borrower) brings or pursues against the Lender
                  any Foreign Proceedings, the Borrower shall indemnify the Lender on demand in respect of any and all claims, losses, damages, demands, causes of action, liabilities, costs and expenses (including, but not limited to, legal costs) of
                  whatsoever nature howsoever arising from or in connection with such Foreign Proceedings which the Lender certifies as having been incurred by it;

              

      

    

    the Lender and the Borrower hereby agree and declare that the benefit of this clause 18 shall extend to and may be enforced by any officer, employee, agent or
      business associate of the Lender against whom the Borrower brings a claim in connection howsoever with any of the Security Documents or any assets subject thereto or any action of any kind whatsoever taken by, or on behalf of or for the purported
      benefit of the Lender pursuant thereto or which, if it were brought against the Lender, would fall within the material scope of clause 18.1. In those circumstances this clause 18 shall be read and construed as if references to the Lender were
      references to such officer, employee, agent or business associate, as the case may be.

    
      58

      
        

    

    

    

    Schedule 1

      Form of Drawdown Notice

    
      
        	To:	
                Piraeus Bank S.A.

                  170 Alexandras Ave.

                  11521 Athens Greece

              

      

    

    [•] 2019

    Dear Sirs

    
      
        	Re:	
                Facility agreement dated              July 2019 in respect of a loan of up to USD4,000,000 (the “Loan Agreement”) made between (1) Diamantis Shipowners Ltd as Borrower and (2) Piraeus Bank S.A. as Lender

              

      

    

    We refer to the Loan Agreement. Words and expressions whose meanings are defined therein shall have the same meanings when used herein.

    We hereby give you notice that we wish to draw the sum of USD[      ] on [date]        2019 and select a first Interest Period in respect
      of such drawing of [•] months. The funds should be credited to the account of [                       ] and numbered [                       ] with [                       ] of [                       ].

    We confirm that:

    
      
        	(a)	
                no Default has occurred and is continuing;

              

      

    

    
      
        	(b)	
                the representations and warranties contained in clause 7 of the Loan Agreement are true and correct at the date hereof as if made with respect to the facts and circumstances existing at such date;

              

      

    

    
      
        	(c)	
                the borrowing to be effected by the drawdown of the Loan will be within our corporate powers, has been validly authorised by appropriate corporate action and will not cause any limit on our borrowings (whether
                  imposed by statute, regulation, agreement or otherwise howsoever) to be exceeded;

              

      

    

    
      
        	(d)	
                there has been no material adverse change in our financial position or in the consolidated financial position of the Borrower or the Corporate Guarantor from that described by us to the Lender in the negotiation
                  of the Loan Agreement and/or in any documents or statements already delivered to the Lender in connection therewith;

              

      

    

    
      
        	(e)	
                there are no Required Authorisations;

              

      

    

    
      
        	(f)	
                there has occurred nothing which would have a Material Adverse Effect; and

              

      

    

    
      
        	(g)	
                no part of the proceeds of the Loan shall be used for the purpose of acquiring shares in the share capital of the Lender or other banks and/or financial institutions or acquiring hybrid capital debentures
                  (thAouc u(3Qt.bucv icepoulotimv) of the Lender or other banks and/or financial institutions.

              

      

    

    	
            By

          	 	 
	 	
            Authorised Signatory

          	 
	 	
            DIAMANTIS SHIPOWNERS LTD

          	 

    

    

    
      59

      
        

    

    

    

    Schedule 2

      Conditions precedent

    Part 1

    (referred to in clause 9.1)

    
      
        	(a)	
                Corporate documents

              

      

    

    Certified Copies of all documents which evidence or relate to the constitution of each Security Party and its current corporate existence;

    
      
        	(b)	
                Corporate authorities

              

      

    

    
      
        	

              	(i)	
                Certified Copies of resolutions of the directors of each Security Party and shareholders of the Borrower approving such of the MOA and the Security Documents to which such Security Party is a party and
                  authorising the execution and delivery thereof and performance of such Security Party’s obligations thereunder, additionally certified by an officer of such Security Party, as having been duly passed at a duly convened meeting of the
                  directors and shareholders of such Security Party and not having been amended, modified or revoked and being in full force and effect; and

              

      

    

    
      
        	

              	(ii)	
                an original of any power of attorney issued by each Security Party pursuant to such resolutions;

              

      

    

    
      
        	(c)	
                Required Authorisations

              

      

    

    a certificate (dated no earlier than 5 Banking Days prior to the Drawdown Date) that there are no Required Authorisations or that there are
      no Required Authorisations except those described in such certificate and Certified Copies of which as duly executed (including any conditions and/or documents ancillary thereto) are appended thereto;

    
      
        	(d)	
                Certificate of incumbency

              

      

    

    a list of directors, shareholders and officers of each Security Party specifying the names and positions of such persons, certified by an
      officer of the relevant Security Party to be true, complete and up to date;

    
      
        	(e)	
                Shareholders

              

      

    

    evidence acceptable to the Lender that all of the issued shares of and in the Borrower are issued in registered form and legally owned by the
      Shareholder and ultimately beneficially owned and controlled by the Corporate Guarantor;

    
      
        	(f)	
                Security Documents

              

      

    

    the Corporate Guarantee and the Shares Pledge duly executed and delivered, and all documents to be executed and delivered thereunder;

    
      
        	(g)	
                Declaration of compliance / “know your customer”

              

      

    

    
      60

      
        

    

    

    

    written confirmation (in a form acceptable to the Lender) that:

    
      
        	

              	(i)	
                the Borrower has complied at all times and in all respects with (i) any relevant employment legislation and employment regulations applicable to it, (ii) all documentation required by the Lender in relation to
                  the Lender’s “know your customer” requirements and (iii) all documentation required by the Lender for the opening of the Earnings Account with the Lender; and

              

      

    

    
      
        	

              	(ii)	
                the Guarantor and the Shareholder has complied at all times and in all respects with all documentation required by the Lender in relation to the Lender’s “know your customer” requirements; and

              

      

    

    
      
        	(h)	
                process agent

              

      

    

    a letter from the agent for receipt of service of proceedings referred to in clause 18.2.1 accepting its appointment under the said clause and under each of the
      other Security Documents in which it is or is to be appointed as the agent for any Security Party.

    Part 2

    
      
        	(a)	
                Approval of drawdown

              

      

    

    the approval of the competent authorities of Greece of the drawdown and application of the Loan in accordance with the applicable regulations of the Bank of
      Greece and legislation relating to capital controls and/or other economic measures imposed by the Government of Greece;

    
      
        	(b)	
                Copies of Underlying Documents

              

      

    

    a Certified Copy of the MOA, the Management Agreement, any Extended Employment Contract and all ISM Code Documentation for the Vessel;

    
      
        	(c)	
                Evidence satisfactory to the Lender that the Vessel:

              

      

    

    
      
        	

              	(i)	
                Purchase

              

      

    

    has been unconditionally delivered by the Seller to, and accepted by, the Borrower under the MOA, and all other amounts payable under the MOA (in addition to the
      part to be financed by the Loan) has been duly paid (and funded by the Borrower through equity contribution and/or common shares contribution provided exclusively by the Corporate Guarantor), together with copies of the bill of sale and protocol of
      delivery and acceptance relating thereto, certificate showing the Vessel as being free of encumbrance (other than the Mortgage) relating thereto;

    
      
        	

              	(ii)	
                Registration and Encumbrances

              

      

    

    is registered in the name of the Borrower through the Registry and that the Vessel, her Earnings, Insurances and Requisition Compensation are free of
      EncuinbranLes except Permitted Encumbrances (such evidence to include relevant certificates issued by the Flag State and results of searches carried out against the said Registry by the Lender or its lawyers);

    
      61

      
        

    

    

    

    
      
        	

              	(iii)	
                Classification

              

      

    

    maintains the Classification free of all overdue recommendations and requirements of the Classification Society affecting the Classification;

    
      
        	

              	(iv)	
                Insurance

              

      

    

    is insured in accordance with the provisions of the relevant Ship Security Documents and all requirements of such Ship Security Documents in respect of such
      insurance have been complied with (including without limitation, receipt by the Lender of customary brokers’ letters of undertaking regarding the placing of hull and machinery and war risks cover and confirmation from the protection and indemnity
      association or other insurer with which the Vessel is, or is to be, entered for insurance or insured against protection and indemnity risks, that any necessary declarations required by the association or insurer for the removal of any oil pollution
      exclusion have been made and that any such exclusion does not apply to the Vessel); and

    
      
        	

              	(v)	
                Management

              

      

    

    is managed by the Manager on terms in all material respects acceptable to the Lender;

    
      
        	

              	(vi)	
                Charter

              

      

    

    is employed under the time charterparty dated 25 January 2019 initially made between the Seller as owner and Mediterranean Shipping Co. S.A. of Switzerland as
      charterer of the Vessel, as amended by an Addendum No. 1 dated 29 April 2019;

    
      
        	(d)	
                Security Documents

              

      

    

    the Mortgage, the Earnings Account Pledge, the General Assignment and any Charter Assignment duly executed by the Borrower and the Manager’s Undertaking duly
      executed by the Manager;

    
      
        	(e)	
                Notices of assignment and acknowledgments

              

      

    

    counterpart originals of duly executed notices of assignment and acknowledgments (where relevant) required by the terms of the Security Documents referred to in
      (c) above in the forms prescribed by those Security Documents and any other documents required to be delivered pursuant thereto;

    
      
        	(f)	
                Mortgage registration

              

      

    

    evidence that the Mortgage has been duly registered against the Vessel in accordance with the laws of the Registry;

    
      
        	(g)	
                Bank accounts

              

      

    

    evidence that the Earnings Account has been opened by the Borrower and duly completed mandates in relation thereto have been delivered to the Lender;

    
      62

      
        

    

    

    

    
      
        	(h)	
                Laws of Marshall Islands: opinion

              

      

    

    an opinion of Messrs Ince, special legal advisers to the Lender on the laws of Marshal Islands;

    
      
        	(a)	
                Laws of Liberia: opinion

              

      

    

    an opinion of Messrs Ince, special legal advisers to the Lender on the laws of Liberia;

    
      
        	(i)	
                ISPS Code

              

      

    

    evidence satisfactory to the Lender that the Vessel is subject to a ship security plan which complies with the ISPS Code and a copy of the ISSC for the Vessel;

    
      
        	(j)	
                DOC and Application for SMC

              

      

    

    Certified Copies of the DOC, ISSC, (if applicable) IAPP and EIAPP Certificates in respect of the Vessel and a Certified Copy of the SMC therefor and evidence that
      the Vessel and the Manager are in compliance with the ISM Code;

    
      
        	(k)	
                Additional Vessel’s Certificates

              

      

    

    Certified Copies of Classification Certificate, Safety Radio Equipment Certificate, Safety Equipment Certificate, International Oil Pollution Certificate,
      International Loadline Certificate, Safety Construction Certificate, International Tonnage Certificate, Minimum Safety Manning Certificate and Continuous Synopsis Record for the Vessel;

    
      
        	(l)	
                Lightweight

              

      

    

    evidence satisfactory to the Lender of the Lightweight tonnage of the Vessel;

    
      
        	(m)	
                Scrap Value

              

      

    

    evidence satisfactory to the Lender of the Scrap Value of the Vessel;

    
      
        	(n)	
                Manager’s confirmation

              

      

    

    written confirmation addressed by the Manager to the Lender that the representations and warranties set out in clause 7.1.22 (Environmental Matters) and clause
      7.1.23 (ISM Code) are true and correct;

    
      
        	(o)	
                Insurance Report

              

      

    

    a written report from a maritime insurance consultant or broker acceptable to the Lender in a form and content acceptable to the Lender (at the cost of the
      Borrower) in respect of the insurances on the Vessel which report shall certify that such insurances are placed through or with insurance brokers and clubs, in amounts, covering risks and on terms acceptable to the Lender and that the same are in
      accordance with the terms of the Mortgage in respect of the Vessel;

    
      
        	(p)	
                Fees

              

      

    

    evidence that all fees due and payable have been paid in full;

    
      63

      
        

    

    

    

    
      
        	(q)	
                Material Adverse Effect

              

      

    

    the Lender is satisfied that there has occurred nothing which would have a Material Adverse Effect, including in respect of the Manager;

    
      
        	(r)	
                MIT and MAP Policy premium

              

      

    

    evidence that the Borrower has reimbursed the Lender in the amount of the first annual premium or, as the case may be, any additional premium for the MII and MAP
      Policy; and

    
      
        	(s)	
                Further conditions precedent

              

      

    

    such further evidence or opinions as may reasonably be required by the Lender.

    
      64

      
        

    

    

    

    Schedule 3

    Form of Compliance Certificate

    
      
        	To:	
                Piraeus Bank S.A.

              

      

    

    From: Euroseas Ltd.

    Date [          ] 200[ ]

    Dear Sirs

    Loan facility agreement dated [•] July 2019 (the “Loan Agreement”) for a loan of up to USD4,000,000 made between (1) Diamantis Shipowners Ltd as Borrower and (2)
      Piraeus Bank S.A. as Lender

    We refer to the Loan Agreement. Words and expressions whose meanings are defined in the Loan Agreement shall have the same meanings when used herein.

    We hereby confirm that [except as stated below] as at the date hereof to the best of our knowledge and belief after due inquiry:-

    
      
        	1.	
                all the Borrower’s financial covenants in the Loan Agreement set out in clause 8 are being fully complied with, and, in particular, by reference to the latest audited financial statements, management accounts
                  and all other current relevant information available to us:

              

      

    

    
      
        	

              	(a)	
                the Net Worth of the Group is USD [        ];

              

      

    

    
      
        	

              	(b)	
                the Total Liabilities are USD [        ] and the Total Assets (adjusted for market values of vessels calculated in accordance with clause 8.2.5(i)) are USD [        ]; and

              

      

    

    
      
        	

              	(c)	
                the Total Liabilities divided by the Total Assets (each net of cash balance) (adjusted for market values of vessels calculated in accordance with clause 8.2.5(i)) is [        ]%;

              

      

    

    
      
        	2.	
                no Default has occurred which is continuing;

              

      

    

    
      
        	3.	
                the representations set out in clause 7 of the Loan Agreement are true and accurate with reference to all facts and circumstances now existing and all Required Authorisations have been obtained and are in full
                  force and effect.

              

      

    

    [State any exceptions/qualifications to the above statements]

    Yours faithfully

    Euroseas Ltd.

    	
            By

          	 	 

    

    

    Chief Financial Officer: Euroseas Ltd.

    
      65

      
        

    

    Execution Page

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

  

  
    	
            SIGNED by STEFANIA KARMIRI

          	
            )

          	 
	
            attorney-in-fact for and on behalf of

          	
            )

          	 
	
            DIAMANTIS SHIPOWNERS LTD

          	
            )

          	 
	
            pursuant to a Power of Attorney

          	
            )

          	
            /s/ STEFANIA KARMIRI

          
	
            dated 15 July 2019

          	
            )

          	
            Attorney-in-fact

          

    

    

    	
            SIGNED by OLGA VOUTSA

          	
            )

          	

          	

          	

          
	
            and by EUGENIA KOUVARA

          	
            )

          	

          	

          	

          
	
            for and on behalf of

          	
            )

          	
            /s/ Olga Voutsa

          	

          	
            /s/ Eugenia Kouvara

          
	
            PIRAEUS BANK S.A.

          	
            )

          	
            Olga Voutsa

          	

          	
            Eugenia Kouvara

          
	 	 	
            Authorised signatories

          

    

    

    	
            Witness to all the above signatures

          	
            )

          	 
	
            Name:

          	
            VASILIKI TZOANNOU

          	
            )

          	 
	
            Address:

          	
            47-49 Akti Miaouli

          	
            )

          	
            /s/ VASILIKI TZOANNOU

          
	 	
            185 36 Piraeus

          	 	 
	 	
            Greece

          	 	 

  

  

  

  66Exhibit 4.19

  

   

  

  
    US$12,500,000 

    Secured Loan Agreement

    Dated  30 July  2019

    

    

    

    

    

    

    

    

    
      
        	(1)	
                Kea Shipowners Ltd

                  Spetses Shipowners Ltd

                  Hydra Shipowners Ltd

                  (as Borrowers)

              

      

    

    
      
        	(2)	
                HSBC Bank plc

                  (as Lender)

              

      

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        

    

    

    

    Contents

    	
            1

          	
            Definitions and Interpretation

          	 	
            2

          
	
            2

          	
            The Loan

          	 	
            21

          
	
            3

          	
            Purpose

          	 	
            21

          
	
            4

          	
            Conditions of Utilisation

          	 	
            21

          
	
            5

          	
            Advance

          	 	
            23

          
	
            6

          	
            Repayment

          	 	
            24

          
	
            7

          	
            Illegality, Prepayment and Cancellation

          	 	
            25

          
	
            8

          	
            Interest

          	 	
            28

          
	
            9

          	
            Interest Periods

          	 	
            28

          
	
            10

          	
            Changes to the Calculation of Interest

          	 	
            29

          
	
            11

          	
            Fees

          	 	
            30

          
	
            12

          	
            Tax Gross Up and Indemnities

          	 	
            31

          
	
            13

          	
            Increased Costs

          	 	
            37

          
	
            14

          	
            Other Indemnities

          	 	
            38

          
	
            15

          	
            Mitigation by the Lender

          	 	
            40

          
	
            16

          	
            Costs and Expenses

          	 	
            40

          
	
            17

          	
            Security Documents and Application of Moneys

          	 	
            42

          
	
            18

          	
            Representations

          	 	
            46

          
	
            19

          	
            Information Undertakings

          	 	
            52

          
	
            20

          	
            Financial Covenants

          	 	
            54

          
	
            21

          	
            General Undertakings

          	 	
            56

          
	
            22

          	
            Events of Default

          	 	
            62

          
	
            23

          	
            Changes to the Lender

          	 	
            68

          
	
            24

          	
            Changes to the Obligors

          	 	
            69

          
	
            25

          	
            Conduct of Business by the Lender

          	 	
            70

          
	
            26

          	
            Payment Mechanics

          	 	
            71

          
	
            27

          	
            Set-Off

          	 	
            75

          

    

    

    
      
        

    

    	
            28

          	
            Notices

          	
            75

          
	
            29

          	
            Calculations and Certificates

          	
            76

          
	
            30

          	
            Partial Invalidity

          	
             77

          
	
            31

          	
            Remedies and Waivers

          	
             77

          
	
            32

          	
            Confidentiality

          	
             77

          
	
            33

          	
            Counterparts

          	
             81

          
	
            34

          	
            Governing Law

          	
            82

          
	
            35

          	
            Enforcement

          	
            82

          
	
            Schedule 1

          	
            Part I Conditions Precedent

          	
            83

          
	
            Schedule 2

          	
            Utilisation Request

          	
            88

          
	
            Schedule 3

          	
            Form of Compliance Certificate

          	
             89

          

    
      
        

    

    
    Loan Agreement

    Dated  30 July 2019

    Between:

    
      
        	(1)	
                Kea Shipowners Ltd, a company incorporated under the law of
                  the Republic of Liberia, with its registered office at 80 Broad Street, Monrovia, Republic of Liberia and company number C-120948 (“Kea”);
                    Spetses Shipowners Ltd, a company incorporated under the law of the Republic of Liberia, with its registered office at 80 Broad Street, Monrovia, Republic of Liberia and company number C-120949 (“Spetses”) and Hydra Shipowners Ltd, a company
                  incorporated under the law of the Republic of Liberia, with its registered office at 80 Broad Street, Monrovia, Republic of Liberia and company number C-120950 (“Hydra” and, together with Kea and Spetses, the “Borrowers” and each a “Borrower”); and

              

      

    

    
      
        	(2)	
                HSBC BANK plc, of 8 Canada Square, London, E14 SHQ, England
                  (the “Lender”). Preliminary

              

      

    

    
      
        	(A)	
                Kea has agreed to purchase the Kea Vessel from the Kea Seller on the terms of the Kea MOA and intends to register the Kea Vessel in its ownership under the laws and
                  the flag of the Republic of Liberia.

              

      

    

    
      
        	(B)	
                Spetses has agreed to purchase the Spetses Vessel from the Spetses Seller on the terms of the Spetses MOA and intends to register the Spetses Vessel in its
                  ownership under the laws and the flag of the Republic of Liberia.

              

      

    

    
      
        	(C)	
                Hydra has agreed to purchase the Hydra Vessel from the Hydra Seller on the terms of the Hydra MOA and intends to register the Hydra Vessel in its ownership under
                  the laws and the flag of the Republic of Liberia.

              

      

    

    
      
        	(D)	
                The Lender has agreed to advance to the Borrowers on a joint and several basis up to the lesser of (a) $12,500,000 and (b) 49.9% of the aggregate Market Values of
                  the Vessels to assist the Borrowers to finance part of the purchase prices of the Vessels.

              

      

    

    It is agreed as follows:

    
      Page 1

      
        

    

    

    
      
        	Section 1	
                Interpretation

              

      

    

    
      
        	1	
                Definitions and Interpretation

              

      

    

    
      
        	1.1	
                Definitions In this Agreement:

              

      

    

    “Account Holder”
      means HSBC BANK plc of 8 Canada Square, London, E14 5HQ, England or any other branch of the Lender or any other bank or financial institution which at any time, with the Lender’s prior written consent, holds the Earnings Account.

    “Accounts”
      means the Earnings Accounts and the Cash Collateral Account and “Account” means any of them.

    “Account Security
        Deeds” means the account security deeds referred to In Clauses 17.1.5 and 17.1.6 (Security Documents).

    “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.

    “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
        Shipbroker” means each of Hartland Shipping Services Limited, H. Clarkson & Company Limited, Maersk Brokers K/S, Arrow Sale and Purchase (U.K.) Ltd., Fearnley AS, Simpson Spence & Young (SSY), Barry Rogliano Salles of France,
      Galbraith’s Limited Shipbrokers, Braemar Shipping Services PLC, Banchero-Costa & C. S.p.A, Associated Shipbroking S.A.M., Howe Robinson & Co Ltd., Maritime Strategies International (MSI), E.A. Gibson Shipbrokers Ltd., Oslo Shipbrokers A.S,
      Inge Steensland Shipbrokers AS and any other reputable, independent and first class firm of ship brokers appointed by a Borrower with the Lender’s prior approval.

    “Assignments” means
      all the forms of assignment referred to in Clause 17.1.2 (Security Documents).

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

    “Availability
        Period” means the period from and including the date of this Agreement to and including 31 August 2019 or any other later date
      acceptable to the Lender in its absolute discretion.

    “Basel III”
      means (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

    
      Page 2

      
        

    

    

    

    additional Doss absorbency requirement - Rules text” published by the Basel Committee on Banking Supervision in
      November 2011, (c) any further guidance or standards published by the Basel Committee on Banking Supervision relating to “Basel III” and (d) CRD IV or CRR.

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

    
      
        	

              	(a)	
                the interest which the Lender should have received Per the period from the date of receipt of all or tiny part of 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 the 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
                  in the Relevant Interbank Market 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 
      they (other than a Saturday or Sunday) on which banks are open for general business in London, New York and Athens.

    “Cash Collateral
        Account" means the bank account opened or to be opened in the name of the Borrowers with the Account Holder and designated “HSBC Bank Plc, Re: Kea Shipowners Ltd, Spetses Shipowners Ltd, Hydra Shipowners Ltd - Cash Collateral Account”.

    “Cash Collateral
        Amount” means the amounts set out under Clause 20.2 (Cash Collateral Amount).

    “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,

    “Chargor”
      means Eurocon Ltd. a company incorporated under the laws of the Republic of the Marshall islands, with its registered address at Trust Company Complex„ Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands.

    “Charter“
      means, in respect of a Vessel, any charter, or other contract for its employment of twelve (12) months or more duration (including any extension options), whether or not already in existence, entered or to be entered into from time to time between
      the relevant Borrower, as owner of the relevant Vessel and a Charterer, as charterer of the relevant Vessel,” as approved by the Lender.

    “Charterer" means,
      in respect of a Vessel, any person who enters into any Charter with the relevant Borrower.

    “Charter Rights”
      means the benefit of any Charter and any and all Earnings due and/or to become, due to a Borrower under or pursuant to any Charter.

    “Code” means
      the US Internal Revenue Code of 1986.

    
      Page 3

      
        

    

    

    “Commitment Fee”
      means the commitment fee to be paid by the Borrowers to the Lender under Clause 11.1 (Commitment Fee).

    “Compliance
        Certificate” means a certificate substantially in the form set out in Schedule 3 (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 the Lender becomes aware in its capacity as, or for the purpose of becoming, the Lender which is received
      by the Lender in relation to, or for the purpose of becoming the Lender under, the Finance Documents or the Loan 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 the Lender of Clause 32 (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 the Lender before the date the information is disclosed to it by any Obligor, any other member of the Group or any of its advisers or is lawfully
                  obtained by the Lender after that date, from a source which is, as far as the Lender is aware, unconnected with any Obligor or any other member of the Group and which, in either case, as far as the Lender 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.

    “CRD IV”
      means Directive 2013/36/EU 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 Directive 2006/48/EC and 2006/49/EC.

    “CRR” means
      Regulation (EU) no. 575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No. 648/2012.

    “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.

    “Delegate”
      means any delegate, agent or attorney or co-trustee appointed by the Lender as holder of any of the Security Documents.

    “Disruption Event”
      means either or both of:

    
      Page 4

      
        

    

    
      
        	

              	(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

              

      

    

    
      
        	

              	(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 Finanog Documents,

              

      

    

    and which (in either such case) is not caused by, and is beyond the contrail 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, pool income and other sums payable to or for the account of a Borrower 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, together, the Kea Earnings Account, the Spetses Earnings Account and the Hydra Earnings Account and “Earnings Account” means either of them.

    “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 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 oat 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.

    
      Page 5

      
        

    

    “Environmental
        Incident” means:

    
      
        	

              	(a)	
                any release, emission, spill or discharge into a Vessel or 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/or a Vessel and/or any Obligor and/or any operator or manager of a Vessel 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 and/or where any Obligor and/or any operator or manager of a Vessel 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 and includes 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.

    “Event of Default”
      means any event or circumstance specified as such in Clause 22 (Events of Default).

    “Facility Office’
      means the Lender’s office at 8 Canada Square, London E14 5HQ, England or such other office as the Lender may designate in writing.

    “Facility Period”
      means the period beginning on the date of this Agreement and ending on the date on which the Lender is satisfied that there is no outstanding amount under the Loan in force and that the Indebtedness has been irrevocably and unconditionally paid and
      discharged in full.

    “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,

              

      

    

    
      Page 6

      
        

    

    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 government& 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.

    “FCPA,”
      means the US Foreign Corrupt Practices Act of 1977.

    “Finance Documents”
      means this Agreement„ the Security Documents and any other document designated as such by the Lender and the Borrowers and “Finance Documents”
      means any one of them.

    “Financial
        Indebtedness” means any, indebtedness for or in respect of:

    
      
        	

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

              

      

    

    
      
        	

              	(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 finance or capital lease;

              

      

    

    
      
        	

              	(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 dose-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 which liability would fall within one of the other sections of this definition or (ii) any liabilities of any Obligor 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 Termination Date 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 Page 7

              

      

    

    
      Page 7

      
        

    

    

    

    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 thirty (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 (a) to (j).

              

      

    

    “GAAP” means
      generally accepted accounting principles in the United States of America.

    “Group”
      means the Borrowers, the Guarantor and each company which is a Subsidiary of the Guarantor from time to time.

    “Guarantee” means
      the guarantee and indemnity of the Guarantor referred to in Clause 17.1.3 (Security Documents).

    “Guarantor”
      means Euroseas Ltd., a company incorporated under the laws of the Republic of the Marshall Islands, with its registered address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands and/or (where the context permits) any
      other person who shall at any time during the Facility Period issue to the Lender a guarantee and/or indemnity for the payment of all or part of the Indebtedness.

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

    “Hydra Earnings
        Account” means the bank account opened in the name of Hydra with the Account Holder and designated “HSBC Bank plc - Hydra Shipowners Ltd”.

    “Hydra MOA”
      means the memorandum of agreement dated 31 May 2019 made by and between the Hydra Seller, as seller and Hydra, as buyer, on the terms and subject
      to the conditions of which the Hydra Seller will sell the Hydra Vessel to Hydra.

    “Hydra Seller”
        means Hydra Seaways Ltd, a company incorporated under the law of the Republic of Liberia, with its registered office at 80 Broad
      Street, Monrovia, Republic of Liberia.

    “Hydra Vessel” means
      the containership of approximately 23,679 dwt “EM HYDRA” with IMO no. 9338967 built in 2005 in the People’s Republic of China currently registered under the flag of the Republic of Liberia in the ownership of the Hydra Seller and intended to be sold
      by the Hydra Seller to Hydra on the terms of the Hydra MOA, and to remain upon acquisition by Hydra under the flag of the Republic of Liberia in the ownership of Hydra and everything now or in the future belonging to her on board and ashore.

    “Hydra Vessel Loan”
      means, in respect of Hydra Vessel, an amount not exceeding the relevant Maximum Vessel Loan Amount, advanced or to be advanced by the

    
      Page 8

      
        

    

    

    

    Lender to the Borrowers under Clause 2 (the Loan) or, where the context permits, the aggregate principal amount so advanced and for the time being outstanding.

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

    “Increased Costs” have
      the meaning given to them in Clause 13.1 (Increased Costs).

    “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 the Lender under all
      or any of the Finance Documents.

    “Initial Market
        Value” means the Market Value of a Vessel calculated in accordance with the valuation relative thereto referred to in Part I 2 (e) of Schedule 1 (Conditions Precedent).

    “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 and (where
      the context permits) all benefits under such contracts and policies, including all claims of any nature and returns of premium.

    “Interest Payment
        Date” means each date for the payment of interest in accordance with Clause 8.2 (Payment of interest).

    “Interest Period” means
      each period determined in accordance with Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance
      with Clause 8.3 (Default interest).

    “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.

    “Kea Earnings
        Account” means the bank account opened in the name of Kea with the Account Holder and designated “HSBC Bank plc -Kea Shipowners Ltd”.

    “Kea MOA” means the
      memorandum of agreement dated 31 May 2019 made by and between the Kea Seller, as seller and Kea, as buyer, on the terms and subject to the conditions of which the Kea Seller will sell the Kea Vessel to Kea.

    
      Page 9

      
        

    

    

    

    “Kea Seller”
      means Kea Seaways Ltd, a company incorporated under the law of the Republic of Liberia, with its registered office at 80 Broad Street, Monrovia, Republic of Liberia.

    “Kea Vessel”
      means the containership of approximately 42,166 dwt “EM KEA” with IMO no. 9334351 built in 2007 in the Republic of Poland currently registered under the flag of the Republic of Liberia in the ownership of the Kea Seller and intended to be sold by the
      Kea Seller to Kea on the terms of the Kea MOA, and to remain upon acquisition by Kea under the flag of the Republic of Liberia in the ownership of Kea and everything now or in the future belonging to her on board and ashore.

    “Kea Vessel Loan”
      means, in respect of Kea Vessel, an amount not exceeding the relevant Maximum Vessel Loan Amount, advanced or to be advanced by the Lender to the Borrowers under Clause 2 (the Loan) or, where the context permits, the aggregate principal amount so advanced and for the time being outstanding.

    “Legal Opinion”
      means any legal opinion delivered to HSBC Bank plc under Clause 4.1 (Initial conditions precedent) or Clause 4.3 (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 any other matters which are set out as qualifications or reservations as to
                  matters of law of genera/ application in the Legal Opinions.

              

      

    

    “LIBOR”
      means:

    
      
        	

              	(a)	
                the applicable Screen Rate; or

              

      

    

    
      
        	

              	(b)	
                (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) 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.

    
      Page 10

      
        

    

    “Loan” means
      the aggregate amount advanced or to be advanced by the Lender to the Borrowers under Clause 2 (The Loan) or, where the context permits, the
      principal amount advanced and for the time being outstanding.

    “Management
        Agreements” means the agreement for the commercial and technical management of a Vessel made between the relevant Borrower and the Managers and “Management Agreement” means any one of them.

    “Managers”
      means, in relation to the commercial and technical management of a Vessel, Eurobulk Ltd. of 80 Broad Street Monrovia, Republic of Liberia or, in either case, such other commercial and/or technical managers of a Vessel nominated by the relevant
      Borrower as the Lender may approve.

    “Managers’ Undertaking” means the written undertaking of the Managers whereby, throughout the Facility Period unless otherwise agreed by the Lender:

    
      
        	

              	(a)	
                it will remain the commercial or technical manager of that Vessel (as the case may be); and

              

      

    

    
      
        	

              	(b)	
                it will not, without the prior written consent of the Lender, subcontract or delegate the commercial or technical management of that Vessel (as the case may be) to
                  any third party; and

              

      

    

    
      
        	

              	(c)	
                the interests of the Managers in the Insurances (other than the right to be reimbursed for protection and indemnity claims under the “pay and be paid” rule) will be
                  assigned to the Lender with first priority; and

              

      

    

    
      
        	

              	(d)	
                (following the occurrence of an Event of Default which is continuing) all claims of the Managers against a Borrower shall be subordinated to the claims of the
                  Lender under the Finance Documents.

              

      

    

    “Margin”
      means two point ninety five (2.95) per cent per annum.

    “Market Value”
      means the value of a Vessel conclusively determined by the arithmetic average of two valuations (and in the case of the Initial Market Value determination shown by one valuation) obtained by two Approved Shipbrokers (and in the case of the Initial
      Market Value determination obtained by one Approved Shipbroker) selected and appointed by the relevant Borrower for and on behalf of the Lender and approved by and reporting to the Lender on the basis of a charter free sale for prompt delivery and
      free of encumbrances for cash at arm’s length on normal commercial terms as between a willing seller and a willing buyer and evidenced by two valuations (and in the case of the Initial Market Value determination evidenced by one valuation) of that
      Vessel addressed to the Lender certifying a value for that Vessel.

    “Material Adverse
        Effect” means a material adverse change of circumstances or any event or series of events which, in the reasonable opinion of the Lender, is likely to have a material adverse effect on the business, assets, financial condition or credit
      worthiness of an Obligor (other than the Managers) or an Obligor’s ability (other than the Managers) to repay the Loan.

    “Maximum Loan
        Amount” means an amount up to $12,500,000.

    
      Page 11

      
        

    

    "Maximum Vessel
        Loan Amount" means:

    
      
        	

              	(a)	
                in respect of the Kea Vesscl Loan, an amocirit up to the lesser of (i) $4,900,10100 and (li) 49.9% of the Market lilalue of Keg Vessell as evidenced by a Valuation
                  of that Vessel to be obtained pursuant to Schedule 1 Part I 2(f);

              

      

    

    
      
        	

              	(b)	
                in respect of the Spetses Vessel Loan, an amount up to the lesser of (i) 4,100,000 and 00 49.9% of the Market Value of Spetses Vessel as evidenced by a Vaination of
                  that Vessel to be obtained pursuant to Schedule 1 Part I 2 (f); and

              

      

    

    
      
        	

              	(c)	
                In respect of Hydra Veessel Loan, an amount up to the lesser of (i) $3,5002000 and (ii) 49.9% of the Market Value of Hydra Vessel as evidenced by a valuation of that Vessel to be obtained pursuant to Schedule
                  Part I 2 (f).

              

      

    

    "MOAs” means
      together„ the Kea Mak, the Spetses MOA and the Hydra MOA and "MOA” means either of them.

    “Mortgages”
      means the first preferred mortagages referred to in Clause 17.1.1 (Security Documents) and “Mortgage” means any one or them.

    “Nominated Family”
      means the family disclosed in writing and approved by tie Lender prior to the date of this Agreement and "members of the Nominated Family” shall
      be construed accordingly.

    "Obligors" 
      means the Borrowers, the Guarantor, the Charidor the Managers and any other person who rnay at any time during the Facility Period be liabie for, or provide security for, all or any part of the Indebtedness, and “Obligors“ means any one of hem.

    "Original Financial
        Statements” means the audited consolidated financial statements of the Guarantor for the financial year ended 31 December 201 (including profit and loss accounts and annual balance sheets).

    "Original
        Jurisdiction” means, in relation to an Obligor, the jurisdiction under whose laws that Obligor is incorporated as at the date of this Agreement.

    “Party”
      means a party to this Agreement.

    “Permitted
        Encumbrance” means:

    
      
        	

              	(a)	
                any Encumbrance created by the Finance Documents;

              

      

    

    
      
        	

              	(b)	
                any netting or set-off arrangement entered into by any Obligor in the ordinary course of its banking arrangements for the purpose of netting debit and credit
                  balances;

              

      

    

    
      
        	

              	(c)	
                liens for unpaid master’s and crew’s wages in accordance with first class ship ownership and management practice and not being enforced through arrest;

              

      

    

    
      
        	

              	(d)	
                liens for salvage;

              

      

    

    
      Page 12

      
        

    

    

    

    
      
        	

              	(e)	
                liens for master’s disbursements incurred in the ordinary course of trading in accordance with first class ship ownership and management practice and not being
                  enforced through arrest; and

              

      

    

    
      
        	

              	(f)	
                any other lien arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of a Vessel:

              

      

    

    
      
        	

              	(I)	
                not as a result of any default or omission by a Borrower; and

              

      

    

    
      
        	

              	(ii)	
                not being enforced through arrest, provided such liens do not secure amounts more than 30 days overdue (unless the overdue amount is being contested
                  in good faith by appropriate steps).

              

      

    

    “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 21.9 (Negative pledge).

    “Quotation Day”
      means, in relation to any period for which an interest rate is to be determined (for dollars) two (2) Business Days before the first day of that period, unless market practice differs in the Relevant Interbank Market, in which case the Quotation Day
      will be determined by the Lender in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank 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 Lender at its request by the Reference Banks, in relation to LIBOR, as the rate at which the relevant Reference Bank could borrow funds
      in the London interbank market in dollars and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in dollars and for that period.

    “Reference Banks”
      means in relation to LIBOR, such banks as may be appointed by the Lender in consultation with the Borrowers.

    “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 MOAs, the Charters and the Management Agreements.

    “Relevant Interbank
        Market” means the London interbank market.

    “Relevant
        jurisdiction” means, in relation to an Obligor:

    
      Page 13

      
        

    

    

    

    
      
        	

              	(a)	
                its Original Jurisdiction;

              

      

    

    
      
        	

              	(b)	
                any jurisdiction where any asset (other than a Vessel) subject to or intended to be subject to a Security Document to be executed by it is situated and, in relation
                  to a Vessel, the flag of that Vessel;

              

      

    

    
      
        	

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

              

      

    

    the jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it.

    “Repayment Date”
      means the date for payment of any Repayment Instalment in accordance with Clause 6 (Repayment).

    “Repayment
        Instalment” means any instalment of the Loan to be repaid by the Borrowers under Clause 6 (Repayment).

    “Repeating
        Representations” means each of the representations set out in Clause 18.1.1 (Status) to Clause 18.1.6 (Governing law and enforcement), Clause 18.1.10 (No default) to
      Clause 18.1.19 (Pari passu ranking) and Clause 18.1.21 (Ownership of a Borrower and Chargor).

    “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).

    “Sanctions”
      means any sanctions, embargoes, freezing provisions, prohibitions or other restrictions relating to trading, doing business, investment, exporting, financing or making assets available (or other activities similar to or connected with any of the
      foregoing):

    
      
        	

              	(a)	
                imposed by any law or regulation of the US Department of the Treasury’s Office of Foreign Assets Control, the US Department of State , the United Nations Security
                  Council, the European Union, Her Majesty’s Treasury or the Hong Kong Monetary Authority, whether or not any Obligor or any other member of the Group or any Affiliate is legally bound to comply with the Forgoing; or

              

      

    

    
      
        	

              	(b)	
                otherwise imposed by any law or regulation by which any Obligor, any other member of the Group or any Affiliate of any of them is bound or, as regards a regulation,
                  compliance with which is reasonable in the ordinary course of business of any Obligor, any other member of the Group or any Affiliate of any of them.

              

      

    

    “Sellers”
      means, together, the Kea Seller, the Spetses Seller and the Hydra Seller and “Seller” means any of them.

    “Screen Rate”
      means, in relation to LIBOR, the London interbank offered rate administered by ICE Benchmark Administration Limited (or any other person which

    
      Page 14

      
        

    

    takes over the administration of that rate) for the relevant currency and period displayed on pages LIBOR01 or
      LIBOR02 of the Reuters screen (or any replacement Reuters page which displays that rate), in each case, or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters. If such page or the
      service ceases to be available, the Lender may specify another page or service displaying the relevant rate after consultation with the Borrowers.

    “Secured Parties” means
      the Lender and any Receiver or Delegate.

    “Security Cover
        Ratio” means, at any relevant time, the aggregate of (a) the Market Values of the Vessels, (b) the Cash Collateral Amount and (c) the net realisable value of any additional security provided at that time under Clause 17.14 (Additional security), expressed as a percentage of the Loan.

    “Security
        Documents” means the Mortgages, the Assignments, the Guarantee, the Account Security Deeds, the Shares Charges and the Managers’ Undertakings 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 and “Security Document” means any
      one of them.

    “Shares Charges” means
      the charges of the issued share capital of each Borrower referred to in Clause 17.1.4 (Security Documents).

    “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.

    “Spetses Earnings
        Account” means the bank account opened in the name of Spetses with the Account Holder and designated “HSBC Bank plc - Spetses Shipowners Ltd”.

    “Spetses MOA” means
      the memorandum of agreement dated 31 May 2019 made by and between the Spetses Seller, as seller and Spetses, as buyer, on the terms and subject to the conditions of which the Spetses Seller will sell the Spetses Vessel to Spetses.

    “Spetses Seller” means
      Spetses Seaways Ltd, a company incorporated under the law of the Republic of Liberia, with its registered office at 80 Broad Street, Monrovia, Republic of Liberia.

    “Spetses Vessel” means
      the containership of approximately 23,579 dwt “EM SPETSES” with IMO no. 9403413 built in 2007 in the People’s Republic of China currently registered under the flag of the Republic of Liberia in the ownership of the Spetses Seller and intended to be
      sold by the relevant Seller to Spetses on the terms of the Spetses MOA, and to remain upon acquisition by Spetses under the flag of the Republic of Liberia in the ownership of Spetses and everything now or in the future belonging to her on board and
      ashore.

    “Spetses Vessel
        Loan” means, in respect of Spetses Vessel, an amount not exceeding the relevant Maximum Vessel Loan Amount, advanced or to be advanced by the Lender to the Borrowers under Clause 2 (the Loan) or, where the context

    
      Page 15

      
        

    

    permits, the aggregate principal amount so advanced and for the time being outstanding.

    “Subsidiary”
      means a subsidiary within the meaning of section 1159 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).

    “Tax Deduction”
      has the meaning given to it in Clause 12 (Tax Gross-Up and Indemnities).

    “Termination Date”
      means the date falling 42 months from the Utilisation Date in respect of the last Vessel Loan to be drawn.

    “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 (b)), unless a Vessel
                  is released and returned to the possession of the relevant Borrower within 60 days after the capture, seizure, arrest, detention, hijacking, theft, condemnation as prize, confiscation or forfeiture in question.

              

      

    

    “Treasury
        Transaction” means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price.

    “UK Bribery Act”
      means the United Kingdom Bribery Act 2010.

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

    “US” means
      the United States of America.

    “US Tax Obligor”
      means:

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                an Obligor some or all of whose payments under the Finance Documents are from sources within the US for US federal income tax purposes.

              

      

    

    “Utilisation Date”
      means the date on which the relevant Vessel Loan is advanced under Clause 5 (Advance).

    “Utilisation
        Request” means a notice substantially in the form set out in Schedule 2 (Utilisation Request).

    “VAT” means:

    
      Page 16

      
        

    

    
      
        	

              	(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
                  (a), or imposed elsewhere.

              

      

    

    “Vessel Loans"
      means the aggregate of Kea Vessel Loan, Spetses Vessel Loan and Hydra Vessel Loan and “Vessel Loans” means any of them.

    “Vessels”
      means, together, the Kea Vessel, the Spetses Vessel and the Hydra Vessel and “Vessel" means either of them.

    “VTL Coverage”
      has the meaning given to it in Clause 17.14 (Additional security).

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

              

      

    

    
      
        	

              	1.2.1	
                the “Lender”, any “Borrower”, any “Secured Party” or any “Party” shall be
                  construed so as to include its successors in title permitted assignees and permitted transferees;

              

      

    

    
      
        	

              	1.2.2	
                a document in “agreed form" is a document which is
                  previously agreed in writing by or on behalf of the Borrowers and the Lender  or, if not so agreed, is in the form specified by the Lender;

              

      

    

    
      
        	

              	1.2.3	
                “assets” includes present and future properties, revenues
                  and rights of every description;

              

      

    

    
      
        	

              	1.2.4	
                a “Finance Document”, a “Security Document”, a “Relevant Document” or any other document is a reference to that Finance Document, Security Document, Relevant Document or other document as amended, novated,
                  supplemented, extended or restated from time to time;

              

      

    

    
      
        	

              	1.2.5	
                “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;

              

      

    

    
      
        	

              	1.2.6	
                a "person includes any individual, firm, company,
                  corporation„ government state or agency of a state or any association, trust, joint venture, consortium or partnership or other entity (whether or not having separate legal personality);

              

      

    

    
      
        	

              	1.2.7	
                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;

              

      

    

    
      
        	

              	1.2.8	
                a provision of law, is a reference to that provision as amended or re-enacted from time to time; and

              

      

    

    
      
        	

              	1.29	
                a time of day (unless otherwise specified) is a reference to London time.

              

      

    

    
      Page 17

      
        

    

    
      
        	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.

              

      

    

    
      
        	1.5	
                Default A Default (and/or an Event of Default) is
                  “continuing” if it has not been remedied or 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 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.

              

      

    

    
      
        	1.8	
                Offer letter This Agreement supersedes the terms and
                  conditions contained in any correspondence relating to the subject matter of this Agreement exchanged between the Lender 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 1.9:

              

      

    

    “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 of Directive 2014/59/EU establishing a
                  framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; and

              

      

    

    
      
        	

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

              

      

    

    “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.

    
      Page 18

      
        

    

    

    

    “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 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

              

      

    

    
      Page 19

      
        

    

    

    

    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.

              

      

    

    
      Page 20

      
        

    

    
      
        	Section 2	
                The Loan

              

      

    

    
      
        	2	
                The Loan

              

      

    

    Subject to the terms of this Agreement, the Lender agrees to make available to the Borrowers on a joint and several
      basis a term loan in an aggregate amount (in dollars) not exceeding the Maximum Loan Amount in up to three Vessel Loans.

    
      
        	3	
                Purpose

              

      

    

    
      
        	3.1	
                Purpose The Borrowers shall apply the Loan for the purposes referred to in Preliminary (B).

              

      

    

    
      
        	3.2	
                Monitoring The Lender shall not be bound to monitor or
                  verify the application of any amount borrowed under this Agreement.

              

      

    

    
      
        	4	
                Conditions of Utilisation

              

      

    

    
      
        	4.1	
                Initial conditions precedent

              

      

    

    The Lender will only be obliged to comply with Clause 5.3 (Lender’s compliance with an Utilisation Request) in relation to the advance of a Vessel Loan if on or before the relevant Utilisation Date, the Lender has received all of the documents and other
      evidence listed in Part I of Schedule 1 (Conditions Precedent) in form and substance satisfactory to the Lender save that references in Section
      2 of that Part I to “the Vessel” or to any person or document relating to a Vessel shall be deemed to relate solely to the Vessel specified in the relevant Utilisation Request or to any person or document relating to that Vessel respectively. The
      Lender shall notify the Borrowers promptly upon being so satisfied.

    
      
        	4.2	
                Further conditions precedent

              

      

    

    
      
        	

              	4.2.1	
                The Lender will only be obliged to advance a Vessel Loan if on the date of the relevant Utilisation Request and on the proposed Utilisation Date:

              

      

    

    
      
        	

              	(a)	
                no Default is continuing or would result from the advance of that Vessel Loan;

              

      

    

    
      
        	

              	(b)	
                the representations made by the Borrowers under Clause 18 (Representations) are true in all material respects; and

              

      

    

    
      
        	

              	(c)	
                no event or series of events has occurred which is likely to have a Material Adverse Effect.

              

      

    

    
      
        	

              	4.2.2	
                The Lender will only be obliged to advance a Vessel Loan if:

              

      

    

    
      
        	

              	(a)	
                that Vessel Loan will not be in excess of the relevant Maximum Vessel Loan Amount; and

              

      

    

    
      
        	

              	(b)	
                that Vessel Loan will not increase the Loan to a sum in excess of the Maximum Loan Amount.

              

      

    

    
      
        	4.3	
                Conditions subsequent The Borrowers undertake to deliver or
                  to cause to be delivered to the Lender within 14 days after the relevant Utilisation Date the

              

      

    

    
      Page 21

      
        

    

    additional documents and other evidence listed in Part II of Schedule 1 (Conditions Subsequent), save that references in that Part II to “the Vessel” or to any person or document relating to a Vessel shall be deemed to relate solely to the Vessel specified
      In the relevant Utilisation Request or to any person or document relating to that Vessel respectively.

    
      
        	4.4	
                No waiver If the Lender in its sole
                  discretion agrees to advance a Vessel Loan to the Borrowers before all of the documents and evidence required by Clause 4.1 (Initial
                    conditions precedent) have been delivered to or to the order of the Lender, the Borrowers undertake to deliver all outstanding documents and evidence to or to the order of the Lender no later than 30 days after the relevant
                  Utilisation Date or such other date specified by the Lender.

              

      

    

    The advance of a Vessel Loan under this Clause 4.4 shall not be taken as a waiver of the Lender’s right to require
      production of all the documents and evidence required by Clause 4.1 (Initial conditions precedent).

    
      
        	4.5	
                Form and content Al! documents and evidence
                  delivered to the Lender under this Clause shall:

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      Page 22

      
        

    

    
      
        	Section 3	
                Utilisation

              

      

    

    
      
        	5	
                Advance

              

      

    

    
      
        	5.1	
                Delivery of an Utilisation Request The
                  Borrower may request a Vessel Loan to be advanced by delivery to the Lender of a duly completed Utilisation Request not more than ten and not fewer than three Business Days before the proposed Utilisation Date.

              

      

    

    
      
        	5.2	
                Completion of an Utilisation Request An
                  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 Availability Period; and

              

      

    

    
      
        	

              	5.2.3	
                the proposed Interest Period complies with Clause 9 (Interest Periods).

              

      

    

    
      
        	5.3	
                Lender’s compliance with an Utilisation Request
                  Subject to Clauses 2 (The Loan), 3 (Purpose)
                  and 4 (Conditions of Utilisation), the Lender shall comply with an Utilisation Request by advancing the relevant Vessel Loan
                  through the Facility Office.

              

      

    

    
      
        	5.4	
                Cancellation of undrawn amount The
                  availability of the Loan shall be cancelled at the end of the Availability Period to the extent that it is undrawn at that time.

              

      

    

    
      Page 23

      
        

    

    
      
        	Section 4	
                Repayment, Prepayment and Cancellation

              

      

    

    
      
        	6	
                Repayment

              

      

    

    
      
        	6.1	
                Repayment of Vessel Loans The Borrowers agree
                  to repay each Vessel Loan to the Lender as follows:

              

      

    

    
      
        	

              	6.1.1	
                the Kea Vessel Loan, by 14 equal quarterly instalments, the first 13 (15t to 13th) such instalments each in the amount of
                  $120,000 and the 14th and final such instalment in the sum of $3,340,000, comprising of an instalment of $120,000 and a balloon payment in the amount of $3,220,000 (the “Kea Balloon”), the first instalment falling due on the date which is three calendar months after the Utilisation Date in respect of Kea Vessel Loan and subsequent instalments falling
                  due at consecutive intervals of three calendar months thereafter and the 14th and final instalment falling due not later the Termination Date;

              

      

    

    
      
        	

              	6.1.2	
                the Spetses Vessel Loan, by 14 equal quarterly instalments, the first 13 (15t to 13th) such instalments each in the amount of $200,000
                  and the 14th and final such instalment in the sum of $1,500,000, comprising of an instalment of $200,000 and a balloon payment in the amount of $1,300,000 (the “Spetses Balloon”), the first instalment falling due on the date which is three calendar months after the Utilisation Date in respect of Spetses Vessel Loan and subsequent instalments falling due
                  at consecutive intervals of three calendar months thereafter and the 14th and final instalment falling due not later the Termination Date; and

              

      

    

    
      
        	

              	6.1.3	
                the Hydra Vessel Loan, by 14 equal quarterly instalments, the first 13 (1st to 13th) such instalments each in the amount of
                  $130,000 and the 14th and final such instalment in the sum of $1,810,000, comprising of an instalment of $130,000 and a balloon payment in the amount of $1,680,000 (the “Hydra Balloon” and together with the Kea Balloon and the Spetses Balloon, the “Balloons”
                  and each a “Balloon), the first instalment falling due on the date which is three calendar months after the Utilisation Date in respect
                  of Hydra Vessel Loan and subsequent instalments falling due at consecutive intervals of three calendar months thereafter and the 14th and final instalment falling due not later the Termination Date.

              

      

    

    
      
        	6.2	
                Reduction of Repayment Instalments If the
                  aggregate amount advanced to the Borrowers is less than:

              

      

    

    
      
        	

              	6.2.1	
                $4,900,000 in respect of Kea Vessel;

              

      

    

    
      
        	

              	6.2.2	
                $4,100,000 in respect of Spetses Vessel; or

              

      

    

    
      
        	

              	6.2.3	
                $3,500,000 in respect of Hydra Vessel,

              

      

    

    the amount of each Repayment Instalment in respect of the relevant Vessel Loan (including the relevant Balloon in
      respect of that Vessel Loan) shall be reduced pro rata to the amount actually advanced under the relevant Vessel Loan.

    
      Page 24

      
        

    

    
      
        	6.3	
                Reborrowing The Borrowers may not reborrow
                  any part of a Vessel Loan which is repaid or prepaid.

              

      

    

    
      
        	7	
                Illegality, Prepayment and Cancellation

              

      

    

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	7.1.2	
                upon the Lender notifying the Borrowers, the availability of the Loan will be Immediately cancelled; and

              

      

    

    
      
        	

              	7.1.3	
                the Borrowers shall repay each Vessel Loan on the last day of its current Interest Period or, if earlier, the date specified by the Lender in the
                  notice delivered to the Borrowers (being no earlier than the last day of any applicable grace period permitted by law).

              

      

    

    
      
        	7.2	
                Voluntary cancellation The Borrowers may, if
                  it gives the Lender not less than 14 Business Days’ (or such shorter period as the Lender may agree) prior notice, cancel the whole or any part (being a minimum amount of $200,000) of the undrawn amount of a Vessel Loan.

              

      

    

    
      
        	7.3	
                Voluntary prepayment of Loan The Borrowers
                  may prepay the whole or any part of the Loan freely and without penalty on the final day of an Interest Period (but, if in part, being an amount that reduces a Vessel Loan by an amount which is an integral multiple of (a) $120,000 in
                  respect of Kea Vessel Loan, (b) $200,000 in respect of Spetses Vessel Loan or (c) $130,000 in respect of Hydra Vessel Loan, subject as follows:

              

      

    

    
      
        	

              	7.3.1	
                they give the Lender not less than five Business Days’ (or such shorter period as the Lender 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 Vessel Loans) by reducing the amount of the repayment instalments (i) on a pro rata basis in respect of each Vessel Loan and (ii) within each Vessel Loan, on a pro rata basis
                  including the relevant Balloon.

              

      

    

    
      
        	7.4	
                Right of cancellation and prepayment

              

      

    

    7.4.1            If:

    
      
        	

              	(a)	
                any sum payable to the Lender by the Borrowers is required to be
                    increased under Clause 12.2.2 (Tax gross-up); or

              

      

    

    
      
        	

              	(b)	
                the Lender claims indemnification from the Borrowers under Clause 12.3 (Tax indemnity) or Clause 13.1 (Increased costs);

              

      

    

    
      Page 25

      
        

    

    

    

    the Borrowers may, whilst the circumstance giving rise to the requirement for that increase or indemnification
      continues, give the Lender notice of cancellation of the Loan and its intention to procure the repayment of the Loan.

    
      
        	

              	7.4.2	
                On the last day of the Interest Period, in respect of each Vessel Loan, which ends after the Borrowers have given notice under Clause 7.4.1 (or, if earlier, the
                  date specified by the Borrowers in that notice), the Borrowers shall repay that Vessel 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 by a Borrower or becomes a Total Loss, the Borrowers shall, simultaneously with any such sale or on the earlier of the date falling 120 days after any such Total Loss and the date on which the proceeds of any such Total
                  Loss are realised, make a prepayment of the Loan in an amount equivalent to the aggregate of (a) the full outstanding amount in respect of the Vessel Loan relevant to that Vessel and (b) any additional amount in respect of the remaining
                  Vessel Loans as may be required to ensure that the VTL Coverage in respect of the remaining Vessels is fully complied with following such sale or Total Loss.

              

      

    

    
      
        	7.6	
                Mandatory prepayment on change of ownership of Guarantor

              

      

    

    
      
        	

              	7.6.1	
                If, without the prior written consent of the Lender (such consent not be unreasonably withheld), there is a Change of Control, the Borrowers shall
                  promptly notify the Lender upon becoming aware of that event and, if the Lender so requires, the Lender shall, by no less than 10 days’ notice to the Borrowers declare the Loan, together with accrued interest and ail other amounts accrued
                  under the Finance Documents immediately due and payable, whereupon the Loan and all such outstanding interest and amounts will become immediately due and payable provided that in the case of Clause 7.6.2 (b) below, the Borrowers will first have the option to rectify the Security Cover Ratio within 15 Business Days.

              

      

    

    
      
        	

              	7.6.2	
                For the purpose of paragraph (a) above, “Change of
                    Control” means:

              

      

    

    
      
        	

              	(a)	
                the members of the Nominated Family cease to own directly or indirectly more than 10% of the shares (and the voting rights attaching to those
                  shares) in the Guarantor; or

              

      

    

    
      
        	

              	(b)	
                the members of the Nominated Family own directly or indirectly between 10.1% to 19.9%, (inclusive) of the shares (and the voting rights attaching to
                  those shares) in the Guarantor and the Security Cover Ratio is equal to or less than 143% of the Loan.

              

      

    

    
      
        	

              	7.6.3	
                The Borrowers shall (and shall procure that the Guarantor shall) promptly notify the Lender of any covenants regarding the Change of Control of the
                  Guarantor agreed with its financiers and if the Lender (acting reasonably) considers that those terms agreed with any other financiers are more favourable than those set out in this Clause 7.6, then the Borrowers shall (and shall procure
                  that the Guarantor shall) provide amended terms on

              

      

    

    
      Page 26

      
        

    

    equivalent terms to those deemed by the Lender (acting reasonably) to be more favourable and
      acceptable to the Lender (acting reasonably).

    
      
        	7.7	
                Restrictions Any notice of prepayment or cancellation given
                  under this Clause 7 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.

              

      

    

    Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject
      to any Break Costs (if paid on a date that is not an Interest Payment Date) and subject to Clause 7.3 (Voluntary prepayment of Loan), Clause 7.5
      (Mandatory prepayment on sale or Total Loss) and Clause 7.6 (Mandatory prepayment on change of ownership of Guarantor), without premium or penalty.

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

    No amount of the Loan cancelled under this Agreement may be subsequently reinstated.

    
      Page 27

      
        

    

    
      
        	Section 5	
                Costs of Utilisation

              

      

    

    
      
        	8	
                Interest

              

      

    

    
      
        	8.1	
                Calculation of interest The rate of interest
                  on each Vessel 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.

              

      

    

    
      
        	8.2	
                Payment of interest The Borrowers shall pay
                  accrued Interest on each Vessel Loan on the last day of each Interest Period (and, if the Interest Period is longer than three (3) months, on the dates falling at three (3) monthly intervals after the first day of the Interest Period).

              

      

    

    
      
        	8.3	
                Default Interest In the event of a failure by
                  the Borrowers to pay any amount on the date on which such amount is due and payable pursuant to this Agreement and/or any of the other Finance Documents (unless otherwise specifically provided in any Finance Document) and irrespective of
                  any notice by the Lender or any other person to the Borrowers in respect of such failure, the Borrowers shall pay interest at the rate of two per cent (2%) higher than the rate provided under Clause 8.2 (Payment of Interest) up to the date of actual payment (both before and after judgment), compounded at such intervals as the Lender shall in its discretion
                  determine. Any Interest accruing under this Clause 8.3 (Default Interest) in respect of an unpaid amount shall be compounded with
                  the overdue amount at the end of each Interest Period applicable to that overdue amount and shall be due and payable at the end of the period by reference to which it is calculated or such other date or dates as the Lender may specify by
                  written notice to the Borrowers.

              

      

    

    
      
        	8.4	
                Notification of rates of interest The Lender
                  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 Lender the duration of an Interest Period for each Vessel Loan subject as follows:

              

      

    

    
      
        	

              	9.1.1	
                each notice is irrevocable and must be delivered to the Lender 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 9.1.1, the relevant Interest Period will, subject to Clauses 9.2 (Second and subsequent Vessel Loans) 9.3, (Interest Periods to meet Repayment Dates) and 9.4 (Non-Business Days), be three (3) months;

              

      

    

    
      
        	

              	9.1.3	
                subject to this Clause 9, the Borrowers may select an Interest Period of three (3), or six (6) or twelve (12) months or any other period agreed
                  between the Borrowers and the Lender;

              

      

    

    
      
        	

              	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 in respect of the first Vessel Loan or (if the first Vessel Loan is already made) on the
                  last day of

              

      

    

    
      Page 28

      
        

    

    the preceding Interest Period and end on the date which numerically corresponds to the Utilisation
      Date in respect of the first Vessel Loan or the last day of the preceding Interest Period in the relevant calendar month except that, if there is no numerically corresponding date in that calendar month, the Interest Period shall end on the last
      Business Day in that month.

    
      
        	9.2	
                Second and subsequent Vessel Loans If the
                  second or any subsequent Vessel Loan is made otherwise than on the first day of an Interest Period for the balance of the Loan, there shall be a separate initial Interest Period for that Vessel Loan commencing on its Utilisation Date and
                  expiring on the final date of the current Interest Period for the balance of the Loan.

              

      

    

    
      
        	9.3	
                Interest Periods to meet Repayment Dates If
                  an Interest Period will expire after the next Repayment Date in respect of the relevant Vessel Loan, there shall be a separate Interest Period for a part of that Vessel Loan equal to the Repayment Instalment due on that next Repayment
                  Date and that separate Interest Period shall expire on that next Repayment Date.

              

      

    

    
      
        	9.4	
                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	
                Absence of quotations Subject to Clause 10.2
                  (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a
                  quotation by 11.00 am on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

              

      

    

    
      
        	10.2	
                Market disruption If a Market Disruption
                  Event occurs for any Interest Period, then the rate of interest on the Loan for that Interest Period shall be the percentage rate per annum which is the sum of:

              

      

    

    
      
        	

              	10.2.1	
                the Margin; and

              

      

    

    
      
        	

              	10.2.2	
                the rate notified to the Borrowers by the Lender as soon as practicable, and in any event by close of business on the date falling three (3)
                  Business Days after the Quotation Day (or, if earlier, on the date falling three (3) Business Days prior to the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate
                  per annum the cost to the Lender of funding the Loan from whatever source it may reasonably select.

              

      

    

    In this Agreement “‘Market
        Disruption Event” means:

    
      
        	

              	(a)	
                at or about noon on the Quotation Day for the relevant Interest Period LIBOR is to be determined by reference to the Reference Banks and none or
                  only one of the Reference Banks supplies a rate to the Lender to determine LIBOR for dollars and the relevant Interest Period; or

              

      

    

    
      
        	

              	(b)	
                before close of business in London on the Quotation Day for the relevant Interest Period, the Borrowers receive notification from the Lender that
                  the

              

      

    

    
      Page 29

      
        

    

    cost to it of funding the Loan from whatever source it may reasonably select would be in excess of LIBOR.

    
      
        	10.3	
                Alternative basis of interest or funding

              

      

    

    
      
        	

              	10.3.1	
                If a Market Disruption Event occurs and the Lender or the Borrowers so requires, the Lender and the Borrowers shall enter into negotiations (for a
                  period of not more than thirty (30) days) with a view to agreeing a substitute basis for determining the rate of interest.

              

      

    

    
      
        	

              	10.3.2	
                Any alternative basis agreed pursuant to Clause 10.3.1 shall be binding on all Parties.

              

      

    

    
      
        	10.4	
                Break Costs The Borrowers shall, within three
                  Business Days of demand by the Lender, pay to the Lender 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, that
                  Vessel Loan or Unpaid Sum.

              

      

    

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

    
      
        	11	
                Fees

              

      

    

    
      
        	11.1	
                Commitment Fee The Borrowers shall pay to the
                  Lender a fee computed at the rate of zero point five per cent (0.50/0) per annum on the undrawn amount of the Loan for the period commencing on the date of this Agreement and ending on the earlier to occur of (a) the last day
                  of the Availability Period and (b) the relevant Utilisation Date in respect of the last Vessel Loan to be drawn.

              

      

    

    The accrued commitment fee is payable on the last day of each successive period of three (3) months which ends
      during the Availability Period, on the earlier of (a) the last day of the Availability Period or (b) the relevant Utilisation Date and (on the cancelled amount of the Loan) at the time the cancellation is effective.

    
      
        	11.2	
                Arrangement fee The Borrowers shall pay to
                  the Lender on the relevant Utilisation Date in respect of a Vessel Loan an arrangement fee in an amount equal to zero point five per cent (0.5%) of the final amount to be advanced to the Borrowers in respect of that Vessel Loan by the
                  Lender under this Agreement.

              

      

    

    
      Page 30

      
        

    

    
      
        	Section 6	
                Additional Payment Obligations

              

      

    

    
      
        	12	
                Tax Gross Up and Indemnities

              

      

    

    
      
        	12.1	
                Definitions In this Agreement:

              

      

    

    “Protected
        Party” means the Lender if it 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 the Lender if it is beneficially entitled to interest payable to it in respect of an advance under a Finance Document and:

    
      
        	

              	(a)	
                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)	
                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 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)	
                is a Treaty Lender.

              

      

    

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

    
      Page 31

      
        

    

    

    

    
      
        	

              	(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 the Lender under Clause 12.2 (Tax gross-up) or a payment by the
      Borrowers under Clause 12.3 (Tax indemnity).

    “Treaty
        Lender” means the Lender if it:

    
      
        	

              	(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 the Loan is effectively connected.

              

      

    

    “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.

    
      
        	12.2	
                Tax gross-up Each Borrower shall (and shall
                  procure that each other Obligor shall) make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law, subject as follows:

              

      

    

    
      
        	

              	12.2.1	
                the Borrowers shall promptly upon becoming aware that any Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of
                  a Tax Deduction) notify the Lender accordingly. Similarly, the Lender shall notify the Borrowers and any such other Obligor on becoming so aware in respect of a payment payable to the Lender;

              

      

    

    
      
        	

              	12.2.2	
                if a Tax Deduction is required by law to be made by a Borrower or any other Obligor, the amount of the payment due from the Borrowers or that other
                  Obligor shall be increased to an amount which (after making any Tax

              

      

    

    
      Page 32

      
        

    

    Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction
      had been required;

    
      
        	

              	12.2.3	
                a payment shall not be increased under Clause 12.2.2 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 Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date the 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 Lender is a Qualifying Lender solely by virtue of (b) 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 from the Borrowers or from any other 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 Lender is a Qualifying Lender solely by virtue of (b) of the definition of Qualifying Lender and:

              

      

    

    
      
        	

              	(i)	
                the 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 Lender is a Treaty Lender and a Borrower or the other Obligor making the payment is able to demonstrate that the payment could have been made to the Lender
                  without the Tax Deduction had the Lender complied with its obligations under Clause 12.2.6;

              

      

    

    
      
        	

              	12.2.4	
                if a Borrower or any other Obligor is required to make a Tax Deduction, the Borrowers shall (and shall procure that such other Obligor shall) 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;

              

      

    

    
      Page 33

      
        

    

    
      
        	

              	12.2.5	
                within thirty (30) days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrowers shall (and
                  shall procure that such other Obligor shall) deliver to the Lender a statement under section 975 of the ITA or other evidence reasonably satisfactory to the Lender that the Tax Deduction has been made or (as applicable) any appropriate
                  payment paid to the relevant taxing authority;

              

      

    

    
      
        	

              	12.2.6                  	(a)            	Subject to (b), if the Lender is a Treaty Lender, the Lender and the Borrowers shall co-operate
                (and the Borrowers shall procure that each other Obligor which makes a payment to which that Treaty Lender is entitled will co-operate) in completing any procedural formalities necessary for that Borrower or that other Obligor to obtain
                authorisation to make that payment without a Tax Deduction.

      

    

    
      
        	

              	(b)	
                If the Lender is a Treaty Lender which holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, the
                  Lender shall confirm its scheme reference number and its jurisdiction of tax residence to the Borrowers, and, having done so, the Lender shall be under no obligation pursuant to (a).

              

      

    

    
      
        	12.3	
                Tax indemnity

              

      

    

    
      
        	

              	12.3.1	
                The Borrowers shall (within three (3) Business Days of demand by the Lender) pay to the Lender, if the Lender is a Protected Party, an amount equal
                  to the loss, liability or cost which the Lender determines will be or has been (directly or indirectly) suffered for or on account of Tax by the Lender in respect of a Finance Document.

              

      

    

    
      
        	

              	12.3.2	
                Clause 12.3.1 shall not apply:

              

      

    

    
      
        	

              	(a)	
                with respect to any Tax assessed on the Lender:

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(ii)	
                under the law of the jurisdiction in which the 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 the Lender; or

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(i)	
                is compensated for by an increased payment under Clause 12.2 (Tax
                    gross-up);

              

      

    

    
      
        	

              	(ii)	
                would have been compensated for by an increased payment under Clause 12.2 (Tax gross-up) but was not so

              

      

    

    
      Page 34

      
        

    

    compensated solely because one of the exclusions in Clause 12.2.3 (Tax gross-up) applied; or

    
      
        	

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

              

      

    

    
      
        	

              	12.3.3	
                If the Lender makes or intends to make a claim under Clause 12.3.1 as a Protected Party, the Lender shall promptly notify the Borrowers of the event
                  which will give, or has given, rise to the claim.

              

      

    

    
      
        	12.4	
                Tax Credit If a Borrower or any other
                  Obligor makes a Tax Payment and the Lender 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	
                the Lender has obtained and utilised that Tax Credit, the Lender shall pay an amount to the Borrowers or to that other Obligor which the Lender
                  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 Borrowers or that other Obligor.

              

      

    

    
      
        	12.5	
                Stamp taxes The Borrowers shall pay and,
                  within five Business Days of written demand, indemnify the Lender against any cost, loss or liability the Lender incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

              

      

    

    
      
        	12.6	
                VAT

              

      

    

    
      
        	

              	12.6.1	
                All amounts expressed to be payable under a Finance Document by any Obligor to the Lender 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, if VAT is or becomes chargeable on any supply made by the Lender to any Obligor under a Finance Document and the
                  Lender is required to account to the relevant tax authority for the VAT, that Obligor must pay to the Lender (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 the Lender must promptly provide an appropriate VAT invoice to the Borrowers).

              

      

    

    
      
        	

              	12.6.2	
                Where a Finance Document requires any Obligor to reimburse or indemnify the Lender for any cost or expense, that Obligor shall reimburse or
                  indemnify (as the case may be) the Lender for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that the Lender reasonably determines that it is entitled to credit or repayment in
                  respect of such VAT from the relevant tax authority.

              

      

    

    
      
        	

              	12.6.3	
                Any reference in this Clause 12.6 to any Obligor shall, at any time when such Obligor 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

              

      

    

    
      Page 35

      
        

    

    “representative member” to have the same meaning as in the Value Added Tax Act 1994).

    
      
        	

              	12.6.4	
                In relation to any supply made by the Lender to any Obligor under a Finance Document, if reasonably requested by the Lender, that Obligor must
                  promptly provide the Lender with details of that Obligor’s VAT registration and such other information as is reasonably requested in connection with the Lender’s VAT reporting requirements in relation to such supply.

              

      

    

    
      
        	12.7	
                FATCA information

              

      

    

    
      
        	

              	12.7.1	
                Subject to Clause 12.7.3, each Party shall, within ten (10) 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; and

              

      

    

    
      
        	

              	(b)	
                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

              

      

    

    
      
        	

              	(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.

              

      

    

    
      
        	

              	12.7.2	
                If a Party confirms to another Party pursuant to Clause 12.7.1(a)(i) 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.

              

      

    

    
      
        	

              	12.7.3	
                Clause 12.7.1 shall not oblige the Lender to do anything, and Clause (c) 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.

              

      

    

    
      
        	

              	12.7.4	
                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(a) or (b) (including, for the avoidance of doubt, where Clause 12.7.3 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.

              

      

    

    
      Page 36

      
        

    

    
      
        	

              	12.7.5	
                If a Borrower is a US Tax Obligor or the Lender reasonably believes that its obligations under FATCA or any other applicable law or regulation
                  require it, the Lender shall, within ten Business Days of:

              

      

    

    
      
        	

              	(a)	
                where a Borrower is a US Tax Obligor, the date of this Agreement; or

              

      

    

    
      
        	

              	(b)	
                where a Borrower is not a US Tax Obligor, the date of a request from that Borrower, supply to the Borrowers:

              

      

    

    
      
        	

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

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	12.7.6	
                If any withholding certificate, withholding statement, document, authorisation or waiver provided to the Borrowers by the Lender pursuant to Clause
                  12.7.5 is or becomes materially inaccurate or incomplete, the Lender shall promptly update it and provide such updated withholding certificate, withholding statement, document, authorisation or waiver to the Borrowers unless it is
                  unlawful for the Lender to do so (in which case the Lender shall promptly notify the Borrowers).

              

      

    

    
      
        	12.8	
                FATCA Deduction

              

      

    

    
      
        	

              	12.8.1	
                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.

              

      

    

    
      
        	

              	12.8.2	
                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.

              

      

    

    
      
        	13	
                Increased Costs

              

      

    

    
      
        	13.1	
                Increased costs Subject to Clause 13.3 (Exceptions) the Borrowers shall, within five Business Days of a demand by the Lender, pay to the Lender the amount of any Increased
                  Costs incurred by the Lender 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
                  or any request from or requirement of any central bank or other fiscal, monetary or other authority made after the date of this Agreement (including Basel III (as defined in Clause 13.3) and any other which relates to capital adequacy or
                  liquidity controls or which affects the manner in which the Lender allocates capital resources to obligations under this Agreement or (iii) any change in the risk weight allocated by the Lender to the Borrowers after the date of this
                  Agreement.

              

      

    

    
      Page 37

      
        

    

    In this Agreement
        “Increased Costs” means:

    
      
        	

              	(a)	
                a reduction in the rate of return from the Loan or on the Lender’s (or its Affiliate’s) overall capital;

              

      

    

    
      
        	

              	(b)	
                an additional or increased cost; or

              

      

    

    
      
        	

              	(c)	
                a reduction of any amount due and payable under any Finance Document, which is incurred or suffered by the Lender or any of its Affiliates as a result of the events
                  referred to in Clause 13.1 to the extent that it is attributable to the Lender having entered into any Finance Document or funding or performing its obligations under any Finance Document.

              

      

    

    
      
        	13.2	
                Increased cost claims

              

      

    

    
      
        	

              	13.2.1	
                If the Lender intends to make a claim pursuant to Clause 13.1
                    (Increased costs) the Lender shall promptly notify the Borrowers of the event giving rise to the claim.

              

      

    

    
      
        	

              	13.22	
                The Lender shall, as soon as practicable after a demand by the Borrowers, provide a certificate confirming the amount of its Increased Costs.

              

      

    

    
      
        	13.3	
                Exceptions Clause 13.1 (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 the Borrowers;

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	13.3.3	
                compensated for by Clause 12.3 (Tax indemnity) (or would have been compensated for under Clause 12.3 but was not so compensated solely because any of the exclusions
                  in Clause 12.3 applied); or

              

      

    

    13.3.4 attributable to the wilful breach by the Lender or its Affiliates of any law or
      regulation.

    
      
        	14	
                Other Indemnities

              

      

    

    
      
        	14.1	
                Currency indemnity If any sum due from a Borrower 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

              

      

    

    
      
        	

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

              

      

    

    that Borrower shall as an independent obligation, within three (3) Business Days of demand, indemnify the Lender
      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)

    
      Page 38

      
        

    

    the rate or rates of exchange available to the Lender at the time of its receipt of that Sum.

    Each Borrower 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 five Business Days of demand, indemnify the Lender against any cost, loss or liability incurred by the Lender as a
                  result of:

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                a failure by an Obligor to pay any amount due under a Finance Document on its due date;

              

      

    

    
      
        	

              	(c)	
                funding, or making arrangements to fund, a Vessel Loan following delivery by the Borrowers of an Utilisation Request but that Vessel Loan not being advanced 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 the Lender 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 the Lender, each Affiliate of the Lender and each officer or employee of the Lender or its Affiliate (each
                  such person for the purposes of this Clause 14.2 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.

              

      

    

    
      
        	

              	14.2.3	
                Subject to any limitations set out in Clause 14.2.2, 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.

              

      

    

    
      
        	

              	14.2.4	
                The Borrowers shall promptly indemnify the Lender as holder of any of the Security Documents and every Receiver and Delegate against any cost, loss
                  or liability incurred by any of them as a result of:

              

      

    

    
      Page 39

      
        

    

    

    

    
      
        	

              	(a)	
                any failure by the Borrowers to comply with its obligations under Clause 16 (Costs and Expenses);

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(c)	
                the taking, holding, protection or enforcement of the Security Documents;

              

      

    

    
      
        	

              	(d)	
                the exercise of any of the rights, powers, discretions, authorities and remedies vested in the Lender and each Receiver and Delegate by the Finance Documents or by
                  law;

              

      

    

    
      
        	

              	(e)	
                any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents to which it is a party; or

              

      

    

    
      
        	

              	(f)	
                acting as holder of any of the Security Documents, Receiver or Delegate or otherwise relating to any of the Charged Property (otherwise, in each case, than by
                  reason of the relevant Lender’s, Receiver’s or Delegate’s gross negligence or wilful misconduct).

              

      

    

    
      
        	14.3	
                Indemnity survival The indemnities contained
                  in this Agreement shall survive repayment of the Loan.

              

      

    

    
      
        	15	
                Mitigation by the Lender

              

      

    

    
      
        	15.1	
                Mitigation The Lender shall, in consultation
                  with the Borrowers, take all reasonable steps to mitigate any circumstances which arise and which would result in the Loan ceasing to be available or any amount becoming payable under or pursuant to any of Clause 7.1 (Illegality), Clause 12 (Tax Gross Up
                    and Indemnities) or Clause 13 (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 the Lender for all costs and expenses reasonably incurred by the Lender as a result of steps taken by it under Clause 15.1 (Mitigation). The Lender is not obliged to take any steps under Clause 15.1 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 on
                  demand and in any event by not later than thirty (30) days following such demand, pay the Lender the amount of all costs and expenses (including, without limitation, all agreed legal fees, VAT, disbursements and correspondent lawyers’
                  fees provided that the demand for payment is accompanied by the respective invoice) reasonably incurred by any of them in connection with the negotiation, preparation, printing, execution, syndication and perfection of:

              

      

    

    
      
        	

              	16.1.1	
                this Agreement and any other documents referred to in this Agreement;

              

      

    

    
      Page 40

      
        

    

    

    

    
      
        	

              	16.1.2	
                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 the Lender to give effect to any Finance Document or which the Lender is entitled to call
                  for or obtain under any Finance Document (including, without limitation, any valuation of a Vessel and a Fleet Vessel, subject to Clause 17.15); and

              

      

    

    
      
        	

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

              

      

    

    
      
        	16.2	
                Amendment costs If an Obligor requests an
                  amendment, waiver or consent, the Borrowers shall, within three Business Days of demand, reimburse the Lender for the amount of all costs and expenses (including legal fees and currency exchange costs) reasonably incurred by the Lender
                  and any Receiver or Delegate in responding to, evaluating, negotiating or complying with that request or requirement provided that no sum shall be payable under this Clause if the relevant request for an amendment, notice, waiver or
                  consent are rejected by the Lender and/or are not granted.

              

      

    

    
      
        	16.3	
                Enforcement and preservation costs The
                  Borrowers shall, within three Business Days of written demand, pay to the Lender and each other Secured Party the amount of all costs and expenses (including legal fees) incurred by the Lender and that other Secured Party in connection
                  with the enforcement of, or the preservation of any rights under, any Finance Document and any proceedings instituted by or against the Lender as a consequence of taking or holding the Security Documents or enforcing those rights
                  including (without limitation) any losses, costs and expenses which the Lender or that other Secured Party may from time to time sustain, incur or become liable for by reason of the Lender or that other Secured Party being mortgagee of a
                  Vessel and/or a lender to a Borrower, or by reason of the Lender or that 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.

              

      

    

    
      
        	16.4	
                Other costs The Borrowers shall, within
                  three Business Days of written demand, pay to the Lender and each other Secured Party the amount of all sums which the Lender or that 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 the Lender or that other Secured Party may pay or guarantees which it may give in respect of
                  the Insurances, any expenses incurred by the Lender or that 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
                  the Lender or that other Secured Party may pay or guarantees which it may give to procure the release of a Vessel from arrest or detention.

              

      

    

    
      Page 41

      
        

    

    

    

    
      
        	Section 7	
                Security and Application of Moneys

              

      

    

    
      
        	17	
                Security Documents and Application of Moneys

              

      

    

    
      
        	17.1	
                Security Documents As security for the
                  payment of the Indebtedness, the Borrowers shall execute and deliver to the Lender or cause to be executed and delivered to the Lender the following documents in such forms and containing such terms and conditions as the Lender shall
                  require:

              

      

    

    
      
        	

              	17.1.1	
                first preferred mortgages over the Vessels;

              

      

    

    
      
        	

              	17.1.2	
                first priority deed or deeds of assignment of the Insurances, Earnings, Charter Rights and Requisition Compensation of the Vessels from the
                  Borrowers;

              

      

    

    
      
        	

              	17.1.3	
                a guarantee and indemnity from the Guarantor;

              

      

    

    
      
        	

              	17.1.4	
                first priority charges of all the issued shares of the Borrowers from the Chargor;

              

      

    

    
      
        	

              	17.1.5	
                first priority account security deeds in respect of all amounts from time to time standing to the credit of the Earnings Accounts;

              

      

    

    
      
        	

              	17.1.6	
                a first priority account security deed in respect of all amounts from time to time standing to the credit of the Cash Collateral Account; and

              

      

    

    
      
        	

              	17.1.7	
                letters of undertaking, including an assignment of the Vessels’ Insurances, from the Managers in respect of the Vessels.

              

      

    

    
      
        	17.2	
                Accounts The Borrowers shall maintain the
                  Earnings Accounts and the Cash Collateral Account 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.

              

      

    

    
      
        	17.3	
                Earnings The Borrowers shall procure that all
                  Earnings and any Requisition Compensation are credited to the relevant Earnings Account.

              

      

    

    
      
        	17.4	
                Application of the Earnings Accounts The
                  Borrowers shall procure that there is transferred from the Earnings Accounts to the Lender:-

              

      

    

    
      
        	

              	17.4.1	
                on each Repayment Date, in respect of the relevant Vessel Loan, the amount of the Repayment Instalment then due; and

              

      

    

    
      
        	

              	17.4.2	
                on each Interest Payment Date, in respect of the relevant Vessel Loan, the amount of Interest then due and the Borrowers irrevocably authorises the
                  Lender to instruct the Account Holder to make those transfers.

              

      

    

    
      
        	17.5	
                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.

              

      

    

    
      Page 42

      
        

    

    

    

    
      
        	17.6	
                Release of surplus Any amount remaining to
                  the credit of the Earnings Accounts following the making of any transfer required by Clause 17.4 (Application of the Earnings Accounts) shall
                  (unless a Default shall have occurred and be continuing) be released to or to the order of the Borrowers.

              

      

    

    
      
        	17.7	
                Restriction on withdrawal During the Facility
                  Period no sum may be withdrawn from:

              

      

    

    
      
        	

              	17.7.1	
                the Earnings Accounts without the prior written consent of the Lender (except in accordance with this Clause 17); and

              

      

    

    
      
        	

              	17.7.2	
                the Cash Collateral Account without the prior written consent of the Lender. No Account shall be overdrawn.

              

      

    

    
      
        	17.8	
                Relocation of the Accounts At any time
                  following the occurrence and during the continuation of a Default, the Lender may without the consent of the Borrowers instruct the Account Holder to relocate any of the Accounts to any other branch of the Account Holder, without
                  prejudice to the continued application of this Clause 17 and the rights of the Secured Parties under the Finance Documents.

              

      

    

    
      
        	17.9	
                Access to information The Borrowers agree
                  that the Lender (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 Accounts, and irrevocably waives any right of
                  confidentiality which may exist in relation to those records.

              

      

    

    
      
        	17.10	
                StatementsWithout prejudice to the rights of
                  the Lender under Clause 17.9 (Access to information), the Borrowers shall procure that the Account Holder provides to the Lender, no less frequently than each calendar month during the Facility Period, written statements of account
                  showing all entries made to the credit and debit of each of the Accounts during the immediately preceding calendar month.

              

      

    

    
      
        	17.11	
                Application after acceleration From and after
                  the giving of notice to the Borrowers by the Lender under Clause 22.2 (Acceleration), the Borrowers shall procure that all sums from
                  time to time standing to the credit of any of the Accounts are immediately transferred to the Lender or any Receiver or Delegate for application in accordance with Clause 17.12 (Application of moneys by Lender) and the Borrowers irrevocably authorise the Lender to instruct the Account Holder to make those transfers.

              

      

    

    
      
        	17.12	
                Application of moneys by Lender The Borrowers
                  irrevocably authorise the Lender or any Receiver or Delegate to apply all moneys which it receives and is entitled to receive:

              

      

    

    
      
        	

              	17.12.1	
                pursuant to a sale or other disposition of a Vessel or any right, title or interest in that Vessel; or

              

      

    

    
      
        	

              	17.12.2	
                by way of payment of any sum in respect of the Insurances, Earnings, Charter Rights or Requisition Compensation; or

              

      

    

    
      
        	

              	17.12.3	
                by way of transfer of any sum from any of the Accounts; or

              

      

    

    
      Page 43

      
        

    

    

    

    
      
        	

              	17.12.4	
                otherwise under or in connection with any Security Document,

              

      

    

    in or towards satisfaction of the Indebtedness in the following order:

    
      
        	

              	(a)	
                first, in or towards payment of any unpaid fees, costs, expenses and default interest due to the Lender and any Receiver or Delegate under all or any of the Finance
                  Documents, such application to be apportioned between the Lender and any Receiver or Delegate pro rata to the aggregate amount of such items due to each of them;

              

      

    

    
      
        	

              	(b)	
                second, in or towards payment of any accrued interest, fee or commission due but unpaid under this Agreement;

              

      

    

    
      
        	

              	(c)	
                third, in or towards payment of any principal due but unpaid under this Agreement;

              

      

    

    
      
        	

              	(d)	
                fourth, in or towards payment of any other sum due and payable to the Lender but unpaid under all or any of the Finance Documents,

              

      

    

    provided that the balance (if any) of the moneys received shall be paid to the Obligors from whom or from whose assets those sums were received or recovered or to any other person entitled to them.

    
      
        	17.13	
                Retention on account Moneys to be applied by
                  the Lender or any Receiver or Delegate under Clause 17.12 (Application of moneys by Lender) shall be applied as soon as practicable
                  after the relevant moneys are received by it, or otherwise become available to it.

              

      

    

    
      
        	17.14	
                Additional security Subject to Clause 7.6 (Mandatory Prepayment on change of ownership of Guarantor), if at any time the aggregate of the Market Values 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 Lender (in the case ❑f other charged assets), and determined by the
                  Lender in its discretion (in all other cases)) for the time being provided to the Lender under this Clause 17.14 is less than 130% of the Loan then outstanding (the “VTL Coverage”), the Borrowers shall, within 30 days of the Lender’s request, at the Borrowers’ option:

              

      

    

    
      
        	

              	17.14.1	
                pay to the Lender or to its nominee a cash deposit in the amount of the shortfall to be secured in favour of the Lender as additional security for
                  the payment of the Indebtedness; or

              

      

    

    
      
        	

              	17.14.2	
                give to the Lender other additional security in amount and form acceptable to the Lender in its discretion; or

              

      

    

    
      
        	

              	17.14.3	
                prepay the Loan in the amount of the shortfall.

              

      

    

    Clauses 6.3 (Reborrowing), 7.3.3 (Voluntary prepayment of Loan) and 7.7 (Restrictions) shall apply, mutatis mutandis, to any prepayment made under this Clause 17.14
      and the value of any additional security provided shall be determined by the Lender in its discretion.

    
      Page 44

      
        

    

    If, at any time after the Borrowers have provided additional security in accordance with the
      Lender’s request under this Clause 17.14, the Lender 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 Lender shall effect a release of all or any part of that additional security, but this shall be without prejudice to the Lender’s right to make a further request under this Clause 17.14 should the value of the
      remaining security subsequently merit it.

    
      
        	17.15	
                Valuation certificates The Lender may obtain at the cost and
                  expense of the Borrowers:

              

      

    

    
      
        	

              	17.15.1	
                one valuation from an Approved Shipbroker in order to certify the Initial Market Value of a Vessel for the purposes of determining the Maximum
                  Vessel Loan Amount;

              

      

    

    
      
        	

              	17.15.2	
                one set of valuations per year from the required number of Approved Shipbrokers (a) for the purposes of determining the relevant percentage referred
                  to in Clause 17.14 (Additional Security) and (b) for the purposes of determining the relevant percentage referred to in Clause 7.6 (Mandatory prepayment on change of ownership of Guarantor);

              

      

    

    
      
        	

              	17.15.3	
                two sets of valuations from the required number of Approved Shipbrokers for the purposes of determining compliance with Clause 20.1 (Guarantor’s
                  Covenants); and

              

      

    

    
      
        	

              	17.15.4	
                following the occurrence of an Event of Default which is continuing, as many sets of valuations per year as may be necessary or desirable to the
                  Lender from the required number of Approved Shipbrokers in order to certify the Market Value of a Vessel and any Fleet Market Value.

              

      

    

    
      Page 45

      
        

    

    
      
        	Section 8	
                Representations, Undertakings and Events of Default

              

      

    

    
      
        	18	
                Representations

              

      

    

    
      
        	18.1	
                Representations Each Borrower makes the representations and
                  warranties set out in this Clause 18 to the Lender:-

              

      

    

    
      
        	

              	18.1.1	
                Status Each of the Obligors:

              

      

    

    
      
        	

              	(a)	
                is duly incorporated and validly existing under the law of its jurisdiction of incorporation; and

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	18.1.2	
                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 18.1.2(a)) 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.

              

      

    

    
      
        	

              	18.1.3	
                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 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.

              

      

    

    
      
        	

              	18.1.4	
                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.

              

      

    

    
      
        	

              	18,1,5	
                Validity and admissibility in evidence All Authorisations
                  required or desirable:

              

      

    

    
      Page 46

      
        

    

    

    

    
      
        	

              	(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 the Lender 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,

              

      

    

    
      
        	

              	(c)	
                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 Schedule 1 (Conditions
                  Subsequent).

              

      

    

    
      
        	

              	18.1.6	
                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.

              

      

    

    
      
        	

              	18.1.7	
                Insolvency No corporate action, legal proceeding or other
                  procedure or step described in Clause 22.1.7 (Insolvency proceedings) or creditors’ process described in Clause 22.1.8 (Creditors’ process) has been taken or, to the knowledge of any Borrower, threatened in relation to an Obligor; and none of the
                  circumstances described in Clause 22.1.6 (Insolvency) applies to an Obligor.

              

      

    

    
      
        	

              	18.1.8	
                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 tax
                  or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except for the 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 registration and fees will be made and paid promptly after the date of the relevant Finance Document.

              

      

    

    
      
        	

              	18.1.9	
                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 (a) 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 (b) of the definition of Qualifying Lender; or

              

      

    

    
      Page 47

      
        

    

    
      
        	

              	(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).

              

      

    

    
      
        	

              	18.1.10	
                No default

              

      

    

    
      
        	

              	(a)	
                No Event of Default and, on the date of this Agreement and on each Utilisation Date, no Default is continuing or Is reasonably likely to result from the advance of
                  any Vessel Loan 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 (howsoever 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.

              

      

    

    
      
        	

              	18.1.11	
                No misleading information Save as disclosed in writing to the
                  Lender prior to the date of this Agreement:

              

      

    

    
      
        	

              	(a)	
                all material information provided to the Lender by or on behalf of any of the Obligors or any other member of the Group 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 the Lender 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 or any other member of the Group (including its advisers) to the Lender was true, complete and
                  accurate in all material respects as at the date it was provided and is not misleading in any respect.

              

      

    

    
      
        	

              	18 1 12	
                Financial statements

              

      

    

    
      
        	

              	(a)	
                The Original Financial Statements were prepared in accordance with GAAP consistently applied unless expressly disclosed to the Lender in writing to the contrary.

              

      

    

    
      
        	

              	(b)	
                The unaudited Original Financial Statements fairly represent the Guarantor’s consolidated financial condition and results of operations for the relevant financial
                  year unless expressly disclosed to the Lender in writing to the contrary prior to the date of this Agreement.

              

      

    

    
      Page 48

      
        

    

    
      
        	

              	(c)	
                The audited Original Financial Statements give a true and fair view of the Guarantor’s consolidated financial condition and results of operations during the
                  relevant financial year unless expressly disclosed to the Lender in writing to the contrary prior to the date of this Agreement.

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(e)	
                The Guarantor’s most recent financial statements delivered pursuant to Clause 19.1 (Financial statements):

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(ii)	
                give a true and fair view of (if audited) or fairly represent (if unaudited) its consolidated financial condition as at the end of, and 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 19.1 (Financial statements) there has been no material adverse change in the business, assets or financial condition of any of the Obligors.

              

      

    

    
      
        	

              	18.1.13	
                No proceedings pending or threatened No litigation, arbitration, or administrative proceedings 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) been started or threatened against any of the Obligors.

              

      

    

    
      
        	

              	18.1.14	
                No breach of laws None of the Obligors or any other member
                  of the Group has breached any law or regulation which breach has or is reasonably likely to have a Material Adverse Effect.

              

      

    

    
      
        	

              	18.1.15	
                Environmental laws

              

      

    

    
      
        	

              	(a)	
                Each of the Obligors and each other member of the Group is in compliance with Clause 21.3 (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 that Obligor or other member of the Group, to have a Material Adverse Effect.

              

      

    

    
      
        	

              	18.1.16	
                Taxation

              

      

    

    
      Page 49

      
        

    

    
      
        	

              	(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 (other than the Managers) is resident for Tax purposes only in its Original Jurisdiction.

              

      

    

    
      
        	

              	18.117	
                Anti-corruption law None of the Obligors, or any member of
                  the Group nor, to the knowledge of any Borrower, any director, officer, agent, employee, Affiliate or other person acting on behalf of any of the Borrowers, an Obligor or any of their Subsidiaries is aware of or has taken any action,
                  directly or indirectly, that would result in a violation by such persons of any applicable anti-corruption and anti-bribery law, including but not limited to, the UK Bribery Act and the FCPA. Furthermore, the Borrowers and, to the
                  knowledge of each Borrower, their Affiliates, any member of the Group and each Obligor have conducted their businesses in compliance with the UK Bribery Act, the FCPA and similar laws, rules or regulations and have instituted and maintain
                  policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

              

      

    

    
      
        	

              	18.1.18	
                No Encumbrance or Financial Indebtedness

              

      

    

    
      
        	

              	(a)	
                No Encumbrance (other than any Permitted Encumbrance) exists over (i) all or any of the present or future assets of a Borrower and (ii) the shares of the Chargor in
                  each Borrower; and

              

      

    

    
      
        	

              	(b)	
                No Borrower has any other Financial Indebtedness outstanding other than as permitted by this Agreement.

              

      

    

    
      
        	

              	18.1.19	
                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.

              

      

    

    
      
        	

              	18.1.20	
                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 the Lender 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,

              

      

    

    
      Page 50

      
        

    

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

    
      
        	

              	(b)	
                The Lender is not and will not 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.

              

      

    

    
      
        	

              	18.1.21	
                Ownership of a Borrower and Chargor Each Borrower is a wholly owned subsidiary of the Chargor and the Chargor is a wholly owned subsidiary of the Guarantor.

              

      

    

    
      
        	

              	18.1.22	
                Disclosure of material facts No Borrower is aware of any
                  material facts or circumstances which have not been disclosed to the Lender and which might, if disclosed, have adversely affected the decision of a person considering whether or not to make loan facilities of the nature contemplated by this Agreement available to the Borrowers.

              

      

    

    
      
        	

              	18.1.23	
                Completeness of Relevant Documents The copies of any
                  Relevant Documents provided or to be provided by the Borrowers to the Lender in accordance with Clause 4 (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
                  Lender.

              

      

    

    
      
        	

              	18.1.24	
                No Immunity No Obligor or any of its assets is immune to any
                  legal action or proceeding.

              

      

    

    
      
        	

              	18.1.25	
                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 (2005/EC/60) of the European Parliament and of the Council of the European
                  Communities.

              

      

    

    
      
        	

              	18.1.26	
                Sanctions None of the Obligors, or any of their respective
                  Subsidiaries or any director or officer, or any employee, agent, or Affiliate, of any of the Obligors or any of their respective Subsidiaries is an individual or entity (“Person”) that is, or is owned or controlled by Persons that are, (i) the target of any sanctions administered or enforced by the US Department of the Treasury’s Office of Foreign Assets Control, the
                  US Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury or the Hong Kong Monetary Authority, or (ii) located, organised or resident in a country or territory that is, or whose government is,
                  the target of Sanctions, including, without limitation, the Crimea region, Cuba, Iran, North Korea, Sudan and Syria.

              

      

    

    
      Page 51

      
        

    

    
      
        	

              	18.1.27	
                US Tax Obligor No Obligor is a US Tax Obligor.

              

      

    

    
      
        	18.2	
                Repetition Each Repeating Representation is deemed to be
                  repeated by each Borrower by reference to the facts and circumstances then existing on the date of each Utilisation Request, on each
                  Utilisation Date, on the first day of each Interest Period and, in the case or those contained in Clauses 18.1.12(d) and 18.1.12(f)
                  (Financial statements) and for so long as any amount is outstanding under the Finance Documents or any part of the Loan is undrawn and available, on each day.

              

      

    

    
      
        	19	
                Information Undertakings

              

      

    

    The undertakings in this Clause 19 remain in force for the duration of the Facility Period.

    
      
        	19.1	
                Financial statements Each Borrower shall procure that the
                  Guarantor supplies to the Lender:

              

      

    

    
      
        	

              	19.1.1	
                as soon as the same become available, but in any event within 180 days after the end of each of the Guarantor’s financial years, the Guarantor’s consolidated
                  audited financial statements (including profit and loss accounts and balance sheets) for that financial year; and

              

      

    

    
      
        	

              	19.1.2	
                as soon as the same become available, but in any event within 90 days after the end of each half year during each of the Guarantor’s financial years, the
                  Guarantor’s consolidated unaudited semi-annual financial statements for that half year.

              

      

    

    
      
        	19.2	
                Compliance Certificate

              

      

    

    
      
        	

              	19.2.1	
                Each Borrower shall procure that the Guarantor supplies to the
                  Lender, with each set of its annual consolidated financial statements delivered pursuant to Clause 19.1.1 (Financial statements) and
                  each set of its semi-annual consolidated financial statements delivered pursuant to Clause 19.1.2 (Financial statements), a
                  Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 20 (Financial Covenants) as at
                  the date as at which those financial statements were drawn up.

              

      

    

    
      
        	

              	19.2.2	
                Each Compliance Certificate shall be signed by two directors of each Borrower and the Guarantor shall be reported on by the Guarantor’s auditors in the form agreed
                  by the Borrowers, the Guarantor and the Lender before the date of this Agreement.

              

      

    

    
      
        	19.3	
                Requirements as to financial statements

              

      

    

    Each set of financial statements delivered by a Borrower or the Guarantor (as applicable) under
      Clause 19.1 (Financial statements):

    
      
        	

              	19.3.1	
                shall be certified by a director of the Guarantor as giving a true and fair view of (in the case of annual financial statements), or fairly representing (in other
                  cases), its financial condition as at the date as at which those financial statements were drawn up;

              

      

    

    
      Page 52

      
        

    

    
      
        	

              	19.3.2	
                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 Lender that there has been a change in GAAP, the accounting practices or reference periods and its auditors deliver to the Lender:

              

      

    

    
      
        	

              	(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 Lender, to enable the Lender to determine whether Clause 20 (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.

    
      
        	19.4	
                Information: miscellaneous Each Borrower shall supply to the
                  Lender:

              

      

    

    
      
        	

              	19.4.1	
                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);

              

      

    

    
      
        	

              	19.4.2	
                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;

              

      

    

    
      
        	

              	19.4.3	
                promptly, such information as the Lender may reasonably require about the Charged Property and compliance of the Obligors with the terms of any Security Document
                  including without limitation cash flow analyses and details of the operating costs of any Vessel; and

              

      

    

    
      
        	

              	19.4.4	
                promptly on request, such further information regarding the financial condition, affairs, commitments, 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 and an up to date copy of its shareholders’ register (or
                  equivalent in its Original Jurisdiction)) as the Lender may reasonably request.

              

      

    

    
      
        	19.5	
                Notification of default

              

      

    

    
      
        	

              	19.5.1	
                Each Borrower shall notify the Lender of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence.

              

      

    

    
      
        	

              	19.5.2	
                Promptly upon a request by the Lender, each Borrower shall supply to the Lender a certificate signed by two of its directors or senior officers on its

              

      

    

    
      Page 53

      
        

    

    

    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).

    
      
        	19.6	
                “Know your customer” checks If:

              

      

    

    
      
        	

              	196.1	
                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;

              

      

    

    
      
        	

              	19.6.2	
                any change in the status of an Obligor after the date of this Agreement; or

              

      

    

    
      
        	

              	19.6.3	
                a proposed assignment or transfer by the Lender of any of its rights and obligations under this Agreement; or

              

      

    

    
      
        	

              	19.6.4	
                any of the Lender’s internal compliance rules, policies and procedures, obliges the Lender (or, in the case of Clause 19.6.3, 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, the Guarantor or any other member of the Group which has a loan with the Lender
                  and has issued registered shares shall promptly upon the request of the Lender, supply, or procure the supply of, such documentation and other evidence as is requested by the Lender at its absolute satisfaction, prior to the date of this
                  Agreement (for itself or, in the case of the event described in Clause 19.6.3, on behalf of any prospective new Lender) in order for the Lender or, in the case of the event described in Clause 19.6,3, any prospective new Lender to carry
                  out and be satisfied it has complied with or has refreshed all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

              

      

    

    
      
        	20	
                Financial Covenants

              

      

    

    
      
        	20.1	
                Guarantor’s Covenants Each Borrower shall procure that the
                  Guarantor shall maintain at all times during the Facility Period:

              

      

    

    
      
        	

              	20.1.1	
                Maximum Leverage not higher than 75%; and

              

      

    

    
      
        	

              	20.1.2	
                Liquidity of an amount of not less than:

              

      

    

    
      
        	

              	(a)	
                $200,000 in respect of each Fleet Vessel from the date of this Agreement up to and including 29 September 2020; and

              

      

    

    
      
        	

              	(b)	
                $300,000 in respect of each Fleet Vessel from 30 September 2020 and throughout the remainder of the Facility Period; and

              

      

    

    
      
        	

              	20.1.3	
                Net Worth of not less than fifteen million dollars ($15,000,000).

              

      

    

    
      
        	20.2	
                Cash Collateral Amount The Borrowers shall maintain in the
                  Cash Collateral Account:

              

      

    

    
      
        	

              	20.2.1	
                an amount of $300,000 during the period commencing on the first Utilisation Date up to but excluding the second Utilisation Date, or, if only one Utilisation is
                  made, throughout the remainder of the Facility Period;

              

      

    

    
      Page 54

      
        

    

    
      
        	

              	20.2.2	
                an amount of $600,000 during the period commencing on the second Utilisation Date up to but excluding the third Utilisation Date, or, if only two Utilisations are
                  made, throughout the remainder of the Facility Period; and

              

      

    

    
      
        	

              	20.2.3	
                an amount of $900,000 during the period commencing on the third Utilisation Date and throughout the remainder of the Facility Period,

              

      

    

    in each case, such amount to be pledged In favour of the Lender free of any Encumbrances other than in favour of
      the Lender.

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

    “Cash” means,
      in respect of the Guarantor, cash at bank or in hand which is not subject to any Encumbrance (other than in favour of the Lender or the other financiers of the Group).

    “Fleet Market
        Value” means the value of a Fleet Vessel conclusively determined by the arithmetic average of two valuations obtained by two Approved Shipbrokers selected and appointed by the Borrowers on behalf of the Lender and approved by and reporting
      to the Lender on the basis of a charter free sale for prompt delivery and free of encumbrances for cash at arm’s length on normal commercial terms as between a willing seller and a willing buyer and evidenced by two valuations of that Fleet Vessel
      addressed to the Lender certifying a value for that Fleet Vessel.

    “Fleet Vessels” means
      any vessel (including the Vessels) from time to time wholly owned by a Subsidiary of the Guarantor (directly or indirectly) and each a “Fleet Vessel”.

    “Liquidity” means,
      in respect of each period during which the consolidated financial statements delivered pursuant to Clause 19.1 (Financial statements) are
      delivered by the Guarantor, Cash, as shown in the applicable financial statements of the Guarantor, for such accounting period and determined in accordance with GAAP.

    “Maximum Leverage”
      means, in respect of each period during which financial statements are required to be delivered pursuant to Clause 19.1 (Financial statements), the
      ratio of Total Consolidated Liabilities, to Value Adjusted Total Assets, as shown in the applicable consolidated financial statements of the Guarantor for such accounting period and determined in accordance with GAAP.

    “Net Worth” means
      equity payments already advanced in respect of the Fleet Vessel less accumulated dividends plus retained earnings of the Fleet Vessels, as each such term is defined in the applicable consolidated financial statements (as provided in Clause 19.1 (Financial statements)) for the Guarantor determined in accordance with GAAP.

    “Total Consolidated
        Liabilities” means, in respect of the Guarantor at any time on a consolidated basis, the ratio of total indebtedness (long-term debt including the current portion of long-term debt) of the Guarantor which would be included in the applicable
      consolidated financial statements of the Guarantor as total liabilities in accordance with GAAP.

    
      Page 55

      
        

    

    “Total Assets” means
      the amount of total assets of the Guarantor at any time on a consolidated basis which would be included in the applicable consolidated financial statements (as provided in Clause 19.1 (Financial statements)) of the Guarantor as total assets determined in accordance with GAAP.

    “Value Adjusted
        Total Assets” means the Total Assets of the Guarantor as adjusted for the difference of the book value of the Fleet Vessels (as evidenced in the most recent financial statements (pursuant to Clause 19.1 (Financial statements)) and the Fleet Market Value.

    
      
        	21	
                General Undertakings

              

      

    

    The undertakings in this Clause 21 remain in force for the duration of the Facility Period.

    
      
        	21.1	
                Authorisations Each Borrower shall promptly:

              

      

    

    
      
        	

              	21.1.1	
                obtain, comply with and do all that is necessary to maintain in full force and effect;

              

      

    

    
      
        	

              	21.1.2	
                supply certified copies to the Lender 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.

              

      

    

    
      
        	21.2	
                Compliance with laws

              

      

    

    
      
        	

              	21.2.1	
                Each Borrower shall comply (and shall procure that each other Obligor, each other member of the Group and each Affiliate of any of them shall comply), in all
                  respects with all laws to which it may be subject, if (except as regards Sanctions, to which Clause 21.2.2 applies, and anti-corruption laws to which Clause 20.5 applies) failure so to comply has or is reasonably likely to have a Material
                  Adverse Effect.

              

      

    

    
      
        	

              	21.2.2	
                Each Borrower shall comply (and shall procure that each other Obligor, each other member of the Group and each Affiliate of any of them shall comply) in all
                  respects with all Sanctions.

              

      

    

    
      
        	21.3	
                Environmental compliance Each Borrower shall:

              

      

    

    
      
        	

              	21.3.1	
                comply with all Environmental Laws;

              

      

    

    
      Page 56

      
        

    

    
      
        	

              	21.3.2	
                obtain, maintain and ensure compliance with all requisite Environmental Approvals; and

              

      

    

    
      
        	

              	21.3.3	
                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.

    
      
        	21.4	
                Environmental Claims

              

      

    

    Each Borrower shall promptly upon becoming aware of the same, inform the Lender in writing of:

    
      
        	

              	21.4.1	
                any Environmental Claim against any of the Obligors or any other member of the Group which is current, pending or threatened; and

              

      

    

    
      
        	

              	21.4.2	
                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.

    21.5            Anti-corruption law

    
      
        	

              	21.5.1	
                No part of the proceeds of the Loan will be used, directly or indirectly, for any payments that could constitute a violation of any applicable anti-bribery law,
                  including, without limitation the UK Bribery Act, the FCPA or other similar legislation in other jurisdictions.

              

      

    

    
      
        	

              	21.5.2	
                Each Borrower shall (and shall procure that each other Obligor, each other member of the Group and each Affiliate of any of them shall):

              

      

    

    
      
        	

              	(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.

              

      

    

    
      
        	21.6	
                Taxation

              

      

    

    
      
        	

              	21.6.1	
                Each Borrower shall (and shall procure that each other Obligor shall) 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 Lender under Clause 19.1 (Financial statements); and

              

      

    

    
      Page 57

      
        

    

    
      
        	

              	(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.

              

      

    

    
      
        	

              	21.6.2	
                No Borrower may (and each Borrower shall procure that no other Obligor may) change its residence for Tax purposes.

              

      

    

    
      
        	21.7	
                Evidence of good standing Each Borrower will from time to
                  time if requested by the Lender provide the Lender with evidence in form and substance satisfactory to the Lender that the Obligors and all corporate shareholders of any of the Obligors (other than in respect of the Guarantor’s corporate
                  shareholders) remain in good standing.

              

      

    

    
      
        	21.8	
                Pari passu ranking Each Borrower shall (and shall procure
                  that each other Obligor shall) ensure that at all times any unsecured and unsubordinated claims of the Lender against it under the Finance Documents rank at least pan 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.

              

      

    

    
      
        	21.9	
                Negative pledge

              

      

    

    
      
        	

              	21.9.1	
                Each Borrower shall:

              

      

    

    
      
        	

              	(a)	
                not create nor permit to subsist any Encumbrance (other than any Permitted Encumbrance) over any of its assets; and

              

      

    

    
      
        	

              	(b)	
                procure that the Chargor will not create nor permit to subsist any Encumbrance over the shares of the Chargor in a Borrower.

              

      

    

    
      
        	

              	21.9.2	
                No Borrower shall:

              

      

    

    
      
        	

              	(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;

              

      

    

    
      
        	

              	(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.

    
      
        	21.10	
                Disposals

              

      

    

    
      
        	

              	21.10.1	
                No Borrower shall (and each Borrower shall procure that no other Obligor other than the Guarantor will) 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.

              

      

    

    
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              	21.10.2	
                Each Borrower shall procure that the Chargor shall not enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or
                  involuntary to sell, transfer or otherwise dispose of its shares in a Borrower.

              

      

    

    
      
        	21.11	
                Arm’s length basis

              

      

    

    
      
        	

              	21.11.1	
                No Borrower shall enter into any transaction with any person except on arm’s length terms and for full market value.

              

      

    

    
      
        	

              	21.11.2	
                Fees, costs and expenses payable under the Relevant Documents in the amounts set out in the Relevant Documents delivered to the Lender under Clause 4.1 (Initial conditions precedent) or agreed by the Lender shall not be a breach of this Clause 21.11.

              

      

    

    
      
        	21.12	
                Merger No Borrower shall (and each Borrower shall procure
                  that no other Obligor will) enter into any amalgamation, demerger, merger, consolidation or corporate reconstruction without the prior written consent of the Lender.

              

      

    

    
      
        	21.13	
                Change of business No Borrower shall (and each Borrower
                  shall procure that no other Obligor will) make any substantial change to the general nature of its business from that carried on at the date of this Agreement.

              

      

    

    
      
        	21.14	
                No other business No Borrower shall (and each Borrower shall
                  procure that no other Obligor other than the Guarantor will) engage in any business other than the ownership, operation, chartering and management of a Vessel.

              

      

    

    
      
        	21.15	
                No acquisitions No Borrower shall 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.

              

      

    

    
      
        	21.16	
                No Joint Ventures No Borrower shall:

              

      

    

    
      
        	

              	21.16.1	
                enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

              

      

    

    
      
        	

              	21.16.2	
                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).

              

      

    

    
      
        	21.17	
                No borrowings No Borrower shall incur or allow to remain outstanding any Financial Indebtedness (except for the Loan).

              

      

    

    
      
        	21.18	
                No substantial liabilities Except in the ordinary course of
                  business, no Borrower shall incur any liability to any third party which is of a substantial nature.

              

      

    

    
      
        	21.19	
                No loans or credit No Borrower shall, without the Lender’s
                  prior written consent, be a creditor in respect of any Financial Indebtedness unless it is a loan made in the ordinary course of business in connection with the chartering, operation or repair of its Vessel.

              

      

    

    
      
        	21.20	
                No guarantees or indemnities No Borrower shall incur or allow to remain outstanding any guarantee in respect of any obligation of any person.

              

      

    

    
      Page 59

      
        

    

    
      
        	21.21	
                No dividends

              

      

    

    
      
        	

              	21.21.1	
                No Borrower shall (and each Borrower shall procure that the Guarantor will 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 the Borrower’s share capital and the Guarantor’s common share capital (or any class of the Borrower’s share capital and any class of the Guarantor’s common share capital (as applicable));

              

      

    

    
      
        	

              	(b)	
                repay or distribute any dividend or share premium reserve in respect of the Borrower and repay or distribute any dividend or common share premium reserve in respect
                  of the Guarantor (as applicable); or

              

      

    

    
      
        	

              	(c)	
                redeem, repurchase, defease, retire or repay any of the Borrower’s share capital and the Guarantor’s common share capital (as applicable) or resolve to do so,

              

      

    

    following (I) any breach of Clause 17.14 (Additional Security), (ii) the occurrence and during the continuation of an Event of Default or (iii) where the making or payment of such dividend or distribution would result in the occurrence of an Event of
      Default.

    
      
        	21.22	
                Ownership and management of a Borrower No change in the
                  management or the legal or beneficial ownership of a Borrower shall occur from that advised to the Lender by the Borrowers at the date of this Agreement. Subject to Clause 7.6 (Mandatory prepayment on change of ownership of Guarantor), for the avoidance of doubt, the Lender consents and agrees to any changes relating to the shareholders of the Guarantor’s trading
                  shares in the normal course of business,

              

      

    

    
      
        	21.23	
                No change of CEO The Borrowers shall ensure (and shall
                  procure that the Guarantor shall ensure) that throughout the Facility Period no change in the chief executive officer of the board of directors and/or the chairman of the Guarantor shall occur, without the Lender’s prior written consent.

              

      

    

    
      
        	21.24	
                Inspection of records Each Borrower will permit the
                  inspection of its financial records and accounts from time to time by the Lender or its nominee.

              

      

    

    
      
        	21.25	
                No change in Relevant Documents Without the prior written
                  consent of the Lender, no Borrower shall (and each Borrower shall procure that no other Obligor will) materially amend (and for the avoidance of doubt, but without limitation, any amendment in respect of the fees (but excluding any
                  amendment in respect of the fees already agreed under the Management Agreements), reduction of hire, duration of a Charter, termination events of a Charter and governing law of any of the Relevant Documents will be considered material),
                  vary, novate, supplement, supersede, waive or terminate any term of, any of the Relevant Documents which are not Fknance Documents, or any other document delivered to the Lender pursuant to Clause 4.1 (Initial conditions precedent) or Clause 4.2 (Further
                    conditions precedent) or Clause 4.3 (Conditions subsequent).

              

      

    

    
      Page 60

      
        

    

    
      
        	21.26	
                Sanctions No Borrower will, directly or indirectly, use the
                  proceeds of the Loan, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, (i) to fund any activities or business of or with any Person, or in any country or territory,
                  that, at the time of such funding, is, or whose government is, the target of Sanctions or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Loan, whether as
                  underwriter, advisor, investor or otherwise).

              

      

    

    
      
        	21.27	
                Banking operations Each Borrower shall conduct all banking
                  operations in connection with its Vessel through the Lender or any other branch nominated by the Lender in its discretion.

              

      

    

    
      
        	21.28	
                Vessels’ Trading No Borrower shall allow its Vessel to trade
                  in areas prohibited by (a) the law applicable to that Vessel’s flag, (b) the applicable law of the country of incorporation of that Borrower and (c) the applicable law of the nationality of the officers and crew of that Vessel.

              

      

    

    
      
        	21.29	
                No change of Vessels’ ownership or management There shall be
                  no change in the ownership or management of a Vessel, without the Lender’s prior written consent.

              

      

    

    
      
        	21.30	
                ISM Code compliance Each Borrower shall comply and shall
                  procure that each of the Guarantor and the Manager comply with the ISM Code.

              

      

    

    
      
        	21.31	
                Further assurance

              

      

    

    
      
        	

              	21.31.1	
                Each Borrower shall (and shall procure that each other Obligor shall) promptly do all such acts or execute all such documents (including assignments, transfers,
                  mortgages, charges, notices and instructions) as the Lender may reasonably specify (and in such form as the Lender may reasonably require in favour of the Lender 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 Lender or the Secured Parties provided by
                  or pursuant to the Finance Documents or by law;

              

      

    

    
      
        	

              	(b)	
                to confer on the Lender or confer on the Secured Parties an Encumbrance over any property and assets of that Borrower (or that other Obligor 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, in respect of which any Encumbrance has become
                  enforceable following the occurrence of an Event of Default which is continuing.

              

      

    

    
      Page 61

      
        

    

    
      
        	

              	21.31.2	
                Each Borrower shall (and shall procure that each other Obligor shall) 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 Lender or the Secured Parties by or pursuant to the Finance Documents.

              

      

    

    
      
        	22	
                Events of Default

              

      

    

    
      
        	22.1	
                Events of Default Each of the events or circumstances set out
                  in this Clause 22.1 is an Event of Default.

              

      

    

    
      
        	

              	22.1.1	
                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 (2) Business Days of its due date.

              

      

    

    
      
        	

              	22.1.2	
                Other specific obligations

              

      

    

    An Obligor does not comply with any obligation in a Finance Document relating to (a) the Insurances or (b) Clause
      17.14 (Additional security).

    
      
        	

              	22.1.3	
                Other obligations

              

      

    

    
      
        	

              	(a)	
                Art Obligor does not comply with any provision of a Finance Document (other than those referred to in Clause 22.1.1 (Non-payment) and Clause 22.1.2 (Other specific obligations).

              

      

    

    
      
        	

              	(b)	
                NO Event of Default under this Clause 22.1.3 will occur if the failure to comply is capable of remedy and is remedied within ten (10) Business Days of the earlier
                  of (i) the Lender giving notice to the Borrowers and (ii) the Borrowers becoming aware of the failure to comply.

              

      

    

    
      
        	

              	22.1.4	
                Misrepresentation Any representation or statement made or
                  deemed to be repeated 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.

              

      

    

    
      
        	

              	22.1.5	
                Cross default Any Financial Indebtedness of an Obligor
                  (other than the Managers):

              

      

    

    
      
        	

              	(a)	
                is not paid when due nor within any originally applicable grace period; or

              

      

    

    
      Page 62

      
        

    

    
      
        	

              	(b)	
                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); or

              

      

    

    
      
        	

              	(c)	
                is capable of being declared by a creditor to be due and payable prior to its specified maturity as a result of such an event.

              

      

    

    No Event of Default will occur under this Clause 22.1.5 if the aggregate amount of Financial Indebtedness or
      commitment for Financial Indebtedness falling within (a) to (c) is less than USD1,000,000 (or its equivalent in any other currency or currencies).

    
      
        	

              	22.1.6	
                Insolvency

              

      

    

    
      
        	

              	(a)	
                An Obligor is unable or admits inability to pay its debts as they fall due, is deemed to, or is declared to, be unable to pay its debts under applicable law,
                  suspends or threatens to suspend making payments on any of its debts, or, 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 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.

              

      

    

    
      
        	

              	22.1.7	
                Insolvency proceedings Any corporate action, legal
                  proceedings or other procedure or step is taken for:

              

      

    

    
      
        	

              	(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;

              

      

    

    
      
        	

              	(b)	
                a composition, compromise, assignment or arrangement with any creditor of an Obligor ;

              

      

    

    
      
        	

              	(c)	
                the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager, or trustee or other similar officer in respect of an Obligor
                  or any of its assets; or

              

      

    

    
      
        	

              	(d)	
                enforcement of any Encumbrance over any assets of an Obligor,

              

      

    

    or any analogous procedure or step is taken in any jurisdiction.

    This Clause 22.1.7 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged,
      stayed or dismissed within 30 days of commencement.

    
      Page 63

      
        

    

    
      
        	

              	22.1.8	
                Creditors’ process Any expropriation, attachment,
                  sequestration, distress or execution affects any asset or assets of a Borrower, the Guarantor or the Chargor.

              

      

    

    
      
        	

              	22.1.9	
                Ownership of a Borrower A Borrower is not or ceases to be a
                  100% directly owned Subsidiary of the Chargor.

              

      

    

    
      
        	

              	22.1.10	
                Change of chairman or CEO of Guarantor Mr Aristeidis J.
                  Pittas ceases to be throughout the Facility Period the chief executive officer of the board of directors and/or the chairman of the Guarantor.

              

      

    

    
      
        	

              	22.1.11	
                Delisting of Guarantor The Guarantor is delisted for any
                  reason whatsoever from the Nasdaq stock exchange.

              

      

    

    
      
        	

              	22.1.12	
                Unlawfulness and invalidity

              

      

    

    
      
        	

              	(a)	
                It is or becomes unlawful for an Obligor to perform any of
                  its obligations under the Finance Documents to which it is a party 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 to which it is a party 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 Lender 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 the Lender) to be ineffective,

              

      

    

    
      
        	

              	22.1.13	
                Cessation of business An Obligor ceases, or threatens to
                  cease, to carry on all or a substantial part of its business,

              

      

    

    
      
        	

              	22.1.14	
                Change in management, ownership or control of a Borrower
                  There is any change in the management, beneficial ownership or control of a Borrower from that advised to the Lender by that Borrower at the date of this Agreement. Subject to Clause 7.6 (Mandatory prepayment on change of ownership of Guarantor), for the avoidance of doubt, the Lender consents and agrees to any changes relating to the shareholders of the Guarantor’s
                  trading shares in the normal course of business and confirms that such changes do not violate the terms of this Agreement.

              

      

    

    
      
        	

              	22.1.15                  	Expropriation	The authority or ability of an Obligor 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 (excluding requisition of hire not involving requisition of title) or other person in relation to an Obligor or any of its assets.

      

    

    
      Page 64

      
        

    

    
      
        	

              	22.1.16	
                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 22.1.16 (c), 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 Lender, likely to have a material adverse effect on the interests of the Lender under the Finance Documents.

              

      

    

    
      
        	

              	(c)	
                The Management Agreement 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 Lender.

              

      

    

    
      
        	

              	22.1.17	
                Conditions subsequent Any of the conditions referred to in
                  Clause 4.3 (Conditions subsequent) is not satisfied within the time reasonably required by the Lender.

              

      

    

    
      
        	

              	22.1.18	
                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 the Lender) 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 Lender considers is, or may be, prejudicial to the interests of the Lender, or ceases to
                  remain in full force and effect.

              

      

    

    
      
        	

              	22.1.19	
                Reduction of capital An Obligor (other than the Guarantor)
                  reduces its issued or subscribed capital.

              

      

    

    
      
        	

              	22.1.20	
                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 Lender 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 22.1.20 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 Lender in its discretion that any such refusal or dispute is
                  likely to occur; and

              

      

    

    
      Page 65

      
        

    

    

    
      
        	

              	(c)	
                payment of all insurance proceeds in respect of the Total Loss is made in full to the Lender within 180 days of the occurrence of the casualty giving rise to the
                  Total Loss in question or such longer period as the Lender may in its discretion agree.

              

      

    

    
      
        	

              	22.1.21	
                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.

              

      

    

    
      
        	

              	22.1.22	
                War The country of registration of a Vessel becomes involved
                  in war (whether or not declared) or civil war or is occupied by any other power and the Lender in its discretion considers that, as a result, the security conferred by any of the Security Documents is materially prejudiced and the
                  relevant Borrower fails to comply with the Lender’s request to (a) change the flag of its Vessel to a country acceptable to the Lender in its absolute discretion by paying promptly any costs and expenses related to such registration under
                  the new flag, (b) provide any additional documentation including any additional security documents required pursuant to such registration under the new flag and (c) record a substitute mortgage over its Vessel and any additional security
                  required pursuant to such recordation within 15 Business Days.

              

      

    

    
      
        	

              	22.1.23	
                Notice of determination The Guarantor gives notice to the
                  Lender to determine any obligations under the Guarantee.

              

      

    

    
      
        	

              	22.1.24	
                Litigation Any litigation, arbitration, administrative,
                  governmental, regulatory or other investigations, proceedings or disputes are commenced or threatened in relation to the Relevant Documents or the transactions contemplated in the Relevant Documents or against an Obligor or its assets
                  which have or are reasonably likely to have a Material Adverse Effect.

              

      

    

    
      
        	

              	22.1.25	
                Material adverse change Any event or circumstance occurs
                  which the Lender reasonably believes has or is reasonably likely to have a Material Adverse Effect.

              

      

    

    
      
        	

              	22.1.26	
                Sanctions

              

      

    

    
      
        	

              	(a)	
                Any of the Obligors, any other member of the Group or any Affiliate of any of them becomes a Prohibited Person or becomes owned or controlled by, or acts directly
                  or indirectly on behalf of, a Prohibited Person or any of such persons becomes the owner or controller of a Prohibited Person.

              

      

    

    
      
        	

              	(b)	
                Any proceeds of the Loan are made available, directly or indirectly, to or for the benefit of a Prohibited Person or otherwise is, directly or indirectly, applied
                  in a manner or for a purpose prohibited by Sanctions.

              

      

    

    
      
        	

              	(c)	
                Any of the Obligors, any other member of the Group or any Affiliate of any of them is not in compliance with all Sanctions.

              

      

    

    
      Page 66

      
        

    

    
      
        	22.2	
                Acceleration On and at any time after the occurrence of an
                  Event of Default which is continuing the Lender may:

              

      

    

    
      
        	

              	22.2.1	
                by notice to the Borrowers, cancel the availability of the Loan, at which time it shall immediately be cancelled;

              

      

    

    
      
        	

              	22.2.2	
                by notice to the Borrowers, declare that the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents are
                  immediately due and payable, at which time they shall become immediately due and payable;

              

      

    

    
      
        	

              	22.2.3	
                by notice to the Borrowers, declare that the Loan is payable on demand, at which time it shall immediately become payable on demand by the Lender; and/or

              

      

    

    
      
        	

              	22.2.4	
                exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

              

      

    

    
      Page 67

      
        

    

    
      
        	Section 9	
                Changes to Parties

              

      

    

    
      
        	23	
                Changes to the Lender

              

      

    

    
      
        	23.1	
                Assignments and transfers by the Lender Subject to this
                  Clause 23, the Lender may:

              

      

    

    
      
        	

              	23.1.1	
                assign any of its rights; or

              

      

    

    
      
        	

              	23.1.2	
                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”).

              

      

    

    
      
        	23.2	
                Conditions of assignment or transfer

              

      

    

    
      
        	

              	23.2.1	
                The Lender shall not be required to consult with the Borrowers or obtain the Borrowers’ prior consent in connection with an assignment or transfer pursuant to
                  Clause 23.1 (Assignments and transfers by the Lender).

              

      

    

    
      
        	

              	23.2.2	
                If:

              

      

    

    
      
        	

              	(a)	
                the 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, the Borrowers would be obliged to make a payment to the New Lender or
                  the Lender acting through its new Facility Office under Clause 12 (Tax Gross Up and Indemnities) or Clause 13 (Increased Costs), then the New Lender or the Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the
                  same extent as the Lender or the Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.

              

      

    

    
      
        	23.3	
                Limitation of responsibility of Lender

              

      

    

    
      
        	

              	23.3.1	
                Unless expressly agreed to the contrary, the 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 of its obligations under the Relevant Documents or any other documents; or

              

      

    

    
      Page 68

      
        

    

    
      
        	

              	(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.

    
      
        	

              	23.3.2	
                Each New Lender confirms to the Lender 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 its related
                  entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the 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 its related entities whilst any amount is or may be outstanding
                  under the Finance Documents or any part of the Loan is undrawn and available.

              

      

    

    
      
        	

              	23.3.3	
                Nothing in any Finance Document obliges the 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 23; 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.

              

      

    

    
      
        	23.4	
                Securitisation The Lender may disclose the size and term of
                  the Loan and the name of each of the Obligors to any investor or potential investor in a securitisation (or similar transaction of broadly equivalent economic effect) of the Lender’s rights or obligations under the Finance Documents.

              

      

    

    
      
        	24	
                Changes to the Obligors

              

      

    

    
      
        	24.1	
                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.

              

      

    

    
      Page 69

      
        

    

    
      
        	Section 10	
                The Lender’s Business

              

      

    

    
      
        	25	
                Conduct of Business by the Lender

              

      

    

    No provision of this Agreement will:

    
      
        	25.1	
                interfere with the right of the Lender to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

              

      

    

    
      
        	25.2	
                oblige the Lender to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

              

      

    

    
      
        	25.3	
                oblige the Lender to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

              

      

    

    
      Page 70

      
        

    

    
      
        	Section 11	
                Administration

              

      

    

    
      
        	26	
                Payment Mechanics

              

      

    

    
      
        	26.1	
                Payments to the Lender On each date on which an Obligor is required to make a payment under a Finance Document, that Obligor shall make the same available to the
                  Lender for value on the due date at the time and, in such funds, as required by the Finance Documents or, if not specified therein, as specified by the Lender 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 Lender specifies.

    
      
        	26.2	
                Partial payments

              

      

    

    
      
        	

              	26.2.1	
                If the Lender receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Lender shall
                  apply that payment towards the obligations of that Obligor under the Finance Documents, in the following order:

              

      

    

    
      
        	

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

              

      

    

    
      
        	

              	(b)	
                second, in or towards payment of any accrued interest, fee or commission due but unpaid under this Agreement;

              

      

    

    
      
        	

              	(c)	
                third, in or towards payment of any principal due but unpaid under this Agreement;

              

      

    

    
      
        	

              	(d)	
                fourth, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

              

      

    

    
      
        	

              	26.2.2	
                The Lender may vary the order set out in Clauses 26.2.1(b) to 26.2.1(d).

              

      

    

    
      
        	

              	26.2.3	
                Clauses 26.2.1 and 26.2.2 will override any appropriation made by an Obligor.

              

      

    

    
      
        	26.3	
                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, counterclaim, taxes, stamp duties, levies of any governmental or other authority.

              

      

    

    
      
        	26.4	
                Business Days Any payment 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.

    
      Page 71

      
        

    

    
      
        	26.5	
                Currency of account

              

      

    

    
      
        	

              	26.5.1	
                Subject to Clauses 26.5.2 to 26.5.5, dollars is the currency of account and payment for any sum due from an Obligor under any Finance Document.

              

      

    

    
      
        	

              	26.5.2	
                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 on its due date.

              

      

    

    
      
        	

              	26.5.3	
                Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

              

      

    

    
      
        	

              	26.5.4	
                Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

              

      

    

    
      
        	

              	26.5.5	
                Any amount expressed to be payable in a currency other than dollars shall be paid in that other currency.

              

      

    

    
      
        	26.6	
                Control account The Lender shall open and maintain on its
                  books a control account in the name 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 26.6 and those entries will, in the absence of manifest error, be
                  conclusive and binding.

              

      

    

    
      
        	26.7	
                Disruption to payment systems etc. If either the Lender
                  determines in its discretion that a Disruption Event has occurred or the Lender is notified by the Borrowers that a Disruption Event has occurred which negatively affects the ability of the Borrowers to repay the Loan and at the same has
                  a Material Adverse Effect:

              

      

    

    
      
        	

              	26.7.1	
                the Lender 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 Lender may deem necessary in the circumstances;

              

      

    

    
      
        	

              	26.7.2	
                the Lender shall not be obliged to consult with the Borrowers in relation to any changes mentioned in Clause 26.7.1 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;

              

      

    

    
      
        	

              	26.7.3	
                any such changes agreed upon by the Lender 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; and

              

      

    

    
      
        	

              	26.7.4	
                the Lender shall not be liable for any damages, costs or losses 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 Lender) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 26.7.

              

      

    

    
      Page 72

      
        

    

    
      
        	26.8	
                Replacement of Screen Rate

              

      

    

    If a Screen Rate Replacement Event has occurred in relation to any 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 in relation to that currency in place of (or in addition to) the affected Screen Rate; 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;

              

      

    

    
      
        	

              	(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 Lender and the Borrowers. For the purpose of this Agreement:

    “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

              

      

    

    
      Page 73

      
        

    

    
      
        	

              	(ii)	
                any Relevant Nominating Body,

              

      

    

    and if replacements have, at the relevant time, been formally designated, nominated or recommended under both
      paragraphs, the “Replacement Benchmark” will be the replacement under paragraph (ii) above;

    
      
        	

              	(b)	
                in the opinion of the Lender and the 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 Lender 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 Lender and the Borrowers materially changed;

              

      

    

    (b)

    (i)

    
      
        	

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

              

      

    

    
      
        	

              	(B)	
                Information is published in any order, decree, notice, petition or filing, however described, 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)	
                the administrator of that Screen Rate determines that that Screen Rate should be calculated in accordance with its reduced

              

      

    

    
      Page 74

      
        

    

    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 Lender 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 15 Business Days; or

              

      

    

    
      
        	

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

              

      

    

    
      
        	27	
                Set-Off

              

      

    

    
      
        	27.1	
                Finance Documents The Lender may set off any matured
                  obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by the Lender) against any matured obligation owed by the Lender to that Obligor, regardless of the place of payment, booking branch or currency
                  of either obligation. If the obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

              

      

    

    
      
        	28	
                Notices

              

      

    

    
      
        	28.1	
                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.

              

      

    

    
      
        	28.2	
                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:

              

      

    

    
      
        	

              	28.2.1	
                in the case of each Borrower, that identified with its name below; and

              

      

    

    
      
        	

              	28.2.2	
                in the case of the Lender, that identified with its name below,

              

      

    

    or any substitute address, fax number, or department or officer as the Party may notify to the other by not less
      than five Business Days’ notice.

    
      
        	28.3	
                Delivery Any communication or document made or delivered by one Party to another under or in connection with the Finance Documents will only be effective:

              

      

    

    
      
        	

              	28.3.1	
                if by way of fax, when received in legible form; or

              

      

    

    
      
        	

              	28.3.2	
                if by way of letter, when it has been left at the relevant address or five (5) 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 28.2 (Addresses), if addressed to that department or officer.

    
      Page 75

      
        

    

    Any communication or document to be made or delivered to the Lender will be effective only when actually received
      by the Lender and then only if it is expressly marked for the attention of the department or officer identified with the Lender’s signature below (or any substitute department or officer as the Lender shall specify for this purpose).

    Any communication or document which becomes effective, in accordance with this Clause 28.3, after 5.00 p.m. in the
      place of receipt shall be deemed only to become effective on the following day.

    
      
        	28.4	
                Electronic communication

              

      

    

    
      
        	

              	28.4.1	
                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 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 and if those two Parties:

              

      

    

    
      
        	

              	(a)	
                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

              

      

    

    
      
        	

              	(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.

              

      

    

    
      
        	

              	28.4.2	
                Any electronic communication made between those two Parties will be effective only when actually received in readable form and in the case of any electronic
                  communication made by a Party to the Lender only if it is addressed in such a manner as the Lender shall specify for this purpose.

              

      

    

    
      
        	

              	28.4.3	
                Any electronic communication which becomes effective, in accordance with Clause 28.4.2, after 5.00 p.m. in the place of receipt shall be deemed only to become
                  effective on the following day.

              

      

    

    
      
        	28.5	
                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:

              

      

    

    
      
        	

              	28.5.1	
                in English; or

              

      

    

    
      
        	

              	28.5.2	
                if not in English, and if so required by the Lender, 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.

              

      

    

    
      
        	29	
                Calculations and Certificates

              

      

    

    
      
        	29.1	
                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 Lender pursuant to Clause 26.6 (Control
                    account) are, in the absence of manifest error, prima fade evidence of the matters to which they relate.

              

      

    

    
      Page 76

      
        

    

    
      
        	29.2	
                Certificates and determinations Any certification or
                  determination by the Lender 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.

              

      

    

    
      
        	29.3	
                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 Interbank Market differs, in accordance
                  with that market practice.

              

      

    

    
      
        	30	
                Partial Invalidity

              

      

    

    If, at any time, any provision of the Finance Documents 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.

    
      
        	31	
                Remedies and Waivers

              

      

    

    No failure to exercise, nor any delay in exercising, on the part of the Lender or any 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 the Lender or any 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 this Agreement are cumulative and
      not exclusive of any rights or remedies provided by law.

    
      
        	32	
                Confidentiality

              

      

    

    
      
        	32.1	
                Confidential Information The Lender agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by
                  Clause 32.2 (Disclosure of Confidential Information) and Clause 32.3 (Disclosure to numbering service providers).

              

      

    

    
      
        	32.2	
                Disclosure of Confidential Information The Lender may
                  disclose:

              

      

    

    
      
        	

              	32.2.1	
                to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives
                  such Confidential Information as the Lender shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this Clause 32.2.1 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;

              

      

    

    
      
        	

              	32.2.2	
                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

              

      

    

    
      Page 77

      
        

    

    one or more Finance Documents and 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 the Lender or by a person to whom Clause 32.2.2(a) or 32.2.2(b) applies to receive communications, notices, information or documents delivered pursuant
                  to the Finance Documents on its behalf;

              

      

    

    
      
        	

              	(d)	
                who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in Clause 32.2.2(a) or
                  32.2.2(b);

              

      

    

    
      
        	

              	(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;

              

      

    

    
      
        	

              	(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)	
                who is a Party; or

              

      

    

    
      
        	

              	(h)	
                with the consent of the Borrowers;

              

      

    

    in each case, such Confidential Information as the Lender shall consider appropriate if:

    
      
        	

              	(i)	
                in relation to Clauses 32.2.2(a), 32.2.2(b) and 32.2.2(c), 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 32.2.2(d), 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

              

      

    

    
      Page 78

      
        

    

    some or all of such Confidential Information may be price-sensitive information;

    
      
        	

              	(iii)	
                in relation to Clauses 32.2.2(e) and 32.2.2(f), 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 the Lender, it is not practicable so to do in the circumstances;

              

      

    

    
      
        	

              	32.2.3	
                to any person appointed by the Lender or by a person to whom Clause 32.2.2(a) or 32.2.2(b) 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 32.2.3 if the service provider to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking; and

              

      

    

    
      
        	

              	32.2.4	
                to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry
                  out its normal rating activities in relation to the Finance Documents and/or the Obligors and/or the Group if the rating agency 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.

              

      

    

    
      
        	32.3	
                Disclosure to numbering service providers

              

      

    

    
      
        	

              	32.3.1	
                The Lender may disclose to any national or international numbering service provider appointed by the Lender 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 34 (Governing law);

              

      

    

    
      
        	

              	(f)	
                date of each amendment and restatement of this Agreement;

              

      

    

    
      
        	

              	(g)	
                amount of the Loan;

              

      

    

    
      
        	

              	(h)	
                currencies of the Loan;

              

      

    

    
      
        	

              	(i)	
                type of Loan;

              

      

    

    
      Page 79

      
        

    

    
      
        	

              	(j)	
                ranking of the Loan;

              

      

    

    
      
        	

              	(k)	
                Termination Date;

              

      

    

    
      
        	

              	(I)	
                changes to any of the Information previously supplied pursuant to (a) to (I); and

              

      

    

    
      
        	

              	(m)	
                such other information agreed between the Lender and that Obligor,

              

      

    

    to enable such numbering service provider to provide its usual syndicated loan numbering identification services.

    
      
        	

              	32.3.2	
                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.

              

      

    

    
      
        	

              	32.3.3	
                Each Borrower represents that none of the information set out in Clauses 32.3.1(a) to 32,3.1(m) is, nor will at any time be, unpublished price-sensitive
                  information.

              

      

    

    
      
        	32.4	
                Entire agreement This Clause 32 constitutes the entire
                  agreement between the Parties in relation to the obligations of the Lender under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential
                  Information.

              

      

    

    
      
        	32.5	
                Inside information The Lender 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 the Lender undertakes not to use any Confidential Information for any unlawful purpose.

              

      

    

    
      
        	32.6	
                Notification of disclosure The Lender agrees (to the extent
                  permitted by law and regulation) to inform the Borrowers:

              

      

    

    
      
        	

              	32.6.1	
                of the circumstances of any disclosure of Confidential Information made pursuant to Clause 32.2.2(e) (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

              

      

    

    
      
        	

              	32.6.2	
                upon becoming aware that Confidential Information has been disclosed in breach of this Clause 32.

              

      

    

    
      
        	32.7	
                Continuing obligations The obligations in this Clause 32 are
                  continuing and, in particular, shall survive and remain binding on the Lender for a period of 12 months from the earlier of:

              

      

    

    
      
        	

              	32.7.1	
                the date on which all amounts payable by the Obligors under or in connection with the Finance Documents have been paid in full and the Loan has been cancelled or
                  otherwise ceases to be available; and Page 80

              

      

    

    
      Page 80

      
        

    

    
      
        	

              	32.7.2	
                the date on which the Lender otherwise ceases to be the Lender.

              

      

    

    
      
        	33	
                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.

    
      Page 81

      
        

    

    
      
        	Section 12	
                Governing Law and Enforcement

              

      

    

    
      
        	34	
                Governing Law

              

      

    

    This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English
      law.

    
      
        	35	
                Enforcement

              

      

    

    
      
        	35.1	
                Jurisdiction of English courts 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.

              

      

    

    This Clause 35.1 is for the benefit of the Lender only. As a result, the Lender shall not be prevented from taking
      proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Lender may take concurrent proceedings in any number of jurisdictions.

    
      
        	35.2	
                Service of process

              

      

    

    
      
        	

              	35.2.1	
                Without prejudice to any other mode of service allowed under any relevant law, each Borrower:

              

      

    

    
      
        	

              	(a)	
                irrevocably appoints Hill Dickinson Services (London) Ltd of Broadgate Tower, 20 Primrose Street, London EC2A 2E, United Kingdom 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 of the process will not invalidate the proceedings concerned.

              

      

    

    
      
        	

              	35.2.2	
                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 must immediately (and in any event within five days of such event taking place) appoint another agent on terms acceptable to the Lender„ Failing this, the Lender may appoint another agent for
                  this purpose.

              

      

    

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

    Page 82

    
      Page 82

      
        

    

    Schedule 1.

    Part I

    Conditions Precedent

    
      
        	1	
                Obligors

              

      

    

    
      
        	

              	(a)	
                Constitutional documents Copies of the constitutional documents of each Obligor together with such other evidence as the Lender 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:

              

      

    

    
      
        	

              	(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)	
                Specimen signatures or Copy passports A specimen of the
                  signature or copy of the passport of each person authorised by the resolutions referred to in (c).

              

      

    

    
      
        	

              	(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 the Manager), approving the terms of, and the transactions contemplated by, the Relevant Documents to which that Obligor (other than the Guarantor and the
                  Manager) is a party.

              

      

    

    
      
        	

              	(f)	
                Extract of Shareholder resolutions A copy of the extract of
                  a resolution signed by the Secretary of the Manager, approving the terms of, and the transactions contemplated by, the Relevant Documents to which the Manager is a party.

              

      

    

    
      
        	

              	(g)	
                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 Schedule 1 is correct, complete and in full force and effect;

              

      

    

    
      
        	

              	(ii)	
                setting out the names of the directors, officers and shareholders of that Obligor (other than in respect of the shareholders of the

              

      

    

    
      Page 83

      
        

    

    Guarantor and the Manager) 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.

              

      

    

    
      
        	

              	(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)	
                the MOA in respect of the Vessel;

              

      

    

    
      
        	

              	(ii)	
                the bill of sale transferring title in the Vessel to the relevant Borrower free of all encumbrances, maritime liens or other debts;

              

      

    

    
      
        	

              	(iii)	
                the protocol of delivery and acceptance evidencing the unconditional physical delivery of the Vessel by the relevant Seller to the relevant Borrower pursuant to the
                  MOA;

              

      

    

    
      
        	

              	(ii)	
                any charterparty or other contract of employment of the Vessel which will be in force on the Utilisation Date;

              

      

    

    
      
        	

              	(ii)	
                the Management Agreements in respect of the Vessel;

              

      

    

    
      
        	

              	(iii)	
                the Vessel’s current Safety Construction, Safety Equipment, Safety Radio, Oil Pollution Prevention and Load Line Certificates;

              

      

    

    
      
        	

              	(iv)	
                evidence of the Vessel’s current Certificate of Financial Responsibility issued pursuant to the United States Oil Pollution Act 1990;

              

      

    

    
      
        	

              	(v)	
                the Vessel’s current SMC;

              

      

    

    
      
        	

              	(vi)	
                the ISM Company’s current DOC;

              

      

    

    
      
        	

              	(vii)	
                the Vessel’s current ISSC;

              

      

    

    
      
        	

              	(viii)	
                the Vessel’s current IAPPC; and

              

      

    

    
      
        	

              	(ix)	
                the Vessel’s current Tonnage Certificate;

              

      

    

    in each case together with all addenda, amendments or supplements.

    
      
        	

              	(b)	
                Evidence of relevant Seller’s title Certificate of ownership and encumbrance (or equivalent) issued by the Registrar of Ships (or equivalent official) of the Vessel’s current flag confirming
                  that the Vessel is owned by

              

      

    

    
      Page 84

      
        

    

    

    

    the relevant Seller and free of registered Encumbrances, other than in favour of the Lender.

    
      
        	

              	(c)	
                Evidence of Borrower’s title Evidence that on the Utilisation
                  Date (i) the Vessel will be at least provisionally registered under the flag stated in Preliminary (A) in the ownership of the relevant Borrower and (ii) the Mortgage will be capable of being registered against the Vessel with first
                  priority.

              

      

    

    
      
        	

              	(d)	
                Evidence of insurance Evidence that the Vessel is 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 Lender) the written approval of the Insurances by an
                  insurance adviser appointed by the Lender.

              

      

    

    
      
        	

              	(e)	
                Confirmation of class A  Class Certificate and/or
                  Certificate of Confirmation of Class for hull and machinery confirming that the Vessel is classed with the highest class applicable to vessels of her type with Lloyd’s Register or such other classification society as may be acceptable to
                  the Lender free of any recommendations affecting class.

              

      

    

    
      
        	

              	(f)	
                Valuation Not more than 20 days prior to the relevant
                  Utilisation Date, a valuation of the Vessel addressed to the Lender from an Approved Shipbroker certifying the Market Value for the Vessel, acceptable to the Lender.

              

      

    

    
      
        	

              	(g)	
                Security Documents The Security Documents, together with all
                  other documents required by any of them, including, without limitation, all notices of assignment and/or charge and evidence that those notices will be duly acknowledged by the recipients.

              

      

    

    
      
        	

              	(h)	
                Clause 20.2 In respect of the relevant Utilisation Date,
                  evidence that Clause 20.2 (Cash Collateral Amount) has been complied with to the absolute satisfaction of the Lender.

              

      

    

    
      
        	

              	(i)	
                Mandates Such duly signed forms of mandate, and/or other
                  evidence of the opening of the Earnings Accounts, as the Lender may require.

              

      

    

    
      
        	

              	(j)	
                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.

              

      

    

    
      
        	

              	(k)	
                Ultimate beneficial owner Evidence of the Borrowers’ ultimate
                  beneficial owner(s) in a form and substance acceptable to the Lender prior to the date of this Agreement.

              

      

    

    
      
        	

              	(l)	
                Other Relevant Documents Copies of each of the Relevant
                  Documents not otherwise comprised in the documents listed in this Part I of Schedule 1.

              

      

    

    
      
        	

              	(m)	
                Equity Contribution If applicable, evidence of full payment
                  to the Seller of any part of the purchase price of the Vessel under the relevant MOA which is payable on or before the relevant Utilisation Date and which is not being financed by the Loan.

              

         

        

        
          Page 85

          
            

        

        
          
            
              	3	
                      Legal opinions

                    

            

          

          The following legal opinions, each addressed to the Lender, or confirmation satisfactory to the Lender that
            such opinions will be given:

          
            
              	

                    	(a)	
                      a legal opinion of Stephenson Harwood LLP, legal advisers to the Lender as to English law substantially in the form provided to the Lender prior to signing
                        this Agreement;

                    

            

          

          
            
              	

                    	(b)	
                      a legal opinion of the following legal advisers to the Lender:

                    

            

          

          
            
              	

                    	(i)	
                      Herring Parry Khan Law Office (part of Ince Gordon Dadds International), as to Liberian law; and

                    

            

          

          
            
              	

                    	(ii)	
                      Herring Parry Khan Law Office (part of Ince Gordon Dadds International), as to Marshal Islands 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 35.2 (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 Lender 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 the Original Financial
                        Statements of the Guarantor.

                    

            

          

          
            
              	

                    	(e)	
                      Fees Evidence that the fees, costs and expenses then due from the

                        Borrowers under Clause 11 (Fees) and Clause 16 (Costs and Expenses) have been paid or will be paid by the relevant Utilisation Date.

                    

            

          

          
            
              	

                    	(f)	
                      “Know your customer” documents Such documentation and
                        other  evidence as is reasonably requested by the Lender prior to the execution of this Agreement in order for the Lender to comply with all necessary “know your customer” or similar identification procedures in relation to the
                        transactions contemplated in the Finance Documents including (without limitation) all documents required under any regulation or laws in force in the United Kingdom and the Regulation 281/2009 of the Central Bank of Greece, such
                        documents to be to the absolute satisfaction of the Lender. The Borrowers shall provide the Lender with evidence that the Borrowers, the Guarantor and all their respective corporate shareholders (if any) have issued registered
                        shares.

                    

            

          

          
            Page 86

            
              

          

          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 flag stated in Preliminary
                        (A) confirming that (a) the Vessel is permanently registered under that flag in the ownership of the relevant Borrower, (b) the Mortgage has been registered with first priority against the Vessel and (c) there are no further
                        Encumbrances registered against the 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 Lender.

                    

            

          

          
            
              	3	
                      Acknowledgements of notices Acknowledgements of all
                        notices of assignment and/or charge given pursuant to the Security Documents.

                    

            

          

          
            
              	4	
                      Legal opinions Such of the legal opinions specified in
                        Part I of this Schedule 1 as have riot already been provided to the Lender.

                    

            

          

          
            Page 87

            
              

          

          Schedule 2

          Utilisation Request

          
            
              	From:	
                      Kea Shipowners Ltd

                        Spetses Shipowners Ltd

                        Hydra Shipowners Ltd

                    

            

          

          
            
              	To:	
                      HSBC BANK plc

                    

            

          

          
            
              	Dated:	
                      ________________   2019

                    

            

          

          Dear Sirs

          Kea Shipowners Ltd, Spetses Shipowners Ltd and Hydra Shipowners Ltd, as joint and several borrowers—
            US$12,500,000 Loan Agreement dated _______________  2019 (the “Agreement”)

          
            
              	1	
                      We refer to the Agreement. This is the 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 borrow the Loan on the following terms:

                    

            

          

          Proposed Utilisation Date: [          ] (or, if that is not a Business Day, the next Business Day)

          Currency of Loan:                                                dollars

          Amount: [          ]

          Interest Period: [             ]

          
            
              	3	
                      We confirm that each condition specified in Clause 4.2 (Further
                          conditions precedent) is satisfied on the date of this Utilisation Request.

                    

            

          

          
            
              	4	
                      The proceeds of the Loan should be paid towards [

                    

            

          

          
            
              	5	
                      This Utilisation Request is irrevocable.

                    

            

          

          Yours faithfully

          

          

          _____________________

          authorised signatory for

          Kea Shipowners Ltd

            Spetses Shipowners Ltd

            Hydra Shipowners Ltd

          
            Page 88

            
              

          

          Schedule 3

          Form of Compliance Certificate

          
            
              	To:	
                      HS BC BANK plc

                    

            

          

          
            
              	From:	
                      Kea Shipowners Ltd

                        Spetses Shipowners Ltd

                        Hydra Shipowners Ltd

                        Euroseas Ltd.

                    

            

          

          Dated:

          Dear Sirs

          Kea Shipowners Ltd, Spetses Shipowners Ltd and Hydra Shipowners Ltd, as joint and several borrowers - 
            US$12,500,000 Loan Agreement dated  _________ 2019

          
            
              	1	
                      Werefer to the Agreement. This is El Compliance Certificate. TerrnS defined M the Agreement have the same meaning when used in this Compilionce Certificate
                        unlless given a different meaning in this Compliance Certificate%

                    

            

          

          
            
              	2	
                      We confirm that Euroseas Ltd. maintains:

                    

            

          

          (a) Maximmum Leverage of not higher ,tilan 75%;

          
            
              	

                    	(b)	
                       Liquidity of an amount: of not less than:

                    

            

          

          
            
              	

                    	(a)	
                      $200,00o in respect of each Fleet Vessel from the date of theis Agreement up to and including 29 September 2020; and

                    

            

          

          
            
              	

                    	(b)	
                      $300,000 from 30 September 2020 and throughout the remainder of the Facility Period; and

                    

            

          

          
            
              	

                    	(c)	
                       Net Worth of not less than $15,000,000.

                    

            

          

          
            
              	3	
                      We confirm that no Default is continuing.

                    

            

          

          	
                  Signed

                	 	 	 	 
	 	 	 	 	 
	
                  

                  

                	 Director	 	
                  Director

                	 
	 	 	 	 	 
	
                  

                  

                	 of Kea Shipowners Ltd	 	
                  of Kea Shipowners Ltd

                	 

          

          

          
            Page 89

            
              

          

          

          

          

          

          	 	 	 	 	 
	 	 	 	 	 
	
                  Director

                	 	 	
                  Director

                	 
	 	 	 	 	 
	
                  of Spetses Shipowners Ltd

                	 	 	
                  of Spetses Shipowners Ltd

                	 

          

          

          	 	 	 	 	 
	 	 	 	 	 
	
                  Director

                	 	 	
                  Director

                	 
	 	 	 	 	 
	
                  of Hydra Shipowners Ltd

                	 	 	
                  of Hydra Shipowners Ltd

                	 

          

          

          	 	 	 	 	 
	 	 	 	 	 
	
                  Director

                	 	 	
                  Director

                	 
	 	 	 	 	 
	
                  of Euroseas Ltd.

                	 	 	
                  of Euroseas Ltd.

                	 

          

          

          [insert applicable certification language]

          

          

          _______________

          [for and on behalf of

          [name of auditors of Euroseas Ltd.

          
            Page 90

            
              

          

          

          

          Signatures

          The Borrowers

          	
                  Kea Shipowners Ltd

                	
                  )

                	 
	
                  By: STEFANIA KARMIRI

                	
                  )

                	 
	
                  Address: c/o o Eurobulk Ltd.

                	
                  )

                	 
	
                  4 Messogiou & Evropis

                	
                  )

                	
                  /s/ STEFANIA KARMIRI

                
	
                  Maroussi, Athens, Greece

                	
                  )

                	 
	
                  Fax no.: +30 211 180 4097

                	
                  )

                	 
	
                  Department/Officer: Legal department

                	
                  )

                	 
	 	 	 

          

          

          	
                  Spetses Shipowners Ltd

                	
                  )

                	 
	
                  By: STEFANIA KARMIRI

                	
                  )

                	 
	
                  Address: c/o o Eurobulk Ltd.

                	
                  )

                	 
	
                  4 Messogiou & Evropis

                	
                  )

                	
                  s/ STEFANIA KARMIRI

                
	
                  Maroussi, Athens, Greece

                	
                  )

                	 
	
                  Fax no.: +30 211 180 4097

                	
                  )

                	 
	
                  Department/Officer: Legal department

                	
                  )

                	 
	 	 	 

          

          

          	
                  Hydra Shipowners Ltd

                	
                  )

                	 
	
                  By: STEFANIA KARMIRI

                	 	 
	
                  Address: c/o o Eurobulk Ltd.

                	
                  )

                	
                  s/ STEFANIA KARMIRI

                
	
                  4 Messogiou & Evropis

                	
                  )

                	

                
	
                  Maroussi, Athens, Greece

                	
                  )

                	 
	
                  Fax no.: +30 211 180 4097

                	
                  )

                	 
	
                  Department/Officer: Legal department 

                  

                	
                  )

                	

                

          

          

          
            Page 91

            
              

          

          

          

          The Lender

          	
                  HSBC BANK plc

                	
                  )

                	 
	
                  By:

                	
                  )

                	 
	
                  Address: 8 Canada Square,

                	
                  )

                	 
	
                  London E14 5HQ,

                	
                  )

                	 
	
                  England

                	
                  )

                	 
	
                  Fax no.: +44 (0)20 7991 4619

                	
                  )

                	 
	
                  Department/Officer: Alastair Muir/

                	
                  )

                	 
	
                  Head of European Corporate Banking Centre

                	 	 

          

          

        

         

        

         

        

      

    

  

  Page 92

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