Document:

exv10w3

[Execution Version]

EXHIBIT 10.3

AMENDMENT NO. 9

TO

CREDIT AGREEMENT

     THIS AMENDMENT NO. 9 TO CREDIT AGREEMENT (this “Amendment”), dated as of September 29,
2010, is by and among BALDWIN TECHNOLOGY COMPANY, INC., a Delaware corporation (“Parent”),
BALDWIN GERMANY HOLDING GMBH, a German company (“Newco”), BALDWIN GERMANY GMBH, a German
company (“BGG”), BALDWIN OXY-DRY GMBH (formerly known as “OXY-DRY MASCHINEN GMBH”), a
German company (“Oxy-Dry GmbH”, and, collectively with the Parent, Newco and BGG, the
“Borrowers”), the other Credit Parties (as defined in the Guaranty and Collateral Agreement
(as defined below)) a party hereto, the Lenders (as defined in the Credit Agreement referred to
below) signatory hereto and BANK OF AMERICA, N.A., a national banking association (as
successor-by-merger to LASALLE BANK NATIONAL ASSOCIATION), in its capacity as administrative agent
(in such capacity, the “Administrative Agent”) for the Lenders.

PRELIMINARY STATEMENTS

     A. The Borrowers, the Lenders and the Administrative Agent are parties to that certain Credit
Agreement, dated as of November 21, 2006, as amended by that certain (i) Amendment to Credit
Agreement dated as of December 29, 2006, (ii) Waiver, Consent and Amendment No. 2 to Credit
Agreement, dated as of April 18, 2007, (iii) Waiver, Consent and Amendment No. 3 to Credit
Agreement dated as of January 3, 2008, (iv) Amendment No. 4 to Credit Agreement dated as of
February 26, 2008, (v) Modification and Limited Waiver Agreement dated as of March 31, 2009, as
amended and restated as of May 15, 2009 and amended on June 22, 2009 (such Modification and Limited
Waiver Agreement, as so amended and restated and as so amended, and as may be further amended,
restated, supplemented or otherwise modified from time to time, the “Modification and Limited
Waiver”), (vi) Waiver and Amendment No. 5 to Credit Agreement dated as of July 31, 2009
(“Amendment No. 5”), (vii) Waiver and Amendment No. 6 to Credit Agreement dated as of May
12, 2010, (viii) Waiver and Amendment No. 7 to Credit Agreement dated as of June 9, 2010 and (ix)
Amendment No. 8 to Credit Agreement dated as of September 28, 2010 (“Amendment No. 8”);

     B. The term “Credit Agreement” as used in this Amendment shall mean such Credit
Agreement as amended as set forth in paragraph A above;

     C. The Guaranty and Collateral Agreement (as defined in the Credit Agreement) was amended
pursuant to (i) Amendment No. 1 to Guaranty and Collateral Agreement, dated as of June 24, 2009,
(ii) Amendment No. 2 to Guaranty and Collateral Agreement, dated as of February 16, 2010 and
Amendment No. 3 to Guaranty and Collateral Agreement, dated as of June 30, 2010;

     D. The Borrowers have requested that Lenders constituting at least the Required Lenders agree
to further amend the Credit Agreement to make certain modifications to the

 

 

definition of EBITDA and a corresponding modification to Exhibit B to the Credit Agreement;
and

     E. The Administrative Agent and the Lenders signatory hereto, representing at least the
Required Lenders, are willing to provide for such amendments upon the terms and subject to the
conditions set forth in this Amendment.

     NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound, agree as follows:

ARTICLE I

DEFINITIONS

     1.01 Capitalized terms used in this Amendment and not defined herein shall have the meanings
ascribed to such terms in the Credit Agreement unless otherwise stated herein.

ARTICLE II

AMENDMENTS

     2.01 Amendment to Section 1.1: Addition of New Definitions. Section 1.1 of
the Credit Agreement is hereby amended by adding the following new definition (to be inserted in
proper alphabetical order):

	 	 	 	Amendment No. 9 means that certain Amendment No. 9 to Credit Agreement dated
as of September 29, 2010, among Borrowers, the other Credit Parties a party thereto,
the Lenders signatory thereto and the Administrative Agent, as amended, restated,
supplemented or otherwise modified from time to time.

     2.02 Amendment to Definition of EBITDA. The definition of the term EBITDA set forth
in Section 1.1 of the Credit Agreement is hereby amended and restated (effective as of the
date of this Amendment) to read in its entirety as follows:

	 	 	 	EBITDA means, for any period, Consolidated Net Income for such period
plus (without duplication), in each case to the extent deducted in
determining such Consolidated Net Income in such period, (i) Interest Expense, (ii)
income tax expense and franchise tax expense (to the extent in lieu of income tax
expense), (iii) depreciation and amortization, (iv) non-cash charges (if any) under
FAS No. 142 regarding the impairment of goodwill, (v) other non-cash impairment
charges with respect to long-term assets (for the avoidance of doubt there is no
“add-back” under this clause (v) or any other clause of this definition for any
increases in the reserves with respect to inventory or accounts receivable or for
any write-off with respect to inventory or accounts receivable), (vi) non-cash write
offs of previously capitalized financing costs, (vii) restructuring charges or
restructuring expenses (whether cash or non-cash) incurred by the Parent or its
Subsidiaries with respect to (a) the closure or consolidation of plants or offices,
(b) rent reserves for closed or consolidated plants or offices and (c) severance
payments for employees terminated as part of a general downsizing, (viii)
establishment or increase in

-2-

 

	 	 	 	reserves for uninsured litigation claims provided that the aggregate add-back under
this clause (viii) shall not exceed $100,000 for such period, (ix) non-cash expenses
(if any) resulting from the grant by the Parent of Capital Securities (including
options and the Warrants), (x) non-capitalized one-time out-of-pocket fees
(including the Amendment Fee (as defined in Amendment No. 5) and any fees payable
pursuant to the Agent Fee Letter in connection with Amendment No. 5) and legal and
financial advisor expenses, not to exceed $998,000 in the aggregate for purposes of
this clause (x), incurred (in such period) by the Parent and its Subsidiaries in
connection with the negotiation, execution and delivery of Amendment No. 5 and any
documents prepared and delivered in connection therewith or any term sheet relating
thereto (such one-time fees and expenses, the “Fifth Amendment Expenses”),
(xi) to the extent paid by the Borrowers and not capitalized, the $20,000 waiver fee
under Amendment No. 6 and the legal fees of the Administrative Agent incurred in
connection with Amendment No. 6, (xii) to the extent paid by the Borrowers and not
capitalized, the $100,000 amendment fee under Amendment No. 7 and the legal fees and
Capstone fees incurred by the Agent in connection with Amendment No. 7, (xiii) to
the extent paid by the Borrowers and not capitalized, the $50,000 amendment fee
under Amendment No. 8 and the legal fees and Capstone fees incurred by the Agent in
connection with Amendment No. 8 and by the Agent (and any Lender) in connection with
the Warrants and legal fees incurred by the Borrowers in connection with Amendment
No. 8 and the Warrants, (xiv) to the extent paid by the Borrowers and not
capitalized, the $25,000 amendment fee under Amendment No. 9 and the legal fees
incurred by the Agent in connection with Amendment No. 9 and the legal fees incurred
by the Borrowers in connection with Amendment No. 9, and (xv) severance expenses
incurred by reason of the non-renewal of the employment contract of the President
and Chief Executive Officer of the Parent provided that the add-back under this
clause (xv) shall not exceed (for all periods in the aggregate) $900,000, all on a
consolidated basis of the Parent and its Subsidiaries. In addition, such
adjustments shall be made when calculating EBITDA as shall in good faith be required
by the Administrative Agent in connection with the Nordson UV Acquisition (including
without limitation the elimination of one-time events (whether expense, loss, income
or gain) associated with the Nordson UV Acquisition). It is further agreed (but
without duplication with any add-back pursuant to clause (ix) above) that any
non-cash gain or income or non-cash loss or expense resulting from recording or
“marking to market” the value of the put contained in the Warrants shall be excluded
when determining EBITDA.

     2.03 Amendment to Exhibit B. Exhibit B to the Credit Agreement is hereby
amended and restated (effective as of the date of this Amendment) to read in its entirety as set
forth in Exhibit B attached hereto and hereby made a part hereof.

ARTICLE III

CONDITIONS PRECEDENT

     3.01 Conditions to Effectiveness. The effectiveness of the amendments set forth in
Article II above are each subject to the satisfaction (by no later than November 12, 2010 unless

-3-

 

the Administrative Agent extends such date) of the following conditions precedent, unless
specifically waived in writing by the Administrative Agent:

     (a) The Administrative Agent shall have received the following documents, each in form
and substance satisfactory to the Administrative Agent and its legal counsel:

     (i) this Amendment duly executed by Borrowers and the other Credit Parties and
the Lenders constituting at least the Required Lenders; and

     (ii) such other documents as reasonably requested by the Administrative Agent;
and

     (b) Borrowers shall have paid the legal fees of Finn Dixon & Herling LLP incurred in
connection with the preparation of this Amendment (and incurred in connection with certain
services relating to Amendment No. 8 performed after September 28, 2010) in an amount equal
to $7,950.

     (c) The Borrowers shall pay the Amendment No. 9 Fee (as defined below).

ARTICLE IV

AMENDMENT FEE

     4.01 Amendment Fee. In consideration of the Required Lenders entering into this
Amendment, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Borrowers hereby agree to pay to each Lender who executes and delivers
this Amendment on or before November 12, 2010, an amendment fee (the “Amendment No. 9 Fee”)
equal to such Lender’s Pro-Rata Share (as defined in clause (d) of the definition of Pro-Rata
Share) of $25,000. The Amendment No. 9 Fee shall be fully earned on the date hereof and shall be
payable no later than November 11, 2010. Any failure of the Borrowers to pay, when due, the
Amendment No. 9 Fee shall constitute an Event of Default under the Credit Agreement.

ARTICLE V

NO WAIVER

     5.01 No Waiver. Nothing contained in this Amendment shall be construed as a waiver by
the Administrative Agent or the Lenders of any covenant or provision of the Credit Agreement, the
Guaranty and Collateral Agreement, this Amendment, the other Loan Documents, the Warrants, or of
any other contract or instrument among the Borrowers and/or the other Credit Parties, as the case
may be, and the Administrative Agent and/or the Lenders (and/or their respective Affiliates), as
the case may be, and the failure of the Administrative Agent and/or Lenders (and/or their
respective Affiliates) at any time or times hereafter to require strict performance by the
Borrowers and/or the other Credit Parties of any provision thereof shall not waive, affect or
diminish any right of the Administrative Agent and the Lenders (or their respective Affiliates) to
thereafter demand strict compliance therewith.

-4-

 

ARTICLE VI

RATIFICATIONS, REPRESENTATIONS AND WARRANTIES; CONFIRMATIONS

     6.01 Ratifications; etc. The terms and provisions set forth in this Amendment shall
modify and supersede all inconsistent terms and provisions set forth in Credit Agreement and the
other Loan Documents. The terms and provisions of the Credit Agreement and the other Loan
Documents, as amended hereby, and of the Warrants, are ratified and confirmed and shall continue in
full force and effect. The Borrowers, the other Credit Parties, the Lenders and the Administrative
Agent agree that the Credit Agreement and the other Loan Documents, as amended hereby, shall
continue to be legal, valid, binding obligations of the parties thereto, enforceable against such
parties in accordance with their respective terms. Without limiting the generality of the
foregoing, the Borrowers and the other Credit Parties hereby confirm and agree that (a) all Liens
under the Collateral Documents (as amended) remain in full force and effect (as so amended) and (b)
the guaranty obligations and other obligations of the Borrowers and all other Credit Parties under
the Guaranty and Collateral Agreement (and other applicable Collateral Documents), as amended,
remain in full force and effect (as so amended) and (as set forth in the Guaranty and Collateral
Agreement) shall not be impaired or otherwise limited by any waiver or modification set forth in
this Amendment (and nothing contained in this Amendment shall, or shall be interpreted to, create a
custom, course of dealing or other agreement or arrangement by which the consent or confirmation of
any Credit Party to any modification or waiver is required in order to keep any obligations under
the Guaranty and Collateral Agreement (and other applicable Collateral Documents) in full force and
effect, it being agreed that no such consent or confirmation is necessary or required in order to
keep such obligations in full force and effect). Without limiting the generality of the foregoing
(or of Section 1.2(e) of the Credit Agreement), it is hereby confirmed and agreed that any
reference in the Loan Documents to any Note shall include all amendments, restatements, supplements
and other modifications thereto and any Notes issued under Section 15.6.1 of the Credit
Agreement and/or other Notes in substitution or replacement of any Note(s). Any breach of any
representation, warranty, covenant or confirmation set forth in this Amendment by any Borrower or
any other Credit Party shall be deemed to constitute an Event of Default under the Credit
Agreement.

     6.02 Representations and Warranties. Each of the Borrowers and the other Credit
Parties hereby represents and warrants to the Administrative Agent and the Lenders that (a) the
execution, delivery and performance of this Amendment and any and all Loan Documents executed
and/or delivered in connection herewith have been authorized by all requisite corporate (or other
applicable organization) action on the part of such Borrower or other Credit Party, as the case may
be, and will not violate the charter, by-laws or other organizational documents of such Borrower or
other Credit Party; (b) the representations and warranties of such Borrower or other Credit Party,
as the case may be, contained in any Loan Document are true and correct in all respects (or if the
applicable representation or warranty is not qualified by a materiality qualifier, true and correct
in all material respects) on the date hereof and on and as of the date of execution hereof as
though made on and as of each such date (except to the extent stated to relate to a specific
earlier date, in which case such representations and warranties were true and correct in all
respects (or if the applicable representation or warranty is not qualified by a materiality
qualifier, true and correct in all material respects) as of such earlier date); (c) after giving
effect to the amendments set forth herein, no Event of Default or Unmatured Event of Default under

-5-

 

the Credit Agreement has occurred and is continuing; and (d) no Credit Party that is party to
the Guaranty and Collateral Agreement has changed its legal name since November 21, 2006 except (i)
Newco changed its name from Mainsee 430. VV GmbH to Baldwin Germany Holding GmbH, (ii) Oxy-Dry GmbH
changed its name from Oxy-Dry Maschinen GmbH to Baldwin Oxy-Dry GmbH, (iii) Baldwin Southeast Asia
Corporation changed its name from Oxy-Dry Asia Pacific, Inc. and (iv) Baldwin Rockford Corporation
has merged with and into Baldwin Americas Corporation. The Borrowers and the other Credit Parties
acknowledge and agree that all unpaid principal of, and accrued and unpaid interest under, each of
the Loans is justly owed without claim, counterclaim, cross-complaint, offset, defense or other
reduction of any kind against the Lenders or the Administrative Agent. The Parent acknowledges and
agrees that each Warrant constitutes the legal, valid and binding obligation of the Parent,
enforceable against the Parent in accordance with its respective terms and Parent has no claims,
counterclaims, cross-complaints, offsets, defenses or other reduction of any kind with respect to
its respective obligations thereunder.

     6.03 Confirmations. All confirmations and agreements set forth in Sections
7.03, 7.04 and 7.05 of Amendment No. 5 remain in full force and effect.

ARTICLE VII

MISCELLANEOUS PROVISIONS

     7.01 Survival of Representations and Warranties. All representations and warranties
made in the Credit Agreement or the Guaranty and Collateral Agreement or any other Loan Documents,
in the Warrants or under or in connection with this Amendment, including, without limitation, any
document furnished in connection with this Amendment, shall survive the execution and delivery of
this Amendment and the other Loan Documents.

     7.02 Severability. Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to be invalid or
unenforceable.

     7.03 Successors and Assigns. This Amendment is binding upon and shall inure to the
benefit of the Administrative Agent, the Lenders, the Borrowers and the other Credit Parties and
their respective successors and assigns, except that no Borrower or Credit Party may assign or
transfer any of its rights or obligations hereunder without the prior written consent of the
Administrative Agent. It is acknowledged and agreed that Bank of America, N.A., has, as successor
by merger to LaSalle Bank National Association, succeeded to all of the respective rights and
duties of LaSalle Bank National Association as a Lender (including without limitation as the
Issuing Lender), and the Administrative Agent under the Loan Documents.

     7.04 Certain Costs and Expenses. Without in any way limiting the generality of
Sections 10.2 or 15.5 of the Credit Agreement, the Parent acknowledges and agrees
that it shall (i) promptly pay the reasonable fees and disbursements of all legal counsel retained
by the Administrative Agent in connection with the preparation, negotiation, execution and delivery
of this Amendment or any future waiver or modification (or proposed modification or waiver whether
or not consummated), if any, of any Loan Document(s) (provided that Borrower shall

-6-

 

not have to pay the allocable costs of internal legal services of the Administrative Agent in
connection with the preparation, negotiation, execution and delivery of this Amendment; provided it
is understood and agreed that this parenthetical phrase shall not, and shall not be interpreted to,
limit the right of the Administrative Agent or any Lender to receive the allocable costs of
internal legal services with respect to agreements or matters other than the preparation,
negotiation, execution and delivery of this Amendment) and (ii) pay (when invoiced) all fees of
Capstone (as defined in the Modification and Limited Waiver) incurred by the Agent in connection
with this Amendment. The Borrowers and other Credit Parties hereby agree that all findings and
conclusions and other work product of Capstone shall be protected by the attorney-client privilege
and shall not be subject to review or discovery by the Borrowers or any other Credit Party.

     7.05 Counterparts. This Amendment may be executed and delivered by facsimile,
portable document format (“.pdf”), Tagged Image File Format (“.TIFF”) or other electronic means of
delivery and in one or more counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the same instrument.

     7.06 Preliminary Statements. The Preliminary Statements set forth in this Amendment
are accurate and shall form a substantive part of the agreement of the parties hereto.

     7.07 Headings. The headings, captions, and arrangements used in this Amendment are
for convenience only and shall not affect the interpretation of this Amendment.

     7.08 Relationship. The relationship between the Borrowers and other Credit Parties on
the one hand and the Lenders and the Administrative Agent on the other hand shall be solely that of
borrowers and guarantors, on the one hand, and lender on the other (or, in the case of the
Warrants, the relationship is that the Parent is the issuer, and the applicable Lender is the
holder, of the applicable Warrant). Neither the Administrative Agent nor any Lender has any
fiduciary relationship with or duty to any Borrower or other Credit Party arising out of or in
connection with this Amendment or any of the other Loan Documents or the Warrants or any related
documents, and the relationship between the Borrowers and other Credit Parties, on the one hand,
and the Administrative Agent and the Lenders, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor (or, in the case of the Warrants, the relationship
is that the Parent is the issuer, and the applicable Lender is the holder, of the applicable
Warrant). The Borrowers and other Credit Parties acknowledge that they have been advised by
counsel in the negotiation, execution and delivery of this Amendment and the other Loan Documents
and the Warrants and any related documents. No joint venture or partnership is created hereby or
by the other Loan Documents or by the Warrants or related documents or otherwise exists by virtue
of the transactions contemplated hereby or by the other Loan Documents (or the Warrants or related
documents) among the Lenders or among the Borrowers (and other Credit Parties) and the Lenders (or
the Agent). It is acknowledged and agreed by all Lenders that each Lender is the owner of its
individual Warrant which is exercisable by such Lender at its own election. No other Lender (or
the Administrative Agent) has any obligations with respect to the Warrant of any other Lender or
for the performance or content of any other Warrant.

-7-

 

     7.09 Time is of the Essence. The parties hereto (i) have agreed specifically with
regard to the times for performance set forth herein and in the other Loan Documents and (ii)
acknowledge and agree such times are material to this Amendment and the other Loan Documents.
Therefore, time is of the essence with respect to this Agreement and the other Loan Documents.

     7.10 Jury Trial; Indemnification. Without limiting the generality of Sections
15.17,15.18, 15.19 and 15.20 of the Credit Agreement, it is hereby
agreed that the terms and provisions of such Sections shall apply to this Amendment and any
transaction or matter contemplated by, in connection with or arising out of this Amendment.

     7.11 Applicable Law. THIS AMENDMENT AND ALL OTHER AGREEMENTS EXECUTED PURSUANT HERETO
(EXCEPT AS EXPRESSLY SET FORTH IN ANY SUCH AGREEMENT) SHALL BE A CONTRACT MADE UNDER AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

     7.12 Final Agreement. THE CREDIT AGREEMENT (AS AMENDED HEREBY) AND THE OTHER LOAN
DOCUMENTS REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF
AND THEREOF ON THE DATE THIS AMENDMENT IS EXECUTED. THE CREDIT AGREEMENT (AS AMENDED HEREBY) AND
THE OTHER LOAN DOCUMENTS MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING PROVISIONS, THE BORROWERS AND THE OTHER
CREDIT PARTIES ACKNOWLEDGE AND AGREE THAT NEITHER ANY LENDER NOR THE ADMINISTRATIVE AGENT HAS MADE
ANY PROMISES OR ASSURANCES WITH RESPECT TO, AND THE BORROWERS AND OTHER CREDIT PARTIES ACKNOWLEDGE
AND AGREE THAT THERE IS NO ORAL AGREEMENT WITH RESPECT TO, ANY FUTURE AMENDMENT, WAIVER OR OTHER
MODIFICATION OF THE LOAN DOCUMENTS OR ANY RESTRUCTURING OR WORKOUT THEREOF OR WITH RESPECT THERETO.
NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS AMENDMENT SHALL
BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY THE BORROWERS AND THE REQUIRED LENDERS AND (WITH
RESPECT TO MATTERS AFFECTING THE ADMINISTRATIVE AGENT) THE ADMINISTRATIVE AGENT AND (WITH RESPECT
TO MATTERS AFFECTING THE ISSUING LENDER) THE ISSUING LENDER.

     7.13 Release. EACH OF THE BORROWERS AND THE OTHER CREDIT PARTIES HEREBY ACKNOWLEDGES
THAT, AS OF THE DATE HEREOF, IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR
DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED (A) TO REDUCE OR ELIMINATE ALL OR ANY
PART OF ITS APPLICABLE LIABILITIES UNDER ANY LOAN DOCUMENT, ANY BANK PRODUCT AGREEMENT OR ANY
HEDGING AGREEMENT WITH ANY LENDER, THE ADMINISTRATIVE AGENT OR ANY OF

-8-

 

THEIR RESPECTIVE AFFILIATES OR UNDER THE WARRANTS OR ANY RELATED DOCUMENT AND/OR (B) TO SEEK
AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM THE ADMINISTRATIVE AGENT OR ANY OF THE
LENDERS (OR ANY OF THEIR RESPECTIVE AFFILIATES). EACH OF THE BORROWERS AND THE OTHER CREDIT
PARTIES HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES THE ADMINISTRATIVE AGENT
AND LENDERS, THEIR PREDECESSORS, AGENTS, AFFILIATES, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL
POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES
WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED,
CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE
DATE THIS AMENDMENT IS EXECUTED, WHICH SUCH BORROWER OR OTHER CREDIT PARTY MAY NOW OR HEREAFTER
HAVE AGAINST THE ADMINISTRATIVE AGENT, LENDERS, THEIR PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS
AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT,
VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING OUT OF OR OTHERWISE IN ANY WAY RELATING
IN ANY WAY TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT, HEDGING AGREEMENT, BANK PRODUCT AGREEMENT,
THE OBLIGATIONS, THE WARRANTS OR ANY RELATED DOCUMENT, ANY OTHER TRANSACTION CONTEMPLATED BY ANY OF
THE FOREGOING DOCUMENTS, OR ANY ACTION OR OMISSION OF THE ADMINISTRATIVE AGENT OR ANY LENDER UNDER
OR OTHERWISE IN ANY WAY RELATING TO ANY OF THE FOREGOING DOCUMENTS. THE BORROWERS AND OTHER CREDIT
PARTIES EXPRESSLY WAIVE ANY PROVISION OF STATUTORY OR DECISIONAL LAW TO THE EFFECT THAT A GENERAL
RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE RELEASING PARTY(IES) DOES NOT KNOW OR SUSPECT TO EXIST
IN SUCH PARTY’S FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY SUCH PARTY, MUST OR
MIGHT HAVE MATERIALLY AFFECTED SUCH PARTY’S SETTLEMENT WITH THE RELEASED PARTIES. NOTHING
CONTAINED IN THIS PARAGRAPH SHALL, OR SHALL BE INTERPRETED TO, IMPAIR ANY RIGHTS OF ANY BORROWER
(OR OTHER CREDIT PARTY) WITH RESPECT TO ANY DEPOSIT OR OTHER BANK ACCOUNTS OF SUCH BORROWER OR
OTHER CREDIT PARTY (OR ANY OF THEIR RESPECTIVE SUBSIDIARIES) WITH ANY LENDER OR THE ADMINISTRATIVE
AGENT.

[Remainder of Page Intentionally Left Blank]

-9-

 

     IN WITNESS WHEREOF, each of the parties hereto has executed this Amendment as of the date
first written above.

	 	 	 	 	 
	 	BALDWIN TECHNOLOGY COMPANY, INC.

 	 
	 	By:  	/s/  Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	BALDWIN GERMANY HOLDING GMBH

 	 
	 	By:  	/s/ John P. Jordan
 	 
	 	 	Name:  	John P. Jordan 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	BALDWIN GERMANY GMBH

 	 
	 	By:  	/s/ Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	BALDWIN OXY-DRY GMBH

(formerly known as OXY-DRY MASCHINEN GMBH)

 	 
	 	By:  	/s/ Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	Managing Director 	 

[Signature Page to Amendment No. 9 to Credit Agreement]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BALDWIN GRAPHIC SYSTEMS, INC.

 	 
	 	By:  	/s/ John P. Jordan
 	 
	 	 	Name:  	John P. Jordan 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	 	OXY-DRY FOOD BLENDS, INC.

 	 
	 	By:  	/s/ John P. Jordan
 	 
	 	 	Name:  	John P. Jordan 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	OXY-DRY U.K., INC.

 	 
	 	By:  	/s/ John P. Jordan
 	 
	 	 	Name:  	John P. Jordan 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BALDWIN SOUTHEAST ASIA CORPORATION

(formerly known as Oxy-Dry Asia Pacific, Inc.)

 	 
	 	By:  	/s/ John P. Jordan
 	 
	 	 	Name:  	John P. Jordan 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BALDWIN AMERICAS CORPORATION

 	 
	 	By:  	/s/ Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	BALDWIN ASIA PACIFIC CORPORATION

 	 
	 	By:  	/s/ Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	President 	 

[Signature Page to Amendment No. 9 to Credit Agreement]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MTC TRADING COMPANY

 	 
	 	By:  	/s/ Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	OXY-DRY CORPORATION

 	 
	 	By:  	/s/ Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BALDWIN EUROPE CONSOLIDATED INC.

 	 
	 	By:  	/s/ Mark T. Becker
 	 
	 	 	Name:  	Mark T. Becker 	 
	 	 	Title:  	President 	 

[Signature Page to Amendment No. 9 to Credit Agreement]

 

 

	 	 	 	 	 
	 	BALDWIN EUROPE CONSOLIDATED B.V.

 	 
	 	By:  	 Baldwin Graphic Equipment BV
 	 
	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ John P. Jordan
 	 
	 	 	Name(s):  John P. Jordan 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ Jacobus Willems
 	 
	 	 	Name(s):  Jacobus Willems 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	BALDWIN GRAPHIC EQUIPMENT B.V.

 	 
	 	By:  	/s/ John P. Jordan
 	 
	 	 	Name(s):  John P. Jordan 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ Jacobus Willems
 	 
	 	 	Name(s):  Jacobus Willems 	 
	 	 	Title:  	Managing Director 	 

[Signature Page to Amendment No. 9 to Credit Agreement]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	

BANK OF AMERICA, N.A., as Administrative Agent

 	 
	 	By:  	/s/ Anne M. Zeschke
 	 
	 	 	Name:  	Anne M. Zeschke 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Lender

 	 
	 	By:  	/s/ Anthony D. Healey
 	 
	 	 	Name:  	Anthony D. Healey 	 
	 	 	Title:  	Senior Vice President 	 

[Signature Page to Amendment No. 9 to Credit Agreement]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	WEBSTER BANK, NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/ Stephen Corcoran
 	 
	 	 	Name:  	Stephen Corcoran 	 
	 	 	Title:  	Senior Vice President 	 

[Signature Page to Amendment No. 9 to Credit Agreement]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	RBS CITIZENS, N.A., as Lender

 	 
	 	By:  	/s/ Robert M. Nemon
 	 
	 	 	Name:  	Robert M. Nemon 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Amendment No. 9 to Credit Agreement]

 

 

EXHIBIT B

FORM OF COMPLIANCE CERTIFICATE

To: Bank of America, N.A., as Administrative Agent

     Please refer to the Credit Agreement dated as of November 21, 2006 (as amended, and as same
may be further restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among BALDWIN TECHNOLOGY COMPANY, INC., BALDWIN GERMANY HOLDING GMBH, BALDWIN
GERMANY GMBH, and BALDWIN OXY-DRY GMBH (collectively, the “Borrowers”), various financial
institutions from time to time as Lenders and BANK OF AMERICA, N.A., a national banking association
(as successor-by-merger to LASALLE BANK NATIONAL ASSOCIATION), in its capacity as Administrative
Agent. Terms used but not otherwise defined herein are used herein as defined in the Credit
Agreement.

	I.	 	Reports. Enclosed herewith is a copy of the [annual audited/quarterly] report of the
Parent and its consolidated Subsidiaries as
at             ,      (the “Computation
Date”), which report fairly presents in all material respects the financial condition and
results of operations [(subject to the absence of footnotes and to normal year-end
adjustments)] of the Parent and its consolidated Subsidiaries as of the Computation Date and
has been prepared in accordance with GAAP consistently applied. Also enclosed is the written
statement of Parent’s management required by Section 10.1.3 of the Credit Agreement.
	 
	II.	 	Certain Financial Covenants Tests. The Parent (on behalf of the Borrowers) hereby
certifies and warrants to you and the Lenders that the following is a true and correct
computation as at the Computation Date of the following ratios and/or financial restrictions
contained in the Credit Agreement:
	 
	A.	 	Section 11.14.1 — Minimum EBITDA for the Four Fiscal Quarter Computation Period ending on the
Computation Date:

	 	 	 	 	 	 	 

	1.	 	Consolidated Net Income	 	$                    
	 
	 	 	 	 	 	 
	2.

	 	Plus:*
	 	Interest Expense
	 	$                    
	 

	 	 	 	income tax expense
	 	$                    
	 

	 	 	 	depreciation
	 	$                    
	 

	 	 	 	amortization
	 	$                    
	 

	 	 	 	Non-cash charges under FAS 142
	 	$                    
	 

	 	 	 	Other non-cash impairment

charges for long-term assets
	 	$                    
	 

	 	 	 	Non-cash write-off of previously
capitalized financing costs
	 	$                    
	 

	 	 	 	Restructuring charges and expenses
	 	$                    
	 

	 	 	 	Establishment/increase reserves
for uninsured legal claims
up to $100,000
	 	$                    
	 

	 	 	 	Non-Cash Expenses from grant
of Capital Securities
	 	$                    
	 

	 	 	 	Non-capitalized one-time out-of-pocket
fees re Amendment No. 5
	 	$                    

 

 

	 	 	 	 	 	 	 

	 

	 	 	 	(up to $998,000)	 	 
	 

	 	 	 	Non-capitalized $20,000 waiver
fee, $100,000 amendment fee,
$50,000 amendment fee, $25,000
amendment fee and certain legal and
other fees and expenses
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	 	 	Severance expenses in connection with
non-renewal of CEO/president’s
employment contract — up to $900,000
for all periods
	 	$                    
	 
	 	 	 	 	 	 
	 	 	[Insert any applicable additions or subtractions

in good faith required by Administrative Agent

in connection with Nordson UV Acquisition]	 	[$                    ]
	 
	 	 	 	 	 	 
	 	 	[Insert any applicable addition regarding non-cash
gain or income or non-cash loss or expense from
recording or marking to market the value of the put
in the Warrants]	 	[$                    ]
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	3	 	Total (EBITDA)	 	$                    
	 
	 	 	 	 	 	 
	4.	 	Minimum required	 	$                    
	 
	 	 	 	 	 	 
	 

	 	Compliant:
	 	 o Yes o No	 	 

B.** Section 11.14.5 — Maximum Capital Expenditures for the Fiscal Year ending June 30, 2011:

	 	 	 	 	 	 	 

	1.

	 	Capital Expenditures for such Fiscal Year
	 	$	                    	 
	 
	 	 	 	 	 	 
	2.

	 	Maximum permitted
	 	$	1,000,000	 
	 
	 	 	 	 	 	 
	 

	 	Compliant: o Yes o No	 	 	 	 

     The Parent (on behalf of all Borrowers) further certifies to you that no Event of Default or
Unmatured Event of Default has occurred and is continuing [except                          ] [provide
details of any Event of Default or Unmatured Event of Default].

     The Parent (on behalf of all Borrowers) have caused this Certificate to be executed and
delivered by a duly authorized Senior Officer on                     ,      .

	 	 	 	 	 
	 	BALDWIN TECHNOLOGY COMPANY, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

 

			
	*	 	For all of the following add-backs see definition of EBITDA for details and any applicable
limitations (including that add-backs (or applicable portion thereof) can only be included to the
extent deducted in determining the Consolidated Net Income in the applicable testing period).
	 
	**	 	For the Fiscal Quarters ending September 30, 2010, December 31, 2010, and March 31, 2010, this
paragraph to be changed/conformed to a calculation of Capital Expenditures in the elapsed portion
of the 2011 Fiscal Year ending with the Computation Date.exv10w1

Exhibit 10.1

Date 27 October 2010

PORTOROSA MARINE CORP. and

FLORAL MARITIME LTD.

as joint and several Borrowers

- and -

THE BANKS AND FINANCIAL INSTITUTIONS

listed in Schedule 1

as Lenders

- and -

DEKABANK DEUTSCHE GIROZENTRALE

as Bookrunner and Arranger

- and -

DEKABANK DEUTSCHE GIROZENTRALE

as Agent and Security Trustee

 

AMENDED AND RESTATED

LOAN AGREEMENT

 

relating to a facility of up to US$120,000,000 to part-finance

the acquisition of two capesize newbuilding dry bulk carriers

 

INDEX

	 	 	 	 	 
	Clause	 	Page	 
	1 INTERPRETATION
	 	 	5	 
	2 FACILITY
	 	 	22	 
	3 POSITION OF THE LENDERS
	 	 	22	 
	4 DRAWDOWN
	 	 	23	 
	5 INTEREST
	 	 	24	 
	6 INTEREST PERIODS
	 	 	25	 
	7 DEFAULT INTEREST
	 	 	26	 
	8 REPAYMENT AND PREPAYMENT
	 	 	27	 
	9 CONDITIONS PRECEDENT
	 	 	29	 
	10 REPRESENTATIONS AND WARRANTIES
	 	 	29	 
	11 GENERAL UNDERTAKINGS
	 	 	32	 
	12 CORPORATE UNDERTAKINGS
	 	 	36	 
	13 INSURANCE
	 	 	37	 
	14 SHIP COVENANTS
	 	 	42	 
	15 SECURITY COVER
	 	 	46	 
	16 PAYMENTS AND CALCULATIONS
	 	 	48	 
	17 APPLICATION OF RECEIPTS
	 	 	49	 
	18 APPLICATION OF EARNINGS
	 	 	50	 
	19 EVENTS OF DEFAULT
	 	 	50	 
	20 FEES AND EXPENSES
	 	 	55	 
	21 INDEMNITIES
	 	 	56	 
	22 NO SET-OFF OR TAX DEDUCTION
	 	 	58	 
	23 ILLEGALITY, ETC
	 	 	59	 
	24 INCREASED COSTS
	 	 	59	 
	25 SET-OFF
	 	 	61	 
	26 JOINT AND SEVERAL LIABILITY
	 	 	61	 

2

 

	 	 	 	 	 
	Clause	 	Page	 
	27 TRANSFERS AND CHANGES IN LENDING OFFICES
	 	 	62	 
	28 VARIATIONS AND WAIVERS
	 	 	65	 
	29 NOTICES
	 	 	66	 
	30 SUPPLEMENTAL
	 	 	67	 
	31 LAW AND JURISDICTION
	 	 	68	 
	SCHEDULE 1 LENDERS AND COMMITMENTS
	 	 	 	 
	SCHEDULE 2 THE SHIPS, THE SHIPBUILDING CONTRACTS, THE APPROVED
CHARTERS
	 	 	 	 
	SCHEDULE 3 DRAWDOWN NOTICE
	 	 	 	 
	SCHEDULE 4 CONDITION PRECEDENT DOCUMENTS
	 	 	 	 
	SCHEDULE 5 TRANSFER CERTIFICATE
	 	 	 	 
	SCHEDULE 6 FORM OF COMPLIANCE CERTIFICATE
	 	 	 	 
	SCHEDULE 7 INDENTURE EXCERPT
	 	 	 	 
	EXECUTION PAGES
	 	 	69	 

3

 

THIS AGREEMENT is made on 27 October 2010 as amended and restated by a second deed of
Accession, Amendment and Restatement (as defined below)

BETWEEN:

	(1)	 	PORTOROSA MARINE CORP. and FLORAL MARINE LTD. as joint and several Borrowers;
	 
	(2)	 	THE BANKS AND FINANCIAL INSTITUTIONS listed in Schedule 1, as Lenders;
	 
	(3)	 	DEKABANK DEUTSCHE GIROZENTRALE, as Bookrunner;
	 
	(4)	 	DEKABANK DEUTSCHE GIROZENTRALE, as Arranger;
	 
	(5)	 	DEKABANK DEUTSCHE GIROZENTRALE, as Agent; and
	 
	(6)	 	DEKABANK DEUTSCHE GIROZENTRALE, as Security Trustee.

BACKGROUND

	(A)	 	By a loan agreement (the “Original Loan Agreement”) dated 16 February 2009 and made between
(i) Pueblo Holdings Ltd. (“Pueblo”) and Surf Maritime Co. (“Surf” and together with Pueblo,
the “Original Borrowers”) as joint and several borrowers, (ii) the Lenders, (iii) the
Bookrunner, (iv) the Arranger, (v) the Agent and (vi) the Security Trustee, it was agreed that
the Lenders would make available to the Original Borrowers a facility of up to $120,000,000
under the terms and conditions set forth therein.
	 
	(B)	 	By a deed of accession, amendment, restatement and release dated 25 May 2009 and made between
(i) the Original Borrowers and Borrower A as borrowers, (ii) the Lenders, (iii) the
Bookrunner, (iv) the Arranger, (v) the Agent and (vi) the Security Trustee, it was (inter
alia) agreed that Borrower A would become a party to the Original Loan Agreement as joint and
several borrower with Surf and Pueblo will be released from all its obligations and
liabilities under the Original Loan Agreement.
	 
	(C)	 	By an amended and restated loan agreement (the “Amended Loan Agreement”) dated 25 May 2009
and made between (i) Portorosa and Surf as joint and several borrowers, (ii) the Lenders,
(iii) the Bookrunner, (iv) the Arranger, (v) the Agent and (vi) the Security Trustee, it was
agreed that the Lenders made available to Portorosa and Surf the facility of US$120,000,000
out of which the principal amount of United States Dollars Fifty Two Million (US$52,000,000)
in respect of Advance A (as hereunder defined) and United States Dollars Thirty Nine Million
(US$39,000,000) in respect of Advance B remains outstanding.
	 
	(D)	 	By a supplemental agreement (the “Supplemental Agreement”) dated 16 July 2009 and made
between (i) Portorosa and Surf as joint and several borrowers, (ii) the Lenders, (iii) the
Bookrunner, (iv) the Arranger, (v) the Agent and (vi) the Security Trustee, the Lenders have
given their consent to the transfer of ownership of the Ship A (as hereinafter defined at the
time registered in the ownership of Borrower A to the New Owner under the terms and conditions
set forth therein.
	 
	(E)	 	By a side letter dated 20 May 2010 further amending and supplementing further the terms of
the Amended Loan Agreement (the “Side Letter” and together with the Amended Loan Agreement and
the Supplemental Agreement the “Loan Agreement”) ) is was agreed, inter alia, to release Surf
from its obligations under the Amended Loan Agreement as supplemented by the Supplemental
Agreement following the sale of the M.V. “NAVIOS POLLUX” at the time registered under
Panamanian flag in the ownership of Surf (“NAVIOS POLLUX”). Pursuant to the terms of the Side
Letter, part of the sale proceeds of NAVIOS POLLUX in the amount of United States Dollars
Fifty

4

 

	 	 	Eight million Six hundred thousand (US$58,600,000) has been deposited to a certain Cash
Collateral Account opened in the name of Borrower A which account was charged in favour of the
Lenders, the Bookrunner, the Arranger, the Agent and the Security Trustee out of which
account certain amounts were released pursuant to the terms of the Side Letter and the New
Deed of Accession, Amendment, Restatement and Release (as hereinafter defined).
	 
	(F)	 	This Agreement sets out the terms and conditions of the Loan Agreement as amended and
re-stated by this Agreement.

IT IS AGREED as follows:

	1	 	INTERPRETATION
	 
	1.1	 	Definitions. Subject to Clause 1.5, in this Agreement:
	 
	 	 	Account Bank” means a first class bank or financial institution nominated by the Borrowers
and approved by the Agent as the bank or financial institution with which each Earnings
Account will be opened and maintained;
	 
	 	 	“Advances” means, together, the Ship A Advance and the Ship B Advance and in the singular
means either of them;
	 
	 	 	“Accounts Pledge” means in relation to each Earnings Account, a deed creating security in
respect of the Earnings Account executed by the New Owner or to be executed by Borrower B,
as the case may be, in favour of all of the Creditor Parties in the Agreed Form and in the
plural means both of them;
	 
	 	 	“Affected Lender” has the meaning given in Clause 5.7;
	 
	 	 	“Agency and Trust Agreement” means the agency and trust agreement executed or to be executed
between the Borrowers, the Lenders, the Bookrunner, the Arranger, the Agent and the Security
Trustee in the Agreed Form;
	 
	 	 	“Agent” means DekaBank Deutsche Girozentrale, acting in such capacity through its office at
Mainzer Landstraße 16, 60329 Frankfurt am Main, Germany, or any successor of it appointed
under clause 5 of the Agency and Trust Agreement;
	 
	 	 	“Agreed Form” means in relation to any document, that document in the form reasonably
approved in writing by the Agent (acting on the instructions of the Lenders) or as otherwise
approved in accordance with any other approved procedure specified in any relevant provision
of any Finance Document;
	 
	 	 	“Approved Broker” means each of H. Clarkson & Company Limited of London, England, Barry
Rogliano Salles S.A. of Paris, France, R.S. Platou Shipbrokers A.S. of Oslo, Norway, Arrow
Sale & Purchase (UK) Ltd. of London, England, Simpson Spence & Young of London, England,
Fearnley AS of Oslo, Norway and Maersk Shipbrokers of Copenhagen and any other firm of
brokers as may be accepted by the Agent in its sole discretion and, in the plural, means all
of them;
	 
	 	 	“Approved Flag” means the Greek, Bahamas, Panamanian, Maltese, Liberian or Marshall Islands
flag or such flag as the Agent may, with the authorisation of the Majority Lenders,
approve as the flag on which a Ship shall be registered;

5

 

	 	 	“Approved Flag State” means any country in which the Agent may with the authorisation of
the Majority Lenders, approve that a Ship be registered;
	 
	 	 	“Approved Charter” means:

	 	(a)	 	in relation to Ship A, the Ship A Charter;
	 
	 	(b)	 	in relation to Ship B, the Ship B Charter; and
	 
	 	(c)	 	any other Charter approved by the Majority Lenders and insured by the Charter
Insurer,
	 
	 	and, in the plural, means all of them;

	 	 	“Approved Charterer” means:

	 	(a)	 	in relation to Ship A, during the period when the Ship A Charter is in place,
the company referred to in the first column of Part C of Schedule 2 as being the
charterer of Ship A; and
	 
	 	(b)	 	in relation to Ship B, during the period when the Ship B Charter is in place,
the company referred to in the first column of Part C of Schedule 2 as being the
Charterer of Ship B; and
	 
	 	(c)	 	in relation to any other Approved Charter, any charterer of that Ship approved
by the Majority Lenders,
	 
	 	and, in the plural, means all of them;

	 	 	“Approved Manager” means in relation to a Ship, Navios Shipmanagement Inc. a corporation
incorporated under the laws of the Marshall Islands and having its registered office at
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, the Marshall Islands, MH
96960 or any other company which the Agent may, with the authorisation of the Lenders,
approve from time to time as the commercial, technical and operational manager of a Ship;
	 
	 	 	“Arranger” means DekaBank Deutsche Girozentrale, acting in such capacity through its office
at Mainzer Landstraße 16, 60329 Frankfurt am Main, Germany;
	 
	 	 	“Assignment of Warranty Claims” means, in relation to each Ship, a deed of assignment in
respect of the rights and benefits under any Warranty Claims executed by the New Owner or to
be executed by Borrower B in favour of the Security Trustee, in the Agreed Form, and, in the
plural, means both of them;
	 
	 	 	“Availability Period” means the period which commenced on the date of this Original Loan
Agreement and ended on:

	 	(a)	 	in the case of each Advance, the Final Availability Date relevant to that
Advance (or, in each case, such later date as the Agent may, with the authorisation of
all the Lenders, agree with the Borrowers); or
	 
	 	(b)	 	if earlier, the date on which the Total Commitments are fully borrowed,
cancelled or terminated;

	 	 	“Bookrunner” means DekaBank Deutsche Girozentrale, acting in such capacity through its
office at Mainzer Landstraße 16, 60329 Frankfurt am Main, Germany;

6

 

	 	 	 	“Borrower A” means Portorosa Marine Corp., a corporation incorporated under the laws of the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, the Marshall Islands, MH 96960 (and includes its respective
successors);
	 
	 	 	 	“Borrower B” means Floral Marine Ltd., a corporation incorporated under the laws of the
Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, the Marshall Islands, MH 96960 (and includes its respective
successors);
	 
	 	 	 	“Borrowers” means together Borrower A and Borrower B and, in the singular, means either of
them;
	 
	 	 	 	“Builder” means, for each Ship, the company referred to in the first column of Part B of
Schedule 2 and, in the plural, means both of them;
	 
	 	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open in
London, Frankfurt, Athens, Piraeus (and, in relation to any day on which a payment is
required to be made to a Builder, also in Seoul) and, in respect of a day on which a payment
is required to be made under a Finance Document, also in New York City;
	 
	 	 	 	“Charter” means, in relation to a Ship, any time charterparty or other contract of
employment (other than the Initial Charter relative to the Ship) in respect of that Ship for
a term of more than 11 consecutive months in duration or any bareboat charter entered or to
be entered into by Borrower B or, as the case may be, the New Owner and an Approved
Charterer on such terms and conditions acceptable to the Lenders (in their sole and absolute
discretion) as the same may be amended, supplemented from time to time, and, in the plural,
means all of them;
	 
	 	 	 	“Charter Assignment” means, in relation to each Approved Charter, a deed of assignment of
the rights of Borrower B or, as the case may be, the New Owner in respect of that Approved
Charter and any guarantee of such Approved Charter (if such a guarantee is
provided to Borrower B or, as the case may be, the New Owner) in favour of the Security
Trustee, in the Agreed Form and, in the plural, means all of them;
	 
	 	 	 	“Charter Insurer” means the company listed as insurer in Part D of Schedule 2;
	 
	 	 	 	Commitment” means, in relation to a Lender, the amount set opposite its name in Schedule 1,
or, as the case may require, the amount specified in the relevant Transfer Certificate, as
that amount may be reduced, cancelled or terminated in accordance with this Agreement (and
“Total Commitments” means the aggregate of the Commitments of all the Lenders);
	 
	 	 	 	“Compliance Date” means 30 June and 31 December in each calendar year (or such other dates
as of which the Corporate Guarantor prepares the consolidated financial statements which it
is required to deliver to the Agent pursuant to Clause 11.6 of this Agreement);
	 
	 	 	 	“Compliance Certificate” means a certificate in the form set out in Schedule 6 (or in any
other form which the Agent, acting with the authorisation of all the Lenders, approves or
requires);
	 
	 	 	 	“Contractual Currency” has the meaning given in Clause 21.5;

7

 

	 	 	 	“Contribution” means, in relation to a Lender, the part of the Loan which is owing to that
Lender;
	 
	 	 	 	“Corporate Guarantor” means Navios Maritime Holdings Inc., a corporation incorporated under
the laws of the Marshall Islands and having its registered office at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, the Marshall Islands, MH 96960;
	 
	 	 	 	“Corporate Guarantee” means a guarantee to be given by the Corporate Guarantor in favour of
the Security Trustee guaranteeing the obligations of the Borrowers under this Agreement and
the other Finance Documents in the Agreed Form Provided however that during the validity of
both of the Initial Charters and as long as no Event of Default exists, the amount
guaranteed under such Corporate Guarantee shall be limited to 75 per cent. of the Secured
Liabilities;
	 
	 	 	 	“Credit Default Insurance” means in relation to each Initial Charter, the insurance
policy dated 10 October 2007 and entered into between the Corporate Guarantor and the
Charter Insurer as the same may be amended or supplemented from time to time;
	 
	 	 	 	“Credit Default Insurance Assignment” means in respect to both Ships an assignment of the
rights and benefits of the Corporate Guarantor under the Credit Default Insurance related to
the Ships in favour of the Security Trustee in the Agreed Form;
	 
	 	 	 	“Creditor Party” means the Agent, the Bookrunner, the Arranger, the Security Trustee or any
Lender, whether as at the date of this Agreement or at any later time;
	 
	 	 	 	“Drawdown Date” means, in relation to an Advance, the date on which that Advance has been
actually drawn by the Original Borrowers;
	 
	 	 	 	“Delivery Date” means, in respect of a Ship, the date on which title to and possession of
such Ship is transferred from the Seller A or the relevant Builder, as the case may be, to
the relevant Borrower pursuant to the Ship A MOA or the relevant Shipbuilding Contract;
	 
	 	 	 	“Dollars” and “$” means the lawful currency for the time being of the United States of
America;
	 
	 	 	 	“Drawdown Date” means, in relation to an Advance, the date requested by the Borrowers for
such Advance to be made, or (as the context requires) the date on which that Advance is
actually made;
	 
	 	 	 	“Drawdown Notice” means a notice in the form set out in Schedule 3 (or in any other form
which the Agent, acting with the authorisation of all the Lenders, approves or reasonably
requires);
	 
	 	 	 	“Earnings” means in relation to a Ship, all moneys whatsoever which are now, or later
become, payable (actually or contingently) to Borrower B or, as the case may be, the New
Owner or the Security Trustee and which arise out of the use or operation of such Ship,
including (but not limited to):

	 	(a)	 	all freight, hire and passage moneys, compensation payable to the Borrower
owning that Ship or the Security Trustee in the event of requisition of such Ship for
hire, remuneration for salvage and towage services, demurrage and detention

8

 

	 	 	 	moneys
and damages for breach (or payments for variation or termination) of any charterparty
or other contract for the employment of such Ship;
	 
	 	(b)	 	all moneys which are at any time payable under Insurances in respect of
loss of earnings including, without limitation, Credit Default Insurances in respect
of Initial Charter; and
	 
	 	(c)	 	if and whenever a Ship is employed on terms whereby any moneys falling
within paragraphs (a) or (b) above are pooled or shared with any other person, that
proportion of the net receipts of the relevant pooling or sharing arrangement which
is attributable to such Ship;

	 	 	“Earnings Account” means in relation to each Ship, an account in the name of Borrower B or
the New Owner, as the case may be, with the Account Bank in Piraeus, Greece designated “name
of the Borrower B or, as the case may be, the New Owner- Earnings Account” or any other
account (with that or another office of the Account Bank) which is designated by the Agent
as the Earnings Account in relation to each Ship for the purposes of this Agreement and, in
the plural, means both of them;
	 
	 	 	“Environmental Claim” means:

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

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

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

	 	 	“Environmental Law” means any law relating to pollution or protection of the environment, to
the carriage of Environmentally Sensitive Material or to actual or threatened releases of
Environmentally Sensitive Material;

9

 

	 	 	“Environmentally Sensitive Material” means oil, oil products and any other substance
(including any chemical, gas or other hazardous or noxious substance) which is (or is
capable of being or becoming) polluting, toxic or hazardous;
	 
	 	 	“Event of Default” means any of the events or circumstances described in Clause 19.1;
	 
	 	 	“First Deed of Accession, Amendment, Restatement and Release” means the deed of accession,
amendment, restatement and release dated 25 May 2009 and made between, inter alios, (i)
Portorosa and surf, (ii) the Lenders, (iii) the Bookrunner, (iv) the Arranger, (v) the Agent
and (vi) the Security Trustee;
	 
	 	 	“Final Availability Date” means in relation to:

	 	(a)	 	the Ship A Advance, the Delivery Date of Ship A which occurred on 23 July 2009;
	 
	 	(b)	 	the Ship B Advance, the delivery date of NAVIOS POLLUX which occurred on
October 2010;

	 	 	“Final Maturity Date” means in relation each Advance 20 July 2019;
	 
	 	 	“Finance Documents” means:

	 	(a)	 	this Agreement;
	 
	 	(b)	 	the Agency and Trust Agreement;
	 
	 	(c)	 	the Corporate Guarantee;
	 
	 	(d)	 	the General Assignments;
	 
	 	(e)	 	the Assignments of Warranty Claims;
	 
	 	(f)	 	the Accounts Pledges;
	 
	 	(g)	 	the Mortgages;
	 
	 	(h)	 	the Charter Assignments;
	 
	 	(i)	 	the Managers’ Undertakings;
	 
	 	(j)	 	the Credit Default Insurance Assignment;
	 
	 	(k)	 	the New Guarantee; and
	 
	 	(l)	 	any other document (whether creating a Security Interest or not) which is
executed at any time by any Borrower, the Corporate Guarantor or any other person as
security for, or to establish any form of subordination or priorities arrangement in
relation to, any amount payable to the Lenders under this Agreement or any of the other
documents referred to in this definition;

	 	 	“Financial Indebtedness” means, in relation to a person (the “debtor”), a liability of the
debtor (in the case of the Corporate Guarantor, a liability in excess of $7,000,000):

	 	(a)	 	for principal, interest or any other sum payable in respect of any moneys
borrowed or raised by the debtor;

10

 

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

	 	 	“Financial Year” means, in relation to the Corporate Guarantor, each period of 1 year
commencing on 1 January in respect of which its audited accounts are or ought to be
prepared;
	 
	 	 	“First Ship A MOA” means the relevant memorandum of agreement in respect of Ship A
described in Part B of Schedule 2, as the same has been supplemented and/or amended;
	 
	 	 	“General Assignment” means, in relation to each Ship, a general assignment of the
Earnings, the Insurances and any Requisition Compensation of such Ship executed by the New
Owner or to be executed by Borrower B, as the case may be, in favour of the Security
Trustee in the Agreed Form and, in the plural, means both of them;
	 
	 	 	“Group” means the Corporate Guarantor and its subsidiaries (whether direct or indirect and
including, but not limited to, each Borrower, the New Owner and the Approved Manager) from
time to time during the Security Period but excluding any publicly listed companies and
“member of the Group” shall be construed accordingly;
	 
	 	 	“IACS” means the International Association of Classification Societies;
	 
	 	 	“Indenture” means the Indenture dated as of 18 December 2006 issued by the Corporate
Guarantor and others for 91/2% Senior Notes due on 18 December 2014;
	 
	 	 	“Indenture Excerpt” means the excerpt from the Indenture set out in Schedule 7;
	 
	 	 	“Initial Charter” means, in relation to:

	 	(d)	 	Ship A, the Ship A Charter; and
	 
	 	(e)	 	Ship B, the Ship B Charter, and, in the plural, means both of them;

	 	 	“Initial Market Value” means, in relation to each Ship, the Market Value thereof as at the
Drawdown Date of the Advance related to such Ship, or at the date of the relevant Mortgage
on such Ship has been granted in favour of the Security Trustee, determined in accordance
with the valuations referred to in paragraph 6 of Part B of Schedule 4;
	 
	 	 	“Insurances” means in relation to each Ship:

11

 

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

	 	 	“Interest Period” means a period determined in accordance with Clause 6;
	 
	 	 	“ISM Code” means, in relation to its application to the relevant Approved Manager, Borrower
B or the New Owner and its Ship and its operation:

	 	(a)	 	‘The International Management Code for the Safe Operation of Ships and for
Pollution Prevention’, currently known or referred to as the ‘ISM Code’, adopted by the
Assembly of the International Maritime Organisation by Resolution A.741(18) on 4
November 1993 and incorporated on 19 May 1994 into chapter IX of the International
Convention for the Safety of Life at Sea 1974 (SOLAS 1974); and
	 
	 	(b)	 	all further resolutions, circulars, codes, guidelines, regulations and
recommendations which are now or in the future issued by or on behalf of the
International Maritime Organisation or any other entity with responsibility for
implementing the ISM Code, including without limitation, the ‘Guidelines on
implementation or administering of the International Safety Management (ISM) Code by
Administrations’ produced by the International Maritime Organisation pursuant to
Resolution A.788(19) adopted on 25 November 1995,

	 	 	as the same may be amended, supplemented or replaced from time to time;
	 
	 	 	“ISM Code Documentation” includes:

	 	(a)	 	the document of compliance (DOC) and safety management certificate (SMC) issued
pursuant to the ISM Code in relation to the Ships or any of them within the periods
specified by the ISM Code; and
	 
	 	(b)	 	all other documents and data which are relevant to the ISM SMS and its
implementation and verification which the Agent may require; and
	 
	 	(c)	 	any other documents which are prepared or which are otherwise relevant to
establish and maintain the Ships’ compliance or the compliance of Borrower B and the
New Owner (or either of them) with the ISM Code which the Agent may require;

	 	 	“ISM SMS” means, in relation to each Ship, the safety management system for such Ship which
is required to be developed, implemented and maintained by Borrower B or, as the case may
be, the New Owner under the ISM Code;
	 
	 	 	“ISPS Code” means the International Ship and Port Facility Security Code constituted
pursuant to resolution A.924(22) of the International Maritime Organisation (“IMO”) now set
out in Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS) 1974 (as amended) and
the mandatory ISPS Code as adopted by a Diplomatic Conference of the IMO on Maritime
Security in December 2002 and includes any amendments or extensions to it and any regulation
issued pursuant to it but shall only apply insofar as it is applicable law in each Ship’s
flag state and any jurisdiction on which a Ship is operated;

12

 

	 	 	“ISPS Code Documentation” includes:

	 	(a)	 	the International Ship Security Certificate issued pursuant to the ISPS Code in
relation to each Ship within the period specified in the ISPS Code; and
	 
	 	(b)	 	all other documents and data which are relevant to the ISPS Code and its
implementation and verification which the Agent may require;

	 	 	“ISSC” means a valid and current international ship security certificate issued under the
ISPS Code;
	 
	 	 	“Lender” means, subject to Clause 27.6:

	 	(a)	 	a bank or financial institution listed in Schedule 1 and acting through its
branch indicated in Schedule 1 (or through another branch notified to the Agent under
Clause 27.14) unless it has delivered a Transfer Certificate or Certificates covering
the entire amounts of its Commitment and its Contribution; and
	 
	 	(b)	 	the holder for the time being of a Transfer Certificate;

	 	 	(and includes their respective successors);
	 
	 	 	“LIBOR” means, for an Interest Period:

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

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

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

13

 

	 	 	“Management Agreement” means, in relation to each Ship, an agreement made or to be made
between (i) Borrower B or, as the case may be, the New Owner and (ii) the Approved Manager
in respect of the commercial and technical management of that Ship to be in form and
substance in all respects acceptable to the Lenders and, in the plural, means both of them;
	 
	 	 	“Manager’s Undertaking” means, in relation to each Ship, the letter of undertaking executed
or to be executed by the Approved Manager in favour of the Security Trustee in the Agreed
Form agreeing certain matters in relation to the commercial and technical management of such
Ship and subordinating the rights of the Approved Manager against such Ship and Borrower B
or, as the case may be, the New Owner to the rights of the Creditor Parties under the
Finance Documents and, in the plural, means both of them;
	 
	 	 	“Margin” means, 1.90 per cent. per annum;
	 
	 	 	“Market Value” means, in respect of each Ship, the market value thereof determined from time
to time in accordance with Clause 15.3;
	 
	 	 	“Material Adverse Change” means any event or series of events which, in the opinion of the
Majority Lenders, is likely to have a Material Adverse Effect;
	 
	 	 	“Material Adverse Effect” means a material adverse effect on:

	 	(a)	 	the business, property, assets, liabilities, operations or condition (financial
or otherwise) of the Borrowers and/or any Security Party taken as a whole;
	 
	 	(b)	 	the ability of either Borrower and/or any Security Party to (i) perform any of
its obligations or (ii) discharge any of its liabilities, under any Finance Document as
they fall due; or
	 
	 	(c)	 	the validity or enforceability of any Finance Document;

	 	 	“Mortgage” means, in relation to:

	 	(a)	 	Ship A, the first priority Maltese ship mortgage and collateral deed of
covenant on that Ship both dated 23 July 2009 granted by the New Owner in favour of the
Security Trustee, as the same shall be amended and supplemented by and addendum to the
first priority Maltese mortgage and addendum to the collateral deed of covenants in
eacg case to be in the Agreed Form, both to be granted by the New Owner in favour of
the Security Trustee; and
	 
	 	(b)	 	Ship B, a first preferred or as the case may be, priority ship mortgage on Ship
B under the relevant Approved Flag (and including any collateral deed of covenant if
required under the laws of the relevant Approved Flag State) executed or to be executed
by Borrower B in favour of the Security Trustee, in each case to be in the Agreed Form

	 	 	and, in the plural, means both of them;
	 
	 	 	“NAVIOS POLLUX” means the M.V. NAVIOS POLLUX now sold and released from its obligations
under the Agreement and the finance documents executed at the time but at the time
registered in the ownership of Surf under Panamanian flag;
	 
	 	 	“Negotiation Period” has the meaning given in Clause 5.10;

14

 

	 	 	“New Deed of Accession, Amendment, Restatement and Release” means the new deed of accession,
amendment and restatement dated October 2010 and made between, inter alios, (i) the
Borrowers, (the Corporate Guarantor and the New Owner, (iii) the Lenders, (iv) the
Bookrunner, (v) the Arranger, (vi) the Agent and (vii) the Security Trustee setting out the
terms and conditions upon which this Agreement has been amended and restated;
	 
	 	 	“New Guarantee” means the guarantee of the obligations of the Borrowers under the Loan
Agreement executed or to be executed by the New Owner in favour of the Lender in such form
as the Lender may approve or require;
	 
	 	 	“New Owner” means Kleimar Naamloze Vennootschap (Kleimar N.V.) organised and existing under
the laws of Belgium and having its registered office at 5 Suikerrui, Antwerp, 2000 Belgium;
and
	 
	 	 	“New Ship A MOA” means the memorandum of agreement in respect of Ship A entered entered into
between Borrower A as seller and the New Owner as buyer.
	 
	 	 	“Notifying Lender” has the meaning given in Clause 23.1 or Clause 24.1 as the context
requires;
	 
	 	 	“Payment Currency” has the meaning given in Clause 21.5;
	 
	 	 	“Permitted Security Interests” means:

	 	(a)	 	Security Interests created by the Finance Documents;
	 
	 	(b)	 	liens for unpaid master’s and crew’s wages in accordance with usual maritime
practice;
	 
	 	(c)	 	liens for salvage;
	 
	 	(d)	 	liens arising by operation of law for not more than 2 months’ prepaid hire
under any charter in relation to any Ship not prohibited by this Agreement;
	 
	 	(e)	 	liens for master’s disbursements incurred in the ordinary course of trading and
any other lien arising by operation of law or otherwise in the ordinary course of the
operation, repair or maintenance of a Ship, provided such liens do not secure amounts
more than 30 days overdue (unless the overdue amount is being contested by Borrower B
or, as the case may be, the New Owner in good faith by appropriate steps) and subject,
in the case of liens for repair or maintenance, to Clause 14.14(g);
	 
	 	(f)	 	any Security Interest created in favour of a plaintiff or defendant in any
proceedings or arbitration as security for costs and expenses where a Borrower is
actively prosecuting or defending such proceedings or arbitration in good faith;
	 
	 	(g)	 	Security Interests arising by operation of law in respect of taxes which are
not overdue for payment or in respect of taxes being contested in good faith by
appropriate steps and in respect of which appropriate reserves have been made; and
	 
	 	(h)	 	the Indenture;

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

	 	(a)	 	England and Wales;

15

 

	 	(b)	 	the country under the laws of which the company is incorporated or formed;
	 
	 	(c)	 	a country in which the company has the centre of its main interests or in which
the company’s central management and control is or has recently been exercised;
	 
	 	(d)	 	a country in which the overall net income of the company is subject to
corporation tax, income tax or any similar tax;
	 
	 	(e)	 	a country in which assets of the company (other than securities issued by, or
loans to, related companies) having a substantial value are situated, in which the
company maintains a branch or a permanent place of business, or in which a Security
Interest created by the company must or should be registered in order to ensure its
validity or priority; and
	 
	 	(f)	 	a country the courts of which have jurisdiction to make a winding up,
administration or similar order in relation to the company, whether as main or
territorial or ancillary proceedings, or which would have such jurisdiction if their
assistance were requested by the courts of a country referred to in paragraphs (b) or
(c);

	 	 	“Purchase Price” means in respect of Ship A the total amount of $120,000,000 payable to
Seller A pursuant to the Ship A MOA;
	 
	 	 	“Quotation Date” means, in relation to any Interest Period (or any other period for which an
interest rate is to be determined under any provision of a Finance Document), the day on
which quotations would ordinarily be given by leading banks in the London Interbank Market
for deposits in the currency in relation to which such rate is to be determined for delivery
on the first day of that Interest Period or other period;
	 
	 	 	“Relevant Person” has the meaning given in Clause 19.9;
	 
	 	 	“Repayment Date” means a date on which a repayment is required to be made under Clause 8;
	 
	 	 	“Requisition Compensation” includes, in relation to a Ship, all compensation or other moneys
payable by reason of any act or event such as is referred to in paragraph (b) of the
definition of “Total Loss”;
	 
	 	 	“Security Cover Ratio” means the ratio which is determined, at any time, by comparing the
aggregate of the amounts referred to in paragraphs (a) and (b) of Clause 15.1 against the
Loan at the relevant time;
	 
	 	 	“Secured Liabilities” means all liabilities which the Borrowers, the Security Parties or any
of them have, at the date of this Agreement or at any later time or times, under or in
connection with any Finance Document or any judgment relating to any Finance Document; and
for this purpose, there shall be disregarded any total or partial discharge of these
liabilities, or variation of their terms, which is effected by, or in connection with, any
bankruptcy, liquidation, arrangement or other procedure under the insolvency laws of any
country;
	 
	 	 	“Security Interest” means:

	 	(a)	 	a mortgage, charge (whether fixed or floating), pledge, assignment, trust,
trust receipt, consignment, any maritime or other lien of any kind;

16

 

	 	(b)	 	any other security interest of a kind not included in paragraph (a) of this
definition;
	 
	 	(c)	 	a conditional sale agreement (including an agreement to sell subject to
retention of title), hire purchase agreement, lease or contract of bailment that in
effect secures payment or performance of a liability or obligation;
	 
	 	(d)	 	right of set-off or flawed asset arrangement that in effect secures payment or
performance of a liability or obligation; and
	 
	 	(e)	 	without limiting the generality of the preceding paragraphs of this definition,
any other transaction or instrument that in substance or by operation of law, now or in
the future, creates an interest, right or claim in relation to property (real or
personal) that secures the payment or performance of a liability or obligation, without
regard to:

	 	(i)	 	the form of the transaction or instrument; or
	 
	 	(ii)	 	the identity of the person who has title to the relevant
property

	 	 	Provided however that, in the case of the Corporate Guarantor, Security Interest shall be
deemed to include any of the interests described under (a) to (e) (inclusive) above as long
as same constitute a Material Adverse Change;
	 
	 	 	“Security Party” means the Approved Manager, the Corporate Guarantor, the New Owner and any
other person (except a Creditor Party) who, as a surety or mortgagor, as a party to any
subordination or priorities arrangement, or in any similar capacity, executes a document
falling within the last paragraph of the definition of “Finance Documents”;
	 
	 	 	“Security Period” means the period commencing on the date of this Agreement and ending on
the date on which the Agent notifies the Borrowers, the Security Parties and the Lenders and
the other Creditor Parties that:

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

	 	 	“Security Trustee” means DekaBank Deutsche Girozentrale, acting in such capacity through
its office at Mainzer Landstraße 16, 60329 Frankfurt am Main, Germany, or any successor of
it appointed under clause 5 of the Agency and Trust Agreement;

17

 

	 	 	“Seller” means:in relation to Ship A, the company referred to in the second column of Part
B of Schedule 2 as the seller of Ship A (the “Seller”); and
	 
	 	 	“Ship A” means the ship described in Part A of Schedule 2;
	 
	 	 	“Ship A MOA” means the relevant memorandum of agreement in respect of Ship A described in
Part B of Schedule 2, as the same has been supplemented and/or amended;
	 
	 	 	“Ship A Shipbuilding Contract” means the shipbuilding contract in respect of Ship A
described in Part B of Schedule 2, as the same has been supplemented and/or amended;
	 
	 	 	“Ship A Advance” means an amount of up to $60,000,000 made available by the Lenders pursuant
to Clause 2.1(a) as that amount may be reduced, cancelled or terminated in accordance with
this Agreement or, where the context so requires, the principal amount of such Advance which
has been advanced and which is for the time being outstanding under this Agreement;
	 
	 	 	“Ship A Charter” means the time charterparty in respect of Ship A as described in Part C of
Schedule 2 as the same may be further supplemented and/or amended from time to time;
	 
	 	 	“Ship B” means the ship described in Part A of Schedule 2;
	 
	 	 	“Ship B Shipbuilding Contract” means the shipbuilding contract in respect of Ship B
described in Part B of Schedule 2, as the same may be further supplemented and/or amended
from time to time;
	 
	 	 	“Ship B Advance” means an amount of up to $60,000,000 made available by the Lenders pursuant
to Clause 2.1(b) as that amount may be reduced, cancelled or terminated in accordance with
this Agreement or, where the context so requires, the principal amount of such Advance which
has been advanced and which is for the time being outstanding under this Agreement;
	 
	 	 	“Ship B Charter” means the time charterparty in respect of Ship B as described in Part C of
Schedule 2, as the same may be further supplemented and/or amended from time to time;
	 
	 	 	“Ships” means, together, Ship A and Ship B and, in the singular, means either of them;
	 
	 	 	“Shipbuilding Contracts” means together, Ship A Shipbuilding Contract and Ship B
Shipbuilding Contract and, in the singular, means either of them;
	 
	 	 	“Summary of Terms” means the summary of terms dated 23 December 2008 issued by the
Agent and accepted by the Corporate Guarantor on 29 December 2008;
	 
	 	 	“Surf” means Surf Maritime Co., a corporation incorporated under the laws of the Republic of
the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, The Marshall Islands MH96960;
	 
	 	 	“Total Loss” means, in relation to each Ship:

	 	(a)	 	actual, constructive, compromised, agreed or arranged total loss of that Ship;
	 
	 	(b)	 	any expropriation, confiscation, requisition or acquisition of that Ship,
whether for full consideration, a consideration less than its proper value, a nominal
consideration or without any consideration, which is effected by any government

18

 

	 	 	 	or official authority or by any person or persons claiming to be or to represent a
government or official authority (excluding a requisition for hire for a fixed
period not exceeding 1 year without any right to an extension) unless it is within 1
month redelivered to the full control of Borrower B or, as the case may be, the New
Owner’s full control;

	 	(c)	 	any arrest, capture, seizure or detention of that Ship unless it is within 1
month redelivered to the full control of Borrower B or, as the case may be, the New
Owner’s full control, and excluding hijack, theft or piracy in which case the Ship will
be redelivered to the full control of Borrower B or, as the case may be, the New
Owner’s full control within 120 days;

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

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

	 	(i)	 	the date on which a notice of abandonment is given to the
insurers; and
	 
	 	(ii)	 	the date of any compromise, arrangement or agreement made by or
on behalf of Borrower B or, as the case may be, the New Owner with that Ship’s
insurers in which the insurers agree to treat that Ship as a total loss; and

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

	 	 	“Transfer Certificate” has the meaning given in Clause 27.2;
	 
	 	 	“Trust Property” has the meaning given in clause 3.1 of the Agency and Trust Agreement;
	 
	 	 	“US GAAP” means generally accepted accounting principles as from time to time in effect in
the United States of America; and
	 
	 	 	“Warranty Claims” means, in respect of each Shipbuilding Contract, the claims that the
relevant Borrower may have against the relevant Builder in respect of the warranty for the
relevant Ship provided by the relevant Builder pursuant to the terms of such Shipbuilding
Contract.
	 
	1.2	 	Construction of certain terms. In this Agreement:
	 
	 	 	“administration notice” means a notice appointing an administrator, a notice of intended
appointment and any other notice which is required by law (generally or in the case
concerned) to be filed with the court or given to a person prior to, or in connection with,
the appointment of an administrator;
	 
	 	 	“approved” means, for the purposes of Clause 13, approved in writing by the Agent;
	 
	 	 	“asset” includes every kind of property, asset, interest or right, including any present,
future or contingent right to any revenues or other payment;
	 
	 	 	“company” includes any partnership, joint venture and unincorporated association;

19

 

	 	 	“consent” includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration, notarisation and legalisation;
	 
	 	 	“contingent liability” means a liability which is not certain to arise and/or the amount of
which remains unascertained;
	 
	 	 	“document” includes a deed; also a letter, fax or telex;
	 
	 	 	“charter” means any Charter where any remaining duration shall be taken into account
especially for the purposes of calculating Market Value;
	 
	 	 	“excess risks” means, in relation to each Ship, the proportion of claims for general
average, salvage and salvage charges not recoverable under the hull and machinery policies
in respect of that Ship in consequence of its insured value being less than the value at
which that Ship is assessed for the purpose of such claims;
	 
	 	 	“expense” means any kind of cost, charge or expense (including all legal costs, charges and
expenses) and any applicable value added or other tax;
	 
	 	 	“law” includes any order or decree, any form of delegated legislation, any treaty or
international convention and any regulation or resolution of the Council of the European
Union, the European Commission, the United Nations or its Security Council;
	 
	 	 	“legal or administrative action” means any legal proceeding or arbitration and any
administrative or regulatory action or investigation;
	 
	 	 	“liability” includes every kind of debt or liability (present or future, certain or
contingent), whether incurred as principal or surety or otherwise;
	 
	 	 	“months” shall be construed in accordance with Clause 1.3;
	 
	 	 	“obligatory insurances” means, in relation to each Ship, all insurances effected, or which
Borrower B or, as the case may be, the New Owner is obliged to effect, under Clause 13 or
any other provision of this Agreement or another Finance Document;
	 
	 	 	“parent company” has the meaning given in Clause 1.4;
	 
	 	 	“person” includes any company; any state, political sub-division of a state and local or
municipal authority; and any international organisation;
	 
	 	 	“policy”, in relation to any insurance, includes a slip, cover note, certificate of entry or
other document evidencing the contract of insurance or its terms;
	 
	 	 	“protection and indemnity risks” means the usual risks covered by a protection and
indemnity association managed in London, including pollution risks and the proportion (if
any) of any sums payable to any other person or persons in case of collision which are not
recoverable under the hull and machinery policies by reason of the incorporation in them of
Clause 6 of the International Hull Clauses (1/11/02 or 1/11/03), clause 8 of the Institute
Time Clauses (Hulls) (1/11/95) or clause 8 of the Institute Time Clauses (Hulls) (1/10/83)
or the Institute Amended Running Down Clause (1/10/71) or any equivalent provision;

20

 

	 	 	“regulation” includes any regulation, rule, official directive, request or guideline
whether or not having the force of law of any governmental, intergovernmental or
supranational body, agency, department or regulatory, self-regulatory or other authority or
organisation;
	 
	 	 	“subsidiary” has the meaning given in Clause 1.4;
	 
	 	 	“successor” includes any person who is entitled (by assignment, novation, merger or
otherwise) to any other person’s rights under this Agreement or any other Finance Document
(or any interest in those rights) or who, as administrator, liquidator or otherwise, is
entitled to exercise those rights; and in particular references to a successor include a
person to whom those rights (or any interest in those rights) are transferred or pass as a
result of a merger, division, reconstruction or other reorganisation of it or any other
person;
	 
	 	 	“tax” includes any present or future tax, duty, impost, levy or charge of any kind
which is imposed by any state, any political sub-division of a state or any local or
municipal authority (including any such imposed in connection with exchange controls), and
any connected penalty, interest or fine; and
	 
	 	 	“war risks” includes the risk of mines and all risks excluded by clause 29 of the
International Hull Clauses (1/11/02 or 1/11/03), clause 24 of the Institute Time Clauses
(Hulls)(1/11/95) or clause 33 of the Institute Time Clauses (Hulls) (1/10/83).
	 
	1.3	 	Meaning of “month”. A period of one or more “months” ends on the day in the relevant
calendar month numerically corresponding to the day of the calendar month on which the period
started (“the numerically corresponding day”), but:
	 
	(a)	 	on the Business Day following the numerically corresponding day if the numerically
corresponding day is not a Business Day or, if there is no later Business Day in the same
calendar month, on the Business Day preceding the numerically corresponding day; or
	 
	(b)	 	on the last Business Day in the relevant calendar month, if the period started on the last
Business Day in a calendar month or if the last calendar month of the period has no
numerically corresponding day;
	 
	 	 	and “month” and “monthly” shall be construed accordingly.
	 
	1.4	 	Meaning of “subsidiary”. A company (S) is a subsidiary of another company (P) if:
	 
	(a)	 	a majority of the issued shares in S (or a majority of the issued shares in S which carry
unlimited rights to capital and income distributions) are directly owned by P or are
indirectly attributable to P; and
	 
	(b)	 	P has direct or indirect control over a majority of the voting rights attaching to the issued
            shares of S; or
	 
	(c)	 	P has the direct or indirect power to appoint or remove a majority of the directors of S; or
	 
	 	 	and any company of which S is a subsidiary is a parent company of S.
	 
	1.5	 	General Interpretation. In this Agreement:
	 
	(a)	 	references in Clause 1.1 to a Finance Document or any other document being in the form of a
particular appendix include references to that form with any modifications to that

21

 

	 	 	form which the Agent (with the authorisation of all the Lenders in the case of substantial
modifications) approves or reasonably requires;

	(b)	 	references to, or to a provision of, a Finance Document or any other document are references
to it as amended or supplemented, whether before the date of this Agreement or otherwise;
	 
	(c)	 	references to, or to a provision of, any law include any amendment, extension, re-enactment
or replacement, whether made before the date of this Agreement or otherwise;
	 
	(d)	 	words denoting the singular number shall include the plural and vice versa; and
	 
	(e)	 	Clauses 1.1 to 1.5 apply unless the contrary intention appears.
	 
	1.6	 	Headings. In interpreting a Finance Document or any provision of a Finance Document, all
clause, sub-clause and other headings in that and any other Finance Document shall be entirely
disregarded.
	 
	2	 	FACILITY
	 
	2.1	 	Amounts and purposes of Advances. Subject to the other provisions of this Agreement, the
Lenders made available the loan as follows:
	 
	(a)	 	the Ship A Advance has been advanced in the principal amount of up to the lesser of (i)
$60,000,000 and (ii) 60 per cent. of the Initial Market Value of Ship A and was made available
by the Lenders to the Borrowers for the purpose of assisting in financing part of the
acquisition cost of Ship A; and
	 
	(b)	 	the Ship B Advance has been advanced in the principal amount of up to the lesser of (i)
$60,000,000 and (ii) 60 per cent. of the Initial Market Value of NAVIOS POLLUX and was made
available by the Lenders for the purpose of assisting in financing part of the acquisition
cost of NAVIOS POLLUX.
	 
	2.2	 	Lenders’ participations in Advances. Subject to the other provisions of this Agreement, each
Lender has participated in each Advance in the proportion which, as at the relevant Drawdown
Date, its Commitment bears to the Total Commitments.
	 
	2.3	 	Purpose of Advances. The Borrowers hereby confirm to each Creditor Party that each Advance
was used only for the purpose stated in the preamble to this Agreement.
	 
	3	 	POSITION OF THE LENDERS
	 
	3.1	 	Interests of Lenders several. The rights of the Lenders under this Agreement are several.
	 
	3.2	 	Individual Lender’s right of action. Each Lender shall be entitled, having obtained the
prior consent of all the Lenders to sue for any amount which has become due and payable by the
Borrowers to it under this Agreement without joining the Agent, the Security Trustee or any
other Lender as additional parties in the proceedings.
	 
	3.3	 	Proceedings by individual Lender. No Lender may, without the prior consent of all the
Lenders, bring proceedings in respect of:
	 
	(a)	 	any other liability or obligation of the Borrowers or either of them or a Security Party
under or connected with a Finance Document; or

22

 

	(b)	 	any misrepresentation or breach of warranty by the Borrowers or wither of them or a Security
Party in or connected with a Finance Document.
	 
	3.4	 	Obligations of Lenders several. The obligations of the Lenders under this Agreement are
several; and a failure by a Lender to perform its obligations under this Agreement shall not
result in:
	 
	(a)	 	the obligations of any other Lender being increased; nor
	 
	(b)	 	any Borrower, any Security Party or any other Lender being discharged (in whole or in part)
from its obligations under any Finance Document,
	 
	 	 	and in no circumstances shall a Lender have any responsibility for a failure of another
Lender to perform its obligations under this Agreement.
	 
	3.5	 	Parties bound by certain actions of Majority Lenders. Each Lender, each Borrower and each
Security Party shall be bound by:
	 
	(a)	 	any determination made, or action taken, by the Majority Lenders under any provision of a
Finance Document;
	 
	(b)	 	any instruction or authorisation given by the Majority Lenders to the Agent or the Security
Trustee under or in connection with any Finance Document;
	 
	(c)	 	any action taken (or in good faith purportedly taken) by the Agent or the Security Trustee in
accordance with such an instruction or authorisation.
	 
	3.6	 	Reliance on action of Agent. However, the Borrowers and each Security Party:
	 
	(a)	 	shall be entitled to assume that the Majority Lenders have duly given any instruction or
authorisation which, under any provision of a Finance Document, is required in relation to any
action which the Agent has taken or is about to take; and
	 
	(b)	 	shall not be entitled to require any evidence that such an instruction or authorisation has
been given.
	 
	3.7	 	Construction. In Clauses 3.4 and 3.5 references to action taken include (without limitation)
the granting of any waiver or consent, an approval of any document and an agreement to any
matter.
	 
	4	 	DRAWDOWN
	 
	4.1	 	Advances drawn down. Both Advances have been drawn on the following dates and in the
following amounts:
	 
	(a)	 	Ship A Advance has been drawn in the amount of Dollars Sixty Million ($60,000,000) on the 20
July 2009 out of which Dollars Fifty Two Million ($52,000,000) remains outstanding; and
	 
	(b)	 	Ship B Advance has been drawn in the amount of Dollars Sixty Million ($60,000,000) on the 22
July 2010 out of which Dollars Thirty Nine Million ($39,000,000) remains outstanding.

23

 

	5	 	INTEREST
	 
	5.1	 	Payment of normal interest. Subject to the provisions of this Agreement, interest on each
Advance in respect of each Interest Period shall be paid by the Borrowers on the last day of
that Interest Period.
	 
	5.2	 	Normal rate of interest. Subject to the provisions of this Agreement, the rate of interest
on each Advance in respect of an Interest Period shall be the aggregate of (a) the Margin and
(b) LIBOR for that Interest Period Provided that where the Borrowers request, and the Lenders
agree to, an Interest Period of longer than twelve months, the applicable rate of interest
shall be the aggregate of the Margin and the fixed rate agreed between the Lenders and the
Borrowers and advised by the Agent to the Borrowers.
	 
	5.3	 	Payment of accrued interest. In the case of an Interest Period longer than 6 months, accrued
interest shall be paid every 6 months during that Interest Period and on the last day of that
Interest Period.
	 
	5.4	 	Notification of Interest Periods and rates of normal interest. The Agent shall notify the
Borrowers and each Lender of:
	 
	(a)	 	each rate of interest; and
	 
	(b)	 	the duration of each Interest Period;
	 
	 	 	as soon as reasonably practicable after each is determined.
	 
	5.5	 	Obligation of Lenders to quote. Each Lender shall use all reasonable efforts to supply any
quotation required of it for the purposes of fixing a rate of interest under this Agreement.
	 
	5.6	 	Absence of quotations by Lenders. If any Lender fails to supply a quotation when required,
the Agent shall determine the relevant rate of interest in accordance with the following
provisions of this Clause 5.
	 
	5.7	 	Market disruption. The following provisions of this Clause 5 apply if:
	 
	(a)	 	at least until 11.00 a.m. (London) time 1 Business Day before the start of an Interest
Period, any Lender notifies the Agent that LIBOR fixed by the Agent would not accurately
reflect the cost to that Lender of funding its Contribution (or any part of it) during the
Interest Period in the London Interbank Dollar Market at or about 11.00 a.m. (London time) on
the second Business day before the commencement of the Interest Period; or
	 
	(b)	 	at least until 11.00 a.m. (London time) 1 Business Day before the start of an Interest
Period, the Agent is notified by a Lender (the “Affected Lender”) that for any reason it is
unable to obtain Dollars in the London Interbank Market in order to fund its Contribution (or
any part of it) during the Interest Period.
	 
	5.8	 	Notification of market disruption. The Agent shall promptly notify the Borrowers and each of
the Lenders stating the circumstances falling within Clause 5.7 which have caused its notice
to be given.
	 
	5.9	 	Negotiation of alternative rate of interest. The Borrowers, the Agent and the Lenders or (as
the case may be) the Affected Lender shall use reasonable endeavours to agree, within the 30
days after the date on which the Agent serves its notice under Clause 5.8 (the “Negotiation
Period”), an alternative interest rate or (as the case may be) an alternative basis for the
Lenders or (as the case may be) the Affected Lender to fund or

24

 

	 	 	continue to fund their or its Contribution to the relevant Advance or Advances during the
Interest Period concerned.
	 
	5.10	 	Application of agreed alternative rate of interest. Any alternative interest rate or an
alternative basis which is agreed during the Negotiation Period shall take effect in
accordance with the terms agreed.
	 
	5.11	 	Alternative rate of interest in absence of agreement. If an alternative interest rate or
alternative basis is not agreed within the Negotiation Period, and the relevant circumstances
are continuing at the end of the Negotiation Period, then the Agent shall, with the agreement
of each Lender or (as the case may be) the Affected Lender, set an interest period and
interest rate representing the cost of funding of the Lenders or (as the case may be) the
Affected Lender in Dollars or in any available currency of their or its Contribution to the
relevant Advance or Advances plus the Margin Provided that they will provide the Borrowers
with supporting documentation; and the procedure provided for by this Clause 5.11
shall be repeated if the relevant circumstances are continuing at the end of the interest
period so set by the Agent.
	 
	5.12	 	Notice of prepayment. If the Borrowers do not agree with an interest rate set by the Agent
under Clause 5.11, the Borrowers may give the Agent not less than 15 Business Days’ notice of
their intention to prepay the relevant Advance or Advances at the end of the interest period
set by the Agent.
	 
	5.13	 	Prepayment; termination of Commitments. A notice under Clause 5.12 shall be irrevocable; the
Agent shall promptly notify the Lenders or (as the case may require) the Affected Lender of
the Borrowers’ notice of intended prepayment; and:
	 
	(a)	 	on the date on which the Agent serves that notice, the Total Commitments or (as the case may
require) the Commitment of the Affected Lender so far as they relate to the relevant Advance
or Advances shall be cancelled; and
	 
	(b)	 	on the last Business Day of the interest period set by the Agent, the Borrowers shall prepay
(without premium or penalty) the Loan or, as the case may be, the Affected Lender’s
Contribution, together with accrued interest thereon at the applicable rate plus the Margin
and, if the prepayment or repayment is not made on the last day of the interest period set by
the Agent, any sums payable under Clause 21.1(b).
	 
	5.14	 	Application of prepayment. The provisions of Clause 8 shall apply in relation to the
prepayment.
	 
	6	 	INTEREST PERIODS
	 
	6.1	 	Commencement of Interest Periods. The first Interest Period applicable to an Advance has
commenced on the Drawdown Date thereof and each subsequent Interest Period shall commence on
the expiry of the preceding Interest Period.
	 
	6.2	 	Duration of normal Interest Periods. Subject to Clauses 6.3 and 6.4, each Interest Period in
respect of each Advance shall be:
	 
	(a)	 	6 or 12 months as notified by the Borrowers to the Agent not later than 11.00 a.m. (Frankfurt
time) 3 Business Days before the commencement of the Interest Period; or
	 
	(b)	 	6 months, if the Borrowers fail to notify the Agent by the time specified in paragraph (a);
or
	 
	(c)	 	such other period as the Agent with the authorisation of the Lenders may agree with the
Borrowers.

25

 

	6.3	 	Duration of Interest Periods for repayment instalments. In respect of an amount due to be
repaid under Clause 8 on a particular Repayment Date, an Interest Period shall end on that
Repayment Date.
	 
	6.4	 	Non-availability of matching deposits for Interest Period selected. If, after the Borrowers
have selected and the Lenders have agreed an Interest Period longer than 6 months, any Lender
notifies the Agent by 11.00 a.m. (Frankfurt time) on the third Business Day before the
commencement of the Interest Period that it is not satisfied that deposits in Dollars for a
period equal to the Interest Period will be available to it in the London Interbank Market
when the Interest Period commences, the Interest Period shall be of 6 months.
	 
	7	 	DEFAULT INTEREST
	 
	7.1	 	Payment of default interest on overdue amounts. The Borrowers shall pay interest in
accordance with the following provisions of this Clause 7 on any amount payable by the
Borrowers or either of them under any Finance Document which the Agent, the Security Trustee
or the other designated payee does not receive on or before the relevant date, that is:
	 
	(a)	 	the date on which the Finance Documents provide that such amount is due for payment; or
	 
	(b)	 	if a Finance Document provides that such amount is payable on demand, the date on which the
demand is served; or
	 
	(c)	 	if such amount has become immediately due and payable under Clause 19.4, the date on which it
became immediately due and payable.
	 
	7.2	 	Default rate of interest. Interest shall accrue on an overdue amount from (and including)
the relevant date until the date of actual payment (as well after as before judgment) at the
rate per annum determined by the Agent to be 2 per cent. above:
	 
	(a)	 	in the case of an overdue amount of principal, the higher of the rates set out at Clauses 7.3
(a) and (b); or
	 
	(b)	 	in the case of any other overdue amount, the rate set out at Clause 7.3(b).
	 
	7.3	 	Calculation of default rate of interest. The rates referred to in Clause 7.2 are:
	 
	(a)	 	the rate applicable to the overdue principal amount immediately prior to the relevant date
(but only for any unexpired part of any then current Interest Period);
	 
	(b)	 	the Margin plus, in respect of successive periods of any duration (including at call) up to 3
months which the Agent may select from time to time:

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

	7.4	 	Notification of interest periods and default rates. The Agent shall promptly notify the
Lenders and the Borrowers of each interest rate determined by the Agent under Clause 7.3 and
of each period selected by the Agent for the purposes of paragraph (b) of that

26

 

	 	 	Clause; but this shall not be taken to imply that the Borrowers are liable to pay such
interest only with effect from the date of the Agent’s notification.
	 
	7.5	 	Payment of accrued default interest. Subject to the other provisions of this Agreement, any
interest due under this Clause shall be paid on the last day of the period by reference to
which it was determined; and the payment shall be made to the Agent for the account of the
Creditor Party to which the overdue amount is due.
	 
	7.6	 	Compounding of default interest. Any such interest which is not paid at the end of the
period by reference to which it was determined shall thereupon be compounded.
	 
	8	 	REPAYMENT AND PREPAYMENT
	 
	8.1	 	Amount of repayment instalments of Advance A. The Borrowers shall repay the outstanding
principal of Advance A by 18 consecutive semi-annual repayment instalments as follows:
	 
	(a)	 	in the case of the first and the second instalments in the amount of $4,000,000 each;
	 
	(b)	 	in the case of the third to the fifth instalments (inclusive) in the amount of $4,250,000
each;
	 
	(c)	 	in the case of the sixth to the eighth instalments (inclusive) in the amount of $4,500,000
each; and
	 
	(d)	 	in the case of the ninth to the eighteenth instalments (inclusive) in the amount of
$1,775,000 each;
	 
	8.2	 	Amount of repayment instalments of Advance B. The Borrowers shall repay the outstanding
principal of Advance B by 18 consecutive semi-annual repayment instalments as follows:
	 
	(a)	 	in the case of the first and the second instalments in the amount of $4,000,000 each;
	 
	(b)	 	in the case of the third to the fifth instalments (inclusive) in the amount of $4,250,000
each;
	 
	(c)	 	in the case of the sixth to the eighth instalments (inclusive) in the amount of $4,500,000
each; and
	 
	(d)	 	in the case of the ninth to the eighteenth instalments (inclusive) in the amount of $475,000
each;
	 
	8.3	 	Repayment Dates. The first instalment of each Advance shall be repaid on 20 January 2011,
each subsequent instalment shall be repaid at semi-annual intervals thereafter and the last
instalment of such Advance shall be repaid on the date falling on 20 July 2019.
	 
	8.4	 	Final Repayment Date. On the final Repayment Date, the Borrowers shall additionally pay to
the Agent for the account of the Creditor Parties all other sums then accrued or owing under
any Finance Document.
	 
	8.5	 	Voluntary prepayment. Subject to the following conditions, the Borrowers may prepay the
whole or any part of the Loan or any Advance on the last day of an Interest Period.
	 
	8.6	 	Conditions for voluntary prepayment. The conditions referred to in Clause 8.5 are that:
	 
	(a)	 	a partial prepayment shall be $1,000,000 or a multiple of $1,000,000

27

 

	(b)	 	the Agent has received from the Borrowers at least 5 Business Days’ prior written notice
specifying the amount to be prepaid and the date on which the prepayment is to be made; and
	 
	(c)	 	the Borrowers have provided evidence satisfactory to the Agent that any consent required by
the Borrowers or any of them or any Security Party in connection with the prepayment has been
obtained and remains in force, and that any regulation relevant to this Agreement which
affects a Borrower or any Security Party has been complied with;
	 
	8.7	 	Effect of notice of prepayment. A prepayment notice may not be withdrawn or amended without
the consent of the Agent, given with the authorisation of all the Lenders, and the amount
specified in the prepayment notice shall become due and payable by the Borrowers on the date
for prepayment specified in the prepayment notice.
	 
	8.8	 	Notification of notice of prepayment. The Agent shall notify the Lenders promptly upon
receiving a prepayment notice, and shall provide any Lender which so requests with a copy of
any document delivered by the Borrowers under Clause 8.6(c).
	 
	8.9	 	Mandatory prepayment. Without prejudice to the provisions of Clause 15, the Borrowers shall
be obliged to prepay the Advance related to a Ship if such Ship is sold, becomes a Total Loss
or is refinanced:
	 
	(a)	 	in the case of a sale, on or before the date on which the sale is completed by delivery of
such Ship to the buyer;
	 
	(b)	 	in the case of a Total Loss, on the earlier of the date falling 120 days after the Total Loss
Date and the date of receipt by the Security Trustee of the proceeds of insurance relating to
such Total Loss; or
	 
	(c)	 	in the case such Ship is refinanced, on the date on which the Mortgage is discharged to
enable such Ship to be refinanced
	 
	 	 	Provided however that if after such prepayment the Security Cover Ratio is less than the
ratio referred to in Clause 15.1, the Borrowers shall prepay such additional amount which,
after giving credit to the prepayment, results in the Security Cover Ratio being equal to
the Security Cover Ratio required to be maintained pursuant to Clause 15.1.
	 
	 	 	Subject to no Event of Default or any Potential Event of Default being in occurrence or
continuing at the time a prepayment is made under this Clause 8.9, any balance arising from
the proceeds of a Ship which is sold or becomes a Total Loss after the prepayment required
by this Clause 8.9 has been made shall be released to the Borrowers or to such other person
as the Borrowers may direct.
	 
	8.10	 	Amounts payable on prepayment. A prepayment shall be made together with accrued interest
(and any other amount payable under Clause 21 or otherwise) in respect of the amount prepaid
and, if the prepayment is not made on the last day of an Interest Period together with any
sums payable under Clause 21.1(b) but without premium or penalty.
	 
	8.11	 	Prepayment Fee. If an Advance is prepaid as a result of a sale or refinancing of a Ship by a
bank or financial institution (other than the Lender) on or prior to the sixth anniversary of
the second Drawdown Date, the Borrowers shall pay, together with such prepaid amount, to the
Agent a prepayment fee equal to the 0.50 per cent of the amount of such Advance immediately
prior to such prepayment.
	 
	8.12	 	Application of partial prepayment. Each partial prepayment shall be applied:

28

 

	(a)	 	if made pursuant to Clause 8.5, against the repayment instalments specified in Clauses 8.1
and 8.2 pro rata;
	 
	(b)	 	if made pursuant to Clause 8.9, first towards full repayment of the Advance related to the
Ship being sold, refinanced or becoming a Total Loss and thereafter towards pro rata reduction
of the repayment instalments of the other Advance specified in Clause 8.1 or 8.2 as the case
may be.
	 
	8.13	 	No reborrowing. No amount prepaid may be reborrowed.
	 
	9	 	CONDITIONS PRECEDENT
	 
	9.1	 	Documents, fees and no default. Each Lender’s obligation to contribute to an Advance was
subject to the following conditions precedent:
	 
	(a)	 	that, on or before the service of the Drawdown Notice relative to Advance A drawn down, the
Agent received the documents described in Part A of Schedule 4 in form and substance
satisfactory to the Agent and its lawyers;
	 
	(b)	 	that, on the Drawdown Date of any Advance but prior to such Advance, the Agent received the
documents described in Part B of Schedule 4 in form and substance satisfactory to it and its
lawyers;
	 
	(c)	 	that, on the Drawdown Date of each Advance, the Agent received the fees referred to in Clause
20.1 related to such Advance and has received payment of the expenses referred to in Clause
20.2; and
	 
	(d)	 	that both at the date of each Drawdown Notice and at each Drawdown Date:

	 	(i)	 	no Event of Default has occurred and is continuing or would result from the
borrowing of the relevant Advance;
	 
	 	(ii)	 	the representations and warranties in Clause 10 and those of a Borrower or any
Security Party which are set out in the other Finance Documents were true and not
misleading if repeated on each of those dates with reference to the circumstances then
existing; and
	 
	 	(iii)	 	none of the circumstances contemplated by Clause 5.7 has occurred and was
continuing; and
	 
	 	(iv)	 	there has been no Material Adverse Change in the financial condition, state of
affairs or prospects of the Borrowers or either of them or the Corporate Guarantor or
the New Owner from that applying at the date of this Agreement;

	(e)	 	that, if the ratio set out in Clause 15.1 were applied immediately following the making of
the relevant Advance, the Borrowers were not be obliged to provide additional security or
prepay part of the Loan under that Clause;
	 
	(f)	 	that the Agent has received, and found to be acceptable to it, any further opinions,
consents, agreements and documents in connection with the Finance Documents which the Agent
has, with the authorisation of all the Lenders, requested by notice to the Borrowers prior to
the relevant Drawdown Date.
	 
	10	 	REPRESENTATIONS AND WARRANTIES
	 
	10.1	 	General. Each Borrower represents and warrants to each Creditor Party as follows.

29

 

	10.2	 	Status. Each Borrower is duly incorporated and validly existing and in good standing under
the laws of the Republic of Marshall Islands;
	 
	10.3	 	Share capital and ownership. Each Borrower has an authorised share capital of 500 registered
and/or bearer shares without par value, all of which shares have been issued in registered
form and are wholly owned directly or indirectly by the Corporate Guarantor and all those
 shares are held free of any Security Interest or other claim.
	 
	10.4	 	Corporate power. Each Borrower has the corporate capacity, and has taken all corporate
action and obtained all consents necessary for it:
	 
	(a)	 	to execute the Ship A MOA or the relevant Ship Shipbuilding Contract, as the case may be, to
purchase and pay for its Ship under the Ship A MOA or relevant Shipbuilding Contract ,as the
case may be, and register its Ship in its name under an Approved Flag;
	 
	(b)	 	to enter into, and perform its obligations under, the Approved Charter to which it is a party
	 
	(c)	 	to execute the Finance Documents to which it is a party; and
	 
	(d)	 	to borrow and/or to undertake liabilities under this Agreement and to make all the payments
contemplated by, and to comply with, those Finance Documents to which such Borrower is a
party.
	 
	10.5	 	Consents in force. All the consents referred to in Clause 10.4 remain in force and nothing
has occurred which makes any of them liable to revocation.
	 
	10.6	 	Legal validity; effective Security Interests. The Finance Documents to which a Borrower is a
party, do now or, as the case may be, will, upon execution and delivery (and, where
applicable, registration as provided for in the Finance Documents):
	 
	(a)	 	constitute such Borrower’s legal, valid and binding obligations enforceable against such
Borrower in accordance with their respective terms; and
	 
	(b)	 	create legal, valid and binding Security Interests enforceable in accordance with their
respective terms over all the assets to which they, by their terms, relate,
	 
	 	 	subject to any relevant insolvency laws affecting creditors’ rights generally.
	 
	10.7	 	No third party Security Interests. Without limiting the generality of Clause 10.6, at the
time of the execution and delivery of each Finance Document to which each Borrower is a party
except for Permitted Security Interests:
	 
	(a)	 	such Borrower will have the right to create all the Security Interests which that Finance
Document purports to create; and
	 
	(b)	 	no third party will have any Security Interest (except for Permitted Security Interests) or
any other interest, right or claim over, in or in relation to any asset to which any such
Security Interest, by its terms, relates.
	 
	10.8	 	No conflicts. The execution by each Borrower of each Finance Document to which it is a party
and the borrowing by that Borrower of the Loan, and its compliance with each Finance Document
will not involve or lead to a contravention of:
	 
	(a)	 	any law or regulation; or
	 
	(b)	 	the constitutional documents of that Borrower; or

30

 

	(c)	 	any contractual or other obligation or restriction which is binding on that Borrower or any
of its assets,
	 
	 	 	and will not have a Material Adverse Effect.
	 
	10.9	 	Subordination of Indenture. The obligations of:
	 
	(a)	 	the Borrowers, if any, under the Indenture and the Notes or the Guarantees (as each term
is defined in the Indenture) issued thereunder are fully subordinated to the obligations of
the Borrowers under this Agreement and the other Finance Documents to the extent of the value
of the assets securing this Agreement; and
	 
	(b)	 	the Corporate Guarantor, under the Indenture and the Notes (as such term is defined in the
Indenture) issued thereunder are fully subordinated to the obligations of the Corporate
Guarantor under the Corporate Guarantee to the extent of the value of the assets securing this
Agreement.
	 
	10.10	 	No withholding taxes. All payments which a Borrower is liable to make under the Finance
Documents may be made without deduction or withholding for or on account of any tax payable
under any law of any Pertinent Jurisdiction.
	 
	10.11	 	No default. No Event of Default has occurred and is continuing.
	 
	10.12	 	Information. All information which has been provided in writing by or on behalf of the
Borrowers or any Security Party to any Creditor Party in connection with any Finance Document
satisfied the requirements of Clause 11.5; all audited and unaudited accounts which have been
so provided satisfied the requirements of Clause 11.7 and are true, correct and not misleading
and present fairly and accurately the financial position of the Borrowers; and there has been
no change in the financial position or state of affairs of any Borrower, or the Corporate
Guarantor or the New Owner from that disclosed in the latest of those accounts which is likely
to have a Material Adverse Effect.
	 
	10.13	 	No litigation. No legal or administrative action involving any Borrower or any Security
Party (including action relating to any alleged or actual breach of the ISM Code or the ISPS
Code) has been commenced or taken or, to any Borrower’s knowledge, is likely to be commenced
or taken which, in either case would be likely to have a Material Adverse Effect.
	 
	10.14	 	Validity and completeness of Initial Charters, the First Ship A MOA, Ship A MOA and
Shipbuilding Contracts.
	 
	(a)	 	The copies of each Initial Charter, the First Ship A MOA, the Ship A MOA and each
Shipbuilding Contract delivered to the Agent before the date of this Agreement are true and
complete copies;
	 
	(b)	 	each Initial Charter, the First Ship A MOA, the Ship A MOA and each Shipbuilding Contract
constitutes valid, binding and enforceable obligations of the Builder and the relevant
Approved Charterer, the seller under the First Ship A MOA, the Seller A and the Borrower
which is party to it respectively in accordance with its terms;
	 
	(c)	 	none of the Builders, the relevant Approved Charterer under each Initial Charter, the seller
under the First Ship A MOA, the Seller A nor either of the Borrowers is in breach of its
respective obligations under the terms of each Initial Charter, the Ship A MOA, the First Ship
A MOA and each Shipbuilding Contract; and
	 
	(d)	 	other than those already advised to the Agent and which have been documented prior to the
date of this Agreement, no amendments or additions to either Initial Charter or the Ship A
MOA or the First Ship A MOA or either Shipbuilding Contracts have been agreed

31

 

	 	 	nor have the
Borrowers, the relevant Approved Charterer, the seller under the First Ship A MOA, the Seller
A and the Builder (or any of them) waived any of their respective rights under either Initial
Charter or the Ship A MOA or the First Ship A MOA or either Shipbuilding Contract.

	10.15	 	No rebates, etc. There is no agreement or understanding to allow or pay any rebate,
premium, commission, discount or other benefit or payment (howsoever described) to a Borrower,
an Approved Charterer, the seller under the First Ship A MOA, the Seller A or the Builder or
any third party in connection with the purchase by Borrower A of Ship A at the Purchase Price
of the chartering of a Ship other than as disclosed to the Agent in writing on or prior to the
date of this Agreement.
	 
	10.16	 	Compliance with certain undertakings. At the date of this Agreement, each Borrower is in
compliance with Clauses 11.2, 11.4, 11.9 and 11.14.
	 
	10.17	 	Taxes paid. Each Borrower has paid all taxes applicable to, or imposed on or in relation to
such Borrower, its business or its Ship.
	 
	10.18	 	ISM Code and ISPS Code compliance. All requirements of the ISM Code and the ISPS Code as
they relate to a Borrower, the New Owner, the Approved Manager and a Ship shall be or have
been complied on or prior to the Delivery Date of that Ship.
	 
	10.19	 	No Money laundering. Each Borrower:
	 
	(a)	 	will not, and will procure that no Security Party, to the extent applicable, will, in
connection with this Agreement or any of the other Finance Documents, contravene or permit any
subsidiary to contravene, any law, official requirement or other regulatory measure or
procedure implemented to combat “money laundering” (as defined in Article 1 of the Directive
(91/308/EEC) of the Council of the European Communities) and comparable United States Federal
and state laws. Each Borrower shall further submit any documents and declarations on request,
if such documents or declarations are required by any Creditor Party to comply with its
domestic money laundering and/or legal identification requirements; and
	 
	(b)	 	confirm that it is the beneficiary within the meaning of Section 8 of the German Anti Money
Laundering Act (Gesetz über das Aufspüren von Gewinnen aus schweren Straftaten
(Geldwäschegesetz)), with such Borrower acting for its own account and not for or on behalf of
any other person for each part of the Loan made or to be made available to it under this
Agreement. That is to say, it acts for its own account and not for or on behalf of anyone
else and under its full responsibility and exclusively for the purposes specified in this
Agreement.
	 
	 	 	Each Borrower will promptly inform the Agent by written notice, if it ceases to be a
beneficiary and will provide in writing the name and address of the beneficiary.
	 
	 	 	The Agent shall promptly notify the Lenders of any written notice it receives under this
Clause 10.18.
	 
	11	 	GENERAL UNDERTAKINGS
	 
	11.1	 	General. Each Borrower undertakes with each Creditor Party to comply with the following
provisions of this Clause 11 at all times during the Security Period except as the Agent may,
with the authorisation of the Majority Lenders, otherwise permit.
	 
	11.2	 	Title; negative pledge and pari passu ranking. Each Borrower will:
	 
	(a)	 	hold the legal title to, and own the entire beneficial interest in:

32

 

	 	(i)	 	from the date hereof, the Approved Charter, the Ship A MOA and the relevant
Shipbuilding Contract to which it is a party; and
	 
	 	(ii)	 	the Ship it is acquiring and her Insurances and her Earnings from the Delivery
Date applicable thereto and at all times thereafter, its Ship,

	 	 	free from all Security Interests and other interests and rights of every kind, except for
those created by the Finance Documents and the effect of assignments contained in the
Finance Documents;
	 
	(b)	 	not create or permit to arise any Security Interest (except for Permitted Security Interests)
over any other asset, present or future; and
	 
	(c)	 	procure that its liabilities under the Finance Documents to which it is a party do and will
rank at least pari passu with all its other present and future unsecured liabilities, except
for liabilities which are mandatorily preferred by law.
	 
	11.3	 	No disposal of assets. Neither Borrower will transfer, lease or otherwise dispose of:
	 
	(a)	 	all or a substantial part of its assets, whether by one transaction or a number of
transactions, whether related or not; or
	 
	(b)	 	any debt payable to it or any other right (present, future or contingent right) to receive a
payment, including any right to damages or compensation.
	 
	11.4	 	No other liabilities or obligations to be incurred. Neither Borrower will incur any
liability or obligation except liabilities and obligations under the Shipbuilding Contract and
the Finance Documents to which it is a party and liabilities or obligations reasonably
incurred in the ordinary course of its business of operating and chartering its Ship and all
other matters reasonably incidental thereto.
	 
	11.5	 	Information provided to be accurate. All financial and other information which is provided
in writing by or on behalf of a Borrower under or in connection with any Finance Document will
be true and not misleading and will not omit any material fact or consideration.
	 
	11.6	 	Provision of financial statements. The Borrowers will send to the Agent:
	 
	(a)	 	as soon as possible, but in no event later than 180 days after the end of each Financial Year
of the Borrowers (commencing with the Financial Year ended 31 December 2008) the annual
audited consolidated accounts of the Corporate Guarantor (excluding the accounts of other
public listed companies) for that Financial Year; and
	 
	(b)	 	as soon as possible, but in no event later than 90 days after the end of each financial
quarter in each Financial Year of the Borrowers ending on 31 March, 30 June, and 30 September
(commencing with the financial statements for the financial quarter ending on 31 March 2009)
the unaudited consolidated quarterly accounts of the Corporate Guarantor which are certified
as to their correctness by the chief financial officer of the Corporate Guarantor; and
	 
	(c)	 	promptly after each request by the Agent, such further financial information about the
Borrowers, the Corporate Guarantor, the New Owner, the Approved Manager and the Corporate
Guarantor as the Agent may reasonably require.
	 
	11.7	 	Form of financial statements. All accounts (audited and unaudited) delivered under Clause
11.6 will:

33

 

	(a)	 	be prepared in accordance with all applicable laws and US GAAP consistently applied;
	 
	(b)	 	in the case of the annual audited accounts of the Corporate Guarantor, be audited by an
internationally renowned accounting firm whose report shall not include any material
qualifications;
	 
	(c)	 	give a true and fair view of the state of affairs of the relevant person at the date of those
accounts and of its profit for the period to which those accounts relate; and
	 
	(d)	 	fully disclose or provide for all significant liabilities of the Corporate Guarantor.
	 
	11.8	 	Consents. Each Borrower will maintain in force and promptly obtain or renew, and will
promptly send certified copies to the Agent of, all consents required:
	 
	(a)	 	for such Borrower to perform its obligations under any Finance Document to which it is a
party;
	 
	(b)	 	for the validity or enforceability of any Finance Document to which it is a party;
	 
	(c)	 	for such Borrower to continue to own and operate the Ship owned by it,
	 
	 	 	and such Borrower will comply with the terms of all such consents.
	 
	11.9	 	Maintenance of Security Interests. The Borrowers will:
	 
	(a)	 	at their own cost, do all that it reasonably can to ensure that any Finance Document validly
creates the obligations and the Security Interests which it purports to create; and
	 
	(b)	 	without limiting the generality of paragraph (a), at its own cost, promptly register, file,
record or enrol any Finance Document with any court or authority in all Pertinent
Jurisdictions, pay any stamp, registration or similar tax in all Pertinent Jurisdictions in
respect of any Finance Document, give any notice or take any other step which, in the opinion
of the Lenders, is or has become necessary or desirable for any Finance Document to be valid,
enforceable or admissible in evidence or to ensure or protect the priority of any Security
Interest which it creates.
	 
	11.10	 	Notification of litigation. Each Borrower will provide the Agent with details of any legal
or administrative action involving that Borrower, any Security Party, the Approved Manager or
any Ship, its Earnings or its Insurances exceeding $500,000 as soon as such action is
instituted or it becomes apparent to that Borrower that it is likely to be instituted, unless
it is clear to that Borrower and the Lenders that the legal or administrative action cannot be
considered material and relevant in the context of any Finance Document.
	 
	11.11	 	No amendment to the Ship A MOA or the relevant Shipbuilding Contract. Each Borrower agrees
not to enter into any amendment or supplement to, or waive or fail to enforce, the Ship A MOA
or the relevant Shipbuilding Contract to which it is a party or any of its provisions.
	 
	11.12	 	No amendment to the Approved Charters. Each Borrower will ensure that no Borrower shall
agree to any amendment or supplement to, or waive or fail to enforce, any Approved Charter to
which it is a party or any of its provisions.
	 
	11.13	 	Principal place of business. Each Borrower confirms that its business operation and
management shall be conducted as presently conducted and, throughout the Security Period, will
(i) maintain its place of business and keep its corporate documents and records, at the
address stated at Clause 29.2(a); and (ii) neither Borrower nor the Corporate Guarantor will
establish, or do anything as a result of which it would be deemed to have, a place of business
or operations or management effected from England or the United States of America.

34

 

	11.14	 	Notification of default. The Borrowers will notify the Agent as soon as a Borrower becomes
aware of:
	 
	(a)	 	the occurrence of an Event of Default; or
	 
	(b)	 	any matter which indicates that an Event of Default may have occurred,
	 
	 	 	and will keep the Agent fully up-to-date with all developments.
	 
	11.15	 	Provision of further information. The Borrowers will, as soon as practicable after
receiving the request, provide the Agent with any additional financial or other information
relating:
	 
	(a)	 	to the Borrowers, the Ships, the Earnings or the Insurances; or
	 
	(b)	 	to any other matter relevant to, or to any provision of, a Finance Document,
	 
	 	 	which may reasonably be requested by the Agent, the Security Trustee or any Lender at any
time.
	 
	11.16	 	Provision of copies and translation of documents. The Borrowers will supply the Agent with
a sufficient number of copies of the documents referred to above to provide 1 copy for each
Creditor Party; and if the Agent so requires in respect of any of those documents, the
Borrowers will provide a certified English translation prepared by a translator approved by
the Agent.
	 
	11.17	 	Charter Assignment. A Borrower shall, in the case it enters into a Charter, at the request
of the Agent, execute in favour of the Security Trustee a Charter Assignment in respect of
that Charter and shall deliver to the Agent such other documents equivalent to those referred
to at paragraphs 3, 4 and 5 of Part A of Schedule 4 hereof.
	 
	11.18	 	Financial Covenants. The Borrowers shall procure that:
	 
	(a)	 	the ratio of Consolidated Cash Flow (defined and applied as set out in the Indenture
Excerpt, which definition shall not be varied without the Lenders’ consent,
irrespective of any variation of the Indenture itself) to Fixed Charges (defined and applied
as set out in the Indenture Excerpt, which definition shall not be varied
without the Lenders’ consent, irrespective of any variation of the Indenture itself) on a 12
month trailing basis shall at all times be at least 2 to 1; and
	 
	(b)	 	Total Liabilities divided by the Total Assets (adjusted for market values of vessels
calculated in accordance with Clause 15.3) shall not exceed 75%.
	 
	 	 	For the purposes of this Clause 11.18 the following expressions shall have the following
meanings:
	 
	 	 	“Total Assets” and “Total Liabilities” means respectively the total assets and total
liabilities of the Corporate Guarantor as evidenced at any relevant time by its financial
statements as described in Clause 11.6, in which they shall have been calculated by
reference to the meanings assigned to them in accordance with US GAAP provided that the
value of any vessel shall be calculated in accordance with Clause 15.3 and not as set out in
the latest financial statements.
	 
	11.19	 	Indenture. The Borrowers shall procure that the Corporate Guarantor shall comply with all
of the obligations undertaken by the Corporate Guarantor under the Indenture which are set out
in the Indenture Excerpt and the Borrowers further agree that:

35

 

	(a)	 	any terms defined in the Indenture shall have those meanings when used in the Indenture
Excerpt;
	 
	(b)	 	no waiver or variation of any term of the Indenture by any person shall waive or vary the
Borrowers’ obligations hereunder to comply with the obligations in the Indenture Excerpt,
except with the consent of the Agent;
	 
	(c)	 	the Borrowers shall continue to be bound by their, or as the case may be, the Corporate
Guarantor’s obligations as set out in the Indenture Excerpt following a Covenant Defeasance
(as defined in the Indenture) or a Legal Defeasance (as defined in the Indenture) or other
termination or cancellation of the Indenture;
	 
	(d)	 	the Borrowers will not, and will procure that the Corporate Guarantor will not, vary any term
of the Indenture without the prior written consent of the Lenders.
	 
	11.20	 	Compliance Check. Compliance with these Financial Covenants contained in Clause 11.18 shall
be determined by reference (a) to the unaudited consolidated accounts for the first six months
in each Financial Year of the Corporate Guarantor and (b) to the audited consolidated accounts
for that Financial Year of the Corporate Guarantor for each Financial Year delivered to the
Agent pursuant to this Agreement. The Borrowers shall deliver to the Agent semi-annually, at
the same time they deliver the consolidated
accounts to the Agent pursuant to Clause 11.18, a Compliance Certificate signed by the chief
financial officer of the Corporate Guarantor.
	 
	11.21	 	General and administrative costs. The Borrowers and the Corporate Guarantor shall ensure
that the payment of all the general and administrative costs of the Borrowers and the New
Owner in connection with the ownership and operation of the Ships (including, without
limitation, the payment of the management fees pursuant to the Management Agreements) shall be
fully subordinated to the payment obligations of the Borrowers, the New Owner and the
Corporate Guarantor under this Agreement and the other Finance Documents throughout the
Security Period.
	 
	11.22	 	Know your customer. The Borrowers will provide to (or procure that there is sent to) the
Agent such documents and evidence as any Creditor Party shall require in relation to each of
the Borrowers or any Security Party, based on applicable laws and regulations and each
Creditor Party’s own internal guidelines relating to the verification of the identity and
knowledge of its customers.
	 
	12	 	CORPORATE UNDERTAKINGS
	 
	12.1	 	General. Each Borrower also undertakes with each Creditor Party to comply with the following
provisions of this Clause 12 at all times during the Security Period except as the Agent may,
with the authorisation of the Majority Lenders, otherwise permit.
	 
	12.2	 	Maintenance of status. Each Borrower will maintain its separate corporate existence and
remain in good standing under the laws of the Republic of the Marshall Islands.
	 
	12.3	 	Negative undertakings. No Borrower will:
	 
	(a)	 	change the nature of its business; or
	 
	(b)	 	provide any form of credit or financial assistance to:

	 	(i)	 	a person who is directly or indirectly interested in such Borrower’s share or
loan capital; or
	 
	 	(ii)	 	any company in or with which such a person is directly or indirectly interested
or connected,

36

 

	 	 	or enter into any transaction with or involving such a person or company on terms which are,
in any respect, less favourable to such Borrower than those which it could obtain in a
bargain made at arms’ length;
	 
	(c)	 	open or maintain any account with any bank or financial institution except accounts with the
Account Bank for the purposes of the Finance Documents;
	 
	(d)	 	acquire any shares or other securities other than US or UK Treasury bills and certificates of
deposit issued by major North American or European banks, or enter into any transaction in a
derivative;
	 
	(e)	 	issue, allot or grant any person a right or permit the occurrence of any Security Interest to
any shares in its capital or repurchase or reduce its issued share capital;
	 
	(f)	 	enter into any form of amalgamation, merger or de-merger or any form of reconstruction or
reorganisation; or
	 
	(g)	 	incur any further indebtedness or enter into any form of guarantee except indebtedness
reasonably incurred in the ordinary course of its business.
	 
	12.4	 	Ownership/Management. The Borrowers undertake to ensure that, throughout the Security Period
and without the prior written consent of the Agent, there shall be no change in the beneficial
ownership of any of the shares in either of the Borrowers or in the control or management of
either of the Borrowers except for changes approved in writing by the Agent or which result in
the shares being beneficially owned by a member of the Group.
	 
	12.5	 	Subordination of rights. The Borrower shall ensure and procure that all its obligations in
respect of any loan made available to it by any member of the Group shall be fully
subordinated to the rights of the Creditor Parties under the Finance Documents under terms and
conditions acceptable by the Agent (acting upon the instructions of the Majority Lenders):
	 
	13	 	INSURANCE
	 
	13.1	 	General. Each Borrower undertakes with each Creditor Party to comply with the following
provisions of this Clause 13 at all times during the Security Period (after a Ship has been
delivered to it pursuant to the relevant Shipbuilding Contract) except as the Agent may, with
the authorisation of the Majority the Lenders, otherwise permit.
	 
	13.2	 	Maintenance of obligatory insurances. Each Borrower shall keep the Ship owned by it insured
at the expense of such Borrower against:
	 
	(a)	 	fire and usual marine risks (including hull and machinery and excess risks);
	 
	(b)	 	war risks;
	 
	(c)	 	protection and indemnity risks;
	 
	(d)	 	in respect of the Initial Charters, Credit Default Insurance; and
	 
	(e)	 	any other risks against which the Security Trustee considers, having regard to practices and
other circumstances prevailing at the relevant time, it would in the opinion of the Security
Trustee be reasonable for such Borrower to insure and which are mutually agreed between the
Security Trustee and such Borrower.

37

 

	13.3	 	Terms of obligatory insurances. Each Borrower shall effect such insurances:
	 
	(a)	 	in Dollars;
	 
	(b)	 	in the case of fire and usual marine risks and war risks, in an amount on an agreed value
basis at least the greater of (i) the market value of its Ship and (ii) an amount so that the
aggregate insured values of the Ships at any time subject to a Mortgage is at least 120 per
cent. of the Loan; and
	 
	(c)	 	in the case of oil pollution liability risks, for an aggregate amount equal to the highest
level of cover from time to time available (for the time being $1,000,000,000) under basic
protection and indemnity club entry (with the international group of protection and indemnity
clubs) and in the international marine insurance market;
	 
	(d)	 	in relation to protection and indemnity risks in respect of the full tonnage of the Ship
owned by it; and
	 
	(e)	 	on such terms as shall from time to time be approved in writing by the Agent.
	 
	13.4	 	Further protections for the Creditor Parties. In addition to the terms set out in Clause
13.3, each Borrower shall procure that the obligatory insurances shall:
	 
	(a)	 	upon the occurrence of an Event of Default and while it is continuing (except in relation to
risks referred to in Clause 13.2(c)) , name (or be amended to name) the Security Trustee as
additional named assured for its rights and interests, warranted no operational interest and
with full waiver of rights of subrogation against the Lender, but without the Security Trustee
thereby being liable to pay (but having the right to pay) premiums, calls or other assessments
in respect of such insurance and shall procure that no other assured shall be additionally
named without the prior written consent of the Security Trustee;
	 
	(b)	 	name the Security Trustee as loss payee with such directions for payment as the Security
Trustee may specify;
	 
	(c)	 	provide that all payments by or on behalf of the insurers under the obligatory insurances to
the Security Trustee shall be made without set-off, counterclaim or deductions or condition
whatsoever;
	 
	(d)	 	provide that the insurers shall waive, to the fullest extent permitted by the applicable law,
their entitlement (if any) (whether by statute, common law, equity, or otherwise) to be
subrogated to the rights and remedies of the Security Trustee in respect of any rights or
interests (secured or not) held by or available to the Security Trustee in respect of the
Secured Liabilities, until the Secured Liabilities shall have been fully repaid and
discharged, except that the insurers shall not be restricted by the terms of this paragraph
(d) from making personal claims against persons (other than the Borrowers or any Creditor
Party) in circumstances where the insurers have fully discharged their liabilities and
obligations under the relevant obligatory insurances;
	 
	(e)	 	provide that such obligatory insurances shall be primary without right of contribution from
other insurances which may be carried by the Security Trustee;
	 
	(f)	 	provide that the Security Trustee may make proof of loss if such Borrower fails to do so; and
	 
	(g)	 	provide that if any obligatory insurance is cancelled, or if any substantial change is made
in the coverage which adversely affects the interest of the Security Trustee, or if any
obligatory insurance is allowed to lapse for non-payment of premium, such cancellation, charge
or lapse shall not be effective with respect to the Security Trustee for 14 days (or 7

38

 

	 	 	days in the case of war risks) after receipt by the Security Trustee of prior
written notice from the insurers of such cancellation, change or lapse.
	 
	13.5	 	Renewal of obligatory insurances. Each Borrower shall:
	 
	(a)	 	at least 14 days before the expiry of any obligatory insurance:

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

	(b)	 	at least 7 days before the expiry of any obligatory insurance, renew that obligatory
insurance; and
	 
	(c)	 	procure that the brokers and/or the war risks and protection and indemnity associations with
which such a renewal is effected shall promptly after the renewal notify the Security Trustee
in writing of the terms and conditions of the renewal.
	 
	13.6	 	Copies of policies; letters of undertaking. Each Borrower shall ensure that all brokers
provide the Security Trustee with pro forma copies of all policies relating to the obligatory
insurances which they are to effect or renew and of a letter or letters or undertaking in a
form required by the Lenders and including undertakings by the brokers that:
	 
	(a)	 	they will have endorsed on each policy, immediately upon issue, a loss payable clause and a
notice of assignment complying with the provisions of Clause 13.4;
	 
	(b)	 	they will hold such policies, and the benefit of such insurances, to the order of the
Security Trustee in accordance with the said loss payable clause;
	 
	(c)	 	they will advise the Security Trustee immediately of any material change to the terms of the
obligatory insurances;
	 
	(d)	 	they will notify the Security Trustee, not less than 7 days before the expiry of the
obligatory insurances, in the event of their not having received notice of renewal
instructions from such Borrower or its agents and, in the event of their receiving
instructions to renew, they will promptly notify the Security Trustee of the terms of the
instructions; and
	 
	(e)	 	they will not set off against any sum recoverable in respect of a claim relating to the Ship
owned by such Borrower under such obligatory insurances any premiums or other amounts due to
them or any other person whether in respect of the Ship owned by such Borrower or otherwise,
they waive any lien on the policies, or any sums received under them, which they might have in
respect of such premiums or other amounts, and they will not cancel such obligatory insurances
by reason of non-payment of such premiums or other amounts, and will arrange for a separate
policy to be issued in respect of the Ship owned buy such Borrower forthwith upon being so
requested by the Security Trustee.
	 
	13.7	 	Copies of certificates of entry. Each Borrower shall provide or ensure that any protection
and indemnity and/or war risks associations in which the Ship owned by such Borrower is
entered provides the Security Trustee with:
	 
	(a)	 	a certified copy of the certificate of entry for such Ship;

39

 

	(b)	 	a letter or letters of undertaking in such form as may be required by the Security Trustee;
	 
	(c)	 	a certified copy of each certificate of financial responsibility for pollution by oil or
other Environmentally Sensitive Material issued by the relevant certifying authority in
relation to such Ship;
	 
	(d)	 	where required to be issued under the terms of insurance/indemnity provided by such
Borrower’s protection and indemnity association, a certified copy of each United States of
America voyage quarterly declaration (or other similar document or documents) made by such
Borrower in relation to such Ship in accordance with the requirements of such protection and
indemnity association; and
	 
	(e)	 	a certified copy of each certificate of financial responsibility for pollution by oil or
other Environmentally Sensitive Material issued by the relevant certifying authority in
relation to such Ship.
	 
	13.8	 	Deposit of original policies. Each Borrower shall ensure that all policies relating to
obligatory insurances are deposited with the brokers through which the insurances are effected
or renewed.
	 
	13.9	 	Payment of premiums. Each Borrower shall punctually pay all premiums or other sums payable
in respect of the obligatory insurances and produce all relevant receipts when so required by
the Security Trustee.
	 
	13.10	 	Guarantees. Each Borrower shall ensure that any guarantees required by a protection and
indemnity or war risks association are promptly issued and remain in full force and effect.
	 
	13.11	 	Restrictions on employment. Neither Borrower shall employ its Ship nor permit her to be
employed, outside the cover provided by any obligatory insurances.
	 
	13.12	 	Compliance with terms of insurances. Neither Borrower shall do nor omit to do (nor permit
to be done or not to be done) any act or thing which would or might render any obligatory
insurance invalid, void, voidable or unenforceable or render any sum payable under an
obligatory insurance repayable in whole or in part; and, in particular:
	 
	(a)	 	each Borrower shall take all necessary action and comply with all requirements which may from
time to time be applicable to the obligatory insurances, and (without limiting the obligation
contained in Clause 13.7(c)) ensure that the obligatory insurances are not made subject to any
exclusions or qualifications to which the Security Trustee has not given its prior approval;
	 
	(b)	 	neither Borrower shall make any changes relating to the classification or classification
society or manager or operator of the Ship owned by such Borrower approved by the underwriters
of the obligatory insurances; and
	 
	(c)	 	neither Borrower shall employ the Ship owned by it, nor allow it to be employed, otherwise
than in conformity with the terms and conditions of the obligatory insurances, without first
obtaining the consent of the insurers and complying with any requirements (as to extra premium
or otherwise) which the insurers specify.
	 
	13.13	 	Alteration to terms of insurances. Neither Borrower shall make or agree to any alteration
to the terms of any obligatory insurance nor waive any right relating to any obligatory
insurance.
	 
	13.14	 	Settlement of claims. Neither Borrower shall settle, compromise or abandon any claim under
any obligatory insurance for Total Loss or for a Major Casualty, and shall do all

40

 

	 	 	things necessary and provide all documents, evidence and information to enable the Security
Trustee to collect or recover any moneys which at any time become payable in respect of the
obligatory insurances.
	 
	13.15	 	Provision of copies of communications. Following the occurrence of an Event of Default,
each Borrower shall provide the Security Trustee, at the time of each such communication,
copies of all written communications between that Borrower and:
	 
	(a)	 	the approved brokers; and
	 
	(b)	 	the approved protection and indemnity and/or war risks associations; and
	 
	(c)	 	the approved insurance companies and/or underwriters;
	 
	 	 	which relate directly or indirectly to:

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

	13.16	 	Provision of information. In addition, each Borrower shall promptly provide the Security
Trustee (or any persons which it may designate) with any information which the Security
Trustee (or any such designated person) requests for the purpose of:
	 
	(a)	 	obtaining or preparing any report from an independent marine insurance broker as to the
adequacy of the obligatory insurances effected or proposed to be effected; and/or
	 
	(b)	 	effecting, maintaining or renewing any such insurances as are referred to in Clause 13.16
below or dealing with or considering any matters relating to any such insurances,
	 
	 	 	and such Borrower shall, forthwith upon demand, indemnify the Security Trustee in respect of
all fees and other expenses incurred by or for the account of the Security Trustee in
connection with any such report as is referred to in paragraph (a) above.
	 
	13.17	 	Mortgagee’s interest and additional perils insurances. The Security Trustee shall be
entitled from time to time to effect, maintain and renew all or any of the following
insurances in such amounts, on such terms, through such insurers and generally in such manner
as the Security Trustee may from time to time consider appropriate:
	 
	(a)	 	a mortgagee’s interest marine insurance in an amount of 110 per cent of the Loan providing
for the indemnification of the Creditor Parties for any losses under or in connection with any
Finance Document which directly or indirectly result from loss of or damage to a Ship or a
liability of such Ship or of the Borrower which is the owner thereof, being a loss or damage
which is prima facie covered by an obligatory insurance but in respect of which there is a
non-payment (or reduced payment) by the underwriters by reason of, or on the basis of an
allegation concerning:

	 	(i)	 	any act or omission on the part of such Borrower, of any operator, charterer,
manager or sub-manager of the Ship or of any officer, employee or agent of such
Borrower or of any such person, including any breach of warranty or condition or any
non-disclosure relating to such obligatory insurance;
	 
	 	(ii)	 	any act or omission, whether deliberate, negligent or accidental, or any
knowledge or privity of such Borrower , any other person referred to in paragraph

41

 

	 	 	 	(i) above, or of any officer, employee or agent of such Borrower or of such a
person, including the casting away or damaging of such Ship and/or such Ship being
unseaworthy; and/or
	 
	 	(iii)	 	any other matter capable of being insured against under a mortgagee’s interest
marine insurance policy whether or not similar to the foregoing;

	(b)	 	a mortgagee’s interest additional perils policy in an amount of not less than 110 per cent.
of the Loan providing for the indemnification of the Creditor Parties against, among other
things, any possible losses or other consequences of any Environmental Claim, including the
risk of expropriation, arrest or any form of detention of such Ship, the imposition of any
Security Interest over such Ship and/or any other matter capable of being insured against
under a mortgagee’s interest additional perils policy whether or not similar to the foregoing,
and the Borrowers shall upon demand fully indemnify the Security Trustee in respect of all
premiums and other expenses which are incurred in connection with or with a view to
effecting, maintaining or renewing any such insurance or dealing with, or considering, any
matter arising out of any such insurance.
	 
	13.18	 	Review of insurance requirements. The Security Trustee shall be entitled to review the
requirements of this Clause 13 from time to time in order to take account of any changes in
circumstances after the date of this Agreement which are in the reasonable opinion of the
Security Trustee, significant and capable of affecting the Borrowers or the Ships and their
insurance (including, without limitation, changes in the availability or the cost of insurance
coverage or the risks to which the Borrowers may be subject), and may appoint at a maximum of
once per year insurance consultants in relation to this review at the cost of the Borrowers.
	 
	14	 	SHIP COVENANTS
	 
	14.1	 	General. Each Borrower also undertakes with each Creditor Party to comply with the following
provisions of this Clause 14 at all times during the Security Period (after a Ship has been
delivered pursuant to the relevant Shipbuilding Contract) each except as the Agent, with the
authorisation of the Majority Lenders, may otherwise permit.
	 
	14.2	 	Ship’s name and registration. Each Borrower shall register the Ship owned by it under an
Approved Flag; shall not do or allow to be done anything as a result of which such
registration might be cancelled or imperilled; and shall not change the name or port of
registry of such Ship.
	 
	14.3	 	Repair and classification. Each Borrower shall keep its Ship in a good and safe sea and
cargo worthy condition and state of repair:
	 
	(a)	 	consistent with first-class ship ownership and management practice;
	 
	(b)	 	so as to maintain such Ship with the highest classification available for vessels of the same
age, type and specification as such Ship with an approved classification society which is a
member of IACS (except for the Chinese Classification Society of the People’s Republic of
China and the Russian Maritime Registry of Shipping in Russia) and which is acceptable to the
Agent free of all overdue recommendations and conditions; and
	 
	(c)	 	so as to comply with all laws and regulations applicable to vessels registered at ports in
the applicable Approved Flag State, or to vessels trading to any jurisdiction to which that
Ship may trade from time to time, including but not limited to the ISM Code, the ISM Code
Documentation, the ISPS Code and the ISPS Code Documentation.

42

 

	14.4	 	Classification society undertaking. Each Borrower shall instruct the classification society
of the Ship owned by it to do all or any of the following after the occurrence of an Event of
Default or (and procure that the classification society undertakes with the Security Trustee
at such time):
	 
	(a)	 	to send to the Security Trustee, following receipt of a written request from the Security
Trustee, certified true copies of all original class records held by the classification
society in relation to the Ship;
	 
	(b)	 	to allow the Security Trustee (or its agents), at any time and from time to time, to inspect
the original class and related records of the Borrower and the Ship at the offices of the
classification society and to take copies of them;
	 
	(c)	 	to notify the Security Trustee immediately in writing if the classification society:

	 	(i)	 	receives notification from that Borrower or any person that that Ship’s
classification society is to be changed; or
	 
	 	(ii)	 	becomes aware of any facts or matters which may result in or have resulted in a
change, suspension, discontinuance, withdrawal or expiry of that Ship’s class under the
rules or terms and conditions of that Borrower’s or that Ship’s membership of the
classification society;

	(d)	 	following receipt of a written request from the Security Trustee:

	 	(i)	 	to confirm that that Borrower is not in default of any of its contractual
obligations or liabilities to the classification society and, without limiting the
foregoing, that it has paid in full all fees or other charges due and payable to the
classification society; or
	 
	 	(ii)	 	if that Borrower is in default of any of its contractual obligations or
liabilities to the classification society, to specify to the Security Trustee in
reasonable detail the facts and circumstances of such default, the consequences
thereof, and any remedy period agreed or allowed by the classification society.

	14.5	 	Modification. Each Borrower shall not make any modification or repairs to, or replacement of,
the Ship owned by it or equipment installed on her which would or might materially alter the
structure, type or performance characteristics of that Ship or materially reduce its value.
	 
	14.6	 	Removal of parts. Each Borrower shall not remove any material part of the Ship owned by it,
or any item of equipment installed on, that Ship unless the part or item so removed is
forthwith replaced by a suitable part or item which is in the same condition as or better
condition than the part or item removed, is free from any Security Interest or any right in
favour of any person other than the Security Trustee and becomes on installation on the Ship
the property of that Borrower and subject to the security constituted by the relevant Mortgage
Provided that a Borrower may install equipment owned by a third party if the equipment can be
removed without any risk of damage to the Ship owned by it.
	 
	14.7	 	Surveys. Each Borrower shall submit the Ship owned by it regularly to all periodical or
other surveys which may be required for classification purposes and, if so required by all the
Lenders provide the Security Trustee, with copies of all survey reports.
	 
	14.8	 	Inspection. Without prejudice to the Borrower’s obligations pursuant to Clause 14.7, each
Borrower shall permit the Security Trustee (by surveyors or other persons appointed by it for
that purpose) to board the Ship owned by it at all reasonable times without interruption to
such Ship’s normal schedule, or interference with its operation, to inspect its condition or
to satisfy themselves about proposed or executed repairs and shall afford

43

 

	 	 	all proper facilities for such inspections (including, without limitation, submitting the Ship for a
technical physical survey). All fees and expenses incurred in relation to the appointment of the
surveyors and the preparation and issuing of all technical reports pursuant to this Clause 14.9 shall be
the account of the Borrowers. Provided that so long as a Ship is found to be in a satisfactory condition
to the Agent and no continuing Event of Default shall be in existence, the Borrowers shall not be
obliged to pay the fees and expenses incurred in connection with the inspection of that Ship more than
once in any twelve-month period.
	 
	14.9	 	Prevention of and release from arrest. Each Borrower shall promptly discharge:
	 
	(a)	 	all liabilities which give or may give rise to maritime or possessory liens on or claims
enforceable against the Ship owned by it, the Earnings or the Insurances;
	 
	(b)	 	all taxes, dues and other amounts charged in respect of the Ship, the Earnings or the
Insurances; and
	 
	(c)	 	all other outgoings whatsoever in respect of the Ship owned by it, the Earnings or the
Insurances;
	 
	 	 	and, forthwith upon receiving notice of the arrest of the Ship owned by it, or of its
detention in exercise or purported exercise of any lien or claim, that Borrower shall
procure its release by providing bail or otherwise as the circumstances may require.
	 
	14.10	 	Compliance with laws etc. Each Borrower shall (and shall procure that the Approved Manager
shall):
	 
	(a)	 	comply, or procure compliance with the ISM Code, the ISPS Code, all Environmental Laws and
all other laws or regulations relating to its Ship, its ownership, operation and management or
to the business of such Borrower (including, but not limited to, the International Management
Code for the Safe Operation of Ships and for Pollution Prevention);
	 
	(b)	 	not employ its Ship nor allow its employment in any manner contrary to any law or regulation
in any relevant jurisdiction including but not limited to the ISM Code and the ISPS Code; and
	 
	(c)	 	in the event of hostilities in any part of the world (whether war is declared or not), not
cause or permit it to enter or trade to any zone which is declared a war zone by any
government or by that Ship’s war risks insurers unless the prior written consent of the all
the Lenders has been given and the Borrowers have (at its expense) effected any special,
additional or modified insurance cover which the Lenders may require.
	 
	14.11	 	Provision of information. The Borrowers shall promptly provide the Security Trustee with
any information which the Lenders request regarding:
	 
	(a)	 	the Ships, their employment, position and engagements;
	 
	(b)	 	the Earnings and payments and amounts due to a Ship’s master and crew;
	 
	(c)	 	any expenses incurred, or likely to be incurred, in connection with the operation,
maintenance or repair of a Ship and any payments made in respect of a Ship;
	 
	(d)	 	any towages and salvages;
	 
	(e)	 	its own, the Approved Manager’s or a Ship’s compliance with the ISM Code and the ISPS Code,

44

 

	 	 	and, upon the Security Trustee’s request, provide copies of any current charter relating to
a Ship, of any current charter guarantee and copies of the ISM Code Documentation and the
ISPS Code Documentation.
	 
	14.12	 	Notification of certain events. The Borrowers shall immediately notify the Security Trustee
by fax, confirmed forthwith, by letter of:
	 
	(a)	 	any casualty which is or is likely to be or to become a Major Casualty;
	 
	(b)	 	any occurrence as a result of which a Ship has become or is, by the passing of time or
otherwise, likely to become a Total Loss;
	 
	(c)	 	any requirement or recommendation made by any insurer or classification society or by any
competent authority which is not immediately complied with;
	 
	(d)	 	any arrest or detention of a Ship, any exercise or purported exercise of any lien on either
Ship or the Earnings or any requisition of either Ship for hire that is not lifted within 7
days;
	 
	(e)	 	any intended dry docking of a Ship;
	 
	(f)	 	any Environmental Claim made against a Borrower or in connection with a Ship, or any
Environmental Incident;
	 
	(g)	 	any other matter, event or incident, actual or threatened, the effect of which will or could
lead to the ISM Code or the ISPS Code not being complied with;
	 
	 	 	and the Borrowers shall keep the Security Trustee advised in writing on a regular basis and
in such detail as the Security Trustee shall require of the relevant Borrower’s, the
Approved Manager’s or any other person’s response to any of those events or matters.
	 
	14.13	 	Restrictions on chartering, appointment of managers, etc. Neither Borrower shall in
relation to the Ship owned by it:
	 
	(a)	 	let that Ship on demise charter for any period;
	 
	(b)	 	enter into any time or consecutive voyage charter in respect of that Ship for a term which
exceeds, or which by virtue of any optional extensions may exceed, 11 months;
	 
	(c)	 	enter into any charter in relation to that Ship under which more than 2 months’ hire (or the
equivalent) is payable in advance;
	 
	(d)	 	charter that Ship otherwise than on bona fide arm’s length terms at the time when the Ship is
fixed;
	 
	(e)	 	except with the prior written consent of the Agent, appoint a manager of the Ship other than
the Approved Manager or agree to any alteration to the terms of the Approved Manager’s
appointment;
	 
	(f)	 	de-activate or lay up that Ship; or
	 
	(g)	 	put its Ship into the possession of any person for the purpose of work being done upon her in
an amount exceeding or likely to exceed $1,000,000 (or the equivalent in any other currency)
unless that person has first given to the Security Trustee and in terms satisfactory to it a
written undertaking not to exercise any lien on the relevant Ship or her Earnings for the cost
of such work or for any other reason.

45

 

	14.14	 	Notice of Mortgage. Each Borrower shall keep the Mortgage registered against its Ship as a
valid first priority mortgage, carry on board its Ship a certified copy of such Mortgage and
place and maintain in a conspicuous place in the navigation room and the Master’s cabin of the
Ship a framed printed notice stating that the Ship is mortgaged by such Borrower to the
Security Trustee.
	 
	14.15	 	Sharing of Earnings. Neither Borrower shall:
	 
	(a)	 	enter into any agreement or arrangement for the sharing of any Earnings except as provided in
the Ship B Charter; or
	 
	(b)	 	enter into any agreement or arrangement for the postponement of any date on which any
Earnings are due; the reduction of the amount of any Earnings or otherwise for the release or
adverse alteration of any right of the Borrower to any Earnings; or
	 
	(c)	 	enter into any agreement or arrangement for the release of, or adverse alteration to, any
guarantee or Security Interest relating to any Earnings.
	 
	14.16	 	ISPS Code. Each Borrower shall comply, and procure that the Approved Manager complies, with
the ISPS Code and in particular, without limitation, shall:
	 
	(a)	 	procure that each Ship and the Approved Manager comply with the ISPS Code;
	 
	(b)	 	maintain for each Ship an ISM SMS and an ISSC; and
	 
	(c)	 	notify the Agent immediately in writing of any actual or threatened withdrawal, suspension,
cancellation or material modification of the ISSC.
	 
	15	 	SECURITY COVER
	 
	15.1	 	Minimum required security cover. Clause 15.2 applies if the Agent notifies the Borrower
that:
	 
	(a)	 	the aggregate of the Market Values of the Ships; plus
	 
	(b)	 	the net realisable value of any additional security previously provided under this Clause 15
	 
	 	 	is, at any time during the Security Period below 120 per cent. of an amount equal to the
Loan less any cash held in accounts pledged to the Lenders.
	 
	15.2	 	Provision of additional security; prepayment. If the Agent serves a notice on the Borrowers
under Clause 15.1, the Borrowers shall, within 1 month after the date on which the Agent’s
notice is served, either:
	 
	(a)	 	provide, or ensure that a third party provides, additional security which, in the opinion of
all the Lenders, has a net realisable value at least equal to the shortfall and is documented
in such terms as the Agent may, with the authorisation of all the Lenders, approve or require;
or
	 
	(b)	 	prepay such part (at least) of the Loan as will eliminate the shortfall.
	 
	 	 	In Clause 15.1 and in this Clause 15.2 “security” means a Security Interest over an asset or
assets acceptable to the Lender (whether securing the Borrower’s liabilities under the
Finance Documents or a guarantee in respect of those liabilities), or a guarantee, letter of
credit or other security in respect of the Borrower’s liabilities under the Finance
Documents.

46

 

	15.3	 	Valuation of a Ship. The Market Value of a Ship at any date is that shown by a valuation
prepared:
	 
	(a)	 	as at a date not more than 14 days previously;
	 
	(b)	 	by an Approved Broker;
	 
	(c)	 	without physical inspection of that Ship (unless reasonably required by the Agent);
	 
	(d)	 	on the basis of a sale for prompt delivery for cash on normal arm’s length commercial terms
as between a willing seller and a willing buyer, taking into account any existing charter;
	 
	 	 	Provided that if the Agent does not reasonably accept the valuation obtained by the Borrower
by advising the Borrower in writing within 3 Business Days of the Borrower advising the
Agent of such valuation, the Agent may, at the cost of the Borrowers, obtain a second
valuation in accordance with paragraphs (a) to (d) of this Clause 15.3 and the Market Value
of the relevant Ship will be the average of such 2 valuations.
	 
	15.4	 	Value of additional vessel security. The net realisable value of any additional security
which is provided under Clause 15.2 and which consists of a Security Interest over a vessel
shall be that shown by a valuation complying with the requirements of Clause 15.3.
	 
	15.5	 	Valuations binding. Any valuation under Clause 15.2, 15.3 or 15.4 shall be binding and
conclusive as regards the Borrowers, as shall be any valuation which the Lenders make of any
additional security which does not consist of or include a Security Interest.
	 
	15.6	 	Provision of information. The Borrowers shall promptly provide the Agent and any Approved
Broker or expert acting under Clause 15.3 or 15.4 with any information which the Agent or the
shipbroker or expert may request for the purposes of the valuation; and, if the Borrowers fail
to provide the information by the date specified in the request, the valuation may be made on
any basis and assumptions which the Approved Broker or the Lenders (or the expert appointed by
them) consider prudent.
	 
	15.7	 	Payment of valuation expenses. Without prejudice to the generality of the Borrowers’
obligations under Clauses 20.2, 20.3 and 21.3, the Borrowers shall, on demand, pay the Agent
the amount of the fees and expenses of any Approved Broker or expert instructed by the Agent
under this Clause and all legal and other expenses incurred by any Creditor Party in
connection with any matter arising out of this Clause.
	 
	15.8	 	Frequency of valuations. The Agent shall (at the cost of the Borrowers) obtain a valuation
of each Ship which is required to determine its Market Value pursuant to this Clause 15.3 once
every calendar year together with the Financial Year end Compliance Certificate thereafter
throughout the Security Period commencing with the valuation to be provided or prior to the
Delivery Date for such Ship.
	 
	15.9	 	Application of prepayment. Clause 8.11 (b) shall apply in relation to any prepayment
pursuant to Clause 15.2(b).
	 
	15.10	 	Release of additional security. If a Borrower or a third party has provided additional
security as specified in Clause 15.1(b) and the Borrowers at a later time provide the Agent
with a valuation of each Ship made in accordance with Clause 15.3, each evidencing that the
aggregate Market Value of the Ships exceeds 120 per cent. of the Loan, the additional security
(or the relevant part thereof) shall be released at the Borrowers’ expense to the extent that
the minimum security cover specified in Clause 15.1 would be maintained following such release
Provided at that time there is no Event of Default nor will an Event of Default occur as a
result of such release.

47

 

16 PAYMENTS AND CALCULATIONS

	16.1	 	Currency and method of payments. All payments to be made by the Lenders or by the Borrowers
under a Finance Document shall be made to the Agent or to the Security Trustee, in the case of
an amount payable to it:
	 
	(a)	 	by not later than 11.00 a.m. (New York City time) on the due date;
	 
	(b)	 	in same day Dollar funds settled through the New York Clearing House Interbank Payments
System (or in such other Dollar funds and/or settled in such other manner as the Agent shall
specify as being customary at the time for the settlement of international transactions of the
type contemplated by this Agreement);
	 
	(c)	 	in the case of an amount payable by a Lender to the Agent or by a Borrower to the Agent or
any Lender, to the account of the Agent with a bank in New York: “Portorosa Marine Corp.. and
Floral Marine Ltd.”), or to such other account with such other bank as the Agent may from time
to time notify to the Borrowers and the other Creditor Parties; and
	 
	(d)	 	in the case of an amount payable to the Security Trustee, to such account as it may from time
to time notify to the Borrowers and the other Creditor Parties.
	 
	16.2	 	Payment on non-Business Day. If any payment by a Borrower under a Finance Document would
otherwise fall due on a day which is not a Business Day:
	 
	(a)	 	the due date shall be extended to the next succeeding Business Day; or
	 
	(b)	 	if the next succeeding Business Day falls in the next calendar month, the due date shall be
brought forward to the immediately preceding Business Day;
	 
	 	 	and interest shall be payable during any extension under paragraph (a) at the rate payable
on the original due date.
	 
	16.3	 	Basis for calculation of periodic payments. All interest and any other payments under any
Finance Document which are of an annual or periodic nature shall accrue from day to day and
shall be calculated on the basis of the actual number of days elapsed and a 360 day year.
	 
	16.4	 	Distribution of payments to Creditor Parties. Subject to Clauses 16.5, 16.6 and 16.7:
	 
	(a)	 	any amount received by the Agent under a Finance Document for distribution or remittance to a
Lender or the Security Trustee shall be made available by the Agent to that Lender or, as the
case may be, the Security Trustee by payment, with funds having the same value as the funds
received, to such account as that Lender or the Security Trustee may have notified to the
Agent not less than 5 Business Days previously; and
	 
	(b)	 	amounts to be applied in satisfying amounts of a particular category which are due to the
Lenders generally shall be distributed by the Agent to each Lender pro rata to the amount in
that category which is due to it.
	 
	16.5	 	Permitted deductions by Agent. Notwithstanding any other provision of this Agreement or any
other Finance Document, the Agent may, before making an amount available to a Lender, deduct
and withhold from that amount any sum which is then due and payable to the Agent from that
Lender under any Finance Document or any sum which the Agent is then entitled under any
Finance Document to require that Lender to pay on demand.

48

 

	16.6	 	Agent only obliged to pay when monies received. Notwithstanding any other provision of this
Agreement or any other Finance Document, the Agent shall not be obliged to make available to
the Borrowers or any Lender any sum which the Agent is expecting to receive for remittance or
distribution to the Borrowers or that Lender until the Agent has satisfied itself that it has
received that sum.
	 
	16.7	 	Refund to Agent of monies not received. If and to the extent that the Agent makes available
a sum to a Borrower or a Lender, without first having received that sum, the Borrower
concerned or (as the case may be) the Lender concerned shall, on demand:
	 
	(a)	 	refund the sum in full to the Agent; and
	 
	(b)	 	pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent
against any funding or other loss, liability or expense incurred by the Agent as a result of
making the sum available before receiving it.
	 
	16.8	 	Agent may assume receipt. Clause 16.7 shall not affect any claim which the Agent has under
the law of restitution, and applies irrespective of whether the Agent had any form of notice
that it had not received the sum which it made available.
	 
	16.9	 	Creditor Party accounts. Each Creditor Party shall maintain accounts showing the amounts
owing to it by each Borrower and each Security Party under the Finance Documents and all
payments in respect of those amounts made by any Borrower and any Security Party.
	 
	16.10	 	Agent’s memorandum account. The Agent shall maintain a memorandum account showing the
amounts advanced by the Lenders and all other sums owing to the Agent, the Security Trustee
and each Lender from the Borrower and each Security Party under the Finance Documents and all
payments in respect of those amounts made by any Borrower and any Security Party.
	 
	16.11	 	Accounts prima facie evidence. If any accounts maintained under Clauses 16.9 and 16.10 show
an amount to be owing by a Borrower or a Security Party to a Creditor Party, those accounts
shall be prima facie evidence that that amount is owing to that Creditor Party.
	 
	17	 	APPLICATION OF RECEIPTS
	 
	17.1	 	Normal order of application. Except as any Finance Document may otherwise provide, any sums
which are received or recovered by any Creditor Party under or by virtue of any Finance
Document shall be applied:
	 
	(a)	 	FIRST: in or towards satisfaction of any amounts then due and payable under the Finance
Documents in the following order and proportions:

	 	(i)	 	first, in or towards satisfaction pro rata of all amounts then due and payable
to the Creditor Parties under the Finance Documents other than those amounts referred
to at paragraphs (ii) and (iii) (including, but without limitation, all amounts payable
by the Borrowers under Clauses 20, 21 and 22 of this Agreement or by the Borrowers or
any Security Party under any corresponding or similar provision in any other Finance
Document);
	 
	 	(ii)	 	secondly, in or towards satisfaction pro rata of any and all amounts of
interest or default interest payable to the Creditor Parties under the Finance
Documents; and
	 
	 	(iii)	 	thirdly, in or towards satisfaction of the Loan;

49

 

	(b)	 	SECONDLY: in retention of an amount equal to any amount not then due and payable under any
Finance Document but which the Agent, by notice to the Borrowers, the Security Parties and the
other Creditor Parties, states in its opinion will or may become due and payable in the future
and, upon those amounts becoming due and payable, in or towards satisfaction of them in
accordance with the foregoing provisions of this Clause; and
	 
	(c)	 	THIRDLY: any surplus shall be paid to the Borrowers or to any other person appearing to be
entitled to it.
	 
	17.2	 	Variation of order of application. The Agent may, with the authorisation of all the Lenders,
by notice to the Borrowers, the other Security Parties and the other Creditor Parties provide
for a different manner of application from that set out in Clause 17.1
either as regards a specified sum or sums or as regards sums in a specified category or
categories.
	 
	17.3	 	Notice of variation of order of application. The Agent may give notices under Clause 17.2
from time to time; and such a notice may be stated to apply not only to sums which may be
received or recovered in the future, but also to any sum which has been received or recovered
on or after the third Business Day before the date on which the notice is served.
	 
	17.4	 	Appropriation rights overridden. This Clause 17 and any notice which the Agent gives under
Clause 17.2 shall override any right of appropriation possessed, and any appropriation made,
by the Borrowers or any other Security Party.
	 
	18	 	APPLICATION OF EARNINGS
	 
	18.1	 	Payment of Earnings. Each Borrower undertakes with each Creditor Party to ensure that,
throughout the Security Period (and subject only to the provisions of the General
Assignments), all the Earnings of the Ship owned by it are paid to the Earnings Account for
that Ship.
	 
	18.2	 	Location of accounts. Each Borrower shall promptly :
	 
	(a)	 	comply with any requirement of the Agent as to the location or re-location of the Earnings
Accounts (or either of them);
	 
	(b)	 	execute any documents which the Agent specifies to create or maintain in favour of the
Security Trustee a Security Interest over (and/or rights of set-off, consolidation or other
rights in relation to) the Earnings Accounts.
	 
	18.3	 	Minimum Liquidity. The Borrowers shall ensure and procure that, at any time and in respect
of each Advance, there shall be credited to the Earnings Account(s) amounts at least equal to
the aggregate of (i) the next repayment instalment of each such Advance falling due and (ii)
any interest to accrue until the next repayment date of each such Advance.
	 
	18.4	 	Debits for expenses etc. The Agent shall be entitled (but not obliged) from time to time to
debit any Earnings Account without prior notice in order to discharge any amount due and
payable under Clause 20 or 21 to a Creditor Party or payment of which any Creditor Party has
become entitled to demand under Clause 20 or 21.
	 
	19	 	EVENTS OF DEFAULT
	 
	19.1	 	Events of Default. An Event of Default occurs if:

50

 

	(a)	 	either Borrower or any Security Party fails to pay when due or (if so payable) on demand any
sum payable under a Finance Document or under any document relating to a Finance Document;
	 
	(b)	 	any breach occurs of Clause 9.2, 11.2, 11.3, 11.18, 11.19, 12.2, 12.3, 12.4, 12.5, 13.2,
13.3, 15.1, 18.1 or 18.3; or
	 
	(c)	 	any breach by either Borrower or any Security Party occurs of any provision of a Finance
Document (other than a breach covered by paragraphs (a) or (b)) if, in the opinion of all the
Lenders, such default is capable of remedy, and such default continues unremedied 15 Business
Days after written notice from the Agent requesting action to remedy the same; or
	 
	(d)	 	(subject to any applicable grace period specified in the Finance Document) any breach by
either Borrower or any Security Party occurs of any provision of a Finance Document (other
than a breach covered by paragraphs (a), (b) or (c)); or
	 
	(e)	 	any representation, warranty or statement made by, or by an officer of, a Borrower or a
Security Party in a Finance Document or in the Drawdown Notice or any other notice or document
relating to a Finance Document is untrue or misleading when it is made; or
	 
	(f)	 	any of the following occurs in relation to any Financial Indebtedness of a Relevant Person:

	 	(i)	 	any Financial Indebtedness of a Relevant Person is not paid when due or, if so
payable, on demand; or
	 
	 	(ii)	 	any Financial Indebtedness of a Relevant Person becomes due and payable or
capable of being declared due and payable prior to its stated maturity date as a
consequence of any event of default; or
	 
	 	(iii)	 	any Security Interest securing any Financial Indebtedness of a Relevant Person
becomes enforceable; or

	(g)	 	any of the following occurs in relation to any Financial Indebtedness of a Borrower:

	 	(i)	 	a lease, hire purchase agreement or charter creating any Financial Indebtedness
of a Borrower is terminated by the lessor or owner or becomes capable of being
terminated as a consequence of any termination event; or
	 
	 	(ii)	 	any overdraft, loan, note issuance, acceptance credit, letter of credit,
guarantee, foreign exchange or other facility, or any swap or other derivative contract
or transaction, relating to any Financial Indebtedness of a Borrower ceases to be
available or becomes capable of being terminated as a result of any event of default,
or cash cover is required, or becomes capable of being required, in respect of such a
facility as a result of any event of default; or

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

	 	(i)	 	a Relevant Person becomes unable to pay its debts as they fall due; or
	 
	 	(ii)	 	any asset of a Relevant Person (other than the Corporate Guarantor) is subject
to any form of execution, attachment, arrest, sequestration or distress in respect of a
sum of, $500,000 or more or the equivalent in another currency and, in the case of the
Corporate Guarantor, is subject to any form of execution, attachment, arrest,
sequestration or distress which is likely to have a Material Adverse Effect; or

51

 

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

52

 

	 	 	 	considering a resolution or proposal to authorise or take any action of a type
described in paragraphs (iv) to (ix) or a step preparatory to such action, or (with or
without such a meeting) the members, directors or such a committee resolve or agree
that such an action or step should be taken or should be taken if certain conditions
materialise or fail to materialise; or
	 
	 	(xi)	 	in a Pertinent Jurisdiction other than England, any event occurs, any
proceedings are opened or commenced or any step is taken which, in the opinion of all
the Lenders, is similar to any of the foregoing; or

	(i)	 	either Borrower or any Security Party ceases or suspends carrying on its business or a part
of its business which, in the opinion of all the Lenders, is material in the context of this
Agreement; or
	 
	(j)	 	it becomes unlawful in any Pertinent Jurisdiction or impossible:

	 	(i)	 	for either Borrower or any Security Party to discharge any liability under a
Finance Document or to comply with any other obligation which all the Lenders consider
material under a Finance Document; and
	 
	 	(ii)	 	for the Agent, the Security Trustee or the Lenders to exercise or enforce any
right under, or to enforce any Security Interest created by, a Finance Document; or

	(k)	 	any consent necessary to enable either Borrower or the New Owner to own, operate or charter
the Ship owned by it or to enable either Borrower or any Security Party to comply with any
provision which all the Lenders consider material of a Finance Document is not granted,
expires without being renewed, is revoked or becomes liable to revocation or any condition of
such a consent is not fulfilled; or
	 
	(l)	 	it reasonably appears to the Lenders that, without their prior consent, a change has occurred
or probably has occurred after the date of this Agreement in the beneficial ownership of any
of the shares in either Borrower, or in the control of the voting rights attaching to any of
those shares which results in the Borrowers not being in compliance with their obligations
under Clause 12.4; or
	 
	(m)	 	any provision which the Lenders consider material of a Finance Document proves to have been
or becomes invalid or unenforceable, or a Security Interest created by a Finance Document
proves to have been or becomes invalid or unenforceable or such a Security Interest proves to
have ranked after, or loses its priority to, another Security Interest or any other third
party claim or interest; or
	 
	(n)	 	the security constituted by a Finance Document is in any way imperilled or in jeopardy; or
	 
	(o)	 	(without limiting the generality of paragraph (m) above), either Credit Default Insurance
with respect to the Initial Charters, ceases to exist;
	 
	(p)	 	it reasonably appears to the Lenders that without their prior written consent a change has
occurred or probably has occurred after the date of this Agreement in the direct or indirect
ownership of any of the shares in the New Owner or in the control of the voting rights
attaching to any of those shares which does not result in the shares being directly or
indirectly owned by a member of the Group;”;
	 
	(q)	 	any other event occurs or any other circumstances arise or develop including, without
limitation:

	 	(i)	 	a change in the financial position, state of affairs or prospects of any
Borrower or any other Security Party; or

53

 

	 	(ii)	 	any accident or other event involving a Ship or another vessel owned, chartered
or operated by a Relevant Person; or
	 
	 	(iii)	 	commencement of legal or administrative action involving the Borrowers the
Ships or any Security Party

	 	which constitutes a Material Adverse Change.

	19.2	 	Actions following an Event of Default. On, or at any time after, the occurrence of an Event
of Default:

	(a)	 	the Agent may, and if so instructed by the Majority Lenders, the Agent shall:

	 	(i)	 	serve on the Borrowers a notice stating that the Commitments and all other
obligations of each Lender to the Borrowers under this Agreement are terminated; and/or
	 
	 	(ii)	 	serve on the Borrowers a notice stating that if the Event of Default is not
remedied, in the case of an Event of Default falling within Clause 19.1(a), within 5
days and in any other case, within 30 days, the Loan, all accrued interest and all
other amounts accrued or owing under this Agreement are immediately due and payable or
are due and payable on demand; and/or
	 
	 	(iii)	 	take any other action which, as a result of the Event of Default or any notice
served under paragraph (i) or (ii), the Agent and/or the Lenders are entitled to take
under any Finance Document or any applicable law; and/or

	(b)	 	the Security Trustee may, and if so instructed by the Agent, acting with the authorisation of
the Majority Lender, the Security Trustee shall take any action which, as a result of the
Event of Default or any notice served under paragraph (a) (i) or (ii), the Security Trustee,
the Agent and/or the Lenders are entitled to take under any Finance Document or any applicable
law.

	19.3	 	Termination of Commitments. On the service of a notice under Clauses 19.2(a)(i), the
Commitments and all other obligations of each Lender to the Borrowers under this Agreement
shall terminate.
	 
	19.4	 	Acceleration of Loan. On the service of a notice under Clause 19.2(a)(ii), the Loan, all
accrued interest and all other amounts accrued or owing from the Borrowers or any Security
Party under this Agreement and every other Finance Document shall become immediately due and
payable or, as the case may be, payable on demand.
	 
	19.5	 	Multiple notices; action without notice. The Agent may serve notices under Clauses 19.2
(a)(i) and (ii) simultaneously or on different dates and it and/or the Security Trustee may
take any action referred to in Clause 19.2 if no such notice is served or simultaneously with
or at any time after the service of both or either of such notices.
	 
	19.6	 	Notification of Creditor Parties and Security Parties. The Agent shall send to each Lender,
the Security Trustee and each Security Party a copy or the text of any notice which the Agent
serves on the Borrowers under Clause 19.2; but the notice shall become effective when it is
served on the Borrowers, and no failure or delay by the Agent to send a copy or the text of
the notice to any other person shall invalidate the notice or provide a Borrower or any
Security Party with any form of claim or defence.
	 
	19.7	 	Lender’s rights unimpaired. Nothing in this Clause shall be taken to impair or restrict the
exercise of any right given to individual Lenders under a Finance Document or the general law;
and, in particular, this Clause is without prejudice to Clause 3.1.

54

 

	19.8	 	Exclusion of Creditor Party liability. No Creditor Party, and no receiver or manager
appointed by the Security Trustee, shall have any liability to a Borrower or a Security Party:
	 
	(a)	 	for any loss caused by an exercise of rights under, or enforcement of a Security Interest
created by, a Finance Document or by any failure or delay to exercise such a right or to
enforce such a Security Interest; or
	 
	(b)	 	as mortgagee in possession or otherwise, for any income or principal amount which might have
been produced by or realised from any asset comprised in such a Security Interest or for any
reduction (however caused) in the value of such an asset,
	 
	 	 	except that this does not exempt a Creditor Party or a receiver or manager from liability
for losses shown to have been directly and mainly caused by the dishonesty or the wilful
misconduct of such Creditor Party’s own officers and employees or (as the case may be) such
receiver’s or manager’s own partners or employees.
	 
	19.9	 	Relevant Persons. In this Clause 19 a “Relevant Person” means the Borrowers, the Corporate
Guarantor and any other Security Party.
	 
	19.10	 	Interpretation. In Clause 19.1(f) references to an event of default or a termination event
include any event, howsoever described, which is similar to an event of default in a facility
agreement or a termination event in a finance lease; and in Clause 19.1(g) “petition” includes
an application.
	 
	20	 	FEES AND EXPENSES
	 
	20.1	 	Arrangement, commitment and agency fees. The Borrowers have paid to the Agent:
	 
	(a)	 	a commitment fee (for distribution among the Lenders pro rata to their Commitments) at the
rate of 0.40 per cent. per annum on the amount of the Total Commitments less the amount of the
Loan for the period from (and including) 22 July 2009 up to the earlier of (i) the Final
Availability Date of the Ship B Advance, (ii) if earlier, the Drawdown Date of the Ship B
Advance and (iii) the date on which the Total Commitments are fully cancelled or terminated,
such fee to be paid quarterly in arrears and on the last day of such period;
	 
	(b)	 	an arrangement fee (for distribution among the Lenders at the sole discretion of the Agent),
equal to 0.80 per cent of the amount of the Total Commitments payable as follows:

	 	(i)	 	50 per cent. of such arrangement fee has been paid on the date of acceptance of
the Summary of Terms; and
	 
	 	(ii)	 	the remaining 50 per cent shall be paid in two equal instalments, each equal to
0.40 per cent. of the maximum amount of each Advance each such instalment to be paid on
the Drawdown Date of such Advance,

	 	 	 	Provided that :

	 	(A)	 	the first instalment of the arrangement fee referred to in
paragraph (i) above shall be non-refundable irrespective whether any part of
the Total Commitments are drawn down hereunder for any other reason whatsoever;
and
	 
	 	(B)	 	in case the Agent determines that the arrangement fee needs to
be increased in order to achieve for a successful syndication of the Total
Commitment or any part thereof, the amount of the arrangement fee to be

55

 

	 	 	 	paid and the manner of payment thereof may, at the discretion of the Agent
and in cooperation with the Borrowers and the Corporate Guarantor each of
whom shall act reasonably, be adjusted and increased up to an amount not
exceeding in aggregate 1.20 per cent of the amount of the Total Commitments;
and

	(c)	 	if at any time there are at least 2 Lenders, an agency fee equal to $10,000 for each Ship
which is subject to a Mortgage payable annually in advance.
	 
	20.2	 	Costs of negotiation, preparation etc. The Borrowers shall pay to the Agent on its demand
the amount of all reasonable expenses incurred by the Agent or the Security Trustee in
connection with the negotiation, preparation, execution or registration of any Finance
Document or any related document or with any transaction contemplated by a Finance Document or
a related document (including, without limitation, any expenses incurred by the Lenders with
respect to the legal opinions stipulated in Schedule 4).
	 
	20.3	 	Costs of variations, amendments, enforcement etc. The Borrowers shall pay to the Agent, on
the Agent’s demand, for the account of the Creditor Party concerned, the amount of all
expenses incurred by a Creditor Party in connection with:
	 
	(a)	 	any amendment or supplement to a Finance Document, or any proposal for such an amendment to
be made;
	 
	(b)	 	any consent or waiver by the Lenders or the Creditor Party concerned under or in connection
with a Finance Document, or any request for such a consent or waiver;
	 
	(c)	 	the valuation of any security provided or offered under Clause 15 or any other matter
relating to such security; or
	 
	(d)	 	where the Agent, in its absolute opinion, considers that there has been a material change to
the insurances in respect of a Ship, the review of the insurances of such Ship pursuant to
Clause 13.18; and
	 
	(e)	 	any step taken by the Lender concerned with a view to the protection, exercise or enforcement
of any right or Security Interest created by a Finance Document or for any similar purpose.
	 
	 	 	There shall be recoverable under paragraph (d) the full amount of all legal expenses,
whether or not such as would be allowed under rules of court or any taxation or other
procedure carried out under such rules.
	 
	20.4	 	Documentary taxes. The Borrowers shall promptly pay any tax payable on or by reference to
any Finance Document, and shall, on the Agent’s demand, fully indemnify each Creditor Party
against any claims, expenses, liabilities and losses resulting from any failure or delay by
the Borrower to pay such a tax.
	 
	20.5	 	Certification of amounts. A notice which is signed by 2 officers of a Creditor Party, which
states that a specified amount, or aggregate amount, is due to that Creditor Party under this
Clause 20 and which indicates (without necessarily specifying a detailed breakdown) the
matters in respect of which the amount, or aggregate amount, is due shall be prima facie
evidence that the amount, or aggregate amount, is due.
	 
	21	 	INDEMNITIES
	 
	21.1	 	Indemnities regarding borrowing and repayment of Loan. The Borrowers shall fully indemnify
the Agent and each Lender on the Agent’s demand and the Security Trustee on its demand in
respect of all claims, expenses, liabilities and losses which are made or brought against or
incurred by that Creditor Party, or which that Creditor Party

56

 

	 	 	reasonably and with due diligence estimates that it will incur, as a result of or in
connection with:
	 
	(a)	 	the Loan not being borrowed on the date specified in the Drawdown Notice for any reason other
than a default by the Lender claiming the indemnity;
	 
	(b)	 	the receipt or recovery of all or any part of the Loan or an overdue sum otherwise than on
the last day of an Interest Period or other relevant period;
	 
	(c)	 	any failure (for whatever reason) by a Borrower to make payment of any amount due under a
Finance Document on the due date or, if so payable, on demand (after giving credit for any
default interest paid by the Borrowers on the amount concerned under Clause 7);
	 
	(d)	 	the occurrence and/or continuance of an Event of Default and/or the acceleration of repayment
of the Loan under Clause 19;
	 
	 	 	and in respect of any tax (other than tax on its overall net income) for which a Creditor
Party is liable in connection with any amount paid or payable to that Creditor Party
(whether for its own account or otherwise) under any Finance Document.
	 
	21.2	 	Breakage costs. Without limiting its generality, Clause 21.1 covers any claim, expense,
liability or loss, including a loss of a prospective profit, incurred by a Lender:
	 
	(a)	 	in liquidating or employing deposits from third parties acquired or arranged to fund or
maintain all or any part of its Contribution and/or any overdue amount (or an aggregate amount
which includes its Contribution or any overdue amount); and
	 
	(b)	 	in terminating, or otherwise in connection with, any interest and/or currency swap or any
other transaction entered into (whether with another legal entity or with another office or
department of the Lender concerned) to hedge any exposure arising under this Agreement or that
part which the Lender concerned determines is fairly attributable to this Agreement of the
amount of the liabilities, expenses or losses (including losses of prospective profits)
incurred by it in terminating, or otherwise in connection with, a number of transactions of
which this Agreement is one.
	 
	21.3	 	Miscellaneous indemnities. The Borrowers shall fully indemnify each Creditor Party severally
on their respective demands in respect of all claims, expenses, liabilities and losses and
expenses of every kind (“liability items”) which may be made or brought against or incurred by
a Creditor Party, in any country, as a result of or in connection with:
	 
	(a)	 	any action taken, or omitted or neglected to be taken, under or in connection with any
Finance Document by the Agent, the Security Trustee or any other Creditor Party or by any
receiver appointed under a Finance Document; and
	 
	(b)	 	any other event, matter or question which occurs or arises at any time during the Security
Period and which has any connection with, or any bearing on, any Finance Document, any payment
or other transaction relating to a Finance Document or any asset covered (or previously
covered) by a Security Interest created (or intended to be created) by a Finance Document.
	 
	 	 	other than liability items which are shown to have been caused by the gross negligence or
the wilful misconduct of the Agent’s or (as the case may be) the Security Trustee’s own
officers or employees.
	 
	21.4	 	Extension of indemnities; environmental indemnity. Without prejudice to its generality,
Clause 21.3 covers:

57

 

	(a)	 	any matter which would be covered by Clause 20.3 if any of the references in that Clause to a
Lender were a reference to the Agent or (as the case may be) to the Security Trustee; and
	 
	(b)	 	any liability items which arise, or are asserted, under or in connection with any law or any
regulation relating to safety at sea, pollution or the protection of the environment,
including but not limited to the ISM Code and the ISPS Code.
	 
	21.5	 	Currency indemnity. If any sum due from a Borrower or any Security Party to a Creditor Party
under a Finance Document or under any order or judgment relating to a Finance Document has to
be converted from the currency in which the Finance Document provided for the sum to be paid
(the “Contractual Currency”) into another currency (the “Payment Currency”) for the purpose
of:
	 
	(a)	 	making or lodging any claim or proof against any Borrower or any Security Party, whether in
its liquidation, any arrangement involving it or otherwise; or
	 
	(b)	 	obtaining an order or judgment from any court or other tribunal; or
	 
	(c)	 	enforcing any such order or judgment;
	 
	 	 	the Borrowers shall indemnify the Creditor Party concerned against the loss arising when the
amount of the payment actually received by that Creditor Party is converted at the available
rate of exchange into the Contractual Currency.
	 
	 	 	In this Clause 21.5, the “available rate of exchange” means the rate at which the Creditor
Party concerned is able at the opening of business (London time) on the Business Day after
it receives the sum concerned to purchase the Contractual Currency with the Payment
Currency.
	 
	 	 	This Clause 21.5 creates a separate liability of the Borrowers which is distinct from its
other liabilities under the Finance Documents and which shall not be merged in any judgment
or order relating to those other liabilities.
	 
	21.6	 	Certification of amounts. A notice which is signed by 2 officers of a Creditor Party, which
states that a specified amount, or aggregate amount, is due to that Creditor Party under this
Clause 21 and which indicates (without necessarily specifying a detailed breakdown) the
matters in respect of which the amount, or aggregate amount, is due shall be prima facie
evidence that the amount, or aggregate amount, is due.
	 
	21.7	 	Sums deemed due to a Lender. For the purposes of this Clause 21, a sum payable by a Borrower
to the Agent or the Security Trustee for distribution to a Lender shall be treated as a sum
due to that Lender.
	 
	22	 	NO SET-OFF OR TAX DEDUCTION
	 
	22.1	 	No deductions. All amounts due from a Borrower under a Finance Document shall be paid:
	 
	(a)	 	without any form of set-off, cross-claim or condition; and
	 
	(b)	 	free and clear of any tax deduction except a tax deduction which a Borrower is required by
law to make.
	 
	22.2	 	Grossing-up for taxes. If a Borrower is required by law to make a tax deduction from any
payment:

58

 

	(a)	 	the Borrowers shall notify the Agent as soon as it becomes aware of the requirement;
	 
	(b)	 	such Borrower shall pay the tax deducted to the appropriate taxation authority promptly, and
in any event before any fine or penalty arises;
	 
	(c)	 	the amount due in respect of the payment shall be increased by the amount necessary to ensure
that each Creditor Party receives and retains (free from any liability relating to the tax
deduction) a net amount which, after the tax deduction, is equal to the full amount which it
would otherwise have received.
	 
	22.3	 	Evidence of payment of taxes. Within 1 month after making any tax deduction, the Borrowers
shall deliver to the Agent documentary evidence satisfactory to the Agent that the tax had
been paid to the appropriate taxation authority.
	 
	22.4	 	Exclusion of tax on overall net income. In this Clause 22 “tax deduction” means any
deduction or withholding for or on account of any present or future tax except tax on a
Creditor Party’s overall net income.
	 
	23	 	ILLEGALITY, ETC
	 
	23.1	 	Illegality. This Clause 23 applies if a Lender (the “Notifying Lender”) notifies the Agent
that it has become, or will with effect from a specified date, become:
	 
	(a)	 	unlawful or prohibited as a result of the introduction of a new law, an amendment to an
existing law or a change in the manner in which an existing law is or will be interpreted or
applied; or
	 
	(b)	 	contrary to, or inconsistent with, any regulation,
	 
	 	 	for the Notifying Lender to maintain or give effect to any of its obligations under this
Agreement in the manner contemplated by this Agreement.
	 
	23.2	 	Notification of illegality. The Agent shall promptly notify the Borrowers, the Security
Parties, the Security Trustee and the other Lenders of the notice under Clause 23.1 which the
Agent receives from the Notifying Lender.
	 
	23.3	 	Prepayment; termination of Commitment. On the Agent notifying the Borrowers under Clause
23.1 and 23.2, the Notifying Lender’s Commitment shall terminate; and thereupon or, if later,
on the date specified in the Notifying Lender’s notice under Clause 23.1 as the date on which
the notified event would become effective the Borrowers shall prepay the Notifying Lender’s
Contribution in accordance with Clause 8.
	 
	24	 	INCREASED COSTS
	 
	24.1	 	Increased costs. This Clause 24 applies if a Lender (the “Notifying Lender”) notifies the
Agent that the Notifying Lender considers that as a result of:
	 
	(a)	 	the introduction or alteration after the date of this Agreement of a law, or a regulation or
an alteration after the date of this Agreement in the manner in which a law is interpreted or
applied by any competent authority (disregarding any effect which relates to the application
to payments under this Agreement of a tax on the Notifying Lender’s overall net income); or
	 
	(b)	 	the effect of complying with any regulation having compulsory effect (including any which
relates to capital adequacy or liquidity controls or which affects the manner in which the
Notifying Lender allocates capital resources to its obligations under this Agreement) which is
introduced, or altered, or the interpretation or application of which is altered, after the
date of this Agreement,

59

 

	 	 	the Notifying Lender (or a parent company of it) has incurred or will incur an “increased
cost”, that is to say:

	 	(i)	 	an additional or increased cost incurred as a result of, or in connection with,
the Notifying Lender having entered into, or being a party to, this Agreement or a
Transfer Certificate, of funding or maintaining its Commitment or Contribution or
performing its obligations under this Agreement, or of having outstanding all or any
part of its Contribution or other unpaid sums;
	 
	 	(ii)	 	a reduction in the amount of any payment to the Notifying Lender under this
Agreement or in the effective return which such a payment represents to the Notifying
Lender or on its capital;
	 
	 	(iii)	 	an additional or increased cost of funding or maintaining all or any of the
advances comprised in a class of advances formed by or including the Notifying Lender’s
Contribution or (as the case may require) the proportion of that cost attributable to
the Contribution; or
	 
	 	(iv)	 	a liability to make a payment, or a return foregone, which is calculated by
reference to any amounts received or receivable by the Notifying Lender under this
Agreement,

	 	but not an item attributable to a change in the rate of tax on the overall net income of the
Notifying Lender (or a parent company of it) or an item covered by the indemnity for tax in
Clause 21.1 or by Clause 22; or

	(c)	 	the effect of complying with the regulations set out in the “International Convergence of
Capital Standards, a Revised Framework” published by the Basle Committee on Banking
Supervision in June 2004 as implemented in the EU by the Capital Requirements Directive
(2006/48/EC and 2006/49/EC) is that the Notifying Lender (or a parent company of it) has
incurred or will incur an increased cost (as defined in sub-paragraphs (i) to (iv) above) when
compared to the cost of complying with such regulations as determined by the Notifying Lender
(or a parent company of it) on the date of this Agreement.
	 
	 	 	For the purposes of this Clause 24.1 the Notifying Lender may in good faith allocate or
spread costs and/or losses among its assets and liabilities (or any class thereof) on such
basis as it considers appropriate.
	 
	24.2	 	Notification to Borrowers of claim for increased costs. The Agent shall promptly notify the
Borrowers and the Security Parties of the notice which the Agent received from the Notifying
Lender under Clause 24.1.
	 
	24.3	 	Payment of increased costs. The Borrowers shall pay to the Agent, on the Agent’s demand, for
the account of the Notifying Lender the amounts which the Agent from time to time notifies the
Borrowers that the Notifying Lender has specified to be necessary to compensate the Notifying
Lender for the increased cost.
	 
	24.4	 	Notice of prepayment. If the Borrowers are not willing to continue to compensate the
Notifying Lender for the increased cost under Clause 24.3, the Borrowers may give the Agent
not less than 15 days’ notice of its intention to prepay the Notifying Lender’s Contribution
at the end of an Interest Period.
	 
	24.5	 	Prepayment; termination of Commitment. A notice under Clause 24.4 shall be irrevocable; the
Agent shall promptly notify the Notifying Lender of the Borrowers’ notice of intended
prepayment; and:

60

 

	(a)	 	on the date on which the Agent serves that notice, the Commitment of the Notifying
Lender shall be cancelled; and
	 
	(b)	 	on the date specified in its notice of intended prepayment, the Borrowers shall prepay
(without premium or penalty) the Notifying Lender’s Contribution, together with accrued
interest thereon at the applicable rate plus the Margin.
	 
	24.6	 	Application of prepayment. Clause 8 shall apply in relation to the prepayment
	 
	25	 	SET-OFF
	 
	25.1	 	Application of credit balances. Each Creditor Party may without prior notice:
	 
	(a)	 	apply any balance (whether or not then due) which at any time stands to the credit of any
account in the name of any Borrower at any office in any country of that Creditor Party in or
towards satisfaction of any sum then due from the Borrowers or any of them to that Creditor
Party under any of the Finance Documents; and
	 
	(b)	 	for that purpose:

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

	25.2	 	Existing rights unaffected. No Creditor Party shall be obliged to exercise any of its rights
under Clause 25.1; and those rights shall be without prejudice and in addition to any right of
set-off, combination of accounts, charge, lien or other right or remedy to which a Creditor
Party is entitled (whether under the general law or any document).
	 
	25.3	 	Sums deemed due to a Lender. For the purposes of this Clause 25, a sum payable by the
Borrowers or any of them to the Agent or the Security Trustee for distribution to, or for the
account of, a Lender shall be treated as a sum due to that Lender; and each Lender’s
proportion of a sum so payable for distribution to, or for the account of, the Lenders shall
be treated as a sum due to such Lender.
	 
	25.4	 	No Security Interest. This Clause 25 gives each Creditor Party a contractual right of
set-off only, and does not create any equitable charge or other Security Interest over any
credit balance of the Borrowers (or any of them).
	 
	26	 	JOINT AND SEVERAL LIABILITY
	 
	26.1	 	General. All liabilities and obligations of the Borrowers under this Agreement shall,
whether expressed to be so or not, be several and, if and to the extent consistent with Clause
26.2, joint.
	 
	26.2	 	No impairment of Borrowers’ obligations. The liabilities and obligations of a Borrower shall
not be impaired by:
	 
	(a)	 	this Agreement being or later becoming void, unenforceable or illegal as regards either one
or both of the other Borrower;
	 
	(b)	 	any Lender, the Agent or the Security Trustee entering into any rescheduling, refinancing or
other arrangement of any kind with the other Borrower;

61

 

	(c)	 	any Lender, the Agent or the Security Trustee releasing the other Borrower or any Security
Interest created by a Finance Document; or
	 
	(d)	 	any combination of the foregoing.
	 
	26.3	 	Principal debtors. Each Borrower declares that it is and will, throughout the Security
Period, remain a principal debtor for all amounts owing under this Agreement and the Finance
Documents and neither the Borrower shall in any circumstances be construed to be a surety for
the obligations of the other Borrower under this Agreement.
	 
	26.4	 	Subordination. Subject to Clause 26.5, during the Security Period, neither Borrower shall:
	 
	(a)	 	claim any amount which may be due to it from the other Borrower whether in respect of a
payment made, or matter arising out of, this Agreement or any Finance Document, or any matter
unconnected with this Agreement or any Finance Document; or
	 
	(b)	 	take or enforce any form of security from the other Borrower for such an amount, or in any
other way seek to have recourse in respect of such an amount against any asset of either one
or both of the other Borrowers; or
	 
	(c)	 	set off such an amount against any sum due from it to the other Borrower; or
	 
	(d)	 	prove or claim for such an amount in any liquidation, administration, arrangement or similar
procedure involving the other Borrower or other Security Party; or
	 
	(e)	 	exercise or assert any combination of the foregoing.
	 
	26.5	 	Borrowers’ required action. If during the Security Period, the Agent, by notice to a
Borrower, requires it to take any action referred to in paragraphs (a) to (d) of Clause 26.4,
in relation to the other Borrower, that Borrower shall take that action as soon as practicable
after receiving the Agent’s notice.
	 
	27	 	TRANSFERS AND CHANGES IN LENDING OFFICES
	 
	27.1	 	Transfer by a Borrower. Neither Borrower may, without the prior written consent of the
Agent, given on the instructions of all the Lenders:
	 
	(a)	 	transfer any of its rights, liabilities or obligations under any Finance Documents; and
	 
	(b)	 	enter into any merger, de-merger or other reorganisation, or carry out any other act, as a
result of which any of its rights or liabilities would vest in, or pass to, another person.
	 
	27.2	 	Transfer by a Lender. Subject to Clause 27.4 and the other terms and conditions of this
Clause 27.2, a Lender (the “Transferor Lender”) may at any time cause:
	 
	(a)	 	its rights in respect of all or part of its Contribution; or
	 
	(b)	 	its obligations in respect of all or part of its Commitment; or
	 
	(c)	 	a combination of (a) and (b),
	 
	 	 	to be (in the case of its rights) transferred to, or (in the case of its obligations)
assumed by, any third party (a “Transferee Lender”) by delivering to the Agent a completed
certificate in the form set out in Schedule 5 with any modifications approved or required by
the Agent (a “Transfer Certificate”) executed by the Transferor Lender and the Transferee
Lender.

62

 

	 	 	A transfer pursuant to this Clause 27.2 shall require the prior consent of the Borrowers,
which shall not be unreasonably withheld or delayed Provided that the consent of the
Borrowers shall not be required in the case of:

	 	(a)	 	a transfer where the Transferee Lender is an affiliate of the Transferor lender;
	 
	 	(b)	 	an Event of Default which is continuing; and
	 
	 	(c)	 	a transfer to the first two Transferee Lenders (in which case only consultation
with the Borrowers is required)

	 	 	Provided further that the aggregate of such right and/or obligation that may be transferred
by the Lenders together with all such rights and/or obligations which may have been
transferred to lenders other than the present Lenders (present Lenders means the Lenders on
the date of execution of this Agreement) shall not exceed 50 per cent. of the total rights
and/or obligations of the Total Commitments or, as the case may be, the Total Contributions.
	 
	 	 	However any rights and obligations of the Transferor Lender in its capacity as Agent or
Security Trustee will have to be dealt with separately in accordance with the Agency and
Trust Agreement.
	 
	27.3	 	Transfer Certificate, delivery and notification. As soon as reasonably practicable after a
Transfer Certificate is delivered to the Agent, it shall (unless it has reason to believe that
the Transfer Certificate may be defective):
	 
	(a)	 	sign the Transfer Certificate on behalf of itself, the Borrowers, the Security Parties, the
Security Trustee and each of the other Lenders;
	 
	(b)	 	on behalf of the Transferee Lender, send to the Borrowers and each Security Party letters or
faxes notifying them of the Transfer Certificate and attaching a copy of it; and
	 
	(c)	 	send to the Transferee Lender copies of the letters or faxes sent under paragraph (b) above.
	 
	27.4	 	Effective Date of Transfer Certificate. A Transfer Certificate becomes effective on the
date, if any, specified in the Transfer Certificate as its effective date Provided that it is
signed by the Agent under Clause 26.3 on or before that date.
	 
	27.5	 	No transfer without Transfer Certificate. No assignment or transfer of any right or
obligation of a Lender under any Finance Document is binding on, or effective in relation to,
any Borrower, any Security Party or the Security Trustee unless it is effected, evidenced or
perfected by a Transfer Certificate.
	 
	27.6	 	Lender re-organisation; waiver of Transfer Certificate. However, if a Lender enters into any
merger, de-merger or other reorganisation as a result of which all its rights or obligations
vest in another person (the “successor”), the Agent may, if it sees fit, by notice to the
successor and the Borrowers and the Security Trustee waive the need for the execution and
delivery of a Transfer Certificate; and, upon service of the Agent’s notice, the successor
shall become a Lender with the same Commitment and Contribution as were held by the
predecessor Lender.
	 
	27.7	 	Effect of Transfer Certificate. A Transfer Certificate takes effect in accordance with
English law as follows:
	 
	(a)	 	to the extent specified in the Transfer Certificate, all rights and interests (present,
future or contingent) which the Transferor Lender has under or by virtue of the Finance
Documents are assigned to the Transferee Lender absolutely, free of any defects in the

63

 

	 	 	Transferor Lender’s title and of any rights or equities which either Borrower or any
Security Party had against the Transferor Lender;

	(b)	 	the Transferor Lender’s Commitment is discharged to the extent specified in the Transfer
Certificate;
	 
	(c)	 	the Transferee Lender becomes a Lender with the Contribution previously held by the
Transferor Lender and a Commitment of an amount specified in the Transfer Certificate;
	 
	(d)	 	the Transferee Lender becomes bound by all the provisions of the Finance Documents which are
applicable to the Lenders generally, including those about pro-rata sharing and the exclusion
of liability on the part of, and the indemnification of, the Agent and the Security Trustee
and, to the extent that the Transferee Lender becomes bound by those provisions (other than
those relating to exclusion of liability), the Transferor Lender ceases to be bound by them;
	 
	(e)	 	any part of the Loan which the Transferee Lender advances after the Transfer Certificate’s
effective date ranks in point of priority and security in the same way as it would have ranked
had it been advanced by the transferor, assuming that any defects in the transferor’s title
and any rights or equities of either Borrower or any Security Party against the Transferor
Lender had not existed;
	 
	(f)	 	the Transferee Lender becomes entitled to all the rights under the Finance Documents which
are applicable to the Lenders generally, including but not limited to those under Clause 5.7
and Clause 20, and to the extent that the Transferee Lender becomes entitled to such rights,
the Transferor Lender ceases to be entitled to them; and
	 
	(g)	 	in respect of any breach of a warranty, undertaking, condition or other provision of a
Finance Document or any misrepresentation made in or in connection with a Finance Document,
the Transferee Lender shall be entitled to recover damages by reference to the loss incurred
by it as a result of the breach or misrepresentation, irrespective of whether the original
Lender would have incurred a loss of that kind or amount.
	 
	 	 	The rights and equities of a Borrower or any Security Party referred to above include, but
are not limited to, any right of set off and any other kind of cross-claim.
	 
	27.8	 	Maintenance of register of Lenders. During the Security Period the Agent shall maintain a
register in which it shall record the name, Commitment, Contribution and administrative
details (including the lending office) from time to time of each Lender holding a Transfer
Certificate and the effective date (in accordance with Clause 26.4) of the Transfer
Certificate; and the Agent shall make the register available for inspection by any Lender, the
Security Trustee and either Borrower during normal banking hours, subject to receiving at
least 3 Business Days prior notice.
	 
	27.9	 	Reliance on register of Lenders. The entries on that register shall, in the absence of
manifest error, be conclusive in determining the identities of the Lenders and the amounts of
their Commitments and Contributions and the effective dates of Transfer Certificates and may
be relied upon by the Agent and the other parties to the Finance Documents for all purposes
relating to the Finance Documents.
	 
	27.10	 	Authorisation of Agent to sign Transfer Certificates. Each Borrower, the Security Trustee,
each Lender irrevocably authorise the Agent to sign Transfer Certificates on its behalf.
	 
	27.11	 	Registration fee. In respect of any Transfer Certificate, the Agent shall be entitled to
recover a registration fee of $2,500 (and all costs, fees and expenses incidental to the
transfer (including, but not limited to legal fees and expenses)) from the Transferor Lender
or (at the Agent’s option) the Transferee Lender.

64

 

	27.12	 	Sub-participation; subrogation assignment. A Lender may sub-participate part of its rights
and/or obligations under or in connection with the Finance Documents provided however that the
aggregate of such sub-participations at any time does not exceed 50 per cent. of the total
rights and/or obligations of the Lenders under or in connection with the Finance Documents,
without the consent of, or any notice to, any Borrower, any Security Party, the Agent and the
Security Trustee; and the Lenders may assign, in any manner and terms agreed by all the
Lenders, the Agent and the Security Trustee, all or any part of those rights to an insurer or
surety who has become subrogated to them.
	 
	27.13	 	Disclosure of information. A Lender may disclose to a potential Transferee Lender, or
sub-participant as well as any rating agency, trustee, professional adviser or accountant any
information which the Lender has received in relation to any Borrower, any Security Party or
their affairs under or in connection with any Finance Document which the Agent may consider
necessary or appropriate to be disclosed in order to ensure a successful potential
syndication, transfer or sub-participation. In such case, the Agent shall be released form
its obligation of secrecy and confidentiality provided however, that if a potential Transferee
Lender or sub-participant, as well as any rating agency, trustee, professional adviser or
accountant is not already by law subject to any rules of confidentiality, the Agent shall
request the execution of a confidentiality agreement by such potential Transferee Lender,
sub-participant, rating agency, trustee or accountant.
	 
	27.14	 	Change of lending office. A Lender may change its lending office by giving notice to the
Agent and the change shall become effective on the later of:
	 
	(a)	 	the date on which the Agent receives the notice; and
	 
	(b)	 	the date, if any, specified in the notice as the date on which the change will come into
effect.
	 
	27.15	 	Notification. On receiving such a notice, the Agent shall notify the Borrowers and the
Security Trustee; and, until the Agent receives such a notice, it shall be entitled to assume
that a Lender is acting through the lending office of which the Agent last had notice.
	 
	28	 	VARIATIONS AND WAIVERS
	 
	28.1	 	Variations, waivers etc. by Lenders. A document shall be effective to vary, waive, suspend
or limit any provision of a Finance Document, or any Creditor Party’s rights or remedies under
such a provision or the general law, only if the document is signed, or specifically agreed to
by fax, by the Borrowers, by the Agent on behalf of the Majority Lenders, by the Agent and the
Security Trustee in their own rights, and, if the document relates to a Finance Document to
which a Security Party is party, by that Security Party.
	 
	28.2	 	Exclusion of other or implied variations. Except for a document which satisfies the
requirements of Clause 28.1, no document, and no act, course of conduct, failure or neglect to
act, delay or acquiescence on the part of the Creditor Parties or any of them (or any person
acting on behalf of any of them) shall result in the Creditor Parties or any of them (or any
person acting on behalf of any of them) being taken to have varied, waived, suspended or
limited, or being precluded (permanently or temporarily) from enforcing, relying on or
exercising:
	 
	(a)	 	a provision of this Agreement or another Finance Document; or
	 
	(b)	 	an Event of Default; or
	 
	(c)	 	a breach by a Borrower or any other Security Party of an obligation under a Finance Document
or the general law; or
	 
	(d)	 	any right or remedy conferred by any Finance Document or by the general law;

65

 

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

	29	 	NOTICES
	 
	29.1	 	General. Unless otherwise specifically provided, any notice under or in connection with any
Finance Document shall be given by letter, fax or telex; and references in the Finance
Documents to written notices, notices in writing and notices signed by particular persons
shall be construed accordingly.
	 
	29.2	 	Addresses for communications. A notice shall be sent:

	 	 	 	 	 

	(a)

	 	to each Borrower:
	 	85 Akti Miaouli,

Piraeus 185 38,

Greece
	 
	 	 	 	 
	 

	 	 	 	Fax No: +30 210 4531984
	 
	 	 	 	 
	(b)

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

	 	to the Agent, Security
Trustee, Bookrunner
and Arranger:
	 	DekaBank Deutsche Girozentrale

Mainzer Landstraße 16

60329 Frankfurt am Main

Germany
	 
	 	 	 	 
	 

	 	 	 	Fax No: +49 151 527 18146

	 	 	or to such other address as the relevant party may notify the Agent or, if the relevant
party is the Agent or the Security Trustee, the Borrowers, the Lenders and the Security
Parties.
	 
	29.3	 	Effective date of notices. Subject to Clauses 29.4 and 29.5:
	 
	(a)	 	a notice which is delivered personally or posted shall be deemed to be served, and shall take
effect, at the time when it is delivered;
	 
	(b)	 	a notice which is sent by telex or fax shall be deemed to be served, and shall take effect, 2
hours after its transmission is completed.
	 
	29.4	 	Service outside business hours. However, if under Clause 29.3 a notice would be deemed to be
served:
	 
	(a)	 	on a day which is not a business day in the place of receipt; or
	 
	(b)	 	on such a business day, but after 5 p.m. local time,
	 
	 	 	the notice shall (subject to Clause 29.5) be deemed to be served, and shall take effect, at
9 a.m. on the next day which is such a business day.
	 
	29.5	 	Illegible notices. Clauses 29.3 and 29.4 do not apply if the recipient of a notice notifies
the sender within 1 hour after the time at which the notice would otherwise be deemed to be
served that the notice has been received in a form which is illegible in a material respect.

66

 

	29.6	 	Valid notices. A notice under or in connection with a Finance Document shall not be invalid
by reason that its contents or the manner of serving it do not comply with the requirements of
this Agreement or, where appropriate, any other Finance Document under which it is served if:
	 
	(a)	 	the failure to serve it in accordance with the requirements of this Agreement or other
Finance Document, as the case may be, has not caused any party to suffer any significant loss
or prejudice; or
	 
	(b)	 	in the case of incorrect and/or incomplete contents, it should have been reasonably clear to
the party on which the notice was served what the correct or missing particulars should have
been.
	 
	29.7	 	Electronic communication. Any communication to be made between the Agent and a Lender under
or in connection with the Finance Documents may be made by electronic mail or other electronic
means, if the Agent and the relevant Lender:
	 
	(a)	 	agree that, unless and until notified to the contrary, this is to be an accepted form of
communication;
	 
	(b)	 	notify each other in writing of their electronic mail address and/or any other information
required to enable the sending and receipt of information by that means; and
	 
	(c)	 	notify each other of any change to their respective addresses or any other such information
supplied to them.
	 
	 	 	Any electronic communication made between the Agent and a Lender will be effective only when
actually received in readable form and, in the case of any electronic communication made by
a Lender to the Agent, only if it is addressed in such a manner as the Agent shall specify
for this purpose.
	 
	29.8	 	English language. Any notice under or in connection with a Finance Document shall be in
English.
	 
	29.9	 	Meaning of “notice”. In this Clause 28, “notice” includes any demand, consent,
authorisation, approval, instruction, waiver or other communication.
	 
	30	 	SUPPLEMENTAL
	 
	30.1	 	Rights cumulative, non-exclusive. The rights and remedies which the Finance Documents give
to each Creditor Party are:
	 
	(a)	 	cumulative;
	 
	(b)	 	may be exercised as often as appears expedient; and
	 
	(c)	 	shall not, unless a Finance Document explicitly and specifically states so, be taken to
exclude or limit any right or remedy conferred by any law.
	 
	30.2	 	Severability of provisions. If any provision of a Finance Document is or subsequently
becomes void, unenforceable or illegal, that shall not affect the validity, enforceability or
legality of the other provisions of that Finance Document or of the provisions of any other
Finance Document.
	 
	30.3	 	Counterparts. A Finance Document may be executed in any number of counterparts.

67

 

	30.4	 	Third Party rights. A person who is not a party to this Agreement has no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of
this Agreement.
	 
	31	 	LAW AND JURISDICTION
	 
	31.1	 	English law. This Agreement and any non-contractual obligations arising out of or in
connection with it shall be governed by, and construed in accordance with, English law.
	 
	31.2	 	Exclusive English jurisdiction. Subject to Clause 31.3, the courts of England shall have
exclusive jurisdiction to settle any Disputes.
	 
	31.3	 	Choice of forum for the exclusive benefit of Creditor Parties. Clause 31.2 is for the
exclusive benefit of the Creditor Parties, each of which reserves the rights:
	 
	(a)	 	to commence proceedings in relation to any Dispute in the courts of any country other than
England and which have or claim jurisdiction to that Dispute; and
	 
	(b)	 	to commence such proceedings in the courts of any such country or countries concurrently with
or in addition to proceedings in England or without commencing proceedings in England.
	 
	 	 	Neither Borrower shall commence any proceedings in any country other than England in
relation to a Dispute.
	 
	31.4	 	Process agent. Each Borrower irrevocably appoints Messrs HFW Nominees Limited at their
office for the time being, presently at Friary Court, 65 Crutched Friars, London EC3N 3AE,
England to act as its agent to receive and accept on its behalf any process or other document
relating to any proceedings in the English courts which are connected with this Agreement or
any other Finance Document.
	 
	31.5	 	Creditor Party rights unaffected. Nothing in this Clause 31 shall exclude or limit any right
which any Creditor Party may have (whether under the law of any country, an international
convention or otherwise) with regard to the bringing of proceedings, the service of process,
the recognition or enforcement of a judgment or any similar or related matter in any
jurisdiction.
	 
	31.6	 	Meaning of “proceedings”. In this Clause 31, “proceedings” means proceedings of any kind,
including an application for a provisional or protective measure and a “Dispute” means any
dispute arising out of or in connection with this Agreement (including a dispute relating to
the existence, validity or termination of this Agreement) or any non-contractual obligation
arising out of or in connection with this Agreement.

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

68

 

EXECUTION PAGES

	 	 	 	 	 	 	 

	BORROWERS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Georgia Babanara

	 	 	)	 	 	/s/ Georgia Babanara
	for and on behalf of

	 	 	)	 	 	 
	PORTOROSA MARINE CORP.

	 	 	)	 	 	 
	in the presence of:
Catriona Henderson

WATSON, FARLEY & WILLIAMS

89 AKTI MIAOULI

PIRAEUS 185 38 GREECE

	 	)	 	 	/s/ Catriona Henderson
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Georgia Babanara

	 	 	)	 	 	/s/ Georgia Babanara
	for and on behalf of

	 	 	)	 	 	 
	FLORAL MARINE LTD.

	 	 	)	 	 	 
	in the presence of:
Catriona Henderson

WATSON, FARLEY & WILLIAMS

89 AKTI MIAOULI

PIRAEUS 185 38 GREECE

	 	)	 	 	/s/ Catriona Henderson
	 
	 	 	 	 	 	 
	LENDERS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Efstratios Paschalidas

	 	 	)	 	 	/s/ Efstratios Paschalidas
	for and on behalf of

	 	 	)	 	 	 
	DEKABANK DEUTSCHE

	 	 	)	 	 	 
	GIROZENTRALE

	 	 	)	 	 	 
	in the presence of:
Catriona Henderson

WATSON, FARLEY & WILLIAMS

89 AKTI MIAOULI

PIRAEUS 185 38 GREECE

	 	)	 	 	/s/ Catriona Henderson
	 
	 	 	 	 	 	 
	AGENT
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Efstratios Paschalidas

	 	 	)	 	 	/s/ Efstratios Paschalidas
	for and on behalf of

	 	 	)	 	 	 
	DEKABANK DEUTSCHE

	 	 	)	 	 	 
	GIROZENTRALE

	 	 	)	 	 	 
	in the presence of:
Catriona Henderson

WATSON, FARLEY & WILLIAMS

89 AKTI MIAOULI

PIRAEUS 185 38 GREECE

	 	)	 	 	/s/ Catriona Henderson
	 
	 	 	 	 	 	 
	SECURITY TRUSTEE
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Efstratios Paschalidas
	 	 	)	 	 	/s/ Efstratios Paschalidas
	for and on behalf of

	 	 	)	 	 	 
	DEKABANK DEUTSCHE

	 	 	)	 	 	 
	GIROZENTRALE

	 	 	)	 	 	 
	in the presence of:
Catriona Henderson

WATSON, FARLEY & WILLIAMS

89 AKTI MIAOULI

PIRAEUS 185 38 GREECE

	 	)	 	 	/s/ Catriona Henderson

69

 

	 	 	 	 	 	 	 

	BOOKRUNNER
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Efstratios Paschalidas	 	 	)	 	 	/s/ Efstratios Paschalidas
	for and on behalf of

	 	 	)	 	 	 
	DEKABANK DEUTSCHE

	 	 	)	 	 	 
	GIROZENTRALE

	 	 	)	 	 	 
	in the presence of: Catriona Henderson

WATSON, FARLEY & WILLIAMS

89 AKTI MIAOULI

PIRAEUS 185 38 GREECE

	 	)	 	 	/s/ Catriona Henderson
	 
	 	 	 	 	 	 
	ARRANGER
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Efstratios Paschalidas	 	 	)	 	 	/s/ Efstratios Paschalidas
	for and on behalf of

	 	 	)	 	 	 	 
	DEKABANK DEUTSCHE

	 	 	)	 	 	 
	GIROZENTRALE

	 	 	)	 	 	 
	in the presence of:
 Catriona Henderson

WATSON, FARLEY & WILLIAMS

89 AKTI MIAOULI

PIRAEUS 185 38 GREECE

	 	)	 	 	/s/ Catriona Henderson

70

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00181-of-00352.parquet"}]]