Document:

Amended and Restated Security Agreement dated July 29, 2003

 EXHIBIT 10.2 
  
 AMENDED AND RESTATED SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT (“Agreement”) is made and entered into as of the 29th day of July, 2003 by
Healthcare Holdings, Inc., a Nevada corporation (“Debtor”), in favor of LTC Properties, Inc., a Maryland corporation (“Secured Party”), with reference to the following facts and circumstances. 
  
 A.    Secured Party has agreed to amend and restate a
Promissory Note (the “Note”) to Debtor, which Note is evidenced by that certain Amended and Restated Promissory Note of even date herewith executed by Debtor in favor of Secured Party (the “Note”). 
  
 B.    To secure its obligations under the Loan, Debtor
has agreed, among other things, to grant Secured Party a continuing security interest in all assets of Maker, whether heretofore or hereafter acquired. 
  
 NOW, THEREFORE, IN CONSIDERATION of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Debtor and Secured Party hereby agree as follows: 
  
 1.    Grant of Security Interest. As security for Debtor’s due and punctual performance of the Obligations (as hereinafter defined), Debtor hereby pledges with and delivers to Secured Party the Collateral (as
hereinafter defined), and grants, assigns, transfers and conveys to Secured Party a continuing security interest in all of Debtor’s right, title and interest in and to the Collateral. 
  
 2.    Obligations. This Agreement, and
Debtor’s pledge of and grant to Secured Party of a security interest in and to the Collateral, is made to secure: (i) due and punctual performance of Debtor’s obligation to make any and all payments when and as due under the Note, and any
other note or instrument executed by Debtor and payable to Secured Party which recites that it is secured hereby, including any and all amendments, modifications, renewals, extensions, substitutions or replacements hereof or thereof, including any
future advances which are made pursuant to the terms of the Note or any such note or instrument and the performance and discharge of each and every obligation of Debtor set forth in the Note or any such note or notes; (ii) payment of all other sums,
with interest thereon, herein or in the Note, or any such note or notes, or any part thereof; (iii) due, prompt and complete observance and performance of each and every obligation, covenant and agreement of Debtor contained herein, in the Note, or
in any other instrument executed by Debtor for the purpose of further securing the indebtedness evidenced by the Note, or such note or notes, or any part thereof (collectively, the “Obligations”). 
  
 3.    Collateral. As used herein, the term
“Collateral” shall collectively and severally mean all assets of Maker, including, but not limited to the following: 
  
 (a)    1,452,794 shares of Assisted Living Concepts, Inc. (“ALF”) common stock. 
  
 (b)    Accounts. All accounts, general
intangibles, chattel paper, instruments (as defined in the California Uniform Commercial Code (the “Code”)), and other obligations of any kind, now owned or held or hereafter acquired by the Debtor, including, without limitation, insurance
claims, insurance settlement proceeds, tax refund claims and tax refunds arising out of or in connection with the sale or lease of goods or the rendering of services, and all rights in and to all security agreements, leases, and other contracts
securing or otherwise relating to any such accounts, general intangibles, chattel paper, instruments or obligations, and all books and records relating to any of the foregoing (any and all of the foregoing being the “Accounts”);

  
 (c)    Instruments. All notes and
other instruments and any instrument which constitutes a part of chattel paper, and other evidences of indebtedness in which the Debtor now or hereafter has any interest, to the extent of that interest; 
  
 (d)    Documents. All documents (as defined in
the Code) in which the Debtor now or hereafter has any interest, to the extent of that interest; 
  
 (e)    Chattel Paper. All chattel paper in which the Debtor now or hereafter has any interest; 
  

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 (f)    General Intangibles. All General Intangibles (as hereinafter defined)
in which the Debtor now or hereafter has any interest, to the extent of that interest. “General Intangibles” means any “general intangibles,” as such term is defined in the Code, and shall include, without
limitation, (i) all patents, patent applications, trademarks, trademark registrations, trade names and trademark applications; (ii) license agreements with any other party, whether the Debtor is a licensor or licenses under any such license
agreement, and the right to prepare for sale, sell and advertise for sale all inventory now or hereafter covered by such licenses; (iii) all of the Debtor’s books, records and files, including computer software and tapes and all other forms of
electronic information storage; (iv) copyrights and other rights in intellectual property; (v) interests in partnerships, joint ventures and other business associations; (vi) licenses and permits; (vii) trade secrets, proprietary or confidential
information, customer lists, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge, know-how, software, data bases, data, skill, expertise, experience, processes, models, drawings, materials and
records, and goodwill; (viii) claims in or under insurance policies, including unearned premiums; (ix) uncertificated securities; (x) deposit accounts; (xi) rights to receive tax refunds and other payments; (xii) rights of indemnification; and
(xiii) all of the Debtor’s rights under any warranties or guaranties of any kind, including equipment, machinery or services; 
  
 (g)    Contracts. All of the Debtor’s rights under all contracts undertakings or agreements (other than rights evidenced
by chattel paper, documents or instruments) in or under which the Debtor may now or hereafter have any right, title or interest, including, without limitation, with respect to an Account, any agreement relating to the terms of payment or the terms
of performance thereof; 
  
 (h)    Money
and Other Personal Property. All money (as defined in the Code) and all other goods and personal property in which the Debtor has any interest, to the extent of that interest, whether now or hereafter owned or existing, leased, consigned by or
to or acquired by the Debtor and wherever located; and 
  
 (i)    Stock. All of the outstanding capital stock of Debtor and its subsidiaries now formed or to be formed. 
  
 (j)    Proceeds and Products. All proceeds and products of the foregoing (including, without limitation, cash proceeds and
noncash proceeds resulting from the sale or other voluntary or involuntary disposition thereof or any other realization in respect thereof) and including, but not limited to, all property of any type that is acquired with any cash proceeds, and all
guarantees, insurance and rights against sureties the Debtor may have in connection therewith and all proceeds and products relating thereto or therefrom, and all the Debtor’s right, title and interest in and to additions, accessions,
replacements and substitutions to and for the foregoing, and all documents, ledger sheets and files of the Debtor relating thereto. The term “proceeds” as used herein shall include, without limitation, all accounts, chattel paper,
deposit accounts, instruments, equipment, inventory, documents, general intangibles and other proceeds that arise from the sale, lease, transfer or other use or disposition of any kind of any of the Collateral described in the foregoing paragraphs
(a) through (j), inclusive, or proceeds, and all proceeds of any type described above acquired with cash proceeds. 
  
 4.    Delivery of Collateral. Concurrently with the execution and delivery of this Agreement, Debtor shall deliver to Secured
Party debentures and all stock certificates representing the Collateral set forth in Section 3 above. Debtor agrees to deliver to Secured Party stock certificates representing all the outstanding shares of any subsidiaries owned by Debtor and formed
hereafter. 
  
 5.    Declaration of
Trust. If Debtor shall become entitled to receive or shall receive any goods, instruments, documents, accounts, general intangibles or other property of any kind or nature delivered to Debtor on account of or in connection with Debtor’s
ownership of the Collateral, Debtor shall accept and hold the same as Secured Party’s agent, in trust for Secured Party, and shall forthwith, without notice or demand, endorse, transfer and deliver the same to Secured Party, accompanied, where
necessary or appropriate, by assignments duly executed in blank, to be held by Secured Party as part of the Collateral. 
  
 6.    Powers of Secured Party. Debtor appoints Secured Party its true attorney-in-fact to perform any of the following powers,
which are coupled with an interest, are irrevocable until termination of this Agreement and may be exercised from time to time by Secured Party’s officers, employees or agents, or any of them, whether or not an Event of Default has occurred:
(i) to liquidate any certificate of deposit pledged to Secured Party hereunder prior 
  

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 to its maturity date and to apply the proceeds thereof to payment of the Obligations or hold such proceeds as part of the
Collateral, notwithstanding the fact that such liquidation may give rise to penalties for early withdrawals of funds; (ii) to sell, exchange or otherwise dispose of any portion of the Collateral if Secured Party deems such transaction reasonably
necessary to preserve the value of its security interest, and to apply the proceeds thereof to payment of the Obligations, to hold such proceeds as part of the Collateral or to use such proceeds to purchase similar items of Collateral that Secured
Party, in its sole discretion, deems necessary or advisable to preserve the value of its security interest; (iii) to notify any person obligated on any security, instrument or other document subject to this Agreement of Secured Party’s rights
hereunder; (iv) to collect by legal proceedings or otherwise all dividends, interest, principal or other sums now or hereafter payable upon or on account of the Collateral; (v) to enter into any extension, reorganization, deposit, merger or
consolidation agreement, or any other agreement relating to or affecting the Collateral or proceeds, and in connection therewith to deposit or surrender control of the Collateral, accept other property in exchange for the Collateral, and do and
perform such acts and things as Secured Party may deem proper, and any money or property received in exchange for the Collateral may be applied to the Obligations or held by Secured Party under this Agreement; (vi) to make any compromise or
settlement Secured Party deems necessary, desirable or proper in respect of the Collateral; (vii) to insure, process and preserve the Collateral; and (viii) to perform any obligation of Debtor under this Agreement, in Debtor’s name or
otherwise. To effect the purposes of this Agreement, or otherwise upon instructions of Debtor, Secured Party may cause the Collateral to be transferred to Secured Party’s name or the name of Secured Party’s nominee. 
  
 7.    Secured Party’s Care and Delivery of
Collateral. Secured Party’s obligation with respect to Collateral in its possession shall be strictly limited to the duty to exercise reasonable care in the custody and preservation of such Collateral, and such duty shall not include any
obligation to ascertain or to initiate any action with respect to or to inform Debtor of maturity dates, conversion, call, or exchange rights, or offers to purchase the Collateral, or any similar matters, notwithstanding the Secured Party’s
knowledge of the same. Secured Party shall have no duty to take any steps necessary to preserve the rights of Debtor against prior parties, or to initiate any action to protect against the possibility of a decline in the market value of the
Collateral. Secured Party shall not be obligated to take any action with respect to the Collateral requested by Debtor unless such request is made in writing, and Secured Party determines, in its sole discretion, that the requested actions would not
unreasonably jeopardize the value of the Collateral as security for the Obligations. Secured Party may at any time deliver the Collateral, or any part thereof, to Debtor, and the receipt thereof by Debtor shall be a complete and full acquittance for
the Collateral and proceeds so delivered, and Secured Party shall thereafter be discharged from any liability or responsibility therefor. 
  
 8.    Representations and Warranties. Debtor represents and warrants to Secured Party as follows: 
  
 (a)    Debtor is a Nevada corporation, duly
incorporated, validly existing and in good standing under the laws of the State of the State of Nevada. Debtor is qualified to do business as a foreign corporation in every state in which Debtor is required to be so qualified. 
  
 (b)    Debtor has all requisite capacity and power to
execute, deliver and perform its obligations under this Agreement. This Agreement has been duly and validly executed and delivered by Debtor, and constitutes a valid and binding obligation of Debtor, enforceable in accordance with its terms.

  
 (c)    Debtor owns the Collateral free
and clear of all liens, claims, encumbrances, security interests or equities, other than the security interest created hereby. 
  
 (d)    Debtor has not sold, transferred, assigned or conveyed the Collateral, or any portion thereof, to any person other than Secured
Party. 
  
 9.    Covenants and Agreements
of Debtor. Debtor covenants and agrees with Secured Party that from the date hereof and until payment and satisfaction in full of each and all of the Obligations, unless Secured Party shall otherwise consent in writing, Debtor will: 

 
 (a)    Duly observe and perform each and every term
and condition of any and all agreements, instruments and documents relating to the Collateral, and diligently protect and enforce its rights under all such agreements. 
  

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 (b)    Give Secured Party ten (10) days prior written notice before changing its
principal residence or place of business or moving its books and records to a location other than that set forth in Section 17 hereof. 
  
 (c)    Not sell, lease, assign, transfer, convey, pledge, hypothecate, mortgage or further encumber any of the Collateral, provided
that Debtor may sell Inventory in the ordinary course of business. 
  
 (d)    Promptly pay or otherwise cause to be discharged any lien, charge, security interest or other encumbrance that may attach to the Collateral, or any portion thereof, other than pursuant to this Agreement.

  
 (e)    Promptly notify Secured Party of
any attachment or other legal process levied against any of the Collateral and any information received by Debtor relating to the Collateral, or to other persons obligated in connection therewith, and of any threatened or filed claims or
proceedings, that might in any way affect or impair Secured Party’s security interest in the Collateral or the rights and remedies of Secured Party with respect thereto. 
  
 (f)    Defend the Collateral against all claims, liens, security interests, demands and other
encumbrances of third parties at any time claiming an interest in the Collateral that is adverse to Secured Party’s interest in the Collateral hereunder. 
  

(g)    Notify Secured Party in the event of any occurrence that may materially or adversely affect the security interest of Secured
Party in the Collateral. 
  
 (h)    At the
request of Secured Party, execute and permit to be filed one or more financing statements, and amendments thereto, under the California Uniform Commercial Code and any other applicable state’s Uniform Commercial Code naming Debtor as debtor and
Secured Party as secured party and indicating therein the types or describing the Collateral. 
  
 (i)    Not, without the prior written consent of Secured Party, execute, file or authorize or permit to be filed in any jurisdiction or with any governmental authority any financing or similar
statement relating to the Collateral, or any portion thereof, in which any person other than Secured Party is named as a secured party thereunder. 
  
 (j)    Reimburse Secured Party upon demand for any costs and fees, including reasonable attorneys’ fees and accountants’
fees and other expenses, incurred in collecting any sums payable by Debtor under any of the Obligations secured hereby, enforcing any term or provision of this Agreement or otherwise in the collection of the Collateral and the preparation and
enforcement of any agreement relating thereto. 
  
 (k)    Upon request of Secured Party, furnish within ten (10) days thereafter to Secured Party or to any proposed assignee of Secured Party, a written statement in form satisfactory to Secured Party, duly acknowledged,
certifying the amount of the principal and interest then owing under the obligations and liabilities set forth in the Note, and stating that no claims, offsets or defenses exist with respect to the Note, this Agreement or any of the Loan Documents
of any nature whatsoever. 
  
 (l)    Execute
and deliver to Secured Party any and all further agreements, instruments, or documents and take any and all such further action as Secured Party, in its sole discretion, may deem necessary or advisable in order to evidence, effectuate, perfect,
protect, maintain, or realize upon Secured Party’s security interest in the Collateral or the priority thereof. 
  
 10.    Events of Default. The occurrence of any of the following shall constitute an “Event of Default” hereunder:

  
 (a)    Failure to make prompt and
punctual payment or performance when due of any of the Obligations, including without limitation, any Event of Default under the Note. 
  

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 (b)    Any representation or warranty herein, in the Note, or in any other instrument
executed by Debtor in connection with its obligations hereunder, proves materially false or misleading in any way. 
  
 (c)    Breach of any covenant or promise contained herein or in any other instrument executed by Debtor in connection with its
obligations hereunder. 
  
 (d)    Debtor
becomes insolvent, generally is not paying its debts as such debts become due, or makes an assignment for the benefit of creditors. 
  
 (e)    Any case is commenced by or against Debtor, under any bankruptcy, reorganization, arrangement, readjustment of debt or
moratorium law or similar statute if, with respect to a case commenced against Debtor, such case is not dismissed within sixty (60) days. 
  
 (f)    Any writ of attachment, garnishment, execution or other legal process is issued against any property of Debtor, if such writ,
garnishment, execution or other process is not fully vacated within sixty (60) days. 
  
 (g)    Debtor seeks, consents to, acquiesces in or fails to cause to be vacated or stayed within sixty (60) days (or vacated within sixty (60) days of any such stay) the appointment of a receiver,
trustee or conservator of all or any substantial portion of Debtor’s property. 
  
 11.    Secured Party’s Remedies. If an Event of Default or Change of Control (as defined in the Note) occurs hereunder, then, Secured Party may, at its option, but is not required to,
do any one or more of the following without demand or notice to Debtor: 
  
 (a)    Declare all of the Obligations immediately due and payable in full, notwithstanding the terms of any other writing or evidence of debt; 
  
 (b)    Transfer the Collateral into Secured Party’s
name or that of its nominee; 
  
 (c)    From
time to time, proceed with the foreclosure of Secured Party’s security interest and sale of the Collateral, or any portion of it, in any manner permitted by law or provided for herein; 
  
 (d)    Take possession of and retain the Collateral in
satisfaction of the Obligations; or 
  
 (e)    Exercise any and all remedies of a secured party under the California Uniform Commercial Code or as otherwise provided by law. 
  
 12.    Application of Proceeds. After the occurrence of an Event of Default, all income and
distributions with respect to the Collateral and all proceeds from any sale of the Collateral pursuant hereto shall be applied as follows: 
  
 (a)    First, in such order as Secured Party shall in its sole discretion determine, (i) to the payment of all costs and expenses
incurred by Secured Party in connection with any sale of the Collateral, including, without limitation, all court costs and the reasonable fees and expenses of counsel for Secured Party in connection therewith; and (ii) the payment of any and all
other costs and expenses paid or incurred by Secured Party in connection with this Agreement or otherwise in connection with the Obligations or the exercise of any right or remedy hereunder; 
  
 (b)    Second, to the payment of interest on the
Obligations; 
  
 (c)    Third, to the payment
or satisfaction of the Obligations; and 
  
 (d)    Fourth, any amounts remaining after the foregoing applications shall be remitted to Debtor or as a court of competent jurisdiction may otherwise direct. 
  

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 13.    Power of Attorney. 
  
 (a)    Debtor does hereby irrevocably make, constitute
and appoint Secured Party or any of its officers or designees its true and lawful attorney-in-fact with full power in the name of Secured Party or Debtor to receive, open and dispose of all mail relating to the Collateral addressed to Debtor
(provided, however, that Secured Party shall provide Debtor with a copy of any mail so received), and to endorse any notes, checks, drafts, money orders or other evidence of payment relating to the Collateral that may come into the possession of
Secured Party, and to do any and all other acts necessary or proper to carry out the intent of this Agreement, and Debtor hereby ratifies and confirms all that Secured Party or its substitutes shall properly do by virtue hereof; 
  
 (b)    Debtor does hereby further irrevocably make,
constitute and appoint Secured Party or any of its officers or designees its true and lawful attorney-in-fact in the name of Secured Party or Debtor, (i) to enforce all Debtor’s rights under and pursuant to all agreements with respect to the
Collateral, all for the sole benefit of Secured Party, and to enter into such other agreements as may be necessary to protect Secured Party’s rights and interest in and to the Collateral; (ii) to enter into and perform such agreements as may be
necessary in order to carry out the terms, covenants and conditions of this Agreement that are required to be observed or performed by Debtor; (iii) to execute such other and further pledges and assignments of the Collateral as Secured Party may
reasonably require for the purpose of protecting, maintaining or enforcing the security interest granted to the Secured Party herein; and (iv) to do any and all other things necessary or proper to carry out the intention of this Agreement; and
Debtor ratifies and confirms all that Secured Party as such attorney-in-fact or its substitutes shall properly do by virtue of this power of attorney; and 
  
 (c)    Each of the foregoing appointments shall be deemed coupled with an interest and irrevocable. 
  
 14.    Private Sale . 
  
 (a)    Debtor recognizes that Secured Party may be
unable to effect a public sale of all or part of the Collateral. Debtor may, at its sole discretion, consent to a private sale even though such sale may be at prices and upon terms less favorable than if the Collateral were sold at public sales.
Debtor agrees that consented private sales will be deemed to have been made in a commercially reasonable manner. 
  
 (b)    Debtor recognizes that a sale, public or private, of the Collateral may not be able to be effected and Secured Party or its
assignee are hereby expressly authorized at their election to retain the Collateral until a sale can be effected. Until such sale, Secured Party or its assignee may elect to hold the Collateral and be treated as the owner thereof, and shall be
entitled to collect all income thereon. 
  
 (c)    The purchaser or purchasers at any public or private sale of the Collateral shall take the Collateral free of any right or equity of redemption in Debtor, which rights and equities Debtor hereby expressly waives.

  
 (d)    Debtor agrees that written notice
mailed to Debtor ten (10) business days prior to the date of public sale consented to by a Secured Party of the Collateral or ten (10) business days prior to the date after which private sale consented to by a Secured Party or any other disposition
of the Collateral consented to by a Secured Party will be made shall constitute reasonable notice for such sales. 
  
 15.    Financing Statements and Payment Directions. To the extent permitted by law, Debtor hereby authorizes Secured Party to
file any amendments to or continuations of any financing statement filed with regard to the Collateral without the signature of Debtor. Debtor further authorizes Secured Party upon an Event of Default to notify any account custodian of the
Collateral that all sums payable to Debtor relating to the Collateral shall be paid directly to Secured Party. 
  
 16.    Termination. Upon satisfaction in full of all of the Obligations, and the satisfaction of all additional costs and
expenses of Secured Party as provided herein, this Agreement shall terminate and Secured Party shall deliver to Debtor, at Debtor’s expense, such of the Collateral as shall not have been sold or otherwise disposed 
  

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 of or applied pursuant to this Agreement; provided that if Secured Party is required to return any amounts received by
Secured Party on account of the Obligations, the security interests provided hereunder shall reattach. 
  
 17.    Notices. Any notice or other communication required or permitted to be given under this Agreement shall be in writing
and sent by United States mail, registered or certified mail, postage prepaid, return receipt requested, and addressed as follows: 
  

	 If to Debtor: 
	 Healthcare Holdings, Inc.  
7610 N. Stemmons Fwy, Suite 500  
Dallas, Texas 75247  
Attention: President

  

	 with a copy to: 
	 Healthcare Holdings, Inc.  
7610 N. Stemmons Fwy, Suite 500  
Dallas, Texas 75247  
Attention: Legal Department

  

	 If to Secured Party: 
	 LTC Properties, Inc. 2  
2917 Pacific Coast Hwy, Suite 350  
Malibu, California 90265  
Attention: Chief Financial
Officer 

  

	 with a copy to: 
	 LTC Properties, Inc.  
22917 Pacific Coast Hwy, Suite 350  
Malibu, California 90265  
Attention: Legal Department

  
 or such other address as either party may
from time to time specify in writing to the other in the manner aforesaid. If personally delivered, such notices or other communications shall be deemed delivered upon delivery. If sent by United States mail, registered or certified mail, postage
prepaid, return receipt requested, such notices or other communications shall be deemed delivered upon delivery or refusal to accept delivery as indicated on the return receipt. 
  
 18.    Survival of Representations. All covenants, agreements or representations and warranties
made herein and in any documents delivered pursuant hereto shall survive the execution hereof. 
  
 19.    Assignments. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party, and all
covenants, promises and agreements by or on behalf of Debtor contained in this Agreement shall bind and inure to the benefit of the successors and assigns of Secured Party and Debtor. 
  
 20.    California Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of California, without regard to conflict of laws principles. 
  
 21.    No Implied Waivers by Secured Party. Neither any failure nor any delay on the part of Secured Party in exercising any
right, power or privilege hereunder shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights, remedies and benefits of Secured Party
herein expressly specified are cumulative and not exclusive of any other rights, remedies or benefits that Secured Party may have at law, in equity, by statute or otherwise. Without limiting the generality of the foregoing, Secured Party shall have
all rights and remedies of a secured party under Division 9 of the California Uniform Commercial Code, as it may be amended or superseded from time to time. 
  
 22.    Modifications and Waivers. 
  

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 (a)    No modification, amendment or waiver of any provision of this Agreement, nor
consent to any departure of Debtor herefrom, shall in any event be effective unless the same shall be in writing and signed by Secured Party, and then such waiver or consent shall be effective only in the specific instance and for the purpose for
which given. 
  
 (b)    No notice or demand
on Debtor in any case shall entitle Debtor to any other or further notice or demand in the same, similar or other circumstances. 
  
 (c)    Debtor hereby waives presentment, notice of dishonor and protest of all instruments included in or evidencing the liability of
Debtor in respect of the Obligations or the Collateral and any and all other notices and demands whatsoever, whether or not relating to such instruments. 
  
 (d)    The Obligations shall not be affected by (i) the failure of Secured Party to assert any claim or demand or to enforce any right
or remedy against Debtor; (ii) any extension or renewal thereof; (iii) any rescission, waiver, amendment or modification of any of the terms or provisions of this Agreement or of any other agreement; or (iv) the release of any collateral held by
Secured Party for the Obligations or any of them. 
  
 23.    Severability. In case any one or more of the provisions contained in this Agreement should be determined by a court of law to be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
  
 24.    Service of Process. 
  
 (a)    Debtor hereby irrevocably submits itself to the jurisdiction of the state courts of the State of California and to the
jurisdiction of the United States District Court for the Central District of California, for the purpose of any suit, action or other proceedings arising out of or based upon this Agreement or the subject matter hereof brought by Secured Party or
its successors or assigns. 
  
 (b)    Debtor
hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above named courts, that its property is exempt or
immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or
by such court. 
  
 (c)    Debtor hereby
waives any right to jury trial and any offsets or counterclaims in any such action, suit or proceeding (other than compulsory counterclaims). 
  
 (d)    Debtor hereby consents to service of process by registered mail at the address to which notices are to be given. Debtor agrees
that its submission to jurisdiction and its consent to service of process by mail is made for the express benefit of Secured Party. 
  
 (e)    Final judgment against Debtor in any such action, suit or proceeding shall be conclusive, and may be enforced in other
jurisdictions (i) by suit, action or proceeding on the judgment, a certified or true copy of which shall be conclusive evidence of the fact and of the amount of any indebtedness or liability of Debtor therein described; or (ii) in any other manner
permitted by applicable law, provided, however, that Secured Party may at its option bring suit, or institute other judicial proceedings against any of Debtor’s assets in any state or federal court of the United States or of any country or
place where such assets may be found. 
  
 25.    Indemnity and Reimbursement of Secured Party. 
  
 (a)    Debtor agrees (i) to indemnify and hold harmless Secured Party, to the fullest extent permitted by law, from and against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) arising out of, resulting from or relating to any of the Collateral, this Agreement or the administration, enforcement, exercise or defense of any right or remedy granted to Secured Party herein; and (ii) to
reimburse Secured Party for all costs and expenses, including legal fees and disbursements, incurred after the date 
  

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 hereof and arising out of, resulting from or relating to any of the Collateral, this Agreement or the administration,
enforcement, exercise or defense of any right or remedy granted to Secured Party herein. The foregoing indemnity includes any reasonable costs incurred by Secured Party in connection with any litigation relating to the Collateral whether or not
Secured Party shall be a party to such litigation, including, but not limited to, the reasonable fees and disbursements of counsel to Secured Party and any out-of-pocket costs incurred by Secured Party in appearing as a witness or in otherwise
complying with legal process served upon it. In no event shall Secured Party be liable to Debtor for any matter or thing in connection with this Agreement other than to account for moneys actually received by it in accordance with the terms hereof.

  
 (b)    If Debtor shall fail to do any act
or thing that it has covenanted to do hereunder or under any of the Loan Documents or any representation of warranty of Debtor to Secured Party shall have been breached, Secured Party may, but shall not be obligated to, do the same or cause it to be
done or remedy any such breach and there shall be added to the Obligations hereunder the cost of such expense incurred by Secured Party in so doing, and any and all amounts expended by Secured Party in taking any such action shall be repayable to it
upon its demand therefor and shall bear interest at the applicable interest rate under the Note from the date such amounts are expended to the date of repayment. 
  
 26.    Captions. The captions in this Agreement are inserted only as a matter of convenience and
for reference and shall not be deemed to define, limit, enlarge, or describe the scope of this Agreement or the relationship of the parties, and shall not affect this Agreement or the construction of any provisions herein. 
  
 27.    Pronouns. Whenever the context so requires,
the masculine shall include the feminine and the neuter, and the singular shall include the plural, and conversely. 
  
 28.    Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which shall together constitute one and the same instrument. 
  
 29.    Joint and Several Obligations. Whenever Debtor comprises one or more persons or entities, the obligations and promises set forth herein shall be joint and several undertakings of each of the persons or
entities executing this Agreement as Debtor, and Secured Party may proceed hereunder against any one or more of said persons or entities without waiving its right to proceed against any of the others. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 9 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  
  

	DEBTOR:
	
	 HEALTHCARE HOLDINGS, INC.
 a Nevada corporation

		
	 By:
	 	 /s/    KIMBERLY DAUGHERTY      

	 Name:
	 	Kimberly Daugherty
	 Its:
	 	Senior Vice President

  

		
	 By:
	 	 /s/    ANDREW KERR    

	 Name:
	 	Andrew Kerr
	 Its:
	 	President and Chief Financial Officer

  
  

	
	SECURED PARTY:
	
	 LTC PROPERTIES, INC.,
 a Maryland corporation

		
	 By:
	 	 /s/    WENDY SIMPSON      

	 Name:
	 	Wendy Simpson
	 Its:
	 	Vice Chairman and Chief Financial Officer

  
  

		
	 By:
	 	 /s/    ALEX CHAVEZ  

	 Name:
	 	Alex Chavez
	 Its:
	 	Sr. Vice President and Treasurer

  

 10Loan Agreement

 Exhibit 10.1 
  
 LOAN AGREEMENT 
  
 LOAN IN THE AMOUNT OF 
  
 NOK 150,000,000.- 
  
 BETWEEN 
  
 TRICO SHIPPING AS 
 (AS BORROWER) 
  
 AND 
 DEN NORSKE BANK ASA 
 (AS BANKS) 
  
 AND 
  
 DEN NORSKE BANK ASA 
 (AS AGENT) 
  
 Wikborg, Rein & Co

 Olav Kyrresgt. 11 
 P.O. Box 1233 Sentrum

 5811 Bergen 
 Norway 
 Telefax 47 55 21 52 01 
 Telephone 47 55 21 52 00 
  

 INDEX 
  

	CLAUSE NO.	 	SUBJECT MATTER	 	PAGE NO.

	   1.    PURPOSE
	  	5
	 1.01. Purpose
	  	5
	 1.02. Nature of the Banks’ obligations
	  	5
		
	   2.    DEFINITIONS
	  	6
		
	   3.    REPRESENTATIONS AND WARRANTIES
	  	10
	 3.01. Representation and warranties
	  	10
	 3.02. Corporate
	  	11
	 3.03. Powers and authority
	  	11
	 3.04. Authorisations
	  	11
	 3.05. No default—litigations
	  	11
	 3.06. Chaser
	  	11
	 3.07. River
	  	12
		
	   4.    CONDITIONS PRECEDENT
	  	12
	 4.01. Documentary conditions precedent
	  	12
		
	   5.    DRAWDOWN
	  	12
	 5.01. Drawdown Notice
	  	12
	 5.02. Representation and warranty
	  	12
	 5.03. Commitment Period
	  	13
	 5.04. Disbursement through the Agent
	  	13
		
	   6.    INTEREST
	  	13
	 6.01. Interest periods
	  	13
	 6.02. Interest payments
	  	13
	 6.03. Default interest
	  	13
	 6.04. Interest Periods in connection with instalments
	  	13
	 6.05. Six-monthly payments
	  	14
	 6.06. Absence of selection
	  	14
	 6.07. Calculation
	  	14
		
	   7.    REPAYMENT
	  	14
	 7.01. Repayment of the Loan
	  	14
	 7.02. Non Banking Day
	  	14
	 7.03. Repayment due to change in shareholding in the Parent
	  	14
		
	   8.    PREPAYMENT
	  	15
	 8.01. Prepayments
	  	15
	 8.02. Inverse order
	  	15
	 8.03. No redraw
	  	15
		
	   9.    PAYMENTS
	  	15
	 9.01. Payments in full
	  	15
	 9.02. Place/account
	  	15
	 9.03. Grossing-up
	  	15
	 9.04. Banks right to set-off
	  	16
		
	 10.    SECURITY
	  	16
	 10.01. Security
	  	16

	 10.02. Security for interest and/or currency management products
	  	16
		
	 11.    CHANGES IN CIRCUMSTANCES
	  	16
	 11.01. Illegality
	  	16
	 11.02. Increased costs
	  	17
	 11.03. Non-availability
	  	17
	 11.04. Market disruption
	  	17
	 11.05. Force majeure
	  	17
		
	 12.    COVENANTS
	  	18
	 12.01. Duration
	  	18
	 12.02. Notification of default
	  	18
	 12.03. Authorisation
	  	18
	 12.04. Financial information
	  	18
	 12.05. Insurances
	  	18
	 12.06. Class
	  	19
	 12.07. Market Value
	  	20
	 12.08. Sale
	  	20
	 12.09. Management
	  	20
	 12.10. Flag
	  	20
	 12.11. ISM Code
	  	20
	 12.12. Loans
	  	21
	 12.13. Dividend
	  	21
	 12.14. Sale of shares
	  	21
	 12.15. Negative pledge
	  	21
	 12.16. Intercompany chartering
	  	22
	 12.17. Compliance Certificate
	  	22
	 12.18. Notification – employment of the Vessel
	  	22
	 12.19. Security in the Vessel's earnings
	  	22
		
	 13.    EVENTS OF DEFAULT
	  	22
	 13.01. Events of Default
	  	22
	 13.02. Non-payment
	  	22
	 13.03. Misrepresentation
	  	22
	 13.04. Breach of obligations
	  	23
	 13.05. Cross-default
	  	23
	 13.06. Material adverse change
	  	23
	 13.07. Admittance of non-payment
	  	23
	 13.08. Insolvency
	  	23
	 13.09. Events in Security Documents
	  	23
	 13.10. Total loss
	  	23
	 13.11. Liens
	  	23
	 13.12. Market value ratio
	  	24
	 13.13. Parent/Trico declaration
	  	24
	 13.14. The Borrower's Value Adjusted Equity/Value Adjusted Assets
	  	24
	 13.15. The Borrower's Working Capital
	  	24
	 13.16. The Borrower's Free Liquidity
	  	24
	 13.17. The Borrower's Funded Debt/ EBITDA
	  	24
	 13.18. Permits
	  	24
	 13.19. Mergers—demergers
	  	24
	 13.20. Non repayment pursuant to Clause 7.03
	  	25

	 13.21. Accelerations
	  	25
		
	 14.    INDEMNITIES
	  	25
	 14.01. Indemnities
	  	25
		
	 15.    THE AGENT AND THE BANKS
	  	26
	 15.01. Appointment and duties of the Agent
	  	26
	 15.02. Banks' directions
	  	26
	 15.03. Responsibility
	  	26
	 15.04. Approval and appraisal
	  	26
	 15.05. Information
	  	26
	 15.06. Default
	  	27
	 15.07. Reimbursement
	  	27
	 15.08. Exoneration
	  	27
	 15.09. Agent relationship
	  	27
	 15.10. Set-off
	  	27
	 15.11. Resignation
	  	28
		
	 16.    REDISTRIBUTION OF PAYMENTS
	  	28
	 16.01. Redistribution of payments
	  	28
		
	 17.    FEES AND EXPENSES
	  	28
	 17.01. Flat fee
	  	28
	 17.02. Agent fee
	  	28
	 17.03. Costs and expenses
	  	28
		
	 18.    AMENDMENTS AND WAIVERS
	  	29
	 18.01. The Banks
	  	29
	 18.02. Waivers
	  	29
		
	 19.    MISCELLANEOUS
	  	29
	 19.01. Partial illegality
	  	29
	 19.02. Security Documents
	  	29
	 19.03. Inconsistency
	  	29
		
	 20.    ASSIGNMENTS
	  	29
	 20.01. Banks' assignment
	  	29
	 20.02. Borrower's assignment
	  	29
		
	 21.    LAW AND JURISDICTION
	  	30
	 21.01. Law
	  	30
	 21.02. Jurisdiction
	  	30
		
	 22.    NOTICES
	  	30
	 22.01. Notices
	  	30

  
 SCHEDULES 

	1	 	FORM OF DRAWDOWN NOTICE 

	2	 	FORM OF RENEWAL NOTICE 

	3	 	CONDITION PRECEDENT DOCUMENTS 

	4	 	LIST OF BANKS AND COMMITMENTS 

	5	 	FORM OF COMPLIANCE CERTIFICATE 

	This	 	Loan Agreement is made the 26 June 2003. 

  
 BETWEEN 
  

	1)	 	TRICO SHIPPING AS 

 (organisation no 976 854 020)

 P.O. Box 85 
 6099
Fosnavåg 
 Telephone No. +47 70 08 99 11 
 Telefax No. +47 70 08 93 27 
 (hereinafter called the “Borrower”) 
  

	2)	 	THE BANKS AND FINANCIAL INSTITUTIONS 

 which names
and addresses are listed in Schedule 4 hereto, 
  
 and 
  

	3)	 	DEN NORSKE BANK ASA 

 P.O. Box 7100 
 5020 Bergen 
 Norway 
 Telephone No. +4755 21 10 00 
 Telefax No.
+4755 21 19 24 
 (as “Agent”) 
  
 1.    PURPOSE 
  
 1.01.    Purpose 
  
 This Agreement sets out the terms and conditions upon and subject to which each Bank will make available to the Borrower a secured loan facility up to the aggregate
maximum principal amount, not exceeding its commitment as specified in Schedule 4 hereto for the purpose of assisting the Borrower in (i) refinancing the Vessels and (ii) general corporate purposes. 
  
 1.02.    Nature of the Banks’ obligations 
  
 The obligations of each Bank under this Agreement are several. Failure of a Bank to carry out
its obligations hereunder shall not relieve any other Bank, the Agent or the Borrower or any of its respective obligations hereunder. No Bank shall be responsible for the obligations of any other Bank or the Agent hereunder. 

 NOW IT IS HEREBY AGREED AS FOLLOWS: 
  
 2.    DEFINITIONS 
  
 In this Agreement, including the Recitals the following words and expressions shall have the meaning set opposite them below: 
  

	 “Agreement” 
	 this agreement entered into between the Borrower, the Banks and the Agent in respect of the Loan. 

  

	 “Assignments of Insurances” 
	 assignment to be executed by the Borrower in favour of the Agent on behalf of the Banks whereby all benefits from the Vessels insurances are
assigned to the Agent on behalf of the Banks, in the terms and form as the Agent on behalf of the Banks may require. 

  

	 “Bank” 
	 pursuant to the definitions of Banks below, each of the banks and financial institutions whose names and addresses appear in Schedule 4 hereto.

  

	 “Banking Day” 
	 a day upon which banks are open for the transaction of business of the nature required by this Agreement. 

  

	 “Banks” 
	 the Banks and financial institutions whose names and addresses appear in Schedule 4 (including any other branch through which any such bank or
financial institution may be acting from time to time) or their successors and any other bank or financial institution to which any one of them may assign some or all of its rights or obligations under this Agreement pursuant to Clause 20.01.

  

	 “Chaser” 
	 the M/V “Northern Chaser” of 2,783 dwt built 1991 registered in the Borrower’s name in the British ship registry with call signal
MFFN 6. 

  

	 “Chaser Deed of Covenants” 
	 a deed of covenants collateral to the Chaser Mortgage, entered or to be entered into between the Borrower the Agent on behalf of the Banks, in
such form and substance as the Agent on behalf of the Banks may require. 

  

	 “Chaser Mortgage” 
	 a first priority mortgage to be executed by the Borrower on the Chaser in the amount of NOK 180,000,000.- in favour of the Agent on behalf of the
Banks, in such form and substance as the Agent on behalf of the Banks may require. 

  

	 “Commitment” 
	 the amount set opposite each of the Banks in Schedule 4 hereto. 

	 “Co-ordination Agreement” 
	 an agreement entered into or to be entered into between the Borrower, the Banks and the Syndicate regulating the rights and priorities in respect
of the Factoring Agreement and the Existing Factoring Agreement. 

  

	 “Commitment Period” 
	 the period commencing at (            ) and expiring the 30 June 2003, or such later
date as all the Banks in their sole discretion may agree. 

  

	 “Contribution” 
	 means as to each of the Banks, the principal sum (not exceeding the amounts specified against the name of such Bank in Schedule 4) which such Bank
is obliged to contribute to the Loan or (as the context requires) the portion of such principal sum advanced by the relevant Bank and outstanding at any relevant time. 

  

	 “Declaration of Pledge” 
	 a statement to be executed by the Borrower in favour of the Agent on behalf of the Banks in respect of the River Mortgage and the Factoring
Agreement, in the terms and form as the Agent on behalf of the Banks may require. 

  

	 “Drawdown Date” 
	 the date on which the Loan is advanced to the Borrower in accordance with Clause 5 of this Agreement. 

  

	 “Drawdown Notice” 
	 a notice in the terms and form as set out in Schedule 1 hereto. 

  

	 “EBITDA” 
	 Operating income plus depreciation and amortisation determined in accordance with NORGAAP. 

  

	 “Event of Default” 
	 any of the events or circumstances described in Clause 13. 

  

	 “Existing Factoring Agreement” 
	 the factoring agreement registered 29 April 2002 between the Borrower and Den norske Bank ASA as agent for the Syndicate.

  

	 “Facility” 
	 the revolving credit facility in the equivalent amount of NOK 800,000,000.-, granted by the Syndicate pursuant to the loan agreement dated 24
April 2002. 

  

	 “Factoring Agreement” 
	 an agreement by which the Borrower pledges to the Agent on behalf of the Banks as security for the Loan, all claims arising from the

 Borrower’s business operation, in the terms and form as the Banks may require. 
  

	 “Free Liquidity” 
	 the sum of available cash, cash equivalents (pledged cash reserves not to be included) and undrawn freely available portion of the Facility.

  

	 “Funded Debt” 
	 the aggregate of (i) the total indebtedness for borrowed money including the outstanding principal amount of any bond, note, debenture, loan stock
or other similar instrument issued and (ii) all capitalized lease obligations in accordance with Norwegian Gaap. 

  

	 “Interest Payment Date” 
	 the last Banking Day of each Interest Period. 

  

	 “Interest Period” 
	 each successive period of (i) one (1) (limited to three times a year without consent from the Banks, such consent not to be unreasonable
withheld), three (3) or six (6) months, or (ii) such other period as may be requested by the Borrower and agreed by the Banks (subject to availability of such funds to the Banks), provided that if an Interest Period would end on a day which is not a
Banking Day, it shall end on the following Banking Day, unless such day falls in the next calendar month, in which case the Interest Period shall end on the preceding Banking Day. 

  

	 “Loan” 
	 an amount not exceeding NOK 150,000,000.- to be lent by the Banks to the Borrower or the balance thereof outstanding at any relevant time
hereunder. 

  

	 “Loan Period” 
	 the period commencing on the Drawdown Date and ending on the day the Loan and all amounts outstanding under this Agreement and the Security
Documents have been repaid in full to the Banks. 

  

	 “Manager” 
	 Trico Supply ASA, (organisation no 976 853 938), P.O. Box 85, 6099 Fosnavåg or Trico 

  

	 “Management Agreements” 
	 management agreement between the Manager and the Borrower dated 5 June 2001. 

  

	 “Margin” 
	 one per cent (1,00%) per annum. 

  

	 “Market Value” 
	 the fair market value of the Vessels determined by calculating the arithmetic mean of two independent valuations of the Vessels obtained from two
independent and well reputed sale and purchase shipbrokers appointed by the Agent at the Borrower’s cost. Such valuations to be made with or without physical inspection of the 

 Vessel (as the Agent may require), on the basis of a sale for prompt delivery for cash at arm’s
length on normal commercial terms as between a willing buyer and seller. 
  

	 “Mortgages” 
	 the Chaser Mortgage and the River Mortgage. 

  

	 “NIBOR” 
	 for each Interest Period the rate determined by the Banks two (2) Banking Days before the beginning of that Interest Period being the annual rate
of interest for NOK offered to the Banks through the Interbank Swap Market as appearing on the Reuter Screen Page NIBR at 12 noon Norwegian time, for a period equal to that Interest Period and in an amount equal to the outstanding amount of the Loan
at the beginning of that Interest Period. 

  

	 “NOK” 
	 the legal currency at any relevant time hereunder of the Kingdom of Norway. 

  

	 “Parent” 
	 Trico Supply ASA (organisation no 976 853 938), P.O. Box 85, 6099 Fosnavåg. 

  

	 “Parent and Trico Declaration” 
	 a declaration executed by the Parent and Trico in favour of the Agent on behalf of the Banks whereby the Parent and Trico undertakes that (i) all
loans (included but not limited to the Parent Loan) granted or to be granted by the Parent and/or Trico or associated companies to the Borrower shall, after an Event of Default has occurred, in all respect be subordinated to the Loan until such
default is cured or remedied, (ii) the Parent will not merge or consolidate with any other entity without the prior written consent of the Banks (iii) the Parent will not pay any dividends or other payments to its shareholders if the Parent is in
breach of any covenants (iv) maintain the Borrower as a wholly owned subsidiary and (v) the Parent will not receive any dividends or distributions from the Borrower. 

  

	 “Parent Loan” 
	 a loan granted by the Parent to the Borrower pursuant to an amendment dated 18 July 2001 under which the outstanding amount at the date hereof is
NOK 212,159,147.-. 

  

	 “Renewal Notice” 
	 a notice in the terms and form as set out in Schedule 2 hereto. 

  

	 “Repayment Date” 
	 any date on which an instalment is payable pursuant to Clause 7 of this Agreement. 

  

	 “River” 
	 the M/V “Northern River” of 4,400 dwt built 1998 registered in the Borrower’s name in the Norwegian International Ship Register
with call signalLJBY 3. 

	 “River Mortgage” 
	 a first priority mortgage to be executed by the Borrower on the River in the amount of NOK 180,000,000.-in favour of the Agent on behalf of the
Banks, in such form and substance as the Agent on behalf of the Banks may require. 

  

	 “Security Documents” 
	 the documents specified in clause 10.01 and the documents at any time executed as security for the Loan. 

  

	 “Total Loss” 
	 (i)       actual or constructive or compromised or arranged total loss of any of the Vessels;
or 

  

	 	(ii)	 	requisition for title or other compulsory acquisition of any of the Vessels (otherwise than by requisition for hire); or 

  

	 	(iii)	 	capture, arrest or confiscation of any of the Vessels by any government unless such Vessel is released and restored to the Borrower from such capture, arrest or confiscation within
one (1) month after the occurrence thereof. 

  

	 “Trico” 
	 Trico Marine Services Inc. 

  

	 “USD, $ and Dollars” 
	 the legal currency at any relevant time hereunder of the United States of America. 

  

	 “Value Adjusted Equity” 
	 Value Adjusted Total Assets less total liabilities outstanding. Newbuilding contracts and liabilities and financial leases and bareboat
arrangements are to be included in the calculation. 

  

	 “Value Adjusted Total Assets” 
	 the market value of all assets owned or leased. Vessels to be valuated pursuant to the principles described under the Market Value.

  

	 “Vessels” 
	 Chaser and River. 

  

	 “Working Capital” 
	 at the date of calculation the current assets less current liabilities on the basis of Norwegian GAAP. Next year’s instalment on long term
debt is not to be included in current liabilities. 

  
 3.    REPRESENTATIONS AND WARRANTIES 
  
 3.01.    Representation and warranties 
  
 The Borrower makes the representations and warranties set out in this Clause 3 to the Agent and each Bank. 

 3.02.    Corporate 
  
 The Borrower is a duly constituted and properly incorporated company with limited liability under Norwegian law, and with a share capital of
NOK 244,949,185.- and is wholly owned by the Parent. 
  
 3.03.    Powers and authority 
  
 All
corporate actions required on the part of the Borrower and its respective directors and officers have been taken in order to authorise this Agreement and the Security Documents and the execution and performance thereof in accordance with the laws of
Norway and with its own constitution, and this Agreement and the Security Documents have been validly executed, and are binding upon the Borrower and enforceable against it in accordance with its terms. 
  
 3.04.    Authorisations 
  
 All approvals required from any government, tax, monetary or other authority to enable the
Borrower to make this Agreement and to borrow and repay the Loan and to pay interest thereon without deduction or withholding of any taxes or other money have been obtained and are in full force and effect. 
  
 3.05.    No default—litigations 
  
 The making, execution and delivery of this Agreement and the Security Documents and the
performance thereunder will not infringe any other agreement to which the Borrower is a party nor is it a subject of any actual, pending or threatened legal proceedings either of which has or may have a material adverse effect on its financial
condition. 
  
 3.06.    Chaser 
  
 Chaser will, upon the Drawdown Date, be: 
  

	(i)	 	in the absolute and (save as the Chaser Mortgage) unencumbered ownership of the Borrower. 

  

	(ii)	 	registered in the name of the Borrower in the British Ship Register. 

  

	(iii)	 	operationally seaworthy and in every way fit for service and classed with the highest class of Det Norske Veritas or equivalent classification society acceptable to the Banks.

  

	(iv)	 	free of all requirements and overdue recommendations of said classification society. 

  

	(v)	 	insured in accordance with the provisions of Clause 12.05 of this Agreement. 

 3.07.    River 
  
 River will, upon the Drawdown Date, be: 
  

	(i)	 	in the absolute and (save as the River Mortgage) unencumbered ownership of the Borrower. 

  

	(ii)	 	registered in the name of the Borrower in the Norwegian International Ship Register. 

  

	(iii)	 	operationally seaworthy and in every way fit for service and classed with the highest class of Det Norske Veritas or equivalent classification society acceptable to the Banks.

  

	(iv)	 	free of all requirements and overdue recommendations of said classification society. 

  

	(v)	 	insured in accordance with the provisions of Clause 12.05 of this Agreement. 

  

4.    CONDITIONS PRECEDENT 
  
 4.01.    Documentary conditions precedent 
  
 The several obligation of each Bank to make their respective Contribution of the Loan available hereunder shall be subject to the condition that the Agent on behalf of
the Banks has received the documents and evidence set out in Schedule 3 in a form satisfactory to the Agent and its legal advisors. 
  
 5.    DRAWDOWN 
  
 5.01.    Drawdown Notice 
  
 Subject to Clause 4 above and that no Event of Default has occurred, the Borrower will draw down the Loan in one amount being within the Commitment Period by serving to
the Agent on behalf of the Banks the Drawdown Notice at 10.00 a.m. (Norwegian time) not less than three (3) Banking Days prior to the Drawdown Date which, once received by the Agent, shall be irrevocable. 
  
 5.02.    Representation and warranty 
  
 The Drawdown Notice shall constitute a representation and warranty to the effect that, on the
date of that notice, the representations and warranties in Clause 3 remain true and correct, that the conditions specified in Clause 4 have been fully performed and that no Event of Default has occurred. 

 5.03.    Commitment Period 
  
 To the extent the Loan has not been drawn within the Commitment Period, the Banks commitment to advance the Loan shall terminate and the
Loan shall not be available for drawing. 
  
 5.04.    Disbursement through the Agent 
  
 Forthwith upon receipt by the Agent of a duly completed Drawdown Notice in respect of the Loan, the Agent shall give notice thereof to each Bank, and each Bank hereby undertakes, subject to the terms of this Agreement to make available
through the Agent to the Borrower on the date specified in such notice their respective Contributions. 
  
 The Contribution shall be made available to the Borrower through the Agent in funds which are for same day settlement. 
  
 6.    INTEREST 
  
 6.01.    Interest periods 
  
 The Borrower may, by serving the Renewal Notice hereto to the Agent on behalf of the Banks not later than 10 a.m. (Norwegian time) four (4) Banking Days before the
beginning of each Interest Period, specify the duration of the commencing Interest Period (not being the first Interest Period, which is being selected in the Drawdown Notice). 
  
 6.02.    Interest payments 
  
 On each Interest Payment Date the Borrower shall pay to the Agent on behalf of the Banks interest for the Advance for that Interest Period
at the rate determined by the Agent after consultation with the Banks as being the aggregate of (i) the Margin and (ii) Nibor for such Interest Period. 
  
 6.03.    Default interest 
  
 In the event of the Borrower not making payment on the due date of any sums due under this Agreement, the Borrower shall pay interest on such sums from the due date of
such default up to the date of actual payment at a rate to be determined by the Banks to be the aggregate of two (2) percent per annum and the Margin above the documented costs to the Banks in financing such sums for such periods as the Banks shall
determine. Such interest to be payable promptly on demand. 
  
 6.04.    Interest Periods in connection with instalments 
  
 The Borrower shall for an amount equivalent to a relevant forthcoming instalment pursuant to Clause 7 of this Agreement, select an Interest Period which expires on the relevant 

 Repayment Date, for such amount and for this purpose alone the Borrower shall be entitled to select Interest Periods of
different lengths in relation to the Loan. 
  
 6.05.    Six-monthly payments 
  
 If the
Borrower selects an Interest Period of more than six (6) months (after approval of the Banks), interest accruing during such period, shall be paid every six months in arrears and at the Interest Payment Date. 
  
 6.06.    Absence of selection 
  
 If the Borrower fails to specify the duration of an Interest Period in accordance with the
provisions of Clause 6.01, the Interest Period shall have a duration of six (6) months. 
  
 6.07.    Calculation 
  
 All interest shall be
calculated on the actual number of days elapsed and on the basis of a 360-day year. 
  
 7.    REPAYMENT 
  
 7.01.    Repayment of the Loan 
  
 Without
prejudice to the Banks’ rights pursuant to Clause 13 of this Agreement, the Loan shall be repaid as follows: 
  

	 Instalment

	  	 Repayment Dates

	  	Amount in
NOK

	  	Balance in
NOK

	 1
	  	30 June 2004	  	7,500,000.-	  	142,500,000.-
	 2
	  	31 December 2004	  	7,500,000.-	  	135,000,000.-
	 3
	  	30 June 2005	  	7,500,000.-	  	127,500,000.-
	 4
	  	31 December 2005	  	7,500,000.-	  	120,000,000.-
	 5
	  	30 June 2006	  	7,500,000.-	  	112,500,000.-
	 6 (Balloon)
	  	30 June 2006	  	112,500,000.-	  	0.-

  
 7.02.    Non
Banking Day 
  
 If payment of an instalment pursuant to Clause 7.01 is going
to be made on a day which is not at Banking Day, payment of such instalment shall be made on the following Banking Day, unless such day falls in the next calendar month in which case the payment of such instalment shall be made on the preceding
Banking Day. 
  
 7.03.    Repayment due to change in
shareholding in the Parent 
  
 The Banks shall have the right to demand the
Loan to be repaid in full in one (1) amount if any shareholder in the Parent other than Trico, including subsidiaries owns and/or controls fifty per cent (50 %) or more of the voting shares in the 

 Parent. Repayment to be made at the latest six (6) months after such demand has been made by the Banks. 
  
 8.    PREPAYMENT 
  
 8.01.    Prepayments 
  
 The Borrower shall be entitled to prepay the Loan without penalty in whole or in part on the
last day of any Interest Period, by giving the Agent on behalf of the Banks (unless otherwise approved by the Banks) not less than four (4) Banking Days irrevocable notice prior to the end of the relevant Interest Period, provided that any amount
prepaid being NOK 7,500,000.- or a multiple thereof. 
  
 8.02.    Inverse order 
  
 Any amount prepaid
pursuant to Clause 8.01 shall be applied as payment of the instalment(s) in inverse order of maturity. 
  
 8.03.    No redraw 
  
 Any amount prepaid pursuant to Clause 8.01 may not be drawn again. 
  
 9.    PAYMENTS 
  
 9.01.    Payments in full 
  
 All payments to
be made by the Borrower under this Agreement or the Security Documents shall be made to the Agent on behalf of the Banks in full, without any set-off or counterclaim whatsoever and, subject as provided in Clause 9.03, free and clear of any
deductions or withholdings. 
  
 9.02.    Place/account

  
 Payment shall be made to such account and bank as the Agent on behalf of
the Banks may from time to time advise to the Borrower. 
  
 9.03.    Grossing-up 
  
 If the Borrower at
any time are required by law, regulation or regulatory requirement to deduct or withhold any taxes or other amounts from any payments under this Agreement to any of the Banks and/or the Security Documents, then the gross amount payable by the
Borrower shall be increased by such amount as will after such deductions or withholdings be equal to the actual amount which would have been received if no such deductions or withholdings were required, and the Borrower shall indemnify the Banks
against any losses or 

 costs incurred by the Banks by reason of any failure by the Borrower to compensate for any such deduction or withholding.

  
 9.04.    Banks right to set-off 
  
 Following the occurrence of an Event of Default, the Agent (acting on its own behalf and on
behalf of the Banks) and each of the Banks individually (acting on its own behalf and on behalf of the Agent and the other Banks) shall to the extent permitted by relevant law, have a separate right of set-off in respect of any credit balance, in
any currency, on any account the Borrower might have with the Agent and each of the Banks individually (branches included) against any sum due to the Agent and the Banks hereunder. 
  
 10.    SECURITY 
  
 10.01.    Security 
  
 The Loan together with all unpaid interest, default interest, commissions, charges, expenses and any derived liability whatsoever of the Borrower towards the Banks in
connection therewith shall be secured by: 
  

	(i)	 	the Mortgages, and 

  

	(ii)	 	the Chaser Deed of Covenants, and 

  

	(iii)	 	the Assignments of Insurances, and 

  

	(iv)	 	the Factoring Agreement, and 

  

	(v)	 	the Declaration of Pledge, and 

  

	(vi)	 	the Co-ordination Agreement. 

  
 10.02.    Security for interest and/or currency management products 
  
 The Security Documents shall also secure the Borrower’s liabilities and obligations in respect of any interest products related to the Loan the Borrower may enter
into with the Agent provided however that the security for such liabilities and obligations in all respect shall be subordinated to the security for the Loan. 
  

11.    CHANGES IN CIRCUMSTANCES 
  
 11.01.    Illegality 
  
 If it becomes illegal under any law applying to the Banks or any of them to make or maintain the Loan, then the Banks’ commitment to make available their
Contribution will end, and if any amount has been advanced, the Borrower shall repay the Loan (or the amount outstanding) on the last day of the then current Interest Period. Under such circumstances the 

 Agent in co-operation with the relevant Bank or Banks shall endeavour to fund the Loan from other legal sources.

  
 11.02.    Increased costs 
  
 If, as a result of any change in any applicable law or of any directive of any central bank
or monetary authority (whether or not having the force of law), the cost to any of the Banks of making or maintaining the Loan is increased, then the Borrower shall pay to the Agent on behalf of such Bank and/or Banks on receipt of their written
notice specifying the change and the increased cost incurred by the Bank and/or Banks the amount of any Contribution the Loan and the amount such increased cost. In such event, the Borrower may repay such Bank’s and/or Banks’ Contribution
(or any amount outstanding) on the last day of the then current Interest Period by paying such Bank’s and/or Banks’ Contribution and the amount of any increased costs and all interest accrued to that day. 
  
 11.03.    Non-availability 
  
 If NOK will not be available to the Banks in the Interbank Swap Market for a relevant
Interest Period, then the Banks and the Borrower shall agree on an alternative interest rate and an alternative Interest Period to be substituted for those which would otherwise have applied under this Agreement, and any such interest rate or
Interest Period agreed within thirty (30) days from the end of the last preceding Interest Period or Drawdown Date (as applicable) shall be retroactive to such end of the last preceding Interest Period or Drawdown Date. If no agreement is reached
within thirty (30) days then the Borrower will repay the Loan on the thirtieth day together with such amount as shall be certified by the Banks as being the cost to the Banks’ of funding the Loan during those thirty (30) days plus the Margin.

  
 11.04.    Market disruption 
  
 If the Banks by reason of circumstances affecting the Interbank Swap Market is unable to
obtain NOK in the Interbank Swap Market and accordingly is not able to continue the Loan, the Agent on behalf of the Banks shall give notice of such determination to the Borrower, requiring the Borrower to repay to the Agent on behalf of the Banks
the Loan on the last day of the then current Interest Period and all sums due by the Borrower to the Agent on behalf of the Banks pursuant to this Agreement and the Security Documents. 
  
 11.05.    Force majeure 
  

The Banks shall not be liable for any failure to perform the whole or any part of this Agreement resulting directly or indirectly from action or inaction or purported
action of any government or governmental or local authority, or any strike, lockout, boycott and blockade effected by, or upon the Banks or its employees. 

 12.    COVENANTS 
  
 12.01.    Duration 
  
 The Borrower agrees that the covenants in this Clause 12 remains in full force and effect until the full and final payment of all indebtedness owing under or secured by
this Agreement and the Security Documents. 
  
 12.02.    Notification of default 
  
 The
Borrower will give prompt written notice to the Agent on behalf of the Banks of the following: 
  

	(i)	 	any Events of Default or any event which with the lapse of time will constitute an Event of Default under the terms of this Agreement and the Security Documents forthwith upon
becoming aware thereof. 

  

	(ii)	 	any occurrence of which it becomes aware which might adversely affect its ability to perform its obligations under this Agreement and the Security Documents.

  
 12.03.    Authorisation 

 
 The Borrower will maintain in full force and effect all government, tax, monetary and
other approvals required to enable each of the Borrower to maintain its corporate status, to continue to carry on its business and affairs and to repay the Loan and to pay interest thereon without deductions or withholdings of any taxes or other
moneys. 
  
 12.04.    Financial information 

 
 The Borrower will furnish the Agent on behalf of the Banks with the following: 

 

	(i)	 	within 120 days after the close of each financial year, two copies confirmed by its auditor (who shall be a government approved auditor (“Statsautorisert Revisor”)) of the
audited balance sheets of the Borrower as of the close of each financial year and audited statement(s) of profit and loss and surplus of the Borrower. 

  

	(ii)	 	yearly cash flow projections specifying major assumptions for the Borrower. 

  

	(iii)	 	periodical (at least semi-annual) unaudited profit- and loss account within 60 days after expiry of each relevant period. 

  

	(iv)	 	such financial and other information concerning the Borrower and its affairs and operations as the Banks may from time to time reasonably require. 

  
 12.05.    Insurances 
  
 The Borrower will, 

	a)	 	if not otherwise agreed with the Banks, insure and keep the Vessels satisfactorily insured in the reasonable opinion of the Banks at the Borrower’s expense against

  

	 	(i)	 	Hull & Machinery Hull Interest and other usual marine risks 

  

	 	(ii)	 	war risks 

  

	 	(iii)	 	full protection and indemnity risks, and 

  

	 	(iv)	 	such other interest and perils as the Banks shall reasonably require, and which have become customary and generally applicable in respect of supply vessels.

  
 the insurance specified in (i) and (ii) above
shall in aggregate be for at least one hundred and twenty (120) percent of the Loan, provided however that the Vessels shall be insured for the market value and that the Hull & Machinery insurance of the Vessels shall be at least equal to the
Loan. 
  

	b)	 	not employ any of the Vessels or cause any of the Vessels to be employed otherwise than in conformity with the terms of the instruments of insurance aforesaid (including any
warranties expressed or implied therein) without first obtaining the consent to such employment of the insurers and complying with such requirements as to extra premium or otherwise as the insurers may prescribe. 

  

	c)	 	if the Vessels or any of them are being insured for all or any of the insurances specified in Clause 12.05 a) otherwise than in conformity with the Norwegian Marine Insurance Plan
of 1996, enter into an assignment with the Banks, by which all the insurance proceeds in respect of the Vessels are assigned to the Banks, and to advise the Banks in writing about the intention to enter into such insurance agreement thirty (30)
Banking Days before the expiry of the current insurance arrangement. 

  

	d)	 	if any of the insurances referred to in a) above form part of a fleet cover, procure that the insurers shall undertake to the Agent that they shall neither set off against any
claims in respect of the Vessels any premiums due in respect of other Vessels under such fleet cover or any premium 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 insurances, and shall undertake to issue a separate policy in respect of the Vessels if and when so requested by the Agent. 

  
 12.06.    Class 
  

	a)	 	The Borrower will maintain each of the Vessels classed as described in Clause 3.06 (iii) and Clause 3.07 (iii). 

  

	b)	 	The Borrower will not change classification society of any of the Vessels without the prior written consent of the Agent on behalf of the Banks. 

 12.07.    Market Value 
  

	a)	 	The Market Value of the Vessels shall be determined once a year or upon the reasonable request of the Banks maximum twice a year at the expense of the Borrower. In addition the
Banks shall at any time during the Loan Period have the right, for their own account, to require separate valuation from recognised shipbrokers. 

  

	b)	 	If the aggregate Market Value of the Vessels is less than 135 per cent of the Loan in throughout the Loan Period, either make a prepayment of the Loan, or provide the Agent on
behalf of the Banks with such additional security, in a form and substance satisfactory to the Banks, required to restore the aforesaid ratio. 

  
 12.08.    Sale 
  

	a)	 	If one of the Vessels is sold or declared a Total Loss or in the process of being sold the Borrower will immediately inform the Agent about such sale. The Borrower will if requested
by the Agent on behalf of the Banks present fresh valuations pursuant to Clause 12.07 of the Vessels. The Borrower will prepay the Loan in connection with such sale with a percentage equal to the Market Value of the Vessel being sold divided with
the Market Value for the Vessels, provided however that if the Borrower’s financial covenants are not met after such deduction the Borrower will further prepay the Loan in order to comply with all financial covenants. 

 

	b)	 	If one of the Vessels is sold pursuant to Clause 12.08 above, the Borrower will not sell the remaining Vessel without the prior written consent of the Banks.

  
 12.09.    Management 
  
 The Borrower will not make any changes in the Management Agreement or enter into any other
agreements concerning management and/or operation of any of the Vessels with companies outside “Trico-group” without the prior written consent of the Banks. 
  
 12.10.    Flag 
  
 The Borrower will not change flag or ship registry of any of the Vessels or allow any of the Vessels to be dually registered without the prior written consent of the
Banks. 
  
 12.11.    ISM Code 
  

	a)	 	The Borrower will comply, and/or procure that the Manager (or any manager) of the Vessels will comply, with the International Safety Management Code for the Safe Operation of Ships
and for Pollution Prevention adopted by the International Maritime Organisation (as the same may be amended from time to time “the ISM Code”) or any replacement of the ISM Code and, without prejudice to the generality of the foregoing, at
all times - 

	 	(i)	 	hold, or procure that the Manager (or any manager) of the Vessels holds, a valid Document of Compliance duly issued to the Borrower or any manager (as the case may be) pursuant to
the ISM Code; 

  

	 	(ii)	 	provide the Agent on behalf of the Banks with copies of any such Document of Compliance and Safety Management Certificate as soon as the same are issued; 

 

	 	(iii)	 	keep, or procure that there is kept, on board the Vessels a copy of any such Document of Compliance and the original of any such Safety Management Certificate; and

  

	 	(iv)	 	inform the Agent on behalf of the Banks immediately should the Document of compliance and/or Safety Management Certificate be cancelled, rescinded, suspended or amended in any
material way. 

  

	b)	 	comply with the requirements of the IMO International Safety Management Code and to hold a valid Document of Compliance and ensure that the Vessels are in possession of a valid
Safety Management Certificate. 

  
 12.12.    Loans 
  

	a)	 	Not obtain any loans from other than Trico and/or direct or indirect subsidiaries of Trico. 

  

	b)	 	Not make any payments on loans (hereunder but not limited to the Parent Loan) granted by companies in the same company-group as the Borrower after an Event of Default has occurred.

  
 12.13.    Dividend 
  
 The Borrower will not after an Event of Default has occurred pay any dividends or make any
distributions to its shareholders / other without the prior written consent of the Banks and not make any such payment if such payment may result in an Event of Default. 
  
 12.14.    Sale of shares 
  

The Borrower will not consent to any transfer of shares without the prior written consent of the Banks. 
  
 12.15.    Negative pledge 
  
 The Borrower will not further mortgage the Vessel (save as the Mortgage) and/or the Vessel’s earnings, without the prior written
consent of the Banks. 

 12.16.    Intercompany chartering 
  
 Procure that all agreements regarding sale of vessels and/or charter arrangements to Trico
including subsidiaries will be made on market terms. 
  
 12.17.    Compliance Certificate 
  
 The
Borrower will send to the Agent the Compliance Certificate (in form of Schedule 5 hereto) duly completed with necessary information quarterly within the end of January, April, July and October each year. 
  
 12.18.    Notification – employment of the Vessel 

 
 The Borrower will notify the Agent on behalf of the Banks if any of the Vessels is fixed
on contracts/charterparties with a duration of six (6) months or more. 
  
 12.19.    Security in the Vessel’s earnings 
  
 If any of the Vessels is employed on a contract or under a charterparty exceeding 6 months, the Borrower will at any time in the Loan Period if so requested by the Agent on behalf of the Banks enter into an assignment or pledge whereby all
money payable under such charterparty/contracts assigned or pledged to the Agent on behalf of the Banks. 
  
 13.    EVENTS OF DEFAULT 
  
 13.01.    Events of Default 
  
 Each of the
events set out in Clause 13.02 to 13.20 (inclusive) is an Event of Default (whether or not caused by any reason whatsoever outside the control of the Borrower or any other person). 
  
 13.02.    Non-payment 
  
 The Borrower fails to pay any sum which shall become due hereunder and such default shall continue for a period of three (3) Banking Days or more without remedy.

  
 13.03.    Misrepresentation 
  
 Any representation or warranty made by the Borrower, or any information or documents
delivered by the Borrower to the Banks, shall be shown to have been wrong or misleading in a material respect when made or given or would if given or made at any time after the date of this Agreement by reference to the fact subsisting at the time
be incorrect or untrue in any material respect. 

 13.04.    Breach of obligations 
  
 The Borrower fails (in the reasonable opinion of the Banks) to perform any obligation (including without limitation Clause 12 in this
Agreement) in whole or in part contained in this Agreement and/or the Security Documents. 
  
 13.05.    Cross-default 
  
 An event occurs which constitutes or with the passing of time or the giving of notice or both, would constitute an event of default under any other agreement entered into by the Borrower and whose breach would in the opinion of the Banks
have a material adverse effect on the Borrower’s ability to fulfil its obligations hereunder. 
  
 13.06.    Material adverse change 
  
 Any other situation occurs which in the reasonable opinion of the Banks will in a material way result in the Borrower’s reduced ability to fulfil its obligations under this Agreement as they fall due.

  
 13.07.    Admittance of non-payment 
  
 The Borrower suspends payments of their debts or are unable to or admit their inability to
pay their debts as they fall due. 
  
 13.08.    Insolvency

  
 The Borrower proposes or enters into a composition or other arrangement
for the benefit of their creditors generally (Akkord og gjelds for handling) or are found bankrupt or insolvent (konkurs) or any order is made by any competent court or resolution passed by the Borrower for the winding up or dissolution of the
Borrower. 
  
 13.09.    Events in Security Documents

  
 Any of the events of default specified in any of the Security Documents
arise or occur. 
  
 13.10.    Total loss 
  
 Any of the Vessels becomes a total loss or a constructive or agreed total loss. 

 
 13.11.    Liens 
  
 Any of the Vessels is captured, arrested or confiscated unless such Vessel is released within
thirty (30) days after such occurrence. 

 13.12.    Market value ratio 
  
 The aggregate market value (charterfree) of the Vessels valuated in accordance with Clause 12.07 at any time during the Loan Period is less
than one hundred and thirty five per cent (135 %) of the aggregate of the Loan provided however that the Borrower under such circumstances shall be entitled to grant additional securities acceptable to the Banks. 
  
 13.13.    Parent/Trico declaration 
  
 Any of the Parent or Trico is in default under the Parent’s Declaration. 
  
 13.14.    The Borrower’s Value Adjusted Equity/Value Adjusted
Assets 
  
 The Borrower (on a consolidated basis) has Value Adjusted Equity of
less than twenty five per cent (25 %) of the Value Adjusted Assets. 
  
 13.15.    The Borrower’s Working Capital 
  
 The Borrower (on a consolidated basis) has a negative Working Capital. 
  
 13.16.    The Borrower’s Free Liquidity 
  
 The Borrower (on a consolidated basis) has a Free Liquidity available to the Borrower (including undrawn portion of any drawing facility) at any time in the Loan Period of less than NOK 80,000,000.-. 
  
 13.17.    The Borrower’s Funded Debt/ EBITDA 
  
 The Borrower (on a consolidated basis) has a Funded Debt (Parent Loan excluded) to EBITDA
ratio exceeding 5. This ratio to be tested every quarter on a revolving basis (last 4 quarters) and pursuant to Clause 12.17. 
  
 13.18.    Permits 
  
 Any licence, consent, permission or approval required in order to enforce, complete or perform this Agreement and/or the Security Documents is revoked, terminated or
modified in a manner reasonable unacceptable to the Agent. 
  
 13.19.    Mergers—demergers 
  
 The
Borrower effects any demerger or merger without the prior written consent of the Agent on behalf of the Banks. 

 13.20.    Non repayment pursuant to Clause 7.03 
  
 The Borrower has not repaid the Loan within six (6) months after such demand has been made by
the Banks as provided for in Clause 7.03. 
  
 13.21.    Accelerations 
  
 The Agent may
after consultation with the Banks, and on the instruction of the Banks shall, without prejudice to any of the Banks’ other rights, at any time after the happening of an Event of Default by notice to the Borrower declare that 
  

	a)	 	the obligation of the Banks to make the Loan available shall be terminated forthwith and/or 

  

	b)	 	the Loan and all interest and cost accrued and all other sums payable under this Agreement and the Security Documents have become due and payable whereupon the same shall
immediately or in accordance with such notice become due. 

  
 14.    INDEMNITIES 
  
 14.01.    Indemnities 
  
 The Borrower shall
on demand indemnify each Bank and the Agent—without prejudice to any of their other rights under this Agreement—against any and all costs, expenses, outgoings, disagio and loss of Margin (the latter limited to the current Interest Period)
which such Bank or the Agent shall certify as sustained or incurred by it as a consequence of 
  

	(i)	 	any default in payment by the Borrower of any sum under this Agreement when due, or 

  

	(ii)	 	the occurrence of any other Event of Default, or 

  

	(iii)	 	any prepayment of the Loan or part thereof being made under Clause 8 or 11 otherwise than on an Interest Payment Date, or 

  

	(iv)	 	any court judgement expressed in a currency other than NOK 

  
 including, in any such case, but not limited to, any loss or expense sustained or incurred in maintaining or funding its Contribution, or any part thereof or in
liquidating or reemploying deposits from third parties acquired to effect or maintain its Contribution or any part thereof. 

 15.    THE AGENT AND THE BANKS 
  
 15.01.    Appointment and duties of the Agent 
  
 The Banks authorize the Agent (either through its employees or agents) to take such action on the Banks’ behalf and to exercise such
powers hereunder as are specifically delegated to the Agent by the terms of this Agreement, together with such powers as are reasonably incidental thereto. The relationship between the Agent and each Bank is that of agent and principal only, and
nothing herein shall impose on the Agent any duties or obligations other than those for which express provision is made herein. In performing its duties and functions hereunder, the Agent shall exercise the same care as it normally exercises in
making and handling loans for its own account, but the Agent assumes no further responsibility and neither the Agent nor any of its officers, directors, employees or agents shall be liable to the Banks or any of them for any action taken or omitted
to be taken hereunder or in connection with this Agreement, or the Loan unless caused by its or their gross negligence or wilful misconduct. 
  
 15.02.    Banks’ directions 
  
 The Agent will be fully protected if it acts in accordance with the instructions of the Banks in connection with the exercise of any right, power or discretion or any
matter not expressly provided for in this Agreement. In the absence of such instructions, the Agent may act in relation thereto as it considers to be in the best interests of all the Banks. The Agent may not commence legal proceedings in a
Bank’s name without such Bank’s consent. 
  
 15.03.    Responsibility 
  
 The Agent shall
not be responsible to the Banks or any of them for the financial condition of the Borrower, its direct and/or indirect partners or for any statements, representations or warranties in this Agreement or any certificate or document delivered hereunder
or for the validity, effectiveness, enforceability or sufficiency of this Agreement or of any certificate, report or other document executed or delivered hereunder. 
  
 15.04.    Approval and appraisal 
  
 Each Bank has made and shall make its own independent investigation of the financial condition and the affairs of the Borrower in connection
with the making and continuance of the Loan and has made and shall make its own appraisal of the creditworthiness of the Borrower. 
  
 15.05.    Information 
  

	a)	 	The Agent shall forward as soon as possible all relevant documents or notices received from the Borrower in accordance with this Agreement to the other Banks.

  

	b)	 	The Agent shall distribute promptly to each of the Banks their due proportions of all sums received by the Agent on behalf of the Banks under this Agreement or any of the Security
Documents. The Agent may 

 retain for its own use and benefit (and shall not be liable to account to any of the Banks for all or any
part of) any sums received by it by way of fees (and not payable to any Bank) or by way of reimbursement of expenses incurred by it. 
  

	c)	 	The Agent shall promptly notify the Banks of the occurrence of any Event of Default. 

  
 15.06.    Default 
  
 The Agent shall not be required to make any enquiry as to the performance or observance by the Borrower of any of the terms, provisions or conditions of this Agreement
nor the existence or possible existence of any Event of Default. 
  
 15.07.    Reimbursement 
  
 Each Bank shall
reimburse the Agent for the amount of such Bank’s pro rata share of the charges and expenses incurred by the Agent in contemplation of, or in carrying out its duties under, or otherwise in connection with the enforcement of, or the preservation
of any rights under this Agreement including the fees and expenses of legal or other professional advisers to the extent that such charges or expenses are not reimbursed by the Borrower. 
  
 The Agent is not to incur material costs on behalf of the Banks unless agreed. 
  
 15.08.    Exoneration 
  
 The Agent shall have no responsibility (a) to the Borrower on account of the failure of each of the Banks to perform its obligations hereunder, or (b) to the Banks on
account of the failure of the Borrower to perform its obligations hereunder. 
  
 15.09.    Agent relationship 
  
 The Agent
may, without liability to account, accept deposits from, lend money to and generally engage in any kind of banking or trust business with the Borrower or the Banks as if it were not the Agent. 
  
 15.10.    Set-off 
  
 If any Bank at any time receives or recovers by set-off or otherwise any sum (in connection
with this transaction) which it is obliged (or entitled) to apply payment of any amount due to it hereunder then such Bank shall be obliged to offer to each other Bank (through the Agent) such payment by way of adjustment as may be necessary to
ensure that at all times each Bank receives the same proportion of principal, interest and the fees due to under this Agreement as each other Bank. 

 15.11.    Resignation 
  
 The Agent may resign (without reason) its appointment at any time by giving a 30 days’ prior written notice to the parties hereto. The
resignation shall only become effective upon the appointment of a new agent. The Banks (if non of the Banks wants to assume the role of the Agent) may appoint a new agent among any reputable and experienced finance institution. Upon the appointment
of a new agent, such new agent shall assume all rights and obligations from such time designated by the Agent, and the Agent shall from such time be discharged from any further obligations hereunder. 
  
 16.    REDISTRIBUTION OF PAYMENTS 
  
 16.01.    Redistribution of payments 
  
 If at any time the proportion which any Bank has received or recovered of its portion of any
sum due from the Borrower to the Banks hereunder is greater than the proportion thereof received or recovered by the Bank receiving the smallest proportion thereof, then, 
  

	(i)	 	such Bank shall pay promptly to the Agent the excess amount, and 

  

	(ii)	 	the Agent shall treat such payment as if it was a payment by the Borrower on account of the sum owed to the Banks as aforesaid, and 

  

	(iii)	 	as between the Borrower and such Bank, the excess amount shall be treated as not having been paid. 

  
 17.    FEES AND EXPENSES 
  

17.01.    Flat fee 
  
 The Borrower shall pay to the Banks a flat fee of NOK 750,000.- payable at Drawdown Date or such earlier date as requested by the Banks if the Loan is not drawn for any
reason whatsoever. 
  
 17.02.    Agent fee 

 
 The Borrower shall pay to the Agent a yearly agent fee of USD 5,000.-. The agent fee is
payable yearly in advance, the first time at the Drawdown Date. 
  
 17.03.    Costs and expenses 
  
 The Borrower
shall pay to the Agent on behalf of the Banks on demand whether or not the loan is ever advanced hereunder all costs, expenses and disbursements (including, but not limited to legal fees and printing and publication expenses) incurred by the Banks
in the negotiation, preparation and completion of this Agreement and the Security Documents and the maintenance, protection and enforcement of any of their rights hereunder. 

 18.    AMENDMENTS AND WAIVERS 
  
 18.01.    The Banks 
  
 Any term of this Agreement and the Security Documents may only be amended or waived if authorised by each of the Banks. The Agent shall effect, on behalf of the Banks,
any amendment or waiver to which they have agreed. 
  
 18.02.    Waivers 
  
 No delay or failure by
the Agent on behalf of the Banks in exercising any right or remedy shall be construed or take effect as a waiver or release of that right or remedy and the Banks shall always be entitled to exercise all their rights and remedies unless it shall have
expressly waived them in writing. 
  
 19.    MISCELLANEOUS

  
 19.01.    Partial illegality 
  
 If at any time any provisions hereof are or become illegal, invalid or unenforceable in any
respect, under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions hereof shall in any way be affected or impaired thereby. 
  
 19.02.    Security Documents 
  
 The provisions of the Security Documents are an integrated part of this Agreement. 
  
 19.03.    Inconsistency 
  
 In the event of any inconsistency between the provisions of this Agreement and the provisions
of the Security Documents, the provisions of this Agreement shall prevail. 
  
 20.    ASSIGNMENTS 
  
 20.01.    Banks’ assignment 
  
 The Banks
may assign any of their rights under this Agreement in whole or in part to first class banks or financial institutions and the Borrower undertakes to execute such documents as may be required by the Banks to perfect any such assignment. 

 
 20.02.    Borrower’s assignment 
  
 The Borrower may not assign any of its rights or obligations under this Agreement.

 21.    LAW AND JURISDICTION 
  
 21.01.    Law 
  
 This Agreement shall be governed by and construed in accordance with the Laws of Norway. 
  
 21.02.    Jurisdiction 
  

The Borrower and the Banks accept Bergen Town Court as non-exclusive venue, but this choice shall not prevent the Banks to enforce any of the Security Documents
against the Vessels wherever it may be found. 
  
 22.    NOTICES 
  
 22.01.    Notices 
  
 Any notice to be given
or any document to be delivered may be sent by telefax or by first class airmail to the addresses and faxnos. listed in the introduction to this Agreement or in Schedule 4 hereto. 
  
 * * * 
  
 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed and delivered the day and the year first above written. 

	TRICO SHIPPING AS	 	p.p. DEN NORSKE BANK ASA
		
	/s/    Jon Arild Goksoyr	 	/s/    Knut Voraa
		
	 	 	p.p. DEN NORSKE BANK ASA
		
	 	 	 /s/    Knut Voraa
 (as
Agent)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]