Document:

Exhibit 10.24

 

Private & Confidential

 

FACILITY AGREEMENT

for a

Loan of up to US$152,800,000

to

 

RAYMOND SHIPPING CO.

and

TERANCE SHIPPING CO.

 

provided by

THE BANKS AND FINANCIAL INSTITUTIONS SET
OUT IN SCHEDULE 1

 

Agent, Arranger, Security Agent, Account
Bank

DNB NOR BANK ASA

 

Swap Provider

DNB NOR BANK ASA

    	 

    	

    

Contents

 

	Clause	 	Page
	 	 	 
	1	Purpose and definitions	1
	 	 	 
	2	The Total Commitment and the Advances	21
	 	 	 
	3	Interest and Interest Periods	25
	 	 	 
	4	Repayment and prepayment	27
	 	 	 
	5	Fees, commitment commission and expenses	29
	 	 	 
	6	Payments and taxes; accounts and calculations	30
	 	 	 
	7	Representations and warranties	34
	 	 	 
	8	Undertakings	39
	 	 	 
	9	Conditions	47
	 	 	 
	10	Events of Default	48
	 	 	 
	11	Indemnities	54
	 	 	 
	12	Unlawfulness, increased costs and mitigation	56
	 	 	 
	13	Security, set-off and pro-rata payments	58
	 	 	 
	14	Operating Accounts	60
	 	 	 
	15	Assignment, transfer and lending office	61
	 	 	 
	16	Agent and Security Agent	64
	 	 	 
	17	Notices and other matters	73
	 	 	 
	18	Governing law and jurisdiction	76
	 	 	 
	Schedule 1 The Banks and their Commitments	77
	 	 
	Schedule 2 Form of Drawdown Notice	79
	 	 
	Schedule 3 Documents and evidence required as conditions precedent	80
	 	 
	Schedule 4 Form of Transfer Certificate	89

    	 

    	

    

	Schedule 5 Contract Instalment Advances per Ship	93
	 	 
	Schedule 6 Form of Trust Deed	94
	 	 
	Schedule 7 Mandatory Cost formula	95

    	 

    	

    

THIS AGREEMENT is dated _______ 2011
and made BETWEEN:

 

	(1)	RAYMOND SHIPPING CO., and TERANCE SHIPPING CO. as joint and several Borrowers;
	 	 
	(2)	DNB NOR BANK ASA as Agent, Arranger, Security Agent and Account Bank;
	 	 
	(3)	DNB NOR BANK ASA as Swap Provider; and
	 	 
	(4)	THE BANKS AND FINANCIAL INSTITUTIONS whose names and addresses are set out in schedule 1 as Banks.

 

IT IS AGREED as follows:

 

	1	Purpose and definitions
	 	 
	1.1	Purpose

 

This Agreement sets out the
terms and conditions upon and subject to which the Banks agree, according to their several obligations, to make available to the
Borrowers, jointly and severally, a loan facility of up to one hundred and fifty two million eight hundred thousand Dollars ($152,800,000)
in eight (8) Advances, for the purpose of pre- and post-delivery financing or refinancing part of the construction and acquisition
cost of the Ships.

 

	1.2	Definitions

 

In this Agreement, unless the
context otherwise requires:

 

“Account Bank”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or such
other person as may be appointed as Account Bank by the Agent for the purposes of this Agreement and includes its successors in
title;

 

“Advance”
means each borrowing of a portion of the Total Commitment by the Borrowers or (as the context may require) the outstanding principal
amount of such borrowing at any relevant time, and it includes each Raymond Contract Instalment Advance, the Raymond Delivery Advance,
each Terance Contract Instalment Advance, the Terance Delivery Advance, and also:

 

	 	(a)	in relation to the Raymond Ship and/or the Raymond Borrower and/or the  Raymond Tranche, it means the Raymond Contract Instalment Advances and the Raymond Delivery Advance; or
	 	 	 
	 	(b)	in relation to the Terance Ship and/or the Terance Borrower and/or the Terance Tranche, it means the Terance Contract Instalment Advances and the Terance Delivery Advance,

 

and “Advances”
means any or all of them;

 

“Agent” means
DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107 Oslo,
Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England (or
of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or such
other person as may be appointed as agent by the Banks, and the Swap Provider pursuant to clause 16.13 and includes its successors
in title;

 

“Applicable Accounting
Principles” means the most recent and up-to-date US GAAP at any relevant time;

    	1

    	

    

“Applicable Fraction”
means, at any time and in relation to a Ship which is then subject to a Charterer Event or a New Charterer Event, a fraction having
(a) as its numerator the then outstanding balance of the Tranche relating to such Ship and (b) as its denominator the then outstanding
amount of the Loan;

 

“Approved Shipbrokers”
means, together, H. Clarkson and Company Ltd of London, England, Arrow Research Ltd. of London, England, Braemar Seascope of London,
England, Simpson Spence & Young of London, England, Maersk Brokers of London, England and Howe Robinson of London, England
and any other independent firm of shipbrokers nominated by the Borrowers and approved in writing by the Agent in its absolute discretion
from time to time and “Approved Shipbroker” means any of them;

 

“Arranger”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or such
other person as may be appointed as arranger by the Banks for the purposes of this Agreement and includes its successors in title;

 

“Assigned Contract”
means, at any relevant time, a Contract which is at such time subject to a Pre-delivery Security Assignment and a Contract shall,
for the purposes of this Agreement, be deemed to be an Assigned Contract as from whichever shall be the earlier of (a) the Drawdown
Date of the first Contract Instalment Advance to be drawn down for the Ship to which such Contract relates and (b) the date that
the Pre-delivery Security Assignment relevant to that Ship shall have been executed in accordance with this Agreement until the
earlier of (i) the date when the Borrowers have complied with all their obligations under clause 4.4.2 following the assignment,
transfer or novation of such Contract and (ii) the Drawdown Date of the Delivery Advance for the Ship to which such Contract relates;

 

“Assigned Refund Guarantee”
means, at any relevant time, any Refund Guarantee which is at such time subject to a Pre-delivery Security Assignment and a Refund
Guarantee shall, for the purposes of this Agreement, be deemed to be an Assigned Refund Guarantee as from whichever shall be the
earlier of (a) the Drawdown Date of the first Contract Instalment Advance to be drawn down for the Ship to which such Refund Guarantee
relates and (b) the date that the Pre-delivery Security Assignment relevant to that Ship shall have been executed in accordance
with this Agreement until the earlier of (i) the date when the Borrowers have complied with all their obligations under clause
4.4.2 following the assignment, transfer or novation of the Contract to which such Refund Guarantee relates or the Total Loss of
the relevant Ship and (ii) the Drawdown Date of the Delivery Advance for the Ship to which such Refund Guarantee relates;

 

“Balloon Instalment”
has, in respect of each Tranche, the meaning ascribed thereto in clause 4.1 and “Balloon Instalments” means
either or both of them;

 

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

 

“Banks” means
the banks and financial institutions set out in schedule 1 and includes their respective successors in title and Transferee Banks
and “Bank” means any of them;

 

“Basel 2 Accord”
means the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by
the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement;

 

“Basel 2 Approach”
means, in relation to each Bank, either the Standardised Approach or the relevant Internal Ratings Based Approach (each as defined
in the Basel 2 Accord) adopted by such Bank (or its holding company) for the purposes of implementing or complying with the Basel
2 Accord;

    	2

    	

    

“Basel 2 Regulation”
means, in relation to each Bank, (a) any law or regulation implementing the Basel 2 Accord or (b) any Basel 2 Approach adopted
by such Bank;

 

“Borrowed Money”
means Indebtedness in respect of (i) money borrowed or raised and debit balances at banks, (ii) any bond, note, loan stock, debenture
or similar debt instrument, (iii) acceptance or documentary credit facilities, (iv) receivables sold or discounted (otherwise than
on a non-recourse basis), (v) deferred payments for assets or services acquired (except assets or services obtained on normal commercial
terms in the ordinary course of business), (vi) finance leases and hire purchase contracts (other than in respect of equipment
used in the ordinary course of its business, the payments of which do not exceed the amount of $500,000 per year per Security Party),
(vii) swaps, forward exchange contracts, futures and other derivatives (and when calculating the value of any such transaction
where the term “Borrowed Money” is used, only the marked-to-market value shall be taken into account), (viii) any other
transaction (including without limitation forward sale or purchase agreements) having the commercial effect of a borrowing or raising
of money or of any of (ii) to (vii) above and (ix) guarantees in respect of Indebtedness of any person falling within any of (i)
to (viii) above;

 

“Borrower”:

 

	 	(a)	in relation to the Raymond Ship and/or the Raymond Tranche (or any Advance thereof), means the Raymond Borrower; or
	 	 	 
	 	(b)	in relation to the Terance Ship and/or the Terance Tranche (or any Advance thereof), means the Terance Borrower,

 

and “Borrowers”
means either or both of them;

 

“Borrowers’ Security
Documents” means, at any relevant time, such of the Security Documents as shall have been executed by any of the Borrowers
at such time;

 

“Builder”
means Sungdong Shipbuilding & Marine Engineering Co. Ltd of 1609-2, Hwang-li, Gwangdo-myeon, Tongyoung-si, Gyeongnam, Korea
and includes its successors in title;

 

“Capital Adequacy Law”
means any law or any regulation (whether or not having the force of law, but, if not having the force of law, with which a Bank
or, as the case may be, its holding company, habitually complies), including (without limitation) those relating to Taxation, capital
adequacy, liquidity, reserve assets, cash ratio deposits and special deposits or other banking or monetary controls or requirements
which affect the manner in which a Bank allocates capital resources to its obligations hereunder (including, without limitation,
those resulting from the implementation or application of or compliance with the Basel 2 Accord or any Basel 2 Regulation);

 

“Casualty Amount”
means, in relation to each Ship, two million Dollars ($2,000,000) or the equivalent in any other currency;

 

“Charter”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Charter; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Charter,

 

and “Charters”
means either or both of them;

 

“Charter Assignment”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Charter Assignment; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Charter Assignment,

 

and “Charter Assignments”
means either or both of them;

    	3

    	

    

“Charter Guarantee
Assignment” means:

 

	 	(c)	in relation to the Raymond Ship, the Raymond Charter Guarantee Assignment; or
	 	 	 
	 	(d)	in relation to the Terance Ship, the Terance Charter Guarantee Assignment,

 

and “Charter Guarantee
Assignments” means either or both of them;

 

“Charterer”
means Italia Maritima S.p.A. of Passeggio Sant’ Andrea 4, 34123 Trieste, Republic of Italy, and includes its successors in
title;

 

“Charterer
Event” means, in relation to a Ship, the termination, cancellation, rescission or repudiation for any reason whatsoever
of the Charter for that Ship unless, within 90 days from such event the relevant Borrower has entered into a Qualifying Charter
and within 30 days from the entry into the Qualifying Charter that Ship has been delivered for service under such Qualifying Charter
and the Borrowers have delivered to the Agent such Qualifying Charter duly executed together with such executed documents and evidence
in respect of such Qualifying Charter (including a charter assignment of the same, as the Agent may require) and such other documents
and evidence, as are specified in clause 8.1.16 in respect of charterparties or other contracts of employment in respect of the
Ships;

 

“Charter
Guarantor” means Evergreen International S.A., of 2nd Floor, MMG Tower, East 53rd Street, Panama,
Republic of Panama, and includes its respective successors in title;

 

“Ciel
Management” means Ciel Shipmanagement S.A. of 80 Broad Street, Republic of Liberia and it includes its successors in
title;

 

“Classification”
means, in relation to each Ship, the highest class available for a vessel of her type and her specification as at her Delivery,
with the relevant Classification Society or such other classification as the Agent shall, at the request of a Borrower, have agreed
in writing shall be treated as the Classification in relation to such Borrower’s Ship for the purposes of the relevant Ship
Security Documents;

 

“Classification Society”
means, in relation to each Ship, such classification society (being a member of the International Association of Classification
Societies (“IACS”) or any successor organisation) which the Agent shall at the request of the Borrower owning
such Ship have agreed in writing shall be treated as the Classification Society in relation to such Ship for the purposes of the
relevant Ship Security Documents;

 

“Code” means
the International Management Code for the Safe Operation of Ships and for Pollution Prevention constituted pursuant to Resolution
A. 741 (18) of the International Maritime Organisation and incorporated into the Safety of Life at Sea Convention (as amended)
and includes any amendments or extensions thereto and any regulation issued pursuant thereto;

 

“Commercial Parties”
means, together, the Builder, the Charterer, the Charter Guarantor and the Refund Guarantor and “Commercial Party”
means any of them;

 

“Commitment”
means, in relation to each Bank, the amount set out opposite its name in the column headed “Commitment” in schedule
1 and/or, in the case of a Transferee Bank, the amount transferred as specified in the relevant Transfer Certificate, as reduced
in each case by any relevant term of this Agreement;

 

“Compliance Certificate”
means each certificate received or (as the context may require) to be received by the Agent pursuant to clause 5.1 of the Corporate
Guarantee in the form set out in the schedule to the Corporate Guarantee;

 

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

    	4

    	

    

“Confirmation”
shall have, in relation to any continuing Designated Transaction, the meaning ascribed to it in the Master Swap Agreement;

 

“Contract”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract,

 

and “Contracts”
means either or both of them;

 

“Contract Assignment
Consent and Acknowledgement” means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract Assignment Consent and Acknowledgement; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract Assignment Consent and Acknowledgement,

 

and “Contract Assignment
Consents and Acknowledgements” means either or both of them;

 

“Contract Instalment
Advance” means each Raymond Contract Instalment Advance and each Terance Contract Instalment Advance, and also it means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract Instalment Advances; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract Instalment Advances,

 

and “Contract Instalment
Advances” means any or all of them;

 

“Contract Price”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Contract Price; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Contract Price,

 

and “Contract Prices”
means either or both of them;

 

“Contribution”
means, in relation to each Bank, the principal amount owing to such Bank at any relevant time;

 

“Corporate Guarantee”
means the corporate guarantee executed or (as the context may require) to be executed by the Corporate Guarantor in favour of the
Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Corporate Guarantor”
means Costamare Inc. of Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 and includes its
successors in title;

 

“Costamare Shipping”
means Costamare Shipping Company S.A., a company incorporated under the laws of Panama and having a place of business at 60 Zephyrou
Street & Syngrou Avenue, 175 64 Athens, Greece and it includes its successors in title;

 

“Creditors”
means, together, the Agent, the Arranger, the Security Agent, the Swap Provider, the Account Bank and the Banks and “Creditor”
means any of them;

 

“Deed of Covenant”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Deed of Covenant; or

    	5

    	

    

	 	(b)	in relation to the Terance Ship, the Terance Deed of Covenant,

 

and “Deeds of Covenant”
means either or both of them;

 

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

 

“Delivery”
means, in relation to each Ship, the delivery of such Ship from the Builder to the relevant Borrower pursuant to the relevant Contract;

 

“Delivery Advance”:

 

	 	(a)	in relation to the Raymond Ship and/or the Raymond Tranche, means the Raymond Delivery Advance; or
	 	 	 
	 	(b)	in relation to the Terance Ship and/or the Terance Tranche, means the Terance Delivery Advance,

 

and “Delivery Advances”
means either or both of them;

 

“Delivery Date”
means, in relation to each Ship, the date on which the Delivery of such Ship occurs;

 

“Designated Transaction”
means a transaction which is entered into by the Borrowers with the Swap Provider pursuant to the Master Swap Agreement as contemplated
by clause 2.9;

 

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

 

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

 

“Drawdown Date”
means, in relation to each Advance, any date, being a Banking Day falling during the Drawdown Period for such Advance, on which
the relevant Advance is, or is to be, made available;

 

“Drawdown Notice”
means, in relation to each Advance, a notice substantially in the form of schedule 2 in respect of such Advance;

 

“Drawdown Period”
means, in relation to each Advance, the period commencing on the date of this Agreement and ending on the earlier of:

 

	 	(a)	the Final Availability Date for the Tranche of which such Advance forms part; or
	 	 	 
	 	(b)	the date on which the relevant Advance has been drawn down; or
	 	 	 
	 	(c)	the date when the Total Commitment is reduced to zero pursuant to clauses 10.2 or 12; or
	 	 	 
	 	(d)	(only in relation to each Delivery Advance) the Delivery Date of the Ship relevant to such Delivery Advance; or
	 	 	 
	 	(e)	the date on which a Tranche is cancelled by the Borrowers pursuant to clause 4.3;

 

“Early Termination
Date” shall have, in relation to any continuing Designated Transaction, the meaning ascribed to it in the Master Swap
Agreement;

    	6

    	

    

“Earnings”
means, in relation to a Ship, all moneys whatsoever from time to time due or payable to the relevant Borrower during the Security
Period arising out of the use or operation of such Ship including (but without limiting the generality of the foregoing) all freight,
hire and passage moneys, income arising out of pooling arrangements, compensation payable to such Borrower in the event of requisition
of such Borrower’s Ship for hire, remuneration for salvage or towage services, demurrage and detention moneys and damages
for breach (or payment for variation or termination) of any charterparty or other contract for the employment of such Borrower’s
Ship;

 

“Encumbrance”
means any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security
interest or other encumbrance of any kind securing any obligation of any person or any type of preferential arrangement (including
without limitation title transfer arrangements having a similar effect);

 

“Environmental Affiliate”
means any agent or employee of any Borrower or any person having a contractual relationship with any Borrower, in each case in
connection with any Ship or its operation or the carriage of cargo thereon and/or the provision of goods and/or services on or
from such Ship;

 

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

 

“Environmental Claim”
means:

 

	 	(a)	any and all enforcement, clean-up, removal or other governmental or regulatory actions or orders or claims instituted or made pursuant to any Environmental Law or any Environmental Approval, in respect of an amount or (as the case may be) the cost of which is, in excess of two million Dollars ($2,000,000); and/or
	 	 	 
	 	(b)	any claim made by any third party in excess of two million Dollars ($2,000,000) relating to damage, contribution, loss or injury,

 

resulting in any such case,
from any actual or threatened emission, spill, release or discharge of a Pollutant from any Ship;

 

“Environmental Laws”
means all national, international and state laws, rules, regulations, treaties and conventions applicable to any Ship pertaining
to the pollution or protection of human health or the environment including, without limitation, the carriage of Pollutants and
actual or threatened emissions, spills, releases or discharges of Pollutants;

 

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

 

“Fee Letter”
means each letter of even date herewith made between (inter alios) the Borrowers and the Agent in respect of certain of the fees
payable under clause 5.1 and “Fee Letters” means any or all of them;

 

“Final Availability
Date” means:

 

	 	(a)	in relation to the Raymond Tranche and each Advance thereof, 27 October 2013, if and provided that (i) the Raymond Refund Guarantee continues to remain valid and effective from its issue date until that date and (ii) the Raymond Charter remains unaltered and in full force and effect; and
	 	 	 
	 	(b)	in relation to the Terance Tranche and each Advance thereof, 26 January 2014, if and provided that (i) the Terance Refund Guarantee continues to remain valid and effective from its issue date until that date and (ii) the Terrance Charter remains unaltered and in full force and effect;

 

“Final
Maturity Date” means the date falling seven (7) years from the Drawdown Date of the

    	7

    	

    

Delivery
Advance in respect of the Tranche in question;

 

“Flag State”
means, in relation to each Ship, any of Liberia, Marshall Islands or Panama as being the “Flag State” of such
Borrower’s Ship for the purposes of the relevant Ship Security Documents;

 

“General Assignment”
means:

 

	 	(e)	in relation to the Raymond Ship, the Raymond General Assignment; or
	 	 	 
	 	(f)	in relation to the Terance Ship, the Terance General Assignment,

 

and “General Assignments”
means either or both of them;

 

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

 

“Group” means,
together, the Corporate Guarantor and its Subsidiaries from time to time (including, for the avoidance of doubt, the Borrowers)
and “member of the Group” shall be construed accordingly;

 

“Indebtedness”
means any obligation for the payment or repayment of money, whether as principal or as surety and whether present or future, actual
or contingent;

 

“Insurances”
means, in relation to a Ship, all policies and contracts of insurance (which expression includes all entries of that Ship in a
protection and indemnity or war risks association) which are from time to time during the Security Period in place or taken out
or entered into by or for the benefit of the relevant Borrower (whether in the sole name of such Borrower, or in the joint names
of such Borrower and the Security Agent and/or any other Creditors or otherwise) in respect of such Borrower’s Ship and,
if applicable, her Earnings, or otherwise howsoever in connection with such Ship and all benefits thereof (including claims of
whatsoever nature and return of premiums);

 

“Interest Payment Date”
means the last day of an Interest Period;

 

“Interest Period”
means, in relation to an Advance or (as the case may be) Tranche or Sub-Tranche, each period for the calculation of interest in
respect of such Advance or (as the case may be) Tranche or Sub-Tranche, ascertained in accordance with clauses 3.2 and 3.3;

 

“ISPS Code”
means the International Ship and Port Facility Security Code constituted pursuant to resolution A.924(22) of the International
Maritime Organization now set out in Chapter XI-2 of the International Convention for the Safety of Life at Sea 1974 (as amended)
as adopted by a Diplomatic conference of the International Maritime Organisation on Maritime Security in December 2002 and includes
any amendments or extensions thereto and any regulation issued pursuant thereto;

 

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

 

“Konstantakopoulos
Family” means, together, each of the following:

 

	 	(a)	Mr Vasileios Konstantakopoulos;
	 	 	 
	 	(b)	Mr Kostantinos V. Kostantakopoulos;
	 	 	 
	 	(c)	Mr Achillefs V. Kostantakopoulos;
	 	 	 
	 	(d)	Mr Christos V. Kostantakopoulos;

    	8

    	

    

	 	(e)	all the lineal descendants in direct line of any of the said Messrs. Vasileios Konstantakopoulos, Achillefs V. Kostantakopoulos, Kostantinos V. Kostantakopoulos and Christos V. Konstantakopoulos;
	 	 	 
	 	(f)	a husband or wife, or former husband or wife, or widower or widow of any of the above persons;
	 	 	 
	 	(g)	the estates, trusts, foundations or legal representatives of any of the above persons (whether controlled by any of them or being the beneficiaries of any of them); and
	 	 	 
	 	(h)	each company (other than a member of the Borrower’s Group) legally or beneficially owned or (as the case may be) controlled by one or more of the persons or entities which would fall within paragraphs (a) to (f) above,

 

and each one
of the above shall be referred to as “a member of the Konstantakopoulos Family”;

 

“LIBOR” means
in relation to a particular period:

 

	 	(a)	the rate for deposits of the relevant currency for a period equivalent to such period at or about 11:00 a.m. on the Quotation Date for such period as displayed on Reuters page LIBOR 01 (British Bankers’ Association Interest Settlement Rates) (or such other page as may replace such page LIBOR 01 on such system or on any other system of the information vendor for the time being designated by the British Bankers’ Association to calculate the BBA Interest Settlement Rate (as defined in the British Bankers’ Association’s Recommended Terms and Conditions (“BBAIRS” terms) applicable at the relevant time)); or
	 	 	 
	 	(b)	provided that if on such date no such rate is so displayed, LIBOR for such period shall be the rate quoted to the Agent by the Reference Bank at the request of the Agent, as the Reference Bank’s offered rate for deposits of the relevant currency in an amount approximately equal to the amount in relation to which LIBOR is to be determined for a period equivalent to such period to prime banks in the London Interbank Market at or about 11:00 a.m. on the Quotation Date for such period;

 

“Loan” means
the aggregate principal amount owing to the Banks under this Agreement at any relevant time;

 

“Majority
Banks” means, at any relevant time, Banks (a) the aggregate of whose Contributions exceeds sixty six point six seven
per cent (66.67%) of each of Sub-Tranche A and Sub-Tranche B or (b) (if no principal amounts are outstanding under this Agreement
by way of Advances) the aggregate of whose Commitments exceeds sixty six point six seven per cent (66.67%) of each of Sub-Tranche
A and Sub-Tranche B;

 

“Management Agreement”
means:

 

	 	(a)	in relation to the Raymond Ship, each Raymond Management Agreement; or
	 	 	 
	 	(b)	in relation to the Terance Ship, each Terance Management Agreement,

 

and “Management Agreements”
means any or all of them;

 

“Manager”
means, in relation to a Ship:

 

	 	(a)	any one (or more) of Costamare Shipping, Ciel Management or Shanghai Costamare; and/or
	 	 	 
	 	(b)	any other company which the Agent may (acting on the instructions of the Majority Banks) approve from time to time as the manager of that Ship,

    	9

    	

    

provided such person has executed
a Manager’s Undertaking in relation to that Ship in accordance with clause 8.1.18 and the Borrowers are in compliance with
such clause on or prior to its appointment, and “Managers” shall mean any or all of them;

 

“Manager’s Undertakings”
means, collectively, each of the manager’s undertakings executed or (as the context may require) to be executed by any Manager
in favour of the Security Agent in respect of each of the Ships each in such form as the Agent may require in its reasonable discretion
and, singly, each a “Manager’s Undertaking”;

 

“Mandatory Cost”
means, in relation to any period, a percentage calculated by the Agent for such period at an annual rate determined by the application
of the formula set out in schedule 7;

 

“Margin”
means, in relation to (a) each Sub-Tranche A one point five zero per cent (1.50%) per annum and (b) each Sub-Tranche B two point
five zero per cent (2.50) per annum;

 

“Master Swap Agreement”
means the agreement made or (as the context may require) to be made between the Swap Provider and the Borrowers, comprising an
ISDA Master Agreement (including its schedule thereto) in a form previously agreed between the Swap Provider and the Borrowers
and includes any Designated Transactions from time to time entered into thereunder and any Confirmations from time to time exchanged
thereunder and governed thereby;

 

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

 

“Mortgage”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Mortgage; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Mortgage,

 

and “Mortgages”
means either or both of them;

 

“Mortgaged Ship”
means, at any relevant time, any Ship which is at such time subject to a Mortgage and/or the Earnings, Insurances and Requisition
Compensation of which are subject to an Encumbrance pursuant to the relevant Ship Security Documents and a Ship shall, for the
purposes of this Agreement, be deemed to be a Mortgaged Ship as from whichever shall be the earlier of (a) the Drawdown Date of
the Delivery Advance relating to that Ship and (b) the date that the Mortgage of that Ship shall have been executed and registered
in accordance with this Agreement until whichever shall be the earlier of (i) the payment in full of the amount required to be
paid by the Borrowers pursuant to clause 4.4 following the sale or Total Loss of such Ship and (ii) the date on which all moneys
owing under the Security Documents have been repaid in full;

 

“New Charterer”
means, in relation to a Qualifying Charter for a Ship, the charterer of that Ship under such Qualifying Charter and it includes
its successors in title;

 

“New Charterer Event”
means the termination, cancellation, rescission or repudiation for any reason whatsoever of a Qualifying Charter in respect of
a Ship, unless within 90 days from such event, the relevant Borrower has entered into another Qualifying Charter and within 30
days from the entry into of such other Qualifying Charter that Ship has been delivered for service under such other Qualifying
Charter and the Borrowers have delivered to the Agent such other Qualifying Charter duly executed together with such executed documents
and evidence in respect of such other Qualifying Charter (including a charter assignment of the

    	10

    	

    

same, as the Agent may require)
and such other documents and evidence, as are specified in clause 8.1.16 in respect of charterparties or other contracts of employment
in respect of the Ships;

 

“Operating Account”
means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Operating Account; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Operating Account,

 

and “Operating Accounts”
means either or both of them;

 

“Operating Account
Assignment” means:

 

	 	(a)	in relation to the Raymond Operating Account, the Raymond Operating Account Assignment; or
	 	 	 
	 	(b)	in relation to the Terance Operating Account, the Terance Operating Account Assignment,

 

and “Operating
Account Assignments” means either or both of them;

 

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

 

“Permitted Encumbrance”
means:

 

	 	(a)	any Encumbrance in favour of the Security Agent and/or any of the other Creditors created pursuant to the Security Documents;
	 	 	 
	 	(b)	Permitted Liens;
	 	 	 
	 	(c)	any Encumbrance over goods and products of a Borrower, or documents of title to goods and products of the Borrower, arising in the ordinary course of trading in connection with letters of credit and similar transactions where such Encumbrance secures only Indebtedness representing the acquisition cost or selling price (and amounts incidental thereto) of such goods and products required to be paid within 180 days after the date upon which such Indebtedness was first incurred;
	 	 	 
	 	(d)	any Encumbrance arising by operation of law or which arises pursuant to any order of attachment, distraint or similar legal process arising in connection with court proceedings provided that the execution or other enforcement thereof is effectively stayed and the claims served thereby are being contested at the time in good faith by appropriate proceedings; and
	 	 	 
	 	(e)	any liens arising in the ordinary course of trading by operation of law in respect of obligations which are not overdue or which are being contested in good faith by appropriate proceedings (and for the payment of which adequate reserves have been provided);

 

“Permitted Liens”
means, in relation to each Ship;

 

	 	(a)	any lien on that Ship for master’s, officer’s or crew’s wages outstanding in the ordinary course of trading;
	 	 	 
	 	(b)	any lien on that Ship for salvage; and
	 	 	 
	 	(c)	any ship repairer’s or outfitter’s possessory lien on that Ship for a sum not (except with the prior written consent of the Agent) exceeding the Casualty Amount for that Ship;

    	11

    	

    

“Pollutant”
means and includes oil and its products, any other polluting, toxic or hazardous substance and any other substance whose release
into the environment is regulated or penalised by Environmental Laws;

 

“Pre-delivery Security
Assignment” means:

 

	 	(a)	in relation to the Raymond Ship, the Raymond Pre-delivery Security Assignment; or
	 	 	 
	 	(b)	in relation to the Terance Ship, the Terance Pre-delivery Security Assignment,

 

and “Pre-delivery Security
Assignments” means either or both of them;

 

“Qualifying Charter”
means, in relation to a Ship any charterparty in respect of that Ship (other than the Charter for that Ship) entered by the relevant
Borrower and which is:

 

	 	(a)	with such charterer (which is not a Related Company of the Corporate Guarantor);
	 	 	 
	 	(b)	providing for such charterhire and tenor; and
	 	 	 
	 	(c)	otherwise on such other terms and conditions,

 

as are acceptable
in all respects to the Agent (acting on the instructions of the Majority Banks in their absolute discretion);

 

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

 

“Raymond Borrower”
means Raymond Shipping Co. of 80 Broad Street, Monrovia, Liberia and includes its successors in title;

 

“Raymond Charter”
means the time charterparty dated 30 March 2011 in respect of the Raymond Ship made between the Charterer and the Raymond Borrower,
and as the same may be further amended, supplemented and/or novated from time to time;

 

“Raymond Charter Assignment”
means the specific assignment of the Raymond Charter executed or (as the context may require) to be executed by the Raymond Borrower
in favour of the Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Raymond Charter Guarantee
Assignment” means the specific assignment of the Raymond Charter Guarantee executed or (as the context may require) to
be executed by the Raymond Borrower in favour of the Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Raymond Charter Guarantee”
means the unconditional and irrevocable guarantee contained in clause 78 of the Raymond Charter granted by the Charter Guarantor
in favour of the Raymond Borrower;

 

“Raymond Contract”
means the shipbuilding contract dated 20 April 2011 made between the Builder and the Raymond Borrower, as may be amended and supplemented
from time to time, relating to the construction and sale by the Builder, and the purchase by the Raymond Borrower, of the Raymond
Ship;

 

“Raymond Contract Assignment
Consent and Acknowledgement” means the acknowledgement of notice of, and consent to, the assignment in respect of the
Raymond Contract given or (as the context may require) to be given in the form scheduled to the Raymond Pre-delivery Security Assignment;

 

“Raymond Contract Instalment
Advance” means, in relation to the Raymond Ship, each of the three (3) Advances of the Total Commitment, each in the
maximum amount in Dollars specified in the second column of schedule 5 opposite the name of the relevant Advance and

    	12

    	

    

each made or (as the context
may require) to be made to finance in part or re-finance in part (as the case may be) the payment of an instalment of the Raymond
Contract Price falling due before the Delivery Date for the Raymond Ship at the time specified in the third column of schedule
5 opposite the relevant Advance, and “Raymond Contract Instalment Advances” means any or all of them;

 

“Raymond Contract Price”
means the purchase price for the Raymond Ship under the Raymond Contract, being ninety five million five hundred thousand Dollars
($95,500,000) or such other lesser sum in Dollars as may be payable as the purchase price for the Raymond Ship by the Raymond Borrower
to the Builder pursuant to the Raymond Contract;

 

“Raymond Deed of Covenant”
means the deed of covenant and/or (as the case may be) the general assignment collateral to the Raymond Mortgage executed or (as
the context may require) to be executed by the Raymond Borrower in favour of the Security Agent and/or any of the other Creditors
in such form as the Agent may reasonably require;

 

“Raymond Delivery Advance”
means an Advance of up to $53,480,000 made or (as the context may require) to be made available to the Borrowers on the Delivery
Date of the Raymond Ship for the purpose of financing part of the construction and acquisition cost of the Raymond Ship by the
Raymond Borrower pursuant to the Raymond Contract;

 

“Raymond General Assignment”
means the specific assignment of the Earnings, Insurances and Requisition Compensation for the Raymond Ship executed or (as the
context may require) to be executed by the Raymond Borrower in favour of the Security Agent in such form as the Agent may require
in its reasonable discretion;

 

“Raymond Management
Agreement” means each agreement made or (as the context may require) to be made between the Raymond Borrower and any
Manager in the Standard Form or, if in any other form, in a form acceptable to the Agent (acting on the instructions of the Majority
Banks), providing (inter alia) for that Manager to carry out the commercial and/or the technical management of the Raymond
Ship;

 

“Raymond Mortgage”
means the first priority or (as the case may be) preferred mortgage of the Raymond Ship executed or (as the context may require)
to be executed by the Raymond Borrower in favour of the Security Agent and/or any of the other Creditors in such form as the Agent
may require in its reasonable discretion;

 

“Raymond Operating
Account” means an interest bearing Dollar account of the Raymond Borrower opened or (as the context may require) to be
opened with the Account Bank and includes any sub-accounts thereof;

 

“Raymond Operating
Account Assignment” means the first priority assignment of the Raymond Operating Account executed or (as the context
may require) to be executed by the Raymond Borrower in favour of the Security Agent in a form previously agreed between the Agent
and the Borrowers;

 

“Raymond Pre-delivery
Security Assignment” means the assignment of the Raymond Contract and the Raymond Refund Guarantee executed or (as the
context may require) to be executed by the Raymond Borrower in favour of the Security Agent in a form previously agreed between
the Agent and the Borrowers;

 

“Raymond Refund Guarantee”
means each letter of guarantee issued or (as the context may require) to be issued by the Refund Guarantor in favour of the Raymond
Borrower in respect of the Builder’s obligations under the Raymond Contract, each in the form prescribed in the Raymond Contract,
and any further guarantee(s) to be issued by the Refund Guarantor in respect of such obligations pursuant to any agreement supplemental
to the Raymond Contract, and any extensions, renewals or replacements thereto or thereof;

 

“Raymond Refund Guarantee
Assignment Consent and Acknowledgement” means, in relation to each Raymond Refund Guarantee, an acknowledgement of notice
of, and consent to, the assignment in respect of that Raymond Refund Guarantee given or (as the context may

    	13

    	

    

require) to be given by the
Refund Guarantor in the form scheduled to the Raymond Pre-delivery Security Assignment and “Raymond Refund Guarantee Assignment
Consents and Acknowledgements” means either or both of them;

 

“Raymond Ship”
means the approximately 9,000 teu container ship known on the date of this Agreement as Hull No. S4021 at the Builder’s yard,
to be constructed and sold by the Builder to the Raymond Borrower pursuant to the Raymond Contract and to be registered on its
Delivery Date in the ownership of the Raymond Borrower through the relevant Registry under the laws and flag of the relevant Flag
State;

 

“Raymond Sub-Tranche
A” means an amount up to the lesser of (i) $57,300,000 and (ii) 75% of the Raymond Tranche to be advanced by the Banks
to the Borrowers on a joint and several basis;

 

“Raymond Sub-Tranche
B” means an amount up to the lesser of (i) $19,100,000 and (ii) 25% of the Raymond Tranche to be advanced by DNB NOR
BANK ASA to the Borrowers on a joint and several basis;

 

“Raymond Tranche”
means a tranche of the Total Commitment and the Loan consisting of the aggregate of the Raymond Sub-Tranche A and Raymond Sub-Tranche
B of up to the lesser or (i) $76,400,000 and (ii) eighty per cent (80%) of the Contract Price of the Raymond Ship, comprising the
three (3) Raymond Contract Instalment Advances and the Raymond Delivery Advance, or (as the context may require) the aggregate
principal amount of such Tranche outstanding at any relevant time;

 

“Reference Bank”
means the Agent;

 

“Refund Guarantee”
means:

 

	 	(a)	in relation to the Raymond Ship, each Raymond Refund Guarantee; or
	 	 	 
	 	(b)	in relation to the Terance Ship, each Terance Refund Guarantee,

 

and “Refund Guarantees”
means either or both of them;

 

“Refund Guarantee Assignment
Consent and Acknowledgement” means:

 

	 	(a)	in relation to the Raymond Ship, each Raymond Refund Guarantee Assignment Consent and Acknowledgement; or
	 	 	 
	 	(b)	in relation to the Terance Ship, each Terance Refund Guarantee Assignment Consent and Acknowledgement,

 

and “Refund Guarantee
Assignment Consents and Acknowledgements” means either or both of them;

 

“Refund Guarantor”
means The Export-Import Bank of Korea, of 16-1, Yoido-Dong, Yeongdeungpo-Gu, Seoul 150-996, Korea or such other entity as the Agent
(acting on the instructions of the Majority Banks in their absolute discretion) may approve in writing, and it includes its successors
in title;

 

“Registry”
means, in respect of a Ship, such registrar, commissioner or representative of the relevant Flag State who is duly authorised and
empowered to register such Ship, the relevant Borrower’s title to such Ship and the relevant Mortgage under the laws and
flag of the relevant Flag State;

 

“Related Company”
of a person means any Subsidiary of such person, any company or other entity of which such person is a Subsidiary and any Subsidiary
of any such company or entity;

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

 

“Repayment Dates”
means, subject to clause 6.3 and in respect of the Tranche for each Ship, the date falling three (3) months after the Drawdown
Date of the Delivery Advance for such Ship and each of the dates falling at three (3) monthly intervals after such date up to
and including the date falling eighty four (84) months after the Drawdown Date of the Delivery Advance for such Ship;

 

“Requisition Compensation”
means, in relation to a Ship, all sums of money or other compensation from time to time payable during the Security Period by
reason of the Compulsory Acquisition of such Ship;

 

“Residual Value”
of the relevant Mortgaged Ship means the current charter-free market value (determined in accordance with clause 8.2.2) of a vessel
with identical characteristics to such Mortgaged Ship other than its age which shall be considered to be the age of such Mortgaged
Ship at the expiration of the relevant Charter to which such Mortgaged Ship is subject at the relevant time (excluding any charterers’
option but including owners’ option periods);

 

“Security Agent”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) or
such other person as may be appointed as security agent and trustee by the Banks, the Agent and the Swap Provider pursuant to
clause 16.14 and includes its successors in title;

 

“Security Documents”
means this Agreement, the Master Swap Agreement, the Fee Letters, the Mortgages, the Deeds of Covenant, the General Assignments,
the Charter Assignments, the Charter Guarantee Assignments, the Operating Account Assignments, the Corporate Guarantee, the Swap
Assignment and the Pre-delivery Security Assignments and any other documents as may have been or shall from time to time after
the date of this Agreement be executed to guarantee and/or secure all or any part of the Loan, interest thereon and other moneys
from time to time owing by the Borrowers and/or any other Security Party pursuant to this Agreement and/or the Master Swap Agreement
or any other Security Documents (whether or not any such document also secures moneys from time to time owing pursuant to any
other document or agreement) (other than the Manager’s Undertakings);

 

“Security Party”
means the Borrowers, the Corporate Guarantor or any other person who may at any time be a party to any of the Security Documents
(other than the Creditors, any Manager and the Commercial Parties);

 

“Security Period”
means the period commencing on the date hereof and terminating upon the discharge of the security created by the Security Documents
by payment of all monies payable thereunder;

 

“Security Requirement”
means, in relation to a Ship, the amount in Dollars (as certified by the Agent whose certificate shall, in the absence of manifest
error, be conclusive and binding on the Borrowers and the other Creditors) which is at any relevant time:

 

(i) if such Ship is employed
under a Charter or a Qualifying Charter, one hundred per cent (100%) of the Tranche outstanding for such Ship at that time, or

 

(ii) if such Ship is not
employed under a Charter or a Qualifying Charter and for a period commencing on the date falling ninety (90) days after such Ship
is no longer employed under a Charter or, as the case may be, a Qualifying Charter and ending on the date the Vessel is employed
under a Qualifying Charter or, as the case may be, another Qualifying Charter whereupon sub-paragraph (i) above shall apply, one
hundred and twenty five per cent (125%) of the Tranche outstanding for such Ship at that time, and

    	15

    	

    

(iii) on the date falling
ninety (90) days prior to the Final Maturity Date of the relevant Tranche, one hundred and twenty five per cent (125%) of the
Tranche outstanding for such Ship at that time;

 

“Security
Value” means, in relation to a Shipthe amount in Dollars (as certified by the Agent whose certificate shall, in
the absence of manifest error, be conclusive and binding on the Borrowers and the other Creditors) which is, at any relevant time,
the aggregate of (a) the market value of such Ship as most recently determined in accordance with clause 8.2.2 and (b) the market
value of any additional security for the time being actually provided to the Creditors or any of them pursuant to clause 8.2.1(b)
in connection with the Security Requirement relating to such Ship;

 

“Shanghai Costamare”
means Shanghai Costamare Ship Management Co., Ltd., a company incorporated in the People’s Republic of China and having
its principal place of business at 38F Sino Life Tower, 707 Zhangyanglu, Pudong New District, Shangai, People’s Republic
of China and it includes its successors in title;

 

“Ship”:

 

		(a)	in relation to the Raymond
                                                             Tranche and/or the Raymond Borrower, means the Raymond Ship; or

 

		(b)	in relation to the Terance
                                                             Tranche and/or the Terance Borrower, means the Terance Ship,

 

and
“Ships” means either or both of them;

 

“Ship
Security Documents”:

 

		(a)	in relation to the Raymond Ship,
                                                             means the Raymond Mortgage, the Raymond Deed of Covenant, the Raymond
                                                             General Assignment, the Raymond Charter Assignment and the Raymond
                                                             Charter Guarantee Assignment; or

 

		(b)	in relation to the Terance Ship,
                                                             means the Terance Mortgage, the Terance Deed of Covenant, the Terance
                                                             General Assignment, the Terance Charter Assignment and the Terance
                                                             Charter Guarantee Assignment;

 

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

 

“Standard Form”
means, in relation to any Ship, the Group’s standard form of Group management agreement for vessels of the Group (including
the individual form of management agreement per vessel) which includes the amounts of remuneration payable to a Manager for its
services thereunder), as submitted by or on behalf of the Borrowers to the Agent prior to this Agreement;

 

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

 

“Sub-Tranche”
means any of Sub-Tranche A or Sub-Tranche B and “Sub-Tranches” means either or both of them;

 

“Sub-Tranche A”
means any of the Raymond Sub-Tranche A and Terance Sub-Tranche A;

 

“Sub-Tranche B”
means any of the Raymond Sub-Tranche B and Terance Sub-Tranche B;

 

“Swap Assignment”
means the assignment executed or (as the context may require) to be executed by the Borrowers in favour of the Security Agent
in connection with certain of the

    	16

    	

    

rights of the Borrowers
under the Master Swap Agreement in a form previously agreed between the Swap Provider and the Borrowers;

 

“Swap Exposure”
means, as at any relevant time, the amount certified by the Swap Provider to the Agent to be the aggregate net amount in Dollars
which would be payable by the Borrowers to the Swap Provider under (and calculated in accordance with) section 6(e) (Payments
on Early Termination) of the Master Swap Agreement if an Early Termination Date had occurred at the relevant time in relation
to all continuing Designated Transactions;

 

“Swap Provider”
means DnB NOR Bank ASA, a company incorporated in Norway with its registered office at Stranden 21, P.O. Box 1171 Sentrum N-0107
Oslo, Norway, acting for the purposes of this Agreement through its branch at 20 St. Dunstan’s Hill, London EC3R 8HY, England
(or of such other address as may last have been notified to the other parties to this Agreement pursuant to clause 17.1.3) and
includes its successors in title;

 

“Taxes”
includes all present and future taxes, levies, imposts, duties, fees or charges of whatever nature together with interest thereon
and penalties in respect thereof and “Taxation” shall be construed accordingly;

 

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

 

“Terance Borrower”
means Terance Shipping Co. of 80 Broad Street, Monrovia, Liberia and includes its successors in title;

 

“Terance Charter”
means the time charterparty dated 30 March 2011 in respect of the Terance Ship made between the Charterer and the Terance Borrower,
and as the same may be further amended, supplemented and/or novated from time to time;

 

“Terance Charter
Assignment” means the specific assignment of the Terance Charter executed or (as the context may require) to be executed
by the Terance Borrower in favour of the Security Agent in a form previously agreed between the Agent and the Borrowers;

 

“Terance Charter
Guarantee Assignment” means the specific assignment of the Terance Charter Guarantee executed or (as the context may
require) to be executed by the Terance Borrower in favour of the Security Agent in a form previously agreed between the Agent
and the Borrowers;

 

“Terance Charter
Guarantee” means the unconditional and irrevocable guarantee contained in clause 78 of the Terance Charter granted by
the Charter Guarantor in favour of the Terance Borrower;

 

“Terance Contract”
means the shipbuilding contract dated 20 April 2011 made between the Builder and the Terance Borrower, as may be amended and supplemented
from time to time, relating to the construction and sale by the Builder, and the purchase by the Terance Borrower, of the Terance
Ship;

 

“Terance Contract
Assignment Consent and Acknowledgement” means the acknowledgement of notice of, and consent to, the assignment in respect
of the Terance Contract given or (as the context may require) to be given in the form scheduled to the Terance Pre-delivery Security
Assignment;

 

“Terance Contract
Instalment Advance” means, in relation to the Terance Ship, each of the three (3) Advances of the Total Commitment,
each in the maximum amount in Dollars specified in the second column of schedule 5 opposite the name of the relevant Advance and
each made or (as the context may require) to be made to finance in part or re-finance in part (as the case may be) the payment
of an instalment of the Terance Contract Price falling due before the Delivery Date for the Terance Ship at the time specified
in the third column of schedule 5 opposite the relevant Advance, and “Terance Contract Instalment Advances”
means any or all of them;

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“Terance Contract
Price” means the purchase price for the Terance Ship under the Terance Contract, being ninety five million five hundred
thousand Dollars ($95,500,000) or such other lesser sum in Dollars as may be payable as the purchase price for the Terance Ship
by the Terance Borrower to the Builder pursuant to the Terance Contract;

 

“Terance Deed
of Covenant” means the deed of covenant and/or (as the case may be) the general assignment collateral to the Terance
Mortgage executed or (as the context may require) to be executed by the Terance Borrower in favour of the Security Agent and/or
any of the other Creditors in such form as the Agent may reasonably require;

 

“Terance Delivery
Advance” means an Advance of up to $53,480,000 made or (as the context may require) to be made available to the Borrowers
on the Delivery Date of the Terance Ship for the purpose of financing part of the construction and acquisition cost of the Terance
Ship by the Terance Borrower pursuant to the Terance Contract;

 

“Terance General
Assignment” means the specific assignment of the Earnings, Insurances and Requisition Compensation for the Terance Ship
executed or (as the context may require) to be executed by the Terance Borrower in favour of the Security Agent in such form as
the Agent may require in its reasonable discretion;

 

“Terance Management
Agreement” means each agreement made or (as the context may require) to be made between the Terance Borrower and any
Manager in the Standard Form or, if in any other form, in a form acceptable to the Agent (acting on the instructions of the Majority
Banks), providing (inter alia) for that Manager to carry out the commercial and/or the technical management of the Terance
Ship;

 

“Terance Mortgage”
means the first priority or (as the case may be) preferred mortgage of the Terance Ship executed or (as the context may require)
to be executed by the Terance Borrower in favour of the Security Agent and/or any of the other Creditors in such form as the Agent
may require in its reasonable discretion;

 

“Terance Operating
Account” means an interest bearing Dollar account of the Terance Borrower opened or (as the context may require) to
be opened with the Account Bank and includes any sub-accounts thereof;

 

“Terance Operating
Account Assignment” means the first priority assignment of the Terance Operating Account executed or (as the context
may require) to be executed by the Terance Borrower in favour of the Security Agent in a form previously agreed between the Agent
and the Borrowers;

 

“Terance Pre-delivery
Security Assignment” means the assignment of the Terance Contract and the Terance Refund Guarantee executed or (as the
context may require) to be executed by the Terance Borrower in favour of the Security Agent in a form previously agreed between
the Agent and the Borrowers;

 

“Terance Refund
Guarantee” means each letter of guarantee issued or (as the context may require) to be issued by the Refund Guarantor
in favour of the Terance Borrower in respect of the Builder’s obligations under the Terance Contract, each in the form prescribed
in the Terance Contract, and any further guarantee(s) to be issued by the Refund Guarantor in respect of such obligations pursuant
to any agreement supplemental to the Terance Contract, and any extensions, renewals or replacements thereto or thereof;

 

“Terance Refund
Guarantee Assignment Consent and Acknowledgement” means, in relation to each Terance Refund Guarantee, an acknowledgement
of notice of, and consent to, the assignment in respect of that Terance Refund Guarantee given or (as the context may require)
to be given by the Refund Guarantor in the form scheduled to the Terance Pre-delivery Security Assignment and “Terance
Refund Guarantee Assignment Consents and Acknowledgements” means either or both of them;

 

“Terance Ship”
means the approximately 9,000 teu container ship known on the date of this Agreement as Hull No. S4023 at the Builder’s
yard, to be constructed and sold by the Builder

    	18

    	

    

to the Terance Borrower
pursuant to the Terance Contract and to be registered on its Delivery Date in the ownership of the Terance Borrower through the
relevant Registry under the laws and flag of the relevant Flag State;

 

“Terance Sub-Tranche
A” means an amount up to the lesser of (i) $57,300,000 and (ii) 75% of the Terance Tranche to be advanced by the Banks
to the Borrowers on a joint and several basis;

 

“Terance Sub-Tranche
B” means an amount up to the lesser of (i) $19,100,000 and (ii) 25% of the Terance Tranche to be advanced by DNB NOR
BANK ASA to the Borrowers on a joint and several basis;

 

“Terance Tranche”
means a tranche of the Total Commitment and the Loan consisting of the aggregate of the Terance Sub-Tranche A and Terance Sub-Tranche
B of up to the lesser or (i) $76,400,000 and (ii) eighty per cent (80%) of the Contract Price of the Terance Ship, comprising
the three (3) Terance Contract Instalment Advances and the Terance Delivery Advance, or (as the context may require) the aggregate
principal amount of such Tranche outstanding at any relevant time;

 

“Time Charter
Income” means, in relation to a Ship, the aggregate charter hire due and payable to the relevant Borrower for the remaining
unexpired term of the Charter or the Qualifying Charter relative to that Ship at the relevant time (excluding any charterers’
option but including owners’ option periods) less the aggregate operating expenses of that Ship as determined by the relevant
Borrower and certified to the satisfaction of the Agent for the same period;

 

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

 

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

 

		(a)	the actual, constructive, compromised
                                                             or arranged total loss of such Ship; or

 

		(b)	the Compulsory Acquisition of such
                                                             Ship; or

 

		(c)	the hijacking, theft, condemnation,
                                                             capture, seizure, arrest, detention or confiscation
                                                             (other than where the same amounts to the Compulsory Acquisition
                                                             of such Ship) by any Government Entity, or by persons acting or purporting
                                                             to act on behalf of any Government Entity, unless such Ship be released
                                                             and restored to the relevant Borrower from such hijacking, theft,
                                                             condemnation, capture, seizure, arrest, detention, or confiscation
                                                             within ninety (90) days after the occurrence thereof;

 

“Tranche”:

 

		(a)	in relation to the Raymond
                                                             Ship and/or the Raymond Borrower, means the Raymond Tranche; or

 

		(b)	in relation to the Terance
                                                             Ship and/or the Terance Borrower, means the Terance Tranche,

 

and “Tranches”
means either or both of them;

 

“Transaction”
has the meaning given to it in the Master Swap Agreement;

 

“Transfer Certificate”
means a certificate in substantially the form set out in schedule 4;

 

“Transferee Bank”
has the meaning ascribed thereto in clause 15.3;

 

“Transferor Bank”
has the meaning ascribed thereto in clause 15.3;

    	19

    	

    

“Trust Deed”
means a trust deed in the form, or substantially in the form, set out in schedule 6;

 

“Trust Property”
means (i) the security, powers, rights, titles, benefits and interests (both present and future) constituted by and conferred
on the Security Agent under or pursuant to the Security Documents (including, without limitation, the benefit of all covenants,
undertakings, representations, warranties and obligations given, made or undertaken to the Security Agent in the Security Documents),
(ii) all moneys, property and other assets paid or transferred to or vested in the Security Agent or any agent of the Security
Agent or any receiver or received or recovered by the Security Agent or any agent of the Security Agent or any receiver pursuant
to, or in connection with, any of the Security Documents whether from any Security Party or any other person and (iii) all moneys,
investments, property and other assets at any time representing or deriving from any of the foregoing, including all interest,
income and other sums at any time received or receivable by the Security Agent or any agent of the Security Agent or any receiver
in respect of the same (or any part thereof);

 

“Underlying Documents”
means, together, the Contracts, the Refund Guarantees, the Charters, the Qualifying Charters and the Management Agreements and
“Underlying Document” means any of them.

 

	1.3	Headings

 

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

 

	1.4	Construction
                                                                         of certain terms

 

In this Agreement, unless
the context otherwise requires:

 

		1.4.1	references to clauses and schedules are
                                                             to be construed as references to clauses of, and schedules to,
                                                             this Agreement and references to this Agreement include its schedules;

 

		1.4.2	references to (or to any specified
                                                             provision of) this Agreement or any other document shall be construed
                                                             as references to this Agreement, that provision or that document
                                                             as in force for the time being and as amended in accordance with
                                                             terms thereof, or, as the case may be, with the agreement of the
                                                             relevant parties;

 

		1.4.3	references to a “regulation”
                                                             include any present or future regulation, rule, directive, requirement,
                                                             request or guideline (whether or not having the force of law, but
                                                             if not having the force of law, one with which the relevant person
                                                             habitually complies) of any agency, authority, central bank or government
                                                             department or any self-regulatory or other national or supra-national
                                                             authority and, for the avoidance of doubt, shall include any Basel
                                                             2 Regulation;

 

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

 

		1.4.5	references to a time of day are to
                                                             London time;

 

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

 

		1.4.7	“control” means,
                                                             in relation to a body corporate:

 

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

 

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

    	20

    	

    

		(ii)	appoint or remove all, or the majority,
                                                              of the directors or other equivalent officers of such body corporate;
                                                              or

 

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

 

		(b)	the holding beneficially of more
                                                             than 50 per cent of the issued share capital of such body corporate
                                                             (excluding any part of that issued share capital that carries no
                                                             right to participate beyond a specified amount in a distribution
                                                             of either profits or capital),

 

and “controlled”
shall be construed accordingly;

 

		1.4.8	two or more persons are “acting
                                                             in concert” if, pursuant to an agreement or understanding
                                                             (whether formal or informal), they actively co-operate, through the
                                                             acquisition (directly or indirectly) of shares in the Corporate Guarantor
                                                             by any of them, either directly or indirectly to obtain or consolidate
                                                             control of the Corporate Guarantor;

 

		1.4.9	references to a “guarantee”
                                                             include references to an indemnity or other assurance against financial
                                                             loss including, without limitation, an obligation to purchase assets
                                                             or services as a consequence of a default by any other person to
                                                             pay any Indebtedness and “guaranteed” shall be
                                                             construed accordingly;

 

		1.4.10	references to the “equivalent”
                                                              of an amount specified in a particular currency (the “first
                                                              amount”), shall be construed as a reference to the net
                                                              amount of any other currency which the Agent determines can be purchased
                                                              with the first amount in the London foreign exchange market at or
                                                              about 11.00 a.m. on the day on which the calculation falls to be
                                                              made for spot delivery; and

 

		1.4.11	references to any enactment shall
                                                              be deemed to include references to such enactment as re-enacted,
                                                              amended or extended.

 

		1.5	Majority
                                                                                                                                             Banks

 

Where this Agreement or
any other Security Document provides for any matter to be determined by reference to the opinion of the Majority Banks or to be
subject to the consent or request of the Majority Banks or for any action to be taken on the instructions in writing of the Majority
Banks, such opinion, consent, request or instructions shall (as between the Banks) only be regarded as having been validly given
or issued by the Majority Banks if all the Banks shall have received prior notice of the matter on which such opinion, consent,
request or instructions are required to be obtained and the relevant majority of such Banks shall have given or issued such opinion,
consent, request or instructions but so that (as between the Borrowers and the Creditors) the Borrowers shall be entitled (and
bound) to assume that such notice shall have been duly received by each relevant Bank and that the relevant majority shall have
been obtained to constitute Majority Banks whether or not this is in fact the case.

 

		1.6	Banks’
                                                                                                                                             Commitments

 

For the purposes of the
definition of “Majority Banks” in clause 1.5, references to the Commitment of a Bank shall, if the Total
Commitment has, at any relevant time, been reduced to zero, be deemed to be a reference to the Commitment of that Bank immediately
prior to such reduction to zero.

 

		1.7	Continuing
                                                                                                                                             Defaults

 

For the purposes of this
Agreement and the other Security Documents, a Default or an Event of Default is “continuing” if it has not
been remedied or waived.

 

		2	The
                                                                                                                                           Total
                                                                                                                                           Commitment
                                                                                                                                           and
                                                                                                                                           the
                                                                                                                                           Advances

    	21

    	

    

		2.1	Agreement
                                                                                                                                             to
                                                                                                                                             lend

 

The Banks,
relying upon each of the representations and warranties in clause 7, agree to lend to the Borrowers, jointly and severally,
upon and subject to the terms of this Agreement, the principal sum of up to one hundred and fifty two million eight hundred thousand
Dollars ($152,800,000) in eight (8) Advances comprising two (2) Tranches each of which comprises two (2) Sub-Tranches. The obligation
of each Bank under this Agreement shall be to contribute that proportion of each Advance which, as at the Drawdown Date of such
Advance, its Commitment bears to the Total Commitment, where each Sub-Tranche A shall be advanced by the Banks and each Sub-Tranche
B shall be advanced by DNB NOR BANK ASA only.

 

		2.2	Obligations
                                                                                                                                             several

 

The obligations
of the Banks under this Agreement are several according to their respective Commitments and/or Contributions; the failure of any
Bank to perform such obligations or the failure of the Swap Provider to perform its obligations under the Master Swap Agreement
shall not relieve any other Creditor or the Borrowers or any of them of any of their respective obligations or liabilities under
this Agreement or, as the case may be, the Master Swap Agreement nor shall any Creditor be responsible for the obligations of
any other Creditor (except for its own obligations, if any, as a Bank or Swap Provider) under this Agreement or the Master Swap
Agreement.

 

		2.3	Interests
                                                                                                                                             several

 

Notwithstanding
any other term of this Agreement (but without prejudice to the provisions of this Agreement relating to or requiring action by
the Majority Banks) the interests of the Creditors are several and the amount due to any Creditor is a separate and independent
debt. No Creditor however shall have the right to protect and enforce its rights arising out of this Agreement except with the
prior written consent of the Majority Banks. If however such consent by the Majority Banks is given and a Creditor takes any such
action, it shall not be necessary for any other Creditor to be joined as an additional party in any proceedings for this purpose.

 

		2.4	Drawdown

 

Subject
to the terms and conditions of this Agreement, each Advance shall be made to the Borrowers following receipt by the Agent from
the Borrowers of a Drawdown Notice not later than 10:00 a.m. (London time) on the third Banking Day before the date, which shall
be a Banking Day falling within the Drawdown Period for such Advance, on which the Borrowers propose such Advance is made. A Drawdown
Notice (i) shall be effective on actual receipt by the Agent and (ii) once given, shall, subject as provided in clause 3.6.1,
be irrevocable.

 

		2.5	Timing,
                                                                                                                                             restrictions
                                                                                                                                             and
                                                                                                                                             limitation
                                                                                                                                             of
                                                                                                                                             Advances

 

		2.5.1	The aggregate amount of the Loan
                                                             shall not exceed the lower of (a) one hundred and fifty two million
                                                             eight hundred thousand Dollars ($152,800,000) and (b) the amount
                                                             in Dollars which is eighty per cent (80%) of the aggregate Contract
                                                             Prices for all Ships. Each Advance shall, subject to the following
                                                             provisions of this clause 2.5, be for such amount as is specified
                                                             in the Drawdown Notice for that Advance.

 

		2.5.2	The aggregate amount of the Tranche
                                                             for each Ship shall not exceed the lower of (a) $76,400,000 and (b)
                                                             the amount in Dollars which is eighty per cent (80%) of the Contract
                                                             Price for such Ship.

 

		2.5.3	The aggregate amount of each Contract
                                                             Instalment Advance shall be as follows:

 

each
of the first, second and third Contract Instalment Advances for each Ship shall not exceed the lower of (i) $7,640,000 (comprising
(a) Sub-Tranche A in an amount up to the lesser of (1) $5,730,000 and (2) 75% of the relevant Contract Instalment Advance to be
advanced by the Banks to the Borrowers and (b) Sub-Tranche B in an amount up to the

    	22

    	

    

lesser
of (1) $1,910,000 and (2) 25% of the relevant Contract Instalment Advance to be advanced by DNB NOR BANK ASA to the Borrowers)
and (ii) the amount in Dollars which is equal to eighty per cent (80%) of the “1st Instalment” or (as the case may
be), the “2nd Instalment” or (as the case may be) the “3rd Instalment” of the Contract Price for the Ship
relevant to such Contract Instalment Advance, which is payable at the time specified in the third column of schedule 5 opposite
the relevant Contract Instalment Advance,

 

and each
Contract Instalment Advance for a Ship shall be applied in or towards payment to the Builder or, in reimbursement to the Borrowers,
of the relevant aforesaid instalment of the Contract Price payable or paid (as the case may be) under the Contract for the Ship
relevant to such Contract Instalment Advance, and shall be made available to the Borrowers when such instalment has become due
and payable under the relevant Contract or, if already paid by the Borrowers to the Builder.

 

		2.5.4	Each Delivery Advance:

 

		(a)	shall not exceed the lower of (i)
                                                             $53,480,000 (comprising (a) Sub-Tranche A in an amount up to the
                                                             lesser of (1) $40,110,000 and (2) 75% of the relevant Delivery Advance
                                                             to be advanced by the Banks to the Borrowers and (b) Sub-Tranche
                                                             B in an amount up to the lesser of (1) of $13,370,000 and (2) 25%
                                                             of the relevant Delivery Advance to be advanced by DNB NOR BANK ASA
                                                             to the Borrowers), (ii) the amount in Dollars which is equal to eighty
                                                             per cent (80%) of the “4th Instalment” of the Contract
                                                             Price for the Ship relevant to such Advance, (iii) the amount in
                                                             Dollars which, when added to the total amount of the Contract Instalment
                                                             Advances for such Ship actually drawn down, is equal to 80% of the
                                                             Contract Price of such Ship and (iv) the amount in Dollars which,
                                                             when added to the total amount of the Contract Instalment Advances
                                                             for such Ship actually drawn down, is equal to $76,400,000; and

 

		(b)	shall be applied in or towards payment
                                                             to the Builder of the “4th Instalment” of the Contract
                                                             Price for such Ship falling due on the relevant Delivery Date, and
                                                             shall be made available to the Borrowers when such instalment has
                                                             become due and payable.

 

		2.6	Availability

 

Following a Drawdown
Notice

 

Upon receipt of a Drawdown
Notice complying with the terms of this Agreement, the Agent shall promptly notify each Bank and, subject to the provisions of
clause 9, each Bank shall, on the Drawdown Date for the relevant Advance, make available to the Agent its portion of the relevant
Advance for payment by the Agent in accordance with clause 6.2. The Borrowers acknowledge that payment of any Advance or
part thereof to the Builder or to the Borrowers or any of them in accordance with clause 6.2, shall satisfy the obligation of
the Banks to lend that Advance to the Borrowers under this Agreement.

 

		2.7	Termination
                                                                                                                                                    of
                                                                                                                                                    Total
                                                                                                                                                    Commitment

 

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

 

		2.8	Application
                                                                                                                                                    of
                                                                                                                                                    proceeds

 

Without prejudice to the
Borrowers’ obligations under clause 8.1.3, no Creditor shall have any responsibility for the application of the proceeds
of the Loan or any part thereof by the Borrowers.

 

		2.9	Derivative transactions

 

		2.9.1	If, at any time during the Security
                                                             Period, the Borrowers wish to enter into interest rate swap or other
                                                             derivative transactions so as to hedge all or any part of their exposure
                                                             under this Agreement to interest rate fluctuations, they shall advise
                                                             the Swap Provider in writing.

    	23

    	

    

		2.9.2	Any such swap or other derivative
                                                             transaction shall be concluded with the Swap Provider under the Master
                                                             Swap Agreement provided however that no such swap or other derivative
                                                             transaction shall be concluded unless the Swap Provider first agrees
                                                             to it in writing. For the avoidance of doubt, other than the Swap
                                                             Provider’s agreement in writing referred to in the preceding
                                                             sentence no prior approval is required by the Borrowers from any
                                                             other Creditor before concluding any such transaction. If and when
                                                             any such swap or other derivative transaction has been concluded,
                                                             it shall constitute a Designated Transaction, and the Borrowers and
                                                             the Corporate Guarantor shall sign a Confirmation with the Swap Provider
                                                             and advise the Banks through the Agent promptly after concluding
                                                             any Designated Transaction.

 

		2.10	“Pre-placement”
                                                                                                                                              of
                                                                                                                                              Delivery
                                                                                                                                              Advances

 

		2.10.1	Notwithstanding that the Borrowers
                                                              may have not yet satisfied all of the conditions precedent set out
                                                              in schedule 3, Part 3 in relation to a Ship, in order to facilitate
                                                              compliance by the relevant Borrower with Article X.4(a) of the Contract
                                                              relevant to that Ship, and provided that:

 

		(a)	the Borrowers have submitted a relevant
                                                             Drawdown Notice in accordance with clause 2.4; and

 

		(b)	in the Agent’s opinion the
                                                             Borrowers are reasonably likely to satisfy all such conditions precedent
                                                             in relation to that Ship within 4 Banking Days from the Drawdown
                                                             Date and in any event upon the Release (as defined below in clause
                                                             2.10.2),

 

the Banks
may, subject to the other terms and conditions of this clause 2.10 and the other provisions of this Agreement, make available
to the Agent the Delivery Advance for that Ship, on the date specified in the relevant Drawdown Notice, being the date on which
the “4th Instalment” for that Ship is required to be deposited in accordance with Article X.4(ii) of the Contract
with the relevant builder’s bank referred to in that Contract (the “Builder’s Bank”).

 

		2.10.2	Any such Delivery Advance drawn
                                                              down pursuant to this clause 2.10 (a “Pre-placed Advance”)
                                                              shall (subject to the other provisions of this Agreement) be remitted
                                                              by the Agent to the Builder’s Bank as a cash deposit in the
                                                              Agent’s name with the Builder’s Bank (the “Agent
                                                              Account”) with its correspondent bank in New York, and
                                                              will be held by the Builder’s Bank to the order of the Agent
                                                              for release by the Agent to the Builder (the “Release”)
                                                              and only subject to such irrevocable instructions (the “Irrevocable
                                                              Instructions”) addressed from the Agent to the Builder’s
                                                              Bank as are acceptable to the Agent (acting on the instructions
                                                              of the Majority Banks).

 

		2.10.3	The Irrevocable Instructions shall
                                                              provide (inter alia) that the Pre-placed Advance shall not be released
                                                              to the Builder or to its order, and the Agent shall not agree to
                                                              release a Pre-placed Advance to the Builder or its order, unless
                                                              and until the Agent is satisfied that the “Protocol of Delivery
                                                              and Acceptance” in respect of the relevant Ship has been signed
                                                              by the Builder and the relevant Borrower and counter-signed by the
                                                              Agent or one of its duly authorised representatives.

 

		2.10.4	The Borrowers hereby irrevocably
                                                              and unconditionally undertake that none of the Borrowers shall give
                                                              any instructions to the Builder’s Bank that are inconsistent
                                                              with any Irrevocable Instructions in respect of a Pre-placed Advance.

 

		2.10.5	The Borrowers shall immediately
                                                              prepay a Pre-placed Advance, together with interest thereon (calculated
                                                              in accordance with clause 3.1), on the date on which the Builder’s
                                                              Bank is required to return the moneys funded by that Pre-placed
                                                              Advance to the Agent in accordance with the Irrevocable Instructions
                                                              (and regardless of whether the Builder’s Bank has then carried
                                                              out such instructions), provided that any moneys actually returned
                                                              to the Agent from the Agent Account shall be applied by the Agent
                                                              in satisfaction of such prepayment obligation of the Borrowers and
                                                              in payment of any amounts payable by the Borrowers under clause
                                                              4.4 as a result of such prepayment.

    	24

    	

    

		2.10.6	In case of application of this clause
                                                              2.10 in respect of a Pre-placed Advance, that Pre-placed Advance
                                                              shall accrue interest in accordance with the terms of clause 3.1
                                                              from its Drawdown Date.

 

		3	Interest
                                                                                                                                           and
                                                                                                                                           Interest
                                                                                                                                           Periods

 

		3.1	Normal
                                                                                                                                             interest
                                                                                                                                             rate

 

The Borrowers shall pay
interest on each Advance or (as the case may be) Tranche or Sub-Tranche, in respect of each Interest Period relating thereto on
each Interest Payment Date (or, in the case of Interest Periods of more than three (3) months, by instalments, the first instalment
three (3) months from the commencement of the Interest Period and the subsequent instalments at intervals of three (3) months
or, if shorter, the period from the date of the preceding instalment until the Interest Payment Date relative to such Interest
Period) at the rate per annum determined by the Agent to be the aggregate of (a) the relevant Margin, (b)  LIBOR for such
Interest Period and (c) Mandatory Cost (if any).

 

		3.2	Selection
                                                                                                                                             of
                                                                                                                                             Interest
                                                                                                                                             Periods

 

Subject to clause 3.3,
the Borrowers may by notice received by the Agent not later than 10:00 a.m. on the second Banking Day before the beginning of
each Interest Period specify whether such Interest Period shall have a duration of three (3), six (6), nine (9) or twelve (12)
months or, subject to availability, such other period as the Borrowers may select and the Agent may agree in its absolute discretion,
acting on the instructions of the Majority Banks.

 

		3.3	Determination
                                                                                                                                             of
                                                                                                                                             Interest
                                                                                                                                             Periods

 

Every Interest Period shall
be of the duration specified by the Borrowers pursuant to clause 3.2 but so that:

 

		3.3.1	the initial Interest Period in respect
                                                             of each Advance shall commence on the date such Advance is made and
                                                             each subsequent Interest Period in respect of such Advance shall
                                                             commence on the last day of the previous Interest Period in respect
                                                             of such Advance;

 

		3.3.2	the initial Interest Period in respect
                                                             of each Advance for a Ship drawn down after the first Advance for
                                                             such Ship to be drawn down shall end on the same day as the then
                                                             current Interest Period for the other drawn Advances of the same
                                                             Tranche and, on such day, all such Advances shall be consolidated
                                                             into, and shall thereafter constitute, the Tranche for that Ship;

 

		3.3.3	if any Interest Period for a Tranche
                                                             would otherwise overrun a Repayment Date for such Tranche, then,
                                                             in the case of the last Repayment Date for such Tranche, such Interest
                                                             Period shall end on such Repayment Date, and in the case of any other
                                                             Repayment Date or Repayment Dates for such Tranche, the relevant
                                                             Tranche shall be divided into parts so that there is one part in
                                                             the amount of the repayment instalment or instalments due on each
                                                             Repayment Date for such Tranche falling during that Interest Period
                                                             and having an Interest Period ending on the relevant Repayment Date
                                                             and another part in the amount of the balance of such Tranche having
                                                             an Interest Period ascertained in accordance with clause 3.2 and
                                                             the other provisions of this clause 3.3; and

 

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

 

		3.4	Default
                                                                                                                                             interest

 

If the Borrowers fail to
pay any sum (including, without limitation, any sum payable pursuant to this clause 3.4) on its due date for payment under
any of the Security Documents (except the Master Swap Agreement), the Borrowers shall pay interest on such sum on demand from
the due date up to the date of actual payment (as well after as before judgment) at a rate determined by the Agent pursuant to
this clause 3.4. The period beginning on such due date

    	25

    	

    

and ending on such date
of payment shall be divided into successive periods of not more than three (3) months as selected by the Agent each of which (other
than the first, which shall commence on such due date) shall commence on the last day of the preceding such period. The rate of
interest applicable to each such period shall be the aggregate (as determined by the Agent) of (a) two per cent (2%) per annum,
(b) the Margin, (c) LIBOR for such period and (d) the Mandatory Cost (if any). Such interest shall be due and payable on the last
day of each such period as determined by the Agent and each such day shall, for the purposes of this Agreement, be treated as
an Interest Payment Date, provided that (i) if such unpaid sum is an amount of principal which became due and payable by reason
of a declaration by the Agent under clause 10.2.2 or a prepayment pursuant to clauses  2.10, 4.4, 8.2.1(a) or 12.1,
on a date other than an Interest Payment Date relating thereto, the first such period selected by the Agent shall be of a duration
equal to the period between the due date of such principal sum and such Interest Payment Date and interest shall be payable on
such principal sum during such period at a rate of two per cent (2%) above the rate applicable thereto immediately before it shall
have become so due and payable and (ii) if the Agent selects under this clause 3.4 Interest Periods which are shorter than 3 months,
interest under this clause shall (notwithstanding such selection) only be compounded and paid not more frequently than at 3 monthly
intervals. If, for the reasons specified in clause 3.6.1, the Agent is unable to determine a rate in accordance with the
foregoing provisions of this clause 3.4, each Bank shall promptly notify the Agent of the cost of funds to such Bank and
interest on any sum not paid on its due date for payment shall be calculated at a rate determined by the Agent to be two per cent
(2%) per annum above the aggregate of the Margin and the cost of funds to such Bank (including Mandatory Cost, if any).

 

		3.5	Notification
                                                                                                                                             of
                                                                                                                                             Interest
                                                                                                                                             Periods
                                                                                                                                             and
                                                                                                                                             interest
                                                                                                                                             rate

 

The Agent shall notify
the Borrowers and the Banks promptly of the duration of each Interest Period and of each rate of interest (or, as the case may
be default interest) determined by it under this clause 3.

 

		3.6	Market
                                                                                                                                             disruption;
                                                                                                                                             non-availability

 

		3.6.1	If and whenever, at any time prior
                                                             to the commencement of any Interest Period:

 

		(a)	the Agent shall have determined (which
                                                             determination shall, in the absence of manifest error, be conclusive)
                                                             that adequate and fair means do not exist for ascertaining LIBOR
                                                             during such Interest Period due to circumstances affecting the London
                                                             interbank market generally (and provided always that if the screen
                                                             rate referred to in paragraph (a) of the definition of LIBOR in clause
                                                             1.2 is available at any relevant time, no person may argue under
                                                             this paragraph (a) that adequate and fair means did not exist for
                                                             ascertaining LIBOR during the relevant Interest Period); or

 

		(b)	where applicable the Reference Bank
                                                             does not supply the Agent with a quotation for the purpose of calculating
                                                             LIBOR; or

 

		(c)	the Agent shall have received notification
                                                             from Banks whose aggregate Contributions are not less than fifty
                                                             per cent (50%) of the Loan or, prior to the first drawdown, from
                                                             Banks whose aggregate Commitments are not less than fifty per cent
                                                             (50%) of the Total Commitment, that deposits in Dollars are not available
                                                             to such Banks in the London Interbank Market in the ordinary course
                                                             of business in sufficient amounts to fund their Commitments or their
                                                             Contributions for such Interest Period or that LIBOR does not accurately
                                                             reflect the cost to such Banks of obtaining such deposits,

 

the Agent shall forthwith
give notice (a “Determination Notice”) thereof to the Borrowers and to each of the Banks and the Swap Provider.
A Determination Notice shall contain particulars of the relevant circumstances giving rise to its issue. After the giving of any
Determination Notice the undrawn amount of the Total Commitment shall not be borrowed, until notice to the contrary is given to
the Borrowers by the Agent.

 

		3.6.2	During the period of thirty (30)
                                                             days after any Determination Notice has been given by the Agent under
                                                             clause 3.6.1, the Borrowers and the Banks shall negotiate in
                                                             good faith with a

    	26

    	

    
		view to arriving at a mutually acceptable alternative basis for each Bank to maintain its Contribution.
If, within such 30 day period, no such mutually acceptable alternative basis is reached for all the Banks, each Bank shall certify
an alternative basis (the “Alternative Basis”) for maintaining its Contribution. The Alternative Basis may at
the relevant Bank’s sole and unfettered discretion (without limitation) include alternative interest periods, alternative
currencies or alternative rates of interest but shall include a margin above the cost of funds (including Mandatory Cost, if any)
to such Bank equivalent to the Margin. The Agent shall calculate the arithmetic mean of the Alternative Bases provided by the relevant
Banks (the “Substitute Basis”) and certify the same to the Borrowers, the Banks and the Swap Provider. The Substitute
Basis so certified shall be binding upon the Borrowers and shall take effect in accordance with its terms from the date specified
in the Determination Notice until such time as the Agent notifies the Borrowers that none of the circumstances specified in clause 3.6.1
continues to exist whereupon the normal interest rate fixing provisions of this Agreement shall apply. For so long as any Substitute
Basis is in force, the Agent shall from time to time (but at least on a monthly basis) and in consultation with the Banks, review
whether or not the circumstances that have caused the application of the Substitute Basis have ceased to exist, and if the Majority
Banks and the Agent conclude that they have so ceased to exist and that such Substitute Basis shall no longer apply, the Agent
shall notify the Borrowers and the Banks that the Substitute Basis shall case to be effective from such date as the Agent shall
reasonably specify.

 

	4	Repayment
                                                                       and prepayment

 

	4.1	Repayment

 

	4.1.1	Subject to the other provisions of this clause 4.1, the Borrowers shall repay each Tranche by twenty
eight (28) consecutive quarterly repayment instalments, one such instalment to be repaid on each of the Repayment Dates for such
Tranche. Subject to the provisions of this Agreement, the amount of each of the first to twenty seventh (27th) instalments
(inclusive) in respect of each such Tranche shall be $1,364,300 and the amount of the twenty eighth (28th) and final
instalment in respect of each such Tranche shall be $39,563,900 (comprising a repayment instalment of $1,364,300 and a balloon
payment of $38,199,600 (each such balloon payment in relation to a Tranche, a “Balloon Instalment”)).

 

	4.1.2	If the Total Commitment in respect of any Tranche is not drawn down in full, the amount of each
repayment instalment in respect of the relevant Tranche (including the relevant Balloon Instalment) shall be reduced proportionately.

 

	4.2	Voluntary prepayment

 

	4.2.1	The Borrowers may prepay any Tranche in whole or part (such part being in an amount of Five hundred
thousand Dollars ($500,000) or any larger sum which is an integral multiple of Five hundred thousand Dollars ($500,000)) on any
day, without premium or penalty, but subject always to their obligations under clause 4.4 (including, without limitation, their
obligations under clause 11.1 if any such prepayment is made on a day which is not an Interest Payment Date relating to the part
of the Loan to be prepaid).

 

	4.2.2	The Borrowers may also prepay (in whole but not in part only), without premium or penalty, but
without prejudice to their obligations under clauses 3.6, 6.6 and 12.2, and subject to their obligations under clause 4.4:

 

		(a)	the Contribution of any Bank to which the Borrower shall have become obliged to pay additional
amounts under clauses 6.6 or 12.2; or

 

		(b)	the Contribution of any Bank who has certified an Alternative Basis under clause 3.6.

 

Upon any notice of such prepayment
being given under this clause 4.2.2, the Commitment of the relevant Bank shall be reduced to zero.

 

	4.3	Cancellation of a Tranche

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The Borrowers may cancel the
whole or any part of an undrawn Tranche, without premium or penalty subject to giving to the Agent not less than five (5) Banking
Days’ (or such shorter period as the Agent may require) prior notice in writing.

 

	4.4	Prepayment on Total Loss, transfers or sales

 

	4.4.1	Before first drawdown

 

Immediately prior to the completion
of the novation, transfer or assignment of a Contract by the relevant Borrower to another person (with the prior written consent
of the Creditors as and when required by the Security Documents), in each case before any Advance for such Ship is drawn down,
then (a) the obligation of the Banks to advance any Advance for such Ship (or part thereof) shall immediately cease and (b) the
Total Commitment shall be reduced by the amount of the Tranche relevant to such Ship.

 

	4.4.2	Following first drawdown but prior to Delivery

 

Immediately
prior to the completion of the novation, transfer or assignment of a Contract by the relevant Borrower to another person (with
the prior written consent of the Creditors as and when required by the Security Documents), (a) if any Advance relating to such
Ship has been drawn down, the Borrowers shall prepay each such Advance in full and (b) (if applicable) the obligation of the Banks
to advance any other Advance for that Ship shall immediately cease and the Total Commitment shall be reduced accordingly.

 

	4.4.3	Thereafter - Mortgaged Ships

 

On the date falling one hundred
and eighty (180) days after that on which a Mortgaged Ship became a Total Loss or, if earlier, on the date upon which the insurance
proceeds in respect of such Total Loss are, or Requisition Compensation is, received by the relevant Borrower (or the Agent or
any other Creditor pursuant to the Security Documents), the Borrowers shall prepay in full the Tranche relating to such Mortgaged
Ship.

 

	4.4.4	Total Loss

 

For the purpose of this Agreement
and the other Security Documents, a Total Loss in respect of a Ship shall be deemed to have occurred:

 

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

 

		(b)	in the case of a constructive total loss of a Ship, upon the date and at the time notice of abandonment
of such Ship is given to the insurers of such Ship for the time being;

 

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

 

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

 

		(e)	in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation
of a Ship (other than where the same amounts to Compulsory Acquisition of such Ship) by any Government Entity, or by persons purporting
to act on behalf of any Government Entity, which deprives the relevant Borrower of the use of such Ship for more than ninety (90)
days, upon the expiry of the period of ninety (90) days after the date upon which the relevant hijacking, theft, condemnation,
capture, seizure, arrest, detention or confiscation occurred.

 

	4.5	Amounts payable on prepayment

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

 

	4.5.1	accrued interest on the amount to be prepaid to the date of such prepayment;

 

	4.5.2	any additional amount payable under clauses 6.6 or 12.2; and

 

	4.5.3	all other sums payable by the Borrowers to the Creditors under this Agreement or any of the other
Security Documents including, without limitation, any accrued commitment commission payable under clause 5.1 and any amounts payable
under clause 4.7 or clause 11.

 

	4.6	Notice of prepayment; reduction of repayment instalments

 

	4.6.1	No prepayment may be effected under clause 4.2 unless the Borrowers shall have given the Agent
at least five (5) days’ prior written notice of their intention to make such prepayment. Every notice of prepayment shall
be effective only on actual receipt by the Agent, shall be irrevocable (unless otherwise agreed by the Banks), shall specify the
Tranche and the amount thereof to be prepaid and shall oblige the Borrowers to make such prepayment on the date specified.

 

	4.6.2	Any amount prepaid pursuant to clause 4.2 or clause 8.2.1(a) in respect of all the Tranches, shall
be applied in prepayment of all Tranches proportionately as between them and in reduction of the repayment instalments of each
Tranche under clause 4.1.1 (including each Balloon Instalment) proportionately.

 

	4.6.3	Any amounts prepaid pursuant to clause 4.2 or clause 8.2.1(a) in respect of a single Tranche shall
be applied in reducing the repayment instalments of that Tranche under clause 4.1.1 (including the relevant Balloon Instalment)
proportionately.

 

	4.6.4	The Borrowers may not prepay the Loan or any part thereof save as expressly provided in this Agreement.

 

	4.6.5	No amount prepaid under this Agreement may be reborrowed.

 

	4.7	Unwinding of Designated Transactions

 

On or prior to any repayment
or prepayment of all or part of the Loan (including, without limitation, pursuant to clauses 2.10, 4.1, 4.2, 4.4, 8.2.1(a), 10.2,
12, 13 or any other provision of this Agreement), the Borrowers shall, upon the request of the Agent and the Swap Provider, wholly
or partially reverse, offset, unwind, cancel, close out, net out or otherwise terminate one or more of the continuing Designated
Transactions so that the notional principal amount of the continuing Designated Transactions thereafter remaining under the Master
Swap Agreement does not, and will not in the future (taking into account the scheduled amortisation), exceed the amount of the
Loan as reducing from time to time thereafter pursuant to clause 4.1.

 

	5	Fees,
                                                                       commitment commission and expenses

 

	5.1	Fees

 

The Borrowers shall pay to the
Agent:

 

	5.1.1	for the account of the Banks pro rata in accordance with their Commitments, on the date of this
Agreement, an up-front participation fee of such amount as specified in the relevant Fee Letter (for further sharing and distribution
between the Banks as separately agreed between them);

 

	5.1.2	for the account of the Agent on the date of this Agreement and at twelve (12) monthly intervals
thereafter until all moneys owing under the Security Documents have been repaid in full, an annual agency fee of such amount as
is specified in the relevant Fee Letter; and

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	5.1.3	for the account of each Bank, on each of the dates falling at three (3) monthly intervals after
the date of this Agreement until the last day of the last Drawdown Period, and on the last day of the last Drawdown Period, commitment
commission computed from the date of this Agreement (in the case of the first payment of commission) and from the due date of the
preceding payment of commission (in the case of each subsequent payment) at the rate of zero point two five per cent (0.25%) per
annum on the daily undrawn and available amount of such Bank’s Commitment.

 

The fees and
commissions referred to in clause 5.1 shall be payable by the Borrowers to the Agent, whether or not any part of the Total Commitment
is ever advanced. All such fees and commissions referred to in clause 5.1 shall be non-refundable.

 

	5.2	Expenses

 

The Borrowers shall pay to the
Agent on a full indemnity basis on demand all expenses (including legal, printing and out-of-pocket expenses):

 

	5.2.1	incurred by the Agent in connection with the negotiation, preparation, execution and, where relevant,
registration of:

 

		(a)	the Security Documents; and

 

		(b)	any amendment (except where such amendment is unilaterally requested by the Agent while no Event
of Default has occurred) or extension of, or the granting of any waiver or consent under, any of the Security Documents;

 

provided that
any such expenses incurred prior to an Event of Default or for as long as no Event of Default is continuing shall be reasonable
and documented; and

 

	5.2.2	incurred by the Agent or any of the Creditors in contemplation of, or otherwise in connection with,
the enforcement of, or preservation of any rights under, any of the Security Documents, or otherwise in respect of the moneys owing
under any of the Security Documents,

 

together with interest at the
rate referred to in clause 3.4 from the date on which such expenses were incurred to the date of payment (as well after as
before judgment).

 

	5.3	Value added tax

 

All fees and expenses payable
pursuant to this clause 5 shall be paid together with value added tax or any similar tax (if any) properly chargeable thereon.
Any value added tax chargeable in respect of any services supplied by the Creditors or any of them under this Agreement shall,
on delivery of the value added tax invoice, be paid in addition to any sum agreed to be paid hereunder.

 

	5.4	Stamp and other duties

 

The Borrowers shall pay all
stamp, documentary, registration or other like duties or taxes (including any duties or taxes payable by, or assessed against,
any of the Creditors) imposed on or in connection with any of the Underlying Documents, the Security Documents, the Loan, (but
not duties or taxes as a result of a transfer under clause 15.3) and shall indemnify the Creditors or any of them against any liability
arising by reason of any delay or omission by the Borrowers to pay such duties or taxes.

 

	6	Payments
                                                                       and taxes; accounts and calculations

 

	6.1	No set-off or counterclaim

 

The Borrowers acknowledge that
in performing their respective obligations under this Agreement, the Banks will be incurring liabilities to third parties in relation
to the funding of amounts to the Borrowers, such liabilities matching the liabilities of the Borrowers to the Banks

    	30

    	

    

and that it is reasonable for
the Banks to be entitled to receive payments from the Borrowers gross on the due date in order that each of the Banks is put in
a position to perform its matching obligations to the relevant third parties. Accordingly, all payments to be made by the Borrowers
under any of the Security Documents shall be made in full, without any set-off or counterclaim whatsoever and, subject as provided
in clause 6.6, free and clear of any deductions or withholdings, in Dollars on the due date to such account at such bank and
in such place as the Agent may from time to time specify for this purpose. Save for payments which are for the account of the Swap
Provider and save as otherwise provided in this Agreement or any relevant Security Documents, such payments shall be for the account
of all Banks, and the Agent shall distribute such payments in like funds as are received by the Agent to the Banks rateably, in
accordance with their respective Commitment or (if after the first drawdown) Contribution as the case may be.

 

	6.2	Payment by the Banks

 

All sums to
be advanced by the Banks to the Borrowers under this Agreement shall be remitted in Dollars on the Drawdown Date for the relevant
Advance and, in the case of amounts drawn down pursuant to clause 2.6 to the account of the Agent at such bank as the Agent may
have notified to the Banks and shall be paid by the Agent on such date in like funds as are received by the Agent to the account
specified in the Drawdown Notice for such Advance.

 

	6.3	Non-Banking Days

 

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

 

	6.4	Calculations

 

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

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	6.5	Certificates conclusive

 

Any certificate or determination
of the Agent or the Arranger or the Security Agent, or any Bank, or the Swap Provider as to any rate of interest or any other amount
pursuant to and for the purposes of any of the Security Documents shall, in the absence of manifest error, be conclusive and binding
on the Borrowers and, in the case of a certificate or determination by the Agent or the Security Agent, also on the other Creditors.

 

	6.6	Grossing-up for Taxes

 

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

 

	6.6.2	If at any time any Bank is required to make any deduction or withholding in respect of Taxes from
any payment due under this Agreement for the account of the Agent, the sum due from such Bank in respect of such payment shall
be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the Agent receives on the
due date for such payment (and retains free from any liability in respect of such deduction or withholding) a net sum equal to
the sum which it would have received had no such deduction or withholding been required to be made and each Bank shall indemnify
the Agent against any losses or costs incurred by any of them by reason of any failure of such Bank to make any such deduction
or withholding or by reason of any increased payment not being made on the due date for such payment.

 

	6.6.3	For the avoidance of doubt, clause 6.6.1 does not apply in respect of sums due from the Borrowers
to the Swap Provider under or in connection with the Master Swap Agreement as to which sums the provisions of section 2(d) (Deduction
or Withholding for Tax) of the Master Swap Agreement shall apply.

 

	6.7	Loan account

 

Each Bank shall maintain, in
accordance with its usual practice, an account evidencing the amounts from time to time lent by, owing to and paid to it under
the Security Documents. The Agent and/or the Security Agent shall maintain a control account (being, in the case of any Mortgage
which is in statutory form, the “Account Current” referred to in such Mortgage) showing the Loan and other sums owing
by the Borrowers under the Security Documents and all payments in respect thereof being made from time to time. The control account
shall, in the absence of manifest error, be conclusive as to the amount from time to time owing by the Borrowers under the Security
Documents.

 

	6.8	Agent may assume receipt

 

Where any sum is to be paid
under the Security Documents to the Agent or, as the case may be, the Security Agent for the account of another person, the Agent
or, as the case may be, the Security Agent may assume that the payment will be made when due and the Agent or, as the case may
be, the Security Agent may (but shall not be obliged to) make such sum available to the person so entitled. If it proves to be
the case that such payment was not made to the Agent or, as the case may be, the Security Agent, then the person to whom such

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sum was so made available shall
on request refund such sum to the Agent or, as the case may be, the Security Agent together with interest thereon sufficient to
compensate the Agent or, as the case may be, the Security Agent for the cost of making available such sum up to the date of such
repayment and the person by whom such sum was payable shall indemnify the Agent or, as the case may be, the Security Agent for
any and all loss or expense which the Agent or, as the case may be, the Security Agent may sustain or incur as a consequence of
such sum not having been paid on its due date.

 

	6.9	Partial payments

 

If, on any date on which a payment
is due to be made by the Borrowers under any of the Security Documents, the amount received by the Agent from the Borrowers falls
short of the total amount of the payment due to be made by the Borrowers on such date then, without prejudice to any rights or
remedies available to the Agent, the Arranger, the Security Agent and the Banks under any of the Security Documents, the Agent
shall apply the amount actually received from the Borrowers pro rata against each Sub-Tranche and the Swap Exposure in or towards
discharge of the obligations of the Borrowers under the Security Documents OR if a notice of an Event of Default has been served
to the Borrowers by the Agent and whilst such Event of Default is continuing all such partial payments received by the Agent and/or
the Security Agent under or pursuant to any of the Security Documents shall be applied in the following manner:

 

	6.9.1	first, in or towards payment of all unpaid costs and expenses which may be owing to
the Agent and/or the Security Agent and/or the Arranger and/or any of them under any of the Security Documents;

 

	6.9.2	secondly, in or towards payment of any unpaid fees and commissions payable to the
Agent and/or the Security Agent and/or the Arranger and/or any of them under any of the Security Documents;

 

	6.9.3	thirdly, in or towards payment of any arrears of interest owing in respect of each
Sub-Tranche A;

 

	6.9.4	fourthly, in or towards repayment of each Sub-Tranche A (whether same has become due
and payable or not);

 

	6.9.5	fifthly, in or towards payment of any arrears of interest owing in respect of each Sub-Tranche
B;

 

	6.9.6	sixthly, in or towards repayment of each Sub-Tranche B (whether same has become due and payable
or not);

 

	6.9.7	seventhly, in or towards payment of all unpaid costs and expenses which may be owing to the Swap
Provider under the Master Swap Agreement;

 

	6.9.8	eighthly, in or towards payment of any unpaid fees and commissions payable to the Swap Provider
under the Master Swap Agreement;

 

	6.9.9	ninethly, in or towards payment to the Swap Provider of any sums owing to it under
the Master Swap Agreement relating to each Sub-Tranche A;

 

	6.9.10	tenthly, in or towards payment to the Swap Provider of any sums owing to it under
the Master Swap Agreement relating to each Sub-Tranche B; and

 

	6.9.11	eleventhly, the surplus (if any) shall be paid to the Borrowers or to whomsoever else may be entitled
to receive such surplus.

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	7	Representations
                                                                       and warranties

 

	7.1	Continuing representations and warranties

 

The Borrowers jointly and severally
represent and warrant to each Creditor that:

 

	7.1.1	Due incorporation

 

each of the Borrowers and each
of the other Security Parties are duly incorporated and validly existing in good standing, in the case of the Borrowers, under
the laws of the Republic of Liberia and, in the case of each of the other Security Parties, under the laws of their respective
countries of incorporation as limited liability companies or (as the case may be) corporations and have power to carry on their
respective businesses as they are now being conducted and to own their respective property and other assets;

 

	7.1.2	Corporate power

 

each of the Borrowers has power
to execute, deliver and perform its obligations under the Underlying Documents and the relevant Borrowers’ Security Documents to
which it is or is to be a party and to borrow the Total Commitment and each of the other Security Parties has power to execute
and deliver and perform its obligations under the Security Documents and the Underlying Documents to which it is or is to be a
party; all necessary corporate, shareholder and other action has been taken to authorise the execution, delivery and performance
of the same and no limitation on the powers of any Borrower to borrow will be exceeded as a result of borrowing the Loan;

 

	7.1.3	Binding obligations

 

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

 

	7.1.4	No conflict with other obligations

 

the execution and delivery of,
the performance of their obligations under, and compliance with the provisions of, the Underlying Documents and the Security Documents
by the relevant Security Parties will not:

 

		(a)	contravene any existing applicable law, statute, rule or regulation or any judgment, decree or
permit to which any of the Borrowers or any other Security Party is subject;

 

		(b)	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 Borrowers or any other Security Party is a party or is subject or by which it
or any of its property is bound;

 

		(c)	contravene or conflict with any provision of the constitutional documents of any of the Borrowers
or any other Security Party; or

 

		(d)	result in the creation or imposition of or oblige any of the Borrowers or any other Security Party
to create any Encumbrance (other than a Permitted Encumbrance) on any of the undertakings, assets, rights or revenues of any of
the Borrowers or any other Security Party;

 

	7.1.5	No filings required

 

save for the registration of
the Mortgage under the laws of the relevant Flag State through the relevant Registry and any corporate filings with the Hong Kong
companies registry (if applicable), it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence
of any of the Underlying Documents or any of the Security Documents that they or any other instrument be notarised, filed, recorded,
registered or enrolled in any

    	34

    	

    

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 any of the Underlying Documents or the Security Documents and each of the Underlying Documents and the Security
Documents is in proper form for its enforcement in the courts of each Relevant Jurisdiction;

 

	7.1.6	Choice of law

 

the choice of English law to
govern the Underlying Documents and the Security Documents (other than the Mortgages) and the choice of the law of the relevant
Flag State to govern each of the Mortgages, and the submissions therein by the Security Parties to the non-exclusive jurisdiction
of the English courts are valid and binding;

 

	7.1.7	No immunity

 

neither the Borrowers nor any
other Security Party nor any of their respective assets is entitled to immunity on the grounds of sovereignty or otherwise from
any legal action or proceeding (which shall include, without limitation, suit, attachment prior to judgement, execution or other
enforcement);

 

	7.1.8	Consents obtained

 

every consent, authorisation,
licence or approval of, or registration with or declaration to, governmental or public bodies or authorities or courts required
by any Security Party to authorise, or required by any Security Party in connection with, the execution, delivery, validity, enforceability
or admissibility in evidence of each of the Underlying Documents and each of the Security Documents to which it is or is to be
a party or the performance by each Security Party of its obligations under the Security Documents or the Underlying Documents to
which it is or is to be a party has been obtained or made and is in full force and effect and there has been no default in the
observance of any of the conditions or restrictions (if any) imposed in, or in connection with, any of the same;

 

	7.1.9	Financial statements correct and complete

 

the audited consolidated financial
statements of the Corporate Guarantor in respect of the financial year ended on 31 December 2010 as delivered to the Agent, have
been prepared in accordance with the Applicable Accounting Principles which have been consistently applied and present fairly and
accurately the consolidated financial position of the Corporate Guarantor as at the date they were prepared and the consolidated
results of the operations of the Corporate Guarantor for the financial period ended on such date and, as at such date, no member
of the Corporate Guarantor had any significant liabilities (contingent or otherwise) or any material unrealised or anticipated
losses which are not disclosed by, or reserved against or provided for in, such financial statements; and

 

	7.1.10	Borrowers’ own account

 

in relation
to the borrowing by each Borrower of the Loan or any part thereof, the performance and discharge of its obligations and liabilities
under the Security Documents and the transactions and other arrangements effected or contemplated by this Agreement, each Borrower
is acting for its own account and that the foregoing will not involve or lead to a contravention of any law, official requirement
or other regulatory measure or procedure which has been implemented to combat “money laundering” (as defined
in Article 1 of the Directive (91/308/EEC) of the Council of the European Communities (as amended)).

 

	7.2	Initial representations and warranties

 

The Borrowers jointly and severally
further represent and warrant to each Creditor that:

 

	7.2.1	Pari passu and subordinated indebtedness

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

 

		(b)	any Indebtedness of the Borrowers or the Corporate Guarantor owing to any of its respective shareholders
or other members of the Group is subordinated in all respects to the Borrowers’ obligations under this Agreement and the
Master Swap Agreement (in the case of the Borrowers) and to the Corporate Guarantor’s obligations under the Corporate Guarantee
(in the case of the Corporate Guarantor);

 

	7.2.2	No default under other Borrowed Money

 

none of the Borrowers nor any
other Security Party is in default under any agreement relating to Borrowed Money to which it is a party or by which it may be
bound;

 

	7.2.3	Information - full disclosure

 

the information, exhibits and
reports furnished by or on behalf of any Security Party to the Agent in connection with the negotiation and preparation of the
Security Documents are true and accurate in all material respects and not misleading; do not omit material facts and all reasonable
enquiries have been made to verify the facts and statements contained therein; there are no other facts the omission of which would
make any fact or statement therein misleading;

 

	7.2.4	No withholding Taxes

 

no Taxes are imposed by withholding
or otherwise on any payment to be made by any of the Borrowers or any other Security Party under the Security Documents to which
such Borrower or any other Security Party is or is to be a party or are imposed on or by virtue of the execution or delivery by
the Borrowers or any other Security Parties of the Security Documents;

 

	7.2.5	No Event of Default

 

no Event of Default has occurred
and is continuing;

 

	7.2.6	No default under Contracts or Refund Guarantees

 

no Borrower is in default of
any of its obligations under the relevant Contract or any of its obligations upon the performance or observance of which depends
the continued liability of the Refund Guarantor in accordance with the terms of any Refund Guarantee;

 

	7.2.7	No Encumbrance in respect of pre-delivery security

 

no Borrower has previously charged,
encumbered or assigned the benefit of any of its rights, title and interest in or to the relevant Contract or any Refund Guarantee
and such benefit and all such rights, title and interest are freely assignable and chargeable in the manner contemplated by the
Security Documents;

 

	7.2.8	The Ships

 

each Ship will, on the Delivery
Date relevant to such Ship, be:

 

		(a)	in the absolute ownership of the relevant Borrower who will, on and after its Delivery Date, be
the sole, legal and beneficial owner of such Ship;

 

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

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

 

		(d)	classed with the relevant Classification free of all requirements and recommendations of the relevant
Classification Society;

 

	7.2.9	Ships’ employment

 

save under the Charters, none
of the Ships is nor will, on or before the Drawdown Date of the Delivery Advance relevant to such Ship, be subject to any charter
or contract or to any agreement to enter into any charter or contract which, if entered into after the date of the relevant Ship
Security Documents would have required the consent of the Agent or, as the context may require, the Security Agent and, on or before
the Drawdown Date of the Delivery Advance relevant to such Ship, there will not be any agreement or arrangement whereby the Earnings
may be shared with any other person;

 

	7.2.10	Freedom from Encumbrances

 

no Ship, nor its Earnings, Insurances
or Requisition Compensation nor the Operating Accounts nor the Charters nor any other properties or rights which are, or are to
be, the subject of any of the Security Documents nor any part thereof will be, on the Drawdown Date of the Delivery Advance relevant
to such Ship, subject to any Encumbrance (except Permitted Encumbrances);

 

	7.2.11	Compliance with Environmental Laws and Approvals

 

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

 

		(a)	the Borrowers and, to the best of the Borrowers’ knowledge and belief (having made due enquiry),
their respective Environmental Affiliates have complied with the provisions of all Environmental Laws;

 

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

 

		(c)	neither the Borrowers nor, to the best of the Borrowers’ knowledge and belief (having made due
enquiry), any of their respective Environmental Affiliates have received notice of any Environmental Claim that any of the Borrowers
or any such Environmental Affiliate is not in compliance with any Environmental Law or any Environmental Approval;

 

	7.2.12	No Environmental Claims

 

except as may already have been
disclosed by the Borrowers in writing to, and acknowledged in writing by, the Agent, there is no Environmental Claim pending against
the Borrowers or any of the Ships or, to the best of the Borrowers’ knowledge and belief (having made due enquiry), any of their
respective Environmental Affiliates;

 

	7.2.13	No potential Environmental Claims

 

except as may already have been
disclosed by the Borrowers in writing to, and acknowledged in writing by, the Agent, there has been no emission, spill, release
or discharge of a Pollutant from any of the Ships;

 

	7.2.14	Underlying Documents

 

the original executed Refund
Guarantees delivered or to be delivered to the Agent pursuant to clause 9.1 are, or will when delivered be, true and complete originals
of such documents and the copies of the other Underlying Documents delivered or to be delivered

    	37

    	

    

to the Agent pursuant to clause 9.1
or any of the other provisions of the Security Documents are, or will when delivered be, true and complete copies of such documents;
and all such documents constitute valid and binding obligations of the Security Parties and, to the Borrowers’ knowledge
and belief, of the other parties thereto, enforceable in accordance with their respective terms and there have been no amendments
or variations thereof or defaults thereunder;

 

	7.2.15	Shareholding

 

		(a)	each of the Borrowers is a wholly-owned direct Subsidiary of the Corporate Guarantor;

 

		(b)	no less than 40% of the total issued share capital and of the total issued voting share capital
of the Corporate Guarantor is ultimately beneficially owned (either directly or indirectly) by members of the Konstantakopoulos
Family;

 

		(c)	the Corporate Guarantor is controlled by members of the Konstantakopoulos Family; and

 

		(d)	each of the Managers is controlled by members of the Konstantakopoulos Family;

 

	7.2.16	No litigation

 

no litigation, arbitration,
investigation or proceeding (administrative or otherwise) is taking place against any of the Borrowers or any other Security Party
which could have a material adverse effect on the financial position, state of affairs or prospects of any of the Borrowers or
the Corporate Guarantor or any other Security Party in light of which there is a significant risk that the Corporate Guarantor
or any Borrower or any other Security Party is, or will later become, unable to discharge its liabilities under the Security Documents
as they fall due;

 

	7.2.17	No material adverse change

 

no event
has occurred or any other circumstances arisen or developed including, without limitation, a material adverse change in the financial
position, state of affairs or prospects of any Security Party, in light of which there is a significant risk that the Corporate
Guarantor or any Borrower or any other Security Party is, or will later become, unable to discharge its liabilities under the Security
Documents as they fall due;

 

	7.2.18	Solvency

 

		(a)	none of the Borrowers nor the Corporate Guarantor is unable, or admits or has admitted its inability,
to pay its debts or has suspended making payments on any of its debts;

 

		(b)	none of the Borrowers nor the Corporate Guarantor by reason of actual financial difficulties has
commenced negotiations with one or more of its creditors with a view to rescheduling any of its Indebtedness; and

 

		(c)	no moratorium has been declared in respect of any Indebtedness of any Borrower or the Corporate
Guarantor;

 

	7.2.19	ISPS Code

 

with effect on the Delivery Date
of a Ship, the relevant Borrower shall have a valid and current ISSC in respect of that Ship and that Ship shall be in compliance
with the ISPS Code; and

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	7.2.20	Application for DOC and SMC

 

the Operator maintains a DOC
for itself and, on the Delivery Date for a Ship, it will have applied for an SMC in respect of such Ship.

 

	7.3	Repetition of representations and warranties

 

On and as of each Drawdown Date
and (except in relation to the representations and warranties in clause 7.2) on each Interest Payment Date, the Borrowers
shall:

 

		(a)	be deemed to repeat the representations and warranties in clauses 7.1 and 7.2 as if made with
reference to the facts and circumstances existing on such day; and

 

		(b)	be deemed to further represent and warrant to each of the Creditors that the then latest management
accounts of the Borrowers delivered to the Agent by the Borrowers under this Agreement (if any) present fairly and accurately the
financial position of the Borrowers as at the end of the financial period to which the same relate and the results of the operations
of the Borrowers for the financial period to which the same relate and, as at the end of such financial period, none of the Borrowers
had any significant liabilities (contingent or otherwise) or any material unrealised or anticipated losses which are not disclosed
by, or reserved against or provided for in, such management accounts.

 

	8	Undertakings

 

	8.1	General

 

The Borrowers jointly and severally
undertake with each Creditor that, from the date of this Agreement and so long as any moneys are owing under any of the Security
Documents and while all or any part of the Total Commitment remains outstanding they will:

 

	8.1.1	Notice of Event of Default

 

		(a)	promptly inform the Agent of any occurrence of which any of them becomes aware which materially
and adversely affects the ability of any Security Party to perform its obligations under any of the Security Documents or any of
the Contracts to which it is or is to be a party and, without limiting the generality of the foregoing, they will inform the Agent
of any Event of Default forthwith upon becoming aware thereof; and

 

		(b)	promptly inform the Agent of any occurrence of which any of them becomes aware which materially
and adversely affects the ability or rights of any Borrower to make any claims under the relevant Contract or any Refund Guarantee
or which might reduce or release any of the obligations of the Builder under such Contract or the Refund Guarantor under any Refund
Guarantee;

 

	8.1.2	Consents and licences

 

without prejudice to clauses 7.1
and 9, obtain or cause to be obtained, maintain in full force and effect and comply in all material respects with the conditions
and restrictions (if any) imposed in, or in connection with, every consent, authorisation, licence or approval of governmental
or public bodies or authorities or courts and do, or cause to be done, all other acts and things which may from time to time be
necessary under applicable law for the continued due performance of all the material obligations of the Security Parties under
each of the Security Documents and the Underlying Documents;

 

	8.1.3	Use of proceeds

 

use the Loan or, as the case
may be, the Advances for their own benefit and under their full responsibility and exclusively for the purposes specified in clauses 1.1
and 2.5;

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	8.1.4	Pari passu and subordination

 

		(a)	ensure that their obligations under this Agreement and the Master Swap Agreement shall, without
prejudice to the provisions of clause 8.3 and the security intended to be created by the Security Documents, at all times rank
at least pari passu with all their other present and future unsecured and unsubordinated Indebtedness with the exception of any
obligations which are mandatorily preferred by law and not by contract; and

 

		(b)	ensure that the obligations (if any) of the Borrowers to repay any loan advanced to them by their
shareholders or any other member of the Group are at all times fully subordinated towards their obligations to the Creditors under
this Agreement and the other Security Documents and that any such loans or advances are and remain at all times on terms and conditions
acceptable to the Agent in all respects;

 

	8.1.5	Financial statements

 

upon the Agent’s
request following the end of a financial year, prepare or cause to be prepared unaudited management accounts of each of the Borrowers
in respect of each financial year (including prior financial years) and deliver as many copies of the same as the Agent may reasonably
require as soon as practicable but not later than the later of (a) [thirty (30)] days from the Agent’s request and (b) one
hundred and eighty (180) days from the end of the financial period to which they relate;

 

	8.1.6	Delivery of reports

 

deliver to the Agent sufficient
copies for all the Banks of every report, circular, notice or like document issued by the Borrowers or the Corporate Guarantor
to their shareholders or creditors generally, at the same time when it is issued or given, unless the Borrowers have already advised
the Agent in writing that such information appears on the official website of any one of the Corporate Guarantor, the New York
Stock Exchange or the Securities and Exchange Commission of the U.S.A.;

 

	8.1.7	Provision of further information

 

provide the Agent with such
financial and other information concerning the Borrowers, the other Security Parties and their respective affairs as the Agent
may from time to time reasonably require, including, without limitation, regarding their financial standing, commitments, operations,
vessel sales or purchases, any new borrowings, any material litigation, arbitration and administrative proceedings and all major
financial developments in relation to each Security Party;

 

	8.1.8	Know your customer information

 

deliver to the Agent such documents
and evidence as the Agent shall from time to time require relating to the verification of identity and knowledge of the Agent’s
or any Bank’s or the Swap Provider’s customers and the compliance by the Agent or any Bank or the Swap Provider (as the case may
be) with all necessary “know your customer” or similar checks, always on the basis of applicable laws and regulations
of the Agent’s or any Bank’s or the Swap Provider’s own internal guidelines, in each case as such laws, regulations or internal
guidelines apply from time to time;

 

	8.1.9	Obligations under Security Documents

 

and will procure that each of
the other Security Parties will, duly and punctually perform each of the obligations expressed to be assumed by it under the Security
Documents and the Underlying Documents to which it is a party;

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	8.1.10	Compliance with Code

 

and will procure that any Operator
will, comply with and ensure that the Ships and any Operator at all times complies with the requirements of the Code, including
(but not limited to) the maintenance and renewal of valid certificates pursuant thereto throughout the Security Period;

 

	8.1.11	Withdrawal of DOC and SMC

 

and will procure that any Operator
will, immediately inform the Agent if there is any withdrawal of such Operator’s DOC or the SMC in respect of any of the
Ships;

 

	8.1.12	Issuance of DOC and SMC

 

and will procure that any Operator
will, promptly inform the Agent upon the issue to any of the Borrowers or any Operator of a DOC and to any of the Ships of an SMC
or the receipt by any of the Borrowers or any Operator of notification that its application for the same has been refused;

 

	8.1.13	ISPS Code Compliance

 

and will procure that the relevant
Manager(s) or any Operator will, with effect from the Delivery Date for a Ship and at all times thereafter:

 

		(a)	maintain at all times a valid and current ISSC in respect of that Ship; and

 

		(b)	immediately notify the Agent in writing of any suspension, cancellation or modification of the
ISSC in respect of a Ship;

 

	8.1.14	Conditions subsequent - First Advances; Delivery Advances

 

deliver to the Agent:

 

		(a)	not later than 15 days after the Drawdown Date of the first Advance in respect of a Ship:

 

	 	(i)	the Refund Guarantee Assignment Consent and Acknowledgement in respect of the Refund
Guarantee for all pre-delivery instalments of the Contract Price for that Ship, duly executed by the parties thereto;

 

		(ii)	if available to the Borrowers, evidence in form and substance satisfactory to the Agent of the
authority of the relevant Refund Guarantor executing the above said acknowledgement (except if the same has been sent to the Agent
by swift);

 

		(b)	not later than 60 days after the Drawdown Date of the first Advance in respect of a Ship:

 

	 	(i)	a legal opinion (at the expense of the Borrowers) issued by the Agent’s special
legal advisers on matters of Korean law in form and substance satisfactory to the Agent (it being understood that, as is customary
in banking practice, the procurement of the legal opinion will be the responsibility of the Agent and its legal counsel); and

 

		(c)	not later than 24 hours after the Delivery of a Ship, evidence in form and substance satisfactory
to the Agent that the Charterer has accepted delivery of that Ship under the relevant Charter (it being agreed that evidence that
the first payment of hire under such Charter or written schedule or directions by the Charterer for the employment of that Ship
under such Charter shall constitute such evidence satisfactory to the Agent for the purposes of this paragraph (c)); and

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	8.1.15	Supervision

 

ensure that each Borrower, or
the relevant Manager(s) or any other person appointed by the relevant Manager(s) (but no other person), will supervise and superintend
the construction of its Ship;

 

	8.1.16	Charters etc.

 

advise the Agent promptly of
any charterparty or other contract of employment of a Ship with a tenor exceeding twelve (12) months (other than the Charters),
forthwith after its execution and:

 

		(a)	forthwith after its execution deliver a certified copy of each such charterparty or other contract
of employment to the Agent;

 

		(b)	forthwith following demand by the Agent execute:

 

	 	(i)	a charter assignment of any such charterparty or other contract of employment in favour
of the Security Agent in a form similar to that of the Charter Assignments; and

 

		(ii)	any notice of assignment required in connection therewith in a form acceptable to the Agent in
its reasonable discretion;

 

		(c)	promptly procure the service of any such notice of assignment on the relevant charterer and the
acknowledgement of such notice by the relevant charterer in a form reasonably acceptable to the Agent and the relevant charterer;

 

		(d)	forthwith on the Agent’s request, deliver to the Agent such documents of the type specified
in schedule 3 in relation to any such charterparty, contract, assignment, notice or acknowledgement as the Agent may reasonably
require and which are available to the Borrowers; and

 

		(e)	pay all legal and other costs incurred by the Agent or any other Creditor in connection with any
such charter assignments or any other matters referred to in this clause 8.1.16 forthwith following the Agent’s demand (provided
that any such expenses incurred prior to an Event of Default shall be reasonable and documented);

 

	8.1.17	Taxes

 

and will procure that the Corporate
Guarantor will, pay any and all Taxes owing by it in any jurisdiction at the time they are due; and

 

	8.1.18	Change of Manager

 

Other than
when appointing Costamare Shipping, Ciel Management and/or Shanghai Costamare, which appointment will be subject to the consent
of the Majority Banks, ensure that, on or before the appointment of any person as a manager of a Ship (and subject always to the
consent of the Creditors if and when the same is required under the Security Documents), they will:

 

		(a)	deliver to the Agent a certified copy of the Management Agreement duly executed by that Manager
and the Borrower owning such Ship;

 

		(b)	procure that such Manager will have created and delivered to the Agent a Manager’s Undertaking
in respect of that Ship before such Manager’s appointment has become effective under that Management Agreement; and

 

		(c)	deliver to the Agent any documents and evidence of the type referred to in schedule 3 in relation
to that Manager’s Undertaking and that Manager as the Agent may in its reasonable discretion require,

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each at the cost and expense
of the Borrowers.

 

	8.2	Security value maintenance

 

	8.2.1	Security shortfall

 

If, at
any time after the Drawdown Date of the Delivery Advance in respect of a Ship the Security Value for that Ship shall be less than
the Security Requirement for such Ship, the Agent (acting on the instructions of the Majority Banks) shall give notice to the Borrowers
requiring that such deficiency be remedied and then the Borrowers shall, within a period of thirty (30) days of the date of receipt
by the Borrowers of the Agent’s said notice, either:

 

		(a)	prepay such part of the Tranche relevant to such Ship as will result in the Security Requirement
for such Ship after such prepayment (taking into account any other repayment of that Tranche made between the date of the notice
and the date of such prepayment) being equal to the Security Value for such Ship; or

 

		(b)	constitute in favour of the Agent a first priority cash pledge over a Dollar account in the name
of a member of the Group for an amount standing to the credit of such account which when added to the Security Value for such Ship,
shall not be less than the Security Requirement for such Ship as at such date; or

 

		(c)	constitute to the satisfaction of the Agent such further security for the Loan and any amounts
owing under the Master Swap Agreement as shall be acceptable to the Banks having a value for security purposes (as determined by
the Agent in accordance with clause 8.2.5) at the date upon which such further security shall be constituted which, when added
to the Security Value for such Ship, shall not be less than the Security Requirement for such Ship as at such date.

 

The provisions of clause 4.5
and any relevant provisions of clause 4.6 shall apply to prepayments under clause 8.2.1(a).

 

	8.2.2	Valuation of Mortgaged Ships

 

Each Mortgaged Ship shall, for
the purposes of this Agreement, be valued in Dollars as and when the Agent (acting on the instructions of the Majority Banks) shall
require (and at least twice per calendar year), save that in case of termination, cancellation, rescission or repudiation
of the Charter or Qualifying Charter as the case may be for that Ship, no valuation of that Ship or Security Value testing
shall be performed during the period commencing on such termination, cancellation, rescission or repudiation
and ending  90 days thereafter, as long as that Ship is not employed under a Qualifying Charter or another
Qualifying Charter as the case may be during such period.

 

Each such valuation for a Mortgaged
Ship shall be made by two (2) Approved Shipbrokers, each nominated by the Borrowers approved by, and addressed to, the Agent. Each
valuation shall be made without, unless required by the Agent or the Borrowers, physical inspection, and on the basis of a sale
for prompt delivery for cash at arm’s length, on normal commercial terms, as between a willing buyer and a willing seller,
without taking into account the benefit of any charterparty or other engagement concerning the relevant Mortgaged Ship except that,
if such Ship is employed under a Charter or a Qualifying Charter, such valuation shall be the aggregate of the Time Charter Income
and Residual Value of such Ship with the two (2) Approved Shipbrokers providing in such case the Residual Value. The arithmetic
mean of the two valuations shall constitute the value of such Mortgaged Ship for the purposes of this clause 8.2 Provided
however that if such two (2) valuations in respect of a Ship vary by more than ten per cent (10%) (by reference to the higher
figure), the Agent shall appoint a third Approved Shipbroker to value such Ship on the same basis as the other two (2) valuations
and, in that case, the arithmetic mean of the three (3) valuations shall constitute the value of such Mortgaged Ship for the purposes
of this clause 8.2

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The value of each Mortgaged Ship
determined in accordance with the provisions of this clause 8.2.2 shall be binding upon the parties hereto until such time
as any further such valuation shall be obtained.

 

	8.2.3	Information

 

The Borrowers jointly and severally
undertake with the Creditors to supply to the Agent and to any such Approved Shipbroker such information concerning the relevant
Mortgaged Ship and its condition as such Approved Shipbroker may reasonably require for the purpose of making any such valuation.

 

	8.2.4	Costs

 

All costs in connection with
the Agent obtaining any of the valuations of each of the Mortgaged Ships obtained twice per calendar year and any of the valuations
of each of the Mortgaged Ships obtained pursuant to clause 8.2.2, and all costs in connection with any valuation referred to in
schedule 3, any valuation either of any additional security for the purposes of ascertaining the Security Value in respect of any
Ship at any time while an Event of Default is continuing or necessitated by the Borrowers electing to constitute additional security
pursuant to clause 8.2.1(b), shall be borne by the Borrowers.

 

	8.2.5	Valuation of additional security

 

For the purposes of this clause 8.2,
the market value of any additional security (not being a ship) provided or to be provided to the Creditors or any of them shall
be determined by the Agent in its absolute discretion without any necessity for the Agent assigning any reason therefor. If such
additional security consists of a ship, the value of such ship shall be determined in accordance with clause 8.2.2 (except that
if a ship is subject to a charterparty with a remaining tenor in excess of 12 months, the benefit or detriment of such charterparty
shall be taken into account in that valuation). All costs of each such valuation will be paid by the Borrowers in accordance with
clause 8.2.4. If the additional security is in the form of a Dollar cash deposit, full credit shall be given for such cash on a
“Dollar for Dollar” basis. If the additional security is in the form of traded bonds, shares or other securities, their
market value shall be their quoted trading price at any relevant time of calculation (and the Agent shall be entitled to calculate
their value at any time and from time to time).

 

	8.2.6	Documents and evidence

 

In connection with any additional
security provided in accordance with this clause 8.2, the Agent shall be entitled to receive such evidence and documents of
the kind referred to in schedule 3 as may in the Agent’s reasonable opinion be necessary and such favourable legal opinions
as the Agent shall in its reasonable discretion require.

 

	8.2.7	Release of additional security

 

If, based on valuations obtained
in accordance with the provisions of clause 8.2.2, the Security Value for a Ship shall at any time exceed the Security Requirement
for a Ship, and the Borrowers shall have previously provided further security to the Banks and the other Creditors pursuant to
clause 8.2.1(b), the Agent (acting on the instructions of the Majority Banks) shall, as soon as reasonably practicable after notice
from the Borrowers to do so and subject to being indemnified for its reasonable cost of doing so, release or procure the release
of any such further security specified by the Borrowers provided that the Agent is satisfied that, immediately following such release
(a) the Security Value for each Ship to which clause 8.2.1 is applicable will exceed the Security Requirement for that Ship and
(b) no Event of Default has occurred which is then continuing or will occur as a result of such release. The Borrowers shall be
entitled to obtain and provide the valuations directly to the Agent (to avoid any delay) subject to the valuations being in accordance
with Clause 8.2.2 and at the cost of the Borrowers.

 

	8.3	Negative undertakings

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The Borrowers jointly and severally
undertake with each Creditor that, from the date of this Agreement and so long as any moneys are owing under the Security Documents
and while all or any part of the Total Commitment remains outstanding, they will not, without the prior written consent of the
Agent (acting on the instructions of the Majority Banks):

 

	8.3.1	Negative pledge

 

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

 

	8.3.2	No merger

 

merge or consolidate with any
other person or enter into any demerger, amalgamation or corporate redomiciliation of any type;

 

	8.3.3	Disposals

 

sell, transfer, abandon, lend
or otherwise dispose of or cease to exercise direct control over any part of their present or future undertaking, assets, rights
or revenues (otherwise than by transfers, sales or disposals of assets which are not material, for full consideration in the ordinary
course of trading but, in any event, not in respect of assets or rights which are subject to security created by the Security Documents),
whether by one or a series of transactions related or not;

 

	8.3.4	Other business

 

undertake any type of business
other than the performance of the Contracts and the Charters and the ownership and operation of the Ships and the chartering of
the Ships to third parties;

 

	8.3.5	Acquisitions

 

acquire any further assets other
than the Ships and rights arising under contracts entered into by or on behalf of the Borrowers in the ordinary course of their
businesses of performing the Contracts and owning, operating and chartering the Ships;

 

	8.3.6	Other obligations

 

incur any obligations except
for obligations arising under the Underlying Documents or the Security Documents to which they are a party or contracts entered
into in the ordinary course of their business of performing the Contracts and owning, operating and chartering the Ships;

 

	8.3.7	No borrowing

 

incur any Borrowed Money except
for Borrowed Money pursuant to or permitted by the Security Documents;

 

	8.3.8	Repayment of borrowings

 

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

 

	8.3.9	Guarantees

 

issue any guarantees or indemnities
or otherwise become directly or contingently liable for the obligations of any person, firm, or corporation except pursuant to
the Security Documents and except for (a) guarantees or indemnities from time to time required in the

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ordinary course by any protection
and indemnity or war risks association with which a Ship is entered, (b) guarantees required to procure the release of a Ship from
any arrest, detention, attachment or levy or guarantees or undertakings required for the salvage of a Ship and (c) other guarantees
in the ordinary course of their business but not exceeding the amount of $500,000 per Borrower per calendar year;

 

	8.3.10	Loans

 

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

 

	8.3.11	Sureties

 

permit any of their Indebtedness
to any person (other than the Creditors pursuant to the Security Documents) to be guaranteed by any person (save for (a) guarantees
or indemnities from time to time required in the ordinary course by any protection and indemnity or war risks association with
which a Ship is entered, (b) guarantees required to procure the release of a Ship from any arrest, detention, attachment or levy
or guarantees or undertakings required for the salvage of a Ship or (c) other guarantees in the ordinary course of their business
not exceeding the amount of $500,000 per Borrower per calendar year);

 

	8.3.12	Share capital and distribution

 

purchase or otherwise acquire
for value any shares of their capital or declare or pay any dividends or distribute any of their present or future assets, undertakings,
rights or revenues to any of their shareholders Provided always that each Borrower may declare or pay dividends to its shareholders
if no Event of Default shall have occurred and be continuing at the time of, or would result from, the declaration or payment of
such dividends;

 

	8.3.13	Subsidiaries

 

form or acquire any Subsidiaries;

 

	8.3.14	Manager

 

		(a)	appoint any manager in respect of the Ships or any of them other than a Manager; or

 

		(b)	terminate or materially amend the terms of any Management Agreement, unless in doing so, they remain
in compliance with clause 8.1.18;

 

	8.3.15	Financial year and constitutional documents

 

		(a)	change, cause, permit or agree to any change in, the way of computation of their financial year;
or

 

		(b)	change, amend or vary, or agree to or permit any material change, amendment or variation of or
to, their constitutional documents;

 

	8.3.16	Intra-Group transactions

 

enter into any transactions,
agreements or arrangements with any of their Related Companies or other members of the Group, other than on an arm’s length
basis and for full value and consideration; or

 

	8.3.17	Derivative transactions

 

enter into any interest rate,
currency or other swap, foreign exchange contracts, futures or other derivative transactions, agreements or instruments other than
Designated

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Transactions with the Swap Provider
under the Master Swap Agreement and other than on terms and conditions agreed between the Borrowers and the Swap Provider.

 

	8.4	Pre-delivery positive undertakings

 

The Borrowers hereby jointly
and severally undertake and agree with each Creditor that they will:

 

	8.4.1	Conveyance on default

 

where any Ship is (or is to be)
sold in exercise of any power contained in the relevant Pre-delivery Security Assignment or otherwise conferred on the Security
Agent or any other Creditor, procure that the relevant Borrower shall execute, forthwith upon request by the Agent, such form of
conveyance of such Ship as the Agent may require;

 

	8.4.2	Flag State

 

not later than thirty (30) days
prior to the Delivery Date of a Ship, obtain the Agent’s written approval of the Flag State for such Ship (if other than
Liberia, Marshall Islands or Panama); and

 

	8.4.3	Mortgage

 

immediately upon Delivery of
a Ship, execute and procure that the relevant Borrower shall execute, and procure the registration of, the Mortgage for such Ship
under the laws and flag of the relevant Flag State and the other Security Documents in relation to such Ship and otherwise deliver
to the Agent the documents and evidence set out in clause 9.1.3 in respect of such Ship.

 

	8.5	Pre-delivery negative undertaking

 

The Borrowers hereby jointly
and severally further undertake and agree with each Creditor that they will not, without the prior written consent of the Agent
(and then only subject to such conditions as the Agent (acting on the instructions of the Majority Banks) may impose) let or agree
to let any Ship:

 

	8.5.1	on demise charter for any period; or

 

	8.5.2	by any time or consecutive voyage charter for a term which exceeds, or which by virtue of any optional
extensions therein contained may exceed, twelve (12) months’ duration (except under the relevant Charter); or

 

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

 

	8.5.4	otherwise than on an arm’s length basis.

 

	9	Conditions

 

	9.1	Documents and evidence

 

	9.1.1	Commitments

 

The obligation of each Bank to
make its Commitment available shall be subject to the condition that the Agent or its duly authorised representative shall have
received, not later than two (2) Banking Days before the date of this Agreement, the documents and evidence specified in Part 1
of schedule 3, in form and substance reasonably satisfactory to the Agent.

 

	9.1.2	Contract Instalment Advances

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The obligation of the Banks to
make available a Contract Instalment Advance in respect of a Ship shall be subject to the condition that the Agent or its duly
authorised representative shall have received, on or prior to the drawdown of the relevant Contract Instalment Advance for the
relevant Ship, the relevant documents and evidence specified in Part 2 of schedule 3 in respect of the relevant Contract Instalment
Advance and the relevant Ship, in form and substance reasonably satisfactory to the Agent.

 

	9.1.3	Delivery Advances

 

The obligation of the Banks to
make available the Delivery Advance in respect of a Ship shall be subject to the condition that the Agent or its duly authorised
representative shall have received, on or prior to the drawdown of the Delivery Advance for such Ship, the documents and evidence
specified in Part 3 of schedule 3 in respect of such Ship, in form and substance reasonably satisfactory to the Agent.

 

	9.2	General conditions precedent

 

The obligation of the Banks
to make any Advance available shall be subject to the further conditions that, at the time of the giving of the Drawdown Notice
for such Advance, and at the time of the making of such Advance:

 

	9.2.1	the representations and warranties contained in (a) clauses 7.1, 7.2 and 7.3(b) of this Agreement
and (b) clause [4] of the Corporate Guarantee, are true and correct on and as of each such time as if each was made with respect
to the facts and circumstances existing at such time;

 

	9.2.2	no Charterer Event shall have occurred in respect of the Ship to which the relevant Advance relates;
and

 

	9.2.3	no Default shall have occurred and be continuing or would result from the making of the relevant
Advance.

 

	9.3	Waiver of conditions precedent

 

The conditions specified in
this clause 9 are inserted solely for the benefit of the Banks and may be waived by the Agent (acting on the instructions of the
Majority Banks) in whole or in part and with or without conditions.

 

	10	Events
                                                                        of Default

 

	10.1	Events

 

There shall be an Event of Default
if:

 

	10.1.1	Non-payment: any Security Party fails to pay any sum payable by it under any of the Security
Documents at the time, in the currency and in the manner stipulated in the Security Documents or the Underlying Documents (and
so that, for this purpose, sums payable on demand shall be treated as having been paid at the stipulated time if paid within three
(3) Banking Days of demand), unless any such failure to pay is caused by an administrative or technical error in the banking system,
and payment of the relevant sum is made within 3 days of its due date; or

 

	10.1.2	Breach of Insurance and certain other obligations: any of the Borrowers or any other person
fails to obtain and/or maintain the Insurances for any Mortgaged Ship in accordance with the requirements of the relevant Ship
Security Documents or if any insurer in respect of such Insurances cancels such Insurances or disclaims liability by reason, in
either case, of mis-statement in any proposal for such Insurances or for any other failure or default on the part of any of the
Borrowers or any other person, or any of the Borrowers commits any breach of or omits to observe any of the obligations or undertakings
expressed to be assumed by them under clauses 8.1.5 or 8.1.18 or 8.2 or 8.3 or 8.4 or 8.5 of this Agreement, or which have been
assumed by them pursuant to the proviso at the

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		end of this clause 10.1, or the Corporate Guarantor commits any breach of or omits to observe any
of the obligations or undertakings expressed to be assumed by it under clauses [5.1.4 or 5.1.5 or 5.2 or 5.3] of the Corporate
Guarantee; or

 

	10.1.3	Breach of other obligations: any Security Party or any Manager commits any breach of or
omits to observe any of its obligations or undertakings expressed to be assumed by it under any of the Security Documents or a
Manager’s Undertaking to which it is a party (other than those referred to in clauses 10.1.1 and 10.1.2 above) and,
in respect of any such breach or omission which in the opinion of the Agent (acting on the instructions of the Majority Banks)
is capable of remedy, such action as the Agent (acting on the instructions of the Majority Banks) may require shall not have been
taken within twenty (20) days of the Agent notifying the relevant Security Party or (as the case may be) any Manager of such default
and of such required action; or

 

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

 

	10.1.5	Cross-default: any Borrowed Money of any Security Party is not paid when due or any Borrowed
Money of any Security Party becomes (whether by declaration or automatically in accordance with the relevant agreement or instrument
constituting the same) due and payable prior to the date when it would otherwise have become due (unless as a result of the exercise
by the relevant Security Party of a voluntary or mandatory right of prepayment), or any creditor of any Security Party becomes
entitled to declare any such Borrowed Money due and payable and has sent a notice of default (or similar notice setting out the
event which makes it so entitled), or any facility or commitment available to any Security Party relating to Borrowed Money is
withdrawn, suspended or cancelled by reason of any default (however described) of the person concerned (unless the relevant Security
Party shall have satisfied the Agent that such withdrawal, suspension or cancellation will not affect or prejudice in any material
way the relevant Security Party’s ability to pay its debts as they fall due and fund its commitments), or any guarantee given by
any Security Party in respect of Borrowed Money is not honoured when due and called upon Provided that:

 

		(a)	in the case of each Security Party (other than the Corporate Guarantor), the amount or aggregate
amount at any one time of all Borrowed Money of that Security Party in relation to which any of the foregoing events shall have
occurred and be continuing is equal to or greater than One million Dollars ($1,000,000) or its equivalent in the currency in which
the same is denominated and payable;

 

		(b)	in the case of the Corporate Guarantor only, the amount or aggregate amount at any one time of
all Borrowed Money of the Corporate Guarantor in relation to which any of the foregoing events shall have occurred and be continuing
is equal to or greater than Three million Dollars ($3,000,000) or its equivalent in the currency in which the same is denominated
and payable;

 

For the avoidance
of doubt, for the purposes of this clause 10.1.5, “Borrowed Money” shall not include any amounts owing to the
Creditors under this Agreement and/or any of the other Security Documents; or

 

	10.1.6	Legal process: any judgment or order is made against any Security Party in respect of an
amount exceeding $1,000,000 in the case of the Corporate Guarantor or $3,000,000 in the case of any other Security Party, and the
same is not stayed or complied with within fifteen (15) days; or a creditor attaches or takes possession of, or a distress, execution,
sequestration or other process is levied or enforced upon or sued out against, any of the undertaking, assets, rights or revenues
of any Security Party in respect of an amount exceeding $1,000,000 in the case of the Corporate Guarantor or $3,000,000 in the
case of any other Security Party, and the same is not discharged within fifteen (15) days; or

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	10.1.7	Insolvency: any Security Party or the Refund Guarantor is unable or admits inability to
pay its debts as they fall due; or suspends making payments on any of its debts or announces an intention to do so; or becomes
insolvent; or suffers the declaration of a moratorium in respect of any of its Indebtedness; or any corporate action, legal proceedings
or other procedure or step is taken in relation to any of the above Provided however that:

 

		(a)	mere discussion about the mere possibility of taking any such a step in relation to any of the
above during a board meeting, shall not constitute an Event of Default under this clause 10.1.7;

 

		(b)	a mere petition or legal proceedings initiated by a third party, which the Borrowers can demonstrate
to the satisfaction of the Agent in its absolute discretion, by providing an opinion of leading counsel to that effect, is frivolous,
vexatious or an abuse of the process of the court or relates to a claim to which the relevant Security Party has a good defence
and which is being vigorously contested by the relevant Security Party, shall not constitute an Event of Default under this clause
10.1.7; or

 

	10.1.8	Reduction or loss of capital: a meeting is convened by any Borrower for the purpose of passing
any resolution to reduce or redeem any of its share capital; or

 

	10.1.9	Winding up: any corporate action, legal proceedings or other procedure or step is taken
for the purpose of winding-up any Security Party or the Refund Guarantor; or an order is made or resolution passed for the winding
up of any Security Party or the Refund Guarantor; or a notice is issued convening a meeting for the purpose of passing any such
resolution unless, in the case of an involuntary petition, the petition is being contested in good faith and on substantial grounds
and is dismissed or withdrawn within thirty (30) days of the presentation of the petition above (but mere discussion about the
mere possibility of taking any such a step in relation to any of the above during a board meeting, shall not constitute an Event
of Default); or

 

	10.1.10	Administration: any petition is presented, notice given or other step is taken for the purpose
of the appointment of an administrator of any Security Party or the Refund Guarantor or an administration order is made in relation
to any Security Party or the Refund Guarantor; or

 

	10.1.11	Appointment of receivers, managers etc.: any administrative or other receiver, liquidator,
compulsory manager or other similar officer is appointed of any Security Party or the Refund Guarantor or any part of its assets
and/or undertaking or any other steps are taken to enforce any Encumbrance over all or any part of the assets of any Security Party;
or

 

	10.1.12	Compositions: any corporate action, legal proceedings or other procedures or steps are taken,
or negotiations commenced, by any Security Party or by any of its creditors with a view to the general readjustment or rescheduling
of all or part of its indebtedness or to proposing any kind of composition, compromise or arrangement involving such company and
any of its creditors; or

 

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

 

	10.1.14	Cessation of business: any Security Party or the Refund Guarantor suspends or ceases to
carry on its business; or

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	10.1.15	Seizure: all or a material part of the undertaking, assets, rights or revenues of, or shares
or other ownership interests in, any Security Party are seized, nationalised, expropriated or compulsorily acquired by or under
the authority of any government; or

 

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

 

	10.1.17	Unlawfulness: it becomes impossible or unlawful at any time for any Security Party, to fulfil
any of the covenants and obligations expressed to be assumed by it in any of the Security Documents or for a Creditor to exercise
the rights or any of them vested in it under any of the Security Documents or otherwise, unless the Majority Banks are satisfied
that through the implementation of alternative arrangements satisfactory to the Majority Banks, the unlawfulness or impossibility
will be overcome or rectified within 10 days from its occurrence but without in the meantime jeopardising in any way the position
of the Creditors under this Agreement and the other Security Documents or the Encumbrances created by the Security Documents (and
such unlawfulness or impossibility is actually overcome or rectified within such 10 day period); or

 

	10.1.18	Repudiation: any Security Party repudiates any of the Security Documents or threatens, or
expresses an intention, to repudiate any of the Security Documents; or

 

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

 

	10.1.20	Material adverse effect: any other event occurs or any other circumstances arise or develop
including, without limitation, a material adverse change in the financial position, state of affairs or prospects of any Borrower
or the Corporate Guarantor, in light of which the Majority Banks reasonably consider that there is a significant risk that any
Borrower or the Corporate Guarantor or any other Security Party is, or will later become, unable to discharge its liabilities under
the Security Documents as they fall due; or

 

	10.1.21	Arrest: any Ship is arrested, confiscated, seized, taken in execution, impounded, forfeited,
detained in exercise or purported exercise of any possessory lien or other claim or otherwise taken from the possession of the
relevant Borrower and the relevant Borrower shall fail to procure the release of such Ship within a period of ten (10) days thereafter;
or

 

	10.1.22	Registration: the registration of any Ship under the laws and flag of the relevant Flag
State is cancelled or terminated or suspended without the prior written consent of the Majority Banks or the registration of such
Ship is not renewed at least thirty (30) days prior to the expiry of such registration; or

 

	10.1.23	Unrest: the Flag State of any Ship becomes involved in hostilities or civil war or there
is a seizure of power in such Flag State by unconstitutional means if, in any such case:

 

		(a)	such event could in the opinion of the Agent (acting on the instructions of the Majority Banks)
reasonably be expected to have a material adverse effect on the security constituted by any of the Security Documents; and

 

		(b)	the Borrower owning such Ship has failed within thirty (30) days from receiving notice from the
Agent (acting on the instructions of the Majority Banks) to this effect to:

 

	 	(i)	delete the relevant Ship from its existing Flag State;

 

		(ii)	register such Ship under another Flag State through a relevant Registry; and

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		(iii)	execute, at its own cost and expense, such other security (including a mortgage, deed of covenant
and general assignment) in favour of the Creditors over the relevant Ship, its Earnings, Insurances and Requisition Compensation,
as the Agent may in its reasonable discretion require; or

 

	10.1.24	Environment: any Borrower and/or any of their respective Environmental Affiliates fails
to comply with any Environmental Law or any Environmental Approval or any of the Ships is involved in any incident which gives
rise to an Environmental Claim if, in any such case, such non-compliance or incident or the consequences thereof could, in the
opinion of the Majority Banks acting through the Agent, reasonably be expected to have a material adverse effect on the ability
of any Security Party to perform all or any of its obligations under or otherwise to comply with the terms of any of the Security
Documents; or

 

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

 

	10.1.26	Shareholdings: without the prior written consent of the Majority Banks:

 

		(a)	any of the Borrowers ceases at any time to be a wholly-owned direct Subsidiary of the Corporate
Guarantor; or

 

		(b)	at any time members of the Konstantakopoulos Family cease to control any of the Managers; or

 

		(c)	any person, or persons acting in concert (other than any financial institution acting as a passive
investor), at any time (i) control the Corporate Guarantor or (ii) become, directly or indirectly, the legal and/or beneficial
and/or ultimate beneficial owners of a higher percentage of the total issued share capital of the Corporate Guarantor, than the
percentage of the total issued share capital of the Corporate Guarantor ultimately and beneficially owned by all members of the
Konstantakopoulos Family at that time; or

 

		(d)	at any time while the shares of the Corporate Guarantor are listed and trade on the New York Stock
Exchange, members of the Konstantakopoulos Family cease (i) to control the Corporate Guarantor or (ii) to be the ultimate beneficial
owners of at least forty per cent (40%) of the total issued share capital, or of the total issued voting share capital, of the
Corporate Guarantor (either directly or indirectly); or

 

		(e)	at any time after the shares of the Corporate Guarantor are de-listed or cease to trade on the
New York Stock Exchange, members of the Konstantakopoulos Family cease (i) to control the Corporate Guarantor or (ii) to be the
ultimate beneficial owners of one hundred per cent (100%) of the total issued share capital, or of the total issued voting share
capital, of the Corporate Guarantor (either directly or indirectly); or

 

	10.1.27	Termination or variation of Assigned Contracts: any
Assigned Contract is terminated or rescinded for any reason whatsoever (except with the prior written consent of the Majority Banks);
or any Assigned Contract is frustrated; or any Assigned Contract is varied in any manner not permitted by or pursuant to the relevant
Pre-delivery Security Assignment or this Agreement; or

 

	10.1.28	Termination of Assigned Refund Guarantees: any Assigned Refund Guarantee is repudiated,
cancelled, rescinded or otherwise terminated or expires (other than by the return of such Assigned Refund Guarantee by the relevant
Borrower to the Builder and/or the Refund Guarantor following the Delivery of the relevant Ship); or

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	10.1.29	Non-Delivery of Ship or non-drawing of Delivery Advance:
any Ship is not delivered to, and accepted by, the relevant Borrower under the relevant Assigned Contract or the Delivery Advance
for such Ship is not drawn down, in either case, on or before the Final Availability Date for the Delivery Advance relevant to
such Ship; or

 

	10.1.30	Builder’s defaults: any of the events specified
in Article XI.3 of any Assigned Contract occurs in respect of the Builder, unless the relevant Borrower has terminated such Assigned
Contract within 30 days after the earlier of (a) the Borrowers or any of them becoming aware of such event and (b) the Agent notifying
the Borrowers that such event has taken place; or

 

	10.1.31	Payments under Refund Guarantees: any claim made under
any Assigned Refund Guarantee is not paid by the Refund Guarantor, at the time specified by, and in accordance with, the
terms of that Assigned Refund Guarantee after receipt by the Refund Guarantor of the relevant written demand thereunder;
or

 

	10.1.32	Operating Accounts: moneys are withdrawn from any of the Operating Accounts other than in
accordance with clause 14; or

 

	10.1.33	Licences, etc: any licence, authorisation, consent or approval at any time necessary to
enable any Security Party to comply with its material obligations under the Security Documents or the Underlying Documents is revoked
or withheld or modified or is otherwise not granted or fails to remain in full force and effect or if any exchange control or other
law or regulation shall exist which would make any transaction under the Security Documents or the Underlying Documents or the
continuation thereof, unlawful or would prevent the performance by any Security Party of any term of any of the Security Documents
or the Underlying Documents, unless, in the case of unlawfulness referred to above, the Majority Banks are satisfied that through
the implementation of alternative arrangements satisfactory to the Majority Banks, the unlawfulness will be overcome or rectified
within 10 days from its occurrence but without in the meantime jeopardising in any way the position of the Creditors under this
Agreement and the other Security Documents or the Encumbrances created by the Security Documents (and such unlawfulness is actually
overcome or rectified within such 10 day period),

 

Provided however that:

 

		(a)	there shall not be an Event of Default if any of the events or circumstances described in clauses
10.1.7, 10.1.9, 10.1.10, 10.1.11, 10.1.13 and 10.1.14 takes place solely and exclusively with respect to the Refund Guarantor and,
within fifteen (15) days after the earlier of (1) the date when the Borrowers or any of them becomes aware that the relevant event
or the relevant circumstances have occurred or started to exist and (2) the date when the Agent notifies the Borrowers in writing
that the relevant event or the relevant circumstances have occurred or exist:

 

	 	(i)	the Borrowers have (A) arranged the issuing of new substitute refund guarantees for
each Assigned Contract in favour of the relevant Borrower, in form and substance substantially similar to the Assigned Refund
Guarantees and issued by a bank acceptable to the Agent (acting on the instructions of the Majority Banks in their discretion),
(B) assigned in favour of the Security Agent (at the expense of the Borrowers) the benefit of such substitute Refund Guarantees
by executing security assignment agreements in a form similar to the Pre-delivery Security Assignments (and have delivered to
the Security Agent any notices of assignment and have used their best endeavours to deliver to the Security Agent acknowledgements
or further documents required to be delivered pursuant thereto) and (C) provided the Agent (at the expense of the Borrowers) with
any legal opinion in respect of the matters referred to in this paragraph (a)(i) in form and substance satisfactory to the Agent;
or

 

		(ii)	the Borrowers have prepaid the Loan in full;

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		(b)	there shall not be an Event of Default if any of the events or circumstances described in clauses
10.1.27, 10.1.28, 10.1.29, 10.1.30 or 10.1.31 shall occur with respect to an Assigned Contract or an Assigned Refund Guarantee
(as the case may be), and, within fifteen (15) days after the earlier of (1) the date when the Borrowers or any of them becomes
aware that the relevant event or the relevant circumstances have occurred or started to exist and (2) the date when the Agent notifies
the Borrowers in writing that the relevant event or the relevant circumstances have occurred or exist:

 

the Borrowers
have prepaid in full the Tranche for the Ship to which such Assigned Contract or Assigned Refund Guarantee relates;

 

		(c)	the Borrowers shall not be entitled to serve a Drawdown Notice during the fifteen (15) day periods
referred to in paragraphs (a) and (b) above, unless the circumstances referred to therein cease to exist and the Borrowers have
complied with their obligations thereunder.

 

	10.2	Acceleration

 

The Agent may, and if so requested
by the Majority Banks shall, without prejudice to any other rights of the Banks, at any time after the occurrence of an Event of
Default and while the same is then continuing, by notice to the Borrowers:

 

	10.2.1	declare that the obligation of each Bank to make available its Commitment shall be terminated,
whereupon the Total Commitment shall be reduced to zero; and/or

 

	10.2.2	declare that the Loan and all interest and commitment commission accrued and all other sums payable
under the Security Documents have become due and payable, whereupon the same shall, immediately or at any other time specified
in such notice, become due and payable.

 

	10.3	Demand basis

 

If, pursuant to clause 10.2.2,
the Agent declares the Loan to be due and payable on demand, the Agent may (and if so instructed by the Majority Banks shall) by
written notice to the Borrowers call for repayment of the Loan on such date as may be specified whereupon the Loan shall become
due and payable on the date so specified together with all interest and commitment commission accrued and all other sums payable
under this Agreement.

 

	10.4	Position of Swap Provider

 

Neither the Agent nor the Security
Agent shall be obliged, in connection with any action taken or proposed to be taken under or pursuant to the foregoing provisions
of this clause 10, to have any regard to the requirements of the Swap Provider except to the extent that the Swap Provider is also
a Bank.

 

	11	Indemnities

 

	11.1	Miscellaneous indemnities

 

The Borrowers shall on demand
indemnify each Creditor, without prejudice to any of such Creditor’s other rights under any of the Security Documents, against
any loss (but excluding loss of Margin) or expense which such Creditor shall certify as sustained or incurred by it as a consequence
of:

 

	11.1.1	any default by any Security Party in payment of any sum under any of the Security Documents when
due;

 

	11.1.2	the occurrence of any other Event of Default;

 

	11.1.3	any prepayment of an Advance or Tranche (or any part thereof) being made under clauses 2.10, 4.2,
4.4, 8.2.1(a) or 12.1 or any other repayment or prepayment of an Advance or

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Tranche being made otherwise
than on an Interest Payment Date relating to the part of the Advance or Tranche prepaid or repaid (but provided that
any loss payable to a Bank under this clause 11.1.3 shall not exceed the amount (if any) by which (a) the additional interest which
would have been payable to that Bank on the amounts so prepaid had they been repaid on such Interest Payment Date, exceeds (b)
the amount of interest which, in the opinion of that Bank, would be payable to that Bank in respect of a deposit in Dollars in
an amount similar to the amount so prepaid, if placed by that Bank with a prime bank in London for a period starting on the day
of such prepayment and ending on such Interest Payment Date);

 

	11.1.4	any Advance not being made for any reason (excluding any default by the Agent or any Bank) after
the Drawdown Notice for such Advance has been given,

 

including, in any such case,
but not limited to, any loss or expense sustained or incurred by the relevant Creditor in maintaining or funding its Contribution
or, as the case may be, its Commitment (or any part thereof) or in liquidating or re-employing deposits from third parties
acquired to effect or maintain its Contribution or, as the case may be, its Commitment (or any part thereof) or in terminating
or reversing or otherwise in connection with, any interest rate and/or currency swap or other derivative transaction or other arrangement
entered into by a Creditor (whether with another legal entity or with another office or department of such Creditor) to hedge any
exposure arising under this Agreement by the Swap Provider under the Master Agreement or in terminating, reversing, or otherwise
in connection with, any open position arising under this Agreement, or any other amount owing to such Creditor.

 

	11.2	Currency indemnity

 

If any sum due from any of the
Borrowers under any of the Security Documents or any order or judgment given or made in relation thereto has to be converted from
the currency (the “first currency”) in which the same is payable under the relevant Security Document or under
such order or judgment into another currency (the “second currency”) for the purpose of (a) making or filing
a claim or proof against the Borrowers or any of them, (b) obtaining an order or judgment in any court or other tribunal or (c)
enforcing any order or judgment given or made in relation to any of the Security Documents, the Borrowers shall indemnify and hold
harmless each Creditor from and against any loss suffered as a result of any difference between (i) the rate of exchange used for
such purpose to convert the sum in question from the first currency into the second currency and (ii) the rate or rates of exchange
at which the relevant Creditor may in the ordinary course of business purchase the first currency with the second currency upon
receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof. Any amount due from
the Borrowers under this clause 11.2 shall be due as a separate debt and shall not be affected by judgment being obtained
for any other sums due under or in respect of any of the Security Documents and the term “rate of exchange”
includes any premium and costs of exchange payable in connection with the purchase of the first currency with the second currency.

 

	11.3	Environmental indemnity

 

The Borrowers shall indemnify
each Creditor on demand and hold it harmless from and against all costs, expenses, payments, charges, losses, demands, liabilities,
actions, proceedings (whether civil or criminal), penalties, fines, damages, judgements, orders, sanctions or other outgoings of
whatever nature (including, without limitation, those arising under Environmental Laws) which may be suffered, incurred or paid
by, or made or asserted against such Creditor at any time, whether before or after the repayment in full of all amounts of principal
and interest under this Agreement, relating to, or arising directly or indirectly in any manner or for any cause or reason whatsoever
out of an Environmental Claim made or asserted against such Creditor if such Environmental Claim would or could not have been,
or been capable of being, made or asserted against such Creditor if it had not entered into any of the Security Documents and/or
exercised any of its rights, powers and discretions thereby conferred and/or performed any of its obligations thereunder and/or
been involved in any of the transactions contemplated by the Security Documents.

 

	11.4	Waiver

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In no event shall a Creditor
or any of its Related Companies or any of their respective officers or directors be liable on any theory of liability for any special,
indirect, consequential or punitive damages and each Borrower hereby waives, releases and agrees not to sue upon any such claim
for any such damages, whether or not accrued and whether or not known or suspected to exist in its favour.

 

	11.5	General indemnity

 

The Borrowers jointly and severally
hereby indemnify and agree to hold harmless the Creditors and each of their respective Related Companies and each of their respective
officers, directors, employees, agents, advisors and representatives (each, an “Indemnified Party”) from and
against any and all claims, damages, losses, liabilities, costs, legal and other expenses (altogether the “Losses”),
joint or several, that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or
in connection with or relating to any claim, investigation, litigation or proceeding (or the preparation of any defence with respect
thereto) commenced or threatened in relation to the Security Documents or any of them (or the transactions contemplated hereby
or thereby) or any use made or proposed to be made with the proceeds of the Loan. This indemnity shall apply whether or not such
claims, investigation, litigation or proceeding is brought by the Borrowers or any of them, any other Security Party, any other
member of the Group, any of their respective shareholders or creditors, an Indemnified Party or any other person, or an Indemnified
Party is otherwise a party thereto, except to the extent that such Losses are found in a final, non-appealable judgment by a court
of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or wilful misconduct.

 

	12	Unlawfulness,
                                                                        increased costs and mitigation

 

	12.1	Unlawfulness

 

If it is or becomes contrary
to any law or regulation for any Bank to contribute to an Advance or to maintain its Commitment or fund the Loan or perform any
of its other obligations under this Agreement, such Bank shall promptly, through the Agent, give notice to the Borrowers whereupon:

 

		(a)	such Bank’s Commitment shall be reduced to zero; and

 

		(b)	the Borrowers shall be obliged to prepay such Bank’s Contribution either (A) forthwith or
(B) on a future specified date not being later than the latest date permitted by the relevant law or regulation together with interest
and commissions accrued to the date of prepayment and all other sums payable by the Borrowers under this Agreement and/or the Master
Swap Agreement.

 

	12.2	Increased costs

 

If the result of any change
in, or in the interpretation or application of, or the introduction of, any Capital Adequacy Law or of compliance by a Bank with
any Capital Adequacy Law (excluding a switch of that Bank from one Basel II approach to another unless it is mandatorily required
by law) is to:

 

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

 

	12.2.2	increase the cost to, or impose an additional cost on any Bank or its holding company in making
or keeping such Bank’s Commitment available or maintaining or funding all or part of such Bank’s Contribution; and/or

 

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

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	12.2.4	reduce any Bank’s or its holding company’s
    rate of return on its overall capital by reason of a change in the manner in which it is required to allocate capital resources
    to such Bank’s obligations under any of the Security Documents; and/or
	 	 
	12.2.5	require any Bank or its holding company
    to make a payment or forego a return on or calculated by reference to any amount received or receivable by such Bank under
    any of the Security Documents; and/or
	 	 
	12.2.6	require any Bank or its holding company
    to incur or sustain a loss by reason of being obliged to deduct all or part of its Commitment or the Loan,
	 	 
	 	then and in each such case (subject to clause 12.3):
	 	 
	 	(a)	such Bank shall (through the Agent) notify the Borrowers
    in writing of such event promptly upon its becoming aware of the same; and
	 	 	 
	 	(b)	the Borrowers shall on demand pay to the Agent for
    the account of such Bank at any time after the expiry of the Negotiation Period (and whether or not the Loan or any part thereof
    has then been repaid or prepaid), pay to such Bank the amount which such Bank specifies (in a certificate (which shall be
    conclusive on the Borrowers in the absence of manifest error) setting forth the basis of the computation of such amount but
    not including any matters which such Bank or its holding company regards as confidential) is required to compensate such Bank
    (or its holding company) for such liability to Taxes, alternative funding, increased cost, reduction, payment, loss or foregone
    return (as the case may be).
	 	 	 
	 	For the purposes of this clause 12.2 and clause 12.4, “holding company”
    means the company or entity (if any) within the consolidated supervision of which a Bank is included.
	 	 
	12.3	Exception
	 	 
	 	Nothing in clause 12.2 shall entitle any Bank to receive any amount in respect
    of compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss
    to the extent that the same is the subject of an additional payment under clause 6.6.
	 	 
	12.4	Mitigation and Tax credits
	 	 
	12.4.1	Mitigation
	 	 
	 	If circumstances arise which would, or would upon the giving of notice, result
    in an increased payment required to be made by the Borrowers under clause 6.6 or clause 12.2 then, without in any way limiting
    the obligations of the Borrowers under either of these clauses, the relevant Bank shall use reasonable endeavours to transfer
    its obligations, liabilities and rights under this Agreement and the other Security Documents to another of its offices not
    affected by the circumstances which gave rise to such increased payment, but no Bank shall be under any obligation to take
    any such action, and, in any event, it shall not do so if in its opinion, to do so would or might:
	 	 
	 	(a)	be prejudicial to such Bank (or, as the case may be,
    its holding company); or
	 	 	 
	 	(b)	have an adverse effect on such Bank’s or its
    holding company’s business, operations, administration or financial condition; or
	 	 	 
	 	(c)	involve such Bank or its holding company in any activity
    which is unlawful or prohibited or any activity that is contrary to, or inconsistent, with any regulation or such Bank’s
    general banking policies; or
	 	 	 
	 	(d)	involve such Bank or its holding company in any expense
    (unless indemnified to its satisfaction) or tax disadvantage.

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	12.4.2	Tax credits
	 	 
	 	If a Bank receives for its own account a repayment or credit in respect of tax
    on account for which the Borrowers have made an increased payment under clause 6.6, it shall pay to the Borrowers a sum equal
    to the repayment or credit received, provided always that:
	 	 
	 	(a)	such Bank can do so without prejudicing the retention
    of the amount of such repayment or credit and without prejudice to the right of such Bank to obtain any other relief or allowance
    which may be available to it;
	 	 	 
	 	(b)	such Bank shall not be obliged to allocate to this
    transaction any part of a tax repayment or credit which is referable to a number of transactions if the Loan does not fall
    within such number of transactions;
	 	 	 
	 	(c)	nothing in this clause shall entitle the Borrowers
    to enquire about such Bank’s tax affairs or oblige such Bank to arrange its tax affairs in any particular manner, to
    disclose any information regarding its tax affairs and computations, 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;
	 	 	 
	 	(d)	nothing in this clause shall oblige such Bank to make
    a payment which exceeds any repayment or credit in respect of tax on account of which the Borrowers have made an increased
    payment under clause 6.6; and
	 	 	 
	 	(e)	any allocation or determination made by such Bank under
    or in connection with this clause shall be prima facie evidence of the payment due to the Borrowers under this clause 12.4.2.
	 	 	 
	13	Security, set-off and pro-rata
    payments
	 	 
	13.1	Application of moneys
	 	 
	 	All moneys received by the Agent and/or the Security Agent under or pursuant to
    any of the Security Documents and expressed to be applicable in accordance with the provisions of this clause 13.1 or
    in a manner determined in the Security Agent’s or (as the case may be) the Agent’s discretion, shall be applied
    pro rata against each Sub-Tranche and the Swap Exposure OR if a notice of an Event of Default has been served to the Borrowers
    by the Agent and whilst such Event of Default is continuing all moneys received by the Agent and/or the Security Agent under
    or pursuant to any of the Security Documents shall be applied in the following manner:
	 	 
	13.1.1	first, in or towards payment of all unpaid
    costs and expenses which may be owing to the Agent and/or the Security Agent and/or the Arranger and/or any of them under
    any of the Security Documents;
	 	 
	13.1.2	secondly, in or towards payment of any
    unpaid fees and commissions payable to the Agent and/or the Security Agent and/or the Arranger and/or any of them under any
    of the Security Documents;
	 	 
	13.1.3	thirdly, in or towards payment of any arrears
    of interest owing in respect of each Sub-Tranche A;
	 	 
	13.1.4	fourthly, in or towards repayment of each
    Sub-Tranche A  (whether same has become due and payable or not);
	 	 
	13.1.5	fifthly, in or towards payment of any arrears of interest owing in respect of
    each Sub-Tranche B;
	 	 
	13.1.6	sixthly, in or towards repayment of each Sub-Tranche B  (whether same
    has become due and payable or not);

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	13.1.7	seventhly, in or towards payment of all unpaid costs and expenses which may be
    owing to the Swap Provider under the Master Swap Agreement;
	 	 
	13.1.8	eightly, in or towards payment of any unpaid fees and commissions payable to the
    Swap Provider under the Master Swap Agreement;
	 	 
	13.1.9	ninthly, in or towards payment to the Swap
    Provider of any sums owing to it under the Master Swap Agreement relating to each Sub-Tranche A;
	 	 
	13.1.10	tenthly, in or towards payment to the Swap Provider of any sums owing to it under
    the Master Swap Agreement relating to each Sub-Tranche B; and
	 	 
	13.1.11	eleventhly, the surplus (if any) shall
    be paid to the Borrowers or to whomsoever else may be entitled to receive such surplus.
	 	 
	13.2	Set-off
	 	 
	13.2.1	The Borrowers authorise each Creditor (without
    prejudice to any of such Creditor’s rights at law, in equity or otherwise), at any time following the occurrence of
    an Event of Default and while the same is continuing and with notice to the Borrowers, to apply any credit balance to which
    the Borrowers or any of them is then entitled standing upon any account of the Borrowers or any of them with any branch of
    such Creditor in or towards satisfaction of any sum due and payable from the Borrowers or any of them to such Creditor under
    any of the Security Documents.  For this purpose, each Creditor is authorised to purchase with the moneys standing
    to the credit of such account such other currencies as may be necessary to effect such application.
	 	 
	13.2.2	No Creditor shall be obliged to exercise
    any right given to it by this clause 13.2.  Each Creditor shall notify the Borrowers through the Agent forthwith
    upon the exercise or purported exercise of any right of set-off giving full details in relation thereto and the Agent shall
    inform the other Creditors.
	 	 
	13.2.3	Nothing in this clause 13.2 shall be effective
    to create an Encumbrance or any other security interest.
	 	 
	13.3	Pro rata payments
	 	 
	13.3.1	If at any time any Bank (the “Recovering
    Bank”) receives or recovers any amount owing to it by the Borrowers under this Agreement by direct payment, set-off
    or in any manner other than by payment through the Agent pursuant to clauses 6.1 or 6.9 (not being a payment received
    from a Transferee Bank or a sub-participant in such Bank’s Contribution or any other payment of an amount due to the
    Recovering Bank for its sole account pursuant to clauses 3.6, 5, 6.6, 11.1, 11.2, 12.1, or 12.2), the Recovering Bank
    shall, within two (2) Banking Days of such receipt or recovery (a “Relevant Receipt”) notify the Agent
    of the amount of the Relevant Receipt. If the Relevant Receipt exceeds the amount which the Recovering Bank would have received
    if the Relevant Receipt had been received by the Agent and distributed pursuant to clause 6.1 or 6.9 (as the case may
    be) then:
	 	 
	 	(a)	within two (2) Banking Days of demand by the Agent,
    the Recovering Bank shall pay to the Agent an amount equal (or equivalent) to the excess;
	 	 	 
	 	(b)	the Agent shall treat the excess amount so paid by
    the Recovering Bank as if it were a payment made by the Borrowers and shall distribute the same to the Banks (other than the
    Recovering Bank) in accordance with clause 6.9; and
	 	 	 
	 	(c)	as between the Borrowers and the Recovering Bank the
    excess amount so re-distributed shall be treated as not having been paid but the obligations of the Borrowers to the other
    Banks shall, to the extent of the amount so re-distributed to them, be treated as discharged.

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	13.3.2	If any part of the Relevant Receipt subsequently has to be wholly or partly refunded by the
    Recovering Bank (whether to a liquidator or otherwise) each Bank to which any part of such Relevant Receipt was so re-distributed
    shall on request from the Recovering Bank repay to the Recovering Bank such Bank’s pro-rata share of the amount which
    has to be refunded by the Recovering Bank.
	 	 
	13.3.3	Each Bank shall on request supply to the Agent such
    information as the Agent may from time to time request for the purposes of this clause 13.3.
	 	 
	13.3.4	Notwithstanding the foregoing provisions of this clause 13.3,
    no Recovering Bank shall be obliged to share any Relevant Receipt which it receives or recovers pursuant to legal proceedings
    taken by it to recover any sums owing to it under this Agreement with any other party which has a legal right to, but does
    not, either join in such proceedings or commence and diligently pursue separate proceedings to enforce its rights in the same
    or another court (unless the proceedings instituted by the Recovering Bank are instituted by it without prior notice having
    been given to such party through the Agent).
	 	 
	13.4	No release
	 	 
	 	For the avoidance of doubt it is hereby declared that failure by any Recovering Bank to comply
    with the provisions of clause 13.3 shall not release any other Recovering Bank from any of its obligations or liabilities
    under clause 13.3.
	 	 
	13.5	No charge
	 	 
	 	The provisions of this clause 13 shall not, and shall not be construed so as to, constitute
    a charge by a Bank over all or any part of a sum received or recovered by it in the circumstances mentioned in clause 13.3.
	 	 
	13.6	Further assurance
	 	 
	 	The Borrowers jointly and severally undertake with each Creditor that the Security Documents
    shall both at the date of execution and delivery thereof and so long as any moneys are owing under any of the Security Documents
    be valid and binding obligations of the respective parties thereto and rights of each Bank enforceable in accordance with
    their respective terms and that they will, at their expense, execute, sign, perfect and do, and will procure the execution,
    signing, perfecting and doing by each of the other Security Parties of, any and every such further assurance, document, act
    or thing as in the reasonable opinion of the Majority Banks may be necessary for perfecting the security contemplated or constituted
    by the Security Documents.
	 	 
	13.7	Conflicts
	 	 
	 	In the event of any conflict between this Agreement and any of the other Borrowers’ Security
    Documents (other than the Master Swap Agreement), the provisions of this Agreement shall prevail.
	 	 
	14	Operating Accounts
	 	 
	14.1	General
	 	 
	 	The Borrowers jointly and severally undertake with each Creditor that they will:
	 	 
	14.1.1	on or before the first Drawdown Date, open the Operating
    Accounts; and
	 	 
	14.1.2	procure that all moneys payable to each Borrower in
    respect of the Earnings of such Borrower’s Ship shall, unless and until the Agent (acting on the instructions of the
    Majority Banks) directs to the contrary pursuant to the provisions of the relevant Ship Security Documents, be paid to the
    relevant Operating Account, Provided however that if any of the moneys paid to any of the Operating Accounts are payable in
    a currency other than Dollars, the Account Bank shall (and the Borrowers hereby irrevocably and unconditionally instruct the
    Account Bank to) convert

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	 	such moneys into Dollars at the Account Bank’s spot rate of exchange at
    the relevant time for the purchase of Dollars with such currency and the term “spot rate of exchange” shall
    include any premium and costs of exchange payable in connection with the purchase of Dollars with such currency.
	 	 
	14.2	Operating Accounts: withdrawals
	 	 
	 	Moneys payable to each Operating Account in respect of Earnings of the relevant Ship shall
    be at the free disposal of each Borrower and each Borrower may withdraw moneys from its Operating Account.  However,
    if an Event of Default occurs and while the same is continuing, no Borrower shall be entitled to withdraw any moneys from
    its Operating Account for so long as any moneys are owing under the Security Documents.
	 	 
	14.3	Application of Operating Accounts
	 	 
	14.3.1	At any time after the occurrence of an Event of Default
    and while the same is continuing, the Agent may (and on the instructions of the Majority Banks shall), with notice to the
    Borrowers, instruct the Account Bank to apply all moneys then standing to the credit of an Operating Account, together with
    interest from time to time accruing or accrued thereon in the manner specified in clause 13.1.
	 	 
	14.4	Operating Account terms
	 	 
	 	Amounts standing to the credit of each Operating Account shall (unless otherwise agreed between
    the Account Bank and the Borrowers) bear interest at the rates from time to time offered by the Account Bank to its customers
    for Dollar deposits in comparable amounts for comparable periods. Interest shall accrue on each Operating Account from day
    to day and be calculated on the basis of actual days elapsed and a three hundred and sixty (360) day year and shall be credited
    to the relevant Operating Account at such times as the Account Bank and the Borrowers shall agree.
	 	 
	14.5	Pledging of Operating Accounts
	 	 
	 	The Operating Accounts and all amounts from time to time standing to the credit thereof shall
    be subject to the security constituted and the rights conferred by the Operating Account Assignments.
	 	 
	15	Assignment, transfer and lending
    office
	 	 
	15.1	Benefit and burden
	 	 
	 	This Agreement shall be binding upon, and enure for the benefit of, the Creditors and the
    Borrowers and their respective successors in title.
	 	 
	15.2	No assignment by Borrowers
	 	 
	 	No Borrower may assign or transfer any of its rights or obligations under this Agreement.
	 	 
	15.3	Transfers by Banks
	 	 
	 	Subject to the prior written consent of the Borrowers (which consent shall not be unreasonably
    withheld and the request for which shall be promptly responded to), any Bank (the “Transferor Bank”) may
    at any time, cause all or any part of its rights, benefits and/or obligations under this Agreement and the Security Documents
    to be transferred to any other bank or financial institution (a “Transferee Bank”) by delivering to the
    Agent a Transfer Certificate duly completed and duly executed by the Transferor Bank and the Transferee Bank.  No
    such transfer is binding on, or effective in relation to, the Borrowers or the Agent or the other Creditors unless (i) it
    is effected or evidenced by a Transfer Certificate which

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	 	complies with the provisions of this clause 15.3 and is signed by or on behalf
    of the Transferor Bank, the Transferee Bank and the Agent (on behalf of itself, the Borrowers and the other Creditors) and
    (ii) such transfer of rights under the other Security Documents has been effected and registered to the satisfaction of the
    Agent.  The Borrowers’ consent referred to above shall not be required in respect of a transfer if (1) the relevant
    Transferee Bank is a Related Company of the Transferor Bank and provided that the Borrowers would not pay additional amounts
    under Clause 6.6 and Clause 12.2 compared to the amounts payable by the Borrowers under such Clauses immediately before such
    transfer or (2) an Event of Default has occurred which is continuing at the time of the relevant transfer. Upon signature
    of any such Transfer Certificate by the Agent, which signature shall be effected as promptly as is practicable after such
    Transfer Certificate has been delivered to the Agent, and subject to the terms of such Transfer Certificate, such Transfer
    Certificate shall have effect as set out below.  
	 	 
	 	The following further provisions shall have effect in relation to any Transfer
    Certificate:
	 	 
	15.3.1	a Transfer Certificate may be in respect
    of a Bank’s rights in respect of all, or part of, its Commitment and shall be in respect of the same proportion of its
    Contribution;
	 	 
	15.3.2	a Transfer Certificate shall only be in
    respect of rights and obligations of the Transferor Bank and shall not transfer its rights and obligations as the Agent, or
    in any other capacity, as the case may be and such other rights and obligations may only be transferred in accordance with
    any applicable provisions of this Agreement;
	 	 
	15.3.3	a Transfer Certificate shall take effect
    in accordance with English law as follows:
	 	 
	 	(a)	to the extent specified in the Transfer Certificate,
    the Transferor Bank’s payment rights and all its other rights (other than those referred to in clause 15.3.2 above)
    under this Agreement are assigned to the Transferee Bank absolutely, free of any defects in the Transferor Bank’s title
    and of any rights or equities which the Borrowers had against the Transferor Bank;
	 	 	 
	 	(b)	the Transferor Bank’s obligations are discharged
    to the extent specified in the Transfer Certificate;
	 	 	 
	 	(c)	the Transferee Bank becomes a Bank with a Contribution,
    Commitment and Percentage of the amounts specified in the Transfer Certificate;
	 	 	 
	 	(d)	the Transferee Bank becomes bound by all the provisions
    of this Agreement and the Security Documents which are applicable to the Banks generally, including those about pro-rata sharing
    and the exclusion of liability on the part of, and the indemnification of, the Arranger, the Agent and the Security Agent
    and to the extent that the Transferee Bank becomes bound by those provisions, the Transferor Bank ceases to be bound by them;
	 	 	 
	 	(e)	an Advance or part of an Advance which the Transferee
    Bank makes after the Transfer Certificate comes into effect ranks in point of priority and security in the same way as it
    would have ranked had it been made by the Transferor Bank, assuming that any defects in the Transferor Bank’s title
    and any rights or equities of any Security Party against the Transferor Bank had not existed; and
	 	 	 
	 	(f)	the Transferee Bank becomes entitled to all the rights
    under this Agreement which are applicable to the Banks generally, including but not limited to those relating to the Majority
    Banks and those under clauses 3.6, 5 and 11.3 and to the extent that the Transferee Bank becomes entitled to such rights,
    the Transferor Bank ceases to be entitled to them;
	 	 	 
	15.3.4	the rights and equities of the Borrowers
    or of any other Security Party referred to above include, but are not limited to, any right of set-off and any other kind
    of cross-claim; and
	 	 
	15.3.5	the Borrowers, the Account Bank, the Security
    Agent, the Arranger, the Swap Provider and the Banks hereby irrevocably authorise and instruct the Agent to sign any such
    Transfer

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	 	Certificate on their behalf and undertake not to withdraw, revoke or qualify such authority
    or instruction at any time. Promptly upon its signature of any Transfer Certificate, the Agent shall notify the Borrowers,
    the other Banks, the Transferor Bank and the Transferee Bank.
	 	 
	15.4	Reliance on Transfer Certificate
	 	 
	15.4.1	The Agent shall be entitled to rely on any Transfer
    Certificate believed by it to be genuine and correct and to have been presented or signed by the persons by whom it purports
    to have been presented or signed, and shall not be liable to any of the parties to this Agreement and the Security Documents
    for the consequences of such reliance.
	 	 
	15.4.2	The Agent shall at all times during the continuation
    of this Agreement maintain a register in which it shall record the name, Commitments, Contributions, Percentages and administrative
    details (including the lending office) from time to time of the Banks holding a Transfer Certificate and the date at which
    the transfer referred to in such Transfer Certificate held by each Bank was transferred to such Bank, and the Agent shall
    make the said register available for inspection by any Bank or any Borrower during normal banking hours upon receipt by the
    Agent of reasonable prior notice requesting the Agent to do so.
	 	 
	15.4.3	The entries on the said register shall, in the absence
    of manifest error, be conclusive in determining the identities of the Commitments, Contributions, Percentages and the Transfer
    Certificates held by the Banks from time to time and the principal amounts of such Transfer Certificates and may be relied
    upon by the Agent and the other Security Parties for all purposes in connection with this Agreement and the Security Documents.
	 	 
	15.5	Transfer fees and expenses
	 	 
	 	If any Bank causes the transfer of all or any part of its rights, benefits and/or obligations
    under the Security Documents, the Transferor Bank shall pay to the Agent on demand all costs, fees and expenses (including,
    but not limited to, legal fees and expenses), and all value added tax thereon, verified by the Agent as having been incurred
    by it and any other Bank in connection with such transfer.
	 	 
	15.6	Documenting transfers
	 	 
	 	If any Bank assigns all or any part of its rights or transfers all or any part of its rights,
    benefits and/or obligations as provided in clause 15.3, the Borrowers jointly and severally undertake with each Creditor,
    immediately on being requested to do so by the Agent and at the cost of the Transferor Bank, to enter into, and procure that
    the other Security Parties shall (at the cost of the Transferor Bank) enter into, such documents as may be necessary or desirable
    to transfer to the Transferee Bank all or the relevant part of such Bank’s interest in the Security Documents and all
    relevant references in this Agreement to such Bank shall thereafter be construed as a reference to the Transferor Bank and/or
    its Transferee Bank (as the case may be) to the extent of their respective interests. Any costs, fees and expenses incurred
    in relation to any such transfer will not in any case create any liability whatsoever on the part of the Borrowers for payment
    of the same whether under the Security Documents or otherwise.
	 	 
	15.7	Sub-participation
	 	 
	 	A Bank may sub-participate to any other bank or financial institution all or any part of its
    rights and/or obligations under the Security Documents without the consent of, or notice to, the Borrowers.

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	15.8	Lending office
	 	 
	 	Each Bank shall lend through its office at the address
    specified in schedule 1 or, as the case may be, in any relevant Transfer Certificate, or through any other office of
    such Bank selected from time to time by it through which such Bank wishes to lend for the purposes of this Agreement Provided
    that the Borrowers would not pay additional amounts under clause 6.6 or clause 12.2 compared to the amounts payable
    by the Borrowers under such clauses immediately before such change of lending office. If the office through which a Bank is
    lending is changed pursuant to this clause 15.8, such Bank shall notify the Agent promptly of such change and the Agent
    shall notify the Borrowers, the Security Agent, the Arranger, the Account Bank, the Swap Provider and the other Banks.  
	 	 
	15.9	Disclosure of information by Banks
	 	 
	 	A Bank may, with the prior consent of the Agent in its discretion, disclose to a prospective
    assignee, transferee or to any other person who may propose entering into contractual relations with such Bank in relation
    to this Agreement such information about the Borrowers and/or the other Security Parties as such Bank shall consider appropriate
    Provided that the relevant Bank has entered into a confidentiality agreement with such person in connection with any such
    information.
	 	 
	15.10	No additional costs
	 	 
	 	If at the time of, or after, any assignment by a Bank of all or any part of its rights or
    benefits under this Agreement or any transfer by a Bank of any part of the rights, benefits and/or obligations under this
    Agreement, or any change in the office through which it lends for the purposes of this Agreement, the Borrowers or any of
    them would be obliged to pay to the assignee or the Transferee Bank or (in the case of a change of lending office) such Bank,
    under clauses 6.6 or 12.2 or any other term of a Security Document any sum in excess of the sum (if any) which it would have
    been obliged to pay to such Bank under the relevant clause in the absence of such assignment, transfer or change, the Borrowers
    shall not be obliged to pay that excess.
	 	 
	16	Agent and Security Agent
	 	 
	16.1	Appointment of the Agent
	 	 
	 	Each Bank and the Swap Provider irrevocably appoints the Agent as its agent for the purposes
    of this Agreement and such of the Security Documents to which it may be appropriate for the Agent to be party. By virtue of
    such appointment, each of the Banks and the Swap Provider hereby authorises the Agent:
	 	 
	16.1.1	to execute such documents as may be approved by the
    Majority Banks for execution by the Agent; and
	 	 
	16.1.2	(whether or not by or through employees or agents)
    to take such action on such Bank’s, and the Swap Provider’s behalf and to exercise such rights, remedies, powers
    and discretions as are specifically delegated to the Agent by this Agreement and/or any other Security Document, together
    with such powers and discretions as are reasonably incidental thereto.
	 	 
	16.2	Agent’s actions
	 	 
	 	Any action taken by the Agent under or in relation to this Agreement or any of the other Security
    Documents whether with requisite authority or on the basis of appropriate instructions, received from the Majority Banks and/or
    the Swap Provider (or as otherwise duly authorised) shall be binding on all the Banks and the Swap Provider.
	 	 
	16.3	Agent’s duties
	 	 
	 	The Agent shall:

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	16.3.1	promptly notify each Bank and the Swap Provider of the contents of each notice, certificate
    or other document received by it from the Borrowers under or pursuant to clauses 8.1.1, 8.1.5 and 8.1.7; and
	 	 
	16.3.2	(subject to the other provisions of this clause 16)
    take (or instruct the Security Agent to take) such action or, as the case may be, refrain from taking (or authorise the Security
    Agent to refrain from taking) such action with respect to the exercise of any of its rights, remedies, powers and discretions
    as agent, as the Majority Banks may direct.
	 	 
	16.4	Agent’s rights
	 	 
	 	The Agent may:
	 	 
	16.4.1	in the exercise of any right, remedy, power or discretion
    in relation to any matter, or in any context, not expressly provided for by this Agreement or any of the other Security Documents,
    act or, as the case may be, refrain from acting (or authorise the Security Agent to act or refrain from acting) in accordance
    with the instructions of the Banks and/or the Swap Provider, and shall be fully protected in so doing;
	 	 
	16.4.2	unless and until it shall have received directions
    from the Majority Banks, take such action or, as the case may be, refrain from taking such action (or authorise the Security
    Agent to take or refrain from taking such action) in respect of a Default of which the Agent has actual knowledge as it shall
    deem advisable in the best interests of the Banks and the Swap Provider (but shall not be obliged to do so);
	 	 
	16.4.3	refrain from acting (or authorise the Security Agent
    to refrain from acting) in accordance with any instructions of the Banks and/or the Swap Provider to institute any legal proceedings
    arising out of or in connection with this Agreement or any of the other Security Documents until it and/or the Security Agent
    has been indemnified and/or secured to its satisfaction against any and all costs, expenses or liabilities (including legal
    fees) which it would or might incur as a result;
	 	 
	16.4.4	deem and treat (i) each Bank as the person entitled
    to the benefit of the Contribution of such Bank for all purposes of this Agreement unless and until a notice shall have been
    filed with the Agent pursuant to clause 15.3 and shall have become effective, and (ii) the office set opposite the name
    of each of the Banks in schedule 1 as such Bank’s lending office unless and until a written notice of change of
    lending office shall have been received by the Agent and the Agent may act upon any such notice unless and until the same
    is superseded by a further such notice;
	 	 
	16.4.5	rely as to matters of fact which might reasonably be
    expected to be within the knowledge of any Security Party upon a certificate signed by any director or officer of the relevant
    Security Party on behalf of the relevant Security Party; and
	 	 
	16.4.6	do anything which is in its opinion necessary or desirable
    to comply with any law or regulation in any jurisdiction.
	 	 
	16.5	No liability of the Agent
	 	 
	 	Neither the Agent nor any of its employees and agents shall:
	 	 
	16.5.1	be obliged to make any enquiry as to the use of any
    of the proceeds of the Loan unless (in the case of the Agent) so required in writing by a Bank, in which case the Agent shall
    promptly make the appropriate request to the Borrowers; or
	 	 
	16.5.2	be obliged to make any enquiry as to any breach or
    default by the Borrowers or any of them or any other Security Party in the performance or observance of any of the provisions
    of this Agreement or any of the other Security Documents or as to the existence of a Default unless (in the case of the Agent)
    the Agent has actual knowledge thereof or has been notified in writing thereof by a Bank or the Swap Provider, in which case
    the Agent shall promptly notify the Banks and the Swap Provider of the relevant event or circumstance; or

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	16.5.3	be obliged to enquire whether or not any representation or warranty made by the Borrowers
    or any of them or any other Security Party pursuant to this Agreement or any of the other Security Documents is true; or
	 	 
	16.5.4	be obliged to do anything (including, without limitation,
    disclosing any document or information) which would, or might in its opinion, be contrary to any law or regulation or be a
    breach of any duty of confidentiality or otherwise be actionable or render it liable to any person; or
	 	 
	16.5.5	be obliged to account to any Bank or the Swap Provider
    for any sum or the profit element of any sum received by it for its own account; or
	 	 
	16.5.6	be obliged to institute any legal proceedings arising
    out of or in connection with this Agreement or any of the other Security Documents other than on the instructions of the Majority
    Banks; or
	 	 
	16.5.7	be liable to any Bank or the Swap Provider for any
    action taken or omitted under or in connection with this Agreement or any of the other Security Documents unless caused by
    its gross negligence or wilful misconduct.
	 	 
	 	For the purposes of this clause 16, the Agent shall not be treated as having actual knowledge
    of any matter of which the corporate finance or any other division outside the agency or loan administration department of
    the Agent or the person for the time being acting as the Agent may become aware in the context of corporate finance, advisory
    or lending activities from time to time undertaken by the Agent for any Security Party or any other person which may be a
    trade competitor of any Security Party or may otherwise have commercial interests similar to those of any Security Party.
	 	 
	16.6	Non-reliance on Agent
	 	 
	 	Each Bank and the Swap Provider acknowledges that it has not relied on any statement, opinion,
    forecast or other representation made by the Agent to induce it to enter into this Agreement or any of the other Security
    Documents and that it has made and will continue to make, without reliance on the Agent and based on such documents as it
    considers appropriate, its own appraisal of the creditworthiness of the Security Parties and its own independent investigation
    of the financial condition, prospects and affairs of the Security Parties in connection with the making and continuation of
    such Bank’s Commitment or Contribution under this Agreement.  The Agent shall not have any duty or responsibility,
    either initially or on a continuing basis, to provide any Bank or the Swap Provider with any credit or other information with
    respect to any Security Party whether coming into its possession before the making of the Loan or at any time or times thereafter
    other than as provided in clause 16.3.1.
	 	 
	16.7	No responsibility on Agent for Borrower’s performance
	 	 
	 	The Agent shall not have any responsibility or liability to any Bank or the Swap Provider:
	 	 
	16.7.1	on account of the failure of any Security Party to
    perform its obligations under any of the Security Documents; or
	 	 
	16.7.2	for the financial condition of any Security Party;
    or
	 	 
	16.7.3	for the completeness or accuracy of any statements,
    representations or warranties in any of the Security Documents or any document delivered under any of the Security Documents;
    or
	 	 
	16.7.4	for the execution, effectiveness, adequacy, genuineness,
    validity, enforceability or admissibility in evidence of any of the Security Documents or of any certificate, report or other
    document executed or delivered under any of the Security Documents; or

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	16.7.5	to investigate or make any enquiry into the title of the Borrowers or any other
    Security Party to the Ships or any other security or any part thereof; or
	 	 
	16.7.6	for the failure to register any of the
    Security Documents with any official or regulatory body or office or elsewhere; or
	 	 
	16.7.7	for taking or omitting to take any other
    action under or in relation to any of the Security Documents or any aspect of any of the Security Documents; or
	 	 
	16.7.8	on account of the failure of the Security
    Agent to perform or discharge any of its duties or obligations under the Security Documents; or
	 	 
	16.7.9	otherwise in connection with this Agreement
    or its negotiation or for acting (or, as the case may be, refraining from acting) in accordance with the instructions of the
    Majority Banks or the Swap Provider.
	 	 
	16.8	Reliance on documents and professional advice
	 	 
	 	The Agent shall be entitled to rely on any communication, instrument or document
    believed by it to be genuine and correct and to have been signed or sent by the proper person and shall be entitled to rely
    as to legal or other professional matters on opinions and statements of any legal or other professional advisers selected
    or approved by it (including those in the Agent’s employment).
	 	 
	16.9	Other dealings
	 	 
	 	The Agent may, without any liability to account to the Banks or the Swap Provider,
    accept deposits from, lend money to, and generally engage in any kind of banking or other business with, and provide advisory
    or other services to, any Security Party or any of its Related Companies or any of the Banks or the Swap Provider as if it
    were not the Agent.
	 	 
	16.10	Rights of Agent as Bank; no partnership
	 	 
	 	With respect to its own Commitment and Contribution the Agent shall have the same
    rights and powers under the Security Documents as any other Bank and may exercise the same as though it were not performing
    the duties and functions delegated to it under this Agreement and the term “Banks” shall, unless the context
    clearly otherwise indicates, include the Agent in its individual capacity as a Bank. This Agreement shall not and shall not
    be construed so as to constitute a partnership between the parties or any of them.
	 	 
	16.11	Amendments and waivers
	 	 
	16.11.1	Subject to clauses 16.11.3 and 16.11.4
    the Agent may, with the consent of the Majority Banks (or if and to the extent expressly authorised by the other provisions
    of any of the Security Documents) and, if so instructed by the Majority Banks, the Agent shall:
	 	 
	 	(a)	agree (or authorise the Security Agent to agree) amendments
    or modifications to any of the Security Documents with the Borrowers and/or any other Security Party; and/or
	 	 	 
	 	(b)	vary or waive breaches of, or defaults under, or otherwise
    excuse performance of, any provision of any of the other Security Documents by the Borrowers and/or any other Security Party
    (or authorise the Security Agent to do so).
	 	 	 
	 	Any such action so authorised and effected by the Agent shall be documented in
    such manner as the Agent shall (with the approval of the Majority Banks) determine, shall be promptly notified to the Banks
    and the Swap Provider by the Agent and (without prejudice to the generality of clause 16.2) shall be binding on all the
    Banks and the Swap Provider.
	 	 
	16.11.2	Notwithstanding any provision to the contrary
    in this Agreement or any other Security Documents, none of the matters referred to in clause 16.11.1 nor any other matter
    or action whatsoever in relation to this Agreement, the Security Documents and the

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	 	transactions contemplated thereby, shall require or be deemed to require the instructions
    of all the Banks. In particular, even if a matter or action is interpreted or found to require action by all the Banks (whether
    for practical reasons (e.g. release of any Security Documents which are in the name of all Banks) or otherwise), any Banks
    dissenting with the instructions or decision of the Majority Banks shall take such action or refrain from taking such action,
    as required and instructed by the Majority Banks provided that the relevant instructions and/or decision of the Majority Banks
    apply to all the Banks (and not individual Banks).
	 	 
	16.11.3	The Agent shall be entitled (but not obliged)
    to (or to instruct the Security Agent to) make or grant any amendment, waiver or consent in relation to this Agreement or
    any other Security Documents, without obtaining the consent of the Majority Banks if such matter relates solely to:
	 	 
	 	(a)	the signing of Transfer Certificates;
	 	 	 
	 	(b)	amendments or waivers that the Agent reasonably believes
    to be of a purely mechanical or clerical nature;
	 	 	 
	 	(c)	the correction of manifest errors; or
	 	 	 
	 	(d)	decisions, consents, amendments, directions, waivers
    or any right that the Security Documents expressly state may be made by the Agent or the Security Agent.  
	 	 	 
	 	The Agent shall promptly notify the other parties to this Agreement of any amendment
    or waiver effected by it under this clause 16.11.3.
	 	 
	16.11.4	An amendment or waiver which relates to
    the rights or obligations of the Agent and the Security Agent may not be effected without the consent of the Agent and the
    Security Agent.
	 	 
	16.12	Reimbursement and indemnity by Banks
	 	 
	 	Each Bank shall reimburse the Agent (rateably, if prior to the first drawdown,
    in accordance with such Bank’s aggregate Commitment or, if after the first drawdown, in accordance with such Bank’s
    Contribution), to the extent that the Agent is not reimbursed by the Borrowers, for the costs, charges and expenses incurred
    by the Agent which are expressed to be payable by the Borrowers under clause 5.1 including (in each case) the fees and
    expenses of legal or other professional advisers. Each Bank shall on demand indemnify the Agent (rateably, if prior to the
    first drawdown, in accordance with such Bank’s aggregate Commitment or, if after the first drawdown, in accordance with
    such Bank’s Contribution) against all liabilities, damages, costs and claims whatsoever incurred by the Agent in connection
    with any of the Security Documents or the performance of its duties under any of the Security Documents or any action taken
    or omitted by the Agent under any of the Security Documents, unless such liabilities, damages, costs or claims arise from
    the Agent’s own gross negligence or wilful misconduct.
	 	 
	16.13	Retirement of Agent
	 	 
	16.13.1	The Agent may, having given to the Borrowers
    and each of the Banks and the Swap Provider not less than fifteen (15) days’ notice of its intention to do so, retire
    from its appointment as Agent under this Agreement, provided that no such retirement shall take effect unless there has been
    appointed by the Banks and the Swap Provider as a successor agent:
	 	 
	 	(a)	a reputable and experienced bank nominated by the Borrowers
    and accepted by the Majority Banks in their reasonable discretion or, failing such nomination or acceptance,

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	 	(b)	a Related Company of the Agent nominated by the Agent which the Banks and the Swap Provider
    hereby irrevocably and unconditionally agree to appoint or, failing such nomination,
	 	 	 
	 	(c)	a Bank nominated by the Majority Banks or, failing
    such a nomination,
	 	 	 
	 	(d)	any reputable and experienced bank or financial institution
    nominated by the retiring Agent.
	 	 	 
	 	Any corporation into which the retiring Agent may be merged or converted or any
    corporation with which the Agent may be consolidated or any corporation resulting from any merger, conversion, amalgamation,
    consolidation or other reorganisation to which the Agent shall be a party shall, to the extent permitted by applicable law,
    be the successor Agent under this Agreement and the other Security Documents without the execution or filing of any document
    or any further act on the part of any of the parties to this Agreement and the other Security Documents save that notice of
    any such merger, conversion, amalgamation, consolidation or other reorganisation shall forthwith be given to each Security
    Party, the Banks and the Swap Provider. Prior to any such successor being appointed the Agent agrees to consult with the Borrowers
    as to the identity of the proposed successor.
	 	 
	16.13.2	Upon any such successor as aforesaid being
    appointed, the retiring Agent shall be discharged from any further obligation under the Security Documents (but shall continue
    to have the benefit of this clause 16 in respect of any action it has taken or refrained from taking prior to such discharge)
    and its successor and each of the other parties to this Agreement shall have the same rights and obligations among themselves
    as they would have had if such successor had been a party to this Agreement in place of the retiring Agent. The retiring Agent
    shall (at its own expense) provide its successor with copies of such of its records as its successor reasonably requires to
    carry out its functions under the Security Documents.
	 	 
	16.14	Appointment and retirement of Security Agent
	 	 
	16.14.1	Appointment
	 	 
	 	Each of the Banks, the Agent, the Arranger and the Swap Provider irrevocably appoints
    the Security Agent as its security agent and trustee for the purposes of this Agreement and the other Security Documents,
    in each case on the terms set out in this Agreement. By virtue of such appointment, each of the Banks, the Agent and the Swap
    Provider hereby authorises the Security Agent (whether or not by or through employees or agents) to take such action on its
    behalf and to exercise such rights, remedies, powers and discretions as are specifically delegated to the other Security Agent
    by this Agreement and/or the other Security Documents, together with such powers and discretions as are reasonably incidental
    thereto.
	 	 
	16.14.2	Retirement
	 	 
	 	Without prejudice to clause 16.13, the Security Agent may, having given to the
    Borrowers, the Agent, each of the Banks and the Swap Provider not less than fifteen (15) days’ notice of its intention
    to do so, retire from its appointment as Security Agent under this Agreement and any Trust Deed, provided that no such retirement
    shall take effect unless there has been appointed by the Banks, the Agent and the Swap Provider as a successor security agent
    and trustee:
	 	 
	 	(a)	a reputable and experienced bank nominated by the Borrowers
    and accepted by the Majority Banks in their reasonable discretion or, failing such nomination or acceptance,
	 	 	 
	 	(b)	a Related Company of the Security Agent nominated by
    the Security Agent which the Banks, the Agent, the Arranger and the Swap Provider hereby irrevocably and unconditionally agree
    to appoint or, failing such nomination,

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	 	(c)	a bank or trust corporation nominated by the Majority Banks or, failing such a nomination,
	 	 	 
	 	(d)	any bank or trust corporation nominated by the retiring
    Security Agent,
	 	 	 
	 	and, in any case, such successor security agent and trustee shall have duly accepted
    such appointment by delivering to the Agent (i) written confirmation (in a form acceptable to the Agent) of such acceptance
    agreeing to be bound by this Agreement in the capacity of Security Agent as if it had been an original party to this Agreement
    and (ii) a duly executed Trust Deed and (iii) such successor security agent and trustee shall have duly entered into, whether
    with the retiring Security Agent and/or with the Borrowers and/or with the Creditors or with any of them, such documents in
    connection with the Security Documents as the Agent shall require in its absolute discretion.
	 	 
	 	Any corporation into which the retiring Security Agent may be merged or converted
    or any corporation with which the Security Agent may be consolidated or any corporation resulting from any merger, conversion,
    amalgamation, consolidation or other reorganisation to which the Security Agent shall be a party shall, to the extent permitted
    by applicable law, be the successor Security Agent under this Agreement, any Trust Deed and the other Security Documents without
    the execution or filing of any document or any further act on the part of any of the parties to this Agreement, any Trust
    Deed and the other Security Documents save that notice of any such merger, conversion, amalgamation, consolidation or other
    reorganisation shall forthwith be given to each Security Party and the Banks and the Swap Provider. Prior to any such successor
    being appointed, the Security Agent agrees to consult with the Borrowers as to the identity of the proposed successor.
	 	 
	 	Upon any such successor as aforesaid being appointed, the retiring Security Agent
    shall be discharged from any further obligation under the Security Documents (but shall continue to have the benefit of this
    clause 16 in respect of any action it has taken or refrained from taking prior to such discharge) and its successor and
    each of the other parties to this Agreement shall have the same rights and obligations among themselves as they would have
    had if such successor had been a party to this Agreement in place of the retiring Security Agent. The retiring Security Agent
    shall (at the expense of the Borrowers) provide its successor with copies of such of its records as its successor reasonably
    requires to carry out its functions under the Security Documents.
	 	 
	16.15	Powers and duties of the Security Agent
	 	 
	16.15.1	The Security Agent shall have no duties,
    obligations or liabilities to any of the Banks, the Swap Provider, the Arranger and the Agent beyond those expressly stated
    in any of the Security Documents.  Each of the Agent, the Arranger, the Swap Provider and the Banks hereby authorises
    the Security Agent to enter into and execute:
	 	 
	 	(a)	each of the Security Documents to which the Security
    Agent is or is intended to be a party; and
	 	 	 
	 	(b)	any and all such other Security Documents as may be
    approved by the Agent in writing (acting on the instructions of the Majority Banks) for entry into by the Security Agent,
	 	 	 
	 	and, in each and every case, to hold any and all security thereby created upon
    trust for the Banks and the Agent in the manner contemplated by this Agreement.
	 	 
	16.15.2	Subject to clause 16.15.3 the Security
    Agent may, with the prior consent of the Majority Banks communicated in writing by the Agent, concur with any of the Security
    Parties to:
	 	 
	 	(a)	amend, modify or otherwise vary any provision of the
    Security Documents to which the Security Agent is or is intended to be a party; or

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	 	(b)	waive breaches of, or defaults under, or otherwise excuse performance of, any provision of
    the Security Documents to which the Security Agent is or is intended to be a party.
	 	 	 
	 	Any such action so authorised and effected by the Security Agent shall be promptly
    notified to the Banks, the Swap Provider, the Arranger and the Agent by the Security Agent and shall be binding on the other
    Creditors.
	 	 
	16.15.3	The Security Agent shall (subject to the
    other provisions of this clause 16) take such action or, as the case may be, refrain from taking such action, with respect
    to any of its rights, powers and discretions as security agent and trustee, as the Agent may direct.  Subject as
    provided in the foregoing provisions of this clause, unless and until the Security Agent shall have received such instructions
    from the Agent, the Security Agent may, but shall not be obliged to, take (or refrain from taking) such action under or pursuant
    to the Security Documents referred to in clause 16.14 as the Security Agent shall deem advisable in the best interests
    of the Creditors provided that (for the avoidance of doubt), to the extent that this clause might otherwise be construed
    as authorising the Security Agent to take, or refrain from taking, any action of the nature referred to in clause 16.15.2.
	 	 
	16.15.4	None of the Banks nor the Agent nor the
    Arranger nor the Swap Provider shall have any independent power to enforce any of the Security Documents referred to in clause 16.15.1
    or to exercise any rights, discretions or powers or to grant any consents or releases under or pursuant to such Security Documents
    or any of them or otherwise have direct recourse to the security and/or guarantees constituted by such Security Documents
    or any of them except through the Security Agent.
	 	 
	16.15.5	For the purpose of this clause 16,
    the Security Agent may, rely and act in reliance upon any information from time to time furnished to the Security Agent by
    the Agent (whether pursuant to clause 16.15.6 or otherwise) unless and until the same is superseded by further such information,
    so that the Security Agent shall have no liability or responsibility to any party as a consequence of placing reliance on
    and acting in reliance upon any such information unless the Security Agent has actual knowledge that such information is inaccurate
    or incorrect.
	 	 
	16.15.6	Without prejudice to the foregoing each
    of the Agent, the Swap Provider, the Arranger and the Banks (whether directly or through the Agent) shall provide the Security
    Agent with such written information as it may reasonably require for the purpose of carrying out its duties and obligations
    under the Security Documents referred to in clause 16.15.1.
	 	 
	16.15.7	Each Bank shall reimburse the Security
    Agent (rateably in accordance with such Bank’s Commitment or, after the first drawdown, Contribution), to the extent
    that the Security Agent is not reimbursed by the Borrowers, for the costs, charges and expenses incurred by the Security Agent
    which are expressed to be payable by the Borrowers under clause 5.2 including (in each case) the fees and expenses of legal
    or other professional advisers. Each Bank shall on demand indemnify the Security Agent (rateably in accordance with such Bank’s
    Commitment or, after the first drawdown, Contribution) against all liabilities, damages, costs and claims whatsoever incurred
    by the Security Agent in connection with any of the Security Documents or the performance of its duties under any of the Security
    Documents or any action taken or omitted by the Security Agent under any of the Security Documents, unless such liabilities,
    damages, costs or claims arise from the Security Agent’s own gross negligence or wilful misconduct.

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	16.16	Trust provisions

 

	16.16.1	In its capacity as trustee in relation to the Security Documents specified in clause 16.15.1, the
Security Agent shall, without prejudice to any of the powers, discretions and immunities conferred upon trustees by law (and to
the extent not inconsistent with the provisions of any of those Security Documents), have all the same powers and discretions as
a natural person acting as the beneficial owner of such property and/or as are conferred upon the Security Agent by any of those
Security Documents.

 

	16.16.2	It is expressly declared that, in its capacity as trustee in relation to the Security Documents
specified in clause 16.15.1, the Security Agent shall be entitled to invest moneys forming part of the security and which, in the
opinion of the Security Agent, may not be paid out promptly following receipt in the name or under the control of the Security
Agent in any of the investments for the time being authorised by law for the investment by trustees of trust moneys or in any other
property or investments whether similar to the aforesaid or not or by placing the same on deposit in the name or under the control
of the Security Agent as the Security Agent may think fit without being under any duty to diversify its investments and the Security
Agent may at any time vary or transpose any such property or investments for or into any others of a like nature and shall not
be responsible for any loss due to depreciation in value or otherwise of such property or investments. Any investment of any part
or all of the security may, at the discretion of the Security Agent, be made or retained in the names of nominees.

 

	16.17	Independent action by Creditors

 

None of the Creditors shall
enforce, exercise any rights, remedies or powers or grant any consents or releases under or pursuant to, or otherwise have a direct
recourse to the security and/or guarantees constituted by any of the Security Documents without the prior written consent of the
Majority Banks but, Provided such consent has been obtained, it shall not be necessary for any other Creditor to be joined as an
additional party in any proceedings for this purpose.

 

	16.18	Common Agent and Security Agent

 

The Agent and the Security Agent
have entered into the Security Documents in their separate capacities (a) as agent for the Banks, the Arranger and the Swap Provider
under and pursuant to this Agreement (in the case of the Agent) and (b) as security agent and trustee for the Banks, the Agent,
the Arranger and the Swap Provider under and pursuant to this Agreement, to hold the guarantees and/or security created by the
Security Documents specified in clause 16.15.1 on the terms set out in such Security Documents (in the case of the Security Agent).
However, from time to time the Agent and the Security Agent may be the same entity. When the Agent and the Security Agent are the
same entity and any Security Document provides for the Agent to communicate with or provide instructions to the Security Agent
(and vice versa), it will not be necessary for there to be any such formal communications or instructions on those occasions.

 

	16.19	Co-operation to achieve agreed priorities of application

 

The Banks, the Swap Provider,
the Arranger and the Agent shall co-operate with each other and with the Security Agent and any receiver under the Security Documents
in realising the property and assets subject to the Security Documents and in ensuring that the net proceeds realised under the
Security Documents after deduction of the expenses of realisation are applied in accordance with clause 13.1.

 

	16.20	Prompt distribution of proceeds

 

Moneys received by any of the
Creditors (whether from a receiver or otherwise) pursuant to the exercise of (or otherwise by virtue of the existence of) any rights
and powers under or pursuant to any of the Security Documents shall (after providing for all costs, charges, expenses and liabilities
and other payments ranking in priority) be paid to the Agent for

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distribution (in the case of moneys so received by any of the
Creditors other than the Agent or the Security Agent), and shall be distributed by the Agent or, as the case may be, the Security
Agent (in the case of moneys so received by the Agent or, as the case may be, the Security Agent), in each case in accordance with
clause 13.1. The Agent or, as the case may be, the Security Agent shall make each such application and/or distribution as soon
as is practicable after the relevant moneys are received by, or otherwise become available to, the Agent or, as the case may be,
the Security Agent save that (without prejudice to any other provision contained in any of the Security Documents) the Agent or,
as the case may be, the Security Agent (acting on the instructions of the Majority Banks) or any receiver may credit any moneys
received by it to a suspense account for so long and in such manner as the Agent or such receiver may from time to time determine
with a view to preserving the rights of the Agent and/or the Security Agent and/or the Arranger and/or the Account Bank and/or
the Banks and/or the Swap Provider or any of them to prove for the whole of their respective claims against the Borrowers or any
other person liable.

 

	17	Notices
                                                                        and other matters

 

	17.1	Notices

 

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

 

	17.1.1	be in writing delivered personally or by first-class prepaid letter (airmail if available) or facsimile
transmission or other means of telecommunication in permanent written form;

 

	17.1.2	be deemed to have been received, subject as otherwise provided in the relevant Security Document,
in the case of a letter, when delivered personally or three (3) days after it has been put in to the post and, in the case of a
facsimile transmission or other means of telecommunication in permanent written form, at the time of despatch (provided that if
the date of despatch is not a business day in the country of the addressee or if the time of despatch is after the close of business
in the country of the addressee it shall be deemed to have been received at the opening of business on the next such business day);
and

 

	17.1.3	be sent (subject to clause 17.2 herein):

 

		(a)	if to the Borrowers or any of them at:

 

c/o Costamare Inc.

c/o Costamare Shipping Company
S.A.

60 Zephyrou Street & Syngrou
Avenue

Athens 175 64

Greece

 

	 	Fax no:	+30 210 9409 051
	 	Attn:	CFO (of Costamare Inc.)

 

		(b)	if to the Agent, the Arranger, the Security Agent or the Account Bank, at:

 

DnB NOR Bank ASA

20 St. Dunstan’s Hill

London EC3R 8HY

England

 

		Fax No:	+44 207 626 5956
		Attention:	Shipping, Offshore and Logistics

 

		(c)	if to a Bank, to its address or fax number specified in schedule 1 or, in the case of a Transferee
Bank, in any relevant Transfer Certificate; or

 

		(d)	if to the Swap Provider, to its address or fax number specified in paragraph (a) of Part 4 of the
schedule to the Master Swap Agreement,

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or to such other address and/or
numbers as is notified by one party to the other parties under this Agreement.

 

	17.2	Notices through the Agent

 

Every notice, request, demand
or other communication under this Agreement or (unless otherwise provided therein) any other Security Document to be given by the
Borrowers or any of them to any other party (other than the Swap Provider), shall be given to the Agent for onward transmission
as appropriate and if such notice, request, demand or other communication is to be given to the Borrowers it shall (except otherwise
provided in the Security Documents) be given to the Agent for onward transmission to the Borrowers.

 

	17.3	No implied waivers, remedies cumulative

 

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

 

	17.4	English language

 

All certificates, instruments
and other documents to be delivered under or supplied in connection with any of the Security Documents shall be in the English
language or shall be accompanied by a certified English translation upon which the Creditors or any of them shall be entitled to
rely.

 

	17.5	Borrowers’ obligations

 

	17.5.1	Joint and several

 

Notwithstanding anything to the
contrary contained in any of the Security Documents, the agreements, obligations and liabilities of the Borrowers herein contained
are joint and several and shall be construed accordingly. Each of the Borrowers agrees and consents to be bound by the Security
Documents to which it is, or is to be, a party notwithstanding that the other Borrowers which are intended to sign or to be bound
may not do so or be effectually bound and notwithstanding that any of the Security Documents may be invalid or unenforceable against
the other Borrowers, whether or not the deficiency is known to any of the Creditors.

 

	17.5.2	Borrowers as principal debtors

 

Each Borrower acknowledges and
confirms that it is a principal and original debtor in respect of all amounts which may become payable by the Borrowers in accordance
with the terms of this Agreement or any of the other Security Documents and agrees that the Creditors may also continue to treat
it as such, whether or not any Creditor is or becomes aware that such Borrower is or has become a surety for the other Borrowers.

 

	17.5.3	Indemnity

 

The Borrowers hereby agree jointly
and severally to keep the Creditors fully indemnified on demand against all damages, losses, costs and expenses arising from any
failure of any Borrower to perform or discharge any purported obligation or liability of the other Borrowers which would have been
the subject of this Agreement or any other Security Document had it been valid and enforceable and which is not or ceases to be
valid and enforceable against the other Borrowers on any ground whatsoever, whether or not known to a Creditor including, without
limitation, any irregular exercise or absence of any corporate power or lack of authority of, or breach of duty by, any person
purporting to act on behalf of the other Borrowers (or any legal or other limitation, whether under the Limitation Acts or otherwise
or any disability or death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution, winding up, administration,
receivership, amalgamation, reconstruction or any 

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other incapacity of any person whatsoever (including, in the case of a partnership,
a termination or change in the composition of the partnership) or any change of name or style or constitution of any Security Party)).

 

	17.5.4	Liability unconditional

 

None of the obligations or liabilities
of the Borrowers under this Agreement or any other Security Document shall be discharged or reduced by reason of:

 

		(a)	the death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution, winding-up, administration,
receivership, amalgamation, reconstruction or other incapacity of any person whatsoever (including, in the case of a partnership,
a termination or change in the composition of the partnership) or any change of name or style or constitution of any Borrower or
any other person liable;

 

	 	(b)	the Agent or the Security Agent (acting on the instructions of the Majority Banks) granting any
time, indulgence or concession to, or compounding with, discharging, releasing or varying the liability of, any Borrower or any
other person liable or renewing, determining, varying or increasing any accommodation, facility or transaction or otherwise dealing
with the same in any manner whatsoever or concurring in, accepting, varying any compromise, arrangement or settlement or omitting
to claim or enforce payment from any Borrower or any other person liable; or

 

		(c)	anything done or omitted which but for this provision might operate to exonerate the Borrowers
or any of them.

 

	17.5.5	Recourse to other security

 

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

 

	17.5.6	Waiver of Borrowers’ rights

 

Each Borrower agrees with each
Creditor that, from the date of this Agreement and so long as any moneys are owing under any of the Security Documents and while
all or any part of the Total Commitment remains outstanding, it will not, without the prior written consent of the Agent (acting
on the instructions of the Majority Banks):

 

		(a)	exercise any right of subrogation, reimbursement and indemnity against the other Borrowers or any
other person liable under the Security Documents;

 

		(b)	demand or accept repayment in whole or in part of any Indebtedness now or hereafter due to such
Borrower from the other Borrowers or from any other person liable or demand or accept any guarantee, indemnity or other assurance
against financial loss or any document or instrument created or evidencing an Encumbrance in respect of the same or dispose of
the same;

 

		(c)	take any steps to enforce any right against the other Borrowers or any other person liable in respect
of any such moneys; or

 

		(d)	claim any set-off or counterclaim against the other Borrowers or any other person liable or claiming
or proving in competition with any Creditor in the liquidation of the other Borrowers or any other person liable or have the benefit
of, or share in, any payment from or composition with, the other Borrowers or any other person liable or any other Security Document
now or hereafter held by any Creditor for any moneys owing under this Agreement or for the obligations or liabilities of any other
person 

    	75

    	

    

	 	 	liable but so that, if so directed by the Agent, it will prove for the whole or any part of its claim in the liquidation
of the other Borrowers or other person liable on terms that the benefit of such proof and all money received by it in respect thereof
shall be held on trust for the Banks and applied in or towards discharge of any moneys owing under this Agreement in such manner
as the Agent (acting on the instructions of the Majority Banks) shall deem appropriate.

 

	17.6	Counterparts

 

This Agreement may be executed in any number
of counterparts each of which shall be original but which shall together constitute the same instrument.

 

	18	Governing
                                                                        law and jurisdiction

 

	18.1	Law

 

This Agreement and any non-contractual
obligations connected with it are governed by, and shall be construed in accordance with, English law.

 

	18.2	Submission to jurisdiction

 

The Borrowers jointly and severally
agree, for the benefit of each Creditor, that any legal action or proceedings arising out of or in connection with this Agreement
(including any non-contractual obligations connected with this Agreement) against the Borrowers or any of them or any of their
assets may be brought in the English courts. Each of the Borrowers irrevocably and unconditionally submits to the jurisdiction
of such courts and irrevocably designates, appoints and empowers Mr Richard Coleman c/o H. Clarkson and Co. Ltd. at present of
3 Lower Thames Street, London EC3R 6HE, England to receive, for it and on its behalf, service of process issued out of the courts
of England in any such legal action or proceedings and, in the event that such individual passes away or cannot be found, each
of the Borrowers hereby undertakes (and each of the Borrowers hereby irrevocably and unconditionally authorises the Agent (for
and on behalf of each Creditor) to do so) to designate, appoint and empower on its behalf, Messrs Saville & Co. at their then
principal place of business in London as substitute process agents of Mr Richard Coleman for the purposes of this clause. The submission
to such jurisdiction shall not (and shall not be construed so as to) limit the right of a Creditor to take proceedings against
the Borrowers or any of them 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 the Borrowers
or any of them may have against any Creditor arising out of or in connection with this Agreement (including any non-contractual
obligations connected with this Agreement).

 

	18.3	Contracts (Rights of Third Parties) Act 1999

 

No term of this Agreement is
enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

 

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

    	76

    	

    

Schedule 1

The Banks and their Commitments

 

	Name	 	Lending office and contact 

details	 	Commitment

 Sub-Tranche A 
($)	 	Commitment

 Sub-Tranche B 
($)
	DnB NOR Bank ASA 	 	20 St. Dunstan’s Hill 
London EC3R 8HY 
England 
  
Fax:+44 207 626 5956 
Attn:Shipping, Offshore and Logistics 	 	20,000,000	 	38,200,000
	 	 	 	 	 	 	 
	Cathay United Bank 	 	3F, No. 65, Guan Chien Rd., Tapei,

 Taiwan R.O.C
  
 Fax:
+886 2 23703794 
 Attn: Janet Huang

	 	20,000,000 	 	N/A 

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	Name	 	Lending office and contact 

details	 	Commitment

 Sub-Tranche A 
($)	 	Commitment

 Sub-Tranche B 
($)
	Chinatrust Commercial Bank	 	3F., No. 3, Songshou Rd, Sinyi District,

 Tapei City 110, Taiwan R.O.C
  
 Fax: +886 2 27239114

Attn: Miranda Huang

	 	10,000,000	 	N/A 
	 	 	 	 	 	 	 
	Hua Nan Commercial Bank, Ltd., Offshore Banking Branch 	 	38, Sec. 1, Chung-King South rd, Tapei, R.O.C.
  
 Fax: +886 2 23817491

Attn: Zosia Peng/Bonnie Tung

	 	10,000,000	 	N/A 
	 	 	 	 	 	 	 
	Land Bank of Taiwan, Offshore Banking Branch 	 	6F, 53, Huaining St. 
 Taipei 10046, Taiwan 
  
Fax: +886 2 2371 1359   
Attn: Shih Wang-Ping, Kevin Yang 	 	10,000,000	 	N/A
	 	 	 	 	 	 	 
	MEGA International Commercial Bank Co., Ltd., Offshore Banking Branch 	 	10th FL, 100, Chi Lin Road, Taipei,

 Taiwan, R.O.C.
 
Fax no: + 886 2 2563 7138
Attn: Judy Lin 	 	44,600,000	 	N/A
	 	 	 	 	 	 	 
	TOTAL COMMITMENT	 	152,800,000

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Schedule 2

Form of Drawdown Notice

 

Form of Drawdown Notice

 

(referred to in clause 2.4)

 

	To:	DnB NOR Bank ASA
	 	20 St Dunstan’s Hill
	 	London EC3R 8HY
	 	England
	 	(as Agent)

[·]
20[·]

 

US$152,800,000 Loan Facility

 

Facility Agreement dated [        ] 2011 (the
“Facility Agreement”)

 

We refer to the Facility Agreement and hereby
give you notice that we wish to draw down the [·] Advance[s] namely $[·]
on [·] 20[·] and select [a first Interest
Period in respect thereof of [·] months] [the first interest period in respect hereof
to expire on [·] 200[·]]. The funds
should be credited to [provide Builder’s bank details and SWIFT address].

 

We confirm that:

 

	(a)	no event or circumstance has occurred and is continuing which constitutes a Default;

 

	(b)	the representations and warranties contained in (i) clauses 7.1, 7.2 and 7.3(b) of the Facility
Agreement and (ii) clause 4 of the Corporate Guarantee, are true and correct at the date hereof as if made with respect to the
facts and circumstances existing at such date;

 

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

 

	(d)	no event has occurred or any other circumstances arisen or developed including, without limitation,
a material adverse change in the financial position, state of affairs or prospects of any Security Party in light of which there
is a significant risk that the Corporate Guarantor or any Borrower or any other Security Party is, or will later become, unable
to discharge its liabilities under the Security Documents as they fall due; and

 

	(e)	the said Advance[s] will be used for our own benefit and under our full responsibility and exclusively
for the purpose specified in clauses 1.1 and 2.5 of the Facility Agreement.

 

Words and expressions defined in the Facility
Agreement shall have the same meanings where used herein.

 

 

For and on behalf of each of

RAYMOND SHIPPING CO.

TERANCE SHIPPING CO.

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Schedule 3

Documents and evidence required as conditions precedent

 

(referred to in clause 9.1)

 

Part 1

 

	1	Constitutional
                                                                       documents

 

Copies, certified by legal counsel
of each Security Party as true, complete and up to date copies of all documents which contain or establish or relate to the constitution
of that Security Party;

 

	2	Corporate
                                                                       authorisations

 

copies of resolutions of the
directors of each Security Party and stockholders of each Security Party (other than the Corporate Guarantor) approving such of
the Underlying Documents and the Security Documents to which such Security Party is, or is to be, party and authorising the signature,
delivery and performance of such Security Party’s obligations thereunder, certified (in a certificate dated no earlier than
five (5) Banking Days prior to the date of this Agreement) by an officer of such Security Party as:

 

		(a)	being true and correct;

 

		(b)	being duly passed at meetings of the directors of such Security Party and, where applicable, of
the stockholders of such Security Party 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 Security Party pursuant to such resolutions;

 

	3	Specimen
                                                                       signatures

 

copies of the signatures of
the persons who have been authorised on behalf of each Security Party to sign such of the Underlying Documents and the Security
Documents to which such Security Party is, or is to be, party and to give notices and communications, including notices of drawing,
under or in connection with the Security Documents, certified (in a certificate dated no earlier than five (5) Banking Days prior
to the date of this Agreement) by an officer of such Security Party as being the true signatures of such persons;

 

	4	Certificate
                                                                       of incumbency

 

a list of directors and officers
of each Security Party specifying the names and positions of such persons, certified (in a certificate dated no earlier than five
(5) Banking Days prior to the date of this Agreement) by an officer of such Security Party to be true, complete and up to date;

 

	5	“KYC”

 

such documentation and other
evidence as is reasonably requested by the Agent, in order for each Creditor to carry out and be satisfied with the results of
all necessary “know your client” or other checks which it is required to carry out in relation to the transactions
contemplated by this Agreement and the other Security Documents and to the identity of any parties to the Security Documents (other
than the Creditors) and their directors and officers;

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	6	Contracts
                                                                       and Charters; Standard Form

 

		(a)	a copy, certified (in a certificate dated no earlier than five (5) Banking Days prior to the date
of this Agreement) as a true and complete copy by legal counsel to the Borrowers, of each of the Contracts and the Charters; and

 

		(b)	the Standard Form has been submitted by the Borrowers to the Agent;

 

	7	Charter
                                                                       terms

 

evidence that each Charter:

 

		(a)	has a term of at least five (5) years from delivery (with an extension option of 1 + 1 years at
the option of either the Charterer or the relevant Borrower) of the relevant Ship to the Charterer under the relevant Charter;
and

 

		(b)	provides for a minimum net daily charterhire in the amount of not less than $41,700 per day payable
throughout the charter term; and

 

		(c)	is governed by English law, subject to English arbitration and freely assignable to the Security
Agent;

 

	8	Refund
                                                                       Guarantees

 

the original of the Refund Guarantee
in respect of each Contract, in respect of all the instalments payable thereunder (or, if sent by swift, such Refund Guarantee
sent by swift to the Agent);

 

	9	Security
                                                                       Documents

 

		(a)	the Corporate Guarantee, the Fee Letters, the Pre-delivery Security Assignments, the Master Swap
Agreement, the Swap Assignment, the Operating Account Assignments, the Charter Assignments, the Charter Guarantee Assignments and
the Trust Deed, each duly executed by the parties thereto;

 

		(b)	the notices of assignment in respect of each Refund Guarantee for each Contract, and the notices
of assignment in respect of each Contract, each duly executed by the relevant Borrower in the forms prescribed by the Pre-delivery
Security Assignments;

 

		(c)	the notice of assignment of each Charter under each Charter Assignment, in the form prescribed
thereunder, each duly executed by the relevant Borrower; and

 

		(d)	the notice of assignment of each Charter Guarantee under each Charter Guarantee Assignment, in
the form prescribed thereunder, each duly executed by the relevant Borrower.

 

	10	Operating
                                                                        Accounts

 

evidence that the Operating
Accounts have been opened and duly completed mandate forms in respect thereof have been delivered to the Agent;

 

	11	Fees
                                                                        and commissions

 

evidence that any fees and commissions
due under clause 5.1 have been paid in full;

 

	12	Financial
                                                                        statements

 

a certified true copy of the
audited consolidated financial statements of the Corporate Guarantor for the financial year ended 31 December 2010;

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	13	Borrowers’
                                                                        process agent

 

a letter from each Borrower’s
agent for receipt of service of proceedings referred to in clause 18.2 accepting its appointment under the said clause and under
each of the other Security Documents in which it is or is to be appointed as such Borrower’s agent and referred to in this
Part 1;

 

	14	Security
                                                                        Parties’ process agent

 

a letter from each Security
Party’s agent for receipt of service of proceedings referred to in each of the Security Documents to which such Security
Party is a party and referred to in this Part 1 accepting its appointment under each such Security Document;

 

	15	Liberian
                                                                        opinion

 

an opinion of Poles, Tublin,
Stratakis & Gonzalez, LLP, legal advisers on matters of Liberian law to the Agent;

 

	16	Korean
                                                                        opinion

 

an opinion of Kim & Chang
legal advisers on matters of Korean law to the Agent;

 

	17	Marshall
                                                                        Islands opinion

 

an opinion of Poles, Tublin,
Stratakis & Gonzalez, LLP, legal advisers on matters of Marshall Islands law to the Agent;

 

	18	English
                                                                        opinion

 

an opinion of Stephenson Harwood,
legal advisers on matters of English law to the Agent; and

 

	19	Further
                                                                        conditions

 

any such further conditions,
documents or opinions as may be reasonably required by the Agent.

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Part 2

 

	1	Drawdown
                                                                       Notice

 

The Drawdown Notice in respect
of the relevant first, second, or, as the case may be, third Contract Instalment Advance to be drawn down in respect of a Ship
(for the purposes of this Part 2 only, the “Relevant Advance”), duly executed;

 

	2	No
                                                                       claim

 

if required by the Agent, a
written confirmation from the Corporate Guarantor that neither the Builder nor any other party who may have a claim pursuant to
the Contract to which the Relevant Advance relates has any claims against the Ship or the Borrower relating to the Relevant Advance
and that there have been no breaches of the terms of such Contract or any relevant Refund Guarantee or any default thereunder;

 

	3	Invoices

 

an invoice or notification from
the Builder demanding the payment of the “1st Instalment”, the “2nd Instalment” or, as the case may be,
the “3rd Instalment” payable under the Contract in respect of the Ship to which the Relevant Advance relates;

 

	4	Refund
                                                                       Guarantee matters

 

		(a)	the original of the Refund Guarantee in respect of all of the pre-delivery instalments of the Contract
Price for the Ship to which the relevant Advance relates (or, if sent by swift, such Refund Guarantee sent by swift to the Agent);
and

 

		(b)	the notice of assignment in respect of such Refund Guarantee, duly executed by the relevant Borrower
in the form prescribed in the relevant Pre-delivery Security Assignment;

 

	5	Class
                                                                       confirmation

 

evidence from the Classification
Society that:

 

		(a)	the cutting of the first steel plate of the Ship to which the Relevant Advance relates has been
completed at the Builder’s workshop (in the event that the Relevant Advance is the second Contract Instalment Advance for
that Ship); or

 

		(b)	the first section of keel of the Ship to which the Relevant Advance relates has been laid at the
Builder’s drydock (in the event that the Relevant Advance is the third Contract Instalment Advance for that Ship);

 

	6	Equity

 

evidence that any part of the
relevant instalment of the Contract Price payable to the Builder in respect of that Ship, which is not being funded by the Relevant
Advance pursuant to this Agreement has been deposited (not later than three (3) Banking Days before the proposed Drawdown Date
of the Relevant Advance) with the Agent for further payment to the Builder; and

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	7	Further
                                                                       conditions

 

any such further conditions,
documents or evidence as may be reasonably required by the Agent.

    	84

    	

    

Part 3

 

	1	Drawdown
                                                                       Notice

 

The Drawdown Notice in respect
of the relevant Delivery Advance (for the purposes of this Part 3 only, the “Relevant Advance”), duly executed;

 

	2	Updated
                                                                       corporate authorisations/certificates of incumbency

 

a list of directors and officers
of each Security Party specifying the names and positions of such persons and copies of the signatures of the persons who have
been authorised on behalf of each Security Party to sign such of the Security Documents to which such Security Party is, or is
to be, party and referred to in this Part 3 in respect of the Relevant Advance, and to give notices and communications, including
notices of drawing, under or in connection with the Security Documents, certified by legal counsel of such Security Party to be,
in the case of the list of directors, true, complete and up to date and, in the case of the specimen signatures, true signatures
of such persons or a certificate by an officer of such Security Party that the list provided in respect of that Security Party
pursuant to paragraph 4 of Part 1 of this schedule and that the specimen signatures provided in respect of the Security Party pursuant
to paragraph 3 of Part 1 of this schedule remain true, complete and up to date;

 

	3	Constitutional
                                                                       documents

 

copies, certified by legal counsel
of the relevant Manager(s) of the Ship to which the Relevant Advance relates, as true, complete and up to date copies of all documents
which contain or establish or relate to the constitution of each such Manager;

 

	4	Corporate
                                                                       authorisations

 

copies of resolutions of the
directors and also (but only if required by law in the opinion of the Agent’s legal counsel on matters of laws of the country
of incorporation of the relevant Manager) of the stockholders of the relevant Manager(s) of the Ship to which the Relevant Advance
relates, approving such of the Underlying Documents and any Manager’s Undertakings in respect of that Ship to which each
such Manager is, or is to be, a party and authorising the signature, delivery and performance of each such Manager’s obligations
thereunder, certified by legal counsel of each Manager as:

 

	4.1	being true and correct;

 

	4.2	being duly passed at meetings of the directors of that Manager
and, if applicable, of the stockholders of that Manager, each duly convened and held;

 

	4.3	not having been amended, modified or revoked; and

 

	4.4	being in full force and effect,

 

together with originals or certified
copies of any powers of attorney issued by that Manager pursuant to such resolutions;

 

	5	Certificate
                                                                       of incumbency

 

a list of directors and officers
of the relevant Manager(s) of the Ship to which the Relevant Advance relates specifying the names and positions of such persons,
certified by an officer of each such Manager to be true, complete and up to date;

    	85

    	

    

	6	Consents
                                                                       and approvals

 

a certificate from an officer
of the relevant Manager(s) of the Ship to which the Relevant Advance relates that no consents, authorisations, licences or approvals
are necessary for each such Manager to execute, deliver and perform any Manager’s Undertaking in respect of that Ship to
which it is a party;

 

	7	Ship
                                                                       conditions

 

evidence that the Ship to which
the Relevant Advance relates:

 

	7.1	Registration and Encumbrances

 

is registered in the name of
the relevant Borrower through the relevant Registry under the laws and flag of the relevant Flag State and that such Ship and its
Earnings, Insurances and Requisition Compensation are free of Encumbrances; and

 

	7.2	Classification

 

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

 

	7.3	Insurance

 

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

 

	7.4	Delivery under Charter

 

has been delivered to the Charterer
for service under the relevant Charter (such evidence, if not practicable to be provided by the Charterer, to be in the form of
a written confirmation by the Borrowers);

 

	8	Title
                                                                       and no Encumbrances

 

evidence that the transfer of
title to the Ship to which the Relevant Advance relates from the Builder to the relevant Borrower has been duly recorded with the
relevant Registry free from Encumbrances other than Permitted Encumbrances;

 

	9	Fees
                                                                       and commissions

 

payment of any fees and commissions
due from the Borrowers to any of the Creditors pursuant to the terms of clause 5.1 or any other provision of the Security Documents;

 

	10	Delivery
                                                                        documents

 

		(a)	a commercial invoice or any other similar document issued by the Builder to the relevant Borrower
in respect of the amount of the Contract Price in respect of the Ship to which the Relevant Advance relates, evidencing the payment
in full of such Contract Price; and

 

		(b)	copies of all the delivery documents to be exchanged between the Builder and the relevant Borrower
under the relevant Contract on Delivery of such Ship, including, without limitation, the bill of sale, the builder’s certificate,
the protocol of delivery and acceptance and the declaration of warranty;

    	86

    	

    

	11	Class
                                                                        confirmation

 

evidence from the relevant Classification
Society that the Ship to which the Relevant Advance relates has been completed to its satisfaction;

 

	12	Security
                                                                        Documents

 

the Mortgage, the Deed of Covenant
(if applicable), the General Assignment and the Manager’s Undertaking(s) in respect of the Ship to which the Relevant Advance
relates, each duly executed and delivered;

 

	13	Mortgage
                                                                        registration

 

evidence that the Mortgage in
respect of the Ship to which the Relevant Advance relates has been registered against such Ship through the relevant Registry under
the laws and flag of the relevant Flag State;

 

	14	Notices
                                                                        of assignment

 

duly executed notices of assignment
in the forms prescribed by the Ship Security Documents for the Ship to which the Relevant Advance relates;

 

	15	Insurance
                                                                        opinion

 

an opinion from insurance consultants
to the Agent in form and substance satisfactory to the Agent and made at the cost and expense of the Borrowers, on the insurances
effected or to be effected in respect of the Ship to which the Relevant Advance relates, upon and following the Delivery Date of
such Ship;

 

	16	Borrowers’
                                                                        process agent

 

a letter from the relevant Borrower’s
agent for receipt of service of proceedings referred to in each of the relevant Mortgage and/or the Deed of Covenant and the General
Assignment for the Ship to which the Relevant Advance relates and in which it is or is to be appointed as that Borrower’s
agent accepting its appointment under each such document;

 

	17	Security
                                                                        Parties’ process agent

 

a letter from each Security
Party’s and each Manager’s agent for receipt of service of proceedings referred to in each Security Document and Manager’s
Undertaking to which the relevant Security Party and relevant Manager is a party and which is referred to in this Part 3 in respect
of the Relevant Advance, accepting its appointment under each of the relevant Security Documents and the relevant Manager’s
Undertaking(s);

 

	18	Management
                                                                        Agreement

 

a copy, certified as a true
and complete copy by an officer of the relevant Borrower, of each Management Agreement for the Ship to which the Relevant Advance
relates;

 

	19	DOC
                                                                        and application for SMC

 

a certified copy of the DOC
and either (i) a certified copy of the SMC for the Ship to which the Relevant Advance relates or (ii) evidence satisfactory to
the Agent that the Operator has applied for an SMC for such Ship;

 

	20	ISPS
                                                                        Code compliance

    	87

    	

    

		(a)	evidence satisfactory to the Agent that the Ship to which the Relevant Advance relates is subject
to a ship security plan which complies with the ISPS Code; and

 

		(b)	a copy, certified (in a certificate dated no earlier than five (5) Banking Days prior to the Delivery
Date of such Ship) as a true and complete copy by an officer of the relevant Borrower of the ISSC for such Ship;

 

	21	Liberian
                                                                        opinion

 

an opinion of Poles, Tublin,
Stratakis & Gonzalez, LLP, legal advisers on matters of Liberian law to the Agent;

 

	22	English
                                                                        opinion

 

an opinion of Stephenson Harwood,
legal advisers on matters of English law to the Agent;

 

	23	Manager’s
                                                                        opinion

 

an opinion of legal advisers
to the Agent on matters of the laws of the jurisdiction of incorporation of the relevant Manager(s) for the Ship to which the relevant
Advance relates;

 

	24	Flag
                                                                        State opinion

 

an opinion of legal advisers
to the Agent on matters of the laws of the Flag State for the Ship to which the Relevant Advance relates; and

 

	25	Further
                                                                        conditions

 

such other conditions, documents
or evidence, if any, as may be reasonably required by the Agent.

    	88

    	

    

Schedule 4

Form of Transfer Certificate

 

(refer to in clause
15.3)

 

TRANSFER CERTIFICATE

 

Banks are advised not to employ
Transfer Certificates or otherwise to assign or transfer interests in the Facility Agreement without further ensuring that the
transaction complies with all applicable laws and regulations, including the Financial Services and Markets Act 2000 and regulations
made thereunder and similar statutes which may be in force in other jurisdictions

 

	To:	DNB NOR BANK ASA as agent on its own behalf and on behalf of the Borrowers, the Banks, the
Account Bank, the Security Agent, the Arranger and the Swap Provider defined in the Facility Agreement referred to below.

 

[Date]

 

Attention:[·]

 

This certificate (“Transfer
Certificate”) relates to a facility agreement dated [    ] 2011 (the “Facility Agreement”) and made between
(1) Raymond Shipping Co., and Terance Shipping Co. (the “Borrowers”), (2) the banks and financial institutions
referred to therein as lenders (the “Banks”), (3) DnB NOR Bank ASA as Agent, Security Agent, Arranger and Account
Bank and (4) DnB NOR Bank ASA as swap provider, in relation to a loan facility of up to one hundred and fifty two million eight
hundred thousand Dollars ($152,800,000). Terms defined in the Facility Agreement shall, unless otherwise defined herein, have the
same meanings herein as therein.

 

In this Certificate:

 

the “Transferor”
means [full name] of [lending office]; and

 

the “Transferee”
means [full name] of [lending office].

 

		1	 	The Transferor with full title guarantee assigns to the Transferee
absolutely all rights and interests (present, future or contingent) which the Transferor has as a Bank under or by virtue of the
Facility Agreement and all the Security Documents in relation to [    ] per centum ([    ]%) of the [Contribution] [Commitment] of the
Transferor (or its predecessors in title), details of which are set out below:

 

	
        Date of

 Advance[s]

        
	 	
        Amount of

 Advance[s] 

        
	 	
        Transferor’s

[Contribution]

[Commitment]

to Advance[s] 

        
	 	
        Maturity Date

        
	 

 

		2	 	By virtue of this Transfer Certificate and clause 15 of
the Facility Agreement, the Transferor is discharged [entirely from its [Contribution] [Commitment] [which amounts to $[          ]]
[from [    ] per centum ([    ]%) of its [Contribution] [Commitment], which percentage represents $[         ]].

    	89

    	

    

		3	 	The
                                                                 Transferee hereby requests the Agent (on behalf of itself, the
                                                                 Borrowers, the Account Bank, the Arranger, the Security Agent,
                                                                 the Swap Provider and the Banks) to accept the executed copies
                                                                 of this Transfer Certificate as being delivered pursuant to and
                                                                 for the purposes of clause 15.3 of the Facility Agreement
                                                                 so as to take effect in accordance with the terms thereof on
                                                                 [date of transfer].

 

		4	 	The Transferee:

 

		4.1	 	confirms that it has received a copy of the Facility Agreement
and the other Security Documents together with such other documents and information as it has required in connection with the transaction
contemplated thereby;

 

		4.2	 	confirms that it has not relied and will not hereafter rely on
the Transferor, the Agent, the Arranger, the Account Bank, the Banks, the Swap Provider or the Security Agent to check or enquire
on its behalf into the legality, validity, effectiveness, adequacy, accuracy or completeness of the Facility Agreement, any of
the Security Documents or any such documents or information;

 

		4.3	 	agrees that it has not relied and will not rely on the Transferor,
the Agent, the Arranger, the Account Bank, the Banks, the Swap Provider or the Security Agent to assess or keep under review on
its behalf the financial condition, creditworthiness, condition, affairs, status or nature of the Borrowers, or any other Security
Party (save as otherwise expressly provided therein);

 

		4.4	 	warrants that it has power and authority to become a party to
the Facility Agreement and has taken all necessary action to authorise execution of this Transfer Certificate and to obtain all
necessary approvals and consents to the assumption of its obligations under the Facility Agreement and the Security Documents;
and

 

		4.5	 	if not already a Bank, appoints (i) the Agent to act as its agent
and (ii) the Security Agent to act as its security agent and trustee, as provided in the Facility Agreement and the Security Documents
and agrees to be bound by the terms of the Facility Agreement and the Security Documents.

 

		5	 	The Transferor:

 

		5.1	 	warrants to the Transferee that it has full power to enter into
this Transfer Certificate and has taken all corporate action necessary to authorise it to do so;

 

		5.2	 	warrants to the Transferee that this Transfer Certificate is
binding on the Transferor under the laws of England, the country in which the Transferor is incorporated and the country in which
its lending office is located; and

 

		5.3	 	agrees that it 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 Transfer
Certificate or for a similar purpose.

 

		6	 	The Transferee hereby undertakes with the Transferor and each
of the other parties to the Facility Agreement and the other Security Documents that it will perform in accordance with its terms
all those obligations which by the terms of the Facility Agreement and the other Security Documents will be assumed by it after
delivery of the executed copies of this Transfer Certificate to the Agent and satisfaction of the conditions (if any) subject to
which this Transfer Certificate is expressed to take effect.

 

		7	 	By execution of this Transfer Certificate on their behalf by
the Agent and in reliance upon the representations and warranties of the Transferee, the Borrowers, the Agent, the Arranger, the
Security Agent, the Account Bank, the Swap Provider and the Banks accept the Transferee as a party to the Facility Agreement and
the Security Documents with respect to all those rights and/or obligations which by the terms of the Facility Agreement and the
Security Documents will be assumed by the Transferee (including those about pro-rata sharing and the exclusion of liability on
the part of, and the indemnification of, the Agent, the Arranger, the Account Bank, the Swap Provider and the Security Agent as
provided by the Facility Agreement) after delivery 
	

    	90

    	

    

	 	 	 	of the executed copies of this Transfer Certificate to the Agent and satisfaction
of the conditions (if any) subject to which this Transfer Certificate is expressed to take effect.

 

		8	 	None of the Transferor, the Agent, the Arranger, the Security
Agent, the Account Bank, the Swap Provider or the Banks:

 

		8.1	 	makes any representation or warranty nor assumes any responsibility
with respect to the legality, validity, effectiveness, adequacy or enforceability of the Facility Agreement or any of the Security
Documents or any document relating thereto; or

 

		8.2	 	assumes any responsibility for the financial condition of the
Borrowers or any of them or any other Security Party or any party to any such other document or for the performance and observance
by the Borrowers or any of them or any other Security Party or any party to any such other document (save as otherwise expressly
provided therein) and any and all such conditions and warranties, whether express or implied by law or otherwise, are hereby excluded
(except as aforesaid).

 

		9	 	The Transferor and the Transferee each undertake that they will
on demand fully indemnify the Agent in respect of any claim, proceeding, liability or expense which relates to or results from
this Transfer Certificate or any matter concerned with or arising out of it unless caused by the Agent’s gross negligence
or wilful misconduct, as the case may be.

 

		10	 	The agreements and undertakings of the Transferee in this Transfer
Certificate are given to and for the benefit of and made with each of the other parties to the Facility Agreement and the Security
Documents.

 

		11	 	This Transfer Certificate is governed by, and shall be construed
in accordance with, English law.

 

	 	Transferor	 	Transferee
	 	 	 	 
	 	
        By:
	 	 	
        By:

        
	 
	 	 	 	 	 	 
	 	Dated:

	 	Dated:

 

Agent

 

Agreed for and on behalf of itself
as Agent, the Borrowers, the Security Agent, the Arranger, the Account Bank, the Swap Provider and the Banks.

 

DNB NOR BANK ASA

 

	By:	 
	 	 
	Dated:	 

 

Note:The
execution of this Transfer Certificate alone may not transfer a proportionate share of the Transferor’s interest in the security
constituted by the Security Documents in the Transferor’s or Transferee’s jurisdiction. It is the responsibility of
the Transferee to ascertain whether any other documents are required to perfect a transfer of such a share in the Transferor’s
interest in such security in any such jurisdiction and, if so, to seek appropriate advice and arrange for execution of the same.

    	91

    	

    

The Schedule

 

Outstanding Contribution: $[·]

Portion Transferred: [·]%

 

Commitment: $[·]

Portion Transferred: [·]%

 

Percentage of Transferor immediately
before transfers: [·]%

Percentage of Transferee following
transfers: [·]%

 

Administrative Details of Transferee

 

Name of Transferee:

Lending Office:

 

Contact Person:

(Loan Administration Department)

Telephone:

Telefax No:

 

Contact Person:

(Credit Administration Department)

Telephone:

Telefax No:

 

[Account for payments:]

    	92

    	

    

Schedule 5

Contract Instalment Advances per Ship

 

	
        Contract Instalment

 Advances per
        Ship

	 	
        Amount per Ship 

($)

	 	
        Time when relevant Contract instalment

        payable (per Ship)

	
        1st Contract Instalment Advance

         
	 	
        The aggregate of:

         

        a) Sub-Tranche A in the amount of
        5,730,000; and

         

        (b) Sub-Tranche B in the amount of
        1,910,000

         

        Total: 7,640,000

	 	
        Later of (a) Specified Date and (b)
        5 New York business days from the issue of the Refund Guarantee

         

	 	 	 	 	 
	
        2nd Contract Instalment Advance

         
	 	
        The aggregate of:

         

        a) Sub-Tranche A in the amount of
        5,730,000; and

         

        (b) Sub-Tranche B in the amount of
        1,910,000

         

        Total: 7,640,000

	 	
        Later of (a) Specified Date and (b)
        5 New York business days from cutting of the first steel plate of the relevant Ship at the Builder’s workshop

         

	 	 	 	 	 
	
        3rd Contract Instalment Advance

         
	 	
        The aggregate of:

         

        a) Sub-Tranche A in the amount of
        5,730,000; and

         

        (b) Sub-Tranche B in the amount of
        1,910,000

         

        Total: 7,640,000

	 	
        Later of (a) Specified Date and (b)
        5 New York business days from keel-laying of the first section of the relevant Ship at the Builder’s drydock

         

 

“New York
business day” for the purposes of this schedule 5 shall have the meaning given to it in the Contracts.

 

“Specified
Date” for the purposes of this schedule 5 means, in relation to each instalment of the Contract Price of a Ship referred
to in the above table, the fixed date specified in paragraph (c), (d) or (e) (as the case may be) of Article X(2) of the Contract
for that Ship as the earliest due date of that instalment.

    	93

    	

    

Schedule 6

Form of Trust Deed

 

THIS DECLARATION OF TRUST by
DNB NOR BANK ASA (the “Security Agent”) is made on [·]
20[ ] and is supplemental to (and made pursuant to the terms of) a Facility Agreement dated [ ] 2011 (the “Agreement”)
and made between (1) Raymond Shipping Co., and Terance Shipping Co. as joint and several Borrowers, (2) DnB NOR Bank ASA as Agent
and Arranger, (3) the Security Agent, (4) DnB NOR Bank ASA as Swap Provider and (5) the banks and financial institutions mentioned
in schedule 1 to the Agreement as the Banks. Words and expressions defined in the Agreement shall have the same meanings when
used in this Deed.

 

NOW THIS DEED WITNESSETH as
follows:

 

		1	The Security Agent hereby acknowledges and declares that, from the date of this Deed, it holds
and shall hold the Trust Property on trust for certain of the other Creditors on the terms and basis set out in the Agreement.

 

		2	The declaration and acknowledgement contained in paragraph 1 above shall be irrevocable.

 

	EXECUTED as a DEED	)	 
	by	)	 
	for and on behalf of	)	 	 
	DNB NOR BANK ASA	)	Attorney-in-fact	 
	(as Security Agent)	)	 
	in the presence of:	)	 

    	94

    	

    

Schedule 7

Mandatory Cost formula

 

		1	The Mandatory Cost is an addition to the interest rate to compensate Banks for the cost of compliance
with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, 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 Bank, in accordance with the paragraphs set
out below. The Mandatory Cost will be calculated by the Agent as a weighted average of the Banks’ Additional Cost Rates (weighted
in proportion to the percentage participation of each Bank in the Loan or any relevant unpaid sum) and will be expressed as a percentage
rate per annum.

 

		3	The Additional Cost Rate for any Bank lending from a lending office in a Participating Member State
will be the percentage notified by that Bank to the Agent. This percentage will be certified by that Bank in its notice to the
Agent to be its reasonable determination of the cost (expressed as a percentage of that Bank’s participation in the Loan or the
relevant unpaid sum made from that lending office) 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 Bank lending from a lending office in the United Kingdom will
be calculated by the Agent as follows:

 

			   per cent per annum.

 

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

 

		5	For the purposes of this Schedule:

 

		(a)	“Fees Rules” means the rules on periodic fees contained in the Financial Services
Authority Fees 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;

 

		(b)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under Column 1
of 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);

 

		(c)	“Participating Member State” means any member of the European Union that adopts
or has adopted the euro as its lawful currency in accordance with the legislation of the European Community relating to the Economic
and Monetary Union;

 

		(d)	“Special Deposits” has the meaning given to it from time to time under or pursuant
to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England; and

 

		(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, the Reference Bank shall, as soon as practicable after publication by
the Financial Services Authority, supply to the Agent, the rate of charge payable by the Reference Bank to the Financial Services
Authority pursuant to the Fees Rules in respect of 
	

    	95

    	

    

	 	 	the relevant financial year of the Financial Services Authority (calculated
for this purpose by the Reference Bank as being the average of the Fee Tariffs applicable to the Reference Bank for that financial
year) and expressed in pounds per £1,000,000 of the Tariff Base of the Reference Bank.

 

		7	Each Bank shall supply any information required by the Agent for the purpose of calculating its
Additional Cost Rate. In particular, but without limitation, each Bank shall supply the following information on or prior to the
date on which it becomes a Bank:

 

		(a)	the jurisdiction of its lending office; and

 

		(b)	any other information that the Agent may reasonably require for such purpose.

 

Each Bank shall promptly
notify the Agent of any change to the information provided by it pursuant to this paragraph.

 

		8	The rates of charge of the Reference Bank for the purpose of E above shall be determined
by the Agent based upon the information supplied to it pursuant to paragraphs 6 and 7 above and on the assumption that, unless
a Bank notifies the Agent to the contrary, each Bank’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 Bank and shall be entitled to assume that the information provided by any Bank or
the 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 Banks on the basis of the Additional Cost Rate for each Bank based on the information provided by each Bank and the 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 Bank shall, in the absence of manifest error, be conclusive and binding
on all parties to this Agreement.

 

		12	The Agent may from time to time, after consultation with the Borrowers and the Banks, determine
and notify to all parties to this Agreement 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 Bank of England, 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 to this Agreement.

    	96

    	

    

BORROWERS

 

	SIGNED by	)	 	 
	for and on behalf of	)	 	 
	RAYMOND SHIPPING CO.	)	Attorney-in-fact	 
	as Borrower	)	 	 
	 	 	 	 
	SIGNED by	)	 	 
	for and on behalf of	)	 	 
	TERANCE SHIPPING CO.	)	Attorney-in-fact	 
	as Borrower	)	 	 
	 	 	 	 
	CREDITORS	 	 	 
	 	 	 	 
	SIGNED by	)	 	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	DNB NOR BANK ASA	)	 	 
	as Agent, Arranger Account Bank, Security Agent and Bank	)	 	 
	 	 	 	 
	SIGNED by	)	 	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	CATHAY UNITED BANK	)	 	 
	as Bank	)	 	 
	 	 	 	 
	SIGNED by	)	 	 
	and by	)	Authorised signatory	 
	for and on behalf of	)	 	 
	CHINATRUST COMMERCIAL BANK	)	 	 
	as Bank	)	Authorised signatory	 
	 	 	 	 
	SIGNED by	)	 	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	HUA NAN COMMERCIAL BANK, LTD., OFFSHORE	)	 	 
	BANKING BRANCH	)	 	 
	as Bank	)	 	 
	 	 	 	 
	SIGNED by	)	 	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	LAND BANK OF TAIWAN	)	 	 
	as Bank	)	 	 
	

    	97

    	

    

	SIGNED by	)	 	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.,	)	 	 
	OFFSHORE BANKING BRANCH	)	 	 
	as Bank	)	 	 
	 	 	 	 
	SIGNED by	)	 	 
	and by	)	Attorney-in-fact	 
	for and on behalf of	)	 	 
	DNB NOR BANK ASA	)	 	 
	as Swap Provider	)	 	 

    	98Exhibit
10.1

 

SECOND
SIGHT MEDICAL PRODUCTS, INC. 

 

INDEMNIFICATION
AGREEMENT

 

    	 

    	 

    

 

INDEMNIFICATION
AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (the “Agreement”) is made and entered into as of June_____, 2014 between Second Sight Medical Products,
Inc., a California corporation (the “Company”), and ____________________ (“Indemnitee”).

 

RECITALS

 

WHEREAS, highly
competent persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided
with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them
arising out of their service to and activities on behalf of the corporation;

 

WHEREAS, the
Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified
individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons
serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary
and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given
current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more
exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being
increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would
have been brought only against the Company or business enterprise itself. Indemnitee may also be entitled to indemnification pursuant
to the Corporations Code of the State of California (“CCSC”). The CCSC expressly provides that the indemnification
provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company
and members of the Board, officers and other persons with respect to indemnification;

 

WHEREAS, the
uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such
persons;

 

WHEREAS, the
Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests
of the Company's stockholders and that the Company should act to assure such persons that there will be increased certainty of
such protection in the future;

 

WHEREAS, it
is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on
behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so indemnified;

 

WHEREAS, this
Agreement is a supplement to and in furtherance of the Bylaws and Articles of Incorporation of the Company and any resolutions
adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;
and

 

    	 

    	 

    

 

WHEREAS, Indemnitee
does not regard the protection available under the Company's Bylaws and Restated Articles of Incorporation and insurance as adequate
in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company
desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service
for or on behalf of the Company on the condition that he be so indemnified;

 

NOW, THEREFORE,
in consideration of Indemnitee’s agreement to serve as a director and/or officer or other key employee of the Corporation
from and after the date hereof, the parties hereto agree as follows:

 

1.           Indemnity
of Indemnitee. The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent permitted by law,
as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality
thereof.

 

(a)          Proceedings
Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided
in this Section l (a) if, by reason of his Corporate Status (as hereinafter defined), the Indemnitee is, or is threatened
to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of
the Company. Pursuant to this Section 1(a), Indemnitee shall be indemnified against all Expenses (as hereinafter defined),
judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him, or on his behalf, in connection
with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in good faith and in a manner the Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding,
had no reasonable cause to believe the Indemnitee’s conduct was unlawful.

 

(b)          Proceedings
by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section
1(b) if, by reason of his Corporate Status, the Indemnitee is, or is threatened to be made, a party to or participant in any
Proceeding brought by or in the right of the Company. Pursuant to this Section 1(b), Indemnitee shall be indemnified against
all Expenses actually and reasonably incurred by the Indemnitee, or on the Indemnitee’s behalf, in connection with such Proceeding
if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests
of the Company; provided, however, if applicable law so provides, no indemnification against such Expenses shall
be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable
to the Company unless and to the extent that the Superior Court of the State of California or other court of competent jurisdiction
shall determine that such indemnification may be made.

 

(c)          Indemnification
for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding,
he shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such
Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf
in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

    	2

    	 

    

 

2.           Additional
Indemnity. In addition to, and without regard to any limitations on, the indemnification provided for in Section 1 of
this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties,
fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status,
he is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the
Company), including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee.
The only limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that the Company
shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions,
set forth in Sections 6 and 7 hereof) to be unlawful.

 

3.           Contribution.

 

(a)          Whether
or not the indemnification provided in Sections 1 and 2 hereof is available, in respect of any threatened, pending
or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action,
suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action,
suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any
right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any action, suit or proceeding
in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement
provides for a full and final release of all claims asserted against Indemnitee.

 

(b)          Without
diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee
shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action,
suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding),
the Company shall contribute to the amount of Expenses, judgments, fines and amounts paid in settlement actually and reasonably
incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors
or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action,
suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction or events from which such action,
suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may,
to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such
action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events that
resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which applicable
law may require to be considered. The relative fault of the Company and all officers, directors or employees of the Company, other
than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one
hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions
were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and
the degree to which their conduct is active or passive.

 

    	3

    	 

    

 

(c)          The
Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers,
directors, or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

 

(d)          To
the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee
for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,
whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection
with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding and/or (ii) the relative fault of
the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

4.           Indemnification
for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Corporate Status, a witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee
is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection
therewith.

 

5.           Advancement
of Expenses. Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred by or on
behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status within thirty (30) days
after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the
Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written undertaking by or on behalf of Indemnitee
to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such
Expenses. Any advances and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free.

 

6.           Procedures
and Presumptions for Determination of Entitlement to Indemnification. It is the intent of this Agreement to secure for Indemnitee
rights of indemnity that are as favorable as may be permitted under the CCSC and public policy of the State of California. Accordingly,
the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee
is entitled to indemnification under this Agreement:

 

(a)          To
obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith
such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and
to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request
for indemnification, advise the Board in writing that Indemnitee has requested indemnification. Notwithstanding the foregoing,
any failure of Indemnitee to provide such a request to the Company, or to provide such a request in a timely fashion, shall not
relieve the Company of any liability that it may have to Indemnitee unless, and to the extent that, such failure actually and materially
prejudices the interests of the Company.

 

    	4

    	 

    

 

(b)          Upon
written request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination
with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following four methods,
which shall be at the election of the Board (1) by a majority vote of the disinterested directors, even though less than a quorum,
(2) by a committee of disinterested directors designated by a majority vote of the disinterested directors, even though less than
a quorum, (3) if there are no disinterested directors or if the disinterested directors so direct, by independent legal counsel
in a written opinion to the Board, a copy of which shall be delivered to the Indemnitee, or (4) if so directed by the Board, by
the stockholders of the Company. For purposes hereof, disinterested directors are those members of the Board who are not parties
to the action, suit or proceeding in respect of which indemnification is sought by Indemnitee.

 

(c)          If
the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) hereof,
the Independent Counsel shall be selected as provided in this Section 6(c). The Independent Counsel shall be selected by
the Board. Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company
a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 13
of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and
timely objection, the person so selected shall act as Independent Counsel. If a written objection is made and substantiated, the
Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined
that such objection is without merit. If, within twenty (20) days after submission by Indemnitee of a written request for indemnification
pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company
or Indemnitee may petition the Superior Court of the State of California or other court of competent jurisdiction for resolution
of any objection which shall have been made by the Indemnitee to the Company’s selection of Independent Counsel and/or for
the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate,
and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel
under Section 6(b) hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred
by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable
fees and expenses incident to the procedures of this Section 6(c), regardless of the manner in which such Independent Counsel
was selected or appointed.

 

(d)          In
making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination
shall presume that Indemnitee is entitled to indemnification under this Agreement. Anyone seeking to overcome this presumption
shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Company
(including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action
pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee
has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not
met the applicable standard of conduct.

 

    	5

    	 

    

 

(e)          Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise
(as hereinafter defined), including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise
in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports
made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable
care by the Enterprise. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee
of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
Whether or not the foregoing provisions of this Section 6(e) are satisfied, it shall in any event be presumed that Indemnitee
has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the
Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing
evidence.

 

(f)          If
the person, persons or entity empowered or selected under Section 6 to determine whether Indemnitee is entitled to indemnification
shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification
absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification
under applicable law; provided, however, that such sixty (60) day period may be extended for a reasonable time, not
to exceed an additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement
to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating
thereto; and provided further, that the foregoing provisions of this Section 6(f) shall not apply if the determination
of entitlement to indemnification is to be made by the stockholders pursuant to Section 6(b) of this Agreement and if (A)
within fifteen (15) days after receipt by the Company of the request for such determination, the Board or the Disinterested Directors,
if appropriate, resolve to submit such determination to the stockholders for their consideration at an annual meeting thereof to
be held within seventy five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders
is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such
purpose within sixty (60) days after having been so called and such determination is made thereat.

 

(g)          Indemnitee
shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information
which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary
to such determination. Any Independent Counsel, member of the Board or stockholder of the Company shall act reasonably and in good
faith in making a determination regarding the Indemnitee’s entitlement to indemnification under this Agreement. Any costs
or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons
or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement
to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

    	6

    	 

    

 

(h)          The
Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to
avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which Indemnitee
is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement
of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee
has been successful on the merits or otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption
shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

 

(i)          The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely
affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner
which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

7.           Remedies
of Indemnitee.

 

(a)          In
the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification
under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no
determination of entitlement to indemnification is made pursuant to Section 6(b) of this Agreement within ninety (90) days
after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this Agreement
within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made
within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is
deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication in an
appropriate court of the State of California, or in any other court of competent jurisdiction, of Indemnitee’s entitlement
to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within one hundred eighty (180) days
following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 7(a). The
Company shall not oppose Indemnitee’s right to seek any such adjudication.

 

(b)          In
the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is not entitled
to indemnification, any judicial proceeding commenced pursuant to this Section 7 shall be conducted in all respects as a
de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under Section 6(b).

 

    	7

    	 

    

 

(c)          If
a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 7, absent
(i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s misstatement
not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

 

(d)          In
the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of his rights under, or to recover
damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance policies
maintained by the Company, the Company shall pay on his behalf, in advance, any and all expenses (of the types described in the
definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by him in such judicial adjudication,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of expenses or insurance
recovery.

 

(e)          The
Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that the procedures
and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company
is bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses and, if requested
by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent
not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee
for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability
insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such
indemnification, advancement of Expenses or insurance recovery, as the case may be.

 

(f)          Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be
required to be made prior to the final disposition of the Proceeding.

 

8.           Non-Exclusivity;
Survival of Rights; Insurance; Primacy of Indemnification; Subrogation.

 

(a)          The
rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may
at any time be entitled under applicable law, the Articles of Incorporation, the By-laws, any agreement, a vote of stockholders,
a resolution of directors of the Company, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision
hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee
in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the CCSC, whether by statute
or judicial decision, permits greater indemnification than would be afforded currently under the Certificate of Incorporation,
By-laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits
so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other right or remedy.

 

    	8

    	 

    

 

(b)          To
the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees,
or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies
in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent
or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof,
the Company has directors' and officers' liability insurance in effect, the Company shall give prompt notice of the commencement
of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result
of such proceeding in accordance with the terms of such policies.

 

(c)          In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(d)          The
Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

(e)          The
Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company
as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses
from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

 

9.           Exception
to Right of Indemnification. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this
Agreement to make any indemnity in connection with any claim made against Indemnitee:

 

(a)          for
which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except
with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision, provided, that the foregoing
shall not affect the rights of Indemnitee or the Fund Indemnitors set forth in Section 8(c) above; or

 

(b)          for
an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within
the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory
law or common law; or

 

    	9

    	 

    

 

(c)          in
connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of
any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless
(i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, or (ii) the Company provides the
indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

10.          Duration
of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is
an officer or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee
shall be subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his Corporate Status,
whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification
can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or
otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal
and legal representatives.

 

11.          Security.
To the extent requested by Indemnitee and approved by the Board, the Company may at any time and from time to time provide security
to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral.
Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee.

 

12.          Enforcement.

 

(a)          The
Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby
in order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is
relying upon this Agreement in serving as an officer or director of the Company.

 

(b)          This
Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter
hereof.

 

(c)          The
Company shall not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting
the Indemnitee's rights to receive advancement of expenses under this Agreement.

 

13.          Definitions.
For purposes of this Agreement:

 

(a)          “Corporate
Status” describes the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company
or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or
was serving at the express written request of the Company.

 

    	10

    	 

    

 

(b)          “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.

 

(c)          “Enterprise”
shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise
that Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary.

 

(d)          “Expenses”
shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating,
participating, or being or preparing to be a witness in a Proceeding, or responding to, or objecting to, a request to provide discovery
in any Proceeding. Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding [and
any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments
under this Agreement], including without limitation the premium, security for, and other costs relating to any cost bond, supersede
as bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee
or the amount of judgments or fines against Indemnitee.

 

(e)          “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such
party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification
agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred
to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating
to this Agreement or its engagement pursuant hereto.

 

(f)          “Proceeding”
includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of
the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved
as a party or otherwise, by reason of his or her Corporate Status, by reason of any action taken by him or of any inaction on his
part while acting in his or her Corporate Status; in each case whether or not he is acting or serving in any such capacity at the
time any liability or expense is incurred for which indemnification can be provided under this Agreement; including one pending
on or before the date of this Agreement, but excluding one initiated by an Indemnitee pursuant to Section 7 of this Agreement
to enforce his rights under this Agreement.

 

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14.          Severability.
The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.
Further, the invalidity or unenforceability of any provision hereof as to either Indemitee or Appointing Stockholder shall in no
way affect the validity or enforceability of any provision hereof as to the other. Without limiting the generality of the foregoing,
this Agreement is intended to confer upon Indemnitee and Appointing Stockholder indemnification rights to the fullest extent permitted
by applicable laws. In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified,
consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

 

15.          Modification
and Waiver. No supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing
by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

16.          Notice
By Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise receiving any
summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may
be subject to indemnification covered hereunder. The failure to so notify the Company shall not relieve the Company of any obligation
which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially
prejudices the Company.

 

17.          Notices.
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during
normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent:

 

		(a)	To Indemnitee at the address set forth below Indemnitee signature hereto.

 

		(b)	To the Company at:

 

12744 San Fernando Road

Building 3

Sylmar, California 91342

Attention: Robert J. Greenberg, M.D., CEO

 

or to such other address
as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

18.          Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same the same instrument. Counterparts may be delivered via facsimile,
electronic mail or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered
and be valid and effective for all purposes. 

 

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19.          Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

20.          Governing
Law and Consent to Jurisdiction. The validity, interpretation, construction and performance of this Agreement, and all acts
and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the State of California, without giving effect to principles of conflicts of law. For purposes of
litigating any dispute that may arise directly or indirectly from this Agreement, the parties hereby submit and consent to the
exclusive jurisdiction of the State of California and agree that any such litigation shall be conducted only in the courts of California
or the federal courts of the United States, located in California and no other courts.

 

SIGNATURE PAGE TO FOLLOW

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Indemnification Agreement on and as of the day and year first above written.

 

	 	COMPANY
	 	 	 
	 	By:	 
	 	Name:  	Robert Greenberg, M.D.
	 	Title:	President/CEO

 

	 	INDEMNITEE:
	 	 
	 	 
	 	Signature
	 	 
	 	Name:	 

 

	 	Address:	 
	 	 	 
	 	 	 
	 	 	 

 

    	14

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