Document:

exv10w2

Date 15 April 2010

AYASHA TRADING CORPORATION

BETHUNE PROPERTIES S.A.

as joint and several Borrowers

— and —

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1

as Lenders

— and —

BANK OF SCOTLAND PLC

BTMU CAPITAL CORPORATION

as Lead Arrangers and Underwriters

— and —

BANK OF SCOTLAND PLC

as Swap Bank

— and —

BANK OF SCOTLAND PLC

as Agent

and as Security Trustee

 

FACILITY AGREEMENT

 

relating to

a pre-and post-delivery term loan facility of up to US$13,333,334 in respect

of two 80,000 dwt Kamsarmax Bulk Carriers under construction by

Cosco (Dalian) Shipyard Co., Ltd. with Hull No’s N213 and N216

Watson, Farley & Williams

London

 

 

INDEX

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	 
	 	 	 	 	 	 
	1
	 	INTERPRETATION	 	 	1	 
	 
	 	 	 	 	 	 
	2
	 	POSITION OF THE LENDERS AND SWAP BANK	 	 	17	 
	 
	 	 	 	 	 	 
	3
	 	LOAN FACILITY	 	 	18	 
	 
	 	 	 	 	 	 
	4
	 	DRAWDOWN OF LOAN	 	 	18	 
	 
	 	 	 	 	 	 
	5
	 	INTEREST	 	 	19	 
	 
	 	 	 	 	 	 
	6
	 	INTEREST PERIODS	 	 	21	 
	 
	 	 	 	 	 	 
	7
	 	DEFAULT INTEREST	 	 	21	 
	 
	 	 	 	 	 	 
	8
	 	REPAYMENT AND PREPAYMENT	 	 	22	 
	 
	 	 	 	 	 	 
	9
	 	CONDITIONS PRECEDENT	 	 	24	 
	 
	 	 	 	 	 	 
	10
	 	REPRESENTATIONS AND WARRANTIES	 	 	25	 
	 
	 	 	 	 	 	 
	11
	 	GENERAL UNDERTAKINGS	 	 	27	 
	 
	 	 	 	 	 	 
	12
	 	CORPORATE UNDERTAKINGS	 	 	31	 
	 
	 	 	 	 	 	 
	13
	 	INSURANCE	 	 	32	 
	 
	 	 	 	 	 	 
	14
	 	SHIP COVENANTS	 	 	37	 
	 
	 	 	 	 	 	 
	15
	 	SECURITY COVER	 	 	40	 
	 
	 	 	 	 	 	 
	16
	 	PAYMENTS AND CALCULATIONS	 	 	42	 
	 
	 	 	 	 	 	 
	17
	 	APPLICATION OF RECEIPTS	 	 	43	 
	 
	 	 	 	 	 	 
	18
	 	APPLICATION OF EARNINGS; SWAP PAYMENTS	 	 	44	 
	 
	 	 	 	 	 	 
	19
	 	EVENTS OF DEFAULT	 	 	45	 
	 
	 	 	 	 	 	 
	20
	 	FEES AND EXPENSES	 	 	50	 
	 
	 	 	 	 	 	 
	21
	 	INDEMNITIES	 	 	51	 
	 
	 	 	 	 	 	 
	22
	 	NO SET-OFF OR TAX DEDUCTION	 	 	53	 
	 
	 	 	 	 	 	 
	23
	 	ILLEGALITY, ETC	 	 	54	 
	 
	 	 	 	 	 	 
	24
	 	INCREASED COSTS	 	 	54	 
	 
	 	 	 	 	 	 
	25
	 	SET-OFF	 	 	56	 
	 
	 	 	 	 	 	 
	26
	 	TRANSFERS AND CHANGES IN LENDING OFFICES	 	 	57	 
	 
	 	 	 	 	 	 
	27
	 	CONFIDENTIALITY	 	 	60	 
	 
	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	 
	 	 	 	 	 	 
	28
	 	VARIATIONS AND WAIVERS	 	 	62	 
	 
	 	 	 	 	 	 
	29
	 	NOTICES	 	 	63	 
	 
	 	 	 	 	 	 
	30
	 	JOINT AND SEVERAL LIABILITY	 	 	65	 
	 
	 	 	 	 	 	 
	31
	 	SUPPLEMENTAL	 	 	66	 
	 
	 	 	 	 	 	 
	32
	 	LAW AND JURISDICTION	 	 	66	 
	 
	 	 	 	 	 	 
	SCHEDULE 1 LENDERS AND COMMITMENTS	 	 	68	 
	 
	 	 	 	 	 	 
	SCHEDULE 2 DRAWDOWN NOTICE	 	 	69	 
	 
	 	 	 	 	 	 
	SCHEDULE 3 CONDITION PRECEDENT AND SUBSEQUENT DOCUMENTS	 	 	70	 
	 
	 	 	 	 	 	 
	SCHEDULE 4 TRANSFER CERTIFICATE	 	 	75	 
	 
	 	 	 	 	 	 
	SCHEDULE 5 MANDATORY COST FORMULA	 	 	79	 
	 
	 	 	 	 	 	 
	SCHEDULE 6 FORM OF BORROWERS COMPLIANCE CERTIFICATE	 	 	81	 
	 
	 	 	 	 	 	 
	EXECUTION PAGES	 	 	83	 
	 
	 	 	 	 	 	 

 

 

THIS AGREEMENT is made on 15 April 2010

BETWEEN

	(1)	 	AYASHA TRADING CORPORATION and BETHUNE PROPERTIES S.A., each a corporation incorporated in
the Republic of Liberia whose registered office is at 80 Broad Street, Monrovia, Republic of
Liberia, as joint and several borrowers (together the “Borrowers”);
	 
	(2)	 	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders;
	 
	(3)	 	BANK OF SCOTLAND PLC, and BTMU CAPITAL CORPORATION, as Lead Arrangers and Underwriters;
	 
	(4)	 	BANK OF SCOTLAND PLC, as Swap Bank;
	 
	(5)	 	BANK OF SCOTLAND PLC, as Agent; and
	 
	(6)	 	BANK OF SCOTLAND PLC, as Security Trustee.

BACKGROUND

	(A)	 	The Lenders have agreed to make available to the Borrowers a pre-and post-delivery term loan
facility of US$13,333,334, in 2 Tranches, one Tranche in respect of each Ship and each Tranche
in an amount of US$6,666,667 in each case for the purpose of refinancing part of the
acquisition cost of the relevant Ship by the relevant Borrower.
	 
	(B)	 	The Borrowers have entered into certain derivative contracts with the Swap Bank to hedge
their interest rate exposure under this Agreement under the Master Agreement and may enter
into further such derivative contracts.
	 
	(C)	 	The Lenders and the Swap Bank have agreed to share in the security to be granted to the
Security Trustee pursuant to this Agreement.

IT IS AGREED as follows:

	1	 	INTERPRETATION
	 
	1.1	 	Definitions. Subject to Clause 1.5, in this Agreement (including the recitals to it):
	 
	 	 	“Advance” means the principal amount of each borrowing by the Borrowers under this
Agreement;
	 
	 	 	“Affected Lender” has the meaning given in Clause 5.7;
	 
	 	 	“Affiliate” means, for the purposes of Clause 27, in relation to any person, a subsidiary of
that person or a parent company of that person or any other subsidiary of that parent
company;
	 
	 	 	“Agency and Trust Deed” means the agency and trust deed dated the same date as this
Agreement and made between the same parties;
	 
	 	 	“Agent” means Bank of Scotland plc, acting as agent for the other Creditor Parties and
acting in such capacity through its offices at New Uberior House, 11 Earl Grey Street,
Edinburgh EH3 9BN, Scotland or any successor of it appointed under clause 5 of the Agency
and Trust Deed;

 

 

	 	 	“Agreed Form” means in relation to any document, that document in the form approved in
writing by the Agent acting on the instructions of all the Lenders or as otherwise approved
in accordance with any other approval procedure specified in any relevant provision of any
Finance Document;
	 
	 	 	“AMT Purchaser” has the meaning given to it in the Corporate Guarantee;
	 
	 	 	“Approved Flag” means, in relation to a Ship, the flag under which that Ship is or is to
be, following its delivery to the relevant Borrower, registered as approved from time to
time by the Agent with the authorisation of all the Lenders;
	 
	 	 	“Approved Manager” means, in relation to a Ship, such company which the Agent may, with the
authorisation of all of the Lenders, approve from time to time as the technical and/or
commercial manager of that Ship;
	 
	 	 	“Availability Period” means the period commencing on the date of this Agreement and ending
on 30 April 2010 (or such later date as the Agent may, with the authorisation of all the
Lenders, agree with the Borrowers) or if earlier, the date on which the Total Commitments
are fully borrowed, cancelled or terminated;
	 
	 	 	“Bond Agent” means Marfin Egnatia Bank S.A.;
	 
	 	 	“Bonds” means the $145,000,000 7 per cent. senior convertible notes issued by the Corporate
Guarantor and purchased by the Bond Agent and/or Focus Maritime Corp. as reduced to
$125,000,000 as a result of the conversion by Focus Maritime Corp. of $20,000,000 into
shares;
	 
	 	 	“Borrowers Compliance Certificate” means a compliance certificate as referred to in Clause
11.6(c) in substantially the form set out in Schedule 6;
	 
	 	 	“Business Day” means a day on which banks are open in London and New York City;
	 
	 	 	“Charter Assignment” means, in relation to a Ship, an assignment of any Permitted Charter
in respect of that Ship executed or to be executed by the Borrower which owns that Ship in
favour of the Security Trustee in the Agreed Form;
	 
	 	 	“Charterer” means:

	 	(a)	 	in relation to Ship 1, Nippon Yusen Kabushiki Kaisha of Japan; and
	 
	 	(b)	 	in relation to Ship 2, Gujarat NRE Coke Ltd. of India,

	 	 	or, in relation to either Ship, any other charterer of that Ship which is approved by the
Agent and with the authorisation of all the Lenders for the purposes of this definition
under a Permitted Charter;
	 
	 	 	“Commitment” means, in relation to a Lender, the amount set opposite its name in the first
column of Schedule 1, or, as the case may require, the amount specified in the relevant
Transfer Certificate, as that amount may be reduced, cancelled or terminated in accordance
with this Agreement (and “Total Commitments” means the aggregate of the Commitments of all
the Lenders);
	 
	 	 	“Confidential Information” means, for the purposes of Clause 27, all information relating
to either Borrower, any Security Party, the Group, the Finance Documents, the Master
Agreement or the Facility of which a Creditor Party becomes aware in its capacity as, or for
the purpose of becoming, a Creditor Party or which is received by a Creditor Party in
relation to, for the purpose of becoming a Creditor Party under, the Finance Documents from
either:

2

 

	 	(a)	 	any member of the Group or any of its advisers; or
	 
	 	(b)	 	another Creditor Party, if the information was obtained by that Creditor Party
directly or indirectly from any member of the Group or any of its advisers,

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

	 	(i)	 	is or becomes public information other than as a direct or
indirect result of any breach of that Creditor Party of Clause 27; or
	 
	 	(ii)	 	is identified in writing at the time of delivery as
non-confidential by any member of the Group or any of its advisers; or
	 
	 	(iii)	 	is known by that Creditor Party before the date the
information is disclosed to it in accordance with paragraphs (a) or (b) above
or is lawfully obtained by that Creditor Party after that date, from a source
which is, as far as that Creditor Party is aware, unconnected with the Group
and which, in either case, as far as that Creditor Party is aware, has not been
obtained in breach of, and is not otherwise subject to, any obligation of
confidentiality;

	 	 	“Confirmation” and “Early Termination Date”, in relation to any continuing Transaction,
have the meanings given in the Master Agreement;
	 
	 	 	“Contract Price” means, in relation to a Ship, the price payable for that Ship under the
Shipbuilding Contract for it (being $50,000,000 subject to adjustment as therein provided);
	 
	 	 	“Contractual Currency” has the meaning given in Clause 21.4;
	 
	 	 	“Contribution” means, in relation to a Lender, the part of the Loan which is owing to that
Lender;
	 
	 	 	“Coordination Deed” means the deed coordinating the security created pursuant to the
Finance Documents and the Senior Finance Documents made or to be made between the parties to
this Agreement and the parties to the Senior Finance Documents in the Agreed Form;
	 
	 	 	“Corporate Guarantee” means the guarantee of the liabilities of the Borrowers under this
Agreement, the other Finance Documents and the Master Agreement dated the same date as this
Agreement and made between the Corporate Guarantor and the Security Trustee in the Agreed
Form;
	 
	 	 	“Corporate Guarantor” means NewLead Holdings Ltd., a company incorporated in Bermuda whose
registered office is at Canon’s Court, 22 Victoria Street, Hamilton HM12 Bermuda;
	 
	 	 	“Creditor Party” means the Agent, the Security Trustee, the Swap Bank or any Lender,
whether as at the date of this Agreement or at any later time;
	 
	 	 	“Delivery Date” means, in relation to each Ship, the date on which that Ship is actually
delivered to the relevant Borrower under the Shipbuilding Contract for that Ship;
	 
	 	 	“Dollars” and “$” means the lawful currency for the time being of the United States of
America;

3

 

	 	 	“Drawdown Date” means, in relation to an Advance, the date requested by the Borrowers for
that Advance to be made, or (as the context requires) the date on which that Advance is
actually made;
	 
	 	 	“Drawdown Notice” means a notice in the form set out in Schedule 2 (or in any other form
which the Agent approves or reasonably requires);
	 
	 	 	“Earnings” means, in relation to a Ship, all moneys whatsoever which are now, or later
become, payable (actually or contingently) to the Borrower which owns that Ship or the
Security Trustee and which arise out of the use or operation of that Ship, including (but
not limited to):

	 	(a)	 	except to the extent that they fall within paragraph (b):

	 	(i)	 	all freight, hire and passage moneys;
	 
	 	(ii)	 	compensation payable to the Borrower which owns that Ship or
the Security Trustee in the event of requisition of that Ship for hire;
	 
	 	(iii)	 	remuneration for salvage and towage services;
	 
	 	(iv)	 	demurrage and detention moneys;
	 
	 	(v)	 	damages for breach (or payments for variation or termination)
of any charterparty or other contract for the employment of that Ship; and
	 
	 	(vi)	 	all moneys which are at any time payable under the Insurances
for that Ship in respect of loss of hire;

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

	 	 	“Earnings Account” means, in relation to a Borrower, an account in the name of that
Borrower opened or to be opened with the Agent designated “[name of Borrower] — Earnings
Account”, or any other account (with an office of the Agent or with a bank or financial
institution other than the Agent) which is designated by the Agent as the Earnings Account
for that Borrower for the purposes of this Agreement;
	 
	 	 	“Earnings Accounts Security Deed” means a deed creating security over the Earnings Accounts
executed or to be executed by the Borrowers in favour of the Security Trustee in the Agreed
Form;
	 
	 	 	“Environmental Claim” means:

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

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

4

 

	 	 	“Environmental Incident” means:

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

	 	 	“Environmental Law” means any law relating to pollution or protection of the environment,
to the carriage of Environmentally Sensitive Material or to actual or threatened releases of
Environmentally Sensitive Material;
	 
	 	 	“Environmentally Sensitive Material” means oil, oil products and any other substance
(including any chemical, gas or other hazardous or noxious substance) which is (or is
capable of being or becoming) polluting, toxic or hazardous;
	 
	 	 	“Equity Ratio” has the meaning given to it in the Corporate Guarantee;
	 
	 	 	“Event of Default” means any of the events or circumstances described in Clause 19.1;
	 
	 	 	“Facility” means the term loan facility of $13,333,334 which the Lenders will severally
make available to the Borrowers under this Agreement;
	 
	 	 	“Fair Market Value” means, in relation to a Ship, a valuation of that Ship determined in
accordance with Clause 15.3;
	 
	 	 	“Finance Documents” means:

	 	(a)	 	this Agreement;
	 
	 	(b)	 	the Agency and Trust Deed;
	 
	 	(c)	 	the Corporate Guarantee;
	 
	 	(d)	 	the Predelivery Security Assignments;
	 
	 	(e)	 	the Mortgages;
	 
	 	(f)	 	the General Assignments;
	 
	 	(g)	 	the Charter Assignments;
	 
	 	(h)	 	the Earnings Accounts Security Deed;
	 
	 	(i)	 	the Retention Accounts Security Deed;
	 
	 	(j)	 	the Shares Security Deeds;
	 
	 	(k)	 	the Co-ordination Deed; and

5

 

	 	(l)	 	any other document (whether creating a Security Interest or not) which is
executed at any time by either Borrower or any other person as security for, or to
establish any form of subordination or priorities arrangement in relation to, any
amount payable to any Creditor Party under this Agreement or any of the other documents
referred to in this definition including, but not limited to, any subordination
agreement or assignment as is referred to in Clause 11.4(c);

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

	 	(a)	 	for principal, interest or any other sum payable in respect of any moneys
borrowed or raised by the debtor;
	 
	 	(b)	 	under any loan stock, bond, note or other security issued by the debtor;
	 
	 	(c)	 	under any acceptance credit, guarantee or letter of credit facility or
dematerialised equivalent made available to the debtor;
	 
	 	(d)	 	under a financial lease, a deferred purchase consideration arrangement or any
other agreement having the commercial effect of a borrowing or raising of money by the
debtor;
	 
	 	(e)	 	under any foreign exchange transaction, any interest or currency swap or any
other kind of derivative transaction entered into by the debtor or, if the agreement
under which any such transaction is entered into requires netting of mutual
liabilities, the liability of the debtor for the net amount; or
	 
	 	(f)	 	under a guarantee, indemnity or similar obligation entered into by the debtor
in respect of a liability of another person which would fall within paragraphs (a) to
(e) if the references to the debtor referred to the other person;

	 	 	“GAAP” means generally accepted accounting principles in the United States of America;
	 
	 	 	“General Assignment” means, in relation to a Ship, an assignment of its Earnings, its
Insurances and any Requisition Compensation and an assignment of any Permitted Charter in
respect of that Ship (to the extent not already assigned under the relevant Charter
Assignment) executed or to be executed by the Borrower which owns that Ship in favour of the
Security Trustee in the Agreed Form;
	 
	 	 	“Group” means the Corporate Guarantor and its subsidiaries;
	 
	 	 	“IFRS” means international accounting standards within the meaning of the IAS Regulations
1606/2002 to the extent applicable to the relevant financial statements;
	 
	 	 	“Insurances” means, in relation to a Ship:

	 	(a)	 	all policies and contracts of insurance, including entries of that Ship in any
protection and indemnity or war risks association, which are effected in respect of
that Ship, its Earnings or otherwise in relation to that Ship; and
	 
	 	(b)	 	all rights and other assets relating to, or derived from, any of the foregoing,
including any rights to a return of a premium;

	 	 	“Interest Period” means a period determined in accordance with Clause 6;
	 
	 	 	“ISM Code” means the International Safety Management Code (including the guidelines on its
implementation) adopted by the International Maritime Organisation as the same

6

 

	 	 	may be amended or supplemented from time to time (and the terms “safety management system”,
“Safety Management Certificate” and “Document of Compliance” have the same meanings as are
given to them in the ISM Code);
	 
	 	 	“ISPS Code” means the International Ship and Port Facility Security Code as adopted by the
International Maritime Organisation as the same may be amended or supplemented from time to
time;
	 
	 	 	“ISSC” means a valid and current International Ship Security Certificate issued under the
ISPS Code;
	 
	 	 	“Lead Arranger” means each of Bank of Scotland plc acting in such capacity through its
office at New Uberior House, 11 Earl Grey Street, Edinburgh EH3 9BN, Scotland and BTMU
Capital Corporation acting in such capacity through its office at 111 Huntington Avenue,
Suite 400, Boston, MA 02199, USA;
	 
	 	 	“Lender” means a bank or financial institution listed in Schedule 1 and acting through its
branch indicated in Schedule 1 (or through another branch notified to the Agent under Clause
26.13) or its transferee, successor or assign;
	 
	 	 	“LIBOR” means, in relation to any period for which an interest rate is to be determined
under any provision of a Finance Document:

	 	(a)	 	the rate per annum equal to the offered quotation for deposits in Dollars for a
period equal to, or as near as possible equal to, that period which appears on REUTERS
BBA Page LIBOR 01 at or about 11.00 a.m. (London time) on the Quotation Date for that
period (and, for the purposes of this Agreement, “REUTERS BBA Page LIBOR 01” means the
display designated as “REUTERS BBA Page LIBOR 01” on the Reuters Service or such other
page as may replace Page 01 on that service for the purpose of displaying rates
comparable to that rate or on such other service as may be nominated by the British
Bankers’ Association as the information vendor for the purpose of displaying British
Bankers’ Association Interest Settlement Rates for Dollars); or
	 
	 	(b)	 	if no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum
determined by the 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 Reference Bank as the rate at which deposits in Dollars are offered to
that Reference Bank by leading banks in the London Interbank Market at that Reference
Bank’s request at or about 11.00 a.m. (London time) on the Quotation Date for that
period for a period equal to that period and for delivery on the first Business Day of
it;

	 	 	“Loan” means the principal amount of the Facility advanced and for the time being
outstanding under this Agreement;
	 
	 	 	“Major Casualty” means, in relation to a Ship, any casualty to the Ship in respect of which
the claim or the aggregate of the claims against all insurers, before adjustment for any
relevant franchise or deductible, exceeds $500,000 or the equivalent in any other currency;
	 
	 	 	“Majority Lenders” means:

	 	(a)	 	before an Advance has been made, Lenders whose Commitments total 66.66 per
cent. of the Total Commitments; and
	 
	 	(b)	 	after an Advance has been made, Lenders whose Contributions total 66.66 per
cent. of the Loan;

7

 

	 	 	“Mandatory Cost” means the percentage rate per annum calculated by the Agent in accordance
with Schedule 5;
	 
	 	 	“Margin” means, in relation to each Tranche in respect of each Interest Period applicable
to it:

	 	(a)	 	prior to the Delivery Date of the Ship to which that Tranche relates, 5.5 per
cent. per annum; and
	 
	 	(b)	 	on and after such date, if the Security Cover:

	 	(i)	 	is less than 115 per cent., the Margin for the next Interest
Period relating to that Tranche commencing after the relevant Security Cover
calculation date shall be 5.2 per cent. per annum;
	 
	 	(ii)	 	is equal to or greater than 115 per cent. but is less than 130
per cent, the Margin for the next Interest Period relating to that Tranche
commencing after the relevant Security Cover calculation date shall be 4.9 per
cent. per annum; or
	 
	 	(iii)	 	is equal to or greater than 130 per cent., the Margin for the
next Interest Period relating to that Tranche commencing after the relevant
Security Cover calculation date shall be 4.5 per cent. per annum;

	 	 	provided that at all times if a notice is served in relation to Clause 15.1(a), the
applicable Margin shall be 5.2 per cent. per annum for the next Interest Period commencing
after such notice is served and any subsequent Interest Period until the next Interest
Period commencing after the remedy of such breach.
	 
	 	 	“Master Agreement” means the master agreement (on the 1992 ISDA (Multicurrency -
Crossborder) form), dated the same date as this Agreement and made or to be made between the
Borrowers and the Swap Bank and includes all Permitted Transactions from time to time
entered into and all Confirmations relating to Permitted Transactions from time to time
exchanged under that master agreement;
	 
	 	 	“Mortgage” means, in relation to a Ship, a second preferred or (as the case may be)
priority statutory ship mortgage in respect of that Ship, together (if applicable) with deed
of covenants collateral thereto, made or to be made between the Borrower which owns that
Ship and the Security Trustee in the Agreed Form;
	 
	 	 	“Negotiation Period” has the meaning given in Clause 5.10;
	 
	 	 	“Notifying Lender” has the meaning given in Clause 23.1 or Clause 24.1 as the context
requires;
	 
	 	 	“Payment Currency” has the meaning given in Clause 21.4;
	 
	 	 	“Permitted Charter” means any Ship 1 Permitted Charter and any Ship 2 Permitted Charter;
	 
	 	 	“Permitted Security Interests” means:

	 	(a)	 	Security Interests created by the Finance Documents and the Senior Finance
Documents;
	 
	 	(b)	 	liens for unpaid master’s and crew’s wages in accordance with usual maritime
practice;

8

 

	 	(c)	 	liens for salvage;
	 
	 	(d)	 	liens arising by operation of law for not more than 2 months’ prepaid hire
under any charter in relation to a Ship not prohibited by this Agreement;
	 
	 	(e)	 	liens for master’s disbursements incurred in the ordinary course of trading and
any other lien arising by operation of law or otherwise in the ordinary course of the
operation, repair or maintenance of a Ship, provided such liens do not secure amounts
more than 30 days overdue (unless the overdue amount is being contested by the Borrower
which owns that Ship in good faith by appropriate steps) and subject, in the case of
liens for repair or maintenance, to Clause 14.12(g);
	 
	 	(f)	 	any Security Interest created in favour of a plaintiff or defendant in any
proceedings or arbitration as security for costs and expenses while a Borrower is
actively prosecuting or defending such proceedings or arbitration in good faith; and
	 
	 	(g)	 	Security Interests arising by operation of law in respect of taxes which are
not overdue for payment or in respect of taxes being contested in good faith by
appropriate steps and in respect of which appropriate reserves have been made;

	 	 	“Permitted Transaction” means a floating rate to fixed rate interest rate swap Transaction
which fulfils the following requirements:

	 	(a)	 	it is entered into by the Borrowers pursuant to the Master Agreement; and
	 
	 	(b)	 	its purpose is the hedging of the Borrowers’ exposure under this Agreement to
fluctuations in LIBOR arising from the funding of the Loan (or any part thereof) for a
period expiring no later than the final Repayment Date;

	 	 	“Pertinent Document” means:

	 	(a)	 	any Finance Document;
	 
	 	(b)	 	any policy or contract of insurance contemplated by or referred to in Clause 13
or any other provision of this Agreement or another Finance Document;
	 
	 	(c)	 	any other document contemplated by or referred to in any Finance Document; and
	 
	 	(d)	 	any document which has been or is at any time sent by or to a Servicing Bank in
contemplation of or in connection with any Finance Document or any policy, contract or
document falling within paragraphs (b) or (c);

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

	 	(a)	 	England and Wales;
	 
	 	(b)	 	the country under the laws of which the company is incorporated or formed;
	 
	 	(c)	 	a country in which the company has the centre of its main interests or in which
the company’s central management and control is or has recently been exercised;
	 
	 	(d)	 	a country in which the overall net income of the company is subject to
corporation tax, income tax or any similar tax;
	 
	 	(e)	 	a country in which assets of the company (other than securities issued by, or
loans to, related companies) having a substantial value are situated, in which the

9

 

	 	 	 	company maintains a branch or permanent place of business, or in which a Security
Interest created by the company must or should be registered in order to ensure its
validity or priority; and
	 
	 	(f)	 	a country the courts of which have jurisdiction to make a winding up,
administration or similar order in relation to the company, whether as a main or
territorial or ancillary proceedings, or which would have such jurisdiction if their
assistance were requested by the courts of a country referred to in paragraphs (b) or
(c);

	 	 	“Pertinent Matter” means:

	 	(a)	 	any transaction or matter contemplated by, arising out of, or in connection
with a Pertinent Document; or
	 
	 	(b)	 	any statement relating to a Pertinent Document or to a transaction or matter
falling within paragraph (a),

	 	 	and covers any such transaction, matter or statement, whether entered into, arising or made
at any time before the signing of this Agreement or on or at any time after that signing;
	 
	 	 	“Potential Event of Default” means an event or circumstance which, with the giving of any
notice, the lapse of time, a determination of the Majority Lenders and/or the satisfaction
of any other condition, would constitute an Event of Default;
	 
	 	 	“Predelivery Security Assignment” means, in relation to a Ship, the assignment of the
Shipbuilding Contract and each Refund Guarantee for that Ship executed or to be executed by
the relevant Borrower in favour of the Security Trustee in the Agreed Form;
	 
	 	 	“Quotation Date” means, in relation to any period for which an interest rate is to be
determined under any provision of a Finance Document, the day which is 2 Business Days
before the first date of that period, unless market practice differs in the London Interbank
Market for a currency, in which case the Quotation Date will be determined by the Agent in
accordance with market practice in the London Interbank Market (and if quotations would
normally be given by leading banks in the London Interbank Market on more than one day, the
Quotation Date will be the last of those days);
	 
	 	 	“Reference Banks” means, subject to Clause 26.15, the Agent and any 2 other prime
international banks from time to time selected by the Agent;
	 
	 	 	“Refund Guarantee” means, in the case of each Shipbuilding Contract, each irrevocable
guarantee in respect of the first, second, third and fourth instalments of the Contract
Price payable under that Shipbuilding Contract issued or to be issued by the Refund
Guarantor in favour of the relevant Borrower under that Shipbuilding Contract in the form
approved by the Agent;
	 
	 	 	“Refund Guarantee Amount” means, in relation to a Refund Guarantee, the maximum amount for
which that Refund Guarantee was issued less all reductions to it in accordance with its
terms;
	 
	 	 	“Refund Guarantor” means Bank of China, Liaoning Branch, a company incorporated in China
acting through its office at No. 9 Zhongshan Square, Dalian, China;
	 
	 	 	“Related Fund” means, for the purposes of Clause 27, in relation to a fund (the “first
fund”), a fund which is managed or advised by the same investment manager or investment
adviser as the first fund or, if it is managed by a different investment manager

10

 

	 	 	or investment adviser, a fund whose investment manager or investment adviser is an Affiliate
of the investment manager or investment adviser of the first fund;
	 
	 	 	“Relevant Person” means, for the purpose of Clause 19, each Borrower and each Security
Party;
	 
	 	 	“Repayment Date” means a date on which a repayment of the Loan is required to be made under
Clause 8;
	 
	 	 	“Representative” means, for the purposes of Clause 27, any delegate, agent, manager,
administrator, nominee, attorney, trustee or custodian;
	 
	 	 	“Requisition Compensation” includes all compensation or other moneys payable by reason of
any act or event such as is referred to in paragraph (b) of the definition of “Total Loss”;
	 
	 	 	“Retention Account” means, in relation to a Borrower, an account in the name of that
Borrower with the Agent designated “[name of Borrower] — Retention Account”, or any other
account (with an office of the Agent or with a bank or financial institution other than the
Agent) which is designated by the Agent as a Retention Account for that Borrower for the
purposes of this Agreement;
	 
	 	 	“Retention Amount” means each amount transferred to the Retention Accounts in accordance
with Clause 18.2 and in accordance with Clause 23.2 of the Senior Loan Agreement;
	 
	 	 	“Retention Accounts Security Deed” means a deed creating security in respect of the
Retention Accounts executed or to be executed by the Borrowers in favour of the Security
Trustee in the Agreed Form;
	 
	 	 	“Scheduled Delivery Date” means, in relation to each Ship, the date for delivery
(disregarding any extensions) specified in Article VII of the Shipbuilding Contract for that
Ship;
	 
	 	 	“Secured Liabilities” means all liabilities which the Borrowers, the Security Parties or
any of them have at the date of this Agreement or at any later time or times, under or in
connection with any Finance Document or the Master Agreement (including any Permitted
Transaction thereunder) or any judgment relating to any Finance Document or the Master
Agreement (including any Permitted Transaction thereunder) and for this purpose, there shall
be disregarded any total or partial discharge of these liabilities, or variation of their
terms, which is effected by, or in connection with, any bankruptcy, liquidation, arrangement
or other procedure under the insolvency laws of any country;
	 
	 	 	“Security Cover” means, as at the relevant calculation date, the ratio, expressed as a
percentage, of:

	 	(a)	 	if only 1 Ship has been delivered to the relevant Borrower under the relevant
Shipbuilding Contract, the Fair Market Value of that Ship plus the net realisable value
of any additional security previously provided in respect of the Loan under Clause 15
to the amount of the Tranche in respect of that Ship; or
	 
	 	(b)	 	if both Ships have been delivered to the Borrowers under the Shipbuilding
Contracts, the aggregate of the Fair Market Values of each Ship plus the net realisable
value of any additional security previously provided in respect of the Loan under
Clause 15,

	 	 	to the aggregate amount of the Loan and the Senior Loan;

11

 

	 	 	“Security Interest” means

	 	(a)	 	a mortgage, charge (whether fixed or floating) or pledge, any maritime or other
lien or any other security interest of any kind;
	 
	 	(b)	 	the security rights of a plaintiff under an action in rem; and
	 
	 	(c)	 	any arrangement entered into by a person (A) the effect of which is to place
another person (B) in a position which is similar, in economic terms, to the position
in which B would have been had he held a security interest over an asset of A; but this
paragraph (c) does not apply to a right of set off or combination of accounts conferred
by the standard terms of business of a bank or financial institution;

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

	 	(a)	 	all amounts which have become due for payment by any Borrower or any Security
Party under the Finance Documents and the Master Agreement have been paid;
	 
	 	(b)	 	no amount is owing or has accrued (without yet having become due for payment)
under any Finance Document or the Master Agreement;
	 
	 	(c)	 	neither any Borrower nor any Security Party has any future or contingent
liability under Clause 20, 21 or 22 or any other provision of this Agreement or another
Finance Document or the Master Agreement; and
	 
	 	(d)	 	the Agent, the Security Trustee, the Majority Lenders and the Swap Bank do not
consider that there is a significant risk that any payment or transaction under a
Finance Document or the Master Agreement would be set aside, or would have to be
reversed or adjusted, in any present or possible future bankruptcy of a Borrower or a
Security Party or in any present or possible future proceeding relating to a Finance
Document or the Master Agreement or any asset covered (or previously covered) by a
Security Interest created by a Finance Document;

	 	 	“Security Trustee” means Bank of Scotland plc, acting as trustee for the other Creditor
Parties and acting in such capacity through its offices at New Uberior House, 11 Earl Grey
Street, Edinburgh, EH3 9BN, Scotland or any successor of it appointed under clause 5 of the
Agency and Trust Deed;
	 
	 	 	“Seller” means Cosco (Dalian) Shipyard Co., Ltd., a company incorporated in China whose
registered office is at 80 Zhongyuan Road, Dalian, China;
	 
	 	 	“Senior Finance Documents” has the meaning given to the term “Finance Documents” in the
Senior Loan Agreement;
	 
	 	 	“Senior Loan” has the meaning given to the term “Loan” in the Senior Loan Agreement;
	 
	 	 	“Senior Loan Agreement” means the loan and guarantee facility agreement dated the same date
as this Agreement and made between (i) the Borrowers as joint and several borrowers, (ii)
the banks and financial institutions named in schedule 1 thereto as lenders

12

 

	 	 	and (iii) Bank of Scotland plc as issuing bank, swap bank, agent and security trustee
relating to a secured senior loan facility of $66,666,666 and guarantee facility of
$30,300,000;

	 	 	“Senior Permitted Transaction” has the meaning given to the term “Permitted Transaction”
in the Senior Loan Agreement;
	 
	 	 	“Senior Tranche” has the meaning given to the term “Tranche” in the Senior Loan Agreement;
	 
	 	 	“Servicing Bank” means the Agent or the Security Trustee;
	 
	 	 	“Shares Security Deed” means, in relation to each Borrower, a second priority Security
Interest over its share capital executed or to be executed by the Corporate Guarantor, as
shareholder, in favour of the Security Trustee in the Agreed Form;
	 
	 	 	“Ships” means, together, Ship 1 and Ship 2;
	 
	 	 	“Ship 1” means the 80,000 dwt Bulk Carrier with builder’s hull no. N213 which is the
subject of the relevant Shipbuilding Contract;
	 
	 	 	“Ship 1 Permitted Charter” means a time charter in respect of Ship 1 dated 20 February 2008
made between the Borrower which is, or is to be, the owner of that Ship and the relevant
Charterer and which is:

	 	(a)	 	for a period of 5 years (with 2 additional 1-year extension options);
	 
	 	(b)	 	at a minimum rate of hire of $28,710 per day net of all commissions (with
provision for the relevant Charterer’s right to reduce the hire rate in the case of
late delivery); and
	 
	 	(c)	 	with provision for the charterer’s right to cancel for delay in delivery not to
arise earlier than 1 day after the end of the Availability Period for Tranche 1,

	 	 	or such other time charter in respect of Ship 1 on such terms and conditions as may be
approved by the Agent and with the authorisation of all the Lenders for the purposes of this
definition;
	 
	 	 	“Ship 1 Tranche” means a portion of the Total Commitments in a single Advance of $6,666,667
which is to be used by the relevant Borrower to partially refinance the first and second
instalments of the Contract Price of Ship 1 paid under the relevant Shipbuilding Contract;
	 
	 	 	“Ship 2” means the 80,000 dwt Bulk Carrier with builder’s hull no. N216 which is the
subject of the relevant Shipbuilding Contract;
	 
	 	 	“Ship 2 Permitted Charter” means a time charter in respect of Ship 2 dated 29 January 2008
made between the Borrower which is, or is to be, the owner of that Ship and the relevant
Charterer which is:

	 	(a)	 	for a period of 82 months (with a 4-month extension options);
	 
	 	(b)	 	at a minimum rate of hire of $27,300 per day net of all commissions; and
	 
	 	(c)	 	with provision for the charterer’s right to cancel for delay in delivery not to
arise earlier than 1 day after the end of the Availability Period for Tranche 2,

13

 

	 	 	or such other time charter in respect of Ship 2 on such terms and conditions as may be
approved by the Agent and with the authorisation of all the Lenders for the purposes of this
definition;

	 	 	“Ship 2 Tranche” means a portion of the Total Commitments in a single Advance of $6,666,667
which is to be used by the relevant Borrower to partially refinance the first instalment of
the Contract Price of Ship 2 paid under the relevant Shipbuilding Contract;
	 
	 	 	“Shipbuilding Contract” means, in relation to each Ship, the shipbuilding contract dated as
of 6 December 2006, as supplemented and amended from time to time, entered into between the
Seller and the relevant Borrower pursuant to which that Borrower is to purchase that Ship
from the Seller;
	 
	 	 	“Surplus Earnings” means, for each 3 month period ending on a Repayment Date, the amount of
all Earnings of the Ships credited to the Earnings Accounts during that period less:

	 	(a)	 	monthly transfers of Retention Amounts transferred to the Retention Accounts
during that period;
	 
	 	(b)	 	operating expenses of the Ships reasonably and properly incurred (in the
reasonable opinion of the Agent) and paid during that period (including costs of
crewing, repairing, maintaining the Ships, provision for dry-docking and manager’s
remuneration previously approved by the Agent); and
	 
	 	(c)	 	general and administrative expenses of the Borrowers reasonably and properly
incurred (in the opinion of the Agent) and paid during that period;

	 	 	“Swap Bank” means Bank of Scotland plc, as the swap bank and acting in such capacity
through its offices at 33 Old Broad Street, London EC2N 1HZ, England (and includes its
successors);
	 
	 	 	“Total Loss” means, in relation to a Ship:

	 	(a)	 	actual, constructive, compromised, agreed or arranged total loss of that Ship;
	 
	 	(b)	 	any expropriation, confiscation, requisition or acquisition of that Ship,
whether for full consideration, a consideration less than its proper value, a nominal
consideration or without any consideration, which is effected by any government or
official authority or by any person or persons claiming to be or to represent a
government or official authority (excluding a requisition for hire for a fixed period
not exceeding 1 year without any right to an extension) unless it is within 1 month
days redelivered to the full control of the Borrower which owns that Ship; and
	 
	 	(c)	 	any arrest, capture, seizure or detention of that Ship (including any hijacking
or theft) unless it is within 1 month redelivered to the full control of the Borrower
which owns that Ship;

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

	 	(a)	 	in the case of an actual loss of that Ship, the date on which it occurred or,
if that is unknown, the date when that Ship was last heard of;
	 
	 	(b)	 	in the case of a constructive, compromised, agreed or arranged total loss of
that Ship, the earliest of:

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

14

 

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

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

	 	 	“Tranches” means, together, the Ship 1 Tranche and the Ship 2 Tranche;
	 
	 	 	“Transaction” has the meaning given in the Master Agreement;
	 
	 	 	“Transfer Certificate” has the meaning given in Clause 26.2;
	 
	 	 	“Trust Property” has the meaning given in clause 3.1 of the Agency and Trust Deed; and
	 
	 	 	“Underwriter” means each of Bank of Scotland plc acting in such capacity through its office
at New Uberior House, 11 Earl Grey Street, Edinburgh EH3 9BN, Scotland and BTMU Capital
Corporation acting in such capacity through its office at 111 Huntington Avenue, Suite 400,
Boston, MA 02199, USA.

	1.2	 	Construction of certain terms. In this Agreement:
	 
	 	 	“administration notice” means a notice appointing an administrator, a notice of intended
appointment and any other notice which is required by law (generally or in the case
concerned) to be filed with the court or given to a person prior to or in connection with,
the appointment of an administrator;
	 
	 	 	“approved” means, for the purposes of Clause 13, approved in writing by the Agent;
	 
	 	 	“asset” includes every kind of property, asset, interest or right, including any present,
future or contingent right to any revenues or other payment;
	 
	 	 	“company” includes any partnership, joint venture and unincorporated association;
	 
	 	 	“consent” includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration, notarisation and legalisation;
	 
	 	 	“contingent liability” means a liability which is not certain to arise and/or the amount of
which remains unascertained;
	 
	 	 	“document” includes a deed; also a letter or fax;
	 
	 	 	“excess risks” means, in relation to a Ship, the proportion of claims for general average,
salvage and salvage charges not recoverable under the hull and machinery policies in respect
of the Ship in consequence of its insured value being less than the value at which that Ship
is assessed for the purpose of such claims;
	 
	 	 	“expense” means any kind of cost, charge or expense (including all legal costs, charges and
expenses) and any applicable value added or other tax;
	 
	 	 	“law” includes any order or decree, any form of delegated legislation, any treaty or
international convention and any regulation or resolution of the Council of the European
Union, the European Commission, the United Nations or its Security Council;
	 
	 	 	“legal or administrative action” means any legal proceeding or arbitration and any
administrative or regulatory action or investigation;

15

 

	 	 	“liability” includes every kind of debt or liability (present or future, certain or
contingent), whether incurred as principal or surety or otherwise;
	 
	 	 	“months” shall be construed in accordance with Clause 1.3;
	 
	 	 	“obligatory insurances” means, in relation to a Ship, all insurances effected, or which the
Borrower owning the Ship is obliged to effect, under Clause 13 or any other provision of
this Agreement or another Finance Document;
	 
	 	 	“parent company” has the meaning given in Clause 1.4;
	 
	 	 	“person” includes any company; any state, political sub-division of a state and local or
municipal authority; and any international organisation;
	 
	 	 	“policy”, in relation to any insurance, includes a slip, cover note, certificate of entry
or other document evidencing the contract of insurance or its terms;
	 
	 	 	“protection and indemnity risks” means the usual risks covered by a protection and
indemnity association managed in London, including pollution risks and the proportion (if
any) of any sums payable to any other person or persons in case of collision which are not
recoverable under the hull and machinery policies by reason of the incorporation in them of
clause 6 of the International Hull Clauses (1/11/02 or 1/11/03) or clause 8 of the Institute
Time Clauses (Hulls) (1/11/1995) or clause 8 of the Institute Time Clauses (Hulls)(1/10/83)
or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision;
	 
	 	 	“regulation” includes any regulation, rule, official directive, request or guideline
whether or not having the force of law of any governmental, intergovernmental or
supranational body, agency, department or regulatory, self-regulatory or other authority or
organisation;
	 
	 	 	“subsidiary” has the meaning given in Clause 1.4;
	 
	 	 	“tax” includes any present or future tax, duty, impost, levy or charge of any kind which is
imposed by any state, any political sub-division of a state or any local or municipal
authority (including any such imposed in connection with exchange controls), and any
connected penalty, interest or fine; and
	 
	 	 	“war risks” includes the risk of mines and all risks excluded by clause 29 of the Institute
Time Clauses (Hulls) (1/11/02 or 1/11/03), clause 24 of the Institute Time Clauses (Hulls)
(1/11/1995) or clause 23 of the Institute Time Clauses (Hulls)(1/10/83).
	 
	1.3	 	Meaning of “month”. A period of 1 or more “months” ends on the day in the relevant calendar
month numerically corresponding to the day of the calendar month on which the period started
(“the numerically corresponding day”), but:
	 
	(a)	 	on the Business Day following the numerically corresponding day if the numerically
corresponding day is not a Business Day or, if there is no later Business Day in the same
calendar month, on the Business Day preceding the numerically corresponding day; or
	 
	(b)	 	on the last Business Day in the relevant calendar month, if the period started on the last
Business Day in a calendar month or if the last calendar month of the period has no
numerically corresponding day;
	 
	 	 	and “month” and “monthly” shall be construed accordingly.
	 
	1.4	 	Meaning of “subsidiary”. A company (S) is a subsidiary of another company (P) if:

16

 

	(a)	 	a majority of the issued shares in S (or a majority of the issued shares in S which carry
unlimited rights to capital and income distributions) are directly owned by P or are
indirectly attributable to P; or
	 
	(b)	 	P has direct or indirect control over a majority of the voting rights attaching to the issued
shares of S; or
	 
	(c)	 	P has the direct or indirect power to appoint or remove a majority of the directors of S; or
	 
	(d)	 	P otherwise has the direct or indirect power to ensure that the affairs of S are conducted in
accordance with the wishes of P;
	 
	 	 	and any company of which S is a subsidiary is a parent company of S.
	 
	1.5	 	General Interpretation. In this Agreement:
	 
	(a)	 	references to, or to a provision of, a Finance Document or any other document are references
to it as amended or supplemented, whether before the date of this Agreement or otherwise;
	 
	(b)	 	references to, or to a provision of, any law include any amendment, extension, re-enactment
or replacement, whether made before the date of this Agreement or otherwise;
	 
	(c)	 	words denoting the singular number shall include the plural and vice versa; and
	 
	(d)	 	Clauses 1.1 to 1.5 apply unless the contrary intention appears.
	 
	1.6	 	Headings. In interpreting a Finance Document or any provision of a Finance Document, all
clause, sub-clause and other headings in that and any other Finance Document shall be entirely
disregarded.
	 
	2	 	POSITION OF THE LENDERS AND SWAP BANK
	 
	2.1	 	Interests of Creditor Parties several. The rights of the Creditor Parties under this
Agreement are several.
	 
	2.2	 	Individual right of action. Each Lender and the Swap Bank shall be entitled to sue for any
amount which has become due and payable by the Borrowers to it under this Agreement or, in the
case of the Swap Bank, the Master Agreement without joining any other Creditor Party as
additional parties in the proceedings.
	 
	2.3	 	Proceedings requiring Majority Lender consent. Except as provided in Clause 2.2, neither a
Lender nor the Swap Bank may commence proceedings against any Borrower or any Security Party
in connection with a Finance Document or the Master Agreement without the prior consent of the
Majority Lenders.
	 
	2.4	 	Obligations several. The obligations of the Lenders and the Swap Bank under this Agreement
are several; and a failure of any one of them to perform its obligations under this Agreement
shall not result in:
	 
	(a)	 	the obligations of any of the others being increased; nor
	 
	(b)	 	any Borrower, any Security Party, any other Lender or the Swap Bank being discharged (in
whole or in part) from its obligations under any Finance Document or the Master Agreement;

17

 

	 	 	and in no circumstances shall a Creditor Party have any responsibility for a failure of
another Creditor Party to perform its obligations under this Agreement or the Master
Agreement.

	3	 	LOAN FACILITY
	 
	3.1	 	Availability of Facility. Subject to the other provisions of this Agreement, the Lenders
shall make the Facility available to the Borrowers in 2 Tranches, one Tranche in respect of
each Ship and each Tranche in an amount of $6,666,667.
	 
	3.2	 	Lenders’ participations in Advances. Subject to the other provisions of this Agreement, each
Lender shall participate in each Advance in the proportion which, as at the relevant Drawdown
Date, its Commitment bears to the Total Commitments.
	 
	3.3	 	Purpose of Advances. The Borrowers undertake with each Creditor Party to use each Advance
only for the purpose stated in Clause 4.2(a).
	 
	4	 	DRAWDOWN OF LOAN
	 
	4.1	 	Request for Advance. Subject to the following conditions, the Borrowers may request that an
Advance be made by ensuring that the Agent receives a completed Drawdown Notice not later than
11.00 a.m. (London time) 3 Business Days (or such shorter notice as the Agent may, with the
authorisation of all the Lenders, agree) prior to the intended Drawdown Date.
	 
	4.2	 	Availability. The conditions referred to in Clause 4.1 are that:
	 
	(a)	 	the Total Commitments shall be made available in 2 Tranches (each Tranche comprising 1
Advance), each of the amount and for the purposes stated in the definition of the relevant
Tranche;
	 
	(b)	 	each Drawdown Date has to be a Business Day during the relevant Availability Period;
	 
	(c)	 	neither Tranche shall exceed $6,666,667; and
	 
	(d)	 	the aggregate amount of the Advances shall not exceed the Total Commitments.
	 
	4.3	 	Notification to Lenders of receipt of a Drawdown Notice. The Agent shall promptly notify the
Lenders that it has received a Drawdown Notice and shall inform each Lender of:
	 
	(a)	 	the amount of the Advance and the Drawdown Date;
	 
	(b)	 	the amount of that Lender’s participation in the Advance; and
	 
	(c)	 	the duration of the first Interest Period.
	 
	4.4	 	Drawdown Notice irrevocable. A Drawdown Notice must be signed by a director or officer or
duly authorised signatory of a Borrower; and once served, a Drawdown Notice cannot be revoked
without the prior consent of the Agent, acting with the authorisation of the Majority Lenders.
	 
	4.5	 	Lenders to make available Contributions. Subject to the provisions of this Agreement, each
Lender shall, on and with value on each Drawdown Date, make available to the Agent the amount
due from that Lender on that Drawdown Date under Clause 3.2.
	 
	4.6	 	Disbursement of Advance. Subject to the provisions of this Agreement, the Agent shall on
each Drawdown Date remit in accordance with the Borrowers’ instructions as set out

18

 

	 	 	in the relevant Drawdown Notice) the amounts which the Agent receives from the Lenders under
Clause 4.5; and that remittance shall be made:
	 
	(a)	 	to the account which the Borrowers specify in the Drawdown Notice; and
	 
	(b)	 	in the like funds as the Agent received the payments from the Lenders,
	 
	 	 	provided that each Advance must immediately be applied in prepayment of the relevant
existing indebtedness.
	 
	4.7	 	Disbursement of Advance to third party. The payment by the Agent under Clause 4.6 to the
relevant Earnings Account shall constitute the making of the relevant Advance and the
Borrowers shall thereupon become indebted, as principal and direct obligors, to each Lender in
an amount equal to that Lender’s Contribution.
	 
	5	 	INTEREST
	 
	5.1	 	Payment of normal interest. Subject to the provisions of this Agreement, interest on each
Tranche in respect of each Interest Period applicable to it shall be paid by the Borrowers on
the last day of that Interest Period.
	 
	5.2	 	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest
on each Tranche in respect of an Interest Period applicable to it shall be the aggregate of
the Margin, LIBOR and the Mandatory Cost for that Interest Period.
	 
	5.3	 	Payment of accrued interest. In the case of an Interest Period longer than 3 months, accrued
interest shall be paid every 3 months during that Interest Period and on the last day of that
Interest Period.
	 
	5.4	 	Notification of Interest Periods and rates of normal interest. The Agent shall notify the
Borrowers and each Lender of:
	 
	(a)	 	each rate of interest; and
	 
	(b)	 	the duration of each Interest Period;
	 
	 	 	as soon as reasonably practicable after each is determined.
	 
	5.5	 	Obligation of Reference Banks to quote. A Reference Bank which is a Lender shall use all
reasonable efforts to supply any quotation required of it for the purposes of fixing a rate of
interest under this Agreement.
	 
	5.6	 	Absence of quotations by Reference Banks. If any Reference Bank fails to supply a quotation
required of it, the Agent shall determine the relevant LIBOR on the basis of the quotations
supplied by the other Reference Bank or Banks; but if 2 or more of the Reference Banks fail to
provide a quotation, the relevant rate of interest shall be set in accordance with the
following provisions of this Clause 5.
	 
	5.7	 	Market disruption. The following provisions of this Clause 5 apply if:
	 
	(a)	 	no rate is quoted on REUTERS BBA Page LIBOR 01 and 2 or more of the Reference Banks do not,
before 1.00 p.m. (London time) on the Quotation Date for an Interest Period, provide
quotations to the Agent in order to fix LIBOR; or
	 
	(b)	 	at least 1 Business Day before the start of an Interest Period, Lenders having Contributions
together amounting to more than 50 per cent. of the Loan (or, if an Advance has not been made,
Commitments amounting to more than 50 per cent. of the Total Commitments) notify the Agent
that LIBOR fixed by the Agent would not

19

 

	 	 	accurately reflect the cost to those Lenders of funding their respective Contributions (or
any part of them) during the Interest Period in the London Interbank Market at or about
11.00 a.m. (London time) on the Quotation Date for the Interest Period; or
	 
	(c)	 	at least 1 Business Day before the start of an Interest Period, the Agent is notified by a
Lender (the “Affected Lender”) that for any reason it is unable to obtain Dollars in the
London Interbank Market in order to fund its Contribution (or any part of it) during the
Interest Period.
	 
	5.8	 	Notification of market disruption. The Agent shall promptly notify the Borrowers and each of
the Lenders stating the circumstances falling within Clause 5.7 which have caused its notice
to be given.
	 
	5.9	 	Suspension of drawdown. If the Agent’s notice under Clause 5.8 is served before an Advance
is to be made:
	 
	(a)	 	in a case falling within Clauses 5.7(a) or 5.7(b), the Lenders’ obligations to make that
Advance;
	 
	(b)	 	in a case falling within Clause 5.7(c), the Affected Lender’s obligation to participate in
that Advance;
	 
	 	 	shall be suspended while the circumstances referred to in the Agent’s notice continue.
	 
	5.10	 	Negotiation of alternative rate of interest. If the Agent’s notice under Clause 5.8 is
served after an Advance is made, the Borrowers, the Agent and the Lenders or (as the case may
be) the Affected Lender shall use reasonable endeavours to agree, within the 30 days after the
date on which the Agent serves its notice under Clause 5.8 (the “Negotiation Period”), an
alternative interest rate or (as the case may be) an alternative basis for the Lenders or (as
the case may be) the Affected Lender to fund or continue to fund their or its Contribution
during the Interest Period concerned.
	 
	5.11	 	Application of agreed alternative rate of interest. Any alternative interest rate or an
alternative basis which is agreed during the Negotiation Period shall take effect in
accordance with the terms agreed.
	 
	5.12	 	Alternative rate of interest in absence of agreement. If an alternative interest rate or
alternative basis is not agreed within the Negotiation Period, and the relevant circumstances
are continuing at the end of the Negotiation Period, then the Agent shall, with the agreement
of each Lender or (as the case may be) the Affected Lender, set an interest period and
interest rate representing the cost of funding of the Lenders or (as the case may be) the
Affected Lender in Dollars or in any available currency of their or its Contribution plus the
Margin and any applicable Mandatory Cost; and the procedure provided for by this Clause 5.12
shall be repeated if the relevant circumstances are continuing at the end of the interest
period so set by the Agent.
	 
	5.13	 	Notice of prepayment. If the Borrowers do not agree with an interest rate set by the Agent
under Clause 5.12, the Borrowers may give the Agent not less than 15 Business Days’ notice of
their intention to prepay at the end of the interest period set by the Agent.
	 
	5.14	 	Prepayment; termination of Commitments. A notice under Clause 5.13 shall be irrevocable; the
Agent shall promptly notify the Lenders or (as the case may require) the Affected Lender of
the Borrowers’ notice of intended prepayment; and:
	 
	(a)	 	on the date on which the Agent serves that notice, the Total Commitments or (as the case may
require) the Commitment of the Affected Lender shall be cancelled; and

20

 

	(b)	 	on the last Business Day of the interest period set by the Agent, the Borrowers shall
prepay (without premium or penalty) the Loan or, as the case may be, the Affected Lender’s
Contribution, together with accrued interest thereon at the applicable rate plus the Margin
and any applicable Mandatory Cost.
	 
	5.15	 	Application of prepayment. The provisions of Clause 8 shall apply in relation to the
prepayment.
	 
	6	 	INTEREST PERIODS
	 
	6.1	 	Commencement of Interest Periods. The first Interest Period applicable to each Advance under
each Tranche shall commence on the Drawdown Date applicable to it and each subsequent Interest
Period shall commence on the expiry of the preceding Interest Period applicable to it.
	 
	6.2	 	Duration of normal Interest Periods. Subject to Clauses 6.3 and 6.4, each Interest Period
shall be:
	 
	(a)	 	3 or 6 months as notified by the Borrowers to the Agent not later than 11.00 a.m. (London
time) 5 Business Days before the commencement of the Interest Period; or
	 
	(b)	 	in the case of the first Interest Period applicable to the second and any subsequent Advance
under each Tranche, a period ending on the last day of the Interest Period applicable to the
first Advance under that Tranche then current, whereupon all the Advances under that Tranche
shall be consolidated and treated as a single Advance; or
	 
	(c)	 	3 months if the Borrowers fail to notify the Agent by the time specified in paragraph (a); or
	 
	(d)	 	such other period as the Agent may, with the authorisation of all the Lenders, agree with the
Borrowers.
	 
	6.3	 	Duration of Interest Periods for repayments. In respect of an amount due to be repaid under
Clause 8 on a particular Repayment Date, an Interest Period shall end on that Repayment Date.
	 
	6.4	 	Non-availability of matching deposits for Interest Period selected. If, after the Borrowers
have selected and the Lenders have agreed an Interest Period longer than 6 months, any Lender
notifies the Agent by 11.00 a.m. (London time) on the third Business Day before the
commencement of the Interest Period that it is not satisfied that deposits in Dollars for a
period equal to the Interest Period will be available to it in the London Interbank Market
when the Interest Period commences, the Interest Period shall be of 6 months.
	 
	7	 	DEFAULT INTEREST
	 
	7.1	 	Payment of default interest on overdue amounts. The Borrowers shall pay interest in
accordance with the following provisions of this Clause 7 on any amount payable by the
Borrowers under any Finance Document which the Agent, the Security Trustee or the other
designated payee does not receive on or before the relevant date, that is:
	 
	(a)	 	the date on which the Finance Documents provide that such amount is due for payment; or
	 
	(b)	 	if a Finance Document provides that such amount is payable on demand, the date on which the
demand is served; or

21

 

	(c)	 	if such amount has become immediately due and payable under Clause 19.4, the date on which it
became immediately due and payable.
	 
	7.2	 	Default rate of interest. Interest shall accrue on an overdue amount from (and including)
the relevant date until the date of actual payment (as well after as before judgment) at the
rate per annum determined by the Agent to be 2 per cent. above:
	 
	(a)	 	in the case of an overdue amount of principal, the higher of the rates set out at Clauses
7.3(a) and 7.3(b); or
	 
	(b)	 	in the case of any other overdue amount, the rate set out at Clause 7.3(b).
	 
	7.3	 	Calculation of default rate of interest. The rates referred to in Clause 7.2 are:
	 
	(a)	 	the rate applicable to the overdue principal amount immediately prior to the relevant date
(but only for any unexpired part of any then current Interest Period applicable to it);
	 
	(b)	 	3.5 per cent. plus the Mandatory Cost plus, in respect of successive periods of any duration
(including at call) up to 3 months which the Agent may select from time to time:

	 	(i)	 	LIBOR; or
	 
	 	(ii)	 	if the Agent (after consultation with the Reference Banks) determines that
Dollar deposits for any such period are not being made available to any Reference Bank
by leading banks in the London Interbank Market in the ordinary course of business, a
rate from time to time determined by the Agent by reference to the cost of funds to the
Reference Banks from such other sources as the Agent (after consultation with the
Reference Banks) may from time to time determine.

	7.4	 	Notification of interest periods and default rates. The Agent shall promptly notify the
Lenders and the Borrowers of each interest rate determined by the Agent under Clause 7.3 and
of each period selected by the Agent for the purposes of paragraph (b) of that Clause; but
this shall not be taken to imply that the Borrowers are liable to pay such interest only with
effect from the date of the Agent’s notification.
	 
	7.5	 	Payment of accrued default interest. Subject to the other provisions of this Agreement, any
interest due under this Clause 7 shall be paid on the last day of the period by reference to
which it was determined; and the payment shall be made to the Agent for the account of the
Creditor Party to which the overdue amount is due.
	 
	7.6	 	Compounding of default interest. Any such interest which is not paid at the end of the
period by reference to which it was determined shall thereupon be compounded.
	 
	7.7	 	Application to Master Agreement. For the avoidance of doubt, this Clause 7 does not apply to
any amount payable under the Master Agreement in respect of any continuing Permitted
Transaction as to which section 2(e) (Default Interest; Other Amounts) of the Master Agreement
shall apply.
	 
	8	 	REPAYMENT AND PREPAYMENT
	 
	8.1	 	Repayment amount and date. The Borrowers shall repay each Tranche by twenty consecutive
quarterly repayment instalments, each in an amount of $66,667, together with a balloon
instalment of $5,333,327 payable concurrently with the final such instalment on the final
Repayment Date in respect of that Tranche.
	 
	8.2	 	Repayment Dates. The first instalment in respect of each Tranche shall be repaid on the date
falling 3 months after the Delivery Date of the Ship to which the Tranche in question relates
and the last instalment in respect of each Tranche on the date falling 60 months

22

 

	 	 	after the earlier to occur of (i) the Delivery Date in respect of the relevant Ship and (ii)
the final day of the Availability Period for that Tranche.
	 
	8.3	 	Final Repayment Date. On the final Repayment Date, the Borrowers shall additionally pay to
the Agent for the account of the Creditor Parties all other sums then accrued or owing under
any Finance Document.
	 
	8.4	 	Voluntary prepayment. Subject to the following conditions, the Borrowers may prepay the
whole or any part of a Tranche on the last day of an Interest Period applicable to it.
	 
	8.5	 	Conditions for voluntary prepayment. The conditions referred to in Clause 8.4 are that:
	 
	(a)	 	no prepayment of a Tranche may be made prior to the Delivery Date of the Ship to which that
Tranche relates;
	 
	(b)	 	a partial prepayment shall be $1,000,000 or a higher integral multiple thereof;
	 
	(c)	 	the Agent has received from the Borrowers at least 5 Business Days’ prior written notice
specifying the amount to be prepaid and the date on which the prepayment is to be made; and
	 
	(d)	 	the Borrowers have provided evidence satisfactory to the Agent that any consent required by
any Borrower or any Security Party in connection with the prepayment has been obtained and
remains in force, and that any regulation relevant to this Agreement which affects any
Borrower or any Security Party has been complied with.
	 
	 	 	In the event that a prepayment of the whole of the Loan (other than as a result of a
refinancing involving all of the Lenders or as a result of the application of the provisions
of Clause 8.8) is made prior to the date falling 1 year after the final Delivery Date, the
Borrowers shall pay to the Agent for distribution to the Lenders pro rata to their
Contributions a prepayment fee of 1 per cent. of the amount prepaid simultaneously with the
relevant prepayment.
	 
	8.6	 	Effect of notice of prepayment. A prepayment notice may not be withdrawn or amended without
the consent of the Agent, given with the authorisation of the Majority Lenders, and the amount
specified in the prepayment notice shall become due and payable by the Borrowers on the date
for prepayment specified in the prepayment notice.
	 
	8.7	 	Notification of notice of prepayment. The Agent shall notify the Lenders promptly upon
receiving a prepayment notice, and shall provide any Lender which so requests with a copy of
any document delivered by the Borrowers under Clause 8.5(c).
	 
	8.8	 	Mandatory prepayment. The Borrowers shall be obliged to prepay the full amount of a Tranche
on the demand of the Agent, and the Commitments and all other obligations of the Lenders
relating to that Tranche shall terminate at that time:
	 
	(a)	 	if the Ship to which the Tranche in question relates is sold, on or before the date on which
the sale is completed by delivery of that Ship to the buyer; or
	 
	(b)	 	if the Ship to which the Tranche in question relates becomes a Total Loss, on the earlier of
the date falling 120 days after the Total Loss Date and the date of receipt by the Security
Trustee of the proceeds of insurance relating to such Total Loss; or
	 
	(c)	 	if any of the following occurs in relation to the Ship to which the Tranche in question
relates, on demand by the Agent:

23

 

	 	(i)	 	any of the events specified in article XI of the Shipbuilding Contract in
respect of that Ship occurs; or
	 
	 	(ii)	 	the Shipbuilding Contract in respect of that Ship or the Refund Guarantee
relative thereto is cancelled, terminated, rescinded or suspended or otherwise ceases
to remain in force for any reason; or
	 
	 	(iii)	 	the Shipbuilding Contract in respect of that Ship is amended or varied without
the prior written consent of the Majority Lenders except for any such amendment or
variation as is permitted by this Agreement or any other relevant Finance Document; or
	 
	 	(iv)	 	that Ship has not for any reason been delivered to, and accepted by, the
relevant Borrower under the Shipbuilding Contract in respect of that Ship by the date
specified in article VIII (3) of such Shipbuilding Contract.

	8.9	 	Amounts payable on prepayment. A prepayment shall be made together with accrued interest
(and any other amount payable under Clause 21 or otherwise) in respect of the amount prepaid
and, if the prepayment is not made on the last day of an applicable Interest Period together
with any sums payable under Clause 21.1(b) but without premium or penalty.
	 
	8.10	 	Application of partial prepayment. Each partial prepayment shall be applied against the
repayment instalments (including the balloon instalment) of the relevant Tranche specified in
Clause 8.1 in inverse order of maturity.
	 
	8.11	 	No reborrowing. No amount prepaid may be reborrowed.
	 
	8.12	 	Unwinding of Permitted Transactions. On or prior to any repayment or prepayment of the Loan
(or part thereof) under this Clause 8 or any other provision of this Agreement, the Borrowers
shall wholly or partially reverse, offset, unwind or otherwise terminate one or more of the
continuing Permitted Transactions so that the notional principal amount of the continuing
Permitted Transactions thereafter remaining does not and will not in the future exceed the
amount of the Loan.
	 
	9	 	CONDITIONS PRECEDENT
	 
	9.1	 	Documents, fees and no default. Each Lender’s obligation to contribute to an Advance is
subject to the following conditions precedent:
	 
	(a)	 	that, on or before the first Drawdown Date, the Agent receives the documents described in
Part A of Schedule 3 in form and substance satisfactory to the Agent and its lawyers;
	 
	(b)	 	that, on or before the first Drawdown Date, the Agent receives the fees referred to in Clause
20.1;
	 
	(c)	 	that at the date of each Drawdown Notice and at each Drawdown Date:

	 	(i)	 	no Event of Default or Potential Event of Default has occurred and is
continuing or would result from the borrowing of the Advance;
	 
	 	(ii)	 	the representations and warranties in Clause 10.1 and those of either Borrower
or any Security Party which are set out in the other Finance Documents would be true
and not misleading if repeated on each of those dates with reference to the
circumstances then existing; and
	 
	 	(iii)	 	none of the circumstances contemplated by Clause 5.7 has occurred and is
continuing; and

24

 

	(d)	 	that the Agent has received, and found to be acceptable to it, any further opinions,
consents, agreements and documents in connection with the Finance Documents which the Agent
may, with the authorisation of the Majority Lenders, request by notice to the Borrowers prior
to the Drawdown Date.
	 
	9.2	 	Waiver of conditions precedent. If the Majority Lenders, at their discretion, permit an
Advance to be borrowed before certain of the conditions referred to in Clause 9.1 are
satisfied, the Borrowers shall ensure that those conditions are satisfied within 5 days after
the Drawdown Date (or such longer period as the Agent may, with the authorisation of the
Majority Lenders, specify).
	 
	10	 	REPRESENTATIONS AND WARRANTIES
	 
	10.1	 	General. Each Borrower represents and warrants to each Creditor Party as follows.
	 
	10.2	 	Status. Each Borrower is duly incorporated and validly existing and in good standing under
the laws of the Republic of Liberia.
	 
	10.3	 	Statutory capital and ownership. Each Borrower is authorised to issue 500 shares of no par
value, all of which have been issued in registered form, and all such shares are legally and
beneficially held by the Corporate Guarantor, free of any Security Interest other than in
accordance with the Senior Loan Agreement.
	 
	10.4	 	Corporate power. Each Borrower has the corporate capacity, and has taken all corporate
action and obtained all consents necessary for it:
	 
	(a)	 	to execute the Shipbuilding Contract to which it is a party, to purchase and pay for the
relevant Ship under that Shipbuilding Contract and to register that Ship in its name under the
relevant Approved Flag;
	 
	(b)	 	to execute the Finance Documents to which that Borrower is a party and the Master Agreement;
and
	 
	(c)	 	to borrow under this Agreement, to enter into Permitted Transactions under the Master
Agreement and to make all the payments contemplated by, and to comply with, those Finance
Documents and the Master Agreement.
	 
	10.5	 	Consents in force. All the consents referred to in Clause 10.4 remain in force and nothing
has occurred which makes any of them liable to revocation.
	 
	10.6	 	Legal validity; effective Security Interests. The Finance Documents to which each Borrower
is a party and the Master Agreement, do now or, as the case may be, will, upon execution and
delivery (and, where applicable, registration as provided for in those Finance Documents):
	 
	(a)	 	constitute that Borrower’s legal, valid and binding obligations enforceable against that
Borrower in accordance with their respective terms; and
	 
	(b)	 	create legal, valid and binding Security Interests enforceable in accordance with their
respective terms over all the assets to which they, by their terms, relate;
	 
	 	 	subject to any relevant insolvency laws affecting creditors’ rights generally.
	 
	10.7	 	No third party Security Interests. Without limiting the generality of Clause 10.6, at the
time of the execution and delivery of each Finance Document:
	 
	(a)	 	each Borrower which is a party to that Finance Document will have the right to create all the
Security Interests which that Finance Document purports to create; and

25

 

	(b)	 	no third party will have any Security Interest (except for a Permitted Security Interest) or
any other interest, right or claim over, in or in relation to any asset to which any such
Security Interest, by its terms, relates.
	 
	10.8	 	No conflicts. The execution by each Borrower of each Finance Document to which it is a party
and the Master Agreement, and the borrowing by that Borrower of the Loan, and its compliance
with each Finance Document to which it is a party and the Master Agreement will not involve or
lead to a contravention of:
	 
	(a)	 	any law or regulation; or
	 
	(b)	 	the constitutional documents of that Borrower; or
	 
	(c)	 	any contractual or other obligation or restriction which is binding on that Borrower or any
of its assets.
	 
	10.9	 	No withholding taxes. All payments which each Borrower is liable to make under the Finance
Documents to which it is a party may be made without deduction or withholding for or on
account of any tax payable under any law of any Pertinent Jurisdiction.
	 
	10.10	 	No default. No Event of Default or Potential Event of Default has occurred and is
continuing.
	 
	10.11	 	Information. All information which has been provided in writing by or on behalf of the
Borrowers or any Security Party to any Creditor Party in connection with any Finance Document
satisfied the requirements of Clause 11.5; all audited and unaudited financial statements
which have been so provided satisfied the requirements of Clause 11.7; and there has been no
material adverse change in the financial position or state of affairs of any Borrower or
either Corporate Guarantor from that disclosed in the latest of those financial statements.
	 
	10.12	 	No litigation. No legal or administrative action involving either Borrower has been
commenced or taken or, to either Borrower’s knowledge, is likely to be commenced or taken.
	 
	10.13	 	Validity and completeness of Shipbuilding Contracts. Each of the Shipbuilding Contracts
constitutes valid, binding and enforceable obligations of the Seller and the Borrower which is
party to it in accordance with its terms; and:
	 
	(a)	 	the copy of each Shipbuilding Contract delivered to the Agent before the date of this
Agreement is a true and complete copy; and
	 
	(b)	 	no amendments or additions to any Shipbuilding Contract (other than those already advised to
the Agent and which have been documented prior to the date of this Agreement) have been agreed
nor has the Seller or the relevant Borrower waived any of their rights under any Shipbuilding
Contract.
	 
	10.14	 	No rebates etc. There is no agreement or understanding to allow or pay any rebate, premium,
commission, discount or other benefit or payment (howsoever described) to any Borrower, the
Seller or any third party in connection with the purchase by the Borrower of the Ship to be
purchased by it.
	 
	10.15	 	Compliance with certain undertakings. At the date of this Agreement, the Borrowers are in
compliance with Clauses 11.2, 11.4, 11.9 and 11.13.
	 
	10.16	 	Taxes paid. Each Borrower has paid all taxes applicable to, or imposed on or in relation to
that Borrower or, its business.

26

 

	10.17	 	No money laundering. Without prejudice to the generality of Clause 3.3, in relation to the
borrowing by the Borrowers of the Loan, the performance and discharge of their respective
obligations and liabilities under the Finance Documents to which each is a party and the
Master Agreement, and the transactions and other arrangements effected or contemplated by the
Finance Documents to which a Borrower is a party and the Master Agreement, the Borrowers
confirm (i) that they are acting for their own account; (ii) that they will use the proceeds
of the Loan for their own benefit, under their full responsibility and exclusively for the
purposes specified in this Agreement; and (iii) that the foregoing will not involve or lead to
contravention of any law, official requirement or other regulatory measure or procedure
implemented to control “money laundering” (as defined in Article 1 of Directive 2005/60/EC of
the European Parliament and of the Council).
	 
	10.18	 	No violations. Neither Borrower is a “national” of any “designated foreign country”, within
the meaning of the Foreign Assets Control Regulations or the Cuban Asset Control Regulations
of the U.S. Treasury Department, 31 C.F.R., Subtitle B, Chapter V, as amended, or a “specially
designated national” listed by the Office of Foreign Assets Control (“OFAC”), the U.S.
Department of the Treasury, or any regulations or rulings issued thereunder. Neither the
making of an Advance nor the use of the proceeds thereof nor the performance by either
Borrower of its obligations under any of the Finance Documents to which it is a party violates
any statute, regulation or executive order restricting loans to, investments in, or the export
of assets to, foreign countries or entities doing business there including but not limited to
any provisions of regulations promulgated from time to time by the Office of Foreign Assets
Control, U.S. Department of Treasury, or any Executive Order issued pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies
Act (50 U.S.C. 1601 et seq.), the Trading with the Enemy Act (50 U.S.C. App. 1 et seq.), or
the Arms Export Control Act, as amended by the Nuclear Proliferation Prevention Act of 1994
(22. U.S.C. 2751 et seq.).
	 
	11	 	GENERAL UNDERTAKINGS
	 
	11.1	 	General. Each Borrower undertakes with each Creditor Party to comply with the following
provisions of this Clause 11 at all times during the Security Period except as the Agent may,
with the authorisation of the Majority Lenders, otherwise permit.
	 
	11.2	 	Title; negative pledge. Each Borrower will:
	 
	(a)	 	hold the legal title to, and own the entire beneficial interest in the Shipbuilding Contract
and each of the Refund Guarantees to which it is a party and in the Ship owned by it
(following the delivery of the relevant Ship to the relevant Borrower on the relevant Delivery
Date) and its Earnings and Insurances, free from all Security Interests and other interests
and rights of every kind, except for those created by the Finance Documents and the effect of
assignments contained in the Finance Documents and except for Permitted Security Interests;
and
	 
	(b)	 	not create or permit to arise any Security Interest over any other asset, present or future.
	 
	11.3	 	No disposal of assets. Neither Borrower will transfer, lease or otherwise dispose of all or
a substantial part of its assets, whether by one transaction or a number of transactions,
whether related or not or any debt payable to it or any other right (present, future or
contingent right) to receive a payment, including any right to damages or compensation.
	 
	11.4	 	No other liabilities or obligations to be incurred. Neither Borrower will incur any
liability or obligation except:
	 
	(a)	 	liabilities and obligations under the Shipbuilding Contract and the Finance Documents and the
Senior Finance Documents to which it is a party and the Master Agreement (but only in respect
of Permitted Transactions and Senior Permitted Transactions); and

27

 

	(b)	 	liabilities and obligations reasonably incurred in the ordinary course of owning and
operating the Ship owned by it; and
	 
	(c)	 	Financial Indebtedness which is subordinated to the Secured Liabilities and in respect of
which the relevant lender has assigned its rights in favour of the Security Trustee, in each
case on terms in all respects satisfactory to the Agent (acting with the authorisation of the
Majority Lenders).
	 
	11.5	 	Information provided to be accurate. All financial and other information which is provided
in writing by or on behalf of a Borrower under or in connection with any Finance Document will
be true and not misleading and will not omit any material fact or consideration.
	 
	11.6	 	Provision of financial statements. Each Borrower will send to the Agent:
	 
	(a)	 	as soon as possible, but in no event later than 180 days after the end of each financial year
of that Borrower, the unaudited individual financial statements of that Borrower and shall
procure that the Corporate Guarantor will send to the Agent as soon as possible, but in no
event later than 180 days after the end of each financial year of the Corporate Guarantor, the
audited consolidated financial statements of the Group; and
	 
	(b)	 	as soon as possible, but in no event later than 60 days after the end of each financial
quarter of that Borrower, the unaudited individual financial statements of that Borrower,
certified as true and correct by the chief financial officer of that Borrower, and shall
procure that the Corporate Guarantor will send to the Agent as soon as possible, but in no
event later than 60 days after the end of each financial quarter of the Corporate Guarantor,
the unaudited consolidated financial statements of the Group, certified as true and correct by
the chief financial officer of the Corporate Guarantor; and
	 
	(c)	 	quarterly, together with the financial statements referred to in paragraphs (a) and, as
appropriate, (b) a compliance certificate signed by the chief financial officer of the
Borrowers in the form attached as Schedule 6 (or in any other format which the Agent may
reasonably approve) evidencing compliance with Clause 12.4 and also listing the Fair Market
Value of each of the Ships which is subject to a Mortgage at that time.
	 
	11.7	 	Form of financial statements. All financial statements delivered under Clause 11.6 will:
	 
	(a)	 	be prepared in accordance with all applicable laws and GAAP;
	 
	(b)	 	fairly represent the financial condition of the relevant company or companies (as the case
may be) at the date of those financial statements and of its or their profits for the period
to which those financial statements relate; and
	 
	(c)	 	fully disclose or provide for all significant liabilities of the relevant company or
companies (as the case may be).
	 
	11.8	 	Shareholder and creditor notices. Each Borrower will send the Agent, at the same time as
they are despatched, copies of all communications which are despatched to that Borrower’s
shareholders or any class of them.
	 
	11.9	 	Consents. Each Borrower will maintain in force and promptly obtain or renew, and will
promptly send certified copies to the Agent of, all consents required:
	 
	(a)	 	for that Borrower to perform its obligations under any Finance Document to which it is a
party and the Master Agreement;
	 
	(b)	 	for the validity or enforceability of any Finance Document to which it is a party and the
Master Agreement;

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	(c)	 	for that Borrower to perform its obligations under, and to purchase the relevant Ship
pursuant to, the Shipbuilding Contract to which it is a party;
	 
	 	 	and that Borrower will comply with the terms of all such consents.
	 
	11.10	 	Maintenance of Security Interests. Each Borrower will:
	 
	(a)	 	at its own cost, do all that it reasonably can to ensure that any Finance Document and the
Master Agreement validly creates the obligations and the Security Interests which it purports
to create; and
	 
	(b)	 	without limiting the generality of paragraph (a), at its own cost, promptly register, file,
record or enrol any Finance Document or the Master Agreement with any court or authority in
all Pertinent Jurisdictions, pay any stamp, registration or similar tax in all Pertinent
Jurisdictions in respect of any Finance Document or the Master Agreement, give any notice or
take any other step which, in the opinion of the Majority Lenders, is or has become necessary
or desirable for any Finance Document or the Master Agreement to be valid, enforceable or
admissible in evidence or to ensure or protect the priority of any Security Interest which it
creates.
	 
	11.11	 	Notification of litigation. Each Borrower will provide the Agent with details of any legal
or administrative action involving that Borrower, any Security Party, the Approved Manager or
the Ship owned (or, as the case may be, to be acquired) by it, its Earnings or its Insurances
as soon as such action is instituted or it becomes apparent to that Borrower that it is likely
to be instituted, unless it is clear that the legal or administrative action cannot be
considered material in the context of any Finance Document.
	 
	11.12	 	No amendment to Shipbuilding Contracts, Refund Guarantees and construction supervisor.
Neither Borrower will agree to any amendment or supplement to, or waive or fail to enforce,
the Shipbuilding Contract or any Refund Guarantee to which it is a party or any of its
provisions other than as permitted under the Finance Documents. In addition, each Borrower
shall procure that the construction supervisor of the Ship to be acquired by it is a company
which is approved by the Agent (with the authorisation of all the Lenders).
	 
	11.13	 	Principal place of business. Each Borrower will maintain its principal place of business,
and keep its corporate documents and records, at the address stated in Clause 29.2(a) and
neither Borrower will establish, or do anything as a result of which it would be deemed to
have a place of business in the United Kingdom or the United States of America.
	 
	11.14	 	Confirmation of no default. Each Borrower will, within 2 Business Days after service by the
Agent of a written request, serve on the Agent a notice which is signed by 2 directors or
officers of that Borrower and which:
	 
	(a)	 	states that no Event of Default or Potential Event of Default has occurred; or
	 
	(b)	 	states that no Event of Default or Potential Event of Default has occurred, except for a
specified event or matter, of which all material details are given.
	 
	11.15	 	Notification of default. Each Borrower will notify the Agent as soon as that Borrower
becomes aware of:
	 
	(a)	 	the occurrence of an Event of Default or a Potential Event of Default; or
	 
	(b)	 	any matter which indicates that an Event of Default or a Potential Event of Default may have
occurred;
	 
	 	 	and will keep the Agent fully up-to-date with all developments.

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	11.16	 	Provision of further information. Each Borrower will, as soon as practicable after
receiving the request, provide the Agent with any additional financial or other information
relating:
	 
	(a)	 	to that Borrower, the Ship owned (or, as the case may be, to be acquired) by it, its Earnings
or its Insurances; or
	 
	(b)	 	to any other matter relevant to, or to any provision of, a Finance Document or the Master
Agreement;
	 
	 	 	which may be requested by the Agent, the Security Trustee, any Lender or the Swap Bank at
any time.
	 
	11.17	 	Provision of copies and translation of documents. Each Borrower will supply the Agent with
a sufficient number of copies of the documents referred to above to provide 1 copy for each
Creditor Party; and if the Agent so requires in respect of any of those documents, the
Borrowers will provide a certified English translation prepared by a translator approved by
the Agent.
	 
	11.18	 	“Know your customer” checks. If:
	 
	(a)	 	the introduction of or any change in (or in the interpretation, administration or application
of) any law or regulation made after the date of this Agreement;
	 
	(b)	 	any change in the status of either Borrower or any Security Party after the date of this
Agreement; or
	 
	(c)	 	a proposed assignment of transfer by a Lender of any of its rights and obligations under this
Agreement to a party that is not a Lender prior to such assignment or transfer,
	 
		 	obliges the Agent or any Lender (or, in the case of paragraph (iii), any prospective new
Lender) to comply with “know your customer” or similar identification procedures in
circumstances where the necessary information is not already available to it, the Borrowers
shall promptly upon the request of the Agent or the Lender concerned supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by the Agent
(for itself or on behalf of any Lender) or the Lender concerned (for itself or, in the case
of the event described in paragraph (iii), on behalf of any prospective new Lender) in order
for the Agent, the Lender concerned or, in the case of the event described in paragraph
(iii), any prospective new Lender to carry out and be satisfied it has complied with all
necessary “know your customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents and the
Master Agreement.
	 
	11.19	 	SAFE registration. Each Borrower shall procure that the Refund Guarantees and the
Predelivery Security Assignments in respect thereof shall be duly registered in accordance
with the State Administration of Foreign Exchange (SAFE) requirements of the People’s Republic
of China within any requisite time limits.
	 
	11.20	 	No variation, release etc. of Permitted Charters. Neither Borrower shall, whether by a
document, by conduct, by acquiescence or in any other way:
	 
	(a)	 	vary the Permitted Charter to which it is or is to be a party;
	 
	(b)	 	release, waive, suspend or subordinate or permit to be lost or impaired by interest or right
forming part of or relating to the Permitted Charter to which it is or is to be party;
	 
	(c)	 	waive any person’s breach of the Permitted Charter to which it is or is to be a party; or

30

 

	(d)	 	rescind or terminate the Permitted Charter to which it is a party or treat itself as
discharged or relieved from further performance of any of its obligations or liabilities under
the Permitted Charter to which it is or is to be a party.
	 
	11.21	 	No violations. Neither Borrower shall engage in any transactions that violate any statute,
regulation or execution order as is referred to in Clause 10.18.
	 
	11.22	 	Conditions subsequent.
	 
	(a)	 	On or before the payment to the Seller of any instalment of the Contract Price of the
relevant Ship under either Shipbuilding Contract (other than the instalment due on the
Delivery Date of that Ship) the Borrowers shall procure that the Agent receives the documents
described in Part B of Schedule 3 in form and substance satisfactory to the Agent and its
lawyers; and
	 
	(b)	 	on or before the payment to the Seller of the instalment of the Contract Price of the
relevant Ship under either Shipbuilding Contract due on the Delivery Date of that Ship the
Borrowers shall procure that the Agent receives the documents described in Part C of Schedule
3 in form and substance satisfactory to the Agent and its lawyers.
	 
	 	 	If the Majority Lenders, at their discretion, permit any of the documents referred to in
this Clause 11.22 to be delivered on a date after the date provided for in this Clause
11.22, the Borrowers shall ensure that such documents are delivered on or before such date
as the Agent may, with the authorisation of the Majority Lenders, specify.
	 
	12	 	CORPORATE UNDERTAKINGS
	 
	12.1	 	General. Each Borrower also undertakes with each Creditor Party to comply with the following
provisions of this Clause 12 at all times during the Security Period except as the Agent may,
with the authorisation of the Majority Lenders, otherwise permit.
	 
	12.2	 	Maintenance of status. Each Borrower will maintain its separate corporate existence and
remain in good standing under the laws of the Republic of Liberia.
	 
	12.3	 	Negative undertakings. Neither Borrower will:
	 
	(a)	 	carry on any business other than in relation to its acquisition of the Ship to be acquired by
it under the relevant Shipbuilding Contract or, following the Delivery Date in respect
thereof, the ownership, operation and chartering of that Ship;
	 
	(b)	 	pay or declare any dividend or make any other form of distribution at any time while:

	 	(i)	 	the Equity Ratio is less than 30 per cent. ;
	 
	 	(ii)	 	the Security Cover is less than 140 per cent.; and/or
	 
	 	(iii)	 	an Event of Default or a Potential Event of Default has occurred which is
continuing, or an Event of Default or Potential Event of Default would result from the
payment of such dividend or from the making of such other form of distribution;

	(c)	 	effect any form of redemption, purchase or return of share capital;
	 
	(d)	 	provide any form of credit or financial assistance to:

	 	(i)	 	a person who is directly or indirectly interested in that Borrower’s statutory
capital; or

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

		 	or enter into any transaction with or involving such a person or company on terms which are,
in any respect, less favourable to that Borrower than those which it could obtain in a
bargain made at arms’ length;
	 
	(e)	 	open or maintain any account with any bank or financial institution except accounts with the
Agent and the Security Trustee for the purposes of the Finance Documents;
	 
	(f)	 	issue, allot or grant any person other than the Corporate Guarantor a right to any shares in
its capital or repurchase or reduce its statutory share capital;
	 
	(g)	 	have any subsidiaries;
	 
	(h)	 	acquire any shares or other securities other than US or UK Treasury bills and certificates of
deposit issued by major North American or European banks, or enter into any transaction in a
derivative other than Permitted Transactions and Senior Permitted Transactions; or
	 
	(i)	 	enter into any form of amalgamation, merger or de-merger or any form of reconstruction or
reorganisation.
	 
	12.4	 	Borrower’s minimum liquidity. Each Borrower shall ensure that, at the time the Ship owned by
it is delivered to it and thereafter throughout the Security Period, it shall maintain a
minimum balance on its Earnings Account of $750,000, provided that:
	 
	(a)	 	if the Security Cover on the relevant Delivery Date immediately following the delivery of a
Ship to the relevant Borrower is equal to or greater than 115 per cent., the required minimum
balance shall be reduced to $250,000 for the following 9 month period, but neither Borrower
may withdraw any amount from its Earnings Account other than for the purposes listed in
paragraphs (a) to (c) of the definition of “Surplus Earnings” until the balance of both
Earnings Accounts has reached $750,000;
	 
	(b)	 	if, in the circumstances contemplated by Clause 12.4(a), on the date falling 9 months after
the relevant Delivery Date the balance of either Earnings Account is less than $750,000, the
Borrowers shall on that date deposit, or procure that there is deposited, in the Earnings
Accounts such amount as is necessary to achieve a minimum balance of $750,000 on each Earnings
Account; and
	 
	(c)	 	notwithstanding the foregoing provisions of this Clause 12.4, at all times when there is a
beach of Clause 15.1, each Borrower shall maintain a minimum balance on its Earnings Account
of $750,000 and shall promptly deposit, or procure that there is deposited, in the relevant
Earnings Account any shortfall.
	 
	13	 	INSURANCE
	 
	13.1	 	General. Each Borrower also undertakes with each Creditor Party to comply with the following
provisions of this Clause 13 in respect of the Ship owned by that Borrower at all times during
the Security Period (after the Ship in question has been delivered to that Borrower under the
relevant Shipbuilding Contract) except as the Agent may, with the authorisation of the
Majority Lenders, otherwise permit.
	 
	13.2	 	Maintenance of obligatory insurances. Each Borrower shall keep the Ship owned by it insured
at the expense of that Borrower against:
	 
	(a)	 	fire and usual marine risks (including hull and machinery and excess risks);

32

 

	(b)	 	war risks;
	 
	(c)	 	protection and indemnity risks;
	 
	(d)	 	risk of loss of Earnings; and
	 
	(e)	 	any other risks against which the Agent considers, having regard to practices and other
circumstances prevailing at the relevant time, it would in the opinion of the Agent be
reasonable for that Borrower to insure and which are specified by the Agent by notice to that
Borrower.
	 
	13.3	 	Terms of obligatory insurances. Each Borrower shall effect such insurances in respect of the
Ship owned by it:
	 
	(a)	 	in Dollars;
	 
	(b)	 	in the case of fire and usual marine risks and war risks, in an amount on an agreed value
basis at least the greater of (i) an amount (which when aggregated with the equivalent amount
for the other Ship (if subject to a Mortgage) is not less than 120 per cent. of the aggregate
of the Loan and the Senior Loan and (ii) the market value of that Ship; and
	 
	(c)	 	in the case of oil pollution liability risks, for an aggregate amount equal to the highest
level of cover from time to time available under basic protection and indemnity club entry and
in the international marine insurance market;
	 
	(d)	 	in relation to protection and indemnity risks in respect of the Ship’s full tonnage;
	 
	(e)	 	on approved terms; and
	 
	(f)	 	through approved brokers and with approved insurance companies and/or underwriters or, in the
case of war risks and protection and indemnity risks, in approved war risks and protection and
indemnity risks associations.
	 
	13.4	 	Further protections for the Creditor Parties. In addition to the terms set out in Clause
13.3, each Borrower shall procure that the obligatory insurances effected by it shall:
	 
	(a)	 	subject always to paragraph (b), name the relevant Borrower as the sole named assured unless
the interest of every other named assured is limited:

	 	(i)	 	in respect of any obligatory insurances for hull and machinery and war risks;

	 	(A)	 	to any provable out-of-pocket expenses that it has incurred and
which form part of any recoverable claim on underwriters; and
	 
	 	(B)	 	to any third party liability claims where cover for such claims
is provided by the policy (and then only in respect of discharge of any claims
made against it); and

	 	(ii)	 	in respect of any obligatory insurances for protection and indemnity risks, to
any recoveries it is entitled to make by way of reimbursement following discharge of
any third party liability claims made specifically against it;

	 	 	and every other named assured has undertaken in writing to the Security Trustee (in such
form as it requires) that any deductible shall be apportioned between the relevant Borrower
and every other named assured in proportion to the gross claims made or paid by each of them
and that it shall do all things necessary and provide all documents, evidence and
information to enable the Security Trustee to collect or recover any moneys which at any
time become payable in respect of the obligatory insurances.

33

 

	(b)	 	whenever the Agent requires, name (or be amended to name) the Security Trustee as additional
named assured for its rights and interests, warranted no operational interest and with full
waiver of rights of subrogation against the Security Trustee, but without the Security Trustee
thereby being liable to pay (but having the right to pay) premiums, calls or other assessments
in respect of such insurance;
	 
	(c)	 	name the Security Trustee as loss payee with such directions for payment as the Security
Trustee may specify;
	 
	(d)	 	provide that all payments by or on behalf of the insurers under the obligatory insurances to
the Security Trustee shall be made without set-off, counterclaim or deductions or condition
whatsoever;
	 
	(e)	 	provide that such obligatory insurances shall be primary without right of contribution from
other insurances which may be carried by the Security Trustee or any other Creditor Party; and
	 
	(f)	 	provide that the Security Trustee may make proof of loss if the Borrower concerned fails to
do so.
	 
	13.5	 	Renewal of obligatory insurances. Each Borrower shall:
	 
	(a)	 	at least 21 days before the expiry of any obligatory insurance effected by it:

	 	(i)	 	notify the Agent of the brokers (or other insurers) and any protection and
indemnity or war risks association through or with whom that Borrower proposes to renew
that obligatory insurance and of the proposed terms of renewal; and
	 
	 	(ii)	 	obtain the Agent’s approval to the matters referred to in paragraph (i);

	(b)	 	at least 14 days before the expiry of any obligatory insurance effected by it, renew that
obligatory insurance in accordance with the Agent’s approval pursuant to paragraph (a); and
	 
	(c)	 	procure that the approved brokers and/or the war risks and protection and indemnity
associations with which such a renewal is effected shall promptly after the renewal notify the
Agent in writing of the terms and conditions of the renewal.
	 
	13.6	 	Copies of policies; letters of undertaking. Each Borrower shall ensure that all approved
brokers provide the Security Trustee with pro forma copies of all policies relating to the
obligatory insurances which they are to effect or renew and of a letter or letters or
undertaking in a form required by the Agent and including undertakings by the approved brokers
that:
	 
	(a)	 	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a
notice of assignment complying with the provisions of Clause 13.4;
	 
	(b)	 	they will hold such policies, and the benefit of such insurances, to the order of the
Security Trustee in accordance with the said loss payable clause;
	 
	(c)	 	they will advise the Agent immediately of any material change to the terms of the obligatory
insurances;
	 
	(d)	 	they will notify the Agent, not less than 14 days before the expiry of the obligatory
insurances, in the event of their not having received notice of renewal instructions from that
Borrower or its agents and, in the event of their receiving instructions to renew, they will
promptly notify the Agent of the terms of the instructions; and

34

 

	(e)	 	they will not set off against any sum recoverable in respect of a claim relating to a Ship
under such obligatory insurances any premiums or other amounts due to them or any other person
whether in respect of that Ship or otherwise, they waive any lien on the policies, or any sums
received under them, which they might have in respect of such premiums or other amounts, and
they will not cancel such obligatory insurances by reason of non-payment of such premiums or
other amounts, and will arrange for a separate policy to be issued in respect of that Ship
forthwith upon being so requested by the Agent.
	 
	13.7	 	Copies of certificates of entry. Each Borrower shall ensure that any protection and
indemnity and/or war risks associations in which the Ship owned by it is entered provides the
Agent with:
	 
	(a)	 	a certified copy of the certificate of entry for that Ship;
	 
	(b)	 	a letter or letters of undertaking in such form as may be required by the Agent; and
	 
	(c)	 	a certified copy of each certificate of financial responsibility for pollution by oil or
other Environmentally Sensitive Material issued by the relevant certifying authority in
relation to that Ship.
	 
	13.8	 	Deposit of original policies. Each Borrower shall ensure that all policies relating to
obligatory insurances effected by it are deposited with the approved brokers through which the
insurances are effected or renewed.
	 
	13.9	 	Payment of premiums. Each Borrower shall punctually pay all premiums or other sums payable
in respect of the obligatory insurances effected by it and produce all relevant receipts when
so required by the Agent.
	 
	13.10	 	Guarantees. Each Borrower shall ensure that any guarantees required by a protection and
indemnity or war risks association are promptly issued and remain in full force and effect.
	 
	13.11	 	Compliance with terms of insurances. Neither Borrower shall do or omit to do (nor permit to
be done or not to be done) any act or thing which would or might render any obligatory
insurance invalid, void, voidable or unenforceable or render any sum payable under an
obligatory insurance repayable in whole or in part; and, in particular:
	 
	(a)	 	each Borrower shall take all necessary action and comply with all requirements which may from
time to time be applicable to the obligatory insurances, and (without limiting the obligation
contained in Clause 13.6(c)) ensure that the obligatory insurances are not made subject to any
exclusions or qualifications to which the Agent has not given its prior approval;
	 
	(b)	 	neither Borrower shall make any changes relating to the classification or classification
society or manager or operator of the Ship owned by it approved by the underwriters of the
obligatory insurances;
	 
	(c)	 	each Borrower shall make (and promptly supply copies to the Agent of) all quarterly or other
voyage declarations which may be required by the protection and indemnity risks
association in which the Ship owned by it is entered to maintain cover for trading to the
United States of America and Exclusive Economic Zone (as defined in the United States Oil
Pollution Act 1990 or any other applicable legislation); and
	 
	(d)	 	neither Borrower shall employ the Ship owned by it, nor allow it to be employed, otherwise
than in conformity with the terms and conditions of the obligatory insurances, without first
obtaining the consent of the insurers and complying with any requirements (as to extra premium
or otherwise) which the insurers specify.

35

 

	13.12	 	Alteration to terms of insurances. Neither Borrower shall either make or agree to any
alteration to the terms of any obligatory insurance nor waive any right relating to any
obligatory insurance.
	 
	13.13	 	Settlement of claims. Neither Borrower shall settle, compromise or abandon any claim under
any obligatory insurance for Total Loss or for a Major Casualty, and each Borrower shall do
all things necessary and provide all documents, evidence and information to enable the
Security Trustee to collect or recover any moneys which at any time become payable in respect
of the obligatory insurances.
	 
	13.14	 	Provision of copies of communications. Each Borrower shall provide the Agent, at the time
of each such communication, copies of all written communications between that Borrower and:
	 
	(a)	 	the approved brokers; and
	 
	(b)	 	the approved protection and indemnity and/or war risks associations; and
	 
	(c)	 	the approved insurance companies and/or underwriters, which relate directly or indirectly to:

	 	(i)	 	that Borrower’s obligations relating to the obligatory insurances including,
without limitation, all requisite declarations and payments of additional premiums or
calls; and
	 
	 	(ii)	 	any credit arrangements made between that Borrower and any of the persons
referred to in paragraphs (a) or (b) relating wholly or partly to the effecting or
maintenance of the obligatory insurances.

	13.15	 	Provision of information. In addition, each Borrower shall promptly provide the Agent (or
any persons which it may designate) with any information which the Agent (or any such
designated person) requests for the purpose of:
	 
	(a)	 	obtaining or preparing any report from an independent marine insurance broker as to the
adequacy of the obligatory insurances effected or proposed to be effected; and/or
	 
	(b)	 	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.16 or
dealing with or considering any matters relating to any such insurances;
	 
	 	 	and the Borrowers shall, forthwith upon demand, indemnify the Agent in respect of all fees
and other expenses incurred by or for the account of the Agent in connection with any such
report as is referred to in paragraph (a).
	 
	13.16	 	Mortgagee’s interest and additional perils. The Security Trustee shall be entitled from
time to time to effect, maintain and renew a mortgagee’s interest additional perils insurance
and a mortgagee’s interest marine insurance in such amounts (which, in relation to each Ship,
shall be not less than the lower of (a) the Fair Market Value of that Ship and (b) an amount
which when aggregated with the equivalent amount in respect of the other Ship shall not be
less than 110 per cent. of the aggregate of the Loan and the
Senior Loan), on such terms, through
such insurers and generally in such
manner as the Security Trustee may from
time to time consider appropriate and
the Borrowers shall upon demand fully
indemnify the Security Trustee in
respect of all premiums and other
expenses which are incurred in
connection with or with a view to
effecting, maintaining or renewing any
such insurance or dealing with, or
considering, any matter arising out of
any such insurance.

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	14	 	SHIP COVENANTS
	 
	14.1	 	General. Each Borrower also undertakes with each Creditor Party to comply with the following
provisions of this Clause 14 in respect of the Ship owned by that Borrower at all times during
the Security Period (after the Ship in question has been delivered to that Borrower under the
relevant Shipbuilding Contract) except as the Agent, with the authorisation of the Majority
Lenders, may otherwise permit.
	 
	14.2	 	Ships’ name and registration. Each Borrower shall keep the Ship owned by it registered in
its name under the relevant Approved Flag; shall not do or allow to be done anything as a
result of which such registration might be cancelled or imperilled; and shall not change the
name of the Ship owned by it.
	 
	14.3	 	Repair and classification. Each Borrower shall keep the Ship owned by it in a good and safe
condition and state of repair:
	 
	(a)	 	consistent with first-class ship ownership and management practice;
	 
	(b)	 	so as to maintain that Ship’s class specified in Article 1.2 of the relevant Shipbuilding
Contract free of overdue recommendations and conditions; and
	 
	(c)	 	so as to comply with all laws and regulations applicable to vessels registered under that
Ship’s Approved Flag (or any other port of registry of the Ship in question at which it may be
registered in accordance with the provisions of the Finance Documents) or to vessels trading
to any jurisdiction to which that Ship may trade from time to time, including but not limited
to the ISM Code and the ISPS Code.
	 
	14.4	 	Modification. Neither Borrower shall make any modification or repairs to, or replacement of,
any Ship or equipment installed on it which would or might materially alter the structure,
type or performance characteristics of that Ship or materially reduce its value.
	 
	14.5	 	Removal of parts. Neither Borrower shall remove any material part of the Ship owned by it,
or any item of equipment installed on that Ship, unless the part or item so removed is
forthwith replaced by a suitable part or item which is in the same condition as or better
condition than the part or item removed, is free from any Security Interest or any right in
favour of any person other than the Security Trustee and becomes on installation on that Ship
the property of the Borrower concerned and subject to the security constituted by the relevant
Mortgage Provided that an Borrower may install equipment owned by a third party if the
equipment can be removed without any risk of damage to the Ship owned by it.
	 
	14.6	 	Surveys. Each Borrower shall submit the Ship owned by it regularly to all periodical or
other surveys which may be required for classification purposes and, if so required by the
Agent, provide the Agent with copies of all survey reports.
	 
	14.7	 	Inspection. Each Borrower shall permit the Agent (by surveyors or other persons appointed by
it for that purpose) to board the Ship owned by it at all reasonable times to inspect its
condition or to satisfy themselves about proposed or executed repairs and shall afford all
proper facilities for such inspections.
	 
	14.8	 	Prevention of and release from arrest. Each Borrower shall promptly discharge:
	 
	(a)	 	all liabilities which give or may give rise to maritime or possessory liens on or claims
enforceable against the Ship owned by it, its Earnings or its Insurances;
	 
	(b)	 	all taxes, dues and other amounts charged in respect of the Ship owned by it, its Earnings or
its Insurances; and

37

 

	(c)	 	all other outgoings whatsoever in respect of the Ship owned by it, its Earnings or its
Insurances;
	 
	 	 	and, forthwith upon receiving notice of the arrest of that Ship, or of its detention in
exercise or purported exercise of any lien or claim, that Borrower shall procure its release
by providing bail or otherwise as the circumstances may require within 30 days of such
arrest or detention.
	 
	14.9	 	Compliance with laws etc. Each Borrower shall:
	 
	(a)	 	comply, or procure compliance, with the ISM Code, the ISPS Code, all Environmental Laws and
all other laws or regulations relating to the Ship owned by it, its ownership, operation and
management or to the business of that Borrower;
	 
	(b)	 	not employ the Ship owned by it nor allow its employment in any manner contrary to any law or
regulation in any relevant jurisdiction including but not limited to the ISM Code or the ISPS
Code; and
	 
	(c)	 	in the event of hostilities in any part of the world (whether war is declared or not), not
cause or permit the Ship owned by it to enter or trade to any zone which is declared a war
zone by any government or by that Ship’s war risks insurers unless the prior written consent
of the Agent has been given and that Borrower has (at its expense) effected any special,
additional or modified insurance cover which the Agent may require.
	 
	14.10	 	Provision of information. Each Borrower shall promptly provide the Agent with any
information which it requests regarding:
	 
	(a)	 	the Ship owned by it, its employment, position and engagements;
	 
	(b)	 	the Earnings of the Ship owned by it and payments and amounts due to that Ship’s master and
crew;
	 
	(c)	 	any expenses incurred, or likely to be incurred, in connection with the operation,
maintenance or repair of the Ship owned by it and any payments made in respect of that Ship;
	 
	(d)	 	any towages and salvages;
	 
	(e)	 	compliance by that Borrower, the Ship owned by it or the Approved Manager with the ISM Code
and/or the ISPS Code,
	 
	 	 	and, upon the Agent’s request, provide copies of any current charter relating to the Ship
owned by it and of any current charter guarantee, and copies of that Ship’s Safety
Management Certificate and the Borrower’s or (as the case may be) the Approved Manager’s
Document of Compliance.
	 
	14.11	 	Notification of certain events. Each Borrower shall immediately notify the Agent by fax,
confirmed forthwith by letter, of:
	 
	(a)	 	any casualty to the Ship owned by it which is or is likely to be or to become a Major
Casualty;
	 
	(b)	 	any occurrence as a result of which the Ship owned by it has become or is, by the passing of
time or otherwise, likely to become a Total Loss;
	 
	(c)	 	any requirement or recommendation made by any insurer or classification society or by any
competent authority which is not immediately complied with;

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	(d)	 	any arrest or detention of the Ship owned by it, any exercise or purported exercise of any
lien on that Ship or its Earnings or any requisition of that Ship for hire;
	 
	(e)	 	any intended dry docking of the Ship owned by it;
	 
	(f)	 	any Environmental Claim made against that Borrower or in connection with the Ship owned by
it, or any Environmental Incident;
	 
	(g)	 	any claim for breach of the ISM Code or the ISPS Code being made against that Borrower, the
Approved Manager or otherwise in connection with the Ship owned by it;
	 
	(h)	 	any other matter, event or incident, actual or threatened, the effect of which will or could
lead to the ISM Code or the ISPS Code not being complied with; or
	 
	(i)	 	any period during which the Ship is off hire in excess of 10 days;
	 
	 	 	and that Borrower shall keep the Agent advised in writing on a regular basis and in such
detail as the Agent shall require of that Borrower’s, the Approved Manager’s or any other
person’s response to any of those events or matters.
	 
	14.12	 	Restrictions on chartering, appointment of managers etc. Neither Borrower shall:
	 
	(a)	 	let the Ship owned by it on demise charter for any period;
	 
	(b)	 	other than a Permitted Charter, enter into any time or consecutive voyage charter in respect
of the Ship owned by it for a term which exceeds, or which by virtue of any optional
extensions may exceed, 13 months;
	 
	(c)	 	enter into any charter in relation to the Ship owned by it under which more than 2 months’
hire (or the equivalent) is payable in advance;
	 
	(d)	 	charter the Ship owned by it otherwise than on bona fide arm’s length terms at the time when
that Ship is fixed;
	 
	(e)	 	appoint a manager of the Ship owned by it other than an Approved Manager or agree to any
alteration to the terms of an Approved Manager’s appointment;
	 
	(f)	 	de-activate or lay up that Ship; or
	 
	(g)	 	put the Ship owned by it into the possession of any person for the purpose of work being done
upon it in an amount exceeding or likely to exceed $250,000 (or the equivalent in any other
currency) unless that person has first given to the Security Trustee and in terms satisfactory
to it a written undertaking not to exercise any lien on that Ship or its Earnings for the cost
of such work or for any other reason.
	 
	14.13	 	Notice of Mortgage. Each Borrower shall keep the Mortgage relating to the Ship owned by it
registered against that Ship as a valid second preferred or (as the case may be) priority
mortgage (subject only to the relevant Mortgage (as that term is defined in the Senior Loan
Agreement)), carry on board that Ship a certified copy of that Mortgage and
place and maintain in a conspicuous place in the navigation room and the Master’s cabin of
that Ship a framed printed notice stating that that Ship is mortgaged by that Borrower to
the Security Trustee.
	 
	14.14	 	Sharing of Earnings. Neither Borrower enter into any agreement or arrangement for the
sharing of any Earnings.
	 
	14.15	 	ISPS Code. Each Borrower shall comply with the ISPS Code and in particular, without
limitation, shall:

39

 

	(a)	 	procure that the Ship owned by it and the company responsible for that Ship’s compliance with
the ISPS Code comply with the ISPS Code; and
	 
	(b)	 	maintain for that Ship and ISSC; and
	 
	(c)	 	notify the Agent immediately in writing of any actual or threatened withdrawal, suspension,
cancellation or modification of the ISSC.
	 
	14.16	 	Violations. Without limitation to the provisions of Clause 11.21, neither Borrower shall
enter into any charter or management agreement or any other contract relating to the
employment or operation of the Ship owned by it that violates any statute, regulation or
execution order as is referred to in Clause 10.18.
	 
	15	 	SECURITY COVER
	 
	15.1	 	Minimum required security cover. Clause 15.2 applies if (after a Ship has been delivered)
the Agent notifies the Borrowers that the Security Cover is:
	 
	(a)	 	for the period up to and including the date falling 24 months after the final Delivery Date,
below 115 per cent.;
	 
	(b)	 	thereafter up to and including the date falling 36 months after the final Delivery Date,
below 120 per cent.;
	 
	(c)	 	thereafter up to and including the date falling 48 months after the final Delivery Date,
below 125 per cent.; and
	 
	(d)	 	thereafter below 130 per cent.
	 
	15.2	 	Provision of additional security; prepayment. If the Agent serves a notice on the Borrowers
under Clause 15.1:
	 
	(a)	 	in the case of a notice served in relation to Clause 15.1(a):

	 	(i)	 	until the date falling 6 months after the date on which the breach is remedied
(provided that no further breach of Clause 15.1(a) has occurred in respect of which
notice been served on the Borrower under this Clause 15.2 in the interim), the
provisions of Clause 12.3(b) shall apply; and
	 
	 	(ii)	 	until the breach is remedied, Surplus Earnings shall be applied in prepayment
of the Loan promptly following calculation thereof in respect of each 3 month period
ending on a Repayment Date;

	(b)	 	in the case of a notice served in relation to paragraphs (b) to (d) of Clause 15.1 the
Borrowers shall, within 1 month after the date on which the Agent’s notice is served, either:

	 	(i)	 	provide, or ensure that a third party provides, additional security which, in
the opinion of the Majority Lenders, has a net realisable value at least equal to the
shortfall and is documented in such terms as the Agent may, with the authorisation of
the Majority Lenders, approve or require, such security to remain in place for a period
of not less than 6 months after the relevant shortfall has been remedied and provided
that any release of such security would not give rise to a further shortfall; or
	 
	 	(ii)	 	prepay such part (at least) of the Loan as will eliminate the shortfall.

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	15.3	 	Valuation of Ships. The Fair Market Value of each Ship shall be determined at delivery and
at least 6 monthly thereafter and at any date is the average of that shown by 2 valuations
each prepared:
	 
	(a)	 	as at a date not more than 28 days previously;
	 
	(b)	 	by an independent sale and purchase shipbroker which the Agent has approved or appointed for
the purpose;
	 
	(c)	 	with or without physical inspection of that Ship (as the Agent may require);
	 
	(d)	 	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms
as between a willing seller and a willing buyer, free of any existing charter or other
contract of employment;
	 
	(e)	 	after deducting the estimated amount of the usual and reasonable expenses which would be
incurred in connection with the sale.
	 
	15.4	 	Value of additional vessel security. The net realisable value of any additional security
which is provided under Clause 15.2 and which consists of a Security Interest over a vessel
shall be that shown by a valuation complying with the requirements of Clause 15.3.
	 
	15.5	 	Valuations binding. Any valuation under Clause 15.2, 15.3 or 15.4 shall be binding and
conclusive as regards the Borrowers, as shall be any valuation which the Majority Lenders make
of any additional security which does not consist of or include a Security Interest.
	 
	15.6	 	Provision of information. The Borrowers shall promptly provide the Agent and any shipbroker
or expert acting under Clause 15.3 or 15.4 with any information which the Agent or the
shipbroker or expert may request for the purposes of the valuation; and, if the Borrowers fail
to provide the information by the date specified in the request, the valuation may be made on
any basis and assumptions which the shipbroker or the Majority Lenders (or the expert
appointed by them) consider prudent.
	 
	15.7	 	Payment of valuation expenses. Without prejudice to the generality of the Borrowers’
obligations under Clauses 20.2, 20.3 and 21.3, the Borrowers shall, on demand, pay the Agent
the amount of the fees and expenses of any shipbroker or expert instructed by the Agent under
this Clause 15 and all legal and other expenses incurred by any Creditor Party in connection
with any matter arising out of this Clause 15.
	 
	15.8	 	Application of prepayment. Clause 8 shall apply in relation to any prepayment pursuant to
Clause 15.2(b)(ii).
	 
	16	 	PAYMENTS AND CALCULATIONS
	 
	16.1	 	Currency and method of payments. All payments to be made by the Lenders or by either
Borrower under a Finance Document shall be made to the Agent or to the Security Trustee, in
the case of an amount payable to it:
	 
	(a)	 	by not later than 11.00 a.m. (New York City time) on the due date;
	 
	(b)	 	in same day Dollar funds settled through the New York Clearing House Interbank Payments
System (or in such other Dollar funds and/or settled in such other manner as the Agent shall
specify as being customary at the time for the settlement of international transactions of the
type contemplated by this Agreement);

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	(c)	 	in the case of an amount payable by a Lender to the Agent or by any Borrower to the Agent, to
such account as the Agent may from time to time notify to the Borrowers and the other Creditor
Parties; and
	 
	(d)	 	in the case of an amount payable to the Security Trustee, to such account as it may from time
to time notify to the Borrowers and the other Creditor Parties.
	 
	16.2	 	Payment on non-Business Day. If any payment by any Borrower under a Finance Document would
otherwise fall due on a day which is not a Business Day:
	 
	(a)	 	the due date shall be extended to the next succeeding Business Day; or
	 
	(b)	 	if the next succeeding Business Day falls in the next calendar month, the due date shall be
brought forward to the immediately preceding Business Day;
	 
	 	 	and interest shall be payable during any extension under paragraph (a) at the rate payable
on the original due date.
	 
	16.3	 	Basis for calculation of periodic payments. All interest and fees and any other payments
under any Finance Document which are of an annual or periodic nature shall accrue from day to
day and shall be calculated on the basis of the actual number of days elapsed and a 360 day
year.
	 
	16.4	 	Distribution of payments to Creditor Parties. Subject to Clauses 16.5, 16.6 and 16.7:
	 
	(a)	 	any amount received by the Agent under a Finance Document for distribution or remittance to a
Lender, the Swap Bank or the Security Trustee shall be made available by the Agent to that
Lender, the Swap Bank or, as the case may be, the Security Trustee by payment, with funds
having the same value as the funds received, to such account as that Lender, the Swap Bank or
the Security Trustee may have notified to the Agent not less than 5 Business Days previously;
and
	 
	(b)	 	amounts to be applied in satisfying amounts of a particular category which are due to the
Creditor Parties generally shall be distributed by the Agent to each Creditor Party pro rata
to the amount in that category which is due to it.
	 
	16.5	 	Permitted deductions by Agent. Notwithstanding any other provision of this Agreement or any
other Finance Document, the Agent may, before making an amount available to a Lender or the
Swap Bank, deduct and withhold from that amount any sum which is then due and payable to the
Agent from that Lender or the Swap Bank under any Finance Document or any sum which the Agent
is then entitled under any Finance Document to require that Lender or the Swap Bank to pay on
demand.
	 
	16.6	 	Agent only obliged to pay when monies received. Notwithstanding any other provision of this
Agreement or any other Finance Document, the Agent shall not be obliged to
make available to any Borrower or any Lender or the Swap Bank any sum which the Agent is
expecting to receive for remittance or distribution to that Borrower or that Lender or the
Swap Bank until the Agent has satisfied itself that it has received that sum.
	 
	16.7	 	Refund to Agent of monies not received. If and to the extent that the Agent makes available
a sum to a Borrower or a Lender or the Swap Bank, without first having received that sum, that
Borrower or (as the case may be) the other party concerned shall, on demand:
	 
	(a)	 	refund the sum in full to the Agent; and

42

 

	(b)	 	pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent
against any funding or other loss, liability or expense incurred by the Agent as a result of
making the sum available before receiving it.
	 
	16.8	 	Agent may assume receipt. Clause 16.7 shall not affect any claim which the Agent has under
the law of restitution, and applies irrespective of whether the Agent had any form of notice
that it had not received the sum which it made available.
	 
	16.9	 	Creditor Party accounts. Each Creditor Party shall maintain accounts showing the amounts
owing to it by the Borrowers and each Security Party under the Finance Documents and all
payments in respect of those amounts made by the Borrowers and any Security Party.
	 
	16.10	 	Agent’s memorandum account. The Agent shall maintain a memorandum account showing the
amounts advanced by the Lenders and all other sums owing to the Agent, the Security Trustee,
each Lender and the Swap Bank from the Borrowers and each Security Party under the Finance
Documents and all payments in respect of those amounts made by the Borrowers and any Security
Party.
	 
	16.11	 	Accounts prima facie evidence. If any accounts maintained under Clauses 16.9 and 16.10 show
an amount to be owing by a Borrower or a Security Party to a Creditor Party, those accounts
shall be prima facie evidence that that amount is owing to that Creditor Party.
	 
	17	 	APPLICATION OF RECEIPTS
	 
	17.1	 	Normal order of application. Except as any Finance Document may otherwise provide, any sums
which are received or recovered by any Creditor Party under or by virtue of any Finance
Document shall be applied:
	 
	(a)	 	FIRST: in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent and
the Security Trustee under the Finance Documents;
	 
	(b)	 	SECONDLY: in or towards payment pro rata of any accrued interest or commission due but unpaid
under this Agreement;
	 
	(c)	 	THIRDLY: in or towards payment pro rata of any principal due but unpaid under this Agreement;
	 
	(d)	 	FOURTHLY: in or towards payment pro rata of any other amounts due but unpaid under any
Finance Document;
	 
	(e)	 	FIFTHLY: in retention of an amount equal to any amount not then due and payable under any
Finance Document but which the Agent, by notice to the Borrowers, the Security Parties and the
other Creditor Parties, states in its opinion will or may become due and payable in the future
and, upon those amounts becoming due and payable, in or towards satisfaction of them in
accordance with the provisions of Clause 17.1(a), (b), (c) and (d);
	 
	(f)	 	SIXTHLY: in or towards satisfaction of any amounts then due and payable under the Master
Agreement which relate to Permitted Transactions; and
	 
	(g)	 	SEVENTHLY: in retention of an amount equal to any amount not then due and payable under the
Master Agreement which relate to Permitted Transactions but which the Swap Bank, by notice to
the Agent, the Borrower and the Security Parties, states in its opinion will or may become due
and payable in the future and, upon those amounts becoming due and payable, in or towards
satisfaction of them in accordance with the provisions of Clause 17.1(f); and

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	(h)	 	EIGHTHLY: any surplus shall be paid to the Borrowers or to any other person appearing to be
entitled to it.
	 
	17.2	 	Variation of order of application. The Agent may, with the authorisation of the Majority
Lenders, by notice to the Borrowers, the Security Parties and the other Creditor Parties
provide for a different manner of application from that set out in Clause 17.1 either as
regards a specified sum or sums or as regards sums in a specified category or categories.
	 
	17.3	 	Notice of variation of order of application. The Agent may give notices under Clause 17.2
from time to time; and such a notice may be stated to apply not only to sums which may be
received or recovered in the future, but also to any sum which has been received or recovered
on or after the third Business Day before the date on which the notice is served.
	 
	17.4	 	Appropriation rights overridden. This Clause 17 and any notice which the Agent gives under
Clause 17.2 shall override any right of appropriation possessed, and any appropriation made,
by any Borrower or any Security Party.
	 
	18	 	APPLICATION OF EARNINGS; SWAP PAYMENTS
	 
	18.1	 	Payment of Earnings and swap payments. Each Borrower undertakes with each Creditor Party to
ensure that, throughout the Security Period:
	 
	(a)	 	(subject only to the provisions of the General Assignments) all the Earnings of each Ship are
paid to the Earnings Account in the name of that Borrower; and
	 
	(b)	 	all payments by the Swap Bank to the Borrowers under each Permitted Transaction are paid to
the Retention Accounts.
	 
	18.2	 	Monthly retentions. The Borrowers undertake with each Creditor Party to ensure that, in
respect of each Tranche, in each calendar month of the Security Period after the Ship to which
the Tranche in question relates has been delivered to the relevant Borrower under the relevant
Shipbuilding Contract, on such dates as the Agent may from time to time specify, there is
transferred to the relevant Retention Account out of the Earnings of that Ship received in the
relevant Earnings Account during the preceding calendar month:
	 
	(a)	 	one-third of the amount of the repayment instalment relative to the Tranche in question
falling due under Clause 8 on the next Repayment Date relative to that Tranche; and
	 
	(b)	 	the relevant fraction of the aggregate amount of interest on the Tranche which is payable on
the next due date for payment of interest under this Agreement (reduced by the amount of any
payment from the Swap Bank due to the Borrowers in respect of Permitted Transactions on the
same date); and
	 
	(c)	 	the relevant fraction of the amount which is payable by the Borrowers to the Swap Bank in
respect of each continuing Permitted Transaction on the next due date for payment of such
amount under the relevant Confirmation.
	 
	 	 	The “relevant fraction”, in relation to paragraph (b), is a fraction of which the numerator
is 1 and the denominator the number of months comprised in the then current Interest Period
relative to that Tranche (or, if the period is shorter, the number of months from the later
of the commencement of the current Interest Period relative to that Tranche or the last due
date for payment of interest to the next due date for payment of interest under this
Agreement) and, in relation to paragraph (c), is a fraction of which the numerator is one
and the denominator is the number of months between fixed rate payments specified in the
relevant Confirmation.

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	18.3	 	Shortfall in Earnings. If the aggregate Earnings received in the Earnings Accounts are
insufficient in any month for the required amount to be transferred to the Retention Accounts
under Clause 18.2, the Borrowers shall make up the amount of the insufficiency on demand from
the Agent; but, without thereby prejudicing the Agent’s right to make such demand at any time,
the Agent may, if so authorised by the Majority Lenders, permit the Borrowers to make up all
or part of the insufficiency by increasing the amount of any transfer under Clause 18.2 from
the Earnings received in the next or subsequent months.
	 
	18.4	 	Application of retentions. Until an Event of Default or a Potential Event of Default occurs,
the Agent shall on each Repayment Date and on each due date for the payment of interest under
this Agreement distribute to the Lenders in accordance with Clause 16.4 so much of the then
balance on the Retention Accounts as equals:
	 
	(a)	 	the repayment instalment due on that Repayment Date; or
	 
	(b)	 	the amount of interest payable on that interest payment date;
	 
	 	 	in discharge of the Borrowers’ liability for that repayment instalment or that interest.
	 
	18.5	 	Interest accrued on Retention Accounts. Any credit balance on each Retention Account shall
bear interest at the rate from time to time offered by the Agent to its customers for Dollar
deposits of similar amounts and for periods similar to those for which such balances appear to
the Agent likely to remain on that Retention Account. Interest on each Retention Account
shall be credited to the relevant Retention Account but shall not be released to the Borrowers
until the end of the Security Period.
	 
	18.6	 	Location of accounts. Each Borrower shall promptly:
	 
	(a)	 	comply with any requirement of the Agent as to the location or re-location of the Earnings
Accounts and the Retention Accounts (or any of them);
	 
	(b)	 	execute (or procure the execution of) any documents which the Agent specifies to create or
maintain in favour of the Security Trustee a Security Interest over (and/or rights of set-off,
consolidation or other rights in relation to) the Earnings Accounts and the Retention Accounts
(or any of them).
	 
	18.7	 	Debits for expenses etc. The Agent shall be entitled (but not obliged) from time to time to
debit either Earnings Account or either Retention Account without prior notice in order to
discharge any amount due and payable under Clause 20 or 21 to a Creditor Party or payment of
which any Creditor Party has become entitled to demand under Clause 20 or 21.
	 
	18.8	 	Borrowers’ obligations unaffected. The provisions of this Clause 18 (as distinct from a
distribution effected under Clause 18.4) do not affect:
	 
	(a)	 	the liability of the Borrowers to make payments of principal and interest on the due dates;
or
	 
	(b)	 	any other liability or obligation of the Borrowers or any Security Party under any Finance
Document.
	 
	19	 	EVENTS OF DEFAULT
	 
	19.1	 	Events of Default. An Event of Default occurs if:
	 
	(a)	 	a Relevant Person fails to pay when due or (if so payable) on demand any sum payable under a
Finance Document or under any document relating to a Finance Document or under the Master
Agreement; or

45

 

	(b)	 	any breach occurs of Clause 9.2, 11.2, 11.3, 11.22, 12.2 , 12.3 12.4, 13.2, 13.3 or 15.2 or
of clauses 11.13 or 11.16 of the Corporate Guarantee; or
	 
	(c)	 	any breach by a Relevant Person occurs of any provision of a Finance Document (other than a
breach covered by paragraphs (a) or (b)) if, in the opinion of the Majority Lenders, such
default is capable of remedy, and such default continues unremedied 10 days after written
notice from the Agent requesting action to remedy the same; or
	 
	(d)	 	(subject to any applicable grace period specified in the Finance Document) any breach by a
Relevant Person occurs of any provision of a Finance Document (other than a breach covered by
paragraphs (a), (b) or (c)); or
	 
	(e)	 	any representation, warranty or statement made or repeated by, or by an officer of, a
Relevant Person in a Finance Document or in a Drawdown Notice or any other notice or document
relating to a Finance Document is untrue or misleading when it is made or repeated; or
	 
	(f)	 	any of the following occurs in relation to any Financial Indebtedness of a Relevant Person:

	 	(i)	 	any such Financial Indebtedness of a Relevant Person is not paid when due or,
if so payable, on demand; or
	 
	 	(ii)	 	any such Financial Indebtedness of a Relevant Person becomes due and payable or
capable of being declared due and payable prior to its stated maturity date as a
consequence of any event of default; or
	 
	 	(iii)	 	a lease, hire purchase agreement or charter creating any such Financial
Indebtedness of a Relevant Person is terminated by the lessor or owner or becomes
capable of being terminated as a consequence of any termination event; or
	 
	 	(iv)	 	any overdraft, loan, note issuance, acceptance credit, letter of credit,
guarantee, foreign exchange or other facility, or any swap or other derivative contract
or transaction, relating to any such Financial Indebtedness of a Relevant Person ceases
to be available or becomes capable of being terminated as a result of any event of
default, or cash cover is required, or becomes capable of being required, in respect of
such a facility as a result of any event of default; or
	 
	 	(v)	 	any Security Interest securing any such Financial Indebtedness of a Relevant
Person becomes enforceable; or

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

	 	(i)	 	a Relevant Person becomes, in the reasonable opinion of the Majority Lenders,
unable to pay its debts as they fall due; or
	 
	 	(ii)	 	any assets of a Relevant Person are subject to any form of execution,
attachment, arrest, sequestration or distress; or
	 
	 	(iii)	 	any administrative or other receiver is appointed over any asset of a Relevant
Person; or
	 
	 	(iv)	 	an administrator is appointed (whether by the court or otherwise) in respect of
a Relevant Person; or
	 
	 	(v)	 	any formal declaration of bankruptcy or any formal statement to the effect that
a Relevant Person is insolvent or likely to become insolvent is made by a Relevant

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	 	 	 	Person or by the directors of a Relevant Person or, in any proceedings, by a lawyer
acting for a Relevant Person; or
	 
	 	(vi)	 	a provisional liquidator is appointed in respect of a Relevant Person, a
winding up order is made in relation to a Relevant Person or a winding up resolution is
passed by a Relevant Person; or
	 
	 	(vii)	 	a resolution is passed, an administration notice is given or filed, an
application or petition to a court is made or presented or any other step is taken by
(aa) a Relevant Person, (bb) the members or directors of a Relevant Person, (cc) a
holder of Security Interests which together relate to all or substantially all of the
assets of a Relevant Person, or (dd) a government minister or public or regulatory
authority of a Pertinent Jurisdiction for or with a view to the winding up of that or
another Relevant Person or the appointment of a provisional liquidator or administrator
in respect of that or another Relevant Person, or that or another Relevant Person
ceasing or suspending business operations or payments to creditors, save that this
paragraph does not apply to a fully solvent winding up of a Relevant Person other than
a Borrower or the Corporate Guarantor which is, or is to be, effected for the purposes
of an amalgamation or reconstruction previously approved by the Majority Lenders and
effected not later than 3 months after the commencement of the winding up; or
	 
	 	(viii)	 	an administration notice is given or filed, an application or petition to a court is
made or presented or any other step is taken by a creditor of a Relevant Person (other
than a holder of Security Interests which together relate to all or substantially all
of the assets of a Relevant Person) for the winding up of a Relevant Person or the
appointment of a provisional liquidator or administrator in respect of a Relevant
Person in any Pertinent Jurisdiction, unless the proposed winding up, appointment of a
provisional liquidator or administration is being contested in good faith, on
substantial grounds and not with a view to some other insolvency law procedure being
implemented instead and either (aa) the application or petition is dismissed or
withdrawn within 30 days of being made or presented, or (bb) within 30 days of the
administration notice being given or filed, or the other relevant steps being taken,
other action is taken which will ensure that there will be no administration and (in
both cases (aa) or (bb)) the Relevant Person will continue to carry on business in the
ordinary way and without being the subject of any actual, interim or pending insolvency
law procedure; or
	 
	 	(ix)	 	a Relevant Person or its directors take any steps (whether by making or
presenting an application or petition to a court, or submitting or presenting a
document setting out a proposal or proposed terms, or otherwise) with a view to
obtaining, in relation to that or another Relevant Person, any form of moratorium,
suspension or deferral of payments, reorganisation of debt (or certain debt) or
arrangement with all or a substantial proportion (by number or value) of creditors or
of any class of them or any such moratorium, suspension or deferral of payments,
reorganisation or arrangement is effected by court order, by the filing of documents
with a court, by means of a contract or in any other way at all; or
	 
	 	(x)	 	any meeting of the members or directors, or of any committee of the board or
senior management, of a Relevant Person is held or summoned for the purpose of
considering a resolution or proposal to authorise or take any action of a type
described in paragraphs (iv) to (ix) or a step preparatory to such action, or (with or
without such a meeting) the members, directors or such a committee resolve or agree
that such an action or step should be taken or should be taken if certain conditions
materialise or fail to materialise; or

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

	(h)	 	a Relevant Person ceases or suspends carrying on its business or a part of its business
which, in the opinion of the Majority Lenders, is material in the context of this Agreement
and/or the Corporate Guarantee; or

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

	 	(i)	 	for a Relevant Person to discharge any liability under a Finance Document to
which it is a party or to comply with any other obligation which the Majority Lenders
consider material under a Finance Document to which it is a party; or
	 
	 	(ii)	 	for a Creditor Party to exercise or enforce any right under, or to enforce any
Security Interest created by, a Finance Document; or

	(j)	 	any consent necessary to enable any Borrower to own, operate or charter the Ship owned by it
(following that Ship’s delivery to that Borrower) or to enable a Relevant Person to comply
with any provision which the Majority Lenders consider material of a Finance Document or a
Shipbuilding Contract is not granted, expires without being renewed, is revoked or becomes
liable to revocation or any condition of such a consent is not fulfilled; or
	 
	(k)	 	either Borrower ceases to be a wholly-owned subsidiary of the Corporate Guarantor; or
	 
	(l)	 	the Corporate Guarantor (without the prior written consent of all of the Lenders) ceases to
be a listed company on NASDAQ or other stock exchange acceptable to the Agent; or
	 
	(m)	 	the legal and beneficial shareholding of the AMT Purchaser in the Corporate Guarantor falls
below 10 per cent. of the voting share capital of the Corporate Guarantor; or
	 
	(n)	 	the legal and beneficial shareholdings of Michael Zolotas and Nicholas Fistes together in the
AMT Purchaser falls below 50.1 per cent. of the voting share capital of the AMT Purchaser; or
	 
	(o)	 	any provision which the Majority Lenders consider material of a Finance Document proves to
have been or becomes invalid or unenforceable, or a Security Interest created by a Finance
Document proves to have been or becomes invalid or unenforceable or such a Security Interest
proves to have ranked after, or loses its priority to, another Security Interest or any other
third party claim or interest; or
	 
	(p)	 	the security constituted by a Finance Document is in any way imperilled or in jeopardy; or
	 
	(q)	 	without limitation to the generality of the foregoing provisions of this Clause 19.1, any
Permitted Charter is terminated; or
	 
	(r)	 	without limitation to the generality of the foregoing provisions of this Clause 19.1, any
breach occurs which is material (in the opinion of the Agent acting on the instructions of
the Majority Lenders) of the terms and conditions of the terms relating to the issue and
acquisition of the Bonds and/or a repurchase of any notes at the option of the holders
occurs under article 14 of the indenture dated 13 October 2009 relating to the Bonds or as a
result of a Fundamental Change (as that term is defined in said indenture);
	 
	(s)	 	any management agreement in relation to a Ship made between the relevant Borrower and the
Approved Manager is terminated without the prior written consent of the Lenders;

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	(t)	 	without limitation to the generality of the foregoing provisions of this Clause 19.1, either
Ship is arrested or otherwise detained and is not released from such arrest or detention
within 30 days;
	 
	(u)	 	any other event occurs or any other circumstances arise or develop including, without
limitation:

	 	(i)	 	an adverse change in the financial position, state of affairs or prospects of
any Relevant Person; or
	 
	 	(ii)	 	any accident or other event involving any Ship or another vessel owned,
chartered or operated by a Relevant Person;

	 	 	in the light of which the Majority Lenders consider that there is a significant risk that
any of the Borrowers or the Corporate Guarantors is, or will later become, unable to
discharge its liabilities under the Finance Documents and the Master Agreement as they fall
due.
	 
	19.2	 	Actions following an Event of Default. On, or at any time after, the occurrence of an Event
of Default:
	 
	(a)	 	the Agent may, and if so instructed by the Majority Lenders, the Agent shall:

	 	(i)	 	serve on the Borrowers a notice stating that the Commitments and all other
obligations of the Lenders to the Borrowers under this Agreement are terminated; and/or
	 
	 	(ii)	 	serve on the Borrowers a notice stating that the Loan, all accrued interest and
all other amounts accrued or owing under this Agreement are immediately due and payable
or are due and payable on demand; and/or
	 
	 	(iii)	 	take any other action which, as a result of the Event of Default or any notice
served under paragraph (i) or (ii), the Agent and/or the Lenders and/or the Swap Bank
are entitled to take under any Finance Document or any applicable law; and/or

	(b)	 	the Security Trustee may, and if so instructed by the Agent acting with the authorisation of
the Majority Lenders, the Security Trustee shall take any action which, as a result of the
Event of Default or any notice served under paragraph (a) (i) or (ii), the Security Trustee
and/or the Agent and/or the Lenders and/or the Swap Bank are entitled to take under any
Finance Document or any applicable law.
	 
	19.3	 	Termination of Commitments. On the service of a notice under Clause 19.2(a)(i), the
Commitments and all other obligations of each Lender to the Borrowers under this Agreement
shall terminate.
	 
	19.4	 	Acceleration of Loan. On the service of a notice under Clause 19.2(a)(ii), the Loan and all
amounts accrued or owing from the Borrowers or any Security Party under this Agreement and
every other Finance Document shall become immediately due and payable or, as the case may be,
payable on demand.
	 
	19.5	 	Multiple notices; action without notice. The Agent may serve notices under Clauses
19.2(a)(i) or (ii) simultaneously or on different dates and it and/or the Security Trustee may
take any action referred to in Clause 19.2 if no such notice is served or simultaneously with
or at any time after the service of both or either of such notices.
	 
	19.6	 	Notification of Creditor Parties and Security Parties. The Agent shall send to each Lender,
the Swap Bank, the Security Trustee and each Security Party a copy or the text of any notice
which the Agent serves on the Borrowers under Clause 19.2; but the notice

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	 	 	shall become
effective when it is served on the Borrowers, and no failure or delay by the Agent to send a
copy or the text of the notice to any other person shall invalidate the notice or provide any
Borrower or any Security Party with any form of claim or defence.
	 
	19.7	 	Rights unimpaired. Nothing in this Clause 19 shall be taken to impair or restrict the
exercise of any right given to individual Lenders or the Swap Bank under a Finance Document or
given to any of them under the general law; and, in particular, this Clause 19.7 is without
prejudice to Clause 2.1.
	 
	19.8	 	Exclusion of Creditor Party liability. No Creditor Party, and no receiver or manager
appointed by the Security Trustee, shall have any liability to a Borrower or a Security Party:
	 
	(a)	 	for any loss caused by an exercise of rights under, or enforcement of a Security Interest
created by, a Finance Document or by any failure or delay to exercise such a right or to
enforce such a Security Interest; or
	 
	(b)	 	as mortgagee in possession or otherwise, for any income or principal amount which might have
been produced by or realised from any asset comprised in such a Security Interest or for any
reduction (however caused) in the value of such an asset;
	 
	 	 	except that this does not exempt a Creditor Party or a receiver or manager from liability
for losses shown to have been directly and mainly caused by the dishonesty or the wilful
misconduct of such Creditor Party’s own officers and employees or (as the case may be) such
receiver’s or manager’s own partners or employees.
	 
	19.9	 	Interpretation. In Clause 19.1(f) references to an event of default or a termination event
include any event, howsoever described, which is similar to an event of default in a facility
agreement or a termination event in a finance lease; and in Clause 19.1(g) “petition” includes
an application.
	 
	19.10	 	Position of Swap Bank. Neither the Agent nor the Security Trustee shall be obliged, in
connection with any action taken or proposed to be taken under or pursuant to the foregoing
provisions of this Clause 19, to have any regard to the requirements of the Swap Bank except
to the extent that the Swap Bank is also a Lender.
	 
	20	 	FEES AND EXPENSES
	 
	20.1	 	Arrangement, commitment fees. The Borrowers shall pay to the Agent:
	 
	(a)	 	an arrangement fee at the times and of an amount previously agreed in writing between the
Agent and the Borrowers for distribution among the Lenders in the proportions agreed between
the Agent and the Lenders; and
	 
	(b)	 	quarterly in arrears during the period from the date of this Agreement to the earlier of (i)
the final Drawdown Date and (ii) the end of the Availability Period for the account of the
Lenders, a commitment fee at the rate previously agreed in writing between the Agent and the
Borrowers on the undrawn amount of the Total Commitments for distribution among the Lenders
pro rata to their Commitments.
	 
	20.2	 	Costs of negotiation, preparation etc. The Borrowers shall pay to the Agent on its demand
the amount of all expenses incurred by the Agent or the Security Trustee in connection with
the negotiation, preparation, execution or registration of any Finance Document or any related
document or with any transaction contemplated by a Finance Document or a related document.

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	20.3	 	Costs of variations, amendments, enforcement etc. The Borrowers shall pay to the Agent, on
the Agent’s demand, for the account of the Creditor Party concerned the amount of all expenses
incurred by a Creditor Party in connection with:
	 
	(a)	 	any amendment or supplement to a Finance Document, or any proposal for such an amendment to
be made;
	 
	(b)	 	any consent or waiver by the Creditor Party concerned under or in connection with a Finance
Document, or any request for such a consent or waiver;
	 
	(c)	 	the valuation of any security provided or offered under Clause 15 or any other matter
relating to such security; or
	 
	(d)	 	any step taken by the Creditor Party concerned with a view to the protection, exercise or
enforcement of any right or Security Interest created by a Finance Document or for any similar
purpose.
	 
	 	 	There shall be recoverable under paragraph (c) the full amount of all legal expenses,
whether or not such as would be allowed under rules of court or any taxation or other
procedure carried out under such rules.
	 
	20.4	 	Documentary taxes. The Borrowers shall promptly pay any tax payable on or by reference to
any Finance Document, and shall, on the Agent’s demand, fully indemnify each Creditor Party
against any claims, expenses, liabilities and losses resulting from any failure or delay by
the Borrowers to pay such a tax.
	 
	20.5	 	Certification of amounts. A notice which is signed by 2 officers of a Creditor Party, which
states that a specified amount, or aggregate amount, is due to that Creditor Party under this
Clause 20 and which indicates (without necessarily specifying a detailed breakdown) the
matters in respect of which the amount, or aggregate amount, is due shall be prima facie
evidence that the amount, or aggregate amount, is due.
	 
	21	 	INDEMNITIES
	 
	21.1	 	Indemnities regarding borrowing and repayment of Loan. The Borrowers shall fully indemnify
the Agent and each Lender on the Agent’s demand and the Security Trustee on its demand in
respect of all claims, expenses, liabilities and losses which are made or brought against or
incurred by that Creditor Party, or which that Creditor Party reasonably and with due
diligence estimates that it will incur, as a result of or in connection with:
	 
	(a)	 	an Advance not being borrowed on the date specified in the Drawdown Notice for it for any
reason other than a default by the Lender claiming the indemnity;
	 
	(b)	 	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on
the last day of an Interest Period or other relevant period applicable to it;
	 
	(c)	 	any failure (for whatever reason) by the Borrowers to make payment of any amount due under a
Finance Document on the due date or, if so payable, on demand (after giving credit for any
default interest paid by the Borrowers on the amount concerned under Clause 7);
	 
	(d)	 	the occurrence and/or continuance of an Event of Default or a Potential Event of Default
and/or the acceleration of repayment of the Loan under Clause 19;
	 
	 	 	and in respect of any tax (other than tax on its overall net income) for which a Creditor
Party is liable in connection with any amount paid or payable to that Creditor Party
(whether for its own account or otherwise) under any Finance Document.

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	21.2	 	Breakage costs. Without limiting its generality, Clause 21.1 covers any claim, expense,
liability or loss, including a loss of a prospective profit, incurred by a Lender:
	 
	(a)	 	in liquidating or employing deposits from third parties acquired or arranged to fund or
maintain all or any part of its Contribution and/or any overdue amount (or an aggregate amount
which includes its Contribution or any overdue amount); and
	 
	(b)	 	in terminating or otherwise in connection with, any interest and/or currency swap or any
other transaction entered into (whether with another legal entity or with another office or
department of the Lender concerned) to hedge any exposure arising under this Agreement or that
part which the Lender concerned determines is fairly attributable to this Agreement of the
amount of the liabilities, expenses or losses (including losses of prospective profits)
incurred by it in terminating, or otherwise in connection with, a number of transactions of
which this Agreement is one.
	 
	21.3	 	Miscellaneous indemnities. The Borrowers shall fully indemnify each Creditor Party severally
on their respective demands in respect of all claims, expenses, liabilities and losses which
may be made or brought against or incurred by a Creditor Party, in any country, as a result of
or in connection with:
	 
	(a)	 	any action taken, or omitted or neglected to be taken, under or in connection with any
Finance Document by the Agent, the Security Trustee or any other Creditor Party or by any
receiver appointed under a Finance Document; or
	 
	(b)	 	any other Pertinent Matter;
	 
	 	 	other than claims, expenses, liabilities and losses which are shown to have been directly
and mainly caused by the dishonesty or wilful misconduct of the officers or employees of the
Creditor Party concerned.
	 
	 	 	Without prejudice to its generality, this Clause 21.3 covers any claims, expenses,
liabilities and losses which arise, or are asserted, under or in connection with any law
relating to safety at sea, the ISM Code, the ISPS Code or any Environmental Law.
	 
	21.4	 	Currency indemnity. If any sum due from either Borrower or any Security Party to a Creditor
Party under a Finance Document or under any order or judgment relating to a Finance Document
has to be converted from the currency in which the Finance Document provided for the sum to be
paid (the “Contractual Currency”) into another currency (the “Payment Currency”) for the
purpose of:
	 
	(a)	 	making or lodging any claim or proof against either Borrower or any Security Party, whether
in its liquidation, any arrangement involving it or otherwise; or
	 
	(b)	 	obtaining an order or judgment from any court or other tribunal; or
	 
	(c)	 	enforcing any such order or judgment;
	 
	 	 	the Borrowers shall indemnify the Creditor Party concerned against the loss arising when the
amount of the payment actually received by that Creditor Party is converted at the available
rate of exchange into the Contractual Currency.
	 
	 	 	In this Clause 21.4, the “available rate of exchange” means the rate at which the Creditor
Party concerned is able at the opening of business (London time) on the Business Day after
it receives the sum concerned to purchase the Contractual Currency with the Payment
Currency.

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	 	 	This Clause 21.4 creates a separate liability of the Borrowers which is distinct from their
other liabilities under the Finance Documents and which shall not be merged in any judgment
or order relating to those other liabilities.
	 
	21.5	 	Application to Master Agreement. For the avoidance of doubt, Clause 21.4 does not apply in
respect of sums due from the Borrowers to the Swap Bank under or in connection with the Master
Agreement as to which sums the relevant provisions of the Master Agreement shall apply.
	 
	21.6	 	Certification of amounts. A notice which is signed by 2 officers of a Creditor Party, which
states that a specified amount, or aggregate amount, is due to that Creditor Party under this
Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the
matters in respect of which the amount, or aggregate amount, is due shall be prima facie
evidence that the amount, or aggregate amount, is due.
	 
	21.7	 	Sums deemed due to a Lender. For the purposes of this Clause 21 a sum payable by the
Borrowers to the Agent or the Security Trustee for distribution to a Lender shall be treated
as a sum due to that Lender.
	 
	22	 	NO SET-OFF OR TAX DEDUCTION
	 
	22.1	 	No deductions. All amounts due from the Borrowers under a Finance Document shall be paid:
	 
	(a)	 	without any form of set-off, cross-claim or condition; and
	 
	(b)	 	free and clear of any tax deduction except a tax deduction which a Borrower is required by
law to make.
	 
	22.2	 	Grossing-up for taxes. If a Borrower is required by law to make a tax deduction from any
payment:
	 
	(a)	 	that Borrower shall notify the Agent as soon as it becomes aware of the requirement;
	 
	(b)	 	that Borrower shall pay the tax deducted to the appropriate taxation authority promptly, and
in any event before any fine or penalty arises;
	 
	(c)	 	the amount due in respect of the payment shall be increased by the amount necessary to ensure
that each Creditor Party receives and retains (free from any liability relating to the tax
deduction) a net amount which, after the tax deduction, is equal to the full amount which it
would otherwise have received.
	 
	22.3	 	Evidence of payment of taxes. Within 1 month after making any tax deduction, the Borrower
concerned shall deliver to the Agent documentary evidence satisfactory to the Agent that the
tax had been paid to the appropriate taxation authority.
	 
	22.4	 	Exclusion of tax on overall net income. In this Clause 22 “tax deduction” means any
deduction or withholding for or on account of any present or future tax except tax on a
Creditor Party’s overall net income.
	 
	22.5	 	Tax credit. A Creditor Party which receives for its own account a repayment or credit in
respect of tax on account of which a Borrower has made an increased payment under Clause 22.2
shall pay to that Borrower a sum equal to the proportion of the repayment or
credit which that Creditor Party allocates to the amount due from that Borrower in respect
of which that Borrower made the increased payment:
	 
	(a)	 	the Creditor Party shall not be obliged to allocate to this transaction any part of a tax
repayment or credit which is referable to a class or number of transactions;

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	(b)	 	nothing in this Clause 22.5 shall oblige a Creditor Party to arrange its tax affairs in any
particular manner, to claim any type of relief, credit, allowance or deduction instead of, or
in priority to, another or to make any such claim within any particular time;
	 
	(c)	 	nothing in this Clause 22.5 shall oblige a Creditor Party to make a payment which would leave
it in a worse position than it would have been in if the Borrower concerned had not been
required to make a tax deduction from a payment; and
	 
	(d)	 	any allocation or determination made by a Creditor Party under or in connection with this
Clause 22.5 shall be conclusive and binding on the Borrowers and the other Creditor Parties.
	 
	22.6	 	Application to Master Agreement. For the avoidance of doubt, Clause 22 does not apply in
respect of sums due from the Borrowers to the Swap Bank under or in connection with the Master
Agreement as to which sums the provisions of section 2(d) (Deducting or Withholding for Tax)
of that Master Agreement shall apply.
	 
	23	 	ILLEGALITY, ETC
	 
	23.1	 	Illegality. This Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent
that it has become, or will with effect from a specified date, become:
	 
	(a)	 	unlawful or prohibited as a result of the introduction of a new law, an amendment to an
existing law or a change in the manner in which an existing law is or will be interpreted or
applied; or
	 
	(b)	 	contrary to, or inconsistent with, any regulation,
	 
	 	 	for the Notifying Lender to maintain or give effect to any of its obligations under this
Agreement in the manner contemplated by this Agreement.
	 
	23.2	 	Notification of illegality. The Agent shall promptly notify the Borrowers, the Security
Parties, the Security Trustee and the other Lenders of the notice under Clause 23.1 which the
Agent receives from the Notifying Lender.
	 
	23.3	 	Effect of illegality. On the Agent notifying the Borrower under Clause 23.2:
	 
	(a)	 	the Notifying Lender’s Commitment shall terminate; and
	 
	(b)	 	thereupon or, if later, on the date specified in the Notifying Lender’s notice under Clause
23.1 as the date on which the notified event would become effective the Borrowers shall prepay
the Notifying Lender’s Contribution in accordance with Clause 8.
	 
	23.4	 	Mitigation. If circumstances arise which would result in a notification under Clause 23.1
then, without in any way limiting the rights of the Notifying Lender under Clause 23.3, the
Notifying Lender shall use reasonable endeavours to transfer its obligations, liabilities and
rights under this Agreement and the Finance Documents to another office or financial
institution not affected by the circumstances but the Notifying Lender shall not be under any
obligation to take any such action if, in its opinion, to do would or might:
	 
	(a)	 	have an adverse effect on its business, operations or financial condition; or
	 
	(b)	 	involve it in any activity which is unlawful or prohibited or any activity that is contrary
to, or inconsistent with, any regulation; or
	 
	(c)	 	involve it in any expense (unless indemnified to its satisfaction) or tax disadvantage.
	 
	24	 	INCREASED COSTS

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	24.1	 	Increased costs. This Clause 24 applies if a Lender (the “Notifying Lender”) notifies the
Agent that the Notifying Lender considers that as a result of:
	 
	(a)	 	the introduction or alteration after the date of this Agreement of a law or an alteration
after the date of this Agreement in the manner in which a law is interpreted or applied
(disregarding any effect which relates to the application to payments under this Agreement of
a tax on the Notifying Lender’s overall net income); or
	 
	(b)	 	complying with any regulation (including any which relates to capital adequacy or liquidity
controls or which affects the manner in which the Notifying Lender allocates capital resources
to its obligations under this Agreement) which is introduced, or altered, or the
interpretation or application of which is altered, after the date of this Agreement,
	 
	 	 	the Notifying Lender (or a parent company of it) has incurred or will incur an “increased
cost”.
	 
	24.2	 	Meaning of “increased cost”. In this Clause 24, “increased cost” means, in relation to a
Notifying Lender:
	 
	(a)	 	an additional or increased cost incurred as a result of, or in connection with, the Notifying
Lender having entered into, or being a party to, this Agreement or a Transfer Certificate, of
funding or maintaining its Commitment or its Contribution or performing its obligations under
this Agreement, or of having outstanding all or any part of its Contribution or other unpaid
sums;
	 
	(b)	 	a reduction in the amount of any payment to the Notifying Lender under this Agreement or in
the effective return which such a payment represents to the Notifying Lender or on its
capital;
	 
	(c)	 	an additional or increased cost of funding all or maintaining all or any of the advances
comprised in a class of advances formed by or including the Notifying Lender’s Contribution or
the proportion of that cost attributable to its Contribution; or
	 
	(d)	 	a liability to make a payment, or a return foregone, which is calculated by reference to any
amounts received or receivable by the Notifying Lender under this Agreement;
	 
	 	 	but not an item attributable to a change in the rate of tax on the overall net income of the
Notifying Lender (or a parent company of it) or an item covered by the indemnity for tax in
Clause 21.1 or by Clause 22.
	 
	 	 	Any item arising from matters set out in the Basle II Accord in the form finally implemented
by the applicable authorities shall be included to the extent and according to the timetable
provided for.
	 
	 	 	For the purposes of this Clause 24.2, the Notifying Lender may in good faith allocate or
spread costs and/or losses among its assets and liabilities (or any class of its assets and
liabilities) on such basis as it considers appropriate.
	 
	24.3	 	Notification to Borrowers of claim for increased costs. The Agent shall promptly notify the
Borrowers and the Security Parties of the notice which the Agent received from the Notifying
Lender under Clause 24.1.
	 
	24.4	 	Payment of increased costs. The Borrowers shall pay to the Agent, on the Agent’s demand, for
the account of the Notifying Lender the amounts which the Agent from time to time notifies the
Borrowers that the Notifying Lender has specified to be necessary to compensate the Notifying
Lender for the increased cost.

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	24.5	 	Notice of prepayment. If the Borrowers are not willing to continue to compensate the
Notifying Lender for the increased cost under Clause 24.4, the Borrowers may give the Agent
not less than 14 days’ notice of its intention to prepay the Notifying Lender’s Contribution.
	 
	24.6	 	Prepayment; termination of Commitment. A notice under Clause 24.5 shall be irrevocable; the
Agent shall promptly notify the Notifying Lender of the Borrowers’ notice of intended
prepayment; and:
	 
	(a)	 	on the date on which the Agent serves that notice, the Commitment of the Notifying Lender
shall be cancelled; and
	 
	(b)	 	on the date specified in its notice of intended prepayment, the Borrowers shall prepay
(without premium or penalty) the Notifying Lender’s Contribution, together with accrued
interest thereon at the applicable rate plus the Margin plus the Mandatory Cost (if any).
	 
	24.7	 	Application of prepayment. Clause 8 shall apply in relation to the prepayment.
	 
	25	 	SET-OFF
	 
	25.1	 	Application of credit balances. Each Creditor Party may without prior notice:
	 
	(a)	 	apply any balance (whether or not then due) which at any time stands to the credit of any
account in the name of the Borrowers (or either of them) at any office in any country of that
Creditor Party in or towards satisfaction of any sum then due from the Borrowers (or either of
them) to that Creditor Party under any of the Finance Documents; and
	 
	(b)	 	for that purpose:

	 	(i)	 	break, or alter the maturity of, all or any part of a deposit of the Borrowers
(or either of them);
	 
	 	(ii)	 	convert or translate all or any part of a deposit or other credit balance into
Dollars;
	 
	 	(iii)	 	enter into any other transaction or make any entry with regard to the credit
balance which the Creditor Party concerned considers appropriate.

	25.2	 	Existing rights unaffected. No Creditor Party shall be obliged to exercise any of its rights
under Clause 25.1; and those rights shall be without prejudice and in addition to any right of
set-off, combination of accounts, charge, lien or other right or remedy to which a Creditor
Party is entitled (whether under the general law or any document).
	 
	25.3	 	Sums deemed due to a Lender. For the purposes of this Clause 25, a sum payable by the
Borrowers to the Agent or the Security Trustee for distribution to, or for the account of, a
Lender shall be treated as a sum due to that Lender; and each Lender’s proportion of a sum so
payable for distribution to, or for the account of, the Lenders shall be treated as a sum due
to such Lender.
	 
	25.4	 	No Security Interest. This Clause 25 gives the Creditor Parties a contractual right of
set-off only and does not create any equitable charge or other Security Interest over any
credit balance of any Borrower.
	 
	26	 	TRANSFERS AND CHANGES IN LENDING OFFICES
	 
	26.1	 	Transfer by Borrowers. Neither Borrower may, without the consent of the Agent, given on the
instruction of all the Lenders, transfer any of its rights, liabilities or obligations under
any Finance Document.

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	26.2	 	Transfer by a Lender. Subject to Clause 26.4 a Lender (the “Transferor Lender”) may at any
time, without needing the consent of either Borrower or any Security Party cause:
	 
	(a)	 	its rights in respect of all or part of its Contribution (being a minimum of $1,000,000 or a
higher integral multiple of $500,000); or
	 
	(b)	 	its obligations in respect of all or part of its Commitment (being a minimum of $1,000,000 or
a higher integral multiple of $500,000); or
	 
	(c)	 	a combination of (a) and (b);
	 
	 	 	to be (in the case of its rights) transferred to, or (in the case of its obligations)
assumed by, another bank or financial institution or a trust, fund or other entity which is
regularly engaged in or established for the purpose of making, purchasing or investing in
loans, securities or financial assets (a “Transferee Lender”) by delivering to the Agent a
completed certificate in the form set out in Schedule 4 with any modifications approved or
required by the Agent (a “Transfer Certificate”) executed by the Transferor Lender and the
Transferee Lender.
	 
	 	 	However any rights and obligations of the Transferor Lender in its capacity as Agent or
Security Trustee will have to be dealt with separately in accordance with the Agency and
Trust Deed.
	 
	26.3	 	Transfer Certificate, delivery and notification. As soon as reasonably practicable after a
Transfer Certificate is delivered to the Agent, it shall (unless it has reason to believe that
the Transfer Certificate may be defective):
	 
	(a)	 	sign the Transfer Certificate on behalf of itself, the Borrowers, the Security Parties, the
Security Trustee, each of the other Lenders and the Swap Bank;
	 
	(b)	 	on behalf of the Transferee Lender, send to each Borrower and each Security Party letters or
faxes notifying them of the Transfer Certificate and attaching a copy of it; and
	 
	(c)	 	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b) above,
	 
	 	 	but the Agent shall only be obliged to execute a Transfer Certificate delivered to it by the
Transferor Lender and the Transferee Lender once it is satisfied it has complied with all
necessary “know your customer” or other similar checks under all applicable laws and
regulations in relation to the transfer to that Transferee Lender.
	 
	26.4	 	Effective Date of Transfer Certificate. A Transfer Certificate becomes effective on the
date, if any, specified in the Transfer Certificate as its effective date Provided that it is
signed by the Agent under Clause 26.3 on or before that date.
	 
	26.5	 	No transfer without Transfer Certificate. Except as provided in Clause 26.16, no assignment
or transfer of any right or obligation of a Lender under any Finance Document is binding on,
or effective in relation to, either Borrower, any Security Party, the Agent or the Security
Trustee unless it is effected, evidenced or perfected by a Transfer Certificate.
	 
	26.6	 	Lender re-organisation; waiver of Transfer Certificate. However, if a Lender enters into any
merger, de-merger or other reorganisation as a result of which all its rights or obligations
vest in another person (the “successor”), the Agent may, if it sees fit, by notice to the
successor and the Borrowers and the Security Trustee waive the need for the execution and
delivery of a Transfer Certificate; and, upon service of the Agent’s notice, the successor
shall become a Lender with the same Commitment and Contribution as were held by the
predecessor Lender.

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	26.7	 	Effect of Transfer Certificate. A Transfer Certificate takes effect in accordance with
English law as follows:
	 
	(a)	 	to the extent specified in the Transfer Certificate, all rights and interests (present,
future or contingent) which the Transferor Lender has under or by virtue of the Finance
Documents are assigned to the Transferee Lender absolutely, free of any defects in the
Transferor Lender’s title and of any rights or equities which any Borrower or any Security
Party had against the Transferor Lender;
	 
	(b)	 	the Transferor Lender’s Commitment is discharged to the extent specified in the Transfer
Certificate;
	 
	(c)	 	the Transferee Lender becomes a Lender with the Contribution previously held by the
Transferor Lender and a Commitment of an amount specified in the Transfer Certificate;
	 
	(d)	 	the Transferee Lender becomes bound by all the provisions of the Finance Documents which are
applicable to the Lenders generally, including those about pro-rata sharing and the exclusion
of liability on the part of, and the indemnification of, the Agent and the Security Trustee
and, to the extent that the Transferee Lender becomes bound by those provisions (other than
those relating to exclusion of liability), the Transferor Lender ceases to be bound by them;
	 
	(e)	 	any part of the Loan which the Transferee Lender advances after the Transfer Certificate’s
effective date ranks in point of priority and security in the same way as it would have ranked
had it been advanced by the Transferor Lender, assuming that any defects in the Transferor
Lender’s title and any rights or equities of either Borrower or any Security Party against the
Transferor Lender had not existed;
	 
	(f)	 	the Transferee Lender becomes entitled to all the rights under the Finance Documents which
are applicable to the Lenders generally, including but not limited to those relating to the
Majority Lenders and those under Clause 5.7 and Clause 20, and to the extent that the
Transferee Lender becomes entitled to such rights, the Transferor Lender ceases to be entitled
to them; and
	 
	(g)	 	in respect of any breach of a warranty, undertaking, condition or other provision of a
Finance Document or any misrepresentation made in or in connection with a Finance Document,
the Transferee Lender shall be entitled to recover damages by reference to the loss incurred
by it as a result of the breach or misrepresentation, irrespective of whether the original
Lender would have incurred a loss of that kind or amount.
	 
	 	 	The rights and equities of either Borrower or any Security Party referred to above include,
but are not limited to, any right of set off and any other kind of cross-claim.
	 
	26.8	 	Maintenance of register of Lenders. During the Security Period, the Agent shall maintain a
register in which it shall record the name, Commitment, Contribution and administrative
details (including the lending office) from time to time of each Lender holding a Transfer
Certificate and the effective date (in accordance with Clause 26.4) of the Transfer
Certificate; and the Agent shall make the register available for inspection by any Lender, the
Security Trustee and the Borrowers during normal banking hours, subject to receiving at least
3 Business Days prior notice.
	 
	26.9	 	Reliance on register of Lenders. The entries on that register shall, in the absence of
manifest error, be conclusive in determining the identities of the Lenders and the amounts of
their Commitments and Contributions and the effective dates of Transfer Certificates and may
be relied upon by the Agent and the other parties to the Finance Documents for all purposes
relating to the Finance Documents.

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	26.10	 	Authorisation of Agent to sign Transfer Certificates. Each Borrower, the Security Trustee,
each Lender and the Swap Bank irrevocably authorises the Agent to sign Transfer Certificates
on its behalf.
	 
	26.11	 	Registration fee. In respect of any Transfer Certificate, the Agent shall be entitled to
recover a registration fee of $3,000 from the Transferor Lender or (at the Agent’s option) the
Transferee Lender.
	 
	26.12	 	Sub-participation; subrogation assignment. A Lender may sub-participate all or any part of
its rights and/or obligations under or in connection with the Finance Documents without the
consent of, or any notice to, either Borrower, any Security Party or any other Creditor Party;
and the Lenders may assign in any manner and terms agreed by the Majority Lenders, the Agent
and the Security Trustee, all or any part of those rights to an insurer or surety which has
become subrogated to them.
	 
	26.13	 	Change of lending office. A Lender may change its lending office by giving notice to the
Agent and the change shall become effective on the later of:
	 
	(a)	 	the date on which the Agent receives the notice; and
	 
	(b)	 	the date, if any, specified in the notice as the date on which the change will come into
effect.
	 
	26.14	 	Notification. On receiving such a notice, the Agent shall notify the Borrowers and the
Security Trustee; and, until the Agent receives such a notice, it shall be entitled to assume
that a Lender is acting through the lending office of which the Agent last had notice.
	 
	26.15	 	Replacement of Reference Bank. If any Reference Bank ceases to be a Lender or is unable on
a continuing basis to supply quotations for the purposes of Clause 5 then, unless the
Borrowers, the Agent and the Majority Lenders otherwise agree, the Agent, acting on the
instructions of the Majority Lenders, and after consulting the Borrowers, shall appoint
another bank (whether or not a Lender) to be a replacement Reference Bank; and, when that
appointment comes into effect, the first-mentioned Reference Bank’s appointment shall cease to
be effective.
	 
	26.16	 	Security over Lenders’ rights. In addition to the other rights provided to the Lenders
under this Clause 26, each Lender may without consulting with or obtaining consent from either
Borrower or any Security Party, at any time charge, assign or otherwise create a Security
Interest in or over (whether by way of collateral or otherwise) all or any of its rights under
any Finance Document to secure obligations of that Lender including, without limitation:
	 
	(a)	 	any charge, assignment or other Security Interest to secure obligations to a federal reserve
or central bank; and
	 
	(b)	 	in the case of any Lender which is a fund, any charge, assignment or other Security Interest
granted to any holders (or trustee or representatives of holders) of obligations owed, or
securities issued, by that Lender as security for those obligations or securities;
	 
	 	 	except that no such charge, assignment or Security Interest shall:

	 	(i)	 	release a Lender from any of its obligations under the Finance Documents or
substitute the beneficiary of the relevant charge, assignment or Security Interest for
the Lender as a party to any of the Finance Documents; or
	 
	 	(ii)	 	require any payments to be made by either Borrower or any Security Party or
grant to any person any more extensive rights than those required to be made or granted
to the relevant Lender under the Finance Documents.

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	27	 	CONFIDENTIALITY
	 
	27.1	 	Confidential Information. Each Creditor Party agrees to keep all Confidential Information
confidential and not to disclose it to anyone, save to the extent permitted by Clauses 27.2
and 27.3, and to ensure that all Confidential Information is protected with security measures
and a degree of care that would apply to its own confidential information.
	 
	27.2	 	Disclosure of Confidential Information. Any Creditor Party may disclose:
	 
	(a)	 	to any of its Affiliates and Related Funds and any of its or their officers, directors,
employees, professional advisers, auditors, partners and Representatives such Confidential
Information as that Creditor Party shall consider appropriate if any person to whom the
Confidential Information is to be given pursuant to this paragraph (a) is informed in writing
of its confidential nature and that some or all of such Confidential Information may be
price-sensitive information except that there shall be no such requirement to so inform if the
recipient is subject to professional obligations to maintain the confidentiality of the
information or is otherwise bound by requirements of confidentiality in relation to the
Confidential Information;
	 
	(b)	 	to any person:

	 	(i)	 	to (or through) whom it assigns or transfers (or may potentially assign or
transfer) all or any of its rights and/or obligations under one or more Finance
Documents and/or the Master Agreement and to any of that person’s Affiliates, Related
Funds, Representatives and professional advisers;
	 
	 	(ii)	 	with (or through) whom it enters into (or may potentially enter into), whether
directly or indirectly, any sub-participation in relation to, or any other transaction
under which payments are to be made or may be made by reference to, one or more Finance
Documents and/or the Master Agreement and/or either Borrower and/or any Security Party
and to any of that person’s Affiliates, Related Funds, Representatives and professional
advisers;
	 
	 	(iii)	 	appointed by any Creditor Party or by a person to whom paragraph (b)(i) or
(ii) above applies to receive communications, notices, information or documents
delivered pursuant to the Finance Documents and/or the Master Agreement on its behalf
(including, without limitation, any person appointed by such Creditor Party for such
purpose);
	 
	 	(iv)	 	who invests in or otherwise finances (or may potentially invest in or otherwise
finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or
(b)(ii) above;
	 
	 	(v)	 	to whom information is required or requested to be disclosed by any court of
competent jurisdiction or any governmental, banking, taxation or other regulatory
authority or similar body, the rules of any relevant stock exchange or pursuant to any
applicable law or regulation;
	 
	 	(vi)	 	to whom or for whose benefit that Creditor Party charges, assigns or otherwise
creates Security (or may do so) pursuant to Clause 26.16;
	 
	 	(vii)	 	to whom information is required to be disclosed in connection with, and for
the purposes of, any litigation, arbitration, administrative or other investigations,
proceedings or disputes;
	 
	 	(viii)	 	who is a party to this Agreement; or

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	 	(ix)	 	with the consent of the Borrowers,

	 	 	in each case, such Confidential Information as that Creditor Party shall consider
appropriate;

	(c)	 	to any person appointed by the Creditor Party or by a person to whom paragraph (b)(i) or
(b)(ii) above applies to provide administration or settlement services in respect of one or
more of the Finance Documents and/or the Master Agreement including without limitation, in
relation to the trading of participations in respect of the Finance Documents and/or the
Master Agreement, such Confidential Information as may be required to be disclosed to enable
such service provider to provide any of the services referred to in this paragraph (c);
	 
	(d)	 	to any rating agency (including its profession advisers) such Confidential Information as may
be required to be disclosed to enable such rating agency to carry out its normal rating
activities in relation to the Finance Documents, the Master Agreement, the Borrowers and/or
the Security Parties.
	 
	27.3	 	Disclosure to numbering service providers
	 
	(a)	 	Any Creditor Party may disclose to any national or international numbering service provider
appointed by that Creditor Party to provide identification numbering services in respect of
this Agreement, the Facilities and/or one or more of the Borrowers and/or the Security Parties
the following information:

	 	(i)	 	names of the Borrowers and the Security Parties;
	 
	 	(ii)	 	country of domicile of the Borrowers and the Security Parties;
	 
	 	(iii)	 	place of incorporation of the Borrowers and the Security Parties;
	 
	 	(iv)	 	date of this Agreement;
	 
	 	(v)	 	the names of the Agent and the Lead Arrangers;
	 
	 	(vi)	 	date of each amendment and restatement of this Agreement;
	 
	 	(vii)	 	amount of Total Commitments;
	 
	 	(viii)	 	currencies of the Facilities;
	 
	 	(ix)	 	type of Facilities;
	 
	 	(x)	 	ranking of Facilities;
	 
	 	(xi)	 	the final Repayment Date;
	 
	 	(xii)	 	changes to any of the information previously supplied pursuant to paragraphs
(i) to (xi) above; and
	 
	 	(xiii)	 	such other information agreed between such Creditor Party and the Borrowers,

	 	 	to enable such numbering service provider to provide its usual syndicated loan numbering
identification services.
	 
	(b)	 	The parties to this Agreement acknowledge and agree that each identification number assigned
to this Agreement, the Facilities and/or one or more of the Borrowers and/or the Security
Parties by a numbering service provider and the information associated with

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	 	 	each such number
may be disclosed to users of its services in accordance with the standard terms and conditions
of that numbering service provider.
	 
	(c)	 	Each Borrower represents that none of the information set out in paragraphs (i) to (xiii) of
paragraph (a) above is, nor will at any time be, unpublished price-sensitive information.
	 
	(d)	 	The Agent shall notify the Borrowers, the Security Parties and the other Creditor Parties of:

	 	(i)	 	the name of any numbering service provider appointed by the Agent in respect of
this Agreement, the Facilities and/or one or more of the Borrowers and/or the Security
Parties; and
	 
	 	(ii)	 	the number or, as the case may be, numbers assigned to this Agreement, the
Facilities and/or one or more of the Borrowers and/or the Security Parties by such
numbering service provider.

	27.4	 	Entire agreement. This Clause 27 constitutes the entire agreement between the parties to
this Agreement in relation to the obligations of the Creditor Parties under the Finance
Documents and the Master Agreement regarding Confidential Information and supersedes any
previous agreement, whether express or implied, regarding Confidential Information.
	 
	27.5	 	Inside Information. Each of the Creditor Parties acknowledges that some or all of the
Confidential Information is or may be price-sensitive information and that the use of such
information may be regulated or prohibited by applicable legislation including securities law
relating to insider dealing and market abuse and each of the Creditor Parties undertakes not
to use any Confidential Information for any unlawful purpose.
	 
	27.6	 	Notification of disclosure. Each of the Creditor Parties agrees (to the extent permitted by
law and regulation) to inform the Borrowers and the Security Parties:
	 
	(a)	 	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph
(b)(v) of Clause 27.2 except where such disclosure is made to any of the persons referred to
in that paragraph during the ordinary course of its supervisory or regulatory function; and
	 
	(b)	 	upon becoming aware that Confidential Information has been disclosed in breach of Clause 27.
	 
	27.7	 	Continuing obligations. The obligations of this Clause 27 are continuing and, in particular,
shall survive and remain binding on each Creditor Party for a period of twelve months from the
earlier of:
	 
	(a)	 	the date on which all amounts payable by the Borrowers and the Security Parties under or in
connection with the Finance Documents and the Master Agreement have been paid in full and all
Commitments have been cancelled or otherwise cease to be available; and
	 
	(b)	 	the date on which such Creditor Party otherwise ceases to be a Creditor Party.
	 
	28	 	VARIATIONS AND WAIVERS
	 
	28.1	 	Variations, waivers etc. by Majority Lenders. Subject to Clause 28.2, a document shall be
effective to vary, waive, suspend or limit any provision of a Finance Document, or any
Creditor Party’s rights or remedies under such a provision or the general law, only if the
document is signed, or specifically agreed to by fax, by the Borrowers, by the Agent on behalf
of the Majority Lenders and the Swap Bank, 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.

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	28.2	 	Variations, waivers etc. requiring agreement of all Lenders. However, as regards the
following, Clause 28.1 applies as if the words “by the Agent on behalf of the Majority
Lenders” were replaced by the words “by or on behalf of every Lender”:
	 
	(a)	 	a reduction in the Margin;
	 
	(b)	 	a postponement to the date for, or a reduction in the amount of, any payment of principal,
interest, fees or other sum payable under this Agreement;
	 
	(c)	 	an increase to any Lender’s Commitment;
	 
	(d)	 	a change to the definition of “Majority Lenders”;
	 
	(e)	 	a change to Clause 3 or this Clause 28;
	 
	(f)	 	any release of, or material variation to, a Security Interest, guarantee, indemnity or
subordination arrangement set out in a Finance Document; and
	 
	(g)	 	any other change or matter as regards which this Agreement or another Finance Document
expressly provides that each Lender’s consent is required.
	 
	28.3	 	Exclusion of other or implied variations. Except for a document which satisfies the
requirements of Clauses 28.1 and 28.2, 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
	 
	(c)	 	a breach by a Borrower or a Security Party of an obligation under a Finance Document or the
general law; or
	 
	(d)	 	any right or remedy conferred by any Finance Document or by the general law;
	 
	 	 	and there shall not be implied into any Finance Document any term or condition requiring any
such provision to be enforced, or such right or remedy to be exercised, within a certain or
reasonable time.
	 
	29	 	NOTICES
	 
	29.1	 	General. Unless otherwise specifically provided, any notice under or in connection with any
Finance Document shall be given by letter or fax; and references in the Finance Documents to
written notices, notices in writing and notices signed by particular persons shall be
construed accordingly.
	 
	29.2	 	Addresses for communications. A notice shall be sent:

	 	 	 	 	 

	(a)

	 	to the Borrowers:
	 	c/o NewLead Shipping S.A.
	 

	 	 	 	83 Akti Miaouli
	 

	 	 	 	Flessa Street
	 

	 	 	 	185 35 Piraeus
	 

	 	 	 	Greece

63

 

	 	 	 	 	 

	 

	 	 	 	Fax No: +30 213 014 8609
	 

	 	 	 	Attn: Chief Financial Officer
	 
	 	 	 	 
	(b)

	 	to a Lender:
	 	At the address next to its name in
Schedule 1 or (as the case may require) in the
relevant Transfer Certificate.
	 
	 	 	 	 
	(c)

	 	to the Agent and the
	 	New Uberior House
	 

	 	Security Trustee
	 	11 Earl Grey Street
	 

	 	 	 	Edinburgh EH3 9BN
	 
	 	 	 	 
	 

	 	 	 	Fax No: +44 (0) 20 7158 3273
	 

	 	 	 	Attn: Director, Marine Finance
	 
	 	 	 	 
	(d)

	 	to the Swap Bank
	 	33 Old Broad Street
	 

	 	 	 	London EC2N 1HZ
	 

	 	 	 	England
	 
	 	 	 	 
	 

	 	 	 	Fax No: +44 (0) 20 7574 8133
	 

	 	 	 	Attn: General Counsel and Head of Legal

	 	 	or to such other address as the relevant party may notify the Agent or, if the relevant
party is the Agent or the Security Trustee, the Borrowers, the Lenders, the Swap Bank and
the Security Parties.
	 
	29.3	 	Effective date of notices. Subject to Clauses 29.4 and 29.5:
	 
	(a)	 	a notice which is delivered personally or posted shall be deemed to be served, and shall take
effect, at the time when it is delivered;
	 
	(b)	 	a notice which is sent by fax shall be deemed to be served, and shall take effect, 2 hours
after its transmission is completed.
	 
	29.4	 	Service outside business hours. However, if under Clause 29.3 a notice would be deemed to be
served:
	 
	(a)	 	on a day which is not a business day in the place of receipt; or
	 
	(b)	 	on such a business day, but after 5 p.m. local time;
	 
	 	 	the notice shall (subject to Clause 29.5) be deemed to be served, and shall take effect, at
9 a.m. on the next day which is such a business day.
	 
	29.5	 	Illegible notices. Clauses 29.3 and 29.4 do not apply if the recipient of a notice notifies
the sender within 1 hour after the time at which the notice would otherwise be deemed to be
served that the notice has been received in a form which is illegible in a material respect.
	 
	29.6	 	Valid notices. A notice under or in connection with a Finance Document shall not be invalid
by reason that its contents or the manner of serving it do not comply with the requirements of
this Agreement or, where appropriate, any other Finance Document under which it is served if:
	 
	(a)	 	the failure to serve it in accordance with the requirements of this Agreement or other
Finance Document, as the case may be, has not caused any party to suffer any significant loss
or prejudice; or

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	(b)	 	in the case of incorrect and/or incomplete contents, it should have been reasonably clear to
the party on which the notice was served what the correct or missing particulars should have
been.
	 
	29.7	 	Electronic communication. Any communication to be made between the Agent and a Lender under
or in connection with the Finance Documents may be made by electronic mail or other electronic
means, if the Agent and the relevant Lender:
	 
	(a)	 	agree that, unless and until notified to the contrary, this is to be an accepted form of
communication;
	 
	(b)	 	notify each other in writing of their electronic mail address and/or any other information
required to enable the sending and receipt of information by that means; and
	 
	(c)	 	notify each other of any change to their respective addresses or any other such information
supplied to them.
	 
	 	 	Any electronic communication made between the Agent and a Lender will be effective only when
actually received in readable form and, in the case of any electronic communication made by
a Lender to the Agent, only if it is addressed in such a manner as the Agent shall specify
for this purpose.
	 
	29.8	 	English language. Any notice under or in connection with a Finance Document shall be in
English.
	 
	29.9	 	Meaning of “notice”. In this Clause 29, “notice” includes any demand, consent,
authorisation, approval, instruction, waiver or other communication.
	 
	30	 	JOINT AND SEVERAL LIABILITY
	 
	30.1	 	General. All liabilities and obligations of the Borrowers under this Agreement shall,
whether expressed to be so or not, be several and, if and to the extent consistent with Clause
30.2, joint.
	 
	30.2	 	No impairment of Borrower’s obligations. The liabilities and obligations of a Borrower shall
not be impaired by:
	 
	(a)	 	this Agreement being or later becoming void, unenforceable or illegal as regards any other
Borrower;
	 
	(b)	 	any Lender or the Security Trustee entering into any rescheduling, refinancing or other
arrangement of any kind with any other Borrower;
	 
	(c)	 	any Lender or the Security Trustee releasing any other Borrower or any Security Interest
created by a Finance Document; or
	 
	(d)	 	any combination of the foregoing.
	 
	30.3	 	Principal debtors. Each Borrower declares that it is and will, throughout the Security
Period, remain a principal debtor for all amounts owing under this Agreement and the Finance
Documents and neither Borrower shall in any circumstances be construed to be a surety for the
obligations of any other Borrower under this Agreement.
	 
	30.4	 	Subordination. Subject to Clause 30.5, during the Security Period, neither Borrower shall:

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	(a)	 	claim any amount which may be due to it from any other Borrower whether in respect of a
payment made, or matter arising out of, this Agreement or any Finance Document, or any matter
unconnected with this Agreement or any Finance Document; or
	 
	(b)	 	take or enforce any form of security from any other Borrower for such an amount, or in any
other way seek to have recourse in respect of such an amount against any asset of any other
Borrower; or
	 
	(c)	 	set off such an amount against any sum due from it to any other Borrower; or
	 
	(d)	 	prove or claim for such an amount in any liquidation, administration, arrangement or similar
procedure involving any other Borrower or other Security Party; or
	 
	(e)	 	exercise or assert any combination of the foregoing.
	 
	30.5	 	Borrower’s required action. If during the Security Period, the Agent, by notice to a
Borrower, requires it to take any action referred to in paragraphs (a) to (d) of Clause 30.4,
in relation to any other Borrower, that Borrower shall take that action as soon as practicable
after receiving the Agent’s notice.
	 
	31	 	SUPPLEMENTAL
	 
	31.1	 	Rights cumulative, non-exclusive. The rights and remedies which the Finance Documents give
to each Creditor Party are:
	 
	(a)	 	cumulative;
	 
	(b)	 	may be exercised as often as appears expedient; and
	 
	(c)	 	shall not, unless a Finance Document explicitly and specifically states so, be taken to
exclude or limit any right or remedy conferred by any law.
	 
	31.2	 	Severability of provisions. If any provision of a Finance Document is or subsequently
becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or
legality of the other provisions of that Finance Document or of the provisions of any other
Finance Document.
	 
	31.3	 	Counterparts. A Finance Document may be executed in any number of counterparts.
	 
	31.4	 	Third party rights. A person who is not a party to this Agreement has no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of
this Agreement.
	 
	32	 	LAW AND JURISDICTION
	 
	32.1	 	English law. This Agreement and any non-contractual obligations arising out of or in
connection with it shall be governed by, and construed in accordance with, English law.
	 
	32.2	 	Exclusive English jurisdiction. Subject to Clause 32.3, the courts of England shall have
exclusive jurisdiction to settle any Dispute.
	 
	32.3	 	Choice of forum for the exclusive benefit of the Creditor Parties. Clause 32.2 is for the
exclusive benefit of the Creditor Parties, each of which reserves the rights:
	 
	(a)	 	to commence proceedings in relation to any Dispute in the courts of any country other than
England and which have or claim jurisdiction to that Dispute; and

66

 

	(b)	 	to commence such proceedings in the courts of any such country or countries concurrently with
or in addition to proceedings in England or without commencing proceedings in England.
	 
	 	 	Neither Borrower shall commence any proceedings in any country other than England in
relation to a Dispute.
	 
	32.4	 	Process agent. Each Borrower irrevocably appoints HFW Nominees Limited at its registered
office for the time being, presently at Marlow House, Lloyd’s Avenue, London EC3N 3AL, England
to act as its agent to receive and accept on its behalf any process or other document relating
to any proceedings in the English courts which are connected with a Dispute.
	 
	32.5	 	Creditor Party rights unaffected. Nothing in this Clause 32 shall exclude or limit any right
which any Creditor Party may have (whether under the law of any country, an international
convention or otherwise) with regard to the bringing of proceedings, the service of process,
the recognition or enforcement of a judgment or any similar or related matter in any
jurisdiction.
	 
	32.6	 	Meaning of “proceedings”. In this Clause 32, “proceedings” means proceedings of any kind,
including an application for a provisional or protective measure and a “Dispute” means any
dispute arising out of or in connection with this Agreement (including a dispute relating to
the existence, validity or termination of this Agreement) or any non-contractual obligation
arising out of or in connection with this Agreement.

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

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SCHEDULE 1

LENDERS AND COMMITMENTS

	 	 	 	 	 	 	 
	 	 	 	 	Commitment (US
	Lender	 	Lending Office	 	Dollars)
	 
	 	 	 	 	 	 
	Bank of Scotland plc

	 	New Uberior House
	 	$	6,666,667	 
	 

	 	11 Earl Grey Street	 	 	 	 
	 

	 	Edinburgh EH3 9BN	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Fax No: (0)20 71583273	 	 	 	 
	 

	 	Attn: Director, Marine Finance	 	 	 	 
	 
	 	 	 	 	 	 
	BTMU Capital Corporation

	 	111 Huntington Avenue
	 	$	6,666,667	 
	 

	 	Suite 400	 	 	 	 
	 

	 	Boston MA 02199	 	 	 	 
	 

	 	USA	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Fax No: +1 617 345 5153	 	 	 	 
	 

	 	Attn: Sandra Ironfield (Loan	 	 	 	 
	 

	 	Administration Department)	 	 	 	 
	 

	 	Elina Holbrook (Credit	 	 	 	 
	 

	 	Administration Department)	 	 	 	 

68

 

SCHEDULE 2

DRAWDOWN NOTICE

	 	 	 

	To:

	 	Bank of Scotland plc
	 

	 	New Uberior House
	 

	 	11 Earl Grey Street
	 

	 	Edinburgh
	 

	 	EH3 9BN

Attention: Director, Marine Finance

[date]

DRAWDOWN NOTICE

	1	 	We refer to the facility agreement (the “Facility Agreement”) dated [•] 2010 and made
between ourselves, as Borrowers, the Lenders referred to therein, the Lead Arrangers and
Underwriters referred to therein and yourselves as Agent, Security Trustee and Swap Bank in
connection with a loan facility of US$13,333,334. Terms defined in the Facility Agreement
have their defined meanings when used in this Drawdown Notice.
	 
	2	 	We request to borrow as follows:
	 
	(a)	 	Amount: Advance of US$[•] to [finance][refinance] the [•] instalment
under the Shipbuilding Contract in relation to hull no. [•]];
	 
	(b)	 	Drawdown Date: [•];
	 
	(c)	 	Duration of the first Interest Period shall be [•] months;
	 
	(d)	 	Payment instructions: to the [relevant Earnings Account] for further remittance to the
account of [•] and numbered [•] with [•]
of [•] with value date of [•].
	 
	3	 	We represent and warrant that:
	 
	(a)	 	the representations and warranties in Clause 10 of the Facility Agreement would remain true
and not misleading if repeated on the date of this notice with reference to the circumstances
now existing;
	 
	(b)	 	no Event of Default or Potential Event of Default has occurred or will result from the
borrowing of the Loan.
	 
	4	 	This notice cannot be revoked without the prior consent of the Majority Lenders.

[Name of Signatory]

 

for and on behalf of

Ayasha Trading Corporation

Bethune Properties S.A.

69

 

SCHEDULE 3

CONDITION PRECEDENT AND SUBSEQUENT DOCUMENTS

PART A

The following are the documents referred to in Clause 9.1(a).

	1	 	A duly executed original of the Master Agreement and of each Finance Document (other than
those referred to in Part C) and of each document required to be delivered by each Finance
Document.
	 
	2	 	Copies of the certificate of incorporation and constitutional documents of each Borrower and
each Security Party and, if applicable, a goodstanding certificate for each such corporation.
	 
	3	 	Copies of resolutions of the directors and, if required, the shareholders of each Borrower
and each Security Party authorising the execution of each of the Finance Documents to which
that Borrower or that Security Party is a party and the Master Agreement and, in the case of
each Borrower, ratifying the Shipbuilding Contract and the Permitted Charter to which that
Borrower is a party.
	 
	4	 	The original of any power of attorney under which any Finance Document or the Master
Agreement is executed on behalf of any Borrower or any Security Party.
	 
	5	 	Copies of all consents which any Borrower or any Security Party requires to enter into, or
make any payment under, any Finance Document, the Master Agreement or any Shipbuilding
Contract.
	 
	6	 	A copy of each Shipbuilding Contract, each Refund Guarantee relative to the first instalment
of the Contract Price under each Shipbuilding Contract, the Refund Guarantee relative to the
second instalment of the Contract Price under the Shipbuilding Contract in relation to Ship 1
and each Permitted Charter.
	 
	7	 	Satisfactory resolution between the Borrowers and the Seller as to the release of the
existing payment guarantees issued by Bhatia International Ltd. to the Seller in accordance
with the terms of the Shipbuilding Contracts.
	 
	8	 	Details of the pre-delivery supervision arrangements (including the identity of the
construction supervisor) in respect of each Shipbuilding Contract.
	 
	9	 	The originals of any mandates or other documents required in connection with the opening or
operation of the Earnings Accounts and the Retention Accounts.
	 
	10	 	Evidence as to the ultimate beneficial ownership of the Corporate Guarantor.
	 
	11	 	Such documents as any of the Lenders may require for its “know your customer” and other
customary money laundering checks.
	 
	12	 	A letter from the Borrowers to the Agent in a form approved by the Agent setting out the
Borrowers’ interest rate hedging strategy.
	 
	13	 	Evidence that the Senior Loan Agreement is in the Agreed Form and has been or will be entered
into by the parties thereto on the date of this Agreement.
	 
	14	 	Documentary evidence that the agent for service of process named in Clause 32 has accepted
its appointment.

70

 

	15	 	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the
laws of Liberia, China, Bermuda and such other relevant jurisdictions as the Agent may
require.
	 
	16	 	If the Agent so requires, in respect of any of the documents referred to above, a certified
English translation prepared by a translator approved by the Agent.

71

 

PART B

The following are the documents referred to in Clause 11.22(a):

	1	 	A copy of the Refund Guarantee relative to the relevant instalment of the Contract Price
under the relevant Shipbuilding Contract.
	 
	2	 	A duly executed original of the notice of assignment of Refund Guarantee in respect of the
relevant Refund Guarantee under the relevant Predelivery Security Assignment together with
evidence that the Refund Guarantor has agreed to execute the acknowledgement in respect
thereof in agreed form.
	 
	3	 	Evidence of SAFE registration of the relevant Refund Guarantee and Predelivery Security
Assignment.
	 
	4	 	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the
laws of China and such other relevant jurisdictions as the Agent may require.

72

 

PART C

The following are the documents referred to in Clause 11.22(b).

	1	 	A duly executed original of the Mortgage and the General Assignment in respect of the Ship to
which the Advance relates and (if not already executed) of the Earnings Accounts Security Deed
and the Retention Accounts Security Deed.
	 
	2	 	To the extent not already covered by the documents referred to in Part A paragraphs 2, 3, 4
and 5, copies (or, in the case of powers of attorney, originals) of those documents
authorising the execution of the Finance Documents referred to in Part B paragraph 1 above and
all consents in connection therewith.
	 
	3	 	Documentary evidence that:
	 
	(a)	 	the Ship in question has been unconditionally delivered by the Seller to, and accepted by,
the Borrower under the relevant Shipbuilding Contract, and the full purchase price payable
under that Shipbuilding Contract (in addition to the part to be financed by the Loan) has been
duly paid;
	 
	(b)	 	the Ship in question has been unconditionally delivered by the Borrower to, and accepted by,
the relevant Charterer under the relevant Permitted Charter.
	 
	(c)	 	the Ship in question is definitively and permanently registered in the name of the relevant
Borrower under an Approved Flag;
	 
	(d)	 	the Ship in question is in the absolute and unencumbered ownership of the relevant Borrower
save as contemplated by the Finance Documents;
	 
	(e)	 	the Ship in question maintains the required class free of all recommendations and conditions;
	 
	(f)	 	the Mortgage over the Ship in question has been duly recorded against the relevant Ship as a
valid second preferred or (as the case may be) priority ship mortgage in accordance with the
laws of that Ship’s Approved Flag state; and
	 
	(g)	 	the Ship in question is insured in accordance with the provisions of this Agreement and all
requirements therein in respect of insurances have been complied with.
	 
	4	 	Documents establishing that the Ship in question will, as from the relevant Drawdown Date, be
managed by the Approved Manager on terms acceptable to the Lenders, together with:
	 
	(a)	 	a letter of undertaking executed by the Approved Manager in favour of the Agent in the terms
required by the Agent agreeing certain matters in relation to the management of the Ship and
subordinating the rights of the Approved Manager against the Ship and its Insurances and the
Borrower to the rights of the Creditor Parties under the Finance Documents; and
	 
	(b)	 	copies of the Approved Manager’s Document of Compliance and of the Ship’s Safety Management
Certificate (together with any other details of the applicable safety management system which
the Agent requires) and ISSC.
	 
	5	 	Copies of such flag state and class records as the Agent may request.

73

 

	6	 	Favourable legal opinions from lawyers appointed by the Agent on such matters concerning the
laws of the relevant Ship’s Approved Flag state, Liberia, China and such other relevant
jurisdictions as the Agent may require.
	 
	7	 	A favourable opinion from an independent insurance consultant acceptable to the Agent on such
matters relating to the insurances for the Ship in question as the Agent may require.
	 
	8	 	A favourable inspection report on the Ship in question from an independent marine surveyor
acceptable to the Agent.
	 
	9	 	To the extent not already delivered under Part A paragraph 10, the originals of any mandates
and other documents required in connection with the opening or operation of the Earnings
Accounts and the Retention Accounts.
	 
	10	 	If the Agent so requires, in respect of any of the documents referred to above, a certified
English translation prepared by a translator approved by the Agent.
	 
	 	 	Each of the documents specified in paragraphs 2, 3, 5 and 6 of Part A and every other copy
document delivered under this Schedule shall be certified as a true and up to date copy by a
director or the secretary (or equivalent officer) of a Borrower.

74

 

SCHEDULE 4

TRANSFER CERTIFICATE

The Transferor and the Transferee accept exclusive responsibility for ensuring that this
Certificate and the transaction to which it relates comply with all legal and regulatory
requirements applicable to them respectively.

	To: 	 	Bank of Scotland plc for itself and for and on behalf of each Borrower, each Security Party,
the Security Trustee, the Swap Bank and each Lender, as defined in the Facility Agreement
referred to below.
	 
	1	 	This Certificate relates to a facility agreement (the “Facility Agreement”) dated [•]
2010, and made between (1) Ayasha Trading Corporation and Bethune Properties S.A. as joint and
several borrowers (together the “Borrowers”), (2) the banks and financial institutions named
therein as Lenders, (3) Bank of Scotland plc and BTMU Capital Corporation as Lead Arrangers
and Underwriters, (4) Bank of Scotland plc as Swap Bank, (5) Bank of Scotland plc as Security
Trustee and (6) Bank of Scotland plc as Agent for a loan facility of $13,333,334.
	 
	2	 	In this Certificate, terms defined in the Facility Agreement shall, unless the contrary
intention appears, have the same meanings and:
	 
	 	 	“Relevant Parties” means each Borrower, each Security Party, the Agent, the Security
Trustee, the Swap Bank and each Lender;
	 
	 	 	“Transferor” means [full name] of [lending office]; and
	 
	 	 	“Transferee” means [full name] of [lending office].
	 
	3	 	The effective date of this Certificate is [•] Provided that this
Certificate shall not come into effect unless it is signed by the Agent on or before that
date.
	 
	4	 	The Transferor assigns to the Transferee absolutely all rights and interests (present, future
or contingent) which the Transferor has as Lender under or by virtue of the Facility Agreement
and every other Finance Document in relation to [•] per cent. of its
Contribution, which percentage represents $[•].
	 
	5	 	By virtue of this Transfer Certificate and Clause 26 of the Facility Agreement, the
Transferor is discharged [entirely from its Commitment which amounts to
$[•]] [from [•] per cent. of its Commitment, which
percentage represents $[•]] and the Transferee acquires a Commitment of
$[•].
	 
	6	 	The Transferee undertakes with the Transferor and each of the Relevant Parties that the
Transferee will observe and perform all the obligations under the Finance Documents which
Clause 26 of the Facility Agreement provides will become binding on it upon this Certificate
taking effect.
	 
	7	 	The Agent, at the request of the Transferee (which request is hereby made) accepts, for the
Agent itself and for and on behalf of every other Relevant Party, this Certificate as a
Transfer Certificate taking effect in accordance with Clause 26 of the Facility Agreement.
	 
	8	 	The Transferor:
	 
	(a)	 	warrants to the Transferee and each Relevant Party that:

75

 

	 	(i)	 	the Transferor has full capacity to enter into this transaction and has taken
all corporate action and obtained all consents which are in connection with this
transaction; and
	 
	 	(ii)	 	this Certificate is valid and binding as regards the Transferor;

	(b)	 	warrants to the Transferee that the Transferor is absolutely entitled, free of encumbrances,
to all the rights and interests covered by the assignment in paragraph 4; and
	 
	(c)	 	undertakes with the Transferee that the Transferor will, at its own expense, execute any
documents which the Transferee reasonably requests for perfecting in any relevant jurisdiction
the Transferee’s title under this Certificate or for a similar purpose.
	 
	9	 	The Transferee:
	 
	(a)	 	confirms that it has received a copy of the Facility Agreement, each other Finance Document
and the Master Agreement;
	 
	(b)	 	agrees that it will have no rights of recourse on any ground against either the Transferor,
the Agent, the Security Trustee, any Lender or the Swap Bank in the event that:

	 	(i)	 	any of the Finance Documents prove to be invalid or ineffective,
	 
	 	(ii)	 	any Borrower or any Security Party fails to observe or perform its obligations,
or to discharge its liabilities, under any of the Finance Documents;
	 
	 	(iii)	 	it proves impossible to realise any asset covered by a Security Interest
created by a Finance Document, or the proceeds of such assets are insufficient to
discharge the liabilities of the Borrowers or Security Party under the Finance
Documents;

	(c)	 	agrees that it will have no rights of recourse on any ground against the Agent, the Security
Trustee, any Lender or the Swap Bank in the event that this Certificate proves to be invalid
or ineffective;
	 
	(d)	 	warrants to the Transferor and each Relevant Party that:

	 	(i)	 	it has full capacity to enter into this transaction and has taken all corporate
action and obtained all consents which it needs to take or obtain in connection with
this transaction; and
	 
	 	(ii)	 	this Certificate is valid and binding as regards the Transferee; and

	(e)	 	confirms the accuracy of the administrative details set out below regarding the Transferee.
	 
	10	 	The Transferor and the Transferee each undertake with the Agent and the Security Trustee
severally, on demand, fully to indemnify the Agent and/or the Security Trustee in respect of
any claim, proceeding, liability or expense (including all legal expenses) which they or
either of them may incur in connection with this Certificate or any matter arising out of it,
except such as are shown to have been mainly and directly caused by the gross and culpable
negligence or dishonesty of the Agent’s or the Security Trustee’s own officers or employees.
	 
	11	 	The Transferee shall repay to the Transferor on demand so much of any sum paid by the
Transferor under paragraph 10 as exceeds one-half of the amount demanded by the Agent or the
Security Trustee in respect of a claim, proceeding, liability or expense which was not
reasonably foreseeable at the date of this Certificate; but nothing in this paragraph

76

 

	 	 	shall affect the liability of each of the Transferor and the Transferee to the Agent or the
Security Trustee for the full amount demanded by it.

	 	 	 	 	 

	[Name of Transferor]

	 	 
	 	[Name of Transferee]
	 
	 	 	 	 
	By:

	 	 	 	By:
	 
	 	 	 	 
	Date:

	 	 	 	Date:

Agent

Signed for itself and for and on behalf of itself

as Agent and for every other Relevant Party

	 	 	 	 	 
	[Name of Agent]

 	 	 
	By:  	 	 	 
	 	 	 	 

Date:

77

 

Administrative Details of Transferee

Name of Transferee:

Lending Office:

Contact Person

(Loan Administration Department):

Telephone:

Fax:

Contact Person

(Credit Administration Department):

Telephone:

Fax:

Account for payments:

	Note: 	 	This Transfer Certificate alone may not be sufficient to transfer a proportionate share of
the Transferor’s interest in the security constituted by the Finance Documents in the
Transferor’s or Transferee’s jurisdiction. It is the responsibility of each Lender to
ascertain whether any other documents are required for this purpose.

78

 

SCHEDULE 5

MANDATORY COST FORMULA

	1	 	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of
compliance with (a) the requirements of the Financial Services Authority (or any other
authority which replaces all or any of its functions) or (b) the requirements of the European
Central Bank.
	 
	2	 	On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall
calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in
accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the
Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to
the percentage participation of each Lender in the Loan) and will be expressed as a percentage
rate per annum.
	 
	3	 	The Additional Cost Rate for any Lender lending from a lending office in a Participating
Member State will be the percentage notified by that Lender to the Agent. This percentage
will be certified by that Lender in its notice to the Agent to be its reasonable determination
of the cost (expressed as a percentage of that Lender’s participation in the Loan) of
complying with the minimum reserve requirements of the European Central Bank in respect of
loans made from that lending office.
	 
	4	 	The Additional Cost Rate for any Lender lending from a lending office in the United Kingdom
will be calculated by the Agent as follows:

	 	 	 	 	 

	 

	 	E x 0.01
 

300
	 	per cent. per annum

	 	 	Where:

	 	E 	 	is designed to compensate Lenders for amounts payable under the Fees Rules and
is calculated by the Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Agent pursuant to paragraph 6 below and
expressed in pounds per £1,000,000.

	5	 	For the purposes of this Schedule:
	 
	(a)	 	“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to
time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank
of England;
	 
	(b)	 	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or
such other law or regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits;
	 
	(c)	 	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1
Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees
Rules but taking into account any applicable discount rate);
	 
	(d)	 	“Participating Member State” means any member state of the European Union that adopts or has
adopted the euro as its lawful currency in accordance with legislation of the European Union
relating to European Monetary Union; and

79

 

	(e)	 	“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the
Fees Rules.
	 
	6	 	If requested by the Agent, each Reference Bank shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Agent, the rate of charge
payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules
in respect of the relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that
Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff
Base of that Reference Bank.
	 
	7	 	Each Lender shall supply any information required by the Agent for the purpose of calculating
its Additional Cost Rate. In particular, but without limitation, each Lender shall supply the
following information in writing on or prior to the date on which it becomes a Lender:
	 
	(a)	 	the jurisdiction of its lending office; and
	 
	(b)	 	any other information that the Agent may reasonably require for such purpose.
	 
	 	 	Each Lender shall promptly notify the Agent in writing of any change to the information
provided by it pursuant to this paragraph.
	 
	8	 	The rates of charge of each Reference Bank for the purpose of E above shall be determined by
the Agent based upon the information supplied to it pursuant to paragraph 6 above and on the
assumption that, unless a Lender notifies the Agent to the contrary, each Lender’s obligations
in relation to cash ratio deposits and Special Deposits are the same as those of a typical
bank from its jurisdiction of incorporation with a lending office in the same jurisdiction as
its lending office.
	 
	9	 	The Agent shall have no liability to any person if such determination results in an
Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3,
6 and 7 above is true and correct in all respects.
	 
	10	 	The Agent shall distribute the additional amounts received as a result of the Mandatory Cost
to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 6 and 7
above.
	 
	11	 	Any determination by the Agent pursuant to this Schedule in relation to a formula, the
Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all parties.
	 
	12	 	The Agent may from time to time, after consultation with the Borrower and the Lenders,
determine and notify to all parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any requirements from time
to time imposed by the Financial Services Authority or the European Central Bank (or, in any
case, any other authority which replaces all or any of its functions) and any such
determination shall, in the absence of manifest error, be conclusive and binding on all
parties.

80

 

SCHEDULE 6

FORM OF BORROWERS COMPLIANCE CERTIFICATE

	To:  	 	Bank of Scotland plc

New Uberior House

11 Earl Grey Street

Edinburgh EH3 9BN

Scotland
	 
	From: 	 	Ayasha Trading Corporation

Bethune Properties S.A.

Dated [•]

OFFICER’S CERTIFICATE

This Certificate is rendered pursuant to clause 11.6(c) of the loan facility agreement dated
[•] 2010 (the “Loan Agreement”) and entered into between (i) ourselves as Borrowers, (ii) the
banks and financial institutions listed in Schedule 1 therein as Lenders, (iii) yourselves and BTMU
Capital Corporation as Lead Arrangers and Underwriters and (iv) yourselves as Swap Bank, as Agent
and as Security Trustee, relating to a loan facility of US$13,333,334. Words and expressions
defined in the Loan Agreement shall have the same meanings when used herein.

I, [•], the [Chief Financial Officer] of Ayasha Trading Corporation and Bethune Properties
S.A., hereby certify that:

	1	 	Attached to this Certificate are the latest [unaudited individual financial statements of
each of the Borrowers for the financial year ending on [•]] [unaudited individual
quarterly financial statements of each of the Borrowers in relation to the [first] [second]
[third] [fourth] quarter of the year ending on [•]] (the “Accounts”).
	 
	2	 	Clause 12.4 of the Loan Agreement is complied with in that the minimum balance on each of the
Earnings Accounts is $[•] and $[•].
	 
	 	 	[or, as the case may be, specify in what respect Clause 12.4 is not complied with.]
	 
	3	 	As at [•] no Event of Default has occurred and is continuing.
	 
	 	 	[or, specify/identify any Event of Default]
	 
	4	 	[The aggregate of the Fair Market Values of each Ship subject to a Mortgage is [•]; and
	 
	 	 	The net realisable value of any additional security previously provided under clause 15 of
the Loan Agreement is [•]
	 
	 	 	Which is not less than [•] per cent. of the Loan and the Senior Loan.
	 
	 	 	And, therefore, the Borrowers are in compliance with Clause 15.1 of the Loan Agreement.]
	 
	 	 	[If not, specify this and what is proposed as regards Clause 15.2]
	 
	5	 	The Fair Market Value of the Ships which are subject to a Mortgage is as follows as at
[date]:

81

 

	 	 	 	 	 	 	 
	 	 	Name of first shipbroker	 	Name of second shipbroker	 	Average market
	Name of Ship	 	providing valuation	 	providing valuation	 	value
	 
	 	 	 	 	 	 
	[•]

	 	[•]
	 	[•]
	 	[•]

We enclose copies of each such valuation.]

 

Chief Financial Officer

Ayasha Trading Corporation

Bethune Properties S.A.

82

 

EXECUTION PAGES

	 	 	 	 	 	 
	BORROWERS
	 	 	 	 	 
	 
	 	 	 	 
	SIGNED by Pangiotis-Peter Kallifidas

	 	 	) 	/s/Pangiotis-Peter Kallifidas	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	AYASHA TRADING CORPORATION

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 
	 
	 	 	 	 
	SIGNED by Pangiotis-Peter Kallifidas

	 	 	) 	/s/Pangiotis-Peter Kallifidas	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	BETHUNE PROPERTIES S.A.

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 
	 
	 	 	 	 	 
	LENDERS
	 	 	 	 	 
	 
	 	 	 	 	 
	SIGNED by

	 	 	) 	 	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	BANK OF SCOTLAND PLC

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 
	 
	 	 	 	 
	SIGNED by

	 	 	) 	 	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	BTMU CAPITAL CORPORATION

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 	 

	 	 	 	 	 	 

	LEAD ARRANGERS AND UNDERWRITERS
	 	 	 
	 
	 	 	 	 
	SIGNED by

	 	 	) 	 	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	BANK OF SCOTLAND PLC

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 

83

 

	 	 	 	 	 	 

	SIGNED by

	 	 	) 	 	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	BTMU CAPITAL CORPORATION

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 
	 
	 	 
	SWAP BANK
	 	 	 
	 
	 	 	 
	SIGNED by

	 	 	) 	 	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	BANK OF SCOTLAND PLC

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 
	 
	 	 	 	 
	AGENT
	 	 	 	 
	 
	 	 	 	 
	SIGNED by

	 	 	) 	 	 
	 

	 	 	) 	 	 
	for and on behalf of

	 	 	) 	 	 
	BANK OF SCOTLAND PLC

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 
	 
	 	 	 	 
	SECURITY TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SIGNED by

	 	 	) 	 	 
	 

	 	 	) 	 	 	 	 
	for and on behalf of

	 	 	) 	 	 
	BANK OF SCOTLAND PLC

	 	 	) 	 	 
	in the presence of: Katerina Naoum

	 	 	) 	/s/Katerina Naoum	 

84exv10w3

			
	 	 	 
	Private & Confidential
	 	EXECUTION VERSION

DATED 26 APRIL 2010

SUPPLEMENTAL DEED

relating to a US$221,429,999 Term Loan Facility

to

NEWLEAD HOLDINGS LTD.

(formerly known as ARIES MARITIME TRANSPORT LIMITED)

 

 

Contents

	 	 	 	 	 
	Clause	 	Page
	 
	 	 	 	 
	1    Definitions
	 	 	1	 
	 
	 	 	 	 
	2    Agreement of the Finance Parties
	 	 	5	 
	 
	 	 	 	 
	3    Amendments to Principal Agreement
	 	 	5	 
	 
	 	 	 	 
	4    Amendments to the Stena Compass Deed of Covenant
	 	 	8	 
	 
	 	 	 	 
	5    Amendments to the Stena Compassion Deed of Covenant
	 	 	8	 
	 
	 	 	 	 
	6    Representations and warranties
	 	 	8	 
	 
	 	 	 	 
	7    Conditions
	 	 	10	 
	 
	 	 	 	 
	8    Guarantors’ and Managers’ confirmations
	 	 	10	 
	 
	 	 	 	 
	9    Fees and expenses
	 	 	11	 
	 
	 	 	 	 
	10  Miscellaneous and notices
	 	 	12	 
	 
	 	 	 	 
	11  Applicable law
	 	 	12	 
	 
	 	 	 	 
	Schedule 1 Names and addresses of the Banks
	 	 	13	 
	 
	 	 	 	 
	Schedule 2 The Co-arrangers
	 	 	15	 
	 
	 	 	 	 
	Schedule 3 The Swap Banks
	 	 	16	 
	 
	 	 	 	 
	Schedule 4 The Corporate Guarantors
	 	 	17	 
	 
	 	 	 	 
	Schedule 5
	 	 	18	 
	 
	 	 	 	 
	Part 1: Documents and evidence required as conditions precedent
to the Effective Date (referred to
in clause 7.1)
	 	 	18	 
	 
	 	 	 	 
	Part 2: Documents and evidence required as conditions precedent
to each Redelivery Date (referred
to in clause 7.2)
	 	 	20	 
	 
	 	 	 	 
	Schedule 6 Form of Manager’s Undertaking
	 	 	22	 
	 
	 	 	 	 
	Schedule 7 Form of Mortgage Addendum
	 	 	28	 
	 
	 	 	 	 
	Schedule 8 Form of Supplemental Mortgage
	 	 	29	 

 

 

THIS SUPPLEMENTAL DEED is dated 26 April 2010 and made BETWEEN:

	(1)	 	NEWLEAD HOLDINGS LTD. (formerly known as ARIES MARITIME TRANSPORT LIMITED) as borrower (the
“Borrower”);
	 
	(2)	 	THE BANKS AND FINANCIAL INSTITUTIONS WITH NAMES AND ADDRESSES AS SET OUT IN SCHEDULE 1 as
banks (the “Banks”);
	 
	(3)	 	BANK OF SCOTLAND PLC AND NORDEA BANK OF FINLAND PLC, LONDON BRANCH in their capacity as joint
lead arrangers (the “Arrangers”);
	 
	(4)	 	THE BANKS AND FINANCIAL INSTITUTIONS WITH NAMES AND ADDRESSES AS SET OUT IN SCHEDULE 2 as
co-arrangers (the “Co-arrangers”);
	 
	(5)	 	THE BANKS AND FINANCIAL INSTITUTIONS WITH NAMES AND ADDRESSES AS SET OUT IN SCHEDULE 3 as
swap banks (the “Swap Banks”);
	 
	(6)	 	BANK OF SCOTLAND PLC in its capacity as agent, security agent and trustee for and on behalf
of the Finance Parties (the “Agent”);
	 
	(7)	 	THE COMPANIES WITH NAMES AND ADDRESSES AS SET OUT IN SCHEDULE 4 as owners and corporate
guarantors (the “Corporate Guarantors”); and
	 
	(8)	 	AMT MANAGEMENT LTD as manager (“AMT”); and
	 
	(9)	 	ERNST JACOB SHIP MANAGEMENT GmbH as manager (“Ernst Jacob” and, together with AMT, the
“Managers”)

WHEREAS:

	(A)	 	This Deed is supplemental to the Loan Agreement dated 13 October 2009 as supplemented and
amended from time to time (the “Principal Agreement”) and made between (1) the Borrower (2)
the Banks (3) the Arrangers (4) the Co-Arrangers (5) the Swap Banks and (6) the Agent,
pursuant to which the Banks agreed to make available to the Borrower the sum of $221,429,999
upon the terms and conditions contained therein.
	 
	(B)	 	The Borrower has requested that the Principal Agreement is revised so that, amongst other
things, the Minimum Liquidity may be applied in prepayment of sums outstanding under the Loan.
	 
	(C)	 	The Borrower, the Corporate Guarantors and the Managers have each requested that the Banks
agree to:

	 	(a)	 	the termination of the ITM Management Agreements and the AMT Management
Agreement;
	 
	 	(b)	 	the release of ITM and the relevant Vessel Owners from all of their respective
obligations under the ITM Manager’s Undertakings; and
	 
	 	(c)	 	the release of AMT and the relevant Vessel Owner from all of their respective
obligations under the AMT Management Agreement.

NOW IT IS HEREBY AGREED as follows:

	1	 	Definitions
	 
	1.1	 	Defined expressions
	 
	 	 	Words and expressions defined in the Principal Agreement shall unless the context otherwise
requires or unless otherwise defined herein, have the same meanings when used in this Deed.

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	1.2	 	Definitions
	 
	 	 	In this Deed, unless the context otherwise requires:
	 
	 	 	“Altius Management Agreement” means the technical management agreement dated 30 August 2007
and made between ITM and the Altius Owner in respect of ALTIUS;
	 
	 	 	“Altius Manager’s Undertaking” means the Manager’s Undertaking dated 13 October 2009 executed
by ITM in favour of the Agent in respect of ALTIUS;
	 
	 	 	“Altius Owner” means Altius Marine S.A. of Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro MH96960, Marshall Islands;
	 
	 	 	“AMT Management Agreement” means the management agreement dated 27 November 2008 and made
between AMT and the Nordanvind Owner in respect of NORDANVIND;
	 
	 	 	“AMT Manager’s Undertaking” means the Manager’s Undertaking dated 13 October 2009 executed by
AMT in favour of the Agent in respect of NORDANVIND;
	 
	 	 	“Effective Date” means the date, no later than ten Banking Days from the date of this Deed,
on which the Agent notifies the Borrower in writing that the Agent has received the documents
and evidence specified in clause 7.1 and Part 1 of Schedule 5 in a form and substance
satisfactory to it;
	 
	 	 	“Existing Management Agreements” means the AMT Management Agreement or the ITM Management
Agreements and “Existing Management Agreement ” means any of them;
	 
	 	 	“Existing Manager” means AMT or ITM as the case may be;
	 
	 	 	“Existing Managers’ Undertakings” means the AMT Manager’s Undertaking or the ITM Managers’
Undertakings and “Existing Manager’s Undertaking ” means any of them;
	 
	 	 	“Fortius Management Agreement” means the technical management agreement dated 30 August 2007
and made between ITM and the Fortius Owner in respect of FORTIUS;
	 
	 	 	“Fortius Manager’s Undertaking” means the Manager’s Undertaking dated 13 October 2009
executed by ITM in favour of the Agent in respect of FORTIUS;
	 
	 	 	“Fortius Owner” means Fortius Marine S.A. of Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro MH96960, Marshall Islands;
	 
	 	 	“High Land Owner” means Land Marine S.A. of Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro MH96960, Marshall Islands;
	 
	 	 	“High Land Management Agreement” means the technical management agreement dated 30 August
2007 and made between ITM and the High Land Owner in respect of HIGH LAND;
	 
	 	 	“High Land Manager’s Undertaking” means the Manager’s Undertaking dated 13 October 2009
executed by ITM in favour of the Agent in respect of HIGH LAND;
	 
	 	 	“High Rider Owner” means Rider Marine S.A. of Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro MH96960, Marshall Islands;
	 
	 	 	“High Rider Management Agreement” means the technical management agreement dated 30 August
2007 and made between ITM and the High Rider Owner in respect of HIGH RIDER;
	 
	 	 	“High Rider Manager’s Undertaking” means the Manager’s Undertaking dated 13 October 2009
executed by ITM in favour of the Agent in respect of HIGH RIDER;

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	 	 	“ITM Management Agreements” means the Ostria Management Agreement, the Altius Management
Agreement, the Fortius Management Agreement, the High Land Management Agreement and the High
Rider Management Agreement and “ITM Management Agreement” means any of them;
	 
	 	 	“ITM Manager’s Undertakings” means the Altius Manager’s Undertaking, the Fortius Manager’s
Undertaking, the High Land Manager’s Undertaking, the Higher Rider Manager’s Undertaking and
the Ostria Manager’s Undertaking, and “ITM Manager’s Undertaking” means any of them;
	 
	 	 	“Loan Agreement” means the Principal Agreement as amended by this Deed;
	 
	 	 	“Management Termination Date” means any date on which an Existing Management Agreement for a
Vessel is terminated and the New Management Agreement for that Vessel is entered into;
	 
	 	 	“Mortgage Addenda” means any mortgage addenda entered into or, as the context may require to
be entered into, in relation to the Mortgages in connection with this Deed substantiality in
the form annexed hereto as Schedule 7;
	 
	 	 	“New Management Agreements” means:

	 	(a)	 	in relation to ALTIUS, the new management agreement entered or to be entered into
between the Altius Owner and the New Manager;
	 
	 	(b)	 	in relation to FORTIUS, the new management agreement entered or to be entered
into between the Fortius Owner and the New Manager;
	 
	 	(c)	 	in relation to HIGH LAND, the new management agreement entered or to be entered
into between the High Land Owner and the New Manager;
	 
	 	(d)	 	in relation to HIGH RIDER, the new management agreement entered or to be entered
into between the High Rider Owner and the New Manager;
	 
	 	(e)	 	in relation to OSTRIA, the new management agreement entered or to be entered into
between the Ostria Owner and the New Manager; and
	 
	 	(f)	 	in relation to NORDANVIND, the new technical management agreement entered or to
be entered into between the Nordanvind Owner and Ernst Jacob and the new commercial
management agreement entered or to be entered into between the Nordanvind Owner and AMT.

	 	 	and “New Management Agreement” means any of them;
	 
	 	 	“New Manager” means NewLead Shipping S.A.;
	 
	 	 	“New Manager’s Undertakings” means:

	 	(a)	 	in relation to ALTIUS, the new manager’s undertaking executed or to be executed
by the New Manager in favour of the Agent;
	 
	 	(b)	 	in relation to FORTIUS, the new manager’s undertaking executed or to be executed
by the New Manager in favour of the Agent;
	 
	 	(c)	 	in relation to HIGH LAND, the new manager’s undertaking executed or to be
executed by the New Manager in favour of the Agent;
	 
	 	(d)	 	in relation to HIGH RIDER, the new manager’s undertaking executed or to be
executed by the New Manager in favour of the Agent;

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	 	(e)	 	in relation to OSTRIA, the new manager’s undertaking executed or to be executed
by the New Manager in favour of the Agent; and
	 
	 	(f)	 	in relation to NORDANVIND, the new manager’s undertaking executed or to be
executed by Ernst Jacob in favour of the Agent and the new manager’s undertaking
executed or to be executed by AMT in favour of the Agent,

	 	 	and “New Manager’s Undertaking” means any of them, each in substantially the form annexed
hereto as Schedule 6;
	 
	 	 	“Nordanvind Owner” means Enmina Marine Limited of Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro MH96960, Marshall Islands;
	 
	 	 	“Ostria Owner” means Ostria Waves Ltd of Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro MH96960, Marshall Islands;
	 
	 	 	“Ostria Management Agreement” means the technical management agreement dated 30 August 2007
and made between ITM and the Ostria Owner in respect of OSTRIA;
	 
	 	 	“Ostria Manager’s Undertaking” means the Manager’s Undertaking dated 13 October 2009 executed
by ITM in favour of the Agent in respect of OSTRIA;
	 
	 	 	“Relevant Documents” means this Deed, the Mortgage Addenda, the Supplemental Mortgages and
the New Manager’s Undertakings;
	 
	 	 	“Relevant Parties” means the Borrower, the Corporate Guarantors and the Managers or, where
the context so requires or permits, means any or all of them;
	 
	 	 	“Replacement Manager” means Ernst Jacob or the New Manager or AMT, as the case may be;
	 
	 	 	“Stena Compass Deed of Covenant” means the Deed of Covenant dated 13 October 2009 made
between Compass Overseas Ltd. and the Agent in respect of the Stena Compass;
	 
	 	 	“Stena Compassion Deed of Covenant” means the Deed of Covenant dated 13 October 2009 made
between Compassion Overseas Ltd. and the Agent in respect of the Stena Compassion;
	 
	 	 	“Supplemental Mortgages” means the second priority Bermudian ship Mortgages entered into or,
as the context may require, to be entered into in relation to the Stena Compass and the Stena
Compassion substantially in the form annexed hereto as Schedule 8;
	 
	 	 	“Vessel Owners” means, to the extent that the relevant Vessel Owner continues to own its
Vessel, the Altius Owner, the Fortius Owner, the High Land Owner, the High Rider Owner, the
Ostria Owner and the Nordanvind Owner and “Vessel Owner” means any of them; and
	 
	 	 	“Vessels” means, to the extent that the relevant Vessel remains in the ownership of the
relevant Vessel Owner, ALTIUS, FORTIUS, HIGH LAND, HIGH RIDER, OSTRIA and NORDANVIND and
“Vessel” means any of them.
	 
	1.3	 	Principal Agreement
	 
	 	 	References in the Principal Agreement to “this Agreement” shall, with effect from the
Effective Date and unless the context otherwise requires, be references to the Principal
Agreement as amended by this Deed and words such as “herein”, “hereof”, “hereunder”,
“hereafter”, “hereby” and “hereto”, where they appear in the Principal Agreement, shall be
construed accordingly.
	 
	1.4	 	Headings
	 
	 	 	Clause headings and the table of contents are inserted for convenience of reference only and
shall be ignored in the interpretation of this Deed.

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	1.5	 	Construction of certain terms
	 
	 	 	Clause 1.4 of the Principal Agreement shall apply to this Deed (mutatis mutandis) as if set
out herein and as if references therein to “this Agreement” were references to this Deed.
	 
	1.6	 	For the purpose of this Deed each of the Owners and the Managers acknowledge and confirm
that they have received a copy of the Loan Agreement and are aware of all of the provisions
hereof including, in particular, clause 1.2 (Definitions) of the Loan Agreement.
	 
	2	 	Agreement of the Finance Parties
	 
	2.1.1	 	The Finance Parties, relying upon the representations and warranties on the part of the
Borrower, the Corporate Guarantors and the Managers contained in clause 6 of this Deed, agree
with the Borrower that, subject to the terms and conditions of this Deed and in particular,
but without prejudice to the generality of the foregoing, fulfilment on or before the date
being ten Banking Days from the date of this Deed of the conditions contained in clause 7.1
and Part 1 of Schedule 5 the Principal Agreement shall be amended on the terms set out in
clause 3;
	 
	2.2	 	The Finance Parties, relying upon the representations and warranties on the part of the
Borrower, the Corporate Guarantors and the Managers contained in clause 6 of this Deed, agree
with the Borrower that, subject to the terms and conditions of this Deed and in particular,
but without prejudice to the generality of the foregoing, in respect of each Vessel,
fulfilment on or before the relevant Management Termination Date for that Vessel of the
conditions contained in clause 7.2 and Part 2 of Schedule 5:
	 
	2.2.1	 	the relevant Vessel Owner shall be permitted to terminate the relevant Existing Management
Agreement for that Vessel and to enter into the New Management Agreement for that Vessel with
the relevant Replacement Manager;
	 
	2.2.2	 	the appointment of the relevant Replacement Manager as technical or commercial manager as
appropriate for the relevant Vessel is hereby approved; and
	 
	2.2.3	 	the relevant Existing Manager shall be released from its obligations under the relevant
Existing Manager’s Undertaking.
	 
	3	 	Amendments to Principal Agreement
	 
	3.1	 	Amendments
	 
	 	 	The Principal Agreement shall, with effect on and from the Effective Date, be (and it is
hereby) amended as follows:
	 
	3.1.1	 	A new definition of “Mortgage Addenda” shall be inserted into clause 1.2 as follows:
	 
	 	 	““Mortgage Addenda” means any Mortgage Addenda entered into or, as the context may require to
be entered into in connection with the Supplemental Deed;”;
	 
	3.1.2	 	A new definition of “Supplemental Deed” shall be inserted into clause 1.2 as follows:
	 
	 	 	““Supplemental Deed” means the supplemental deed dated                     2010 made
between, amongst others, the Borrower, the Banks, the Arrangers, the Co-Arrangers, the Swap
Banks, the Agent, the Owners and the Managers;”;
	 
	3.1.3	 	A new definition of “Supplemental Mortgages” shall be inserted into clause 1.2 as follows:
	 
	 	 	“Supplemental Mortgages” means the second priority Bermudian ship Mortgages entered into or,
as the context may require, to be entered into in connection with the Supplemental Deed in
relation to the Stena Compass and the Stena Compassion;”;

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	3.1.4	 	The definition of “Security Documents” in clause 1.2 shall be amended by the deletion of
the word “and” following the words “(l) the Share Charges” and the insertion of the words “;
(n) the Supplemental Deed, (o) the Mortgage Addenda; and (p) the Supplemental Mortgages”
following the words “(m) the Tripartite Deeds;”;
	 
	3.1.5	 	The definition of “Security Requirement” in clause 1.2 of the Principal Agreement shall be
deleted and replaced with the following:
	 
	 	 	““Security Requirement” means the amount in Dollars (as certified by the Agent whose
certificate shall, in the absence of manifest error, be conclusive and binding on the
Borrower and the Banks) which is at any relevant time from and including the date falling 30
months after the Drawdown Date up to and including the date falling 36 months after the
Drawdown Date one hundred per cent (100%) of the Loan and thereafter throughout the rest of
the Security Period one hundred and twenty per cent (120%) of the Loan, and for the purposes
of this definition any part of the Loan which shall have been prepaid using any part of the
Minimum Liquidity in accordance with clause 4.4 shall be deemed to remain unpaid and due and
owing to the Banks;”;
	 
	3.1.6	 	In clause 3.4 the words “4.4”, shall be inserted after the words “a prepayment pursuant to
clauses 4.2, 4.3,”;
	 
	3.1.7	 	In clauses 4.2 and 4.3 of the Principal Agreement all references to “4.7” shall be deemed
to refer to “4.8”;
	 
	3.1.8	 	A new clause 4.4 shall be inserted into the Principal Agreement as follows, and all
subsequent sub-clauses shall be renumbered accordingly:

	 	“4.4 	 	 Prepayment using the Minimum Liquidity
	 
	 	 	 	Subject to clause 4.8, the Borrower may apply all or any part of the Minimum Liquidity
constituted by Cash only in prepayment of the Loan provided that any such amount so
prepaid shall, provided no Default has occurred and is continuing or will occur as a
result of such re-borrowing, be made available by the Banks for re-borrowing without
restriction and, in particular, the provisions of clause 3.6 shall not apply to any
sums so re-borrowed in accordance with this clause 4.4. For the avoidance of doubt (a)
any part of the Minimum Liquidity constituted by Cash which is applied in prepayment of
the Loan pursuant to this clause 4.4 shall, for so long as no Default has occurred and
is continuing, be deemed to constitute part of Minimum Liquidity for the purposes of
clauses 8.4 and 8.5 and shall continue to be available for re-borrowing pursuant to the
provisions of this clause 4.4 and (b) all sums re-borrowed under this clause 4.4 shall
be credited by the Banks to the Earnings Account or such other blocked account charged
in favour of the Agent as shall be acceptable to the Agent and, provided that no
Default has occurred or is continuing, shall be deemed to constitute Cash for the
purposes of determining the Minimum Liquidity”;

	3.1.9	 	Clause 4.4 of the Principal Agreement shall be renumbered as clause 4.5, and all
references therein to clauses “4.4.1”, “4.4.2” and “4.4.3” shall be deemed to be references
to clauses “4.5.1”, “4.5.2” and “4.5.3”;
	 
	3.1.10	 	Clause 4.5 of the Principal Agreement shall be renumbered as clause 4.6 and all references
therein to clauses “4.5”, “4.5.1”, “4.5.2”, “4.5.3”, “4.5.4” and “4.5.5” shall be deemed to
be references to clauses “4.6”, “4.6.1”, “4.6.2”, “4.6.3”, “4.6.4” and “4.6.5”;
	 
	3.1.11	 	In clause 4.5.1 of the Principal Agreement, the reference to “clause 4.4” shall be deemed
to be a reference to “clause 4.5”.
	 
	3.1.12	 	Clause 4.6 of the Principal Agreement shall be renumbered as clause 4.7 and the words “but
excluding for the avoidance of doubt, clause 4.4” shall be inserted into that clause after
the words “pursuant to clauses 4.2, 4.3, 7.2.1 and 12.1”;

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	3.1.13	 	Clause 4.7 of the Principal Agreement shall be deleted and replaced with the following:

	 	“4.8	 	 Notice of prepayment; reduction of repayment instalments
	 
	 	4.8.1	 	No prepayment may be effected under clause 4.2, 4.3 or 4.4 unless the Borrower
shall have given the Agent (who shall notify each Bank thereof of the intended
prepayment) at least ten (10) Banking Days’ notice of its intention to make such
prepayment. Every notice of prepayment shall be effective only on actual receipt by the
Agent, shall be irrevocable, shall specify the amount to be prepaid and shall oblige the
Borrower to make such prepayment on the date specified. No amount prepaid may (other
than as provided in clauses 4.3 and 4.4) be re-borrowed and no amount cancelled may be
borrowed. Any amount prepaid or cancelled pursuant to clauses 4.2, 4.3, 4.4, 4.5
(except 4.5.2 and 4.5.3) or 8.2.1 shall be applied in reducing the repayment instalments
under clause 4.1 in inverse order of their due dates for payment (and for the avoidance
of doubt any amount subsequently re-borrowed pursuant to clauses 4.3 and 4.4 shall be
added to the repayment instalment from which they were deducted as aforesaid). Any
amount prepaid pursuant to clause 4.5.2 and 4.5.3 shall be applied against the repayment
instalments and the balloon under clause 4.1 on a pro rata basis. No amount which has
been re-borrowed pursuant to clause 4.3 and which is prepaid may again be re-borrowed,
but for the avoidance of doubt any amount which has been re-borrowed pursuant to clause
4.4 and which is prepaid may again be re-borrowed in accordance with the provisions of
clause 4.4.
	 
	 	4.8.2	 	The Borrower may not prepay the Loan or any part thereof save as expressly
provided in this Agreement.”

	3.1.14	 	Clause 5.1.3 of the Principal Agreement shall be renumbered as clause 5.1.4 and a new
clause 5.1.3 shall be inserted as follows:

	 	“5.1.3	 	From the date on which the Borrower makes any prepayment of the Loan in accordance
with clause 4.4, the Borrower shall pay to the Agent for distribution to the Banks
quarterly in arrears a commitment commission at the rate of one per cent (1%) per annum
on any amount which is prepaid by the Borrower pursuant to clause 4.4 and which remains
available for re-borrowing in accordance with clause 4.4.”

	3.1.15	 	In clause 8.2.1 of the Principal Agreement, the reference to “clause 4.7” shall be deemed
to be a reference to “clause 4.8”.
	 
	3.1.16	 	In clause 8.4 of the Principal Agreement the definition of “Cash” shall be deleted and
replaced with the following:

	 	 	““Cash” means free and available negotiable money, orders, cheques and bank balances but to
exclude:

	 	(a)	 	Any cash that is specifically blocked and charged; and
	 
	 	(b)	 	cash standing to the credit of any blocked account and charged to the Agent
pursuant to this Agreement, other than pursuant to clause 4.4;”;

	3.1.17	 	In clause 11.1.3 of the Principal Agreement the words “4.4”, shall be inserted after the
words “clause 4.2, 4.3,”.
	 
	3.2	 	Continued force and effect
	 
	 	 	Save as amended by this Deed, the provisions of the Principal Agreement shall continue in
full force and effect and the Principal Agreement and this Deed shall be read and construed
as one instrument.

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	4	 	Amendments to the Stena Compass Deed of Covenant
	 
	4.1	 	Compass Overseas Ltd. and the Security Trustee agree that the Stena Compass Deed of
Covenant will, as from the Effective Date, be amended as follows:
	 
	4.1.1	 	In clause 1.2 the definition of “Mortgage” shall be deleted and replaced with the
following:
	 
	 	 	“Mortgage” means the statutory mortgage referred to in recital (F) and any other mortgage
that may be executed by the Owner in favour of the Mortgagee on the Ship, whether this be
a second priority mortgage or any other subsequent priority mortgage of all the shares in
the Ship”;
	 
	4.2	 	Save as amended by this Deed, the provisions of the Stena Compass Deed Covenant shall
continue in full force and effect and the Stena Compass Deed of Covenant and this Deed shall
be read and construed as one instrument.
	 
	5	 	Amendments to the Stena Compassion Deed of Covenant
	 
	5.1	 	Compassion Overseas Ltd. and the Security Trustee agree that the Stena Compassion Deed of
Covenant will, as from the Effective Date, be amended as follows:
	 
	5.1.1	 	In clause 1.2, the definition of “Mortgage” shall be deleted and replaced with the
following:
	 
	 	 	““Mortgage” means the statutory mortgage referred to in recital (F) and by any other
mortgage that may be executed by the Owner in favour of the Mortgagee on the Ship whether
this be a second priority mortgage or another subsequent priority mortgage of all the
shares in the Ship;”.
	 
	5.2	 	Save as amended by this Deed, the provisions of the Stena Compassion Deeds Covenant shall
continue in full force and effect and the Stena Compassion Deed of Covenant and this Deed
shall be read and construed as one instrument.
	 
	6	 	Representations and warranties
	 
	6.1	 	Primary representations and warranties
	 
	 	 	Each of the Borrower, the Corporate Guarantors and the Managers represents and warrants to
the Bank that:
	 
	6.1.1	 	Existing representations and warranties
	 
	 	 	the representations and warranties set out in clause 7 of the Principal Agreement, clause 4
of the Owner’s Guarantees and clause 3 of the Managers’ Undertakings were true and correct on
the date of the Principal Agreement, the Owners’ Guarantees and the Managers’ Undertakings
respectively and are true and correct, including to the extent that they may have been or
shall be amended by this Deed, as if made at the date of this Deed with reference to the
facts and circumstances existing at such date and the representation and warranty set out (i)
in clause 7.1.9 of the Principal Agreement shall refer to the latest audited financial
statements delivered under clause 8.1.5 of the Principal Agreement; and (ii) in clause 4.1.6
of the Corporate Guarantee shall refer to the latest audited financial statements delivered
under clause 5.1.4 of the Corporate Guarantee;
	 
	6.1.2	 	Corporate power

	 	(a)	 	each of the Relevant Parties is duly incorporated and validly existing
under the laws of the jurisdiction of its incorporation as a limited liability
company or corporation and has no centre of main interests, permanent establishment
or place of business outside the jurisdiction in which it is incorporated; and

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	 	(b)	 	each of the Relevant Parties has power to execute, deliver and perform its
obligations under the Relevant Documents to which it is or is to be a party; all
necessary corporate, shareholder and other action has been taken by each of the
Relevant Parties to authorise the execution, delivery and performance of the Relevant
Documents to which it is or is to be a party;

	6.1.3	 	Binding obligations
	 
	 	 	the Relevant Documents to which it is or is to be a party constitute valid and legally
binding obligations of each of the Relevant Parties enforceable in accordance with their
terms;
	 
	6.1.4	 	No conflict with other obligations
	 
	 	 	the execution, delivery and performance of each of the Relevant Documents to which it is or
is to be a party by each of the Relevant Parties will not (i) contravene any existing law,
statute, rule or regulation or any judgment, decree or permit to which any of the Relevant
Parties is subject, (ii) conflict with, or result in any breach of any of the terms of, or
constitute a default under, any agreement or other instrument to which any of the Relevant
Parties is a party or is subject or by which it or any of its property is bound or (iii)
contravene or conflict with any provision of the constitutional documents of any of the
Relevant Parties or (iv) result in the creation or imposition of or oblige any of the
Relevant Parties to create any Encumbrance (other than a Permitted Encumbrance) on any of the
undertakings, assets, rights or revenues of any of the Relevant Parties;
	 
	6.1.5	 	No litigation
	 
	 	 	no litigation, arbitration or administrative proceeding is taking place, pending or, to the
knowledge of the officers of each of the Relevant Parties, threatened against the Relevant
Parties which would have a material adverse effect on the business, assets or financial
condition of the Relevant Parties;
	 
	6.1.6	 	No filings required
	 
	 	 	save for the registration of addenda and/or supplements to the Mortgages through the relevant
Registry in the relevant Flag State, it is not necessary to ensure the legality, validity,
enforceability or admissibility in evidence of any of the Relevant Documents that they or any
other instrument be notarised, filed, recorded, registered or enrolled in any court, public
office or elsewhere in any Relevant Jurisdiction or that any stamp, registration or similar
tax or charge be paid in any Relevant Jurisdiction on or in relation to the Relevant
Documents and each of the Relevant Documents is in proper form for its enforcement in the
courts of each Relevant Jurisdiction;
	 
	6.1.7	 	Choice of law
	 
	 	 	the choice of English law to govern the Relevant Documents (other than the Mortgage, Addenda,
which shall be governed by the laws of the Republic of the Marshall Islands, and the
Supplemental Mortgages, which shall be governed by the Bermudian law) and the submissions by
the Relevant Parties to the non-exclusive jurisdiction of the English courts are valid and
binding;
	 
	6.1.8	 	No immunity
	 
	 	 	none of the Relevant Parties nor any of their respective assets is entitled to immunity on
the grounds of sovereignty or otherwise from any legal actions or proceeding (which shall
include, without limitation, suit, attachment prior to judgement, execution or other
enforcement); and
	 
	6.1.9	 	Consents obtained
	 
	 	 	every consent, authorisation, licence or approval of, or registration or declaration to,
governmental or public bodies or authorities or courts required by any of the Relevant
Parties in

9

 

	 	 	connection with the execution, delivery, validity, enforceability or admissibility in
evidence of the Relevant Documents to which it is or will become a party or the performance
by any of the Relevant Parties of their respective obligations under such documents has been
obtained or made and is in full force and effect and there has been no default in the
observance of any conditions or restrictions (if any) imposed in, or in connection with, any
of the same.
	 
	6.2	 	Repetition of representations and warranties
	 
	 	 	Each of the representations and warranties contained in clause 6.1 of this Deed and clause 7
of the Principal Agreement as amended by this Deed, clause 4 of the Corporate Guarantee and
clause 3 of the Managers’ Undertakings shall be deemed to be repeated by the Borrower, the
Corporate Guarantors and the Managers on the Effective Date and each Management Termination
Date as if made with reference to the facts and circumstances existing on such day.
	 
	7	 	Conditions
	 
	7.1	 	Effective Date
	 
	 	 	The agreement of the Finance Parties referred to in clause 2.1.1 shall be subject to the
receipt by the Agent or its duly authorised representative of the documents and evidence
specified in Part 1 of Schedule 5 in form and substance satisfactory to the Agent.
	 
	7.2	 	Management Termination Date
	 
	 	 	The agreement of the Finance Parties referred to in clause 2.2 shall be subject to the
receipt by the Agent or its duly authorised representative of the documents and evidence
specified in Part 2 of Schedule 5 in form and substance satisfactory to the Agent.
	 
	7.3	 	General conditions precedent
	 
	 	 	The agreement of the Finance Parties referred to in clause 2 shall be further subject to:
	 
	7.3.1	 	the representations and warranties in clause 6 being true and correct on the Effective
Date and each Management Termination Date as if each was made with respect to the facts and
circumstances existing at such time; and
	 
	7.3.2	 	no Default having occurred and continuing at the time of the Effective Date and each
Management Termination Date.
	 
	7.4	 	Waiver of conditions precedent
	 
	 	 	The conditions specified in this clause 7 are inserted solely for the benefit of the Finance
Parties and may be waived by the Banks in whole or in part with or without conditions.
	 
	8	 	Guarantors’ and Managers’ confirmations
	 
	8.1	 	Owners’ Guarantees
	 
	 	 	The Corporate Guarantors hereby confirm their consent to the amendments to the Principal
Agreement contained in this Deed and agree that:
	 
	8.1.1	 	the Owner’s Guarantees, and the obligations of the relevant Corporate Guarantor
thereunder, shall remain and continue in full force and effect notwithstanding the said
amendments to the Principal Agreement contained in this Deed and shall secure all sums due
and payable under the Principal Agreement as amended by this Deed; and
	 
	8.1.2	 	with effect from the Effective Date references in the Owner’s Guarantees to the
“Agreement” shall henceforth be reference to the Principal Agreement as amended by this Deed
and shall

10

 

	 	 	also be deemed to include this Deed and the obligations of the Borrower thereunder and hereunder.
	 
	8.2	 	Manager’s Undertakings
	 
	 	 	The Managers hereby confirm their consent to the amendments to the Principal Agreement
contained in this Deed and agree that:
	 
	8.2.1	 	the Managers’ Undertakings, and the obligations of the relevant Managers thereunder, shall
remain and continue in full force and effect notwithstanding the said amendments to the
Principal Agreement contained in this Deed and shall secure all sums due and payable under
the Principal Agreement as amended by this Deed; and
	 
	8.2.2	 	with effect from the Effective Date references in the Managers’ Undertakings to the
“Agreement” shall henceforth be reference to the Principal Agreement as amended by this Deed
and shall also be deemed to include this Deed and the obligations of the Borrower thereunder
and hereunder.
	 
	8.3	 	Security Documents
	 
	 	 	The Borrower, the Corporate Guarantors and the Managers each further acknowledge and agree,
for the avoidance of doubt, that:
	 
	8.3.1	 	each of the other Security Documents to which it is a party, and its obligations
thereunder, shall remain in full force and effect notwithstanding the amendments made to the
Principal Agreement by this Deed and shall secure all sums due and payable under the
Principal Agreement as amended by this Deed;
	 
	8.3.2	 	with effect from the Effective Date, references to “the Agreement” or “the Loan Agreement”
in any of the other Security Documents to which it is a party shall henceforth be a reference
to the Principal Agreement as amended by this Deed and as from time to time hereafter
amended; and
	 
	8.3.3	 	with effect from the Effective Date, references to “Aries Maritime Transport Limited” in
any of the other Security Documents to which it is a party shall hence forth be a reference
to “Newlead Holdings Ltd. (formerly known as Aries Maritime Transport Limited)”.
	 
	9	 	Fees and expenses
	 
	9.1	 	Expenses
	 
	 	 	The Borrower agrees to pay to the Agent on a full indemnity basis on demand all expenses
(including legal and out-of-pocket expenses) reasonably incurred by the Agent:
	 
	9.1.1	 	in connection with the negotiation, preparation, execution and, where relevant,
registration of this Deed and the other Relevant Documents and of any amendment or extension
of or the granting of any waiver or consent under this Deed or the other Relevant Documents;
	 
	9.1.2	 	in contemplation of, or otherwise in connection with, the enforcement of, or preservation
of any rights under this Deed or the other Relevant Documents or otherwise in respect of the
monies owing and obligations incurred under this Deed and the other Relevant Documents,
	 
	 	 	together with interest at the rate referred to in clause 3.4 of the Principal Agreement from
the date on which such expenses were incurred to the date of payment (as well after as before
judgment).
	 
	9.2	 	Value Added Tax
	 
	 	 	All fees and expenses payable pursuant to this clause 9 shall be paid together with value
added tax or any similar tax (if any) properly chargeable thereon.

11

 

	9.3	 	Stamp and other duties
	 
	 	 	The Borrower agrees to pay to the Agent on demand all stamp, documentary, registration or
other like duties or taxes (including any duties or taxes payable by the Agent) imposed on or
in connection with this Deed and the other Relevant Documents and shall indemnify the Agent
against any liability arising by reason of any delay or omission by the Borrower to pay such
duties or taxes.
	 
	10	 	Miscellaneous and notices
	 
	10.1	 	Notices
	 
	10.1.1	 	The provisions of clause 17.1 of the Principal Agreement as amended by this Deed shall
extend and apply to the giving or making of notices or demands hereunder as if the same were
expressly stated herein and for this purpose any notices to be sent to the Corporate
Guarantors shall be sent to the address of the Corporate Guarantors referred to in clause 8.1
of the Corporate Guarantees;
	 
	10.2	 	Counterparts
	 
	 	 	This Deed may be executed in any number of counterparts and by the different parties on
separate counterparts, each of which when so executed and delivered shall be an original but
all counterparts shall together constitute one and the same instrument.
	 
	11	 	Applicable law
	 
	11.1	 	Contracts (Rights of Third Parties) Act 1999
	 
	 	 	No term of this Deed is enforceable under the Contracts (Rights of Third Parties) Act 1999 by
a person who is not a party to this Deed.
	 
	11.2	 	Law
	 
	 	 	This Deed and any non-contractual obligations connected with it are governed by and shall be
construed in accordance with English law.
	 
	11.3	 	Submission to jurisdiction
	 
	 	 	Each of the Borrower, the Corporate Guarantors, and the Managers agree, for the benefit of
the Finance Parties, that any legal action or proceedings arising out of or in connection
with this Deed against any of the Borrower, the Corporate Guarantors or the Managers or any
of its assets may be brought in the English courts. Each of the Borrower, the Corporate
Guarantors and the Managers irrevocably and unconditionally submits to the jurisdiction of
such courts and irrevocably designates, appoints and empowers HFW Nominees Limited at present
of Friary Court, 65 Crutched Friars, London EC3N 2AE England to receive for it and on its
behalf, service of process issued out of the English courts in any such legal action or
proceedings. The submission to such jurisdiction shall not (and shall not be construed so as
to) limit the right of the Finance Parties to take proceedings against any of the Borrower,
the Corporate Guarantors and the Managers in the courts of any other competent jurisdiction
nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of
proceedings in any other jurisdiction, whether concurrently or not. The parties further
agree that only the Courts of England and not those of any other State shall have
jurisdiction to determine any claim which any of the Borrower, the Corporate Guarantors and
the Managers may have against the Creditors arising out of or in connection with this Deed.

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

12

 

Schedule 1

Names and addresses of the Banks

	 	 	 
	Name	 	Address and fax
	 
	 	 
	Bank of Scotland plc

	 	New Uberior House

11 Earl Grey Street

Edinburgh EH3 9BN

Scotland
	 
	 	 
	 

	 	Fax: +44 131 659 1300
	 
	 	 
	Nordea Bank Finland plc, London
Branch

	 	8th Floor

City Place House

55 Basinghall Street

London EC2V 5HB

England
	 
	 	 
	 

	 	Fax: +44 207 726 9188
	 
	 	 
	HSH Nordbank AG

	 	Gerhart — Hauptmann-Platz 50

20095 Hamburg

Germany
	 
	 	 
	 

	 	Fax: +49 40 3333 34118
	 
	 	 
	The Governor and Company of the
Bank of Ireland

	 	Bank of Ireland Head Office

A3 Lower Baggot St

Dublin 2

Attention: Maritime Finance
	 

	 	Fax no: +353 1 611 5411
	 
	 	 
	Sumitomo Mitsui Banking
Corporation, Brussels Branch

	 	Avenue des Arts 58

Box 18

1000 Brussels, Belgium
	 
	 	 
	 

	 	Fax: +44 (0)207 786 1569

Att: European Loan Operations

Email: GBLOOADLOANELO@gb.smbcgroup.com
	 
	 	 
	UniCredit Bank AG (formerly known
as Bayerische Hypo- und Vereinsbank
AG)

	 	Kardinal-Faulhaber-Str.1

80333 München acting through its office at

Alter Wall 22

20457

Hamburg
	 
	 	 
	 

	 	Fax: +49 40 3692 3696
	 
	 	 

13

 

	 	 	 
	Name	 	Address and fax
	 
	 	 
	Commerzbank Aktiengesellschaft

	 	Hamburg Branch

Ness 7-9,

D-20457 Hamburg

Germany
	 
	 	 
	 

	 	Fax: +49 (0)40 3683 2049

Att: Christin Germann
(Christin.Germann@commerzbank.com)
	 
	 	 
	General Electric Capital Corporation

	 	c/o GE Transportation Finance

201 High Ridge Road

Stamford

Connecticut 06927

USA
	 
	 	 
	 

	 	Fax: +1 203 585 0597
	 
	 	 
	Natixis

	 	68/76 quai de la Râpée

75012 Paris

France,
	 
	 	 
	 

	 	Fax : 01 58 19 36 72

Att : Didier Berger / Amélie Zucchi

Email : didier.berger@natixis.com

amelie.zucchi@natixis.com
	 
	 	 
	Swedbank AB (publ)

	 	Brunkebergstorg 8

Swedbank Shipping E421

SE-105 34 Stockholm

Sweden
	 
	 	 
	 

	 	Fax: +46 8 723 7150

Att: Dagobert Billsten and/or Christina Eng

Email: dagobert.billsten@swedbank.com,

christina.eng@swedbank.se

14

 

Schedule 2

The Co-arrangers

	 	 	 
	Name	 	Address and fax
	 
	 	 
	The Governor and Company of the
Bank of Ireland

	 	Bank of Ireland Head Office

A3 Lower Baggot St

Dublin 2
	 
	 	 
	 

	 	Attention: Maritime Finance

Fax no: +353 1 611 5411
	 
	 	 
	HSH Nordbank AG

	 	HSH Nordbank AG

Gerhart — Hauptmann-Platz 50

20095 Hamburg 

Germany
	 
	 	 
	 

	 	Fax: +49 40 3333 34118
	 
	 	 
	Sumitomo Mitsui Banking
Corporation, Brussels Branch

	 	Avenue des Arts 58

Box 18

1000 Brussels, Belgium
	 
	 	 
	 

	 	Fax: +44 (0)207 786 1569

Att: European Loan Operations

Email: GBLOOADLOANELO@gb.smbcgroup.com
	 
	 	 

15

 

Schedule 3

The Swap Banks

	 	 	 
	Name	 	Address and fax
	 
	 	 
	Bank of Scotland plc (formerly HBOS
Treasury Services plc)

	 	33 Old Broad Street

London

EC2N 1HZ
	 
	 	 
	 

	 	Fax: +44 20 7574 8133
	 
	 	 
	Nordea Bank Finland plc, London Branch

	 	8th Floor

City Place House

55 Basinghall Street

London EC2V 5HB

England
	 
	 	 
	 

	 	Fax: +44 207 726 9188
	 
	 	 
	The Governor and Company of the Bank of
Ireland

	 	Bank of Ireland Head Office

A3 Lower Baggot St

Dublin 2
	 
	 	 
	 

	 	Attention: Loans Administration

Fax no: +353 1 604 4796

	 
	 	 
	HSH Nordbank AG

	 	HSH Nordbank AG

Gerhart — Hauptmann-Platz 50

20095 Hamburg

Germany
	 
	 	 
	 

	 	Fax: +49 40 3333 34118
	 
	 	 
	SMBC Capital Markets, Inc.

	 	277 Park Avenue, 5th Floor

New York

NY 10172

USA
	 
	 	 
	 

	 	Fax : +1 212 224 4948

16

 

Schedule 4

The Corporate Guarantors

	 	 	 
	Name	 	Address
	 
	 	 
	Ermina Marine Limited

	 	Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH 96960, Marshall Islands
	 
	 	 
	Land Marine S.A.

	 	Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH 96960, Marshall Islands
	 
	 	 
	Rider Marine S.A.

	 	Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH 96960, Marshall Islands
	 
	 	 
	Altius Marine S.A.

	 	Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH 96960, Marshall Islands
	 
	 	 
	Fortius Marine S.A.

	 	Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH 96960, Marshall Islands
	 
	 	 
	Chinook Waves Corporation

	 	Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH 96960, Marshall Islands
	 
	 	 
	Ostria Waves Ltd.

	 	Trust Company Complex, Ajeltake Road, Ajeltake Island,

Majuro MH 96960, Marshall Islands
	 
	 	 
	Compass Overseas Ltd.

	 	Canon’s Court, 22 Victoria Street, Hamilton HM12, Bermuda
	 
	 	 
	Compassion Overseas Ltd.

	 	Canon’s Court, 22 Victoria Street, Hamilton HM12, Bermuda
	 
	 	 

17

 

Schedule 5

Part 1

Documents and evidence required as conditions precedent to the Effective

Date (referred to in clause 7.1)

	1	 	Corporate authorisation
	 
	 	 	in relation to each of the Relevant Parties:

	 	(a)	 	Constitutional documents
	 
	 	 	 	Copies, certified by an officer of each of the Relevant Parties as being true, complete
and up to date copies, of all documents which contain or establish or relate to the
constitution of that party or a secretary’s certificate confirming that there have been
no changes or amendments to the constitutional documents certified copies of which were
previously delivered to the Agent pursuant to the Principal Agreement;
	 
	 	(b)	 	Resolutions
	 
	 	 	 	copies of resolutions of each Relevant Party of its board of directors and its
shareholders/stockholders approving such of the Relevant Documents to which it is or is
to be a party and the terms and conditions hereof and thereof and authorising the
signature, delivery and performance of each such party’s obligations thereunder,
certified (in a certificate dated no earlier than five Banking Days prior to the date
of this Deed) by an officer of the Relevant Parties:

	 	(1)	 	being true and correct;
	 
	 	(2)	 	being duly passed at meetings of the directors of such Relevant Party
of such Relevant Party each duly convened and held;
	 
	 	(3)	 	not having been amended, modified or revoked; and
	 
	 	(4)	 	being in full force and effect

	 	 	 	together with originals or certified copies of any powers of attorney issued by any
party pursuant to such resolutions; and
	 
	 	(c)	 	Specimen Signatures
	 
	 	 	 	copies of the signatures of the persons who have been authorised on behalf of each
Relevant Party to sign such of the Relevant Documents to which such Relevant Party is
or is to be party and to give notices and communications, including notices of drawing,
under or in connection with the Relevant Documents, certified (in a certificate dated
no earlier than five (5) Banking Days prior to the Effective Date) by an Officer of
such Security party as being the true signature of such persons.
	 
	 	(d)	 	Certificate of incumbency
	 
	 	 	 	a list of directors and officers of each Relevant Party specifying the names and
positions of such persons, certified (in a certificate dated no earlier than five
Banking Days prior to the date of this Deed) by an officer of such Relevant Party to be
true, complete and up to date;

18

 

	2	 	Consents
	 
	 	 	a certificate (dated no earlier than five Banking Days prior to the Effective Date) from an
officer of each of the Relevant Parties stating that no consents, authorisations, licences or
approvals are necessary for such Relevant Party to authorise, or are required by each of the
Relevant Parties or any other party (other than the Creditors) in connection with, the
execution, delivery, and performance of the Relevant Documents to which they are or will be a
party;
	 
	3	 	Legal opinions

	 	(i)	 	an opinion in a form and substance satisfactory to the Finance Parties from
Conyers, Dill and Pearman, special legal advisers in Bermuda to the Finance Parties; and
	 
	 	(ii)	 	an opinion in a form and substance satisfactory to the Finance Parties from Blank
Rome LLP, special legal advisors in the Republic of the Marshall Islands to the Finance
Parties; and
	 
	 	(iii)	 	any such other opinions as may be required by the Finance Parties;

	4	 	Mortgage Addenda
	 
	 	 	the relevant Mortgage Addenda in relation to the ships duly executed;
	 
	5	 	Supplemental Mortgages
	 
	 	 	the relevant Supplemental Mortgages in relation to Stena Compass and Stena Compassion duly
executed;
	 
	6	 	Payments
	 
	 	 	payment by the Borrower of all fees and commissions currently due and payable by the
Borrowers to the Agent under the Loan Agreement;
	 
	7	 	Process agent
	 
	 	 	an original or certified true copy of a letter from the Borrower’s, the Corporate
Guarantors’, and/or the Manager’s agent for receipt of service of proceedings accepting its
appointment under this Deed as the Borrower’s, the Corporate Guarantors’ or the Managers’
process agent;
	 
	8	 	Further conditions
	 
	 	 	any such further conditions, opinions or evidence as may reasonably be required by the
Creditors.

19

 

Schedule 5

Part 2

Documents and evidence required as conditions precedent

to each Management Termination Date (referred to in clause 7.2)

	1	 	Conditions Precedent
	 
	 	 	Evidence that each of the conditions precedent set out in Part 1 of 0 remains fully satisfied;
	 
	2	 	Resolutions
	 
	 	 	copies of resolutions of each relevant Vessel Owner and the relevant Replacement Manager of
their respective board of directors and their respective shareholders/stockholders approving
the relevant New Management Agreement and New Managers Undertakings (as appropriate) to which
it is or is to be a party and the terms and conditions hereof and thereof and authorising the
signature, delivery and performance of each such party’s obligations thereunder, certified
(in a certificate dated no earlier than five Banking Days prior to the Management Termination
Date) by an officer of the relevant Vessel Owner or the relevant Replacement Manager (as
appropriate) as:

	 	(a)	 	being true and correct;
	 
	 	(b)	 	being duly passed at meetings of the directors of such relevant Vessel
Owner or the relevant Replacement Manager (as appropriate) each duly convened and
held;
	 
	 	(c)	 	not having been amended, modified or revoked; and
	 
	 	(d)	 	being in full force and effect

	 	 	together with originals or certified copies of any powers of attorney issued by any party
pursuant to such resolutions; and
	 
	3	 	Consents
	 
	 	 	a certificate (dated no earlier than five Banking Days prior to the relevant Management
Termination Date) from an officer of each the relevant Vessel Owner and the relevant
Replacement Manager stating that no consents, authorisations, licences or approvals are
necessary for them to authorise, or are required by each of the relevant Vessel Owner and the
relevant Replacement Manager or any other party (other than the Creditors) in connection
with, the execution, delivery, and performance of the New Management Agreement and/or the New
Manager’s Undertaking to which they are or will be a party;
	 
	4	 	Legal opinions

	 	(i)	 	an opinion in a form and substance satisfactory to the Finance Parties from
Conyers, Dill and Pearman, special legal advisers in Bermuda to the Finance Parties; and
	 
	 	(ii)	 	an opinion in a form and substance satisfactory to the Finance Parties from Blank
Rome LLP, special legal advisors in the Republic of the Marshall Islands to the Finance
Parties; and
	 
	 	(iii)	 	an opinion in a form and substance satisfactory to the Finance Parties from
Norton Rose Germany, special legal advisers in Germany to the Finance Parties; and

20

 

	 	(iv)	 	an opinion in a form and substance satisfactory to the Finance Parties from
Patton, Moreno & Asvat, special legal advisers in panama to the Finance Parties; and
	 
	 	(v)	 	any such other opinions as may be required by the Finance Parties.

	5	 	New Management Agreements

	 	(a)	 	the relevant New Management Agreement to be in a form and substance
(including without limitation as to the level of management fee payable) satisfactory
to the Agent; and
	 
	 	(b)	 	evidence satisfactory to the Agent that the relevant New Management
Agreement in relation to the relevant Vessel has been entered into and is in full
force and effect;

	6	 	Manager’s Undertakings
	 
	 	 	the relevant New Manager’s Undertaking in relation to the Vessel duly executed;
	 
	7	 	Notice of assignment and acknowledgements
	 
	 	 	copies of duly executed notices of assignment in relation to the Vessel required by the terms
of the relevant New Manager’s Undertaking and in the form prescribed by the relevant New
Manager’s Undertaking;
	 
	8	 	Manager’s Remuneration
	 
	 	 	evidence satisfactory to the Agent that all sums due and owing by the relevant Vessel Owner
to the relevant Existing Manager under the relevant Existing Management Agreement in respect
of Manager’s remuneration for the relevant Vessel has been or will be paid in full and that
the relevant Existing Manager has no claims of whatsoever nature either against the relevant
Vessel or the relevant Vessel Owner;
	 
	9	 	Further conditions
	 
	 	 	any such further conditions, opinions or evidence as may reasonably be required by the
Creditors.

21

 

Schedule 6

Form of Manager’s Undertaking

Manager’s Undertaking

	 	 	 

	To:

	 	Bank of Scotland plc
	 

	 	Agency Team
	 

	 	1st Floor, Citymark
	 

	 	150 Fountainbridge
	 

	 	Edinburgh EH3 9PE
	 

	 	Scotland
	 
	 	 
	From:

	 	[NewLead Shipping SA]
	 

	 	[Ernst Jacob Shipmanagement GmbH]
	 

	 	[AMT Management Ltd.]

2010

Dear Sirs

US$221,429,999 Loan to NewLead Holdings Ltd (formerly known as Aries Maritime Transport
Limited)

	1	 	Facility Agreement
	 
	 	 	We understand that:

	 	(c)	 	by an agreement dated 13 October 2009 as supplemented and amended by a
supplemental agreement dated [•] 2010 (the “Facility Agreement”) and made between
(1) Newlead Holdings Ltd. (formerly known as Aries Maritime Transport Limited) (therein
and hereinafter referred to as the “Borrower”), (2) the banks and financial institutions
set out at Schedule 1, Part 1 to the Facility Agreement as lenders (the “Banks”), (3)
Bank of Scotland plc and Nordea Bank Finland plc as joint lead arrangers (the
“Arrangers”), (4) the banks and financial institutions set out at Schedule 1, Part 3 to
the Facility Agreement in their capacity as co-arrangers (the “Co-Arrangers”), (5) the
banks and financial institutions set out at Schedule 1, Part 2 to the Facility Agreement
in their capacity as swap banks (the “Swap Banks”) and (6) Bank of Scotland plc (the
“Agent”, and together with the Banks, the Arrangers, the Co Arrangers and the Swap
Banks, the “Finance Parties” and each a “Finance Party”) as agent, security agent and
trustee for and on behalf of the Finance Parties, the Banks agreed (inter alia) to
advance to the Borrower upon the terms and conditions therein contained the aggregate
sum of up to two hundred and twenty one million, four hundred and twenty nine thousand,
nine hundred and ninety nine Dollars ($221,429,999) (the “Loan”);
	 
	 	(d)	 	by master swap agreements each comprising of an ISDA Master Agreement and
Schedule thereto and any confirmations (as defined therein) supplemental thereto made
between the Borrower and each Swap Bank, dated as of 30 August 2005 in respect of each
of Bank of Scotland plc (formerly HBOS Treasury Services plc) and Nordea Bank Finland
plc, London Branch, 3 April 2006 in respect of each of The Governor and Company of the
Bank of Ireland and SMBC Capital Markets, Inc. and 13 October 2009 in respect of HSH
Nordbank AG (each as supplemented and amended from time to time) (together, the “Master
Swap Agreements” and each a “Master Swap Agreement”), the Borrower agreed the terms and

22

 

	 	 	 	conditions upon which it shall enter into interest rate swap transactions with each of
the Swap Banks;
	 
	 	(e)	 	pursuant to an intra-group loan agreement dated 13 October 2009 (the “Intra-Group
Loan Agreement”) and made between (1) the Borrower (therein referred to as the Lender)
and (2) [ALTIUS MARINE S.A.][FORTIUS MARINE S.A.] [LAND MARINE S.A.][RIDER MARINE
S.A.][OSTRIA WAVES LTD.] [ERMINA MARITIME LIMITED] (the “Owner”, therein referred to as
the Borrower), the Borrower has agreed to on-lend to the Owner the sum of
[thirty-five][thirty-five][ten][ten][ten][twelve] million Dollars
($[35,000,000][35,000,000][10,000,000][10,000,000][10,000.000][12,000,000]) being part
of the Loan to assist the Owner in refinancing the Ship (as hereinafter defined);
	 
	 	(f)	 	by a corporate guarantee dated 13 October 2009 (the “Corporate Guarantee”) and
executed by (1) the Owner in favour of (2) the Agent (as security agent and trustee for
and on behalf of the Finance Parties), the Owner has guaranteed to pay to the Agent all
moneys and to discharge all obligations and liabilities now or hereafter due or owing or
incurred by the Borrower to the Finance Parties or any of them under or pursuant to the
Facility Agreement, the Master Swap Agreements, the Corporate Guarantee and the other
Security Documents (as defined in the Facility Agreement) and all interest and all other
costs and expenses;
	 
	 	(g)	 	it is a condition to the Banks’ agreement to make the Loan to the Borrower that
we [NewLand Shipping S.A.] [Ernst Jacob Ship Management GmbH] [AMT Management Ltd] (the
“Manager”) enter into this letter in favour of the Agent.

	2	 	Confirmation of appointment
	 
	 	 	We hereby confirm that we have been appointed as the [technical][commercial] manager of m.v.
[ALTIUS][FORTIUS][HIGH LAND][HIGH RIDER][OSTRIA][NORDANVIND] Official Number
[2394][2395][2396][2397][1878][1879], IMO Number
[9269245][9269257][9018426][9016997][9037136][9037123] (the “Ship”) registered under Marshall
Islands flag at the Port of Majuro pursuant to a management agreement dated [•] (the
“Management Agreement”) between ourselves and the Owner and that we have accepted our
appointment thereunder in accordance with the terms and conditions thereof.
	 
	3	 	Representation and warranty
	 
	 	 	We hereby represent and warrant that the copy of the Management Agreement set out in Appendix
1 to this letter is a true and complete copy of the Management Agreement, that the Management
Agreement constitutes valid and binding obligations of the Manager enforceable in accordance
with its terms and that there have been no amendments or variations thereto or defaults
thereunder by the Manager or, to the best of the Manager’s knowledge and belief, the Owner.
	 
	4	 	Undertakings
	 
	 	 	The Manager undertakes with the Agent that:

	 	(a)	 	the Manager will not agree or purport to agree to any amendment or variation of
the Management Agreement without the prior written consent of the Agent;
	 
	 	(b)	 	the Manager will procure that any sub-manager appointed by it pursuant to the
Management Agreement or otherwise will, on or before the date of such appointment, enter
into an undertaking in favour of the Agent in substantially the same form (mutatis
mutandis) as this letter;
	 
	 	(c)	 	the Manager will not, without the prior written consent of the Agent, take any
action or institute any proceedings or make or assert any claim on or in respect of (i)
the Ship or (ii) its policies and contracts of insurance (which expression includes all
entries of the Ship in a protection and indemnity or war risks association) which are
from time to time in 

23

 

	 	 	 	place
or taken out or entered into by or for the benefit of the Owner (whether in the sole
name of the Owner or in the joint names of the Owner and the Agent (as security agent
and trustee for and on behalf of the Finance Parties) or otherwise) in respect of the
Ship and its Earnings (as defined below) or otherwise howsoever in connection with the
Ship and all benefits thereof (including claims of whatsoever nature and return of
premiums) (the “Insurances”) or (iii) all moneys whatsoever from time to time due or
payable to the Owner arising out of the use or operation of the Ship including (but
without limiting the generality of the foregoing) all freight, hire and passage moneys,
income arising under pooling arrangements, compensation payable to the Owner in event
of requisition of the Ship for hire, remuneration for salvage and towage services,
demurrage and detention moneys, and damages for breach (or payments for variation or
termination) or any charterparty or other contract for the employment of the Ship and
any sums recoverable under any loss of earnings insurance (the “Earnings”) or (iv) any
other property or other assets of the Owner which the Agent has previously advised the
Manager are subject to any encumbrance or right of set-off in favour of the Agent by
virtue of any of the Security Documents (as described in the Facility Agreement)
executed in favour of the Agent (as security agent and trustee on behalf of the Finance
Parties) pursuant to the Facility Agreement, the Master Swap Agreements and/or the
Corporate Guarantee;
	 
	 	(d)	 	the Manager will discontinue any such action or proceedings or claim which may
have been taken, instituted or made or asserted, promptly upon notice from the Agent to
do so;
	 
	 	(e)	 	the Manager will promptly notify the Agent if at any time the amount owed by the
Borrower to the Manager pursuant to the Management Agreement (whether in respect of the
Manager’s remuneration or disbursements or otherwise) exceeds US$100,000 or the
equivalent in other currencies; and
	 
	 	(f)	 	the Manager will provide the Agent with such information concerning the Ship as
the Agent may from time to time reasonably require.

	5	 	Insurance assignment

	 	(a)	 	By way of security for the aggregate of the Guaranteed Liabilities (as defined in
the Corporate Guarantee) and interest accrued and accruing thereon, the Expenses (as
such term is defined in the Facility Agreement) and all other sums of money from time to
time owing to the Agent and/or any of the other Finance Parties, whether actually or
contingently, under the Facility Agreement, the Master Swap Agreements, the Corporate
Guarantee and the other Security Documents or any of them (the “Outstanding
Indebtedness”), the Manager with full title guarantee hereby irrevocably and
unconditionally assigns and agrees to assign to the Agent (as security agent and trustee
for and on behalf of the other Finance Parties) all of the Manager’s rights, title and
interest in and to all the benefit of the Insurances.
	 
	 	(b)	 	The Manager hereby undertakes to procure that a duly completed notice in the form
set out in Appendix 2 to this letter is given to all insurers of the Ship and to procure
that such notice is promptly endorsed on all policies and entries in respect of the
Insurances and agrees promptly to authorise and/or instruct any broker, insurer or
association with or through whom Insurances may be effected to endorse on any policy or
entry or otherwise to give effect to such loss payable clause as may be stipulated by
the Agent.
	 
	 	(c)	 	The Agent shall, at the Manager’s cost, re-assign to the Manager all the
Manager’s right, title and interest in the Insurances upon the Outstanding Indebtedness
being discharged in full to the satisfaction of the Agent.
	 
	 	(d)	 	Any moneys in respect of the Insurances which would (but for the assignment
contained in clause 0 above) be payable to the Manager shall be applied in accordance
with clause 2.1.2 of the General Assignment dated 13 October 2009 and made between (1)
the Owner and (2) the Agent (as security agent and trustee for and on behalf of the
other Finance Parties).

24

 

	6	 	Law and jurisdiction

	 	(a)	 	The agreement constituted by this letter and any non-contractual obligations
connected with it shall be governed by and construed in accordance with English law.
	 
	 	(b)	 	The Manager agrees, for the benefit of the Agent and the other Finance Parties,
that any legal action or proceedings arising out of or in connection with this letter
against the Manager or any of its assets may be brought in the English courts. The
Manager irrevocably and unconditionally submits to the jurisdiction of such courts and
irrevocably designates, appoints and empowers [HFW Nominees Ltd] at present of [Friary
Court, 65 Crutched Friars, London EC3N 7AE, England] to receive for it and on its
behalf, service of process issued out of the English courts in any such legal action or
proceedings. The submission to such jurisdiction shall not (and shall not be construed
so as to) limit the rights of the Agent to take any proceedings against the Manager in
the courts of any other competent jurisdiction nor shall the taking of proceedings in
any one or more jurisdictions preclude the taking of proceedings in any other
jurisdiction, whether concurrently or not.

Yours faithfully

 

For and on behalf of

[NEWLEAD SHIPPING S.A.][ERNST JACOB SHIP MANAGEMENT GMBH][AMT MANAGEMENT LTD]

25

 

Appendix 1

Copy of the Management Agreement.

26

 

Appendix 2

Notice of Assignment

We, [NEWLEAD SHIPPING S.A.][ERNST JACOB SHIPMANAGEMENT GMBH][AMT MANAGEMENT LTD], the
managers of m.v. “[ALTIUS][FORTIUS][HIGH LAND][HIGH
RIDER][OSTRIA][NORDANVIND]”, HEREBY GIVE NOTICE that by a first assignment dated [· ] 2010
and entered into by us with BANK OF SCOTLAND plc (as agent, security agent and trustee for and on
behalf of the Finance Parties (as therein defined)) there has been assigned by us to the said BANK
OF SCOTLAND plc (as agent, security agent and trustee for and on behalf of the Finance Parties) as
first assignees all of our right, title and interest in and to the insurances in respect of the
said Ship including the insurances constituted by the Policy whereon this notice is endorsed.

SIGNED

 

For and on behalf of

[NEWLEAD SHIPPING S.A.][ERNST JACOB SHIPMANAGEMENT GMBH][AMT MANAGEMENT LTD]

Dated                     2010

27

 

Schedule 7

Form of Mortgage Addendum

28

 

Schedule 8

Form of Supplemental Mortgage

29

 

	 	 	 	 	 	 	 	 	 

	Borrower
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NEWLEAD HOLDINGS LTD. (formerly

	 	 	)	 	 	 	 	 
	known as ARIES MARITIME TRANSPORT

	 	 	)	 	 	 	 	 
	LIMITED)

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated           
                    2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Arrangers
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	BANK OF SCOTLAND plc

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 12 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NORDEA BANK FINLAND PLC, LONDON

	 	 	)	 	 	 	 	 
	BRANCH

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 7 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	  	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

30

 

	 	 	 	 	 	 	 	 	 

	Agent

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	BANK OF SCOTLAND plc

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 12 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Banks
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	BANK OF SCOTLAND plc

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 12 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NORDEA BANK FINLAND PLC, LONDON

	 	 	)	 	 	 	 	 
	BRANCH

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 7 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

31

 

	 	 	 	 	 	 	 	 	 

	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	HSH NORDBANK AG

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 9 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	THE GOVERNOR AND COMPANY

	 	 	)	 	 	 	 	 
	OF THE BANK OF IRELAND

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 7 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	SUMITOMO MITSUI BANKING

	 	 	)	 	 	 	 	 
	CORPORATION

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 8 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

32

 

	 	 	 	 	 	 	 	 	 

	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	UNICREDIT BANK AG (formerly known

	 	 	)	 	 	 	 	 
	as BAYERISCHE HYPO- UND

	 	 	)	 	 	 	 	 
	VEREINSBANK AG)

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 8 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	COMMERZBANK AKTIENGESELLSCHAFT

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 7 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	GENERAL ELECTRIC CAPITAL

	 	 	)	 	 	 	 	 
	CORPORATION

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 9 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

33

 

	 	 	 	 	 	 	 	 	 

	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NATIXIS

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 6 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	SWEDBANK AB (PUBL)

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 12 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

34

 

	 	 	 	 	 	 	 	 	 

	Swap Banks

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	BANK OF SCOTLAND plc

	 	 	)	 	 	 	 	 
	(formerly HBOS Treasury Services plc)

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 12 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	NORDEA BANK FINLAND PLC, LONDON

	 	 	)	 	 	 	 	 
	BRANCH

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 7 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	THE GOVERNOR AND COMPANY

	 	 	)	 	 	 	 	 
	OF THE BANK OF IRELAND

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 7 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

35

 

	 	 	 	 	 	 	 	 	 

	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	HSH NORDBANK AG

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 9 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	SMBC CAPITAL MARKETS, INC.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 13 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Co-Arrangers
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	THE GOVERNOR AND COMPANY

	 	 	)	 	 	 	 	 
	OF THE BANK OF IRELAND

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 7 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

36

 

	 	 	 	 	 	 	 	 	 

	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	HSH NORDBANK AG

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 9 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED by Barnabus Finnigan

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	SUMITOMO MITSUI BANKING

	 	 	)	 	 	 	 	 
	CORPORATION

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated 8 April 2010

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	/s/ Barnabus Finnigan	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Katherine Hedges
 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Katherine Hedges
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address: Norton Rose LLP, 3 More London
Riverside, London
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation: Trainee Solicitor
	 	 	 	 	 	 	 	 

37

 

	 	 	 	 	 	 	 	 	 

	The Corporate Guarantors

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	ERMINA MARINE LIMITED

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	LAND MARINE S.A.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	RIDER MARINE S.A.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 

38

 

	 	 	 	 	 	 	 	 	 

	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	ALTIUS MARINE S.A.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	FORTIUS MARINE S.A.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	CHINOOK WAVES CORPORATION

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 

39

 

	 	 	 	 	 	 	 	 	 

	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	OSTRIA WAVES LTD.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	COMPASS OVERSEAS LTD.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	COMPASSION OVERSEAS LTD.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 

40

 

	 	 	 	 	 	 	 	 	 

	The
Managers

	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	AMT MANAGEMENT LTD.

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED as a DEED, SEALED and DELIVERED

	 	 	)	 	 	 	 	 
	by

	 	 	)	 	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 	 
	ERNST JACOB SHIPMANAGEMENT GMBH

	 	 	)	 	 	 	 	 
	pursuant to a power of attorney

	 	 	)	 	 	 	 	 
	dated

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 

41

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]