Document:

U.S. $291,200,000 Credit Facility Agreement

 Exhibit 4.21 
 EXECUTION VERSION 
 AGREEMENT 
 DATED MARCH 17, 2008 
 US$291,200,000 CREDIT FACILITY 
 for 
 SEASPAN CORPORATION

 (as Borrower) 
 arranged by 
 FORTIS BANK S.A./N.V., NEW YORK BRANCH 
 and THE EXPORT-IMPORT BANK OF KOREA 
 with 
 FORTIS BANK S.A./N.V., NEW YORK BRANCH 
 as Facility Agent and Security Trustee 
 and 
 FORTIS BANK S.A./N.V., NEW YORK BRANCH 
 as Swap Agent 
 STEPHENSON HARWOOD 
 One St
Paul’s Churchyard 
 London EC4M 8SH 
 Tel: +44 (0)20 7329 4422 
 Fax: +44 (0)20 7329 7100 
 (Ref: 814) 

 CONTENTS 
  

					
	  	  	 	  	Page
	Clause	  	
			
	  1.	  	Interpretation	  	1
	  2.	  	Facility and Purpose	  	19
	  3.	  	Conditions Precedent	  	20
	  4.	  	Utilisation	  	21
	  5.	  	Repayment	  	23
	  6.	  	Prepayment and Cancellation	  	24
	  7.	  	Interest	  	28
	  8.	  	Terms	  	30
	  9.	  	Market Disruption	  	31
	10.	  	Taxes	  	32
	11.	  	Increased Costs	  	34
	12.	  	Retention Account	  	35
	13.	  	Payments	  	36
	14.	  	Representations	  	39
	15.	  	Information Covenants	  	43
	16.	  	General Covenants	  	46
	17.	  	Financial Covenants	  	59
	18.	  	[Intentionally Omitted]	  	63
	19.	  	Default	  	63
	20.	  	Security	  	67
	21.	  	The Administrative Parties	  	70
	22.	  	Evidence and Calculations	  	75
	23.	  	Fees	  	75
	24.	  	Indemnities and Break Costs	  	76
	25.	  	Expenses	  	79
	26.	  	Waiver of Consequential Damages	  	79
	27.	  	Amendments and Waivers	  	79
	28.	  	Changes to the Parties	  	81
	29.	  	Disclosure of Information	  	84
	30.	  	Set-Off	  	84
	31.	  	Pro Rata Sharing	  	85
	32.	  	Severability	  	86
	33.	  	Counterparts	  	86
	34.	  	Notices	  	86
	35.	  	Language	  	88
	36.	  	Governing Law	  	88
	37.	  	Enforcement	  	88
		
	Schedule	  	
			
	  1.	  	Original Lenders	  	90
	  2.	  	Part 1 Initial Condition Precedent Documents	  	91
		  	Part 2 Delivery Date Conditions Precedent Documents	  	93
	  3.	  	Conditions Subsequent to Delivery Date	  	96
	  4.	  	Form of Payment Request	  	97
	  5.	  	Calculation of the Mandatory Cost	  	98
	  6.	  	Form of Transfer Certificate	  	100
	   7.
	  	Repayment Schedule	  	102

					
	  8.	  	Compliance Certificate	  	103
	  9.	  	Annual Compliance Certificate	  	104
	10.	  	Standing Payment Instructions	  	106
	11.	  	Estimated Addback Relating to Certain Delivered Vessels* Depreciation	  	107
		
	Appendix	  	
			
	  1.	  	Form of Insurances Assignment	  	111
	  2.	  	Form of Mortgage	  	112
	  3.	  	Form of Deed of Covenants	  	113
	  4.	  	Form of Time Charter and Earnings Assignment	  	114
	  5.	  	Form of Pre-delivery Assignment	  	115
	  6.	  	Form of Management Agreement Assignment	  	116
		
	Signatories	  	117

 THIS AGREEMENT is dated
                     2008 
 BETWEEN: 

 

	(1)	SEASPAN CORPORATION, a corporation incorporated according to the laws of the Republic of the Marshall Islands with its registered office at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands MH96960 (the Borrower); 

  

	(2)	FORTIS BANK S.A./N.V., NEW YORK BRANCH, acting as sole bookrunner; 

  

	(3)	FORTIS BANK S.A./N.V., NEW YORK BRANCH, and THE EXPORT-IMPORT BANK OF KOREA, as mandated lead arrangers (the Arrangers); 

  

	(4)	FORTIS BANK S.A./N.V., NEW YORK BRANCH, SWEDBANK AB (PUBL) and THE EXPORT-IMPORT BANK OF KOREA, as original lenders (the Original Lenders);

  

	(5)	FORTIS BANK S.A./N.V., NEW YORK BRANCH, acting as administrative agent and security trustee (in such capacity the Facility Agent); and 

  

	(6)	FORTIS BANK S.A./N.V. NEW YORK BRANCH as Swap agent (the Swap Agent). 

 IT IS AGREED as follows: 
  

	1.	INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement: 
 Account Bank means Fortis Bank (Nederland) N.V. situated at Coolsingel 93, 3012 AE Rotterdam, The Netherlands or any other bank or financial
institution with which, with the prior written consent of the Facility Agent (acting in accordance with the instructions of the Majority Lenders), the Retention Account is at any time held. 
 Administrative Party means the Arranger or the Facility Agent. 
 Advisory Fee means the advisory fee payable in accordance with Clause 23.3. 
 Affiliate means a
Subsidiary or a Holding Company of a person or any other Subsidiary of that Holding Company. 
 Agreement means this credit agreement,
including any schedules or appendices hereto, as amended from time to time. 
 Annual Compliance Certificate means the form of
certificate attached at Schedule 9 (Annual Compliance Certificate). 
 Applicable Interest Rate means any of the Pre-Delivery Tranche A
Interest Rate, the Pre-Delivery Tranche B Interest Rate, the Pre-Delivery Revolver Interest Rate, the Post-Delivery Tranche A Interest Rate, the Post-Delivery Tranche B Interest Rate or the Post-Delivery Revolver Interest Rate. 
 Applicable Law means any or all applicable law (whether civil, criminal or administrative), common law, statute, statutory instrument, treaty,
convention, regulation, directive, by-law, 

 
demand, decree, ordinance, injunction, resolution, order, judgment, rule, permit, licence or restriction (in each case having the force of law) and codes of
practice or conduct, circulars and guidance notes generally accepted and applied by the global container shipping industry, in each case of any government, quasi-government, supranational, federal, state or local government, statutory or regulatory
body, court, agency or association relating to all laws, rules, directives and regulations, national or international, public or private in any applicable jurisdiction from time to time. 
 Applicable Margin means, in respect of the Tranche A Loan, the aggregate of the CIRR and the Exposure Margin, in respect of the Tranche B Loan,
either the Pre-Delivery Tranche B Margin or the Post-Delivery Tranche B Margin as the case may be and, in respect of the Revolving Credit, either the Pre-Delivery Revolver Margin or the Post-Delivery Revolver Margin, as the case may be. 

Approved Valuers means Braemar Seascope Shipping Limited and H. Clarkson & Co. Ltd. or such other independent reputable shipbroker
acceptable to the Facility Agent and the Borrower. 
 Break Costs means the amount (if any) which a Lender is entitled to receive under
this Agreement as compensation if any part of a Loan or overdue amount is prepaid other than on the last day of a Term for such Loan or overdue amount or, as the case may be, the amount (if any) which the Swap Bank is entitled to receive under this
Agreement as compensation if the Swap Agreement is terminated early, each as determined pursuant to Clause 24.3 (Break Costs) hereof. 
 Builder means: 
  

	 	(a)	in respect of Vessel 1, Hyundai Samho Heavy Industries Co. Ltd., a corporation organised and existing under the laws of the Republic of Korea; and 

  

	 	(b)	in respect of Vessel 2, Hyundai Heavy Industries Co. Ltd., a corporation organised and existing under the laws of the Republic of Korea 

 Business Day means a day (other than a Saturday or a Sunday) on which banks are open for general business in London, England; New York, the United
States of America; Vancouver, Canada; Seoul, the Republic of Korea and Rotterdam, the Netherlands. 
 Cash and Cash Equivalents shall
have the meaning given to it in Clause 17.1 (Financial Covenants). 
 Change of Control means the acquisition, directly or indirectly,
by any person or group other than the Seaspan Group of beneficial ownership of more than fifty per cent. (50%) of the aggregate outstanding voting power of the equity interests of the Borrower. 
 Charter Breach means: 
  

	 	(a)	the failure by the Charterer to make payment of hire under a Time Charter for a period of three (3) months; or 

  

	 	(b)	any other breach by the Charterer which would give the Borrower the right to terminate the applicable Time Charter. 

 Charter Default means a default by the Charterer that results in the Borrower having an obligation to prepay all or any of the Loans pursuant to
Clause 16.25(b) (Charter Breach, Expiration or Termination of Time Charter). 
  

 2 

 Charterer means COSCO Container Lines Co., Ltd. of Shanghai, People’s Republic of China, or
any substitute charterer from time to time in accordance with the provisions of Clause 16.25 (Charter Breach, Expiration or Termination of Time Charter). 
 CIRR means 5.33% per annum, being the commercial interest reference rate quoted by the OECD on the date on which KEXIM received the formal application for the Loans from the Borrower. 
 Commitment means: 
  

	 	(a)	for an Original Lender, the aggregate amount set opposite its name in Schedule 1 (Original Lenders) under the heading Commitments and the amount of any other commitment to
advance funds under this Agreement it acquires; and 

  

	 	(b)	for any other Lender, the amount of any commitment to advance funds under this Agreement it acquires, 

 to the extent not cancelled, transferred or reduced under this Agreement. 
 Compliance Certificate means the form of certificate attached at Schedule 8 (Compliance Certificate). 
 Confidentiality Undertaking means a confidentiality undertaking in a form agreed between the Borrower and the Facility Agent. 
 Date of Total Loss means, in respect of a Vessel, the date of Total Loss of that Vessel which date shall be deemed to have occurred: 
  

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

  

	 	(b)	in the case of a constructive total loss, upon the date and at the time notice of abandonment is given to the Insurers for the time being (provided a claim for total loss is
admitted by such Insurers) or, if such Insurers do not forthwith admit such a claim, at the earliest of the date and time at which either a total loss is subsequently admitted by the Insurers or a total loss is subsequently adjudged by a competent
court of law or arbitration tribunal to have occurred or one hundred and eighty (180) days from the date of notice of abandonment; 

  

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

  

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

  

	 	(e)	in the case of capture, seizure, arrest, detention, requisition for hire or confiscation by any government or by persons acting or purporting to act on behalf of any government or
by any other person which deprives the Borrower or, as the case may be, the relevant Charterer of the use of that Vessel for more than sixty (60) days, upon the expiry of the period of sixty (60) days after the date upon which the relevant
capture, seizure, arrest, detention, requisition or confiscation occurred. 

  

 3 

 Deed of Covenants means, in respect of a Vessel, the deed of covenants entered into or to be
entered into by the Borrower and the Facility Agent collateral to the Mortgage over that Vessel in the form of Appendix 3. 
 Default
means: 
  

	 	(a)	an Event of Default; or 

  

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

 Delivery Date means, in respect of a Vessel, the date of actual delivery of that Vessel to the Borrower
under the terms of the relevant Shipbuilding Contract. 
 Delivery Date Instalment means, in respect of a Vessel, the amount due and
payable by the Borrower in accordance with the relevant Shipbuilding Contract and to be deposited at a bank designated by the relevant Builder on or at least three (3) Business Days prior to the relevant Delivery Date under that Shipbuilding
Contract. 
 Dollars or US$ means the lawful currency for the time being of the United States of America. 
 Drawing means, in respect of any Loan under the Facility, the amount of each advance made by the Lenders. 
 Earnings means, in respect of a Vessel, all present and future moneys and claims which are earned by or become payable to or for the account of the
Borrower in connection with the operation or ownership of that Vessel and including but not limited to: 
  

	 	(a)	freights, passage and hire moneys (howsoever earned); 

  

	 	(b)	remuneration for salvage and towage services; 

  

	 	(c)	demurrage and detention moneys; 

  

	 	(d)	all moneys and claims in respect of the requisition for hire of that Vessel; and 

  

	 	(e)	payments received in respect of any off-hire insurance. 

 Environment means: 
  

	 	(a)	any land including, without limitation, surface land and sub-surface strata, sea bed or river bed under any water (as referred to below) and any natural or man-made structures;

  

	 	(b)	water including, without limitation, coastal and inland waters, surface waters, ground waters and water in drains and sewers; and 

  

	 	(c)	air including, without limitation, air within buildings and other natural or man-made structures above or below ground. 

 Environmental Approvals means any permit, licence, approval, ruling, variance, exemption or other authorisation required under applicable
Environmental Laws. 
  

 4 

 Environmental Claim means any claim by any person or persons or any governmental, judicial or
regulatory authority which arises out of any breach, contravention or violation of Environmental Law or of the existence of any liability or potential liability arising from such breach, contravention or violation or the presence of Hazardous
Material in contravention of Environmental Laws. In this context, claim means: a claim for damages, compensation, fines, penalties or any other payment of any kind whether or not similar to the foregoing; an order or direction to take, or not to
take, certain action or to desist from or suspend certain action by any governmental, judicial or regulatory authority; and any form of enforcement or regulatory action. 
 Environmental Laws means any or all Applicable Law relating to or concerning: 
  

	 	(a)	pollution or contamination of the Environment, any ecological system or any living organisms which inhabit the Environment or any ecological system; 

  

	 	(b)	the generation, manufacture, processing, distribution, use (including abuse), treatment, storage, disposal, transport or handling of Hazardous Materials; and

  

	 	(c)	the emission, leak, release, spill or discharge into the Environment of noise, vibration, dust, fumes, gas, odours, smoke, steam, effluvia, heat, light, radiation (of any kind),
infection, electricity or any Hazardous Material and any matter or thing capable of constituting a nuisance or an actionable tort or breach of statutory duty of any kind in respect of such matters, 

 including, without limitation, the following laws of the United States of America: the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended, the Hazardous Materials Transportation Act, as amended, the Oil Pollution Act of 1990, as amended, the Resource Conservation and Recovery Act, as amended, and the Toxic Substances Control Act, as amended, together, in each
case, with the regulations promulgated and the guidance issued pursuant thereto. 
 Environmental Representative means the Borrower and
the Manager together with their respective employees and all of those persons for whom the Borrower or the Manager is responsible under any Applicable Law in respect of any activities undertaken in relation to any of the Vessels. 
 Equity Contribution means, in respect of each Vessel, no less than twenty per cent (20%) of the Vessel Delivered Costs to be contributed by
the Borrower towards the cost of acquiring that Vessel. 
 Event of Default means an event specified as such in Clause 19 (Default) of
this Agreement. 
 Excess Risks means, in respect of a Vessel: 
  

	 	(a)	the proportion of claims for general average, salvage and salvage charges which are not recoverable as a result of the value at which that Vessel is assessed for the purpose of such
claims exceeding her hull and machinery insured value; and 

  

	 	(b)	collision liabilities not recoverable in full under the hull and machinery insurance by reason of those liabilities exceeding such proportion of the insured value of that Vessel as
is covered by the hull and machinery insurance. 

 Exposure Margin means 0.65% per annum. 
  

 5 

 Facility means the credit facility made available under this Agreement. 
 Facility Office means in respect of a Lender, the office through which that Lender will perform its obligations under this Agreement from time to
time, which at the date of this Agreement is the address shown for such Lender in Schedule 1 (Original Lenders) or such other address as a Lender may notify to the Facility Agent from time to time. 
 Fee Letter means any letter entered into by reference to this Agreement between one or more Administrative Parties and the Borrower setting out the
amount of certain fees referred to in this Agreement. 
 Finance Document means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	each Security Document; 

  

	 	(c)	the Swap Agreement; 

  

	 	(d)	the Fee Letter; 

  

	 	(e)	each Manager’s Undertaking; 

  

	 	(f)	a Transfer Certificate; and 

  

	 	(g)	any other document designated as such by the Facility Agent and the Borrower. 

 Finance Party means a Lender, a Swap Bank or an Administrative Party. 
 Financial Indebtedness
means any indebtedness for or in respect of: 
  

	 	(a)	moneys borrowed; 

  

	 	(b)	any acceptance credit; 

  

	 	(c)	any bond, note, debenture, loan stock or other similar instrument; 

  

	 	(d)	any redeemable preference share; 

  

	 	(e)	any agreement treated as a finance or capital lease in accordance with U.S. GAAP; 

  

	 	(f)	receivables sold or discounted (otherwise than on a non-recourse basis); 

  

	 	(g)	the acquisition cost of any asset to the extent payable after its acquisition or possession by the party liable where the deferred payment is arranged primarily as a method of
raising finance or financing the acquisition of that asset; 

  

	 	(h)	any derivative transaction protecting against or benefiting from fluctuations in any rate or price (and, except for non-payment of an amount, the then mark to market value of the
derivative transaction will be used to calculate its amount); 

  

	 	(i)	any other transaction (including any forward sale or purchase agreement) which has the commercial effect of a borrowing; 

  

 6 

	 	(j)	any counter-indemnity obligation in respect of any guarantee, indemnity, bond, letter of credit or any other instrument issued by a bank or financial institution; or

  

	 	(k)	any guarantee, indemnity or similar assurance against financial loss of any person. 

 Hazardous Material means any element or substance, whether natural or artificial, and whether consisting of gas, liquid, solid or vapour, whether on its own or in any combination with any other element or
substance, which is listed, identified, defined or determined by any Environmental Law or other Applicable Law to be, to have been, or to be capable of being or becoming harmful to mankind or any living organism or damaging to the Environment,
including, without limitation, oil (as defined in the United States Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended). 
 Holding Company means a holding company within the meaning of section 736 of the Companies Act 1985. 
 Increased Cost means: 
  

	 	(a)	an additional or increased cost; 

  

	 	(b)	a reduction in the rate of return under a Finance Document or on its overall capital; or 

  

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

 which is incurred or suffered by a Finance Party or any of its Affiliates but only to the extent attributable to that Finance Party having entered into any Finance Document or funding or performing its obligations
under any Finance Document. 
 Instalment means, in respect of each Shipbuilding Contract, an amount due and payable by the Borrower
under the terms of that Shipbuilding Contract. 
 Insurances Assignment means, in respect of a Vessel, the assignment of the Obligatory
Insurances to be granted in favour of the Facility Agent by the Borrower in the form of Appendix 1 together with any and all notices and acknowledgements entered into in connection therewith. 
 Insurers means the underwriters or insurance companies with whom any Obligatory Insurances are effected and the managers of any protection and
indemnity or war risks association in which any of the Vessels may at any time be entered. 
 ISM Code means the International Safety
Management Code (including the guidelines on its implementation), adopted by the International Maritime Organization Assembly as Resolutions A.741(18) and A.788(19), as the same may have been or may be amended or supplemented from time to time. The
terms “safety management system”, “Safety Management Certificate”, “Document of Compliance” and “major non-conformity” shall have the same meanings as are given to them in the ISM Code. 
 ISPS Code means the International Ship and Port Facility Security Code adopted by the International Maritime Organization Assembly as the same may
have been or may be amended or supplemented from time to time. 
 Junior Revolver means the revolving credit facility in the amount of
nineteen million eight hundred and seventy one thousand six hundred Dollars (US$19,871,600) to be made available during the Pre-Delivery Period and to be fully subordinate to the Senior Revolver and to the Term Loans. 
  

 7 

 KEXIM means The Export-Import Bank of Korea. 
 KEXIM Guarantee means the guarantee agreement dated on or about the date hereof and made between the Facility Agent and KEXIM, pursuant to which
KEXIM has agreed to guarantee the payments to the Tranche B Lenders. 
 Lender means: 
  

	 	(a)	an Original Lender; or 

  

	 	(b)	any person which becomes a party to this Agreement after the date of this Agreement pursuant to Clause 28.2 (Assignment and transfers by Lenders); and Lenders means all of
them. 

 LIBOR means for a Term of any Loan or overdue amount: 
  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for the relevant currency or Term of that Loan or overdue amount, the arithmetic mean (rounded upward to four decimal places) of the rates, as
supplied to the Facility Agent at its request, quoted by the Reference Banks to leading banks in the London interbank market, 

 as of 11.00 a.m. on the second London Business Day before the start of the Term for the offering of deposits in the currency of that Loan or overdue amount for a period comparable to that Term. 
 Loans means any loan drawn down under this Facility being either a Term Loan or a Revolving Credit (each a Loan). 
 London Business Day means a day (other than a Saturday or a Sunday) on which banks are open for business in London. 
 Losses means each and every liability, loss, charge, claim, demand, action, proceeding, damage, judgment, order or other sanction, enforcement,
penalty, fine, fee, commission, interest, lien, salvage, general average, cost and expense of whatsoever nature suffered or incurred by or imposed on the Lenders. 
 Majority Lenders means Lenders: 
  

	 	(a)	whose share in the outstanding Loans and whose undrawn Commitments then aggregate exceed 66.7% of the aggregate of all the outstanding Loans and the undrawn Commitments of all the
Lenders; 

  

	 	(b)	if there is no Loan then outstanding, whose undrawn Commitments then aggregate exceed 66.7% of the Total Commitments; or 

  

	 	(c)	if there is no Loan then outstanding and the Total Commitments have been reduced to zero, whose Commitments aggregated exceed 66.7% of the Total Commitments immediately before the
reduction, provided always that in calculating the Commitment of each Lender, the Commitment amounts under the Tranche B Loan will be treated as part of KEXIM’s Commitment. 

  

 8 

 Management Agreement means the management agreement made or to be made between the Borrower and
the Manager. 
 Management Agreement Assignment means the assignment of the Management Agreement granted or to be granted in favour of
the Facility Agent by the Borrower in the form of Appendix 6 together with any and all notices and acknowledgements entered into in connection therewith. 
 Manager means Seaspan Management Services Limited of Clarendon House, 2 Church Street, Hamilton, HM 11, Bermuda or such other professional manager or managers as may be approved by the Facility Agent (acting in
accordance with the instructions of the Majority Lenders) from time to time. 
 Manager’s Undertaking means a letter of
undertaking to be issued by the Manager to the Facility Agent confirming it shall not make a claim to security ranking ahead of the Lenders’ security in respect of a Vessel in form and substance satisfactory to the Facility Agent. 

Mandatory Cost means, as the context so requires, the amount calculated by each Lender and notified to the Facility Agent in accordance with
Clause 21.16 or the aggregate of the amounts so calculated and notified. 
 Market Value means, in respect of a Vessel, the average of
two valuations each certified in Dollars and carried out by two Approved Valuers within the last six months, reporting to the Facility Agent by way of written reports in form and substance satisfactory to the Facility Agent (acting reasonably) on
the basis of a sale for prompt delivery of the Vessel for cash (free of Security Interests), on a without charter basis and at arm’s-length on normal commercial terms as between willing seller and buyer. 
 Material Adverse Effect means a material adverse effect on: 
  

	 	(a)	the ability of the Borrower to perform all of its payment obligations under this Agreement; or 

  

	 	(b)	the validity or enforceability of this Agreement. 

 Maturity Date means the last day of the Term of a Revolving Credit. 
 Maximum Available Loan Amount means, in respect
of a Vessel, the lesser of (i) eighty per cent (80%) of the Vessel Delivered Costs and (ii) one hundred and forty five million six hundred thousand Dollars (US$145,600,000) being the total of the Maximum Available Tranche A Loan
Amount, the Maximum Available Tranche B Loan Amount and the Maximum Available Revolver Amount. 
 Maximum Available Revolver Amount
means, in respect of a Vessel, twenty nine million one hundred and twenty thousand Dollars (US$29,120,000). 
 Maximum Available Tranche A
Loan Amount means, in respect of a Vessel, eighty one million five hundred and thirty six thousand Dollars (US$81,536,000). 
 Maximum
Available Tranche B Loan Amount means, in respect of a Vessel, thirty four million, nine hundred and forty four thousand Dollars (US$34,944,000). 
  

 9 

 Maximum Facility Amount means, subject to Clause 6.8 (Automatic cancellation), two hundred
and ninety one million two hundred thousand Dollars (US$291,200,000) being the total of the Maximum Available Loan Amounts for both Vessels. 
 Maximum Revolver Facility Amount means fifty eight million two hundred and forty thousand Dollars (US$58,240,000). 
 Maximum
Tranche A Facility Amount means one hundred and sixty three million seventy two thousand Dollars (US$163,072,000). 
 Maximum Tranche B
Facility Amount means sixty nine million eight hundred and eighty eight thousand Dollars (US$69,888,000). 
 Measurement Period
means, at any time, the last four (4) fiscal quarters for the Borrower provided always that until four (4) fiscal quarters have elapsed from the date of this Agreement, the period from the date of this Agreement until the date of
determination. 
 Mortgage means, in respect of a Vessel, the first priority Hong Kong ship mortgage to be given by the Borrower in
favour of the Facility Agent, in respect of each Vessel, on the Delivery Date of that Vessel in the form attached at Appendix 2. 
 Obligatory Insurances means in respect of each Vessel: 
  

	 	(a)	all contracts and policies of insurance and all entries in clubs and/or associations which are from time to time required to be effected and maintained in accordance with this
Agreement in respect of each of the Vessels; and 

  

	 	(b)	all benefits under the contracts, policies and entries under paragraph (a) above and all claims in respect of them and the return of premiums. 

 OECD means the Organisation for Economic Co-operation and Development. 
 Opportunity Costs means the amount by which: 
  

	 	(a)	the sum of the present values as determined by KEXIM, as discounted from the scheduled dates for payment of interest under this Agreement, of the amounts of interest at CIRR at the
time of the loan application which otherwise would have accrued, but for the prepayment, on the prepaid principal amount to the scheduled repayment dates exceeds 

  

	 	(b)	the sum of the present values as determined by KEXIM, as discounted from the scheduled dates for payment of interest under this Agreement, of the amount of interest which would have
accrued, but for the prepayment, on the prepaid principal amounts to the scheduled repayment dates if interest were calculated at the discount rate of CIRR in effect on the prepayment date for the period from the prepayment date until the Term Loan
Final Maturity Date. 

 Party means a party to this Agreement or any Finance Document. 
 Permitted Liens means, in respect of a Vessel: 
  

	 	(a)	Security Interests created by the Security Documents; 

  

 10 

	 	(b)	liens for unpaid crew’s wages including wages of the master and stevedores employed by the Vessel, outstanding in the ordinary course of trading for not more than one calendar
month after the due date for payment; 

  

	 	(c)	liens for salvage; 

  

	 	(d)	liens for classification or scheduled dry docking or for necessary repairs to that Vessel whose aggregate cost does not exceed US$1,500,000 at any one time in respect of that
Vessel; 

  

	 	(e)	liens for collision; 

  

	 	(f)	liens for master’s disbursements incurred in the ordinary course of trading; 

  

	 	(g)	statutory and common law liens of carriers, warehousemen, mechanics, suppliers, materials men, repairers or other similar liens, including maritime liens, in each case arising in
the ordinary course of business, outstanding for not more than one month whose aggregate value does not exceed US$500,000; and 

 in the case of paragraphs (b) to (g) inclusive provided that the amounts which give rise to such liens are paid when due (or, in the case of paragraph (b) or (g) above, within one month of such amount being outstanding)
or, if not paid when due are being disputed in good faith by appropriate proceedings (and for the payment of which adequate reserves or security are at the relevant time maintained or provided), provided further that such proceedings, whether by
payment of adequate security into Court or otherwise, do not give rise to a material risk of the relevant Vessel or any interest therein being seized, sold, forfeited or otherwise lost or of criminal liability on the Facility Agent. 
 Post-Delivery Revolver Margin means 0.85% per annum. 
 Post-Delivery Tranche A Interest Rate means the CIRR plus the Exposure Margin. 
 Post-Delivery
Tranche B Margin means 0.35% per annum. 
 Post-Delivery Period means, in respect of a Vessel, the period from the Delivery
Date of that Vessel until the Term Loan Final Maturity Date. 
 Pre-delivery Assignment means, in respect of a Vessel, the assignment
of the Shipbuilding Contract and/or the Refund Guarantees granted or to be granted by the Borrower in favour of the Facility Agent, together with all notices entered into in connection therewith, substantially in the form of the relevant document
attached as Appendix 5. 
 Pre-Delivery Period means, in respect of a Vessel, the period from the date of the First Drawing under this
Agreement in respect of the Loan relating to that Vessel, to the Delivery Date of that Vessel. 
 Pre-Delivery Revolver Margin means
0.85% per annum. 
 Pre-Delivery Tranche A Interest Rate means the CIRR plus the Exposure Margin. 
 Pre-Delivery Tranche B Margin means 0.35% per annum. 
  

 11 

 Pro Rata Share means: 
  

	 	(a)	for the purpose of determining a Lender’s share in a utilisation of the Facility, the proportion which its Commitment bears to the Total Commitments; and

  

	 	(b)	for any other purpose on a particular date: 

  

	 	(i)	the proportion which a Lender’s share of the Loans (if any) bears to all the Loans; 

  

	 	(ii)	if there is no Loan outstanding on that date, the proportion which its Commitment bears to the Total Commitments on that date; or 

  

	 	(iii)	if the Total Commitments have been cancelled, the proportion which its Commitment bore to the Total Commitments immediately before being cancelled. 

 Quarter Day means each of the 15th
 March, 15th June, 15th September, 15th December in each year provided always that such date is a Business Day. 
 Rate Fixing Day means two (2) London Business Days before the first day of a Term, or unless market practice differs in the London interbank
market for a currency, in which case the Rate Fixing Day for that currency will be determined by the Facility Agent in accordance with market practice in the London interbank market (and if quotations would normally be given by leading banks in the
London interbank market on more than one day, the Rate Fixing Day will be the last of those days). 
 Reference Banks means the
Facility Agent, Swedbank AB (publ) and any other bank or financial institution appointed as such by the Facility Agent (acting on the instructions of the Majority Lenders) under this Agreement. 
 Refund Guarantees means, in respect of a Vessel, the one or more refund guarantees, issued by a Refund Guarantor in favour of the Borrower or such
other refund guarantees as may replace the same from time to time (with the approval of the Facility Agent, acting on the instructions of the Majority Lenders). 
 Refund Guarantor means National Agricultural Cooperative Federation of Korea or such other refund guarantor (being an international bank with a minimum rating of BBB+ by S&P or any other bank approved by
the Facility Agent, acting on the instructions of the Majority Lenders) as may replace the same from time to time. 
 Related Contracts
means any or all of the following (as the context requires): 
  

	 	(a)	the Shipbuilding Contracts; 

  

	 	(b)	the Refund Guarantees; 

  

	 	(c)	the Obligatory Insurances; 

  

	 	(d)	the Time Charters; 

  

	 	(e)	the Management Agreement; and 

  

	 	(f)	the KEXIM Guarantee. 

  

 12 

 Release means an emission, spill, release or discharge into or upon the air, surface water,
groundwater, or soils of any Hazardous Materials for which the Borrower has any liability under Environmental Law, except in accordance with a valid Environmental Approval. 
 Repayment Date means, in respect of a Term Loan, each date which is either (or both) a Tranche A Repayment Date and/or a Tranche B Repayment Date.

 Repayment Instalment means, in respect of a Term Loan, each instalment which is either (or both) a Tranche A Repayment Instalment
and/or a Tranche B Repayment Instalment payable for repayment of that Term Loan in accordance with the relevant Repayment Schedule. 
 Repayment Schedule means the schedule of Repayment Dates as detailed in Schedule 7 (Repayment Schedule), to be replaced as required in accordance with Clause 5.1(b). 
 Request means a request made by the Borrower for a Drawing, substantially in the form of Schedule 4 (Form of Request). 
 Required Insurance Amount means, in respect of a Vessel, at any date of determination, 120% of the aggregate principal amount of the outstanding
Loans which are attributable to such Vessel. 
 Requisition Compensation means, in respect of a Vessel, all moneys or other
compensation payable by reason of requisition for title to, or other compulsory acquisition of, that Vessel including requisition for hire. 
 Retention Account means the bank account to be opened by the Borrower with the Account Bank and designated “Seaspan Corporation—Retention Account”. 
 Retention Account Charge means the fixed charge or, as the case may be, pledge in respect of all monies standing to the credit from time to time of
the Retention Account granted or to be granted by the Borrower in favour of the Facility Agent on or about the date of this Agreement, together with any and all notices and acknowledgements entered into in connection therewith. 
 Revolver Lenders means the lenders detailed in Schedule 1 as Revolver Lenders and any New Lenders in respect of a Revolving Credit. 
 Revolving Credit means, in respect of a Vessel, all moneys advanced to the Borrower by the Revolver Lenders. 
 Revolving Credit Availability Period means the period from and including the date of this Agreement, to and including the Revolving Credit Final
Maturity Date. 
 Revolving Credit Final Maturity Date means the earlier of (a) the twelfth anniversary of the Delivery Date of
the Vessel which is delivered latest in time and (b) 31 December 2023. 
 Rollover Loan means one or more Revolving Credit:

  

	 	(a)	to be made on the same day that a maturing Revolving Credit is due to be repaid in accordance with Clause 5.2(a); 

  

	 	(b)	the aggregate amount of which is equal to or less than the maturing Revolving Credit; and 

  

 13 

	 	(c)	to be made for the purpose of refinancing a maturing Revolving Credit. 

 Screen Rate means, for LIBOR, and in respect of a Term, the percentage rate per annum for a period substantially the same as the relevant Term displayed on page 3750 of the Reuters screen. If the relevant page
is replaced or the service ceases to be available, the Facility Agent may specify another page or service displaying the appropriate rate. 
 Seaspan Group means: 
  

	 	(a)	any of Kyle Washington, Kevin Washington, Gerry Wang, Graham Porter, Dennis Washington or any of their estate, spouse, and/or descendants; or 

  

	 	(b)	any trust for the benefit of the persons listed in (a) above; or 

  

	 	(c)	an Affiliate of any of the persons listed in (a) or (b) above. 

 Secured Liabilities means all present and future obligations and liabilities (actual or contingent) of the Borrower to the Finance Parties or any of them under or in connection with any Finance Document.

 Security Agreements means: 
  

	 	(a)	the Pre-delivery Assignments; 

  

	 	(b)	the Mortgages; 

  

	 	(c)	the Deeds of Covenant; 

  

	 	(d)	the Insurances Assignments; 

  

	 	(e)	the Management Agreement Assignment; 

  

	 	(f)	the Manager’s Undertaking; 

  

	 	(g)	the Time Charter and Earnings Assignments; 

  

	 	(h)	the Retention Account Charge; and 

  

	 	(i)	any other document designated as such in writing by the Borrower and the Facility Agent. 

 Security Assets means any asset which is the subject of a Security Interest created by a Security Document and any interest or profit in respect of an investment in accordance with Clause 20.5 (Investments).

 Security Document means: 
  

	 	(a)	each Security Agreement; and 

  

	 	(b)	any other document evidencing or creating security over any asset of the Borrower to secure any obligation of the Borrower to the Finance Parties or any of them under the Finance
Documents. 

 Security Interest means any mortgage, pledge, lien, charge, assignment, hypothecation or security interest
or any other agreement or arrangement having a similar effect. 
  

 14 

 Senior Revolver means the revolving credit facility in the amount of thirty one million seven
hundred and ninety four thousand five hundred and sixty Dollars (US$31,794,560) to be made available during the Pre-Delivery Period. 
 Shipbuilding Contract means, in respect of each Vessel, the agreement between, in certain cases amongst others, the relevant Builder and the Borrower dated 8 September 2007. 
 S & P means Standard & Poor’s Ratings Group and any successor thereto. 
 Subsidiary means: 
  

	 	(a)	a subsidiary within the meaning of section 736 of the Companies Act 1985; and 

  

	 	(b)	unless the context otherwise requires, a subsidiary undertaking within the meaning of section 258 of the Companies Act 1985. 

 Swap Agent means Fortis Bank S.A./N.V. New York Branch as agent for and on behalf of itself and the Swap Banks. 
 Swap Agreement means the ISDA Master Agreement entered into or to be entered into between (amongst others) the Swap Banks and the Borrower in
respect of interest rate swaps in respect of any Tranche B Loan or Revolving Credit. 
 Swap Banks means the Swap Agent, any Tranche B
Lender and any Revolver Lender which provides interest rate hedging facilities to the Borrower in respect of any Tranche B Loan or Revolving Credit. 
 Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature (including, without limitation, any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).

 Tax Deduction means a deduction or withholding for or on account of Tax made from a payment under a Finance Document by a payer for
or on account of Tax imposed on that payer by any jurisdiction from which such payment is made or within which such payment arises. 
 Tax
Payment means a payment made by the Borrower to a Lender in any way relating to a Tax Deduction or under any indemnity given by the Borrower in respect of Tax under any Finance Document. 
 Term means each period determined under this Agreement by reference to which interest payable on a Revolving Credit or a Drawing under a Term Loan,
or an overdue amount is calculated, as the case may be. 
 Term Loan means either the Tranche A Loan or the Tranche B Loan and Term
Loans means both together. 
 Term Loan Availability Period means, in respect of the Term Loans in respect of a Vessel, the period
from and including the date of this Agreement to and including the later of (a) the date which falls six months from the relevant scheduled delivery date of that Vessel as at the date of the Agreement and (b) the last day on which delivery
of the relevant Vessel may occur under the relevant Shipbuilding Contract. 
  

 15 

 Term Loan Final Maturity Date means, in respect of the Term Loans in respect of a Vessel, the
earlier of (a) the day which is the twelfth anniversary of the Delivery Date of the Vessel to which those Term Loans relate and (b) 31 December 2023. 
 Time Charter means, in respect of each Vessel, the time charterparty entered into by the Borrower and the Charterer or such other time charterparty entered into from time to time in respect of a Vessel in
accordance with this Agreement. 
 Time Charter and Earnings Assignment means, in respect of a Vessel, the assignment of the Time
Charter and the Earnings granted or to be granted by the Borrower in favour of the Facility Agent in the form attached at Appendix 4, together with any and all notices entered into in connection therewith. 
 Total Commitments means the aggregate of the Commitments of all the Lenders. 
 Total Loss means in relation to a Vessel: 
  

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

  

	 	(b)	requisition for title or other compulsory acquisition of that Vessel otherwise than by requisition for hire; 

  

	 	(c)	capture, seizure, arrest, detention, or confiscation of that Vessel by any government or by persons acting or purporting to act on behalf of any government or by any other person
which deprives the Borrower of that Vessel or as the case may be the Charterer of the use of that Vessel for more than sixty (60) days after that occurrence; and 

  

	 	(d)	requisition for hire of that Vessel by any government or by persons acting or purporting to act on behalf of any government which deprives the Borrower or as the case may be the
Charterer of the use of that Vessel for a period of sixty (60) days, other than a charter of the Vessel to a government or government agency approved by the Borrower and by the Facility Agent (acting on the instructions of the Majority
Lenders). 

 Tranche A Lenders means the lenders detailed in Schedule 1 as Tranche A Lenders together with any New
Lenders in respect of a Tranche A Loan. 
 Tranche A Loan means, in respect of a Vessel, all moneys advanced to the Borrower by the
Tranche A Lenders. 
 Tranche A Repayment Date means, in respect of a Tranche A Loan, each of the forty eight (48) dates which
fall on the Quarter Days as detailed in the Repayment Schedule. In the event that the Delivery Date of a Vessel to which a Tranche A Loan relates is a Quarter Day, the first Repayment Date in respect of that Tranche A Loan shall be the next Quarter
Day. If the Delivery Date of a Vessel to which a Tranche A Loan relates falls on any day other than a Quarter Day, the first repayment date of that Tranche A Loan shall be the second Quarter Day after the Delivery Date of the Vessel to which that
Tranche A Loan relates. In any event, the final Tranche A Repayment Date shall fall on the Term Loan Final Maturity Date. 
 Tranche A
Repayment Instalment means, in respect of a Tranche A Loan, each instalment which is payable for repayment of that Loan in accordance with the relevant Repayment Schedule. 
  

 16 

 Tranche B Lenders means the lenders detailed in Schedule 1 as Tranche B Lenders together with any
New Lenders in respect of a Tranche B Loan. 
 Tranche B Loan means, in respect of a Vessel, all moneys advanced to the Borrower by the
Tranche B Lenders. 
 Tranche B Repayment Date means, in respect of a Tranche B Loan, each of the forty eight (48) dates which
fall on the Quarter Days as detailed in the Repayment Schedule. In the event that the Delivery Date of a Vessel to which a Tranche B Loan relates is a Quarter Day, the first Repayment Date in respect of that Tranche B Loan shall be the next Quarter
Day. If the Delivery Date of a Vessel to which a Tranche B Loan relates falls on any day other than a Quarter Day, the first repayment date of that Tranche B Loan shall be the second Quarter Day after the Delivery Date of the Vessel to which that
Tranche B Loan relates. In any event, the final Tranche B Repayment Date shall fall on the Term Loan Final Maturity Date. 
 Tranche B
Repayment Instalment means, in respect of a Tranche B Loan, each instalment which is payable for repayment of that Loan in accordance with the relevant Repayment Schedule. 
 Transfer Certificate means a certificate, substantially in the form of Schedule 6 (Form of Transfer Certificate), with such amendments as the
Facility Agent and the Borrower may approve or reasonably require or any other form agreed between the Facility Agent and the Borrower. 
 U.S. GAAP means generally accepted accounting principles adopted and accepted in the United States of America (i) on the date of this Agreement when used in the context of calculating the financed covenants set out in Clause 17
and (ii) otherwise, from time to time. 
 Utilisation Date means each date on which the Facility or any part thereof is utilised.

 Vessel 1 means the 13,100 TEU vessel to be constructed in accordance with the relevant Shipbuilding Contract, with Hull No. S453.

 Vessel 2 means the 13,100 TEU vessel to be constructed in accordance with the relevant Shipbuilding Contract, with Hull
No. 2178. 
 Vessel Contract Price means, in respect of each Vessel, one hundred and sixty five million two hundred and eighty
four thousand Dollars (US$165,284,000) as evidenced in the relevant Shipbuilding Contract 
 Vessel Costs means, in respect of each
Vessel, the aggregate of: 
  

	 	(a)	costs and expenses in connection with the Shipbuilding Contract in excess of the Vessel Contract Price (such costs and expenses to be documented to the reasonable satisfaction of
the Facility Agent); 

  

	 	(b)	fees, commissions, interest, costs and expenses due prior to the Delivery Date under the Finance Documents; and 

  

	 	(c)	legal fees. 

 Vessel Delivered Costs means, in
respect of each Vessel, the aggregate of: 
  

	 	(a)	the Vessel Contract Price; and 

  

 17 

	 	(b)	the Vessel Costs; 

 which amount shall be in the maximum
amount of one hundred and eighty two million Dollars (US$182,000,000) in total per Vessel and three hundred and sixty four million Dollars (US$364,000,000) in total. 
 Vessels means together Vessel 1 and Vessel 2 and Vessel means either of them. 
  

	1.2	Construction 

  

	(a)	In this Agreement, unless the contrary intention appears, a reference to: 

  

	 	(i)	an amendment includes a supplement, novation, restatement or re-enactment and amended will be construed accordingly; 

 assets includes present and future properties, revenues and rights of every description; 
 an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration or notarisation; 

disposal means a sale, transfer, grant, lease or other disposal, whether voluntary or involuntary, and dispose will be construed
accordingly; 
 indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of
money; 
 a person includes any individual, company, corporation, unincorporated association or body (including a partnership, trust,
joint venture or consortium), government, state, agency, organisation or other entity whether or not having separate legal personality and their successors in title, permitted assigns and permitted transferees; and 
 a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having
the force of law, being of a type with which any person to which it applies is accustomed to comply) of any governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

  

	 	(ii)	a currency is a reference to the lawful currency for the time being of the relevant country; 

  

	 	(iii)	a Default being outstanding means that it has not been cured, remedied or waived; 

  

	 	(iv)	a provision of law is a reference to that provision as extended, applied, amended or re-enacted and includes any subordinate legislation; 

  

	 	(v)	a Clause, a Subclause or a Schedule is a reference to a clause or subclause of, or a schedule to, this Agreement; 

  

	 	(vi)	a Finance Document or another document is a reference to that Finance Document or other document as amended; 

  

	 	(vii)	a time of day is a reference to London time; and 

  

 18 

	 	(viii)	words importing the plural shall include the singular and vice versa. 

  

	(b)	Unless the contrary intention appears, a reference to a month or months is a reference to a period starting on (and including) one day in a calendar month and ending
on (but excluding) the numerically corresponding day in the next calendar month or the calendar month in which it is to end, except that: 

  

	 	(i)	if the numerically corresponding day is not a Business Day, the period will end on the next Business Day in that month (if there is one) or the preceding Business Day (if there is
not); 

  

	 	(ii)	if there is no numerically corresponding day in that month, that period will end on the last Business Day in that month; and 

  

	 	(iii)	notwithstanding subparagraph (i) above, a period which commences on the last Business Day of a month will end on the last Business Day in the next month or the calendar month
in which it is to end, as appropriate. 

  

	(c)	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of
Third Parties) Act 1999 and notwithstanding any term of any Finance Document, the consent of any third party is not required for any variation (including any release or compromise of any liability) or termination of that Finance Document.

  

	(d)	Unless the contrary intention appears or unless the context otherwise permits: 

  

	 	(i)	a reference to a Party will not include that Party if it has ceased to be a Party under this Agreement; 

  

	 	(ii)	a word or expression used in any other Finance Document or in any notice given in connection with any Finance Document has the same meaning in that Finance Document or notice as in
this Agreement; and 

  

	 	(iii)	any obligation of the Borrower under the Finance Documents which is not a payment obligation remains in force in accordance with its terms for so long as any payment obligation of
the Borrower is or may be outstanding under the Finance Documents. 

  

	(e)	The headings in this Agreement do not affect its interpretation. 

  

	2.	FACILITY AND PURPOSE 

  

	2.1	Facility 

 Subject to the terms of this Agreement,
the Lenders shall make available to the Borrower a term loan and revolving credit facility in a maximum aggregate amount equal to the Maximum Facility Amount. The term loan facility shall be made available in two Term Loans, one per Vessel, and each
Term Loan shall be capable of being drawn, up to the aggregate of the Maximum Available Tranche A Loan Amount and Maximum Available Tranche B Loan Amount on the dates described in Clause 4.2(a). The revolving credit facility shall be made available,
in the Pre-Delivery Period in two facilities; the Junior Revolver and the Senior Revolver and in the Post-Delivery Period the Revolving Credit shall be capable of being drawn, up to the Maximum Revolver Facility Amount on the dates described in
Clause 4.2(a). 
  

 19 

	2.2	Purpose 

 Each Loan may be used only in or towards:

  

	 	(a)	financing or refinancing the Vessel Delivered Costs of a Vessel or Vessels including reimbursing the Borrower for any amount of Vessel Delivered Costs paid by the Borrower, provided
always that sums included in the Vessel Delivered Costs and not covered by the aggregate amount of the Refund Guarantees (other than the Delivery Date Instalment) shall not exceed one million Dollars (US$1,000,000) per Vessel; and

  

	 	(b)	in respect of the Revolving Credit only, general corporate purposes during the Post-Delivery Period. 

  

	2.3	No obligation to monitor 

 No Finance Party is
obliged to monitor or verify the utilisation of any Loan. 
  

	2.4	Nature of a Finance Party’s rights and obligations 

 Unless otherwise agreed by all the Finance Parties: 
  

	 	(a)	the obligations of a Finance Party under the Finance Documents are several; 

  

	 	(b)	failure by a Finance Party to perform its obligations does not affect the obligations of any other Party under the Finance Documents; 

  

	 	(c)	no Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents; 

  

	 	(d)	the rights of a Finance Party under the Finance Documents are separate and independent rights; 

  

	 	(e)	a Finance Party may, except as otherwise stated in the Finance Documents, separately enforce those rights; and 

  

	 	(f)	a debt arising under the Finance Documents to a Finance Party is a separate and independent debt. 

  

	3.	CONDITIONS PRECEDENT 

  

	3.1	Conditions precedent documents 

  

	 	(a)	A Request in respect of a Drawing under a Loan shall not be given until the Facility Agent has notified the Borrower and the Lenders that it has received all of the documents and
evidence set out in Part 1 of Schedule 2 (Initial Conditions Precedent Documents) in form and substance satisfactory to the Facility Agent or that it expects to receive outstanding documents or evidence on or before the date of the relevant Drawing.
The Facility Agent must give this notification to the Borrower and the Lenders promptly upon being so satisfied. 

  

	 	(b)	 As soon as reasonably practicable following the date of the first Drawing under the Facility but, in any event, within ninety (90) days of such date, the
Borrower shall procure that a legal opinion in form and substance reasonable satisfactory to the Facility Agent, issued by Global Law Office, People’s Republic of China legal 

  

 20 

	 	 
advisors to the Lenders, is provided to the Facility Agent, in respect of the execution of the Time Charters, such opinion to be addressed to the Facility
Agent as agent for and on behalf of itself and the Lenders. 

  

	 	(c)	A Request representing the amount of a Delivery Date Instalment may not be given until the Facility Agent has notified the Borrower and the Lenders that it has received all of the
documents and evidence set out in Part 2 of Schedule 2 (Delivery Date Conditions Precedent Documents) in form and substance satisfactory to the Facility Agent or that it expects to receive outstanding documents or evidence on or before the relevant
Delivery Date. The Facility Agent must give this notification to the Borrower and the Lenders promptly upon being so satisfied. 

  

	 	(d)	If the Borrower has made a request in respect of a Delivery Date Instalment, the Borrower will not sign a protocol of delivery and acceptance in respect of the Vessel to which that
Request relates unless the Facility Agent has confirmed that the conditions referred to in Clause 3.1(a) or Clause 3.1(c) (as applicable) have been or will, simultaneously with such signing, be satisfied. 

  

	 	(e)	Immediately following the date upon which a Vessel is delivered the Borrower shall provide to the Facility Agent all documents and evidence set out in Schedule 3 (Conditions
Subsequent to Delivery Date) in form and substance satisfactory to the Facility Agent. 

  

	3.2	Further conditions precedent 

 The obligations of
each Lender to advance any Loan are subject to the further conditions precedent that on both the date of the Request and the Utilisation Date for that Loan: 
  

	 	(a)	the representations made under Clause 14 (Representations) are correct in all material respects; and 

  

	 	(b)	no Default or, in the case of a Rollover Loan, no Event of Default is outstanding or would result from that Drawing or that Rollover Loan being made. 

  

	4.	UTILISATION 

  

	4.1	Giving of Requests 

  

	 	(a)	The Borrower may borrow a Loan by giving to the Facility Agent a duly completed Request in respect of a Drawing under that Loan. 

  

	 	(b)	Unless the Facility Agent otherwise agrees, the latest time for receipt by the Facility Agent of a duly completed Request is 11.00 a.m. (Seoul time) five (5) Business Days
prior to the date of the proposed borrowing. 

  

	 	(c)	Each Request is irrevocable. 

  

	 	(d)	A Request for a Rollover Loan will not be required. 

  

	4.2	Completion of Requests 

 A Request for a Loan will
not be regarded as having been duly completed unless: 
  

 21 

	 	(a)	the Utilisation Date is a Business Day falling within the Term Loan Availability Period or the Revolving Credit Availability Period and, in respect of a Drawing under a Term Loan,
is a date which falls not more than forty eight (48) hours prior to the date on which the relevant Instalment under the relevant Shipbuilding Contract falls due; 

  

	 	(b)	in respect of a Drawing under a Loan: 

  

	 	(i)	in respect of the first Drawing it is in an amount of at least nine million nine hundred and thirty five thousand eight hundred Dollars (US$9,935,800) being that part of the Junior
Revolver relating to that Vessel (the Subordinated Portion) but not exceeding the aggregate of (x) the balance of the amount of the Instalment paid or payable to the relevant Builder after deducting therefrom the Subordinated Portion and
(y) the Vessel Costs in respect of that Vessel due on the relevant Utilisation Date; 

  

	 	(ii)	in respect of a Drawing other than the Drawing referred to in paragraph (i) and the Drawing of a Delivery Date Instalment, is in an amount not exceeding the aggregate of
(x) the balance of the amount of the Instalment paid or payable to the relevant Builder, (y) the Vessel Costs in respect of that Vessel due on the relevant Utilisation Date (less the amount of any Vessel Costs which have been reimbursed to
the Borrower in an earlier Drawing) and (z) the sums to be capitalised on that Utilisation Date in accordance with Clause 4.4 (Capitalisation); 

  

	 	(iii)	in respect of the Drawing on the Delivery Date, it is in an amount not exceeding (x) the balance of the amount of the Delivery Date Instalment payable to the relevant Builder
less the Equity Contribution, (y) the Vessel Costs in respect of that Vessel not taken into account in paragraphs (i) and (ii) above and (z) the sums to be capitalised on that Utilisation Date in accordance with Clause 4.4
(Capitalisation); 

  

	 	(iv)	the amount requested for the Drawing does not exceed, when aggregated with (x) existing Drawings under that Loan, (y) the amounts to be drawn down under any other Request
under that Loan issued for drawdown on the proposed Utilisation Date and (z) any amounts capitalised or to be capitalised on the proposed Utilisation Date pursuant to Clause 4.4 (Capitalisation) the Maximum Available Loan Amount.

  

	 	(c)	it requests that the amount of the Drawing shall be drawn down pro rata between the Tranche A Loan, Tranche B Loan and Senior Revolver for any Drawing other than a Drawing in
respect of a Delivery Date and pro rata between the Tranche A Loan, Tranche B Loan and Revolving Credit for any Drawing in respect of a Drawing on a Delivery Date; 

  

	 	(d)	the amount requested for the Drawing during the Post-Delivery Period under the Revolving Credit exceeds one million Dollars (US$1,000,000); and 

  

	 	(e)	the proposed Term complies with this Agreement. 

 Only one
Drawing may be requested in a Request. 
  

 22 

	4.3	Advance of Loans 

  

	 	(a)	The Facility Agent must promptly and in any event three (3) Business Days before the Rate Fixing Day notify each Lender of the details of the requested Drawing and the amount
of its share in that Drawing. 

  

	 	(b)	The amount of each Lender’s share of the Drawing will be its Pro Rata Share on the proposed Utilisation Date. 

  

	 	(c)	No Lender is obliged to participate in a Drawing if, as a result, its share in the Loans would exceed its Commitment. 

  

	 	(d)	If the conditions set out in this Agreement have been met, each Lender must make its share in the Drawing available by the Utilisation Date through its Facility Office.

  

	4.4	Capitalisation 

 To the extent permitted under
Clause 4.3 (Advance of Loans) during the Pre-Delivery Period, in respect of a Vessel, the commitment fee payable in accordance with Clause 23.1 and interest calculated and payable in accordance with Clause 7.2 relating to that Vessel and the Vessel
Costs, shall accrue on the relevant Loan and shall, on the last day of each Term during such period, be capitalised and added to the principal amount of the Loans outstanding provided always that such sum does not exceed the Maximum Available
Facility Amount and that the sum not covered by the aggregate amount of the Refund Guarantees does not exceed US$1,000,000 per Vessel. 
  

	5.	REPAYMENT 

  

	5.1	Repayment of Term Loans 

  

	 	(a)	The Borrower must repay each Term Loan to the Facility Agent on each Repayment Date for that Term Loan in accordance with the Repayment Schedule. 

  

	 	(b)	The Facility Agent shall notify the Borrower and the Lenders of any change in the amount or the timing of any Repayment Instalment, as soon as practicable after the Delivery Date
for the relevant Vessel. In the event of any such notification, the Facility Agent shall replace the relevant Repayment Schedule attached at Schedule 7 with a new Repayment Schedule reflecting the correct Repayment Instalments and the correct
Repayment Dates and promptly provide a copy thereof to the Borrower and the Lenders. 

  

	 	(c)	In any event, each Term Loan shall be repaid in full on the Term Loan Final Maturity Date. 

  

	5.2	Repayment of Revolving Credit 

  

	 	(a)	The Borrower must repay each Revolving Credit to the Facility Agent in full on its Maturity Date. Subject to the other terms of this Agreement, any amounts repaid under this
paragraph (a) may be reborrowed. 

  

	 	(b)	On the Maturity Date of a Revolving Credit (other than the Revolving Credit Final Maturity Date), provided that: 

  

	 	(i)	no Event of Default has occurred and is continuing; 

  

 23 

	 	(ii)	the time for prepayment following the occurrence of a mandatory prepayment event which is continuing has not yet occurred; and 

  

	 	(iii)	the Borrower has not given notice in accordance with Clause 6.7 (Voluntary prepayment), 

 and such Revolving Credit will be rolled over for another Term and become a Rollover Loan. 
  

	 	(c)	In any event, each Revolving Credit shall be repaid in full on the Revolving Credit Final Maturity Date. 

  

	6.	PREPAYMENT AND CANCELLATION 

  

	6.1	Mandatory prepayment—illegality 

  

	 	(a)	If it becomes, or to the knowledge of any Lender is to become, unlawful in any jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or a
Finance Document or to fund or maintain its share in one or more of the Loans (the Event of Illegality), that Lender shall notify the Facility Agent and the Borrower. 

  

	 	(b)	After notification under paragraph (a) above, the Borrower and that Lender shall thereafter consult with each other and use reasonable commercial efforts for a period of thirty
(30) days or in the event that the Event of Illegality takes effect before the expiration of thirty (30) days, for the maximum number of days available before the Event of Illegality takes effect with a view to restructuring the Facility
in such a way as to avoid the effect of the Event of Illegality. 

  

	 	(c)	If agreement cannot be reached between the parties within the period specified in paragraph (b) above: 

  

	 	(i)	the Borrower shall repay the share of that Lender in the relevant Loan or Loans on the date specified in paragraph (d) below to the extent required to resolve the illegality;
and 

  

	 	(ii)	the Commitment of that Lender will be immediately cancelled. 

  

	 	(d)	The date for repayment of a Lender’s share in a Loan or Loans will be: 

  

	 	(i)	the last day of the current Term of that Loan; or 

  

	 	(ii)	if earlier, the date specified by that Lender in the notice delivered to the Borrower (being no earlier than the last day of any applicable grace period permitted by Applicable
Law). 

  

	6.2	Mandatory prepayment—Change of Control of Borrower 

  

	 	(a)	The Borrower must promptly notify the Facility Agent if it becomes aware of a Change of Control. 

  

	 	(b)	 After notification under paragraph (a) above or if the Facility Agent otherwise becomes aware of the same and (acting on the instructions of the Majority
Lenders) so notifies the Borrower at any time within thirty (30) days, the Borrower shall make 

  

 24 

	 	 
an offer to the Facility Agent within five (5) Business Days of such notice to repay all of the outstanding Loans within thirty (30) days of such
notice. Any failure of the Borrower to make an offer in accordance with this Clause will be an Event of Default (and not subject to any applicable grace periods set out in Clause 19 hereof). 

  

	6.3	Mandatory prepayment—Removal of a Vessel 

 The
Borrower may elect to remove a Vessel from this Facility by notifying the Facility Agent of the removal of the Vessel and prepaying the outstanding loans in respect of such Vessel. Upon such payment, the Vessel will no longer be considered to be a
Vessel for the purpose of this Facility and the Facility Agent will comply with the terms of Clause 20.7 (Release of Security). 
  

	6.4	Mandatory prepayment—Charter Breach, Expiration or Termination of Charter 

 Unless the Borrower complies with the provisions of Clause 16.25(c) (Charter Breach, Expiration or Termination of Time Charter) as the case may be, or the Facility Agent receives additional security satisfactory to
the Facility Agent (acting on the instructions of the Majority Lenders), upon the Charter Breach, expiration or termination of a Time Charter in accordance with 16.25(c) (Charter Breach, Expiration or Termination of Time Charter), the Borrower shall
be obliged to prepay the outstanding Loans pro-rata to the extent necessary to ensure that the aggregate of the Market Value of the Vessels then delivered is not less than 125% of the aggregate principal amount of the outstanding Loans in respect of
these Vessels. 
  

	6.5	Mandatory prepayment—Sale, Total Loss or non-delivery of a Vessel 

  

	 	(a)	The Borrower shall prepay the proportion of the Loans then outstanding that the Market Value of the Vessel the subject of the sale, Total Loss or non-delivery bears to the aggregate
Market Value of the Vessels in the following circumstances and at the following times: 

  

	 	(i)	if that Vessel is sold, on or before the date falling ninety (90) days after the date on which the sale is completed by delivery of that Vessel to a buyer; or

  

	 	(ii)	if there is a Total Loss on or before the date falling ninety (90) days after the Date of Total Loss; or 

  

	 	(iii)	if a Vessel is not delivered, on or before the date falling one hundred and twenty (120) days after the cancellation of a Shipbuilding Contract. 

  

	 	(b)	The Borrower shall, immediately on receipt of the same, credit to the Retention Account the sale, Total Loss or Refund Guarantee proceeds received by the Borrower in respect of the
Vessel the subject of the sale, Total Loss or non-delivery. Such proceeds shall remain in the Retention Account until they are to be applied in or towards satisfaction of the prepayment obligations of the Borrower pursuant to Clause 6.5(a).

  

	6.6	Mandatory prepayment-invalidity of KEXIM Guarantee 

 If for any reason not directly or substantially attributable to any of the Tranche B Lenders or the Facility Agent (or any of them): 
  

	 	(a)	the KEXIM Guarantee ceases to be valid in any material respect other than in the circumstances set out in Clause 19.13 (Invalidity of KEXIM Guarantee); or 

 

 25 

	 	(b)	KEXIM gives notice to the Facility Agent to determine its obligations thereunder, 

 and the Tranche B Lenders determine in good faith that there has been or could be a Material Adverse Effect, the Borrower shall (after the expiry of a ninety (90) day period during which the Borrower and the
Facility Agent shall consult with each other and use reasonable commercial efforts to restructure the Facility or replace the KEXIM Guarantee with a new form of security) be obliged to prepay the Tranche B Loan in full. 
  

	6.7	Voluntary prepayment 

  

	 	(a)	The Borrower may, by giving not less than thirty (30) days’ prior written notice to the Facility Agent, prepay a Term Loan in whole or from time to time in part on a
Repayment Date. 

  

	 	(b)	The Borrower may, by giving not less than five (5) days’ prior written notice to the Facility Agent, prepay in whole or from time to time in part on the last day of any
Term the Revolving Credit in the Post-Delivery Period. No prepayment of the Junior Revolver is permitted during the Pre-Delivery Period. 

  

	 	(c)	A prepayment must be in a minimum amount or multiples of US$1,000,000. 

  

	 	(d)	Any voluntary prepayment under this Clause 6.7, (i) in respect of a Term Loan, shall be applied against the Repayment Instalments of the relevant Term Loan in the order of
their maturity and shall be applied pro-rata in respect of the amounts outstanding to the Tranche A Lenders and the Tranche B Lenders and, (ii) in respect of the Revolving Credit, shall be applied against the Revolving Credit pro rata
unless the Borrower nominates in writing that the prepayment is to be applied first against a specific Revolving Credit then outstanding. 

  

	6.8	Automatic cancellation 

  

	 	(a)	The Commitment of each of the Tranche A Lenders and Tranche B Lenders will be automatically cancelled at the close of business on the last day of the relevant Term Loan Availability
Period. 

  

	 	(b)	The obligation of a Revolver Lender to advance the undrawn amount of its Commitment in respect of a Revolving Credit will be automatically cancelled at the close of business on the
last day of the Revolving Credit Availability Period. 

  

	6.9	Voluntary cancellation 

  

	 	(a)	The Borrower may, by giving not less than five (5) Business Days’ prior notice to the Facility Agent, cancel the unutilised amount of the Total Commitments in whole or in
part. 

  

	 	(b)	Partial cancellation of the Total Commitments must be in a minimum amount of US$5,000,000 and in integral multiples of US$1,000,000 in excess of US$5,000,000.

  

	 	(c)	Any cancellation in part will be applied against the Commitment of each Lender pro rata. 

  

 26 

	6.10	Voluntary prepayment and cancellation 

  

	 	(a)	If the Borrower is, or will be, required to pay to a Lender a Tax Payment or an Increased Cost, the Borrower may, while the requirement continues, give notice to the Facility Agent
requesting prepayment and cancellation in respect of that Lender. 

  

	 	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Borrower must repay or prepay that Lender’s share in each Loan made to it on the date specified in paragraph (c) below; and 

  

	 	(ii)	the Commitment of that Lender will be immediately cancelled. 

  

	 	(c)	The date for repayment or prepayment of a Lender’s share in a Loan(s) will be the last day of the current Term for the relevant Loan or, if earlier, the date specified by the
Borrower in the notice delivered to the Facility Agent. 

  

	6.11	Partial Prepayment of Term Loans 

  

	 	(a)	Except where this Clause 6 expressly provides otherwise, any partial prepayment of a Term Loan will be applied against the remaining Repayment Instalments in respect of that Term
Loan, in the order of their maturity and shall be applied pro-rata in respect of the amounts outstanding to the Tranche A Lenders and the Tranche B Lenders. 

  

	 	(b)	Upon any such partial prepayment, the Facility Agent shall replace the relevant Repayment Schedule attached as Schedule 7 with a new Repayment Schedule reflecting the correct
Repayment Instalments and promptly provide a copy thereof to the Borrower, the Tranche A Lenders and the Tranche B Lenders. 

  

	 	(c)	No amount of a Term Loan prepaid under this Agreement may be subsequently reborrowed. 

  

	6.12	Reborrowing of Revolving Credit 

  

	 	(a)	Any prepayment of a Revolving Credit under Clause 6.1 (Mandatory prepayment—illegality), Clause 6.2 (Mandatory prepayment—Change of Control of Borrower) and Clause 6.8
(Automatic cancellation) may not be reborrowed. 

  

	 	(b)	Any other prepayment of a Revolving Credit may be reborrowed. 

  

	6.13	Miscellaneous provisions 

  

	 	(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable and must specify the relevant date(s). 

  

	 	(b)	All prepayments under this Agreement must be made with accrued interest on the amount prepaid. All prepayments shall also be subject to Break Costs in respect of any amounts prepaid
to the Tranche B Lenders and Revolver Lenders in accordance with Clause 24.3 (Break Costs). Any prepayment in accordance with Clause 6.7 (Voluntary Prepayment) and Clause 6.10 (Voluntary Prepayment and Cancellation) shall also be subject to the
Opportunity Costs incurred by the Tranche A Lenders in respect of the voluntary prepayment amount. 

  

 27 

	 	(c)	Any prepayment in accordance with Clause 6.5 (mandatory prepayment—Sale, Total Loss or non-delivery of a Vessel) shall be subject to a prepayment fee payable to the Tranche A
Lenders equal to (i) 1% of the amount of principal prepaid if such prepayment is made on or before the fourth anniversary of the Delivery Date of that Vessel, (ii) 0.75% of the amount of principal prepaid if such prepayment is made after
the fourth anniversary of the Delivery Date but on or before the eighth anniversary of the Delivery Date of that Vessel and (iii) 0.50% of the amount of principal prepaid if such prepayment is made after the eighth anniversary of the Delivery
Date of that Vessel. 

  

	 	(d)	If the Borrower cancels the Tranche A Loan relating to a Vessel prior to the delivery of that Vessel, the Borrower shall pay to the Tranche A Lender a prepayment fee of 0.50% of the
Maximum Available Tranche A Loan Amount. 

  

	 	(e)	No prepayment or cancellation is allowed except in accordance with the express terms of this Agreement. 

  

	7.	INTEREST 

  

	7.1	Calculation of interest 

  

	 	(a)	The rate of interest on each Tranche A Loan for each Term during the Pre-Delivery Period is the Pre-Delivery Tranche A Interest Rate. 

  

	 	(b)	The rate of interest on each Tranche B Loan for each Term during the Pre-Delivery Period is the percentage rate per annum equal to the aggregate of the applicable:

  

	 	(i)	Pre-Delivery Tranche B Margin; and 

  

	 	(ii)	LIBOR (together, the Pre-Delivery Tranche B Interest Rate). 

  

	 	(c)	The rate of interest on each Revolving Credit for each Term during the Pre-Delivery Period is the percentage rate per annum of the applicable: 

  

	 	(i)	Pre-Delivery Revolver Margin; and 

  

	 	(ii)	LIBOR (together, the Pre-Delivery Revolver Interest Rate). 

  

	 	(d)	The rate of interest on each Tranche A Loan for each Term during the Post-Delivery Period is the Post-Delivery Tranche A Interest Rate. 

  

	 	(e)	The rate of interest on each Tranche B Loan for each Term during the Post-Delivery Period is the percentage rate per annum equal to the aggregate of the applicable:

  

	 	(i)	Post-Delivery Tranche B Margin; and 

  

	 	(ii)	LIBOR (together, the Post-Delivery Tranche B Interest Rate). 

  

	 	(f)	The rate of interest on each Revolving Credit for each Term during the Post-Delivery Period is the percentage rate per annum equal to the aggregate of: 

  

	 	(i)	the Post-Delivery Revolver Margin; and 

  

	 	(ii)	LIBOR (together, the Post-Delivery Revolver Interest Rate). 

  

 28 

	 	(g)	Interest shall be calculated by reference to the actual number of days elapsed and on the basis of a year of 360 days. Interest shall accrue from and including the first day of each
Term to but excluding the last day of such Term. 

  

	7.2	Payment of interest 

 Except where it is provided to
the contrary in this Agreement, the Borrower must pay accrued interest on each Loan on the last day of each Term. During the Pre-Delivery Period in respect of a Vessel, interest shall accrue on each Loan on the basis set out in Clause 7.1 above and
shall, on the last day of each Term during the Pre-Delivery Period, be capitalised and added to the amount of that Loan outstanding. 
  

	7.3	Interest on overdue amounts 

  

	 	(a)	If the Borrower fails to pay any amount payable by it under the Finance Documents, it must immediately on demand by the Facility Agent pay interest on the overdue amount from its
due date up to the date of actual payment, both before, on and after judgment. 

  

	 	(b)	If the overdue amount is a principal amount of a Loan or is an amount accruing in respect of interest on a Loan and becomes due and payable prior to the last day of its current
Term, then: 

  

	 	(i)	the first Term for that overdue amount will be the unexpired portion of that Term and the rate of interest on the overdue amount for that first Term will be two per cent.
(2%) per annum above the Applicable Interest Rate; and 

  

	 	(ii)	thereafter, any subsequent Term for that overdue amount shall be selected by the Facility Agent (acting on the instructions of the Majority Lenders, acting reasonably) who may
select successive Terms of any duration up to six (6) months, and the rate of interest on the overdue amount will be two per cent. (2%) per annum above the Applicable Interest Rate. 

 After the expiry of the first Term for that overdue amount, the rate on the overdue amount will be calculated in accordance with paragraph
(c) below. 
  

	 	(c)	In respect of any amounts outstanding other than in accordance with paragraph (b) above, interest on such overdue amount is payable at a rate determined by the Facility Agent
to be two per cent. (2%) per annum above the Applicable Interest Rate. For this purpose, the Facility Agent may (acting on the instructions of the Majority Lenders, acting reasonably) select successive Terms of any duration of up to six
(6) months. 

  

	 	(d)	Interest (if unpaid) on an overdue amount will be compounded with that overdue amount at the end of each of its Terms but will remain immediately due and payable.

  

	7.4	Notification of rates of interest 

 The Facility
Agent must promptly notify each Party of the determination of a rate of interest under this Agreement and the Mandatory Cost payable, if any. 
  

 29 

	7.5	Mandatory Cost 

 Subject to Clause 21.16, the
Borrower shall pay to the Facility Agent the Mandatory Cost, if any, for each Loan on the last day of the Term in respect of which it has been calculated. 
  

	8.	TERMS 

  

	8.1	Selection 

  

	 	(a)	In respect of each Term Loan: 

  

	 	(i)	each Term Loan has successive Terms; 

  

	 	(ii)	the first Term for a Term Loan will start on its Utilisation Date and will end on the next Quarter Day; and 

  

	 	(iii)	subject to the following provisions of this Clause and sub-paragraph (ii) above, each Term for a Term Loan shall be a period of three months. 

 Notwithstanding Clause 7.2, during the Post-Delivery Period, the Borrower shall pay all accrued interest on each Repayment Date. 
  

	 	(b)	In respect of the Revolving Credit: 

  

	 	(i)	Each Revolving Credit has one Term only. 

  

	 	(ii)	The Term for a Revolving Credit (other than the first Revolving Credit) shall, subject to Clause 8.1(b), be the same as the then current Term for all then outstanding Revolving
Credits. 

  

	 	(iii)	The Borrower must select the Term for the first Revolving Credit in the relevant Request and shall be entitled to select (by written notice to the Facility Agent) the Term for each
Rollover Loan. Subject to the following provisions of this Clause 8, each such Term for a Revolving Credit or Rollover Loan shall be for a period of one, three or six months or such other period requested by the Borrower and accepted by the Facility
Agent (acting on the instructions of the Revolver Lenders). If the Borrower fails to select a Term for a Revolving Credit, that Term will, subject to the other provisions of this Clause 8, be three (3) months. 

  

	 	(iv)	The Term for a Rollover Loan will be the same duration as the previous Term for such Revolving Credit unless the Borrower provides to the Facility Agent an irrevocable notice
pursuant to Clause 8.1(b)(iii) requesting a different Term in accordance with Clause 8.1(b)(iii) no later than 11.00 am (New York Time) three (3) Business Days before the Rate Fixing Day for that Term. 

  

	 	(v)	Subject only to Clause 8.1(b)(vi), the Term for all Rollover Loans shall be the same. 

  

	 	(vi)	 The Borrower may, on or before the time a Request is given, request that a Term for a Revolving Credit is not consolidated with existing Terms for other Revolving
Credit then outstanding. No more than five (5) such non-consolidated Revolving Credit may be outstanding at any one time. In the event of such a request, the Borrower must select both the Term for such 

  

 30 

	 	 
Revolving Credit in the relevant Request and when such Revolving Credit is rolled over and the provisions of Clause 8.1(b)(iii) will apply to such selection.

  

	8.2	Consolidation 

  

	 	(a)	The First Term for a Drawing under a Term Loan will commence on its Utilisation Date and each subsequent Term shall commence on the last day of the previous Term provided always
that the first Term for the second and subsequent Drawings under a Term Loan shall end on the last day of the current Term for existing Drawings under that Term Loan or, in the case of the Final Term for a Term Loan, on its Term Loan Final Maturity
Date. 

  

	 	(b)	The Term for a Revolving Credit will commence on its Utilisation Date and unless the Borrower requests otherwise in accordance with Clause 8.1(b)(vi) above, the Term for each
Revolving Credit will be consolidated with the Term for all other outstanding Revolving Credit. 

  

	8.3	End of Term on a Delivery Date 

 If a Term in
relation to a Revolving Credit or a Drawing under a Term Loan would otherwise overrun the Delivery Date of the Vessel to which the relevant Loan relates, it will be shortened so that it ends on the Delivery Date of that Vessel. Each subsequent Term
will be ascertained in accordance with Clause 8.2. 
  

	8.4	No overrunning the Term Loan Final Maturity Date or Revolving Credit Final Maturity Date 

 If a Term would otherwise overrun the Term Loan Final Maturity Date or Revolving Credit Final Maturity Date, as the case may be, it will be shortened so
that it ends on the Term Loan Final Maturity Date or Revolving Credit Final Maturity Date, as the case may be. 
  

	8.5	Other adjustments 

 The Facility Agent and the
Borrower may enter into such other arrangements as they may agree for the adjustment of Terms and the consolidation and/or splitting of Loans. 
  

	9.	MARKET DISRUPTION 

  

	9.1	Failure of the Reference Bank to supply a rate 

 If
LIBOR is to be calculated by reference to the Reference Banks but if the Reference Banks are unable to supply a rate by 11.00 a.m. London time on the Rate Fixing Day, the applicable LIBOR will be calculated in accordance with Clause 9.2 (Market
disruption). 
  

	9.2	Market disruption 

  

	 	(a)	A market disruption event shall arise where: 

  

	 	(i)	no, or only one, Reference Bank supplies a rate by 11.00 a.m. on the Rate Fixing Day; or 

  

	 	(ii)	 the Facility Agent receives by close of business on the Rate Fixing Day notification from any Lender or Lenders whose aggregate shares in the 

  

 31 

	 	 
relevant Loan exceed 35% of that Loan that the cost to them of obtaining matching deposits in the relevant interbank market is in excess of LIBOR for the
relevant Term. 

  

	 	(b)	The Facility Agent must promptly notify the Borrower and the Lenders of a market disruption event. 

  

	 	(c)	After notification under paragraph (b) above, the rate of interest on the affected Loan for the relevant Term will be the aggregate of: 

  

	 	(i)	the Applicable Margin; 

  

	 	(ii)	the rate notified to the Facility Agent by those Lenders as soon as practicable, and in any event before interest is due to be paid in respect of that Term, to be that which
expresses as a percentage rate per annum the cost to those Lenders of funding that Loan from whatever source each of them may reasonably select; and 

  

	 	(iii)	any increase in Mandatory Cost above the level of Mandatory Cost prevailing at the date of this Agreement. 

  

	9.3	Alternative basis of interest or funding 

  

	 	(a)	If a market disruption event occurs and the Facility Agent or the Borrower so require, the Borrower and the Facility Agent must enter into negotiations for a period of not more than
thirty (30) days with a view to agreeing to an alternative basis for determining the rate of interest and/or funding for the affected Loan and any future Loan. 

  

	 	(b)	Any alternative basis agreed between the Borrower and the Facility Agent will be, with the prior written consent of all the Lenders, binding on all the Parties hereto.

  

	10.	TAXES 

  

	10.1	Tax gross-up 

  

	 	(a)	The Borrower must make all payments to be made by it under the Finance Documents without any Tax Deduction, unless a Tax Deduction is required by an Applicable Law.

  

	 	(b)	If a Tax Deduction is required by an Applicable Law to be made by the Borrower or, as the case may be, the Facility Agent, the amount of the payment due from the Borrower will be
increased, or, as the case may be, the Borrower shall make an additional payment, so that the amount (after making the Tax Deduction) received by the recipient is equal to the payment which would have been due if no Tax Deduction had been required.

  

	 	(c)	If the Borrower is required to make a Tax Deduction, the Borrower must make the minimum Tax Deduction and must make any payment required in connection with that Tax Deduction within
the time allowed by the Applicable Law. 

  

	 	(d)	 Within fifteen (15) days of making either a Tax Deduction or a payment required in connection with a Tax Deduction the Borrower must deliver to the Facility
Agent for the relevant Finance Party, documents or other information (or certified copies 

  

 32 

	 	 
thereof) evidencing satisfactorily to that Finance Party (acting reasonably) that the Tax Deduction has been made or (as applicable) the appropriate payment
has been paid to the relevant taxing authority. 

  

	10.2	Tax Indemnity 

 Without prejudice to the provisions
of Clause 10.1 (Tax gross-up), if any Lender is required to make any payment on account of Tax solely as a result of its entry into any Finance Document (not being a Tax imposed on the net income of a Lender or its Facility Office by the
jurisdiction in which it is incorporated, or the jurisdiction in which its Facility Office is located or on the capital of that Lender employed in such jurisdiction or jurisdictions) on any sum received or receivable under the Finance Documents
(including, without limitation, any sum received or receivable under this Clause 10.2) or any liability in respect of any such payment is asserted, imposed, levied or assessed against a Lender, the Borrower shall (within three (3) Business Days
of demand by the Facility Agent) indemnify that Lender against such payment or liability, together with any interest, penalties and expenses payable or incurred in connection therewith. 
  

	10.3	Tax Credit 

 If a Lender or, as the case may be, the
Facility Agent determines in its absolute discretion, acting in good faith, that it has received, realised, utilised and retained a Tax benefit by reason of any deduction or withholding in respect of which the Borrower has made an increased payment
or paid a compensating sum under this Clause 10 that Lender or, as the case may be, the Facility Agent shall, provided it has received all amounts which are then due and payable by the Borrower under any of the provisions of this Agreement and the
other Finance Documents, pay to the Borrower (to the extent that Lender or, as the case may be, the Facility Agent can do so without prejudicing the amount of that benefit and the right of that Lender, or as the case may be, the Facility Agent to
obtain any other benefit, relief or allowance which may be available to it), such amount, if any, as that Lender, or as the case may be, the Facility Agent shall determine in its absolute discretion acting in good faith, will leave that Lender, or
as the case may be, the Facility Agent in no better and no worse position than it would have been in if the deduction or withholding had not been required and so that it retains no benefit as a result of the receipt of such deduction. 
  

	10.4	Notification of Claim 

 A Lender making, or
intending to make, a claim under Clause 10.2 (Tax Indemnity) shall promptly notify the Facility Agent of the event which will give, or has given, rise to the claim, following which the Facility Agent shall notify the Borrower. 
  

	10.5	Conduct of Business by the Finance Parties 

 No
provision of this Agreement will: 
  

	 	(a)	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; 

  

	 	(b)	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

  

	 	(c)	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 

  

 33 

	10.6	Stamp taxes 

 The Borrower must pay and indemnify
each Finance Party against any stamp duty, registration or other similar Tax payable by a Finance Party in connection with the entry into, performance or enforcement of any Finance Document, except for any such Tax payable in connection with
entering into a Transfer Certificate. 
  

	10.7	Value added taxes 

 Any amount (including costs and
expenses) payable under a Finance Document by the Borrower is exclusive of any value added tax or any other Tax of a similar nature which might be chargeable in connection with that amount. If any such Tax is chargeable, the Borrower must pay to the
relevant Finance Party (in addition to and at the same time as paying that amount) an amount equal to the amount of that Tax. 
  

	11.	INCREASED COSTS 

  

	11.1	Increased Costs 

 Except as provided below in this
Clause 11, the Borrower must pay to a Finance Party the amount of any Increased Cost incurred by that Finance Party or its Affiliates as a result of: 
  

	 	(a)	the introduction of, or any change in, or any change in the interpretation or application of, any law or regulation of general application to financial institutions in the
jurisdiction of such Finance Party; or 

  

	 	(b)	compliance with any law or regulation, 

 made after the
date of this Agreement. 
  

	11.2	Exceptions 

 The Borrower need not make any payment
for an Increased Cost to the extent that the Increased Cost is: 
  

	 	(a)	compensated for under another Clause or would have been but for an exception to that Clause; 

  

	 	(b)	a Tax on the overall net income of the relevant Finance Party or any of its Affiliates; or 

  

	 	(c)	attributable to the relevant Finance Party or any of its Affiliates, wilfully failing to comply with any law or regulation. 

  

	11.3	Claims 

 If a Finance Party intends to make a claim
for an Increased Cost it must notify the Borrower promptly of the circumstances giving rise to, and the amount of, the claim. 
  

	11.4	Mitigation 

  

	 	(a)	Each Finance Party must, in consultation with the Borrower, use its best endeavours to mitigate any circumstances which arise and which result or would result in any Increased Cost
being payable to that Finance Party. 

  

 34 

	 	(b)	The Borrower must indemnify that Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of any step taken by it under paragraph
(a) above. 

  

	 	(c)	A Finance Party is not obliged to take any step under this Subclause if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

  

	11.5	Replacement of Lender 

 Following a claim by a
Lender for an Increased Cost, the Borrower shall, with the consent of the Facility Agent (acting on the instructions of the Majority Lenders), be entitled to oblige such Lender to transfer its Commitment to a Lender or new lender pursuant to the
terms of Clause 28 (Changes to the Parties). 
  

	12.	RETENTION ACCOUNT 

  

	12.1	Maintenance of Retention Account 

 The Borrower
shall maintain the Retention Account with the Account Bank until the Revolving Credit Final Maturity Date, free of Security Interests and rights of set-off other than as created by or pursuant to the Security Documents. 
  

	12.2	Transfers to Retention Account 

  

	 	(a)	The Borrower shall procure that upon receipt of any amounts representing proceeds of a sale, Total Loss or, upon non delivery of a Vessel, sums received pursuant to the Refund
Guarantees or from the Builder or, if any terminations fees are payable under any Time Charter, proceeds following the termination of that Time Charter, such amounts are paid into the Retention Account. 

  

	 	(b)	Upon the occurrence of an Event of Default which is continuing, the Borrower shall procure that all Earnings in respect of the Vessels are transferred into the Retention Account.

  

	12.3	Application of Retention Account 

  

	 	(a)	In the event that a mandatory prepayment obligation arises under Clause 6.5(a) upon a sale, Total Loss or non delivery of a Vessel, the Borrower shall procure that there is
transferred from the Retention Account (and irrevocably authorises the Facility Agent to instruct the Account Bank to transfer from the Retention Account) to the Facility Agent in prepayment of the relevant Loan any amounts as may be required
pursuant to Clause 6.5 and (unless an Event of Default shall have occurred and be continuing) the balance of the proceeds of a sale, Total Loss or non delivery of the relevant Vessel, following the transfer referred to above, may be released to such
other account as the Borrower shall designate. 

  

	 	(b)	 In the event that a charter termination event arises under Clause 16.25(b) in which charter termination fees are payable, the Borrower shall procure that there is
transferred from the Retention Account (and irrevocably authorizes the Facility Agent to instruct the Account Bank to transfer from the Retention Account) (i) if the Borrower arranges a substitute charterer in accordance with Clause 16.25(b),
to such other account as the Borrower may designate, the charter termination fee relating to the relevant Vessel; or (ii) if a mandatory prepayment obligation arises under Clause 6.4, to the Facility Agent in prepayment of the relevant Loan, an
amount necessary to 

  

 35 

	 	 
comply with the prepayment required in Clause 6.4, following which the balance of the charter termination fees, if any, may be released to such other account
as the Borrower shall designate. 

  

	 	(c)	Following the occurrence of an Event of Default which is continuing, any moneys standing to the credit of the Retention Account shall be applied in accordance with Clause 13.7
(Payments). 

  

	12.4	Restriction on withdrawal 

 During the term of the
Facility, no sum may be withdrawn from the Retention Account (except in accordance with this Clause 12) without the prior written consent of the Facility Agent (acting on the instructions of the Majority Lenders). 
  

	13.	PAYMENTS 

  

	13.1	Place 

  

	 	(a)	Unless a Finance Document specifies that payments under it are to be made in another manner, all payments by a Party (other than the Facility Agent) under the Finance Documents must
be made to the Facility Agent to such account in New York, the United States of America as it may notify in advance in writing to that Party for this purpose. 

  

	 	(b)	Notwithstanding paragraph (a) above, any payment to be made under the Finance Documents by the Facility Agent to a Lender shall be made in accordance with that Lender’s
Standing Payment Instruction. 

  

	13.2	Funds 

 Payments under the Finance Documents to the
Facility Agent must be made for value on the due date at such times and in such funds as the Facility Agent may specify to the Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place
for payment. Any payment received by the Facility Agent after 5:00 pm New York time shall be deemed to have been received on the next Business Day. 
  

	13.3	Distribution 

  

	 	(a)	Each payment received by the Facility Agent under the Finance Documents for another Party must, except as provided below, be made available by the Facility Agent to that Party by
payment (as soon as practicable after receipt) to its account with such office or bank as it may notify to the Facility Agent for this purpose by not less than five (5) Business Days’ prior notice. 

  

	 	(b)	The Facility Agent may apply any amount received by it from the Borrower in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the
Borrower under the Finance Documents or in or towards the purchase of any amount of any currency to be so applied. 

  

	 	(c)	 Where a sum is paid to the Facility Agent under this Agreement for another Party, the Facility Agent is not obliged to pay that sum to that Party until it has
established that it has actually received it. However, the Facility Agent may assume that the sum has been paid to it, and, in reliance on that assumption, make available to that Party a corresponding amount. If it transpires that the sum has not
been received by the 

  

 36 

	 	 
Facility Agent, that Party must immediately on demand by the Facility Agent refund any corresponding amount made available to it together with interest on
that amount from the date of payment to the date of receipt by the Facility Agent at a rate calculated by the Facility Agent to reflect its cost of funds. 

  

	 	(d)	For the purposes of this Clause 13 (Payments) Standing Payment Instruction means: 

  

	 	(i)	in relation to a Lender which is a Lender on the date of this Agreement, payment instructions set below the name of that Lender in Schedule 10 (Standing Payment Instructions); or

  

	 	(ii)	in relation to a Lender which becomes a Lender after the date of this Agreement, payment instructions set out in the Transfer Certificate to which that Lender is a party,

 or such other payment instructions the Lender may notify to the Facility Agent by not less than five (5) Business
Days’ notice. 
  

	13.4	Currency 

 All amounts payable under the Finance
Documents are payable in Dollars provided always that amounts payable in respect of costs and expenses are payable in the currency in which those costs and expenses are incurred. 
  

	13.5	No set-off or counterclaim 

 All payments made by
the Borrower under the Finance Documents must be made without set-off or counterclaim. 
  

	13.6	Business Days 

  

	 	(a)	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment will instead be the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not). 

  

	 	(b)	During any extension of the due date for payment of any principal under this Agreement interest is payable on that principal at the rate payable on the original due date.

  

	13.7	Payments 

  

	 	(a)	If any Administrative Party receives a payment insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, then, except to the extent
otherwise provided in any Finance Document, all the proceeds of the enforcement of the security conferred by the Security Agreements shall be applied by the Administrative Party towards the obligations of the Borrower under the Finance Documents in
the following order: 

  

	 	(i)	first, in or towards payment or satisfaction pro rata of all costs, charges, sales taxes, expenses and liabilities incurred and payments made by the Finance Parties or
any receiver and all remuneration payable to the Finance Parties or any receiver under or pursuant to the Security Documents including, without limitation, legal expenses, re-instatement costs and any costs incurred in recovering possession of the
Security Assets; 

  

 37 

	 	(ii)	second, in or towards payment pro rata of any unpaid fees, costs and expenses of the Finance Parties to the extent not recovered under paragraph (i) above under
this Agreement and the Security Documents; 

  

	 	(iii)	third, in or towards payment pro rata of any accrued but unpaid interest payable to the Finance Parties under this Agreement and the Security Documents;

  

	 	(iv)	fourth, in or towards payment pro rata of: 

  

	 	(A)	any fees or Opportunity Costs payable to the Tranche A Lenders pursuant to Clause 6.13(b), (c) and (d) (Miscellaneous provisions), any Break Costs of the Tranche B Lenders
or, during the Post-Delivery Period, Revolver Lenders due but unpaid and payable to the Finance Parties under this Agreement and the Security Documents; and 

  

	 	(B)	any principal in respect of this Agreement and the Security Documents due but unpaid; 

  

	 	(v)	fifth, in or towards payment pro rata to the Finance Parties of any other amounts which are due but unpaid by the Borrower to any of the Finance Parties under the
Finance Documents in such order as the Finance Parties shall in their absolute discretion determine; 

  

	 	(vi)	sixth, in or towards payment pro rata of any Break Costs of the Revolver Lenders during the Pre-Delivery Period due but unpaid and payable to the Finance Parties under
this Agreement and the Security Documents; 

  

	 	(vii)	seventh, in or towards payment pro rata to the Revolver Lenders of any amounts which are due but unpaid by the Borrower in respect of the Junior Revolver:

  

	 	(viii)	eighth of Break Costs of the Swap Banks due but unpaid under the Swap Agreement; and 

  

	 	(ix)	ninth, after all amounts payable or which may become payable under the Finance Documents have been paid in full and the Finance Documents have been discharged and the
payments under subparagraph (vii) have been made, in or towards payment of the surplus, if any, to the Borrower or other persons entitled thereto. 

  

	 	(b)	The Facility Agent must, if so directed by all the Lenders, vary the order set at subparagraphs 13.7(a)(ii) to 13.7(a)(vii) above. 

  

	 	(c)	This Clause 13.7 will override any appropriation made by the Borrower. 

  

	13.8	Timing of payments 

 If a Finance Document does not
provide for when a particular payment is due, that payment will be due within three (3) Business Days of demand by the relevant Finance Party. 
  

 38 

	14.	REPRESENTATIONS 

  

	14.1	Representations 

 The representations set out in
this Clause 14 are made, unless otherwise stated, by the Borrower to the Finance Parties. 
  

	14.2	Status 

  

	 	(a)	It is a limited liability company, duly incorporated and validly existing under the laws of the Republic of the Marshall Islands and listed on the New York Stock Exchange.

  

	 	(b)	It and each of its Subsidiaries, if any, has the power to own its assets and carry on its business as it is being conducted. 

  

	 	(c)	No person or group other than the Seaspan Group owns or will beneficially own more than 50% of the aggregate outstanding voting power of the equity interests of the Borrower.

  

	14.3	Powers and authority 

 It has the power to enter
into and perform, and has taken all necessary action to authorise the entry into and performance of, the Finance Documents to which it is or will be a party and the transactions contemplated by those Finance Documents. 
  

	14.4	Legal validity 

 Subject to any general principles
of law limiting its obligations and referred to in any legal opinion required under this Agreement, each Finance Document to which it is a party is its legally binding, valid and enforceable obligation. 
  

	14.5	Non-conflict 

 The entry into and performance by it
of, and the transactions contemplated by, the Finance Documents to which it is a party do not conflict in any material respect with: 
  

	 	(a)	any law or regulation applicable to it; 

  

	 	(b)	its or any of its Subsidiaries’ constitutional documents; or 

  

	 	(c)	any document which is binding upon it or any of its Subsidiaries or any of its or its Subsidiaries’ assets. 

  

	14.6	No Default 

  

	 	(a)	No Default is outstanding or will result from the execution of, or the performance of any transaction contemplated by, any Finance Document. 

  

	 	(b)	No other event is outstanding which constitutes a default under any document which is binding on it or any of its Subsidiaries or any of its or its Subsidiaries’ assets to an
extent or in a manner which is reasonably likely to have a Material Adverse Effect. 

  

 39 

	14.7	Authorisations 

 Except for registration of
(i) the Mortgages at the Hong Kong Shipping Register, (ii) any Security Agreement creating a charge over Security Assets of the Borrower with the Hong Kong Registrar of Companies or (iii) any relevant Security Agreement under the
Companies Act 1985, all authorisations required by it in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Finance Documents have been obtained or effected (as appropriate) and are
in full force and effect. 
  

	14.8	Financial statements 

 The audited consolidated
financial statements of the Borrower most recently delivered to the Facility Agent together with any other financial information supplied to the Facility Agent by the Borrower: 
  

	 	(a)	have been prepared in accordance with U.S. GAAP, consistently applied; 

  

	 	(b)	have been audited in accordance with U.S. GAAP; and 

  

	 	(c)	fairly represent, in all material respects, its financial condition (consolidated, if applicable) as at the date to which they were drawn up, 

 except, in each case, as disclosed to the contrary in those financial statements or other information. 
  

	14.9	No material adverse change 

 There has been no
material adverse change in the ability of the Borrower to make all the required payments under this Agreement or the validity or enforceability of this Agreement since the date of incorporation of the Borrower or following the receipt by the
Facility Agent of an Annual Compliance Certificate, since the date of the then latest Annual Compliance Certificate. 
  

	14.10	Litigation 

 No litigation, arbitration or
administrative proceedings of or before any court, arbitral body or agency (including, but not limited to, investigative proceedings) which, if adversely determined, might reasonably be expected to have a Material Adverse Effect have (to the best of
its knowledge and belief) been started or threatened against the Borrower. 
  

	14.11	Pari passu ranking 

 Its payment obligations under
the Finance Documents rank at least pari passu with all its other present and future unsecured and unsubordinated payment obligations, except for obligations mandatorily preferred by law applying to companies generally. 
  

	14.12	Taxes on payments 

 All amounts payable by it to the
Facility Agent under the Finance Documents and the Related Contracts may be made without any Tax Deduction. 
  

 40 

	14.13	Stamp duties 

 Except as notified in writing to and
accepted by the Facility Agent, no stamp or registration duty or similar Tax or charge is payable in its jurisdiction of incorporation in respect of any Finance Document or Related Contract. 
  

	14.14	Environment 

 At and at all times after the Delivery
Date of a Vessel, and except as may already have been disclosed by the Borrower in writing to the Facility Agent: 
  

	 	(a)	the Borrower and its Environmental Representatives have, without limitation, complied with the provisions of all applicable Environmental Laws in relation to each Vessel then
delivered; 

  

	 	(b)	the Borrower and its Environmental Representatives have obtained all requisite Environmental Approvals in relation to each Vessel then delivered and are in compliance with such
Environmental Approvals; 

  

	 	(c)	neither the Borrower nor any of its Environmental Representatives have received notice of any Environmental Claim in relation to the relevant Vessel which alleges that the Borrower
is not in compliance with applicable Environmental Laws in relation to such Vessel or Environmental Approvals in relation to such Vessel; 

  

	 	(d)	there is no Environmental Claim in relation to any delivered Vessel pending or threatened which is such that a first class owner or operator of vessels such as the Vessels, making
all due enquiries and complying in all respects with its obligations under the ISM Code, ought to have known about; and 

  

	 	(e)	there has been no Release of Hazardous Materials by or in respect of any delivered Vessel about which a first class owner or operator of vessels such as the Vessels making all due
enquiries and complying in all respects with its obligations under the ISM Code ought to have known about. 

  

	14.15	Security Interests 

 No Security Interest exists
over its or any of its Subsidiary’s assets which would cause a breach of Clause 16.5 (Security Interests). 
  

	14.16	Security Assets 

 The Borrower is solely and
absolutely entitled to the Security Assets over which it has or will create any Security Interest pursuant to the Security Documents to which it is, or will be, a party and there is no agreement or arrangement under which it is obliged to share any
proceeds of or derived from such Security Assets with any third party. 
  

	14.17	ISM Code compliance 

 In respect of each Vessel,
from the Delivery Date in respect of that Vessel, the Borrower is in full compliance with the ISM Code in respect of that Vessel. 
  

 41 

	14.18	ISPS Code Compliance 

 In respect of each Vessel,
from the Delivery Date in respect of that Vessel, the Borrower is in full compliance with the ISPS Code in respect of that Vessel. 
  

	14.19	No amendments to Related Contracts 

 Other than as
notified to and agreed by the Facility Agent in writing, there have been no amendments to any of the Related Contracts. 
  

	14.20	Money Laundering 

 Any borrowing by the Borrower and
the performance of its obligations hereunder and under the other Finance Documents to which it is a party will be for its own account and will not involve any breach by it of any law or regulatory measure relating to money laundering as defined in
Article 1 of the Directive (91/308/EEC) of the Council of the European Communities or any equivalent law or regulatory measure in any other jurisdiction. 
  

	14.21	Insolvency 

  

	 	(a)	The Borrower is neither unable, nor admits or has admitted its inability, to pay its debts or has suspended making payments on any of its debts. 

  

	 	(b)	The Borrower, by reason of actual or anticipated financial difficulties neither has commenced, nor intends to commence, negotiations with one or more of its creditors with a view to
rescheduling any of its Financial Indebtedness. 

  

	 	(c)	The value of the assets of the Borrower is not less than its liabilities (taking into account contingent and prospective liabilities). 

  

	 	(d)	No moratorium has been, or may, in the reasonably foreseeable future be, declared in respect of any indebtedness of the Borrower. 

  

	 	(e)	No reorganisation or liquidation of the Borrower has occurred. 

  

	14.22	Immunity 

  

	 	(a)	The execution by it of each Finance Document to which it is a party constitutes, and the exercise by it of its rights and performance of its obligations under each such Finance
Document will constitute, private and commercial acts performed for private and commercial purposes. 

  

	 	(b)	It will not be entitled to claim immunity from suit, execution, attachment or other legal process in any proceedings taken in its jurisdiction of incorporation in relation to any
Finance Document. 

  

	14.23	No adverse consequences 

  

	 	(a)	It is not necessary under the laws of its jurisdiction of incorporation: 

  

	 	(i)	in order to enable the Facility Agent or any Lender to enforce its rights under any Finance Document; or 

  

	 	(ii)	by reason of the execution of any Finance Document or the performance by it of its obligations under any Finance Document, that the Facility Agent or any Lender should be licensed,
qualified or otherwise entitled to carry on business in its jurisdiction of incorporation; and 

  

 42 

	 	(b)	Neither the Facility Agent nor any Lender will be deemed to be resident, domiciled or carrying on business in its jurisdiction of incorporation by reason only of the execution,
performance and/or enforcement of any Finance Document. 

  

	14.24	Jurisdiction/governing law 

  

	 	(a)	Its: 

  

	 	(i)	irrevocable submission under this Agreement to the jurisdiction of the courts of England; 

  

	 	(ii)	agreement that this Agreement is governed by English law; and 

  

	 	(iii)	agreement not to claim any immunity to which it or its assets may be entitled, 

 are legal, valid and binding under the laws of its jurisdiction of incorporation. 
  

	 	(b)	Any judgment obtained in England will be recognised and be enforceable by the courts of its jurisdiction of incorporation, subject to any statutory or other conditions of such
jurisdiction. 

  

	14.25	Charters 

 In respect of each Vessel, any Time
Charter in respect of that Vessel shall be in full force and effect. 
  

	14.26	Times for making representations 

  

	 	(a)	The representations set out in this Clause 14 are made by the Borrower on the date of this Agreement. 

  

	 	(b)	Unless a representation is expressed to be given at a specific date, each representation is deemed to be repeated by the Borrower during the Pre-Delivery Period on each Utilisation
Date and on the date of each Request and, during the Post-Delivery Period, annually on each anniversary of the Delivery Date when the Borrower shall provide to the Facility Agent an Annual Compliance Certificate. 

  

	 	(c)	When a representation is repeated, it is applied to the circumstances existing at the time of repetition. 

  

	15.	INFORMATION COVENANTS 

  

	15.1	Financial statements 

  

	 	(a)	The Borrower must supply to the Facility Agent in sufficient copies (which may take the form of an electronic copy) for all the Lenders: 

  

	 	(i)	its audited consolidated financial statements for each of its financial years ending after the date hereof; 

  

	 	(ii)	its interim unaudited financial statements for the first half-year of each of its financial years; and 

  

 43 

	 	(iii)	if and to the extent the Borrower is required by any Applicable Law to produce quarterly financial statements, the quarterly financial statements for the Borrower as the case may be
for the first and third quarters of each of its financial years ending after the date hereof. 

  

	 	(b)	The Borrower must supply to the Facility Agent copies of the audited financial statements of the Charterer for each of its financial years within five (5) Business Days of such
financial statements becoming available to the Borrower but in any event within one hundred and twenty (120) days of the end of the relevant financial period. 

  

	 	(c)	All financial statements must be supplied promptly after they are available and: 

  

	 	(i)	in the case of audited financial statements of the Borrower, within ninety (90) days of the end of the relevant financial period; 

  

	 	(ii)	in the case of interim semi-annual financial statements of the Borrower, within ninety (90) days of the end of the relevant financial period; and 

  

	 	(iii)	in the case of interim quarterly financial statements of the Borrower, within sixty (60) days of the end of the relevant financial period. 

  

	 	(d)	The Facility Agent shall send to each Lender all of the financial statements received by it under this Clause 15.1 within five (5) days of receipt of such financial statements.

  

	15.2	Form of financial statements 

  

	 	(a)	The Borrower must ensure that each set of its financial statements supplied under this Agreement fairly represents the financial condition (consolidated or otherwise) of the
Borrower as at the date to which those financial statements were drawn up. 

  

	 	(b)	The Borrower must notify the Facility Agent of any change to the basis on which its audited financial statements are prepared. 

  

	 	(c)	If requested by the Facility Agent, the Borrower must supply or procure that the following are supplied to the Facility Agent: 

  

	 	(i)	a full description of any change notified under paragraph (b) above; and 

  

	 	(ii)	sufficient information to enable the Facility Agent to make a proper comparison between the financial position shown by the set of financial statements prepared on the changed basis
and its most recent audited consolidated financial statements delivered to the Facility Agent under this Agreement. 

  

	 	(d)	If requested by the Facility Agent, the Borrower must enter into discussions for a period of not more than thirty (30) days with a view to agreeing to any amendments required
to be made to this Agreement to place the Facility Agent in the same position as it would have been in if the change had not happened. 

  

	 	(e)	If no agreement is reached under paragraph (d) above on the required amendments to this Agreement, the Borrower must ensure that its auditors certify those amendments; the
certificate of the auditors will be, in the absence of manifest error, binding on all the Parties. 

  

 44 

	15.3	Compliance Certificate 

  

	 	(a)	The Borrower must supply to the Facility Agent a Compliance Certificate in the form attached at Schedule 8 on a quarterly basis (the first such Compliance Certificate to be provided
on the first Quarter Day following the date of the first drawdown under the Facility). 

  

	 	(b)	The Borrower must supply to the Facility Agent an Annual Compliance Certificate in the form attached at Schedule 9 with each set of its annual audited consolidated financial
statements sent to the Facility Agent under this Agreement. 

  

	 	(c)	Each Compliance Certificate supplied by the Borrower must be signed by its chief financial officer or chief executive officer. 

  

	15.4	Access to Books and Records 

 Upon the
request of the Facility Agent, the Borrower shall provide the Facility Agent and any of its representatives, professional advisors and contractors with access to, and permit inspection of, its books and records, in each case at reasonable times and
upon reasonable notice. 
  

	15.5	Information—miscellaneous 

 The Borrower must
supply to the Facility Agent in sufficient copies (which may take the form of an electronic copy) for all the Lenders: 
  

	 	(a)	copies of all documents despatched by it to its creditors generally or any class of them at the same time as they are despatched; 

  

	 	(b)	copies of all notices and minutes relating to any Extraordinary General Meeting of its shareholders at the same time as they are despatched; 

  

	 	(c)	promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against it and which might, if
adversely determined, have a Material Adverse Effect; and 

  

	 	(d)	promptly on request, such further information, in sufficient copies for all the Lenders, regarding the financial condition and operations of the Borrower as the Facility Agent may
reasonably request. 

  

	15.6	Notification of Default 

  

	 	(a)	Unless the Facility Agent has already been so notified, the Borrower must notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon
becoming aware of its occurrence. 

  

	 	(b)	 Promptly on request by the Facility Agent but not more often than once in each period of 12 months, unless the Facility Agent, acting reasonably, believes an Event
of Default has occurred and is continuing (in which event the Facility Agent shall be entitled to make such requests as and when it considers it appropriate to do so), the Borrower must supply to the Facility Agent a certificate, signed by two of
its 

  

 45 

	 	 
authorised signatories on its behalf, certifying that no Default is outstanding or, if a Default is outstanding, specifying the Default and the steps, if
any, being taken to remedy it. 

  

	15.7	Year end 

 The Borrower may not change its financial
year end. 
  

	16.	GENERAL COVENANTS 

  

	16.1	General 

 The Borrower agrees to be bound by the
covenants set out in this Clause 16 relating to it. 
  

	16.2	Authorisations 

 The Borrower must promptly obtain,
maintain and comply, in all material respects, with the terms of any authorisation required under any Applicable Law to enable it to perform its obligations under, or for the validity or enforceability of, any Finance Document. 
  

	16.3	Compliance with laws 

 The Borrower must comply and
must procure that the Manager complies in all respects with all Applicable Laws to which it is subject where failure to do so is reasonably likely to have a Material Adverse Effect. 
  

	16.4	Pari passu ranking 

 The Borrower must ensure that
its payment obligations under the Finance Documents rank at least pari passu with all its other present and future unsecured and unsubordinated payment obligations, except for obligations mandatorily preferred by law applying to companies
generally. 
  

	16.5	Security Interests 

 The Borrower shall not, and the
Borrower shall procure that the Manager does not, create or permit to subsist any Security Interest over the Obligatory Insurances or any other Security Assets or any Related Contract other than: 
  

	 	(a)	Permitted Liens; or 

  

	 	(b)	with the prior written consent of the Facility Agent (acting on the instructions of the Majority Lenders). 

  

	16.6	No other business assets or Financial Indebtedness 

 The Borrower shall not engage in any business other than the direct or indirect ownership, operation and chartering of container vessels and any business incidental thereto, nor shall the Borrower incur any Financial Indebtedness to be
secured in any way on the Vessels, or any of them, or any other Security Asset other than the Financial Indebtedness contemplated by this Agreement. The Borrower may incur any other indebtedness or issue guarantees against financial loss of any
person on an unsecured basis or secured on assets which are not, and will not at any time be, Security Assets. 
  

 46 

	16.7	Payment of dividends 

 The Borrower shall not pay
any dividends or make any other distributions (whether by loan or otherwise) to shareholders unless, under Applicable Law and accounting principles in its jurisdiction of incorporation it is entitled to distribute as dividends or such other
distribution and no Event of Default has occurred and is continuing. 
  

	16.8	Change of business 

  

	 	(a)	The Borrower must ensure that no change is made to the general nature of its business from that carried on at the date of this Agreement other than the direct or indirect ownership,
operation and chartering of container vessels and any business incidental thereto. 

  

	 	(b)	The Borrower must maintain its place of business, and keep its corporate documents and records, at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960, and the Borrower will not establish, or do anything as a result of which it would be deemed to have, a place of business in any country other than the Republic of the Marshall Islands, provided that the Borrower may establish a place of
business and may keep its corporate records and documents in Hong Kong and Vancouver or either of them if the Facility Agent (acting on the instructions of the Majority Lenders) is satisfied that such establishment in such location does not
adversely affect the validity, enforceability or effectiveness of any Security Agreement and does not give rise to any requirement under any Applicable Law for a Tax Deduction. 

  

	16.9	Mergers 

 The Borrower shall not enter into any
amalgamation, demerger, merger or reconstruction otherwise than under an intra-group re-organisation on a solvent basis or other transaction agreed by the Facility Agent (acting on the instructions of the Majority Lenders). 
  

	16.10	Security 

 The Borrower: 
  

	 	(a)	will procure, on the Delivery Date in respect of a Vessel, that the relevant Mortgage is, and continues to be, registered as a first priority mortgage on the Hong Kong Shipping
Register in respect of that Vessel; 

  

	 	(b)	without prejudice to paragraph (a) will procure that the Mortgages and any other security conferred by it under any Security Document are registered as a first priority
interest with the relevant authorities within the period prescribed by the Applicable Laws and is maintained and perfected with the relevant authorities; 

  

	 	(c)	will at its own cost ensure that any Finance Document validly creates the obligations and Security Interests which it purports to create; and 

  

	 	(d)	without limiting the generality of paragraph (a) above, will at its own cost, promptly register, file, record or enrol any Finance Document with any court or authority, pay any
stamp, registration or similar tax payable in respect of any Finance Document, give any notice or take any other step which, in the reasonable opinion of the Facility Agent, is or has become necessary or desirable for any Finance Document to be
valid, enforceable or admissible in evidence or to ensure or protect the priority of any Security Interest which it creates. 

  

 47 

	16.11	Transactions with affiliated companies 

 The
Borrower may not enter into any material transaction with any Affiliate of it unless it is either (i) to comply with any obligations the Borrower may have under the Finance Documents or (ii) on an arm’s length basis or on terms
reasonably consistent with and having a substantially similar commercial effect to an arm’s length transaction. 
  

	16.12	Registration of the Vessels 

 The Borrower shall and
procure that the Manager shall: 
  

	 	(a)	procure and maintain with effect from the Delivery Date of the relevant Vessel the valid and effective provisional registration of the Vessel under the flag of Hong Kong in the name
of the Borrower and shall effect permanent registration of the Vessel within two months from the Delivery Date of the relevant Vessel, or such other flag of equivalent reputation as is satisfactory to the Facility Agent (acting on the instructions
of the Majority Lenders such approval not to be unreasonably withheld), and shall ensure nothing is done or omitted by which the registration of the Vessels would or might be defeated or imperilled; and 

  

	 	(b)	not change the registered owner, the name or port of registration of the Vessels without the prior written consent of the Facility Agent (acting on the instructions of the Majority
Lenders) (such consent not to be unreasonably withheld). 

  

	16.13	[Intentionally omitted] 

  

	16.14	Classification and repair 

 The Borrower will, and
will procure that the Manager will from the Delivery Date of each Vessel: 
  

	 	(a)	ensure that such Vessel is surveyed from time to time as required by the classification society in which the Vessel is for the time being entered and maintain and preserve the
Vessel in good working order and repair, ordinary wear and tear excepted, and in any event in such condition as will entitle each to the classification (acceptable to the Facility Agent (acting on the instructions of the Majority Lenders)) that it
has as of the Delivery Date with Lloyds Register, (or to the equivalent classification in another internationally recognised classification society of like standing acceptable to the Facility Agent (acting on the instructions of the Majority
Lenders)), free of all overdue requirements and recommendations of that classification society; 

  

	 	(b)	procure that all repairs to or replacement of any damaged, worn or lost parts or equipment shall be effected in such manner (both as regards workmanship and quality of materials) as
not to diminish the value of the Vessel; 

  

	 	(c)	 not remove any material part of any of such Vessel, or any item of equipment installed on such Vessel unless the part or item so removed is forthwith replaced by a
suitable part or item which is in the same condition as or better condition than the part or item removed, is free from any Security Interest (other than a Permitted Lien) or any right in favour of any person other than the Facility Agent and
becomes on installation on that Vessel the property of the Borrower and subject to the security 

  

 48 

	 	 
constituted by the relevant Security Document(s) provided that the Borrower may install and remove equipment owned by a third party if the equipment can be
removed without any risk of damage to a Vessel; 

  

	 	(d)	ensure that each Vessel complies with all Applicable Laws from time to time applicable to vessels registered under the laws and flag of Hong Kong or such other flag, under which
such Vessel may be registered from time to time in accordance with this Agreement; and 

  

	 	(e)	not without the prior written consent of the Facility Agent (acting on the instructions of the Majority Lenders) (such consent not to be unreasonably withheld), cause or permit to
be made any substantial change in the structure, type or performance characteristics of such Vessel and provide notification of such substantial changes in structure, type or performance characteristics of such Vessel to the Facility Agent and,
furthermore, provide confirmation to the Facility Agent that such substantial change in structure, type or performance characteristics of any of the Vessels shall not result in a breach of any covenant under this Agreement. 

 

	16.15	Lawful and Safe Operation 

 The Borrower will, and
will procure that the Manager will, at all times after the Delivery Date of each Vessel: 
  

	 	(a)	operate each Vessel and cause each of the Vessels to be operated in a manner consistent in all material respects with any and all laws, regulations, treaties and conventions (and
all rules and regulations issued thereunder) from time to time applicable to the Vessel; 

  

	 	(b)	not cause or permit any of the Vessels to trade with, or within the territorial waters of any country in which her safety could reasonably be expected to be imperilled by exposure
to piracy, terrorism, arrest, requisition, confiscation, forfeiture, seizure, destruction or condemnation as prize; 

  

	 	(c)	not cause or permit any of the Vessels to be employed in any manner which will or may give rise to any reasonable degree of likelihood that such Vessel would be liable to
requisition, confiscation, forfeiture, seizure, destruction or condemnation as prize; 

  

	 	(d)	not cause or permit any of the Vessels to be employed in any trade or business which is forbidden by international law or is illicit or in carrying illicit or prohibited goods;

  

	 	(e)	in the event of hostilities in any part of the world (whether war be declared or not) not cause or permit any of the Vessels to be employed in carrying any contraband goods and that
she does not trade in any zone after it has been declared a war zone by any authority or by any of that Vessel’s war risks Insurers unless that Vessel’s Insurers shall have confirmed to the Borrower that such Vessel is held covered under
the Obligatory Insurances for the voyage(s) in question; and 

  

	 	(f)	not charter any of the Vessels or permit any of the Vessels to serve under any contract of affreightment with any foreign country or national of any foreign country which would be
contrary to Applicable Law or would render any Finance Document or the security conferred by the Security Documents unlawful. 

  

 49 

	16.16	Repair of the Vessels 

 The Borrower will not and
will procure that the Manager will not, at any time after the Delivery Date of a Vessel put such Vessel into the possession of any person for the purpose of work being done upon her beyond the amount of US$5,000,000 (or equivalent), other than for
classification or scheduled dry docking unless such person shall have given an undertaking to the Facility Agent not to exercise any lien on that Vessel or Obligatory Insurances for the cost of that work or otherwise. 
  

	16.17	Arrests and Liabilities 

 The Borrower will, and
will procure that the Manager will, at all times after the Delivery Date of a Vessel: 
  

	 	(a)	pay and discharge all obligations and liabilities whatsoever which have given or may give rise to liens (other than liens arising in the ordinary course of operation of any of the
Vessels in each case for amounts the payment of which is not yet due or, if due and payable, is being disputed in good faith by appropriate proceeding (and for the payment of which adequate reserves have been provided or are and continue to be
available)) on or claims enforceable against any of the Vessels and take all reasonable steps to prevent a threatened arrest of any of the Vessels; 

  

	 	(b)	notify the Facility Agent promptly in writing of the levy of either distress on any of the Vessels or her arrest, detention, seizure, condemnation as prize, compulsory acquisition
or requisition for title or use and (save in the case of compulsory acquisition or requisition for title or use) obtain her release within thirty (30) days; 

  

	 	(c)	pay and discharge when due all dues, taxes, assessments, governmental charges, fines and penalties lawfully imposed on or in respect of any of the Vessels or the Borrower except
those which are being disputed in good faith by appropriate proceedings (and for the payment of which adequate reserves have been provided or are and continue to be available) and provided that the continued existence of such dues, taxes,
assessments, governmental charges, fines or penalties does not give rise to any reasonable degree of likelihood that any of the Vessels would be liable to arrest, requisition, confiscation, forfeiture, seizure, destruction or condemnation as prize;
and 

  

	 	(d)	pay and discharge all other obligations and liabilities whatsoever in respect of any of the Vessels and the Obligatory Insurances except those which are being disputed in good faith
by appropriate proceedings (and for the payment of which adequate reserves have been provided or are and continue to be available) and provided that the continued existence of those obligations and liabilities in respect of any of the Vessels and
the Obligatory Insurances does not give rise to any reasonable degree of likelihood that the Vessel would be liable to arrest, requisition, confiscation, forfeiture, seizure, destruction or condemnation as prize and provided always that each Vessel
remains properly managed and insured at all times in accordance with the terms of this Agreement. 

  

	16.18	Related Contracts 

 The Borrower shall not take any
action, enter into any document or agreement or omit to take any action or to enter into any document or agreement which would, or could reasonably be expected to, cause any Related Contract to cease to remain in full force and effect and shall use
all reasonable endeavours to procure that each other party to any Related Contract does 

  

 50 

 
not take any action, enter into any document or agreement or omit to take any action or to enter into any document or agreement which would, or could
reasonably be expected to, cause any Related Contract to cease to remain in full force and effect. 
  

	16.19	Environment 

 The Borrower shall, and shall procure
that the Manager shall, at all times after the Delivery Date of a Vessel: 
  

	 	(a)	comply with all applicable Environmental Laws including, without limitation, requirements relating to the establishment of financial responsibility (and shall require that all
Environmental Representatives of the Borrower comply with all applicable Environmental Laws and obtain and comply with all required Environmental Approvals, which Environmental Laws and Environmental Approvals relate to any of the Vessels or her
operation or her carriage of cargo); and 

  

	 	(b)	promptly upon the occurrence of any of the following events, provide to the Facility Agent a certificate of an officer of the Borrower or of the Borrower’s agents specifying in
detail the nature of the event concerned: 

  

	 	(i)	the receipt by the Borrower or any Environmental Representative (where the Borrower has knowledge of the receipt) of any Environmental Claim; or 

  

	 	(ii)	any Release of Hazardous Materials. 

  

	16.20	Information regarding the Vessels 

 The Borrower
shall, and shall procure that the Manager shall, at all times after the Delivery Date of a Vessel: 
  

	 	(a)	promptly notify the Facility Agent of the occurrence of any accident, casualty or other event which has caused or resulted in or may cause or result in a Vessel being or becoming a
Total Loss; 

  

	 	(b)	promptly notify the Facility Agent of any material requirement or recommendation made by any Insurer or classification society or by any competent authority which is not complied
with in a timely manner; 

  

	 	(c)	annually provide the Facility Agent with a schedule setting outgoing and all intended dry dockings of any of the Vessels, such schedule to form part of the Annual Compliance
Certificate; 

  

	 	(d)	promptly notify the Facility Agent of any Environmental Claim being made in connection with any of the Vessels or its operation; 

  

	 	(e)	promptly notify the Facility Agent of any claim for breach of the ISM Code being made in connection with any of the Vessels or its operation; 

  

	 	(f)	promptly notify the Facility Agent of any claim for breach of the ISPS Code being made in connection with any of the Vessels or its operation; 

  

	 	(g)	give to the Facility Agent from time to time on request such information, in sufficient copies (which may take the form of electronic copies) for all the Lenders, as the Facility
Agent may reasonably require regarding any of the Vessels, her employment, position and engagements; 

  

 51 

	 	(h)	provide the Facility Agent with copies of the classification certificate of the Vessels and of all periodic damage or survey reports on any of the Vessels which the Facility Agent
may reasonably request; 

  

	 	(i)	promptly furnish the Facility Agent with full information of any casualty or other accident or damage to any of the Vessels involving an amount in excess of US$1,500,000 (or
equivalent); 

  

	 	(j)	give to the Facility Agent and its duly authorised representatives reasonable access to either of the Vessels for the purpose of conducting on board inspections and/or surveys of
the Vessels and pay the reasonable expenses incurred by the Facility Agent in connection with the inspections and/or surveys provided that, unless a Default has occurred and is continuing, such inspections and/or surveys shall not take place at the
expense of the Borrower and the Facility Agent shall co-operate with the Borrower in respect of the timing for and the place where such surveys take place in order to minimise disruption to the activities of any of the Vessels; and

  

	 	(k)	if the Facility Agent reasonably believes an Event of Default may have occurred, furnish to the Facility Agent from time to time upon reasonable request certified copies of the
ship’s log in respect of any of the Vessels. 

  

	16.21	Provision of further information 

 The Borrower
shall, and shall procure that the Manager shall, as soon as practicable following receipt of a request by the Facility Agent, provide the Facility Agent, with sufficient copies for all the Lenders, with any additional or further financial or other
information relating to any of the Vessels, the Obligatory Insurances or to any other matter relevant to, or to any provision of, a Finance Document which the Facility Agent may reasonably request. 
  

	16.22	Management 

 The Borrower shall, and shall procure
that the Manager shall, ensure that at all times after the Delivery Date of a Vessel: 
  

	 	(a)	the relevant Vessel is managed by the Manager; and 

  

	 	(b)	the Manager shall not terminate or materially vary the terms of its management or appoint an alternative manager except in accordance with the Management Agreement, provided that
the Borrower shall be entitled so to do with the prior written consent of the Facility Agent (acting on the instructions of the Majority Lenders). 

 However, in the event that the Manager’s appointment as manager of either one of the Vessels ceases or is terminated in circumstances where it was not possible for the Borrower to obtain the prior written consent
of the Facility Agent, the Borrower shall promptly and in any event within ten (10) days from the date of the termination of the Manager’s appointment, provide to the Facility Agent details of a replacement manager, such manager to be
satisfactory to the Facility Agent (acting on the instructions of the Majority Lenders). 
  

 52 

	16.23	Proceeds from sale or Total Loss of a Vessel 

  

	 	(a)	The Borrower shall procure that the proceeds from a sale or Total Loss of the relevant Vessel shall immediately upon receipt by the Borrower be paid into the Retention Account in
accordance with Clause 12.2 for application by the Facility Agent in accordance with Clause 12.3, unless an Event of Default has occurred and is continuing, in which case the proceeds from a sale or Total Loss of the relevant Vessel shall
immediately upon receipt by the Borrower be paid to the Facility Agent for application in accordance with Clause 13.7 (Payments). 

  

	 	(b)	For and so long as the Borrower holds any such proceeds as referred to in paragraph (a) it shall do so on trust for the Facility Agent. 

  

	16.24	Charters 

  

	 	(a)	The Borrower will not let any of the Vessels on demise, consecutive voyage or voyage charter for any period without the consent of the Facility Agent (acting on the instructions of
the Majority Lenders) such consent not to be unreasonably withheld. 

  

	 	(b)	The Borrower shall be entitled to let its Vessels, in accordance with the terms of the Time Charters PROVIDED always that: 

  

	 	(i)	the Borrower shall remain liable under any time charter to perform all the obligations assumed by it under the Time Charter; 

  

	 	(ii)	the Facility Agent shall not be under any obligations or liability under any time charter or liable to make any payment under that time charter; and 

  

	 	(iii)	the Facility Agent shall not be obliged to enforce against any charterer any term of any time charter, or to make any enquiries as to the nature or sufficiency of any payment
received by the Facility Agent. 

  

	16.25	Charter Breach, Expiration or Termination of Time Charter 

  

	 	(a)	At all times, the Borrower shall advise the Facility Agent of any of the following events: 

  

	 	(i)	any Charter Breach by the Charterer of the terms of a Time Charter of which the Borrower becomes aware; 

  

	 	(ii)	the termination of a Time Charter by either the Borrower or the Charterer; 

  

	 	(iii)	the expiration of a Time Charter; 

  

	 	(iv)	as soon as it becomes aware of such event, the occurrence of an event of cross default of the nature referred to in Clause 19.5 (Cross-default) in respect of the Charterer, PROVIDED
always that such event shall not arise in respect of the Charterer where the aggregate amount of the relevant Financial Indebtedness of the Charterer is less than US$50,000,000 or its equivalent; or 

  

	 	(v)	 as soon as it becomes aware of such event, the occurrence of an insolvency event of the nature referred to in Clause 19.6 (Insolvency), 19.7 (Insolvency
proceedings), 19.8 (Creditor’s process) or 19.9 (Cessation of business) in respect of the Charterer, 

  

 53 

	 	 
and upon the occurrence of any such event the Facility Agent shall be (acting on the instructions of the Majority Lenders) entitled to require that the
Borrower exercises all of its rights under the relevant Time Charter including, where applicable, the termination of the Time Charter in respect of the relevant Vessel. 

  

	 	(b)	In the event of a termination of a Time Charter in accordance with Clause 16.25(a) or otherwise, in relation to which a charter termination fee is payable, such termination fee
shall be payable into the Retention Account in accordance with Clause 12.2. 

  

	 	(c)	In the event of a expiration or termination of a Time Charter referred to in paragraph (a) above the Borrower shall, within ninety (90) days of such expiration or
termination, enter into a substitute time charter with a charterer acceptable to the Lenders and with a term of at least the same remaining duration as the Time Charter which has terminated or, if expired, extending to at least the relevant Term
Loan Final Maturity Date, such time charter to be in form and substance similar to an existing Time Charter or otherwise reasonably acceptable to the Facility Agent (acting on the instructions of the Majority Lenders) and the relevant charter
termination fee shall be released to the Borrower in accordance with Clause 12.3(b)(i), failing which either: 

  

	 	(i)	the charter termination fee shall be applied by the Facility Agent in prepayment of the relevant Loan to ensure that the aggregate of the Market Value of the Vessels then delivered
is not less than 125% of the aggregate principal amounts then outstanding under the Loans related to such Vessels and if for any reason the amount of the charter termination fee shall be insufficient to make the prepayment described in this
paragraph (i), the Borrower shall, without demand, provide the Facility Agent with an amount equal to the amount of the shortfall; or 

  

	 	(ii)	the Borrower shall provide or cause to be provided to the Facility Agent such additional security as is satisfactory to the Facility Agent (acting on the instructions of the
Majority Lenders) so as to ensure that the aggregate of the Market Value of the Vessels then delivered is not less than 125% of the aggregate principal amounts then outstanding under the Loans related to those Vessels. 

  

	16.26	Scope of Obligatory Insurances 

 The Borrower will,
in respect of each Vessel: 
  

	 	(a)	procure the Builder’s compliance with the Builder’s Risk Insurances as detailed in the relevant Article of each Shipbuilding Contract. 

  

	 	(b)	at all times after the relevant Delivery Date, keep that Vessel insured in the Required Insurance Amount, in Dollars in the name of the Borrower or (if the Facility Agent so
requires) in the joint names of the Borrower and the Facility Agent without the Facility Agent being liable but having the right to pay premiums, through brokers approved by the Facility Agent against fire and usual marine risks (including hull and
machinery and Excess Risks) with approved underwriters or insurance companies approved by the Facility Agent and by policies in form and content approved by the Facility Agent; 

  

	 	(c)	 at all times after the relevant Delivery Date, keep that Vessel insured in the Required Insurance Amount in the same manner as above against war risks (including
risks of 

  

 54 

	 	 
mines and all risks, whether or not regarded as war risks, London Blocking and Trapping Addendum and Lost Vessel Clause, excepted by the free of capture and
seizure clauses in the standard form of Lloyds marine policy) either: 

  

	 	(i)	with underwriters or insurance companies approved by the Facility Agent and by policies in form and content approved by the Facility Agent; or 

  

	 	(ii)	by entering the relevant Vessel in an approved war risks association, 

 and for the avoidance of doubt, such war risks insurance will include protection and indemnity liability up to at least the Required Insurance Amount, excluding any liability in respect of death, injury or damage to
crew; 
  

	 	(d)	at all times after the relevant Delivery Date, keep that Vessel entered in respect of her full value and tonnage in an approved protection and indemnity association against all
risks as are normally covered by such protection and indemnity association (including pollution risks and the proportion not recoverable in case of collision under the running down clause inserted in the ordinary Lloyds policies), such cover for
pollution risks to be for: 

  

	 	(i)	a minimum amount of US$1,000,000,000 or such other amount of cover against pollution risks as shall at any time be comprised in the basic entry of each Vessel with either a
protection and indemnity association which is an acceptable member of either the International Group of protection and indemnity associations (or any successor organisation designated by the Facility Agent for this purpose) or the International
Group (or such successor organisation) itself; or 

  

	 	(ii)	if the International Group or any such successor ceases to exist or ceases to provide or arrange any cover for pollution risks (or any supplemental cover for pollution risks over
and above that afforded by the basic entry of each Vessel with its protection and indemnity association), such aggregate amount of cover against pollution risks as shall be available on the open market and by basic entry with a protection and
indemnity association for ships of the same type, size, age and flag as each respective Vessel, 

 provided that, if any Vessel
has ceased trading or is in lay up and in either case has unloaded all cargo, the level of pollution risks cover afforded by ordinary protection and indemnity cover available through a member of the International Group or such successor organisation
or, as the case may be, on the open market in such circumstances shall be sufficient for such purposes; and 
  

	 	(e)	at all times after the relevant Delivery Date, whenever any Vessel is trading to Japanese territorial waters and when so required by the Facility Agent, maintain in full force and
effect social responsibility insurance in respect of the Vessel with underwriters or insurance companies approved by the Facility Agent and by policies in form and content approved by the Facility Agent, provided always that a first class borrower
or operator of vessels such as the Vessels would maintain and effect such social responsibility insurance. 

  

	16.27	Obligatory Insurances 

 Without prejudice to its
obligations under Clause 16.26 (Scope of Obligatory Insurances), the Borrower will: 
  

	 	(a)	not without the prior consent of the Facility Agent (acting on the instructions of the Majority Lenders) alter any Obligatory Insurance nor make, do, consent or agree to any act or
omission which would or might render any Obligatory Insurance invalid, void, voidable or unenforceable or render any sum paid out under any Obligatory Insurance repayable in whole or in part; 

  

 55 

	 	(b)	not cause or permit any Vessel to be operated in any way inconsistent with the provisions or warranties of, or implied in, or outside the cover provided by, any Obligatory Insurance
or to be engaged in any voyage or to carry any cargo not permitted by any Obligatory Insurances without first covering the relevant Vessel in the relevant Required Insurance Amount and her freights for an amount approved by the Facility Agent
(acting on the instructions of the Majority Lenders) in Dollars or another approved currency with the Insurers; 

  

	 	(c)	duly and punctually pay when due all premiums, calls, contributions or other sums of money from time to time payable in respect of any Obligatory Insurance;

  

	 	(d)	renew all Obligatory Insurances at least fourteen (14) days before the relevant policies or contracts expire, with underwriters or insurance companies either previously
approved by the Majority Lenders or of a security rating of A- or higher, and procure that the brokers and/or war risks and protection and indemnity clubs and associations shall promptly confirm in writing to the Facility Agent as and when each
renewal is effected; 

  

	 	(e)	forthwith upon the effecting of any Obligatory Insurance, give written notice of the insurance to the Facility Agent stating the full particulars (including the dates and amounts)
of the insurance, and on request produce the receipts for each sum paid by it pursuant to paragraph (c) above; 

  

	 	(f)	not settle, release, compromise or abandon any claim in respect of any Total Loss unless the Facility Agent (acting on the instructions of the Majority Lenders) is satisfied that
such release, settlement, compromise or abandonment will not prejudice the interests of the Finance Parties under or in relation to any Finance Document; 

  

	 	(g)	arrange for the execution and delivery of such guarantees as may from time to time be required by any protection and indemnity or war risks club or association;

  

	 	(h)	procure that the interest of the Facility Agent is noted on all policies of insurance relating to the Vessels; 

  

	 	(i)	procure that a loss payee provision in the form scheduled to the Insurances Assignment and reflecting the provisions of Clause 16.28 (Application of Insurance Proceeds) is endorsed
on all policies of insurance relating to the Vessels; 

  

	 	(j)	obtain from the relevant insurance brokers and P&I Club letters of undertaking in the forms scheduled to the Insurances Assignments; and 

  

	 	(k)	in the event that the Borrower receives payment of any moneys under the Insurance Assignment, save as provided in the loss payable clauses scheduled to the Insurance Assignment,
forthwith pay over the same to the Facility Agent and, until paid over, such moneys shall be held in trust for the Facility Agent by the Borrower. 

  

 56 

	16.28	Application of Insurance Proceeds 

  

	 	(a)	All sums receivable in respect of the Obligatory Insurances after the occurrence of an Event of Default shall be paid to the Facility Agent and the Facility Agent shall apply them
in accordance with Clause 13.7 (Payments). 

  

	 	(b)	Subject to paragraph (a) above: 

  

	 	(i)	each sum receivable in respect of a major casualty (being any casualty in respect of which the claim or the aggregate of the claims exceeds US$20,000,000 (or its equivalent)), other
than in respect of protection and indemnity risk insurances, shall be paid to the Facility Agent; and 

  

	 	(ii)	the insurance moneys received by the Facility Agent in respect of any such major casualty shall be paid: 

  

	 	(A)	to the person to whom the relevant liability shall have been incurred; or 

  

	 	(B)	upon the Borrower furnishing evidence satisfactory to the Facility Agent that all loss and damage resulting from the casualty has been properly made good and repaired, to the
Borrower or, at the option of the Facility Agent, to the person by whom any repairs have been or are to be effected. 

  

	 	(iii)	The receipt by any such person referred to in paragraph (A) and (B) of paragraph (ii) above shall be a full and sufficient discharge of the same to the Facility
Agent. 

  

	 	(c)	Subject to paragraph (a) above, each sum receivable in respect of the Obligatory Insurances (insofar as the same are hull and machinery or war risks insurances) which does not
exceed US$20,000,000 or its equivalent shall be paid in full to the Borrower or to its order and shall be applied by it for the purpose of making good the loss and fully repairing all damage in respect of which the receivable shall have been
collected. 

  

	 	(d)	Subject to paragraph (a) above, each sum receivable in respect of protection and indemnity risk Obligatory Insurances shall be paid direct to the person to whom the liability,
to which that sum relates, was incurred, or to the Borrower in reimbursement to it of moneys expended in satisfaction of such liability. 

  

	 	(e)	Notwithstanding any other provision in this Clause 16.28, all sums receivable in respect of Obligatory Insurances relating to a Total Loss shall be applied in accordance with Clause
13.7 (Payments). 

  

	16.29	Power of Facility Agent to Insure 

 If the Borrower
fails to effect and keep in force Obligatory Insurances in accordance with this Agreement, it shall be permissible, but not obligatory, for the Facility Agent to effect and keep in force insurance or insurances in the amounts required under this
Agreement and entries in a protection and indemnity association or club and, if it deems necessary or expedient, to insure the war risks upon any Vessel, and the Borrower will reimburse the Facility Agent for the costs of so doing. 
  

 57 

	16.30	ISM Code 

 The Borrower shall, and shall procure
that the Manager shall: 
  

	 	(a)	at all times after the Delivery Date of a Vessel be responsible for compliance by itself and by such Vessel with the ISM Code; 

  

	 	(b)	at all times after the Delivery Date of a Vessel ensure that: 

  

	 	(i)	the Vessel has a valid Safety Management Certificate (as defined in the ISM Code); 

  

	 	(ii)	the Vessel is subject to a safety management system (as defined in the ISM Code) which complies with the ISM Code; and 

  

	 	(iii)	there is a valid Document of Compliance (as defined in the ISM Code) which is held on board the Vessel, and shall deliver to the Facility Agent, on or before the Delivery Date of a
Vessel, a copy of a valid Safety Management Certificate and a valid Document of Compliance in respect of the relevant Vessel, in each case duly certified by an officer of the Borrower; 

  

	 	(c)	promptly notify the Facility Agent of any actual or, upon becoming aware of the same, threatened withdrawal of an applicable Safety Management Certificate or Document of Compliance;

  

	 	(d)	promptly notify the Facility Agent of the identity of the person ashore designated for the purposes of paragraph 4 of the ISM Code and of any change in the identity of that person;
and 

  

	 	(e)	promptly upon becoming aware of the same notify the Facility Agent of the occurrence of any accident or major non-conformity (as defined in the ISM Code) requiring action under the
ISM Code. 

  

	16.31	ISPS Code 

 The Borrower shall, and shall procure
that the Manager shall, at all times after the Delivery Date of a Vessel: 
  

	 	(a)	comply and be responsible for compliance by itself and by such Vessel with the ISPS Code; 

  

	 	(b)	ensure that: 

  

	 	(i)	the Vessel has a valid International Ship Security Certificate; 

  

	 	(ii)	the Vessel’s security system and its associated security equipment comply with section 19.1 of Part A of the ISPS Code; 

  

	 	(iii)	the Vessel’s security system and its associated security equipment comply in all respects with the applicable requirements of Chapter XI-2 of SOLAS and Part A of the ISPS Code;
and 

  

	 	(iv)	an approved ship security plan is in place. 

  

 58 

	16.32	No amendment to Related Contracts 

 The Borrower
shall not amend or agree to any material amendment to the Related Contracts without the prior written consent of the Facility Agent (acting on the instructions of the Majority Lenders). 
  

	16.33	Dry Docking 

 The Borrower shall procure that the
Manager shall from time to time have sufficient liquid funds available to ensure that, on the date of the scheduled dry docking of a Vessel, the Manager shall have sufficient available liquid funds to meet all of its obligations under the Management
Agreement including, but not limited to, the cost of such scheduled dry docking in relation to that Vessel. 
  

	16.34	Tonnage 

 The Borrower shall procure that, at all
times prior to the Revolving Credit Final Maturity Date, the tonnage weighted average age of the Vessels (calculated in a manner satisfactory to the Facility Agent), shall not at any time exceed twelve years. 
  

	16.35	Equity Contribution 

 On or before the Delivery Date
of each Vessel, the Borrower shall make the relevant Equity Contribution payment in respect of that Vessel and shall, on or before the relevant Delivery Date, provide the Facility Agent with evidence of such payment. 
  

	17.	FINANCIAL COVENANTS 

  

	17.1	Definitions 

 In this Clause: 
 Cash and Cash Equivalents means, as at any date of determination: 
  

	 	(a)	cash in hand or on deposit in the Retention Account; 

  

	 	(b)	any investment in marketable obligations issued or guaranteed by the government of the United States of America, Canada or the United Kingdom or by an instrumentality or agency of
the government of the United States of America, Canada or the United Kingdom, maturing within one (1) year after the relevant date of calculation; 

  

	 	(c)	time deposits and certificates of deposit of any commercial bank having, or which is the principal banking subsidiary of a bank holding company having, a credit rating of either A
by S&P or Fitch or A2 by Moody’s which time deposits and certificates of deposit mature within one (1) year after the relevant date of calculation; 

  

	 	(d)	repurchase obligations with a term of not more than ninety (90) days for underlying securities of the type referred to in subclause (b) above entered into with any bank
meeting the qualifications specified in subclause (c) above; 

  

	 	(e)	open market commercial paper: 

  

	 	(i)	for which a recognised trading market exists; 

  

 59 

	 	(ii)	issued in the United States of America, Canada or the United Kingdom; 

  

	 	(iii)	which matures within one (1) year after the relevant date of calculation; and 

  

	 	(iv)	which has a credit rating of either A-1 by S&P or Fitch or P-1 by Moody’s, or, if no rating is available in respect of the commercial paper, the issuer of which has, in
respect of its long-term debt obligations, an equivalent rating; and 

  

	 	(f)	any other instrument, security or investment approved by the Majority Lenders, 

 in each case, to which the Borrower is beneficially entitled at that time, which is unencumbered (other than by any of the Security Documents) and which is capable of being applied against Total Borrowings.

 EBITDA means the net income of the Borrower for a Measurement Period as adjusted by: 
  

	 	(a)	adding back taxation; 

  

	 	(b)	adding back Interest Expenses; 

  

	 	(c)	taking no account of any extraordinary item; 

  

	 	(d)	excluding any amount attributable to minority interests; 

  

	 	(e)	adding back depreciation and amortisation; and 

  

	 	(f)	taking no account of any revaluation of an asset or any loss or gain over book value arising on the disposal of an asset (otherwise than in the ordinary course of trading) by the
Borrower during that Measurement Period. 

 Interest and Principal Coverage Ratio means, as at any date of determination
and with respect to any period, the ratio of EBITDA for such period to Interest and Principal Expense for such period. 
 Interest and
Principal Expense means all Interest Expense incurred and all payments of principal made by the Borrower during a Measurement Period. 
 Interest Expense means all cash interest and cash commitment fees incurred by the Borrower during a Measurement Period. 
 Marketable Securities means any bonds, stocks, notes or bills payable in a freely convertible and transferable currency and which are listed on a stock exchange acceptable to the Facility Agent (acting on the instructions of the
Majority Lenders). 
 Net Interest Coverage Ratio means, as at any date of determination and with respect to any period, the ratio of
EBITDA for such period to Net Interest Expense for such period. 
 Net Interest Expense means Interest Expense less all interest and
other financing charges received by the Borrower during a Measurement Period. 
 Tangible Net Worth means at any time the amount paid
up or credited as paid up on the issued share capital of the Borrower based on the latest published audited balance sheet of the Borrower (the latest balance sheet) but adjusted by: 
  

	 	(a)	adding any amount standing to the credit of the profit and loss account of the Borrower for the period ending on the date of the latest balance sheet; 

  

 60 

	 	(b)	deducting any dividend or other distribution declared, recommended or made by the Borrower; 

  

	 	(c)	deducting any amount standing to the debit of the profit and loss account of the Borrower for the period ending on the date of the latest balance sheet; 

  

	 	(d)	deducting any amount attributable to goodwill (other than goodwill attributable to the Vessels) or any other intangible asset; 

  

	 	(e)	deducting any amount attributable to an upward revaluation of assets after the date of this Agreement; 

  

	 	(f)	adding the amount referred to in Schedule 11 for the date of the latest balance sheet which represents the difference between (i) an estimated book value for certain vessels
based on their fair market value at the time of the Borrower’s acquisition thereof and a depreciation in equal increments over a thirty (30) year period and (ii) the actual book value of such vessels based on their actual purchase
price and scheduled depreciation; 

  

	 	(g)	reflecting any variation in the amount of the issued share capital of the Borrower and the capital and revenue reserves of the Borrower after the date of the latest balance sheet;

  

	 	(h)	reflecting any variation in the interest of the Borrower since the date of the latest balance sheet; 

  

	 	(i)	excluding any amount attributable to deferred taxation; and 

  

	 	(j)	excluding any amount attributable to minority interests. 

 Total Assets means, at any date, the aggregate of: 
  

	 	(a)	the then current book values of all vessels owned or leased with a purchase option by the Borrower, but adding back in relation to the vessels listed in Schedule 11, the amount
referred to in paragraph (f) of the definition of Tangible Net Worth; 

  

	 	(b)	the then current aggregate amount of cash, Marketable Securities (but no other bonds, notes or bills and less any cash or Marketable Securities accounted for in the definition of
Total Borrowings below) and receivables due to the Borrower (less provision for bad and doubtful debts) as shown in the latest financial statements; and 

  

	 	(c)	the book values of all other (non-shipping) assets as shown in such latest financial statements. 

 Total Borrowings means, in respect of the Borrower, at any time the aggregate of the following: 
  

	 	(a)	the outstanding principal amount of any moneys borrowed; 

  

	 	(b)	the outstanding principal amount of any acceptance under any acceptance credit; 

  

 61 

	 	(c)	the outstanding principal amount of any bond, note, debenture, loan stock or other similar instrument; 

  

	 	(d)	the capitalised element of indebtedness under a finance or capital lease; 

  

	 	(e)	the outstanding principal amount of all moneys owing in connection with the sale or discounting of receivables (otherwise than on a non-recourse basis); 

  

	 	(f)	the outstanding principal amount of any indebtedness arising from any deferred payment agreements arranged primarily as a method of raising finance or financing the acquisition of
an asset; 

  

	 	(g)	any fixed or minimum premium payable on the repayment or redemption of any instrument referred to in paragraph (c) above; 

  

	 	(h)	the outstanding principal amount of any indebtedness arising in connection with any other transaction (including any forward sale or purchase agreement) which has the commercial
effect of a borrowing; and 

  

	 	(i)	the outstanding principal amount of any indebtedness of any person of a type referred to in the above paragraphs which is the subject of a guarantee, indemnity or similar assurance
against financial loss given by the Borrower. 

  

	17.2	Interpretation 

  

	 	(a)	Except as provided to the contrary in this Agreement, an accounting term used in this Clause is to be construed in accordance with U.S. GAAP. 

  

	 	(b)	Any amount in a currency other than Dollars is to be taken into account at its Dollar equivalent calculated on the basis of: 

  

	 	(i)	the Facility Agent’s spot rate of exchange for the purchase of the relevant currency in the London foreign exchange market with Dollars at or about 11.00 a.m. on the day the
relevant amount falls to be calculated; or 

  

	 	(ii)	if the amount is to be calculated on the last day of a financial period of the Borrower, the relevant rates of exchange used by the Borrower in, or in connection with, its financial
statements for that period. 

  

	 	(c)	No item must be credited or deducted more than once in any calculation under this Clause. 

  

	17.3	Tangible Net Worth 

 The Borrower must ensure that
Tangible Net Worth always exceeds four hundred and fifty million Dollars (US$450,000,000). 
  

	17.4	Gearing 

 Unless waived by the Facility Agent
(acting on the instructions of the Majority Lenders) the Borrower must ensure that Total Borrowings are always less than sixty five per cent (65%) of Total Assets at that time. 
  

 62 

	17.5	Minimum Liquidity 

 If, at any time, more than fifty
per cent (50%) of the vessels owned by the Borrower (assessed by value) are subject to time charters which have a remaining term of one year or less (excluding any optional extensions not then exercised), the Borrower must ensure that the Cash
and Cash Equivalents held by the Borrower at such date of determination are not less than twenty five million Dollars (US$25,000,000). 
  

	17.6	Net Interest Coverage Ratio 

 The Borrower must
ensure that the Net Interest Coverage Ratio is always greater than 2.50 to 1. 
  

	17.7	Interest and Principal Coverage Ratio 

 The Borrower
must ensure that the Interest and Principal Coverage Ratio is always greater than or equal to 1.1 to 1. 
  

	17.8	Charter Default 

 The Borrower must ensure at all
times following a breach by the Charterer in circumstances where substitute charters required under Clause 16.25 (Charter Breach, Expiration or Termination of Charter) have not been entered into by the Borrower within ninety (90) days of such
Charter Breach, that the aggregate Market Value of the Vessels then delivered shall not be less than 125 per cent. of the aggregate principal amount of the outstanding Loans relating to such Vessels. 
  

	17.9	Testing of Financial Covenants 

  

	 	(a)	Each of the financial covenants set out in Clauses 17.3 to 17.8 (inclusive) shall be tested by reference to each rolling twelve (12) month Measurement Period, provided always
that the Interest and Principal Coverage Ratio referred to in Clause 17.7 shall be tested on the basis of the financial statements of the Borrower for the last fiscal quarter of the Borrower in the event of the occurrence of the circumstances set
out in Clause 17.8. 

  

	 	(b)	The Borrower shall provide a Compliance Certificate each quarter in respect of the financial covenants. 

  

	18.	[INTENTIONALLY OMITTED] 

  

	19.	DEFAULT 

  

	19.1	Events of Default 

 Each of the events set out in
this Clause 19 is an Event of Default. 
  

	19.2	Non-payment 

 The Borrower does not pay on the due
date any amount payable by it under the Finance Documents in the manner required under the Finance Documents, unless the non-payment: 
  

	 	(a)	is caused by technical or administrative error; and 

  

	 	(b)	is remedied within three (3) Business Days of the due date. 

  

 63 

	19.3	Breach of other obligations 

  

	 	(a)	The Borrower does not comply with any term of Clause 16 (General Covenants) or Clause 17 (Financial Covenants), unless the non-compliance: 

  

	 	(i)	is capable of remedy; and 

  

	 	(ii)	is remedied within thirty (30) days of the earlier of the Facility Agent giving notice to the Borrower and discovery (and for the purposes of this paragraph discovery
means actual awareness). 

 The Borrower acknowledges that for the purposes of paragraph (i) above, non-compliance with
the following shall not be capable of remedy: 
  

	 	(A)	Clause 16.10(a) and 16.10(b) (Security), but in respect of subparagraph (b) only insofar as it relates to the Mortgage, the Time Charter, and Earnings Assignment and the
Insurances Assignment; 

  

	 	(B)	Clause 16.12(a) (Registration of the Vessels); 

  

	 	(C)	the Obligatory Insurances being in full force and effect; and 

  

	 	(D)	Clause 17 (Financial Covenants), 

 provided always that,
in the case of (A) and (B) above, if the non-compliance is caused by technical or administrative error only, is corrected within three (3) Business Days of the earlier of the Facility Agent giving notice to the Borrower and discovery
(discovery having the same meaning as in Clause 19.3(a)(ii)), and, in the case of (C) above, if the non-compliance is caused by technical or administrative error only, is corrected within one (1) Business Day and in each case the
Facility Agent (acting on the good faith and reasonable instructions of the Majority Lenders) is satisfied that the Finance Parties have neither suffered nor will, in the future, suffer any material detriment (whether financial, to their security
position or otherwise howsoever) as a result of the non-compliance. 
  

	 	(b)	The Borrower fails to comply with the terms of Clause 6.2(b) or one of the events listed in Clause 6.5(a) occurs and the Borrower does not comply with the terms of Clause 6.5(b)
within the time periods specified in Clause 6.5. 

  

	 	(c)	Any Party (other than a Finance Party or the Account Bank) does not comply with any other term of the Finance Documents not already referred to in this Clause which the Facility
Agent (acting on the good faith and reasonable instructions of the Majority Lenders) considers to be material, unless the non-compliance: 

  

	 	(i)	is capable of remedy; and 

  

	 	(ii)	is remedied within fourteen (14) days of the earlier of the Facility Agent giving notice and discovery by the relevant Party (discovery having the same meaning as in
Clause 19.3(a)(ii)) of the non-compliance. 

  

	19.4	Misrepresentation 

 A representation made or
repeated by the Borrower (or by any other Party other than a Finance Party or the Account Bank) in any Finance Document or in any document delivered 

  

 64 

 
by or on behalf of the Borrower under any Finance Document is incorrect in any respect which the Facility Agent (acting on the good faith and reasonable
instructions of the Majority Lenders) considers to be material when made or deemed to be repeated, unless the circumstances giving rise to the misrepresentation: 
  

	 	(a)	are capable of remedy; and 

  

	 	(b)	are remedied within thirty (30) days of the earlier of the Facility Agent giving notice and the relevant Party becoming aware of the misrepresentation.

  

	19.5	Cross-default 

 Any of the following occurs in
respect of the Borrower: 
  

	 	(a)	any of its Financial Indebtedness is not paid when due (after the expiry of any originally applicable grace period); 

  

	 	(b)	any of its Financial Indebtedness: 

  

	 	(i)	becomes prematurely due and payable; or 

  

	 	(ii)	is placed on demand; or 

  

	 	(iii)	is capable of being declared by a creditor to be prematurely due and payable or being placed on demand, 

 in each case, as a result of an event of default (howsoever described) and after the expiry of any applicable grace period; or 
  

	 	(c)	any commitment for its Financial Indebtedness is cancelled or suspended as a result of an event of default (howsoever described), 

 unless the aggregate amount of Financial Indebtedness falling within paragraphs (a) to (c) above is less than US$25,000,000 or its equivalent .

  

	19.6	Insolvency 

 Any of the following occurs in respect
of the Borrower: 
  

	 	(a)	it is, or is deemed for the purposes of any Applicable Law to be, unable to pay its debts as they fall due or insolvent; 

  

	 	(b)	it admits its inability to pay its debts as they fall due; 

  

	 	(c)	it suspends making payments on any of its debts or announces an intention to do so; 

  

	 	(d)	by reason of actual or anticipated financial difficulties, it begins negotiations with any creditor for the rescheduling of any of its indebtedness; or 

  

	 	(e)	a moratorium is declared in respect of any of its indebtedness. 

 If a moratorium occurs in respect of the Borrower, the ending of the moratorium will not remedy any Event of Default caused by the moratorium. 
  

 65 

	19.7	Insolvency proceedings 

  

	 	(a)	Except as provided in paragraph (b) below, any of the following occurs in respect of the Borrower: 

  

	 	(i)	any step is taken with a view to a moratorium, a composition, assignment or similar arrangement with any of its creditors; 

  

	 	(ii)	a meeting of its shareholders, directors or other officers is convened for the purpose of considering any resolution to petition for or to file documents with a court for its
winding-up, administration or dissolution or any such resolution is passed; 

  

	 	(iii)	any person presents a petition, or files documents with a court for its winding-up, administration or dissolution; 

  

	 	(iv)	an order for its winding-up, administration or dissolution is made; 

  

	 	(v)	any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer is appointed in respect of it or
any of its assets; 

  

	 	(vi)	its directors, shareholders or other officers request the appointment of, or give notice of their intention to appoint a liquidator, trustee in bankruptcy, judicial custodian,
compulsory manager, receiver, administrative receiver, administrator or similar officer; or 

  

	 	(vii)	any other analogous step or procedure is taken in any jurisdiction. 

  

	 	(b)	Paragraph (a) above does not apply to a frivolous or vexatious petition for winding-up presented by a creditor which is being contested in good faith and with due diligence and
is discharged or struck out within fourteen (14) days. 

  

	19.8	Creditors’ process 

 Any attachment,
sequestration, distress, execution or analogous event affects any asset(s) of the Borrower, having an aggregate value of twenty five million Dollars (US$25,000,000) or its equivalent and is not discharged within thirty (30) days. 
  

	19.9	Cessation of business 

 The Borrower ceases, or
threatens to cease, to carry on business except as a result of any disposal not prohibited under this Agreement. 
  

	19.10	Failure to pay final judgment 

 The Borrower fails
to comply with or pay any sum due from it under any final judgment or any final order made or given by any court of competent jurisdiction. 
  

	19.11	Effectiveness of Finance Documents 

  

	 	(a)	It is or becomes unlawful for the Borrower or any other Party (other than a Finance Party or the Account Bank) to perform any of its material obligations under the Finance
Documents. 

  

 66 

	 	(b)	Any material provision of a Finance Document is not effective or is alleged by the Borrower to be ineffective for any reason. 

  

	 	(c)	Any material provision of a Finance Document is not effective or is alleged by any Party (other than a Finance Party, the Borrower or the Account Bank) to be ineffective for any
reason. 

  

	 	(d)	The Borrower repudiates any material provision of a Finance Document or evidences an intention to repudiate any material provision of a Finance Document. 

 

	 	(e)	Any Party (other than a Finance Party or the Account Bank) repudiates any material provision of a Finance Document or evidences an intention to repudiate any material provision of a
Finance Document. 

  

	19.12	Invalidity of Security Documents 

 Any of the
Security Documents ceases to be valid in any material respect or any of those Security Documents creating a Security Interest in favour of the Facility Agent ceases to provide a perfected first priority security interest in favour of the Facility
Agent. 
  

	19.13	Invalidity of KEXIM Guarantee 

 The KEXIM Guarantee
ceases to be valid in any material respect or KEXIM gives notice to the Facility Agent to determine its obligations thereunder as a result of any act or omission of the Borrower. 
  

	19.14	Acceleration 

 If an Event of Default is
outstanding, the Facility Agent, if the Majority Lenders so instruct it, shall by notice to the Borrower: 
  

	 	(a)	cancel the undrawn, uncancelled amount of the Maximum Facility Amount; and/or 

  

	 	(b)	declare that all or part of any amounts outstanding under the Finance Documents are: 

  

	 	(i)	immediately due and payable; and/or 

  

	 	(ii)	payable on demand by the Facility Agent. 

 Any notice given
under this Subclause will take effect in accordance with its terms. 
  

	20.	SECURITY 

  

	20.1	Facility Agent as trustee 

 Unless expressly
provided to the contrary herein or in any Finance Document and except as otherwise required by Applicable Law, the Facility Agent holds any security created by a Security Document on trust for the Finance Parties. 
  

	20.2	Responsibility 

 The Facility Agent is not liable or
responsible to any other Finance Party for: 
  

	 	(a)	any failure in perfecting or protecting the security created by any Security Document; or 

  

 67 

	 	(b)	any other action taken or not taken by it in connection with any Security Document, 

 unless directly caused by its gross negligence or wilful misconduct. 
  

	20.3	Title 

 The Facility Agent may accept, without
enquiry, the title (if any) the Borrower may have to any asset over which security is intended to be created by any Security Document. 
  

	20.4	Possession of documents 

 The Facility Agent shall,
in accordance with its usual practice, hold in its own possession any Security Document, title deed or other document in connection with any asset over which security is intended to be created by a Security Document. 
  

	20.5	Investments 

 Except as otherwise provided in any
Security Document, all moneys received by the Facility Agent under a Security Document will, until utilised, be invested in the name of, or under the control of, the Facility Agent in any investments selected by the Facility Agent (acting on the
instructions of the Majority Lenders). Additionally, those moneys may be placed on deposit in the name of, or under the control of, the Facility Agent at any bank or institution (including itself) and upon such terms as it may think fit. Any
interest or profit earned by the Facility Agent in connection with such investments shall be that of the Borrower and added to the Security Assets. 
  

	20.6	Approval 

 Each Finance Party confirms its approval
of each Security Document. 
  

	20.7	Release of security 

  

	 	(a)	If a disposal of any Security Asset is made to a third party in the following circumstances: 

  

	 	(i)	the Majority Lenders agree to the disposal; 

  

	 	(ii)	the disposal is allowed by the terms of the Finance Documents and will not result or could not reasonably be expected to result in any breach of any term of any Finance Document;

  

	 	(iii)	the disposal is being made at the request of the Facility Agent in circumstances where any security created by the Security Documents has become enforceable; or

  

	 	(iv)	the disposal is being effected by enforcement of a Security Document, 

 or a prepayment is made pursuant to Clauses 6.3 (Removal of a Vessel), 6.5 (Mandatory prepayment – Sale, Total Loss or non delivery of a Vessel) or 6.7 (Voluntary prepayment) and, in any such case, the
Facility Agent is satisfied that the relevant Loan will be prepaid in full in accordance with Clause 6.3 (Removal of a Vessel) or 6.5(a)(i) (Mandatory prepayment – Sale, Total Loss or non delivery of a Vessel) as applicable at the time of the
disposal or prepayment, the asset being disposed of or to which the prepayment relates will be released from any security over 

  

 68 

 
it created by a Security Document. However, the proceeds of any disposal or prepayment (or an amount corresponding to them) must be applied in accordance
with the requirements of the Finance Documents (if any). 
  

	 	(b)	Following the relevant Term Loan Final Maturity Date, if the Loans and any other sums due and payable under any Finance Document have been irrevocably and unconditionally repaid in
full to the satisfaction of the Finance Parties, then the relevant Mortgage and any other Security Interest shall be released. 

  

	 	(c)	If the Facility Agent is satisfied that a release is allowed under this Subclause, the Facility Agent must execute (at the request and expense of the Borrower) any document which is
reasonably required to achieve that release. Each other Finance Party irrevocably authorises the Facility Agent to execute any such document. 

  

	20.8	Co-security Agent 

  

	 	(a)	The Facility Agent may appoint a separate security agent or a co-security agent in any jurisdiction outside the United States: 

  

	 	(i)	if the Facility Agent considers that without the appointment the interests of the Lenders under the Finance Documents might be materially and adversely affected;

  

	 	(ii)	for the purpose of complying with any law, regulation or other condition in any jurisdiction; or 

  

	 	(iii)	for the purpose of obtaining or enforcing a judgment or enforcing any Finance Document in any jurisdiction. 

  

	 	(b)	Any appointment under this Subclause will only be effective if the security agent or co-security agent confirms to the Facility Agent and the Borrower in form and substance
satisfactory to the Facility Agent that it is bound by the terms of this Agreement as if it were the Facility Agent. 

  

	 	(c)	The Facility Agent may remove any security agent or co-security agent appointed by it and may appoint a new security agent or co-security agent in its place.

  

	 	(d)	The Borrower must pay to the Facility Agent any reasonable remuneration paid by the Facility Agent to any security agent or co-security agent appointed by it, together with any
related costs and expenses properly incurred by the security agent or co-security agent. 

  

	20.9	Parallel Debt 

 The Borrower hereby irrevocably and
unconditionally undertakes to pay to the Facility Agent amounts equal to any amounts owing by it to the relevant Finance Parties under the Finance Documents as and when the same fall due for payment thereunder, so that the Facility Agent shall be
the obligee of such covenant to pay and shall be entitled to claim performance thereof in its own name and not as agent acting on behalf of the relevant Finance Parties. The Borrower and the Facility Agent acknowledge that for this purpose such
obligations of the Borrower are several and are separate and independent from, and without prejudice to, the identical obligations which the Borrower has to the Finance Parties under the relevant Finance Documents, provided that this shall not, at
the same time, result in the Borrower incurring an aggregate obligation to any such Finance Parties under the Finance Documents. To this end 

  

 69 

 
and without prejudice to the foregoing, it is agreed that (i) the amounts due and payable by the Borrower under this Clause 20.9 (the Parallel
Debt) shall be decreased to the extent that the Borrower paid any amounts to the Finance Parties or any of them in respect of the Secured Liabilities and vice versa and (ii) the Parallel Debt shall not exceed the aggregate of the
corresponding obligations which the Borrower has to the Finance Parties under the Finance Documents. 
 Nothing in this Clause shall in any
way negate, affect or increase the obligations of the Borrower to any Finance Parties under the Finance Documents in respect of the Secured Liabilities. For the purpose of this Clause the Facility Agent acts in its own name and on behalf of itself
and not as agent or representative of any other party hereto and any security granted to the Facility Agent to secure the Parallel Debt is granted to the Facility Agent in its capacity as creditor of the Parallel Debt and solely for the purpose
referred to above. 
  

	20.10	Dutch Security 

 The Facility Agent shall obtain any
Security Interest provided under or pursuant to a Security Document governed by Dutch law (the Dutch Security) in its own name. 
 The
Facility Agent shall have full and unrestricted entitlement to and authority in respect of the Dutch Security, provided that it shall be under an obligation to exercise such rights (and perform such obligations) in accordance with the contractual
undertakings set out in any Finance Document. 
  

	21.	THE ADMINISTRATIVE PARTIES 

  

	21.1	Appointment and duties of the Facility Agent 

  

	 	(a)	Each Finance Party (other than the Facility Agent) irrevocably appoints the Facility Agent to act as its agent under the Finance Documents. 

  

	 	(b)	Each Finance Party irrevocably authorises the Facility Agent on its behalf to: 

  

	 	(i)	perform the duties and to exercise the rights, powers and discretions that are specifically given to it under the Finance Documents, together with any other incidental rights,
powers and discretions; and 

  

	 	(ii)	execute each Finance Document expressed to be executed by the Facility Agent on that Party’s behalf. 

  

	 	(c)	The Facility Agent has only those duties which are expressly specified in the Finance Documents. Those duties are solely of a mechanical and administrative nature.

  

	21.2	Role of the Arrangers 

 Except as specifically
provided in the Finance Documents, the Arrangers in their capacity as Arrangers have no obligations of any kind to any other Party in connection with any Finance Document. 
  

	21.3	No fiduciary duties 

 Except as specifically
provided in a Finance Document, nothing in the Finance Documents makes an Administrative Party a trustee or fiduciary for any other Party or any other person. No Administrative Party needs to hold in trust any moneys paid to it for a Party or be
liable to account for interest on those moneys. 
  

 70 

	21.4	Individual position of an Administrative Party 

  

	 	(a)	If it is also a Lender, each Administrative Party has the same rights and powers under the Finance Documents as any other Lender and may exercise those rights and powers as though
it were not an Administrative Party. 

  

	 	(b)	Each Administrative Party may: 

  

	 	(i)	carry on any business with the Borrower or its related entities (including acting as an agent or a trustee for any other financing); and 

  

	 	(ii)	retain any profits or remuneration it receives under the Finance Documents or in relation to any other business it carries on with the Borrower or its related entities.

  

	21.5	Reliance 

 The Facility Agent may: 
  

	 	(a)	rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 

  

	 	(b)	rely on any statement made by any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify; 

  

	 	(c)	engage, pay for and rely on professional advisors selected by it; and 

  

	 	(d)	act under the Finance Documents through its personnel and agents. 

  

	21.6	Majority Lenders’ instructions 

  

	 	(a)	The Facility Agent is fully protected if it acts on the instructions of the Majority Lenders in the exercise of any right, power or discretion or any matter not expressly provided
for in the Finance Documents. Any such instructions given by the Majority Lenders will be binding on all the Lenders. In the absence of instructions, unless the Finance Documents expressly provide that the Facility Agent acts on the instructions of
the Majority Lenders in exercising the relevant right, power or discretion, the Facility Agent may act as it considers to be in the best interests of all the Lenders. 

  

	 	(b)	Each Lender acknowledges and confirms that it shall act in a reasonable manner when reaching any decision as to the exercise or non-exercise of any right, power or discretion by the
Facility Agent. 

  

	 	(c)	The Facility Agent may assume that unless it has received notice to the contrary, any right, power, authority or discretion vested in any Party or the Majority Lenders has not been
exercised. 

  

	 	(d)	The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings in connection with any
Finance Document. 

  

 71 

	 	(e)	The Facility Agent may require the receipt of security satisfactory to it, whether by way of payment in advance or otherwise, against any liability or loss which it may incur in
complying with the instructions of the Majority Lenders. 

  

	21.7	Responsibility 

  

	 	(a)	No Administrative Party is responsible to any other Finance Party for the adequacy, accuracy or completeness of: 

  

	 	(i)	any Finance Document or any other document; or 

  

	 	(ii)	any statement or information (whether written or oral) made in or supplied in connection with any Finance Document. 

  

	 	(b)	Without affecting the responsibility of the Borrower for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms that it:

  

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial condition and
affairs of the Borrower and its related entities and the nature and extent of any recourse against any Party or its assets); and 

  

	 	(ii)	has not relied exclusively on any information provided to it by any Administrative Party in connection with any Finance Document. 

  

	21.8	Exclusion of liability 

  

	 	(a)	The Facility Agent is not liable or responsible to any other Finance Party for any action taken or not taken by it in connection with any Finance Document, unless directly caused by
its gross negligence or wilful misconduct. 

  

	 	(b)	No Party (other than the Facility Agent) may take any proceedings against any officer, employee or agent of the Facility Agent, in respect of any claim it might have against the
Facility Agent or in respect of any act or omission of any kind by that officer, employee or agent in connection with any Finance Document. Any officer, employee or agent of the Facility Agent may rely on this Subclause and enforce its terms under
the Contracts (Rights of Third Parties) Act 1999. 

  

	21.9	Default 

  

	 	(a)	The Facility Agent is not obliged to monitor or enquire whether a Default has occurred. The Facility Agent is not deemed to have knowledge of the occurrence of a Default.

  

	 	(b)	If the Facility Agent: 

  

	 	(i)	receives notice from a Party referring to this Agreement, describing a Default and stating that the event is a Default; or 

  

	 	(ii)	is aware of the non-payment of any principal or interest or any fee payable to a Lender under this Agreement, 

 it must promptly notify the Lenders. 
  

 72 

	21.10	Information 

  

	 	(a)	The Facility Agent must promptly forward to the person concerned the original or a copy of any document which is delivered to the Facility Agent by a Party for that person.

  

	 	(b)	Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it
forwards to another Party. 

  

	 	(c)	Except as provided above, the Facility Agent has no duty: 

  

	 	(i)	either initially or on a continuing basis to provide any Lender with any credit or other information concerning the risks arising under or in connection with the Finance Documents
(including any information relating to the financial condition or affairs of the Borrower or its related entities or the nature or extent of recourse against any Party or its assets) whether coming into its possession before, on or after the date of
this Agreement; or 

	 	(ii)	unless specifically requested to do so by a Lender in accordance with a Finance Document, to request any certificate or other document from the Borrower. 

 

	 	(d)	In acting as the Facility Agent, the agency division of the Facility Agent is treated as a separate entity from its other divisions and departments. Any information acquired by the
Facility Agent which, in its opinion, is acquired by it otherwise than in its capacity as the Facility Agent may be treated as confidential by the Facility Agent and will not be treated as information possessed by the Facility Agent in its capacity
as such. 

  

	 	(e)	The Borrower irrevocably authorises the Facility Agent to disclose to the other Finance Parties any information which, is received by it in its capacity as the Facility Agent.

  

	21.11	Indemnities 

  

	 	(a)	Without limiting the liability of the Borrower under the Finance Documents, each Lender must indemnify the Facility Agent for that Lender’s Pro Rata Share of any loss or
liability incurred by the Facility Agent in acting as the Facility Agent, except to the extent that the loss or liability is caused by the Facility Agent’s gross negligence or wilful misconduct. 

  

	 	(b)	The Facility Agent may deduct from any amount received by it for a Lender any amount due to the Facility Agent from that Lender under a Finance Document but unpaid.

  

	21.12	Compliance 

 Each Administrative Party may refrain
from doing anything (including disclosing any information) which might, based on the reasonable opinion of its legal counsel, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do anything
which, in its opinion, is necessary or desirable to comply with any law or regulation. 
  

 73 

	21.13	Resignation of the Facility Agent 

  

	 	(a)	The Facility Agent may resign by giving written notice to the Lenders and the Borrower, in which case the Majority Lenders shall appoint a successor facility agent of which the
Borrower approves, such approval not to be unreasonably withheld or delayed. 

  

	 	(b)	If no successor Facility Agent has been appointed under paragraph (a) above within thirty (30) days after notice of resignation was given, the Facility Agent may appoint a
successor Facility Agent. 

  

	 	(c)	The resignation of the Facility Agent and the appointment of any successor facility agent will both become effective only when the successor facility agent notifies all the Parties
that it accepts its appointment and confirms that it is satisfied that the rights under the Security Documents have been assigned or transferred to it. On giving the notification and confirmation, the successor facility agent will succeed to the
position of the Facility Agent and the term Facility Agent will mean the successor facility agent. 

  

	 	(d)	The retiring Facility Agent must, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility
Agent may reasonably request for the purposes of performing its functions as the Facility Agent under the Finance Documents. 

  

	 	(e)	Upon its resignation becoming effective, this Clause will continue to benefit the retiring Facility Agent in respect of any action taken or not taken by it in connection with the
Finance Documents while it was the Facility Agent and, subject to paragraph (d) above, it will have no further obligations in its capacity as Facility Agent under any Finance Document. 

  

	 	(f)	The Majority Lenders may, by notice to the Facility Agent require it to resign under paragraph (a) above. 

  

	21.14	Relationship with Lenders 

  

	 	(a)	The Facility Agent may treat each Lender as a Lender entitled to payments under this Agreement and as acting through its Facility Office(s) until it has received not less than five
(5) Business Days’ prior notice from that Lender to the contrary. 

  

	 	(b)	The Facility Agent may at any time, and must if requested to do so by the Majority Lenders, convene a meeting of the Lenders. 

  

	 	(c)	The Facility Agent must keep a register of all the Parties and supply any other Party with a copy of the register on request. The register will include each Lender’s Facility
Office(s) and contact details for the purposes of this Agreement. 

  

	21.15	Notice period 

 Where this Agreement specifies a
minimum period of notice to be given to the Facility Agent, the Facility Agent may, at its discretion, accept a shorter notice period. 
  

 74 

	21.16	Calculation and notification of Mandatory Cost 

  

	 	(a)	Each Lender shall, if it wishes to charge a Mandatory Cost in respect of a Loan, calculate such cost in accordance with Schedule 5 (calculation of Mandatory Cost) and inform the
Facility Agent of the amount thereof on or before 3:00 pm (London time) on the Rate Fixing Day for such Loan. 

  

	 	(b)	If a Lender fails to specify its cost under paragraph (a) above or notification thereof is received after the time mentioned in that paragraph, the Facility Agent will assume
that such Lender has not incurred any such cost and shall be under no obligation to make claim therefor on the Borrower. 

  

	 	(c)	No Mandatory Cost may be notified to the Facility Agent which is less than twenty base units of the currency of the Loan in respect of which such cost has been calculated.

  

	22.	EVIDENCE AND CALCULATIONS 

  

	22.1	Accounts 

 Accounts maintained by the Facility Agent
in connection with this Agreement are conclusive (save for manifest error) evidence of the matters to which they relate for the purpose of any litigation or arbitration proceedings. 
  

	22.2	Certificates and determinations 

 Any certification
or determination by the Facility Agent of a rate or amount under the Finance Documents will be, in the absence of manifest error, conclusive evidence of the matters to which it relates. 
  

	22.3	Calculations 

 Any interest or fee accruing under
this Agreement accrues from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or otherwise, depending on what the Facility Agent determines is market practice. 
  

	23.	FEES 

  

	23.1	Commitment fee 

 The Borrower must pay to the
Facility Agent for and on behalf of the Lenders, a commitment fee calculated at the rate of 0.30% per annum on the undrawn, uncancelled amount of the Loans together, throughout the Term Loan Availability Period or Revolving Credit Availability
Period, such commitment fee to accrue from day to day on the basis of a 360 day year and the actual number of days elapsed. The accrued commitment fee is payable on the last day of each Term which ends during the Term Loan Availability Period or
Revolving Credit Availability Period, on the last day of the Term Loan Availability Period or Revolving Credit Availability Period and, if cancelled in full, on the cancellation amount at the time the cancellation becomes effective. 
  

	23.2	Facility Agent’s fee 

 The Borrower must pay to
the Facility Agent an agency fee in the manner agreed in the Fee Letter between the Facility Agent and the Borrower. 
  

 75 

	23.3	Advisory fee 

 The Borrower must pay to the Facility
Agent an advisory fee in the manner agreed in the Fee Letter between the Facility Agent and the Borrower. 
  

	23.4	Arrangers’ fee 

 The Borrower must pay the
Facility Agent for distribution between the Arrangers an arrangers’ fee in the manner agreed in the Fee Letter between the Facility Agent and the Borrower. 
  

	23.5	KEXIM Guarantee fee 

 The Borrower must pay the
Facility Agent a fee calculated to reimburse the Facility Agent for any fee the Facility Agent is required to pay to KEXIM pursuant to the KEXIM Guarantee, in the manner agreed in the Fee Letter between the Facility Agent and the Borrower.

  

	23.6	Refund of fees 

 The fees referred to in this Clause
23 and the Fee Letter shall not be refunded under any circumstances whatsoever once they have been paid. 
  

	24.	INDEMNITIES AND BREAK COSTS 

  

	24.1	Currency indemnity 

  

	 	(a)	The Borrower shall, as an independent obligation and within three (3) Business Days of demand, indemnify each Finance Party against any cost, loss or liability which that
Finance Party incurs as a consequence of: 

  

	 	(i)	the Finance Party receiving an amount in respect of the Borrower’s liability under the Finance Documents; or 

  

	 	(ii)	that liability being converted into a claim, proof, judgment or order, 

 in a currency other than the currency in which the amount is expressed to be payable under the relevant Finance Document. 
  

	 	(b)	The Borrower waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable.

  

	24.2	Other indemnities 

  

	 	(a)	The Borrower shall, as an independent obligation and within three (3) Business Days of demand, indemnify each Finance Party against any cost, loss or liability which that
Finance Party incurs as a consequence of: 

  

	 	(i)	the occurrence of any Event of Default; 

  

	 	(ii)	any failure by the Borrower to pay any amount due under a Finance Document on its due date; 

  

 76 

	 	(iii)	(other than by reason of negligence or default by that Finance Party) a Loan (or part of a Loan) not being made after a Request has been delivered for that Loan; or

  

	 	(iv)	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment. 

 The liability of the Borrower in each case includes any cost, loss or expense on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance Document, any amount repaid or
prepaid or any Loan. 
  

	 	(b)	The Borrower must indemnify against any cost, loss or liability incurred by any Finance Party as a result of: 

  

	 	(i)	investigating any event which that Finance Party reasonably believes to be a Default; or 

  

	 	(ii)	acting or relying on any notice of the Borrower which that Finance Party reasonably believes to be genuine, correct and appropriately authorised. 

  

	 	(c)	The Borrower must indemnify and agree to hold harmless the Finance Parties and in each case, each of its and their (other than in the case of KEXIM) Affiliates 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 expenses and expenses (altogether 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 Finance Documents or the Related Contracts (or the transactions contemplated hereby or thereby) or any use made or proposed to be made with the proceeds of the Facility. This indemnity
shall apply whether or not such claims, investigation, litigation or proceeding is brought by the Borrower, the shareholders of the Borrower or the creditors of the Borrower, an Indemnified Party or any other person, or an Indemnified Party is
otherwise a party thereto, except to the extent 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.

  

	 	(d)	No Indemnified Party shall have any liability (whether direct or indirect, in contract, tort or otherwise) to the Borrower or any shareholders or creditors of the Borrower for or in
connection with the transactions referred to in paragraph (c) above, except for direct (as opposed to indirect or consequential) damages or losses to the extent such liability is 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. 

  

	 	(e)	The Borrower must indemnify and hold each Finance Party harmless on a full indemnity basis, from and against each and every Loss: 

  

	 	(i)	 arising directly or indirectly out of or in any way connected with the ownership, possession, performance, transportation, management, sale, import to or export
from any jurisdiction, control, use or operation, registration, navigation, certification, classification, management, manning, provisioning, the provision of bunkers and lubricating oils, testing, design, 

  

 77 

	 	 
condition, delivery, acceptance, leasing, subleasing, chartering, insurance, maintenance, repair, service, modification, refurbishment, dry docking, survey,
conversion, overhaul, replacement, removal, repossession, return, redelivery, storage, sale, disposal, the complete or partial removal, decommissioning, making safe, destruction, abandonment or loss by the Borrower or any other person of any of the
Vessels or caused by any of the Vessels becoming a wreck or an obstruction to navigation, whether or not such liability may be attributable to any defect in any of the Vessels or to the design, construction or use thereof or from any maintenance,
service, repair, dry docking, overhaul, inspection or for any other reason whatsoever (whether similar to any of the foregoing or not), and regardless of when the same shall arise and whether or not any of the Vessels (or any part thereof) is in
possession or control of the Borrower or the Manager or any other person and whether or not the same is in United Kingdom waters or abroad; 

  

	 	(ii)	arising directly or indirectly out of or in any way connected with any Release of Hazardous Material, any Environmental Claim, or any breach of an Environmental Law or the terms and
conditions of an Environmental Approval; 

  

	 	(iii)	as a consequence of any claim that any design, article or material in either of the Vessels or any part thereof or relating thereto or the operation or use thereof constitutes an
infringement of patent, copyright, design or other proprietary right; or 

  

	 	(iv)	in preventing or attempting to prevent the arrest, seizure, taking in execution, requisition, impounding, forfeiture or detention of any of either Vessels or in securing or
attempting to secure the release of either of the Vessels. 

  

	24.3	Break Costs 

  

	 	(a)	The Borrower must pay to each Lender or, as the case may be, each Swap Bank, its Break Costs in accordance with this Agreement. 

  

	 	(b)	In respect of a Lender other than a Tranche A Lender, Break Costs are the amount (if any) determined by the relevant Lender by which: 

  

	 	(i)	the interest which that Lender would have received for the period from the date of receipt of payment of a Loan or an overdue amount to the last day of the current Term for that
Loan or overdue amount if the principal or overdue amount received had been paid on the last day of that Term; 

 exceeds

  

	 	(ii)	the amount which that Lender would be able to obtain by placing an amount equal to the amount received by it on deposit with a leading bank in the appropriate interbank market for a
period starting on the Business Day following receipt and ending on the last day of the applicable Term. 

  

	 	(c)	In respect of a Swap Bank, Break Costs are the amount (if any) determined by that Swap Bank which would indemnify that Swap Bank against any loss or liability that it incurs as a
consequence of terminating all or any part of the swap or other hedging arrangements under the Swap Agreement. 

  

 78 

	 	(d)	Each Lender or, as the case may be, each Swap Bank, must supply to the Borrower details of the amount of any Break Costs claimed by it under this Clause. 

 

	25.	EXPENSES 

  

	25.1	Initial costs 

 The Borrower must pay to each
Finance Party the amount of all reasonable costs and expenses (including legal fees) incurred by it in connection with (but not limited to) the negotiation, preparation, printing and execution of the Finance Documents. 
  

	25.2	Subsequent costs 

 The Borrower must pay to each
Finance Party the amount of all reasonable costs and expenses (including legal fees) incurred by it in connection with: 
  

	 	(a)	the negotiation, preparation, printing and execution of any Finance Document (other than a Transfer Certificate) executed after the date of this Agreement; and

  

	 	(b)	any amendment, waiver or consent requested by or on behalf of the Borrower or specifically allowed by this Agreement. 

 The Borrower shall not be required to bear the amount of any costs and expenses (including legal fees) incurred by a Lender or a New Lender (as that term
is defined in Clause 28.2 (Assignments and transfers by Lenders)) in connection with any voluntary transfer made by a Lender under this Agreement or any of the Security Agreements. In the event that a Lender is required to undertake any such
transfers as a result of the provisions of Clause 11.4 (Mitigation) any costs of that Lender or a New Lender arising out of such transfer shall be payable by the Borrower. 
  

	25.3	Enforcement costs 

 The Borrower must pay to each
Finance Party the amount of all costs and expenses (including legal fees) incurred by it in connection with the enforcement or attempted enforcement of, or the preservation or attempted preservation of any rights under, any Finance Document.

  

	26.	WAIVER OF CONSEQUENTIAL DAMAGES 

 In no event shall
any Finance Party be liable on any theory of liability for any special, indirect, consequential or punitive damages and the Borrower hereby waives, releases and agrees (for itself and on behalf of its Subsidiaries) not to sue upon any such claim for
any such damages, unless caused by the fraud, wilful default or recklessness of the relevant Finance Party in performance of any of its obligations under this Agreement or any of the Finance Documents. 
  

	27.	AMENDMENTS AND WAIVERS 

  

	27.1	Procedure 

  

	 	(a)	Except as provided in this Clause 27, no term of the Finance Documents may be amended or waived without the agreement of the Borrower and the Majority Lenders. The Facility Agent
may effect, on behalf of any Finance Party, an amendment or waiver allowed under this Clause. 

  

 79 

	 	(b)	The Facility Agent must promptly notify the other Parties of any amendment or waiver effected by it under paragraph (a) above. Any such amendment or waiver is binding on all
the Parties. 

  

	27.2	Exceptions 

  

	 	(a)	An amendment or waiver which relates to: 

  

	 	(i)	the definition of Majority Lenders in Clause 1.1 (Definitions); 

  

	 	(ii)	the definition of either of Vessel 1 or Vessel 2 in Clause 1.1 (Definitions); 

  

	 	(iii)	an extension of the date of payment of any amount to a Lender under the Finance Documents; 

  

	 	(iv)	a reduction in the amount of any payment of principal, interest, fee or other amount payable to a Lender under the Finance Documents; 

  

	 	(v)	an increase in, or an extension of, a Commitment or the Total Commitments; 

  

	 	(vi)	a release of the Borrower; 

  

	 	(vii)	a term of a Finance Document which expressly requires the consent of each Lender; 

  

	 	(viii)	the right of a Lender to assign or transfer its rights or obligations under the Finance Documents; 

  

	 	(ix)	the release of security; or 

  

	 	(x)	this Clause, 

 may only be made with the consent of all
the Lenders and the Borrower such consent not to be unreasonably withheld or delayed. 
  

	 	(b)	An amendment or waiver which relates to a reduction in the Exposure Margin, the Pre-Delivery Tranche A Interest Rate or the Post-Delivery Tranche A Interest Rate may only be made
with the consent of all the Tranche A Lenders and the Borrower. 

  

	 	(c)	An amendment or waiver which relates to a reduction in the Pre-Delivery Tranche B Margin or Post-Delivery Tranche B Margin may only be made with the consent of all the Tranche B
Lenders and the Borrower. 

  

	 	(d)	An amendment or waiver which relates to a reduction in the Pre-Delivery Revolver Margin or the Post-Delivery Revolver Margin may only be made with the consent of all the Revolver
Lenders and the Borrower. 

  

	 	(e)	An amendment or waiver which relates to the rights or obligations of an Administrative Party may only be made with the consent of that Administrative Party, the Majority Lenders and
the Borrower. 

  

	27.3	Change of currency 

 If a change in any currency of
a country occurs (including where there is more than one currency or currency unit recognised at the same time as the lawful currency of a country), the 

  

 80 

 
Finance Documents will be amended to the extent the Facility Agent (acting reasonably and on the instructions of the Majority Lenders and after consultation
with the Borrower) determines is necessary to reflect the change. 
  

	27.4	Waivers and remedies cumulative 

 The rights of each
Finance Party under the Finance Documents: 
  

	 	(a)	may be exercised as often as necessary; 

  

	 	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(c)	may be waived only in writing and specifically. 

 Delay in
exercising or non-exercise of any right is not a waiver of that right. 
  

	28.	CHANGES TO THE PARTIES 

  

	28.1	Assignments and transfers by Borrower 

 The Borrower
may not assign or transfer any of its rights and obligations under the Finance Documents without the prior consent of all the Lenders. 
  

	28.2	Assignments and transfers by Lenders 

  

	 	(a)	A Lender (the Existing Lender) may, subject to the following provisions of this Subclause, at any time assign or transfer (including by way of novation) any of its rights and
obligations under this Agreement to another bank, financial institution or to a trust, fund or other entity which is regularly engaged or established for the purpose of making, purchasing or otherwise investing in loans, securities or other
financial assets (the New Lender), provided always that: 

  

	 	(i)	each assignment or transfer shall be uniform, and not a varying percentage of all rights and obligations under this Agreement; 

  

	 	(ii)	each assignment or transfer shall not result in increased liability to the Borrower; 

  

	 	(iii)	the Facility Agent shall provide to the Borrower details of the proposed new lenders at least seven (7) Business Days prior to the proposed transfer date and the Borrower shall
approve or object to the identity of any one or more of the proposed new lenders on such list (such approval not to be unreasonably withheld or delayed). The relevant Lender shall be entitled to effect a transfer or assignment to any proposed new
lender on such list to which the Borrower has not objected on reasonable grounds within such seven (7) Business Day period; 

  

	 	(iv)	at no time shall the number of Tranche A Lenders exceed six (6), Tranche B Lenders exceed six (6) or Revolver Lenders exceed two (2) unless the prior written consent of
the Borrower is obtained (such consent not to be unreasonably withheld); and 

  

	 	(v)	a transfer fee of three thousand Dollars (US$3,000) is paid by the new Lender to the Facility Agent. 

  

 81 

	 	(b)	An Existing Lender may at any time assign or transfer (including by way of novation) any of its rights and obligations under this Agreement: 

  

	 	(i)	(other than KEXIM) to an Affiliate of the Existing Lender; or 

  

	 	(ii)	following the occurrence and during the continuation of an Event of Default, 

 without the consent of the Borrower. 
  

	 	(c)	Unless the Borrower otherwise agrees (acting reasonably), a transfer of part of a Commitment or the rights and obligations under this Agreement by the Existing Lender must be in a
minimum amount of twenty five million Dollars (US$25,000,000) unless the Commitment of the Existing Lender is less than such amount in which case the whole of the Commitment of the Existing Lender may be transferred. 

  

	 	(d)	A transfer of obligations will be effective only if either: 

  

	 	(i)	the obligations are novated in accordance with the following provisions of this Clause 28; or 

  

	 	(ii)	the New Lender confirms to the Facility Agent and the Borrower in form and substance reasonably satisfactory to the Facility Agent and the Borrower that it is bound by the terms of
this Agreement. 

  

	 	(e)	On the transfer becoming effective in this manner, the relevant Lender will be released from its obligations under this Agreement to the extent that they are transferred to the New
Lender. 

  

	 	(f)	Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement. 

  

	28.3	Procedure for transfer by way of novations 

  

	 	(a)	In this Subclause: 

 Transfer Date means, for a
Transfer Certificate, the later of: 
  

	 	(i)	the proposed Transfer Date specified in that Transfer Certificate; and 

  

	 	(ii)	the date on which the Facility Agent executes that Transfer Certificate. 

  

	 	(b)	A novation is effected if: 

  

	 	(i)	the Existing Lender and the New Lender deliver to the Facility Agent a duly completed Transfer Certificate; and 

  

	 	(ii)	the Facility Agent executes it. 

  

	 	(c)	On the Transfer Date: 

  

	 	(i)	the New Lender will assume the rights and obligations of the Existing Lender expressed to be the subject of the novation in the Transfer Certificate in substitution for the Lender;
and 

  

 82 

	 	(ii)	the Existing Lender will be released from those obligations and cease to have those rights. 

  

	 	(d)	Each Party (other than the Existing Lender and the New Lender) irrevocably authorises the Facility Agent to execute any duly completed Transfer Certificate on its behalf.

  

	28.4	Limitation of responsibility of Existing Lender 

  

	 	(a)	Unless expressly agreed to the contrary, an Existing Lender is not responsible to a New Lender for: 

  

	 	(i)	the legality, validity, effectiveness, completeness, accuracy, adequacy or enforceability of any Finance Document or any other document; 

  

	 	(ii)	the financial condition of the Borrower; 

  

	 	(iii)	the performance and observance by the Borrower of its obligations under the Finance Documents or any other documents; or 

  

	 	(iv)	the accuracy of any statement or information (whether written or oral) made in or supplied in connection with any Finance Document, 

 and any representations or warranties implied by law are excluded. 
  

	 	(b)	Each New Lender confirms to the Existing Lender that it: 

  

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents (including the financial condition and
affairs of the Borrower and its related entities and the nature and extent of any recourse against any Party or its assets) in connection with its participation in this Agreement; and 

  

	 	(ii)	has not relied exclusively on any information supplied to it by the Existing Lender in connection with any Finance Document. 

  

	 	(c)	Nothing in any Finance Document requires an Existing Lender to: 

  

	 	(i)	accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause; or 

  

	 	(ii)	support any losses incurred by the New Lender by reason of the non-performance by the Borrower of its obligations under any Finance Document or otherwise. 

 

	28.5	Costs resulting from change of Lender or Facility Office 

 If: 
  

	 	(a)	a Lender assigns or transfers any of its rights and obligations under the Finance Documents or changes its Facility Office; and 

  

	 	(b)	as a result of circumstances existing at the date of assignment, transfer or change occurs, the Borrower would be obliged to pay a Tax Payment or an Increased Cost,

  

 83 

 then, unless the assignment, transfer or change is made by a Lender to mitigate any circumstances giving
rise to a Tax Payment, Increased Cost or a right to be prepaid and/or cancelled by reason of illegality, the Borrower need only pay that Tax Payment or Increased Cost to the same extent that it would have been obliged to if no assignment, transfer
or change had occurred. 
  

	28.6	Changes to the Reference Banks 

 If a Reference Bank
(or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Facility Agent must (in consultation with the Borrower) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

  

	29.	DISCLOSURE OF INFORMATION 

 Each Finance Party may
disclose such information as that Finance Party shall consider appropriate in respect of information supplied to it, by or on behalf of the Borrower, the Seaspan Group, the Charterer or the Finance Documents to: 
  

	 	(a)	in the case of KEXIM, any of its Subsidiaries and in the case of any other Finance Party, any of its Affiliates; or 

  

	 	(b)	any other person who has not been objected to by the Borrower pursuant to Clause 28.2(a)(iii) (Assignments and transfers by Lenders), to (or through) whom an Existing Lender assigns
or transfers (or may potentially assign or transfer) all or any of its rights and obligations under this Agreement or with (or through) whom a Lender enters into (or may potentially enter into) any sub-participation in relation to, or any other
transaction under which payments are to be made by reference to, this Agreement or the Borrower; or 

  

	 	(c)	any person to whom, and to the extent that, information is required to be disclosed by any Applicable Law; or 

  

	 	(d)	any other Finance Party; or 

  

	 	(e)	to its and the Borrower’ professional advisors, 

 PROVIDED ALWAYS that, in relation to paragraph (b) above, the person to whom the information is to be given has entered into a Confidentiality Undertaking. Except as provided in this Clause, a Lender may not disclose any information
about the Borrower, the Seaspan Group, the Charterer or the Finance Documents to any person. 
  

	30.	SET-OFF 

 A Finance Party may set off any matured
obligation owed to it by the Borrower under the Finance Documents against any obligation (whether or not matured) owed by that Finance Party to the Borrower, regardless of the place of payment, booking branch or currency of either obligation. If the
obligations are in different currencies, that Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 
  

 84 

	31.	PRO RATA SHARING 

  

	31.1	Redistribution 

 If any amount owing by the Borrower
under this Agreement to a Lender (the recovering Lender) is discharged by payment, set-off or any other manner other than through the Facility Agent under this Agreement (a recovery), then: 
  

	 	(a)	the recovering Lender must, within three (3) Business Days, supply details of the recovery to the Facility Agent; 

  

	 	(b)	the Facility Agent must calculate whether the recovery is in excess of the amount which the recovering Lender would have received if the recovery had been received by the Facility
Agent under this Agreement; and 

  

	 	(c)	the recovering Lender must pay to the Facility Agent an amount equal to such excess (the redistribution). 

  

	31.2	Effect of redistribution 

  

	 	(a)	The Facility Agent must treat a redistribution as if it were a payment by the Borrower under this Agreement and distribute it among the Lenders, other than the recovering Lender,
accordingly. 

  

	 	(b)	When the Facility Agent makes a distribution under paragraph (a) above, the recovering Lender will be subrogated to the rights of the Finance Parties which have shared in that
redistribution. 

  

	 	(c)	If and to the extent that the recovering Lender is not able to rely on any rights of subrogation under paragraph (b) above, the Borrower will owe the recovering Lender a debt
which is equal to the redistribution, immediately payable and of the type originally discharged. 

  

	 	(d)	If: 

  

	 	(i)	a recovering Lender must subsequently return a recovery, or an amount measured by reference to a recovery, to the Borrower; and 

  

	 	(ii)	the recovering Lender has paid a redistribution in relation to that recovery, 

 each Finance Party must reimburse the recovering Lender all or the appropriate portion of the redistribution paid to that Finance Party, together with interest for the period while it held the re-distribution. In this
event, the subrogation in paragraph (b) above will operate in reverse to the extent of the reimbursement. 
  

	31.3	Exceptions 

 Notwithstanding any other term of this
Clause, a recovering Lender need not pay a redistribution to the extent that: 
  

	 	(a)	it would not, after the payment, have a valid claim against the Borrower in the amount of the redistribution; or 

  

 85 

	 	(b)	it would be sharing with another Finance Party any amount which the recovering Lender has received or recovered as a result of legal or arbitration proceedings, where:

  

	 	(i)	the recovering Lender notified the Facility Agent of those proceedings; and 

  

	 	(ii)	the other Finance Party had an opportunity to participate in those proceedings but did not do so or did not take separate legal or arbitration proceedings as soon as reasonably
practicable after receiving notice of them. 

  

	32.	SEVERABILITY 

 If a term of a Finance Document is or
becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect: 
  

	 	(a)	the legality, validity or enforceability in that jurisdiction of any other term of the Finance Documents; or 

  

	 	(b)	the legality, validity or enforceability in other jurisdictions of that or any other term of the Finance Documents. 

  

	33.	COUNTERPARTS 

 Each Finance Document may be executed
in any number of counterparts and by facsimile provided that original signed copies are provided within a reasonable period of time thereafter. This has the same effect as if the signatures on the counterparts were on a single copy of the Finance
Document. 
  

	34.	NOTICES 

  

	34.1	In writing 

  

	 	(a)	Any communication in connection with a Finance Document must be in writing and, unless otherwise stated, may be given in person, by post, fax, e-mail or by any other electronic
communication approved by the Facility Agent. 

  

	 	(b)	For the purpose of the Finance Documents, an electronic communication will be treated as being in writing. 

  

	 	(c)	Unless it is agreed to the contrary, any consent or agreement required under a Finance Document must be given in writing. 

  

	 	(d)	Communications sent by the Facility Agent in the normal course of business will not be signed. 

  

	34.2	Contact details 

  

	 	(a)	Except as provided below, the contact details of each Party for all communications in connection with the Finance Documents are those notified by that Party for this purpose to the
Facility Agent on or before the date it becomes a Party. 

  

	 	(b)	The contact details of the Borrower for this purpose are: 

  

			
	Address:	  	Unit 2, 7th Floor, Bupa Centre, 141 Connaught Road West, Hong Kong,
F40000
	Fax number:	  	(852) 254 01689
	Attention:	  	Sai Chu, Chief Financial Officer

  

 86 

 with a copy to Seaspan Ship Management Ltd. of: 
  

			
	Address:	  	2600-200 Granville Street, Vancouver, B.C., Canada V6C 1S4
	Fax number:	  	604-331-0925
	Attention:	  	Gerry Wang, Chief Executive Officer

  

	 	(c)	The contact details of the Facility Agent for this purpose are: 

  

			
	Address:	  	520 Madison Avenue, New York, NY 10022
	Fax number:	  	212 340 5450
	Attention:	  	Agency Group

  

	 	(d)	The contact details of the Swap Agent for this purpose are: 

  

			
	Address:	  	520 Madison Avenue, New York, NY 10022
	Fax number:	  	212 418 8700
	Attention:	  	Ed Kim

  

	 	(e)	A Party may change its contact details by giving five (5) Business Days’ notice to the Facility Agent or (in the case of the Facility Agent) to the other Parties.

  

	 	(f)	Where a Party nominates a particular department or officer to receive a communication, a communication will not be effective if it fails to specify that department or officer.

  

	34.3	Effectiveness 

  

	 	(a)	Except as provided below, any communication in connection with a Finance Document will be deemed to be given as follows: 

  

	 	(i)	if delivered in person, at the time of delivery; 

  

	 	(ii)	if posted, ten (10) days after being deposited in the post, postage prepaid, in a correctly addressed envelope; 

  

	 	(iii)	if by fax, when received in legible form; and 

  

	 	(iv)	if by e-mail or any other electronic communication, when received in legible form. 

  

	 	(b)	A communication given under paragraph (a) above but received on a non-working day or after business hours in the place of receipt will only be deemed to be given on the next
working day in that place. 

  

	 	(c)	A communication to the Facility Agent will only be effective on actual receipt by it. 

  

	34.4	Borrower 

 All communications under the Finance
Documents to or from the Borrower must be sent through the Facility Agent or with a copy to the Facility Agent. 
  

 87 

	34.5	Entire Agreement 

 This Agreement and the other
Finance Documents entered into pursuant to this Agreement contain the whole agreement between the parties relating to the transactions contemplated by this Agreement and supersede all previous agreements between the parties relating to such
transactions. 
  

	35.	LANGUAGE 

  

	 	(a)	Any notice given in connection with a Finance Document must be in English. 

  

	 	(b)	Any other document provided in connection with a Finance Document must be: 

  

	 	(i)	in English; or 

  

	 	(ii)	(unless the Facility Agent otherwise agrees) accompanied by a certified English translation. In this case, the English translation prevails unless the document is a statutory or
other official document. 

  

	36.	GOVERNING LAW 

 This Agreement is governed by
English law. 
  

	37.	ENFORCEMENT 

  

	37.1	Jurisdiction 

  

	 	(a)	The English courts have jurisdiction to settle any dispute in connection with any Finance Document. 

  

	 	(b)	The English courts are the most appropriate and convenient courts to settle any such dispute. 

  

	 	(c)	This Clause is for the benefit of the Lenders only. To the extent allowed by law, the Lenders may take: 

  

	 	(i)	proceedings in any other court; and 

  

	 	(ii)	concurrent proceedings in any number of jurisdictions. 

  

	37.2	Service of process 

  

	 	(a)	The Borrower irrevocably appoints Clifford Chance Secretaries Limited of 10 Upper Bank Street, London, E14 5JJ as its agent under the Finance Documents for service of process in any
proceedings before the English courts. 

  

	 	(b)	If any person appointed as process agent is unable for any reason to act as agent for service of process, the Borrower must immediately appoint another agent on terms acceptable to
the Facility Agent. Failing this, the Facility Agent may appoint another agent for this purpose. 

  

	 	(c)	The Borrower agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings. 

  

	 	(d)	This Clause does not affect any other method of service allowed by law. 

  

 88 

	37.3	Waiver of immunity 

 The Borrower irrevocably and
unconditionally: 
  

	 	(a)	agrees not to claim any immunity from proceedings brought by a Finance Party against it in relation to a Finance Document and to ensure that no such claim is made on its behalf;

  

	 	(b)	consents generally to the giving of any relief or the issue of any process in connection with those proceedings; and 

  

	 	(c)	waives all rights of immunity in respect of it or its assets. 

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

 89 

 SCHEDULE 1 
 ORIGINAL LENDERS 
 Pre-Delivery Period 
  

								
	 Name of Original Lender
	    	Tranche A
Commitments
(US$)	    	Tranche B
Commitments
(US$)	    	Revolving Credit
Commitments
(US$)	 
	 Fortis Capital Corp
 520 Madison Avenue
 New York
 NY 10022
	    		    	19,076,736	    	9,935,800 (Junior Revolver
 15,897,280
 (Senior Revolver
	  )
  
 )

				
	 The Export-Import Bank of Korea
 16-1 Yoido-dong
 Youngdeungpo-Gu
 Seoul 150-996
 Korea
	    	89,024,768	    		    		
				
	 Swedbank AB (publ)
 Brunkebergstorg 8
 SE-105 34 Stockholm
 Sweden
	    		    	19,076,736	    	9,935,800 (Junior Revolver
 15,897,280
 (Senior Revolver
	  )
  
 )

	
	Post-Delivery Period	 
				
	 Name of Original Lender
	    	Tranche A
Commitments
(US$)	    	Tranche B
Commitments
(US$)	    	Revolving Credit
Commitments
(US$)	 
	 Fortis Capital Corp
 520 Madison Avenue
 New York
 NY 10022
	    		    	34,944,000	    	29,120,000	 
				
	 The Export-Import Bank of Korea
 16-1 Yoido-dong
 Youngdeungpo-Gu
 Seoul 150-996
 Korea
	    	163,072,000	    		    		
				
	 Swedbank AB (publ)
 Brunkebergstorg 8
 SE-105 34 Stockholm
 Sweden
	    		    	34,944,000	    	29,120,000	 

  

 90 

 SCHEDULE 2 
 PART 1 
 INITIAL CONDITION PRECEDENT DOCUMENTS 
  

	1.	Borrower 

  

	(a)	A certified copy* of the constitutional documents of the Borrower or, if the Facility Agent already has a copy, a certificate of the Borrower certifying that the copy in the
Facility Agent’s possession is still correct, complete and in full force and effect as at a date no earlier than the date of the Request together with an up to date Certificate of Goodstanding dated no more than ten (10) Business Days
prior to the first Utilisation Date. 

  

	(b)	A certified copy* of a resolution of the board of directors of the Borrower (unless such resolution in relation to the issues below is still in full force and effect):

  

	 	(i)	approving the terms of, and the transactions contemplated by, each Finance Document and each Related Contract to which the Borrower is a party and resolving that it executes each
such Finance Document and each Related Contract, then to be executed; 

  

	 	(ii)	authorising a specified person or persons to execute each Finance Document and each Related Contract on its behalf to which it is a party, then to be executed; and

  

	 	(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices to be signed and/or despatched by it under or in connection with
each Finance Document and each Related Contract to which it is a party, then to be executed. 

  

	(c)	A specimen of the signature of each person authorised by the resolution referred to in paragraph 1(b) above. 

  

	(d)	A certified copy* of all other resolutions, consents, licences, exemptions and filings, corporate, official or otherwise which the Lender may reasonably require in connection with
this Agreement or any other Finance Document. 

  

	2.	Finance Documents and Related Contracts 

  

	(a)	A duly executed original of this Agreement. 

  

	(b)	A duly executed original of each relevant Pre-delivery Assignment. 

  

	(c)	A duly executed original of each Time Charter and Earnings Assignment. 

  

	(d)	A duly executed original of the Retention Account Charge. 

  

	(e)	A duly executed original of the Fee Letter. 

  

	(f)	A duly executed original of the relevant Management Agreement Assignment. 

  

	(g)	A duly executed original of each of the Manager’s Undertakings. 

  

	(h)	A certified copy* of the Management Agreement, duly executed. 

  

 91 

	(i)	A certified copy* of each Time Charter duly executed. 

  

	(j)	A certified copy* of each Shipbuilding Contract, duly executed. 

  

	(k)	A certified copy* of each Refund Guarantee. 

  

	(l)	Duly executed originals of all notices of assignment required to be served under each Security Document referred to above and faxed copies of the acknowledgements (except in the
case of the Time Charterer, Builder and Refund Guarantor) thereof (where it is not possible to provide originals of the same, with such originals to follow as soon as practicable after the first Utilisation Date, but, in any event, within ninety
(90) days of such date), duly executed by each relevant counterparty. 

  

	(m)	A duly executed original of the KEXIM Guarantee. 

  

	(n)	A duly executed original of the Swap Agreement. 

  

	3.	Other documents 

  

	(a)	A copy of any other authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary or desirable in connection with the entry into and
performance of, and the transactions contemplated by, any Finance Document or any Related Contract or for the validity and enforceability of any Finance Document or any Related Contract. 

  

	(b)	A letter from Clifford Chance Secretaries Limited agreeing to its appointment as process agent for the Borrower under the Finance Documents. 

  

	4.	Legal opinions 

  

	(a)	A legal opinion of Stephenson Harwood, English legal advisors to the Lenders, addressed to the Facility Agent as agent for and on behalf of itself and the Lenders.

  

	(b)	A legal opinion of Poles, Tublin, Stratakis, Gonzalez & Weichert, LLP, Marshall Island legal advisors to the Facility Agent, addressed to the Facility Agent as agent for
and on behalf of itself and the Lenders. 

  

	(c)	A legal opinion of NautaDutilh N.V., Dutch legal advisors to the Lenders, addressed to the Facility Agent as agent for and on behalf of itself and the Lenders.

  

	5.	Other Requirements 

  

	(a)	All fees due and payable under the Fee Letter have been paid or will be paid in accordance with the terms of the Fee Letter. 

  

	(b)	Confirmation from Stephenson Harwood that the prescribed particulars of the Security Documents received by the Facility Agent pursuant to paragraph 2 above will be delivered to the
registrar of companies or equivalent in Hong Kong and England and Wales within the statutory time frame 

  

	*	Each certified copy document must be certified by a director, officer or duly authorised attorney of the Borrower as being true and complete as at a date no earlier than the date of
the Request for a Loan. 

  

 92 

 SCHEDULE 2 
 PART 2 
 DELIVERY DATE CONDITIONS PRECEDENT DOCUMENTS 
 At the time of delivery of each Vessel, the Facility Agent shall require the following documentation from the Borrower:- 
  

	1.	Borrower 

  

	(a)	A certificate of the Borrower certifying that the constitutional documents have not been amended since they were first delivered to the Facility Agent. 

  

	(b)	A certified copy of a resolution of the board of directors of the Borrower (unless such a resolution in relation to the issues below is still in force): 

  

	 	(i)	authorising a specified person or persons to execute the relevant Mortgage and the relevant Insurance Assignment and authorising a specified person or persons to execute such
necessary documentation as is required to permit the Borrower to take physical possession of the relevant Vessel; and 

  

	 	(ii)	authorising a specified person or persons, on its behalf, to sign or despatch all other documents and notices to be signed or despatched by it under or in connection with the
relevant Mortgage and authorising a specified person or persons, on its behalf, to sign or despatch all other documents and notices to be signed or despatched as necessary to take physical possession of the relevant Vessel. 

 

	(c)	A specimen of the signature of each person authorised by the resolution referred to in paragraphs (b) (i) and (ii) above. 

  

	2.	Documents 

  

	(a)	A duly executed original of the relevant Mortgage; 

  

	(b)	A duly executed original of the relevant Deed of Covenants; 

  

	(c)	A duly executed original of the relevant Insurances Assignment; 

  

	(d)	A copy of any other authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary or desirable in connection with the entry into and
performance of, and the transactions contemplated by, the Security Documents or for the validity and enforceability of any of those documents. 

  

	(e)	A duly executed original of the Swap Agreement. 

  

	3.	The Vessel to be delivered 

  

	(a)	A certified copy* of: 

  

	 	(i)	a classification certificate in respect of the Vessel showing the Vessel to be in class without recommendation, condition or qualification or, in the event that this is not
available, a faxed copy with a certified copy to follow as soon as practicable after the relevant Delivery Date; 

  

 93 

	 	(ii)	a valid Interim Safety Management Certificate for the Vessel; 

  

	 	(iii)	a valid Document of Compliance; and 

  

	 	(iv)	a valid International Ship Security Certificate for the Vessel. 

  

	(b)	Evidence acceptable to the Facility Agent that the Vessel has been delivered to the Borrower under the relevant Shipbuilding Contract on the Delivery Date and title (as described in
paragraph 1(a)(ii) of Schedule 3) to the Vessel will pass to the Borrower. 

  

	4.	Insurance 

  

	(a)	A certified copy of all current insurance policies in respect of the Vessel. 

  

	(b)	A duly executed and, where necessary, notarised notice of assignment (and acknowledgement of the same) of the Obligatory Insurances in respect of the Vessel duly executed by the
Borrower substantially in the form provided for in the Insurances Assignment. 

  

	(c)	Fax confirmation from each broker, insurer and club concerned with the Obligatory Insurances of the Vessel that: 

  

	 	(i)	the relevant cover is in effect; 

  

	 	(ii)	they will accept notice of assignment of the Obligatory Insurances in favour of the Facility Agent and execute an acknowledgement of the notice in the form required by the Facility
Agent; 

  

	 	(iii)	they will restrict their lien for unpaid premiums under any fleet policy to unpaid premiums in respect of that Vessel only; 

  

	 	(iv)	they will issue a letter of undertaking in the current LIBA form (in the case of Lloyds brokers), in the form provided for in the Insurances Assignment (in the case of non-Lloyds
brokers and insurers other than clubs) or in their current standard form (in the case of clubs); 

  

	 	(v)	they will accept endorsement of a loss payable clause on the policies in the form provided for in the Insurances Assignment (in the case of brokers and insurers other than clubs) or
will note the interest of the Facility Agent in the entry for the Vessel by way of a loss payable clause in their current standard form (in the case of clubs); and 

  

	 	(vi)	they are not aware of any mortgage, charge, assignment or other encumbrance affecting the Obligatory Insurances with which they are concerned (other than any previously disclosed by
the Borrower to the Facility Agent in writing). 

  

	(d)	A final insurance report prepared by the Facility Agent, acceptable to the Lenders. 

  

	5.	Legal Opinions 

  

	(a)	A legal opinion of Stephenson Harwood, English legal advisers to the Lenders, addressed the Facility Agent as agent for and on behalf of itself and the Lenders.

  

	(b)	A legal opinion of Stephenson Harwood & Lo, Hong Kong legal advisers to the Lenders, addressed to the Facility Agent as agent for and on behalf of itself and the Lenders.

  

 94 

	6.	Other Requirements 

  

	(a)	Confirmation from Stephenson Harwood that the prescribed particulars of the Security Documents received by the Facility Agent pursuant to paragraph 2 above will be delivered to the
registrar of companies or equivalent in Hong Kong and England and Wales within the statutory time frame 

  

	*	Each certified copy document must be certified by a director, officer or duly authorised attorney of the Borrower as being true and complete as at a date no earlier than the
Delivery Date of a Vessel. 

  

 95 

 SCHEDULE 3 
 CONDITIONS SUBSEQUENT TO DELIVERY DATE 
 The Facility Agent shall require the following documentation and evidence
from the Borrower, in respect of a Vessel at the time provided for in Clause 3.1 (d). 
  

	1.	Evidence 

  

	(a)	Evidence that:- 

  

	 	(i)	the Mortgage in respect of the Vessel has been duly recorded in the Hong Kong Shipping Register and constitutes a first priority security interest over the Vessel and that all taxes
and fees payable to the Hong Kong Shipping Register in respect of that Vessel have been paid in full; 

  

	 	(ii)	the title to the Vessel is held by the Borrower free of all Security Interests other than Permitted Liens; and 

  

	 	(iii)	the Vessel is provisionally registered in the name of the Borrower, as appropriate, as a Hong Kong flag ship at the port of Hong Kong. 

  

	(b)	Confirmation acceptable to the Facility Agent that the Borrower has accepted the Vessel pursuant to the terms of the relevant Shipbuilding Contract and executed a protocol of
delivery and acceptance. 

  

	(c)	Confirmation acceptable to the Facility Agent from the Borrower that the relevant Charterer has accepted the Vessel pursuant to the terms of the relevant Time Charter.

  

	(d)	A copy of the commercial invoice in respect of the Vessel. 

  

	(e)	A copy of the builder’s certificate in respect of the Vessel. 

  

	(f)	Evidence that the prescribed particulars of the Security Documents received by the Facility Agent pursuant to Part 2 of Schedule 2 have been delivered to the registrar of companies
or equivalent in Hong Kong and England and Wales within the statutory time frame. 

  

 96 

 SCHEDULE 4 
 FORM OF PAYMENT REQUEST 
  

			
	To:	 	FORTIS BANK S.A./N.V., NEW YORK BRANCH
		
	From:	 	Seaspan Corporation
		
	Date:	 	[                     ]

 US$291,200,000 Credit Agreement dated
                     2008 (the Credit Agreement) 
  

							
	1.	  	We wish to borrow a Loan from you as follows:
				
		  	(a)	  	Utilisation Date:	  	[            ]
				
		  	(b)	  	Amount/currency:	  	[            ]
				
		  	(c)	  	Vessel:	  	[            ]
				
	2.	  	Term:	  		  	[        ] months
		
	3.	  	Payment Instructions:
			
		  	To include provisions that:	  	
		
	4.	  	We confirm that each condition specified in Clause 3.2 (Further conditions precedent) of the Credit Agreement is satisfied on the date of this Request.
		
	5.	  	We confirm that evidence of [costs / payments] to which the Loan relates is attached to this Request.

  

	
	 By:

	
	  

	SEASPAN CORPORATION
	
	 Authorised Signatory

  

 97 

 SCHEDULE 5 
 CALCULATION OF THE MANDATORY COST 
  

	1	General 

 The Mandatory Cost is the weighted average
of the rates calculated below by the Facility Agent on the first day of a Term. The Facility Agent must distribute each amount of Mandatory Cost among the Lenders on the basis of the rate for each Lender. 
  

	2	For a Lender lending from a Facility Office in the U.K. 

  

	(d)	The relevant rate for a Lender lending from a Facility Office in the U.K. is the arithmetic mean of the rates notified by each of the Reference Banks to the Facility Agent and
calculated in accordance with the following formulae: 

  

			
	 E x 0.01
	 	per cent. per annum
	300	 	

 where on the day of application of the formula: 
  

	 	E	is the charge payable by the Reference Bank to the Financial Services Authority under the fees rules (but, for this purpose, calculated by the Facility Agent on a notional basis as
being the average of the fee tariffs within fee-block Category A1 (Deposit acceptors) of the fees rules, applying any applicable discount and ignoring any minimum fee required under the fees rules) and expressed in pounds per £1 million
of the tariff base of that Reference Bank. 

  

	(e)	For the purposes of this paragraph: 

  

	 	(i)	eligible liabilities and special deposit have the meanings given to them at the time of application of the formula by the Bank of England; 

  

	 	(ii)	fees rules means the then current rules on periodic fees in the Supervision Manual of the FSA Handbook; and 

  

	 	(iii)	tariff base has the meaning given to it in the fees rules. 

  

	(f)	Each rate calculated in accordance with a formula is, if necessary, rounded upward to four decimal places. 

  

	(g)	(i) Each Reference Bank must supply to the Facility Agent the information required by it to make a calculation of the rate for that Reference Bank. The Facility Agent may assume
that this information is correct in all respects. 

  

	 	(i)	If a Reference Bank fails to do so, the Facility Agent may assume that the Reference Bank’s obligations in respect of cash ratio deposits, special deposits and the fees rules
are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office. 

  

	 	(ii)	The Facility Agent has no liability to any Party if its calculation over or under compensates any Lender. 

  

 98 

	3	For a Lender lending from a Facility Office in a Participating Member State 

  

	(a)	The relevant rate for a Lender lending from a Facility Office in a Participating Member State is the percentage rate per annum notified by that Lender to the Facility Agent as its
cost of complying with the minimum reserve requirements of the European Central Bank. 

  

	(b)	If a Lender fails to specify a rate under paragraph (a) above, the Facility Agent will assume that the Lender has not incurred any such cost. 

  

	4	Changes 

 The Facility Agent may, after consultation
with the Borrower and the Lenders, notify all the Parties of any amendment to this Schedule which is required to reflect: 
  

	 	(i)	any change in law or regulation; or 

  

	 	(ii)	any requirement imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any successor authority). 

Any notification will be, in the absence of manifest error, conclusive and binding on all the Parties. 
  

 99 

 SCHEDULE 6 
 FORM OF TRANSFER CERTIFICATE 
  

			
	To:	  	Seaspan Corporation
		
	From:	  	[THE EXISTING BANK] and [THE NEW BANK]
		
	Date:	  	[                    ]

 US$291,200,000 Credit Agreement dated
                    , 2008 (the Credit Agreement) 
 We refer to Clause 28.3 (Procedure for transfer by way of novations) of the Credit Agreement. 
  

	1.	We [            ] (the Existing Bank) and
[            ] (the New Bank) agree to the Existing Bank and the New Bank novating all the Existing Bank’s rights and obligations referred to in the Schedule in accordance with
Clause 28.3. (Procedure for transfer by way of novations). 

  

	2.	The specified date for the purposes of Clause 28.3(a) (Procedure for transfer by way of novations) is [date of novation]. 

  

	3.	The Facility Office and address for notices of the New Bank for the purposes of Clause 34.2 (Contact details) are set out in the Schedule attached to this Certificate.

  

	4.	This Novation Certificate is governed by English law. 

  

 100 

 THE SCHEDULE 
 Rights and obligations to be novated 
 [Choose one of the following options (a) or (b):] 
  

	(a)	all of the rights and obligations of the Existing Lender in respect of the Facility – principal amount US$[        ].

  

	(b)	the principal amount of US$[        ] in respect of each of the Loans and all the rights and obligations attached to the same-total principal
amount US$[        ]. 

 [New Bank] 
 [Facility Office Address for notices] 
  

			
	[Existing Bank]	 	[New Bank]
		
	By:	 	By:
		
	Date:	 	Date:

 The Transfer Date is confirmed by the Facility Agent as [        ].

 FORTIS BANK S.A./N.V., NEW YORK BRANCH 
 By: 
  

 101 

 SCHEDULE 7 
 REPAYMENT SCHEDULE 
 Repayment Schedule per Tranche 
  

											
	  	 	 Payment Number
	    	SR.
TRANCHE A	    	SR.
TRANCHE B	    	Revolver	    	 
		 	   1
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   2
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   3
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   4
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   5
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   6
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   7
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   8
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	   9
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 10
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 11
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 12
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 13
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 14
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 15
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 16
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 17
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 18
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 19
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 20
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 21
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 22
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 23
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 24
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 25
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 26
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 27
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 28
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 29
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 30
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 31
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 32
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 33
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 34
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 35
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 36
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 37
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 38
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 39
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 40
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 41
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 42
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 43
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 44
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 45
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 46
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 47
	    	1,698,666.67	    	728,000.00	    	—  	    	
		 	 48
	    	1,698,666.67	    	728,000.00	    	29,120,000.00	    	

  

 102 

 SCHEDULE 8 
 COMPLIANCE CERTIFICATE 
  

			
	To:	  	FORTIS BANK S.A./N.V., NEW YORK BRANCH as Facility Agent
		
	From:	  	Seaspan Corporation

 US$291,200,000 Credit Agreement dated             
, 2008 (the Credit Agreement) 
  

	2.	Terms defined in the Credit Agreement have the same meaning in this Certificate. 

  

	3.	I/We hereby certify that as of [ ] the status of the financial covenants set out in Clause 17 (Financial Covenants) of the Credit Agreement are as follows: 

 

	(b)	Tangible Net Worth: the Tangible Net Worth of the Borrower is not less than four hundred and fifty million Dollars (US$450,000,000). 

  

	(c)	Gearing: the Total Borrowings do not exceed 65 per cent. of Total Assets. 

  

	(d)	Minimum Liquidity: if the circumstances set out in Clause 17.5 have occurred, the Cash and Cash Equivalents of the Borrower are not less than twenty five million Dollars
(US$25,000,000). 

  

	(e)	Net Interest Coverage Ratio: the Interest Coverage Ratio is greater than 2.50 to 1. 

  

	(f)	Interest and Principal Coverage Ratio: the Interest and Principal Coverage Ratio is not less than 1.1 to 1. 

  

	(g)	the aggregate Market Value of the Vessels is not less than 125 per cent. of the aggregate principal amount of the outstanding Loans* 

  

	*	delete if circumstances in Clause 17.8 of the Credit Agreement have not occurred 

  

	
	[            ]
	Yours faithfully,
	
	[                                      
  ]
	
	Chief Executive Officer
	
	[or]
	
	                        
                
	
	Chief Financial Officer

  

 103 

 SCHEDULE 9 
 ANNUAL COMPLIANCE CERTIFICATE 
  

			
	To:	  	FORTIS BANK S.A./N.V., NEW YORK BRANCH as Facility Agent
		
	From:	  	Seaspan Corporation

 US$291,200,000 Credit Agreement dated
                 , 2008 (the Credit Agreement) 
 Terms
defined in the Credit Agreement have the same meaning in this Certificate. 
  

	1.	I/We hereby certify that [no Default has occurred and is continuing or is outstanding] [a Default under Clause [        ] of
[specify document] is outstanding and the following steps are being taken to remedy it [            ]. 

  

	2.	[Except as set out below, the representations set out in Clause 14 (Representations) of the Credit Agreement are deemed to be repeated as at the date hereof.]

  

	3.	I/We hereby attach a list of the estimated dates of the intended dry docking of the Vessels actually delivered on or before the date of this Certificate. 

 

	4.	I/We hereby certify that as of [    ] the status of the financial covenants set out in Clause 17 (Financial Covenants) of the Credit Agreement are as follows:

  

	(a)	Tangible Net Worth: the Tangible Net Worth of the Borrower is not less than four hundred and fifty million Dollars (US$450,000,000). 

  

	(b)	Gearing: the Total Borrowings do not exceed 65 per cent. of Total Assets. 

  

	(c)	Minimum Liquidity: if the circumstances set out in Clause 17.5 have occurred, the Cash and Cash Equivalents of the Borrower are not less than twenty five million Dollars
(US$25,000,000). 

  

	(d)	Net Interest Coverage Ratio: the Interest Coverage Ratio is greater than 2.50 to 1. 

  

	(e)	Interest and Principal Coverage Ratio: the Interest and Principal Coverage Ratio is not less than 1.1 to 1. 

  

	(f)	the aggregate Market Value of the Vessels is not less than 125 per cent. of the aggregate principal amount of the outstanding Loans* 

  

	*	delete if circumstances in Clause 17.8 of the Credit Agreement have not occurred 

  

	
	[            ]
	
	Yours faithfully,
	
	[                                      
  ]
	
	Chief Executive Officer
	
	[or]
	
	            
                            
	
	Chief Financial Officer

  

 104 

 SCHEDULE 10 
 STANDING PAYMENT INSTRUCTIONS 
 US$ Payment Details: 
 USD: JP Morgan Chase Bank, New York 
 ABA 021000021 
 For further credit: FORTIS BANK S.A./N.V., NEW YORK BRANCH 
 A/C 001-1-624418

 Ref. Seaspan Corporation, $291 million 
  

 105 

 SCHEDULE 11 
 ESTIMATED ADDBACK RELATING TO CERTAIN DELIVERED VESSELS* 
 DEPRECIATION 
  

			
	 Date
	  	Amount of Add Back
(US$)
	 9/30/05
	  	207,588,000
	 12/31/05
	  	205,843,000
		
	 3/31/06
	  	204,099,000
	 6/30/06
	  	202,354,000
	 9/30/06
	  	200,610,000
	 12/31/06
	  	198,866,000
		
	 3/31/07
	  	197,121,000
	 6/30/07
	  	195,377,000
	 9/30/07
	  	193,632,000
	 12/31/07
	  	191,888,000
		
	 3/31/08
	  	190,143,000
	 6/30/08
	  	188,399,000
	 9/30/08
	  	186,655,000
	 12/31/08
	  	184,910,000
		
	 3/31/09
	  	183,166,000
	 6/30/09
	  	181,420,001
	 9/30/09
	  	179,677,000
	 12/31/09
	  	177,932,000
		
	 3/31/10
	  	176,188,000
	 6/30/10
	  	174,443,000
	 9/30/10
	  	172,699,000
	 12/31/10
	  	170,955,000

  

 106 

			
		
	 3/31/11
	  	169,210,000
	 6/30/11
	  	167,466,000
	 9/30/11
	  	165,721,000
	 12/31/11
	  	163,977,000
		
	 3/31/12
	  	162,232,000
	 6/30/12
	  	160,488,000
	 9/30/12
	  	158,744,000
	 12/31/12
	  	156,999,000
		
	 3/31/2013
	  	155,255,000
	 6/30/2013
	  	153,510,000
	 9/30/2013
	  	151,766,000
	 12/31/2013
	  	150,021,000
		
	 3/31/14
	  	148,258,000
	 6/30/14
	  	146,513,000
	 9/30/14
	  	144,768,000
	 12/31/14
	  	143,023,000
		
	 3/31/15
	  	141,278,000
	 6/30/15
	  	139,533,000
	 9/30/15
	  	137,788,000
	 12/31/15
	  	136,043,000
		
	 3/31/16
	  	134,298,000
	 6/30/16
	  	132,553,000
	 9/30/16
	  	130,808,000
	 12/31/16
	  	129,063,000
		
	 3/31/17
	  	127,318,000
	 6/30/17
	  	125,573,000
	 9/30/17
	  	123,828,000
	 12/31/17
	  	122,083,000

  

 107 

			
		
	 3/31/18
	  	120,338,000
	 6/30/18
	  	118,593,000
	 9/30/18
	  	116,848,000
	 12/31/18
	  	115,103,000
		
	 3/31/19
	  	113,358,000
	 6/30/19
	  	111,613,000
	 9/30/19
	  	109,868,000
	 12/31/19
	  	108,123,000
		
	 3/31/20
	  	106,378,000
	 6/30/20
	  	104,633,000
	 9/30/20
	  	102,888,000
	 12/31/20
	  	101,143,000
		
	 3/31/21
	  	99,398,000
	 6/30/21
	  	97,653,000
	 9/30/21
	  	95,908,000
	 12/31/21
	  	94,163,000
		
	 3/31/22
	  	92,418,000
	 6/30/22
	  	90,673,000
	 9/30/22
	  	88,928,000
	 12/31/22
	  	87,183,000

  

	*	The “certain delivered vessels” of the Borrower referred to in this Schedule are as follows: 

 CSCL Hamburg 
 CSCL Chiwan 
 CSCL
Ningbo 
 CSCL Dalian 
 CSCL Felixstowe 
 CSCL Oceania 
 CSCL Africa 
  

 108 

 CSCL Vancouver 
 CSCL Sydney

 CSCL New York 
  

 109 

 APPENDIX 1 
 FORM OF INSURANCES ASSIGNMENT 
  

 110 

 APPENDIX 2 
 FORM OF MORTGAGE 
  

 111 

 APPENDIX 3 
 FORM OF DEED OF COVENANTS 
  

 112 

 APPENDIX 4 
 FORM OF TIME CHARTER AND EARNINGS ASSIGNMENT 
  

 113 

 APPENDIX 5 
 FORM OF PRE-DELIVERY ASSIGNMENT 
  

 114 

 APPENDIX 6 
 FORM OF MANAGEMENT AGREEMENT ASSIGNMENT 
  

 115 

 SIGNATORIES 
  

			
	Borrower
	
	SEASPAN CORPORATION
		
	By:	 	/s/ Sai W. Chu
	
	The Arrangers
	
	FORTIS BANK S.A./N.V., NEW YORK BRANCH
		
	By:	 	/s/ Lucy French
		 	Attorney-in-Fact
		 	Lucy French
	
	THE EXPORT-IMPORT BANK OF KOREA
		
	By:	 	/s/ Mr. Young-Whan Sun
	
	Original Lenders
	
	FORTIS BANK S.A./N.V., NEW YORK BRANCH
		
	By:	 	/s/ Lucy French
		 	Attorney-in-Fact
		 	Lucy French
	
	THE EXPORT-IMPORT BANK OF KOREA
		
	By:	 	/s/ Mr. Young-Whan Sun
	
	SWEDBANK AB (PUBL)
		
	By:	 	/s/ Lucy French
		 	Attorney-in-Fact
		 	Lucy French

  

 116 

			
	The Facility Agent
	
	FORTIS BANK S.A./N.V., NEW YORK BRANCH
		
	By:	 	/s/ Lucy French
		 	Attorney-in-Fact
		 	Lucy French
	
	The Swap Agent
	
	FORTIS BANK S.A./N.V., NEW YORK BRANCH
		
	By:	 	/s/ Lucy French
		 	Attorney-in-Fact
		 	Lucy French

  

 117Lease Agreement (Hull No. 1851)

			
	Private & Confidential	 	Exhibit 4.22

  

					
		 	Dated December 27, 2007	  	
			
		 	 PEONY LEASING LIMITED
 as Lessor
	  	 (1)    

			
		 	and	  	
			
		 	 SEASPAN FINANCE I CO. LTD.
 as Lessee
  
	  	 (2)    

		 	
		 	 LEASE AGREEMENT
 in respect of one 4520 TEU container carrier
 to be built at Samsung Heavy Industries Co.,
 Ltd
 with Hull No. 1851
  
	  	

 

 

 Contents 
  

					
	 Clause
	  	Page
	 1
	  	Interpretation	  	1
			
	 2
	  	Lease	  	21
			
	 3
	  	Conditions Precedent generally and to payment of Instalments and Delivery	  	29
			
	 4
	  	Rental	  	33
			
	 5
	  	Payments	  	34
			
	 6
	  	Extent of Lessor’s Liability	  	35
			
	 7
	  	Costs and Indemnity	  	38
			
	 8
	  	Taxes	  	46
			
	 9
	  	Use and Employment	  	53
			
	 10
	  	Maintenance and Operation	  	56
			
	 11
	  	Equipment	  	61
			
	 12
	  	Title and Registration	  	62
			
	 13
	  	Insurances	  	65
			
	 14
	  	Loss, Damage, Requisition and Salvage	  	72
			
	 15
	  	Redelivery	  	75
			
	 16
	  	Standby Lender Review and Standby Loan Transaction	  	77
			
	 17
	  	Termination, Mandatory Prepayment and Further Novation Events	  	78
			
	 18
	  	Lessor’s Rights on a Termination Event, Mandatory Prepayment Event or Further Novation Event	  	83
			
	 19
	  	Representations and Warranties	  	87
			
	 20
	  	General Undertakings	  	91
			
	 21
	  	Assignments, transfers and sale of the Ship	  	94
			
	 22
	  	Increased Costs	  	96
			
	 23
	  	Funding Problems	  	97
			
	 24
	  	Illegality, etc	  	98
			
	 25
	  	Release from Arrest: Lessor’s and Lessee’s Vessels	  	99

					
			
	 26
	  	Confidentiality	  	100
			
	 27
	  	Notices	  	102
			
	 28
	  	Supplemental	  	103
			
	 29
	  	Law and Jurisdiction	  	105
		
	Schedule 1 Financial Schedule	  	106
		
	Schedule 2 Description of Ship	  	107
		
	Schedule 3 Part A - Form of Lessor Parent Support Letter (Lessee)	  	108
		
	Part B - Form of Lessee Parent Support Letter (Builder)	  	110
		
	Schedule 4 Lessee’s Condition Precedent Documents	  	112
		
	Schedule 5 Lessee’s Pre-Delivery Condition Precedent Documents	  	119
		
	Schedule 6 Form of Instalment Request	  	120
		
	Schedule 7 Form of Certificate of Delivery and Acceptance	  	121
		
	Schedule 8 Form of Intended Delivery Notice	  	122
		
	Schedule 9 Form of Notice of Assignment of Builder Warranties	  	124
		
	Schedule 10 Standby Loan Transaction Characteristics	  	127
		
	Schedule 11 Specimen Profit and Loss Account for Lessor (referred to in clause 6.8)	  	130

 THIS AGREEMENT is made on December 27, 2007, 
 BETWEEN 
  

	(1)	PEONY LEASING LIMITED, a company incorporated in England and Wales with company number 4442275 and whose registered office is at PO Box 39900, Level 7, Bishopsgate Exchange,
155 Bishopsgate, London EC2M 3YB (the “Lessor”); and 

  

	(2)	SEASPAN FINANCE I CO. LTD., a corporation incorporated in the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
Marshall Islands MH96960 (the “Lessee”). 

 BACKGROUND 
 This Agreement sets out the terms and conditions on which the Lessor will acquire and lease to the Lessee, and the Lessee will take on lease, the Ship. 
 IT IS AGREED as follows: 
  

	1	Interpretation 

  

	1.1	Definitions 

 Subject to clause 1.6, in this
Agreement: 
 “Adjustment Date” has the meaning given to that term in the Financial Schedule; 
 “Adjustment Period” has the meaning given to that term in the Financial Schedule; 
 “Agreed Form” in relation to any document, means that document in form, substance and terms approved in writing by the Lessor and the
Lessee and any other Transaction Company which is a signatory thereto or otherwise in accordance with any such other approval procedure detailed in any relevant provision of this Agreement and any Lease Document; 
 “Approved Flag State” means each of the states described in clause 12.3.1 together with any other state or country approved by the Lessor
pursuant to clause 12.5.2; 
 “Approved Manager” means Seaspan Management Services Limited of Clarendon House, 2 Church
Street, Hamilton, HM11, Bermuda, or such other company as the Lessor may from time to time approve (such approval not to be unreasonably withheld or delayed, and such approval to be given in the case of any first class ship manager/operator
nominated by the Lessee); 
 “Arrangement Fee” has the meaning given to such term in the Financial Schedule; 
 “Assumptions” has the meaning given to such term in the Financial Schedule; 
 “Auditors” means KPMG or such other firm of appropriately qualified accountants as may be the Lessor’s auditors from time to time;

 “Bank” means Bank of Scotland plc a company incorporated in Scotland with company number SC 327000 and having its
registered office at The Mound, Edinburgh, EH1 1YZ; 

 “Broken Funding Benefits” has the meaning given to such term in the Financial Schedule;

 “Broken Funding Costs” has the meaning given to such term in the Financial Schedule; 
 “Builder” means Samsung Heavy Industries Co., Ltd., a company incorporated in Korea with its principal place of business at 34th Floor,
Samsung Life Insurance Seocho Tower 1321-15, Seocho-Dong, Seocho-Gu, Korea; 
 “Building Contract” means the contract dated
29 November 2007 for construction of the Ship signed by the Guarantor (as “Buyer”) and the Builder; 
 “Business
Day” means a day (other than a Saturday or Sunday) on which banks are open for business in London, New York, Hong Kong, Vancouver and (during the Construction Period only) Seoul; 
 “Buyer’s Supplies Reimbursement Amount” means the amount payable by the Lessor to the Supervisor pursuant to clause 4.5(a) of the
Supervision Agreement; 
 “CAA” means the Capital Allowances Act 2001; 
 “Capital Commitment Fee Letter” means the letter so called issued or to be issued in respect of the capital commitment fee relating to
this Agreement and the Sister Ship Lease Agreements addressed by the Lessor to the Lessee; 
 “Certificate of Delivery and
Acceptance” means the certificate in the form of schedule 7 to be executed by the Lessee upon the delivery of the Ship in accordance with clause 3.11; 
 “Certificate of Financial Responsibility” has the meaning attributed to it in clause 9.3(d); 
 “Change of Law” means, in each case after the date of this Agreement: 
  

	 	(a)	the implementation, introduction, abolition, withdrawal or variation of any applicable law, regulation, practice or concession or official directive, ruling, request, notice,
guideline, statement of policy or practice statement by the Bank of England, the European Union or any central bank or tax, fiscal, revenue, monetary, governmental, local, international, national or other competent authority or agency (whether or
not having the force of law but in respect of which compliance by banks or other financial institutions or institutions of a similar nature to the Lessor in the relevant jurisdiction is generally customary); or 

  

	 	(b)	any change in any interpretation, or the introduction or making of any new or further interpretation, or any new or different interpretation of any applicable law, regulation,
practice or concession or official directive, ruling, request, notice, guideline, statement of policy or practice statement by any court, tribunal, governmental, local, international, national or other competent authority or agency or the Bank of
England, the European Union or any central bank or tax, fiscal, revenue or monetary authority or agency (whether or not having the force of law but in respect of which compliance by banks or other financial institutions or institutions of a similar
nature to the Lessor in the relevant jurisdiction is generally customary); or 

  

	 	(c)	 compliance with any new or different request or direction from the Bank of England, the European Union or any central bank, tax, fiscal, regulatory monetary,
revenue, 

	 	 
governmental, local, international, national or other competent authority or agency (whether or not having the force of law but in respect of which
compliance by banks or other financial institutions or institutions of a similar nature to the Lessor in the relevant jurisdiction is generally customary); 

 “Classification Society” means Det Norske Veritas, the American Bureau of Shipping, Germanisher Lloyd or the Lloyds Register of Shipping
or, with the prior written approval of the Lessor, any other classification society which is a member of IACS; 
 “Commitment Expiry
Date” means 30 September 2011 or such later date as the Lessor may agree; 
 “Commercially Burdensome” has the
meaning given to such term in clause 2.2.2; 
 “Compulsory Acquisition” means requisition for title or other compulsory
acquisition, requisition, appropriation, expropriation, deprivation, forfeiture or confiscation for any reason of the 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 a requisition for title; 
 “Construction Period” means the period commencing on the Effective Date and
ending on the earlier of (i) the Delivery Date or (ii) the date on which any further novation referred to in clause 2.3 occurs; 
 “Contract Price” means eighty two million eight hundred and eleven thousand Dollars (US$82,811,000) as the same may be adjusted from time to time in accordance with the provisions of the Novated Building Contract;

 “Contribution Payment” means a payment by the Lessee to the Lessor in accordance with clause 3.10 by way of capital
contribution to the Lessor’s Total Expenditure of an amount in Dollars equal to the aggregate amount by which the aggregate of Lessor’s Total Expenditure already paid by the Lessor and the amount next due in respect of the Lessor’s
Total Expenditure would otherwise exceed the Maximum Commitment on the date on which such next payment in respect of Lessor’s Total Expenditure is to be incurred; 
 “Contribution Payment Request” means a notice given by the Lessor to the Lessee under clause 3.10.2 of this Agreement; 
 “Corporation Tax” has the meaning given to such term in the Financial Schedule; 
 “Default Rate” means the rate of interest determined by the Lessor, and certified by it to the Lessee, to be the aggregate of: 
  

	 	(a)	two per cent (2%) per annum; and 

  

	 	(b)	LIBOR; 

 “Delivery” means the time at
which the Lessor delivers the Ship to the Lessee pursuant to clause 3, and “Delivered” shall be construed accordingly; 
 “Delivery Date” means the date on which Delivery occurs (anticipated to be 30 September 2010); 
 “Dollar Equivalent” has the meaning given to such term in the Financial Schedule; 

 “Dollars” and “$” means the lawful currency from time to time of the
United States of America and in respect of all payments to be made under this Agreement, means immediately available, freely transferable funds; 
 “Economically Burdensome” has the meaning given to such term in the Financial Schedule; 
 “Effective
Date” means the date on which the conditions specified in clause 3.1.1 and, if payment of an Instalment is being made simultaneously with or immediately after the novation of the Building Contract, clause 3.2 are satisfied and the novation
of the Building Contract takes effect in accordance with clause 3 of the Novation Agreement; 
 “Environmental Approval”
means any permit, licence, certificate, filing, consent, authorisation, or any other approval required at any time by any Environmental Law; 
 “Environmental Claim” means any claim by any person which arises out of or in connection with an Environmental Incident or an alleged Environmental Incident or any breach of, or non-compliance with, or which otherwise
relates to any Environmental Law or Environmental Approval and, for the purposes of this definition, “claim” includes any threatened claim which may reasonably be considered as likely to develop into an actual claim; 
 “Environmental Incident” means: 
  

	 	(a)	any release, discharge or emission of Environmentally Sensitive Material from the Ship other than any of the foregoing which the Lessee, acting reasonably, considers not to be
material in the context of this Agreement and which is not reasonably likely to give rise to an Environmental Claim; or 

  

	 	(b)	any incident in which Environmentally Sensitive Material is released, discharged or emitted from a vessel other than the Ship and which involves a collision between the Ship and
such other vessel or some other incident of navigation or operation, in either case, in connection with which the Ship is actually or is reasonably likely to be arrested, attached, detained or injuncted and/or the Ship and/or the Lessee or any
Manager and/or any sub-lessee, time charterer, operator or other manager is at fault or expressly alleged to be at fault or otherwise liable to any legal or administrative action; or 

  

	 	(c)	any other incident in which Environmentally Sensitive Material is released, discharged or emitted otherwise than from the Ship and in connection with which the Ship is actually
and/or is reasonably likely to be arrested and/or where the Lessee or any Manager and/or any operator, time charterer, or other manager of the Ship is at fault or expressly alleged to be at fault or otherwise liable to any legal or administrative
action; 

 “Environmental Law” means any or all laws applicable or relating to pollution or contamination or
protection of the environment, to the generation, manufacture, processing, distribution, use or misuse, treatment, storage, disposal, carriage or holding of Environmentally Sensitive Material or to actual or threatened emissions, releases, spillages
or discharges of Environmentally Sensitive Material; 

 “Environmentally Sensitive Material” means liquefied natural gas, oil, oil products and
any other element or substance whether natural or artificial and whether consisting of gas, liquid, solid or vapour (including any chemical, gas or other hazardous or noxious substance) which is or is capable of becoming polluting, toxic, hazardous,
harmful or damaging to mankind or the environment or any living organism; 
 “Excluded Event” means any of: 
  

	 	(a)	a Change of Law or a change in GAAP; or 

  

	 	(b)	any action or inaction effected or required under or pursuant to any provision of this Agreement or the other Transaction Documents; or 

  

	 	(c)	anything requested or consented to by the Lessee or any Guarantor Group Member; or 

  

	 	(d)	any failure by the Lessee or any Guarantor Group Member to supply information reasonably requested by the Lessor or required to be given under the Transaction Documents; or

  

	 	(e)	any act or omission of any party to the Transaction Documents or their affiliates (other than the Lessor or any Lessor Group Member); 

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

	 	(a)	for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the debtor; 

  

	 	(b)	under any loan stock, bond, note or other security issued by the debtor; 

  

	 	(c)	under any acceptance credit, guarantee or letter of credit facility made available to the debtor; 

  

	 	(d)	under a lease or any other agreement having the commercial effect of a borrowing or raising of money by the debtor; 

  

	 	(e)	under any foreign exchange transaction, any interest or currency swap or any other kind of derivative transaction entered into by the debtor or, if the agreement under which any
such transaction is entered into requires netting of mutual liabilities, the liability of the debtor for the net amount; or 

  

	 	(f)	under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability of another person which would fall within paragraphs (a) to (e) if
the references to the debtor referred to the other person; 

 but excludes any liability under a fully non-recourse project
finance facility; 
 “Financial Schedule” means the financial schedule set out in Schedule 1; 
 “Funding Costs” has the meaning given to that term in the Financial Schedule; 

 “Further Novation Event” means any of the events or circumstances described in clause
17.3; 
 “Further Novation Notice” means a notice which the Lessor (as new purchaser) may issue to the Replacement Purchaser
pursuant to clause 6.1 of the Novation Agreement or, as the case may be, a notice which the Builder may issue to the Lessor and the Replacement Purchaser pursuant to clause 6.2 of the Novation Agreement; 
 “General Assignment” means the assignment dated on or about the date hereof pursuant to which the Guarantor and the Lessee (as assignors)
assign to the Lessor (as assignee) the benefit of (i) the Time Charter and any other earnings of the Ship, (ii) the Insurances, and (iii) any Requisition Compensation; 
 “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; 
 “Guarantee” means the guarantee issued or to be issued by the Guarantor
in favour of the Lessor in respect of the obligations of, the Lessee, the Manager, the Supervisor and the Replacement Purchaser under the Transaction Documents; 
 “Guarantor” means Seaspan Corporation, a company incorporated in the Republic of the Marshall Islands with its principal office at Unit 2, 7th Floor, Bupa Centre, 141 Connaught Road West, Hong Kong,
F4 000, People’s Republic of China; 
 “Guarantor Group” means each of the Guarantor and any company which is a
Subsidiary of the Guarantor from time to time; 
 “Guarantor Group Member” means as at the date hereof and from time to time
any member of the Guarantor Group; 
 “HMRC” means H.M. Revenue & Customs; 
 “Holding Company” in relation (i) to a company incorporated in England and Wales, has the meaning given in Section 736
Companies Act 1985 and (ii) in relation to a company or other person incorporated or formed outside England and Wales means a company or other person of which such company is the Subsidiary; 
 “IACS” means the International Association of Classification Societies; 
 “ICTA” means the Income and Corporation Taxes Act 1988; 
 “Indemnified Person” means the Lessor, the Bank, any other Lessor Group Member and their respective officers, directors, secondees, agents and employees; 
 “Indexation Relief Letter” means the letter so called issued or to be issued in respect of indexation relief relating to this Agreement
addressed by the Lessor to the Lessee; 
 “Instalment” means each instalment of the Purchase Price, being: 
  

	 	(a)	the instalment of the Contract Price payable on the date upon which the Novation Agreement becomes effective, referred to as the “First Instalment” in article II.4(a) of
the Novated Building Contract, in an amount of $17,702,200 (the “First Instalment”); 

	 	(b)	the instalment of the Contract Price payable on any date between 19 December 2007 and 31 December 2007, referred to as the “Second Instalment” in article II.4(b)
of the Novated Building Contract, in an amount of $56,827,700, together with such additional amounts representing any increase in the Contract Price pursuant to the provisions of the Building Contract due upon the date of the Second Instalment (the
“Second Instalment”); and 

  

	 	(c)	the instalment of the Contract Price referred to as the “Delivery Instalment” in article II.4(b) of the Novated Building Contract, in an amount of $8,281,100, together
with such other additional amounts representing any increase in the Contract Price pursuant to the provisions of the Building Contract due upon the Delivery Date (the “Final Instalment”), 

 or such other dates (up to the Commitment Expiry Date) or amounts (subject to the Maximum Commitment) to be agreed by the Lessor and the Lessee or, as the
case may be, the Lessor and the Supervisor; 
 “Instalment Date” means the date for the payment of each Instalment and the
expressions “First Instalment Date”, “Second Instalment Date”, and “Final Instalment Date” shall be construed accordingly (the Instalment Date relating to the date for the payment of the Final
Instalment being the Delivery Date); 
 “Instalment Request” means a notice to be sent by the Lessee to the Lessor requesting
the payment of an instalment in the form of Schedule 6; 
 “Insurances” means: 
  

	 	(a)	all policies and contracts of insurance, including entries of the Ship in any protection and indemnity or war risks association, which are from time to time in place or taken out or
entered into or which are required to be put in place or taken out or entered into in respect of the Ship or otherwise in relation to it pursuant to clause 13; and 

  

	 	(b)	all benefits, rights and other assets relating to, or derived from, any of the foregoing, including any rights to a return of a premium and claims of whatsoever nature,

 provided however that this shall not include any policies and contracts of insurance which are or may be effected by the
Lessor as referred to in clause 13.21 or by the Lessor pursuant to clause 18.9 following the occurrence of a Termination Event, a Mandatory Prepayment Event or a Further Novation Event; 
 “Intended Delivery Notice” means a notice addressed by the Lessee and the Supervisor to the Lessor, substantially in the form of
Schedule 8; 
 “Irrecoverable VAT” has the meaning given to such term in the Financial Schedule; 
 “ISM Code” means the International Safety Management Code (including the guidelines on its implementation) adopted by the International
Maritime Organisation Assembly as Resolutions A. 741(18) and A. 788(19) and incorporated into SOLAS as the same may be 

 
amended or supplemented from time to time and all further resolutions, circulars, codes, guidelines, regulations and recommendations which are now or may in
the future be issued by or on behalf of the International Maritime Organisation or any other entity with responsibility for implementing the ISM Code; 
 “ISPS Code” means the International Ship and Port Facility Security Code adopted by the International Maritime Organisation Assembly as the same may have been or may be amended or supplemented from
time to time; 
 “Lease Amounts” means the amounts payable by the Lessor pursuant to clause 3.7 of this Agreement;

 “Lease Documents” means this Agreement, the Certificate of Delivery and Acceptance, the Novated Building Contract, the
Refund Guarantee, the QEL, the Guarantee, the Indexation Relief Letter, the Novation Agreement, the Supervision Agreement, the Tax Consultation Letter, the Non Discrimination Letter, the General Assignment, the Pooling Benefits Letter, the Capital
Commitment Fee Letter, the Pre-Tax Loss Letter, the Technical Note Letter and any other document, notice, acknowledgement, letter or instrument entered into, issued or given pursuant to the terms of any of the foregoing and to which the Lessor is a
party and any other documents, notice, letter or instrument designated as a Lease Document by the Lessor and the Lessee; 
 “Lease
Period” means the period during which the Lessee is entitled under the terms of this Agreement to possession and use of the Ship commencing on the Delivery Date and ending on the earlier of: 
  

	 	(a)	the Lease Period End Date; and 

  

	 	(b)	the date of termination of the leasing of the Ship under this Agreement; 

 “Lease Period End Date” means the date falling four years and three hundred and sixty days after the Delivery Date; 
 “Lease Rental Date” has the meaning given to such term in the Financial Schedule; 
 “Lease Termination Date” means the date on which the leasing of the Ship by the Lessor to the Lessee terminates under this Agreement, being: 
  

	 	(a)	the Lease Period End Date; or 

  

	 	(b)	where the leasing of the Ship ends following the occurrence of a Total Loss, the Total Loss Payment Date; or 

  

	 	(c)	where the leasing of the Ship ends pursuant to clause 2.5 (Voluntary Termination after Delivery) by virtue of the fact that the leasing of the Ship pursuant to this Agreement has
become Economically Burdensome, the date specified by the Lessee in the notice served on the Lessor by the Lessee pursuant to clause 2.5.2(a), being a date not less than five (5) Business Days after service of that notice; or

  

	 	(d)	where the leasing of the Ship ends pursuant to clause 2.5 (Voluntary Termination after Delivery) for any reason other than that specified in paragraph (c) above, the date
specified by the Lessee in the notice served on the Lessor by the Lessee pursuant to clause 2.5.2(b) being a date no less than thirty (30) days after service of that notice; or 

	 	(e)	where the leasing of the Ship ends pursuant to clause 18.1 by virtue of the service by the Lessor of a notice on the Lessee, the date stipulated in that notice; or

  

	 	(f)	where the leasing of the Ship ends pursuant to clause 18.2, by virtue of the service by the Lessor of a notice on the Lessee, the date stipulated in that notice; or

  

	 	(g)	where the leasing of the Ship ends pursuant to clause 24.2, the date specified by the Lessor in the notice served on the Lessee by the Lessor pursuant to clause 24.1;

 “Lessor” includes the successors and permitted assigns and transferees of the Lessor; 
 “Lessor Breach” means any breach by the Lessor or any Lessor Group Member and their respective agents, assigns, directors, officers,
secondees and servants (each a “Lessor Party”) of its obligations, warranties or representations to the Lessee under the Transaction Documents to which the relevant Lessor Party is a party, but excluding any breach resulting from
any act or omission of: 
  

	 	(a)	the Lessee, any Transaction Company or any person which derives its rights through the Lessee or any Transaction Company, acting in any capacity on behalf of a Lessor Party;

  

	 	(b)	a Lessor Party, that arises as a result of the failure of the Lease or any Transaction Company to duly and punctually perform all its obligations under any Transaction Document; or

  

	 	(c)	a Lessor Party, that arises as a result of a breach of any of the express representations or express warranties of the Lessee or any Transaction Company; 

“Lessor Group Member” means any member of the Lessor’s Group other than the Lessor; 
 “Lessor Misconduct” means any act or omission of the Lessor or any Indemnified Person, (excluding any act or omission of the Lessee or
any Transaction Company, or any Person who derives its rights through the Lessee or any Transaction Company, acting in any capacity on behalf of the Lessor or any Indemnified Person) which constitutes: 
  

	 	(a)	wilful misconduct; 

  

	 	(b)	reckless misconduct with: 

  

	 	(i)	the intent to cause damage; or 

  

	 	(ii)	actual knowledge that damage would probably result; 

 “Lessor Parent Support Letters” means the letters issued or, as the context may require, to be issued by the Bank: 
  

	 	(a)	in favour of the Lessee in the form set out in Schedule 3A; and 

  

	 	(b)	in favour of the Builder in the form set out in Schedule 3B, 

 and, in the singular, means either of them; and 
 “Lessor’s Group” means the Lessor and its ultimate Holding Company and any company which is a Subsidiary of such Holding Company
from time to time; 
 “Lessor’s Legal Costs” has the meaning given to such term in the Financial Schedule; 

“Lessor’s Management Time” means the amount of time which any director or employee of the Lessor or any Lessor Group Member
(other than those employees whose functions are of an administrative or clerical nature) spends or anticipates in good faith will be spent in connection with the taking of any actions, the consideration of any requests and/or the entering into of
any discussions by the Lessor in accordance with this Agreement and the other Transaction Documents as shall be notified to the Lessee by the Lessor (provided however that this shall not include time spent on routine transactional management or on
administrative or clerical matters); 
 “Lessor’s Management Time Cost Rate” means £300 per hour plus RPI, or
as otherwise notified by the Lessor to the Lessee from time to time, acting reasonably; 
 “Lessor’s Security Interest”
means any Security Interest on the Ship, its earnings, the Insurances or any Requisition Compensation which arises as a result of: 
  

	 	(a)	any claim against or affecting the Lessor that is not related to, or does not arise directly or indirectly as a result of, the transactions contemplated by this Agreement or any of
the other Transaction Documents; or 

  

	 	(b)	any act or omission of the Lessor which is unrelated to or does not arise directly or indirectly as a result of the transactions contemplated by this Agreement and the other
Transaction Documents; or 

  

	 	(c)	any Taxes imposed upon the Lessor other than those in respect of which the Lessor or any other Indemnified Person is required to be indemnified against by the Lessee or by any other
person under this Agreement or under any of the other Transaction Documents; 

 “Lessor’s Total
Expenditure” means: 
  

	 	(a)	for the purposes of paragraph (a) of the definition of Maximum Commitment, all amounts paid or payable by the Lessor in respect of the Purchase Price and the Lease Amounts for
the Ship and, in respect of amounts payable in any other currency, means the Dollar Equivalent of such amounts; and 

  

	 	(b)	for the purposes of paragraph (b) of the definition of Maximum Commitment, the aggregate of all amounts paid or payable by the Lessor in respect of the Purchase Price and the
Lease Amounts for the Ship and each of the Sister Ships (as such expressions are defined in, as the case may be, this Agreement or the relevant Sister Ship Lease Agreement); 

 “Lessor’s Underwriting Fee” has the meaning given to that term in the Financial Schedule; 
 “LIBOR” has the meaning given in the Financial Schedule; 

 “Losses” means any and all losses, costs, charges, expenses, fees, interest,
commissions, payments, demands, claims, actions, proceedings, liabilities, penalties, fines, judgments, damages, orders, liens, salvage and general average or other sanctions other than Taxes, and except also those excluded by clause 7.5, and the
expression “Loss” shall be construed accordingly; 
 “Major Casualty” means a casualty to the Ship in respect of
which the claim or the aggregate of the claims against all insurers, before adjustment for any relevant franchise or deductible, exceeds $5,000,000 or the equivalent in another currency; 
 “Manager” means the Approved Manager or any Replacement Manager; 
 “Mandatory Prepayment Event” means any of the events or circumstances described in clause 17.2; 
 “Maximum Commitment” means each of: 
  

	 	(a)	$85,811,000 in respect of the Lessor’s Total Expenditure on the Ship; and 

  

	 	(b)	$400,000,000 in aggregate in respect of the Lessor’s Total Expenditure on the Ship and each of the Sister Ships, 

 in each case exclusive of any United Kingdom Value Added Tax payable under the law in force in the United Kingdom at the date of this Agreement, Provided
however that: 
  

	 	(i)	during the period between the date of this Agreement and 31 December 2007, the Maximum Commitment under paragraph (b) above shall be limited to an aggregate of
$226,000,000; and 

  

	 	(ii)	if any Sister Ship Lease Agreement terminates (the “Terminated Lease”) pursuant to clauses 2.2 or 2.5 thereof prior to the date on which Delivery shall have
occurred under this Agreement and all of the other Sister Ship Agreements (as “Delivery” is defined therein), for the purposes of paragraph (b) of the definition of Lessor’s Total Expenditure there shall be disregarded all
amounts paid by the Lessor under the Terminated Lease by way of Purchase Price and Lease Amounts (as defined therein); 

 “Net Sale Proceeds” means in relation to a sale of the Ship, the amount in Dollars or (if in a currency other than Dollars) the Dollar Equivalent of the amount of the consideration actually and unconditionally received by
the Lessor from a purchaser of the Ship upon such sale and any non-refundable deposit paid to or for the account of the Lessor by a person acquiring or proposing to acquire the Ship under a contract or offer to purchase the Ship or other agreement
to acquire the Ship which has been withdrawn, terminated or cancelled or has lapsed; 
 after deducting: 
  

	 	(i)	any VAT for which the Lessor is required to account in respect of such sale; and 

  

	 	(ii)	the Lessor’s costs and out-of-pocket expenses, excluding Recoverable VAT on such expenses, properly incurred in connection with such sale (including but not limited to
brokers’ commissions, legal fees, registration fees and stamp duties) or properly incurred in recovering possession of or in moving, insuring, maintaining, laying up or dry-docking the Ship and in carrying out any repairs, works or
modifications required to restore the Ship to the condition required by this Agreement or required pursuant to any sale and purchase agreement in respect of the Ship; 

 “Net Total Loss Proceeds” means, in relation to a Total Loss of the Ship, the amount in
Dollars or (if in a currency other than Dollars) the Dollar Equivalent of the Total Loss Proceeds actually and unconditionally received by the Lessor after deducting the Lessor’s costs and out-of-pocket expenses (excluding Recoverable VAT on
such expenses) reasonably incurred by the Lessor in connection with the collection of such proceeds; 
 “Non Discrimination
Letter” means the letter agreement so called issued or to be issued in relation to this Agreement addressed by the Lessor to the Lessee; 
 “Notice Response Date” shall have the meaning attributed thereto in clause 16.2; 
 “Novated Building
Contract” means the Building Contract as novated and amended by the Novation Agreement; 
 “Novation Agreement”
means the novation agreement entered or to be entered into in respect of the Building Contract and made between (i) the Builder, (ii) the Lessor, (iii) the Guarantor (as “Original Purchaser”) and (iv) the Lessee (as
“Replacement Purchaser”); 
 “Permitted Security Interests” means: 
  

	 	(a)	Security Interests created by the Transaction Documents; 

  

	 	(b)	Lessor’s Security Interests; 

  

	 	(c)	liens for unpaid crew’s wages; 

  

	 	(d)	liens for salvage; 

  

	 	(e)	liens arising by operation of law for not more than 2 months’ prepaid hire under any charter in relation to the Ship not prohibited by this Agreement; 

 

	 	(f)	liens for master’s disbursements incurred in the ordinary course of trading; 

  

	 	(g)	other liens arising by operation of law or otherwise in the ordinary course of the operation, repair or maintenance of the Ship and which secure amounts not exceeding five million
Dollars ($5,000,000) where the Lessee is contesting the claim giving rise to such lien in good faith by appropriate steps and for the payment of which adequate reserves have been made in case the Lessee finally has to pay such claim so long as any
such proceedings shall not, and may reasonably be considered unlikely to lead to the arrest, sale, forfeiture or loss of the Ship, or any interest in the Ship; 

  

	 	(h)	any Security Interest created in favour of a claimant or defendant in any action of the court or tribunal before whom such action is brought as security for costs and expenses where
the Lessee is prosecuting or defending such action in good faith by appropriate steps or which are subject to a pending appeal and for which there shall have been granted a stay of execution pending such appeal and for the payment of which adequate
reserves have been made so long as any such proceedings or the continued existence of such Security Interest shall not and may reasonably be considered unlikely to lead to the arrest, sale, forfeiture or loss of, the Ship or any interest in the
Ship; and 

	 	(i)	Security Interests arising by operation of law in respect of Taxes which are not overdue for payment or Taxes which are overdue for payment but which are being contested in good
faith by appropriate steps and in respect of which appropriate reserves have been made so long as any such proceedings or the continued existence of such Security Interest shall not and may reasonably be considered unlikely to lead to the arrest,
sale, forfeiture or loss of the Ship, or any interest in the Ship; 

 “Pooling Benefits Letter” means the
letter so called issued or to be issued in respect of any pooling benefits relating to this Agreement and the Sister Ship Lease Agreements addressed by the Lessor to the Lessee; 
 “Pre-Delivery Termination Date” means the date on which the Lessor’s obligation to acquire the Ship pursuant to the Novated Building
Contract and lease the Ship to the Lessee terminates, being: 
  

	 	(a)	where the obligation of the Lessor to acquire the Ship and lease the Ship to the Lessee ends by virtue of the fact that the transaction has become Economically Burdensome or the
Lessee has determined that the transaction has become Commercially Burdensome, the date specified in the notice served on the Lessor by the Lessee pursuant to clause 2.2.1; 

  

	 	(b)	if the Ship becomes a Total Loss, the earlier of the date on which the Supervisor (acting on behalf of the Lessor and in accordance with the Supervision Agreement) agrees with the
Builder that the damage shall not be repaired and that the Novated Building Contract shall be deemed to be rescinded and all amounts paid by the Lessor thereunder (together with interest thereon) be refunded by the Builder or, where no agreement is
reached by the Builder and the Supervisor, the date falling six (6) months after the occurrence of the Total Loss; 

  

	 	(c)	where the obligation of the Lessor to acquire the Ship and lease it to the Lessee ends pursuant to clause 18.1 by virtue of the service by the Lessor of a notice on the Lessee, the
date stipulated in that notice; 

  

	 	(d)	where a Further Novation Event occurs, the date stipulated in the notice served on the Replacement Purchaser by the Lessor pursuant to clause 18.3.1; and 

 

	 	(e)	where the obligation of the Lessor to acquire the Ship and lease it to the Lessee ends pursuant to clause 24.2, the date specified by the Lessor in the notice served on the Lessee
pursuant to clause 24.1; 

 “Pre-Tax Loss Letter” means the letter so called issued or to be issued in respect
of any pre-tax loss relating to this Agreement addressed by the Lessor to the Lessee; 
 “Purchase Price” means the price for
the Ship payable by the Lessor under the Novation Agreement and the Novated Building Contract, which price shall be reduced by any amounts payable by the Builder to the Lessor under article III.2 (Adjustment of Contract Price - Speed),
article III.3 (Adjustment of Contract Price - Fuel Consumption), article III.4 (Adjustment of Contract Price - Deadweight), article III.5 (Adjustment of Contract Price - Container Capacity) of the Novated Building Contract, but
shall not be reduced by any amounts payable by the Builder to the Lessor under article III.1 (Adjustment of Contract Price - Delivery) of the Novated Building Contract; 

 “QEL” means the quiet enjoyment letter in respect of the Ship between the Lessor and the
Time Charterer; 
 “Recoverable VAT” means any amounts paid or payable by or on behalf of the Lessor in respect of Value
Added Tax which is not Irrecoverable VAT; 
 “Refund Guarantee” means the refund guarantee issued or, as the context may
require, to be issued by the Refund Guarantor in favour of the Lessor pursuant to the Novation Agreement; 
 “Refund
Guarantor” means National Agricultural Cooperative Federation, a company organised and existing in Korea, with its principal place of business at West Gate P.O.BOX 50, Seoul, Korea; 
 “Relevant Event” means any Termination Event, Mandatory Prepayment Event or Further Novation Event, or any event which only with the
passage of time, the giving of any notice or the fulfilment of any other condition (or a combination thereof) would constitute a Termination Event, Mandatory Prepayment Event or Further Novation Event; 
 “Rental” has the meaning given to such term in the Financial Schedule; 
 “Replacement Manager” means any company which the Lessor may approve from time to time as the manager of the Ship pursuant to clause
10.11; 
 “Requisition Compensation” means all sums of money or other compensation from time to time payable in respect of
the Compulsory Acquisition of the Ship; 
 “Review Notification Date” means the date falling four (4) months after the
commencement of the Standby Lender Review Period; 
 “Revised Cash Flow” has the meaning given to that term in the Financial
Schedule; 
 “Saving on Funding Costs” has the meaning given to that term in the Financial Schedule; 
 “Security Interest” means: 
  

	 	(a)	a mortgage, charge (whether fixed or floating) or pledge, any maritime or other lien or any other security interest of any kind; 

  

	 	(b)	the rights of the claimant under an action in rem in which the ship concerned has been arrested or a writ has been issued or similar step taken; and 

  

	 	(c)	any arrangement entered into by a person (A) the effect of which is to place another person (B) in a position which is similar, in economic terms, to the position in which
person (B) would have been had person (B) held a security interest over an asset of person (A), but this paragraph (c) does not apply to a right of set-off or combination of accounts arising by operation of law or conferred by the
standard terms of business of a bank or financial institution and which has not been exercised; 

 “Ship” means the vessel currently under construction with the Builder pursuant to the
Novated Building Contract and having Builder’s Hull Number 1851 to be sold by the Builder to the Lessor pursuant to the Novated Building Contract and to be registered in the name of the Lessor as and from the Delivery Date and includes any
share or interest therein, as the same is more particularly described in Schedule 2 and includes its engines, machinery, boats, tackle, outfit, equipment, spare gear, fuel, consumable or other stores, and everything belonging or appurtenant to it
whether on board or ashore (including, for the avoidance of doubt, any depot spares and other spare parts and other such items purchased by the Lessor under the Novated Building Contract) together with any and all substitutions, replacements and
renewals of any of them and any and all substitutions therefor and replacements and renewals thereof and any additions thereto from time to time made in accordance with the provisions of this Agreement and any of the foregoing which, having been
removed from it, remain the property of the Lessor pursuant to this Agreement and any additions thereto which have not been removed and have become the Lessor’s property in accordance with clause 11.4; 
 “Ship’s Software” means all computer software which is required for the operation of the Ship, including, but not limited to,
navigation software; 
 “Sister Ship” and “Sister Ships” mean any or all (as the case requires) of the
vessels currently under construction with the Builder identified as Hull numbers 1852, 1853, 1854, and 1855; 
 “Sister Ship Lease
Agreements” means the lease agreements entered into on, or at any time after, the date of this Agreement in respect of each of the Sister Ships between the Lessor and the Lessee; 
 “Sister Ship Time Charters” means the time charters defined in each of the Sister Ship Lease Agreements as the “Time Charter”;

 “Sister Ship Transaction Documents” means the documents defined as “Transaction Documents” in each of the
Sister Ship Lease Agreements; 
 “SOLAS” means International Convention for the Safety of Life at Sea, 1974, with Protocol
1978 and Amendments of 1981, 1983, 1988, 1991, 1992, 1994, 1996, 1998, 2000, 2002, 2003 and 2004 as the same may be further amended or supplemented, consolidated or replaced from time to time; 
 “Standby Lender” means the Bank or such other company in the Lessor’s Group as shall be nominated by the Lessor for such purpose;

 “Standby Lender Review” means the review which the Standby Lender is entitled to undertake pursuant to clause 16.1;

 “Standby Lender Review Period” means the period commencing on the date falling six (6) months prior to the Lease
Period End Date applicable to whichever of the Ship and the Sister Ships is the first vessel to be Delivered (as defined in this Agreement or, as the case may be, the relevant Sister Ship Agreement), and expiring on the Review Notification Date;

 “Standby Loan Transaction” means a transaction with the characteristics described in Schedule 10; 

 “Subsidiary” means: 
  

	 	(a)	in respect of a person incorporated or formed outside England and Wales, any company or entity directly or indirectly controlled by such person, and for this purpose
“control” means either the ownership of more than fifty (50) per cent. 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; and 

  

	 	(b)	in respect of a person incorporated in England and Wales, a subsidiary within the meaning of Section 736 Companies Act 1985; 

 “Supervision Agreement” means the supervision agreement entered or to be entered into in respect of the construction of the Ship and made
between (i) the Supervisor and (ii) the Lessor; 
 “Supervision Costs” means the amount payable by the Lessor to
the Supervisor under clause 4.5(b) of the Supervision Agreement; 
 “Supervisor” means the Approved Manager, in its capacity
as the “Supervisor” pursuant to the Supervision Agreement; 
 “Tax” includes all present and future taxes, levies
(whether by deduction, withholding or otherwise), imposts, duties, or charges of a similar nature (or any amount payable on account of or as security for any of the foregoing), including, but not limited to, income tax, corporation tax, VAT, stamp
duty, customs and other impost or export duty or excise duty, imposed by any statutory, governmental, national, international, state or local taxing or fiscal authority, body or agency or department whatsoever or any central bank, monetary agency or
European Union institution, whether in the United Kingdom or elsewhere together with interest thereon and any additions, fines, surcharges, penalties in respect thereof or relating thereto and “Taxes” and “Taxation”
shall be construed accordingly; 
 “Tax Consultation Letter” means the letter issued or to be issued in relation to this
Agreement regulating the conduct of matters between the Lessor and HMRC or any other tax authority in respect of the transactions represented by the Transaction Documents addressed by the Lessor to the Lessee; 
 “Tax Written Down Value” has the meaning given to such term in the Financial Schedule; 
 “Technical Note Letter” means the letter agreement of that name issued or to be issued in relation to this Agreement addressed from the
Lessor to the Lessee; 
 “Termination Amount” means the aggregate of the Termination Sum and the Termination Fee (if any);

 “Termination Date” means, as the context may require, the Pre-Delivery Termination Date or the Lease Termination Date;

 “Termination Event” means any of the events or circumstances described in clause 17.1; 
 “Termination Fee” has the meaning given in the Financial Schedule; 

 “Termination Payment Date” means: 
  

	 	(a)	in the case of a voluntary termination pursuant to clause 2.2, the Pre-Delivery Termination Date; 

  

	 	(b)	in the case of a voluntary termination pursuant to clause 2.5, the Lease Termination Date; 

  

	 	(c)	in the case of any termination of the Lessor’s obligation to acquire the Ship and to lease the Ship to the Lessee pursuant to clause 18.1, the Pre-Delivery Termination Date;

  

	 	(d)	in the case of any termination of the leasing of the Ship pursuant to clause 18.1, the Lease Termination Date; 

  

	 	(e)	in the case of any termination of the Lessor’s obligation to acquire the Ship and to lease the Ship to the Lessee pursuant to clause 18.2, the Pre-Delivery Termination Date;

  

	 	(f)	in the case of any termination of the leasing of the Ship pursuant to clause 18.2, the Lease Termination Date; and 

  

	 	(g)	in the case of the occurrence of a Further Novation Event, the Pre-Delivery Termination Date; and 

  

	 	(h)	in the case of a Total Loss, the Total Loss Payment Date; 

 “Termination Sum” has the meaning given to such term in the Financial Schedule; 
 “Time Charter”
means the time charter agreement in respect of the Ship dated on or about the date hereof and entered into between the Guarantor and the Time Charterer; 
 “Time Charterer” means Kawasaki Kisen Kaisha, Ltd., a company incorporated in Japan; 
 “Total Loss” means: 
  

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

  

	 	(b)	any Compulsory Acquisition of the Ship; or 

  

	 	(c)	the hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of the Ship (other than where the same amounts to the Compulsory Acquisition of the Ship) by
any Government Entity, or by persons acting or purporting to act on behalf of any Government Entity, or by persons acting or purporting to act on behalf of any Government Entity, unless the Ship be released and restored to the Lessee or the Lessor
from such hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation within sixty (60) days after the occurrence thereof; or 

  

	 	(d)	the expiry of one (1) year (or such longer period as the Lessor and the Lessee may agree) after the Ship shall have been requisitioned for hire or use by a Government Entity or
other competent authority, whether de jure or de facto; 

 “Total Loss Date” means: 
  

	 	(a)	in the case of an actual loss of the Ship, the date on which it occurred or, if that is unknown, the date when the Ship was last heard of; 

	 	(b)	in the case of a constructive, compromised, agreed or arranged total loss of the Ship, the earlier of: 

  

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

  

	 	(ii)	the date of any compromise, arrangement or agreement made by or on behalf of the Lessor with all of the relevant insurers of the Ship at the relevant time in which the said insurers
agree to treat the Ship as a total loss; and 

  

	 	(c)	in the case of a Compulsory Acquisition the date on which the requisition for title or other Compulsory Acquisition occurs; and 

  

	 	(d)	in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of the Ship (other than where the same amounts to Compulsory Acquisition of the
Ship) by any Government Entity, or by persons acting or purporting to act on behalf of any Government Entity, the date upon which the relevant hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation constitutes a Total
Loss (as stipulated by paragraphs (c) and (d) of the definition of “Total Loss”); 

 “Total Loss
Payment Date” means, following the occurrence of a Total Loss, the earliest of the following dates to occur: 
  

	 	(a)	the date falling 120 days after the Total Loss Date or such later date as the Lessor may agree; or 

  

	 	(b)	the date on which the Lessor receives the Total Loss Proceeds or any Requisition Compensation; 

 “Total Loss Proceeds” means the proceeds of any policy or contract of insurance arising in respect of a Total Loss actually and
unconditionally received by the Lessor following a Total Loss of the Ship; 
 “Total Vessel Cost” has the meaning given to
such term in the Financial Schedule; 
 “Transaction Companies” means the Lessee, the Guarantor, the Supervisor (but only for
so long as it owes any obligations to the Lessor under the Supervision Agreement), and the Replacement Purchaser (but only for so long as it owes any obligations to the Lessor under the Novation Agreement) and, in the singular, means any one of
them; 
 “Transaction Documents” means the Lease Documents, the Time Charter, the Lessor Parent Support Letters and any other
document, agreement, notice, acknowledgement, letter or instrument entered into, issued or given pursuant to the terms of, as a pre-condition of, or otherwise in connection with any of the foregoing and any other document, agreement,
acknowledgement, notice, letter or instrument designated as a Transaction Document by the Lessor and the Lessee; 
 “United
Kingdom” or “UK” means United Kingdom of Great Britain and Northern Ireland; 

 “US Transportation Tax” means the 4% Tax imposed by the US on a foreign
corporation’s US source gross transportation income for any tax year or any similar or equivalent Tax replacing or introduced in addition to the same; 
 “Value Added Tax” or “VAT” means: 
  

	 	(a)	value added tax of the United Kingdom as provided for in the VATA including legislation (delegated or otherwise) supplementary thereto, and any similar or substituted tax, or any
tax imposed, levied or assessed in the United Kingdom on added value or turnover; and 

  

	 	(b)	any similar tax imposed, levied or assessed in any jurisdiction outside the United Kingdom; and 

 “VATA” means the Value Added Tax Act 1994; 
  

	1.2	Construction of certain terms 

 In this Agreement:

 “consent” includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration, notarisation
and legalisation; 
 “excess risks” means the proportion of claims for general average, salvage and salvage charges not
recoverable under the hull and machinery policies or the ordinary collision clause in respect of the Ship in consequence of her insured value being less than the value at which the Ship is assessed for the purpose of such claims; 
 “law” includes any form of delegated legislation, any order or decree, any treaty or international convention and any regulation or
resolution of the Council of the European Union, the European Commission, the United Nations or its Security Council; 
 “person” includes any company or unincorporated legal entity, any state, political sub-division of a state and local or municipal authority and any international organisation and reference to any person shall include its
successors, permitted assignees and permitted transferees in accordance with their respective interests; 
 “policy” in
relation to any insurance includes a slip, cover note, certificate of entry or other documents evidencing the contract of insurance or its terms; 
 “protection and indemnity risks” means the usual risks covered by a full owner’s entry in a protection and indemnity association which is a member of the International Group of Protection and Indemnity Associations,
including pollution risks and the proportion (if any) of any sums payable to any other person or persons in case of collision which are not recoverable under the hull and machinery policies; 
 “regulation” includes, without limitation, any regulation, rule, official directive, request or guideline (either having the force of law
or compliance with which is customary in the ordinary course of business of the party concerned) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; and

 “war risks” includes the risk of mines, all risks covered by the English Institute War
and Strikes Clauses or any equivalent provision and all insurable risks excluded under the war and terrorism risks exclusion clauses or equivalent under the rules of the protection and indemnity club or association with whom the protection and
indemnity risks cover is placed from time to time. 
  

	1.3	Meaning of “month” 

 A period of one or
more “months” ends on the day in the relevant calendar month numerically corresponding to the day of the calendar month on which the period started (the “numerically corresponding day”), but: 
  

	1.3.1	on the Business Day following the numerically corresponding day if the numerically corresponding day is not a Business Day or, if there is no later Business Day in the same calendar
month, on the Business Day preceding the numerically corresponding day; or 

  

	1.3.2	on the last Business Day in the relevant calendar month, if the period started on the last Business Day in a calendar month or if the last calendar month of the period has no
numerically corresponding day; 

 and “month” and “monthly” shall be construed
accordingly. 
  

	1.4	General interpretation 

 In this Agreement:

  

	1.4.1	references in clause 1.1 to a document being in the form of a particular Schedule include references to that form with any modifications to that form which the Lessor and the Lessee
agree in writing; 

  

	1.4.2	references to, or to a provision of, a Transaction Document or any other document are references to it as amended or supplemented, whether before the date of this Agreement or
otherwise with the consent of the Lessor; 

  

	1.4.3	references to, or to a provision of, any law include any amendment, extension, re-enactment or replacement, whether made before the date of this Agreement or otherwise;

  

	1.4.4	words denoting the singular number shall include the plural and vice versa; 

  

	1.4.5	references to clauses and Schedules are, unless otherwise stated, references to clauses of and schedules to this Agreement; 

  

	1.4.6	clauses 1.1 to 1.4 apply unless the contrary intention appears; and 

  

	1.4.7	in relation to an entity which is not a corporation, reference to “incorporated” and cognate expressions shall be deemed to be references to its formation and
establishment under applicable law. 

  

	1.5	Headings 

 The clause headings shall not affect the
interpretation of this Agreement. 

	1.6	Conflicts 

 If any conflict arises or exists between
the provisions of this Agreement and any of the other Lease Documents, the provisions of this Agreement shall prevail. 
  

	2	Lease 

  

	2.1	Lease Period 

 Subject to and upon the terms and
conditions of this Agreement, the Lessor agrees to lease to the Lessee, and the Lessee agrees to lease from the Lessor, and will be entitled to the full possession and use of, the Ship for a period commencing on the Delivery Date and ending on the
Lease Period End Date. 
  

	2.2	Voluntary termination prior to Delivery 

  

	2.2.1	If at any time prior to Delivery: 

  

	 	(a)	the transaction contemplated by the Transaction Documents has become Economically Burdensome; or 

  

	 	(b)	the Lessee has determined that the transaction contemplated by the Transaction Documents has become Commercially Burdensome (as evidenced by a certificate issued by a director or
officer of the Lessee), 

 the Lessee shall be entitled to terminate the agreement by the Lessor to acquire the Ship pursuant to
the Novated Building Contract and to lease the Ship to the Lessee pursuant to this Agreement and the agreement by the Lessee to lease the Ship from the Lessor, by giving written notice to the Lessor in accordance with the provisions set out in
clauses 2.2.3 and 2.2.4 below. 
  

	2.2.2	The transaction contemplated by the Transaction Documents shall be regarded as being “Commercially Burdensome” when the Lessee determines that it is no longer
compatible with the commercial strategy of the Lessee and as a consequence the Lessee has good commercial reasons for wishing to terminate the transaction, provided however that the Lessee shall not be deemed to have a good commercial reason for
terminating the transaction if primarily motivated by, or the termination is for the purposes of, the Lessee entering into any alternative financing arrangement with respect to the Ship with any other financier. 

  

	2.2.3	Any notice given by the Lessee pursuant to this clause 2.2 shall be irrevocable and shall state whether it is given pursuant to clause 2.2.1(a) or clause 2.2.1(b) and, in the case
of a notice given pursuant to clause 2.2.1(b) above, shall attach a certificate from a director or officer of the Lessee certifying that the transaction contemplated by the Transaction Documents is Commercially Burdensome, which shall be conclusive
as to the opinion of the Lessee. 

  

	2.2.4	The Lessee shall give at least: 

  

	 	(a)	five (5) Business Days notice of the proposed Pre-Delivery Termination Date in the case of any termination pursuant to clause 2.2.1(a); and 

	 	(b)	thirty (30) Business Days notice of the proposed Pre-Delivery Termination Date in the case of any termination pursuant to clause 2.2.1(b); 

  

	2.2.5	If a Mandatory Prepayment Event shall occur prior to Delivery or a Further Novation Event shall occur in each case which is continuing, the Lessor may exercise its rights under
clause 18.2 or, as the case may be, clause 18.3 to treat the occurrence of such event as constituting a voluntary termination by the Lessee in accordance with this clause 2.2, whereupon the provisions of clause 2.2.6 and 2.3 shall apply.

  

	2.2.6	On the applicable Termination Payment Date, the Lessee shall pay to the Lessor an amount equal to the Termination Amount as at that date as determined in accordance with
clause 18.4, together with all other moneys then due and payable but unpaid by the Lessee to the Lessor under the Lease Documents. 

  

	2.3	Further novation on voluntary termination before Delivery 

 If (a) the Lessee gives notice pursuant to clause 2.2 or (b) the Lessee is deemed to have given notice pursuant to clause 2.2 in accordance with the provisions of clause 18.3 to terminate the agreement to lease the Ship under this
Agreement during the Construction Period or (c) the Lessor gives notice pursuant to clause 18.1 to terminate the agreement to lease the Ship during the Construction Period (and (in the case of clause 2.3(a)) the Lessor has received payment of
all amounts owing to the Lessor by the Lessee under clause 18.4 in cleared funds in accordance with the payment instructions therefor and without conditions attached) the Lessor shall promptly give a Further Novation Notice to the Replacement
Purchaser and the other parties to the Novation Agreement pursuant to clause 6.1 of the Novation Agreement and to the Refund Guarantor if obliged to do so pursuant to the Refund Guarantee. 
  

	2.4	Continuation of Construction Period 

 Notwithstanding anything to the contrary contained in this Agreement, if the Lessee gives notice or is deemed to have given notice to terminate the agreement to lease the Ship under this Agreement during the Construction Period pursuant to
clause 2.2, the Construction Period will continue until and end on the date on which the further novation referred to in clause 2.3 occurs. 
  

	2.5	Voluntary termination after Delivery 

  

	2.5.1	At any time after Delivery the Lessee is entitled to terminate the leasing of the Ship by the Lessor to the Lessee under this Agreement by giving written notice to the Lessor.

  

	2.5.2	If: 

  

	 	(a)	the transaction contemplated by the Transaction Documents has become Economically Burdensome, the Lessee shall give at least five (5) Business Days notice of the proposed Lease
Termination Date; and 

  

	 	(b)	in all other circumstances, the Lessee shall give at least thirty (30) days notice of the proposed Lease Termination Date. 

  

	2.5.3	Any notice given by the Lessee pursuant to clause 2.5.1 and 2.5.2 shall, subject to clause 2.5.7: 

  

	 	(a)	be irrevocable; 

	 	(b)	state whether it is given pursuant to clause 2.5.2(a) or 2.5.2(b); and 

  

	 	(c)	be given in respect of an imminently proposed sale. 

  

	2.5.4	If a Mandatory Prepayment Event shall occur which is continuing, the Lessor may exercise its rights under clause 18.2 to treat the occurrence of such event as constituting a
voluntary termination by the Lessee in accordance with this clause 2.5, whereupon the provisions of clause 2.5.6 and 2.5.8 and clause 2.6 shall apply. 

  

	2.5.5	If the Lessor issues a notice to the Lessee pursuant to clause 24 to terminate the Lease Period, such termination shall be treated as constituting a voluntary termination in
accordance with this clause 2.5 whereupon the provisions of clauses 2.5.6 and 2.5.8 and clause 2.6 shall apply. 

  

	2.5.6	On the applicable Termination Payment Date, the Lessee shall pay to the Lessor an amount as determined in accordance with the provisions of clause 18.4. 

  

	2.5.7	Notwithstanding the service by the Lessee of a notice terminating the leasing of the Ship in accordance with clauses 2.5.1 and 2.5.2, if, after the service of such notice, the
Lessee fails to pay to the Lessor the applicable Termination Amount payable by the Lessee pursuant to, and determined in accordance with, clause 18.4 and all other amounts then due to the Lessor which are payable by the Lessee in each case as at the
proposed Lease Termination Date, the leasing of the Ship shall continue as if such notice had not been issued. 

  

	2.5.8	If the Lessee is treated as having given a notice terminating the leasing of the Ship pursuant to clause 2.5.4 or 2.5.5 and the Lessee fails to pay to the Lessor the applicable
Termination Amount payable by the Lessee pursuant to, and determined in accordance with, clause 18.4 and all other amounts then due to the Lessor which are payable by the Lessee as at the applicable Lease Termination Date, the leasing of the Ship
shall nevertheless terminate on the Lease Termination Date. 

  

	2.6	Continuation of Lease Period 

 Notwithstanding
anything to the contrary in this Agreement, from the Lease Termination Date until the earlier of (i) the date on which the Ship is delivered to a purchaser of the Ship following a sale pursuant to clause 2.8 and (ii) the date on which the
Ship is redelivered to the Lessor pursuant to clause 15 the Lessee shall continue in possession of the Ship as the Lessor’s agent under a bailment terminable by the Lessor at will with no right of quiet enjoyment as between the Lessor and the
Lessee (but otherwise without prejudice to its rights under clause 2.8 and to receive rebates of Rental under this Agreement); and as a term of its appointment as the Lessor’s agent it shall continue to perform all its obligations under this
Agreement as if the Lease Period were still continuing. 
  

	2.7	Terms and Conditions of sale 

 Any sale of the Ship
pursuant to clause 2.8 (but not, for the avoidance of doubt, pursuant to clause 2.9) will be on the following terms and conditions and shall otherwise be completed in accordance with the provisions set out below: 
  

	2.7.1	the sale will be at a cash price payable by the purchaser to the Lessor in full on completion of that sale in Dollars or such other currency as the Lessor may agree (such agreement
not to be unreasonably withheld or delayed); 

	2.7.2	the sale will be on the best terms (including price) which, in the opinion of a reputable firm of independent ship valuers and surveyors experienced in the container carrier sector,
are reasonably obtainable on the open market on an “as is, where is” basis taking into account where continuing, the Time Charter and any charter of the Ship at that time which shall have been notified to the Lessor and approved by the
Lessor pursuant to clause 10.17 and which is intended to continue (and is capable of continuing) after the date of sale and the termination of the bailment to the Lessee under this Agreement; 

  

	2.7.3	the sale may be to any person other than: 

  

	 	(a)	the Time Charterer, the Lessee or any other person to whom the Ship has at any time been leased or sub-leased; or 

  

	 	(b)	any person who is purchasing in trust for any of the parties referred to in (a); or 

  

	 	(c)	any other person to whom, by virtue of a Change of Law occurring after the date of this Agreement, a sale is certified by the Lessor (the “Lessor’s
Certificate”) as being reasonably likely to result in the Lessor losing with retrospective effect its right to claim capital allowances on or by reference to expenditure previously incurred on the provision of the Ship provided however that
if the Lessee does not agree with the Lessor’s Certificate it shall be entitled to require the Lessor to obtain promptly a written opinion from leading tax counsel (“Counsel”) (in accordance with the provisions of clause
2.7.3(g)) stating whether or not the Lessor’s Certificate is correct; 

  

	 	(d)	if Counsel is of the opinion that the Lessor’s Certificate is incorrect, then the Lessee shall be entitled to sell the Ship to any person other than such persons as are
specified in (a) or (b) above, without the provision of any further security to the Lessor; 

  

	 	(e)	if Counsel is of the opinion that the Lessor’s Certificate is correct, the Lessee shall be entitled to sell the Ship to any person other than such persons as are specified in
(a) and (b) above, conditional upon the Lessee having first provided to the Lessor additional security of such appropriate amount and on such terms as the Lessor shall determine (acting in good faith) to be necessary to secure it (on an
after-tax basis) against any additional cost or expense (including Tax) arising as a result of the Lessor losing with retrospective effect its right to claim capital allowances on or by reference to expenditure previously incurred on the provision
of the Ship, such security to be released to the Lessee to the extent not required to meet any cost or expense on the End Date (as defined in the Financial Schedule); 

  

	 	(f)	 if the Lessee notifies the Lessor in writing that it does not require the Lessor to obtain an opinion from Counsel, it shall be entitled to sell the Ship to any
person other than such persons as are specified in (a) or (b) above, provided that it shall have first provided to the Lessor additional security of such amount and on such terms as the Lessor shall determine (acting in good faith) to be
necessary to secure it (on an after-tax basis) against any additional cost or expense (including Tax) arising as a result of the Lessor losing with retrospective effect its right to claim 

	 	 
capital allowances on or by reference to expenditure previously incurred on the provision of the Ship, such security to be released to the Lessee to the
extent not required to meet any such cost or expense on the End Date (as defined in the Financial Schedule); 

  

	 	(g)	the Lessee shall be entitled to require the Lessor to obtain the opinion of Counsel chosen for the foregoing purpose by agreement between the Lessor and the Lessee (or in the
absence of agreement by the Chairman of the Bar Council whom the Lessor and the Lessee shall instruct for that purpose). A consultation with Counsel shall be arranged expeditiously after the Lessor receives notification from the Lessee that it
requires Counsel’s opinion on the Lessor’s Certificate. Counsel shall be instructed on the basis of instructions prepared by the Lessor’s legal advisers in consultation with the Lessee and its legal advisers (with the intent that the
Lessee and its legal advisers shall have a reasonable opportunity to consider and contribute to such instructions). The Lessee and its legal advisers shall be entitled to attend any consultation with Counsel save that the Lessee and its professional
advisers shall withdraw from such consultation at the request of the Lessor for so long as, in the reasonable opinion of the Lessor, matters which are confidential or of a sensitive nature having regard to the business of the Lessor, or which relate
to the confidential affairs of a third party, are to be discussed during such consultation. The cost of Counsel’s opinion shall be for the account of the Lessee save where Counsel is of the opinion that the Lessor’s Certificate is
incorrect, in which case it shall be for the account of the Lessor; 

  

	2.7.4	the terms of the sale will include a warranty on the part of the Lessor that the Lessor will pass such title to the Ship as the Lessor has acquired pursuant to the Novated Building
Contract free of Lessor’s Security Interests, but otherwise shall be without any representation, recourse or warranty whatsoever to or on the part of the Lessor; 

  

	2.7.5	the Lessee, for its own account, may give any warranties reasonably required by the purchaser of the Ship in accordance with market practice for the sale of vessels of a similar
type, design and age as the Ship; 

  

	2.7.6	the terms of the sale will include, subject to the consent of the Builder pursuant to the Novated Building Contract, an assignment by the Lessee of any unexpired portion of any
assignable warranties and indemnities referred to in clause 6.5; 

  

	2.7.7	the sale will be on an “as is, where is and with all faults” basis and governed by the laws of England; 

  

	2.7.8	if the proposed sale provides for delivery of the Ship by the Lessor, such obligation is conditional on the Ship first being redelivered to the Lessor; 

  

	2.7.9	the sale will be for delivery on, or if for any reason a sale is not possible on that date as soon as reasonably practicable after, the termination date specified in the notice
served by the Lessee pursuant to clause 2.5; 

  

	2.7.10	the sale will exclude, so far as permitted by the laws of England and any other laws governing or applicable to the sale of the Ship, all liability of the Lessor, in contract or
tort, in relation to the Ship to the same extent as such liabilities are excluded by clause 6 except for the warranty given by the Lessor referred to in clause 2.7.4; and 

	2.7.11	if the Ship is at the date of entry into any contract for the sale of the Ship subject to any requisition for hire or (where continuing) the Time Charter or any other chartering of
the Ship which shall have been notified to, and approved by the Lessor pursuant to clause 10.17 and which is continuing as at such date notwithstanding the termination of the bailment to the Lessee the sale will be subject to such requisition or any
such other chartering of the Ship. 

  

	2.8	Sales agency 

  

	2.8.1	In respect of any sale of the Ship to be conducted: 

  

	 	(a)	following a termination of the leasing of the Ship pursuant to clause 2.5.2(a) or 2.5.2(b) (Voluntary Termination after Delivery) or any deemed voluntary termination of the leasing
of the Ship pursuant to clause 24.3; or 

  

	 	(b)	on the Lease Period End Date; or 

  

	 	(c)	following any termination of the Lease Period pursuant to clause 18.1 (Termination Rights); or 

  

	 	(d)	following any termination of the Lease Period pursuant to clause 18.2 (Mandatory Prepayment); 

 the Lessor irrevocably appoints the Lessee to act as the agent of the Lessor for the purpose of negotiating the sale of the Ship on the terms set out in
clause 2.7 subject to and upon the limitations set out in clauses 2.8.4 to 2.8.8 and the Lessor agrees that, until termination of such agency pursuant to clause 2.8.3 or 2.8.4, the Lessee shall continue to be empowered to negotiate a sale of the
Ship, which shall then be concluded in the manner described in clauses 2.8.6 and 2.8.7. 
  

	2.8.2	The appointment of the Lessee as the sales agent of the Lessor shall commence on: 

  

	 	(a)	the date on which the Lessee notifies the Lessor that it wishes to terminate the leasing of the Ship in accordance with clause 2.2 or 2.5.2; and 

  

	 	(b)	on the date on which the Lessee is deemed to have exercised its rights of voluntary termination in accordance with clauses 2.5.4 or 2.5.5 following the issue by the Lessor of a
notice pursuant to any of clauses 18.2 or 24; and 

  

	 	(c)	in the case of a termination of the leasing by the Lessor pursuant to clause 18.1, on the date on which the Lessor serves notice on the Lessee pursuant to clause 18.1; and

  

	 	(d)	in any other circumstance, on the fourth anniversary of the Delivery Date, 

 and shall terminate on the earlier of (i) the date on which the Net Sale Proceeds are actually and unconditionally received and applied in accordance with clause 2.10 or (ii) the date on which the Lessor
terminates the appointment of the Lessee pursuant to clause 2.8.3 below or (iii) in any event, and without any action being required by the Lessor, the fifth anniversary of the Delivery Date. 
  

	2.8.3	The Lessor shall be entitled to terminate the sales agency under clause 2.8.1 or, as the case may be, clause 2.8.2 by means of written notification to the Lessee:

  

	 	(a)	at any time after notice is given under clause 18.1 or clause 18.2 and in each such case where the Lessee shall have failed to pay to the Lessor the Termination Amount and any other
sums then due to the Lessor which are payable by the Lessee pursuant to clause 18.4 and such failure continues unremedied for a period of five (5) Business Days, unless the notice pursuant to 18.1 is given in respect of the occurrence of any of
the events referred to in clauses 17.1.9 or 17.1.11 in relation to any of the Lessee or the Guarantor in which case the Lessor shall be entitled to terminate the sales agency with immediate effect; and 

	 	(b)	subject to paragraph (c) below, the date falling six (6) months after the applicable Lease Termination Date, if no sale of the Ship has been completed by that time; and

  

	 	(c)	the date falling one day before the fifth anniversary of the Delivery Date, if no sale of the Ship has been completed by that time; 

 whereupon in the case where the Lessee’s sales agency rights have been terminated in accordance with the provisions of this clause 2.8.3, the Lessor
shall be entitled to repossess the Ship in accordance with clause 18.5 and the provisions of clause 2.9 shall apply. 
  

	2.8.4	The appointment of the Lessee as the Lessor’s sales agent shall be on the basis that the Lessee is the Lessor’s sole and exclusive agent from the date on which it is
appointed until 45 days prior to the fifth anniversary of the Delivery Date at which point the Lessee shall continue as agent on a non-exclusive basis and the provisions of clause 2.8.10 shall apply. 

  

	2.8.5	The appointment of the Lessee as sales agent will constitute a full discharge by the Lessor of its obligations under clause 18.6 to use reasonable endeavours to sell the Ship for
the period while such appointment is continuing. 

  

	2.8.6	The Lessee’s authority is limited to the extent that the Lessee is not authorised to sell the Ship or to approve or execute on behalf of the Lessor any document relating to the
sale of the Ship for which the Lessor’s specific written authority will be required, which authority will not be unreasonably withheld or delayed where: 

  

	 	(a)	the sale complies with the provisions of clause 2.7; and 

  

	 	(b)	the sale price of the Ship exceeds the Tax Written Down Value. 

  

	2.8.7	Subject to clause 2.8.6 the Lessor agrees that, at the cost and expense of the Lessee, on reasonable notice it will complete the sale of the Ship and it shall execute any agreement,
protocol of delivery and acceptance and/or bill of sale for, and any other documentation reasonably requested by the Lessee in respect of, the sale of the Ship which complies with the provisions of clause 2.7. 

  

	2.8.8	The Lessee will supply the Lessor with details of any offer received and keep the Lessor fully informed of the status of any negotiations for the sale of the Ship.

  

	2.8.9	The Lessee is entitled to delegate its rights and duties under this clause 2.8 to any Guarantor Group Member without the approval of the Lessor or to such other person as the Lessor
may approve, such approval not to be unreasonably withheld or delayed in relation to a first-class independent shipbroker and, in each case, on the basis that no further delegation shall be permitted without the Lessor’s prior written approval.

	2.8.10	In the event that by the date falling 45 days prior to the fifth anniversary of the Delivery Date (the “Non-Exclusive Date”), no arrangements have been concluded
for the sale of the Ship on or before the Lease Period End Date and, in the opinion of the Lessor, no such arrangements are likely to be concluded, and subject to the sales agency not having terminated earlier under clause 2.8.3 prior to the
Non-Exclusive Date, the Lessee will, if so required by the Lessor or the Lessee may, on notice to the Lessor, arrange a public auction of the Ship as soon as reasonably practicable after the Non-Exclusive Date and in any event by no later than the
fifth anniversary of the Delivery Date (the “Auction Sale Date”). For the avoidance of doubt, notwithstanding that the Lessee is arranging an auction in accordance with this clause 2.8.10 the Lessee may nevertheless continue as the
Lessor’s sales representative to endeavour to arrange for a private treaty sale of the Ship provided the same is completed by the Auction Sale Date and complies with the terms of clauses 2.7 and 2.8. The Lessor and the Lessee or any nominees or
designee of either of them may bid at such auction and any sale resulting therefrom shall constitute a sale of the Ship if it otherwise complies with the other provisions of this Agreement. 

  

	2.9	Sale of the Ship following any termination of the Lessee’s sales agency rights 

 If the Lessee’s right to act as sales agent is terminated pursuant to clause 2.8.2 or 2.8.3, the Lessor (as between the Lessor and the Lessee) shall
have the sole right to determine the means, timing and the terms of the sale of the Ship (including by public auction) and clause 2.7 shall not apply to any such sale. 
  

	2.10	Application of Net Sale Proceeds 

 Upon the Ship
being delivered to and accepted by a purchaser of the Ship, the leasing of the Ship under this Agreement shall terminate and the Net Sale Proceeds shall be applied as follows: 
 FIRST: in retention by the Lessor of an amount equal to 0.01% of the Net Sale Proceeds; 
 SECOND: in or towards payment to the Lessor of amounts equal to all or any part of the Termination Amount which, as at the date of the receipt by the
Lessor of the Net Sale Proceeds, has not been paid to the Lessor by or on behalf of the Lessee; 
 THIRD: in or towards settlement of any
other amounts then due and payable but unpaid by the Lessee to the Lessor under the Transaction Documents and any amounts then due and payable but unpaid by the Lessee to the Lessor under the Sister Ship Transaction Documents; and 
 FOURTH: the remainder in payment to the Lessee by way of rebate of Rental. 
  

	2.11	Shortfalls 

 If the Net Sale Proceeds fall short of
the aggregate of the amounts payable by the Lessee and described in FIRST, SECOND and THIRD of clause 2.10 the Lessee, on the date of receipt by the Lessor of the Net Sale Proceeds, shall pay to the Lessor an amount equal to the amount of that
shortfall by way of additional Rental. 
  

	2.12	Payments to Lessee 

 Any payment to the Lessee under
clause 2.10 in accordance with the paragraph entitled “FOURTH” shall be made reasonably promptly but in any event within five (5) Business Days after the date of actual and unconditional receipt by the Lessor of the Net Sale Proceeds.

	2.13	Termination of obligation to pay Rental 

 With
effect on and from the date of the Ship being delivered to and accepted by a purchaser following a sale of the Ship or the redelivery of the Ship pursuant to clause 15.1, the Lessee shall cease to be liable to pay Rental under this Agreement but
without prejudice to the Lessee’s accrued and contingent obligations pursuant to this Agreement including, without limitation, paragraph 5 of the Financial Schedule. 
  

	2.14	Standby Loan 

 In the event that the Lessee has
given a notice of termination pursuant to clauses 2.2.1(a) or 2.5.2(a), and has also given a corresponding notice under clauses 2.2.1(a) or 2.5.2.(a) of each of the Sister Ship Agreements specifying the same Lease Termination Date (or, as the case
may be, Pre-Delivery Termination Date), the Lessee shall be entitled to require that the Lessor procures that the Standby Lender enters into a Standby Loan Transaction in respect of the Ship and all of the Sister Ships (but not some only) and,
subject to the Standby Lender first being indemnified by the Lessee in respect of its costs, the Standby Lender and the Lessee shall in good faith endeavour to conclude the Standby Loan Transaction on such Lease Termination Date (or, as the case may
be, Pre-Delivery Termination Date) or as soon as reasonably practicable thereafter. 
  

	3	Conditions Precedent generally and to payment of Instalments and Delivery 

  

	3.1	Pre-delivery conditions to be fulfilled by Lessee 

  

	3.1.1	All of the obligations of the Lessor under this Agreement and the obligations of the Lessor under the Novation Agreement and the Supervision Agreement including to pay the First
Instalment are subject to the receipt by the Lessor of the documents described in Part A of Schedule 4 and the documents described in paragraph 5 of Part B of Schedule 4 in form and substance satisfactory to the Lessor not less than three
(3) Business Days before the First Instalment Date and in any event on or before 31 December 2007 or such other date to be agreed between the Lessee and Lessor. 

  

	3.1.2	The Lessor’s obligation under this Agreement to pay the Second Instalment is subject in addition to receipt by the Lessor of the documents described in Part B of Schedule 4 in
form and substance satisfactory to the Lessor not less than three (3) Business Days before the Second Instalment Date. 

  

	3.2	Further Conditions to be fulfilled by Lessee in respect of each Instalment 

 The obligations of the Lessor to pay any Instalment and, in the case of the Final Instalment, to lease the Ship to the Lessee under this Agreement are further subject to the further conditions that: 
  

	3.2.1	the Lessor shall have received an Instalment Request not later than 11:00 a.m. (London time) on the third Business Day (in the case of the First and Second Instalments) prior to the
relevant proposed date for payment of that Instalment by the Lessor pursuant to the Novation Agreement or, as applicable, the Novated Building Contract and the sixth Business Day (in the case of the Final Instalment) prior to the Delivery Date (or
in any such case, such shorter period as the Lessor and the Lessee shall agree); and 

	3.2.2	as at the Effective Date and each Instalment Date (including the Delivery Date): 

  

	 	(a)	no Relevant Event has occurred which is continuing; and 

  

	 	(b)	each of the representations and warranties contained in clause 19 of this Agreement and in clause 4 of the Guarantee is then true and correct by reference to the facts and
circumstances then existing. 

  

	3.3	Delivery conditions and covenants to be fulfilled by Lessee 

  

	3.3.1	The obligation of the Lessor to pay the Final Instalment pursuant to article II of the Novated Building Contract and the Supervision Costs on the Delivery Date is subject to the
receipt by the Lessor of the documents described in Part C of Schedule 4 in form and substance satisfactory to the Lessor not less than four (4) Business Days before the Delivery Date (or such shorter period as the Lessor and the Lessee shall
agree). 

  

	3.3.2	The Lessee undertakes to provide to the Lessor such of the documents described in Part D of Schedule 4 in form and substance satisfactory to the Lessor as are available no less than
two (2) Business Days before the Delivery Date. The Lessee undertakes to provide to the Lessor the remainder of the documents described in Part D of Schedule 4 in form and substance satisfactory to the Lessor on or before the Delivery Date,
save for such of them as may only be available upon Delivery (which for the avoidance of doubt the Lessee acknowledges should be limited to the protocol of delivery and acceptance to be delivered pursuant to the Novated Building Contract and the
documents listed at item 8 of Part D of Schedule 4). 

  

	3.3.3	The Lessee shall keep the Lessor fully advised of the anticipated date of delivery of the Ship. 

  

	3.4	Pre-delivery conditions to be fulfilled by Lessor 

 The obligations of the Lessee under this Agreement are subject to the receipt by the Lessee of the documents described in Schedule 5 in form and substance satisfactory to the Lessee not less than two (2) Business Days prior to the date
specified in clause 3.1 unless waived by the Lessee in writing to the extent not so satisfied. 
  

	3.5	Further Conditions to be fulfilled by Lessor 

 During the Construction Period the Lessor shall comply with the terms of the Novation Agreement, the Supervision Agreement and the Novated Building Contract and, subject to no Relevant Event having occurred and the Lessee not having
exercised its rights under clause 2.2, the Lessor shall not: 
  

	3.5.1	terminate, cancel, rescind or treat as repudiated the Novation Agreement and/or the Supervision Agreement, and/or the Novated Building Contract; or 

  

	3.5.2	effect, grant or agree any amendment, variation, waiver or release in respect of the obligations of the Builder under the Novated Building Contract or assign or transfer its rights
or obligations under the Novated Building Contract other than in accordance with the terms of the Novation Agreement or the Supervision Agreement. 

	3.6	Waivers 

 The requirements of clauses 3.1, 3.2 and
3.3 which are for the benefit of the Lessor alone, may be waived by the Lessor in whole or in part and with or without conditions and, if the Lessor agrees to give such a waiver on terms that any condition may be fulfilled after the due date for its
fulfilment, the Lessee (unless the Lessor shall have expressly agreed otherwise in writing) shall procure that such condition is fulfilled within thirty (30) days after that due date (or such greater period as the Lessor may specify in
writing), and the Lessor shall be entitled to treat any failure by the Lessee to procure the fulfilment of any such condition as a Termination Event. 
  

	3.7	Payment of Purchase Price etc. 

 Subject to
satisfaction of the relevant conditions referred to in clauses 3.1, 3.2 and 3.3 and to the satisfaction of the conditions set out in clause 3.11, in each case at the time then due or agreed to be due, the Lessor agrees: 
  

	3.7.1	to pay the First Instalment of the Contract Price pursuant to the Novation Agreement and each other Instalment of the Contract Price pursuant to the Novated Building Contract (in
each case in the amount and at the time described therein); 

  

	3.7.2	to pay when due to the Supervisor the Supervision Costs and the Buyer’s Supplies Reimbursement Amount payable pursuant to clause 4.5 of the Supervision Agreement;

  

	3.7.3	to pay on the First Instalment Date: 

  

	 	(a)	the Arrangement Fee; and 

  

	 	(b)	the Lessor’s Legal Costs and the costs of the Lessor’s insurance advisers, 

 each in an amount as agreed and in accordance with the payment details specified in the invoices received by the Lessor from the arranger and from the Lessor’s legal and insurance advisers on or before the First
Instalment Date; and 
  

	3.7.4	to pay the Lessor’s Underwriting Fee on the First Instalment Date. 

  

	3.8	No set-off 

 The Lessor is not entitled to set-off
or withhold from the Contract Price any amounts due or expressed to be due from the Lessee or any other Guarantor Group Member. 
  

	3.9	Alterations to payment amounts 

 Each of
(a) the Instalments of the Contract Price payable pursuant to the Novation Agreement (in the case of the First Instalment) and the Novated Building Contract (in the case of the other Instalments) shall be in the amounts set out in, or
calculated in accordance with, the Novation Agreement and/or (as the case may be) the Novated Building Contract and (b) the Supervision Costs and Buyer’s Supplies Reimbursement Amount payable in accordance with the Supervision Agreement
shall be in the amount set out in, or calculated in accordance with, the Supervision Agreement, in each such case as amended and supplemented from time to time in accordance with any relevant provisions of the Transaction Documents. 

	3.10	Contributions 

  

	3.10.1	The Lessor shall notify the Lessee if at any time the aggregate of the Lessor’s Total Expenditure has reached or, taking account of the next payment or payments in respect of
the Lessors’ Total Expenditure, will reach the Maximum Commitment and in circumstances where the aggregate of the Lessor’s Total Expenditure and the Lessor’s projected expenditure exceeds or is likely to exceed the Maximum Commitment
(a “Commitment Shortfall”) the Lessor shall notify the Lessee promptly and in any event not later than two (2) Business Days before required, that a Contribution Payment will be required. 

  

	3.10.2	Any notice from the Lessor requiring a Contribution Payment shall specify the amount of the Contribution Payment due from the Lessee and the scheduled date for payment thereof,
being no later than one (1) Business Day prior to the date on which the Lessor is to make payment in respect of such Lessor’s Total Expenditure and, in the case of the Final Instalment, before the date on which the Lessor is required to
procure the issuing of a payment undertaking from the Bank in accordance with article II.5(c) of the Novated Building Contract, and will be accompanied by documentation evidencing the amount of the Contribution Payment, to the best of the
Lessor’s then estimation. Each such notice shall constitute a “Contribution Payment Request”. 

  

	3.10.3	If and so often as the Lessee receives a Contribution Payment Request under clause 3.10.2, the Lessee shall pay to the Lessor an amount equal to the Contribution Payment requested
by the Lessor in the applicable Contribution Payment Request to the Lessor’s account as specified in the Contribution Payment Request, to be received not less than one (1) Business Day prior to the date on which the Lessor is to make the
payment in respect of such Lessor’s Total Expenditure and, in the case of the Final Instalment, not less than one (1) Business Day before the date on which the Lessor is required to procure the issue of a payment undertaking from the Bank
in respect of the Final Instalment in accordance with article II.5(c) of the Novated Building Contract. 

  

	3.11	Certificate of Delivery and Acceptance 

 On Delivery
the Lessee will deliver to the Lessor the Certificate of Delivery and Acceptance duly executed by the Lessee, which shall be conclusive proof that the Lessee has unconditionally accepted the Ship for leasing under this Agreement without any
reservations whatsoever. 
  

	3.12	Condition of Ship; Lessee’s risk and responsibility 

 The Lessee acknowledges that: 
  

	3.12.1	the condition of the Ship (or any part of it) on delivery to the Lessee under this Agreement will, as between the Lessor and the Lessee be the sole risk and responsibility of the
Lessee and that the Lessor has agreed to purchase the Ship pursuant to the Novated Building Contract for the sole purpose of leasing the Ship to the Lessee pursuant to this Agreement; 

  

	3.12.2	the Lessee will not be entitled for any reason whatsoever to refuse to accept delivery of the Ship under this Agreement once the Lessor acquires title to, and receives possession,
of the Ship pursuant to the Novated Building Contract; and 

	3.12.3	the Lessor will not be liable for any loss of profit resulting directly or indirectly from any defect or alleged defect in the Ship or failure or alleged failure of the Ship to
comply with the Novated Building Contract. 

  

	3.13	Delays in delivery 

 The Lessor will not be
responsible for any loss or expense, or any loss of profit, arising from any delay in the delivery of, or failure to deliver, the Ship to the Lessee under this Agreement except where such delay or failure is caused by the negligence or wilful
default of the Lessor or any Lessor Breach. 
  

	4	Rental 

  

	4.1	Construction Period Rentals 

 The Lessee shall not
be required to pay any instalments of Rental during the Construction Period. 
  

	4.2	Lease Period Rental 

 On each Lease Rental Date
falling in the Lease Period the Lessee shall pay to the Lessor in respect of the Lease Period an instalment of Rental calculated in accordance with paragraph 2.1 of the Financial Schedule. Each such instalment of Rental shall be subject to
adjustment in accordance with the Financial Schedule. 
  

	4.3	Adjustments of Rental 

 The Lessee, on the dates
determined in accordance with the Financial Schedule, shall pay to the Lessor by way of additional Rental all amounts from time to time arising from recalculation of Rental made pursuant to and due to the Lessor in accordance with the Financial
Schedule. The Lessor shall pay to the Lessee all amounts from time to time arising from recalculation of Rental made pursuant to the Financial Schedule and due to the Lessee, and expressed to be payable by way of rebate of Rental, in accordance with
the Financial Schedule. The Lessor shall make any such payments to such account as the Lessee may notify in writing to the Lessor from time to time. 
  

	4.4	Lessor’s Capital Commitment Fee 

 The Lessee
shall pay to the Lessor a capital commitment fee, on the basis and in the manner agreed between the Lessor and the Lessee in writing. 
  

	4.5	Survival of Financial Schedule 

 The provisions of
the Financial Schedule shall survive any termination or expiry of the Lease Period and any breach or repudiation, or alleged breach or repudiation, by the Lessee or the Lessor of this Agreement. 
  

	4.6	Unconditional payment obligations 

 The
Lessee’s obligation to pay Rental in accordance with this clause 4 (unless and until Rental ceases to be payable in accordance with the provisions of clause 2.13 or clause 14.5 or clause 18.1) and any other payments payable by the Lessee to the
Lessor under the Lease Documents is absolute and shall apply irrespective of any contingency whatsoever including but not limited to: 
  

	4.6.1	any set-off, counterclaim, recoupment, defence or other right which either party to this Agreement may have against the other; 

	4.6.2	any unavailability of the Ship for any reason, including but not limited to, any lack or invalidity of title or any other defect in the title, seaworthiness, condition, design,
operation, merchantability or fitness for use or purpose of the Ship or the ineligibility of the Ship for any particular use or trade or for registration or documentation under the laws of any relevant jurisdiction or the Total Loss of or any damage
to the Ship; 

  

	4.6.3	any failure or delay on the part of either party to this Agreement, whether with or without fault on its part, in performing or complying with any of the terms, conditions or other
provisions of this Agreement and the other Transaction Documents; 

  

	4.6.4	any insolvency, bankruptcy, reorganisation, arrangement, readjustment of debt, dissolution, administration, liquidation or similar proceedings by or against the Lessor or the
Lessee; 

  

	4.6.5	any lack of due authorisation of, invalidity, unenforceability or other defect in any of the Transaction Documents; or 

  

	4.6.6	any other cause which but for this provision would or might have the effect of terminating or in any way affecting any obligation of the Lessee hereunder; 

it being the declared intention of the parties that the provisions of this clause 4.6 and the obligations of the Lessee to pay Rentals and make other
payments in accordance with this Agreement and the other Transaction Documents shall survive any frustration of this Agreement or any other Lease Document and that, save as expressly and specifically provided in this Agreement, no moneys payable or
paid hereunder by the Lessee to the Lessor shall in any event or circumstances be repayable to the Lessee. 
  

	4.7	No waiver 

 Clause 4.6 does not constitute a waiver
by the Lessee of any right of the Lessee to claim damages or specific performance or any other injunctive relief against the Lessor arising out of a Lessor Breach. 
  

	5	Payments 

  

	5.1	Manner of payment 

 All payments of Rental and other
amounts payable by the Lessee under this Agreement and any other Transaction Document shall be made: 
  

	5.1.1	without prior demand (unless expressly stated to be payable on demand); 

  

	5.1.2	in full without any right of set-off or counterclaim and free and clear of all deductions or withholdings whatsoever, unless any deductions or withholdings are required by law in
which event clause 8.2 shall apply; 

  

	5.1.3	in Dollars (or, in the case of payments in respect of Losses, in the currency in which the relevant Losses are incurred); 

	5.1.4	in cleared funds to the account of the Bank of Scotland with Bank of New York, New York SWIFT BIC: IRVTUS3N for credit to account no. 11087USD01 with reference: “Peony Leasing
Limited, sort code: 802013, IBAN No. GB59BOFS80201311087101, SWIFT BIC: BOFSGB2SXXX” or to such other account or accounts at such other place or places as the Lessor may from time to time notify to the Lessee in writing at least ten
(10) days before the due date for payment. 

  

	5.2	Payments on Business Days 

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

	5.3	Interest on delayed payments 

 If the Lessee fails
to pay any sum due by the Lessee under this Agreement or any other Lease Document on its due date for payment (including any failure to pay on demand any amount due under this clause 5.3) the Lessee will pay to the Lessor on demand interest on such
Rental or other amount from the date of such failure to the date of actual payment (both before and after any relevant judgment or liquidation of the Lessee) at the Default Rate. 
  

	5.4	Calculation of Interest 

 All interest and any other
payments under any Lease Document which are of an annual nature shall accrue from day to day and shall be calculated on the basis of the actual number of days elapsed and a 360 day year. 
  

	6	Extent of Lessor’s Liability 

  

	6.1	Quiet Enjoyment 

 The Lessor undertakes with the
Lessee that during the Lease Period it will not interfere with the quiet use, operation, possession and enjoyment of the Ship by the Lessee, otherwise than: 
  

	6.1.1	through the acts or omissions of the Lessee or its agents or representatives; or 

  

	6.1.2	pursuant to (i) the Lessor’s rights under the Transaction Documents (and then subject to any restrictions on the exercise of those rights under the Transaction Documents)
or (ii) obligations which may arise under applicable law or regulation or any ruling of any Government Entity or other competent authority or agency which is either binding on the Lessor or any Lessor Group Member or in respect of which
compliance by owners of vessels of the same type as the Ship or by banks and other financial institutions or institutions of a similar nature to the Lessor is generally customary. 

  

	6.2	Further action 

  

	6.2.1	The Lessor further undertakes, if reasonably requested to do so by the Lessee, to take such action as is available to it and which must be performed exclusively by the registered
owner and not the operator of the Ship to protect the use, possession and quiet enjoyment of the Ship during the Lease Period by the Lessee from interference by third parties. 

	6.2.2	All costs properly incurred by the Lessor in respect of any action taken by the Lessor under this clause 6.2 (including any appropriate fee in respect of the Lessor’s
Management Time notified by the Lessor to the Lessee as having been properly incurred in connection therewith which shall be charged at the Lessor’s Management Time Cost Rate) will be borne by the Lessee unless such action is required as a
result of a failure by the Lessor to comply with its obligations under clause 6.1 and clause 6.2.1 (and which failure does not arise by reason of any breach by the Lessee or any other Transaction Company of its obligations or other failure to comply
with or observe the terms of any Transaction Document). 

  

	6.3	Lessor’s Security Interests 

  

	6.3.1	The Lessor: 

  

	 	(a)	warrants that as at the Delivery Date the Ship and the Lessor’s interest in the Insurances and any Requisition Compensation will be free of all Lessor’s Security
Interests; and 

  

	 	(b)	undertakes with the Lessee that it will not create or permit to arise during the Lease Period any such Lessor’s Security Interest over the Ship or any part of it or the
Lessor’s interest in the Insurances and any Requisition Compensation. 

  

	6.3.2	If any Lessor’s Security Interest arises over the Ship, the Lessor will use its reasonable endeavours to procure the release of any such Lessor’s Security Interest of
which it is aware, Provided that the Lessor shall not be liable to pay or discharge or remove any such Lessor’s Security Interest if such Lessor’s Security Interest is being disputed by the Lessor in good faith and adequate reserves for
the payment of the applicable amounts have been provided by the Lessor, provided further however that if the Lessee’s quiet enjoyment of the Ship is in any way disturbed by reason of the existence or enforcement of any Lessor’s Security
Interest, the Lessor will promptly take steps to procure the release of any such Lessor’s Security Interest and/or the cessation of the disturbance of the Lessee’s quiet enjoyment. 

  

	6.3.3	If the Lessor fails to procure the release of a Lessor’s Security Interest of which it is aware and the existence of which is interfering with the Lessee’s quiet enjoyment
of the Ship and/or the Ship is arrested, attached, levied upon pursuant to any legal process or is detained in exercise or purported exercise of any lien or claim of whatsoever nature, in each such case arising out of the existence of any
Lessor’s Security Interest the Lessee shall: 

  

	 	(a)	be entitled to act as the agent for the Lessor to procure the release of that Lessor’s Security Interest and/or the release of the Ship from such arrest, detention, attachment
or levy or, as the case may be, the discharge of the writ or equivalent claim or pleading in admiralty and the discharge of all liabilities in connection with such process, claim, lien or other action; and 

  

	 	(b)	be entitled to be reimbursed by the Lessor for all reasonable losses and expenses properly so incurred by the Lessee as a result of the Lessor’s breach of clause 6.3.1 or its
failure to procure the release of the Lessor’s Security Interest or, as the case may be, the Ship, against the production by the Lessee of reasonable supporting evidence for such loss and expenses. 

	6.4	Limitation on Lessor’s liability for quiet enjoyment 

 The Lessee acknowledges that the undertakings contained in clauses 6.1, 6.2 and 6.3 are the only undertakings by the Lessor to the Lessee in respect of quiet enjoyment and in substitution for, and to the exclusion of, any other covenant for
quiet enjoyment which may otherwise have been given or implied by law, all of which are hereby expressly excluded and waived by the Lessee. 
  

	6.5	Benefit of Novated Building Contract guarantee and third party warranties 

  

	6.5.1	The Lessor assigns and agrees to assign absolutely (without recourse or warranty) to the Lessee the full benefit of all assignable guarantees, warranties and indemnities (whether
express or implied) given to the Lessor by the Builder under the Novated Building Contract. Pursuant to the assignment in this clause 6.5 the Lessee shall (after the Delivery Date) be entitled to take such action upon any such warranty or indemnity
as assignee of the Lessor against the Builder or any guarantor, manufacturer, repairer or supplier as the Lessee shall see fit, but subject to the Lessee first ensuring that the Lessor is indemnified (and, in the case of any counterclaim by the
Builder against the Lessor, secured) to its satisfaction against all Losses thereby incurred or to be incurred. 

  

	6.5.2	The Lessor agrees: 

  

	 	(a)	to serve notice on the Builder of the assignment contained in clause 6.5.1 in the form set out in Schedule 9 promptly thereafter; and 

  

	 	(b)	to the extent that any guarantee, warranty or indemnity referred to in clause 6.5.1 is not assignable, if so requested by the Lessee and at the Lessee’s cost and expense, the
Lessor will use reasonable endeavours to extend to the Lessee the benefit of that guarantee, warranty or indemnity. 

  

	6.5.3	Upon the expiry or termination of the Lease Period, the Lessee shall cease to be entitled to any rights under this clause 6.5 and shall (subject to clause 2.7.6) reassign to the
Lessor at the expense of the Lessee the benefit of the remainder of any guarantee, warranty or indemnity assigned by the Lessor to the Lessee pursuant to this clause 6.5. 

  

	6.6	Limitations on Lessor’s Liability 

 Save in
respect of the Lessee’s rights under clauses 6.1, 6.2, 6.3 and 6.4, the Lessee acknowledges and agrees that all rights, claims or remedies of the Lessee against the Lessor in relation to the Ship, whether express or implied or arising by
operation of law or statute or otherwise (whether in contract or in tort or otherwise), are hereby excluded. In particular, the Lessee acknowledges and agrees that: 
  

	6.6.1	the Lessor makes no condition, term, representation or warranty (express or implied) of any kind as to title (save to the extent specified in or pursuant to clause 2.7.4 or clause
6.3.1(a)) seaworthiness, safety, condition, capacity, quality, value, design, construction, durability, operation, performance, description, merchantability, or fitness for use of the Ship or any part thereof or as to the eligibility of the Ship or
any part thereof for any particular trade or operation or as to the absence of latent or other defects (whether or not discoverable), or as to the absence of any infringement of any patent, trademark, copyright or intellectual property or other
rights in or to the Ship or any part thereof or any other condition, term, representation or warranty whatsoever, express or implied, with respect to the Ship; 

	6.6.2	the Lessee waives all its rights and claims (whether express or implied, statutory or otherwise) in respect of any condition, term, representation, or warranty described in clause
6.6.1 (save to the extent specified in or pursuant to clause 2.7.4 or clause 6.3.1(a)); 

  

	6.6.3	to the extent possible under applicable law the Lessee: 

  

	 	(a)	waives all its rights and claims which it may have in tort or otherwise in respect of any of the matters described in clause 6.6.1 (save to the extent specified in or pursuant to
clause 2.7.4 or clause 6.3.1(a)); and 

  

	 	(b)	agrees that the Lessor will have no greater liability in tort or otherwise than it would have in contract after taking into account the exclusions referred to in this clause 6.6;

  

	6.6.4	the Lessee acknowledges that no condition, term, representation or warranty described in clause 6.6.1 has been made by or on behalf of the Lessor in relation to the Ship (save to
the extent specified in or pursuant to clause 2.7.4 or clause 6.3.1(a)); and 

  

	6.6.5	nothing in this clause 6 shall exclude any liability of the Lessor for death or personal injury resulting from negligence falling within Section 1(1) of the Unfair Contract
Terms Act 1977. 

  

	6.7	Ownership of other vessels 

 The Lessor and Lessee
acknowledge that, during the Lease Period, the Lessor may own vessels other than the Ship, the Sister Ships and any other vessels leased to the Lessee or another company in the Guarantor Group. At the Lessee’s request, the Lessor will transfer
in accordance with clause 21 the Ship and the Sister Ships to another company which does not own any vessels other than the Ship, the Sister Ships and any other vessels leased to the Lessee or another company in the Guarantor Group. 
  

	6.8	Lessor financial information 

 The Lessor undertakes
that, if requested by the Lessee, it shall deliver to the Lessee within 14 days after the end of June and December in each year during the Lease Period an unaudited balance sheet of the Lessor stating the gross amount of the Lessor’s assets,
long term liabilities and shareholders funds as at the end of the relevant half year and a profit and loss account showing the items for the relevant half year specified in the pro forma profit and loss account set out in Schedule 11, such
amounts to be determined by the Lessor in accordance with the usual procedures and systems of the Lessor’s Group and provided in the format set out in Schedule 11. The Lessor shall also provide the Lessee with a copy of its annual audited
accounts within 14 days of such accounts being approved by its Board of Directors, and (from time to time) such other information as shall be reasonably requested by the Lessee (and at the Lessee’s cost). The Lessee shall keep such information
confidential save as otherwise required by law or as necessary for purposes of preparing consolidated accounts of the Lessee and its affiliates. 
  

	7	Costs and Indemnity 

  

	7.1	Lessor’s transaction related expenses 

 The
Lessee shall pay to the Lessor on its written demand, whether or not the Lease Period commences: 
  

	7.1.1	all expenses of the Lessor (including legal and out-of-pocket expenses) reasonably incurred by the Lessor in connection with the preparation, negotiation and completion of this
Agreement and the other Transaction Documents (subject only to any cap on legal expenses which may be separately agreed by the parties) and in relation to the delivery of the Ship, including any costs, charges or expenses (including fees and
commissions) of the Lessor in connection with the funding of the Final Instalment, calculated in accordance with clause 7.4.3 below to the extent that such expenses have not been taken into account in accordance with the Financial Schedule in
computing the amount of any Rental; 

	7.1.2	all expenses of the Lessor (including legal and out-of-pocket expenses) properly incurred by the Lessor in connection with any variation of this Agreement and the other Transaction
Documents or any waiver or consent required under any of them (but not a variation, waiver or consent requested by the Lessor, unless the Lessor is legally obliged to request and procure such variation, waiver or consent); 

 

	7.1.3	all expenses of the Lessor (including legal and out-of-pocket expenses) properly incurred by the Lessor following the occurrence of a Relevant Event in connection with the
preservation or enforcement or attempted enforcement of any right conferred upon the Lessor by this Agreement and the other Transaction Documents or in respect of any breach of any representation or warranty or covenant; and

  

	7.1.4	any expenses incurred by the Lessor in respect of any Lessor’s Management Time notified by the Lessor to the Lessee as having been properly incurred in connection with
(a) the consideration of any variation, waiver or consent of or under this Agreement and the other Transaction Documents pursuant to clause 7.1.2 and (b) the preservation or enforcement or attempted preservation or enforcement of the
Lessor’s rights, the arrest or recovery of the Ship or otherwise in respect of any breach pursuant to clause 7.1.3 which for the avoidance of doubt shall be charged at the Lessor’s Management Time Cost Rate; 

  

	7.1.5	all expenses payable under or pursuant to this clause 7.1 shall include any Irrecoverable VAT on such expenses; and 

  

	7.1.6	all payments under this clause 7.1 shall be made in the currency in which the expenses were incurred by the Lessor. 

  

	7.2	Non-payment by Lessee 

 The Lessee shall indemnify
the Lessor on its written demand against any loss, damage, expense or liability which the Lessor or any other Indemnified Person may properly sustain or incur as a direct consequence of any default by the Lessee in payment of an amount which the
Lessee has agreed to pay under this Agreement except to the extent that the Financial Schedule provides for the amount to be taken into account in the payment of Rental or to the extent that the Lessor or such other Indemnified Person has already
been compensated for any such loss, damage, expense or liability under any other provision of this Agreement. 
  

	7.3	Currency indemnity 

 If any sum payable by the
Lessee to the Lessor or any other Indemnified Person under this Agreement or any other Lease Document or under any order or judgment relating to a Lease Document has to be converted from the currency in which the Lease Document provided for the sum
to be paid (the “Contractual Currency”) into another currency (the “Payment Currency”) for the purpose of: 
  

	7.3.1	making or lodging any claim or proof against the Lessee, whether in its liquidation, any arrangement involving it or otherwise; or 

	7.3.2	obtaining an order or judgment from any court or other tribunal; or 

  

	7.3.3	enforcing any such order or judgment, 

 the Lessee shall
indemnify the Lessor and/or the applicable Indemnified Person against the loss arising when the amount of the payment actually received by the Lessor and/or the applicable Indemnified Person is converted at the available rate of exchange from the
Payment Currency into the Contractual Currency. 
 In this clause 7.3 the “available rate of exchange” means the rate which the Bank
offers to other prime banks at the opening of business (London time) on the Business Day after it receives the sum concerned to sell the Payment Currency to purchase the Contractual Currency for immediate delivery. 
 Any amount due from the Lessee under this clause 7.3 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 Lease Documents and the term “rate of exchange” includes any premiums and costs of exchange payable in connection with the purchase of the Contractual Currency with the Payment Currency.

  

	7.4	General Indemnity 

 The Lessee shall indemnify and
hold harmless on a full indemnity basis the Lessor and each other Indemnified Person against: 
  

	7.4.1	any costs, charges or expenses (other than Taxes, to which clause 8 shall apply) which the Lessee has agreed to pay under this Agreement or the other Lease Documents and which are
claimed or assessed against or (prior to the occurrence of a Termination Event which is continuing, after consultation with the Lessee) paid by the Lessor or any other Indemnified Person; 

  

	7.4.2	all Losses imposed on, suffered or incurred by the Lessor and/or each other Indemnified Person arising directly or indirectly in any manner out of, or in any way connected with, the
condition, testing, design, manufacture, construction, delivery, non-delivery, purchase, importation, export, registration, classification, certification, navigation, ownership, chartering, sub-chartering, employment, management, manning,
victualling, provision of bunkers and lubricating oil, possession, repossession, performance, control, use, operation, maintenance, repair, transportation, dry-docking, replacement, refurbishment, modification, service, overhaul, insurance in
accordance with the terms of this Agreement, sale or other disposal, return, redelivery, storage, laying-up, loss of or damage to the Ship or otherwise in connection with the Ship, this Agreement and the other Transaction Documents and regardless
of: 

  

	 	(a)	whether or not such Losses are attributable to any defect in the Ship or to the design, construction or use thereof or to any reason whatsoever; and 

  

	 	(b)	when the Loss arises; 

 and, without prejudice to its generality, this clause 7.4.2 covers any such Losses arising out of an
Environmental Claim or an Environmental Incident; 
  

	7.4.3	all Losses (including, without limitation, Broken Funding Costs and all or any Losses in respect of funds borrowed or mobilised by or on behalf of the Lessor, the liquidation of any
deposits taken or made by the Lessor, the substitute investment of such funds with a return lower than the cost of such funds, the loss of use of such funds and the prepayment by the Lessor of such funds to the source from which they were borrowed
or mobilised) imposed on, suffered or incurred by the Lessor and/or any other Indemnified Person by reason of: 

  

	 	(a)	an Instalment not being paid on the date referred to in the relevant Instalment Request applicable to such Instalment; 

  

	 	(b)	Delivery occurring other than on the date specified therefor in the Intended Delivery Notice; 

 including in relation to the Final Instalment, the cost to the Lessor in borrowing the Final Instalment for the period commencing with the date on which
the Final Instalment is borrowed up to and including the Delivery Date (but only if such sum is not included in the calculation of Rentals under the Financial Schedule) or, if Delivery does not occur, up to and including the date on which the Lessor
has received back the Final Instalment, such cost to be calculated at LIBOR determined daily for each day during the period described above plus the Margin Rate (as defined in the Financial Schedule) less if any, any Broken Funding Benefits and the
Dollar interest paid on the Final Instalment to the Lessor by the bank holding the Final Instalment; 
  

	7.4.4	all Losses imposed on, suffered or incurred by the Lessor and/or each other Indemnified Person which result directly or indirectly from claims which may at any time be made on the
ground that any design, article or material of or in the Ship or the operation or use thereof constitutes an infringement of patent or copyright or registered design or other intellectual property right or any other right whatsoever;

  

	7.4.5	all Losses imposed on, suffered or incurred by the Lessor and/or each other Indemnified Person in preventing or attempting to prevent the arrest, confiscation, seizure, taking in
execution, requisition, impounding, forfeiture or detention of the Ship, or in securing or attempting to secure the release of the Ship; 

  

	7.4.6	all Losses imposed on, suffered or incurred by the Lessor and/or each other Indemnified Person in connection with the sale or disposal or attempted sale or disposal of the Ship
pursuant to the terms and conditions of this Agreement including, without limitation, broker’s commissions, redelivery costs (if any), marketing expenses, legal costs, storage, insurance and any other expenses of the Lessor incurred pending the
sale or disposal of the Ship or otherwise in connection with the sale or disposal of the Ship; 

  

	7.4.7	all Losses imposed on, suffered or incurred by the Lessor and/or each other Indemnified Person resulting from the Ship becoming a wreck or obstruction to navigation, including in
respect of the removal or destruction of the wreck or obstruction under statutory or other powers; and 

	7.4.8	all Losses which may be imposed on, incurred by, or made against or asserted against, the Lessor and/or any other Indemnified Person at any time as a consequence (direct or
indirect) of: 

  

	 	(a)	the breach by any person (other than the Lessor and the Bank) of any of its obligations to the Lessor under any of the Transaction Documents provided that any breach by the Lessor
or the Bank of its obligations under any of the Transaction Documents shall not be excluded from the ambit of this clause 7.4.8 to the extent that such breach is itself caused by any act or omission of any Transaction Company or any person referred
to in (c) below; 

  

	 	(b)	any of the warranties and representations on the part of any person (other than the Lessor and the Bank) made or repeated to the Lessor in any Transaction Document being untrue or
inaccurate in any material respect when made or repeated; 

  

	 	(c)	any act or omission by any person acting as sales agent of the Lessor under any of the Transaction Documents (including any permitted delegate of such sales agent), the Supervisor
or any of its Authorised Representatives (as defined in the Novated Building Contract), in each case, whether acting within or outside their relevant authority or any wilful or reckless misconduct or misfeasance by the Builder, the Lessee or the
Supervisor; or 

  

	7.4.9	all Losses which may be imposed on, suffered or incurred by, or made against or asserted against, the Lessor and/or any other Indemnified Person at any time in respect of any
premiums, calls, supplementary calls, contributions or other sums payable by the Lessor or any Lessor Group Member in respect of the Insurances or any liability of the Lessor or any other Lessor Group Member by reason of it being or becoming a
joint, additional or co-assured under or in respect of any insurance policy, contract or entry in any protection and indemnity or war risks association effected by the Lessee pursuant to clause 13. 

  

	7.5	Exclusions 

 The indemnities contained in clause 7.4
and clause 7.2 shall not extend to any Loss: 
  

	7.5.1	to the extent that such Loss is caused by Lessor Misconduct or recklessness (with full knowledge of the probable consequences) on the part of the applicable Indemnified Person (or a
third party, not being a Transaction Company acting on behalf of the Lessor or other applicable Indemnified Person) which would otherwise seek to claim the benefit of such indemnities or, in circumstances where such Loss arises in connection with a
payment owing to an Indemnified Person, if such payment was made in due time but was not accounted for by such Indemnified Person as a result of an error on their part; 

  

	7.5.2	to the extent that such Loss is caused by any Lessor Breach; 

  

	7.5.3	to the extent that such Loss constitutes a cost which is expressly to be borne by the Lessor for its own account under any other provision of this Agreement or any other Lease
Documents; 

  

	7.5.4	in respect of which the Lessor or the applicable Indemnified Person has been expressly and specifically indemnified under any other provision of this Agreement;

  

	7.5.5	to the extent that such Loss of the Lessor or the applicable Indemnified Person is or (but for operation of paragraph 4.6 of the Financial Schedule) would be taken into account in
accordance with the Financial Schedule, in computing the amount of Rental payable by the Lessee under this Agreement; 

	7.5.6	to the extent that such Loss arises out of or in connection with a Lessor’s Security Interest; 

  

	7.5.7	to the extent that such Loss would be a loss of profit derived from or arising out of loss of a business opportunity of the Lessor or the applicable Indemnified Person;

  

	7.5.8	to the extent that the event or circumstance giving rise to the Loss occurs after the end of the Lease Period and is not in any way directly or indirectly attributable to, or which
occurs as a consequence of or in connection with, any event, circumstance, action or omission which occurred during the Lease Period; 

  

	7.5.9	to the extent that such Loss is part of the normal administrative overheads of the Lessor or the applicable Indemnified Person; and/or 

  

	7.5.10	to the extent that such Loss constitutes the Purchase Price or any part thereof (excluding any Contribution Payments required pursuant to clause 3.10.2). 

In addition, to the extent that the Lessor or other Indemnified Person shall have actually and unconditionally received reimbursement from insurers for
a Loss of the Lessor or any other Indemnified Person which has already been satisfied in full by the Lessee then, subject to clause 8.6, the Lessor shall procure that the Lessee is reimbursed for an amount equal to the amount received from the
insurers. In addition, in circumstances where the Lessee has indemnified the Lessor or any other Indemnified Person in full in relation to a Loss which may be recoverable by insurance then, provided no Termination Event has occurred and is
continuing, and provided the Lessor or such other Indemnified Person is (if requested by it) secured to its satisfaction (acting in good faith) against any Loss it may incur by virtue of the Lessee exercising such rights of subrogation and subject
to the rights of insurers, the Lessee shall be subrogated to the claim of the Lessor or such other Indemnified Person in relation to the Loss. 
  

	7.6	Conduct of Claims 

 In connection with the
indemnities in favour of any Indemnified Person under this Agreement, other than in relation to any matter which is an Issue under (and as defined in) the Tax Consultation Letter: 
  

	7.6.1	the Lessor will as soon as practicable notify the Lessee if a claim is made, or if it becomes aware that a claim may be made against the Lessor or any other Indemnified Person which
may give rise to a Loss in respect of which the Lessor or any other Indemnified Person is or may become entitled to an indemnity under clause 7.4; 

  

	7.6.2	a notification under clause 7.6.1 shall give such details as the Lessor or the other Indemnified Person then has regarding the claim or potential claim and any Loss or potential
Loss; 

  

	7.6.3	if the claim or potential claim may give rise to a Loss in respect of which the liability of the Lessor or such other Indemnified Person is fully insured under the protection and
indemnity insurances relating to the Ship, the Lessor will act, and will procure that any other Indemnified Person will act, in accordance with the directions of the protection and indemnity club or association in which the Ship is entered in
relation to defending, accepting or settling that claim, preserving nevertheless the rights of the Lessor against the Lessee under this Agreement and the other Lease Documents; 

	7.6.4	subject to clause 7.6.1 the Lessor will not, and will procure that no other Indemnified Person will, settle any claim or discharge and pay any court judgment or administrative
penalty in respect of any claim unless: 

  

	 	(a)	the Lessor is of the opinion, acting in good faith, that the continuance of the proceedings in respect of such claim and/or the non-payment of any court judgment or administrative
penalty will result in criminal liability for, or the imposition of a civil penalty on, or the attachment of any assets of the Lessor or any other Indemnified Person; or 

  

	 	(b)	the Lessor and the Lessee do not agree that there are reasonable grounds for disputing such claim or for a successful appeal against such judgment or penalty (as appropriate),
whereupon the Lessee shall have the right (subject always to paragraph (a) above) to seek an opinion from leading counsel as to whether there is more than a sixty-five per cent (65%) chance of successfully disputing such claim or for such
an appeal to be successful (and if such leading counsel is of that opinion, any costs reasonably incurred by the Lessee in obtaining such opinion shall be reimbursed by the Lessor and the Lessor will not settle the claim or discharge or pay the
applicable judgment) provided however that if leading counsel is of the opinion that there is a less than sixty-five per cent (65%) chance of successfully disputing the action or for such an appeal to be successful, then the Lessor shall be
entitled to settle the claim or discharge or pay the court judgment or administrative penalty, as the case may be. 

 It is
agreed that if any insurers have made a partial payment in respect of any claim the Lessor shall have no responsibility to the Lessee if the insurers subsequently settle a claim in exercise of their rights of subrogation. The Lessor shall agree not
to settle any claim or discharge and pay any court judgment or administrative penalty in respect of any claim, if it is secured to its reasonable satisfaction by the Lessee against the amount of such claim, court judgment or administrative penalty
and the Lessor is satisfied (in its absolute discretion) that none of the circumstances envisaged in clause 7.6.5(e) below shall apply or arise if the Lessor does not settle the claim or discharge or pay any judgment or penalty in respect thereof;

  

	7.6.5	Without prejudice to the provisions of this clause 7.6, the Lessee shall be entitled (subject to the Lessee complying in all respects with its obligations under this Agreement and
the other Transaction Documents to which it is a party) to take (at its own cost) such lawful and proper actions as the Lessee reasonably deems fit to defend, avoid or mitigate any Loss or to take such action in the name of the Lessor or other
relevant Indemnified Person, provided that the Lessee’s ability to take action in the name of the Lessor or such other Indemnified Person shall be subject to: 

  

	 	(a)	the Lessor or such other Indemnified Person first being indemnified and secured to the satisfaction of the Lessor (or, as the case may be, such Indemnified Person), acting
reasonably, against all Losses incurred and from time to time reasonably anticipated to be incurred in connection therewith; 

  

	 	(b)	 the ability of the Lessee to commence court proceedings in the name of the Lessor or such other Indemnified Person, or to instigate a counterclaim in the name of
the 

	 	 
Lessor or such other Indemnified Person (but not, for the avoidance of doubt, to defend court proceedings brought by a third party which do not involve a
counterclaim) being subject to the prior written consent of the Lessor (which consent the Lessor shall not unreasonably withhold but in relation to which the Lessee acknowledges the wish and interest of the Lessor and the Lessor’s Group to
preserve their reputation as a financial institution, their business interests and their customer relations); 

  

	 	(c)	if court proceedings have been commenced by a third party against the Lessor or such other Indemnified Person as defendant or if, pursuant to sub-clause (b) above, the Lessor
gives its consent to the use of its name or the name of the relevant Indemnified Person in court proceedings (whether by way of claim or counterclaim), the Lessor shall permit the Lessee to have the full conduct of the court proceedings, or to
instigate a counterclaim in the name of the Lessor or such other Indemnified Person, but the Lessee shall (i) consult with the Lessor and keep the Lessor fully informed in relation to their conduct and have due regard to the wishes of the
Lessor in relation to the conduct of such court proceedings acknowledging the interest of the Lessor and each Lessor’s Group Member in preserving the reputations of the Lessor and each Lessor’s Group Member as financial institutions and
their respective business interests and customer relations and (ii) give timely notice to the Lessor of any meetings with counsel or attendances at court, and the Lessor and its advisers shall be entitled to attend any such meetings or court
attendances; 

  

	 	(d)	in relation to all other matters contemplated by this clause 7.6, the Lessee shall keep the Lessor fully informed and have due regard to the wishes of the Lessor in relation to the
use of the Lessor’s name or the name of any other Indemnified Person acknowledging the interest of the Lessor and each Lessor’s Group Member in preserving the reputation of the Lessor and each Lessor’s Group Member as financial
institutions and their respective business interests and customer relations; and 

  

	 	(e)	notwithstanding sub-paragraph (c) above, the Lessor at any time may notify the Lessee that the Lessor is of the opinion, acting in good faith, that the continuance of such
proceedings by the Lessee in the name of the Lessor or the name of any other Indemnified Person is damaging to the reputation of the Lessor or any Lessor Group Member as financial institutions or contrary to the business interests of any of them or
will result in any criminal liability for, or the imposition of a civil penalty on, or the attachment of any assets of the Lessor or any other Indemnified Person. A certificate signed by a director of the Lessor shall be conclusive as to the
correctness of such opinion. If the Lessor so notifies the Lessee, the Lessee shall forthwith cease to be entitled to conduct the court proceedings in the name of the Lessor or the name of any other Indemnified Person, and the Lessor shall be at
liberty to conduct, settle or discontinue such proceedings as it sees fit. 

 Without prejudice to the generality of this clause
7.6 and in particular sub-paragraph (e), the Lessor shall, at the cost of the Lessee, do such acts as the Lessee may reasonably request with a view to assisting the Lessee in taking actions to defend, mitigate or avoid any liability. 

	7.7	Pass-through of indemnity benefits 

 Where in this
clause 7 an indemnity is expressed to be for the benefit of any person who is not a party to this Agreement the Lessor shall be entitled to indemnify such person on the same terms (and subject in particular to clause 7.6) mutatis mutandis as the
indemnities expressed to be for the benefit of such person in this clause 7 and the Lessee shall indemnify the Lessor and hold the Lessor harmless on a full indemnity basis from and against each amount paid or payable by the Lessor to such person
under any such indemnity, provided that to the extent this clause 7 purports to impose any obligations on Indemnified Persons other than the Lessor, the Lessor shall have procured the compliance by each such Indemnified Person with those purported
obligations. 
  

	7.8	Survival of indemnities 

 The indemnities contained
in this clause 7, and each other indemnity contained in this Agreement in favour of the Lessor and the other Indemnified Parties, (including, but not limited to, those contained in clause 7) shall survive any termination or other ending of the Lease
Period and any breach of, or repudiation or alleged repudiation by, the Lessee or the Lessor of this Agreement or any of the other Lease Documents. 
  

	8	Taxes 

  

	8.1	General 

 The Lessee shall pay on a timely basis and
discharge or cause to be paid on a timely basis and discharged, and indemnify promptly and keep the Lessor and each Lessor Group Member indemnified promptly against all and any Taxes which are imposed on or become payable during or in respect of all
or any part of the Construction Period or the Lease Period on or in respect of the Ship or any activity in any way relating thereto or any Rental, or other amounts paid under this Agreement or any of the other Transaction Documents but subject to
the remaining provisions of this clause 8. 
  

	8.2	Withholding taxes 

 If at any time any applicable
law, regulation or regulatory requirement, or any governmental authority, monetary agency or central bank, requires any deduction or withholding from any payment of Rental or other amount due under any of the Transaction Documents: 
  

	8.2.1	the Lessee (unless otherwise agreed under any Transaction Document) shall pay, or shall procure the payment of, the full amount of the deduction or withholding in respect of Taxes
to the appropriate authority, agency or bank within the time period for payment permitted by law; 

  

	8.2.2	if the payment is to be made by the Lessee, the sum due from the Lessee in respect of that payment shall be increased to the extent necessary to ensure that, after the making of
such deduction or withholding, the Lessor or, as the case may be, the applicable Lessor Group Member receives on the due date for such payment a net amount equal to the amount which it would have received had no such deduction or withholding been
required to be made and the Lessee will promptly deliver to the Lessor copies of appropriate receipts evidencing any deduction or withholding so made; and 

	8.2.3	if the payment is to be made by any person other than the Lessee, the Lessee shall pay directly to the Lessor such sum (a “compensating sum”) as after taking into
account any deduction or withholding which is required to be made in respect of the compensating sum, will enable the Lessor or the applicable Lessor Group Member to receive, on the due date for payment, a net sum equal to the sum which the Lessor
or, as the case may be, the appropriate Lessor Group Member would have received in the absence of any obligation to make a deduction or withholding. 

  

	8.3	Tonnage Tax 

 In relation to the UK tonnage tax
regime contained in Schedule 22 Finance Act 2000: 
  

	 	(a)	The Lessee will provide on an ongoing basis, upon the written request of the Lessor, such information that is in its possession and control as may be properly required to be
furnished by the Lessor to HMRC or any Inspector of Taxes regarding the transactions contemplated by the Transaction Documents, including, without limitation, any joint certificate to be provided by the Lessor and the Lessee to the HMRC pursuant to
paragraph 93 of Schedule 22 FA 2000; 

  

	 	(b)	The Lessor will enter into any such joint certificate with the Lessee and the Lessee will enter into any such joint certificate with the Lessor and the Lessor and the Lessee will
provide to HMRC any information as may be properly required to be furnished by the Lessor in connection with such certificate or such election regarding the transactions contemplated by the Transaction Documents. 

  

	8.4	Grossing-up of indemnity payments 

  

	8.4.1	If and to the extent that any amount payable to the Lessor or any Lessor Group Member by or on behalf of the Lessee under this Agreement or any of the other Transaction Documents by
way of indemnity proves, by reason of that sum being taxable in the hands of the Lessor or, as the case may be, any Lessor Group Member, to be insufficient for the Lessor to discharge the corresponding liability to a third party or to reimburse the
Lessor or such Lessor Group Member for the cost incurred by it in discharging the corresponding liability to a third party, the Lessee shall pay to the Lessor or the applicable Lessor Group Member such additional amount as, after taking into account
any Tax suffered by the Lessor in respect of that sum, is required to make up the insufficiency. 

  

	8.4.2	There shall be taken into account, in determining whether any amount referred to in clause 8.4.1 is insufficient, the amount of any deduction or other relief, allowance or credit
received by the Lessor in respect of the Lessor’s corresponding liability to a third party or the cost incurred by the Lessor in discharging the corresponding liability to a third party to the extent that the Lessor determines that such
deduction or other relief, allowance or credit confers a genuine benefit on the Lessor. 

  

	8.4.3	If and to the extent that any amount (the “indemnity amount”) constituting (directly or indirectly) an indemnity by the Lessee to the Lessor, but paid by the Lessee
under this Agreement or any of the other Transaction Documents to any person other than the Lessor, shall be treated as taxable in the hands of the Lessor the Lessee shall pay to the Lessor such amount (the “compensating amount”) as
(after taking into account any Tax suffered by the Lessor in respect of the compensating amount) shall reimburse the Lessor for any Tax suffered by it in respect of the indemnity amount. 

	8.4.4	There shall be taken into account in determining the amount of any compensating amount under clause 8.4.3 the amount and time of payment of any deduction or other relief, allowance
or credit available to the Lessor in respect of the Lessor’s corresponding liability or Losses in respect of which the indemnity amount is paid to the extent that the Lessor determines that such deduction or other relief, allowance or credit
confers a genuine benefit on the Lessor. 

  

	8.4.5	To the extent that liability arises under clause 8.4.1 which may lawfully be avoided by the Lessee discharging the Lessor’s liability directly, then the parties shall endeavour
to settle their respective liabilities in this manner. 

  

	8.5	Credits etc. 

 If following the making of any
increased payment or compensating sum or compensating amount by the Lessee pursuant to clauses 8.2 or 8.4 the Lessor receives or is granted a credit against, remission for or repayment of any Tax payable by it which is referable to such deduction or
withholding or increased payment made by the Lessee and which has not already been taken into account pursuant to clause 8.4.2 or 8.4.4, the Lessor shall: 
  

	8.5.1	give to the Lessee a certificate setting out the basis of the computation of the amount of any credit, remission or repayment referred to in this clause 8.5; and

  

	8.5.2	to the extent that it is satisfied that it can do so without prejudice to the retention of such credit, remission or repayment, promptly reimburse the Lessee with such amount as the
Lessor shall determine to be such proportion of such credit, remission or repayment as will leave the Lessor, after such reimbursement, in the same net after Tax position as it would have been in had no such deduction or withholding been required to
be made, 

 Provided that: 
  

	 	(a)	the Lessor shall be the sole judge (acting in good faith) of the amount of any such credit, remission or repayment and of the date on which it is received; 

 

	 	(b)	the order and manner in which the Lessor employs or claims Tax credits and allowances available to it shall be determined by the Lessor in its discretion provided always that the
Lessor shall, in determining the order in which it employs or uses Tax Credits or allowances available to it, treat the Lessee in no less favourable a way than it treats its other customers in respect of similar transactions of a similar size;

  

	 	(c)	the Lessor shall not be obliged to disclose to the Lessee any information regarding the Tax affairs or Tax computations of the Lessor or the Lessor’s Group; and

  

	 	(d)	if, following any reimbursement pursuant to this clause 8.5, the credit, remission or repayment in respect of which reimbursement was made is disallowed in whole or in part by any
applicable Tax or other authority, the Lessee will pay to the Lessor the amount required to restore the after-Tax position of the Lessor to that which it would have been had adjustment under this clause 8.5.2 not been necessary.

 This clause 8.5 applies also to the extent that any credit, remission or repayment is granted to a Lessor Group Member and
the Lessor will procure that such Lessor Group Member complies with the obligations of the Lessor, with appropriate modifications, under this clause 8.5. 

	8.6	Duties and other taxes 

 The Lessee shall pay all
stamp, documentary, registration and other like duties or Taxes (including any such duties or Taxes payable by the Lessor) imposed on or in connection with this Agreement, the Novation Agreement, the Supervision Agreement and the other Transaction
Documents and shall indemnify the Lessor against any liability arising by reason of any delay or omission by the Lessee to pay such duties or Taxes. 
  

	8.7	Non-deductibility 

 If any amount paid or to be paid
by the Lessor pursuant to this Agreement by way of rebate of Rental or reimbursement or otherwise is not fully allowed or will not be fully allowed as a deductible trading expense in computing for Tax purposes the chargeable profits of the Lessor
(to the extent that the Lessor shall determine in good faith that the receipt by the Lessor out of which the obligation to make the relevant rebate reimbursement or other payment arises or arose is or will be brought into charge for computing for
Tax purposes the chargeable profits of the Lessor) the Lessor shall be entitled to reduce the payment by such amount or, if the Lessor has not done so, the Lessee will pay to the Lessor such additional amount as will put the Lessor in the same
after-Tax position as it would have been in had the payment been allowed as a deductible trading expense. 
  

	8.8	Deductibility 

 If a payment is made by the Lessee
or the Lessor has reduced the amount of a rebate or reimbursement made by it pursuant to clause 8.7 and the Lessor in fact obtains a deduction for the whole or part of the rebate or reimbursement the Lessor shall pay to the Lessee such additional
amount as the Auditors certify will leave the Lessor in the same after-Tax position had the payment pursuant to clause 8.7 not been necessary. 
  

	8.9	No double-counting 

 Notwithstanding the preceding
provisions of this clause 8, if: 
  

	8.9.1	either a liability to Tax arises, or would have arisen but for an insufficiency of taxable profits, or a deduction for Tax purposes is not available to the Lessor, or an event
giving rise to such a liability or non-deduction occurs (which would not have been, or given rise to, such a liability or non-deduction had all of the Assumptions proved to be correct) by reason of which the Lessee is (or would, but for this clause
8.9, be) liable to make a payment under the provisions of this clause 8; and 

  

	8.9.2	in consequence of any of the Assumptions proving not to be correct any amount of Rental payable under this Agreement or the amount of the Termination Sum or both is or are adjusted
upwards or would be so adjusted but for the provisions of paragraph 4.6 of the Financial Schedule, 

 the Lessee shall not be
liable to make any payments to the Lessor or otherwise in respect of Taxes under this clause 8. 
  

	8.10	Exclusion from tax indemnities 

 The Lessee is not
obliged to indemnify the Lessor or any Lessor Group Member under clause 8.1 against: 
  

	8.10.1	any Tax liability to the extent that such liability is imposed by way of deduction or withholding from any payment due from the Lessee under this Agreement or any of the other
Transaction Documents to the Lessor or any Lessor Group Member in circumstances where clause 8.2 applies (in which case the liability of the Lessee to pay such Tax liability shall be governed by that clause); 

	8.10.2	any United Kingdom Value Added Tax (including any interest, penalties or fines thereon) payable by the Lessor or any Lessor Group Member in respect of the Lessor’s acquisition
of the Ship (other than to the extent that such Value Added Tax arises as a result of an Excluded Event) or any other Value Added Tax whether or not the Lessee is required to make any payment or increased payment in respect thereof under clause 8.11
and, in respect of a non-United Kingdom Value Added Tax, to the extent that the Lessee is already required under this Agreement to make any payment or increased payment in respect thereof; or 

  

	8.10.3	Taxes which would not have arisen but for any Lessor Breach or any Lessor Misconduct; or 

  

	8.10.4	any United Kingdom Tax liability which is suffered by the Lessor or any Lessor Group Member by reason of any payment made by or loss suffered by the Lessor or the applicable Lessor
Group Member not being fully deductible in computing the chargeable profits for Tax purposes of the Lessor or the applicable Lessor Group Member whether or not the Lessor or the applicable Lessor Group Member is entitled to receive a compensating
amount under clause 8.4 or an amount under clause 8.7; or 

  

	8.10.5	any Taxes to the extent that they would not have arisen but for the reasonably avoidable delay or failure by the Lessor or any Lessor Group Member in the filing of:

  

	 	(a)	United Kingdom tax returns or any other documents in the United Kingdom or the payment of United Kingdom Taxes assessed on or payable by the Lessor or the applicable Lessor Group
Member, or, as the case may be, 

  

	 	(b)	tax returns in any jurisdiction other than the United Kingdom or any other documents in any jurisdiction other than the United Kingdom or the payment of Taxes in any jurisdiction
other than the United Kingdom assessed on or payable by the Lessor or the applicable Lessor Group Member, provided that this clause 8.10.5(b) shall not apply to any failure or delay by the Lessor or the applicable Lessor Group Member prior to the
time at which the Lessee, or as the case may be, the relevant Tax authority to whom such Taxes are due to be paid or with whom such returns or other documents are due to be filed, has notified the Lessor in writing of the requirement to pay such
Taxes or file such returns or other documents, 

 and provided that this clause 8.10.5 shall not apply to any delay or failure
by the Lessor or the applicable Lessor Group Member which: 
  

	 	(i)	has been consented to or requested by the Lessee or another Transaction Company in writing; and/or 

  

	 	(ii)	arises as a result of a failure by the Lessee promptly when requested to do so to provide the Lessor or the applicable Lessor Group Member with correct, suitable and adequate
information which the Lessee has or might reasonably be expected to have or to obtain so as to enable the Lessor or the applicable Lessor Group Member to file the relevant tax return or pay such Taxes; or 

	8.10.6	any Taxes which would not have been imposed but for, or to the extent increased by reason of, an assignment or transfer by the Lessor of its rights or obligations under this
Agreement or the other Transaction Documents; or 

  

	8.10.7	where the Lessee is liable to compensate the Lessor or any Lessor Group Member in respect of the liability under any other provision of this Agreement and has discharged its
obligations in respect thereof; or 

  

	8.10.8	any Corporation Tax attributable to any Rental or Termination Amount or interest actually receivable hereunder by the Lessor or to any other amounts payable to and unconditionally
received by the Lessor under this Agreement or pursuant to or in connection with any of the other Transaction Documents or to any sales or other proceeds (including, without limitation, insurance moneys) actually received and retained by the Lessor
in respect of the Ship or the Lessor’s rights under the Novated Building Contract; or 

  

	8.10.9	any Tax liability in respect of documentary or similar Taxes in circumstances where clause 8.6 applies (in which case the liability of the Lessee to pay such Tax liability
shall be governed by that clause). 

  

	8.11	VAT 

  

	8.11.1	Save where expressly provided to the contrary, all payments made under this Agreement and the other Transaction Documents are calculated without regard to VAT. If any such payment
constitutes the whole or any part of the consideration for a taxable or deemed taxable supply, the amount of that payment shall be increased by an amount equal to the amount of VAT which is chargeable in respect of the taxable supply in question
against delivery of an appropriate VAT invoice provided that the Lessor shall not be liable to pay an amount in respect of VAT until such time as, and to the extent that it (or any member of its VAT group which is the representative member (or
equivalent) of such VAT group for VAT purposes (the “Representative Member”)) receives a credit for such VAT as “input tax”, as defined in sub-section (1) of section 24 of VATA, under sections 25 and 26 of VATA (or
the equivalent in any jurisdiction other than the United Kingdom), in which case such payment shall be made as soon as practicable after the credit is received. 

  

	8.11.2	If any amount in respect of VAT paid by the Lessor or the Representative Member pursuant to this Agreement or any of the Transaction Documents at any time shall be Irrecoverable VAT
the Lessee shall forthwith on demand by the Lessor indemnify the Lessor and keep the Lessor fully indemnified at all times against such Irrecoverable VAT provided that if the Lessor determines that such Irrecoverable VAT subsequently proves to be
recoverable and to the extent that no adjustment has been made in the calculation of such Irrecoverable VAT pursuant to the proviso in the definition of “Irrecoverable VAT”, the Lessor shall pay to the Lessee such amount, if any, as the
Lessor shall determine will leave the Lessor in no better and no worse a position than the Lessor would have been in if no payment had been made by the Lessee to the Lessor under this clause 8.11.2. 

  

	8.11.3	 If the Lessor makes any supply for VAT purposes pursuant to or in connection with this Agreement or any of the other Transaction Documents or any transaction or
document contemplated herein or therein, the Lessee shall (save to the extent that the Lessor is entitled to be indemnified in respect of that VAT by an increased payment under clause 

	 	 
8.11.1 above) at such time as the Lessor certifies to the Lessee that any amount of VAT payable in respect of that supply has not been paid to the Lessor and
having duly accounted for such VAT to HMRC at the correct time and having duly claimed bad debt relief in respect of that VAT the Lessor either has not or has not fully received such relief, pay on demand to the Lessor an amount equal to the
aggregate of any VAT which is payable in respect of that supply and has not been the subject of bad debt relief together with interest on an amount equal to any VAT payable in respect of the supply at LIBOR ascertained in respect of the date on
which such VAT was accounted for to HMRC for the period from that date until the date of the Lessor’s certificate or the date upon which bad debt relief is received, provided that if an amount in respect of bad debt relief is subsequently
recovered by the Lessor or the Representative Member which is attributable to VAT in respect of which the Lessee has made a payment under this clause 8.11.3 the Lessor shall, or shall procure that the Representative Member shall, pay an amount equal
to such recovery to the Lessee to the extent such payment will not prejudice the retention of such VAT bad debt relief. 

  

	8.12	VAT mitigation 

  

	8.12.1	The Lessor and the Lessee agree to co-operate with a view to minimising any VAT payable by either party under any transaction referred to in clause 8.11 but so that neither party
shall be bound to do anything which would not be good business practice and legal or which would involve any adverse consequences to it. 

  

	8.12.2	If it subsequently transpires that the Lessor recovers, or obtains a credit for, any VAT in respect of which the Lessor has been indemnified under clause 8.11 the Lessor shall
refund to the Lessee such amount as the Lessor shall determine to be such proportion of such credit as will leave the Lessor, after such refund, in the same net position as if would have been had no VAT been required to be accounted for.

  

	8.13	Information 

  

	8.13.1	Subject to clause 8.13.2, the Lessee shall provide such evidence, assistance, information and documentation relating to the Purchase Price, the Ship, the use to which the Ship is
being put or such other evidence, information or documentation as may be requested by the Lessor and which is or ought reasonably to be available to the Lessee and which is under its control or power to procure, and which the Lessor may require in
order for the Lessor to satisfy a legitimate request for information or documentation received from any Tax authority or in order to agree the Lessor’s Tax computations or settle any other Tax matter and the Lessee undertakes to co-operate with
the Lessor to enable the same to be provided to the relevant Tax authority. 

  

	8.13.2	The Lessee and Lessor acknowledge and agree that should either party, or as the case may be, any relevant advisors of either party (“Advisors”) determine that it
shall be necessary for it, or as the case may be, such Advisors to disclose to any Tax authority such details relating to the transactions contemplated by the Transaction Documents as may be required to be disclosed by such person in accordance with
the provisions of Part 7 of Chapter 8 of the Finance Act 2004 or any regulations made pursuant thereto, such person shall be permitted to make such disclosure SAVE THAT before making any such disclosure, the Lessor, or, as the case may be, the
Lessee shall consult in good faith with the other party as to the requirement to make such disclosure and the terms on which such disclosure shall be made provided that notwithstanding such requirements to consult, any decision as to whether a
disclosure is required to be made and the terms of that disclosure shall be made by the person wishing to make the disclosure acting in good faith. 

	9	Use and Employment 

  

	9.1	General 

 The Lessee undertakes to comply with the
following provisions at all times during the Lease Period except as the Lessor may otherwise permit in writing. 
  

	9.2	Permitted use 

 The Lessee shall have the full
possession and use of the Ship and the Ship may be employed throughout the world in any lawful trade for which the Ship is suitable subject to (i) the Lessee ensuring that the Ship is insured for the jurisdiction in which it is to operate (in
accordance with clause 13) and to (ii) any limitations imposed by insurers and otherwise (iii) subject to and on the terms and conditions of this Agreement. 
  

	9.3	Other undertakings concerning use 

 The Lessee
shall, and shall procure that each other Transaction Company shall: 
  

	9.3.1	avoid the Ship being operated or employed in any manner, trade or business contrary to Environmental Laws and all other laws or regulations, in any such case to the extent that they
apply to the Ship, its ownership, operation and management or to the business of the Lessee, or in carrying illicit or prohibited goods or in any manner which would render her liable to condemnation or destruction, seizure, confiscation, penalties,
requisition or sanctions or in any manner or trade which would or might reasonably be expected to prejudice the Lessor’s ownership of the Ship unless the Lessee, by virtue of the provisions of the Time Charter as at the date hereof, is not
entitled to prevent such operation or employment; 

  

	9.3.2	without prejudice to the generality of clause 9.3.1 above, ensure and/or procure that the Ship is properly used and, in particular, but without limitation, that it shall:

  

	 	(a)	observe all material recommendations and requirements contained in all handbooks and manuals supplied by or procured from the Builder or the manufacturer or the supplier of
components for the Ship relating to the proper use of the Ship; and 

  

	 	(b)	ensure that the Ship is operated in accordance with the appropriate regulations and recommendations of all competent authorities of the flag state and the jurisdictions in or to
which the Ship is employed or trades from time to time pursuant to the terms of this Agreement and of the Classification Society. 

  

	9.3.3	without prejudice to the generality of clause 9.3.1 above, throughout the Lease Period (and shall procure that any Approved Manager takes all necessary action to):

  

	 	(a)	procure implementation and maintenance of a safety management system (SMS) which complies with the ISM Code, the flag state of the Ship and the Ship’s Classification
Society, which may from time to time be of mandatory application to the Ship and/or the Lessor and/or the Lessee and/or any other Transaction Company; 

	 	(b)	procure the obtaining and maintenance in force at all times of valid certificates evidencing compliance with the requirements of clause 9.3.3(a) above, including, without
limitation, a valid Document of Compliance in relation to the Approved Manager and a valid Safety Management Certificate in respect of the Ship as required by the ISM Code; 

  

	 	(c)	provide the Lessor, at its request, with copies of any such Document of Compliance, Safety Management Certificate and/or International Ship Security Certificate upon issuance;

  

	 	(d)	if and to the extent required pursuant to the ISM Code, keep or procure that there is kept on board the Ship at all times a copy of any such Document of Compliance and the original
of any such Safety Management Certificate; and 

  

	 	(e)	ensure that: 

  

	 	(i)	the Ship has a valid International Ship Security Certificate; 

  

	 	(ii)	the Ship’s security system and its associated security equipment comply with section 19.1 of Part A of the ISPS Code; 

  

	 	(iii)	the Ship’s security system and its associated security equipment comply in all respects with the applicable requirements of Chapter XI-2 of SOLAS and Part A of the ISPS Code;
and 

  

	 	(iv)	an approved ship security plan is in place; 

  

	9.3.4	without prejudice to the generality of clause 9.3.1 above, in the event of the Ship (and for so long as it is) operating in or into or off-shore from the United States of America or
in United States waters, obtain and maintain all Certificates of Financial Responsibility or any equivalent evidence or certificate which may be required from time to time and such other documentation as may be required by the US Coast Guard or any
other relevant US authority and, if so requested by the Lessor, provide copies of Certificates of Financial Responsibility or any equivalent evidence or certificate which may be required from time to time to the Lessor and take all reasonable
precautions to prevent any infringements of the Anti-Drug Abuse Act of 1986 of the United States of America or any similar legislation applicable to the Ship in the flag state or in any jurisdiction in or to which the Ship may be employed or trade
from time to time; 

  

	9.3.5	not at any time represent or hold out the Lessor as carrying goods or persons on the Ship or being in any way connected or associated with any operation or carriage whether for
charter or reward or gratuity or gratuitously which may be undertaken by the Lessee during the Lease Period nor shall the Lessee represent itself as the agent of the Lessor for such purpose; 

  

	9.3.6	 in the event of hostilities in any part of the world, avoid the Ship entering or trading to any zone which is declared a war zone or excluded area by any government
or by the Ship’s war risks insurers unless the Lessee has (at its expense) effected special, additional or modified insurance cover necessary to keep the Ship properly insured in accordance with this Agreement notwithstanding such entry into a
war zone and, either prior to or promptly after such entry, shall have submitted the same to the Lessor to enable the Lessor to verify that such further insurances do meet such requirements and shall have ensured that all requirements under or
pursuant to this Agreement in relation thereto shall have been 

	 	 
complied with and provided further that if the Ship is in a zone when it is declared a war zone or excluded area by the Ship’s war risk insurers or any
government the Lessee shall forthwith at its own expense effect special, additional or modified insurance as necessary to keep the Ship insured in accordance with this Agreement and shall then notify the Lessor in writing giving details of such
insurances. 

 The requirements of this clause 9.3.6 shall be deemed satisfied if the Ship is held covered under a relevant
government programme (by which is meant an insurance or an indemnity programme on terms acceptable to the Lessor, having regard to the insurance requirements set forth in this Agreement, of any member of the European Union and/or the United States
of America or any other country approved by the Lessor); and 
  

	9.3.7	pay all tolls, dues and other outgoings whatsoever in respect of the Ship and the Insurances and keep proper books of account in respect of the Ship and, as and when the Lessor may
so require, make such books available for inspection on behalf of the Lessor. 

  

	9.4	Provision of information in respect of the Ship’s employment and trade 

  

	9.4.1	The Lessee shall procure that the Lessor is advised in writing if the Ship’s trading pattern would or may result in a liability being imposed in the United States of America on
the Lessor for US Transportation Tax, or any equivalent future Tax notwithstanding that, in such circumstances, it shall in such case be the responsibility of the Lessee to attend to all administrative matters relating thereto and to indemnify the
Lessor for any such Tax liability. 

  

	9.4.2	At the Lessor’s request, the Lessee shall provide the Lessor with such information and copy documents which the Lessor reasonably requests in relation to:

  

	 	(a)	the Ship, its employment, position and engagements under the Time Charter; 

  

	 	(b)	copies (duly translated into English) of any charters of the Ship notified to and approved by the Lessor in accordance with clause 10.17 including any voyage or engagement which
requires the Ship to enter into United States waters or operate in or offshore from the United States of America; 

  

	 	(c)	the amount of hire payable in respect of the bareboat chartering, time chartering or other hiring of the Ship and amount of payments and amounts due to the Ship’s master and
crew; 

  

	 	(d)	any expenses incurred, or likely to be incurred, in connection with the operation, maintenance or repair of the Ship and any payments made in respect of the Ship; and

  

	 	(e)	any towages and salvages, 

 provided that (in the case of
information relating to, and copies of contracts for the chartering or hire of the Ship other than the Time Charter) the Lessee is able to procure that such information is provided or such copies are provided, in each case without breaching any
confidentiality covenants on the part of any Guarantor Group Member under such contracts and, if the provision of this information or copies of the applicable charter contracts would, in the opinion of the Lessee (acting reasonably) cause such
covenants to be breached, the Lessee delivers to the Lessor an opinion from the Lessee’s English counsel setting out the reasons why (in the reasonable opinion of the Lessee’s English 

 
counsel) the terms of the proposed charter or sub-charter will not cause the Lessee to be in breach of the covenant in clause 9.2, provided always that if
the Lessor is required by its Tax Authority to disclose any such charter or sub-charter the Lessee shall procure in so far as possible that the applicable Guarantor Group Member obtains the consent of its counterparty to such contract for a copy of
the contract to be provided to the Lessor’s Tax Authority. 
  

	9.4.3	The Lessee shall advise the Lessor promptly of any breach of any provisions of this clause 9.4 and shall thereafter keep the Lessor informed of progress of matters in relation
thereto. 

  

	10	Maintenance and Operation 

  

	10.1	General 

 The Lessee undertakes to comply with the
following provisions at all times during the Lease Period until such time as the Ship is sold except as the Lessor may otherwise permit in writing. 
  

	10.2	Supply and crewing 

 Throughout the Lease Period the
Lessee shall procure that the Ship is manned, victualled, navigated, operated, supplied, fuelled, maintained and repaired, all at no cost to the Lessor. 
  

	10.3	Condition of the Ship 

 The Lessee shall procure
that the Ship and every part thereof is kept in a good and safe condition and state of repair, ordinary wear and tear excepted, and shall ensure that all repairs to or replacements of lost, damaged or worn parts and equipment are effected in such a
manner so as not to diminish the value of the Ship and in any event: 
  

	10.3.1	consistent with first-class ship ownership and management standards in relation to ships of the Ship’s age and type; 

  

	10.3.2	so as to maintain the Ship’s class, namely “DNV, +1A1 Container Carrier, NAUTICUS (Newbuilding), EO, BIS, TMON, COMF-V(3)C(3), NAUT-OC, BMW-E(d), CLEAN, Green
Passport” with Det norske Veritas (or the equivalent classification with another Classification Society), free of overdue conditions affecting the Ship’s class unless waived; 

  

	10.3.3	so as to comply with all laws and regulations, including, without limitation, Environmental Laws, and to maintain all certificates, licences and permits applicable to vessels
registered in the state of registration for the time being of the Ship being pursuant to clause 12 and to vessels trading to any jurisdiction to which the Ship may trade from time to time in any such case unless waived; and 

 

	10.3.4	without prejudice to the foregoing provisions of this clause 10.3, at least to the same standard, on a non-discriminatory basis, as other comparable vessels owned or operated by
companies which are Guarantor Group Members. 

  

	10.4	Master, officers and crew 

 The Master, officers and
crew of the Ship shall be the servants of the Lessee for all purposes whatsoever. The Lessee shall ensure that the wages and allotments and the 

 
insurance and pension contributions as appropriate of the Master, officers and crew shall be regularly paid and all deductions from their wages in respect of
tax liability shall be properly accounted for and the Master shall have no valid claim for disbursements other than those incurred by him in the ordinary course of trading of the Ship. 
  

	10.5	Modifications 

 The Lessee shall procure that no
modification is made to the Ship which would: 
  

	10.5.1	materially and adversely alter the structure, type or performance characteristics of the Ship unless required by the Classification Society of the Ship from time to time; or

  

	10.5.2	reduce the value of the Ship, 

 and in any event the Lessee
shall require the prior written consent of the Lessor for any modifications which are made to the Ship the cost of which exceeds or will when completed exceed five million Dollars ($5,000,000). 
  

	10.6	Surveys 

 The Lessee shall procure that the Ship is
submitted to such periodical or other surveys as may be required by the Ship’s flag state or for classification purposes and shall comply with all conditions affecting the Ship’s class of the Classification Society of the Ship from time to
time in accordance with their terms unless waived and the Lessee shall supply copies of any survey reports to the Lessor upon request from the Lessor. 
  

	10.7	Drydocking 

 The Lessee shall procure that the Ship
is drydocked as often as may be required to ensure that the Ship maintains its classification with its Classification Society and otherwise in accordance with good commercial practice. If the Lessee fails to comply with the requirements of the
relevant Classification Society, the Lessor shall have the right to inspect the Ship in accordance with clause 10.14. If so requested by the Lessor, the Lessee shall give the Lessor reasonable prior written notice of any intended drydocking of the
Ship. 
  

	10.8	Release from arrest 

 Other than in the
circumstances described in clause 6.3.2, the Lessee shall promptly pay and discharge all debts, damages, liabilities and outgoings whatsoever which have given or which may reasonably be expected to give rise to maritime, statutory or possessory
liens (other than Permitted Security Interests) on, or claims enforceable against, the Ship or the Insurances or any part thereof. If at any time during the Lease Period any writ or equivalent claim or pleading in admiralty is filed against the Ship
or the Insurances or any part thereof, or the Ship or the Insurances or any part thereof is arrested or detained or attached or levied upon pursuant to legal process or purported legal process or in the event of the detention of the Ship in the
exercise or the purported exercise of any such lien or claim as aforesaid (other than by reason of a Compulsory Acquisition or by reason of a Lessor’s Security Interest), the Lessee shall procure the release of the Ship and the Insurances from
such arrest, detention, attachment or levy or, as the case may be, the discharge of the writ or equivalent claim or pleading in admiralty as soon as reasonably 

 
practicable and in any event within sixty (60) days of receiving notice thereof by providing bail or procuring the provision of security or otherwise as
circumstances may require. Subject to the provisions of this Agreement, the Lessor shall cooperate with the Lessee to the extent that the Lessee wishes to make any payment through or requires to take any reasonable steps (other than court
proceedings) in the name of the Lessor. 
  

	10.9	Manuals and technical records 

 The Lessee shall
procure that: 
  

	10.9.1	all such records, logs, manuals, technical data and other materials and documents which are required to be maintained in respect of the Ship to comply with any applicable laws or
the requirements of the Ship’s flag state and Classification Society are maintained; 

  

	10.9.2	accurate, complete and up-to-date logs and records of all voyages made by the Ship and of all maintenance, repairs, alterations, modifications and additions to the Ship are kept;
and 

  

	10.9.3	following the occurrence of a Termination Event and for as long as it is continuing on reasonable advance notice from the Lessor, the Lessor or its representatives is permitted at
any time to examine and take copies of such logs and records and other records. 

  

	10.10	Ship’s Software 

 The Lessee shall obtain and
maintain and procure that there are obtained and maintained for the benefit of the Lessor, the Lessee, and the Time Charterer and any other person hiring or chartering or operating the Ship from time to time all licences and permits (without
liability on the part of the Lessor for the payment of any royalties as may be required from time to time in respect of the Ship’s Software) and shall procure that all such licences and permits are granted without any limitation or expiry (or
are renewed prior to any such expiry). 
  

	10.11	Manager 

 The Lessee shall procure that no manager
of the Ship is appointed which is not an Approved Manager. For the avoidance of doubt this shall not be construed as a prohibition on the appointment of sub-contractors by the Approved Manager, providing that the Approved Manager remains responsible
for management of the Ship. 
  

	10.12	Safe operation 

 The Lessee shall take all steps
necessary so as to ensure that the Ship should be navigated and operated in a proper, safe and seaman-like manner and in the manner prescribed by any legislation, including Environmental Laws, in force in the state of registration for the time being
of the Ship and all other applicable jurisdictions. 
  

	10.13	Seaworthiness 

 Save for periods when the Ship is in
dry-dock, the Lessee shall procure that the Ship should at all times be fit to go to sea without serious danger to human life (by reason of the condition, or the unsuitability for its purpose, of either the Ship or its machinery or equipment or any
part of the Ship or its machinery or equipment or undermanning or overloading or unsafe or improper loading or any other matter relevant to the safety of the Ship). 

	10.14	Inspection 

 The Lessee shall ensure that the
Lessor, its surveyors or other persons appointed by it will be permitted to inspect the Ship, upon reasonable notice and without interfering with the Ship’s operation. Such inspections shall be without cost to the Lessee unless either such
inspection reveals that the requirements of this clause 10 are not then being complied with in all material respects or it is made after the occurrence of a Termination Event that is continuing, in which case it shall be at the cost of the Lessee.

  

	10.15	Ship-related expenses 

 The Lessee shall procure
that, in relation to the operation of the Ship, at no time is the Lessor’s credit pledged to pay for any costs of maintenance, repair, operation or use of the Ship or in relation to any of the other matters listed below and the Lessee shall pay
or procure that there is paid within any applicable grace or credit period all costs, charges and expenses arising during or in respect of the Lease Period, from the purchase, exportation, importation, registration, ownership, chartering,
sub-chartering, possession, control, use, operation, maintenance, repair, replacement, refurbishment, overhaul, insurance, storage, redelivery, dry-docking or disposal of the Ship or any modification to or any change or alteration in the Ship and
otherwise howsoever in connection with the Ship, except: 
  

	10.15.1	for Taxes, to which clause 8 shall apply; 

  

	10.15.2	for the Purchase Price of the Ship pursuant to the Novated Building Contract; or 

  

	10.15.3	to the extent that such items are already the subject of indemnification, either under clause 7 or under the Financial Schedule. 

 While the Lessee’s liability to pay ultimately the amount due in respect of any such costs, charges or expenses is not diminished, the Lessee may
delay or refrain from paying any such costs, charges or expenses while it is contesting them in good faith by appropriate steps and provided that adequate reserves have been made to meet such liability in case the Lessee’s contest ceases or is
unsuccessful, for whatever reason and provided that such delay or withholding does not, in the reasonable opinion of the Lessor, carry with it any material risk of arrest, forced sale, loss, confiscation or forfeiture of the Ship or any interest
therein. 
 The Lessee will also not hold out the Lessor as being involved in the operation of the Ship. 
 If a claim is made against the Lessor for payment of any amounts referred to in this clause 10.15, the Lessee shall produce to the Lessor such evidence as
it shall reasonably require of the due payment of any sums referred to in this clause. 
  

	10.16	Notification of certain events 

 The Lessee shall,
immediately upon the same coming to its attention and to the best of its then current knowledge, notify the Lessor by fax (confirmed forthwith by letter) of: 
  

	10.16.1	any casualty of the Ship which is or is likely to give rise to a loss or cost of five million Dollars (US$5,000,000) or more; 

  

	10.16.2	any occurrence as a result of which the Ship has become or is, by the passing of time or otherwise, likely to become a Total Loss; 

	10.16.3	any requirement made by any insurer or Classification Society or by any competent authority which is not complied with within any applicable time period for compliance stipulated by
such authority; 

  

	10.16.4	any arrest or detention of the Ship, any exercise or purported exercise of any lien on the Ship or its Earnings or any requisition of the Ship for hire; 

  

	10.16.5	any Environmental Claim made against the Lessor of which it is or becomes aware or in connection with the Ship, or any Environmental Incident or Environmental Claim in an amount in
excess of one million Dollars ($1,000,000) made against the Lessee or any other Transaction Company or the Time Charterer in connection with the Ship; 

  

	10.16.6	any claim for breach of the ISM Code or the ISPS Code being made against the Lessee or any other Transaction Company or the Time Charterer in connection with the Ship;

  

	10.16.7	any other matter, event or incident, actual or threatened, the effect of which will or is reasonably likely to lead to the ISM Code or the ISPS Code not being complied with;

  

	10.16.8	any claims made in connection with a bodily injury to a third party involving amounts in excess of an amount of one million Dollars ($1,000,000) or its equivalent in any other
currency; 

  

	10.16.9	any Security Interest (other than a Permitted Security Interest) arising over the Ship or the Insurances or Requisition Compensation; and 

  

	10.16.10	any other event in respect of the Ship or the Insurances or Requisition Compensation which the Lessee expects to involve the Lessor in any loss or liability,

 and the Lessee shall keep the Lessor advised in writing on a regular basis and in such detail as the Lessor shall require of
the response to any of those events or matters by the Lessee or the applicable Transaction Company or any other person. 
  

	10.17	Restrictions on chartering 

 The Lessee shall not,
without the prior written consent of the Lessor acting reasonably (which shall be subject to the Lessor being satisfied with the information or documentation or opinion provided in accordance with clause 9.4.2): 
  

	10.17.1	let the Ship on demise charter; 

  

	10.17.2	let the Ship on or enter into any time or consecutive voyage charter in respect of the Ship to the Original Purchaser or any other person who has at any time had a right to acquire
the Ship from the Builder; 

  

	10.17.3	put the Ship into the possession of any person for the purpose of work being done upon it in an amount exceeding or likely to exceed five million Dollars (US$5,000,000) (or the
equivalent in any other currency) unless either: 

  

	 	(a)	that person has first given to the Lessor and in terms satisfactory to it a written undertaking not to exercise any lien on the Ship or its earnings for the cost of such work or for
any other reason; or 

  

	 	(b)	the cost of such work is covered by insurances; or 

	 	(c)	the Lessee establishes to the reasonable satisfaction of the Lessor that it has sufficient funds to pay for the cost of such work; and 

  

	10.17.4	knowingly permit the Time Charterer to enter into any sub-charter of or for the Ship which would breach the terms of the covenant in clause 10.17.2. 

  

	11	Equipment 

  

	11.1	General 

 The following provisions of this clause 11
shall apply at all times during the Lease Period and until such time as the Ship is sold. 
  

	11.2	Use of Equipment 

 The Lessee shall have the use of
all outfit, equipment, furnishings, furniture and fittings, spare and replacement parts belonging to the Ship, and the same or their substantial equivalent shall be returned to the Lessor on redelivery in good order and condition, ordinary wear and
tear excepted, and except for changes and alterations properly made as permitted under this Agreement. 
  

	11.3	Renewal of Equipment 

 The Lessee shall procure
that, at no cost to the Lessor, from time to time during the Lease Period such items of equipment forming part of the Ship as shall be damaged, worn or lost are replaced, renewed or substituted in such manner as not to diminish in any material
adverse way the value of the Ship. Title to any part replaced, renewed or substituted shall remain with the Lessor until the part which replaced it or the new or substituted item of equipment becomes the property of the Lessor or is replaced,
renewed or substituted by an item of equipment which at that time becomes the property of the Lessor. The Lessee shall ensure that title to any such new item of equipment shall be free of all Security Interests and shall vest in the Lessor upon
fitting. 
  

	11.4	Additional equipment 

 At any time any necessary
additional equipment may be fitted so as to render the Ship available for any purpose for which the Lessee may require to use or operate the Ship, subject always to clause 9.3, or as required by any Classification Society, subject to no permanent
structural damage or reduction in value thereby being caused to the Ship by reason of its installation or subsequent removal. Any additional equipment so fitted shall be considered the property of the Lessee who may remove such additional equipment
at any time before the expiration of the Lease Period unless (i) it is agreed between the Lessor and the Lessee that any such equipment shall remain on the Ship after redelivery in which event such equipment shall as from redelivery become the
property of the Lessor, or (ii) such additional equipment is required by any Classification Society. The cost of fitting or removing any equipment together with the cost of making good any damage caused by such fitting or removal shall be
payable in full by the Lessee. 

	12	Title and Registration 

  

	12.1	General 

 The following provisions of this clause 12
shall apply at all times during the Lease Period until such time as the Ship is sold. 
  

	12.2	Title and ownership 

 The Ship shall belong to the
Lessor and title to and ownership of the Ship shall remain vested in the Lessor. The Lessee shall have no right, title or interest in or to or any option or any right to acquire title to or any proprietary interest in or to any part of the Ship
except the rights expressly set out in this Agreement. 
  

	12.3	Approved Flag States 

  

	12.3.1	As at the date of this Agreement (but subject always to clause 12.3.2 and to the following states or countries satisfying and continuing to satisfy the criteria set out in clause
12.5 below), the Lessor agrees that any of Hong Kong, the Marshall Islands, the United Kingdom, Liberia, Bermuda or the Bahamas is acceptable to the Lessor as a state or country in which the Lessor agrees the Ship may be registered.

  

	12.3.2	If the Lessor gives notice to the Lessee that any of the above mentioned states or countries falls within the restrictions or circumstances set out in clause 12.5 below, the
applicable state or country shall cease to be an Approved Flag State for the purposes of this Agreement. 

  

	12.4	Registration 

 The Lessee agrees at its expense
(and, in relation to clause 12.4.1 below, the Lessor agrees to provide all requisite assistance to the Lessee so as to enable the Lessee) to: 
  

	12.4.1	subject to clause 12.3.2 and to the criteria set out in clause 12.5 below, procure that at Delivery the Ship is, and thereafter throughout the Lease Period remains, registered in
the name of the Lessor under the laws and flag of an Approved Flag State at the applicable time; and 

  

	12.4.2	(subject to clause 12.5 below) procure throughout the Lease Period that the registration of the Ship is maintained under the laws and flag of an other Approved Flag State and shall
not knowingly do or suffer to be done anything whereby such registration may be forfeited or imperilled; and 

  

	12.4.3	pay, and indemnify the Lessor from and against, all registration and other charges and fees that may from time to time be payable in respect of such registration.

  

	12.5	Reflagging 

  

	12.5.1	 The Lessor may require the Lessee (at its cost and expense) to re-register the Ship under the laws and flag of any other state or jurisdiction (including, but not
limited to, the Approved Flag States referred to in clause 12.3 above) in the event that (a) it becomes unlawful, impossible, impracticable or (in the opinion of the Lessor, acting in good faith) undesirable (including, without limitation, by
reason of change of legal or political circumstances) for the Lessor to continue to be registered as the owner of the Ship under 

	 	 
the laws and flag of its then current register or (b) if classification inspections for vessels registered under the laws and flag of the state in which
the Ship is registered at the relevant time are no longer undertaken by a classification society which is a member of IACS. 

  

	12.5.2	The Lessee, upon not less than 15 days written notice to the Lessor (or such shorter period as the Lessor may agree, such agreement not to be unreasonably withheld) and provided
that no Relevant Event has occurred and is continuing, may elect to re-register the Ship in a state listed in clause 12.3.1 or any other state or country approved by the Lessor, such approval not to be unreasonably withheld or delayed, subject to:

  

	 	(a)	the Ship being registered in the name of the Lessor, free from Security Interests other than Permitted Security Interests in the applicable register in such flag state;

  

	 	(b)	inspections of the Ship required by the proposed new flag state continuing to be undertaken by a classification society which is a member of IACS; 

  

	 	(c)	it being possible to obtain a legal opinion satisfactory to the Lessor in its discretion in relation to the laws of such proposed flag state as to the validity and enforceability of
the Lessor’s ownership interest in the Ship contemplated by the Transaction Documents; 

  

	 	(d)	the Lessor’s liability as owner of the Ship not increasing as a result of such change of flag; and 

  

	 	(e)	the right of the Lessor to treat the applicable state or country as being unacceptable in the future in accordance with clause 12.5.1 above. 

  

	12.5.3	The Lessor agrees, at the request and cost of the Lessee, promptly to take such actions as are available to the Lessor and which must be performed exclusively by the registered
owner of the Ship and not the operator of the Ship in order to assist the Lessee to re-register the Ship in any Approved Flag State. 

  

	12.5.4	All costs and expenses (including legal costs and expenses and Taxes thereon and any appropriate fee in respect of the Lessor’s Management Time notified by the Lessor to the
Lessee as having been properly incurred and which fee will be charged at the Lessor’s Management Time Cost Rate) properly incurred in connection with any re-registration pursuant to clause 12.5 shall be borne by the Lessee and any such costs
and expenses reasonably incurred by the Lessor shall be reimbursed by the Lessee on demand. The provisions of clause 12.4 shall, with any necessary modifications, apply following any re-registration. 

  

	12.6	Name, colours etc. 

  

	12.6.1	The Ship shall be painted in such colours and display such funnel insignia as the Lessee may from time to time lawfully require. The Lessee shall notify the Lessor of any intended
change in the name of the Ship. At the request and cost of the Lessee, the Lessor agrees to take such actions as are available to the Lessor and which must be performed exclusively by the registered owner of the Ship and not the operator of the Ship
in order to assist the Lessee in relation to any registration formalities required in connection with a change of the Ship’s name. 

  

	12.6.2	 All costs and expenses (including legal costs and expenses and any appropriate fee in respect of the Lessor’s Management Time notified by the Lessor to the
Lessee as having 

	 	 
been properly incurred and which fee will be charged at the Lessor’s Management Time Cost Rate) properly incurred in connection with any registration
formalities required in connection with a change of the Ship’s name shall be borne by the Lessee and any such costs and expenses reasonably incurred by the Lessor shall be reimbursed by the Lessee on demand. 

  

	12.7	Encumbrances 

 The Lessee shall not (save pursuant
to the express powers conferred by this Agreement): 
  

	12.7.1	attempt or hold itself out as having any power to sell, charge or otherwise encumber or to sell or otherwise dispose of the Ship or any interest therein; or

  

	12.7.2	let the Ship otherwise than as provided in this Agreement; or 

  

	12.7.3	create, incur, suffer or permit to exist any Security Interest (other than Permitted Security Interests) on or over the Ship, its earnings or on or over the Insurances,

 and agrees to carry a properly certified copy of this Agreement with the Ship’s papers and to exhibit the same to any
person having business with the Ship which might give rise to any Security Interest thereon other than Permitted Security Interests. 
  

	12.8	Protection of Lessor 

 The Lessee shall seek to
avoid anything being done which jeopardises the rights of the Lessor in the Ship or any part thereof and/or seek to avoid any omission which would prevent those rights from being exercised or enjoyed. 
  

	12.9	Notice of Lease 

 The Lessee shall place and keep or
procure that there is placed and kept prominently displayed in the control room of the Ship throughout the Lease Period a framed printed notice in plain type in English of such size that the paragraph of reading matter shall cover a space of not
less than six (6) inches wide by nine (9) inches high, substantially reading as follows: 
 “NOTICE OF OWNERSHIP AND
LEASE” 
 “This Ship is owned by Peony Leasing Limited (the “Lessor”) and is subject to a lease agreement between the
Lessor and Seaspan Finance I Co. Ltd (the “Lessee”). Neither the Lessee nor any manager, nor the master of the Ship nor any servant or agent of any of them have any right, power or authority whatsoever to contract on behalf of the Lessor
or to pledge the credit of the Lessor or the involvement of the Lessor in any liability whatsoever and none of the Lessee, any manager, the master of the Ship and any other person has any right, power or authority to create, incur or permit to be
imposed upon this Ship any Security Interest whatsoever except for general average, crew’s wages or salvage” 
 or
in such other form as the Lessor may reasonably require from time to time. 
  

	12.9.1	The Lessee shall not remove or cover up such notice, and will not place or permit to be placed any other notice affecting the ownership of the Ship or otherwise relating to the
rights of the Lessor in or on the Ship or any part thereof save as is expressly permitted or required by the Transaction Documents without the prior written consent of the Lessor. 

	13	Insurances 

  

	13.1	General 

 The Lessee undertakes with the Lessor to
procure that the following provisions of this clause 13 are complied with at all times during the Lease Period and, thereafter, until the Ship is sold, either by the Lessee or by any Guarantor Group Member to whom the Lessee delegates its rights and
duties as sales agent in accordance with clause 2.8.9, except as the Lessor may otherwise permit. The Lessee confirms that throughout the Lease Period until the Ship is sold, the Ship shall be in every respect at the risk of the Lessee. 

 

	13.2	Maintenance of Insurances 

 The Ship shall be kept
insured at no cost to the Lessor against: 
  

	13.2.1	fire and usual marine risks (including excess risks) and war risks; 

  

	13.2.2	protection and indemnity risks (including pollution risks and excess war protection and indemnity risks), on “full entry” terms; and 

  

	13.2.3	in respect of such other matters of whatsoever nature and howsoever arising in respect of which insurance would be maintained by a prudent owner or operator of vessels of a similar
age, condition and type as the Ship and which may be requested by the Lessor from time to time (other than (i) the amount of any deductible, and (ii) loss of earnings/hire). 

  

	13.3	Terms of Insurances 

 Such Insurances shall be
effected: 
  

	13.3.1	in Dollars or such other currency as the Lessor and the Lessee may agree; 

  

	13.3.2	in the case of fire and usual marine risks and war risks (on an agreed value basis) in an amount equal to the greater of (i) 120% of the highest Termination Sum applicable to
the period for which the insurances are renewed and (ii) the market value of the Vessel; 

  

	13.3.3	in the case of protection and indemnity risks (including pollution liability risks), in an amount equal to the highest amount in respect of which cover is in accordance with
customary insurance market practice taken out by prudent owners or operators of vessels of a similar type, size, age, condition and flag as the Ship with protection and indemnity risks associations that are members of the International Group of
Protection and Indemnity Associations (but in the case of pollution risks, for a minimum amount of one billion Dollars ($1,000,000,000) or where cover for such risks is not available in such an amount, such lesser amount as is the best level of
cover available in the market at the applicable time); and 

	13.3.4	on terms approved under clause 13.19, but subject to a minimum requirement of the scope of coverage of that provided by the Norwegian Marine Insurance Plan 1996 or as provided by
the equivalent full conditions forms of other nationality (so far as can be reasonably obtained in the market at the applicable time); and 

  

	13.3.5	through brokers and with insurance companies and/or underwriters or, in the case of war risks and protection and indemnity risks, in war risks and protection and indemnity risks
associations, in each case approved under clause 13.19. 

  

	13.4	Further protection for Lessor 

 In addition to the
terms set out in clause 13.3, the Insurances effected under such clause shall: 
  

	13.4.1	name (or be amended to name) the Lessor as additional assured (in the case of the Insurances referred to in clause 13.2.1) and (in the case of Insurances referred to in clause
13.2.2 and war risks insurance if such risks are insured against by entry of the Ship in a war risks association) either as an assured with limited rights on “misdirected arrow” conditions in accordance with the usual terms of the club or
association or (at the option of the Lessor) as a joint member for its rights and interests and, as between the Lessor and the Lessee, without the Lessor being liable to pay (but having the right to pay) premiums, calls or other assessments in
respect of such Insurances and the Lessee hereby agrees to promptly indemnify the Lessor against any liability the Lessor may have for premiums, calls or other assessments in respect of any such Insurances; 

  

	13.4.2	in the case of the Insurances in respect of marine risks and war risks, be endorsed by way of a loss payable clause to the effect that: 

  

	 	(a)	payment of a claim for a Total Loss will be made to the Lessor (who shall, upon receipt thereof, apply the same in accordance with clause 14.3); 

  

	 	(b)	payment of a claim for an amount which equals or exceeds the threshold amount attributable to a Major Casualty amount shall be paid to the Lessor and, subject to no Relevant Event
then having occurred which is continuing (after which such sums shall be applied in accordance with clause 14.3) shall be applied as follows: 

  

	 	(i)	the sum received by the Lessor shall be paid over to the Lessee or any other applicable Transaction Company subject to the Lessor receiving evidence satisfactory to the Lessor that
all loss and damage resulting from the casualty has been properly made good and repaired and that all repair accounts and other liabilities connected with the casualty have been paid by the Lessee or by any other Transaction Company; and

  

	 	(ii)	the insurers with whom the fire and usual marine risks and war risks insurances are effected may in the case of any Major Casualty, and with the prior written consent of the Lessor
(such consent not to be unreasonably withheld or delayed) make payment on account of the repairs which are being carried out; and 

  

	 	(c)	 as long as no Relevant Event has occurred and is continuing, payment of any other claim shall be made to the Lessee or, as applicable, such other Transaction
Company, who shall apply the same in or towards making good the loss and fully repairing all damage in respect whereof such payment shall have been made and 

	 	 
after the occurrence of a Relevant Event and whilst it is continuing and following notification by the Lessor to the approved brokers, payment of any such
claim shall be made to the Lessor; and 

  

	 	(d)	in the case of the Insurances in respect of protection and indemnity risks, be endorsed by way of a loss payable clause to the effect that moneys payable thereunder shall be paid in
reimbursement of the assured which has settled the liability to which the relevant claim relates or, if so agreed by the relevant insurers, be paid directly to the person to whom was incurred the liability in respect of which the relevant money was
paid unless and until the Lessor, following the occurrence of a Relevant Event which is continuing, shall direct that they shall be paid to the Lessor whereupon they shall be paid to the Lessor. 

  

	13.5	Renewals 

  

	13.5.1	As soon as possible, but in any case not less than seven (7) days before the expiry of any of the policies, entries or contracts forming part of the Insurances or if there is a
change in the insurers and/or markets through whom the Insurances are placed, the Lessee shall notify the Lessor of the names of the brokers (or other insurers) and any protection and indemnity and/or war risks association through or with whom such
Insurances are proposed to be renewed and (if any material change is proposed) of the proposed terms and amounts of renewal. The Lessee shall also promptly notify the Lessor of any material change in the information notified to the Lessor pursuant
to this clause 13.5.1 and shall provide the Lessor with particulars of such changes. If at any time the terms and amounts on and for which the Insurances are proposed to be renewed or the identity of the broker or war or protection and indemnity
risks associations with whom the Insurances are proposed to be renewed are not approved by the Lessor, as contemplated by clause 13.19, the Lessor shall notify the Lessee promptly in writing of the withdrawal of its approval, and the Lessee shall
procure that the Insurances are renewed or replaced on terms satisfactory to the Lessor. 

  

	13.5.2	Before the expiry of any Insurances the Lessee shall procure that such relevant Insurances are renewed and shall confirm to the Lessor that such renewals have been effected or shall
procure that such confirmation is given to the Lessor before the expiry of any such Insurances. 

  

	13.5.3	Promptly after each such renewal, the Lessee shall procure that the Lessor is provided with the details of the terms and conditions and amounts on which and for which such
Insurances have been renewed. 

  

	13.5.4	If, after renewal and after review by the Lessor of the terms and conditions of renewal, the Lessor advises the Lessee that the terms and conditions of such Insurances as renewed,
do not conform with the requirements of this clause 13 (which advice shall specify the particular discrepancies) then, after consultation with the Lessor, the Lessee shall ensure that any such discrepancies are corrected promptly.

  

	13.6	Custody of Policy Documents/Loss Payable Clauses 

 The Lessee shall procure that there shall be deposited with the brokers and/or insurers through which the Insurances are arranged from time to time copies of all slips, cover notes, policies certificates of entry or other instruments of
insurance from time to time issued in connection with such of the Insurances referred to in this clause 13 as are effected 

 
through such brokers and/or the war risks and protection and indemnity association approved in accordance with clause 13.19 and shall also procure that,
in the case of the Insurances referred to in clause 13.2.1, the interest of the Lessor shall be endorsed on the relevant cover note or policy and, in the case of the protection and indemnity Insurances referred to in clause 13.2.2, the interest
of the Lessor shall be endorsed on the relevant certificate of entry or policy, in each case in addition to incorporation of the relevant loss payable clause and the Lessee shall procure that the Lessor shall be furnished with copies of the relevant
cover note or policy or certificate of entry or policy, duly endorsed. 
  

	13.7	Letters of undertaking 

 In relation to all
Insurances effected from time to time under and in accordance with this clause 13, the Lessee shall ensure that all brokers and/or insurers and any protection and indemnity or war risks associations in which the Ship is entered, in each case being
approved under clause 13.19, provide the Lessor with letters of undertaking: 
  

	13.7.1	in the case of an approved broker, in such form as represents the then current market practice in the insurance market in which the approved broker operates and any professional
association of which that approved broker is a member; and 

  

	13.7.2	in the case of a protection and indemnity association, having regard to the current market practice and the practices prescribed by the International Group of Protection and
Indemnity Associations or, if the relevant protection and indemnity association is not a member of the International Group of Protection and Indemnity Associations but has otherwise been approved by the Lessor in accordance with clause 13.19, the
current practice of that association (and which will for all purposes provide for notification to the Lessor prior to the cancellation of any such entry); and 

  

	13.7.3	in the case of a war risks association, having regard to the current market practice in the insurance market in which such association operates. 

  

	13.8	Fleet Cover 

 If any of the Insurances referred to
in clause 13.2.1 and/or 13.2.2 form part of a fleet cover, the Lessee will procure that (a) any letter of undertaking referred to in clause 13.7 is amended to provide that the relevant brokers shall undertake to the Lessor that they shall
neither set-off against any claims in respect of the Ship any premiums due in respect of other vessels under such fleet cover or any premiums due for other insurances, nor cancel the insurance for reason of non-payment of premiums for other vessels
under such fleet cover or of premiums for such other insurance or (b) that the applicable policy documents are endorsed to the effect that the applicable insurers shall neither set-off against any claims in respect of the Ship any premiums due
in respect of other vessels under such fleet cover or any premiums due for other insurances, nor cancel the insurance for reason of non-payment of premiums for other vessels under such fleet cover or of premiums for such other insurance or
(c) that the Lessor receives other comfort that this will not occur. 
  

	13.9	No material adverse alteration 

 The Lessee shall
comply with the terms and conditions of the Insurances and shall not do and shall ensure that there is no act or omission which would give rise to a right to cancel any Insurances or render any Insurances, or any policy or policies or certificate or
certificates of entry invalid, void, or unenforceable or render any sum paid out under any 

 
policy or policies or certificate or certificates of entry or the Insurances evidenced thereby repayable in whole or in part. The Lessee will not make, and
shall procure that no material alteration is made to the terms of any of the Insurances without the prior written consent of the Lessor. 
  

	13.10	Operation outside terms of Insurances 

 The Lessee
will take all steps necessary so that: 
  

	13.10.1	the Ship is not operated in any way inconsistent with the provisions or warranties of or implied in, or in contravention of the cover provided by, any Insurance taken out in
accordance with this clause 13; 

  

	13.10.2	the Ship is not engaged in any voyage or to carry any cargo not permitted by any Insurance, in each case without first obtaining the consent (if necessary) of the insurers to such
operation or engagement and complying with such requirements as to extra premium or otherwise as the insurers may prescribe; or 

  

	13.10.3	all requisite certificates of financial responsibility and/or other consents, licences, approvals or authorisations as may from time to time be required are obtained and maintained
if the Ship is likely to be operating in or into or off-shore from the United States of America. 

  

	13.11	Payment of premiums and calls 

 The Lessee shall
procure that (taking account of any applicable grace period) all premiums, calls, contributions or other sums of money from time to time due in respect of any Insurance are paid punctually and in full. 
  

	13.12	Notification of Total Loss 

 The Lessee shall
procure that the Lessor is notified of: 
  

	13.12.1	the levy of any distress on the Ship or its arrest, detention, seizure, condemnation as prize, Compulsory Acquisition or requisition for title or use; and 

 

	13.12.2	(save in the case of Compulsory Acquisition or requisition for title or use or any capture, seizure, arrest, detention or confiscation of the Ship by any government, or by persons
acting or purporting to act on behalf of any government) any accident, casualty or other event which has caused or resulted in or is likely to cause or result in the Ship being or becoming a Total Loss. 

  

	13.13	Settlement of claims 

  

	13.13.1	The Lessee shall do all things necessary and provide all documents, evidence and information to enable the Lessor to collect or recover any moneys which at any time become due and
payable to the Lessor or otherwise under in respect of the Insurances. 

  

	13.13.2	 Subject to the Lessee having provided any necessary security in a timely manner so as to prevent the actual or continued arrest of the Ship and subject also to
clause 7.6 and provided that no Termination Event or Mandatory Prepayment Event shall have occurred and be continuing, the Lessor agrees that the Lessee shall have the right to settle, compromise or abandon any claim under the Insurances for Total
Loss or in respect of a 

	 	 
Major Casualty or to give notice of abandonment of the Ship to the insurers and/or to claim a constructive Total Loss upon the prior written approval of the
Lessor (such approval not to be unreasonably withheld or delayed) but that the Lessor itself shall not settle, compromise or abandon any such claim without reference to the Lessee prior to the occurrence of any Termination Event or Mandatory
Prepayment Event. After the occurrence of any Termination Event or Mandatory Prepayment Event while it is continuing or after termination of leasing of the Ship to the Lessee pursuant to clause 18.1 or, as the case may be, clause 18.2 the Lessor
alone shall have the right to settle, compromise or abandon any claims under the Insurances and/or give notice of abandonment of the Ship to the Insurers and/or claim a Constructive Total Loss. 

  

	13.14	P & I Guarantee 

 The Lessee shall arrange for
the execution and delivery of all guarantees and indemnities as may from time to time be required by the Ship’s P & I Club or war risks association. 
  

	13.15	Additional Insurance 

 Nothing in this clause 13
shall prohibit the Lessee from placing additional insurance on the Ship at its own expense and for its sole benefit provided however that: 
  

	13.15.1	such insurance shall not prejudice the Insurances or recovery thereunder or exceed the amount permitted by warranties or other conditions contained in the Insurances without the
written consent of the insurers of the Insurances; 

  

	13.15.2	where the written consent of the insurers as referred to in clause 13.15.1 is required, the Lessee shall procure that there shall be promptly furnished to the Lessor a copy of such
consent and, in all cases, with particulars of any additional insurance effected including copies of any cover notes or policies; and 

  

	13.15.3	any insurance payments received by the Lessor arising solely from additional insurance effected by the Lessee under this clause 13.15 less amounts due (if any) by the Lessor in
respect of Taxes in relation to the sums received shall be paid by the Lessor to the Lessee promptly after receipt thereof. 

  

	13.16	No Security Interest 

 The Lessee shall not, and
shall procure that no other Transaction Company nor the Time Charterer will, create or permit to exist any Security Interest over or in respect of the Insurances save for the approved brokers’ or insurers’ right of set off and lien for
unpaid premiums to the extent permitted by clause 13.8, and save for any security interest created by the Lessee in favour of the Security Trustee pursuant to and in accordance with the Proceeds Deed. 
  

	13.17	Provision of copies of communications 

 At the
Lessor’s request the Lessee shall procure that there is provided to the Lessor at the time of each such communication, copies of all material written communications between the Lessee, or any other Transaction Company and: 
  

	13.17.1	the approved brokers; and 

  

	13.17.2	the approved protection and indemnity and/or war risks associations; and 

	13.17.3	the approved insurance companies and/or underwriters; 

 which relate directly or indirectly to: 
  

	 	(a)	the Ship and the obligations of the Lessee or any other Transaction Company relating to the Insurances including, without limitation, all requisite declarations and payments of
additional premiums or calls and all communication relating to non-payment of premiums or calls and cancellation of any of the Insurances or relating to the imposition of any material new or modified condition, warranty, exclusion or qualification
or the material alteration of the Insurances; and 

  

	 	(b)	any credit arrangements made between the Lessee or any other Transaction Company and any of the persons referred to in paragraphs 13.17.1 to 13.17.3 relating wholly or partly to the
effecting or maintenance of the Insurances. 

  

	13.18	Provision of information 

 The Lessee shall procure
that there shall be provided promptly any information reasonably required for the purpose of the Lessor obtaining or preparing any report from a reputable international independent marine insurance broker or adviser appointed by the Lessor as to the
adequacy of the Insurances effected or proposed to be effected, and the Lessee shall, promptly upon demand, indemnify the Lessor in respect of reasonable fees incurred by or for the account of the Lessor in connection with one such report prepared
immediately prior to Delivery and at annual intervals thereafter, but only following either any material change to the terms of any of the Insurances or a change in the identity of the approved brokers, the approved protection and indemnity and/or
war risks association or the approved insurance companies and/or underwriters. 
 The Lessee shall also, on the Lessor’s request (not
more frequently than annually and, in case of a policy period of more than 12 months, not more than once in each policy period), provide copies of all policy documents and certificates of entry relating to the Insurances which are in the possession
of the Lessee, its agents or managers or the approved brokers. 
  

	13.19	Approval process 

 At all times the Lessor’s
approval must be obtained in relation to placement and renewal of Insurances, particularly with respect to requirements as to amounts and terms of insurance and identity of brokers and insurers. The Lessor will act promptly and will not act
unreasonably in relation to giving its approval in relation to these matters, and will give its approval to any insurer which has (and maintains) a credit rating of not less than A- with Standard & Poor’s (or equivalent rating with
another first class rating agency). 
  

	13.20	Insurance review 

 From time to time during any
period of insurance cover the Lessor may review the terms of and identity of brokers, insurance companies and underwriters and war risks or protection and indemnity associations through which the Ship is insured under this clause 13. Such review
shall be made in consultation with the Lessee and shall be undertaken at least three (3) months prior to the date for renewal of such insurance cover. After consultation, the Lessee shall implement such modifications as the Lessor may
reasonably request in order to seek to ensure that such insurances at all times cover all risks which may customarily and generally be covered in transactions similar to that covered by this Agreement and that the terms of such insurances and the
identity of brokers, underwriters, insurance companies and associations will continue to be approved by the Lessor, as provided for in clause 13.19. 

	13.21	Innocent Owner’s Insurance/Contingent Liability Insurance 

 Nothing contained in this clause 13 shall affect the Lessor’s right to take out innocent owner’s or contingent liability insurance in relation to the insurances of the Ship for its own account, and the
Lessor shall be so entitled. 
  

	13.22	Wreck Removal 

 In the event of the Ship becoming a
wreck or obstruction to navigation, the Lessee (in addition to any other obligation it may have under clause 7) shall indemnify and hold harmless the Lessor against all costs, expenses, payments, charges, losses, demands, any liabilities, claims,
actions, proceedings (whether civil or criminal) penalties, fines, damages, judgments, orders or other sanctions which may be incurred by, or made or asserted against the Lessee by reason that the Ship shall have become a wreck or obstruction to
navigation (including, without limitation) in respect of the removal or destruction of the wreck or obstruction under statutory powers but only to the extent that such has not been recovered from the Ship’s insurers. 
  

	14	Loss, Damage, Requisition and Salvage 

  

	14.1	Risk 

 Throughout the Lease Period and until such
time as the Ship is delivered to a purchaser the Lessee shall bear the full risk of: 
  

	14.1.1	any Total Loss of or any other damage to the Ship howsoever arising; and 

  

	14.1.2	subject to clause 6.1 any other occurrence of whatever kind which deprives the Lessee of the use, possession or enjoyment of the Ship. 

  

	14.2	Payments on Total Loss or Compulsory Acquisition 

 If the Ship becomes a Total Loss after the Delivery Date, on the Total Loss Payment Date the Lessee will pay to the Lessor the amounts pursuant to and determined in accordance with clause 18.4. Any Total Loss Proceeds or any Requisition
Compensation actually and unconditionally received by the Lessor following a Total Loss or Compulsory Acquisition will be applied in accordance with clause 14.3. 
  

	14.3	Application of Total Loss Proceeds 

 All Net Total
Loss Proceeds and Requisition Compensation received by the Lessor shall be retained in full by the Lessor and shall be applied as follows: 
 FIRST: in retention by the Lessor of an amount equal to nought point nought one per cent. (0.01%) of the Net Total Loss Proceeds; 
 SECOND: in payment to the Lessor of amounts equal to all or any part of the Termination Amount as at the date of the receipt by the Lessor of the Net Total Loss Proceeds which have not, on or before the date of application of the Net Total
Loss Proceeds, been paid to the Lessor by or on behalf of the Lessee; 

 THIRD: in or towards settlement of any other amounts then due and payable but unpaid by the Lessee to the
Lessor under the Transaction Documents and any amounts then due and payable but unpaid by the Lessee to the Lessor under the Sister Ship Transaction Documents; and 
 FOURTH: the remainder in payment to the Lessee by way of rebate of Rental. 
  

	14.4	Payments to Lessee 

 Any payment to the Lessee under
“FOURTH” of clause 14.3 shall be made reasonably promptly but in any event within five (5) Business Days following the date of actual and unconditional receipt by the Lessor of the Net Total Loss Proceeds and the determination by the
Lessor of the application thereof in accordance with clause 14.3. 
  

	14.5	Continuation of Lease Period 

 Notwithstanding that
the Ship has become a Total Loss, the Lessee shall continue to pay Rental under this Agreement until all sums due by the Lessee to the Lessor under clause 14.2 have been paid in full. The Lease Period will end on the date on which all sums due under
clause 14.2 have been paid provided however that if the Net Total Loss Proceeds are insufficient to satisfy the amounts to be retained by the Lessor pursuant to the applications in “FIRST”, “SECOND” and “THIRD” set
out in clause 14.3, the provisions of clause 5.3 shall apply. 
  

	14.6	Damage claims 

 Moneys, other than Total Loss
Proceeds, received by the Lessor in respect of claims for repairable damage to the Ship shall be applied in the manner described in clause 13.4.2(b). 
  

	14.7	Sale of Ship after Total Loss 

 If the insurers of
the Ship have: 
  

	14.7.1	satisfied or admitted in full their obligations under the Insurances; and 

  

	14.7.2	waived any rights they have in the Ship, 

 the Lessor shall
as soon as practicable after the Total Loss Payment Date use all reasonable endeavours to sell the Ship and such sale shall, save for the foregoing obligation as to timing, be concluded in accordance with the provisions of clause 2.9. 
  

	14.8	Abandonment 

  

	14.8.1	If no Termination Event or Mandatory Prepayment Event has occurred and is continuing, the Lessee has the sole right to determine whether or not a case has arisen for the giving of
notice of abandonment to abandon the Ship to the insurers and/or claim a constructive Total Loss. 

  

	14.8.2	The Lessor authorises the Lessee to give such a notice if it so determines. 

  

	14.8.3	 The Lessor will upon the request and at the cost of the Lessee promptly execute all such documents as may be required to enable the Lessee to abandon the Ship to
the insurers and/or to claim a constructive Total Loss. The Lessor will give to the Lessee all 

	 	 
reasonable assistance in processing such a claim Provided that any costs reasonably incurred by the Lessor pursuant to this clause 14.8.3 shall be reimbursed
by the Lessee to the Lessor promptly following the Lessor’s demand. 

  

	14.9	Salvage and towage 

 All salvage and towage and all
proceeds from derelicts will be for the benefit of the Lessee, subject to the prior right of the Lessor to retain from those proceeds any sums due and payable to it under this Agreement, and the cost of repairing any damage occasioned in the course
of salvage or towage shall be borne by the Lessee. 
  

	14.10	Requisition for hire of the Ship 

 If the Ship is
requisitioned for hire by any governmental or other competent authority during the Lease Period then, if and only for so long as such requisition for hire does not constitute a Compulsory Acquisition: 
  

	14.10.1	the leasing of the Ship under this Agreement shall continue (subject always to the provisions of clauses 17 and 18) for the remainder of the Lease Period and the Lessee shall remain
fully responsible for the due compliance with all its obligations under this Agreement other than such obligations which the Lessee is unable to comply with by virtue of such requisition; 

  

	14.10.2	if no Termination Event or Mandatory Prepayment Event has occurred and is continuing, the Lessee shall be entitled during the Lease Period as between the Lessor and the Lessee to
all requisition hire paid to the Lessor or to the Lessee by such governmental or other competent authority or by any person acting by the authority of the same on account of such requisition, but subject always to any right of set-off which the
Lessor may have in respect of amounts due and unpaid under the terms of this Agreement and the other Lease Documents; 

  

	14.10.3	as soon as practicable after the end of any requisition for hire, and whether that requisition shall end during or after the expiry or termination of the Lease Period, the Lessee
shall cause the Ship to be put into the condition required by this Agreement; 

  

	14.10.4	the Lessor shall be entitled to all compensation payable by the relevant governmental or other competent authority, or by any person acting by the authority of the same, in respect
of any change in the structure, state or condition of the Ship arising during the period of requisition for hire (and such compensation shall be paid to the Lessee by way of rebate of Rental unless a Termination Event or Mandatory Prepayment Event
shall have occurred and be continuing in which event the Lessor shall be entitled to apply such compensation in or towards discharge of any and all amounts which are then owing to the Lessor under any of the Lease Documents or any of the other
Transaction Documents); and 

  

	14.10.5	should the Ship be under requisition for hire at the end of the Lease Period: 

  

	 	(a)	 the leasing of the Ship under this Agreement shall nevertheless be terminated at the end of the Lease Period (unless otherwise agreed between the Lessor and the
Lessee) but without prejudice to the accrued rights of the parties including, without prejudice to the generality of the foregoing, the obligations of the Lessee under clause 15 (as modified by paragraph (b) below), and the Lessor shall (for so
long as it remains the owner of the Ship) be entitled to receive and retain any requisition hire payable in respect of the period from the expiry or termination of the Lease 

	 	 
Period it being agreed however that, subject to the Lessee having paid to the Lessor in full all amounts due by it under the Transaction Documents and under
the Sister Ship Transaction Documents and to the Lessor first having retained out of such requisition hire such amount as it certifies as representing its continuing costs of owning and managing the Ship (including Lessor’s Management Time at
the Lessor’s Management Time Cost Rate), the Lessor shall upon the eventual sale of the Ship pay to the Lessee by way of rebate of Rental any remaining surplus amount of such requisition hire; and 

  

	 	(b)	without prejudice to clause 14.10.3 the Lessee shall, if it is prevented by reason of the requisition for hire from re-delivering the Ship under clause 15, be relieved from its
obligations so to do, but shall consult with the Lessor as to the most convenient method of enabling the Lessor to obtain redelivery of the Ship when the Ship is released from such requisition. 

 The Lessor shall be under no obligation to provide to the Lessee, or to any other person, any replacement for the Ship or any part thereof should the Ship
or any part thereof be lost, damaged, the subject of Compulsory Acquisition, seized, or requisitioned for hire or use, nor shall the Lessor have any liability or responsibility whatsoever in respect thereof (unless and to the extent that the same
results from any Lessor Breach. 
  

	15	Redelivery 

  

	15.1	Redelivery procedure 

  

	15.1.1	As soon as reasonably practicable following the termination of the leasing of the Ship under this Agreement (other than pursuant to clause 14.5), or upon the ending of the Lease
Period by effluxion of time, the Lessee at its own expense shall redeliver the Ship to the Lessor safely afloat in accordance with this clause 15 (but subject to the rights of the Time Charterer) and in any event before the fifth anniversary of
Delivery. 

  

	15.1.2	Upon the ending of the Lease Period by effluxion of time or upon the termination of the leasing of the Ship under this Agreement (other than a termination pursuant to clause 14.5 or
any termination where the Lessee is not acting as sales agent of the Lessor) the Lessee, at its own expense, shall deliver the Ship safely afloat to a purchaser of the Ship who satisfies the requirements of clause 2.7 at such location (including
without limitation, at sea) as shall be mutually agreed between the Lessee (as agent of the Lessor) and the purchaser upon completion of the sale of the Ship in accordance with clause 2.7 (and such delivery by the Lessee shall be deemed to have
satisfied the obligation of the Lessee to redeliver the Ship to the Lessor) and subject to the rights of the Time Charterer. 

  

	15.1.3	Upon the termination of the leasing of the Ship under this Agreement where the Lessee is not acting as sales agent of the Lessor, the Lessee, at its own expense, shall redeliver the
Ship safely afloat to the Lessor at a safe port worldwide to be designated by the Lessor acting reasonably and bearing in mind the location and trading pattern of the Ship as at the time of any required redelivery. 

  

	15.2	Redelivery condition 

 The Lessee shall ensure that
on any redelivery of the Ship to the Lessor in accordance with clause 15.1.3 above and on any deemed redelivery to the Lessor in accordance with clause 15.1.2 above where the purchaser of the Ship so requires: 
  

	15.2.1	the Ship shall be in class free of conditions not complied with in accordance with their terms and overdue recommendations affecting the Ship’s class; 

	15.2.2	the Ship shall be in no worse structure, state and condition as at Delivery (fair wear and tear alone excepted) and have installed the machinery and equipment installed thereon at
Delivery or replacements or substitutions therefor made in accordance with the terms of this Agreement; 

  

	15.2.3	the last consignment of containers carried on board the Ship shall have been unloaded; 

  

	15.2.4	the Ship shall be free of Security Interests other than any Lessor’s Security Interest; and 

  

	15.2.5	the Ship shall be free of any charter or other contract of employment or affreightment other than the Time Charter in circumstances where the Time Charterer’s rights under the
QEL are subsisting. 

 The Lessee shall further ensure that, prior to re-delivery, all arrears of wages of the Master and crew
of the Ship are fully paid. 
  

	15.3	Redelivery survey 

  

	15.3.1	In case only of redelivery of the Ship consequent upon termination of the Lease Period where the Lessee is not acting as sales agent or upon the expiry of the Lessee’s sales
agency rights pursuant to clauses 2.8.2 or 2.8.3, at or about the time of redelivery, a survey shall be made to determine the state and condition of the Ship, unless the Lessor agrees that no such survey is required or the Ship is to be sold.

  

	15.3.2	The Lessee and the Lessor shall each appoint surveyors to be present at such survey and the surveyors present shall determine the state and condition of the Ship and shall identify
the repairs or work necessary to place the Ship at the date of redelivery in the class and the structure, state and condition referred to in clause 15.2. 

  

	15.3.3	The surveyors referred to in clause 15.3.2 shall both be acting as experts, not arbitrators and, in case of disagreement, the matter shall be resolved pursuant to clause 29.

  

	15.3.4	All proper costs occasioned by any such survey including the costs of the said surveyors appointed by the Lessee and the Lessor and, if appointed, the cost of the senior surveyor of
the Ship’s Classification Society shall be payable by the Lessee. 

  

	15.4	Consumable stores 

 All consumable stores, unused
lubricating oils and bunkers on board the Ship at the time of redelivery shall be purchased by the Lessor from the Lessee and sold by the Lessor to the purchaser of the Ship. The price payable by the Lessor to the Lessee pursuant to this clause 15.4
will be the same as the price received at the same time by the Lessor from the purchaser of the Ship for those items. 
  

	15.5	Continuing performance of obligations 

 From the end
of the Lease Period until the Ship has been sold in accordance with clause 2, the Lessee shall, at no cost to the Lessor, but subject to the Lessor permitting the Lessee continued possession of the Ship, continue to perform all its obligations under
this Agreement other than its obligations to pay Rental and, in particular, it shall continue to perform its undertakings under clauses 9 to 14. 

	15.6	Ship’s Software Licences on Redelivery 

 The
Lessor shall be entitled to require that the Lessee grant or procure the grant (to the extent reasonably achievable) in favour of the Lessor or, as the Lessor may stipulate, a purchaser for or subsequent charterer of the Ship a licence to use all
Ship’s Software which may be necessary or desirable to be used for the maintenance and operation of the Ship, provided that this requirement shall not apply to (i) obsolete software which has been replaced by alternative or updated
software or (ii) other software which the Lessee may satisfy the Lessor (acting reasonably) was not in use regularly during the last voyage or engagement of the Ship prior to redelivery and which is no longer required or desirable for the safe
or efficient operation of the Ship. 
  

	16	Standby Lender Review and Standby Loan Transaction 

  

	16.1	Review 

  

	16.1.1	During the Standby Lender Review Period, the Lessor shall procure that the Standby Lender carries out a review of (i) the creditworthiness of the Lessee and the Guarantor and,
(ii) the security value of the Ship as at such time in order for the Standby Lender to determine in its sole and absolute discretion whether it is prepared to enter into the Standby Loan Transaction upon the expiry of the Lease Period.

  

	16.1.2	Such Standby Lender Review shall be carried out by the Standby Lender: 

  

	 	(a)	in good faith; 

  

	 	(b)	in accordance with its then current procedure for reviewing the creditworthiness of its customers of similar standing as the Lessee and the Guarantor; and 

 

	 	(c)	applying its then current general credit criteria and the same criteria in the same manner as the Lessor would apply to the assessment of the creditworthiness of its customers of
similar standing as the Lessee and the Guarantor. 

  

	16.1.3	Following the Standby Lender Review, the Standby Lender shall determine in its sole and absolute discretion whether or not it is able to enter into the Standby Loan Transaction and
the Lessor shall notify the Lessee as soon as possible after the Standby Lender has conducted its review and reached its conclusions (and in any event such notification to be given by the Review Notification Date). 

  

	16.1.4	The Lessee acknowledges that neither the Lessor nor the Standby Lender shall be obliged to reveal any details of the credit procedure or the criteria applied (as referred to in
clauses 16.1.2(b) and (c) above) or the reasons for the decision made by the Standby Lessor under this clause 16.1 but if the Lessor notifies the Lessee that the Standby Lender Review has not been satisfactory, the Lessor agrees to enclose with
such notification a certificate signed by a director of the Lessor to the effect that the Standby Lender Review has been carried out by the Standby Lender in accordance with clause 16.1.2. 

	16.2	Standby Loan Transaction 

 In the event that the
Lessor notifies the Lessee pursuant to clause 16.1.3 that the Standby Lender is willing to enter into the Standby Loan Transaction, and the Lessee notifies the Lessor in writing within fourteen (14) Business Days of the Review Notification Date
that it wishes to enter into the Standby Loan Transaction (each of which notifications must be given in respect of the Ship and all of the Sister Ships, but not some only), and subject to the Standby Lender first being indemnified by the Lessee in
respect of its costs, the Standby Lender and the Lessee shall in good faith endeavour to conclude the Standby Loan Transaction for the Ship on the Lease Period End Date. 
  

	17	Termination, Mandatory Prepayment and Further Novation Events 

  

	17.1	Termination Events 

 The Lessor and the Lessee agree
that it is a fundamental term and condition of this Agreement that none of the following events shall occur during the Construction Period or the Lease Period and that the occurrence of any of the following events shall constitute a repudiatory
breach of this Agreement and shall be a Termination Event for the purpose of this Agreement, whether it occurs during the Construction Period or the Lease Period: 
  

	17.1.1	any instalment of Rental or any other sum payable to the Lessor under this Agreement or under any of the other Lease Documents is not paid when due in accordance with the terms of
the applicable document (and in the case of a sum payable on a due date, remains unpaid for three (3) Business Days after the due date for payment thereof and in the case of a sum payable on demand, remains unpaid for five (5) Business
Days after the date of service by the Lessor of a written demand for payment thereof); 

  

	17.1.2	any of the Insurances required to be placed and maintained in clause 13 are placed or renewed on terms which do not comply with the provisions of clause 13;

  

	17.1.3	at any time, any of the Insurances required to be maintained under clause 13 either lapse before the time of scheduled renewal without being renewed within three (3) days of so
lapsing in accordance with the requirements of clause 13 or are cancelled or rendered invalid, void or unenforceable or any sums recovered under any of such Insurances are or become repayable in whole or in part; 

  

	17.1.4	the Guarantor fails to comply with its obligations under clause 5.3 of its Guarantee; 

  

	17.1.5	any Transaction Company fails to comply with any other term or condition of this Agreement or any other Transaction Document and: 

  

	 	(a)	that failure would or may be likely, in the reasonable opinion of the Lessor, to have a material adverse effect on the rights of the Lessor under the Lease Documents or the ability
of the relevant Transaction Company to perform any of its obligations under the Transaction Documents; and 

  

	 	(b)	if such failure is remediable then, within thirty (30) days (or such longer period as the Lessor may specify or agree) after receipt by the Lessee of a written notification
from the Lessor of that failure, the relevant Transaction Company shall have failed to remedy that failure; 

  

	17.1.6	 any representation or warranty made by any Transaction Company in any of the Transaction Documents is or proves to have been incorrect in any material respect when
made and, in case such incorrectness is remediable, within thirty (30) days after receipt by 

	 	 
the Lessee of a written notification from the Lessor of such failure (or such longer period as the Lessor may specify or agree) the relevant Transaction
Company shall have failed to remedy it; 

  

	17.1.7	any of the following occurs in relation to any Financial Indebtedness of any of the Guarantor, the Lessee or (at any time prior to Delivery) the Replacement Purchaser which is owed
to any Lessor Group Member (herein, “BOS Financial Indebtedness”), and would have, or is reasonably likely to have, a material adverse effect on the Lessee’s ability to perform under this Agreement and/or the Guarantor’s
ability to perform under the Guarantee: 

  

	 	(a)	any BOS Financial Indebtedness of any such person is accelerated following an event of default and not paid when due or, if so payable, on demand (if applicable, following the
expiry of any applicable grace period for the payment thereof); or 

  

	 	(b)	any Security Interest securing any BOS Financial Indebtedness of any such person becomes enforceable; 

  

	17.1.8	any of the following occurs in relation to (i) any Financial Indebtedness where the principal amount then outstanding or capable of becoming due thereunder (or for which the
Guarantor is otherwise liable) exceeds in aggregate $25,000,000 in the case of a Guarantor or (ii) any Financial Indebtedness of the Lessee or (at any time prior to Delivery) the Replacement Purchaser: 

  

	 	(a)	any Financial Indebtedness of any such person is not paid when due or, if so payable, on demand (if applicable, following the expiry of any applicable grace period for the payment
thereof); or 

  

	 	(b)	any Financial Indebtedness of any such person becomes due and payable or capable of being declared due and payable prior to its stated maturity date as a consequence of any event of
default; or 

  

	 	(c)	a lease, hire purchase agreement or charter creating any Financial Indebtedness of any such person is terminated by the lessor or owner or becomes capable of being terminated as a
consequence of any event of default, howsoever described; or 

  

	 	(d)	any overdraft, loan, note issuance, acceptance credit, letter of credit, guarantee, foreign exchange or other facility, or any swap or other derivative contract or transaction,
relating to any Financial Indebtedness of any such person ceases to be available or becomes capable of being terminated as a result of any event of default, or cash cover is required, or becomes capable of being required, in respect of such a
facility as a result of any event of default; or 

  

	 	(e)	any Security Interest securing any Financial Indebtedness of any such person becomes enforceable; 

  

	17.1.9	any of the following occurs in relation to the Lessee or any Transaction Company (other than, following Delivery, the Replacement Purchaser): 

  

	 	(a)	it becomes unable to pay its debts as they fall due within the meaning of section 123(1)(e) of the Insolvency Act 1986; 

	 	(b)	a winding-up or administration order is made, provided however that, in case only of an order for winding-up, the occurrence of such event shall not constitute a Termination Event
if such winding-up has commenced as part of a process of a fully-solvent reorganisation, previously approved by the Lessor, which shall not affect either the timing or amount of any amount payable under this Agreement or any other Transaction
Document to the Lessor or the ability of the relevant Transaction Company to perform all its obligations, or the Lessor’s ability to exercise its rights, under this Agreement or any of the other Transaction Documents; 

 

	 	(c)	an administrative or other receiver, trustee or liquidator is appointed over all or a part of the assets of the relevant Transaction Company; or 

  

	 	(d)	a petition for the winding-up of the relevant Transaction Company is presented or an application is made for an administration order in relation to the relevant Transaction Company
(pursuant to Section 9 of the Insolvency Act 1986) if such petition or application is not withdrawn, discharged or dismissed within thirty (30) days or is not otherwise being contested in good faith by appropriate proceedings;

  

	 	(e)	the relevant Transaction Company makes, proposes or otherwise threatens an arrangement for the benefit of all or any class of its creditors or an arrangement or composition with or
for the benefit of all or any class of its creditors or convenes a meeting with all or any class of its creditors with a view to a composition or arrangement for the benefit of its creditors generally; or 

  

	 	(f)	the relevant Transaction Company ceases or suspends or threatens in writing to cease or suspend to carry on its business; 

  

	17.1.10	any litigation, arbitration or administrative action or proceeding is commenced against any Transaction Company (other than, following Delivery, the Replacement Purchaser) or any of
its property, undertakings or assets before any court, arbitrator or administrative agency or authority which, if adversely determined, would, or would be reasonably likely to have, a material adverse effect on the financial condition or business or
operations of the relevant Transaction Company and, in each case, on its ability to perform its obligations under the Transaction Documents unless: 

  

	 	(a)	the relevant Transaction Company demonstrates in writing to the Lessor (who shall act reasonably in considering such matters) to the Lessor’s satisfaction, that such
litigation, arbitration or administrative action or proceeding is or may reasonably be considered to be vexatious or frivolous or is unlikely to be adversely determined; or 

  

	 	(b)	it is dismissed or irrevocably stayed within sixty (60) days of commencement; 

  

	17.1.11	any event or circumstance occurs as referred to in clause 17.1.9 in relation to any Transaction Company (other than, following Delivery, the Replacement Purchaser) in any
jurisdiction other than England and Wales; 

  

	17.1.12	any Transaction Company (other than, following Delivery, the Replacement Purchaser) ceases or suspends carrying on its business or a part of its business which, in the reasonable
opinion of the Lessor, is or may be likely to be material in the context of this Agreement; 

	17.1.13	the Guarantor transfers or disposes of, or threatens in writing to transfer or dispose of, a substantial part of its business (otherwise than in the normal course of business or for
full consideration in money or money’s worth); 

  

	17.1.14	the Guarantee shall for any reason not be in full force and effect or shall be declared to be null and void, or (as applicable) the Guarantor shall contest the validity or
enforceability of the Guarantee in writing or deny in writing that it has any further liability under the Guarantee; 

  

	17.1.15	any Transaction Company repudiates in writing any material provision of a Transaction Document (other than the Time Charter) to which it is a party, or gives notice in writing of
its intention to do so; 

  

	17.1.16	without the Lessor’s prior written consent, either of the Lessee or (at any time prior to Delivery) the Replacement Purchaser ceases to be owned (whether directly or
indirectly) by the Guarantor; 

  

	17.1.17	any condition precedent stipulated in clauses 3.1 to 3.3 is waived on a temporary basis and is not fulfilled to the satisfaction of the Lessor by the time stipulated in such waiver;

  

	17.1.18	the Ship is subject to any form of execution, attachment, arrest, sequestration or distress, except in relation to a Permitted Security Interest created by the Lessor or a Lessor
Security Interest and the Lessee fails to procure the release of the Ship within sixty (60) days, or such longer period to which the Lessor may agree unless such event is covered by the Insurances in which case the relevant period is the period
covered by such insurances; 

  

	17.1.19	after Delivery the registration of the Ship is cancelled or terminated otherwise than in accordance with the terms of this Agreement or as a consequence of any act or omission of
the Lessee or any other Transaction Company and is not re-instated within fifteen (15) days after the receipt by the Lessee of a written notification from the Lessor regarding remedy of that breach; or 

  

	17.1.20	a Termination Event occurs and is continuing under any of the Sister Ship Lease Agreements. 

  

	17.2	Mandatory Prepayment Events 

 Each of the following
shall be a Mandatory Prepayment Event for the purpose of this Agreement: 
  

	17.2.1	any of the Transaction Documents (other than the Time Charter) or any provision thereof (i) for any reason is not or ceases to be in full force and effect other than in
accordance with its terms or (ii) is declared null and void or (iii) any of the parties to a Transaction Document (other than the Time Charter) shall contest the validity or enforceability of any Transaction Document (other than the Time
Charter) or repudiates in writing any Transaction Document (other than the Time Charter) or any of its obligations thereunder or gives notice in writing of its intention to do so; 

  

	17.2.2	 any consent necessary to enable any Transaction Company to comply with any provision of a Transaction Document (other than the Time Charter) is not granted, expires
without being renewed or is revoked and that failure (in the sole opinion of the Lessor, acting in good faith) would have a material adverse effect on the rights of the Lessor under the Transaction Documents (other than the Time Charter) or the
ability of any Transaction 

	 	 
Company to perform its material obligations under the Transaction Documents (other than the Time Charter) and the Lessee and the Lessor have negotiated in
good faith for a period of thirty (30) days to agree an alternative means to continue the transaction contemplated by this Agreement and have been unable to do so; 

  

	17.2.3	there shall occur an Environmental Incident in circumstances where the Lessor believes, acting reasonably, that the Lessor is or will be held to be liable to third parties as a
result thereof and either (i) such liability will or could, in the reasonable opinion of the Lessor, reasonably be expected to exceed the limit of the Ship’s protection and indemnity insurance, or (ii) the Ship’s protection and
indemnity insurers have disclaimed or notified in writing an intention to disclaim liability as regards the Lessor; 

  

	17.2.4	there occurs a Change of Law or other change of circumstances which will result in the Lessor incurring: 

  

	 	(a)	a liability arising out of its ownership of the Ship which it does not have as at the date of this Agreement; or 

  

	 	(b)	an increase in liability arising out of its ownership of the Ship over and above that liability which it has as at the date of this Agreement, 

 which liability or increase in liability does not entitle the Lessor to increase the Rental pursuant to the Financial Schedule and is material in the
context of the Lessor’s maximum existing liabilities arising out of its ownership of the Ship from time to time prior to the date of that Change of Law or other change of circumstances and where, in either case, following consultation with the
Lessee as to such liability or increased liability and the matters referred to below: 
  

	 	(i)	the Lessor and the Lessee have endeavoured to mitigate or eliminate that liability or increased liability and have failed to do so prior to commencement of the applicable Change of
Law; and 

  

	 	(ii)	that liability or increased liability is not covered by insurance or other security which is, in the opinion of the Lessor acting reasonably, satisfactory having regard to the
amount of that liability or increased liability; and 

  

	 	(iii)	that liability or potential liability is not removed or terminated by the Lessee moving the Ship to, and if necessary keeping the Ship in, a location or locations where that
liability or increased liability would not be incurred or ensuring that the Ship does not enter into any location where that liability or increased liability would be incurred; or 

  

	17.2.5	there occurs a Change of Law as a result of which it becomes unlawful for (a) the Lessor to own and/or lease the Ship and/or continue to exercise its rights and/or perform its
obligations under any Transaction Document or (b) any Transaction Company to continue to exercise its rights and/or perform its obligations under any Transaction Document (other than the Time Charter). 

  

	17.3	Further Novation Events 

 Each of the following
shall be a Further Novation Event for the purpose of this Agreement: 
  

	17.3.1	any Termination Event or Mandatory Prepayment Event occurs prior to the Delivery Date; 

	17.3.2	the Delivery Date does not occur on or before the Commitment Expiry Date; 

  

	17.3.3	if (a) the Ship is rejected by the Lessor upon the request of the Supervisor or (b) the Novated Building Contract is terminated or rescinded for any reason or becomes
capable of immediate termination or rescission in accordance with article VIII thereof or (c) consequent upon a total loss of the Ship as envisaged by article XVII of the Novated Building Contract unless the Lessor is satisfied in its
reasonable opinion that the Ship can be rebuilt in accordance with the specification by the Commitment Expiry Date or (d) the Builder becomes entitled to terminate or rescind the Novated Building Contract or the Builder purports to rescind or
terminate the Novated Building Contract under article XI thereof; 

  

	17.3.4	the Lessee fails to pay when due any Contribution Payment due to the Lessor under clause 3.10 of this Agreement; 

  

	17.3.5	prior to the Delivery Date the Builder makes a claim against the Lessor under the Novated Building Contract (unless the claim arises as a result of Lessor Misconduct) and:

  

	 	(a)	such claim is not settled in a manner acceptable to the Lessor acting reasonably on the earlier of the Delivery Date and the date falling thirty (30) days after the making of
that claim; and 

  

	 	(b)	the Lessor is not secured to its reasonable satisfaction in respect of any Loss it may suffer as a direct result of that claim; 

  

	17.3.6	prior to the Delivery Date the Supervisor commences proceedings against the Builder under the Novated Building Contract and the Lessor has not given its consent to such proceedings
pursuant to clause 4.9 of the Supervision Agreement; 

  

	17.3.7	the Supervisor is in breach of any of its obligations to the Lessor pursuant to the Supervision Agreement or the Supervisor is otherwise acting outside the scope of its authority
under the Supervision Agreement in a manner materially detrimental to the rights and interests of the Lessor; 

  

	17.3.8	the Refund Guarantor fails to comply with any of its obligations under the Refund Guarantee; or 

  

	17.3.9	the conditions precedent to the Lessor’s obligation to make payment of any Instalment or to Delivery are not fulfilled or waived and such failure has, or in the reasonable
opinion of the Lessor, is reasonably likely to have a material adverse effect upon the Lessor, or its rights and/or obligations and liabilities in respect of the Ship or under this Agreement and the other Transaction Documents.

  

	18	Lessor’s Rights on a Termination Event, Mandatory Prepayment Event or Further Novation Event 

  

	18.1	Termination rights 

 On, or at any time after the
repudiation of this Agreement by the Lessee, including the occurrence of any Termination Event (and provided that the same is continuing), the Lessor may by notice to the Lessee, (i) if such repudiation or Termination Event occurs after the
Delivery Date, accept such repudiation by the Lessee of this Agreement and shall terminate the Lease Period or (ii) if such repudiation or Termination Event occurs prior to 

 
Delivery, may accept its entitlement to terminate its obligation to acquire and lease the Ship to the Lessee pursuant to this Agreement, and immediately, or
on such date as the Lessor shall specify, may terminate its obligation to lease the Ship to the Lessee (whereupon the provision of clause 18.3.2 shall apply). 
  

	18.2	Mandatory prepayment 

 On or at any time after the
Delivery Date following the occurrence of a Mandatory Prepayment Event (and provided that the same is continuing): 
  

	18.2.1	the Lessor may notify the Lessee that the Lessor has elected to treat the occurrence of that event as constituting notice by the Lessee pursuant to clause 2.5 but without reference
to a notice period; and 

  

	18.2.2	on the applicable Lease Termination Date, the Lessee will pay to the Lessor the amounts payable by the Lessee to the Lessor under and calculated in accordance with clause 18.4 as at
the required date of that payment; and 

  

	18.2.3	with effect on and from the date of the payment by the Lessee of all amounts payable by the Lessee to the Lessor under and calculated in accordance with clause 18.4, the Lessee
shall cease to be liable to pay Rental under this Agreement but without prejudice to the Lessee’s obligations pursuant to the Financial Schedule; and 

  

	18.2.4	notwithstanding anything else to the contrary in this Agreement, the Lease Period will continue until and end on the date on which the Ship is delivered to a purchaser of the Ship
following a sale pursuant to clause 18.6. 

  

	18.3	Further Novation 

  

	18.3.1	At any time after the occurrence of a Further Novation Event (other than a Termination Event) or at any time after the occurrence of a Mandatory Prepayment Event which occurs before
the Delivery Date and in each case whilst such event is continuing: 

  

	 	(a)	the Lessor may by notice to the Lessee elect (prior to the Delivery Date) to treat the occurrence of that event as constituting notice by the Lessee pursuant to clause 2.2 but
without reference to a notice period; and 

  

	 	(b)	if the Lessor makes an election under paragraph (a) above, the Lessor shall, as contemplated by clause 2.3, give notice to the Replacement Purchaser under clause 6.1 of
the Novation Agreement and to the Refund Guarantor pursuant to the Refund Guarantee. 

  

	18.3.2	On or at any time following the occurrence of a Termination Event which occurs before the Delivery Date and whilst it is continuing, if the Lessor elects to exercise its rights
under clause 18.1 following the occurrence of such Termination Event the Lessor shall, as contemplated by clause 2.3, give a notice to the Replacement Purchaser and the other parties to the Novation Agreement pursuant to clause 6.1 of the Novation
Agreement and to the Refund Guarantor if obliged to do so pursuant to the Refund Guarantee. 

  

	18.4	Payments on the Termination Date after the occurrence of a Termination Event, Mandatory Prepayment Event, Further Novation Event or a Total Loss 

  

	18.4.1	In the event that: 

  

	 	(a)	the Lessor has become entitled to treat this Agreement as having been repudiated and the obligation of the Lessor to acquire and lease the Ship to the Lessee or, as the case may be,
the Lease Period shall have terminated pursuant to clause 18.1; or 

	 	(b)	a Mandatory Prepayment Event shall have occurred after Delivery and the Lessor has issued a notice to the Lessee pursuant to clause 18.2.1; or 

  

	 	(c)	a Mandatory Prepayment Event shall have occurred prior to Delivery or a Further Novation Event shall have occurred and the Lessor has issued a notice to the Lessee pursuant to
clause 18.3.1(a); or 

  

	 	(d)	a Total Loss of the Ship shall have occurred after Delivery, 

 the Lessee will be liable to pay to the Lessor, on the applicable Termination Date or, as the case may be, the Total Loss Payment Date: 
  

	 	(i)	an amount equal to the aggregate of: 

  

	 	(A)	any amounts of Rental, any Broken Funding Costs and other moneys then due and payable under any of the Lease Documents or any of the other Transaction Documents; and

  

	 	(B)	the amount of any Losses in respect of which the Lessee agreed to indemnify the Lessor pursuant to clause 7.4 (but, for the avoidance of doubt, not including any loss of profit)
incurred by the Lessor in connection with that termination which are unpaid; and 

  

	 	(ii)	by way of agreed compensation and not as a penalty, the amount of the Termination Amount as at the date of that termination. 

  

	18.4.2	The Lessor agrees with the Lessee that in circumstances where the obligation to lease Ship has terminated or, as the case may be, where the Lease Period has terminated and in each
case the Lessor has received payment in full of all amounts owing to the Lessor under any of the other Lease Documents in cleared funds and without conditions attached, if the amounts received by the Lessor exceed the total of all the amounts owed
to the Lessor, the Lessor shall pay an amount equal to the excess to the Lessee by way of a rebate of Rental. 

  

	18.5	Lessor’s rights to retake possession 

 On or at
any time after the Termination Date following (i) a termination of the Lease Period pursuant to clause 18.1 where the Lessee has failed to satisfy its obligations under clause 18.4 and is not appointed as sales agent pursuant to clause 2.8.1 or
(ii) the occurrence of a Mandatory Prepayment Event pursuant to clause 18.2 where the Lessee has failed to satisfy its obligations under clause 18.4 and is not appointed as sales agent pursuant to clause 2.8.1 or (iii) where the Lessee was
appointed as sales agent pursuant to clause 2.8.1 but such appointment is terminated pursuant to clause 2.8.3, following the termination of the Lessee’s appointment as sales agent; in each case the Lessor shall (as between the Lessor and the
Lessee) be entitled to retake possession of the Ship in accordance with the provisions of clause 15.2. The Lessee agrees that the Lessor, for that purpose only, may put into force and exercise all its rights and entitlements at law and may enter
upon any premises belonging to or in the occupation or under the control of the Lessee where the Ship is located. 

	18.6	Sale of the Ship following the Termination Date 

 At
any time following termination of the Lease Period pursuant to clause 18.1 or following the occurrence of a Mandatory Prepayment Event pursuant to clause 18.2 and following any other Termination Date in circumstances where the Lessor has become
entitled to retake possession of the Ship in accordance with clause 18.5, the Lessor, (provided it is not prevented by law from doing so), shall use reasonable endeavours to sell the Ship. The Lessor will notify the Lessee as soon as reasonably
practicable of any proposed sale or auction of the Ship by it and of the terms of that sale. 
  

	18.7	Application of payments on sale or further renovation 

  

	18.7.1	In the event of a sale of the Ship following a termination pursuant to clause 18.1 after Delivery, the Net Sale Proceeds will be applied by the Lessor in accordance with clause 2.10
of this Agreement. 

  

	18.7.2	In the event of a sale of the Ship following the occurrence of a Mandatory Prepayment Event pursuant to clause 18.2 after Delivery, the Net Sale Proceeds shall be applied by the
Lessor in accordance with clause 2.10 of this Agreement. 

  

	18.7.3	In the event of the renovation by the Lessor of its rights and obligations under the Novated Building Contract to the Replacement Purchaser pursuant to clause 6.1 of the Novation
Agreement following the occurrence of (i) a Further Novation Event, or (ii) a Mandatory Prepayment Event prior to Delivery or (iii) a Termination Event prior to Delivery, any moneys received from the Replacement Purchaser pursuant to
clause 6.3 of the Novation Agreement or from the Refund Guarantor pursuant to the Refund Guarantee (either before or after such renovation) or from the Builder pursuant to the Novated Building Contract (either before or after such renovation) shall
be applied by the Lessor in accordance with clause 2.10 as if those moneys were Net Sale Proceeds. 

  

	18.8	Continuation of obligations and storage until sale 

 Following termination of the Lease Period pursuant to clause 18.1 or 18.2 the Lessee will: 
  

	18.8.1	continue to comply with its obligations under this Agreement until the earlier of the date on which the Ship is delivered to a purchaser of the Ship following a sale pursuant to
clause 2.8 or the date on which the Ship is redelivered to the Lessor in accordance with clause 15; and 

  

	18.8.2	pay, or reimburse, to the Lessor on demand all Losses suffered by the Lessor in connection with recovering possession of and in moving, storing, insuring and maintaining the Ship
and in carrying out any works or modifications required to cause the Ship to conform with the provisions of clause 15.2 until such time as the Ship is delivered to a purchaser of the Ship following a sale pursuant to clause 2.8.

  

	18.9	Failure to perform insurance undertakings 

 If the
Lessee fails to comply with any of its obligations pursuant to clause 13, the Lessor, without being obliged so to do, or responsible for so doing, and without prejudice to the ability of the Lessor to treat that non-compliance as a Termination
Event: 
  

	18.9.1	following notification to the Lessee, may effect and thereafter maintain all such Insurances as the Lessor in its sole discretion may think fit in order to procure compliance with
such provisions; or 

	18.9.2	alternatively, at the Lessee’s risk, may require the Ship to remain in, or to proceed to and remain in, a port designated by the Lessor until such provisions are fully complied
with. 

  

	18.10	Failure to perform maintenance undertakings 

 If the
Lessee fails to comply with any of its obligations pursuant to clause 10, the Lessor may, without being obliged so to do, or responsible for so doing, and without prejudice to the ability of the Lessor to treat that non-compliance as a Termination
Event, following notification to the Lessee and failure by the Lessee to take steps reasonably acceptable to the Lessor to remedy that failure within fifteen (15) days after receipt of that notification, arrange for the carrying out of such
repairs, changes or surveys as are required in order to procure compliance with such provisions. 
  

	18.11	Failure to protect Lessor’s rights 

 If the
Lessee fails to comply with any of its material obligations pursuant to clause 12.8, the Lessor may, without being obliged so to do, or responsible for so doing, and without prejudice to the ability of the Lessor to treat that non-compliance as a
Termination Event, following notification to the Lessee and failure by the Lessee to take steps reasonably acceptable to the Lessor to remedy that failure within 15 days after receipt of that notification, take any such measures as may be required
for the purpose of securing the release of the Ship in order to procure the compliance with such provisions. 
  

	18.12	Failure to Prevent or Release from Arrest 

 If the
Lessee fails to comply with any of the provisions of clause 10.8, the Lessor without being in any way obliged to do so, or responsible for so doing, and without prejudice to the ability of the Lessor to treat that non-compliance as a Termination
Event, may, pay and discharge all such debts, damages, liabilities and outgoings as are therein mentioned and/or take any such measures as it may deem expedient or necessary for the purpose of securing the release of the Ship in order to procure the
compliance with such provisions. 
  

	18.13	Costs of Remedying Defaults 

 Without prejudice to
the Lessor’s rights under each of clauses 7.1, 7.2, 7.3 and 7.4, all Losses of whatsoever nature (including without limitation, Taxes, repair costs, registration fees and insurance premiums) suffered, incurred or paid by the Lessor in
connection with the exercise by the Lessor of any of its powers under clauses 18.9, 18.10, 18.11, and/or, as the case may be, 18.12 and interest on all such Losses from the date on which the same were suffered, incurred or paid by the Lessor until
the date of receipt or recovery thereof (both before and after any relevant judgment) at the Default Rate shall be repayable by the Lessee to the Lessor on demand. 
  

	19	Representations and Warranties 

  

	19.1	General 

 The Lessee represents and warrants to the
Lessor as follows: 
  

	19.2	Status 

 The Lessee is duly incorporated and validly
existing under the laws of the Marshall Islands. 

	19.3	Share capital and ownership 

 The Lessee is a
wholly-owned direct Subsidiary of the Guarantor. 
  

	19.4	Corporate powers 

 The Lessee has the corporate
capacity, and has taken all corporate action and obtained all consents, if any, necessary for it: 
  

	19.4.1	to execute this Agreement and the other Lease Documents and the Transaction Documents to which the Lessee is a party; and 

  

	19.4.2	to make all the payments and perform all the obligations contemplated by, and to comply with this Agreement and the other Lease Documents and the Transaction Documents to which the
Lessee is a party. 

  

	19.5	Consents in force 

 All the consents referred to in
clause 19.4 remain in force and nothing has occurred which makes any of them liable to revocation. 
  

	19.6	Legal validity 

 The Lease Documents and the
Transaction Documents to which the Lessee is a party, do now or, as the case may be, will, upon execution and delivery (and, where applicable, registration) constitute the Lessee’s legal, valid and binding obligations enforceable against the
Lessee in accordance with their respective terms. 
  

	19.7	No conflicts 

 The execution by the Lessee of each
Lease Document and each Transaction Document to which it is or is to be a party and its compliance with each Lease Document and each Transaction Document to which it is or is to be a party will not involve or lead to a contravention in any material
respect of: 
  

	19.7.1	any law or regulation; or 

  

	19.7.2	the Bye-laws and Articles of Incorporation of the Lessee; or 

  

	19.7.3	any contractual or other obligation or restriction which is binding on the Lessee or any of its assets. 

  

	19.8	No Relevant Events 

 No Relevant Event has, to the
Lessee’s knowledge, occurred and is continuing. 

	19.9	No litigation 

 Except as disclosed to the Lessor in
writing, and to the best of the Lessee’s knowledge and belief, no legal or administrative action involving the Lessee has been commenced or taken which is likely to have a material adverse effect on the ability of the Lessee to perform its
obligations under this Agreement. 
  

	19.10	Free of Security Interests 

 Other than Permitted
Security Interests, the Novated Building Contract is and, at the Delivery Date, the Ship and the Insurances will be free from all Security Interests. 
  

	19.11	Completeness of Transaction Documents 

 The copy of
each Transaction Document delivered to the Lessor before the date of this Agreement is a true and complete copy and, no amendments or additions to any Transaction Document have been agreed nor have the parties to any Transaction Document waived any
of their respective rights under the Transaction Documents. 
  

	19.12	Compliance with certain undertakings 

 At the date
of this Agreement, the Lessee is in compliance with clause 20.1. 
  

	19.13	Taxes paid 

 The Lessee has paid all Taxes
applicable to, or imposed on or in relation to the Lessee and its business. 
  

	19.14	Information 

 To the best knowledge and belief of
the Lessee: 
  

	19.14.1	all information which has been provided in writing to the Lessor by or on behalf of the Lessee concerning the Lessee or any other Transaction Company in connection with this
Agreement and any other Transaction Document is true and not misleading and does not omit any material fact or consideration taking into account the circumstances in which the information was provided; and 

  

	19.14.2	copies of all relevant documents supplied to the Lessor in relation to this Agreement, the other Transaction Documents and transactions contemplated thereby are true and complete
copies of the originals of such documents. 

  

	19.15	Absence of withholding taxes 

 All payments to the
Lessor by the Lessee under the Lease Documents may be made in full, free of any deduction or withholding in respect of Tax. 
  

	19.16	No Stamp Taxes 

 There are no stamp, documentary,
registration or other like duties or Taxes imposed on or in connection with this Agreement, the Novation Agreement, the Supervision Agreement and the other Transaction Documents other than in respect of Slavenburg registrations at Companies House in
England and Wales. 

	19.17	Filings 

 All registrations or filings required in
connection with the enforceability of any Transaction Documents against the Lessee have been made or will be made within any applicable required period and (if applicable) the Lessee shall promptly file particulars of any Security Interest it grants
or creates under the Transaction Documents in its Register of Mortgages and Charges. 
  

	19.18	Pari Passu 

 The obligations of the Lessee under the
Transaction Documents to which it is a party rank pari passu with all other unsecured indebtedness of the Lessee, other than indebtedness mandatorily preferred by law. 
  

	19.19	Choice of law 

 The choice by the Lessee of English
law to govern the Lease Documents and its submission to the jurisdiction of the English courts as contemplated in each of the Lease Documents are valid and enforceable. 
  

	19.20	Ship’s condition at Delivery 

 In relation only
to Delivery, the Ship will then comply with all requirements of this Agreement including as to its ownership, condition, insurance, class and employment. 
  

	19.21	No Money Laundering 

 In relation to the performance
and discharge of its respective obligations and liabilities under this Agreement and the other Transaction Documents, the Lessee confirms that it is acting for its own account and that the foregoing will not involve or lead to contravention of any
law, official requirement or other regulatory measure or procedure implemented to combat “money laundering” (as defined in Article 1 of the Directive (91/308/EEC) of the Council of the European Communities). 
  

	19.22	Reservations 

 The representations and warranties of
the Lessee in this clause are subject to: 
  

	19.22.1	the principle that equitable remedies are remedies which may be granted or refused at the discretion of the court; 

  

	19.22.2	the limitation of enforcement by laws relating to bankruptcy, insolvency, liquidation, reorganisation, court schemes, moratoria, administration and other laws generally affecting or
limiting the rights of creditors; 

  

	19.22.3	the time-barring of claims under any applicable limitation acts; 

  

	19.22.4	the possibility that a court may strike out provisions for a contract as being invalid for reasons of oppression, undue influence or similar reasons; and 

 

	19.22.5	any other reservations or qualifications of law expressed in any legal opinions obtained by the Lessor in connection with the Lease Documents. 

	19.23	Inconsistency 

 To the extent of any inconsistency
between warranties and declarations in any other Transaction Documents and those in this Agreement, those in this Agreement shall prevail. 
  

	20	General Undertakings 

 The Lessee undertakes with
the Lessor to comply with the following provisions of this clause at all times until the end of the Lease Period except as the Lessor may otherwise permit. 
  

	20.1	Status 

  

	20.1.1	The Lessee will maintain its separate corporate existence as a corporation under the laws of the Marshall Islands. 

  

	20.1.2	The Lessee will not make a tonnage tax election for the purposes of section 82 of and Schedule 22 of the Finance Act 2000. 

  

	20.2	Information provided to be accurate 

 All financial
and other information which is provided to the Lessor in writing by or on behalf of the Lessee concerning the Lessee or any other Transaction Company in connection with this Agreement or any of the other Transaction Documents will be true and not
misleading and will not omit any material fact or consideration. 
  

	20.3	Provision of financial statements 

 The Lessee will
send, or procure that there be sent, to the Lessor no later than 90 days after the end of the first half of each financial year of each relevant company, in the case of unaudited financial statements, and no later than 180 days after the end of each
financial year of each relevant company in the case of audited annual accounts: 
  

	20.3.1	unaudited consolidated financial statements in respect of the first half financial year of each Guarantor; 

  

	20.3.2	the unaudited annual accounts of the Lessee; and 

  

	20.3.3	the consolidated audited annual accounts of the Guarantor and its Subsidiaries. 

  

	20.4	Form of financial statements 

 All accounts (audited
and unaudited) delivered under clause 20.3 will: 
  

	20.4.1	be prepared in accordance with all applicable laws and generally accepted accounting principles in the principal place of business of the company concerned (or, as the case may be,
generally accepted accounting principles in the jurisdiction adopted by a company for the purposes of the preparation of its accounts), consistently applied; 

  

	20.4.2	give a true and fair view of the state of affairs of each such company at the date of those accounts and of its profit for the period to which those accounts relate; and

  

	20.4.3	fully disclose or provide for all significant liabilities of each such company. 

	20.5	Consents 

 The Lessee will maintain in force and
promptly obtain or renew, and will promptly send certified copies to the Lessor of, all consents required: 
  

	20.5.1	for the Lessee to perform its obligations under any Transaction Document to which it is a party; 

  

	20.5.2	for the validity, enforceability, priority or admissibility in evidence of any such Transaction Document; 

 and the Lessee will comply with the terms of all such consents. 
  

	20.6	Maintenance of Security Interests 

 The Lessee will:

  

	20.6.1	at its own cost, do and procure that each other Transaction Company will do, all that it reasonably can to ensure that any Transaction Document to which it is a party validly
creates the obligations and the Security Interests which it purports to create; and 

  

	20.6.2	without limiting the generality of clause 20.6.1, at its own cost, promptly register, file, record or enrol any Transaction Document to which it is a party with any court or
authority in all relevant jurisdictions, pay any stamp, registration or similar tax in all relevant jurisdictions in respect of any Transaction Document to which it is a party, give any notice or take any other step which, in the opinion of the
Lessor, is or has become necessary or desirable for any Transaction Document to which it is a party to be valid, enforceable or admissible in evidence or to ensure or protect the priority of any Security Interest which it creates.

  

	20.7	Notification of litigation 

 The Lessee will provide
the Lessor with details of any legal or administrative action involving the Lessee, any other Transaction Company (other than, following Delivery, the Replacement Purchaser), the Ship or any Transaction Document to which it is a party promptly after
it becomes aware that such action has been instituted or it becomes apparent to the Lessee that it is likely to be instituted, unless it is clear that the legal or administrative action cannot be considered material in the context of the Lease
Documents. 
  

	20.8	Principal place of business 

 The Lessee will
forthwith notify the Lessor if it has a place of business in any jurisdiction which would require a Lease Document to be registered, filed or recorded with any court or authority in that jurisdiction. 
  

	20.9	Confirmation of no default 

 The Lessee, within five
(5) Business Days after service by the Lessor of a written request (such notices to be served no more frequently than is reasonable), will serve on the Lessor a notice which is signed by an authorised signatory of the Lessee and which:

  

	20.9.1	states that no Relevant Event has occurred; or 

	20.9.2	states that no Relevant Event has occurred, except for any specified event or matter, of which all material details are given. 

  

	20.10	Notification of default 

 The Lessee will notify the
Lessor as soon as the Lessee becomes aware of: 
  

	20.10.1	any adjustment to the Contractual Delivery Date; 

  

	20.10.2	the occurrence of any Relevant Event; and 

  

	20.10.3	any matter which indicates that any Relevant Event may have occurred, 

 and will keep the Lessor fully up-to-date with all developments. 
  

	20.11	Pari passu 

 The Lessee will ensure that at all
times its liabilities under this Agreement and the other Lease Documents to which it is a party rank at least pari passu in all respects with all its other unsecured liabilities from time to time (apart from liabilities mandatorily preferred by
law). 
  

	20.12	Provision of information 

 The Lessee will provide
or procure that there is provided to the Lessor, reasonably promptly, such information (i) with respect to the compliance by the Lessee with the terms of this Agreement and each of the other Transaction Documents to which the Lessee is party
and (ii) with respect to the compliance by each of the other Transaction Companies with the terms of the other Transaction Documents to which they are respectively party, or (iii) with respect to the Ship, as the Lessor from time to time
may reasonably request. 
  

	20.13	Negative undertakings 

 The Lessee will not:

  

	20.13.1	carry on any business other than the leasing in and chartering out of the Ship and each Sister Ship and matters reasonably incidental thereto (as contemplated by the Transaction
Documents); or 

  

	20.13.2	enter into any form of amalgamation, consolidation, merger or de-merger or any form of reconstruction or reorganisation; or 

  

	20.13.3	save by, or as permitted by, the Transaction Documents and the Sister Ship Transaction Documents, transfer, lease, charge or otherwise dispose of: 

  

	 	(a)	all or a substantial part of its assets, whether by one transaction or a number of transactions, whether related or not; or 

  

	 	(b)	any debt payable to it or any other right (present, future or contingent right) to receive a payment, including any right to damages or compensation. 

  

	20.14	Title; negative pledge 

 The Lessee will:

  

	20.14.1	not attempt or hold itself out as having any power to sell, transfer or otherwise dispose of or abandon the Ship or any shares or interest therein; 

	20.14.2	hold the legal title to, and own the entire beneficial interest in all its assets, free from all Security Interests and other interests and rights of every kind, except for those
created by or contemplated to be created pursuant to any of the Transaction Documents and Sister Ship Transaction Documents and (in the case of the Ship and Sister Ships only) except for Permitted Security Interests; and 

  

	20.14.3	save as contemplated by the Transaction Documents and Sister Ship Transaction Documents, not create or permit to arise any Security Interest (except for Permitted Security
Interests) over any other asset, present or future. 

  

	20.15	No amendment to any Transaction Document 

 The
Lessee will not agree or purport to agree and will procure that no other Transaction Company will agree or purport to agree to any amendment or supplement to, or variation of, or waive or fail to enforce, any Transaction Document to which the Lessee
or, as the case may be, such other Transaction Company is a party, unless the Lessee, or as the case may be, the applicable Transaction Company acting reasonably considers that the amendment, supplement, variation, or waiver will not prevent the
fulfilment by the Lessee or the other Transaction Companies of their respective obligations to the Lessor, and will not adversely affect any of the rights, interests, benefits, powers and remedies of the Lessor under the Lease Documents. 

 

	21	Assignments, transfers and sale of the Ship 

  

	21.1	Assignment and/or transfer by Lessor 

 The Lessor
may assign all (but not part) of its rights and/or transfer all (but not part) of its obligations under this Agreement and the other Lease Documents together with a contemporaneous transfer of its rights, title and interests in the Ship: 

 

	21.1.1	without the prior consent of the Lessee where the assignment or transfer is to a Lessor Group Member which is resident in the United Kingdom for the purpose of the charge to
corporation tax and which carries on the trade of leasing subject only to: 

  

	 	(a)	the Lessor giving the Lessee not less than thirty (30) days prior written notice of such assignments or transfer; 

  

	 	(b)	the Lessor Parent Support Letter being in full force and effect and, simultaneously with such assignment or transfer, extended or reissued to cover such assignee or transferee; and

  

	 	(c)	the transferee for the time being remaining a Lessor Group Member; and 

  

	21.1.2	to the Replacement Purchaser in the circumstances contemplated by clause 18.3 of this Agreement and clause 7 of the Novation Agreement; and 

  

	21.1.3	to any other person after the occurrence of any Termination Event which is continuing; or 

  

	21.1.4	to any person other than those contemplated in clause 21.1.1 to 21.1.3 above with the prior written consent of the Lessee, 

 Provided that: 
  

	 	(a)	any transferee under this clause 21.1 shall assume all of the Lessor’s obligations; 

  

	 	(b)	no costs, charges or expenses (including stamp duties payable in respect of any transfer) shall be payable by the Lessee; and 

  

	 	(c)	notwithstanding any other provision of this Agreement or any of the other Transaction Documents, all amounts payable or receivable by the Lessee under this Agreement and the other
Transaction Documents to which the Lessor and Lessee are respectively party shall be calculated as if no such assignment or transfer had taken place. 

  

	21.2	Transfer by Lessee 

 Subject to no Relevant Event
having occurred and then continuing, the Lessee may transfer all (but not part) of its rights and obligations under this Agreement and the other Transaction Documents: 
  

	21.2.1	to any other Guarantor Group Member without the prior written consent of the Lessor; or 

  

	21.2.2	to any other person (subject to clause 21.2.3 below) with the prior written consent of the Lessor. 

  

	21.2.3	Any intended transfer by the Lessee pursuant to clause 21.2.1 or 21.2.2 shall be subject to the further conditions that: 

  

	 	(a)	the Lessee shall give thirty (30) days prior written notice to the Lessor (or such shorter period as the Lessor may agree (acting reasonably)) of any intended transfer;

  

	 	(b)	the Lessor shall not be subject to any material additional expense or any liability or increased liability as a result thereof (which is not indemnified against by the Lessee and
guaranteed by the Guarantor or secured to the Lessor’s satisfaction where the same is in the nature of a liability which is capable of being so indemnified, guaranteed or secured); 

  

	 	(c)	the Lessor is satisfied that, following the proposed transfer, the Guarantee, General Assignment and any other security then held by the Lessor in respect of the Lessee’s
obligations under this Agreement will remain in full force and effect as security for the obligations of the proposed transferee, or the Lessor is satisfied that such Guarantee, General Assignment and other security will be replaced on terms and in
accordance with arrangements satisfactory to the Lessor; and 

  

	 	(d)	the intended transfer will not invalidate or result in any adverse effect on the Lessor’s claim to UK Capital Allowances; 

  

	21.2.4	Following any transfer pursuant to clause 21.2.1 or 21.2.2: 

  

	 	(a)	the Lessee shall reimburse the Lessor in respect of all Losses, costs, charges or expenses (including stamp duties payable in respect of any transfer) properly incurred by the
Lessor in connection with any transfer by the Lessee pursuant to this clause 21.2; 

	 	(b)	notwithstanding any other provision of this Agreement or any of the other Transaction Documents, all amounts payable or receivable by the Lessor under this Agreement and the other
Transaction Documents shall be calculated as if no such transfer had taken place; and 

  

	 	(c)	in the case of any transfer pursuant to clause 21.2.1 the Guarantor shall guarantee to the Lessor the obligations of the transferee on terms satisfactory to the Lessor.

  

	21.2.5	The Lessor agrees to assist the Lessee, upon the request of the Lessee, to restructure any security granted to the Lessor in respect of the Lessee’s obligation to pay the
Termination Amount to the Lessor in connection with any transfer of rights and obligations pursuant to this clause 21.2. 

  

	21.2.6	All costs and expenses (including legal costs and expenses and the relevant fee in respect of the Lessor’s Management Time notified by the Lessor to the Lessee as having been
properly incurred and which will be charged at the Lessor’s Management Time Cost Rate) in connection with any such restructuring shall be borne by the Lessee and any such costs and expenses reasonably incurred by the Lessor shall be reimbursed
by the Lessee on demand. 

  

	21.3	Sale of the Ship 

 During the Lease Period the
Lessor will not sell, transfer, assign or otherwise dispose of the legal title to, or beneficial interest in, the Ship, or agree so to do, except as expressly contemplated by this Agreement or the other Transaction Documents. 
  

	22	Increased Costs 

  

	22.1	Increased costs 

  

	22.1.1	This clause 22 applies, otherwise than where a payment is made in respect of the effect of a Change of Law in accordance with the provisions of the Financial Schedule, if at any
time the Lessor notifies the Lessee that it considers that as a result of: 

  

	 	(a)	any Change of Law; or 

  

	 	(b)	the effect of complying with any regulation which is introduced, or altered, or the interpretation or application of which is altered, after the date of this Agreement,

 the Lessor or any Lessor Group Member has incurred or will incur an “increased cost”. 
  

	22.2	Meaning of “increased cost” 

 In this
clause 22, “increased cost” means, in relation to the Lessor: 
  

	22.2.1	the cost or additional cost referred to in clause 22.1 above; or 

  

	22.2.2	 an additional or increased cost incurred directly as a result of, or in connection with, the Lessor having entered into, or being a party to, the Transaction
Documents or funding, maintaining or performing its obligations under the Transaction Documents; or a reduction 

	 	 
in the amount of any payment to the Lessor or any Lessor Group Member under any of the Transaction Documents or in the effective return which such a payment
represents to the Lessor or on its capital; or 

  

	22.2.3	an additional or increased cost of funding all or maintaining all or any of the Lessor’s expenditure under the Novated Building Contract or the Supervision Agreement or (as the
case may require) the proportion of that cost attributable to the funding or maintaining of such expenditure; or 

  

	22.2.4	a liability to make a payment, or interest or the reduction in any amount payable or in the rate of return foregone, which is calculated by reference to any amounts received or
receivable by the Lessor under this Agreement or any of the Transaction Documents; or 

  

	22.2.5	for the avoidance of doubt, any increased costs which relate to the implementation of the matters set out in the Basel II Accord. 

  

	22.3	Payment of increased costs 

 The Lessee shall pay to
the Lessor the amounts which the Lessor from time to time notifies the Lessee that it has determined is necessary to compensate it for the increased cost. 
  

	22.4	Mitigation and consultation 

  

	22.4.1	If circumstances arise which would result in notification under clause 22.1 then, without limiting the rights of the Lessor under clause 22.3, the Lessor shall use its reasonable
endeavours to take such reasonable steps as may be open to it to mitigate or remove those circumstances Provided that the Lessor shall be under no obligation to take any such steps which shall or might be considered likely in the Lessor’s
opinion to: 

  

	 	(a)	have an adverse effect in the Lessor’s business operations or financial condition or those of any Lessor Group Member; 

  

	 	(b)	involve the Lessor or any Lessor Group Member in any activity which is unlawful or prohibited or any activity which is contrary to, or inconsistent with, any regulation; or

  

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

  

	23	Funding Problems 

  

	23.1	Funding problems 

 If the Lessor notifies the Lessee
that LIBOR cannot be determined in accordance with paragraphs (a) or (b) of the definition of LIBOR: 
  

	23.1.1	the Lessor shall give notice thereof to the Lessee; and 

  

	23.1.2	 the Lessor and the Lessee shall meet to discuss the matter in good faith and, unless within 30 days of the giving of such notice the Lessor and the Lessee arrive,
by negotiation in good faith, at an alternative basis reasonably acceptable to the Lessor and the Lessee for continuing the Lessor’s funding of its purchase of the Ship and/or continuing the leasing of the Ship under this Agreement and
determining LIBOR (and any alternative basis agreed 

	 	 
in writing shall be retroactive to and effective from the commencement of the relevant period and shall continue until LIBOR can be determined in accordance
with paragraphs (a) or (b) of the definition of LIBOR), the Lessee shall indemnify the Lessor for its cost of funds from whatever source the Lessor may reasonably select, and for reasonable periods, in any such case following consultation
with the Lessee. 

  

	24	Illegality, etc 

  

	24.1	Illegality 

 This clause 24 applies if the Lessor
notifies the Lessee that it has become, or will with effect from a specified date, become: 
  

	24.1.1	unlawful or prohibited as a result of the introduction of a new law, an amendment to an existing law or a change in the manner in which an existing law is or will be interpreted or
applied; or 

  

	24.1.2	contrary to, or inconsistent with, any regulation, 

 for
the Lessor to continue to lease the Ship to the Lessee under this Agreement. 
  

	24.2	Termination 

 The Lessor is entitled either in its
notice to the Lessee pursuant to clause 24.1 or by a subsequent notice, to terminate the Lease Period either immediately or at a future specified date being in any such case not earlier than the date on which it becomes unlawful, prohibited or
contrary to, or inconsistent with, any regulation for the Lessor to continue to lease the Ship to the Lessee under this Agreement, but for the avoidance of doubt no Termination Fee shall be payable by the Lessee in such circumstances. 
  

	24.3	Manner of termination 

 A termination under clause
24.2 will be deemed to be a voluntary termination of the Lease Period in accordance with clauses 2.3 or 2.6 (notwithstanding that the Lessor shall not have received 30 days’ notice) and the provisions of clauses 2.4 to 2.13 shall apply to that
termination. 
  

	24.4	Mitigation 

 If circumstances arise which would
result in notification under clause 24.1 then, without limiting the rights of the Lessor under clauses 24.2 and 24.3, the Lessor shall use its reasonable endeavours to take such reasonable steps as may be open to it to mitigate or remove those
circumstances Provided that the Lessor shall be under no obligation to take any such steps which shall or, in the Lessor’s opinion, might be considered likely to: 
  

	24.4.1	have an adverse effect in the Lessor’s business operations or financial condition or those of any Lessor Group Member; 

  

	24.4.2	involve the Lessor or any Lessor Group Member in any activity which is unlawful or prohibited or any activity which is contrary to, or inconsistent with, any regulation; or

  

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

	25	Release from Arrest: Lessor’s and Lessee’s Vessels 

  

	25.1	Release from arrest: Lessor’s vessels 

 Other
than the Ship or the Sister Ships or any other vessel owned by the Lessor and leased to a company which is owned by the Guarantor, if any vessel which is for the time being owned (in whole or in part) by or leased to any Lessor Group Member shall at
any time have a writ or equivalent claim or pleading in admiralty filed against it or be arrested, attached or levied upon pursuant to any legal process or purported legal process or is detained in exercise or purported exercise of any lien or claim
of whatsoever nature, and which arises out of the use or operation of the Ship or the Sister Ships or any other vessel owned in whole or in part by or leased or chartered to the Lessee or to any Transaction Company or other Guarantor Group Member or
to any other company owned by the Guarantor with any other company, or otherwise by reason of the act or omission of any of the Lessee or any Transaction Company or other Guarantor Group Member, except where that lien or claim arises as a result of
any Lessor Misconduct or the equivalent in relation to a Lessor Group Member (but excluding for this purpose any act or omission relating to the operation of the Ship or the Sister Ships or any other vessel owned by any Lessor Group Member and
leased or chartered to the Lessee or any Transaction Company or any other Guarantor Group Member for which the Lessee or such Transaction Company or other Guarantor Group Member is responsible pursuant to this Agreement or the relevant leasing or
chartering contracts): 
  

	25.1.1	the Lessee forthwith upon receiving notice thereof at its expense shall procure the release of such vessel from such arrest, detention, attachment or levy or, as the case may be,
the discharge of the writ or equivalent claim or pleading in admiralty by providing bail or procuring the provision of security or otherwise as the circumstances may require; and 

  

	25.1.2	the Lessee shall be responsible for discharging each and every liability in connection with any such process, claim, lien or other action. 

 Without prejudice to the generality of the other indemnities contained in this Agreement or any of the other Transaction Documents, should any such other
vessel owned (in whole or in part) by or leased or chartered to any Lessor Group Member and leased or chartered by it (otherwise than to the Lessee or any other Transaction Company or Guarantor Group Member) be arrested, detained, attached or levied
upon or be the subject of or have a writ or equivalent claim or pleading in admiralty filed against it in such circumstances, the Lessee shall indemnify the Lessor against all Losses imposed on, suffered or incurred or expended by the Lessor and/or
such Lessor Group Member in connection with such arrest, detention, attachment, levy, writ or equivalent claim or pleading in admiralty, together with any costs and expenses (including the provision of any guarantee or bond) or other outgoings which
may be suffered or paid by the Lessor and/or any Lessor Group Member in releasing such vessel from any such arrest, seizure, custody, detention, attachment or distress. 
  

	25.2	Release from arrest: Lessee’s vessels 

 If:

  

	25.2.1	 the Ship or the Sister Ships or any other vessel owned or operated by any Guarantor Group Member or any company owned by the Guarantor, at any time has a writ or
equivalent claim or pleading in admiralty filed against it or is arrested, attached or levied upon 

	 	 
pursuant to any legal process or purported legal process or is detained in exercise or purported exercise of any lien or claim of whatsoever nature in each
such case arising out of the use or operation of any other vessel for the time being owned by any Lessor Group Member and leased or chartered by it otherwise than to the Lessee or any Transaction Company or to any other Guarantor Group Member or to
any company owned by the Guarantor; and 

  

	25.2.2	should the charterers of such other vessel (being in that situation under obligations to the Lessor or the Lessor Group Member equivalent to those assumed by the Lessee under clause
25.1) fail to fulfil those obligations, 

 Provided that the Lessee shall first have given prior notice thereof to the Lessor
and, to the extent practicable, consulted with the Lessor or such Lessor Group Member as far in advance as is reasonable in all the circumstances, the Lessee shall: 
  

	 	(a)	be entitled to act as agent for the Lessor or the Lessor Group Member to procure release of the Ship or the Sister Ships or such other vessel (as the case may require) from such
arrest, detention, attachment or levy or, as the case may be, the discharge of the writ or equivalent claim or pleading in admiralty and the discharge of all liabilities in connection with such process, claim, lien or other action; and

  

	 	(b)	be entitled to be indemnified by the Lessor or the Lessor Group Member against claims made on the Lessee by the charterers of such other vessel in connection with such arrest,
detention, attachment, levy, writ or equivalent claim or pleading in admiralty and all losses and expenses reasonably and properly so incurred by it. 

  

	26	Confidentiality 

  

	26.1	Confidentiality 

 At all times during the Lease
Period, each of the Lessor and the Lessee shall keep confidential and shall not, without the prior written consent of the other: 
  

	26.1.1	issue any press release or make any other public announcement or statement in relation to the transactions evidenced by this Agreement and the other Transaction Documents; or

  

	26.1.2	disclose to any other person (i) the financial details of this Agreement or any other Transaction Document or the transactions contemplated by this Agreement or any other
Transaction Document or any other agreement entered into after the date of this Agreement by the Lessor or the Lessee in connection with this Agreement or any other Transaction Document or (ii) any information provided pursuant to any of the
Transaction Documents; or 

  

	26.1.3	release copies of drafts of this Agreement or any other Transaction Document which disclose or reveal the identity of the parties (or any of them), 

 the information contemplated by clauses 26.1.1 to 26.1.3 above being “Confidential Information” 
 Provided that the parties shall be entitled, without any such consent, to disclose such Confidential Information: 
  

	 	(a)	if the same is already known to the receiving person at the time of disclosure as shown by the receiving person’s files and records immediately prior to that disclosure or is
developed by the receiving person independently of such disclosure; or 

	 	(b)	in connection with any proceedings arising out of or in connection with this Agreement or any of the other Transaction Documents; or 

  

	 	(c)	if required to do so by an order of a court of competent jurisdiction whether in pursuance of any procedure for discovery of documents or otherwise; or 

  

	 	(d)	if it is reasonably believed by such party to be disclosable pursuant to any applicable law, stock exchange regulations or by a governmental order, decree, regulation or rule; or

  

	 	(e)	to any fiscal, monetary, tax, governmental or other competent authority; or 

  

	 	(f)	to the auditors, legal or professional or insurance advisors, underwriters or brokers of the Lessee or the Lessor who (A) shall have a need to have such knowledge of the same
in connection with carrying out work related to the transaction contemplated by this Agreement and the other Transaction Documents and (B) shall be advised of the confidential nature of any such information supplied to them and shall be
instructed to maintain the confidentiality of any information supplied to them; or 

  

	 	(g)	in any manner contemplated by any of the Transaction Documents; or 

  

	 	(h)	if the same is in the public domain or shall become publicly known otherwise than as a result of a breach by such party or by the receiving person or any other person to whom
disclosure is made of this clause 26.1; or 

  

	 	(i)	if the same is acquired independently from a third party without breach of that third party’s obligations of confidentiality; or 

  

	 	(j)	in the case of the Lessee, to any director, officer, employee, agent or representative of any Guarantor Group Member, the Time Charterer or the Approved Manager and its Affiliates,
and, in the case of the Lessor, any director, officer, employee, agent or representative of any Lessor Group Member provided that in each case the Lessee or the Lessor shall procure that the party to whom such disclosure is made shall comply with
the requirements of this clause, 

 provided that if the Confidential Information is provided by a party on the basis that it is
to be kept confidential, but the party providing the information discloses it to another person on a non-confidential basis, then the receiving parties shall no longer be obliged to treat such information as confidential. 
  

	26.1.4	The Lessor and the Lessee shall be responsible for ensuring that where Confidential Information is disclosed to persons under clause 26.1.3 such persons shall keep the information
confidential and shall not disclose or divulge the same to any unauthorised person. 

	27	Notices 

  

	27.1	General 

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

	27.2	Addresses for communications 

  

			
	A notice shall be sent:
	
	to the Lessee:
	
	Seaspan Finance I Co. Ltd
	Unit 2
	7th Floor Bupa Centre
	141 Connaught Road West
	Hong Kong F4 0000
	China
		
	Fax No:	    	+852 2450 1689
	Attn:	    	Gerry Wang
	
	with a copy to:
	
	 Seaspan Management Services Limited
 c/o
2600-200 Granville Street

	Vancouver, BC
	Canada V6C 1S4
		
	Fax No:	    	+604 648 9351 / +604 676 2296
	Attn:	    	Gerry Wang
	
	to the Lessor:
	
	 Peony Leasing Limited
 c/o Bank of Scotland
Structured Asset Finance Limited

	Level 6
	Bishopsgate Exchange
	155 Bishopsgate
	London
	EC2M 3YB
		
	Fax No:	    	+44 20 7012 9455
	Attn:	    	Head of Structured Marine Finance

 or to such other address as the relevant party may notify the other. 
  

	27.3	Effective date of notices 

 Subject to clauses 27.4
and 27.5: 

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

  

	27.3.2	a notice which is sent by fax shall be deemed to be served, and shall take effect, upon the confirmed despatch by the sender. 

  

	27.4	Service outside business hours 

 However, if under
clause 27.3 a notice would be deemed to be served: 
  

	27.4.1	on a day which is not a business day in the place of receipt; or 

  

	27.4.2	on such a business day, but after 5 p.m. local time, 

 the
notice shall be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a business day. 
  

	27.5	English language 

 Any notice under or in connection
with this Agreement shall be in English. 
  

	27.6	Meaning of “notice” 

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

	28	Supplemental 

  

	28.1	Rights cumulative, non-exclusive 

 The rights and
remedies which this Agreement and the other Transaction Documents give to the Lessor are: 
  

	28.1.1	cumulative; 

  

	28.1.2	may be exercised as often as appears expedient; and 

  

	28.1.3	shall not, unless this Agreement or any Transaction Document explicitly and specifically states so, be taken to exclude or limit any right or remedy conferred by any law.

  

	28.2	Severability of provisions 

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

	28.3	Variations, waivers etc. 

 A document shall only be
effective to vary, waive, suspend or limit any provision of this Agreement or any Transaction Document, or the Lessor’s or the Lessee’s rights or remedies under such a provision or the general law, if the document is signed, or
specifically agreed to in writing by the Lessor and the Lessee. 

	28.4	Counterparts 

 This Agreement and any Transaction
Document may be executed in any number of counterparts and one such counterpart executed by each of the parties thereto and, provided that all parties sign, each executed counterpart duly executed and delivered shall be deemed an original but taken
together they shall constitute one instrument. 
  

	28.5	Set-off 

 The Lessee authorises the Lessor without
prejudice to any of the Lessor’s rights of set-off at law, in equity or otherwise, at any time after the occurrence of a Termination Event, a Mandatory Prepayment Event or a Further Novation Event and whilst it is continuing to set-off or
withhold from any sum or sums expressed in the Lease Documents to be payable to the Lessee by the Lessor any amount due and payable but unpaid to the Lessor from the Lessee under the Lease Documents. The Lessor shall not be obliged to exercise any
right given to it by this clause 28.5. The Lessor shall notify the Lessee upon the exercise or purported exercise by the Lessor of any right of set-off or withholding. 
  

	28.6	Further Assurance 

 As soon as practicable after any
such request by the Lessor and at its own expense, the Lessee shall execute, sign, perfect and do any and every such further assurances, document, act or thing as is, in the reasonable opinion of the Lessor: 
  

	28.6.1	necessary to carry out the transactions contemplated by this Agreement and the other Transaction Documents; or 

  

	28.6.2	necessary to protect or enforce any of the Lessor’s rights under this Agreement or the other Transaction Documents or title of the Lessor in the Ship. 

 

	28.7	Time of the essence 

 Subject to any periods of
grace provided for by or referred to in this Agreement and the other Transaction Documents, time shall be of the essence as regards performance by the Lessee of its obligations under this Agreement and the other Transaction Documents. 
  

	28.8	Entire Agreement 

 As at the date of this Agreement,
the Transaction Documents constitute the entire agreement between the parties in relation to the leasing of the Ship by the Lessor to the Lessee and supersedes all previous proposals, agreements and other written or oral communications in relation
thereto. 
  

	28.9	Third party rights 

 With the exception of
Indemnified Persons, a person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Deed. However, notwithstanding any term of this Agreement
to the contrary, no variation of this Agreement, and no release or compromise of any liability hereunder and no termination by the Lessor of the leasing of the Ship or of its obligation hereunder to lease the Ship shall require consent or approval
of any third party. 

	29	Law and Jurisdiction 

  

	29.1	English law 

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

	29.2	Exclusive English jurisdiction 

 Subject to clause
29.3, the courts of England shall have exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Agreement and the Lessee irrevocably designates, appoints and empowers WFW Legal Services Limited of 15 Appold
Street, London EC2A 2HB to receive for it and on its behalf service of process issued out of the English courts in connection with any such dispute. 
  

	29.3	Choice of forum 

 Clause 29.2 is for the exclusive
benefit of the Lessor which reserves the rights: 
  

	29.3.1	to commence proceedings in relation to any matter which arises out of or in connection with this Agreement in the court of any country other than England which has jurisdiction in
respect of that matter; or 

  

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

  

	29.4	Lessee rights unaffected 

 Nothing in this clause 29
shall exclude or limit any right which the Lessor may have (whether under the law of any country, an international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a
judgment or any similar or related matter in any jurisdiction. 
  

	29.5	Meaning of “proceedings” 

 In this clause
29, “proceedings” means proceedings of any kind, including an application for a provisional or protective measure. 
 THIS
AGREEMENT has been executed by the parties to it on the date stated at the beginning of this Agreement. 

 Schedule 1 
 Financial Schedule 
 (see attached) 

 Schedule 2 
 Description of Ship 
 The Ship to be constructed by the Builder under the Novated Building Contract with
Builder’s Hull No. 1851 to the following approximate principal specifications as at the date of this Agreement and subject to alteration pursuant to any amendment to the Novated Building Contract in accordance with the terms and conditions
of this Agreement and the other Lease Documents. 
  

			
	Length overall	  	268.5m
	Length between perpendiculars	  	254.3m
	Breadth (moulded)	  	35.0m
	Depth (moulded) to upper deck	  	19.5m
	Draught (design), moulded	  	11.0m
	Classification Society	  	Det norske Veritas
	Class	  	DNC, +1A1 Container Carrier, NAUTICUS (Newbuilding), EO, BIS, TMON, COMF-V(3)C(3), NAUT-OC, BMW-E(d), CLEAN, Green Passport

 Schedule 3 
 Part A—Form of Lessor Parent Support Letter (Lessee) 
 [On Bank of Scotland plc notepaper]

  

	To:	[Lessee] 

 2007 
 Dear Sir/Madam, 
 [—] Limited
(the “Subsidiary”) 
 UK Finance Lease for Samsung Hull no. [—] (the “Ship”)

 We refer to the Lease of even date herewith between the Subsidiary and yourselves (the “Lessee”) relating to the Ship (the
“Lease”). Terms defined in the Lease shall have the same meanings when used in this letter. 
 We confirm that the Subsidiary is a wholly
owned UK subsidiary of Bank of Scotland plc and that we are aware of the Subsidiary’s current obligations and liabilities to the Lessee under the Transaction Documents. 
 In consideration of the Lessee agreeing to lease the Ship from the Subsidiary we confirm that throughout the term of the Transaction Documents we will ensure that the Subsidiary is able to and will perform its
obligations and discharge its liabilities to the Lessee arising from the Transaction Documents. 
 If, at a time whilst the Subsidiary continues to have any
obligations or liabilities to the Lessee under the Transaction Documents, shares in the Subsidiary or any intermediate shareholding company are intended to be transferred (whether by ourselves or any intermediate holding company) so that the
Subsidiary will cease to be a wholly-owned direct or indirect subsidiary of Bank of Scotland plc, we will give notice of such intended transfer to the Lessee and, if the Lessee so requests in writing within 20 Business Days after receipt of such
notice, we will, prior to such transfer of shares, procure that the rights, interests and obligations of the Subsidiary under the Transaction Documents are transferred to another company (“Transferee”) which is itself a wholly-owned
direct or indirect Subsidiary of Bank of Scotland plc. 
 The provisions of this letter shall apply to a Transferee as if references to the
“Subsidiary” in this letter were references to such Transferee. 
 Any transfer of the rights, interests and obligations pursuant to this letter
shall be effected at no cost to the Lessee and so as to ensure that the Lessee shall be under no greater liability nor receive any lesser benefit, financial or otherwise, under the Transaction Documents to which the Subsidiary is party as a result
of such transfer than would have been the case had no such transfer taken place. 
 Without prejudice to or limitation of our other statements and
undertakings in this letter, and our contractual obligations and liabilities in respect of the foregoing, nothing in this letter shall constitute, or shall be deemed to constitute, a guarantee of the Subsidiary’s obligations under the
Transaction Documents. 

 This letter is intended to create legal relations between us and will be governed by and construed in accordance with
English law. 
 No term of this letter is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not party to this Letter.

 The Letter is confidential and shall not be disclosed to any party save as permitted by clause 26 of the Lease. 
 Yours faithfully 
  

	
	  

	For and on behalf of
	Bank of Scotland plc

 Part B—Form of Lessee Parent Support Letter (Builder) 
 [On Bank of Scotland plc notepaper] 
  

	To:	Samsung Heavy Industries Co. Ltd., 

 34th Floor, Samsung
Life Insurance Seocho Tower 
 1321-15 Seoul 
 South Korea 
 2007 
 Dear Sir/Madam, 
 [—] Limited (the “Subsidiary”) 
 Samsung Hull no. [—] (the “Ship”) 
 We refer to the Novation Agreement to be entered into on or about the date hereof between (among others) the Subsidiary and yourselves (the “Builder”) pursuant to which the Subsidiary will become the
new buyer of the Ship under a Shipbuilding Contract dated [•] 2007 originally between Seaspan Corporation and the Builder. Such novated Shipbuilding Contract is herein referred to as the “Contract”. 
 We confirm that the Subsidiary is a wholly owned UK subsidiary of Bank of Scotland plc and that we are aware of the Subsidiary’s current obligations and liabilities
to the Builder under the Contract. 
 We further confirm that throughout the term of the Contract we will ensure that the Subsidiary is able to and will
perform its obligations and discharge its liabilities to the Builder arising from the Contract. 
 If, at a time whilst the Subsidiary continues to have any
obligations or liabilities to the Builder under the Contract, shares in the Subsidiary or any intermediate shareholding company are intended to be transferred (whether by ourselves or any intermediate holding company) so that the Subsidiary will
cease to be a wholly-owned direct or indirect subsidiary of Bank of Scotland plc, we will give notice of such intended transfer to the Builder and, if the Builder so requests in writing within 20 Business Days after receipt of such notice, we will,
prior to such transfer of shares, procure that the rights, interests and obligations of the Subsidiary under the Contract are transferred to another company (“Transferee”) which is itself a wholly-owned direct or indirect Subsidiary
of Bank of Scotland plc. 
 The provisions of this letter shall apply to a Transferee as if references to the “Subsidiary” in this letter were
references to such Transferee. 
 Any transfer of the rights, interests and obligations pursuant to this letter shall be effected at no cost to the Builder
and so as to ensure that the Builder shall be under no greater liability nor receive any lesser benefit, financial or otherwise, under the Contract to which the Subsidiary is party as a result of such transfer than would have been the case had no
such transfer taken place. 
 Nothing in this letter shall constitute, or shall be deemed to constitute, a guarantee of the Subsidiary’s obligations
under the Contract. 

 This letter will be governed by and construed in accordance with English law. 
 No term of this letter is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not party to this Letter. 
 Yours faithfully 
  

	
	  

	For and on behalf of
	Bank of Scotland plc

 Schedule 4 
 Lessee’s Condition Precedent Documents 
 Part A 
 Lessor’s Conditions Precedent to the First Instalment 
 The
following are the documents and actions referred to in clause 3.1.1 as conditions precedent to the obligations of the Lessor under this Agreement and the payment of the First Instalment pursuant to the Novated Building Contract and the Novation
Agreement: 
  

	1	An original of this Agreement, the Novation Agreement, the Supervision Agreement, the Refund Guarantee, the Guarantee, the QEL, the General Assignment, the Indexation Relief Letter,
the Tax Consultation Letter and the Non Discrimination Letter and each other Transaction Document to which the Lessor is or is then to be a party (and each notice or document required to be delivered by each such Transaction Document), each duly
signed by all parties thereto. 

  

	2	Copies of the certificate of incorporation and constitutional documents of the Lessee, the Guarantor and the Supervisor. 

  

	3	Copies of resolutions of the directors and, if necessary for the purposes of obtaining the opinions referred to in paragraph 12 in form and substance satisfactory to the Lessor, the
shareholders of the Lessee, the Guarantor and the Supervisor or equivalent documents authorising the execution of each of the Transaction Documents to which any of them is or is to be a party and authorising named persons to give all notices under
this Agreement and each Transaction Document. 

  

	4	The original of any power of attorney under which any Transaction Document is executed on behalf of the Lessee, the Guarantor and the Supervisor. 

  

	5	Copies of any governmental or other third-party consents, licences, approvals, registrations and filings (“Consents”) necessary for any matter contemplated by the
Lease Documents and for the legality, validity, enforceability, and admissibility in evidence and effectiveness thereof having been obtained or effected and remain in full force and effect, including, but not limited to, such Consents required to
make any payment under any Transaction Document or evidence that no such Consents are required. 

  

	6	Certified true copies of the Building Contract, the Time Charter and all of the other Transaction Documents to which the Lessor is not a party which have been executed at such time
and all documents to be delivered pursuant to each of such documents each duly signed by all parties. 

  

	7	Evidence reasonably acceptable to the Lessor of the amounts of all payments already made by the Original Purchaser under the Building Contract to the Builder together with details
relating to each payment including what the payment was for and the date on which payment was made, and an invoice from the Builder to the Lessor in accordance with clause 7.2 of the Novation Agreement. 

	8	Documentary evidence that the novation of the Building Contract contemplated in the Novation Agreement has or, simultaneously with the Lessor’s obligations referred to in
clause 3.1.1 becoming effective, shall become effective. 

  

	9	Receipt by the Lessor of any fees, costs and expenses payable by the Lessee which are due for payment on or prior to the date for the payment of the First Instalment and which are
not rentalised in the Financial Schedule. 

  

	10	Documentary evidence that the agents for service of process in England appointed by the Lessee, the Guarantor, the Supervisor and the Time Charterer (as applicable) in relation to
all Transaction Documents have accepted such appointment. 

  

	11	Opinions from: 

  

	(a)	Kim & Chang as special Korean legal counsel in relation to the Builder and the Refund Guarantor and the execution of the Novation Agreement by the Builder and the Refund
Guarantee by the Refund Guarantor, and as to matters of Korean law; 

  

	(b)	Cozen O’Connor, as special Marshall Islands legal counsel in relation to the Lessee, the Guarantor, this Agreement, the Novation Agreement, the Guarantee, and as to matters of
Marshall Islands law, 

  

	(c)	Conyers, Dill & Pearman, as special Bermudan legal counsel in relation to the Supervisor, the Supervision Agreement and as to matters of Bermudan law;

  

	(d)	Halpern Law Office, as special Japanese legal counsel in relation to the Time Charterer, the QEL and as to matters of Japanese law; and 

  

	(e)	The Lessor’s insurance advisers, Marsh, in respect of the insurance provisions of this Agreement and insurance arrangements with respect to the Ship and the Sister Ships
generally, 

 each in form and substance satisfactory to the Lessor. 
  

	12	If the Lessor reasonably requires, in respect of any of the documents referred to above which may be provided in a language other than English, a certified English translation
prepared by a translator approved by the Lessor. 

  

	13	The Lessee has confirmed that the conditions precedent to its obligations set out in Schedule 5 have been satisfied or waived by the Lessee. 

  

	14	Completion of all relevant money laundering compliance checks by the Lessor in respect of the Lessee, the Replacement Purchaser, the Guarantor and any other relevant company, in
accordance with the Lessor Group’s current procedural requirements. 

 Part B 
 Lessor’s Conditions Precedent to each Instalment 
 The Lessor shall have received each of the following, in form
and substance satisfactory to the Lessor: 
  

	1	evidence that the relevant Instalment has fallen due for payment under the terms of the Novated Building Contract and the Novation Agreement, which evidence shall be constituted by
notice from the Builder to the Supervisor (and copied to the Lessor) in accordance with clause 7.2 of the Novation Agreement; 

  

	2	evidence as to the amount of the relevant Instalment and the account to which it is to be paid, which evidence shall be constituted by an invoice from the Builder to the Lessor in
accordance with clause 7.2 of the Novation Agreement; 

  

	3	if the Lessor advises the Lessee that the amount of the relevant Instalment would, when aggregated with the Arrangement Fee, the other Lease Amounts and the amount of the
Instalments previously paid, cause the Maximum Commitment to be exceeded, the Lessor shall have received the required amount to be paid by the Lessee to the Lessor as a Contribution Payment under clause 3.10 within the time permitted under clause
3.10; 

  

	4	confirmation from a duly authorised officer of each of the Lessee, the Replacement Purchaser, the Guarantor and the Supervisor that there has been no change in the constitutive
documents of the relevant Transaction Company since the date on which the same were provided to the Lessor pursuant to paragraph 2 of Part A of Schedule 4 or, as the case may be, a copy of any amendments thereto certified by a duly authorised
officer of the relevant Transaction Company and confirmation that the board resolutions, the powers of attorney or other corporate authorisations referred to in paragraphs 3 and 4 of Part A of schedule 4 remain unamended and in full force and
effect; and 

  

	5	receipt of certificates from the Lessee and the Guarantor in respect of clause 3.2.2 of this Agreement and evidence that the other conditions referred to in clause 3.2 of this
Agreement have been satisfied. 

 Part C 
 Lessor’s Conditions Precedent to the Final Instalment 
 The following are the documents referred to in clause
3.3.1: 
  

	1	An Intended Delivery Notice in accordance with the terms of this Agreement; 

  

	2	The commercial invoice of the Builder addressed to the Lessor in respect of the Final Instalment payable under the Novated Building Contract; 

  

	3	Drafts of the Builder’s Certificate and the Protocol of Delivery and Acceptance together with drafts of certain of the other documents referred to in article VII of the Novated
Building Contract and evidence that, at Delivery, originals of all these documents (where applicable, signed for the Builder) will be delivered to, or to the order of, the Lessor; 

  

	4	Evidence that the obligations of the Lessee under clauses 10.10, 13.2 and 13.3 of this Agreement will be complied with, as from Delivery; 

  

	5	Confirmation from the Supervisor that the Ship has been constructed in compliance with the terms of the Novated Building Contract and any minor works identified by the Supervisor in
the Intended Delivery Notice which are to be rectified by the Builder after the Delivery Date; and 

  

	6	If the Lessor advises the Lessee that the amount of the relevant Instalment would, when aggregated with the Arrangement Fee, and the other Lease Amounts and the amount of the
Instalments previously paid cause the Maximum Commitment to be exceeded, receipt by the Lessor of the required amount to be paid as a Contribution Payment under clause 3.10 within the period of time permitted by clause 3.10.

 Part D 
 Lessor’s conditions precedent to Delivery 
 The following are the documents referred to in clause 3.3.2:

  

	1	Duly executed originals of the documents specified in Part C paragraph 3 of this Schedule; 

  

	2	Evidence that the Ship is duly registered under a flag referred to in clause 12.3 in the name of the Lessor; 

  

	3	Evidence that the Ship has been granted the classification referred to in clause 10.3.2 free of overdue conditions affecting the Ship’s class unless waived;

  

	4	Copies of any Document of Compliance, Safety Management Certificate and/or International Ship Security Certificate and all other documents required at that time for the Ship
pursuant to the ISM Code and ISPS Code; 

  

	5	Evidence that the obligations of the Lessee in relation to Insurances under clauses 13.2 and 13.3 of this Agreement have been complied with; 

  

	6	If so requested by the Lessor, an insurance report, paid for by the Lessee, from an independent adviser selected by the Lessor (subject to prior agreement on their fee) confirming
that the Ship’s Insurances comply with the requirements of clause 13; 

  

	7	Copies of any consents which are required to be obtained and maintained in respect of the Ship and its operation; 

  

	8	The certificate of delivery and acceptance in the form of schedule 7 to this Agreement duly signed by the Lessee, and a copy of the protocol of delivery and acceptance in the form
required by the Time Charter signed by the Time Charterer; 

  

	9	Confirmation from a duly authorised officer of each of the Lessee, the Supervisor and the Guarantor that there has been no change in the constitutional or organisational documents
of the relevant Transaction Company since the date on which the same were provided to the Lessor pursuant to paragraph 2 of Part A of Schedule 4 or, as the case may be, a copy of any amendments thereto certified by a duly authorised officer of the
relevant Transaction Company and confirmation that the board resolutions, the powers of attorney or other corporate authorisations referred to in paragraphs 3 and 4 of Part A of schedule 4 remain unamended in full force and effect and that all the
Transaction Documents to which they are a party remain in full force and effect; 

  

	10	Receipt of certificates from the Lessee and the Guarantor in respect of clause 3.2.2 of this Agreement and evidence that the other conditions referred to in clauses 3.2 and 3.3 of
the Lease Agreement have been satisfied; 

  

	11	Confirmatory opinions each confirming that the opinions expressed in the legal opinions issued pursuant to paragraph 14 of Part A of Schedule 4 need not be altered or modified in
any way or, as the case may be, supplemental opinions in respect of any matters in respect of which such confirmations cannot be given in form and content acceptable to the Lessor; and 

	12	An opinion from counsel selected by the Lessor in the proposed flag state for the Ship, in relation to the registration of the Ship, in form and content acceptable to the Lessor.

 General Note 
  

	1	All copies of documents to be provided under any part of this Schedule 4 must be certified to be true, complete and up-to-date as at the date of certification, and must be certified
by an authorised signatory of the person providing such copies. 

  

	2	In the event that any of the representations and warranties on the part of any of the Lessee, the Replacement Purchaser, the Supervisor, the Time Charterer and/or the Guarantor are
incorrect or inaccurate in any way, the applicable person shall have disclosed to the Lessor the circumstances and nature of such inaccuracy or incorrectness. 

 Schedule 5 
 Lessee’s Pre-Delivery Condition Precedent Documents 
 The following are the documents referred to in clause 3.4:

  

	1	An original of each Transaction Document to which the Lessor or the Lessor Parent is a party duly executed by the Lessor or, as the case may be, the Lessor Parent;

  

	2	Copies of resolutions of the directors of the Lessor authorising execution of each of the Transaction Documents to which it is a party by the persons signing them;

  

	3	Certified copies of any power of attorney under which any Transaction Document is executed on behalf of the Lessor; and 

  

	4	Evidence of the due execution by the Bank of the Lessor Parent Support Letter given in favour of the Lessee in a form satisfactory to the Lessee (acting reasonably).

 Schedule 6 
 Form of Instalment Request 
  

	To:	[—] Limited 

 Level 6

 Bishopsgate Exchange 
 155
Bishopsgate 
 London 
 EC2M 3YB

 Attention: Head of Structured Marine Finance 
 Dated: [—] 
 Dear Sirs 
 Lease Agreement (the “Lease Agreement”) dated [—] 2007 relating to Samsung Hull No. [—] 
 We refer to the Lease Agreement and give you notice that the expected date for the [—] Instalment of the Purchase Price is [—]. 
 We further notify
you that the payments due on that date [is/are] as follows: 
 [—] 
 We confirm that no Relevant Event has occurred which is continuing. 
 Words
and expressions defined in the Lease Agreement shall have the same meanings when used in this Instalment Request. 
  

	
	  

	For and on behalf of
	[Lessee]

  

 120 

 Schedule 7 
 Form of Certificate of Delivery and Acceptance 
 Pursuant to a lease agreement (the “Lease”) dated
[—] 2007 made between (i) [—] Limited (the “Lessor”) and (ii) [—] (the “Lessee”)
in respect of the m.v. “[—]” (the “Ship”), registered under the laws and flag of [—] with Official Number [—] and on the basis of the confirmation given by the Lessee in this Certificate, the Ship was delivered by the Lessor to the Lessee, and accepted by the Lessee from the Lessor, at [—] hours [GMT]/[BST] on [—] at [—] under, and in accordance with the terms and conditions of, the Lease.

 The Lessee confirms that as at the date of this Certificate: 
  

	(a)	no Relevant Event has occurred and is continuing; and 

  

	(b)	the representations and warranties set out in clause 19 of the Lease are true and correct as if each was made with reference to the facts and circumstances existing at the date of
this Certificate. 

 Dated: [—] 
  

	
	  

	For and on behalf of
	[Lessee]

  

 121 

 Schedule 8 
 Form of Intended Delivery Notice 
  

	To:	[—] Limited 

 Level 6

 Bishopsgate Exchange 
 155
Bishopsgate 
 London 
 EC2M 3YB

 Attention: Head of Structured Marine Finance 
 Dated : [—] 
 Dear Sirs 
 m.v. “[—]”—Lease Agreement dated [—] 2007 (the
“Lease”) 
 We refer to the Lease. Words and expressions defined in the Lease shall have the same meaning when used in this notice. 

The Supervisor hereby advises you that the anticipated date of Delivery is [—] and confirms that the Ship is built
in accordance with the Novated Building Contract [subject only to [    ]]*. 
 The Lessee hereby requests the Lessor
to take delivery of the Ship on that date, to make all necessary arrangements to fund the Final Instalment of the Purchase Price and to lease the Ship to the Lessee pursuant to the Lease (subject to any revised or replacement notice which may be
served on the Lessor if the anticipated date of Delivery is postponed). The Lessee confirms that: 
  

	(a)	no Relevant Event has occurred and is continuing, either now or at the anticipated Delivery Date; 

  

	(b)	each of the representations and warranties contained in clause 19 of the Lease is true and correct by reference to the facts and circumstances now existing, and will be true and
correct by reference to the facts and circumstances existing on the anticipated Delivery Date**. 

 Yours faithfully 
  

	
	  

	for and on behalf of
	[—], as Lessee

  

 122 

	
	  

	for and on behalf of
	[—] as Supervisor

  

	*	[any qualifications disclosed to and agreed by the Lessor to be inserted]. 

	**	In the event that any of the representations and warranties on the part of the Lessee or the Supervisor are incorrect or inaccurate in any way, the applicable person shall have
disclosed to the Lessor the circumstances and nature of such inaccuracy or incorrectness. 

  

 123 

 Schedule 9 
 Form of Notice of Assignment of Builder Warranties 
  

	To:	[Samsung] 

 Dated: [    ] 
 m.v. “[—]” 
 [—] Limited (the “Lessor”), of which the principal mailing address is currently c/o Bank of Scotland Structured Asset Finance Limited, PO Box 39900, Bishopsgate Exchange, 155
Bishopsgate, London EC2M 3YB, the Lessor of the vessel currently under construction with yourselves (the “Builder”) having Builder’s Hull No. [—] (the “Ship”) GIVES
NOTICE that by an assignment dated [                ] 2007 made by the Lessor in favour of [—] (the “Assignee”)
we have assigned to the Assignee absolutely the full benefit of all guarantees, warranties and indemnities of every kind (the “Warranties”) to which we are entitled now or at any later time to, in or in connection with a Building
Contract dated [—] (the “Building Contract”) made between the Builder and Seaspan Corporation, in respect of the construction and sale of the Ship as novated from Seaspan Corporation to the
Lessor by a Novation Agreement dated [                ] 2007 (the “Novation Agreement”) and made between (i) the Builder, (ii) Seaspan
Corporation, (iii) the Lessor and (iv) [—] (the Building Contract, as novated and amended by the Novation Agreement, the “Novated Building Contract”). 
 The Assignee is entitled, as from the Delivery Date, to exercise and enforce all rights in respect of the Warranties including without limitation the right to receive
damages and other sums in connection with the Novated Building Contract (but subject always to any express provisions in the Novation Agreement) and the Lessor shall, unless the Lessor notifies the Builder in writing to the contrary, have no further
responsibility or liability in respect of such matters. 
 The Lessor instructs the Builder to comply with the instructions contained in this notice until
otherwise notified by both the Lessor and Assignee. Until such time the instructions contained herein are irrevocable. 
 This notice is governed by and
shall be construed in accordance with English law. 
 Please acknowledge receipt of this notice by delivering a copy endorsed as set out below to the Lessor
and the Assignee. 
  

	
	  

	For an on behalf of
	[Lessor]

  

 124 

	To:	[—] Limited 

 c/o Bank
of Scotland Structured Asset Finance Limited 
 Level 6 
 Bishopsgate Exchange 
 155 Bishopsgate 
 London EC2M 3YB 
 Attention: Head of
Structured Marine Finance 
  

	cc:	[Lessee] 

 m.v. “[—]” 
 We hereby acknowledge receipt of the notice set out above and hereby confirm: 
  

	1	our agreement to the assignment referred to therein; and 

  

	2	that we have not received any other notice of assignment in respect of the same matter. 

  

	
	  

	For and on behalf of
	[Samsung]

 Dated : 
  

 125 

 Schedule 10 
 Standby Loan Transaction Characteristics 
  

			
	Borrower:	  	a company in the Guarantor Group
		
	Guarantor:	  	the Guarantor will guarantee the obligations of the Borrower in the same form as the Guarantee (but subject to such amendments to the financial covenants therein as may be determined during the
Lessor Standby Lender Review)
		
	Lender:	  	Bank of Scotland plc
		
	Amount:	  	an amount equal to the Final Rental under the Lease Agreement
		
	Currency:	  	US Dollars
		
	Maturity Date:	  	the loan shall be fully repaid by the seventh (7th) anniversary of the Lease Period End Date
		
	Interest:	  	US$[1/3] month LIBOR plus Margin, payable [monthly/quarterly]
		
	Margin:	  	110 bps
		
	Repayments:	  	the repayments will be [monthly/quarterly] and calculated so as to amortise to a final principal repayment on the Maturity Date of an amount equal to 30% of the amount paid by the Lessor to the
Builder under the Novated Building Contract (less any Contribution Payment)
		
	Security:	  	in addition to the Guarantee referred to above, the Borrower shall grant to the Lender a mortgage over the Ship, an assignment over the earnings, insurances and requisition compensation, and
such other Security as may be required by the Lessor, all in a form satisfactory to it
		
	Documentation:	  	to be prepared by the Lender’s legal counsel, based on the appropriate Loan Market Association form but adapted to reflect the provisions of the Lease Agreement (particularly in the case of
representations and warranties, operational covenants, undertakings and indemnities, and events of default)
		
	Costs:	  	for the account of the Borrower

 The following additional provisions shall apply to any Standby Loan Transaction entered into pursuant clause
2.14: 

			
	Amount:	  	an amount equal to the relevant Termination Sum under the Lease Agreement plus, in the case of any termination under clause 2.2.1(a), all further amounts to be advanced under the Standby Loan
Agreement during the Construction Period in respect of the Contract Price
		
	Repayment:	  	the repayments will be calculated so as to amortise initially to an amount as at the original Lease Period End Date equal to 80% of the amount paid by the Lessor to the Builder under the Novated
Building Contract (less any Contribution Payment)

			
	 Standby Lender
 Review:
	  	the Standby Lender Review referred to in clause 16 of the Lease Agreement shall continue to apply (mutatis mutandis) and, in the event of an adverse determination by the Lender, the Lender shall
be entitled to require a repayment of the standby loan on the original Lease Period End Date

 Schedule 11 
 Specimen Profit and Loss Account for Lessor 
 (referred to in clause 6.8) 
 [LESSOR NAME] 
 PROFIT AND LOSS
ACCOUNT 
 FOR THE [YEAR] [[—] MONTHS] ENDED [date] 
  

									
	 	  	Note	  	[period]
$000	 	 	[period]
$000	 
	 INCOME FROM FINANCE LEASES
	  		  	[—]	 	 	[—]	 
	 Administrative expenses
	  		  	([—]	)	 	([—]	)
		  		  	 	 	 	 	 
	 OPERATING PROFIT
	  		  	[—]	 	 	[—]	 
	 Interest payable and similar charges
	  		  	([—]	)	 	([—]	)
		  		  	 	 	 	 	 
	 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
	  		  	[—]	 	 	[—]	 
	 Tax on profit on ordinary activities
	  		  	([—]	)	 	([—]	)
		  		  	 	 	 	 	 
	 PROFIT FOR THE FINANCIAL PERIOD
	  		  	[—]	 	 	[—]	 
		  		  	 	 	 	 	 

 Specimen Balance Sheet for Lessor 
 (referred to in clause 6.4) 
 [LESSOR NAME] 
 BALANCE SHEED AS AT [date] 
  

									
	 	  	Note	  	200[—]
$000	 	 	200[—]
$000	 
	 CURRENT ASSETS
	  		  			 		
	 Debtors amounts falling due:
	  		  			 		
	 within one year
	  		  	[—]	 	 	[—]	 
	 after one year
	  		  	[—]	 	 	[—]	 
		  		  	 	 	 	 	 
	 Total Debtors
	  		  	[—]	 	 	[—]	 
				
	 CREDTIORS: amounts falling due within one year
	  		  	([—]	)	 	([—]	)
		  		  	 	 	 	 	 
	 NET CURRENT ASSETS
	  		  	[—]	 	 	[—]	 
				
	 CREDITORS: amounts falling due after more than one year
	  		  			 		
				
	 PROVISIONS FOR LIABILITIES AND CHARGES
	  		  	([—]	)	 	([—]	)
		  		  	 	 	 	 	 
	 NET ASSETS
	  		  	[—]	 	 	[—]	 
		  		  	 	 	 	 	 
	 CAPITAL AND RESERVES
	  		  			 		
	 Called up equity share capital
	  		  	[—]	 	 	[—]	 
	 Profit and loss account
	  		  	[—]	 	 	[—]	 
		  		  	 	 	 	 	 
	 EQUITY SHAREHOLDERS’ FUNDS
	  		  	[—]	 	 	[—]	 
		  		  	 	 	 	 	 

					
	LESSOR	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	 /s/ Keith Roderick Glasscoe

	for and on behalf of	  	)	  	Keith Roderick Glasscoe
	PEONY LEASING LIMITED	  	)	  	
	in the presence of:	  	)	  	
			
	Jus Lyall	  		  	
	Norton Rose LLP SE1	  		  	
	Associate	  		  	

  

					
	LESSEE	  		  	
			
	SIGNED by	  	)	  	
		  	)	  	 /s/ Hanno Erwes

	for and on behalf of	  	)	  	Hanno Erwes
	SEASPAN FINANCE I CO. LTD.	  	)	  	Attorney-In-Fact
	in the presence of:	  	)	  	

  

 131

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