Document:

Exhibit 10.27

 

SHORT TERM
FINANCING AGREEMENT

 

THIS AGREEMENT
is made today: 25th July 2006.

 

BETWEEN:

 

1.                                       Leveret
International Inc., a Liberian Corporation of 80 Broad street, Monrovia,
Liberia.

 

2.                                       Aegean
Marine Petroleum S.A. a Liberian Corporation of 80 Broad street, Monrovia,
Liberia (hereinafter the “Borrower”).

 

WHEREAS :

 

The Borrower
has requested the Lender to make available to it a short term financing of
USD 5,000,000 (Five Million United States Dollars), (hereinafter called
the “Facility”), which the Lender agreed to grant on the following terms and
conditions:

 

A.                                   TERMS OF FACILITY

 

a.                                       The
Lender makes available to the Borrower the Facility to be used for working
capital purposes.

b.                                      The
Facility will bear no interest at all.

c.                                       The
Borrower hereby acknowledges, states and confirms receipt of the Facility.

d.                                      The
Facility is repayable upon Lender’s first written demand for the repayment of
the facility in part or in whole.

 

B.                                     REPRESENTATIONS AND WARRANTIES

 

The Borrower
hereby represents and warrants to the Lender, that:

 

a.                                       The
Borrower is a company duly organized and validly existing and in good standing
under the laws of the Republic of Liberia and has the corporate authority to
own/acquire assets and carry out its business and other activities as they are
now or in the future going to be conducted.

b.                                      The
Borrower has the power to enter into and perform this Agreement and to
authorize the execution of this Agreement and any other documents related
thereto.

c.                                       This
Agreement constitutes legally binding obligation of the Borrower and is
enforceable in accordance with its terms.

d.                                      The
Borrower has the legal ability to undertake towards the Lender the repayment of
the Facility upon Lenders first demand in whole or in part(s) in foreign
exchange in any part of the world and in Greece and the Borrower has and/or
will have in Greece available funds of its own or through its affiliate
companies or tough further banking borrowing facilities in foreign exchange
free and not subject to any mandatory assignment to the Bank of Greece,
pursuant to any provisions of any law, decision or regulation of any
governmental body or other regulatory authority and out of such funds the
Borrower may without any

 

 

restrictions
whatsoever effect payments to the Lender in connection with this Agreement.

 

C.                                     LAW/JURISDICTION

 

a.                                       This
Agreement shall be governed and construed in all respects in accordance with
the laws of Greece.

b.                                      All
disputes under this Agreement including enforcement proceedings and the taking
of an conservative measures are submitted to the exclusive jurisdiction of the
Courts of Piraeus.

 

IN WITNESS
whereof these presents were issued the date first above written.

 

	
  THE LENDER

  	
   

  	
  THE BORROWER

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Dimitrios
  Melisanidis

  	
   

  	
   

  	
  Theodora PapadogianniExhibit 10.28

 

DATE
26th OCTOBER 2005

 

 

OCEAN
DYNAMIC CORP.

-and-

SEA
GLOBAL S.A.

as joint and several Borrowers

 

 

THE
BANKS AND FINANCIAL INSTITUTIONS

listed
in Schedule 1

as Banks

-and-

 

 

HSH
NORDBANK AG

as L/C Bank

 

 

-and-

 

 

AEGEAN
BALTIC BANK S.A.

as Arranger, Agent and Security Trustee

 

 

FINANCIAL AGREEMENT

 

relating
to a certain long-term loan facility

of up to €13,300,000 to finance the acquisition of two newbuilding

double hull product tanker vessels with roro facility

 

V &
P Law Firm

 

 

CONTENTS

 

	
  1

  	
   

  	
  PURPOSE AND DEFINITIONS

  	
  1

  
	
  2

  	
   

  	
  THE FACILITY – THE
  BORROWERS’ JOINT AND SEVERAL LIABILITY – THE CASH COLLATERAL ACCOUNT

  	
  22

  
	
  3

  	
   

  	
  AVAILABILITY – COMMITMENTS
  BY THE BANKS – POSITION OF THE BANKS AND THE INSTRUCTING GROUP

  	
  24

  
	
  4

  	
   

  	
  NOTICE OF DRAWDOWN

  	
  26

  
	
  5

  	
   

  	
  INTEREST

  	
  27

  
	
  6

  	
   

  	
  INTEREST PERIODS

  	
  27

  
	
  7

  	
   

  	
  SUBSTITUTE BASIS

  	
  28

  
	
  8

  	
   

  	
  PREPAYMENT

  	
  29

  
	
  9

  	
   

  	
  APPLICATION OF PROCEEDS
  AND EARNINGS

  	
  31

  
	
  10

  	
   

  	
  REPAYMENT

  	
  33

  
	
  11

  	
   

  	
  EVIDENCE OF DEBT

  	
  33

  
	
  12

  	
   

  	
  PAYMENTS – SET OFF- PRO
  RATA SHARING OF PAYMENTS

  	
  33

  
	
  13

  	
   

  	
  CHANGE OF CIRCUMSTANCES

  	
  36

  
	
  14

  	
   

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
  39

  
	
  15

  	
   

  	
  SECURITIES

  	
  43

  
	
  16

  	
   

  	
  CONDITIONS PRECEDENT

  	
  43

  
	
  17

  	
   

  	
  MAINTENANCE OF SECURITY

  	
  47

  
	
  18

  	
   

  	
  GENERAL UNDERTAKINGS

  	
  47

  
	
  19

  	
   

  	
  OPERATIONAL UNDERTAKINGS

  	
  50

  
	
  20

  	
   

  	
  INSURANCE UNDERTAKINGS

  	
  55

  
	
  21

  	
   

  	
  RETENTION ACCOUNT

  	
  58

  
	
  22

  	
   

  	
  EVENTS OF DEFAULT

  	
  58

  
	
  23

  	
   

  	
  FEES

  	
  61

  
	
  24

  	
   

  	
  EXPENSES

  	
  62

  
	
  25

  	
   

  	
  INDEMNITY

  	
  62

  
	
  26

  	
   

  	
  STAMP DUTIES

  	
  62

  
	
  27

  	
   

  	
  VARIATIONS AND WAIVERS

  	
  62

  
	
  28

  	
   

  	
  PARTIAL INVALIDITY

  	
  64

  
	
  29

  	
   

  	
  THE ARRANGER, THE AGENT,
  THE SECURITY TRUSTEE, THE L/C BANK AND THE BANKS

  	
  64

  
	
  30

  	
   

  	
  RETIREMENT OF THE
  SERVICING BANKS

  	
  69

  
	
  31

  	
   

  	
  ASSIGNMENTS AND TRANSFERS

  	
  70

  
	
  32

  	
   

  	
  LANGUAGE

  	
  72

  
	
  33

  	
   

  	
  NON-IMMUNITY

  	
  73

  
	
  34

  	
   

  	
  NOTICES

  	
  73

  
	
  35

  	
   

  	
  SUPPLEMENTAL

  	
  74

  
	
  36

  	
   

  	
  LAW AND JURISDICTION

  	
  75

  
	
  37

  	
   

  	
  THIS AGREEMENT AND THE
  OTHER FINANCE DOCUMENTS

  	
  76

  
	
  SCHEDULE 1: THE BANKS
  AND THEIR COMMITMENTS

  	
   

  
	
  SCHEDULE 2: NOTICE OF
  DRAWDOWN

  	
   

  
	
  SCHEDULE 3: FORM OF
  TRANSFER CERTIFICATE

  	
   

  
	
  SCHEDULE 4: THE
  ACKNOWLEDGEMENT

  	
   

  

 

 

	
  THIS
  AGREEMENT is made
  on the 26th day of October 2005

  
	
   

  	
   

  	
   

  
	
  BETWEEN

  
	
   

  	
   

  	
   

  
	
  1

  	
  (a)

  	
  OCEAN
  DYNAMIC CORP. a
  corporation organised and existing under the laws of the Republic of the
  Marshall Islands, having its registered office at Trust Company Complex,
  Ajeltake Road, Ajeltake Island, Majuro. Republic of the Marshall Islands (the
  “Borrower A”); and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  SEA
  GLOBAL S.A., a
  corporation organised and existing under the laws of the Republic of the
  Marshall Islands, having its registered office at Trust Company Complex, Ajeltake
  Road, Ajeltake Island, Majuro, Republic of the Marshall Islands (the “Borrower B” and together with the
  Borrower A the “Borrowers”) as
  joint and several borrowers.

  
	
   

  	
   

  	
   

  
	
  2

  	
  THE BANKS listed in Schedule 1 as Banks; and

  
	
   

  	
   

  
	
  3

  	
  HSH NORDBANK AG, acting through its office at
  Gerhart-Hauptmann-Platz 50, 20095, Hamburg, the Federal Republic of Germany
  as L/C Bank; and

  
	
   

  	
   

  
	
  4

  	
  AEGEAN BALTIC BANK S.A., acting through its office at 28 Diligianni
  Street, 145 62 Kifissia, Greece as Arranger,
  Agent and Security Trustee.

  
	
   

  	
   

  
	
  WHEREAS

  
	
   

  	
   

  
	
  A.

  	
  The Borrowers have requested the Banks to make
  available to the Borrowers a certain term loan facility not exceeding in
  aggregate Thirteen million Three hundred thousand Euros (€13,300,000) for the
  purposes set forth in Clause 2.2.

  
	
   

  	
   

  
	
  B.

  	
  The Borrowers and the L/C Bank have agreed to
  enter into a letter of credit facility agreement pursuant to which the L/C
  Bank shall agree to issue certain letters of credit at the request of each
  Borrower.

  
	
   

  	
   

  
	
  C.

  	
  The Banks and the L/C Bank have agreed to share in
  the manner herein provided in the security to be granted to the Security
  Trustee, the other Creditor Parties or any of them pursuant to this
  Agreement.

  
	
   

  	
   

  
	
  Now it is hereby agreed as follows:

  
	
   

  	
   

  
	
  1

  	
  PURPOSE AND DEFINITIONS

  
	
   

  	
   

  
	
  1.1

  	
  In this Agreement the following terms shall have
  the following meanings unless the context otherwise requires -

  
	
   

  	
   

  
	
   

  	
  “Accounts” means collectively the Earnings Accounts
  and the Other Accounts and, in the singular, means any of them;

  

 

1

 

	
   

  	
  “Additional
  Construction Cost” means
  in respect of each Vessel, an amount of up to One million Five hundred
  thousand Euros (€1,500,000) as provided in each relevant Additional Works
  Contract;

   

  “Additional
  Works’ Advance A”
  means an amount of up to One million One hundred Eighty-Two thousand Euros
  (€1,182,000) to be drawndown pursuant to the terms and conditions of this
  Agreement for the purpose referred to in sub-Clause 2.2 (c) or (as the
  context may require) the amount thereof from time to time outstanding
  hereunder;

   

  “Additional
  Works’ Advance B”
  means an amount of up to One million One hundred Eighty-two thousand Euros
  (€1,182,000) to be drawndown pursuant to the terms and conditions of this
  Agreement for the purpose referred to in sub-Clause 2.2 (c) or (as the
  context may require) the amount thereof from time to time outstanding
  hereunder;

   

  “Additional
  Works’ Advances”
  means collectively the Additional Works’ Advance A and the Additional Works’
  Advance B and, in the singular, means either of them;

   

  “Additional
  Works’ Contract” means
  in respect of each Vessel the “Design Building Supervision Representation
  Procurement of Machinery and Supplies and Turn-Key Delivery” contract dated
  30th August 2005 and made between a Borrower and IOTA, as the
  same may from time to time be amended, varied or supplemented with the
  Security Trustee’s prior written consent, and in the plural, means both of
  them;

   

  “Advances”
  means together the
  Vessel A Advances and the Vessel B Advances and, in the singular, means any
  of them;

   

  “AEGEAN
  PETROLEUM” means
  AEGEAN MARINE PETROLEUM S.A. of 80, Broad Street, Monrovia, Liberia;

   

  “AEGEAN
  PETROLEUM Guarantee” means
  the guarantee and indemnity in respect of the Borrowers’ obligations under
  this Agreement and the L/C Facility Agreement to be executed by AEGEAN
  PETROLEUM in favour of the Security Trustee, as the same may from time
  to time be amended, varied or supplemented;

   

  “Agent” means AEGEAN BALTIC BANK S.A., in its
  capacity as agent for the Banks and the L/C Bank under the Finance Documents,
  or any successor of it in such capacity appointed under this Agreement;

   

  “Accounts’
  Charge Agreements” means
  collectively the Other Accounts’ Charge Agreement and the Earnings Accounts’
  Charge Agreements and in the singular any of them;

   

  “Applicable Accounting Principles”
  means those
  accounting principles, standards and practices on which preparation of the
  Financial Statements are based, which are International Accounting Standards
  and principles and practices or such other generally accepted international
  accounting principles, standards and practices adopted by the Borrowers
  and/or

  

 

2

 

	
   

  	
  the Manager and/or AEGEAN
  PETROLEUM and/or the other members of the Group after the date hereof and
  notified to the Agent and accepted by the Agent

   

  “Applicable
  Availability Date”
  means:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  in respect of each Pre-Delivery Advance: 30th
  October 2005;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  in respect of each Delivery Advance: the earlier
  of (i) the Delivery Date of the relevant Vessel and (ii) the Final
  Availability Date; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  in respect of each Additional Works’ Advance: the
  earlier of (i) the Delivery Date of the relevant Vessel and (ii) the
  Final Availability Date;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Applicable Margin” means:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  in respect of each Vessel A Advance: (i) during
  the Pre-Delivery Period in respect of Vessel A: 1.40% per annum and (ii) during
  the Post-Delivery Period in respect of Vessel A: 1.30% per annum; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  in respect of each Vessel B Advance: (i) during
  the Pre-Delivery Period in respect of Vessel B: 1.40% per annum and (ii) during
  the Post-Delivery Period in respect of Vessel B: 1.30% per annum;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Approved Insurance Brokers” means the insurance brokers appointed by
  the Borrowers with the Security Trustee’s prior approval;

  
	
   

  	
   

  
	
   

  	
  “Approved S&P Brokers” means each of:

  
	
   

  	
  •                       H Clarkson & Company Ltd. of
  London, England;

  •                       Fearnleys A/S of Oslo, Norway;

  •                       Maersk Broker K/S of Copenhagen, Denmark;

  •                       Simpson Spence & Young of London,
  England;

  •                       R.S. Platou AS of Oslo, Norway;

  •                       Arrow Research Ltd. of London, England;

  
	
   

  	
  and any other shipbrokers
  nominated by the Agent from time to time and includes their successors in
  title and, in the plural, means all of them;

   

  “Approved
  Management Agreement” means
  the management agreement in respect of each Vessel made or to be made between
  the Manager as manager and the relevant Owner thereof as owner on terms
  acceptable to the Security Trustee and the Instructing Group and, in the
  plural, means both of them;

   

  “Arranger”
  means AEGEAN BALTIC
  BANK S.A. in its capacity as arranger for the Banks and the L/C Bank under
  the Finance Documents or any successor of it in such capacity appointed under
  this Agreement;

  

 

3

 

	
   

  	
  “Assignment
  Agreement” means in
  relation to each Vessel the first priority assignment agreement relative to
  the Earnings, the Insurances and the Requisition Compensation made between
  the Owner thereof and the Security Trustee to secure the due payment of the
  Indebtedness in form and substance satisfactory to the Creditor Parties
  in their sole discretion as the same may from time to time be amended,
  varied or supplemented and, in the plural, means both of them;

   

  “Assignment
  of Refund Guarantees” means
  in relation to each Vessel the first priority assignment agreement relative
  to the Refund Guarantees of that Vessel to be made between the Owner thereof
  and the Security Trustee to secure the due payment of the Indebtedness, in form and
  substance satisfactory to the Creditor Parties in their sole discretion as
  the same may from time to time be amended varied or supplemented and, in
  the plural, means both of them;

   

  “Assignment
  of Shipbuilding Contract” means in relation to each Vessel the first priority assignment
  agreement relative to the Shipbuilding Contract of that Vessel to be made
  between the Owner thereof and the Security Trustee to secure the due payment
  of the Indebtedness, in form and substance satisfactory to the Creditor
  Parties in their sole discretion as the same may from time to time be
  amended varied or supplemented and, in the plural, means both of them;

   

  “Availability
  Period” means the
  period commencing from the date of this Agreement and ending on the Final
  Availability Date;

   

  “Balloon
  Payment” means in
  respect of each Tranche each of the final payments referred to in sub-Clause
  10.1 (b) and, in the plural, means both of them;

   

  “Bank” means:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  a bank listed in Schedule 1 and acting
  through its branch indicated in Schedule 1 (or through another branch
  notified to the Agent in accordance with Clause 31); or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  a direct or indirect assignee or transferee of
  such bank or of a successor of it; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  a direct or indirect successor of an assignee or
  transferee such as is mentioned in (b) unless any of the foregoing has
  assigned all of its rights and novated all its obligations and liabilities
  under the Finance Documents;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Borrower
  A Earnings Account” means
  the interest-bearing deposit account number 100286-52017 with account name ‘OCEAN
  DYNAMIC CORP – Earnings Account’ to be maintained throughout the Security
  Period with the Agent in Athens, the Republic of Greece, such account to
  include any substitute account or revised account or revised designation or
  number whatsoever;

   

  “Borrower B Earnings Account” means the interest bearing deposit account
  number 100287-52022 with account name “SEA GLOBAL S.A. – Earnings Account”,
  to be maintained throughout the Security Period with the Agent in Athens, the
  Republic of Greece; such account

  

 

4

 

	
   

  	
  to include any substitute
  account or revised account or revised designation or number whatsoever;

   

  “Borrower
  A Earnings Account Charge Agreement” means the first priority assignment pledge
  and charge agreement to be made between the Borrower A and the Creditor
  Parties, assigning, pledging and charging the Borrower A Earnings Account and
  the monies from time to time credited therein to secure the due payment of the
  Indebtedness in form and substance satisfactory to the Banks and the L/C
  Bank in their sole discretion as same may from time to time be amended,
  varied or supplemented;

   

  “Borrower
  B Earnings Account Charge Agreement” means the first priority assignment pledge and charge agreement to
  be made between the Borrower B and the Creditor Parties, assigning, pledging
  and charging the Borrower B Earnings Account and the monies from time to time
  credited therein to secure the due payment of the Indebtedness in form and
  substance satisfactory to the Banks and the L/C Bank in their sole discretion
  as same may from time to time be amended, varied or supplemented;

   

  “Broken
  Funding Costs” means
  any amount that the Agent may certify as necessary to compensate the
  Banks for any loss incurred or to be incurred by them as a consequence of
  repayment in respect of funds borrowed (or committed to be borrowed) or
  deposits taken (or committed to be taken) from third parties in connection
  with the commitment of the Banks in the Facility, or in liquidating or
  re-employing such funds or deposits for the remaining part of the then
  current Interest Period;

   

  “Builder”
  means SEVERNAV S.A.
  of 204, Timisoara Street, 220242 Drobeta Turnn, Severin, Republic of Romania;

   

  “Business
  Day” means a day on
  which banks and financial markets are open for business in all of London,
  Athens and Hamburg;

   

  “Cash
  Collateral Amount” means
  an amount equal to the aggregate of the L/C Facility to be credited to the
  Cash Collateral Account in accordance with the terms of this Agreement, or as
  the context may require, any balance thereof from time to time standing
  to the credit of the Cash Collateral Account;

   

  “Cash
  Collateral Account” means
  the interest bearing deposit account nr. 0100285-52028 with account name
  OCEAN DYNAMIC CORP. et al – Cash Collateral Account’ to be maintained with
  the Agent in Athens, the Republic of Greece where monies shall be deposited
  in accordance with Clauses 2.3 and 16.1 and the relevant provisions of the
  L/C Facility Agreement, such account to include any substitute account or
  revised account or revised designation or number whatsoever;

   

  “Classification
  Society” means any
  classification society being a member of IACS as the Agent may approve
  in writing;

  

 

5

 

	
   

  	
  “Commitment”
  means in relation
  to a Bank the amount set out opposite its name in Schedule 1 as reduced
  or cancelled by any relevant term of this Agreement;

   

  “Commitment
  Letter” means the
  letter dated 16th September 2005 issued by the Agent and
  addressed to, the Borrowers and the Guarantors duly accepted by them on 28th
  September 2005;

   

  “Compulsory
  Acquisition” means
  requisition for title or other compulsory acquisition, requisition,
  appropriation, expropriation, deprivation, forfeiture or confiscation for any
  reason of a Vessel by any Government Entity or other competent authority,
  whether de jure or de facto, but shall exclude requisition for use or hire
  not involving requisition of title;

   

  “Contract
  Price” means in
  respect of each Vessel, an amount of Six million Eight hundred Thirty-Five
  thousand Euros (€6,835,000) as the same may be adjusted in accordance
  with the terms of the Shipbuilding Contract relating to such Vessel;

   

  “Corporate
  Guarantees” means
  together the Manager’s Guarantee and AEGEAN PETROLEUM Guarantee and, in the
  singular, means either of them;

   

  “Corporate
  Guarantors” means
  together the Manager and AEGEAN PETROLEUM and in the singular, means either
  of them;

   

  “Corporate
  Security Parties” means
  those of the Security Parties, which are companies or corporations but not
  natural persons and in the singular means any of them;

   

  “Creditor
  Party” means each
  Servicing Bank, each Bank and the L/C Bank whether at the date of this
  Agreement or at any time thereafter;

   

  “Default
  Rate” means the
  aggregate of (i) EURIBOR, (ii) the Applicable Margin and (iii) Two
  per cent (2%) per annum;

   

  “Delivery
  Advances” means
  collectively the Delivery Advance A and the Delivery Advance B and, in the
  singular, means either of them;

   

  “Delivery
  Advance A” means an
  amount of up to Three hundred Forty-One thousand Seven hundred Fifty Euros
  (€341,750) to be drawndown pursuant to the terms and conditions of this
  Agreement for the purpose referred to in sub-Clause 2.2 (b) or (as the
  context may require) the amount thereof from time to time outstanding
  hereunder;

   

  “Delivery
  Advance B” means an
  amount of up to Three hundred Forty-one thousand Seven hundred Fifty Euros
  (€341,750) to be drawndown pursuant to the terms and conditions of this
  Agreement for the purpose referred to in sub-Clause 2.2 (b) or (as the
  context may require) the amount thereof from time to time outstanding
  hereunder;

   

  “Delivery
  Date” means in
  relation to each Vessel the date on which such Vessel is delivered by the
  Builder to the Owner thereof and, in the plural, means both of them;

  

 

6

 

	
   

  	
  “Delivery
  Instalment” means
  the instalment of the Contract Price of a Vessel payable by the Owner thereof
  to the Builder on the Delivery Date of that Vessel in accordance with the
  Shipbuilding Contract related to such Vessel and, in the plural, means both
  of them;

   

  “Delivery
  Instalment Payment Date” means in respect of each Vessel the date provided in Article III
  Clause 4(e) of the relevant Shipbuilding Contract and, in the plural,
  means both of them;

   

  “Distribution
  Monies” means: 

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  any monies received by the Creditor Parties or any
  of them (or by any receiver or similar person appointed by any of them) from
  an Enforcement Action, or from the proceeds or dissolution or liquidation of
  any Security Party or distribution of its/his assets among its creditors
  (however such liquidation or distribution may occur);

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any monies received by the Creditor Parties (or
  any of them) as named insured, loss payee, beneficiary or assignee of any
  insurance policies of any Security Party in consequence of or after any
  Enforcement Action;

  
	
   

  	
   

  
	
   

  	
  “Drawdown
  Date” means the
  Business Day on which the Borrowers have requested an Advance to be made in
  accordance with Clause 2.1 or (as the context requires) the date on which
  such Advance is actually made;

   

  “Earnings”
  means all freights,
  charter hires and any other amounts whatsoever which may at any time be
  earned by, or become payable to or for the account of each Borrower or its
  agents arising out of or as a result of the ownership, management and/or
  operation of a Vessel by her Owner or its agents, or under or in relation to
  any charterparty, contract of carriage or other contract (including a salvage
  or towage contract) for the use, operation or management of a Vessel,
  together with all payments for the variation of any such contract, all
  damages for any breach of any such contract, all general average and salvage
  remuneration and all compensation receivable in respect of any requisition
  for hire;

   

  “Earnings
  Accounts” means
  together the Borrower A Earnings Account and the Borrower B Earnings Account
  and in the singular either of them;

   

  “Earnings
  Accounts’ Charge Agreements” means collectively the Borrower A Earnings Account’s Charge Agreement
  and the Borrower B Earnings Account’s Charge Agreement and in the singular
  means either of them;

   

  “EMU
  Legislation” means
  legislative measures of the Council of the European Union for the
  introduction of, changeover to, or operation of, a single or unified European
  currency being part of the Implementation of the Third Stage;

   

  “Encumbrance”
  means any mortgage,
  charge (whether fixed or floating), pledge, lien, hypothecation, assignment,
  trust agreement or security interest or other encumbrance of any kind
  securing any obligation of any person or having the effect of conferring
  security or any

  

 

7

 

	
   

  	
  type of preferential
  agreement (including without limitation, title transfer and/or retention
  arrangements having a similar effect);

   

  “Enforcement
  Action” shall mean
  any of the following actions taken by any of the Creditor Parties by means of
  an instruction to the Security Trustee, by an Instructing Group or otherwise:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  accelerating the due date of any liability of the
  Borrowers or either of them;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  commencing to enforce or enforcing any Finance
  Documents;

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  commencing or instructing the Security Trustee to
  commence to enforce or to enforce the Finance Documents or any of them or
  exercising any power under any Finance Document;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  taking any other action against any of the
  Security Parties or their assets or threatening any other action against any
  of the Security Parties or their assets the taking of which could materially
  affect the common interests of the Creditor Parties;

  
	
   

  	
   

  
	
   

  	
  “Environmental
  Approvals” means
  any permit, licence, approval, ruling, certification, variation, exemption or
  other authorisation relating to a Borrower and/or a Borrower’s business
  and/or the Manager and /or the Manager’s business and/or any other member of
  the Group and/or a Vessel and/or any other Relevant Ship required under
  applicable Environmental Laws;

   

  “Environmental
  Claim” means:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  any claim by, or directive from, any applicable
  governmental, judicial or other regulatory authority 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

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any claim by any other person howsoever relating
  to or arising out of an Environmental Incident

  
	
   

  	
   

  	
   

  
	
   

  	
  and, in each such case, “claim” shall mean a claim
  for damages, clean-up costs, compliance, remedial action or otherwise;

  
	
   

  	
   

  
	
   

  	
  “Environmental Incident” means:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  any release, discharge, disposal or emission of
  Material of Environmental Concern by or from a Relevant Ship;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any incident in which Material of Environmental
  Concern is released, discharged, disposed of, or emitted by or from a ship
  other than a Relevant Ship and which involves collision between a Relevant
  Ship and such other ship or some other incident

  

 

8

 

	
   

  	
   

  	
  of navigation or operation, in either case, where
  a Relevant Ship or the owner or other manager of a Relevant Ship is or are
  actually or allegedly at fault or otherwise liable (in whole or in part); or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  any incident in which Material of Environmental
  Concern is released, discharged, disposed of, or emitted by or from a ship
  other than a Relevant Ship and where a Relevant Ship is actually or
  potentially liable to be arrested or attached as a result and/or where any
  owner and/or any operator or a manager of a Relevant Ship is actually or
  allegedly at fault or otherwise liable (in whole or in part);

  
	
   

  	
   

  	
   

  
	
   

  	
  “Environmental
  Laws” means all
  national and international laws, ordinances, rules, regulations, rules of
  common law, conventions and agreements whatsoever pertaining to pollution or
  protection of human health or the environment (including, without limitation,
  the United States Oil Pollution Act of 1990 and any comparable laws of the
  individual States of the United States of America);

   

  “EURIBOR” means, for an Interest Period:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the rate per annum equal to the offered quotation
  for deposits in Euros for a period equal to, or as near as possible equal to,
  the relevant Interest Period which appears on the appropriate page of
  the Reuters Monitor Money Rates Service at or about 11.00 a.m. (Brussels
  time) on the Quotation Date for that Interest Period; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  if no rate is quoted on the appropriate page of
  the Reuters Monitor Money Rates Service, the rate per annum determined by the
  Agent to be the arithmetic mean (rounded upwards, if necessary, to the
  nearest one-sixteenth of one per cent.) of the rates per annum notified to
  the Agent by each Bank as the rate at which deposits in Euros are offered to
  that Bank by leading banks in the European Interbank Market at that Banks’
  request at or about 11.00 a.m. (Brussels time) on the Quotation Date for
  that Interest Period for a period equal to that Interest Period and for
  delivery on the first Business Day of it;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Euro” and “Euros”
  means, for the time being, the single currency of Participating
  Member States as provided in the EMU Legislation;

   

  “European
  Interbank Market” means
  the interbank market for Euros operating in Participating Member States;

   

  “Event of
  Default” means any
  of the events listed in Clause 22.1;

   

  “Facility”
  means the amount of
  up to Thirteen million Three hundred thousand Euros (€13,300,000) to be made
  available in up to two (2) Tranches to the Borrowers by the Banks
  pursuant to the terms of Clauses 2 and 3 or if the context may so
  require so much thereof as shall for the time being be outstanding to the
  Banks hereunder;

   

  “Final Availability Date” means 30th October 2007 (or
  such later date as the Agent may agree with the authorisation of the
  Banks);

  

 

9

 

	
   

  	
  “Final
  Maturity Date” means
  the earlier of (i) the date falling ten (10) years from the
  Delivery Date last to occur and (ii) 30th October 2017;

   

  “Finance
  Documents” means:

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  this Agreement;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the Security Documents;

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the L/C Facility Agreement; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  any other document (whether creating an
  Encumbrance or not) which is executed at any time by the Borrowers or any
  other Security Party or any Creditor Party or any other person as security
  for, or to establish any form of subordination or priorities’
  arrangement in relation to any amount payable to the Creditor Parties or any
  of them under this Agreement, the L/C Facility Agreement or any of the
  documents referred to in this definition;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Financial
  Statements” means
  the audited annual financial statements of the Borrowers, the Manager, AEGEAN
  PETROLEUM and of all other members of the Group referred to in Clause 18.1.1,
  comprising of a statement of income, balance sheet, cash flow statement and
  relative notes;

   

  “First
  Repayment Date” means
  in relation to each Tranche the date falling three (3) months after the
  earlier of (i) the Drawdown Date of the Delivery Advance of such Tranche
  and (ii) the Final Availability Date;

   

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

   

  “Group” means the Borrowers, the Manager, AEGEAN
  PETROLEUM and all shipping companies engaged in the bunkering business or
  services associated with or in the same or substantially the same beneficial
  ownership as the Borrowers, the Manager, AEGEAN PETROLEUM and “members of the Group” shall be construed
  accordingly;

   

  “Guarantees”
  means collectively
  the Corporate Guarantees and the Personal Guarantee and, in the singular,
  means any of them;

   

  “Guarantors”
  means collectively
  the Corporate Guarantors and the Personal Guarantor and, in the singular,
  means any of them;

   

  “Indebtedness” means any and all moneys, liabilities and
  obligations (whether actual or contingent, whether existing or hereafter
  arising, whether or not for the payment of money, and

  

 

10

 

	
   

  	
  including, without
  limitation, Broken Funding Costs (if any), and any obligation or liability to
  pay damages) which are now or which may at any time and from time to
  time hereafter be due, owing, payable or incurred or expressed to be due,
  owing, payable or incurred from the Borrowers (whether as principal, surety
  or otherwise) to the Creditor Parties or any of them under this Agreement,
  the L/C Facility Agreement and the other Finance Documents;

   

  “Instalments”
  means in respect of
  each Vessel collectively the Pre-Delivery Instalments and the Delivery
  Instalment in respect thereof and, in the singular, means any of them;

   

  “Instalment
  Payment Date” means
  in respect of each Vessel collectively the Steel Cutting Instalment Date, the
  Keel Laying Instalment Payment Date, the Launching Instalment Payment Date
  and the Delivery Instalment Payment Date and, in the singular, means any of
  them;

   

  “Instructing Group” means:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  subject to (b) below, all the Banks the
  aggregate of whose Commitments (as reduced pursuant to the relevant
  provisions of this Agreement) equals or exceeds seventy per cent (70%) of the
  Total Commitments; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  if any Bank transfers its Commitment (in part or
  in whole) pursuant to Clause 31 (Assignments) its reduced Commitment shall be
  used in the calculation in (a) above;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Insurance
  Documents” means
  all slips, contracts, policies, certificates of entry or other insurance
  documents evidencing or constituting the Insurances;

   

  “Insurances”
  means all policies
  and contracts of insurance (including all entries of a Vessel in a protection
  and indemnity and war risks association) or such other arrangements by way of
  insurance which are from time to time taken out or entered into in respect of
  or in connection with a Vessel and the Earnings pursuant to Clause 20 of this
  Agreement and all benefits of such insurances, including all claims of
  whatsoever nature and return of premiums;

   

  “Insurers”
  means the underwriters,
  insurance companies and mutual insurance associations with or by which the
  Insurances are effected;

   

  “Interest
  Determination Date” means
  the date of determination of an Interest Rate by the Agent for the relevant
  Interest Period in accordance with Clause 5.3;

   

  “Interest Payment Date” means the last day of each Interest Period
  save that in the case of any Interest Period of more than three (3) months
  duration, the Interest Payment Dates shall be each of the dates falling at
  consecutive three (3) monthly intervals after the commencement thereof
  and the last day thereof provided that if any such date is not a Business Day
  the relevant Interest Payment Date shall be the next succeeding day which is
  a Business Day unless such next succeeding Business Day falls in another
  calendar month in which event the relevant Interest Payment Date shall be the
  immediately preceding Business Day;

  

 

11

 

	
   

  	
  “Interest
  Period” means each
  of the successive periods determined in accordance with Clause 6 of this
  Agreement;

   

  “Interest
  Rate” means the
  aggregate of (a) the Applicable Margin and (b) EURIBOR;

   

  “IOTA” means IOTA CORPORATION of 80, Broad Street,
  Monrovia, Liberia;

   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

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

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

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

  
	
   

  	
   

  	
   

  
	
   

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

   

  “ISM Code Documentation” includes -

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  the document of compliance and safety management
  certificate issued pursuant to the ISM Code in relation to a Vessel within
  the periods specified by the ISM Code; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  all other documents and data which are relevant to
  the ISM, SMS and its implementation and verification which the Security
  Trustee may require; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  any other documents which are prepared or which
  are otherwise relevant to establish and maintain a Vessel’s and/or the Owner’s
  thereof compliance with the ISM Code which the Security Trustee may require;

  
	
   

  	
   

  	
   

  
	
   

  	
  “ISM Responsible Person” means -

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  each and every person who has assumed
  responsibility for the operation of a Vessel and has agreed to take over or
  is required to assume responsibility for the performance or observance of the
  duties and responsibilities imposed by the ISM Code; and

  

 

12

 

	
   

  	
  (b)

  	
  each and every person ashore who is a ‘designated
  person’ for the purposes of the ISM Code with direct access to the highest
  level of management of the Owner’s or any other operator of a Vessel and who,
  in that capacity, has under the ISM Code responsibility and authority which
  includes -

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)                                    monitoring the safety and pollution
  prevention aspects of the operation of a Vessel; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)                                ensuring that adequate resources and
  shore-based support are supplied,

  
	
   

  	
   

  	
   

  
	
   

  	
  as required under the ISM
  Code;

   

  “ISM SMS” means, in relation to a Vessel, the safety
  management system for such Vessel which is required to be developed,
  implemented and maintained by the Owner thereof under the ISM Code;

   

  “ISPS
  Code” means the
  International Ship and Port Facility Security Code adopted by the
  International Maritime Organization Assembly as the same may have been
  or may be amended or supplemented from time to time;

   

  “ISPS Code Documentation” includes:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the International Ship
  Security Certificate Issued pursuant to the ISPS Code in relation to a Vessel
  within the periods specified by the ISPS Code; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  all other documents and
  data which are relevant to the ISPS Code and its implementation and
  verification which the Banks may require;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Keel
  Laying Instalment”
  means the instalment of the Contract Price of a Vessel payable by the Owner
  thereof to the Builder on the date of the laying of the keel of that Vessel
  in accordance with the Shipbuilding Contract related to such Vessel and, in
  the plural, means both of them;

   

  “Keel
  Laying Instalment Payment Date” means in respect of each Vessel the date provided in Article III
  Clause 4 paragraph (c) of the relevant Shipbuilding Contract;

   

  “Launching
  Instalment” means
  the instalment of the Contract Price of a Vessel payable by the Owner thereof
  to the Builder on the date of the launching of such Vessel in accordance with
  the Shipbuilding Contract related to such Vessel and, in the plural, means
  both of them;

   

  “Launching
  Instalment Payment Date” means in respect of each Vessel the date provided in Article III
  Clause 4 paragraph (d) of the relevant Shipbuilding Contract;

   

  “L/C Bank” means HSH NORDBANK AG, in its capacity as
  issuing bank under the L/C Facility Agreement, or any successor of it in such
  capacity;

  

 

13

 

	
   

  	
  “L/C
  Facility” means the
  facility for an aggregate amount of up to Twelve million Three hundred Three
  thousand Euros (€12,303,000) to be made available to the Borrowers by the L/C
  Bank for the purpose of issuance of Letters of Credit pursuant to the terms
  of the L/C Facility Agreement;

   

  “L/C
  Facility Agreement”
  means the agreement made or to be made by and among the L/C Bank and the
  Borrowers pursuant to which the L/C Bank shall make available to the
  Borrowers the L/C Facility, as the same may from time to time be amended
  varied or supplemented;

   

  “Letters
  of Credit” or “L/Cs” means collectively the two
  letters of credit to be issued by the L/C Bank in favour of the Builder in
  connection with each Shipbuilding Contract in accordance with the terms of
  the L/C Facility Agreement together with any amendments thereto or supplements
  thereof and, in the singular, means either of them;

   

  “Manager” means AEGEAN BUNKERING SERVICES INC., a
  corporation duly formed and validly existing under the laws of the Republic
  of Marshall Islands, having its registered office at Trust Company Complex,
  Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands or
  any other company approved by the Security Trustee as manager of the Vessels;

   

  “Manager’s
  Guarantee” means
  the guarantee and indemnity in respect of the Borrowers’ obligations under
  this Agreement and the other Finance Documents to be executed by the Manager
  in favour of the Security Trustee in form and substance satisfactory to
  the Banks in its sole discretion as the same may from time to time be
  amended, varied or supplemented;

   

  “Market
  Value” means the
  market value of a Mortgaged Vessel determined in accordance with Clause 17.1;

   

  “Material
  of Environmental Concern” means oil, oil products and any other substance including any
  chemical, gas or other hazardous or noxious substance) which is (or is
  capable or being or becoming) polluting toxic or hazardous;

   

  “Mortgage” means in relation to each Vessel the first
  preferred or priority mortgage over each Vessel to be executed and delivered
  by the Owner thereof in favour of the Security Trustee or the Creditor
  Parties as appropriate to secure the due payment of the Indebtedness, in form and
  substance satisfactory to the Banks in their sole discretion as the same may from
  time to time be amended, varied or supplemented and, in the plural, means
  both of them;

   

  “Mortgaged
  Vessel” means at
  any relevant time a Vessel which is, at such time, subject to a Mortgage
  and/or the Earnings, Insurances and Requisition Compensation of which are
  subject to an Encumbrance and, in the plural, means both of them;

   

  “Notice
  of Drawdown” means
  the written notice in the form set out in Schedule 2 (or in any
  other form which the Agent may request);

   

  “Nomination
  Date” means the
  Business Day, which is three (3) Business Days prior to the commencement
  of an Interest Period;

  

 

14

 

	
   

  	
  “Other
  Accounts” means
  collectively the Retention Account and the Cash Collateral Account and in the
  singular means either of them;

   

  “Other
  Accounts’ Charge Agreement” means the first priority assignment, pledge and charge agreement to
  be made between the Borrowers and the Creditor Parties, assigning, pledging
  and charging each of the Other Accounts the monies from time to time credited
  therein to secure the due payment of the Indebtedness in form and
  substance satisfactory to the Banks and the L/C Bank in their sole discretion
  as the same may from time to time be amended, varied or supplemented;

   

  “Owner” means: 

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  in respect of the Vessel
  A: the Borrower A; and 

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  in respect of the Vessel
  B: the Borrower B, 

  
	
   

  	
   

  	
   

  
	
   

  	
  and in the plural means
  both of them;

   

  “Participating
  Member State” means
  each state so described in any EMU Legislation;

   

  “Party” means in relation to any document, a party
  to that document;

   

  “Permitted
  Encumbrance” means:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  any Encumbrance created by
  or pursuant to the Finance Documents; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any lien on a Vessel for
  crew’s wages or salvage or otherwise arising in the normal course of trading
  and being regularly settled, the total amount of such lien or liens not to be
  material in the sole opinion of the Agent in relation to any security created
  in favour of the Security Trustee or the Creditor Parties pursuant to the
  Finance Documents;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Personal
  Guarantor” means an
  individual acceptable to the Creditor Parties in their sole discretion who
  shall execute the Personal Guarantee;

   

  “Personal
  Guarantee” means
  the guarantee in respect of the Borrowers’ obligations under this Agreement
  and the other Finance Documents to be executed by the Personal Guarantor in
  favour of the Creditor Parties in form and substance satisfactory to the
  Banks in their sole discretion as the same may from time to time be
  amended, varied or supplemented;

   

  “Post-Delivery
  Period” means in
  respect of each Vessel the period commencing on the Delivery Date on such
  Vessel and ending on the date on which the Indebtedness shall have been
  repaid in full to the Creditor Parties;

   

  “Potential
  Event of Default”
  means any event which may become with the giving of notice or passage of
  time or other conditions or any combination of the foregoing, an Event of
  Default;

  

 

15

 

	
   

  	
  “Pre-Delivery
  Advance A “ means
  an amount of up to Five million One hundred Twenty-Six thousand Two hundred
  Fifty Euros (€5,126,250) to be drawndown pursuant to the terms and conditions
  of this Agreement for the purpose referred to in sub-Clause 2.2 (a) or
  (as the context may require) the amount thereof from time to time
  outstanding hereunder;

   

  “Pre-Delivery
  Advance B” means an
  amount of up to Five million One hundred Twenty-Six thousand Two hundred
  Fifty Euros (€5,126,250) to be drawdown pursuant to the terms and conditions
  of this Agreement for the purpose referred to in sub-Clause 2.2 (a) or
  (as the context may require) the amount thereof from time to time
  outstanding hereunder;

   

  “Pre-Delivery
  Advances” means
  collectively the Pre-Delivery Advance A and the Pre-Delivery Advance B and,
  in the singular, means either of them;

   

  “Pre-Delivery
  Instalments” means
  in respect of each Vessel collectively the Steel Cutting Instalment, the Keel
  Laying Instalment and the Launching Instalment in respect of such Vessel and,
  in the singular, means any of them;

   

  “Pre-Delivery
  Period” means in
  respect of each Vessel the period commencing on the Drawdown Date of the
  Pre-Delivery Advance drawndown in respect of such Vessel and ending on the
  Delivery Date of such Vessel;

   

  “Proceeds”
  means the proceeds
  paid under the terms of the Finance Documents (including but not limited to
  the proceeds of a sale of a Vessel, the Earnings and the Insurances), the
  proceeds from the enforcement of any of the Finance Documents, and following
  an Event of Default any moneys to the credit of the Borrowers or either of
  them in the Accounts or any of them;

   

  “Proportionate
  Share” means, at
  any time, the proportion which that Bank’s Commitment (which has been
  advanced) then bears to the aggregate Commitments of all the Banks (which
  have been advanced).

   

  “Protection
  and Indemnity Risks” means
  the usual risks covered by a protection and indemnity association that is a
  member of the International Group of Protection and Indemnity Associations,
  including the proportion not otherwise recoverable in case of collision under
  the ordinary running-down clause;

   

  “Purchase
  Documents” means in
  respect of each Vessel all documents referred to in Article VIII, Clause
  3 of the relevant Shipbuilding Contract which shall be delivered to the
  relevant Owner by the Builder including without limitation, the Builder’s
  certificate, the Builder’s invoices, the bill of sale, the protocol of
  delivery and acceptance, the commercial invoices and the class certificates;

   

  “Quotation
  Date” means, in
  relation to any Interest Period (or any other period for which an interest
  rate is to be determined under any provision of a Finance Document), the
  Target Day on which quotations would ordinarily be given by leading banks in
  the European Interbank Market for deposits in Euros for delivery on the first
  day of that Interest Period or other period;

  

 

16

 

	
   

  	
  “Refund
  Guarantees” means
  collectively each refund guarantee to be issued by the Refund Guarantor
  pursuant to each Shipbuilding Contract and, in the singular, means any of
  them;

   

  “Refund
  Guarantor” means
  BANCA COMMERCIALA ROMANA S.A. of the Republic of Romania and/or any other
  bank acceptable to Creditor Parties, in their sole discretion, as issuing
  bank of the Refund Guarantees and, in the plural, means all of them;

   

  “Relevant
  Ship” means the
  Vessels and any other ship from time to time owned, managed or crewed by, or
  demise or bareboat chartered to a Borrower and/or any other member of the
  Group;

   

  “Requisition
  Compensation” means
  all compensation payable by reason of any Compulsory Acquisition of a Vessel;

   

  “Repayment
  Date” means in
  respect of each Tranche, the First Repayment Date in respect of such Tranche
  and each of the thirty nine (39) dates falling at three (3) monthly
  intervals after such First Repayment Date up to and including the date
  falling one hundred and seventeen days after such First Repayment Date,
  provided that if such day is not a Business Day, that Repayment Date shall be
  the next succeeding day which is a Business Day unless such next succeeding
  Business Day falls in another calendar month in which event that Repayment
  Date shall be the immediately preceding Business Day;

   

  “Repayment
  Instalment” means
  in respect of each Tranche each of the instalments referred to in sub-Clause
  10.1 (a) and, in the plural, means all of them;

   

  “Retention
  Account” means the
  interest-bearing deposit account number 0100285-50028 with account name OCEAN
  DYNAMIC CORP et al – Retention Account’ to be maintained throughout the
  Security Period with the Agent in Athens, Republic of Greece, such account to
  include any substitute account or revised account or revised designation or
  number whatsoever;

   

  “Security
  Documents” means
  together the Mortgages, the Assignment Agreements, the Accounts’ Charge
  Agreements, the Assignments of the Shipbuilding Contracts, the Assignments of
  the Refund Guarantees, the Guarantees and any other agreement or document
  that may be executed at any time by the Borrowers, the other Security
  Parties or any other person as security for all or any part of the
  Indebtedness and in the singular means any of them;

   

  “Security
  Parties” means each
  Party to the Finance Documents (other than the Creditor Parties) and in the
  singular means any one of them;

   

  “Security
  Period” means the
  period commencing with the execution of this Agreement and ending on the date
  on which the Indebtedness is repaid in full to the Creditor Parties to the
  full satisfaction of the Security Trustee;

  

 

17

 

	
   

  	
  “Security
  Requirement” means
  the amount in Euros (as certified by the Agent whose certificate shall, in
  the absence of manifest error, be conclusive and binding on the Borrowers and
  the Creditor Parties) which is, at any relevant time:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  during the period
  commencing on the earlier of (i) the Drawdown Date of the last Delivery
  Advance to be drawn down and (ii) the Final Availability Date and ending
  on the date falling sixty (60) months thereafter (the “Security Requirement Adjustment Date”), One
  hundred Twenty-Five per cent (125%) of the Facility;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  during the period commencing
  on the date falling immediately after the Security Requirement Adjustment
  Date and ending on the date when all amounts owing under this Agreement and
  the other Finance Documents have been paid in full, One hundred Thirty-Five
  per cent (135%) of the Facility;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Security
  Trustee” means
  AEGEAN BALTIC BANK S.A., in its capacity as security trustee for the Banks
  and the L/G Bank under the Finance Documents, or any successor of it in such
  capacity appointed under this Agreement;

   

  “Security
  Value” means the
  amount in Euros (as certified by the Agent whose certificate shall in the
  absence of manifest error, be conclusive and binding on the Borrowers and the
  Creditor Parties) which is, at any relevant time, the aggregate of the market
  values of the Mortgaged Vessels as most recently determined in accordance
  with Clause 17.1;

   

  “Servicing
  Bank” means each of
  the Arranger, the Agent and the Security Trustee whether as at the date of
  this Agreement or at any time thereafter;

   

  “Shipbuilding
  Contract A” means the
  shipbuilding contract dated 3rd June 2005 entered into
  between the Builder as builder/seller and the Borrower A as buyer, for the
  construction and completion of the Vessel A at the Contract Price, as the
  same may from time to time be amended, varied or supplemented, with the
  Security Trustee’s prior written consent;

   

  “Shipbuilding
  Contract B” means
  the shipbuilding contract dated 3rd June 2005 entered into
  between the Builder as builder/seller and the Borrower B as buyer, for the
  construction and completion of the Vessel B at the Contract Price, as same may from
  time to time be amended, varied or supplemented;

   

  “Shipbuilding
  Contracts” means
  together the Shipbuilding Contract A and the Shipbuilding Contract B, and, in
  the singular, means either of them;

   

  “Steel
  Cutting Instalment” means
  the instalment of the Contract Price of a Vessel payable by the Owner thereof
  to the Builder on the date of the steel cutting of that Vessel in accordance
  with the Shipbuilding Contract related to such Vessel and, in the plural,
  means both of them;

   

  “Steel
  Cutting Instalment Payment Date” means in respect of each Vessel the date provided in Article III
  Clause 4 paragraph (b) of each relevant Shipbuilding Contract;

  

 

18

 

	
   

  	
  “Subject Documents” means all of the
  Finance Documents, the Shipbuilding Contracts, the Additional Works
  Contracts, the Refund Guarantees, the Letters of Credit, the Purchase
  Documents and the Approved Management Agreements (none to be amended, varied,
  supplemented or modified without the consent of the Security Trustee) and
  together with any other instruments, document or memorandum, scheduled to any
  of the documents referred to above, and any notice, consent or
  acknowledgement referred to in or required pursuant to any of the documents
  referred to above and any document, instrument or memorandum which secures
  any of the obligations of the Borrowers under any of the Finance Documents or
  under any other Subject Document;

   

  “Target
  Day” means a day on
  which the Trans-European Automated Real time Gross settlement Express
  Transfer system is open, which is, at the date of this Agreement, any day
  (other than a Saturday or Sunday) other than Christmas Day and New Year’s
  Day;

   

  “Taxes” means any present or future tax, levy,
  impost, duty, charge, fee, deduction or withholding of any nature and
  whatever called, by whomsoever, on whomsoever and wherever imposed, levied,
  collected, withheld or assessed (other than taxes on the overall net income
  of the Banks) and “Tax” and “Taxation” shall be construed
  accordingly;

   

  “Third
  Stage” means the
  third stage of European economic and monetary union pursuant to the Treaty on
  European Union;

   

  “Total
  Commitments” means
  in relation to the Banks, the aggregate for the time being of their respective
  Commitments in respect of the Facility;

   

  “Total
  Construction Cost” means
  in respect of each Vessel together the Additional Construction Cost and the
  Contract Price;

   

  “Total
  Loss” means in
  relation to a Vessel:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  the actual or constructive
  or compromised or arranged or agreed total loss of a Vessel; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the Compulsory Acquisition
  of a Vessel; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the hijacking, theft,
  condemnation, capture, seizure, arrest, detention or confiscation of a Vessel
  (other than where the same amounts to the Compulsory Acquisition of a Vessel)
  by any Government Entity or by persons acting or purporting to act on behalf
  of any Government Entity unless a Vessel be released and restored to the
  Owner thereof from such hijacking, theft, condemnation, capture, seizure,
  arrest, detention or confiscation within thirty (30) days after the
  occurrence thereof;

  
	
   

  	
   

  	
   

  
	
   

  	
  “Tranches” means collectively the Vessel A
  Tranche and the Vessel B Tranche and, in the singular, means either of them;

   

  “Transfer
  Certificate” means
  a certificate substantially in the form set out in Schedule 3
  signed by a Bank and a Transferee whereby:

  

 

19

 

	
   

  	
  (i)

  	
  such Bank seeks to procure
  the transfer to such Transferee of all or a part of the Bank’s rights
  and obligations hereunder, subject to and upon the terms and conditions set
  out in Clause 31; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  such Transferee undertakes
  to perform the obligations it will assume as a result of delivery of
  such certificate to the Agent as contemplated in Clause 31.5; 

  
	
   

  	
   

  	
   

  
	
   

  	
  “Transferee” means a bank to which a Bank
  seeks to transfer all or part of its rights and obligations in
  accordance with Clause 31;

   

  “Treaty on European Union” means the
  Treaty of Rome of 25 March 1957, as amended by the Single European Act
  1986 and the Maastricht Treaty of 7 February 1992;

   

  “Trust
  Property” means
  collectively -

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  the security, powers,
  rights, titles, benefits and interests (both present and future) constituted
  by and conferred on the Security Trustee under or pursuant to the Finance
  Documents (including, without limitation, the benefit of all covenants and
  undertakings given in the Finance Documents);

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  all moneys, property and
  other assets paid or transferred to or vested in the Security Trustee (or any
  agent of the Security Trustee) or received or recovered by the Security
  Trustee and/or the Agent (or any agent of the Security Trustee and/or the
  Agent) pursuant to, or in connection with, any of the Finance Documents; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  all rights, benefits,
  interests, money, investments, property, and other assets at any time
  representing or deriving from any of the foregoing, including all interest,
  income and other sums at any time received or receivable by the Security
  Trustee (or the Agent or any other agent of the Security Trustee and/or the
  Agent) in respect of the same (or any part thereof);

  
	
   

  	
   

  	
   

  
	
   

  	
  “Vessel A” means the double-hull single
  screw diesel engine driven carrier of diesel oil gasoline and other clean and
  dirty oil products with roro facility of approximately 2,400 dwt having hull no. N2230007
  to be constructed by the Builder pursuant to the Shipbuilding Contract A, to
  be acquired by the Borrower A and to be registered on the relevant Delivery
  Date in its ownership under a flag acceptable to the Creditor Parties under a
  name approved by the relevant flag authorities;

   

  “Vessel A
  Advances” means
  collectively the Pre-Delivery Advance A, the Delivery Advance A and the
  Additional Works Advance A and in the singular, means any of them;

   

  “Vessel A
  Tranche” means that
  part of the Facility consisting of the Vessel A Advances;

   

  “Vessel B”
  means the
  double-hull single screw diesel engine driven carrier of diesel oil gasoline
  and other clean and dirty oil products of approximately 2,400 dwt having hull
  no. N2220000 being constructed by the Builder pursuant to the
  Shipbuilding Contract B to be acquired by the Borrower B and to be registered
  on the relevant Delivery Date in its ownership under a flag acceptable to the
  Creditor Parties under a name approved by the relevant flag authorities;

  

 

20

 

	
   

  	
  “Vessel B Advances” means collectively the
  Pre-Delivery Advance B, the Delivery Advance B and the Additional Works
  Advance B and in the singular, means any of them;

   

  “Vessel B
  Tranche” means that
  part of the Facility consisting of the Vessel B Advances;

   

  “Vessel’s
  Security Documents” means
  in respect of each Vessel together the Mortgage and the Assignment Agreement
  in respect of such Vessel and, in the singular, means any of them;

   

  “War Risks” means the risk of any hostile
  acts, mines or torpedoes and all risks excluded by F.C. & S Clauses
  24 - 26 (inclusive) of the Institute Time Clauses (Hulls) (1.11.95) (or any
  equivalent provision); and

  
	
   

  	
   

  
	
  1.2

  	
  In this Agreement references
  to the “Arranger”, the “Agent”, the “Security Trustee”, the “L/C
  Bank” or any “Bank” shall be construed so as to
  include its and any subsequent successors, assigns, transferees and
  sub-participants in accordance with their respective interests.

  
	
   

  	
   

  
	
  1.3

  	
  In this Agreement
  references to periods of ‘months’ shall mean 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 in which such period started
  and (a) if such numerically corresponding day is not a Business Day,
  such period shall end on the next following Business Day in the same calendar
  month, or if there is no such Business Day, such period shall end on the
  preceding Business Day and (b) if there is no numerically corresponding
  day in the next calendar month then such period shall end on the last
  Business Day in that calendar month (and ‘month’ and ‘monthly’ shall be
  construed accordingly).

  
	
   

  	
   

  
	
  1.4

  	
  In this Agreement unless
  the context otherwise requires -

  
	
   

  	
   

  
	
  1.4.1

  	
  clause headings and
  sub-headings are inserted for convenience only and shall not affect the
  construction of the Agreement and unless otherwise specified, all references
  to Clauses and Schedules are to clauses of, and schedules to, this Agreement;

  
	
   

  	
   

  
	
  1.4.2

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

  
	
   

  	
   

  
	
  1.4.3

  	
  fees, costs and expenses
  shall be exclusive of any value added tax or similar tax (if any) which shall
  accordingly be payable in addition;

  
	
   

  	
   

  
	
  1.4.4

  	
  any reference to
  agreements, documents or instruments includes a reference to that agreement,
  document or instrument as amended, supplemented, substituted, novated,
  replaced or assigned from time to time;

  
	
   

  	
   

  
	
  1.4.5

  	
  references to persons
  include any individual, partnership, firm, trust, body corporate, government,
  governmental body, authority, agency, unincorporated body of persons or
  association;

  
	
   

  	
   

  
	
  1.4.6

  	
  a reference to any
  enactment or statutory provision include any enactment or statutory provision
  which amends, extends, consolidates or replaces the same or which has been

  

 

21

 

	
   

  	
  amended, extended,
  consolidated or replaced by the same and shall include any orders,
  regulations, codes of practice, instruments or other subordinated legislation
  made under the relevant enactment or statutory provision;

  
	
   

  	
   

  
	
  1.4.7

  	
  the words ‘herein’, ‘hereto’
  and ‘hereunder’ refer to this Agreement as a whole and not to the particular
  Clause or Schedule in which the words may be used;

  
	
   

  	
   

  
	
  1.4.8

  	
  the liquidation,
  winding-up or dissolution of a company or body corporate or the appointment
  of a receiver, manager or administrator of or in relation to a company or
  body corporate or any of its assets shall be construed so as to include any
  equivalent or analogous proceedings under the law of the jurisdiction in
  which it is incorporated or any jurisdiction in which it carries on business
  or has assets or liabilities; and

  
	
   

  	
   

  
	
  1.4.9

  	
  a reference to any “relevant
  Advance” (including without limitation any Pre-Delivery Advance, and Delivery
  Advance or any Additional Works’ Advance) when used in connection with a
  particular Vessel shall be construed as reference to the Vessel being
  financed by such Advance and references to the “relevant Broker” or “relevant
  Owner” shall be construed accordingly.

  
	
   

  	
   

  
	
  1.5

  	
  This Agreement supersedes
  the terms and conditions contained in any correspondence relating to the
  subject matter of this Agreement exchanged between the Arranger, the Agent or
  the Security Trustee or any of the Banks and the Borrowers or their
  representatives prior to the date of this Agreement, including, without
  limitation, the Commitment Letter.

  
	
   

  	
   

  
	
  2

  	
  THE
  FACILITY – THE BORROWERS’ JOINT AND SEVERAL LIABILITY – THE CASH COLLATERAL
  ACCOUNT

  
	
   

  	
   

  
	
  2.1

  	
  Subject to the terms and
  conditions of this Agreement, each of the Banks hereby agree to make
  available to the Borrowers upon the terms and subject to the conditions of
  this Agreement its Commitment of an aggregate amount not exceeding at any
  relevant time Thirteen million Three hundred thousand Euros (€13,300,000) to
  finance up to 80% of the Total Construction Cost of the Vessels in two (2) equal
  Tranches, each in the amount of up to Six million Six hundred and Fifty
  thousand Euros (€6,650,000) each of which shall be provided in three (3) Advances
  provided however that:

  
	
   

  	
   

  
	
   

  	
  (a)                        a Pre-Delivery Advance in respect of a
  Vessel shall be in an amount of up to 75% of the Contract Price of that
  Vessel;

  
	
   

  	
   

  
	
   

  	
  (b)                        a Delivery Advance in respect of a Vessel
  which when aggregated with the amount of the Pre-Delivery Advance in respect
  of that Vessel shall not exceed 80% of the Contract Price of that Vessel; and

  
	
   

  	
   

  
	
   

  	
  (c)                        an Additional Works’ Advance in respect of
  a Vessel shall not exceed 80% of the Additional Construction Cost of that Vessel.

  

 

22

 

	
  2.2

  	
  Each of the Borrowers
  hereby undertakes to use the entire proceeds of each Advance as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  each Pre-Delivery Advance
  for the purpose of assisting each Borrower in securing its obligations under
  the L/C Facility Agreement, provided however that both Pre-Delivery Advances
  shall be made available to the Borrowers on the same Drawdown Date;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  each Delivery Advance for
  the purpose of assisting each Borrower in refinancing shareholders loans
  incurred in connection with the construction of the Vessel being purchased by
  it; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  each Additional Works’
  Advance for the purpose of assisting each Borrower in refinancing
  shareholders’ loans incurred in connection with the Additional Works’
  Contract of the Vessel being purchased by it.

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Each of the Borrowers
  hereby (a) irrevocably instructs the Banks and the Agent to credit both
  Pre-Delivery Advances on the Drawdown Date to the Cash Collateral Account, (b) undertakes
  to pay to the credit of the Cash Collateral Account on or prior to the
  Drawdown Date of the Pre-Delivery Advances any and all amounts required so
  that the amount credited to the Cash Collateral Account is equal to the
  amount of the L/C Facility, provided however that the Agent shall (and is
  hereby irrevocably instructed by the Borrowers to effect the relevant
  payments) at the written request of the Borrowers’ and with the prior written
  consent of the L/C Bank make the following payments to the Builder from funds
  credited to the Cash Collateral Account subject to (i) no Event of
  Default having occurred, (ii) no prior demand in respect of the relevant
  sum under a Letter of Credit having been made and (iii) the conditions
  precedent referred to in Clause 16.2 having been duly fulfilled to the
  satisfaction of the Security Trustee:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  an amount of up to Euros
  One million Twenty-Five thousand Two hundred Fifty (€1,025,250) towards
  payment to the Builder of the Steel Cutting Instalment for each Vessel on the
  Steel Cutting Instalment Payment Date in respect thereof;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  an amount of up to Euros
  One million Twenty-five thousand Two hundred Fifty (€1,025,250) towards
  payment to the Builder of the Keel Laying Instalment for each Vessel on the
  Keel Laying Instalment Payment Date in respect thereof;

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the amount of up to Euros
  One million Three hundred Sixty-Seven thousand (€1,367,000) towards payment
  to the Builder of the Launching Instalment for each Vessel on the Launching
  Instalment Payment Date in respect thereof;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  the amount of up to Euros
  Two million Seven hundred Thirty-Four thousand (€2,734,000) towards payment
  to the Builder of the Delivery Instalment for each Vessel on the Delivery
  Instalment Payment Date in respect thereof.

  

 

23

 

	
  2.4

  	
  Subject to the terms of
  this Agreement, each of the Banks shall make their respective Commitment
  available to the Borrowers on each Drawdown Date in respect thereof.

  
	
   

  	
   

  
	
  2.5

  	
  All the liabilities and
  obligations of the Borrowers under this Agreement shall, whether expressed to
  be so or not, be joint and several so that each Borrower shall be jointly and
  severally responsible with the other Borrower for all liabilities and
  obligations of the Borrowers under this Agreement and so that such
  liabilities and obligations shall not be impaired by -

  
	
   

  	
   

  	
   

  
	
   

  	
  1.

  	
  any failure of this
  Agreement to be legal, valid, binding and enforceable in relation to either
  of the Borrowers whether as a result of lack of corporate capacity, due
  authorisation, effective execution or otherwise;

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  any giving of time,
  forbearance, indulgence, waiver or discharge in relation to either of the
  Borrowers or to any other party of the Security Documents; or

  
	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  any other matter or event
  whatsoever which might have the effect of impairing all or any of the
  liabilities and obligations of either of the Borrowers.

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Each of the Borrowers
  declares that it is and will, throughout the Security Period, remain a
  principal debtor for all amounts owing under this Agreement and neither of
  the Borrowers shall in any circumstances be construed to be a surety for the
  obligations of the other Borrower hereunder.

  
	
   

  	
   

  
	
  2.7

  	
  Until all sums owing to
  the Creditor Parties by the Borrowers under this Agreement and the other
  Finance Documents have been paid in full neither of the Borrowers (hereinafter
  called “Creditor Borrower”) will
  without the prior written consent of the Agent ask, demand, sue for, take or
  receive from the other Borrower or any other member of the Group (hereinafter
  called “Debtor Borrower”) by
  set-off or any other manner the whole or any part of all present and
  future sums, liabilities and obligations payable or owing by the Debtor
  Borrower to the Creditor Borrower whether actual or contingent jointly or
  severally or otherwise howsoever (such sums being hereinafter called the “Subordinated Liabilities”) so long as
  any Senior Liabilities are outstanding to the Banks (for which purpose “Senior Liabilities” shall mean all
  present and future sums, liabilities and obligations whatsoever payable or
  owing by the Borrowers (or either of them) pursuant to the Finance Documents
  or any of them or otherwise whatsoever, whether actual or contingent jointly
  or severally or otherwise howsoever).

  
	
   

  	
   

  
	
  2.8

  	
  The Creditor Parties may,
  but will not be bound to, enquire as to the proposed or actual application of
  an Advance, but will not be bound to monitor or verify that application or be
  responsible for, or for the consequences of, that application.

  
	
   

  	
   

  
	
  3

  	
  AVAILABILITY
  – COMMITMENTS BY THE BANKS – POSITION OF THE BANKS AND THE INSTRUCTING GROUP

  
	
   

  	
   

  
	
  3.1

  	
  Subject as herein provided
  each Advance is available to the Borrowers for drawing until its Applicable
  Availability Date. Any Advance or any part thereof which remains undrawn
  at the close of business in Athens on its Applicable Availability Date shall
  be automatically cancelled.

  

 

24

 

	
  3.2

  	
  The Banks severally agree
  with the Borrowers to make the Facility available in the proportionate amount
  of their Commitments to the Total Commitments on the terms and conditions set
  out in this Agreement. In the event that any Bank fails to make available its
  Commitment in respect of any Advance neither the Agent, nor any other
  Creditor Party shall be liable to the Borrowers to make available all or any part of
  such Commitment nor to compensate the Borrowers for such failure.

  
	
   

  	
   

  
	
  3.3

  	
  Notwithstanding any other
  term of this Agreement, the interests of the Banks and the L/C Bank under
  this Agreement and the L/C Facility Agreement are several and the aggregate
  of the amounts outstanding at any time hereunder or under the L/C Facility
  Agreement or under the other Finance Documents from the Borrowers to each
  Bank or the L/C Bank (as the case may be) is a separate and independent
  debt; accordingly each Bank and the L/C Bank shall be entitled to sue for any
  amount which has become due and payable by the Borrowers to it under this
  Agreement and the L/C Facility Agreement without joining the Arranger, the
  Agent, the Security Trustee or any other Bank as additional parties in the proceedings.

  
	
   

  	
   

  
	
  3.4

  	
  However, without the prior
  consent of the Instructing Group, a Bank or the L/C Bank may not bring
  proceedings in respect of:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  any other liability or
  obligation of any Security Party under or connected with a Finance Document;
  or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any misrepresentation or
  breach of warranty by any Security Party in or connected with a Finance
  Document.

  
	
   

  	
   

  
	
  3.5

  	
  The obligations of the
  Banks and the L/C Bank under this Agreement, the L/C Facility Agreement and
  the other Finance Documents are several; and a failure of a Bank or the L/C
  Bank to perform its respective obligations under this Agreement or the
  L/C Facility Agreement or any other Finance Documents shall not result in:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the obligations of the
  other Banks or the L/C Bank being increased; nor

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any Security Party or any
  other Bank or the L/C Bank being discharged (in whole or in part) from its
  obligations under any Finance Document;

  
	
   

  	
   

  	
   

  
	
   

  	
  and in no circumstances
  shall a Bank or the L/C Bank have any responsibility for a failure of another
  Bank to perform its obligations under this Agreement or any other
  Finance Documents.

  
	
   

  	
   

  
	
  3.6

  	
  Every Bank, the L/C Bank
  and each Security Party shall be bound by:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  any determination made, or
  action taken, by the Instructing Group under any provision of a Finance
  Document;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any instruction or
  authorisation given by the Instructing Group to any Servicing Bank under or
  in connection with any Finance Document;

  

 

25

 

	
   

  	
  (c)

  	
  any action taken (or in
  good faith purportedly taken) by the Servicing Bank in accordance with such
  an instruction or authorisation.

  
	
   

  	
   

  	
   

  
	
  3.7

  	
  However, the Borrowers and
  each other Security Party:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  shall be entitled to
  assume that the Instructing Group has duly given any instruction or
  authorisation which, under any provision of a Finance Document, is required
  in relation to any action which the Servicing Bank has taken or is about to
  take; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  shall not be entitled to
  require any evidence that such an instruction or authorization has been
  given.

  
	
   

  	
   

  	
   

  
	
  3.8

  	
  In Clauses 3.6 and 3.7
  references to action taken include (without limitation) the granting of any
  waiver or consent, an approval of any document and an agreement to any
  matter.

  
	
   

  	
   

  
	
  3.9

  	
  Nothing contained in this
  Agreement and no action taken by the Creditor Parties pursuant to this
  Agreement or under the other Finance Documents shall be deemed to constitute
  the Creditor Parties as a partnership, association, joint venture or other
  entity.

  
	
   

  	
   

  
	
  4

  	
  NOTICE OF
  DRAWDOWN

  
	
   

  	
   

  
	
  4.1

  	
  The Borrowers may make
  a request for an Advance by sending to the Agent a duly completed Notice of
  Drawdown subject to the conditions in this Clause 4.

  
	
   

  	
   

  
	
  4.2

  	
  All Advances shall be
  subject to the following conditions being complied with to the Agent’s and
  the Security Trustee’s satisfaction -

  
	
   

  	
   

  
	
  4.2.1

  	
  on the Drawdown Date of an
  Advance the conditions precedent set out in Clause 16 in respect thereof
  shall have either been satisfied or have been waived by the Security Trustee
  acting with the authorisation of all Banks (whether with or without
  conditions) and the undertakings in Clause 19 so far as they are relevant on
  such Drawdown Date have at all times been complied with; and

  
	
   

  	
   

  
	
  4.2.2

  	
  on the date of a Notice of
  Drawdown and on the relevant Drawdown Date of that Advance no Event of
  Default or Potential Event of Default has occurred and is continuing or might
  result from the relevant Advance being paid to the Borrowers; and

  
	
   

  	
   

  
	
  4.2.3

  	
  on each date of a Notice
  of Drawdown the representations and warranties set out in Clause 14 and the
  other Security Documents are true and correct; and

  
	
   

  	
   

  
	
  4.2.4

  	
  the Agent shall have
  received a Notice of Drawdown not later than 11.00 a.m. (London time) on
  the third (3rd) Business Day prior to the relevant Drawdown Date (or such
  shorter period as may be agreed by the Agent) from the Borrowers setting
  out such proposed Drawdown Date.

  
	
   

  	
   

  
	
  4.3

  	
  A Notice of Drawdown once
  made shall be irrevocable.

  

 

26

 

	
  5

  	
  INTEREST

  
	
   

  	
   

  
	
  5.1

  	
  On each Interest Payment
  Date the Borrowers shall pay to the Agent for the account of the Banks for
  the period elapsed accrued interest at the Interest Rate on the amount of
  each Advance in Euros.

  
	
   

  	
   

  
	
  5.2

  	
  Interest shall be
  calculated on the basis of the actual number of days elapsed and a three
  hundred and sixty (360) day year or on such basis as the Agent may determine
  in accordance with market practice.

  
	
   

  	
   

  
	
  5.3

  	
  Each determination of an
  Interest Rate hereunder shall be made by the Agent on each day on which
  quotations would ordinarily be given by leading banks in the European
  Interbank market for deposits in Euros for delivery on the first day of the
  relevant Interest Period and shall be promptly notified by the Agent to the
  Borrowers and the Banks.

  
	
   

  	
   

  
	
  6

  	
  INTEREST
  PERIODS

  
	
   

  	
   

  
	
  6.1

  	
  Subject to Clause 6.2, the
  Interest Periods shall be periods of a duration of three (3), six (6) or
  nine (9) months (or such other periods as the Banks and the Borrowers may agree)
  as selected by the Borrowers by written notice to be received by the Agent
  not later than 11.00 a.m. (London time) on the relevant Nomination Date.

  
	
   

  	
   

  
	
  6.2

  	
  Notwithstanding the
  provisions of Clause 6.1 -

  
	
   

  	
   

  
	
  6.2.1

  	
  Subject to the provisions
  of Clause 6.2.5, the initial Interest Period in respect of the Advance first
  to occur under each Tranche shall commence on the Drawdown Date thereof and
  shall end on the expiry date thereof and the initial Interest Period in
  respect of any subsequent Advance in respect of the relevant Tranche shall
  commence on the Drawdown Date thereof and shall end on the last day of the
  then current Interest Period in respect of the Advance or Advances previously
  drawndown in respect of that Tranche and upon expiration of the first
  Interest Period of the Advance last to occur in respect of a Tranche, all
  Advances in respect of such Tranche shall be consolidated into and shall be
  treated in all respects as a single Advance and each subsequent Interest
  Period for such consolidated single Advance shall commence on the expiry of
  the preceding Interest Period in respect thereof;

  
	
   

  	
   

  
	
  6.2.2

  	
  if any Interest Period
  would otherwise end on a day which is not a Business Day, that Interest
  Period shall be extended to the next succeeding day which is a Business Day
  unless such next succeeding Business Day fails in another calendar month in
  which event the Interest Period shall end upon the immediately preceding
  Business Day;

  
	
   

  	
   

  
	
  6.2.3

  	
  if any Interest Period
  commences on the last Business Day in a calendar month or if there is no
  numerically corresponding day in the month in which that Interest Period
  ends, that Interest Period shall end on the last Business Day in that later
  month;

  
	
   

  	
   

  
	
  6.2.4

  	
  no Interest Period shall
  extend beyond the Final Maturity Date; and

  

 

27

 

	
  6.2.5

  	
  if the Borrowers fail to
  select an Interest Period in accordance with the above, such Interest Period
  shall be of three (3) months duration or of such other duration as the
  Agent may in its sole discretion select. 

  
	
   

  	
   

  
	
  7

  	
  SUBSTITUTE
  BASIS

  
	
   

  	
   

  
	
  7.1

  	
  If a Bank determines
  (which determination shall be conclusive) that -

  
	
   

  	
   

  
	
  7.1.1

  	
  at 11.00 a.m. (London
  time) on any Interest Determination Date such Bank was not being offered by
  banks in the European Interbank Market deposits in Euros in the required
  amount and for the required period; or 

  
	
   

  	
   

  
	
  7.1.2

  	
  such deposits are not
  available by reason of circumstances affecting the European Interbank Market;
  or 

  
	
   

  	
   

  
	
  7.1.3

  	
  such deposits are not
  available to such Bank in such market; or 

  
	
   

  	
   

  
	
  7.1.4

  	
  adequate and reasonable
  means do not or will not exist for such Bank to obtain or ascertain the
  Interest Rate applicable to the next succeeding Interest Period; or

  
	
   

  	
   

  
	
  7.1.5

  	
  Euros will or may not
  be freely transferable,

  
	
   

  	
   

  
	
   

  	
  then, and in any such case
  the Agent shall give notice of any such event to the Borrowers and, in case
  any of the above occurs on the Interest Determination Date prior to a
  Drawdown Date the Borrowers’ right to borrow the part of the Facility
  which remains available for borrowing shall be suspended during the
  continuation of such circumstances.

  
	
   

  	
   

  
	
  7.2

  	
  If, however, any of the
  events described in Clause 7.1 occurs on any other Interest Determination
  Date relative to the Facility or any part thereof, then the duration of
  the relevant Interest Period shall be up to one (1) month and during
  such Interest Period the Interest Rate applicable to the Facility or the
  relevant part thereof shall be the rate per annum determined by the
  Banks rounded upwards to the nearest whole multiple of one sixteenth per cent
  (1/16th%) to be the aggregate of the Applicable Margin and the cost
  (expressed as a percentage rate per annum) to the Banks of funding the amount
  of the Facility or the relevant part thereof during such Interest
  Period.

  
	
   

  	
   

  
	
  7.3

  	
  During such Interest Period
  the Borrowers and the Banks shall negotiate in good faith in order to agree
  an Interest Rate and Interest Period satisfactory to the Borrowers and the
  Banks to be substituted for those which but for the occurrence of any such
  event as specified in this Clause would have applied. If the Borrowers and
  the Banks are unable to agree on such an Interest Rate and Interest Period by
  the day which is two (2) Business Days before the end of the Interest
  Period referred to above, the Borrowers shall repay the Facility together
  with accrued interest thereon at the Interest Rate set out above together
  with all other amounts due under this Agreement but without any prepayment
  fee, on the last day of such Interest Period.

  

 

28

 

	
  8

  	
  PREPAYMENT

  
	
   

  	
   

  
	
  8.1

  	
  The Borrowers shall be
  obliged to prepay such part of the Facility as provided in Clause 8.2
  herebelow together with interest and all other sums due to the Creditor
  Parties in respect of such part of the Facility if a Mortgaged Vessel (i) is
  sold or the Shipbuilding Contract for that Vessel is assigned, transferred,
  sold or novated to and in favour of any person (the “Sale Reduction”) or (ii) becomes a
  Total Loss or (iii) the Mortgage over such Mortgaged Vessel is
  discharged pursuant to paragraph (c) herebelow as follows:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  in the case of a Sale
  Reduction on or before the date on which either (i) the delivery of the
  relevant Mortgaged Vessel to its buyer or (ii) the assignment, transfer,
  novation or sale of the Shipbuilding Contract for the relevant Vessel is
  completed or;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  in the case of the Total
  Loss on the earlier of (i) the date falling 180 days after the date of
  the occurrence of such Total Loss and (ii) the date of receipt by the
  Security Trustee of the proceeds of insurance relating to such Total Loss; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  in the case that a
  Mortgage over a Mortgaged Vessel is discharged (other than in the
  circumstances referred to in paragraph (a) above and where the Borrowers
  and the other Security Parties have discharged, all their obligations under
  the Finance Documents) on or before the date of such Mortgage is discharged.

  
	
   

  	
   

  
	
  8.2

  	
  In case that any of the
  events referred to in Clause 8.1 occurs in respect of a Vessel prior to the
  Final Availability Date, the Borrowers shall be obliged to prepay the Tranche
  relevant to such Vessel in full, whereas in case that any such event occurs
  after the Final Availability Date, the Borrowers shall be obliged to prepay
  the higher of (i) the Tranche related to such Vessel in full and (ii) a
  part of the Facility equal to the Relevant Amount.

  
	
   

  	
   

  
	
  8.3

  	
  For the purposes of Clause
  8.2, the following terms shall have the following meanings:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  the term “Relevant Amount”
  shall mean an amount in Euros equal to the higher of

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (A)                              such amount as shall ensure that
  immediately after such prepayment, the Security Value shall not be less than
  the Security Requirement; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (B)                                such amount as shall ensure that X is not
  lower than Y,

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  “X” is the ratio
  (expressed as a percentage) of

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (A)                              the market value of the Mortgaged Vessel
  other than the Mortgaged Vessel lost or sold as determined in accordance with
  Clause 17.1;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (B)                                to the aggregate amount of the Facility
  after deducting the amount of the relevant prepayment,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  immediately after the
  relevant prepayment is made; and

  

 

29

 

	
   

  	
  (c)

  	
  “Y” is the ratio
  (expressed as a percentage) of

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (A)                              the market value of the Mortgaged Vessels
  (including the Mortgaged Vessel lost or sold) as determined in accordance
  with Clause 17.1 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (B)                                to the aggregate amount of the Facility
  without deducting the amount of the relevant prepayment, 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  immediately before the
  relevant prepayment is made.

  
	
   

  	
   

  	
   

  
	
  8.4

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

  
	
   

  	
   

  	
   

  
	
   

  	
  a)

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

  
	
   

  	
   

  	
   

  
	
   

  	
  b)

  	
  in the case of a
  constructive total loss of a Mortgaged Vessel, upon the date and at the time
  notice of abandonment of a Mortgaged Vessel is given to the insurers of a for
  the time being (provided a claim for such total loss is admitted by such
  insurers) or, if such insurers do not admit such a claim, or, in the event
  that such notice of abandonment is not given by the Owner thereof to the
  insurers of such Mortgaged Vessel, on the date and at a time on which the incident
  which may result, in such Mortgaged Vessel being subsequently determined
  to be a total loss has occurred;

  
	
   

  	
   

  	
   

  
	
   

  	
  c)

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

  
	
   

  	
   

  	
   

  
	
   

  	
  d)

  	
  in the case of Compulsory
  Acquisition of a Mortgaged Vessel, 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 a
  Mortgaged Vessel (other than where the same amounts to Compulsory Acquisition
  of such Mortgaged Vessel by any Government Entity, or by persons purporting
  to act on behalf of any Government Entity) which deprives the Owner thereof
  of the use of the such Mortgaged Vessel for more than thirty days, upon the
  expiry of the period of thirty (30) days after the date upon which the
  relevant hijacking, theft, condemnation, capture, seizure, arrest, detention
  or confiscation occurred.

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  On giving not less than
  thirty (30) days’ prior written notice to the Agent the Borrowers may prepay
  all or any part of a Tranche (but if in part the amount to be
  prepaid shall be €500,000 or a multiple thereof) at the end of the then
  current Interest Period. The Borrowers shall obtain any consent or approval
  from the relevant authorities that may be necessary to make any such
  prepayment of a Tranche or part thereof and if it fails to obtain and/or
  comply with the terms of such consent or approval and in consequence thereof
  the Banks have to repay the amount prepaid or the Banks incur any penalty or
  loss then the Borrowers shall indemnify the Banks forthwith against all
  amounts so repaid and/or against all such penalties and losses incurred.

  
	
   

  	
   

  
	
  8.6

  	
  Prepayments made under
  Clause 8.1 in respect of a Vessel shall first be applied as follows: (a) if
  made prior to the Final Availability Date: (i) towards prepayment in
  full of the Tranche relating

  
				

 

30

 

	
   

  	
  to such Vessel and (ii) unless
  an Event of Default has occurred, the balance (after making the payment
  referred to in sub-paragraph (i) above) shall be released to the Borrowers
  and (b) if made after the Final Availability Date: firstly towards
  prepayment in full of the Tranche relating to such Vessel and secondly if
  required under Clause 8.2 towards prepayment of the Repayment Instalments and
  the Balloon Instalment of the other Tranche on a pro rata basis and/or
  thirdly any balance shall be relased to the Borrowers. 

  
	
   

  	
   

  
	
  8.7

  	
  Prepayments under Clause
  8.5 in respect of a Tranche shall be applied in reducing the Repayment
  Instalments and the Balloon Payment of such Tranche in inverse order of
  maturity. 

  
	
   

  	
   

  
	
  8.8

  	
  Any prepayment of the
  Facility made or deemed to be made under this Agreement shall, be made
  together with accrued interest and any other amount payable in accordance
  with Clauses 12 and/or 24 and/or 25 and (if made otherwise, than at the end
  of an Interest Period relative to the amounts prepaid) such additional amount
  (if any) as the Agent may certify as necessary to compensate the
  Creditor Parties for any Broken Funding Costs incurred or to be incurred by
  them as a result of such prepayment.

  
	
   

  	
   

  
	
  8.9

  	
  Any notice of prepayment
  given by the Borrowers under this Agreement shall be irrevocable and the
  Borrowers shall be bound to prepay in accordance with each such notice.

  
	
   

  	
   

  
	
  8.10

  	
  The Borrowers may not
  prepay all or any part of the Facility except in accordance with the
  express terms of this Agreement.

  
	
   

  	
   

  
	
  9

  	
  APPLICATION
  OF PROCEEDS AND EARNINGS

  
	
   

  	
   

  
	
  9.1

  	
  Save as provided in Clause
  9.1.4, all Proceeds received by the Agent and/or the Security Trustee shall,
  notwithstanding anything to the contrary whether express or implied in any of
  the Finance Documents, be applied as follows:

  
	
   

  	
   

  
	
  9.1.1

  	
  first, toward reimbursing
  each Creditor Party in respect of all losses, costs, charges, fees (including
  without limitation legal fees and fees due to the Banks and/or the Security
  Trustee and/or the Agent under Clause 23) including interest thereon that
  they have incurred in connection with the exercise of its respective powers
  under the Finance Documents.

  
	
   

  	
   

  
	
  9.1.2

  	
  second, to the Banks in
  respect of the amount lent and owing hereunder including interest thereupon
  and if the Proceeds are insufficient to pay such amounts then unless
  otherwise agreed between the Banks, the Banks shall each receive a
  proportion of the Proceeds in the proportionate amount of their Commitment
  under the Facility and shall be applied by the Banks first against interest
  and then against principal;

  
	
   

  	
   

  
	
  9.1.3

  	
  third, to the Creditor
  Parties (other than the L/C Bank) in respect of all other amounts which may be
  owing to such Creditor Parties under this Agreement and any of the Finance
  Documents including, but not limited, to Broken Funding Costs;

  
	
   

  	
   

  
	
  9.1.4

  	
  fourth, to the L/C Bank in
  respect of any amounts which may be owing to it under the L/C Facility
  Agreement; provided however that any and all monies received by the Agent
  and/or the

  

 

31

 

	
   

  	
  L/C Bank held in the Cash
  Collateral Account under the other Accounts’ Charge shall first be applied
  towards any amounts due to the L/C Bank under the L/C Facility Agreement and
  the L/C Bank shall be entitled to exercise its rights thereunder at such time
  and in such manner as it deems appropriate in its sole discretion without
  consulting with or obtaining the consent of any other Creditor Party and in
  order to exercise such rights to give any and all necessary instructions to
  the Agent provided however that after payment in full of all amounts due to
  the L/C Bank under the L/C Facility Agreement any remaining balance shall be
  applied towards any amounts due to the other Creditor Parties under this
  Agreement; and 

  
	
   

  	
   

  
	
  9.1.5

  	
  fifth, once the
  Indebtedness has been repaid to the Creditor Parties to the full satisfaction
  of the Agent and the Security Trustee, any balances shall be paid to the
  Borrowers. 

  
	
   

  	
   

  
	
  9.2

  	
  The Agent may, with the
  authorisation of all the Banks (and, in the case of an application pursuant
  to Clause 9.1.4 of the L/C Bank) by notice to Borrowers, the other Security
  Parties and the other Creditor Parties provide for a different manner of
  application from that set out in Clause 9.1 either as regards a specified sum
  or sums or as regards sums in a specified category or categories. 

  
	
   

  	
   

  
	
  9.3

  	
  The Agent may give
  notices under Clause 9.2 from time to time in respect of sums which may be
  received or recovered in the future.

  
	
   

  	
   

  
	
  9.4

  	
  This Clause 9 and any
  notice which the Agent gives under Clause 9.2 shall override any right of
  appropriation possessed, and any appropriation made, by a Borrower or any
  other Security Party.

  
	
   

  	
   

  
	
  9.5

  	
  If any Proceeds recovered
  by any Creditor Party have to be repaid by such Creditor Party on the ground
  of unfair or fraudulent preference or on any other ground, the Creditor Party
  shall have the same rights hereunder and/or under the other Finance Documents
  against the Borrowers as if such amounts had never been applied in payment of
  the Indebtedness.

  
	
   

  	
   

  
	
  9.6

  	
  The Borrowers covenant to
  ensure and procure that all the Earnings shall be assigned to the Security
  Trustee and shall be paid into the Earnings Account which shall be charged to
  the Creditor Parties pursuant to the Accounts Charge Agreement. Unless and
  until the Security Trustee gives notice to the Borrowers that it requires
  that all Earnings be paid directly to the Security Trustee (which notice may only
  be given by the Security Trustee if an Event of Default or Potential Event of
  Default has occurred), all amounts in the Earnings Account shall be applied
  as follows -

  
	
   

  	
   

  
	
  9.6.1

  	
  first, towards the payment
  of fees and costs and any other sums that are due and payable by the
  Borrowers to the Creditor Parties;

  
	
   

  	
   

  
	
  9.6.2

  	
  second, towards payment to
  the Retention Account of the amounts required to be transferred to the credit
  thereof in accordance with Clause 21; and

  
	
   

  	
   

  
	
  9.6.3

  	
  third, any balance
  thereafter remaining in the Earnings Account shall be available to the
  Borrowers.

  

 

32

 

	
  10

  	
  REPAYMENT

  
	
   

  	
   

  
	
  10.1

  	
  Subject to the other
  provisions of this Agreement each Tranche shall be repaid by the Borrowers to
  the Banks as follows: 

  
	
   

  	
   

  
	
  (a)

  	
  by forty (40) consecutive
  quarterly Repayment Instalments, with the first twelve (12) such instalments
  being in the amount of One hundred and Fifty thousand Euros (€150,000) each
  and the remaining twenty eight (28) such instalments being in the amount of
  One hundred and Ten thousand Euros (€110,000) each, and each one such
  instalment to be repaid on each of the Repayment Dates for the relevant
  Tranche; and 

  
	
   

  	
   

  
	
  (b)

  	
  by a final payment of One
  million Seven hundred Seventy thousand Euros (€ 1,770,000). 

  
	
   

  	
   

  
	
  10.2

  	
  If the Total Commitments in respect of either
  Tranche are not drawn down in full, the amount of the Repayments Instalments
  and the Balloon Payment in respect of that Tranche shall be reduced
  proportionately. 

  
	
   

  	
   

  
	
  10.3

  	
  Any amounts repaid or
  prepaid under this Agreement may not be reborrowed.

  
	
   

  	
   

  
	
  11

  	
  EVIDENCE
  OF DEBT

  
	
   

  	
   

  
	
   

  	
  The Agent, the Security
  Trustee, each Bank and the L/C Bank shall maintain in accordance with their
  usual practice accounts evidencing the amounts from time to time lent and/or
  guaranteed and/or owing hereunder or under the L/C Agreement and in any legal
  action or proceedings arising out of or in connection with this Agreement
  and/or the L/C Facility Agreement and/or the other Finance Documents the
  entries made in such accounts shall be conclusive evidence (absent manifest
  error) of the existence and the amounts of the liabilities of the Borrowers
  hereunder and/or thereunder.

  
	
   

  	
   

  
	
  12

  	
  PAYMENTS –
  SET OFF- PRO RATA SHARING OF PAYMENTS

  
	
   

  	
   

  
	
  12.1

  	
  All amounts payable under
  this Agreement and/or the other Finance Documents by the Borrowers, including
  amounts payable under this Clause 12, shall be paid in full to the Agent on
  behalf of the Creditor Parties without set-off or counterclaim or retention
  and free and clear of and without any deduction or withholding for or on
  account of any Taxes or any charges or otherwise present or future. In the
  event that the Borrowers are required by law to make any such deduction or
  withholding from any payment hereunder, then the Borrowers shall forthwith
  pay to the Agent such additional amount as will result in the immediate
  receipt by the Agent of the full amount which would have been received hereunder
  had no such deduction or withholding been made and the Borrowers shall
  immediately forward to the Agent official receipts of the relevant taxation
  or other authority or other evidence acceptable to the Agent of the amount
  deducted or withheld as aforesaid, provided that in the event that it shall
  be illegal for the Borrowers to pay such additional amount as is referred to
  in this Clause 12.1 then the Indebtedness shall be repayable by the Borrowers
  to the Creditor Parties on demand. Nothing in this Clause 12.1 shall
  interfere with the right of the Agent or the Banks to arrange their
  respective tax affairs in whatever manner they think fit.

  

 

33

 

	
  12.2

  	
  All payments which are to
  be made in Euros by the Borrowers under this Agreement and/or the other
  Finance Documents shall be made in Euros in immediately available and freely
  transferable and convertible funds not later than 11 a.m. (Brussels
  time) on the date upon which the relevant payment is due to such bank and as
  the Agent may from time to time nominate by written notice to the
  Borrowers; 

  
	
   

  	
   

  
	
  12.3

  	
  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 the L/C Facility Agreement
  and/or the other Finance Documents and irrespective of any notice by the
  Agent or any other person to the Borrowers in respect of such failure, the
  Borrowers shall pay interest on such amount on demand from the date of such
  failure up to the date of actual payment (as well after as before judgment)
  at the Default Rate for such period as the Agent may select at or about
  11.00 a.m. (Brussels time) on the Business Day immediately following
  that on which the Agent becomes aware of the failure and, for so long as the
  failure continues, at such rate as shall be recalculated on the same basis
  thereafter. Any interest which shall have accrued under this Clause 12.3 in
  respect of an unpaid sum shall be due and payable and shall be paid by the
  Borrowers at the end of the period by reference to which it is calculated or
  such other date or dates as the Agent may specify by written notice to
  the Borrowers.

  
	
   

  	
   

  
	
  12.4

  	
  Without limitation to
  Clause 9 and subject to Clause 12.5 the Agent shall pay promptly to the order
  of each Bank, its Proportionate Share of every sum of money received by the
  Agent pursuant to the Finance Documents and shall pay promptly to the order
  of each Creditor Party every other sum of money received by the Agent
  pursuant to the Finance Documents and which may be due to that Creditor
  Party and until so paid each such amount shall be held by the Agent on trust
  absolutely for that Lender or Creditor Party, as the case may be.

  
	
   

  	
   

  
	
  12.5

  	
  Any amounts payable
  pursuant to Clause 23 and any amounts which, by the terms of the Finance
  Documents or any of them, shall be paid to the Agent for the account of the
  Agent alone or, as the context may require, specifically for the account
  of one or more of the Creditor Parties shall not be distributed in accordance
  with Clause 12.4 but will be held by the Agent for its own benefit or as the
  context may require transferred by the Agent to the relevant Creditor
  Party.

  
	
   

  	
   

  
	
  12.6

  	
  Without prejudice to the
  foregoing and irrespective of any notice by the Agent or any other person to
  the Borrowers in respect of the Borrowers’ failure to make any payment when
  due, the Borrowers shall indemnify each Creditor Party against any damages,
  losses or expenses (including losses incurred in paying overdraft interest or
  in liquidating or employing deposits from third parties acquired to make,
  fund or maintain the Commitment of each Bank or the Facility or any part thereof)
  which the Creditor Parties or any of them may sustain or incur as a
  consequence of the failure by the Borrowers to pay any amount when due and
  payable under this Agreement and/or the Security Documents and/or as a
  consequence of the occurrence of any Event of Default. Furthermore the
  Borrowers undertake to indemnify each Creditor Party against any loss
  incurred by the Creditor Parties or any of them as a result of any judgment
  or order being given or made for the payment of any amount due under this
  Agreement and/or the L/C Facility Agreement and/or the other Finance
  Documents and such judgment or order being expressed in a currency other than
  that in which the payment was due or payable under

  

 

34

 

	
   

  	
  this Agreement and/or the
  L/C Facility Agreement and/or the other Finance Documents and as a result of
  any variation having occurred in rates of exchange between the date on which
  the currency is converted for the purpose of such judgment or order and the
  date of actual payment thereof. This indemnity shall constitute a separate
  and independent liability of the Borrowers and shall continue in force and
  effect notwithstanding any such judgment or order as aforesaid.

  
	
   

  	
   

  
	
  12.7

  	
   Any prepayment or
  repayment of principal made or deemed to be made under this Agreement shall,
  if made otherwise than at the end of an Interest Period relative to the
  amounts prepaid or repaid, be made together with accrued interest thereon and
  such additional amount (if any) as the Agent may certify as necessary to
  compensate the Creditor Parties for any damages or losses, as the case may be,
  incurred or to be incurred by the Banks in connection with such prepayment or
  repayment (including but not limited to losses on account of funds borrowed
  in order to make, fund or maintain the Commitment or the Facility or any part thereof
  prepaid or repaid).

  
	
   

  	
   

  
	
  12.8

  	
  If the Borrowers give a
  Notice of Drawdown pursuant to Clause 4 and the Banks make arrangements on
  the basis of such notice to acquire Euros in the European Interbank Market to
  fund the Advance(s) or any part thereof and the Borrowers are not
  permitted or otherwise fail to borrow in accordance with such Notice of
  Drawdown (either on account of any condition precedent not being fulfilled or
  otherwise) the Borrowers shall indemnify the Banks against any damages,
  losses or expenses which the Banks may incur (either directly or
  indirectly) as a consequence of the failure by the Borrowers to borrow in
  accordance with the Notice of Drawdown.

  
	
   

  	
   

  
	
  12.9

  	
  Each Creditor Party may without
  prior notice but following the occurrence of an Event of Default which is
  continuing:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  apply any balance (whether
  or not then due) which at any time stands to the credit of any account in the
  name of the Borrowers at any office in any country of that Creditor Party in
  or towards satisfaction of any sum then due from the Borrowers to that
  Creditor Party under any of the Finance Documents; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  for that purpose:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)                                  convert or translate all or any part of
  a deposit or other credit balance into Euros; and/or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)                                  enter into any other transaction or make
  any entry with regard to the credit balance which the Creditor Party
  concerned considers appropriate.

  
	
   

  	
   

  	
   

  
	
  12.10

  	
  No Creditor Party shall be
  obliged to exercise any of its rights under Clause 12.9; and those rights
  shall be without prejudice and in addition to any right of set-off,
  combination of accounts,

  

 

35

 

	
   

  	
  charge, lien or other
  right or remedy to which a Creditor Party is entitled (whether under the
  general law or any document).

  
	
   

  	
   

  
	
  12.11

  	
  For the purposes of
  Clauses 12.9 and 12.10, a sum payable by the Borrowers to the Agent or the
  Security Trustee for distribution to, or for the account of, a Bank shall be
  treated as a sum due to that Bank; and each Bank’s proportion of a sum
  so payable for distribution to, or for the account of, the Banks shall
  be treated as a sum due to such Bank.

  
	
   

  	
   

  
	
  12.12

  	
  Save as provided in Clause
  9.1.4, if any Creditor Party at any time shall receive or recover from the
  Borrowers or any other Security Party pursuant to this Agreement or other
  Finance Documents (whether by way of voluntary or involuntary payment, by
  virtue of an exercise of its legal rights including, but not limited, to any
  right of set-off, counterclaim or otherwise howsoever) the whole or any part of
  any amounts due from the Borrowers to such Creditor Party hereunder otherwise
  than by distribution from the Agent under the terms of this Agreement, then:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  such Creditor Party
  (hereinafter called the “Paying Creditor
  Party”) shall (and is hereby irrevocably authorised to that effect
  by the Borrowers) promptly and, in any event after five (5) Banking Days
  of such receipt or recovery, pay to the Agent the full amount or (as the case
  may be) an amount equal to the equivalent of the full amount so received
  or recovered after deducting any expenses incurred by the Paying Creditor
  Party, in obtaining such amounts:

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  as between the Borrowers
  on the one hand and the Paying Creditor Party on the other, the Borrowers
  shall (save to the extent of any amount available for distribution to the
  Paying Creditor Party pursuant to Clause 12.12(c)) remain or again become
  indebted to the Paying Creditor Party as the case may be hereunder in
  the amount so paid as if it had not been received or recovered as aforesaid;
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the Agent shall treat the
  amount so paid as if it were a payment by the Borrowers on account of amounts
  due from the Borrowers hereunder for distribution to the Paying Creditor
  Party and the other Creditor Parties in the proportions in which the Paying
  Creditor Party and the other Creditor Parties would have been entitled to
  receive such amount had it been paid by the Borrowers.

  
	
   

  	
   

  	
   

  
	
  13 

  	
  CHANGE OF
  CIRCUMSTANCES 

  
	
   

  	
   

  
	
  13.1

  	
  If -

  
	
   

  	
   

  
	
   13.1.1

  	
  any law, regulation,
  treaty or official directive (whether or not having the force of law) or the
  interpretation thereof by any authority charged with the administration
  thereof (of which the Banks at the date of execution of this Agreement are
  not aware):

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  subjects any Bank and/or
  any holding company thereof to any Tax with respect to payments of principal
  or interest in connection with the Facility or any other amount

  

 

36

 

	
   

  	
   

  	
  payable hereunder (other
  than Tax assessed, levied or collected on the overall net income of such
  Bank); or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  changes the basis of
  Taxation of payments to any Bank and/or any holding company thereof of
  principal or interest in connection with the Facility or of any other amount
  payable hereunder (other than a change in the rate of Tax on the overall net
  income of such Bank); or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  imposes, modifies or deems
  applicable any reserve and/or special deposit requirements against or in
  respect of assets or liabilities of, or deposits with or for the account of,
  or loans or credit extended by, any office of any Bank; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  imposes on any Bank any
  other condition affecting this Agreement, its Commitment or the Facility or
  any part thereof or its funding; or

  
	
   

  	
   

  	
   

  
	
  13.1.2

  	
  any Bank complies with any
  request, law, regulation or directive from any applicable fiscal or monetary
  authority (whether or not having the force of law), and as a result of any of
  the foregoing either directly or indirectly -

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  the cost to any Bank of
  making, funding or maintaining its Commitment in respect of the Facility or
  any part thereof is increased; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the amount of principal,
  interest or other amount payable to any Bank or the effective return to such
  Bank hereunder is reduced; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  any Bank makes any payment
  or loses any interest or other return calculated by reference to the gross
  amount of any sum receivable by it from the Borrowers hereunder,

  
	
   

  	
   

  	
   

  
	
   

  	
  then and in each such case
  upon demand from time to time the Borrowers shall pay to the Agent for the
  account of the relevant Bank such amount as shall compensate the relevant
  Bank for such increased cost, reduction, payment or lost interest or other
  return. If such Bank is entitled to make a claim pursuant to this Clause 13
  the Agent shall notify the Borrowers of the event by reason of which they are
  so entitled. The Agent shall submit to the Borrowers a certificate setting
  out details of the event giving rise to such compensation, the amount thereof
  and the manner in which it has been calculated and in the absence of manifest
  error such certificate shall be conclusive.

   

  Provided however that for
  the purposes of this Clause 13.1 the word “regulation”
  shall be deemed to include any regulation which relates to capital adequacy
  or liquidity controls or which affects the manner in which the relevant Bank
  allocates capital resources to its obligations under this Agreement
  (including, without limitation, the implantation of any regulations which may replace
  those set out in the statement of the Basle Committee on Banking Regulations
  and Supervisory Practices dated July 1998 and entitled “International
  Convergence of Capital Measurement and Capital Structures”) which is
  introduced, or altered, or the interpretation or application of which is
  altered, after the date of this Agreement;

  

 

37

 

	
  13.2

  	
  If any amount payable by
  the Borrowers hereunder and/or under the L/C Facility Agreement and/or under
  the other Finance Documents whether in respect of principal, interest or
  otherwise or any recipient of any such amount by reason of its receiving such
  amount is or becomes subject at any time to Taxation in any relevant
  jurisdiction, the Borrowers will indemnify any such recipient of such amount
  in respect of such Tax liability so that such recipient receives or retains a
  net sum equal to the amount it would have received or retained had there been
  no such Tax liability but if such recipient shall be or becomes entitled to
  any Tax credit or relief in respect of any such Tax liability or deduction
  and if the recipient in its sole determination actually receives (and is
  entitled to retain) a benefit from such Tax credit or relief in its country
  of domicile, incorporation or residence, that recipient shall, subject to any
  laws or regulations applicable thereto, pay to the Borrowers after such
  benefit is effectively received by that recipient such amount (which shall be
  conclusively certified by that recipient) as shall ensure that the net amount
  actually retained by that recipient is equal to the amount which would have
  been retained if there had been no such liability or deduction. In addition
  the Borrowers shall indemnify the Bank and each recipient of any sum payable
  by the Borrowers under this Agreement and/or under the Security Documents
  against any liability for Taxes in the United Kingdom, the Federal Republic
  of Germany or the Republic of Greece or the Republic of Marshall Islands or
  the Republic of Liberia or any other relevant jurisdiction, imposed on any of
  them or on any agent, branch, employee, representative or representative
  office of any of them by virtue of the negotiation, preparation or execution
  of this Agreement and/or the other Finance Documents, the performance of any
  duty or discharge of any liability hereunder and/or under the other Finance
  Documents or the receipt of any payment hereunder and/or under the other
  Finance Documents. Nothing in this Clause 13.2 shall interfere with the right
  of the Creditor Parties to arrange their respective tax affairs in whatever
  manner they think fit.

  
	
   

  	
   

  
	
  13.3

  	
  Notwithstanding anything
  to the contrary herein contained, if any change in law, regulation or treaty
  or in the interpretation or application thereof by any authority charged with
  the administration thereof shall make it unlawful for the Agent or any of the
  Banks to make, fund or maintain the Commitment of any Bank or the Facility,
  the Agent may, by written notice thereof to the Borrowers, declare that the
  Banks’ duty to provide the Borrowers with the Commitment or the Facility
  shall be terminated forthwith whereupon the Borrowers will prepay forthwith
  (or if permitted by law on the next following Interest Payment Date) the
  Facility together with all interest accrued thereon and all fees and other
  amounts payable to the Banks hereunder (including, but not limited to, Broken
  Funding Costs). The Banks’ duties and liabilities hereunder and their
  Commitment shall be cancelled on the giving of such notice. In any such
  event, but without prejudice to the aforesaid liability of the Borrowers to
  prepay the Facility, the Borrowers, the Agent and the Banks shall negotiate
  in good faith with a view to agreeing the terms for making the Facility
  available from another jurisdiction, or funding the Facility from alternative
  sources, or otherwise restructuring the Facility on a basis which is not
  unlawful. If the said terms are not agreed within thirty (30) days then the
  negotiations shall forthwith terminate.

  

 

38

 

	
  14 

  	
  REPRESENTATIONS
  AND WARRANTIES

  
	
   

  	
   

  
	
  14.1

  	
  Each of the Borrowers
  hereby represents and warrants to each Creditor Party that the following
  matters are true at the time of this Agreement and warrants that they shall
  remain true throughout the Security Period:

  
	
   

  	
   

  
	
  14.1.1

  	
  Each of the Borrowers and
  the other Corporate Security Parties is a corporation duly formed and validly
  existing under the laws of the country of its incorporation and each of them
  has the power and authority to own its assets and carry on business in each
  jurisdiction in which it owns assets or carries on business;

  
	
   

  	
   

  
	
  14.1.2

  	
  each of the Borrowers and
  the other Security Parties has the power to enter into this Agreement and
  into the other Subject Documents to which it/he is a party and to perform and
  discharge its/his duties and liabilities hereunder and thereunder and to
  borrow hereunder and it/he has taken all necessary action (whether corporate
  or otherwise) required to authorise the execution, delivery and performance
  of this Agreement and such other Subject Documents to which it/he is a party
  and the borrowings to be made hereunder;

  
	
   

  	
   

  
	
  14.1.3

  	
  the execution, delivery
  and performance of this Agreement and the other Subject Documents, will not
  violate or exceed the powers granted to each of the Borrowers and any other
  Security Party by, or any provision of, any law or regulation in any jurisdiction
  to which the Borrowers and any other Security Party is subject, any order or
  decree of any governmental agency or court of or in any jurisdiction to which
  the Borrowers or either of them and any other Security Party is subject, the
  articles of incorporation and by-laws of each of the Borrowers and the other
  Corporate Security Parties or any mortgage, deed, contract or agreement to
  which the Borrowers or either of them is a party and which is binding upon
  the Borrowers or either of them or any other Security Party, as the case may be,
  or their assets, and will not cause any Encumbrance to arise over or attach
  to all or any part of its revenues or assets nor require the Borrowers
  or either of them or any other Security Party to create any such Encumbrance
  other than any Encumbrance to be created hereunder;

  
	
   

  	
   

  
	
  14.1.4

  	
  all consents, licences,
  approvals, registrations, authorisations or declarations (including, without
  limitation, all foreign exchange approvals) in any jurisdiction to which any
  Security Party is subject required to enable each Borrower to borrow
  hereunder and each Security Party to lawfully to enter into and perform and
  discharge its/his respective duties and liabilities under this Agreement and
  the other Subject Documents to which it/he is a party, to ensure that the
  duties and liabilities of the Borrowers or either of them and the other
  Security Parties hereunder and thereunder are legal, valid and enforceable in
  accordance with the terms of this Agreement and the terms of the other Subject
  Documents respectively and to make this Agreement and the Subject Documents
  admissible in evidence in such aforesaid jurisdictions, have been obtained or
  made and are in full force and effect;

  
	
   

  	
   

  
	
  14.1.5

  	
  this Agreement and each of
  the Subject Documents, constitute the legal, valid, binding and unconditional
  duties and liabilities of the Borrowers or either of them and the other
  Security Parties, which are parties thereto, enforceable against such of the
  Borrowers and the other

  

 

39

 

	
   

  	
  Security Parties, as are
  parties thereto, in accordance with the terms thereof save as provided by any
  bankruptcy, insolvency or similar laws of general application;

  
	
   

  	
   

  
	
  14.1.6

  	
  none of the Borrowers and
  the other Security Parties has failed to pay when due any material amount or
  to perform any material duty under the provisions of any agreement
  relating to indebtedness to which it/he is a party or by which it/he may be
  bound and no event has occurred and is continuing which constitutes, or which
  with the giving of notice or lapse of time or both would constitute, a
  material breach or default by the Borrowers or the other Security Parties or
  any of them under any such agreement;

  
	
   

  	
   

  
	
  14.1.7

  	
  no litigation or
  administrative proceedings before or of any court, arbitration tribunal or
  governmental authority are pending or, to the knowledge of the Borrowers, is
  threatened against the Borrowers, the other Security Parties or any of them
  or their assets which might have a material adverse effect on the business,
  assets or financial condition of the Borrowers or the other Security Parties
  or any of them or the Borrowers’ or the other Security Parties’ ability to
  perform and discharge their respective duties and liabilities hereunder
  and under the other Subject Documents;

  
	
   

  	
   

  
	
  14.1.8

  	
  the Financial Statements
  are complete and correct and present fairly the position of the Borrowers
  and/or the Group as of such date and the results of the operations of the
  Borrowers and/or the Group ended on such date, and have been prepared in
  accordance with the Applicable Accounting Principles consistently applied and
  give a true and fair view of the financial condition, assets and liabilities
  of the Borrowers and/or the Group at the date to which such Financial Statements
  have been prepared and since that date there has been no adverse change in
  the financial conditions of the business, assets or operation of the
  Borrowers and/or the Group, taken as a whole;

  
	
   

  	
   

  
	
  14.1.9

  	
  the information provided
  to the Servicing Banks (or any of them) in relation to this transaction is
  true and correct in all material respects and does not omit any information
  necessary to make any of the information so provided not misleading;

  
	
   

  	
   

  
	
  14.1.10

  	
  it is not necessary or
  advisable to ensure the legality, validity, enforceability or admissibility
  in evidence of this Agreement and the other Subject Documents (with the
  exception of the Mortgages) that any of them be filed, recorded or enrolled
  with any governmental authority or agency or that they be stamped with any
  stamp, registration or similar transaction tax;

  
	
   

  	
   

  
	
  14.1.11

  	
  the selection of English
  law to govern this Agreement is a valid and binding selection and the
  submission to the jurisdiction of the High Court of Justice in England is a
  valid and binding submission;

  
	
   

  	
   

  
	
  14.1.12

  	
  none of the Borrowers and
  the other Security Parties is entitled to claim any immunity in relation to
  itself/himself or its/his assets under any law or in any jurisdiction in
  connection with any legal proceedings, set-off or counterclaim relating to
  this Agreement and the other Finance Documents to which it/he is a party or
  in connection with the enforcement of any judgment or order arising from such
  proceedings;

  

 

40

 

	
  14.1.13

  	
  no Taxes are imposed by
  withholding or otherwise on any payment to be made by the Borrowers or the
  other Security Parties under this Agreement or any other Finance Document or
  any other document or agreement to be executed or delivered pursuant hereto
  or thereto; and

  
	
   

  	
   

  
	
  14.1.14

  	
  each of the Borrowers, and
  the other members of the Group and their respective directors, officers and
  employees are in full compliance with all Environmental Laws which are
  currently applicable to its business and to all property owned or occupied by
  it, and all applicable consents, permits, licences, approvals, rulings,
  variations, exemptions or other authorisations required under laws of that
  kind have been obtained, are in full force an effect and are being complied
  with fully and there are no facts or circumstances entitling any of the same
  to be revoked, suspended, amended, varied or withdrawn.

  
	
   

  	
   

  
	
  14.2

  	
  The Borrowers hereby
  further represent and warrant that:

  
	
   

  	
   

  
	
  14.2.1

  	
  on the Drawdown Date of
  each Advance related to a Vessel, the Shipbuilding Contract in respect of
  that Vessel and the Refund Guarantee issued in respect thereof shall be in
  full force and effect and no event of default shall have occurred thereunder;

  
	
   

  	
   

  
	
  14.2.2

  	
  on the Drawdown Date of
  each Additional Works’ Advance related to a Vessel the Additional Works’
  Contract in respect of that Vessel shall be in full force and effect and no
  event of default shall have occurred thereunder;

  
	
   

  	
   

  
	
  14.2.3

  	
  on the Drawdown Date of
  each Delivery Advance and each Additional Works’ Advance relating to a Vessel
  the following matters will be true and shall remain true until full payment
  of all amounts payable hereunder:

  
	
   

  	
   

  
	
  (a)

  	
  the relevant Vessel will
  be duly registered in the name of its Owner under a flag acceptable to the
  Banks;

  
	
   

  	
   

  
	
  (b)

  	
  the relevant Vessel will
  be in the absolute and unencumbered ownership of the Owner thereof, save as
  contemplated by this Agreement and the Finance Documents;

  
	
   

  	
   

  
	
  (c)

  	
  the relevant Vessel will
  maintain the highest class with the Classification Society free of all
  recommendations and qualifications of the Classification Society;

  
	
   

  	
   

  
	
  (d)

  	
  the relevant Vessel will
  be operationally seaworthy;

  
	
   

  	
   

  
	
  (e)

  	
  the relevant Vessel will
  comply with all relevant laws, regulations and requirements (statutory or
  otherwise), including without limitation, the ISM Code, and the ISM Code
  Documentation the ISPS Code and the ISPS Documentation as are applicable to (i) ships
  registered under the law of the flag she is flying and (ii) engaged in
  the same or a similar service as such Vessel is or is to be engaged;

  

 

41

 

	
  (f)

  	
  the Mortgage relating to
  the relevant Vessel will have been duly recorded against such Vessel as a
  valid first priority ship mortgage in accordance with the laws of her flag;

  
	
   

  	
   

  
	
  (g)

  	
  the relevant Vessel will
  be insured in accordance with the provisions of this Agreement in respect of
  Insurances;

  
	
   

  	
   

  
	
  (h)

  	
  the relevant Vessel will
  be managed by the Manager under the terms of the Approved Management
  Agreement, relating thereto;

  
	
   

  	
   

  
	
  (i)

  	
  the Owner of the relevant
  Vessel and the Manager will have complied with the provisions of all
  Environmental Laws in respect of that Vessel;

  
	
   

  	
   

  
	
  (j)

  	
  the Owner of the relevant
  Vessel and the Manager will have obtained all Environmental Approvals and
  will be in compliance with all such Environmental Approvals in respect of
  that Vessel;

  
	
   

  	
   

  
	
  (k)

  	
  the Owner of the relevant
  Vessel and the Manager shall have not received any notice of any
  Environmental Claim that alleges that either the Owner or the Manager is not
  in compliance with any Environmental Law or any Environmental Approval in
  respect of that Vessel;

  
	
   

  	
   

  
	
  (l)

  	
  there shall be no
  Environmental Claim pending against either Owner and/or the Manager and/or
  either Vessel;

  
	
   

  	
   

  
	
  (m)

  	
  no Environmental Incident
  shall have occurred which could or might give rise to any Environmental Claim
  against either Owner and/or the Manager and/or either Vessel; and

  
	
   

  	
   

  
	
  (n)

  	
  the relevant Vessel will
  have unconditionally been delivered by the Builder to and accepted by the
  Owner thereto pursuant to the relevant Shipbuilding Contract and the full
  amount of the purchase price payable in respect thereof (including any amount
  in addition to the part being financed hereunder) will have been duly
  paid to the Builder.

  
	
   

  	
   

  
	
  14.3

  	
  The Borrowers hereby
  finally jointly and severally represent, warrant and confirm to each other
  Party to this Agreement that:

  
	
   

  	
   

  
	
  14.3.1

  	
  each Borrower enters into
  this Agreement for its own account and receives the Facility or any part thereof
  for its sole benefit; and

  
	
   

  	
   

  
	
  14.3.2

  	
  each Borrower will
  promptly inform the Creditor Parties (by written notice to the Agent) if
  it is not, or ceases to be, such beneficiary and will then set down in
  writing the name(s) and the address(es) of the relevant beneficiary(ies).

  
	
   

  	
   

  
	
  14.4

  	
  The representations and
  warranties of the Borrowers set out in Clause 14.1 and 14.2 and 14.3 above
  shall survive the execution of this Agreement and shall be deemed to be
  repeated on each Drawdown Date and each Interest Payment Date with respect to
  the facts and circumstances existing at each such time as if made at such
  time.

  

 

42

 

	
  15

  	
  SECURITIES

  
	
   

  	
   

  
	
  15.1

  	
  The Borrowers hereby agree
  that the Finance Documents shall secure with first priority the due payment
  of the Indebtedness.

  
	
   

  	
   

  
	
  16

  	
  CONDITIONS
  PRECEDENT

  
	
   

  	
   

  
	
  16.1

  	
  Notwithstanding the
  provisions of Clauses 3 and 4, the obligation of the Banks to make available
  either Pre-Delivery Advance under this Agreement is subject to the condition
  that the Security Trustee shall have received the following documents or
  evidence in form and substance satisfactory to the Security Trustee and
  its legal advisers on or prior to the Drawdown Date of either Pre-Delivery
  Advance:

  
	
   

  	
   

  
	
  16.1.1

  	
  a copy, certified as a true
  copy by the secretary of each Corporate Security Party of the resolutions of
  the board of directors and of the shareholders of each Corporate Security
  Party authorising the transaction contemplated hereby and authorising a
  person or persons to sign or execute on behalf of each Corporate Security
  Party this Agreement, the relevant Notice of Drawdown, the Acknowledgement
  (as in the form of Schedule 4 hereof) and the other Finance
  Documents as is a party thereto;

  
	
   

  	
   

  
	
  16.1.2

  	
  the originals of any power
  or powers of attorney granted pursuant to Clause 16.1.1;

  
	
   

  	
   

  
	
  16.1.3

  	
  copies, duly certified as
  a true copy by the respective secretaries of each Corporate Security Party of
  the certificate of incorporation, the articles of incorporation and by-laws
  of each Corporate Security Party and evidence satisfactory to the Security
  Trustee that each Corporate Security Party is in good standing;

  
	
   

  	
   

  
	
  16.1.4

  	
  a list specifying the
  directors and officers of each Corporate Security Party (together with their
  specimen signatures) and specifying the authorised and issued share capital
  of each Corporate Security Party;

  
	
   

  	
   

  
	
  16.1.5

  	
  the Guarantees duly
  executed by each Guarantor;

  
	
   

  	
   

  
	
  16.1.6

  	
  certified copies of all
  documents (with a certified translation if an original is not in English) evidencing
  any other necessary action (including but without limitation governmental
  approval, consents, licences, authorisations, validations or exemptions which
  the Security Trustee or its legal advisers may require) required by the
  Security Parties or any of them with respect to this Agreement and the other
  Finance Documents relating to the drawdown of the Advances;

  
	
   

  	
   

  
	
  16.1.7

  	
  the Other Accounts’ Charge
  Agreement duly executed by the Borrowers and each of the Earnings Accounts
  Charge Agreements duly executed by each relevant Borrower;

  
	
   

  	
   

  
	
  16.1.8

  	
  evidence that each of the
  Accounts has been duly opened with the Agent and that all board resolutions,
  mandates, signature cards and other documents or evidence required in
  connection with the operating, maintenance and operation of such accounts
  have been duly delivered to the Agent;

  

 

43

 

	
  16.1.9

  	
  the opinion letters from
  English, Greek and Marshall Islands legal counsels, all acceptable to the
  Security Trustee and in form and substance satisfactory to all the Banks
  in respect of this Agreement and the other Finance Documents;

  
	
   

  	
   

  
	
  16.1.10

  	
  a letter from Messrs. RICHES
  CONSULTING to the Security Trustee confirming acceptance of their appointment
  as agents for service under Clause 36.4;

  
	
   

  	
   

  
	
  16.1.11

  	
  payment to the Agent of
  the fees referred to in sub-clause 23.1

  
	
   

  	
   

  
	
  16.1.12

  	
  certified copies of the Shipbuilding Contract and
  the Refund Guarantee first to be issued together with such evidence as the
  Security Trustee and/or its legal advisers shall require in relation to the
  due authorisation and execution (i) by the Builder of each Shipbuilding
  Contract and all documents to be executed by the Builder pursuant thereto and
  (ii) by the Refund Guarantor of such Refund Guarantee;

  
	
   

  	
   

  
	
  16.1.13

  	
  the Assignments of the
  Shipbuilding Contracts and the Assignments of the Refund Guarantees both duly
  executed by each Borrower and notices thereof;

  
	
   

  	
   

  
	
  16.1.14

  	
  the acknowledgements of
  receipt by the Builder and by the Refund Guarantor to the Security Trustee of
  the notices of the Assignments of the Shipbuilding Contracts and the
  Assignments of the Refund Guarantee first to be issued in respect of each
  Vessel duly notarised;

  
	
   

  	
   

  
	
  16.1.15

  	
  evidence that the Manager
  has been appointed by technical supervisor under each Shipbuilding Contract
  and has accepted its appointment;

  
	
   

  	
   

  
	
  16.1.16

  	
  evidence that all
  instalments and amounts payable under each Shipbuilding Contract prior to the
  Drawdown Date of either Pre-Delivery Advance have been duly paid;

  
	
   

  	
   

  
	
  16.1.17

  	
  certified copies of the
  Additional Works’ Contracts together with such evidence as the Security
  Trustee and its legal advisers shall require in relation the authorisation
  and execution by IOTA of each Additional Works’ Contract and all documents to
  be executed by IOTA pursuant thereto;

  
	
   

  	
   

  
	
  16.2

  	
  The agreement of the Banks
  and the L/C Bank to permit the release from the Cash Collateral Account of
  any amount for payment of an Instalment in respect of a Vessel as provided in
  Clause 2.3 shall be subject to the conditions referred to in Clause 2.3 and
  to the further condition that the Security Trustee shall have received the
  following documents or evidence in form and substance satisfactory to
  the Security Trustee and its legal advisers on or prior to the date of such
  release in respect of such Vessel:

  
	
   

  	
   

  
	
  16.2.1

  	
  in respect of a
  Pre-Delivery Instalment certified copies of: (a) the confirmation issued
  by the Classification Society evidencing the completion of the relevant part of
  the relevant Vessel’s construction to the satisfaction of the Classification
  Society; (b) the Builder’s invoice in respect of the relevant
  Instalment; and (c) the relevant Refund Guarantee in respect of the
  relevant Vessel duly issued and delivered to the Owner thereof any
  confirmation from the Refund Guarantor that any Refund Guarantee(s) already
  in place remain(s) in full force and effect; and

  

 

44

 

	
   

  	
  (d) acknowledgement
  of receipt of the notice of assignment of the relevant Refund Guarantee duly
  notarised;

  
	
   

  	
   

  
	
  16.2.2

  	
  in respect of each
  Delivery Instalment certified copies of: (a) the confirmation issued by
  the Classification Society evidencing the completion of the relevant part of
  the relevant Vessel’s construction to the satisfaction of the Classification
  Society; (b) the Builder’s invoice corresponding to such Instalment; (c) the
  bill of sale in respect of the relevant Vessel; (d) a Builder’s
  certificate in respect of the relevant Vessel; and (e) the protocol of
  delivery and acceptance in respect of the relevant Vessel duly signed by the
  Builder and the Owner thereof.

  
	
   

  	
   

  
	
  16.3

  	
  The agreement of the Banks
  to permit the drawdown of a Delivery Advance in respect of a Vessel is
  subject to the condition that the Security Trustee shall have received (in
  addition to the documents and evidence referred to in Clauses 16.1 and 16.2
  the following documents or evidence in form and substance satisfactory
  to the Security Trustee and its legal advisers on or prior to the Drawdown
  Date of such Advance in respect of that Vessel:

  
	
   

  	
   

  
	
  16.3.1

  	
  evidence that the relevant
  Vessel is duly registered in the ownership of the Owner thereof under a flag
  acceptable to the Banks, free from registered Encumbrances other than the
  Mortgage to be registered thereon;

  
	
   

  	
   

  
	
  16.3.2

  	
  the Vessel’s Security
  Documents in respect of the relevant Vessel duly executed by the Owner
  thereof and the Mortgage duly registered with the appropriate flag
  authorities;

  
	
   

  	
   

  
	
  16.3.3

  	
  the notices of assignment
  of the Earnings and the Insurances of the relevant Vessel duly signed by the
  Owner thereof;

  
	
   

  	
   

  
	
  16.3.4

  	
  evidence that save for the
  Encumbrances created by the relevant Vessel’s Security Documents there is no
  Encumbrance whatsoever on each relevant Vessel;

  
	
   

  	
   

  
	
  16.3.5

  	
  evidence that the relevant
  Vessel is insured in accordance with the provisions of this Agreement;

  
	
   

  	
   

  
	
  16.3.6

  	
  evidence that the relevant
  Vessel is classed at the highest classification status with her
  Classification Society;

  
	
   

  	
   

  
	
  16.3.7

  	
  certified copies of the
  classification and international safety and trading certificates of the
  relevant Vessel issued by the Classification Society of the relevant Vessel
  free of overdue recommendations or other conditions or notations affecting
  her class;

  
	
   

  	
   

  
	
  16.3.8

  	
  if requested by the Banks,
  charter free market valuation of the relevant Vessel on the basis of Clause
  17.1 issued by reputable sale and purchase brokers appointed by the Security
  Trustee, acting with the authorisation of the instructing Group certifying
  the market value of the relevant Vessel at the expense of the Owner thereof;

  
	
   

  	
   

  
	
  16.3.9

  	
  certified copy of the
  Approved Management Agreement in respect of the relevant Vessel;

  

 

45

 

	
  16.3.10

  	
  copies of ISM Code
  Documentation in relation to the relevant Vessel (i.e. SMC) and the Manager
  (i.e. DOC) and ISPS Code Documentation; and

  
	
   

  	
   

  
	
  16.3.11

  	
  certified copies of the
  Purchase Documents in respect of the relevant Vessel together with such
  evidence as the Security Trustee and/or its legal advisers shall require in
  relation to the authorisation and execution of the Purchase Documents on
  behalf of the Builder.

  
	
   

  	
   

  
	
  16.4

  	
  The agreement of the Banks
  to permit the drawdown of an Additional Works’ Advance in respect of a Vessel
  is subject to the condition that the Security Trustee shall have received the
  following documents or evidence in form and substance satisfactory to
  the Security Trustee and its legal advisers on or prior to the Drawdown Date
  of such Additional Works’ Advance:

  
	
   

  	
   

  
	
  16.4.1

  	
  evidence that any balance
  (in addition to the relevant Additional Works’ Advance) due to IOTA has been
  or will immediately on drawdown of the relevant Additional Works’ Advance be
  paid to IOTA:

  
	
   

  	
   

  
	
  16.4.2

  	
  receipt from IOTA
  evidencing payment in full of the Additional Works for the Vessel relevant to
  such Additional Works Advance;

  
	
   

  	
   

  
	
  16.4.3

  	
  a detailed list prepared
  by IOTA and countersigned by the Owner of the relevant Vessel setting out all
  the equipment and the Owners’ supplies in accordance with the Additional
  Works’ Contract in respect of such Vessel;

  
	
   

  	
   

  
	
  16.4.4

  	
  evidence in form and
  substance satisfactory to the Agent in its sole discretion that the
  additional specialised equipment included into the list to be provided
  pursuant to Clause 16.4.3 above has been installed in the relevant Vessel
  together with copies of all appropriate technical certificates verifying the
  above installation;

  
	
   

  	
   

  
	
  16.5

  	
  Furthermore the obligation
  of the Banks to make the Advances is subject to the following further
  conditions:

  
	
   

  	
   

  
	
  16.5.1

  	
  that both at the date of a
  Notice of Drawdown and on each Drawdown Date -

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  no Event of Default or
  Potential Event of Default has occurred and is continuing or might result
  from the making of the relevant Advance(s); and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the representations and
  warranties of the Borrowers in Clause 14 and the representations and
  warranties of the Borrowers and other parties to the Subject Documents set
  out in the Subject Documents are true and accurate as of each such date, as
  if made on each such date with reference to the facts then subsisting.

  
	
   

  	
   

  	
   

  
	
  16.5.2

  	
  that the Security Trustee
  shall have received, and found to be satisfactory to it in all respects, such
  further opinions, consents, agreements and documents in connection with this
  Agreement and the Subject Documents as the Security Trustee may request
  by notice to the Borrowers prior to each Drawdown Date.

  

 

46

 

	
   

  	
  PROVIDED HOWEVER THAT the
  Agent may (with the prior written consent of all the Banks) allow any
  Advance to be drawn down and also may (with the prior written consent of
  all the Banks and the L/C Bank) allow sums to be released from the Cash
  Collateral Account notwithstanding that all conditions specified in the
  respective sub-clauses of this Clause 16 have not been fulfilled and in this
  event each of the Borrowers hereby covenants to fulfil and procure the
  fulfilment of such conditions within five (5) Business days after the
  relevant Drawdown Date or the relevant date of release of funds from the Cash
  Collateral Account (as the case may be) or at such other time specified
  by the Agent with the prior written consent of the Banks and in the case of
  release of funds from the Cash Collateral Account, the Banks and the L/C Bank
  and the advance of any part of the Loan, shall not be taken as a waiver
  of the Agent and Bank’s right to require production of all documents and
  evidence required by Clause 16.1.

  
	
   

  	
   

  
	
  17

  	
  MAINTENANCE
  OF SECURITY

  
	
   

  	
   

  
	
  17.1

  	
  If the Agent reasonably
  requires at any time and from time to time and at least every twelve (12)
  months, each Mortgaged Vessel shall be valued in Euros by two Approved S &
  P Brokers chosen by the Security Trustee, acting with the authorisation of
  the Instructing Group and the Market Value of each Mortgaged Vessel shall be
  the average of such two valuations which shall be made without physical
  inspection (unless otherwise required by the Security Trustee), and on the
  basis of an arm’s-length purchase by a willing buyer from a willing seller
  and without taking into account any charterparty. The fees of the Approved S &
  P Brokers appointed to give such valuations and all other costs arising in
  connection with the obtaining of any such valuations shall be paid by the
  Borrowers.

  
	
   

  	
   

  
	
  17.2

  	
  In the event that at any
  time during the Security Period after the earlier of (i) the Drawdown
  Date of the Delivery Advance last to occur and (ii) the Final
  Availability Date the Security Value shall be less than the Security
  Requirement applicable at the relevant time, then the Borrowers shall within
  twenty (20) Banking Days of receipt of a notice from the Security Trustee
  advising the Borrowers of the amount of such deficiency (which notice shall
  be conclusive) either provide to
  the Security Trustee and/or the Creditor Parties additional security (valued
  in accordance with normal banking practice) which shall in all respects be
  acceptable and satisfactory to the Banks in their sole discretion so that the
  Security Value together with the value of any additional security (valued as
  aforesaid) provided to the Security Trustee and/or the Creditor Parties
  pursuant to this Clause 17 is at least equal to the Security Requirement or
  prepay part of the Facility in accordance with Clause 8 so that the
  Security Value together with the value of any additional security (valued as
  aforesaid) provided to the Security Trustee and/or the Creditor Parties
  pursuant to this Clause is at least equal to the Security Requirement
  applicable at the relevant time.

  
	
   

  	
   

  
	
  18

  	
  GENERAL
  UNDERTAKINGS

  
	
   

  	
   

  
	
  18.1

  	
  The Borrowers hereby
  jointly and severally undertake with each Creditor Party to comply with the
  following provisions of this Clause 18 at all relevant times during the
  Security Period, except as the Security Trustee may, with the authorization
  of the Instructing Group, otherwise permit:

  

 

47

 

	
  18.1.1

  	
  to supply the Agent with
  three (3) copies of: (a) the annual audited Financial Statements of
  the Borrowers, of the Manager and of all other members of the Group, all such
  Financial Statements audited by auditors acceptable to the Agent, as soon as
  available but in any event not later than one hundred and eighty (180) days
  after the end of the relevant financial year starting with 2005 accounts and (b) the
  annual audited Financial Statements of AEGEAN PETROLEUM as soon as available
  but in any event not later than one hundred eighty (180) days after the end
  of the relevant financial year, starting (in both the aforesaid cases) with
  2004 accounts and such other information with regard to the business, properties
  or condition, financial or otherwise, of the Borrowers, the Manager and the
  other members of the Group as the Agent or any Bank may from time to
  time reasonably request; 

  
	
   

  	
   

  
	
  18.1.2

  	
  to procure that the
  Financial Statements to be delivered from time to time in accordance with
  Clause 18.1.1 shall be prepared in accordance with the Applicable Accounting
  Principles;

  
	
   

  	
   

  
	
  18.1.3

  	
  to obtain promptly at any
  time and from time to time such registrations, licenses, consents and
  approvals as may be required in respect of this Agreement and the other
  Subject Documents under any applicable law or regulation to enable the
  Borrowers to perform and discharge their duties and liabilities
  hereunder and thereunder and promptly supply the Security Trustee with copies
  thereof;

  
	
   

  	
   

  
	
  18.1.4

  	
  to deliver to the Security
  Trustee translations into English (certified by an authorised translator) of
  any documents which have to be delivered to the Creditor Parties or any of
  them under the terms of this Agreement or the other Finance Documents, the
  originals of which are not in the English language and execute any further
  document required by the Security Trustee in order to perfect or complete the
  security created by the Finance Documents;

  
	
   

  	
   

  
	
  18.1.5

  	
  to maintain their
  corporate existence under the laws of the Republic of the Marshall Islands
  and comply with all relevant legislation applicable to them;

  
	
   

  	
   

  
	
  18.1.6

  	
  to promptly notify the
  Security Trustee in writing of any Event of Default or any Potential Event of
  Default and of the steps (if any) which are being taken to nullify or
  mitigate its effect and of any dispute between any one or more of the
  Builder, the Refund Guarantor, the Borrowers, and the Guarantors, under the
  Subject Documents or any of them and of any occurrence of which they become
  aware which might adversely affect their ability to perform and
  discharge their duties and liabilities under this Agreement and/or the other
  Subject Documents;

  
	
   

  	
   

  
	
  18.1.7

  	
  not to dissolve, merge
  into or consolidate with any other company or partnership and ensure and
  procure that no change in the management or the legal or beneficial ownership
  of the Borrowers, the Corporate Guarantors and the Vessels shall be effected;

  
	
   

  	
   

  
	
  18.1.8

  	
  unless otherwise permitted
  by the Security Trustee (acting with the authorisation of the Instructing
  Group), not to amend, modify, vary or supplement or terminate or agree to any
  amendment, modification, variation or supplement or cancellation of any of
  the Subject Documents;

  

 

48

 

	
  18.1.9

  	
  not to engage in any
  business or activity, apart from the ownership and operation of the
  Vessel owned by each Borrower and activities ancillary thereto as permitted
  by this Agreement and the other Finance Documents; 

  
	
   

  	
   

  
	
  18.1.10

  	
  to ensure that at all
  times the claims of the Creditor Parties against the Security Parties under
  this Agreement and/or the other Finance Documents rank at least pari passu with the claims of all their
  other unsecured creditors save those whose claims are preferred by any
  bankruptcy, insolvency or other similar laws of general application; 

  
	
   

  	
   

  
	
  18.1.11

  	
  not to and ensure and
  procure that the Manager shall not make any advances, grant any credit or
  give any guarantee or indemnity to or for the benefit of any person or otherwise
  voluntarily assume any liability, whether actual or contingent, in respect of
  any obligations of any person, firm or company (save and except in connection
  with the ordinary course of operation of trading of the Vessels or, only in
  the case of the Manager, in the ordinary course of operation and trading of
  any other vessel managed by it); 

  
	
   

  	
   

  
	
  18.1.12

  	
  not to issue any further
  shares or alter any rights attaching to their issued shares in existence at
  the date of this Agreement;

  
	
   

  	
   

  
	
  18.1.13

  	
  not to convey, assign,
  transfer, sell or otherwise dispose of or deal with the Vessels or either of
  them;

  
	
   

  	
   

  
	
  18.1.14

  	
  not to sell, lease,
  transfer or otherwise dispose of, by one or more transactions or series of
  transactions (whether related or not), the whole or any part of their
  assets (other than the Vessels) or rights whether present or future;

  
	
   

  	
   

  
	
  18.1.15

  	
  not to borrow any money or
  permit any such borrowing to continue or incur any indebtedness whatsoever
  other than the Facility or other than by way of subordinated shareholders’
  loans or enter into any agreement for payment on deferred terms (otherwise
  than on customary suppliers’ credit terms) or any equipment lease or contract
  hire agreement other than in the ordinary course of business;

  
	
   

  	
   

  
	
  18.1.16

  	
  not to authorise or accept
  any capital commitments (save and except in connection with the purchase of
  and the ordinary course of operation or trading of the Vessels);

  
	
   

  	
   

  
	
  18.1.17

  	
  not to declare or pay
  dividends or make any distributions to their shareholders in any form whatsoever;

  
	
   

  	
   

  
	
  18.1.18

  	
  from time to time (but not
  more than once every six (6) months) on request by the Security Trustee,
  to deliver to it a certificate signed by a director or officer of each of the
  Borrowers confirming that, save as may be notified in detail In such
  certificate, no Event of Default or Potential Event of Default has occurred
  and is then subsisting to be accompanied by such evidence as to the
  information and matters contained in such certificate as the Security Trustee
  and/or the other Creditor Parties may from time to time reasonably
  require;

  
	
   

  	
   

  
	
  18.1.19

  	
  to pay and to ensure and
  procure that the other Security Parties shall pay all Taxes, assessments and
  other governmental charges when the same fall due, except to the extent 

  

 

49

 

	
   

  	
  that the same are being
  contested in good faith by appropriate proceedings and adequate reserves have
  been set aside for their payment if such proceedings fail and ensure and
  procure that all relevant tax returns of the Borrowers and the other Security
  Parties shall be properly and timely filed;

  
	
   

  	
   

  
	
  18.1.20

  	
  without prejudice to their
  obligations under Clause 18.1.6 to send (or procure that it is sent) to the
  Security Trustee for distribution to the other Creditor Parties as soon as
  the same is instituted (or, to the knowledge of the Borrowers threatened),
  details of any litigation, arbitration or administrative proceedings against
  or involving the Borrowers the other Security Parties (or any of them) or the
  Vessels or either of them which is likely to have a material adverse effect
  on the Borrowers, the other Security Parties (or any of them) or the
  operation of the Vessels; 

  
	
   

  	
   

  
	
  18.1.21

  	
  not to amend their
  articles of incorporation and by-laws or other constitutional documents; and 

  
	
   

  	
   

  
	
  18.1.22

  	
  not to amend, modify,
  vary, supplement, terminate, cancel or rescind or agree to any amendment,
  modifications, variation, supplement, termination, cancellation or rescission
  of any of the Subject Documents. 

  
	
   

  	
   

  
	
  19

  	
  OPERATIONAL
  UNDERTAKINGS

  
	
   

  	
   

  
	
  19.1

  	
  The Borrowers hereby
  undertake with the Creditor Parties that on the Delivery Date of each Vessel
  and throughout the Security Period thereafter, shall comply with the
  following provisions of this Clause 19 except as the Security Trustee may,
  with the authorization of the Instructing Group, otherwise permit:

  
	
   

  	
   

  
	
  19.1.1

  	
  to procure that each
  Vessel shall be duly registered under the laws and the flag approved by the
  Creditor Parties in the ownership of the Owner thereof and not do or suffer
  to be done anything whereby the registration may be forfeited or
  imperilled;

  
	
   

  	
   

  
	
  19.1.2

  	
  to appoint and/or keep the
  Manager appointed as manager of the Vessels and not vary or terminate this
  appointment;

  
	
   

  	
   

  
	
  19.1.3

  	
  not save as contemplated
  in the Finance Documents, to create, incur or permit to subsist any
  Encumbrance over the Vessels, the Earnings, the Insurances or the Requisition
  Compensation or all or any of the present or future assets of the Borrowers
  or either of them (other than any Permitted Encumbrance);

  
	
   

  	
   

  
	
  19.1.4

  	
  not at any time to
  represent to a third party that the Creditor Parties (or any of them) are
  carrying cargo in the Vessels or either of them or are in any way connected
  or associated with an operation or carriage being undertaken by them or have
  any operational interest in the Vessels or either of them;

  
	
   

  	
   

  
	
  19.1.5

  	
  not to voyage or time
  charter the Vessels or either of them or place them/her under contract for
  employment (a) for any period which when aggregated with any optional periods
  of extension contained in the said charter or contract, would exceed twelve
  (12) months or (b) at a charter rate which is below the market rate at
  the time of the charter fixture and in case of a Vessel

  

 

50

 

	
   

  	
  being employed for more
  than twelve (12) months, after having obtained the Security Trustee’s consent
  acting on the instructions of the Instructing Group, the Security Trustee
  shall be furnished with (i) details and documentary evidence satisfactory
  to the Security Trustee in its sole discretion in respect of the new
  employment and (ii) upon Security Trustee’s request, a specific
  assignment in favour of the Security Trustee of the benefit of such charter
  together with a notice of any such assignment addressed to the relevant
  charterer and endorsed with an acknowledgement of receipt by the relevant
  charterer all in form and substance satisfactory to the Security
  Trustee; 

  
	
   

  	
   

  
	
  19.1.6

  	
  not to demise charter the
  Vessels or either of them for any period whatsoever;

  
	
   

  	
   

  
	
  19.1.7

  	
  not without the prior
  written consent of the Security Trustee to put a Vessel into the possession
  of any person for the purpose of work being done upon her in an amount
  exceeding or likely to exceed US$300,000 (or the equivalent in any other
  currency) unless the Borrowers shall have satisfied the Security Trustee that
  the cost of such work is fully recoverable under the Insurances (save for any
  applicable deductible) or such person shall first have given to the Security
  Trustee and in terms satisfactory to it a written undertaking not to exercise
  any lien on a Vessel or her Earnings or Insurances for the cost of such work
  or otherwise;

  
	
   

  	
   

  
	
  19.1.8

  	
  to give the Security
  Trustee reasonable prior notice of any dry-docking of either Vessel so that
  the Security Trustee (if it so requires) can arrange for a representative to
  be present;

  
	
   

  	
   

  
	
  19.1.9

  	
  to notify the Security
  Trustee of any intended laying-up or de-activation of either Vessel;

  
	
   

  	
   

  
	
  19.1.10

  	
  to provide the Security
  Trustee with such copies of the trading certificates of each Vessel as the
  Security Trustee may from time to time require;

  
	
   

  	
   

  
	
  19.1.11

  	
  to hold or procure that
  the Manager shall hold all appropriate ISM Code Documentation and ISPS Code
  Documentation and provide the Agent upon request from time to time with
  copies of the relevant ISM Code Documentation and ISPS Code Documentation
  duly issued to the Manager and the Vessels and the Owners pursuant to the ISM
  Code and the ISPS Code respectively;

  
	
   

  	
   

  
	
  19.1.12

  	
  to keep, or procure that there
  is kept, on board a Vessel a copy of all relevant ISM Code Documentation and
  ISPS Code Documentation;

  
	
   

  	
   

  
	
  19.1.13

  	
  as soon as an Owner
  becomes aware, to inform the Security Trustee immediately should the
  Document of Compliance and/or the Safety Management Certificate and/or the
  International Ship Security Certificate issued in connection with the
  relevant ISM Code Documentation or ISPS Code Documentation in respect of a
  Vessel be cancelled, rescinded, suspended or amended in any way;

  
	
   

  	
   

  
	
  19.1.14

  	
  to notify the Security
  Trustee promptly upon being made aware thereof upon the occurrence of-

  

 

51

 

	
   

  	
  (a)

  	
  any Environmental Claim
  against the Owners or either of them or the Manager or the Vessels or either
  of them;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  any Environmental Incident
  which may give rise to an Environmental Claim which could or might
  materially affect the Interests of the Owners, the Manager or any of them; 

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  any claim for breach of
  the ISM Code or the ISPS Code being made against the Owners, an ISM
  Responsible Person, the Manager or any of them or otherwise in connection
  with the Vessels or either of them; and 

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  any other matter, event or
  incident actual or threatened, the effect of which would lead to the ISM Code
  or the ISPS Code not being complied with;

  
	
   

  	
   

  	
   

  
	
   

  	
  and to keep the Security
  Trustee advised in writing on a regular basis and in such detail as the
  Security Trustee shall require of the relevant Owner’s, the ISM Responsible
  Person’s, the Manager’s or any other person’s proposed or actual response to
  any of those events or matters;

  
	
   

  	
   

  
	
  19.1.15

  	
  to permit, or procure that
  the Security Trustee shall have the right at any time on reasonable notice to
  inspect or survey each Vessel or instruct a duly authorised independent
  surveyor to carry out such survey on its behalf to ascertain the condition of
  such Vessel and satisfy itself that such Vessel is being properly repaired
  and maintained, provided that such inspections shall not unreasonably
  interfere with such Vessel’s running or operation (and the costs of such
  Inspection or survey shall be payable by the Borrowers);

  
	
   

  	
   

  
	
  19.1.16

  	
  to promptly provide the
  Security Trustee with information concerning the classification status and
  insurance of the Vessels from time to time as and when so required in writing
  by the Security Trustee;

  
	
   

  	
   

  
	
  19.1.17

  	
  to ensure that the Owners
  shall execute and deliver to the Security Trustee such documents of transfer
  as the Security Trustee may require in the event of sale of the Vessels
  pursuant to any power of sale contained in the Mortgage over the relevant
  Vessel or which the Security Trustee may have in law;

  
	
   

  	
   

  
	
  19.1.18

  	
  to provide the Security
  Trustee with a certificate of ownership and encumbrances relative to the
  Vessels issued by the relevant registry of the Vessels; and

  
	
   

  	
   

  
	
  19.1.19

  	
  upon becoming aware, to
  notify the Security Trustee immediately by telefax of any recommendation or
  requirement imposed by the Classification Society, the Insurers or by any
  other competent authority in respect of a Vessel that is not complied with in
  accordance with its terms;

  
	
   

  	
   

  
	
  19.1.20

  	
  to ensure that each Owner
  shall carry on each Vessel with the Vessel’s papers a properly certified copy
  of the Mortgage over such Vessel and exhibit the same to any person having
  a legal interest in, or having business with, such Vessel and to any
  representative of the Security

  

 

52

 

	
   

  	
  Trustee, and place and
  keep prominently in the Chart Room and in the Master’s cabin of such
  Vessel a framed notice printed in plain type of such size that the paragraph
  of reading matter shall cover a space not less than six inches wide and nine
  inches high reading as follows:

   

  “NOTICE OF MORTGAGE

   

  This
  Vessel is owned by [     ] and is subject to a first preferred [priority]
  mortgage in favour of AEGEAN BALTIC BANK S.A. [and HSH NORDBANK AG]. Under
  the terms of said Mortgage, neither the Owner, nor the Master nor any other
  person has any right, power or authority to create, incur or permit to be imposed
  upon this Vessel any other lien whatsoever other than for crew’s wages and
  salvage”

  
	
   

  	
   

  
	
  19.1.21

  	
  to pay when due and
  payable all taxes, assessments, levies, governmental charges, fines and
  penalties lawfully imposed on and enforceable against the Vessels unless
  contested in good faith by the Owners by the appropriate proceedings;

  
	
   

  	
   

  
	
  19.1.22

  	
  if any writ or proceedings
  shall be issued against the Vessels or either of them shall be otherwise
  attached, arrested or detained by any proceeding in any court or tribunal or
  by any government or other authority, to immediately notify the Security
  Trustee thereof by telefax confirmed by letter and within fourteen (14) days
  thereafter cause that Vessel to be released;

  
	
   

  	
   

  
	
  19.1.23

  	
  not to cause or permit the
  Vessels or either of them to be operated in any manner contrary to any law or
  regulation in any relevant jurisdiction including but not limited to the ISM
  Code and the ISPS Code and not to engage in any unlawful trade or carry any
  cargo that will expose the Vessels or either of them to penalty, forfeiture
  or capture and in the event of hostilities in any part of the world
  (whether a war be declared or not) not employ the Vessels or either of them
  or voluntarily suffer their/her employment in carrying any contraband goods;

  
	
   

  	
   

  
	
  19.1.24

  	
  to promptly pay all tolls,
  dues and outgoings in respect of each Vessel and all wages, allotments,
  insurance and pension contributions of the Master and crew of each Vessel
  when due and make all deductions from the wages in respect of any tax
  liability, accounting to the relevant authority for them and if the Security
  Trustee at any time has reasonable cause to believe that such payments may not
  be being made, to produce to the Security Trustee at its request evidence
  confirming that all such amounts have been paid when due;

  
	
   

  	
   

  
	
  19.1.25

  	
  at all times to maintain
  each Vessel in a seaworthy condition and in good running order and repair in
  accordance with first class ship ownership and ship management practice
  and keep each Vessel in such condition as will entitle them/her to be classed
  at the highest classification status with their/her Classification Society
  free of all recommendations and qualifications (other than those which have
  been or are being complied with in accordance with their terms and which are
  not by their terms overdue for compliance), follow any interim operational
  provisos to such recommendations and qualifications and when so requested to
  provide the Security Trustee with a certificate issued by the relevant
  Classification Society confirming that such classification is maintained;

  

 

53

 

	
  19.1.26

  	
  to submit each Vessel
  regularly to such periodical or other surveys as may be required for
  classification purposes and, if so required by the Security Trustee in
  writing, supply to the Security Trustee copies of all survey reports issued
  in respect thereof;

  
	
   

  	
   

  
	
  19.1.27

  	
  at all times to comply
  with all legal requirements whether imposed by enactment, regulation, common
  law or otherwise and have on board each Vessel as and when legally required
  valid certificates showing compliance therewith;

  
	
   

  	
   

  
	
  19.1.28

  	
  without prejudice to the
  generality of Clause 19.1.27, to obtain and maintain any and all
  Environmental Approvals required in respect of each Vessel and comply or
  procure that the Manager or any charterer of either Vessel (including without
  limitation the Time Charterer) will at all times comply with the ISM Code,
  the ISPS Code, the ISPS Code Documentation, all Environmental Laws, and all
  other laws and regulations relating to each Vessel, its ownership, operation,
  manning and management or to the business of the each Owner and/or the
  Manager;

  
	
   

  	
   

  
	
  19.1.29

  	
  not remove or permit the
  removal of any part of the Vessels or either of them or any equipment
  belonging thereto nor make or permit any alterations to be made in the
  structure, type or speed of the Vessels or either of them which materially
  reduce the value of the Vessels or either of them (unless such removal or
  alteration is required by statute or by the Classification Society); and

  
	
   

  	
   

  
	
  19.1.30

  	
  in the event of Compulsory
  Acquisition of a Vessel execute any assignment that the Security Trustee may request
  in relation to any and all amounts which the relevant Government Entity shall
  be liable to pay as compensation for such Vessel or for its use and if
  received by the Owner thereof to pay such amounts immediately to the Agent.

  
	
   

  	
   

  
	
  19.2

  	
  The Borrowers hereby
  irrevocably agree and undertake to ensure and procure that -

  
	
   

  	
   

  
	
  19.2.1

  	
  the Security Trustee, or
  its authorised representatives may, without prior notification, communicate
  directly with the Classification Society concerning maintenance, repair,
  classification and seaworthiness of the Vessels, and to the same extent with
  any regulatory authority having jurisdiction over the Vessels;

  
	
   

  	
   

  
	
  19.2.2

  	
  the Owners shall
  unconditionally authorise the Classification Society or regulatory authority,
  at the request of the Security Trustee, to give information to it, or its
  authorised representatives and to conduct inspections and surveys of the
  Vessels, as if requested by the Owners;

  
	
   

  	
   

  
	
   

  	
  provided that the Security
  Trustee will not, without prior consultation with the Borrowers, take any
  action under this Clause 19.2 unless an Event of Default or Potential Event
  of Default has occurred.

  
	
   

  	
   

  
	
  19.3

  	
  The Borrowers shall
  throughout the Security Period duly observe and perform all of the
  covenants, obligations and conditions which are required to be observed and
  performed on their part under this Agreement and each of the other
  Finance Documents to which they are a party and shall use their best
  endeavours to procure that all covenants, obligations and

  

 

54

 

	
   

  	
  conditions required to be
  observed and performed, and undertakings made, by any of the other Security
  Parties under any of the Subject Documents shall be observed and complied
  with in their entirety.

  
	
   

  	
   

  
	
  20

  	
  INSURANCE
  UNDERTAKINGS

  
	
   

  	
   

  
	
  20.1

  	
  The Borrowers hereby also
  undertake with the Creditor Parties to comply or to ensure and procure that
  the Manager shall comply with the following provisions of this Clause 20.1
  from the Delivery Date of each Vessel at all times during the Security
  Period, except as the Security Trustee may, with the authorisation of the
  Instructing Group otherwise permit, at the expense of the Borrowers and upon
  such terms and conditions, in such amounts and with such Insurers as shall
  from time to time be approved in writing by the Security Trustee and, if so
  required by the Security Trustee (but without, as between the Security
  Trustee and the Borrowers and/or the Manager, liability on the part of
  the Security Trustee for premiums or calls) with the Security Trustee named
  as co-assured:

  
	
   

  	
   

  
	
  20.1.1

  	
  to insure and keep insured
  each Vessel in Euros or such other currency as may be approved in
  writing by the Security Trustee for the full insurable value of each Vessel
  but in no event for an aggregate amount in respect of the Mortgaged Vessels
  which is less than one hundred twenty per cent (120%) of the Facility against
  fire and usual marine (including Excess Risks) and War Risks covered by hull
  and machinery policies;

  
	
   

  	
   

  
	
  20.1.2

  	
  to enter each Vessel in
  the name of the Owner thereof for her full value and tonnage against all
  Protection and Indemnity Risks in a protection and indemnity association
  approved by the Security Trustee with unlimited liability if available
  otherwise with the least limited liability for the time being
  US$1,000,000,000 in relation to oil pollution risks and to comply with the rules of
  such protection and indemnity association from time to time in effect and if
  so requested by the Security Trustee to obtain excess oil spillage and
  pollution insurance in excess of the limit of the protection and indemnity
  association with the highest possible cover;

  
	
   

  	
   

  
	
  20.1.3

  	
  if either Vessel enters
  the territorial waters of the USA (or other jurisdiction having legislation
  similar to the US Oil Pollution Act 1990) for any reason whatsoever to take
  out such additional insurance to cover such risks as may be necessary in
  order to obtain a Certificate of Financial Responsibility from the United
  States Coastguard;

  
	
   

  	
   

  
	
  20.1.4

  	
  to pay to the Security
  Trustee upon first demand all premiums and other amounts payable by the
  Security Trustee in effecting a Mortgagees’ Interest Insurance policy (“MII”) and a Mortgagees’ Interest
  Additional Perils Insurance (“MAPI”)
  in relation to the Vessels in the name of the Security Trustee, upon such
  terms and conditions and with such insurers and for such amount as the
  Security Trustee may require which amount shall not be less than one
  hundred and twenty per cent (120%) (as regards MII) and one hundred and ten
  per cent (110%) (as regards MAPI) of the Facility;

  
	
   

  	
   

  
	
  20.1.5

  	
  to effect such additional
  Insurances that shall (in the reasonable opinion of the Security Trustee) be
  necessary or advisable.

  

 

55

 

	
  20.2

  	
  The Borrowers further
  undertake with the Creditor Parties to comply or to ensure that the Manager
  shall comply with the following provisions of this Clause 20.2 at all times
  during the Security Period except as the Security Trustee may with the
  authorisation of the Instructing Group otherwise permit:

  
	
   

  	
   

  
	
  20.2.1

  	
  to renew the Insurances at
  least ten (10) Business Days before the Insurances expire (or give the
  Security Trustee evidence satisfactory to it that such Insurances will be
  renewed upon their stated expiry dates) and to procure that the Approved
  Brokers or the Insurers (as the case may be) shall promptly confirm in
  writing to the Security Trustee the terms and conditions of such renewal as
  and when the same occurs;

  
	
   

  	
   

  
	
  20.2.2

  	
  punctually to pay all
  premiums, calls, contributions or other sums payable in respect of the
  Insurances and to produce evidence of payment when so required in writing by
  the Security Trustee;

  
	
   

  	
   

  
	
  20.2.3

  	
  to arrange for the
  execution of such guarantees as may from time to time be required by any
  Protection and Indemnity or War Risks association;

  
	
   

  	
   

  
	
  20.2.4

  	
  to procure that the
  Insurance Documents shall be deposited with the Approved Brokers or the
  Insurers (as the case may be) and that the Approved Brokers or the
  Insurers (as the case may be) shall provide the Security Trustee with
  pro forma copies thereof and shall issue to the Security Trustee a letter or
  letters of undertaking in such form as the Security Trustee shall
  reasonably require;

  
	
   

  	
   

  
	
  20.2.5

  	
  to procure that the
  Protection and Indemnity and/or War Risks associations in which the Vessels
  are entered shall provide the Security Trustee with a letter or letters of
  undertaking in such form as may be reasonably required by the
  Security Trustee and shall provide the Security Trustee with a copy of the
  certificate of entry and, if so requested by the Security Trustee, a copy of
  each certificate of financial responsibility for pollution by oil or other
  substances issued by such Protection and Indemnity and/or War Risks
  association in relation to the Vessels; 

  
	
   

  	
   

  
	
  20.2.6

  	
  to procure that the
  interest of the Security Trustee is endorsed on the Insurance Documents by means
  of a Notice of Assignment in the form in Schedule 3 to the
  Assignment Agreements or such other form as the Security Trustee may require
  and that the Insurance Documents (including all certificates of entry in any
  Protection and Indemnity and/or War Risks association) shall contain a loss
  payable clause during the Security Period in the form in Schedule 4
  or Schedule 5 (as may be appropriate) to the Assignment Agreements
  or such other form as the Security Trustee may require;

  
	
   

  	
   

  
	
  20.2.7

  	
  to procure that the
  Insurance Documents shall provide that the lien or set off for unpaid
  premiums or calls shall be limited to only the premiums or calls due in
  relation to the Insurances on the Vessels and the Insurers shall not cancel
  any of the Insurances by reason of non-payment of premium or calls due in
  respect of other vessels or in respect of other insurances and for fourteen
  (14) days prior written notice to be given to the Security Trustee by the
  Insurers (such notice to be given even if the Insurers have not received an
  appropriate

  

 

56

 

	
   

  	
  enquiry from the Security
  Trustee) in the event of cancellation or termination of the Insurances and in
  the event of the non-payment of the premium or calls, the right to pay the said
  premium or calls within a reasonable time;

  
	
   

  	
   

  
	
  20.2.8

  	
  promptly to provide the
  Security Trustee with full information regarding any casualties or damage to
  a Vessel in an amount in excess of USD 300,000 or its equivalent in any other
  currency or in consequence whereof a Vessel have become or may become a
  Total Loss;

  
	
   

  	
   

  
	
  20.2.9

  	
  at the request in writing
  of the Security Trustee to provide the Security Trustee, at the Borrowers’
  cost (but not more often than once in every twelve (12) months), with a
  detailed report issued by a firm of marine insurance brokers or consultants
  appointed by the Borrowers and approved by the Security Trustee in relation
  to the Insurances;

  
	
   

  	
   

  
	
  20.2.10

  	
  not to do any act nor
  voluntarily suffer nor permit any act to be done whereby any Insurances shall
  or may be suspended or avoided and not to suffer nor permit the Vessels
  or either of them to engage in any voyage nor to carry any cargo not
  permitted under the Insurances in effect without first obtaining the Insurers’
  consent for such voyage or the carriage of such cargo and complying with such
  requirements as to extra premiums or otherwise as the Insurers may prescribe;
  

  
	
   

  	
   

  
	
  20.2.11

  	
  not to employ the Vessels
  or either of them, or offer the Vessels or either of them to be employed, otherwise
  than in conformity with the terms of the Insurance Documents (including any
  express or implied warranties they contain), without first obtaining the
  Insurers’ consent to such other employment and complying with such
  requirements as to extra premiums or otherwise as the Insurers may prescribe,
  or arranging for additional insurance; 

  
	
   

  	
   

  
	
  20.2.12

  	
  (without limitation to the
  generality of the foregoing) in particular not to permit the Vessels or
  either of them to enter or trade to any zone which is declared a war zone by
  any government or by the Insurers in respect of War Risks unless there shall
  have been effected by the Owners and at their expense such special insurance
  or the consent of the Insurers to enter or trade into such zone is obtained
  and the relevant Owner(s) is(are) complying with such requirements as to
  extra premiums or otherwise as the Insurers may prescribe;

  
	
   

  	
   

  
	
  20.2.13

  	
  to procure that all
  amounts payable under the Insurances are paid in accordance with the relevant
  loss payable clause under Clause 20.2.6 and to apply all amounts as are paid
  to the Owners for the purpose of making good the loss and fully repairing all
  damage in respect of which the said amounts shall have been received;

  
	
   

  	
   

  
	
  20.2.14

  	
  should a Vessel be laid up
  for any period, to arrange ‘lay-up’ Insurances for such Vessel during such
  period, at their own cost and upon such terms and conditions, in such amounts
  and with such Insurers as shall from time to time be approved in writing by
  the Security Trustee; and

  
	
   

  	
   

  
	
  20.2.15

  	
  to ensure and procure that
  during the period prior to the Delivery Date of each Vessel, such Vessel
  shall be insured in accordance with the terms of the Shipbuilding Contract in
  respect thereof.

  

 

57

 

	
  21

  	
  RETENTION
  ACCOUNT

  
	
   

  	
   

  
	
  21.1

  	
  The Borrowers hereby agree
  to open the Retention Account with the Agent. On the date falling thirty (30)
  days after the Drawdown Date of each Delivery Advance and on the same date in
  each consecutive following calendar month (provided that if such day is not a
  Business Day, the next following Business Day) the Agent will transfer from
  the Earnings Accounts to the Retention Account an amount equal to one third
  (1/3rd) of the Repayment Instalment falling due under sub-Clause 10.1(a) on
  the next Repayment Date and the relevant monthly fraction of interest due on
  the next Interest Payment Date.

  
	
   

  	
   

  
	
  21.2

  	
  On each Repayment Date,
  the Agent shall (and is hereby irrevocably instructed to make the relevant
  transfers) transfer from the Retention Account to the loan account(s) held by
  it in connection with the Facility an amount equal to the Repayment
  Instalment in respect of the relevant Tranche payable on that date and on
  each Interest Payment Date the Agent shall transfer from the Retention Account
  to the loan account(s) held by it in connection with the Facility an amount
  equal to the interest payable under Clause 5 on that date.

  
	
   

  	
   

  
	
  21.3

  	
  In the event that there
  are insufficient funds in the Earnings Accounts to pay the amounts referred
  to in Clause 21.1 above the Borrowers agree to pay to the Agent an amount
  equal to the difference between the actual amount in the Earnings Accounts
  and the amount due under Clause 21.1 on the next Business Day in such month
  on the Agent’s first demand.

  
	
   

  	
   

  
	
  21.4

  	
  Save as provided in this
  Clause 21 and (in respect of monies credited to the Cash Collateral Account)
  in Clause 2.3, no moneys credited to any Account shall be paid to or to the
  order of the Borrowers without the Agent’s prior written consent.

  
	
   

  	
   

  
	
  21.5

  	
  The Agent shall pay
  interest to the Borrowers on the credit balances from time to time in the
  Accounts at the rate which it usually pays on equivalent amounts and in
  accordance with its usual practice on the basis of one month interest
  periods.

  
	
   

  	
   

  
	
  22

  	
  EVENTS OF
  DEFAULT

  
	
   

  	
   

  
	
  22.1

  	
  Each of the following
  events shall constitute an Event of Default (whether such event shall occur
  or come about voluntarily or involuntarily or by operation of law or
  regulation or pursuant to, or in compliance with any judgment, decree or order
  of any court or other authority)

  
	
   

  	
   

  
	
  22.1.1

  	
  the Borrowers shall fail
  to pay when due any amount (whether in respect of principal, interest or
  otherwise) under this Agreement or any of the other Finance Documents to
  which it is a party on the due date;

  
	
   

  	
   

  
	
  22.1.2

  	
  any representation,
  warranty or statement made by any Party (other than the Creditor Parties) in
  this Agreement or in the other Finance Documents or any certificate,
  statement or opinion delivered or made hereunder or under the other Finance
  Documents or in connection herewith or with the other Finance Documents shall
  be incorrect or inaccurate when made in any material respect;

  

 

58

 

	
  22.1.3

  	
  an event of default or a
  potential event of default under any of the Subject Documents (as defined
  therein) shall have occurred;

  
	
   

  	
   

  
	
  22.1.4

  	
  the Borrowers or either of
  them shall fail duly and punctually to perform or observe any other term
  of this Agreement or the other Finance Documents to which each of the Borrowers
  is a party and such failure, if capable of remedy, shall continue for
  fourteen (14) days after the Security Trustee shall have given to the
  Borrowers notice of such failure;

  
	
   

  	
   

  
	
  22.1.5

  	
  except where contested in
  good faith by the appropriate proceedings, any other indebtedness of the
  Borrowers or either of them shall become due and payable or, with the giving
  of notice or lapse of time or both, capable of being declared due and
  payable, prior to its stated maturity by reason of any circumstance entitling
  the creditor(s) thereof to declare such indebtedness due and payable and such
  Indebtedness is not paid within fourteen (14) days thereof;

  
	
   

  	
   

  
	
  22.1.6

  	
  the Borrowers or either of
  them shall enter into voluntary or involuntary bankruptcy, liquidation or dissolution,
  or shall become insolvent, or an administrator, administrative receiver,
  receiver or liquidator shall be appointed of all or a material part of
  their undertakings or assets or proceedings are commenced by or against them
  under any reorganisation, arrangement, readjustment of debts, dissolution or
  liquidation law or regulation; 

  
	
   

  	
   

  
	
  22.1.7

  	
  the Borrowers or either of
  them shall cease or threaten to cease to carry on its business; 

  
	
   

  	
   

  
	
  22.1.8

  	
  there shall be a transfer
  or disposal of all or a substantial part of the assets of the Borrowers
  or either of them, whether by one or a series of transactions, related
  or not, without the prior written consent of the Security Trustee acting with
  the authorisation of the Instructing Group;

  
	
   

  	
   

  
	
  22.1.9

  	
  there is a considerable
  deterioration in the financial position of the Borrowers or either of them
  which in the reasonable opinion of the Security Trustee is likely to affect
  the ability of the Borrowers or either of them to pay all amounts due from
  time to time under this Agreement and/or the other Finance Documents;

  
	
   

  	
   

  
	
  22.1.10

  	
  any governmental or other
  consent, licence or authority required to make this Agreement and/or the
  other Finance Documents legal, valid, binding, enforceable and admissible in
  evidence or required to enable the Borrowers or either of them to perform their/its
  duties and discharge their/its liabilities hereunder or under the other
  Finance Documents is withdrawn or ceases to be in full force and effect
  unless the Borrowers or either of them procure that such consent, licence or
  authority is reinstated or re-issued to the satisfaction of the Security
  Trustee within fifteen (15) days of the said withdrawal or cessation; or

  
	
   

  	
   

  
	
  22.1.11

  	
  any of the events referred
  to in Clauses 22.1.1, 22.1.2, 22.1.3, 22.1.4, 22.1.5, 22.1.6, 22.1.7, 22.1.8,
  22.1.9 or 21.1.10 occurs, mutatis
  mutandis, in respect of any other Security Party;

  
	
   

  	
   

  
	
  22.1.12

  	
  any Encumbrance which may for
  the time being affect any of the assets of the Borrowers or either of them or
  any of the other Security Parties which are considered, in the opinion of the
  Security Trustee, to be material becomes enforceable;

  

 

59

 

	
  22.1.13

  	
  any event occurs which
  would result in the crystallisation of any floating charge over the whole or
  any part of the assets of the Borrowers or either of them or any other
  Security Party;

  
	
   

  	
   

  
	
  22.1.14

  	
  for any reason the
  Security Trustee certifies that in its opinion the security constituted by
  any of the Finance Documents is or may be in jeopardy in any respect;

  
	
   

  	
   

  
	
  22.1.15

  	
  the country of domicile of
  the Borrowers or either of them or of any other relevant jurisdiction
  affected by the financing herein provided becomes involved in hostilities or
  civil war or there is a seizure of power in that country by unconstitutional
  means if in any such case, the event could in the opinion of the Security
  Trustee reasonably be expected to have a material adverse effect on the
  ability of the Borrowers or either of them to comply with their/its obligations
  under any Subject Document;

  
	
   

  	
   

  
	
  22.1.16

  	
  all or a material part of
  the undertaking, assets, rights or revenues of the Borrowers or either of
  them are seized, nationalised, expropriated or compulsorily acquired by or
  under the authority of any government or governmental authority without the
  payment of compensation equivalent to their full value in a currency which is
  freely convertible into Euros; 

  
	
   

  	
   

  
	
  22.1.17

  	
  there occur any
  circumstances of a national or international financial, political, military,
  social or economic nature which, in the opinion of the Security Trustee may have
  a material adverse effect on the financial condition of the Borrowers or
  either of them or of any of the other Security Parties or may imperil,
  delay or prevent fulfilment by the Borrowers or either of them of their/its
  obligations under any Subject Document;

  
	
   

  	
   

  
	
  22.1.18

  	
  any Advance is applied or
  used other than strictly for the purposes referred to in Clause 2.2;

  
	
   

  	
   

  
	
  22.1.19

  	
  an Owner sells, transfers,
  disposes of or encumbers its Vessel or any interest or share therein, or
  agree so to do (other than Permitted Encumbrances) without the prior written
  consent of the Security Trustee; 

  
	
   

  	
   

  
	
  22.1.20

  	
  the Subject Documents or
  any of them shall cease, in whole or in part, to be valid, binding and
  enforceable;

  
	
   

  	
   

  
	
  22.1.21

  	
  a Vessel is arrested or
  detained and such arrest or detention is not released within fourteen (14)
  days, or an order for the sale of such Vessel is made by a court of competent
  jurisdiction or the Owner thereof ceases to retain possession and/or control
  of its Vessel for a period in excess of fourteen (14) days; 

  
	
   

  	
   

  
	
  22.1.22

  	
  a Vessel is a Total Loss
  and the Agent and/or the Security Trustee shall not have received within one
  hundred eighty (180) days following the occurrence of the Total Loss (or such
  earlier date as the Total Loss claim is paid) from the Insurers the insurance
  proceeds paid in conformity with the terms of Clauses 8.1 and 8.2 or an equal
  amount from the Borrowers or either of them in case the Insurers do not
  accept the relevant Total Loss claim;

  
	
   

  	
   

  
	
  22.1.23

  	
  a Vessel is laid up for a
  period exceeding thirty (30) days without the prior written consent of the
  Banks or the Agent or the Security Trustee, as the case may be; 

  

 

60

 

	
  22.1.24

  	
  either Vessel is not
  delivered to and/or accepted by the Owner thereof by the Final Availability
  Date; 

  
	
   

  	
   

  
	
  22.1.25

  	
  any one or more of the
  Shipbuilding Contracts, the Additional Works’ Contracts, the Refund
  Guarantees or any other Subject Document is amended or varied in any material
  (in the opinion of the Security Trustee) way or rescinded or terminated for
  any reason whatsoever without the Security Trustee’s prior written consent
  acting with the authorisation of the Instructing Group; 

  
	
   

  	
   

  
	
  22.1.26

  	
  the Refund Guarantor fails
  to make any payment due by it to the relevant Owner under any Refund
  Guarantee; or 

  
	
   

  	
   

  
	
  22.1.27

  	
  if an Event of Default
  occurs under and as defined in the L/C Facility Agreement or any of the other
  security documents executed pursuant thereto. 

  
	
   

  	
   

  
	
  22.2

  	
  Upon the occurrence of an
  Event of Default and at any time thereafter, the Security Trustee may (and
  if instructed by an Instructing Group shall) by written notice to the
  Borrowers - 

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  declare all or any part of
  the Indebtedness (including such unpaid interest as shall have accrued)
  immediately due and payable whereupon the Indebtedness (or the part of
  the Indebtedness referred to in the Security Trustee’s notice) shall
  immediately become due and payable without any further demand or notice of
  any kind; and/or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  declare that the
  Commitment of the Banks shall be cancelled, whereupon the same shall be
  cancelled; and/or

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  take such Enforcement
  Action as Instructed by an Instructing Group

  
	
   

  	
   

  
	
  22.3

  	
  The Security Trustee and
  the other Creditor Parties may take any other action, exercise any other
  right or pursue any other remedy conferred upon the Security Trustee and/or
  any other Creditor Party by this Agreement and/or the other Finance Documents
  or by any applicable law or regulation or otherwise as a consequence of such
  Event of Default.

  
	
   

  	
   

  
	
  23

  	
  FEES

  
	
   

  	
   

  
	
  23.1

  	
  In addition to the fees
  paid upon on the date of acceptance of the Commitment Letter by the Borrowers
  and the Guarantors, the Borrowers have agreed to pay to the Agent for the
  account of the Arranger and the Lenders a non refundable fee (the “Arrangement
  Fee”) equal to 0.3750% of the aggregate amount of the Total Commitments out
  of which 1/3rd thereof shall be paid on the date hereof and an amount equal
  to the remaining 2/3rds thereof shall be paid on the Drawdown Date of the
  Advance first to occur.

  
	
   

  	
   

  
	
  23.2

  	
  The Borrowers shall pay to
  the Agent for the account of each Bank an availability fee of zero point
  forty per cent (0.40%) per annum on the from time to time available and
  undrawn amount of each Advance (the “Availability
  Fee”), such Availability Fee for each Advance shall accrue from
  the day to day for a period starting on the date of execution of the
  Commitment Letter and

  

 

61

 

	
   

  	
  ending on the Drawdown
  Date of the Advance it relates or on the Applicable Availability Date in
  respect thereof, whichever is earlier, shall be calculated upon the exact
  number of days which have elapsed on the basis of a year consisting of three
  hundred sixty (360) days and shall be payable quarterly in arrears and on the
  Drawdown Date of the Advance it relates or the Applicable Availability Date
  in respect thereof, as the case may be.

  
	
   

  	
   

  
	
  24

  	
  EXPENSES 

  
	
   

  	
   

  
	
  24.1

  	
  The Borrowers shall
  reimburse each Creditor Party on demand for all reasonable charges and
  expenses incurred by the Creditor Parties or any of them in connection with
  the preparation, negotiation and conclusion of this Agreement and the other
  Finance Documents (including, but not limited to, all costs and expenses of
  the Creditor Parties or any of them in connection with any assignment,
  transfer and sub-participation of their rights under this Agreement and the
  other Finance Documents) including fees and expenses of legal advisers and
  reasonable out-of-pocket expenses. 

  
	
   

  	
   

  
	
  24.2

  	
  The Borrowers shall
  reimburse each Creditor Party on demand for all charges and expenses
  (including legal fees) incurred by any Creditor Party in or in connection
  with the exercise of the Security Trustee’s and/or the other Creditor Parties’
  rights and powers under this Agreement and the other Finance Documents
  (including but not limited to the fees and charges of auditors, brokers,
  surveyors and legal counsel instructed by the Security Trustee and/or the
  other Creditor Parties) and with the actual, attempted or purported
  enforcement of, or preservation of rights under, this Agreement or the other
  Finance Documents.

  
	
   

  	
   

  
	
  25

  	
  INDEMNITY

  
	
   

  	
   

  
	
   

  	
  The Borrowers hereby
  jointly and severally undertake and agree to indemnify the Creditor Parties,
  upon the Agent’s first demand, from and against any losses, costs or expenses
  (including legal expenses) which they incur in consequence of any Event of
  Default including (but without limitation) all losses, premiums and penalties
  incurred or to be incurred in liquidating or redeploying deposits made by
  third parties or funds acquired or arranged to effect or maintain the
  Facility or any part thereof.

  
	
   

  	
   

  
	
  26

  	
  STAMP
  DUTIES

  
	
   

  	
   

  
	
   

  	
  The Borrowers shall pay
  any and all stamp, registration and similar taxes and charges of whatsoever
  nature, which may be payable or determined to be payable on, or in
  connection with, the execution, registration, notarisation, performance or
  enforcement of this Agreement or the other Finance Documents. The Borrowers
  shall indemnify the Creditor Parties against any and all liabilities with
  respect to or resulting from delay or omission on the part of the
  Borrowers to pay any such taxes.

  
	
   

  	
   

  
	
  27

  	
  VARIATIONS
  AND WAIVERS

  
	
   

  	
   

  
	
  27.1

  	
  Subject to Clause 27.2, a
  document shall be effective to vary, waive, suspend or limit any provision of
  a Finance Document, or any Creditor Party’s rights or remedies under such a

  

 

62

 

	
   

  	
  provision or the general
  law, only if the document is signed, or specifically agreed to by fax by the
  Borrowers, by the Security Trustee on behalf and with the consent of the
  Instructing Group, by the Agent and the Security Trustee in their own rights,
  and, if the document relates to a Finance Document to which a Security Party
  is party, by that Security Party. 

  
	
   

  	
   

  
	
  27.2

  	
  However, as regards the
  following, Clause 27.1 applies as if the words “by the Security Trustee on
  behalf and with the consent of the Instructing Group” were replaced by the
  words “by or on behalf and with the consent of every Bank”:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  a change in the definition
  of the Applicable Margin or in the definition of EURIBOR; 

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  a change to the date for,
  or the amount of, any payment of principal, interest, fees, or other sum
  payable under this Agreement; 

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  a change to any Bank’s
  Commitment; 

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  an extension of the
  Availability Period; 

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  a change to the definition
  of “Instructing Group” or “Finance Documents”;

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  a change of the Manager as
  manager of the Vessels or the terms and conditions of management of the
  Vessels;

  
	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  a change to the preamble
  or to Clauses 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 15, 17, 22 or 36;

  
	
   

  	
   

  	
   

  
	
   

  	
  (h)

  	
  a change to this Clause
  27;

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  any release of, or material
  variation to, an Encumbrance, guarantee, indemnity or subordination
  arrangement set out in a Finance Document; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (j)

  	
  any other change or matter
  as regards which this Agreement or another Finance Document expressly
  provides that each Bank’s consent is required.

  
	
   

  	
   

  	
   

  
	
  27.3

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

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  a provision of this
  Agreement or another Finance Document; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  an Event of Default; or

  

 

63

 

	
   

  	
  (c)

  	
  a breach by the Borrowers
  or either of them or any other Security Party of an obligation under a
  Finance Document or the general law; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

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

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
  28

  	
  PARTIAL
  INVALIDITY

  
	
   

  	
   

  
	
   

  	
  In the event that any term
  or condition of this Agreement is rendered or declared illegal, invalid or inoperative
  in whole or in part by any statute, rule or regulation or any
  decision of any court or tribunal of competent jurisdiction then such
  determination or declaration shall neither affect nor impair the validity of
  any other term or condition of this Agreement which (save as aforesaid) will
  remain in full force and effect nor the legality, validity or enforceability
  of such term or condition under the law of any other jurisdiction.

  
	
   

  	
   

  
	
  29

  	
  THE
  ARRANGER, THE AGENT, THE SECURITY TRUSTEE, THE L/C BANK AND THE BANKS

  
	
   

  	
   

  
	
  29.1

  	
  Each Bank and the L/C Bank
  irrevocably appoints: (i) the Arranger as arranger of the Facility and
  the L/C Facility, (ii) the Agent (acting on the instructions from time
  to time of an Instructing Group) shall act as its agent for the purposes of
  this Agreement and such of the other Finance Documents to which it may be
  appropriate for the Agent to be party and otherwise in connection with the
  administration of the Facility and the L/C Facility and all payments and
  repayments of the Indebtedness, and (iii) the Security Trustee as
  security trustee for the purposes of the Finance Documents and to receive,
  hold, administer and enforce the Finance Documents for the benefit of the
  Banks and the L/C Bank and each Bank and the L/C Bank authorises the
  Arranger, the Agent and the Security Trustee (whether or not by or through
  employees or agents) to take such action on such Bank’s or L/C Bank’s behalf
  and to exercise such rights, remedies, powers and discretions as are
  specifically delegated to them by this Agreement and the other Finance
  Documents, together with such powers and discretion’s as are reasonably
  incidental thereto. The Arranger, the Agent and the Security Trustee shall
  not however, have any duties, obligations or liabilities to the Banks or to
  the L/C Bank beyond those expressly stated in this Agreement and the other
  Finance Documents.

  
	
   

  	
   

  
	
  29.2

  	
  Each Servicing Bank shall:

  
	
   

  	
   

  
	
  29.2.1

  	
  promptly send to each of
  the other Creditor Parties details of each communication received by it from
  the Borrowers under this Agreement or any other Finance Document, except that
  details of any communication relating to a Bank or to the L/C Bank shall be
  sent only to that Bank or the L/C Bank as appropriate;

  

 

64

 

	
  29.2.2

  	
  (in the case of the
  Security Trustee) promptly send to each of the other Creditor Parties a copy
  of any legal opinion delivered under this Agreement or any other Finance
  Document and of any document or information received by it under Clause 16;

  
	
   

  	
   

  
	
  29.2.3

  	
  subject to the other
  provisions of this Clause 29, act in accordance with any instructions from
  the Instructing Group or, if so instructed by the Instructing Group, refrain
  from exercising a right, power or discretion vested in it under this Agreement
  or any other Finance Document; and

  
	
   

  	
   

  
	
  29.2.4

  	
  have only those duties,
  obligations and responsibilities, of an administrative nature, expressly
  specified in this Agreement and the other Finance Documents. 

  
	
   

  	
   

  
	
  29.3

  	
  Each Servicing Bank may:

  
	
   

  	
   

  
	
  29.3.1

  	
  perform any of its
  functions under this Agreement and the other Finance Documents by or through
  its personnel or agents; 

  
	
   

  	
   

  
	
  29.3.2

  	
  refrain from doing
  anything under this Agreement and the other Finance Documents until it has
  received instructions from the Instructing Group as to whether (and, if it is
  to be, the way in which) it is to be done and shall in all cases be fully
  protected when acting, or (if so instructed) refraining from acting, in
  accordance with instructions from the Instructing Group;

  
	
   

  	
   

  
	
  29.3.3

  	
  treat (a) each Bank
  as the person entitled to repayment of that part of the Facility of
  which it is a lender and has been advanced by it unless all or part of
  the relevant Banks’ Commitment has been transferred to another bank (or the
  Agent has received notice of assignment of all or part of it) in
  accordance with Clause 31 whereupon such other bank shall be entitled to
  repayment of its share in the Commitments advanced and (b) the office
  notified by each Bank to the Agent for this purpose before the signing of
  this Agreement (or, as the case may be, set out in the relevant Transfer
  Certificate) as its facility office unless the Agent has received from such
  Bank or such other bank a notice of change of facility office. Each Servicing
  Bank may act on any such certificate until it is superseded by a further
  transfer;

  
	
   

  	
   

  
	
  29.3.4

  	
  refrain from disclosing
  any document or information if such disclosure (and may refrain from
  doing anything which) would or might in its opinion be contrary to any law,
  be a breach of any duty of secrecy or confidentiality or otherwise render it
  liable to any person and may do anything which is in its opinion
  necessary to comply with any law;

  
	
   

  	
   

  
	
  29.3.5

  	
  assume that no Event of
  Default or Potential Event of Default has occurred unless an officer of the
  relevant Servicing Bank (as the case may be) acquires actual knowledge
  to the contrary; and

  
	
   

  	
   

  
	
  29.3.6

  	
  refrain from taking any
  step (or further step) to protect or enforce the rights of any person under
  this Agreement and the other Finance Documents until it has been indemnified
  (or received confirmation that it will be so indemnified) and/or secured to
  its satisfaction against any and all costs, losses, expenses or liabilities
  (including legal fees) which it would or might sustain or incur as a result.

  

 

65

 

	
  29.4

  	
  Each Servicing Bank may:

  
	
   

  	
   

  
	
  29.4.1

  	
  rely on any communication,
  certificate, legal opinion or other document believed by it to be genuine;

  
	
   

  	
   

  
	
  29.4.2

  	
  rely as to any matter of
  fact which might reasonably be expected to be within the knowledge of any
  person on a statement by or on behalf of that person;

  
	
   

  	
   

  
	
  29.4.3

  	
  obtain and pay for such
  legal or other expert advice or services as may to it seem necessary or
  desirable and rely on any such advice;

  
	
   

  	
   

  
	
  29.4.4

  	
  provide to any person
  engaged to provide expert advice or services in connection with this
  Agreement and the other Finance Documents, copies of all information in its
  possession or to which it is entitled under or in connection with this
  Agreement and the other Finance Documents; and 

  
	
   

  	
   

  
	
  29.4.5

  	
  retain for its own benefit
  and without liability to account any fee or other sum receivable by it for
  its own account.

  
	
   

  	
   

  
	
  29.5

  	
  The Arranger, the Agent
  and the Security Trustee each agrees and declares, and each of the Banks and
  the L/C Bank acknowledges, that, subject to the terms and conditions of this
  Clause, the Agent and the Security Trustee hold the Trust Property on trust
  for the Banks and the L/C Bank in accordance with their respective Proportionate
  Shares, absolutely. Each of the Banks and the L/C Bank agrees that the
  obligations, rights and benefits vested in the Agent and the Security Trustee
  shall be performed and exercised in accordance with this Clause. The Agent
  and the Security Trustee shall have the benefit of all of the provisions of
  this Agreement benefiting them in their capacity as agent and security
  trustee for the Banks and the L/C Bank, and all the powers and discretions
  conferred on trustees by the Trustee Act 1925 (to the extent not inconsistent
  with this Agreement). In addition:-

  
	
   

  	
   

  
	
  29.5.1

  	
  each of the Agent and the
  Security Trustee (and any attorney, agent or delegate of the Agent and/or the
  Security Trustee) may indemnify itself or himself out of the Trust
  Property against all liabilities, costs, fees, damages, charges, losses and
  expenses sustained or incurred by it or him in relation to the taking or
  holding of any of the Trust Property or in connection with the exercise or
  purported exercise of the rights, trusts, powers and discretions vested in
  the Agent and/or the Security Trustee or any other such person by or pursuant
  to the Security Documents or in respect of anything else done or omitted to
  be done in any way relating to the Security Documents; and

  
	
   

  	
   

  
	
  29.5.2

  	
  the Banks and the L/C Bank
  acknowledge that the Agent and/or the Security Trustee shall be under no
  obligation to insure any property nor to require any other person to insure
  any property and shall not be responsible for any loss which may be
  suffered by any person as a result of the lack or insufficiency of any
  Insurance; and

  

 

66

 

	
  29.6

  	
  The perpetuity period of
  the trusts constituted or evidenced by this Agreement shall remain in full
  force and effect until the earlier of the expiration of a period of eighty
  (80) years from the date of this Agreement and the expiration of the Security
  Period.

  
	
   

  	
   

  
	
  29.7

  	
  The Security Trustee and
  the other Servicing Banks may not, except to the extent expressly
  authorised by the other provisions of this Agreement or any Finance Document,
  agree amendments or modifications to any of the Finance Documents, without
  the prior written instructions of the Instructing Group or all the Banks as
  applicable.

  
	
   

  	
   

  
	
  29.8

  	
  With respect to any sums
  due to any Servicing Bank for its own account under this Agreement and/or the
  other Finance Documents, such Servicing Bank shall have the same rights and
  powers under this Agreement as the Banks and the L/C Bank and may exercise
  the same as though it were not performing the duties and functions delegated
  to it under this Agreement and the term “Bank”
  or “L/C Bank” shall, unless the context clearly otherwise
  indicates, include each Servicing Bank in its individual capacity.

  
	
   

  	
   

  
	
  29.9

  	
  No Servicing Bank shall:

  
	
   

  	
   

  
	
  29.9.1

  	
  (save if otherwise
  expressly provided herein) be obliged to request any certificate or opinion
  under this Agreement or any of the other Finance Documents unless so required
  in writing by the Instructing Group, in which case the relevant Servicing Bank
  shall promptly make the appropriate request or be obliged to make any enquiry
  as to any default in the performance or observance of any of the provisions
  of this Agreement or the other Finance Documents or as to the existence of an
  Event of Default unless such Servicing Bank has actual knowledge thereof or
  has been notified in writing thereof by any other Creditor Party, in which
  case such Servicing Bank shall promptly notify the other Creditor Parties of
  the relevant event or circumstance; or

  
	
   

  	
   

  
	
  29.9.2

  	
  be liable to any other
  Creditor Party for any action taken or omitted under or in connection with
  this Agreement and the other Finance Documents unless caused by its gross
  negligence or wilful misconduct.

  
	
   

  	
   

  
	
  29.10

  	
  Each Servicing Bank shall
  (subject to its being indemnified to its satisfaction) take such action or,
  as the case may be, refrain from taking such action with respect to any
  Event of Default of which it has actual knowledge, as the Instructing Group may reasonably
  direct.

  
	
   

  	
   

  
	
  29.11

  	
  Each Bank and the L/C Bank
  acknowledges that it has not relied on any statement, opinion, forecast or
  other representation made by any Servicing Bank to induce it to enter into
  this Agreement and/or the other Finance Documents and that it has made and
  will continue to make, without reliance on any Servicing Bank and based on
  such documents as it considers appropriate, its own appraisal of the
  creditworthiness of the Borrowers and its own independent investigation of
  the financial condition and affairs of the Borrowers in connection with the
  making and continuation of the Facility under this Agreement. No Servicing
  Bank shall have any duty or responsibility, either Initially or on a
  continuing basis, to provide the other Creditor Parties with any credit or
  other information with respect to the Borrowers.

  

 

67

 

	
  29.12

  	
  No Servicing Bank shall
  have any responsibility to any Bank or any other Creditor Party on account of
  the failure of the Borrowers to perform their obligations under this
  Agreement and/or the other Finance Documents or for the financial condition
  of the Borrowers or for the completeness or accuracy of any statements,
  representations or warranties in this Agreement and/or the other Finance
  Documents or any document delivered under this Agreement and/or the other
  Finance Documents or for the execution, effectiveness, adequacy, genuineness,
  validity, enforceability or admissibility in evidence of this Agreement
  and/or the other Finance Documents or of any certificate, report or other
  document executed or delivered under this Agreement and/or the Security
  Documents or otherwise in connection with the Facility or any part thereof
  made available pursuant to this Agreement or its negotiation or for acting
  (or, as the case may be, refraining from acting) in accordance with the
  instructions of the Instructing Group. Each Servicing Bank shall be entitled
  to rely on any communication, instrument or document believed by it to be
  genuine and correct and to have been signed or sent by the proper person and
  shall be entitled to rely as to legal or other professional matters on
  opinions and statements of any legal or other professional advisers.

  
	
   

  	
   

  
	
  29.13

  	
  Each Servicing Bank may,
  without any liability to account to the Banks or to the L/C Bank or to any
  other Creditor Party, accept deposits from, lend money to, and generally
  engage in any kind of banking or trust business with, the Borrowers or any
  Bank or the L/C Bank as if it were not a Servicing Bank.

  
	
   

  	
   

  
	
  29.14

  	
  Each Bank (to the extent
  not being reimbursed by the Borrowers) shall reimburse each Servicing Bank in
  the proportion borne by its commitment to the Total Commitments, for the
  charges and expenses incurred by such Servicing Bank in connection with the
  negotiation, preparation, syndication, execution and, where relevant,
  registration of this Agreement and the other Finance Documents and/or in
  contemplation of, or otherwise in connection with, the enforcement of, or the
  preservation of any rights under, or in carrying out its respective duties
  under, this Agreement and the other Finance Documents including (in each
  case) the fees and expenses of legal or other professional advisers. Each
  Bank (to the extent not being reimbursed by the Borrowers) shall indemnify
  each Servicing Bank in the proportion borne by its Commitment to the Total
  Commitments against all liabilities, damages, costs and claims whatsoever
  incurred by each Servicing Bank in connection with this Agreement and the
  other Finance Documents or any action taken or omitted by such Servicing Bank
  under this Agreement and the Security Documents, unless such liabilities,
  damages, costs or claims arise from such Servicing Bank’s own gross
  negligence or wilful misconduct.

  
	
   

  	
   

  
	
  29.15

  	
  Each Servicing Bank shall
  have full power to determine all questions and doubts arising in relation to
  the interpretation or application of any of the provisions of this Agreement
  or any of the Security Documents as it affects such Servicing Bank and every
  such determination (whether made upon a question actually raised or implied
  in the acts or proceedings of such Servicing Bank) shall be conclusive.

  
	
   

  	
   

  
	
  29.16

  	
  In its capacity as trustee
  in relation to the Finance Documents and in relation to the Trust Property,
  the Security Trustee -

  

 

68

 

	
  29.16.1

  	
  shall, without prejudice
  to any of the powers, discretions and immunities conferred upon trustees by
  law (and to the extent not inconsistent with the provisions of this Agreement
  or any of the other Finance Documents), have all the same powers and
  discretions as a natural person acting as the beneficial owner of such
  property and/or as are conferred upon the Security Trustee by this Agreement
  and/or any other Finance Document provided that the Security Trustee may only
  exercise such powers and discretions to the extent that the Security Trustee
  is authorised so to exercise the same in accordance with the provisions of
  this Agreement and/or any other Finance Document;

  
	
   

  	
   

  
	
  29.16.2

  	
  shall be entitled to
  invest moneys forming part of the Trust Property and which, in the
  opinion of the Security Trustee may not be paid out promptly following
  receipt in the name or under the control of the Security Trustee in any of
  the investments for the time being authorised by law for the investment by
  trustees of trust moneys or in any other property or investments whether
  similar to the aforesaid or not or by placing the same on deposit in the name
  or under the control of the Security Trustee as the Security Trustee may think
  fit without being under any duty to diversify its investments and the
  Security Trustee may at any time vary or transpose any such property or
  investments for or into any others of a like nature and shall not be
  responsible for any loss due to depreciation in value or otherwise of such
  property or investments (and on the basis that any investment of any part or
  all of the Trust Property may, at the discretion of the Security Trustee be
  made or retained in the names of nominees); and

  
	
   

  	
   

  
	
  29.16.3

  	
  may, in the conduct of its
  obligations under and in respect of the Finance Documents (otherwise than in
  relation to its right to make any declaration, determination or decision),
  instead of acting personally, employ and pay any agent (whether being a
  lawyer or any other person) to transact or concur in transacting any business
  and to do or concur in doing any acts required to be done by the Security
  Trustee (including the receipt and payment of money) on the basis that -

  
	
   

  	
   

  
	
  29.16.3.1

  	
  any such agent engaged in
  any profession or business shall be entitled to be paid all usual
  professional and other charges for business transacted and acts done by him
  or any partner or employee of his in connection with such trusts; and

  
	
   

  	
   

  
	
  29.16.3.2

  	
  the Security Trustee shall
  not be bound to supervise, or be responsible for any loss incurred by reason
  of any act or omission of any such agent if the Security Trustee shall have
  exercised reasonable care in the selection and instructions of such agent.

  
	
   

  	
   

  
	
  30

  	
  RETIREMENT
  OF THE SERVICING BANKS

  
	
   

  	
   

  
	
  30.1

  	
  Each Servicing Bank may and
  if requested by the Instructing Group shall (which the Instructing Group may only
  request if they have good cause to do so) retire from its appointment under
  this Agreement and the other Finance Documents at any time and by giving not
  less than 30 days prior written notice to that effect to each of the other
  parties hereto, provided that no such retirement shall be effective until a
  successor for such Servicing Bank is appointed in accordance with the
  following provisions of this Clause 30:

  

 

69

 

	
  30.1.1

  	
  If any Servicing Bank
  gives notice of its retiring pursuant to Clause 30.1, during the period of
  such notice:

  
	
   

  	
   

  
	
   

  	
  (a)

  	
  the retiring Servicing
  Bank may appoint as successor Servicing Bank a banking corporation or
  financial institution or related company owned by such retiring Servicing
  Bank by at least 50% or another Bank or a banking corporation or financial
  institution or related company owned by one of the Banks by at least 50%,
  without requiring for such appointment the prior written consent and/or
  consultation of the Instructing Group and/or the Borrowers, or such
  appointment not being applicable;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the Instructing Group may appoint
  as successor Servicing Bank any of the Banks, or failing such appointment;

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the retiring Servicing
  Bank may appoint as successor Servicing Bank any reputable and
  experienced bank or financial institution or related company approved by the
  Instructing Group; or

  
	
   

  	
   

  	
   

  
	
  30.1.2

  	
  if during the period of
  such notice no successor is so appointed pursuant to sub-clauses 30.1.1(a), (b) and
  (c), the retiring Servicing Bank may appoint a successor Servicing Bank
  itself any reputable and experienced bank or financial institution nominated
  by such retiring Servicing Bank;

  
	
   

  	
   

  
	
   

  	
  and either the provisions
  of Clause 30.1.1 or 30.1.2 have been complied with.

  
	
   

  	
   

  
	
  30.2

  	
  Upon any such successor as
  aforesaid being appointed, the retiring Servicing Bank shall be discharged
  from any further obligation under this Agreement and the other Finance
  Documents and its successor and each of the other parties to this Agreement
  and/or the other Finance Documents shall have the same rights and obligations
  among themselves as they would have had if such successor had been a party to
  this Agreement and/or the other Finance Documents in place of the retiring
  Servicing Bank and the parties to this Agreement and/or the other Finance
  Documents and the successor agent, successor paying agent and the security
  trustee shall, prior to such retirement, execute such amendments to this
  Agreement and/or the other Finance Documents as may be necessary as a
  result of such substitution.

  
	
   

  	
   

  
	
  31

  	
  ASSIGNMENTS
  AND TRANSFERS

  
	
   

  	
   

  
	
  31.1

  	
  This Agreement shall be
  binding upon and endure to the benefit of each party hereto and its
  successors and permitted assigns and transferees.

  
	
   

  	
   

  
	
  31.2

  	
  No Borrower (in any of its
  capacities) shall be entitled to assign or transfer all or any of its rights,
  benefits and obligations hereunder or under the Subject Documents.

  
	
   

  	
   

  
	
  31.3

  	
  Any Bank may at any
  time assign to any one or more banks or other financial institutions all or
  any part of such Bank’s rights and benefits hereunder or transfer in
  accordance with Clause 31.5 all or any part of such Bank’s rights,
  benefits and obligations to any bank or financial institution.

  

 

70

 

	
  31.4

  	
  If any Bank assigns all or
  any of its rights and benefits hereunder in accordance with Clause 31.3,
  then, unless and until the, relevant Bank, as transferor, the transferee and
  the Borrowers have duly completed and duly executed a Transfer Certificate in
  accordance with Clause 31.5, the other parties hereto shall not be obliged to
  recognise such assignee as having the rights against each of them which it
  would have had if it had been a party hereto.

  
	
   

  	
   

  
	
  31.5

  	
  Subject to the provisions
  of Clauses 31.6, 31.7, 31.8 and 31.9, if any Bank wishes to transfer all or
  any part of its Commitment as contemplated in Clause 31.3, then such
  transfer may be effected by the delivery to the Agent of a duly
  completed and duly executed Transfer Certificate and upon the later of the
  date of receipt by the Agent of such Transfer Certificate and the date of
  transfer specified therein:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  to the extent that the
  Bank in question seeks to transfer its rights and/or obligations, the
  Borrowers (on the one hand) and the Bank in question (on the other) shall be
  released from all further obligations towards the other;

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the Borrowers (on the one
  hand) and the Transferee (on the other) shall assume obligations towards the
  other identical to those released pursuant to Clause 31.5(a);

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  the Commitment of such
  Bank party to such Transfer Certificate shall be reduced by the amount
  expressed in such Transfer Certificate to be transferred to the Transferee;

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  the Transferee party to
  such Transfer Certificate shall become a party to this Agreement as a Bank
  entitled to the rights and liable to observe the obligations of a Bank with a
  Commitment equal to the amount expressed in such Transfer Certificate to be
  transferred to such Transferee; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  the other parties hereto
  shall acquire the same rights and benefits (including but not limited to
  rights in the trust declared by the Security Trustee in Clause 29) and assume
  the same obligations between themselves vis-à-vis the Transferee as they
  would have acquired and assumed had such Transferee been an original party
  hereto as the Bank with a Commitment equal to the amount expressed in such
  Transfer Certificate to be transferred to the Transferee.

  
	
   

  	
   

  	
   

  
	
  31.6

  	
  Each of the parties hereto
  confirms that (a) the delivery to a Transferee of a Transfer Certificate
  signed by a Bank constitutes an irrevocable offer by each of the parties
  hereto to accept such Transferee (subject to the conditions set out herein)
  as a Bank party hereto with the rights and obligations so expressed to be
  transferred and (b) such offer may be accepted by such Transferee
  by the execution of such Transfer Certificate by such Transferee and (c) the
  provisions of this Agreement shall apply to the contract between the parties
  thereto arising as a result of the acceptance of such offer.

  
	
   

  	
   

  
	
  31.7

  	
  The Transferee and all
  other relevant parties undertake to execute all further documents, at the
  expense of the Transferee, to give effect and validity to the required
  transfer of all interests in the Trust Property and Security Documents in
  consequence of the Transfer Certificate.

  

 

71

 

	
  31.8

  	
  On the date on which a
  transfer takes effect pursuant to this Clause 31 the Transferee in respect of
  such transfer shall pay to the Agent for its own account a fee of US$1,000.

  
	
   

  	
   

  
	
  31.9

  	
  The Agent shall not be
  obliged to accept any Transfer Certificate received by it hereunder and no
  such Transfer Certificate may take effect on any day on or after the
  receipt by the Agent of the Notice of Drawdown and prior to the Drawdown
  Date.

  
	
   

  	
   

  
	
  31.10

  	
  The Borrowers, the
  Arranger, the Agent, the Security Trustee, each Bank and the L/C Bank irrevocably
  authorises the Agent to sign Transfer Certificates on its behalf.

  
	
   

  	
   

  
	
  31.11

  	
  The Agent shall promptly
  notify the other Creditor Parties of the receipt by it of any Transfer
  Certificate, identifying in such notice the parties thereto in their respective
  capacities and the portion of the Commitment transferred (as specified in
  such Transfer Certificate).

  
	
   

  	
   

  
	
  31.12

  	
  The Agent shall be fully
  entitled to rely on any Transfer Certificate delivered to it in accordance
  with the foregoing provisions which is complete and regular on its face as
  regards its contents and purportedly signed on behalf of the Bank and the
  Transferee and shall have no liability or responsibility to any party as a
  consequence of placing reliance upon and acting in accordance with any such
  Transfer Certificate.

  
	
   

  	
   

  
	
  31.13

  	
  Any Bank may provide
  or disclose to any actual or potential Transferee or assignee or to any
  person who may otherwise enter into contractual relations with such Bank
  in relation to this Agreement, a copy of this Agreement, copies of all
  information provided by the Borrowers pursuant to each Subject Document to
  which it is party, details of drawings made by the Borrowers thereunder,
  information regarding the performance of the Borrowers of their obligations
  thereunder.

  
	
   

  	
   

  
	
  31.14

  	
  A Bank may change its
  lending office by giving notice to the Agent and the change shall become
  effective on the later of:

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  on the date of which the
  Agent receives a notice; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  the date, if any,
  specified in the notice as the date on which the change shall come into
  effect.

  
	
   

  	
   

  
	
  31.15

  	
  On receiving such a
  notice, the Agent shall notify the Borrowers and the other Creditor Parties
  and until the Agent receives such a notice, it shall be entitled to assume
  that a Bank is acting through its lending office of which the Agent last had
  notice.

  
	
   

  	
   

  
	
  32

  	
  LANGUAGE

  
	
   

  	
   

  
	
  32.1

  	
  Each document, instrument,
  certificate or statement referred to herein or to be delivered hereunder by
  the Borrowers shall, if not in the English language, be accompanied by an
  English translation thereof certified by the Borrowers, which translation
  shall prevail in the case of conflict with the non-English version.

  

 

72

 

	
  33

  	
  NON-IMMUNITY

  
	
   

  	
   

  
	
  33.1

  	
  The Borrowers do not have
  any right of immunity from set-off, suit or execution, attachment or other
  legal process under the laws of England or any other jurisdiction.

  
	
   

  	
   

  
	
  33.2

  	
  The exercise by the
  Borrowers of their rights and performance and discharge of their duties and
  liabilities hereunder will constitute commercial acts done and performed for
  private and commercial purposes.

  
	
   

  	
   

  
	
  33.3

  	
  To the extent that the
  Borrowers may in any jurisdiction, in which proceedings may at any
  time be taken for the enforcement of this Agreement and/or any of the other
  Finance Documents, claim for themselves or their assets immunity from suit,
  judgment, execution, attachment (whether in aid of execution, before judgment
  or otherwise) or other legal process, and to the extent that in any such
  jurisdiction there may be attributed to itself or its assets any such
  immunity (whether or not claimed), the Borrowers hereby irrevocably agree not
  to claim and hereby irrevocably waive any such immunity to the full extent
  permitted by the laws of such jurisdiction.

  
	
   

  	
   

  
	
  34

  	
  NOTICES

  
	
   

  	
   

  
	
  34.1

  	
  Unless otherwise
  specifically provided, any notice under or in connection with any Finance
  Document shall be given by letter or fax; and references in the Finance
  Documents to written notices, notices in writing and notices signed by particular
  persons shall be construed accordingly.

  
	
   

  	
   

  
	
  34.2

  	
  A notice shall be sent:

  
	
   

  	
   

  
	
   

  	
   (a)

  	
  to the Borrowers:

  	
   

  	
  c/o AEGEAN BUNKERING
  SERVICES INC.

  
	
   

  	
   

  	
   

  	
   

  	
  42, Hadjikyriakou Street

  Piraeus 185 38, Greece
Fax No: + (30 210) 458 6242

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   (b)

  	
  to a Bank:

  	
   

  	
  At the address below its
  name in Schedule 1 or (as the case may require) in the relevant
  Transfer Certificate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   (c)

  	
  to the Arranger, the Agent
  and the Security Trustee:

  	
   

  	
  

  AEGEAN BALTIC BANK S.A.

  28 Diligianni Street
145 62 Kifissia
Greece
Fax No: + (30 210) 623 4192/3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   (d)

  	
  to the L/C Bank:

  	
   

  	
  HSH NORDBANK AG

  Gerhart-Hauptmann-Platz 50
20095 Hamburg

  

 

73

 

	
   

  	
   

  	
   

  	
   

  	
  Germany

  Fax Nr: 004940 333334118

  

 

	
   

  	
  or to such other address
  as the relevant party may notify the Servicing Banks or, if the relevant
  party is a Creditor Party or a Servicing Bank, the L/C Bank, the Borrowers,
  the other Creditor Parties and the Security Parties.

  
	
   

  	
   

  
	
  34.3

  	
  Subject to Clauses 34.4
  and 34.5:

  
	
   

  	
   

  
	
  34.3.1

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

  
	
   

  	
   

  
	
  34.3.2

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

  
	
   

  	
   

  
	
  34.4

  	
  However, if under Clause
  34.3 a notice would be deemed to be served:

  
	
   

  	
   

  
	
  34.4.1

  	
  on a day which is not a
  Business Day in the place of receipt; or

  
	
   

  	
   

  
	
  34.4.2

  	
  on such a Business Day,
  but after 5 p.m. local time;

  
	
   

  	
   

  
	
   

  	
  the notice shall (subject
  to Clause 34.5) be deemed to be served, and shall take effect, at 9 a.m.
  on the next day which is such a Business Day.

  
	
   

  	
   

  
	
  34.5

  	
  Clauses 34.3 and 34.4 do
  not apply if the recipient of a notice notifies the sender within one hour
  after the time at which the notice would otherwise be deemed to be served
  that the notice has been received in a form, which is illegible in a material
  respect.

  
	
   

  	
   

  
	
  34.6

  	
  A notice under or in
  connection with a Finance Document shall not be invalid by reason that the
  manner of serving it does not comply with the requirements of this Agreement
  or, where appropriate, any other Finance Document under which it is served if
  the failure to serve it in accordance with the requirements of this Agreement
  or other Finance Document, as the case may be, has not caused any party
  to suffer any significant loss or prejudice.

  
	
   

  	
   

  
	
  34.7

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

  
	
   

  	
   

  
	
  34.8

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

  
	
   

  	
   

  
	
  35

  	
  SUPPLEMENTAL

  
	
   

  	
   

  
	
  35.1

  	
  The rights and remedies
  which the Finance Documents give to each Creditor Party are:

  
	
   

  	
   

  
	
  35.1.1

  	
  cumulative;

  
	
   

  	
   

  
	
  35.1.2

  	
  may be exercised as
  often as appears expedient; and

  

 

74

 

	
  35.1.3

  	
  shall not, unless a
  Finance Document explicitly and specifically states so, be taken to exclude
  or limit any right or remedy conferred by any law.

  
	
   

  	
   

  
	
  35.2

  	
  If any provision of a
  Finance Document is or subsequently becomes void, unenforceable or illegal,
  that shall not affect the validity, enforceability or legality of the other
  provisions of that Finance Document or of the provisions of any other Finance
  Document.

  
	
   

  	
   

  
	
  35.3

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

  
	
   

  	
   

  
	
  35.4

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

  
	
   

  	
   

  
	
  36

  	
  LAW AND
  JURISDICTION

  
	
   

  	
   

  
	
  36.1

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

  
	
   

  	
   

  
	
  36.2

  	
  Subject to Clause 36.3,
  the courts of England shall have exclusive jurisdiction to settle any
  disputes, which may arise out of or in connection with this Agreement.

  
	
   

  	
   

  
	
  36.3

  	
  Clause 36.2 is for the
  exclusive benefit of the Creditor Parties, each of which reserves the right:

  
	
   

  	
   

  
	
  36.3.1

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

  
	
   

  	
   

  
	
  36.3.2

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
  36.4

  	
  Each of the Borrowers
  irrevocably appoints Messrs. RICHES CONSULTING, presently at Old
  Jarretts Farm House, Brantbridge Lane, Balcombe, West Sussex, RH176JR,
  England to act as its agent to receive and accept on its behalf any process
  or other document relating to any proceedings in the English courts which are
  connected with this Agreement.

  
	
   

  	
   

  
	
  36.5

  	
  Each of the Borrowers
  irrevocably designates and appoints Mr. SPYRIDON FOKAS, an
  attorney-at-law with offices at 53, Filonos Street, Piraeus, Greece, as agent
  for the service of process in Greece (“antiklitos”)
  and agrees to consider any legal process or any demand or notice made served
  on behalf of the Creditor Parties and/or the Security Trustee on the said
  agent as being made to the Borrowers. The designation of such an authorized
  agent (“antiklitos”) shall
  remain irrevocable until all Indebtedness shall have been paid in full in
  accordance with the terms of this Agreement and the other Finance Documents.

  

 

75

 

	
  36.6

  	
  Each of the Borrowers
  irrevocably waives any objection which it may now or in the future have
  to the laying of the venue of any proceedings in any court referred to in
  this Clause, and any claim that those proceedings have been brought in an
  inconvenient or inappropriate forum, and irrevocably agrees that a judgment
  in any proceedings commenced in any such court shall be conclusive and
  binding on it and may be enforced in the courts of any other
  jurisdiction.

  
	
   

  	
   

  
	
  36.7

  	
  Nothing in this Clause 36
  shall exclude or limit any right which any Creditor Party may have
  (whether under the law of any country, an international convention or
  otherwise) with regard to the bringing of proceedings, the service of
  process, the recognition or enforcement of a judgment or any similar or
  related matter in any jurisdiction.

  
	
   

  	
   

  
	
  36.8

  	
  In this Clause 36, “proceedings”
  means proceedings of any kind, including an application for a provisional or
  protective measure or enforcement court order (diatagi pliromis).

  
	
   

  	
   

  
	
  37

  	
  THIS
  AGREEMENT AND THE OTHER FINANCE DOCUMENTS

  
	
   

  	
   

  
	
   

  	
  In case of any conflict
  between the provisions of this Agreement and any of the other Finance
  Documents the provisions of this Agreement shall prevail.

  
	
   

  	
   

  

 

AS WITNESS the hands of the duly authorised
representatives of the parties hereto the day and year first before written.

 

THE
BORROWERS

 

 

	
  Signed by

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  SPYRIDON FOKAS

  	
  )

  	
   

  
	
  the duly authorised
  attorney-in-fact

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  
	
  OCEAN
  DYNAMIC CORP.

  	
  )

  	
  /s/ SPYRIDON FOKAS

  	
   

  
	
  pursuant to a power

  	
  )

  	
   

  
	
  of attorney dated: 12th
  October 2005

  	
  )

  	
   

  
	
  in the presence of -

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  Attorney-at-law

  	
   

  	
   

  
	
  15, Filikis Eterias Square

  	
   

  	
   

  
	
  106-73, Athens - Greece

  	
   

  	
   

  
	
  Tel.: +30 210 7206.900

  	
   

  	
   

  
	
  Fax: +30 210 7231.462

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed by

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  SPYRIDON FOKAS

  	
  )

  	
   

  
	
  the duly authorised
  attorney-in-fact

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  
	
  SEA
  GLOBAL S.A.

  	
  )

  	
  /s/ SPYRIDON FOKAS

  	
   

  
	
  pursuant to a power

  	
  ) 

  	
   

  
	
  of attorney dated: 12th
  October 2005

  	
  )

  	
   

  
	
  in the presence of -

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  Attorney-at-law

  	
   

  	
   

  
	
  15, Filikis Eterias Square

  	
   

  	
   

  
	
  106-73, Athens - Greece

  	
   

  	
   

  
	
  Tel.: +30 210 7206.900

  	
   

  	
   

  
	
  Fax: +30 210 7231.462

  	
   

  	
   

  

 

76

 

THE BANKS

 

 

	
  Signed by

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  IOANNIS PAPAPETROS

  	
  )

  	
   

  
	
  the duly authorised
  attorney-in-fact

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  
	
  HSH
  NORDBANK AG

  	
  )

  	
  /s/ IOANNIS PAPAPETROS

  	
   

  
	
  in its capacity as Bank

  	
  )

  	
   

  
	
  pursuant to a power

  	
  )

  	
   

  
	
  of attorney dated: 6th
  October 2005

  	
  )

  	
   

  
	
  In the presence of -

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  Attorney-at-law

  	
   

  	
   

  
	
  15, Filikis Eterias Square

  	
   

  	
   

  
	
  106-73, Athens - Greece

  	
   

  	
   

  
	
  Tel.: +30 210 7206.900

  	
   

  	
   

  
	
  Fax: +30 210 7231.462

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed by

  	
  )

  	
   

  
	
  PHILIPPOS TSAMANIS

  	
  )

  	
   

  
	
  MARIA AGATIANOU

  	
  )

  	
   

  
	
  the duly authorised
  attorney-in-fact

  	
  )

  	
  /s/ PHILIPPOS TSAMANIS

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  
	
  AEGEAN
  BALTIC BANK S.A.

  	
  )

  	
   

  
	
  in its capacity as Bank

  	
  )

  	
   

  
	
  pursuant to a power

  	
  )

  	
   

  
	
  of attorney dated: 13th
  October 2005

  	
  )

  	
  /s/ MARIA AGATIANOU

  	
   

  
	
  in the presence of

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  Attorney-at-law

  	
   

  	
   

  
	
  15, Filikis Eterias Square

  	
   

  	
   

  
	
  106-73, Athens - Greece

  	
   

  	
   

  
	
  Tel.: +30 210 7206.900

  	
   

  	
   

  
	
  Fax: +30 210 7231.462

  	
   

  	
   

  
	
   

  	
   

  	
   

  

THE L/C
BANK

 

 

	
  Signed by

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  IOANNIS PAPAPETROS

  	
  )

  	
   

  
	
  the duly authorised
  attorney-in-fact

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
   

  
	
  HSH
  NORDBANK AG

  	
  )

  	
  /s/ IOANNIS PAPAPETROS

  	
   

  
	
  in its capacity as the L/G
  Bank

  	
  )

  	
   

  
	
  pursuant to a power

  	
  )

  	
   

  
	
  of attorney dated: 6th
  October 2005

  	
  )

  	
   

  
	
  in the presence of -

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  Attorney-at-law

  	
   

  	
   

  
	
  15, Filikis Eterias Square

  	
   

  	
   

  
	
  106-73, Athens - Greece

  	
   

  	
   

  
	
  Tel.: +30 210 7206.900

  	
   

  	
   

  
	
  Fax: +30 210 7231.462

  	
   

  	
   

  

 

77

 

THE
ARRANGER, THE AGENT AND SECURITY TRUSTEE

 

	
  Signed by

  	
  )

  	
   

  
	
  PHILIPPOS TSAMANIS

  	
  )

  	
  /s/ PHILIPPOS TSAMANIS

  	
   

  
	
  MARIA AGATIANOU

  	
  )

  	
   

  
	
  the duly authorised
  attorney-in-fact

  	
  )

  	
    

  
	
  for and on behalf of

  	
  )

  	
   

  
	
  AEGEAN
  BALTIC BANK S.A.

  	
  )

  	
   

  
	
  in its capacity as the
  Arranger,

  	
  )

  	
   

  
	
  the Agent and Security
  Trustee

  	
  )

  	
   

  
	
  pursuant to a power

  	
  )

  	
   

  
	
  of attorney dated: 13th
  October 2005 

  	
  )

  	
  /s/ MARIA AGATIANOU

  	
   

  
	
  in the presence of -

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  KYRIAKOS SPOULLOS

  	
   

  	
   

  
	
  Attorney-at-law

  	
   

  	
   

  
	
  15, Filikis Eterias Square

  	
   

  	
   

  
	
  106-73, Athens - Greece

  	
   

  	
   

  
	
  Tel.: +30 210 7206.900

  	
   

  	
   

  
	
  Fax: +30 210 7231.462

  	
   

  	
   

  

 

78

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]