Document:

Facility Agreement

 Exhibit 10.3 
 Private and Confidential 
 DATED 6 December 2010 

 RHODES SHIPPING CORPORATION 
 and 
 CRETE SHIPPING CORPORATION (1)

EFG EUROBANK ERGASIAS S.A. (2)
  

 
 FACILITY
AGREEMENT 
 in respect of a loan of up to 
 USD52,000,000 in two tranches 
  

 
 

 

 Index 

 

					
	Clause	  	Page	 
	 1 Purpose and definitions
	  	 	3	  
		
	 2 The Bank’s Commitment, Advance and Use of Proceeds
	  	 	15	  
		
	 3 Interest and Interest Periods
	  	 	16	  
		
	 4 Repayment and prepayment
	  	 	18	  
		
	 5 Commitment commission, fees and expenses
	  	 	20	  
		
	 6 Payments and taxes; Accounts and calculations
	  	 	21	  
		
	 7 Representations and warranties
	  	 	23	  
		
	 8 Undertakings
	  	 	28	  
		
	 9 Conditions
	  	 	35	  
		
	 10 Events of Default
	  	 	36	  
		
	 11 Indemnities
	  	 	40	  
		
	 12 Unlawfulness and increased costs mitigation
	  	 	41	  
		
	 13 Security, set-off and miscellaneous
	  	 	42	  
		
	 14 Accounts
	  	 	44	  
		
	 15 Assignment, transfer and lending office
	  	 	45	  
		
	 16 Notices
	  	 	47	  
		
	 17 Borrowers’ obligations
	  	 	47	  
		
	 18 Governing law
	  	 	49	  
		
	 19 Jurisdiction
	  	 	49	  
		
	 Schedule 1 Form of Drawdown Notice
	  			
		
	 Schedule 2 Conditions precedent
	  			
		
	 Schedule 3 Form of Compliance Certificate
	  			
		
	 Schedule 4 Vessel details
	  			

  
 2 

 THIS AGREEMENT is dated 6 December 2010 and made BETWEEN: 

 

	(1)	RHODES SHIPPING CORPORATION and CRETE SHIPPING CORPORATION as Borrowers; and 

 

	(2)	EFG EUROBANK ERGASIAS S.A. as Bank. 

IT IS AGREED as follows: 
  

	1	PURPOSE AND DEFINITIONS 

  

	1.1	Purpose 

 This Agreement
sets out the terms and conditions upon which the Bank agrees to make available to the Borrowers a facility of up to USD52,000,000 in 2 Tranches of up to USD26,000,000 each (each Tranche to be drawn in up to 5 Advances), for the purpose of
part-financing the purchase and construction price of two double hull product tankers which are to be constructed by the Builder for, and purchased by, the Borrowers. 
  

	1.2	Definitions 

 In this
Agreement, unless the context otherwise requires: 
 “Advance” means the principal amount of each drawing in
respect of the Loan to be made pursuant to Clause 2.3; 
 “Approved Broker” means each of (i) H
Clarkson & Co. Ltd. of St Magnus House, 3 Lower Thames Street, London EC3R 6HE, England, (ii) Arrow Research Ltd. of Harbour House, Chelsea Harbour, London SW10 0XE, England and (iii) Fearnleys AS of Grev Wedels Plass 9, P. O. Box
1158 Sentrum, Oslo N-0107 Norway or such other reputable, independent and first class firm of shipbrokers specialising in the valuation of vessels of the relevant type appointed by the Bank and agreed with the Borrowers; 

“Assignee” is defined in clause 15.3; 
 “Bank” means EFG Eurobank Ergasias S.A., a banking société anonyme duly incorporated under the laws of Greece, having its registered office at 8 Othonos Street, Athens,
Greece, acting for the purposes of this Agreement through its office at 83 Akti Miaouli & Flessa Street, 5th floor, 185 38 Piraeus, Greece (or of such other address as may last have been notified to the Borrowers pursuant to clause 16.2.3);

 “Banking Day” means a day on which dealings in deposits in USD are carried on in the London Interbank
Eurocurrency Market and a day (other than Saturday or Sunday) on which banks are open for general business in London, Piraeus and New York City and, in relation to any payment to be made into or out of China, China (or any other relevant place of
payment under clause 6); 
 “Borrowed Money” means Indebtedness in respect of (i) money borrowed or raised
and debit balances at banks, (ii) any bond, note, loan stock, debenture or similar debt instrument, (iii) acceptance or documentary credit facilities, (iv) receivables sold or discounted (otherwise than on a non-recourse basis), (v)
deferred payments for assets or services acquired, (vi) finance leases and hire purchase contracts, (vii) swaps, forward exchange contracts, futures and other derivatives, (viii) any other transaction (including without limitation
forward sale 

  
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 or purchase agreements) having the commercial effect of a borrowing or raising of money or
of any of (ii) to (vii) above and (ix) guarantees in respect of Indebtedness of any person falling within any of (i) to (viii) above; 
 “Borrowers” means each of Crete Shipping Corporation (“Crete”) and Rhodes Shipping Corporation (“Rhodes”), each of which is incorporated in the Marshall
Islands and has its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960, and in the plural means both of them; 
 “Borrowers’ Security Documents” means, at any relevant time, such of the Security Documents as shall have been executed by the Borrowers or either of them; 

“Break Costs” means the aggregate amount of all losses, premiums, penalties, costs and expenses whatsoever certified by
the Bank at any time and from time to time as having been incurred by it in maintaining or funding the Loan or in liquidating or re employing fixed deposits acquired to maintain the same as a result of either: 

 

	 	(a)	any repayment or prepayment of the Loan or any part thereof otherwise than in accordance with, respectively, clause 4.1 or clause 4.3 whether on a voluntary or
involuntary basis or otherwise howsoever or 

  

	 	(b)	of the Borrowers failing or being incapable of drawing the Loan after a Drawdown Notice has been given; 

“Casualty Amount” means five hundred thousand Dollars (USD500,000) (or the equivalent in any other currency); 

“Certified Copy” means in relation to any document delivered or issued by or on behalf of any company, a copy of such
document certified as a true, complete and up to date copy of the original by any of the directors or officers for the time being of such company or by such company’s attorneys or solicitors; 

“Charter Assignment” means a specific assignment of any Extended Employment Contract required to be executed hereunder by
either Owner in favour of the Bank (including any notices and/or acknowledgements and/or undertakings associated therewith) in such form as the Bank may require in its sole discretion; 

“Classification” means, in relation to each Vessel, the highest class available for a vessel of her type with the
relevant Classification Society; 
 “Classification Society” means, in relation to each Vessel, any IACS
classification society which the Bank shall, at the request of the Borrower, have agreed in writing shall be treated as the classification society in relation to such Vessel for the purposes of the relevant Ship Security Documents; 

“Commitment” means, in relation to each Tranche, or, as the context may require, the Loan, the maximum amount which the
Bank has agreed to lend to the Borrowers under clause 2.1 as reduced by any relevant term of this Agreement; 

“Compliance Certificate” means a certificate substantially in the form set out in schedule 3 signed by the chief
financial officer of the Corporate Guarantor; 

  
 4 

 “Compulsory Acquisition” means, in respect of a Vessel, requisition for
title or other compulsory acquisition including, if that ship is not released therefrom within the Relevant Period, capture, appropriation, forfeiture, seizure, detention, deprivation or confiscation howsoever for any reason (but excluding
requisition for use or hire) by or on behalf of any Government Entity or other competent authority or by pirates, hijackers, terrorists or similar persons; “Relevant Period” means for the purposes of this definition of Compulsory
Acquisition either (i) ninety (90) days or, (ii) if relevant underwriters confirm in writing (in terms satisfactory to the Bank) prior to the end of such ninety (90) day period that such capture, seizure, detention or
confiscation will be fully covered by the relevant Owner’s war risks insurance if continuing for a further period exceeding ten (10) calendar months, the shorter of twelve (12) months and such period at the end of which cover is
confirmed to attach; 
 “Corporate Guarantee” means the guarantee required to be executed hereunder by the
Corporate Guarantor in such form as the Bank may agree or require ; 
 “Corporate Guarantor” means Navios
Maritime Acquisition Corporation, a corporation listed on NYSE and incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 

“Default” means any Event of Default or any event or circumstance which with the giving of notice or lapse of time or the
satisfaction of any other condition (or any combination thereof) would constitute an Event of Default; 
 “Delivery
Date” means, in relation to a Vessel, the date on which title to and possession of that Vessel is transferred from the Builder to the relevant Borrower, which are expected to be, in respect of Vessel A, 31 August 2012, and in respect
of Vessel B, 31 October 2012; 
 “Dollars” and “USD” mean the lawful currency of the USA
and in respect of all payments to be made under any of the Security Documents means funds which are for same day settlement in the New York Clearing House Interbank Payments System (or such other US dollar funds as may at the relevant time be
customary for the settlement of international banking transactions denominated in US dollars); 
 “Drawdown
Date” means, in relation to each Advance, any date being a Banking Day falling during the relevant Drawdown Period, on which the relevant Advance is, or is to be, made available; 

“Drawdown Notice” means, in relation to each Advance, a notice substantially in the form of schedule 1; 

“Drawdown Period” means, in respect of each Tranche, the period commencing on the Execution Date and ending on the
earlier of (i) 31 December 2012 or the latest date on which the relevant Vessel may be delivered under the relevant Shipbuilding Contract after taking into account any permitted delays thereunder and (ii) any date on which the
Commitment is finally cancelled or fully drawn under the terms of this Agreement; 
 “Earnings Account” means,
in respect of each Borrower, an interest bearing USD Account required to be opened hereunder with the Bank in the name of that Borrower designated “[NAME OF BORROWER] — Earnings Account” and includes any other account designated in
writing by the Bank to be an Earnings Account for the purposes of this Agreement; 

  
 5 

 “Earnings Account Pledge” means, in respect of each Earnings Account, the
pledge required to be executed hereunder by the relevant Borrower over its Earnings Account in such form as the Bank may agree or require, and in the plural means all of them; 
 “Encumbrance” means any mortgage, charge, pledge, lien, hypothecation, assignment, title retention, preferential right, option, trust arrangement or security interest or any other
encumbrance, security or arrangement conferring howsoever a priority of payment in respect of any obligation of any person; 

“Environmental Affiliate” means any agent or employee of the Borrower, the Manager or any other Group Member or any other
person having a contractual relationship with the Borrower, the Manager or any other Group Member in connection with any Relevant Vessel or its operation or the carriage of cargo and/or passengers thereon and/or the provision of goods and/or
services on or from any Relevant Vessel; 
 “Environmental Approval” means any consent, authorisation, licence
or approval of any governmental or public body or authorities or courts applicable to any Relevant Vessel or its operation or the carriage of cargo and/or passengers thereon and/or the provision of goods and/or services on or from any Relevant
Vessel required under any Environmental Law; 
 “Environmental Claim” means (i) any claim by, or directive
from, any applicable Government Entity alleging breach of, or non-compliance with, any Environmental Laws or Environmental Approvals or otherwise howsoever relating to or arising out of an Environmental Incident or (ii) any claim by any other
third party howsoever relating to or arising out of an Environmental Incident (and, in each such case, “claim” shall include a claim for damages and/or direction for and/or enforcement relating to clean-up costs, removal, compliance,
remedial action or otherwise) or (iii) any Proceedings arising from any of the foregoing; 
 “Environmental
Incident” means, regardless of cause, (i) any actual or threatened discharge or release of Environmentally Sensitive Material from any Relevant Vessel; (ii) any incident in which Environmentally Sensitive Material is discharged or
released from a vessel other than a Relevant Vessel which involves collision between a Relevant Vessel and such other vessel or some other incident of navigation or operation, in either case, where the Relevant Vessel, the Manager and/or the
relevant Owner and/or the relevant Group Member and/or the relevant Operator are actually, contingently or allegedly at fault or otherwise howsoever liable (in whole or in part) or (iii) any incident in which Environmentally Sensitive Material
is discharged or released from a vessel other than a Relevant Vessel and where such Relevant Vessel is actually or potentially liable to be arrested as a result and/or where the Manager and/or the relevant Owner and/or other Group Member and/or the
relevant Operator are actually, contingently or allegedly at fault or otherwise howsoever liable; 
 “Environmental
Laws” means all laws, regulations, conventions and agreements whatsoever relating to pollution, human or wildlife well-being or protection of the environment (including, without limitation, the United States Oil Pollution Act of 1990 and
any comparable laws of the individual States of the USA); 
 “Environmentally Sensitive Material” means oil, oil
products or any other products or substance which are polluting, toxic or hazardous or any substance the release of which into the environment is howsoever regulated, prohibited or penalised by or pursuant to any Environmental Law; 

  
 6 

 “Event of Default” means any of the events or circumstances listed in
clause 10.1; 
 “Execution Date” means the date on which this Agreement has been executed by all the parties
hereto; 
 “Extended Employment Contract” means, in respect of a Mortgaged Vessel, any time charterparty,
contract of affreightment or other contract of employment of such ship (including the entry of either Vessel in any pool) which has a tenor of not less than twelve (12) months (including any options to renew or extend such tenor); 

“Facility Period” means the period starting on the first Drawdown Date and ending on such date as all obligations
whatsoever of all of the Security Parties under or pursuant to the Security Documents whensoever arising, actual or contingent, have been irrevocably paid, performed and/or complied with; 

“Flag State” means the Republic of Panama or such other state or territory agreed by the Bank, at the request of the
Borrowers, as the “Flag State” of the Vessels for the purposes of the Security Documents; 
 “General
Assignment” means, in respect of each Vessel, the deed of assignment of its earnings, insurances and requisition compensation executed or to be executed by the relevant Owner in favour of the Bank in such form as the Bank may require in its
sole discretion, and in the plural means both of them; 
 “Government Entity” means any national or local
government body, tribunal, court or regulatory or other agency and any organisation of which such body, tribunal, court or agency is a part or to which it is subject; 
 “Group” means the Corporate Guarantor and its subsidiaries but excluding any company which is publicly listed; 
 “Group Member” means any member of the Group; 

“IACS” means the International Association of Classification Societies; 

“Indebtedness” means any obligation howsoever arising (whether present or future, actual or contingent, secured or
unsecured as principal, surety or otherwise) for the payment or repayment of money; 
 “Interest Payment Date”
means, in relation to each Tranche, the last day of an Interest Period and, if an Interest Period is longer than 3 months, the date falling at the end of each successive period of 3 months during such Interest Period starting from its commencement;

 “Interest Period” means each period for the calculation of interest in respect of the Loan or, as the case
may be, Tranche ascertained in accordance with the provisions of clause 3; 
 “ISM Code” means in relation to
its application to the Borrowers, the Vessels and their 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 

  
 7 

 4 December 1993 and incorporated on 19 May 1994 into Chapter IX of the
International Convention for 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 December 1995, 

 as the same may be amended, supplemented or replaced from time to time; 

“ISM Code Documentation” means, in relation to each Vessel, the document of compliance (DOC) and safety management
certificate (SMC) issued by a Classification Society pursuant to the ISM Code in relation to such Vessel within the periods specified by the ISM Code; 
 “ISM SMS” means the safety management system which is required to be developed, implemented and maintained under the ISM Code; 

“ISPS Code” means the International Ship and Port Security Code of the International Maritime Organisation and includes
any amendments or extensions thereto and any regulations issued pursuant thereto; 
 “ISSC” means an
International Ship Security Certificate issued in respect of a Vessel pursuant to the ISPS Code; 
 “Latest
Accounts” means, in respect of any financial half-year or year of the Group, the latest unaudited (in respect of each financial half-year) or audited (in respect of each financial year) financial statements required to be prepared pursuant
to clause 8.1.6; 
 “LIBOR” means, for an Interest Period, the greater of: 

 

	 	(a)	the rate equal to the offered quotation for deposits in USD in an amount comparable with the amount in relation to which LIBOR is to be determined for a period equal
to, or as near as possible equal to, the relevant period which appears on Reuters BBA Page LIBOR 01 at or about 11 a.m. on the second Banking Day before the first day of such period (and, for the purposes of this Agreement, “Reuters BBA Page
LIBOR 01” means the display designated as “Reuters BBA Page LIBOR 01” on the Reuters Service or such other page as may replace LIBOR 01 on that service for the purpose of displaying rates comparable to that rate or on such other
service as may be nominated by the British Bankers’ Association as the information vendor for the purpose of displaying the British Bankers’ Association Interest Settlement Rates for USD) and 

 

	 	(b)	the rate determined by the Bank to be that at which deposits in USD and in an amount comparable with the amount in relation to which LIBOR is to be determined and for a
period equal to the relevant period were being offered by the Bank to prime banks in the London Interbank Market at or about 11 a.m. on the second Banking Day before the first day of such period; 

“Liquidity” means the aggregate of all cash deposits legally and beneficially owned by any Group Member which:

  
 8 

	 	(a)	are free from any Encumbrance other than, in respect of any deposit with the Bank, any Encumbrance given as security for the obligations of the Borrowers under this
Agreement; and 

  

	 	(b)	are otherwise at the free and unrestricted disposal of the relevant Group Member by which it is owned; 

“Loan” means the principal amount borrowed by the Borrowers under this Agreement or (as the context may require) the
principal amount owing to the Bank under this Agreement at any relevant time; 
 “MII & MAP Policy”
means a mortgagee’s interest and (if required by the Bank) pollution risks insurance policy (including additional perils (pollution) cover) in respect of each Mortgaged Vessel to be effected by the Bank to cover the Mortgaged Vessels as the
same may be renewed or replaced annually thereafter and maintained throughout the Facility Period through such brokers, with such underwriters and containing such coverage as may be acceptable to the Bank in its sole discretion, insuring a sum of at
least one hundred and twenty per cent (120%) of the Loan; 
 “Material Adverse Effect” means any event or
occurrence which the Bank reasonably determines has had or could reasonably be expected to have a material adverse effect on (i) the Bank’s rights under, or the security provided by, any Security Document, (ii) the ability of any
Security Party to perform or comply with any of its obligations under any Security Document or (iii) the value or nature of the property, assets, operations, liabilities or financial condition of any Security Party; 

“Management Agreement” means, in respect of each Vessel, the agreement between the relevant Owner and the Manager in a
form previously approved in writing by the Bank; 
 “Manager” means Navios Tankers Management Inc., a company
incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960 or any other person appointed by an Owner, with the prior written consent of the Bank,
as the manager of the relevant Mortgaged Vessel; 
 “Manager’s Undertakings” means, collectively, the
undertakings and assignments required to be executed hereunder by the Manager in favour of the Bank in respect of each of the Vessels each in such form as the Bank may require in its sole discretion (and “Managers’ Undertakings”
means all of them); 
 “Margin” means 3 per cent per annum; 

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

  
 9 

 “Mortgage” means, in relation to each Vessel, the first preferred mortgage
of such Vessel required to be executed hereunder by the Borrower which is the owner thereof in such form as the Bank may agree or require, and in the plural means both of them; 
 “Mortgaged Vessel” means, at any relevant time, a Vessel which is at such time subject to a Mortgage and/or the Earnings, Insurances and Requisition Compensation (each such term as
defined in the relevant Ship Security Documents) of which are subject to an Encumbrance pursuant to the relevant Ship Security Documents and a Vessel shall, for the purposes of this Agreement, be regarded as a Mortgaged Vessel as from whichever
shall be the earlier of (a) her Delivery Date and (b) the date on which the Mortgage of that Vessel has been executed and registered in accordance with this Agreement until whichever shall be the earlier of (i) the payment in full of
the amount required to be paid to the Bank pursuant to clause 4.3 or 4.4 following the Total Loss or sale respectively of such Vessel and (ii) the end of the Facility Period 

“Net Profit” means for each financial year of the Corporate Guarantor, the Net Profit as set out in the relevant Latest
Accounts; 
 “Net Worth” means by reference to the Latest Accounts, the Total Assets (based on book values) less
Total Liabilities of the Group; 
 “NMH” means Navios Maritime Holdings Inc., a corporation listed on NYSE and
incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 
 “NYSE” means the stock exchange run by NYSE Euronext with the main exchange located in the United States of America, originally an acronym for the New York Stock Exchange; 

“Operator” means any person who is from time to time during the Facility Period concerned in the operation of a Relevant
Vessel and falls within the definition of “Company” set out in rule 1.1.2 of the ISM Code; 
 “Owner”
means, in relation to Vessel A, Rhodes and in relation to Vessel B, Crete, and in the plural means both of them; 

“Permitted Encumbrance” means any Encumbrance created pursuant to or expressly permitted by the Security Documents and
Permitted Liens or otherwise permitted by the Bank; 
 “Permitted Liens” means any lien on a Vessel for
master’s, officer’s or crew’s wages outstanding in the ordinary course of trading, any lien for salvage and any ship repairer’s or outfitter’s possessory lien for a sum not (except with the prior written consent of the Bank)
exceeding the Casualty Amount (as defined in the relevant Mortgage); 
 “Pertinent Jurisdiction” means any
jurisdiction in which or where any Security Party is incorporated, resident, domiciled, has a permanent establishment or assets, carries on, or has a place of business or is otherwise howsoever effectively connected; 

“Predelivery Security Assignment” means, in respect of each Vessel, a deed of assignment of the Shipbuilding Contract and
of the Refund Guarantee in respect thereof in such form as the Bank may agree or require and in the plural means both of them; 

  
 10 

 “Proceedings” means any litigation, arbitration, legal action or complaint
or judicial, quasi-judicial or administrative proceedings whatsoever arising or instigated by anyone in any court, tribunal, public office or other forum whatsoever and wheresoever (including, without limitation, any action for provisional or
permanent attachment of any thing or for injunctive remedies or interim relief and any action instigated on an ex parte basis); 

“Receiving Bank” means Deutsche Bank Trust Company Americas, New York, USA or such other bank as may from time to time be
notified by the Bank to the Borrowers; 
 “Refund Guarantee” means each of the Vessel A Refund Guarantee and the
Vessel B Refund Guarantee and in the plural means both of them; 
 “Refund Guarantor” means each of the Vessel A
Refund Guarantor and the Vessel B Refund Guarantor and in the plural means both of them; 
 “Registry” means, in
relation to each Vessel, the office of the registrar, commissioner or representative of the Flag State, who is duly empowered to register such Vessel, the relevant Owner’s title thereto and the relevant Mortgage under the laws and flag of the
Flag State; 
 “Relevant Tranche” means, in respect of Vessel A, Tranche A, and in respect of Vessel B, Tranche
B; 
 “Repayment Dates” means, in respect of each Tranche, subject to clause 6.3, each of the dates falling at
quarterly intervals after the Drawdown Date in respect of the Advance referred to in Clause 2.3.(e) in respect of such Tranche, up to and including the date falling 96 months after such Drawdown Date; 

“Required Authorisation” means any authorisation, consent, declaration, licence, permit, exemption, approval or other
document, whether imposed by or arising in connection with any law, regulation, custom, contract, security or otherwise howsoever which must be obtained at any time from any person, Government Entity or central bank or other self-regulating or
supra-national authority in order to enable the Borrowers lawfully to draw the Loan and/or to enable any Security Party lawfully and continuously to continue its corporate existence and/or perform all its obligations whatsoever whensoever arising
and/or grant security under the relevant Security Documents and/or to ensure the continuous validity and enforceability thereof; 

“Required Security Amount” means the amount in USD (as certified by the Bank) which is at any relevant time 125% of the
Loan; 
 “Retention Account” means, an interest bearing USD account in the name of the Borrowers opened or (as
the context may require) to be opened by the Borrowers with the Bank and includes any sub-accounts thereof and any other account designated in writing by the Bank to be the Retention Account for the purposes of this Agreement; 

“Retention Account Pledge” means the pledge required to be executed hereunder by the Borrowers over the Retention Account
in such form as the Bank may agree or require;; 
 “Retention Amount” means, in relation to any Retention Date
and each Tranche, such sum as shall be the aggregate of: 
  

	 	(c)	one-third (1/3rd) of the repayment instalment in respect of the relevant Tranche falling due for payment pursuant to clause 4.1 (as the same may have been reduced

  
 11 

 by any prepayment) on the next Repayment Date in respect of such Tranche after the relevant
Retention Date; and 
  

	 	(d)	the applicable fraction (as hereinafter defined) of the aggregate amount of interest falling due for payment in respect of each part of the relevant Tranche during and
at the end of each Interest Period in respect thereof current at the relevant Retention Date and, for this purpose, the expression “applicable fraction” in relation to each Interest Period shall mean a fraction having a numerator of
one and a denominator equal to the number of Retention Dates falling within the relevant Interest Period; 

“Retention Dates” means, in relation to each Tranche, the date falling thirty (30) days after the Delivery Date in
respect of the Vessel in respect of which such Tranche was made available, and each of the dates falling at monthly intervals after such date and prior to the final Repayment Date; 

“Security Documents” means this Agreement, the Predelivery Security Assignments, the Mortgages, the General Assignments,
the Charter Assignments, the Earnings Account Pledges, the Retention Account Pledge, the Corporate Guarantee, the Manager’s Undertakings and any other documents as may have been or shall from time to time after the date of this Agreement be
executed in favour of the Bank to guarantee and/or to govern and/or to secure payment of all or any part of the Loan, interest thereon and other moneys from time to time owing by the Borrowers pursuant to this Agreement (whether or not any such
document also guarantees and/or secures moneys from time to time owing pursuant to any other document or agreement); 

“Security Party” means the Borrowers, the Corporate Guarantor, the Manager or any other person who may at any time be a
party to any of the Security Documents (other than the Bank); 
 “Security Value” means the amount in USD (as
certified by the Bank) which, at any relevant time, is the aggregate of (i) the Valuation Amounts of the Vessels as most recently determined in clause 8.2.2 and (ii) the market value of any additional security (or, in the case of cash
Dollars, its face value) the at that time held by the Bank and provided under clause 8.2.1 or otherwise; 
 “Seller”
means in relation to Vessel A, the Vessel A Seller, and to Vessel B, the Vessel B Seller; 
 “Shareholder”
means, Aegean Sea Maritime Holdings Inc., a company incorporated in the Marshall Islands and having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, MH96960; 

“Ship Security Documents” means in relation to each Vessel, the Mortgage, the General Assignment, any Charter Assignment
and the Manager’s Undertaking in respect of such Vessel; 
 “Shipbuilding Contract” means each of the
Vessel A Shipbuilding Contract and the Vessel B Shipbuilding Contract and in the plural means both of them; 

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

  
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 “Taxes” includes all present and future income, corporation, capital or
value-added taxes and all stamp and other taxes and levies, imposts, deductions, duties, charges and withholdings whatsoever together with interest thereon and penalties in respect thereto, if any, and charges, fees or other amounts made on or in
respect thereof (and “Taxation” shall be construed accordingly); 
 “Total Assets” and “Total
Liabilities” mean, respectively, the total assets and total liabilities of the Group as evidenced at any relevant time by the Latest Accounts, in which they shall have been calculated by reference to the meanings assigned to them in
accordance with US GAAP provided that cash shall be deducted from Total Assets and Total Liabilities; 
 “Total
Loss” means, in respect of each Vessel: 
  

	 	(e)	actual, constructive, compromised, agreed or arranged total loss of such Vessel; or 

 

	 	(f)	Compulsory Acquistion; or 

  

	 	(g)	any hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of such Vessel not falling within the definition of Compulsory Acquisition by
any Government Entity, or by persons allegedly acting or purporting to act on behalf of any Government Entity, unless such Vessel be released and restored to the relevant Owner within ninety (90) days after such incident;

 “Tranche A” means the amount of up to USD26,000,000, being the aggregate of all of the Advances
to be made available by the Bank to the Borrowers to assist Rhodes in its acquisition of Vessel A; 
 “Tranche
B” means the amount of up to USD26,000,000, being the aggregate of all of the Advances to be made available by the Bank to the Borrowers to assist Crete in its acquisition of Vessel B; and 

“Tranche” means either of Tranche A or Tranche B and in the plural means both of them 

“Transactions” means together (i) a private offering of US$400,000,000 First Priority Ship Mortgage Notes due in
2017 (the “Notes”) issued by the Corporate Guarantor and Navios Acquisition Finance (US) Inc. (together, the “Issuers”) and (ii) an exchange offer for, and related public issuance of notes in exchange for, the
Notes that the Issuers are required to execute and issue pursuant to the Indenture and a Registration Rights Agreement relating to the Notes; 
 “Transferee” is defined in clause 15.4; and 

“U.S.” means the United States of America; 
 “Unlawfulness” means any event or circumstance which either is or, as the case may be, might in the reasonable opinion of the Bank become the subject of a notification by the Bank to the
Borrowers under clause 12.1; and 
 “Underlying Documents” means, together, the Shipbuilding Contracts, the
Refund Guarantees, any Extended Employment Contracts and the Management Agreements ; 
 “Valuation Amount”
means, in respect of each Mortgaged Vessel, the value thereof as most recently determined under clause 8.2.2; and 

  
 13 

 “Vessel” means each of Vessel A and Vessel B and in the plural means both
of them. 
 Words and expressions defined in Schedule 4 (Vessel Details) shall have the meanings given to them therein as if the
same were set out in full in this clause 1.2. 
  

	1.3	Construction 

 In this
Agreement, unless the context otherwise requires: 
  

	1.3.1	clause headings and the index are inserted for convenience of reference only and shall be ignored in the construction of this Agreement; 

 

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

  

	1.3.3	references to (or to any specified provision of) this Agreement or any other document shall be construed as references to this Agreement, that provision or that
document as in force for the time being and as duly amended and/or supplemented and/or novated; 

  

	1.3.4	references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of
law) of any Government Entity, central bank or any self-regulatory or other supra-national authority; 

  

	1.3.5	references to any person in or party to this Agreement shall include reference to such person’s lawful successors and assigns and references to the Bank shall also
include a Transferee; 

  

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

  

	1.3.7	references to a time of day are, unless otherwise stated, to London time; 

  

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

  

	1.3.9	references to a “guarantee” include references to an indemnity or any other kind of assurance whatsoever (including, without limitation, any kind of
negotiable instrument, bill or note) against financial loss or other liability including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and
“guaranteed” shall be construed accordingly; 

  

	1.3.10	references to any statute or other legislative provision are to be construed as references to any such statute or other legislative provision as the same may be re
enacted or modified or substituted by any subsequent statute or legislative provision (whether before or after the date hereof) and shall include any regulations, orders, instruments or other subordinate legislation issued or made under such statute
or legislative provision; 

  

	1.3.11	a certificate by the Bank as to any amount due or calculation made or any matter whatsoever determined in connection with this Agreement shall be conclusive and binding
on the Borrowers except for manifest error; 

  

	1.3.12	if any document, term or other matter or thing is required to be approved, agreed or consented to by the Bank such approval, agreement or consent must be obtained in
writing unless the contrary is stated; 

  
 14 

	1.3.13	time shall be of the essence in respect of all obligations whatsoever of the Borrowers under this Agreement, howsoever and whensoever arising; and

  

	1.3.14	the words “other” and “otherwise” shall not be construed eiusdem generis with any foregoing words where a wider construction is possible.

  

	1.4	Accounting Terms and references to currencies 

 All accounting terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with generally accepted international accounting principles (or such other accounting
principles as the Bank deems appropriate). 
  

	1.5	Contracts (Rights of Third Parties Act) 1999 

 Except for clause 18.6.4 no part of this Agreement shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement. 

 

	2	THE BANK’S COMMITMENT, ADVANCE AND USE OF PROCEEDS 

  

	2.1	The Commitment 

  

	In	reliance upon each of the representations and warranties in clause 7, the Bank agrees to pay to the Builder by way of loan to the Borrowers on the terms of this
Agreement the principal sum of up to USD52,000,000 in two equal Tranches of up to USD26,000,000 each in up to five Advances. 

  

	2.2	Advance 

 On the terms and
subject to the conditions of this Agreement, each Tranche shall be advanced in up to five (5) Advances on the relevant Drawdown Dates following receipt by the Bank from the Borrowers of Drawdown Notices not later than 10 a.m. on the second
Banking Day before each proposed Drawdown Date. A Drawdown Notice shall be effective on actual receipt by the Bank and, once given, shall, subject as provided in clause 3.6.1, be irrevocable. 

 

	2.3	Amount 

 The principal
amount specified in each Drawdown Notice for borrowing on the Drawdown Dates shall, subject to the terms of this Agreement, in respect of each Tranche, not exceed: 
  

	 	(a)	USD6,500,000 in respect of the instalment payable to the Builder under the relevant Shipbuilding Contract after the relevant Refund Guarantee has been issued;

  

	 	(b)	USD2,600,000 in respect of the steel cutting instalment payable to the Builder under the relevant Shipbuilding Contract; 

 

	 	(c)	USD2,600,000 in respect of the keel-laying instalment payable to the Builder under the relevant Shipbuilding Contract; 

 

	 	(d)	USD5,200,000 in respect of the load-out instalment payable to the Builder under the relevant Shipbuilding Contract; and 

  
 15 

	 	    (e)	the lesser of (i) USD9,100,000 and (ii) such amount as when added to the already drawn Advances in respect of that Tranche will be 60% of the Valuation Amount
of relevant Vessel as at her Delivery Date. 

  

	2.4	Availability 

 Upon
receipt of a Drawdown Notice complying with the terms of this Agreement the Bank shall, subject to the provisions of clause 9, make each Advance available to the Borrowers on the relevant Drawdown Date in accordance with clause 2.2. The Borrowers
acknowledge that payment of each Advance to the Builder in accordance with clause 2.2 shall satisfy the obligation of the Bank to lend that part of the Commitment to the Borrowers under this Agreement. 

 

	2.5	Cancellation 

 If any part
of the Loan is not drawn down by the end of the Drawdown Period, the Commitment shall thereupon be automatically cancelled and the Bank shall have no further obligation under this Agreement. 

 

	2.6	Use of Proceeds 

 Without
prejudice to the Borrowers’ obligations under clause 8.1.4, the Bank shall have no responsibility for the Borrowers’ use of the proceeds of the Loan. 
  

	3	INTEREST AND INTEREST PERIODS 

  

	3.1	Normal interest rate 

 The
Borrowers agree to pay interest on each Tranche in respect of each Interest Period relating thereto on each Interest Payment Date (or, in the case of Interest Periods of more than three (3) months, by instalments, the first three
(3) months from the commencement of the Interest Period and the subsequent instalments at intervals of three (3) months) at the rate per annum determined by the Bank to be the aggregate of (a) the Margin and (b) LIBOR for such
period. 
  

	3.2	Selection of Interest Periods 

 The Borrowers may by notice received by the Bank not later than 10 a.m. on the second Banking Day before the start of each Interest Period request that such Interest Period shall have a length of one (1),
three (3) or six (6) months or such other period as the Borrowers may select and the Bank may, subject to the same being available in the London Interbank Market, agree. 

 

	3.3	Determination of Interest Periods 

 The length of each Interest Period shall be as requested by the Borrowers under clause 3.2 but so that: 
  

	3.3.1	the first Interest Period in respect of each Tranche shall start on the Drawdown Date in respect of the first Advance in respect of that Tranche, and each subsequent
Interest Period shall start on the last day of the previous Interest Period; 

  
 16 

	3.3.2	the first Interest Period in respect of each subsequent Advance shall commence on its Drawdown Date and terminate simultaneously with the Interest Period which is then
current for the Tranche under which the Advance is made available; 

  

	3.3.3	if any Interest Period would otherwise overrun a Repayment Date, then, in the case of the last Repayment Date, such Interest Period shall end on such Repayment Date,
and in the case of any other Repayment Date the relevant Tranche shall be divided into parts so that there is one part in the amount of the repayment instalment due on each Repayment Date falling in that Interest Period and having an Interest Period
ending on the relevant Repayment Date and another part consisting of the balance of the relevant Tranche having an Interest Period ascertained in accordance with the other provisions of this clause 3; and 

 

	3.3.4	if the Borrowers fail to specify the length of an Interest Period in accordance with the provisions of clause 3.2 and this clause 3.3 such Interest Period shall last
three months or such other period as complies with this clause 3.3. 

  

	3.4	Default interest 

 If the
Bank fails to receive any sum whatsoever on its due date for payment under any of the Security Documents, the Borrowers must pay interest on such sum on demand from the due date up to the date of actual payment (as well after as before judgment) at
a rate determined by the Bank under this clause 3.4. The period starting on such due date and ending on such date of payment shall be divided into successive periods of not more than three (3) months as selected by the Bank each of which (other
than the first, which shall start on such due date) shall start on the last day of the preceding such period. The rate of interest applicable to each such period shall be the aggregate (as determined by the Bank) of (a) two and a half
(2.5) per cent per annum, (b) the Margin and (c) LIBOR for such period. Such interest shall be due and payable on the last day of each such period as determined by the Bank and each such day shall be treated as an Interest Payment
Date, provided that if such unpaid sum is an amount of principal which became due and payable, by reason of a declaration by the Bank under clause 10.2 or a prepayment pursuant to clauses 4.3, 4.4, 8.2 or 12.1, on a date other than an Interest
Payment Date relating thereto, the first such period selected by the Bank shall be of a length equal to the period between the due date of such principal sum and such Interest Payment Date and interest shall be payable on such principal sum during
such period at a rate of two and a half (2.5) per cent above the rate applicable immediately before it shall have become so due and payable. If, for the reasons specified in clause 3.6.1, the Bank is unable to determine a rate in accordance
with the provisions of this clause 3.4, interest on any sum not paid on its due date for payment shall be calculated at a rate determined by the Bank to be two and a half (2.5) per cent per annum above the aggregate of the Margin and the cost
of funds to the Bank compounded at such intervals as the Bank selects. 
  

	3.5	Notification of Interest Periods and interest rate 

 The Bank agrees to notify the Borrowers promptly of the length of each Interest Period and of each rate of interest determined by it under this clause 3. 

 

	3.6	Market disruption; non-availability 

  

	3.6.1	Whenever, at any time prior to the start of any Interest Period, the Bank determines: 

 

	 	(a)	that adequate and fair means do not exist for determining LIBOR during such Interest Period; or 

  
 17 

	 	(b)	that deposits in USD are not available to the Bank in the London Interbank Market in its ordinary course of business in sufficient amounts to fund the Loan for such
Interest Period; 

 the Bank shall promptly give notice (a “Determination Notice”) thereof to the
Borrowers. A Determination Notice shall give brief details of the circumstances giving rise to its issue. After the giving of any Determination Notice any undrawn amount of the Commitment may not be borrowed until notice to the contrary is given to
the Borrowers by the Bank; 
  

	3.6.2	upon a Determination Notice being given, the Borrower and the Bank shall discuss the same in order to agree an alternative basis for maintaining the Loan, but if they
are unable to agree an alternative basis within 30 days of the date of the Determination Notice, then 40 days after the Determination Notice being given, the Bank shall certify an alternative basis (such basis, or if agreed, the basis agreed by the
Bank and the Borrower, the “Substitute Basis”) for maintaining the Loan. The Substitute Basis may include alternative interest periods, alternative currencies or alternative rates of interest but must include a margin above the cost of
funds to the Bank equivalent to the Margin. Each Substitute Basis certified to the Borrowers or agreed shall take effect in accordance with its terms from the date specified in the Determination Notice until such time as the Bank notifies the
Borrowers that none of the circumstances specified in clause 3.6.1 continues to exist whereupon the normal interest rate fixing provisions of this Agreement shall again apply. If the Borrower does not agree with any Substitute Basis certified by the
Bank if there is no agreement between the parties, then the Borrower may prepay the Loan or the relevant part thereof, and the terms of Clause 4.5 and 4.6 shall apply to any such prepayment 

 

	4	REPAYMENT AND PREPAYMENT 

  

	4.1	Repayment 

 Subject as
otherwise provided in this Agreement, the Borrowers must repay each Tranche by 32 equal quarterly instalments of USD345,000 each, one such instalment to be repaid on each of the Repayment Dates and a balloon instalment of USD14,960,000 to be repaid
on the relevant final Repayment Date. 
 If the Commitment in respect of either Tranche is not drawn in full, the amount of each
repayment instalment including the said balloon instalment for that Tranche shall be reduced proportionately. 
  

	4.2	Voluntary prepayment 

 The
Borrowers may prepay the Loan in whole or part (being USD500,000 or any larger sum which is a whole multiple of USD500,000) on any Interest Payment Date relating to the part of the Loan to be repaid without premium or penalty. 

 

	4.3	Mandatory Prepayment on Total Loss 

 On the date falling ninety (90) days after that on which a Mortgaged Vessel became a Total Loss or, if earlier, on the date upon which the relevant insurance proceeds are, or Requisition Compensation
(as defined in the Mortgage for such Vessel) is, received by the relevant Borrower (or the Bank pursuant to the Security Documents), the Borrowers must prepay the Relevant Proportion of the Loan. 

  
 18 

	4.3.1	Interpretation 

 For the purpose
of this Agreement, a Total Loss shall be deemed to have occurred: 
  

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

  

	 	(b)	in the case of a constructive total loss of a Vessel, upon the date and at the time notice of abandonment of the ship is given to the then insurers of such Vessel
(provided a claim for total loss is admitted by such insurers) or, if such insurers do not immediately admit such a claim, at the date and at the time at which either a total loss is subsequently admitted by such insurers or a total loss is
subsequently adjudged by a competent court of law or arbitration tribunal to have occurred; 

  

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

  

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

 

	 	(e)	in the case of hijacking, theft, condemnation, capture, seizure, arrest, detention or confiscation of a Vessel (other than within the definition of Compulsory
Acquisition) by any Government Entity, or by persons allegedly acting or purporting to act on behalf of any Government Entity, which deprives an Owner of the use of such Vessel for more than ninety (90) days, upon the expiry of the Relevant
Period where “Relevant Period” means, for the purposes of this clause 4.3.1(e), either (i) the period of ninety (90) days after the date upon which the relevant incident occurred or, (ii) if relevant underwriters confirm in
writing (in customary terms) prior to the end of such ninety (90) day period that such capture, seizure, detention or confiscation will be covered by the relevant Owner’s war risks insurance if continuing for a further period exceeding ten
(10) calendar months, the shorter of twelve (12) months and such period at the end of which cover is confirmed to attach. 

  

	4.4	Mandatory prepayment on sale of Mortgaged Vessel 

 On the date of completion of the sale of any Mortgaged Vessel the Borrowers must prepay the Relevant Proportion of the Loan. 

 

	4.5	Interpretation 

 In
clauses 4.3 and 4.4: 
  

	 	(a)	“Relevant Vessel” means the Vessel which is sold or becomes a Total Loss; 

 

	 	(b)	“Relevant Tranche” means the Tranche which has been made available hereunder to finance the acquisition of the Relevant Vessel; and

  

	 	(c)	“Relevant Proportion” means the higher of (a) the Relevant Tranche and (b) such amount of the Loan as will be required to be prepaid so that
the Valuation Amount of the Vessel remaining subject to a Mortgage after such prepayment is at least 140% of the Loan after such prepayment. 

  
 19 

	4.6	Amounts payable on prepayment 

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

	4.6.1	accrued interest on the amount of the Loan to the date of such prepayment; 

 

	4.6.2	any additional amount payable under clauses 6.6 or 11.2; and 

  

	4.6.3	all other sums payable by the Borrowers to the Bank under this Agreement or any of the other Security Documents including, without limitation, any accrued commitment
commission payable under clause 5.1 and any Break Costs. 

  

	4.7	Notice of prepayment; reduction of repayment instalments 

  

	4.7.1	No prepayment may be effected under clause 4.2 unless the Borrowers shall have given the Bank at least fifteen (15) days’ prior written notice of their
intention to make such prepayment. Every notice of prepayment shall be effective only on actual receipt by the Bank, shall be irrevocable, shall specify the amount to be prepaid and shall oblige the Borrowers to make such prepayment on the date
specified. 

  

	4.7.2	Any amounts prepaid pursuant to clause 4.2 shall be applied against the Loan pro rata between the Tranches in reducing the repayment instalments of each Tranche
(including the Balloon Instalment) pro rata. 

  

	4.7.3	Any amounts prepaid pursuant to clauses 4.3 and 4.4 shall be applied fully against the Relevant Tranche and thereafter shall be applied pro rata against the repayment
instalments of the remaining Tranche which are at that time outstanding (including the Balloon Instalment). 

  

	4.7.4	The Borrowers may not prepay any part of the Loan except as expressly provided in this Agreement. 

 

	4.7.5	No amount prepaid may be reborrowed. 

  

	5	COMMITMENT COMMISSION, FEES AND EXPENSES 

  

	5.1	Fees 

 The Borrowers agree
to pay to the Bank: 
  

	5.1.1	on the date of this Agreement, an arrangement fee of USD400,000; 

  

	5.1.2	on each of the dates falling at three (3) monthly intervals commencing on the date falling three (3) months after the date of this Agreement until the end of
the Drawdown Period, commitment commission computed from the date of this Agreement (in the case of the first payment of commission) and from the date of the preceding payment of commission (in the case of each subsequent payment) at the rate of
zero point five per cent. (0.5%) per annum on the daily undrawn maximum available Commitment; and 

  

	5.1.3	on each Interest Payment Date and until the end of the Facility Period, a consultancy fee at the rate of zero point five per cent. (0.5%) per annum on the amount of the
Loan. 

  
 20 

 The fee referred to in clause 5.1.1 and the commitment commission referred to in clause
5.1.2 must be paid by the Borrowers to the Bank regardless of whether any part of the Commitment is ever advanced and in each case is not refundable. 
  

	5.2	Expenses 

 The Borrowers
agree to reimburse the Bank on a full indemnity basis on demand for all expenses and/or disbursements whatsoever certified by the Bank as having been incurred by it from time to time and at any time: 

 

	5.2.1	in connection howsoever with the negotiation, preparation, execution and, where relevant, registration of the Security Documents and of any contemplated or actual
amendment, indulgence or the granting of any waiver or consent howsoever in connection with any of the Security Documents; and 

  

	5.2.2	in contemplation or furtherance of, or otherwise howsoever in connection with, the exercise or enforcement of, or preservation of any rights, powers, remedies or
discretion under any of the Security Documents or any amendment thereto or consideration of the Bank’s rights thereunder or any action proposed or taken with interest at the rate referred to in clause 3.4 from the date on which such expenses
and/or disbursements were incurred to the date of payment (as well after as before judgment). 

  

	5.3	Value Added Tax 

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

	5.4	Stamp and other duties 

The Borrowers must pay all stamp, documentary, registration or other like duties or taxes (including any duties or taxes payable by the
Bank) imposed on or in connection with any of the Shipbuilding Contracts, the Management Agreements, the Security Documents or the Loan and agree to indemnify the Bank against any liability arising by reason of any delay or omission by either
Borrower to pay such duties or taxes. 
  

	6	PAYMENTS AND TAXES; ACCOUNTS AND CALCULATIONS 

  

	6.1	No set-off or counterclaim 

All payments to be made by the Borrowers under any of the Security Documents must be made in full, without any set-off or counterclaim
whatsoever and, subject to clause 6.6, free and clear of any deductions or withholdings, in USD not later than 11 a.m. London time on the due date to the account of the Bank at the Receiving Bank or to such other account at such other bank in such
place as the Bank may from time to time notify to the Borrowers. 
  

	6.2	Payment by the Bank 

 The
proceeds of the Loan to be advanced by the Bank to the Borrowers under this Agreement must be remitted in USD on the relevant Drawdown Date to the account or accounts specified in the relevant Drawdown Notice. 

  
 21 

	6.3	Non-Banking Days 

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

	6.4	Calculations 

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

 

	6.5	Currency of account 

 If
any sum due from the Borrowers under any of the Security Documents, or under any order or judgment given or made in relation thereto or for any other reason whatsoever, must be converted from the currency (“the first currency”) in which
the same is payable thereunder into another currency (“the second currency”) for the purpose of (i) making or filing a claim or proof against the Borrowers, (ii) obtaining an order or judgment in any court or other tribunal or
(iii) enforcing any order or judgment given or made in relation thereto, the Borrowers undertake to indemnify and hold harmless the Bank from and against any loss suffered as a result of any discrepancy between (a) the rate of exchange
used for such purpose to covert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Bank may in the ordinary course of business purchase the first currency with the second
currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof. Any amount due from the Borrowers under this clause 6.5 shall be due as a separate debt and shall not be affected by
judgment being obtained for any other sums due under or in respect of any of the Security Documents and the term “rate of exchange” includes any premium and costs of exchange payable in connection with the purchase of the first currency
with the second currency. 
  

	6.6	Grossing-up for Taxes 

 If
at any time the Borrowers must make any deduction or withholding in respect of Taxes from any payment due under any of the Security Documents, the sum due from the Borrowers in respect of such payment must then be increased to the extent necessary
to ensure that, after the making of such deduction or withholding, the Bank receives on the due date for such payment (and retains, free from any liability in respect of such deduction or withholding), a net sum equal to the sum which it would have
received had no such deduction or withholding been made and the Borrowers agree to indemnify the Bank on demand against any losses or costs certified by the Bank to have been incurred by it by reason of any failure of the Borrowers to make any such
deduction or withholding or by reason of any increased payment not being made on the due date for such payment. The Borrowers must promptly deliver to the Bank any receipts, certificates or other proof evidencing the amounts (if any) paid or payable
in respect of any deduction or withholding as aforesaid. 
  

	6.7	Loan account 

 The Bank
agrees to maintain a control account showing the Loan and other sums owing by the Borrowers under the Security Documents and all payments in respect thereof being made 

  
 22 

 from time to time. The control account shall, in the absence of manifest error, be
conclusive as to the amount from time to time owing by the Borrowers under the Security Documents. 
  

	6.8	Bank may assume receipt 

Where any sum is to be paid under the Security Documents to the Bank, the Bank may assume that the payment will be made when due and the
Bank may (but shall not be obliged to) make such sum available to the person so entitled. If it proves to be the case that such payment was not made to the Bank, then the person to whom such sum was so made available must on request refund such sum
to the Bank together with interest thereon sufficient to compensate the Bank for the cost of making available such sum up to the date of such repayment and the person by whom such sum was payable must indemnify the Bank for any and all loss or
expense which the Bank may sustain or incur as a consequence of such sum not having been paid on its due date. 
  

	6.9	Partial payments 

 If, on
any date on which a payment is due to be made by the Borrowers under any of the Security Documents, the amount received by the Bank from the Borrowers falls short of the total amount of the payment due to be made by the Borrowers on such date then,
without prejudice to any rights or remedies available to the Bank under any of the Security Documents, the Bank must apply the amount actually received from the Borrowers in or towards discharge of the obligations of the Borrowers under the Security
Documents in the following order, notwithstanding any appropriation made, or purported to be made, by the Borrowers: 
  

	6.9.1	first, in or towards payment, on a pro-rata basis, of any unpaid costs and expenses of the Bank under any of the Security Documents; 

 

	6.9.2	secondly, in or towards payment of any fees payable to the Bank under, or in relation to, the Security Documents which remain unpaid; 

 

	6.9.3	thirdly, in or towards payment to the Bank of any accrued interest owing in respect of the Loan which shall have become due under any of the Security Documents but
remains unpaid; 

  

	6.9.4	fourthly, in or towards payment to the Bank of any principal in respect of the Loan which shall have become due but remains unpaid; 

 

	6.9.5	fifthly, in or towards payment to the Bank for any loss suffered by reason of any such payment in respect of principal not being effected on an Interest Payment Date
relating to the part of the Loan repaid and which amounts are so payable under this Agreement; and 

  

	6.9.6	sixthly, in or towards payment to the relevant person of any other sum which shall have become due under any of the Security Documents but remains unpaid (and, if more
than one such sum so remains unpaid, on a pro rata basis). 

 The order of application set out in clauses 6.9.1 to
6.9.6 may be varied by the Bank without any reference to, or consent or approval from, the Borrowers. 
  

	7	REPRESENTATIONS AND WARRANTIES 

  

	7.1	Continuing representations and warranties 

  
 23 

 The Borrowers represent and warrant to the Bank that: 

 

	7.1.1	Due incorporation 

 each of the
Security Parties is duly incorporated and validly existing in good standing, under the laws of its respective country of incorporation, in each case, as a corporation and has power to carry on its respective businesses as it is now being conducted
and to own their respective property and other assets to which it has unencumbered legal and beneficial title except as disclosed to the Bank in writing; 
  

	7.1.2	Corporate power 

 each of the
Security Parties has power to execute, deliver and perform its obligations and, as the case may be, to exercise its rights under the Underlying Documents and the Security Documents to which it is a party; all necessary corporate, shareholder and
other action has been taken to authorise the execution, delivery and on the execution of the Security Documents performance of the same and no limitation on the powers of the Borrowers to borrow or any other Security Party to howsoever incur
liability and/or to provide or grant security will be exceeded as a result of borrowing any part of the Loan; 
  

	7.1.3	Binding obligations 

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

 

	7.1.4	No conflict with other obligations 

 the execution and delivery of, the performance of their obligations under, and compliance with the provisions of, the Underlying Documents and the Security Documents by the relevant Security Parties will
not (i) contravene any existing applicable law, statute, rule or regulation or any judgment, decree or permit to which any Security Party or other member of the Group is subject, (ii) conflict with, or result in any breach of any of the
terms of, or constitute a default under, any agreement or other instrument to which any Security Party or any other member of the Group is a party or is subject or by which it or any of its property is bound, (iii) contravene or conflict with
any provision of the constitutional documents of any Security Party or (iv) result in the creation or imposition of, or oblige any of the Security Parties to create, any Encumbrance (other than a Permitted Encumbrance) on any of the
undertakings, assets, rights or revenues of any of the Security Parties; 
  

	7.1.5	No default 

 no Default has
occurred; 
  

	7.1.6	No litigation or judgments 

 no
Proceedings are current, pending or, to the knowledge of the officers of either Borrower, threatened against any of the Security Parties or any other Group Members or their assets which could have a Material Adverse Effect and there exist no
judgments, orders, injunctions which would materially affect the obligations of the Security Parties under the Security Documents; 

  
 24 

	7.1.7	No filings required 

 except for
the registration of the Mortgages in the relevant register under the laws of the relevant Flag State through the relevant Registry, it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of any of the
Underlying Documents or any of the Security Documents that they or any other instrument be notarised, filed, recorded, registered or enrolled in any court, public office or elsewhere in any Pertinent Jurisdiction or that any stamp, registration or
similar tax or charge be paid in any Pertinent Jurisdiction on or in relation to any of the Underlying Documents or the Security Documents and each of the Underlying Documents and the Security Documents is in proper form for its enforcement in the
courts of each Pertinent Jurisdiction; 
  

	7.1.8	Required Authorisations and legal compliance 

 all Required Authorisations have been obtained or effected and are in full force and effect and no Security Party has in any way contravened any applicable law, statute, rule or regulation (including all
such as relate to money laundering); 
  

	7.1.9	Choice of law 

 the choice of
English law to govern the Underlying Documents and the Security Documents (other than the Mortgages, the Earnings Account Pledges and the Retention Account Pledge), the choice of the law of the Flag State to govern the Mortgages, the choice of Greek
law to govern the Earnings Account Pledges and the Retention Account Pledge and the submissions by the Security Parties to the jurisdiction of the English courts and the obligations of such Security Parties associated therewith, are valid and
binding; 
  

	7.1.10	No immunity 

 no Security Party
nor any of their assets is entitled to immunity on the grounds of sovereignty or otherwise from any Proceedings whatsoever; 
  

	7.1.11	Financial statements correct and complete 

 the latest audited and unaudited consolidated financial statements of the Corporate Guarantor in respect of the relevant financial year as delivered to the Bank and present or will present fairly and
accurately the financial position of the Corporate Guarantor and the consolidated financial position of the Group as at the date thereof and the results of the operations of the Corporate Guarantor and the consolidated results of the operations of
the Group for the financial year ended on such date and, as at such date, neither the Corporate Guarantor nor any of its subsidiaries had any significant liabilities (contingent or otherwise) or any unrealised or anticipated losses which are not
disclosed by, or reserved against or provided for in, such financial statements; 
  

	7.1.12	Pari passu 

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

  
 25 

	7.1.13	Information/ Material Adverse Effect 

 all information, whatsoever provided by any Security Party to the Bank in connection with the negotiation and preparation of the Security Documents or otherwise provided hereafter in relation to, or
pursuant to this Agreement is, or will be, true and accurate in all material respects and not misleading, does or will not omit material facts and all reasonable enquiries have been, or shall have been, made to verify the facts and statements
contained therein and there has not occurred any event which could have a Material Adverse Effect on any Security Party since such information was provided to the Bank; there are, or will be, no other facts the omission of which would make any fact
or statement therein misleading; 
  

	7.1.14	No withholding Taxes 

 no Taxes
anywhere are imposed whatsoever by withholding or otherwise on any payment to be made by any Security Party under the Underlying Documents or the Security Documents to which such Security Party is or is to be a party or are imposed on or by virtue
of the execution or delivery by the Security Parties of the Underlying Documents or the Security Documents or any other document or instrument to be executed or delivered under any of the Security Documents; 

 

	7.1.15	Use of proceeds 

 the Borrowers
shall apply the Loan only for the purposes specified in clause 2.1; 
  

	7.1.16	The Mortgaged Vessels 

throughout the Facility Period, each Mortgaged Vessel will, following its Delivery date, be : 

 

	 	(a)	in the absolute sole, legal and beneficial ownership of the relevant Owner; 

 

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

 

	 	(c)	in compliance with the ISM Code and the ISPS Code and operationally seaworthy and in every way fit for service; 

 

	 	(d)	in good and sea-worthy and cargo-worthy condition; and 

  

	 	(e)	classed with the relevant Classification free of all outstanding requirements and recommendations of the relevant Classification Society. 

 

	7.1.17	Mortgaged Vessels’ employment 

 except with the prior written consent of the Bank, there will not be any agreement or arrangement whereby the Earnings (as defined in the relevant Ship Security Documents) of either Mortgaged Vessel may
be shared or pooled howsoever with any other person; 
  

	7.1.18	Freedom from Encumbrances 

neither Mortgaged Vessel nor its Earnings, Insurances or Requisition Compensation (each as defined in the relevant Ship Security
Documents) nor the Earnings Accounts or the Retention Account nor any Extended Employment Contract in respect of such Mortgaged Vessel nor any other properties or rights which are, or are to be, the subject of any of the Security 

  
 26 

 Documents nor any part thereof will be subject to any Encumbrance except Permitted
Encumbrances; 
  

	7.1.19	Environmental Matters 

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

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

  

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

  

	 	(c)	no Environmental Claim has been made or threatened or pending against either Borrower, or, to the best of the Borrowers’ knowledge and belief (having made due
enquiry), any of their respective Environmental Affiliates; and 

  

	 	(d)	there has been no Environmental Incident; 

  

	7.1.20	ISM and ISPS Code 

 each of the
Borrowers has complied with and continues to comply with and has procured that the Manager has complied with and continues to comply with the ISM Code, the ISPS Code and all other statutory and other requirements relative to its business and in
particular each Borrower or the Manager has obtained and maintains a valid DOC and SMC for each Mortgaged Vessels and that it and the Manager has implemented and continues to implement an ISM SMS; 

 

	7.1.21	Copies true and complete 

 the
Certified Copies or originals of the Underlying Documents delivered or to be delivered to the Bank pursuant to clause 8.1 are, or will when delivered be, true and complete copies or, as the case may be, originals of such documents; and such
documents constitute valid and binding obligations of the parties thereto enforceable in accordance with their respective terms and there have been no amendments or variations thereof or defaults thereunder; 

 

	7.1.22	the Borrowers are the ultimate beneficiaries of the Loan; 

  

	7.1.23	no Security Party has incurred any Indebtedness save under this Agreement or as otherwise disclosed by the Corporate Guarantor in its filings to the SEC from time to
time; 

  

	7.1.24	the Corporate Guarantor and both Borrowers have filed all tax and other fiscal returns required to be filed by any tax authority to which they are subject;

  

	7.1.25	neither Borrower has an office in England. 

  
 27 

	7.2	Repetition of representations and warranties 

 On each day throughout the Facility Period the Borrowers shall be deemed to repeat the representations and warranties in clause 7 updated mutatis mutandis as if made with reference to the facts and
circumstances existing on such day. 
  

	8	UNDERTAKINGS 

  

	8.1	General 

 The Borrowers
undertake with the Bank that, from the Execution Date until the end of the Facility Period, they will: 
  

	8.1.1	Notice of Default and Proceedings 

promptly inform the Bank of (a) any Default and of any other circumstances or occurrence which might adversely affect the ability of
any Security Party to perform its obligations under any of the Security Documents and (b) as soon as the same is instituted or threatened, details of any Proceedings involving any Security Party which could have a material adverse effect on
that Security Party and/or the operation of either of the Vessels (including, but not limited to any Total Loss of a Vessel or the occurrence of any Environmental Incident) and will from time to time, if so requested by the Bank, confirm to the Bank
in writing that, save as otherwise stated in such confirmation, no Default has occurred and is continuing and no such Proceedings are on foot or threatened; 
  

	8.1.2	Authorisation 

 obtain or cause
to be obtained, maintain in full force and effect and comply fully with all Required Authorisations, provide the Bank with Certified Copies of the same and do, or cause to be done, all other acts and things which may from time to time be necessary
or desirable under any applicable law (whether or not in the Pertinent Jurisdiction) for the continued due performance of all the obligations of the Security Parties under each of the Security Documents; 

 

	8.1.3	Corporate Existence 

 ensure that
each Security Party maintains its corporate existence as a body corporate duly organised and validly existing and in good standing under the laws of the Pertinent Jurisdiction and ensure that each Borrower is owned, directly or through other
companies, by the Corporate Guarantor; 
  

	8.1.4	Use of proceeds 

 use the
Advances exclusively for the purposes specified in clauses 1.1 and 2.1; 
  

	8.1.5	Pari passu 

 ensure that their
obligations under this Agreement shall at all times rank at least pari passu with all their other present and future unsecured and unsubordinated Indebtedness with the exception of any obligations which are mandatorily preferred by law and not by
contract; 

  
 28 

	8.1.6	Financial statements 

 provide to
the Bank (or procure that is sent): 
  

	 	(a)	as soon as possible, but in no event later than 180 days after the end of each of its financial years, annual audited (prepared in accordance with US GAAP by a
firm of accountants acceptable to the Bank) consolidated balance sheet and profit and loss accounts of the Corporate Guarantor and all companies which are owned, directly or indirectly, or controlled by it (commencing with the financial year ending
31 December 2010); and 

  

	 	(b)	as soon as possible, but in no event later than 90 days after the end of each 6 month period in each of its financial years, the Corporate Guarantor’s unaudited
consolidated balance sheet and profit and loss accounts for that 6 month period certified as to their correctness by its chief financial officer; 

  

	8.1.7	Reimbursement of MII & MAP Policy premiums 

 whether or not any amount is borrowed under this Agreement, reimburse the Bank on the Bank’s written demand the amount of the premium payable by the Bank for the inception or, as the case may be,
extension and/or continuance of the MII & MAP Policy (including any insurance tax thereon); 
  

	8.1.8	Compliance Certificates 

 deliver
to the Bank, on the date on which the semi-annual and annual reports are delivered under clause 8.1.6, a Compliance Certificate together with such supporting information as the Bank may require; 

 

	8.1.9	Provision of further information 

provide the Bank, and procure that the Corporate Guarantor shall provide the Bank, with such financial or other information concerning the
Borrowers, the Corporate Guarantor, the other Group Members and their respective affairs, activities, financial standing, Indebtedness and operations and the performance of the Mortgaged Vessels and any other ship owned by any Group Member as the
Bank may from time to time reasonably require and, without the need for any request therefor provide to the Bank information of any significant nature in respect of a Borrower and/or the Corporate Guarantor and/or any other Group Member including,
but not limited to, details of any loans borrowed or repaid by any of them, the purchase or sale of any substantial assets (including ships) by any of them and/or the restructuring of any loan of which any of them is a borrower; 

 

	8.1.10	Obligations under Security Documents 

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

  
 29 

	8.1.11	Compliance with ISM Code 

 comply
with, and will procure that any Operator will comply with, and ensure that the Mortgaged Vessels and any Operator comply with the requirements of the ISM Code, including (but not limited to) the maintenance and renewal of valid certificates pursuant
thereto throughout the Security Period (as defined in the Mortgages); 
  

	8.1.12	Withdrawal of DOC and SMC 

immediately inform the Bank if there is any actual withdrawal of their or any Operator’s DOC or the SMC of either Mortgaged Vessel;

  

	8.1.13	Issuance of DOC and SMC 

 and
will procure that any Operator will, promptly inform the Bank of the receipt by either Borrower or any Operator of notification that its application for a DOC or any application for an SMC for any Mortgaged Vessel has been refused; 

 

	8.1.14	ISPS Code Compliance 

 and will
procure that the Manager or any Operator will: 
  

	 	(a)	maintain at all times a valid and current ISSC in respect of each Mortgaged Vessel; 

 

	 	(b)	immediately notify the Bank in writing of any actual or threatened withdrawal, suspension, cancellation or modification of the ISSC in respect of a Mortgaged Vessel;
and 

  

	 	(c)	procure that each Mortgaged Vessel will comply at all times with the ISPS Code; 

 

	8.1.15	Compliance with Laws and payment of taxes 

 and will comply with all relevant Environmental Laws, laws, statutes and regulations (including, but not limited to, laws relating to any trading prohibition imposed by the Flag State, the country of
incorporation of the Borrowers or the country of nationality of any crew member of either Vessel by which such Borrower is bound) and pay all taxes for which it is liable as they fall due; 

 

	8.1.16	Charters etc. 

 (i) deliver to
the Bank a Certified Copy of each Extended Employment Contract upon its execution, (ii) forthwith on the Bank’s request execute (a) a Charter Assignment in respect thereof and (b) any notice of assignment required in connection
therewith and use reasonable efforts to procure the acknowledgement of any such notice of assignment by the relevant charterer (provided that any failure to procure the same shall not constitute an Event of Default) and (iii) pay all legal and
other costs incurred by the Bank in connection with any such Charter Assignments, forthwith following the Bank’s demand; 
  

	8.1.17	Indebtedness 

 not incur any
Indebtedness other than (i) in the ordinary course of trading the Vessel of which it is the owner or (ii) a guarantee of the Transactions or (iii) with the prior written consent of the Bank; 

  
 30 

	8.1.18	Trading 

 not permit either
Vessel to trade in any area prohibited by the government of the Flag State; 
  

	8.1.19	Delivery 

 pay to the Builder all
amounts payable on delivery of the Vessels in accordance with the relevant Shipbuilding Contract and take, or as the case may be, ensure that the relevant Borrower, takes delivery of the relevant Vessel; 

 

	8.1.20	Subordination 

 ensure that all
Indebtedness of either Borrower to its shareholders or to any other Group Member is fully subordinated, and to subordinate any Indebtedness issued to it by the Corporate Guarantor, all in a form acceptable to the Bank; and 

 

	8.1.21	Business 

 procure that
(i) the Corporate Guarantor and NMH own, directly or indirectly, inter alia, companies owning and operating ships and (ii) Mrs. Angeliki Frangou is directly involved in the management of the ships directly or indirectly owned by the
Corporate Guarantor and NMH. 
  

	8.1.22	Dividends 

 The Borrowers and
Corporate Guarantor may declare or pay dividends or distribute any of their present or future assets, undertakings, rights or revenues in an amount not exceeding 50% of the Net Profits for any relevant financial year or quarter to any of their
partners, members or shareholders, and the Corporate Guarantor may make such other investments as it may require, only if there has not occurred any Event of Default (and, notwithstanding the terms of this Clause, the Lender hereby agrees and
confirms that the Corporate Guarantor may pay dividends for the third and fourth financial quarters of 2010 and the first and second financial quarters of 2011 of USD0.05 per issued share). 

 

	8.1.23	Listing 

 The Borrowers shall
procure that each of the Corporate guarantor and NMH maintain its listing as a public limited company on NYSE or any other stock exchange acceptable to the Bank and comply with all of the listing rules, laws and regulations applicable to public
companies listed on NYSE or such other acceptable stock exchange and shall take no steps to de-list without the prior consent of the Bank, unless it is obliged to de-list pursuant to the listing rules, laws and regulations applicable to public
companies listed on NYSE or such other acceptable stock exchange. 
  

	8.1.24	Financial Covenants of the Group 

The Borrowers shall procure that: 
  

	 	(a)	at no time shall the Liquidity of the Group be less than USD40,000,000; 

  

	 	(b)	as of 1 January 2013, the Net Worth of the Group will at all times exceed USD50,000,000; 

  
 31 

	 	(c)	as of 1 January 2013, the Total Liabilities divided by the Total Assets (adjusted for market values of vessels calculated in accordance with Clause 8.2.2) shall be
less than 75%. 

  

	8.1.25	Inspection 

 The Bank may, at the
cost of the Borrowers and upon receipt of at least 15 days written notice, by surveyors or other persons appointed by it for such purpose, board either Mortgaged Vessel at all other reasonable times for the purpose of inspecting her and to afford
all proper facilities for such inspections and for this purpose to give the Bank reasonable advance notice of any intended drydocking of each Mortgaged Vessel (whether for the purpose of classification, survey or otherwise) and to pay the costs in
respect of one inspection in each calendar year. 
  

	8.1.26	Mortgage 

 Each Borrower shall,
on the Delivery Date of the Vessel owned by it, execute a Mortgage over that Vessel and register such Mortgage against that Vessel through the Registry under the laws and flag of the Flag State. 

 

	8.2	Security value maintenance 

  

	8.2.1	Security shortfall 

 If, at any
time after the first Delivery Date, the Security Value shall be less than the Required Security Amount, the Bank shall give notice to the Borrowers requiring that such deficiency be remedied and then the Borrowers must either: 

 

	 	(a)	prepay within a period of thirty (30) days of the date of receipt by the Borrowers of the Bank’s said notice such part of the Loan as will result in the
Security Value after such prepayment (taking into account any other repayment of the Loan made between the date of the notice and the date of such prepayment) being equal to or higher than the Required Security Amount; or 

 

	 	(b)	within thirty (30) days of the date of receipt by the Borrower of the Bank’s said notice constitute to the satisfaction of the Bank a first preferred ship
mortgage over a ship as security for the Loan as shall be acceptable to the Bank having a value for security purposes (as determined in accordance with Clause 8.2.2) at the date upon which such mortgage is provided which, when added to the Security
Value, shall not be less than the Required Security Amount as at such date; or 

  

	 	(c)	within thirty (30) days of the date of receipt by the Borrower of the Bank’s said notice constitute to the satisfaction of the Bank such further security for
the Loan as shall be acceptable to the Bank having a value for security purposes (as determined by the Bank in its reasonable discretion) at the date upon which such further security shall be constituted which, when added to the Security Value,
shall not be less than the Required Security Amount as at such date. 

 The provisions of clauses 4.6 and 4.7 shall
apply to prepayments under clause 8.2.1(a) provided that the Bank shall apply such prepayments (i) pro rata against the Tranches, (ii) in pro rata reduction of the repayment instalments under clause 4.1 and the amounts of the Loan prepaid
hereunder shall not be available to be re-borrowed. 

  
 32 

	8.2.2	Valuation of Mortgaged Vessels 

Each Mortgaged Vessel shall, for the purposes of this Agreement, be valued (at the Borrowers’ expense) in USD by any Approved Broker,
such valuations to be made without physical inspection, and on the basis of a sale for prompt delivery for cash at arms’ length, on normal commercial terms, as between a willing buyer and a willing seller, without taking into account the
benefit or burden of any charterparty or other engagement concerning the relevant Mortgaged Vessel and such valuations to be no older than 15 days on the date on which it is provided to the Bank, and to be provided to the Bank at such times as the
Bank shall require at the cost of the Borrowers, 
 Provided that if the Bank or the Borrowers do not agree with any valuation
produced as hereinbefore referred to then each of the Bank and the Borrowers shall nominate an Approved Broker, and the Valuation Amount for the relevant Mortgaged Vessel or Vessels shall be the average of the valuations produced by those two
Approved Brokers in accordance with the terms of this Clause. 
 The Approved Broker’s valuations for each Mortgaged Vessel
on each such occasion shall constitute the Valuation Amount of such Mortgaged Vessel for the purposes of this Agreement until superseded by the next such valuation. 
 The Bank may request valuations of the Mortgaged Vessels at any time in its discretion, and no less than once in any twelve month period. 

 

	8.2.3	Information 

 The Borrowers
undertake with the Bank to supply to the Bank and to the Approved Broker such information concerning the relevant Mortgaged Vessel and its condition as such shipbrokers may require for the purpose of determining any Valuation Amount. 

 

	8.2.4	Costs 

 All costs in connection
with the obtaining and any determining of any Valuation Amount pursuant to Clause 8.2.2 and any valuation either of any additional security for the purposes of ascertaining the Security Value at any time or necessitated by the Borrowers electing to
constitute additional security pursuant to clause 8.2.1(b), must be paid by the Borrowers. 
  

	8.2.5	Valuation of additional security 

For the purposes of this clause 8.2, the market value (i) of any additional security over a ship (other than the Vessels) shall be
determined in accordance with clause 8.2.2 and (ii) of any other additional security provided or to be provided to the Bank shall be determined by the Bank in its reasonable discretion. 

 

	8.2.6	Documents and evidence 

 In
connection with any additional security provided in accordance with this clause 8.2, the Bank shall be entitled to receive (at the Borrowers’ expense) such evidence and documents of the kind referred to in schedule 2 as may in the Bank’s
opinion be appropriate and such favourable legal opinions as the Bank shall in its absolute discretion require. 
  

	8.3	Negative undertakings 

  
 33 

 The Borrowers jointly and severally undertake with the Bank that, from the Execution Date
until the end of the Facility Period, they will not, without the prior written consent of the Bank: 
  

	8.3.1	Negative pledge 

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

	8.3.2	No merger or transfer 

 merge or
consolidate with any other person or permit any change to the legal or beneficial ownership of their shares from that existing at the Execution Date; 
  

	8.3.3	Disposals 

 sell, transfer,
assign, create security or option over, pledge, pool, abandon, lend or otherwise dispose of or cease to exercise direct control over any part of their present or future undertaking, assets, rights or revenues (otherwise than by transfers, sales or
disposals for full consideration in the ordinary course of trading) whether by one or a series of transactions related or not; 
  

	8.3.4	Other business or manager 

undertake any business other than the ownership and operation of the Vessels or employ anyone other than the Manager as commercial and
technical manager of the Vessels; 
  

	8.3.5	Acquisitions 

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

 

	8.3.6	Other obligations 

 other than a
guarantee in respect of the Transactions, incur any obligations except for obligations arising under the Underlying Documents or the Security Documents or contracts entered into in the ordinary course of their business of owning, operating and
chartering the Vessels; 
  

	8.3.7	No borrowing 

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

	8.3.8	Repayment of borrowings 

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

 

	8.3.9	Guarantees 

  
 34 

 issue any guarantees or otherwise become directly or contingently liable for the obligations
of any person, firm, or corporation except pursuant to the Security Documents and except for (i) guarantees from time to time required in the ordinary course by any protection and indemnity or war risks association with which a Vessel is
entered, guarantees required to procure the release of such Vessel from any arrest, detention, attachment or levy or guarantees required for the salvage of a Vessel, (ii) guarantee in respect of the Transactions and (iii) such other
guarantees to which the Bank shall have consented in writing; 
  

	8.3.10	Loans 

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

	8.3.11	Sureties 

 permit any
Indebtedness of either Borrower to any person (other than the Bank pursuant to the Security Documents) to be guaranteed by any person (except for guarantees from time to time required in the ordinary course of business and in the ordinary course by
any protection and indemnity or war risks association with which a Vessel is entered, guarantees required to procure the release of such Vessel from any arrest, detention, attachment or levy or guarantees or undertakings required for the salvage of
a Vessel and guarantees in favour of the Builder in respect of either Shipbuilding Contract); or 
  

	8.3.12	Subsidiaries 

 form or acquire
any Subsidiaries. 
  

	9	CONDITIONS 

  

	9.1	Documents and evidence 

The Bank’s obligation to make available the Advances is subject to the following conditions precedent: 

 

	9.1.1	that, on or before the service of the first Drawdown Notice hereunder, the Bank has received the documents described in Part A of Schedule 2 in form and substance
satisfactory to the Bank and its lawyers; 

  

	9.1.2	that, on or before drawdown of the Advances referred to in clause 2.3 (a) the Bank has received the documents described in Part B of Schedule 2 in respect of the
Relevant Vessel (as defined in Schedule 2) in form and substance satisfactory to the Bank and its lawyers; 

  

	9.1.3	that, on or before drawdown of the Advances referred to in clause 2.3 (b), the Bank has received the documents described in Part C of Schedule 2 in respect of the
Relevant Vessel (as defined in Schedule 2) in form and substance satisfactory to the Bank and its lawyers; 

  

	9.1.4	that, on or before drawdown of the Advances referred to in clause 2.3 (c), the Bank has received the documents described in Part D of Schedule 2 in respect of the
Relevant Vessel (as defined in Schedule 2) in form and substance satisfactory to the Bank and its lawyers; 

  

	9.1.5	that, on or before drawdown of the Advances referred to in clause 2.3 (d), the Bank has received the documents described in Part E of Schedule 2 in respect of the
Relevant Vessel (as defined in Schedule 2) in form and substance satisfactory to the Bank and its lawyers 

  
 35 

	9.1.6	that on or before drawdown of the Advances referred to in clause 2.3 (e), the Bank has received the documents described in Part F of Schedule 2 in respect of the
Relevant Vessel (as defined in Schedule 2) in form and substance satisfactory to the Bank and its lawyers; 

  

	9.1.7	the representations and warranties contained in clause 7 and clauses 4.1 and 4.2 of the Corporate Guarantee being then true and correct as if each was made with respect
to the facts and circumstances existing at such time; and 

  

	9.1.8	no Default having occurred and being continuing and there being no Default which would result from the making of the Loan. 

 

	9.2	Waiver of conditions precedent 

 The conditions specified in this clause 9 are inserted solely for the benefit of the Bank and may be waived by the Bank in whole or in part and with or without conditions. 

 

	9.3	Further conditions precedent 

 Not later than five (5) Banking Days prior to the Drawdown Date and not later than five (5) Banking Days prior to each Interest Payment Date, the Bank may reasonably request and the Borrowers
must, not later than two (2) Banking Days prior to such date, deliver to the Bank (at the Borrowers’ expense) on such request further favourable certificates and/or opinions as to any or all of the matters which are the subject of clauses
7, 8, 9 and 10 and clauses 4 and 5 of the Corporate Guarantee. 
  

	9.4	English language 

 All
documents required to be delivered under and/or supplied in connection with any of the Security Documents must either be in the English language or accompanied by an English translation certified by a notary, lawyer or consulate acceptable to the
Bank. 
  

	10	EVENTS OF DEFAULT 

  

	10.1	Events 

 Each of the
following events shall constitute an Event of Default (whether such event shall occur voluntarily or involuntarily or by operation of law or regulation or in connection with any judgment, decree or order of any court or other authority or otherwise,
howsoever): 
  

	10.1.1	Non-payment: any Security Party fails to pay any sum payable by it under any of the Security Documents at the time, in the currency and in the manner stipulated
in the Security Documents or the Underlying Documents (and so that, for this purpose, sums payable (i) under clauses 3.1 and 4.1 shall be treated as having been paid at the stipulated time if (aa) received by the Bank within two (2) days
of the dates therein referred to and (bb) such delay in receipt is caused by administrative or other delays or errors within the banking system and (ii) on demand shall be treated as having been paid at the stipulated time if paid within two
(2) Banking Days of demand); or 

  

	10.1.2	Breach of Insurance and certain other obligations: any Owner or, as the context may require, the Manager or any other person fails to obtain and/or maintain the
Insurances (as defined in, and in accordance with the requirements of, the Ship Security Documents) for any of the Mortgaged Vessels or if any insurer in respect of such Insurances cancels the Insurances or disclaims liability by reason, in either
case, of mis-statement in any proposal for the 

  
 36 

 Insurances or for any other failure or default on the part of the Borrower or any other
person or the Borrower commits any breach of or omits to observe any of the obligations or undertakings expressed to be assumed by them under clause 8; or 
  

	10.1.3	Breach of other obligations: any Security Party commits any breach of or omits to observe any of its obligations or undertakings expressed to be assumed by it
under any of the Security Documents (other than those referred to in clauses 10.1.1 and 10.1.2 above) unless such breach or omission, in the opinion of the Bank (following consultation with the Banks) is capable of remedy, in which case the same
shall constitute an Event of Default if it has not been remedied within fifteen (15) days of the occurrence thereof; or 

  

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

 

	10.1.5	Cross-default: any Indebtedness of any Group Member is not paid when due (subject to applicable grace periods) or any Indebtedness of any Group Member becomes
(whether by declaration or automatically in accordance with the relevant agreement or instrument constituting the same) due and payable prior to the date when it would otherwise have become due (unless as a result of the exercise by the relevant
Group Member of a voluntary right of prepayment), or any creditor of any Group Member becomes entitled to declare any such Indebtedness due and payable or any facility or commitment available to any Group Member relating to Indebtedness is
withdrawn, suspended or cancelled by reason of any default (however described) of the person concerned; or 

  

	10.1.6	Execution: any uninsured judgment or order made against any Security Party is not stayed, appealed against or complied with within fifteen (15) days or a
creditor attaches or takes possession of, or a distress, execution, sequestration or other process is levied or enforced upon or sued out against, any of the undertakings, assets, rights or revenues of any Security Party and is not discharged within
thirty (30) days; or 

  

	10.1.7	Insolvency: any Security Party is unable or admits inability to pay its debts as they fall due; suspends making payments on any of its debts or announces an
intention to do so; becomes insolvent; or has negative net worth (taking into account contingent liabilities); or suffers the declaration of a moratorium in respect of any of its Indebtedness; or 

 

	10.1.8	Reduction or loss of capital: a meeting is convened by any Security Party (other than the Borrower) without the Bank’s prior written consent, for the
purpose of passing any resolution to purchase, reduce or redeem any of its share capital without the Bank’s prior written consent; or 

  

	10.1.9	Dissolution: any corporate action, Proceedings or other steps are taken to dissolve or wind-up any Security Party or an order is made or resolution passed for
the dissolution or winding up of any Security Party or a notice is issued convening a meeting for such purpose; or 

  

	10.1.10	Administration: any petition is presented, notice given or other steps are taken anywhere to appoint an administrator of any Security Party or the Bank believes
that any such petition or other step is imminent or an administration order is made in relation to any Security Party; or 

  

	10.1.11	Appointment of receivers and managers: any administrative or other receiver is appointed anywhere of any Security Party or any part of its assets and/or
undertaking or any other steps 

  
 37 

 are taken to enforce any Encumbrance over all or any part of the assets of any Security
Party; or 
  

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

 

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

 

	10.1.14	Cessation of business: any Security Party suspends or ceases or threatens to suspend or cease to carry on its business without the prior written consent of the
Bank, such consent not to be unreasonably withheld; or 

  

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

  

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

  

	10.1.17	Unlawfulness: any Unlawfulness occurs or it becomes impossible or unlawful at any time for any Security Party, to fulfil any of the covenants and obligations
expressed to be assumed by it in any of the Security Documents or for a Bank to exercise the rights or any of them vested in it under any of the Security Documents or otherwise; or 

 

	10.1.18	Repudiation: any Security Party repudiates any of the Security Documents or does or causes or permits to be done any act or thing evidencing an intention to
repudiate any of the Security Documents; or 

  

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

  

	10.1.20	Arrest: any Mortgaged Vessel is arrested, confiscated, seized, taken in execution, impounded, forfeited, detained in exercise or purported exercise of any
possessory lien or other claim or otherwise taken from the possession of its Owner and that Owner shall fail to procure the release of such Mortgaged Vessel within a period of fifteen (15) days thereafter (this clause does not include capture
of the Vessel by pirates for up to 12 months (but does apply if such capture exceeds 12 months) if relevant underwriters confirm in writing (in customary terms) 

  
 38 

 within ninety (90) day of capture, that such capture will be covered by the
Borrower’s war risks insurance); or 
  

	10.1.21	Registration: the registration of any Mortgaged Vessel under the laws and flag of the relevant Flag State is cancelled or terminated without the prior written
consent of the Bank; or 

  

	10.1.22	Unrest: the Flag State of any Vessel or the country in which any Security Party is incorporated or domiciled becomes involved in hostilities or civil war or
there is a seizure of power in the Flag State by unconstitutional means unless the Owner of the Vessel registered in such Flag State shall have transferred its Vessel onto a new flag acceptable to the Banks within sixty (60) days of the start
of such hostilities or civil war or seizure of power; or 

  

	10.1.23	Environmental Incidents: an Environmental Incident occurs which gives rise, or may give rise, to an Environmental Claim which could, in the opinion of the Bank
be expected to have a material adverse effect (i) on the business, assets or financial condition of any Security Party or the Group taken as a whole or (ii) on the security constituted by any of the Security Documents or the enforceability
of that security in accordance with its terms; or 

  

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

 

	10.1.25	Material events: any other event occurs or circumstance arises which, in the opinion of the Bank, is likely materially and adversely to affect either
(i) the ability of any Security Party to perform all or any of its obligations under or otherwise to comply with the terms of any of the Security Documents or (ii) the security created by any of the Security Documents; or

  

	10.1.26	Required Authorisations: any Required Authorisation is revoked or withheld or modified or is otherwise not granted or fails to remain in full force and effect or
if any exchange control or other law or regulation shall exist which would make any transaction under the Security Documents or the continuation thereof, unlawful or would prevent the performance by any Security Party of any term of any of the
Security Documents; 

  

	10.1.27	Ownership/management: there is any change in the direct or indirect ownership of either Borrower or either Vessel or change of Manager of either Vessel without
the prior written consent of the Bank or the number of shares of and in the Corporate Guarantor controlled by NMH, Mrs. Angeliki Frangou and their respective affiliates in aggregate falls below 20% of the issued shares of the Corporate
Guarantor; or 

  

	10.1.28	Shipbuilding Contract/Refund Guarantee: either Shipbuilding Contract or Refund Guarantee is terminated, cancelled, revoked, suspended, rescinded, transferred,
novated or otherwise ceases to remain in full force and effect for any reason except with the consent of the Bank; or 

  

	10.1.29	Money Laundering: any Security Party is in breach of or fails to observe any law, requirement, 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. 

  
 39 

	10.2	Acceleration 

 The Bank
may, without prejudice to any other rights of the Bank, at any time after the happening of an Event of Default so long as the same is continuing by notice to the Borrowers declare that: 

 

	10.2.1	the obligation of the Bank to make the Commitment available shall be terminated, whereupon the Commitment shall immediately be cancelled; and/or

  

	10.2.2	the Loan and all interest and commitment commission accrued and all other sums payable whensoever under the Security Documents have become due and payable, whereupon
the same shall, immediately or in otherwise accordance with the terms of such notice, become due and payable. 

  

	10.3	Demand basis 

 If, under
clause 10.2.2, the Bank has declared the Loan to be due and payable on demand, at any time thereafter the Bank may by further notice to the Borrowers demand repayment of the Loan on such date as may be specified whereupon the Loan shall become due
and payable accordingly with all interest and commitment commission accrued and all other sums payable under this Agreement. 
  

	11	INDEMNITIES 

  

	11.1	General indemnity 

 Each
Borrower agrees to indemnify the Bank on demand, without prejudice to any of the Bank’s other rights under any of the Security Documents, against any loss (including loss of Margin) or expense (including, without limitation, any Break Costs)
which the Bank shall certify as sustained at any time by it in connection with this Agreement. 
  

	11.2	Environmental indemnity 

The Borrowesr shall indemnify the Bank on demand and hold it harmless from and against all costs, claims, expenses, payments, charges,
losses, demands, liabilities, actions, Proceedings, penalties, fines, damages, judgements, orders, sanctions or other outgoings of whatever nature which may be incurred or made or asserted whensoever against the Bank at any time, whether before or
after the repayment in full of principal and interest under this Agreement, arising howsoever out of an Environmental Claim made or asserted against the Bank which would not have been, or been capable of being, made or asserted against the Bank had
it not entered into any of the Security Documents or been involved in any of the resulting or associated transactions. 
  

	11.3	Capital adequacy and reserve requirements indemnity 

 The Borrowers shall promptly indemnify the Bank on demand against any cost incurred or loss suffered by the Bank as a result of its complying with (i) the minimum reserve requirements from time to
time of the European Central Bank (ii) any capital adequacy directive of the European Union and/or (iii) any revised framework for international convergence of capital measurements and capital standards and/or any regulation imposed by any
Government Entity in connection therewith, and/or in connection with maintaining required reserves with a relevant national central bank to the extent that such compliance or 

  
 40 

 maintenance relates to the Commitment or deposits obtained by it to fund the whole or part
thereof and to the extent such cost or loss is not recoverable by the Bank under clause 11.2. 
  

	12	UNLAWFULNESS AND INCREASED COSTS MITIGATION 

  

	12.1	Unlawfulness 

 Regardless
of any other provision of this Agreement, in the event that the Bank notifies the Borrowers that by reason of: 
  

	 	(a)	the introduction of or any change in any applicable law or regulation or any change in the interpretation or application thereof; or 

 

	 	(b)	compliance by the Bank with any directive, request or requirement (whether or not having the force of law) of any central bank or Government Entity

 it becomes unlawful or it is prohibited by or contrary to such directive request or requirement for the Bank to
maintain or give effect to any of its obligations in connection howsoever with this Agreement then (i) the Commitment shall be reduced to zero and (ii) the Borrowers shall be obliged to prepay the Loan either immediately or on a future
date (specified in the Bank’s notice) not being earlier than the latest date permitted by the relevant law, regulation, directive, request or requirement with interest and commitment commission accrued to the date of prepayment and all other
sums payable whensoever by the Borrowers under this Agreement. 
  

	12.2	Increased costs 

 If the
Bank certifies to the Borrowers that at any time the effect of any applicable law, regulation or regulatory requirements or the interpretation or application thereof or any change therein (including the imposition upon whomsoever of Taxes on
payments hereunder or otherwise howsoever in connection with this Agreement other than taxes on the overall net income of the Bank) or the effect of complying with any applicable directive, request or requirement (whether or not having the force of
law) of any central bank or Government Entity (including, but not limited to, the 1988 Basle Convergence Agreement and including any kind of liquidity, stock or capital adequacy controls or other banking or monetary controls or requirements which
affect the manner in which the Bank or its holding company allocates capital resources to the Bank’s obligations hereunder) is to: 
  

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

  

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

  

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

 

	12.2.4	reduce the Bank’s or its holding company’s rate of return on its overall capital by reason of a change in the manner in which it is required to allocate
capital resources to the Bank’s obligations under any of the Security Documents; and/or 

  
 41 

	12.2.5	require the Bank or its holding company to make a payment or forgo a return on or calculated by reference to any amount received or receivable by the Bank under any of
the Security Documents; and/or 

  

	12.2.6	require the Bank or its holding company to incur or sustain a loss (including a loss of future potential profits) by reason of being obliged to deduct all or part of
the Commitment or the Loan from its capital for regulatory purposes, 

 then and in each such case (subject to
clause 12.3) the Borrowers must on demand either: 
  

	 	(a)	pay to the Bank the amount which the Bank certifies (in a certificate setting forth the basis of the computation of such amount but not including any matters which the
Bank or its holding company regards as confidential) is required to compensate the Bank and/or (as the case may be) its holding company for such liability to Taxes, cost, reduction, payment, forgone return or loss; or 

 

	 	(b)	prepay the Loan, in respect of which prepayment the terms of clause 4.5 shall apply. 

For the purposes of this clause 12.2 and clause 12.4 “holding company” means the company or entity (if any) within the
consolidated supervision of which the Bank is included. 
  

	12.3	Exception 

 Nothing in
clause 12.2 shall entitle the Bank to receive any amount relating to compensation for any such liability to Taxes, increased or additional cost, reduction, payment, foregone return or loss to the extent that the same is the subject of an additional
payment under clause 6.6. 
  

	13	SECURITY, SET-OFF AND MISCELLANEOUS 

  

	13.1	Application of moneys 

All moneys received by the Bank under or pursuant to any of the Security Documents and expressed to be applicable in accordance with the
provisions of this clause 13.1 shall be applied by the Bank as follows, or in such other order as the Bank may require in its absolute discretion: 
  

	13.1.1	first in or toward payment of all unpaid fees, commissions, sums which have been demanded by way of indemnity and expenses which may be owing to the Bank under any of
the Security Documents; 

  

	13.1.2	secondly in or towards payment of any arrears of interest owing in respect of the Loan or any part thereof; 

 

	13.1.3	thirdly in or towards repayment of the Loan (whether the same is due and payable or not); 

 

	13.1.4	fourthly in or towards payment to the Bank for any loss which the Bank certifies it has suffered by reason of any such payment in respect of principal not being
effected on an Interest Payment Date relating to the part of the Loan repaid; 

  

	13.1.5	fifthly in or towards payment to the Bank of any other sums which the Bank certifies are owing to it under any of the Security Documents; and 

  
 42 

	13.1.6	sixthly the surplus (if any) shall be paid to the Borrowers or to whomsoever else may appear to the Bank to be entitled to receive such surplus.

  

	13.2	Set-off 

  

	13.2.1	Each Borrower authorises the Bank (without prejudice to any of the Bank’s rights at law, in equity or otherwise), at any time and without notice to the Borrowers,
to apply any credit balance to which either Borrower is then entitled standing upon any account of the Borrowers or either of them with any branch of the Bank in or towards satisfaction of any sum due and payable from the Borrowers to the Bank under
any of the Security Documents. For this purpose, the Bank is authorised to purchase with the moneys standing to the credit of such account such other currencies as may be necessary to effect such application. 

 

	13.2.2	The Bank shall not be obliged to exercise any right given to it by this clause 13.2. The Bank shall notify the Borrowers prior to or upon the exercise or purported
exercise of any right of set-off. 

  

	13.2.3	Nothing in this clause 13.2 shall be effective to create a charge or other security interest. 

 

	13.3	Further assurance 

 The
Borrowers undertake with the Bank to ensure that, throughout the Facility Period, the Security Documents shall be valid and binding obligations of the respective parties thereto and rights of the Bank enforceable in accordance with their respective
terms and that they will, at their expense, execute, sign, perfect and do, and will procure the execution, signing, perfecting and doing by each of the other Security Parties of, any and every such further assurance, document, act or thing as in the
reasonable opinion of the Bank may be necessary or desirable for perfecting the security contemplated or constituted by the Security Documents. 
  

	13.4	Conflicts 

 In the event
of any conflict between this Agreement and any of the other Borrower’s Security Documents, the provisions of this Agreement shall prevail. 
  

	13.5	No implied waivers, remedies cumulative 

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

	13.6	Severability 

 If any
provision of this Agreement is prohibited, invalid, illegal or unenforceable in any jurisdiction, such prohibition, invalidity, illegality or unenforceability shall not affect or impair howsoever the remaining provisions thereof or affect the
validity, legality or enforceability of such provision in any other jurisdiction. 
  

	13.7	Force Majeure 

  
 43 

 Regardless of any other provision of this Agreement the Bank shall not be liable for any
failure to perform the whole or any part of this Agreement resulting directly or indirectly from (i) the action or inaction or purported action of any governmental or local authority (ii) any strike, lockout, boycott or blockade (including
any strike, lockout, boycott or blockade effected by or upon the Bank or any of its representatives or employees) (iii) any act of God (iv) any act of war (whether declared or not) or terrorism (v) any failure of any information
technology or other operational systems or equipment affecting the Bank or (vi) any other circumstances whatsoever outside the Bank’s control. 
  

	13.8	Amendments 

 This
Agreement may be amended or varied only by an instrument in writing executed by both parties hereto who irrevocably agree that the provisions of this clause 13.8 may not be waived or modified except by an instrument in writing to that effect signed
by both of them. 
  

	13.9	Counterparts 

 This
Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute one and the same agreement which may be sufficiently evidenced by one counterpart. 

 

	13.10	English language 

 All
documents required to be delivered under and/or supplied whensoever in connection howsoever with any of the Security Documents and all notices, communications, information and other written material whatsoever given or provided in connection
howsoever therewith must either be in the English language or accompanied by an English translation certified by a notary, lawyer or consulate acceptable to the Bank. 
  

	14	ACCOUNTS 

  

	14.1	General 

 Each Borrower
undertakes with the Bank that it will ensure that: 
  

	14.1.1	it will on or before the Delivery Date in respect of its Vessel, open an Earnings Account in its name; and 

 

	14.1.2	all moneys payable to either Borrower in respect of the Earnings (as defined in the relevant Mortgage) of its Mortgaged Vessel shall, unless and until the Bank directs
to the contrary pursuant to the provisions of the relevant Mortgage, be paid to the Earnings Account, Provided however that if any of the moneys paid to either Earnings Account are payable in a currency other than USD, they shall be paid to a
sub-account of that Earnings Account denominated in such currency (except that if the Borrowers fail to open such a sub-account, the Bank shall then convert such moneys into USD at the Bank’s spot rate of exchange at the relevant time for the
purchase of USD with such currency and the term “spot rate of exchange” shall include any premium and costs of exchange payable in connection with the purchase of USD with such currency). 

 

	14.2	Earnings Accounts: withdrawals 

 Any sums standing to the credit of the Earnings Accounts may be applied from time to time (i) firstly to make the payments required under this Agreement, (ii) secondly, subject to there

  
 44 

 being no breach of Clause 14.3 and to no Event of Default having occurred, in the operation
of the Vessels and (iii) subject to there being at any time sufficient funds to pay amounts due under (i) and (ii) above as they fall due, thirdly for the general corporate purposes of the Borrowers. 

 

	14.3	Retention Account: credits and withdrawals 

  

	14.3.1	The Borrowers undertake with the Bank that, throughout the Facility Period, they will procure that, on each Retention Date there is paid (whether from the Earnings
Accounts or elsewhere) to the Retention Account, the Retention Amount for such date. 

  

	14.3.2	Unless and until there shall occur an Event of Default (whereupon the provisions of clause 14.5 shall apply), all Retention Amounts credited to the Retention Account
together with interest from time to time accruing or at any time accrued thereon must be applied by the Bank (and the Borrowers hereby irrevocably authorise the Bank so to apply the same) upon each Repayment Date and/or on each day that interest is
payable on the Loan pursuant to clause 3.1, in or towards payment to the Bank of the instalment then falling due for repayment or, as the case may be, the amount of interest then due. Each such application by the Bank shall constitute a payment in
or towards satisfaction of the Borrowers’ corresponding payment obligations under this Agreement but shall be strictly without prejudice to the obligations of the Borrowers to make any such payment to the extent that the aforesaid application
by the Bank is insufficient to meet the same. 

 Unless the Bank otherwise agrees in writing and subject to this
clause 14.3.2, the Borrowers shall not be entitled to withdraw any moneys from the Retention Account at any time during the Facility Period. 
  

	14.4	Application of accounts 

At any time after the occurrence of an Event of Default, the Bank may, without notice to the Borrowers, apply all moneys then standing to
the credit of the Earnings Accounts and/or the Retention Account (together with interest from time to time accruing or accrued thereon) in or towards satisfaction of any sums due to the Bank under the Security Documents in the manner specified in
clause 13.1. 
  

	14.5	Charging of accounts 

 The
Earnings Accounts and the Retention Account and all amounts from time to time respectively standing to the credit thereof shall be subject to the security constituted and the rights conferred by, respectively, the Earnings Account Pledges and the
Retention Account Pledge. 
  

	15	ASSIGNMENT, TRANSFER AND LENDING OFFICE 

  

	15.1	Benefit and burden 

 This
Agreement shall be binding upon, and ensure for the benefit of, the Bank and the Borrowers and their respective successors. 
  

	15.2	No assignment by Borrowers 

The Borrowers may not assign or transfer any of their respective rights or obligations under this Agreement. 

  
 45 

	15.3	Assignment by Bank 

 The
Bank may assign all or any part of its rights under any of the Security Documents to any other bank or financial institution (an “Assignee”) (i) if such assignment is to any bank or financial institution affiliated to the Bank,
without the consent of the Borrowers or (ii) if such assignment is to any arms length bank or financial institution, with the prior consent of the Borrowers, such consent not to be unreasonably withheld. 

 

	15.4	Transfer by Bank 

 The
Bank may transfer all or any part of its rights, benefits and/or obligations under this Agreement and/or any of the other Security Documents to any one or more banks or other financial institutions (a “Transferee”) (i) if such
assignment is to any bank or financial institution affiliated to the Bank, without the consent of the Borrowers or (ii) if such assignment is to any arms length bank or financial institution, with the prior consent of the Borrowers, such
consent not to be unreasonably withheld, provided always that any such Transferee, by delivery of such undertaking as the Bank may approve, becomes bound by the terms of this Agreement and agrees to perform all or, as the case may be, relevant part
of the Bank’s obligations under this Agreement. 
  

	15.5	Documentation 

 If the
Bank assigns all or any part of its rights or transfers all or any part of its rights, benefits and/or obligations as provided in clause 15.3 or 15.4 the Borrowers undertake, immediately on being requested to do so by the Bank , to enter into, and
procure that the other Security Parties shall enter into, such documents as may be necessary or desirable to transfer to the Assignee or Transferee all or the relevant part of the Bank’s interest in the Security Documents. Thereafter, all
relevant references in this Agreement to the Bank shall be construed as a reference to the Bank and/or its Assignee or Transferee (as the case may be) to the extent of their respective interests. 

 

	15.6	Lending office 

 The Bank
shall lend through its office at the address specified above or through any other office of the Bank selected from time to time by it through which the Bank wishes to lend for the purposes of this Agreement. 

 

	15.7	Disclosure of information 

The Bank may disclose to a prospective Assignee, Transferee or to any other person who may propose entering into contractual relations
with the Bank in relation to this Agreement such information about or in connection with any of the Security Parties and the Security Documents as the Bank considers appropriate. 

 

	15.8	No additional costs 

 If
at the time of, or immediately after, any assignment and/or transfer by the Bank of all or any part of its rights and/or benefits and/or obligations under this Agreement, or any change in the office through which the Bank lends for the purposes of
this Agreement, the Borrowers would be obliged to pay to the Assignee or Transferee or (in the case of a change of lending office) the Bank under clause 6.6 or 12.2 any sum exceeding the sum (if any) which it would 

  
 46 

 have been obliged to pay to the Bank under the relevant clause had no such assignment,
transfer or change taken place, the Borrowers shall not be obliged to pay such excess. 
  

	16	NOTICES 

  

	16.1	General 

  

	16.1.1	unless otherwise specifically provided herein, every notice under or in connection with this Agreement shall be given in English by letter delivered personally and/or
sent by post and/or transmitted by fax; 

  

	16.1.2	in this clause “notice” includes any demand, consent, authorisation, approval, instruction, certificate, request, waiver or other communication.

  

	16.2	Addresses for communications, effective date of notices 

  

	16.2.1	subject to clause 16.2.2 and clause 16.2.4 notices to the Borrowers shall be deemed to have been given and shall take effect when received in full legible form by the
Borrowers at the address and/or the fax number appearing below (or at such other address or fax number as the Borrowers may hereafter specify for such purpose to the Bank by notice in writing); 

Address     c/o Navios ShipManagement Inc. 
 85 Akti Miaouli 
 Piraeus 

Greece 
 Fax no:
    + 30 210 453 2070 
  

	16.2.2	notwithstanding the provisions of clause 16.2.1 or clause 16.2.4, a notice of Default and/or a notice given pursuant to clause 10.2 or clause 10.3 shall be deemed to
have been given and shall take effect when delivered, sent or transmitted by the Bank to the Borrowers to the address or fax number referred to in clause 16.2.1; 

 

	16.2.3	subject to clause 16.2.4, notices to the Bank shall be deemed to be given, and shall take effect, when received in full legible form by the Bank at the address and/or
the fax number appearing below (or at any such other address or fax number as the Bank may hereafter specify for such purpose to the Borrowers by notice in writing); 

Address     83 Akti Miaouli & Flessa Street 

5th floor 
 185
38 Piraeus 
 Greece 
 Fax no:     +30 210 458 7877 
  

	16.2.4	if under clause 16.2.1 or clause 16.2.3 a notice would be deemed to have been given and effective on a day which is not a working day in the place of receipt or is
outside the normal business hours in the place of receipt, the notice shall be deemed to have been given and to have taken effect at the opening of business on the next working day in such place. 

 

	17	BORROWERS’ OBLIGATIONS 

  

	17.1	Joint and several 

  
 47 

 Regardless of any other provision in any of the Security Documents, all obligations and
liabilities whatsoever of the Borrowers herein contained are joint and several and shall be construed accordingly. Each of the Borrowers agrees and consents to be bound by the Security Documents to which it becomes a party notwithstanding that the
other Borrower may not do so or be effectually bound and notwithstanding that any of the Security Documents may be invalid or unenforceable against the other Borrower, whether or not the deficiency is known to the Bank. 

 

	17.2	Borrowers as principal debtors 

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

	17.3	Indemnity 

 The Borrowers
undertake to keep the Bank fully indemnified on demand against all claims, damages, losses, costs and expenses arising from any failure of either Borrower to perform or discharge any purported obligation or liability of that Borrower which would
have been the subject of this Agreement or any other Security Document had it been valid and enforceable and which is not or ceases to be valid and enforceable against the other Borrower on any ground whatsoever, whether or not known to the Bank
including, without limitation, any irregular exercise or absence of any corporate power or lack of authority of, or breach of duty by, any person purporting to act on behalf of the other Borrower (or any legal or other limitation, whether under the
Limitation Acts or otherwise or any disability or death, bankruptcy, unsoundness of mind, insolvency, liquidation, dissolution, winding up, administration, receivership, amalgamation, reconstruction or any other incapacity of any person whatsoever
(including, in the case of a partnership, a termination or change in the composition of the partnership) or any change of name or style or constitution of any Security Party)). 

 

	17.4	Liability unconditional 

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

  

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

  

	17.4.2	the Bank granting any time, indulgence or concession to, or compounding with, discharging, releasing or varying the liability of, either Borrower or any other person
liable or renewing, determining, varying or increasing any accommodation, facility or transaction or otherwise dealing with the same in any manner whatsoever or concurring in, accepting, varying any compromise, arrangement or settlement or omitting
to claim or enforce payment from either Borrower or any other person liable; or 

  
 48 

	17.4.3	anything done or omitted which but for this provision might operate to exonerate the Borrowers or either of them. 

 

	17.5	Recourse to other security 

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

	17.6	Waiver of Borrowers’ rights 

 Each Borrower agrees with the Bank that, throughout the Facility Period, it will not, without the prior written consent of the Bank: 

 

	17.6.1	exercise any right of subrogation, reimbursement and indemnity against the other Borrower or any other person liable under the Security Documents;

  

	17.6.2	demand or accept repayment in whole or in part of any Indebtedness now or hereafter due to such Borrower from the other Borrower or from any other person liable for
such Indebtedness or demand or accept any guarantee against financial loss or any document or instrument created or evidencing an Encumbrance in respect of the same or dispose of the same; 

 

	17.6.3	take any steps to enforce any right against the other Borrower or any other person liable in respect of any such moneys; or 

 

	17.6.4	claim any set-off or counterclaim against the other Borrower or any other person liable or claim or prove in competition with the Bank in the liquidation of the other
Borrower or any other person liable or have the benefit of, or share in, any payment from or composition with, the other Borrower or any other person liable or any security granted under any Security Document now or hereafter held by the Bank for
any moneys owing under this Agreement or for the obligations or liabilities of any other person liable but so that, if so directed by the Bank, it will prove for the whole or any part of its claim in the liquidation of the other Borrower or other
person liable on terms that the benefit of such proof and all money received by it in respect thereof shall be held on trust for the Bank and applied in or towards discharge of any moneys owing under this Agreement in such manner as the Bank shall
require. 

  

	18	GOVERNING LAW 

  

	18.1	Law 

 This Agreement and
any non-contractual obligations arising out of or in connection with it is governed by and shall be construed in accordance with English law. 
  

	19	JURISDICTION 

  

	19.1	Exclusive jurisdiction 

For the benefit of the Bank, and subject to clause 19.4 below, the Borrowers hereby irrevocably agree that the courts of England shall
have exclusive jurisdiction: 

  
 49 

	19.1.1	to settle any disputes or other matters whatsoever arising under or in connection with this Agreement or any non-contractual obligation arising out of or in connection
with this Agreement and any disputes or other such matters arising in connection with the negotiation, validity or enforceability of this Agreement or any part thereof, whether the alleged liability shall arise under the laws of England or under the
laws of some other country and regardless of whether a particular cause of action may successfully be brought in the English courts; and 

  

	19.1.2	to grant interim remedies or other provisional or protective relief. 

  

	19.2	Submission and service of process 

 The Borrowers accordingly irrevocably and unconditionally submit to the jurisdiction of the English courts. Without prejudice to any other mode of service each Borrower: 

 

	19.2.1	irrevocably empowers and appoints HFW Nominees Ltd at present of Friary Court, 65 Crutched Friars, London EC3N 2AE, England as its agent to receive and accept on its
behalf any process or other document relating to any proceedings before the English courts in connection with this Agreement; 

  

	19.2.2	agrees to maintain such an agent for service of process in England from the date hereof until the end of the Facility Period; 

 

	19.2.3	agrees that failure by a process agent to notify the Borrowers of service of process will not invalidate the proceedings concerned; 

 

	19.2.4	without prejudice to the effectiveness of service of process on its agent under clause 19.2.1 above but as an alternative method, consents to the service of process
relating to any such proceedings by mailing or delivering a copy of the process to its address for the time being applying under clause 16.2; 

  

	19.2.5	agrees that if the appointment of any person mentioned in clause 19.2.1 ceases to be effective, the Borrowers shall immediately appoint a further person in England to
accept service of process on its behalf in England and, failing such appointment with in seven (7) days the Bank shall thereupon be entitled and is hereby irrevocably authorised by the Borrowers in those circumstances to appoint such person by
notice to the Borrowers. 

  

	19.3	Forum non conveniens and enforcement abroad 

  

	The	Borrowers: 

  

	19.3.1	waive any right and agree not to apply to the English court or other court in any jurisdiction whatsoever to stay or strike out any proceedings commenced in England on
the ground that England is an inappropriate forum and/or that proceedings have been or will be started in any other jurisdiction in connection with any dispute or related matter falling within clause 19.1; and 

 

	19.3.2	agree that a judgment or order of an English court in a dispute or other matter falling within clause 19.1 shall be conclusive and binding on the Borrowers and may be
enforced against it in the courts of any other jurisdiction. 

  

	19.4	Right of Bank, but not Borrowers, to bring proceedings in any other jurisdiction 

  
 50 

	19.4.1	nothing in this clause 19 limits the right of the Bank to bring proceedings, including third party proceedings, against the Borrowers or either of them, or to apply for
interim remedies, in connection with this Agreement in any other court and/or concurrently in more than one jurisdiction; 

  

	19.4.2	the obtaining by the Bank of judgment in one jurisdiction shall not prevent the Bank from bringing or continuing proceedings in any other jurisdiction, whether or not
these shall be founded on the same cause of action. 

  

	19.5	Enforceability despite invalidity of Agreement 

 The jurisdiction agreement contained in this clause 19 shall be severable from the rest of this Agreement and shall remain valid, binding and in full force and shall continue to apply notwithstanding this
Agreement or any part thereof being held to be avoided, rescinded, terminated, discharged, frustrated, invalid, unenforceable, illegal and/or otherwise of no effect for any reason. 

 

	19.6	Effect in relation to claims by and against non-parties 

  

	19.6.1	for the purpose of this clause “Foreign Proceedings” shall mean any Proceedings except proceedings brought or pursued in England arising out of or in
connection with or in any way related to any of the Security Documents or any assets subject thereto or any action of any kind whatsoever taken by the Bank pursuant thereto or which would, if brought by the Borrowers or either of them against the
Bank, have been required to be brought in the English courts; 

  

	19.6.2	neither Borrower shall bring or pursue any Foreign Proceedings against the Bank and each Borrower shall use its best endeavours to prevent persons not party to this
Agreement from bringing or pursuing any Foreign Proceedings against the Bank; 

  

	19.6.3	If, for any reason whatsoever, any Security Party and/or any third party brings or pursues against the Bank any Foreign Proceedings, the Borrowers shall indemnify the
Bank on demand in respect of any and all claims, losses, damages, demands, causes of action, liabilities, costs and expenses (including, but not limited to, legal costs) of whatsoever nature howsoever arising from or in connection with such Foreign
Proceedings which the Bank certifies as having been incurred by it; 

  

	19.6.4	the Bank and the Borrowers hereby agree and declare that the benefit of this clause 19 shall extend to and may be enforced by any officer, employee, agent or business
associate of the Bank against whom either Borrowers brings a claim in connection howsoever with (i) any of the Security Documents or any assets subject thereto or (ii) any action of any kind whatsoever taken by, or on behalf of or for the
purported benefit of the Bank pursuant thereto, or which, if it were brought against the Bank, would fall within the material scope of clause 19.1. In those circumstances this clause 19 shall be read and construed as if references to the Bank were
references to such officer, employee, agent or business associate, as the case may be. 

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

  
 51 

					
	Execution page	  	 	 	 
			
	 SIGNED by TODD JOHNSON 
	  	)	 	
	 attorney-in-fact for and on behalf of
	  	)	 	
	 RHODES SHIPPING CORPORATION
	  	)	 	
	 pursuant to a Power of Attorney
	  	)	 	 /s/ Todd Johnson

	 dated 25 November 2010
	  	)	 	Attorney-in-fact
			
	 SIGNED by TODD JOHNSON 
	  	)	 	
	 attorney-in-fact for and on behalf of
	  	)	 	
	 CRETE SHIPPING CORPORATION
	  	)	 	
	 pursuant to a Power of Attorney
	  	)	 	 /s/ Todd Johnson

	 dated 25 November 2010
	  	)	 	Attorney-in-fact
			
	 SIGNED by ATHANASSIOS DOUDOULAS
	  	)	 	/s/ Athanassios Doudoulas
	 and by STAVROULA YDREOU 
	  	)	 	
	 for and on behalf of
	  	)	 	
	 EFG EUROBANK ERGASIAS S.A.
	  	)	 	 /s/ Stavroula Ydreou

		  		 	Authorised signatories

  
 52Twenty-Second Supplemental Indenture to the Senior Indenture

 Exhibit 4.3 
 VIRGINIA ELECTRIC AND POWER COMPANY 
 Issuer 

AND 
 U.S. BANK
NATIONAL ASSOCIATION 
 Series Trustee 
  

 
 Twenty-Second
Supplemental Indenture 
 Dated as of January 1, 2012 

 
  

$450,000,000 

2012 Series A 2.95% Senior Notes 
 Due 2022 

 TABLE OF CONTENTS* 

 

							
	 	    	ARTICLE I	  	 	 
		    	2012 SERIES A 2.95% SENIOR NOTES DUE 2022	  			
			
	 SECTION 101.
	    	 Establishment
	  	 	2	  
	 SECTION 102.
	    	 Definitions
	  	 	2	  
	 SECTION 103.
	    	 Payment of Principal and Interest
	  	 	5	  
	 SECTION 104.
	    	 Denominations
	  	 	6	  
	 SECTION 105.
	    	 Global Securities
	  	 	6	  
	 SECTION 106.
	    	 Redemption
	  	 	6	  
	 SECTION 107.
	    	 Sinking Fund
	  	 	7	  
	 SECTION 108.
	    	 Additional Interest
	  	 	7	  
	 SECTION 109.
	    	 Paying Agent
	  	 	7	  
			
		    	ARTICLE II	  			
		    	THE SERIES TRUSTEE	  			
			
	 SECTION 201.
	    	 Appointment of the Series Trustee
	  	 	7	  
	 SECTION 202.
	    	 Eligibility of Series Trustee
	  	 	8	  
	 SECTION 203.
	    	 Security Registrar and Paying Agent
	  	 	8	  
	 SECTION 204.
	    	 Concerning the Trustees
	  	 	8	  
	 SECTION 205.
	    	 Patriot Act Requirements of Series Trustee
	  	 	8	  
			
		    	ARTICLE III	  			
		    	MISCELLANEOUS PROVISIONS	  			
			
	 SECTION 301.
	    	 Recitals by Company
	  	 	8	  
	 SECTION 302.
	    	 Ratification and Incorporation of Base Indenture
	  	 	9	  
	 SECTION 303.
	    	 Executed in Counterparts
	  	 	9	  
	 SECTION 304.
	    	 Assignment
	  	 	9	  

  

	*	This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions.

 THIS TWENTY-SECOND SUPPLEMENTAL INDENTURE is made as of the 1st day of January, 2012, by and between VIRGINIA ELECTRIC AND POWER
COMPANY, a Virginia corporation, having its principal office at 120 Tredegar Street, Richmond, Virginia 23219 (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, as Trustee of the series of Securities established by this Twenty-Second
Supplemental Indenture, having a corporate trust office at 1021 East Cary Street, Suite 1850, Richmond, Virginia 23219 (herein called the “Series Trustee”). 
 W I T N E S S E T H: 
 WHEREAS, the Company has heretofore entered into a Senior
Indenture, dated as of June 1, 1998, with The Bank of New York Mellon (successor to JPMorgan Chase Bank, N. A. (formerly known as The Chase Manhattan Bank)), a New York banking corporation, as Trustee (herein called the “Original
Trustee”), as supplemented and amended by the Nineteenth Supplemental and Amending Indenture, dated as of November 1, 2008 (as so amended, referred to herein as the “Base Indenture”), by and among the Company, the Original
Trustee and the Series Trustee; 
 WHEREAS, the Base Indenture is incorporated herein by this reference and the Base Indenture,
as heretofore supplemented, as further supplemented by this Twenty-Second Supplemental Indenture, and as may be hereafter supplemented or amended from time to time, is herein called the “Indenture”; 

WHEREAS, under the Base Indenture, a new series of Securities may at any time be established in accordance with the provisions of the
Base Indenture and the terms of such series may be described by a supplemental indenture executed by the Company and the Series Trustee; 
 WHEREAS, the Company proposes to create under the Indenture a new series of Securities and to appoint the Series Trustee as Trustee under the Base Indenture with respect to such series of Securities;

 WHEREAS, additional Securities of other series hereafter established, except as may be limited in the Base Indenture as at
the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified; and the Original Trustee will, unless and until a Person other than the Original Trustee is appointed to act as
Trustee with respect to the Securities of such series, serve as Trustee of such series; 
 WHEREAS, all conditions necessary to
authorize the execution and delivery of this Twenty-Second Supplemental Indenture and to make it a valid and binding obligation of the Company have been done or performed. 

 NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I 
 2012 SERIES A 2.95% SENIOR NOTES DUE 2022 

SECTION 101. Establishment. There is hereby established a new series of Securities to be issued under the Indenture, to be
designated as the Company’s 2012 Series A 2.95% Senior Notes Due 2022 (the “Series A Senior Notes”). 
 There are
to be initially authenticated and delivered $450,000,000 principal amount of Series A Senior Notes, and such principal amount of the Series A Senior Notes may be increased from time to time pursuant to Section 301 of the Base Indenture. All
Series A Senior Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuances of additional Series A Senior Notes. Any such additional Series A Senior Notes will have the same
interest rate, maturity and other terms as those initially issued. Further Series A Senior Notes may also be authenticated and delivered as provided by Sections 304, 305, 306, 906 and 1106 of the Base Indenture. 

The Series A Senior Notes shall be issued in definitive fully registered form without coupons, in substantially the form set out in
Exhibit A hereto. The entire initially issued principal amount of the Series A Senior Notes shall initially be evidenced by one or more certificates issued to Cede & Co., as nominee for The Depository Trust Company. 

The form of the Series Trustee’s Certificate of Authentication for the Series A Senior Notes shall be in substantially the form set
forth in Exhibit B hereto. 
 Each Series A Senior Note shall be dated the date of authentication thereof and shall bear
interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for. 
 SECTION 102. Definitions. The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below. Capitalized terms used herein for which no
definition is provided herein shall have the meanings set forth in the Base Indenture. 
 “Adjusted Treasury Rate”
means, with respect to any Redemption Date: (i) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any
successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the end of the Remaining Life, yields for the two published maturities most closely corresponding to
the Comparable Treasury Issue will be determined and the Adjusted Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or (ii) if such release (or any successor release)
is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

  
 2 

 “Business Day” means a day other than (i) a Saturday or a Sunday, (ii) a
day on which banks in New York, New York are authorized or obligated by law or executive order to remain closed or (iii) a day on which the Corporate Trust Office of the Series Trustee is closed for business. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a
remaining term to maturity comparable to the remaining term of the Series A Senior Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the Remaining Life. 
 “Comparable Treasury Price” for any Redemption Date means
(i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than five such
Reference Treasury Dealer Quotations, the average of all such quotations. 
 “Corporate Trust Office of the Series
Trustee” means the office of the Series Trustee at which at any particular time its corporate trust business with respect to the series of Securities herein described shall be principally administered, which office at the date of original
execution of this Twenty-Second Supplemental Indenture is located at 1021 East Cary Street, Suite 1850, Richmond, Virginia 23219. 
 “Independent Investment Banker” means any of Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and UBS Securities LLC and their respective successors as selected by the Company,
or if none of such firms is willing or able to serve as such, an independent investment and banking institution of national standing appointed by the Company. 
 “Interest Payment Dates” means January 15 and July 15 of each year, commencing on July 15, 2012. 
 “Original Issue Date” means January 12, 2012. 

“Outstanding,” when used with respect to the Series A Senior Notes, means, as of the date of determination, all Series A Senior
Notes, theretofore authenticated and delivered under the Indenture, except: 
 (i) Series A Senior Notes theretofore canceled by
the Series Trustee or delivered to the Series Trustee for cancellation; 
 (ii) Series A Senior Notes for whose payment at
Maturity the necessary amount of money or money’s worth has been theretofore deposited (other than pursuant to Section 1303 of the Base Indenture) with the Series Trustee or any Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Series A Senior Notes; provided that, if such 

  
 3 

 
Series A Senior Notes are to be redeemed, notice of such redemption has been duly given pursuant to the Base Indenture or provision therefor satisfactory to the Series Trustee has been made;

 (iii) Series A Senior Notes with respect to which the Company has effected Defeasance pursuant to Section 1302 of the
Base Indenture; and 
 (iv) Series A Senior Notes that have been paid pursuant to Section 306 of the Base Indenture or in
exchange for or in lieu of which other Series A Senior Notes have been authenticated and delivered pursuant to the Indenture, other than any such Series A Senior Notes in respect of which there shall have been presented to the Series Trustee proof
satisfactory to it that such Series A Senior Notes are held by a bona fide purchaser in whose hands such Series A Senior Notes are valid obligations of the Company; provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Series A Senior Notes have given, made or taken any request, demand, authorization, direction, notice, consent or waiver or other action hereunder as of any date, Series A Senior Notes owned by the Company or any
other obligor upon the Series A Senior Notes or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Series Trustee shall be protected in making any such
determination or relying upon any such request, demand, authorization, direction, notice, consent, waiver or other action only Series A Senior Notes which the Series Trustee actually knows to be so owned shall be so disregarded. Series A Senior
Notes so owned which shall have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Series Trustee (A) the pledgee’s right so to act with respect to such Series A Senior Notes and
(B) that the pledgee is not the Company or any other obligor upon the Series A Senior Notes or an Affiliate of the Company or such other obligor. 
 “Reference Treasury Dealer” means: (i) Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and UBS Securities LLC and their respective successors; provided that, if any such
firm or its successors ceases to be a primary U.S. Government securities dealer in the United States (Primary Treasury Dealer), the Company shall substitute another Primary Treasury Dealer; and (ii) up to two other Primary Treasury Dealers
selected by the Company. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Independent Investment Banker at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Regular Record Date” means, with respect to each Interest Payment Date, the close of business on the Business Day preceding such Interest Payment Date; provided, that with respect to
Series A Senior Notes that are not represented by one or more Global Securities, the Regular Record Date shall be the close of business on the 15th calendar day (whether or not a Business Day) preceding such Interest Payment Date. 

“Remaining Life” means the remaining term of the Series A Senior Notes. 

  
 4 

 “Stated Maturity” means January 15, 2022. 

The terms “Company,” “Original Trustee,” “Series Trustee,” “Base Indenture,” and
“Indenture” shall have the respective meanings set forth in the recitals to this Twenty-Second Supplemental Indenture and the paragraph preceding such recitals. 
 SECTION 103. Payment of Principal and Interest. The principal of the Series A Senior Notes shall be due at the Stated Maturity (unless earlier redeemed). The unpaid principal amount of the Series A
Senior Notes shall bear interest at the rate of 2.95% per annum until paid or duly provided for, such interest to accrue from the Original Issue Date or from the most recent Interest Payment Date to which interest has been paid or duly provided
for. Interest shall be paid semi-annually in arrears on each Interest Payment Date to the Person in whose name the Series A Senior Notes are registered on the Regular Record Date for such Interest Payment Date; provided that interest payable at the
Stated Maturity of principal or on a Redemption Date as provided herein will be paid to the Person to whom principal is payable. Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders
on such Regular Record Date and may either be paid to the Person or Persons in whose name the Series A Senior Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Series
Trustee (in accordance with Section 307 of the Base Indenture), notice whereof shall be given to Holders of the Series A Senior Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange, if any, on which the Series A Senior Notes may be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Base Indenture.

 Payments of interest on the Series A Senior Notes will include interest accrued to but excluding the respective Interest
Payment Dates. Interest payments for the Series A Senior Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months. In the event that any date on which interest is payable on the Series A Senior Notes is not a Business
Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay), in each case with the same force and effect as if made on the
date the payment was originally payable. 
 Payment of the principal and interest on the Series A Senior Notes shall be made at
the office of the Paying Agent in such currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, with any such payment that is due at the Stated Maturity of any Series A Senior Notes
or on a Redemption Date being made upon surrender of such Series A Senior Notes to the Paying Agent. Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable, at the option of
the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer at such place and to such account at a banking institution in the United States
as may be designated in writing to the Series Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto. In the event that any date on which principal and interest is payable on the Series A Senior Notes is
not a Business Day, then payment of the principal and interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay), in each case with the same force
and effect as if made on the date the payment was originally payable. 

  
 5 

 SECTION 104. Denominations. The Series A Senior Notes may be issued in denominations
of $1,000, or any integral multiple thereof. 
 SECTION 105. Global Securities. The Series A Senior Notes will be issued
initially in the form of one or more Global Securities registered in the name of the Depositary (which shall be The Depository Trust Company) or its nominee. Except under the limited circumstances described below, Series A Senior Notes represented
by such Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series A Senior Notes in definitive form. The Global Securities described above may not be transferred except by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee. 
 Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Series A Senior Note shall be
exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee or except as described below. The rights of Holders of such
Global Security shall be exercised only through the Depositary. 
 A Global Security shall be exchangeable for Series A Senior
Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary
shall have been appointed by the Company within 90 days of receipt by the Company of such notification, or if at any time the Depositary ceases to be a clearing agency registered under the Exchange Act at a time when the Depositary is required to be
so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company within 90 days after it becomes aware of such cessation, or (ii) the Company in its sole discretion and subject to the procedures of
the Depositary determines that such Global Security shall be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series A Senior Notes registered in such names as the Depositary
shall direct. 
 SECTION 106. Redemption. Prior to October 15, 2021, the Series A Senior Notes are redeemable, in
whole or in part, at any time, and at the option of the Company, at a Redemption Price equal to the greater of: 
 (i) 100% of
the principal amount of Series A Senior Notes then Outstanding to be so redeemed, or 
 (ii) the sum of the present values of
the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting
of twelve 30-day months) at the Adjusted Treasury Rate, plus 15 basis points, as calculated by an Independent Investment Banker, 

  
 6 

 plus, in either of the above cases, accrued and unpaid interest thereon to the Redemption
Date. On or after October 15, 2021, the Series A Senior Notes are redeemable, in whole or in part, at any time, and at the option of the Company, at a Redemption Price equal to 100% of the principal amount of Series A Senior Notes then
Outstanding to be so redeemed, plus accrued and unpaid interest thereon to the Redemption Date. 
 The Adjusted Treasury Rate
shall be calculated on the third Business Day preceding the Redemption Date. 
 Notwithstanding Section 1104 of the Base
Indenture, (x) notice of redemption under this Section 106 shall with respect to the Series A Senior Notes be given by first-class mail, postage prepaid, mailed not less than 20 nor more than 60 days prior to the Redemption Date, to each
Holder of Series A Senior Notes to be redeemed, at his address appearing in the Security Register, and (y) the notice of such redemption need not set forth the Redemption Price but only the manner of calculation thereof. The Company shall
notify the Series Trustee of the Redemption Price promptly after the calculation thereof and the Series Trustee shall have no responsibility for such calculation. 
 SECTION 107. Sinking Fund. The Series A Senior Notes shall not have a sinking fund. 
 SECTION 108. Additional Interest. Any principal of and installment of interest on the Series A Senior Notes that is overdue shall bear interest at the rate of 2.95% (to the extent that the payment
of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. 

SECTION 109. Paying Agent. The Series Trustee shall initially serve as Paying Agent with respect to the Series A Senior Notes,
with the Place of Payment initially being the Corporate Trust Office of the Series Trustee. 
 ARTICLE II 

THE SERIES TRUSTEE 
 SECTION 201. Appointment of the Series Trustee. Pursuant to the Base Indenture and pursuant to this Twenty-Second Supplemental Indenture, the Company hereby appoints the Series Trustee as Trustee
under the Base Indenture with respect to the Series A Senior Notes, and by execution hereof the Series Trustee accepts such appointment. Pursuant to the Base Indenture, all the rights, powers, trusts and duties of the Original Trustee under the Base
Indenture shall be vested in the Series Trustee with respect to the Series A Senior Notes, there shall continue to be vested in the Original Trustee all of its rights, powers, trusts and duties as Trustee under the Base Indenture with respect to all
of the series of Securities as to which it has served and continues to serve as Trustee, and the Original Trustee shall have no rights, powers, trusts and duties with respect to the Series A Senior Notes. 

  
 7 

 SECTION 202. Eligibility of Series Trustee. The Series Trustee hereby represents that
it is qualified and eligible under the provisions of Section 609 of the Base Indenture and the provisions of the Trust Indenture Act to accept its appointment as Trustee with respect to the Series A Senior Notes under the Base Indenture and
hereby accepts the appointment as such Trustee. 
 SECTION 203. Security Registrar and Paying Agent. Pursuant to the Base
Indenture, the Company hereby appoints U.S. Bank National Association as “Security Registrar” and “Paying Agent” with respect to the Series A Senior Notes. 
 SECTION 204. Concerning the Trustees. Neither the Original Trustee nor the Series Trustee assumes any duties, responsibilities or liabilities by reason of this Twenty-Second Supplemental Indenture
other than as set forth in the Base Indenture and, in carrying out its responsibilities hereunder, each shall have all of the rights, powers, privileges, protections, duties and immunities which it possesses under the Base Indenture. The Original
Trustee and the Series Trustee shall not constitute co-trustees of the same trust, and each of the Original Trustee and the Series Trustee shall be trustee of a trust or trusts under the Indenture separate and apart from any trust or trusts under
the Indenture administered by the other trustee. The Original Trustee shall have no liability for any acts or omissions of the Series Trustee and the Series Trustee shall have no liability for any acts or omissions of the Original Trustee.

 References in this Twenty-Second Supplemental Indenture to sections of the Base Indenture that require or permit actions by
the Original Trustee with respect to Securities of the series established hereby shall be deemed to require or permit actions only by the Series Trustee and the Original Trustee shall have no responsibility therefor. 

SECTION 205. Patriot Act Requirements of Series Trustee. To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a trust, or other
legal entity, the Series Trustee will ask for documentation to verify such non-individual person’s formation and existence as a legal entity. The Series Trustee may also seek to see financial statements, licenses, identification and
authorization documents from individuals claiming authority to represent the entity or other relevant documentation. 

ARTICLE III 

MISCELLANEOUS PROVISIONS 
 SECTION 301. Recitals by Company. The recitals in this Twenty-Second Supplemental Indenture are made by the Company only and not by the Original Trustee or the Series Trustee, and all of the
provisions contained in the Base Indenture in respect of the rights, powers, privileges, protections, duties and immunities of the Original Trustee shall be applicable, 

  
 8 

 
but only to the Series Trustee, in respect of the Series A Senior Notes and of this Twenty-Second Supplemental Indenture (to the extent relating to the Series A Senior Notes) as fully and with
like effect as if set forth herein in full. 
 SECTION 302. Ratification and Incorporation of Base Indenture. As
supplemented hereby, the Base Indenture is in all respects ratified and confirmed by the Company and, with respect to the Securities for which the Series Trustee has been appointed as Trustee, including the Series A Senior Notes, by the Series
Trustee. The Base Indenture and this Twenty-Second Supplemental Indenture shall be read, taken and construed as one and the same instrument. 
 SECTION 303. Executed in Counterparts. This Twenty-Second Supplemental Indenture may be executed in several counterparts, each of which shall be deemed to be an original, and such counterparts
shall together constitute but one and the same instrument. 
 SECTION 304. Assignment. The Company shall have the right
at all times to assign any of its rights or obligations under the Indenture with respect to the Series A Senior Notes to a direct or indirect wholly-owned subsidiary of the Company; provided that, in the event of any such assignment, the Company
shall remain fully liable for the performance of all such obligations. The Indenture may also be assigned by the Company in connection with a transaction described in Article Eight of the Base Indenture. 

[Signature Page Follows] 

  
 9 

 IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name
and behalf by its duly authorized officer, all as of the day and year first above written. 
  

			
	VIRGINIA ELECTRIC AND POWER COMPANY
		
	By:	 	 /s/ G. Scott Hetzer

			
	Name:	 	G. Scott Hetzer
	Title:	 	Senior Vice President – Tax and Treasurer
	
	 U.S. BANK NATIONAL ASSOCIATION,
 as Series Trustee

 
			
		
	By:	 	 /s/ Nancy C. Harrison

			
	Name:	 	Nancy C. Harrison
	Title:	 	Vice President

  
 10 

 EXHIBIT A 
 FORM OF 
 2012 SERIES A 2.95% SENIOR NOTE 

DUE 2022 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO.] OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY AND ANY PAYMENT IS MADE TO [CEDE & CO.], ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, [CEDE & CO.,] HAS AN INTEREST HEREIN.]**

 [THIS SERIES A SENIOR NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED
IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SERIES A SENIOR NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SERIES A SENIOR NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]** 
  

 
 VIRGINIA
ELECTRIC AND 
 POWER COMPANY 
  

 

$             

2012 SERIES A 2.95% SENIOR NOTE 
 DUE 2022 
  

			
	No. R-	 	CUSIP No. 927804 FK5

 Virginia Electric and Power Company, a corporation duly organized and existing under the laws of Virginia
(herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to [Cede & Co.] **, or registered assigns (the “Holder”),
the principal sum of
                                         Dollars
($            ) on January 15, 2022 and to pay interest thereon from January 12, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually in arrears on January 15 and July 15 of each year, commencing on July 15, 2012, at the rate 

 

	**	Insert in Global Securities. 

 
of 2.95% per annum, until the principal hereof is paid or made available for payment, provided that any principal, and any such installment of interest, that is overdue shall bear interest
at the rate of 2.95% per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand.
The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Series A Senior Note (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which shall be the close of business on the Business Day preceding such Interest Payment Date; provided, that with respect to Series A Senior Notes that are not
represented by one or more Global Securities, the Regular Record Date shall be the close of business on the
15th calendar day (whether or not a Business Day)
preceding such Interest Payment Date, provided, that interest payable at the Stated Maturity of principal or on a Redemption Date will be paid to the Person to whom principal is payable. Any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Series A Senior Note (or one or more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Series Trustee, notice whereof shall be given to Holders of Series A Senior Notes not less than 10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange on which the Series A Senior Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 

Payments of interest on the Series A Senior Notes will include interest accrued to but excluding the respective Interest Payment Dates.
Interest payments for the Series A Senior Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months. In the event that any date on which interest is payable on the Series A Senior Notes is not a Business Day, then
payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay), in each case with the same force and effect as if made on the date the
payment was originally payable. 
 Payment of the principal of and premium, if any, and interest on this Series A Senior Note
will be made at the office of the Paying Agent, in the City of Richmond, Virginia, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, with any such payment that
is due at the Stated Maturity of any Series A Senior Note or upon redemption being made upon surrender of such Series A Senior Note to such office or agency; provided, however, that at the option of the Company payment of interest, subject to such
surrender where applicable, may be made (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer at such place and to such account at a banking
institution in the United States as may be designated in writing to the Series Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto. 

Reference is hereby made to the further provisions of this Series A Senior Note set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place. 

  
 2 

 Unless the certificate of authentication hereon has been executed by the Series Trustee
referred to on the reverse hereof by manual signature, this Series A Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

					
	Dated:	 	VIRGINIA ELECTRIC AND POWER COMPANY
			
		 	By:	 	  

			
		 	Name:	 	  

			
		 	Title:	 	  

  

			
	(SEAL)
	Attest:
	
	  

	Name:	 	  

	[Assistant] Corporate Secretary

  
 3 

 [REVERSE OF 2012 SERIES A 2.95% SENIOR NOTE DUE 2022] 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under a Senior Indenture, dated as of June 1, 1998, between the Company and The Bank of New York Mellon (successor to JPMorgan Chase Bank, N. A. (formerly known as The Chase Manhattan Bank)), as Trustee (herein
called the “Original Trustee”), as supplemented and amended by the Nineteenth Supplemental and Amending Indenture, dated as of November 1, 2008, by and among the Company, the Original Trustee and U.S. Bank National Association, as
Series Trustee, as heretofore supplemented and amended and as further supplemented by a Twenty-Second Supplemental Indenture, dated as of January 1, 2012, by and between the Company and U.S. Bank National Association, as Trustee of the series
of Securities established thereby (herein called the “Series Trustee,” which term includes any successor series trustee for the Series A Senior Notes under the Indenture) (collectively, as amended or supplemented through the date hereof
and from time to time, herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Original Trustee, the Series Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof (the “Series A Senior Notes”) which is unlimited in aggregate principal amount. 

The Series A Senior Notes are redeemable, in whole or in part, at any time in the manner and with the effect provided in the Indenture.

 If an Event of Default with respect to Series A Senior Notes shall occur and be continuing, the principal of the Series A
Senior Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any
time by the Company and the Trustee for the series of Securities affected, with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Series A Senior Note shall be conclusive and binding upon such Holder and upon all future Holders of this Series A Senior Note and of any Series A Senior Note issued upon the
registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Series A Senior Note. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Series A Senior Note shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Series Trustee written notice of a continuing Event of Default with respect to the Series A Senior Notes, the Holders of not
less than a majority in principal amount of the Series A Senior Notes at the time Outstanding shall have made written request to the Series Trustee to 

  
 4 

 
institute proceedings in respect of such Event of Default as Series Trustee and offered the Series Trustee reasonable indemnity, and the Series Trustee shall not have received from the Holders of
a majority in principal amount of Series A Senior Notes at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Series A Senior Note for the enforcement of any payment of principal hereof or premium, if any, or interest hereon on or after the respective due dates expressed
or provided for herein. 
 No reference herein to the Indenture and no provision of this Series A Senior Note or of the
Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Series A Senior Note at the times, place and rate, and in the coin or currency, herein
prescribed. 
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Series A
Senior Note is registrable in the Security Register, upon surrender of this Series A Senior Note for registration of transfer at the office or agency of the Company in any place where the principal of, premium, if any, and interest on this Series A
Senior Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Series A Senior Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Series A Senior Notes are issuable only in registered form without coupons in denominations of $1,000 and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein set forth, Series A Senior Notes are exchangeable for a like aggregate principal amount of Series A Senior Notes having the same Stated Maturity and of like tenor of
any authorized denominations as requested by the Holder upon surrender of the Series A Senior Note or Series A Senior Notes to be exchanged at the office or agency of the Company. 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this
Series A Senior Note for registration of transfer, the Company, the Series Trustee and any agent of the Company or the Series Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not
this Series A Senior Note be overdue, and neither the Company, the Series Trustee nor any such agent shall be affected by notice to the contrary. 
 All terms used in this Series A Senior Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

  
 5 

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

  

					
	TEN COM -	  	as tenants in common
		
	TEN ENT -	  	as tenants by the entireties
		
	JT TEN -	  	as joint tenants with rights of survivorship and not as tenants in common
			
	UNIF GIFT MIN ACT -	  	  
	 	 Custodian for

		  	(Cust)
			
		  	  
	 	
		  	(Minor)
		
		  	Under Uniform Gifts to Minors Act of
			
		  	  
	 	
		  	(State)
	
	Additional abbreviations may also be used though not on the above list.
		
	  
	 	

  
 6 

			
	 FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto
	 	
		
	  
	 	.
	
	(please insert Social Security or other identifying number of assignee)
		
	  
	 	.
		
	  
	 	.
		
	  
	 	.
	
	 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 
 the within Series A Senior Note and all rights thereunder, hereby irrevocably
constituting and appointing

		
	  
	 	 .

		
	  
	 	 .

		
	  
	 	 .

		
	  
	 	 .

		
	  
	 	 .

		
	  
	 	 .

	
	agent to transfer said Series A Senior Note on the books of the Company, with full power of substitution in the premises.
		
	Dated:                  ,         	 	

 
	
	  

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within
instrument in every particular without alteration or enlargement, or any change whatever. 

  
 7 

 EXHIBIT B 
 CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture. 
  

			
	U.S. BANK NATIONAL ASSOCIATION, as Series Trustee
		
	By:	 	  

		 	Authorized Signatory

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